Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 107 CONGRESS, SECOND SESSION

E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, SECOND SESSION

Vol. 148 WASHINGTON, THURSDAY, JUNE 13, 2002 No. 78 House of Representatives The House met at 10 a.m. quorum is not present and make the bill equally divided and controlled by the The Chaplain, the Reverend Daniel P. point of order that a quorum is not chairman and ranking minority member of Coughlin, offered the following prayer: present. the Committee on Ways and Means; (2) the Lord God, guide your people by the The SPEAKER. Pursuant to clause 8, amendment in the nature of a substitute printed in the report of the Committee on spirit of understanding which will lead rule XX, further proceedings on this Rules accompanying this resolution, if of- them ultimately to eternal wisdom. question will be postponed. fered by Representative Rangel of New York Since Your servants live in a world of The point of no quorum is considered or his designee, which shall be in order with- human failure and broken promises, withdrawn. out intervention of any point of order, shall may they be tolerant of the faults of f be considered as read, and shall be separately others because they are so aware of debatable for one hour equally divided and their own unfaithfulness. All of us are PLEDGE OF ALLEGIANCE controlled by the proponent and an oppo- yet to realize our own full potential as The SPEAKER. Will the gentleman nent; and (3) one motion to recommit with or without instructions. being truly the free children of God. from Massachusetts (Mr. MCGOVERN) In this information age, hindsight come forward and lead the House in the The SPEAKER pro tempore (Mr. may give us better sight, but we still Pledge of Allegiance. LAHOOD). The gentleman from Wash- live only on fragments of what You Mr. MCGOVERN led the Pledge of Alle- ington (Mr. HASTINGS) is recognized for would have us judge as truth. giance as follows: one hour. Bless all with a quiet respect for the I pledge allegiance to the Flag of the Mr. HASTINGS of Washington. Mr. diversity for opinions. Through honest United States of America, and to the Repub- Speaker, for the purpose of debate dialogue and contemplative listening, lic for which it stands, one nation under God, only, I yield the customary 30 minutes may Your servants in government indivisible, with liberty and justice for all. to the gentleman from Massachusetts search all the avenues open to them to f (Mr. MCGOVERN), pending which I yield meet today’s challenges of integrity ANNOUNCEMENT BY THE SPEAKER myself such time as I may consume. and justice. During consideration of this resolu- Through the formulation of law and The SPEAKER. The Chair will enter- tion, all time yielded is for the purpose the formation of public opinion, may tain one-minute speeches today at the of debate only. end of legislative business. this House foster the restoration of (Mr. HASTINGS of Washington asked credibility in the institutional life of f and was given permission to revise and this Nation and this Government by PROVIDING FOR CONSIDERATION extend his remarks.) the people and for the people now and OF H.R. 4019, PERMANENT MAR- Mr. HASTINGS of Washington. Mr. forever. Amen. RIAGE PENALTY RELIEF ACT OF Speaker, House Resolution 440 is a f 2002 modified, closed rule providing for the THE JOURNAL Mr. HASTINGS of Washington. Mr. consideration of H.R. 4019, a bill to pro- The SPEAKER. The Chair has exam- Speaker, by direction of the Com- vide that the marriage penalty relief ined the Journal of the last day’s pro- mittee on Rules, I call up House Reso- provisions of the Economic Growth and ceedings and announces to the House lution 440 and ask for its immediate Tax Relief Reconciliation Act of 2001 his approval thereof. consideration. shall be permanent. Pursuant to clause 1, rule I, the Jour- The Clerk read the resolution, as fol- The rule provides 1 hour of debate in nal stands approved. lows: the House equally divided and con- Mr. MCGOVERN. Mr. Speaker, pursu- H. RES. 440 trolled by the chairman and ranking ant to clause 1, rule I, I demand a vote Resolved, That upon the adoption of this minority member of the Committee on on agreeing to the Speaker’s approval resolution it shall be in order to consider in Ways and Means. The rule further proof the Journal. the House the bill (H.R. 4019) to provide that vides for consideration of the amend- The SPEAKER. The question is on the marriage penalty relief provisions of the ment in the nature of a substitute the Speaker’s approval of the Journal. Economic Growth and Tax Relief Reconcili- printed in the Committee on Rules’ re- The question was taken; and the ation Act of 2001 shall be permanent. The bill port accompanying the resolution if of- shall be considered as read for amendment. fered by the gentleman from New York Speaker announced that the ayes ap- The previous question shall be considered as peared to have it. ordered on the bill and on any amendment (Mr. RANGEL) or his designee. Mr. MCGOVERN. Mr. Speaker, I ob- thereto to final passage without intervening The substitute shall be considered as ject to the vote on the ground that a motion except: (1) one hour of debate on the read and shall be separately debatable

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

H3515

VerDate 11-MAY-2000 06:16 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A13JN7.000 pfrm04 PsN: H13PT1 H3516 CONGRESSIONAL RECORD — HOUSE June 13, 2002 for one hour, equally divided and con- rule, I believe that this is not the right spending from the Social Security trolled by the proponent and an oppo- time to be considering the underlying trust fund until the well is dry. The nent. legislation. Our Nation’s fiscal house is baby boomers will begin to retire in Finally, the rule waives all points of not in order, but instead of working to 2011, and we must prepare for their ar- order against the amendment printed return this country back to the budget rival into the Social Security system. in the report and provides one motion surpluses of 3 years ago, the Repub- Squandering the Social Security sur- to recommit with or without instruc- lican majority continues to dig us fur- plus is unacceptable, but that is what tions. ther into a deeper fiscal hole. Instead is happening here. Mr. Speaker, as with the death tax of working together for the good of all Of course, if we were in the mood to repeal provisions passed by the House Americans, the majority continues to be responsible, there are always ways last week, it is necessary for this body bring legislation to this floor that is to pay for this bill. We have one very to act again today because when Con- politically designed for the November reasonable offset staring us in the face. gress enacted the Marriage Penalty Re- campaign. This body, Mr. Speaker, is Certain corporations are fleeing the lief of 2001, an arcane procedural rule sound bite central. Listen to the debate United States for tax havens overseas, in the other body required that much- today and get used to the sound bites skipping out on their responsibilities. needed relief for married taxpayers be because the arguments we hear today This House has the power to close this terminated on July 1, 2011. This clearly will sound a lot like tomorrow’s cam- tax loophole by approving legislation contradicts the original will of the paign ads. There is a time and place for introduced by our colleagues, the gen- House as our bill had no sunset provi- politics but not here and not now. tleman from Massachusetts (Mr. NEAL) sion. We passed marriage penalty relief There is a strong desire for tax relief and the gentleman from Connecticut in the first place because it is unfair in both the Democratic and Republican (Mr. MALONEY). This legislation would and even morally wrong for the Federal parties, but we have serious disagree- save a minimum of $4 billion over the Government to tax working men and ments about who should benefit from next decade. women at a higher rate if they are that relief. Democrats believe tax re- During the debate on the tax limita- married than if they instead choose to lief should go to working families try- tion amendment yesterday, the gen- remain single while living together. We ing to make ends meet, not billionaire tleman from Indiana (Mr. PENCE) said, ‘‘If you owe tax, pay taxes,’’ and I corrected that inequity because simple CEOs and multinational corporations. agree. Corporations must pay the taxes fairness demands it. And fundamental We all agree that families who are un- that they owe. Congress should not fairness also demands that we make fairly penalized by the marriage pen- allow these corporations to set up tax that change permanent because to do alty tax deserve relief. We could pro- shelters overseas while continuing to otherwise means that on January 1, vide that relief right now, but, Mr. operate in this country just to avoid 2011, every married couple in America, Speaker, the devil is always in the de- paying taxes. Working families have to every married couple in America, will tails and the details show that this bill pay their taxes. The married couples face a significant tax increase. No one is bad news for the people’s budget. we are discussing today have to pay else, just married couples. In fact, fail- Consider the facts. The marriage pen- their taxes. Why do these corporations ure to act on H.R. 4019 will result in a alty tax provisions included in last not pay their taxes? tax increase of $42 billion in 2010 and year’s tax cuts don’t begin to take ef- But no, every time the Democrats 2011 for low and middle income tax- fect until 2005 and they don’t expire try to offer reasonable ways to pay for payers alone. until 2010 and primarily benefit these bills, the majority leadership re- That is not what this House intended wealthier Americans, not lower and fuses to allow our amendments to even and it is up to us to do something middle income families who should be considered. So what are they afraid about it. For that reason I am pleased benefit the most from this relief. If the of, Mr. Speaker? that the Committee on Ways and majority is so concerned about tax re- The gentleman from California (Mr. Means has reported legislation remov- lief for married couples, why did they MATSUI) will offer a Democratic sub- ing the ‘‘sunset’’ provisions of the mar- not make this relief effective imme- stitute that will protect Social Secu- riage penalty relief we passed last year. diately instead of forcing families to rity for the next generation. This sub- This bill, H.R. 4019, will make the fol- wait until 2005? Why is there such a stitute still permanently extends mar- lowing provisions from last year’s law rush to extend these tax cuts beyond riage penalty relief, but it adds a trig- permanent. It will increase the stand- any reasonable budget projections? As ger requiring the Office of Management ard deduction for married couples to a result of last year’s tax cut, the re- and Budget to certify that this perma- twice the deduction for single tax- cession, and the economic con- nent repeal will not raid the Social Se- payers. It will increase the width of the sequences of September 11, this coun- curity trust fund, and let me repeat 15 percent tax bracket for married cou- try now has a $200 billion budget def- that. All this does is require the Office ples so that it is twice as wide as the icit. Of course, this deficit comes on of Management and Budget to certify bracket for single taxpayers. It will in- the heels of record budget surpluses that this permanent repeal will not crease the phaseout range of the earned created during the Clinton administra- raid the Social Security trust fund. income tax credit by $3,000 for married tion. I think almost every Member of this couples and simplifies the earned in- But does the Republican majority do body has voted not to spend Social Se- come tax credit to reduce tax com- anything to help dig this country out curity funds on anything but Social Se- plexity for low income taxpayers. of the fiscal hole we are in? No. Last curity. We have had votes on lockboxes Mr. Speaker, as I said a moment ago, week this House approved legislation and everything else, and people have we are only taking up this legislation repealing the sunset of the estate tax. centered all their press releases about because of an obscure procedural obsta- This repeal would cost almost three how they want to protect Social Secu- cle in the other body. We have an op- quarters of a trillion dollars. The re- rity. Here is a way to show it. portunity today to correct that injus- peal of the sunset of the marriage pen- Our substitute would protect Social tice, and I urge my colleagues to do so alty will cost another quarter of a tril- Security for future generations. We by adopting both this rule and the un- lion dollars over the next 2 decades. owe it to the American people to main- derlying bill H.R. 4019. Where is this money coming from? How tain the solvency of the system, and I Mr. Speaker, I reserve the balance of are we going to pay for it? Where are urge my colleagues, both Republican my time. the offsets? and Democrat, to support our sub- Mr. MCGOVERN. Mr. Speaker, I yield The real answer is disturbingly clear. stitute. myself as much time as I may con- These repeals will be paid for by dip- Mr. Speaker, this debate is not about sume. I thank the gentleman from ping into the Social Security Trust marriage. All of us support the institu- Washington for yielding me the cus- fund. tion of marriage. All of us believe that tomary 30 minutes. married couples should not be unfairly Mr. Speaker, although this rule b 1015 penalized. Rather, this debate is about makes a Democratic substitute in The American people deserve to responsibilities. Are we going to be re- order and I have no problem with the know that the Republican majority is sponsible and pay for the bills we pass,

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.002 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3517 or are we going to steal from the baby husband and wife who are both in the do not itemize their taxes, which are 20 boomers by taking funds from Social workforce, and because when they million married couples suffering the Security, one of the most important marry they jointly combine their in- marriage tax penalty, by doubling the social programs in the history of the come, and that is what their taxes are standard deduction to twice that for United States? based on, that historically has pushed single filers. That benefits 20 million We are witnessing an incredibly dis- them into a higher tax bracket, forcing couples who do not itemize their taxes. turbing trend on the part of the major- married working couples to pay higher For those who do, middle-class couples ity. A few weeks ago, the Republican taxes. And that is a pretty important suffering the marriage tax penalty who leadership buried a huge increase in question: Do we believe it is right, do happen to be homeowners or give to the debt ceiling in a rule so Members we believe it is fair that married cou- their church, their charity or syna- could avoid taking responsibility for ples, married working couples, a man gogue or institution or organizations of their votes, so that no one has to go and woman, both in the workforce, faith, homeowners that itemize, we home and say they voted to increase should pay higher taxes just because widen the 15 percent tax bracket so the debt ceiling, when, in fact, that is they are married? Is it right that under they can earn twice as much income as what we are doing. our Tax Code, that our Tax Code pun- a joint filer as a single person could Mr. Speaker, Members of this House ishes society’s most basic institution? I make and still pay in the 15 percent cannot hide forever. The American peo- think not. tax bracket. That benefits 21 million ple know what is going on here. They I have been proud that this House has married working couples in the middle know that the surplus is gone. They led the fight in eliminating the mar- class. know that to pay for some of these tax riage tax penalty. Every House Repub- Also, we help the working poor. measures that we have no offsets for, lican has voted to eliminate the mar- There are 4 million working-poor mar- that we are going to dip into the Social riage tax penalty, even 60-some Demo- ried couples who now qualify for the Security trust fund; and they are very crats joined with us because they rec- earned income tax credit, the EIC, be- much against that. I believe they de- ognize that it is wrong to impose taxes cause of the marriage tax relief that we serve a heck of a lot better. on marriage; and today, we are going provide. As a result of that, we benefit We must be fiscally responsible. We to hear from those who fought every 36 million married working couples. must live up to our promises; and in step of the way our efforts to eliminate Think about that. What would happen the end, we should defeat this bill and the marriage tax penalty, and they are to these 36 million working couples if support the Democratic substitute. going to say just about anything, even we failed to make marriage tax penalty Mr. Speaker, I reserve the balance of saying Social Security is somehow in relief permanent? They are going to my time. jeopardy, if we eliminate the marriage pay a $42 billion tax increase in the Mr. HASTINGS of Washington. Mr. tax penalty. first 2 years. Speaker, I am pleased to yield 7 min- I would note that, by law, the assets There are those in Washington who utes to the gentleman from Illinois in the Social Security trust fund can- we are going to hear from today who (Mr. WELLER), who has been a cham- not be spent on anything but Social Se- are going to say we should let it expire; pion of this issue since he first came to curity, regardless of what the rest of we need that money to spend here in Congress. the budget looks like for that given Washington. Well, I believe a majority (Mr. WELLER asked and was given year. of this House will side with the Castillo permission to revise and extend his re- Let me give my colleagues an exam- family today. I believe that a majority marks.) ple of a couple back in my district that of the House, in a bipartisan way, is Mr. WELLER. Mr. Speaker, I stand I represent who benefit from what we going to side with hardworking, mid- in support of this rule. I stand in call the Bush tax cut, who benefit from dle-class families, like the Castillos, strong support of the basic bill that our efforts to eliminate the marriage and say, let us protect that marriage will come before this House. I urge bi- tax penalty. tax relief. partisan opposition to the substitute I have here before us Jose and Let us make it permanent to ensure and motion to recommit that will be Magdalena Castillo and their children that couples like Jose and Magdalena offered today and ask bipartisan sup- Eduardo and Carolina. Jose and are able to use that money for their port for permanent elimination of the Magdalena are a working couple from own needs back at home and take care marriage tax penalty. Joliet, Illinois. Jose has an income of of little Carolina and Eduardo, because We are already hearing in the debate about $57,000. Magdalena has an income that is what this is all about. We want that has begun basically the excuses. of $25,000. Because they are married, to make our Tax Code more fair; and of We have to remember as we look back they file jointly. Their marriage tax course, we were successful last year in over the previous times we debated penalty was $1,125 before the Bush tax eliminating the marriage tax penalty. eliminating the marriage tax penalty cut was signed into law a year ago, and Unfortunately, because of an arcane there were always those on the other if we fail to make permanent marriage rule in the Senate, it was temporary. side of the aisle who used every proce- tax relief once again, the Castillo fam- And it is funny: here in Washington it dural trick they could come up with or ily will suffer the marriage tax pen- is so easy to pass a permanent tax in- argument to oppose eliminating the alty, and in their case, that is $1,125. crease. It is so easy to pass a perma- marriage tax penalty because that is Think about it. Here in Washington, nent spending increase, but there are what it is all about here in Wash- $1,125 is pocket change, when we are people here in Washington that will ington. It is who controls those dollars talking in millions and billions and fight tooth and nail every effort to help and whether they are going be spent trillions, the big numbers we talk working families like the Castillos by here in Washington or spent back about; but for a working couple, the 36 providing permanent marriage tax re- home. million married couples who suffer the lief. That is part of the fundamental de- marriage tax penalty, it is real money. Let us work in a bipartisan way. Let bate we have today in this issue of the That $1,125 is several months of day us work to help good hardworking peo- marriage tax penalty. Unfortunately, care for little Carolina and Eduardo. It ple like the Castillos keep their own because of an arcane rule in the Sen- is a couple of months’ worth of car pay- hard-earned dollars. Why should they ate, marriage tax penalty relief, which ments. It is a down payment on a home pay higher taxes just because they are was included in the Bush tax cut, was or a new car. It is money that can be married? Often, it is asked in this de- provided for on a temporary basis; and set aside in education savings accounts bate who most benefits from tax relief. unfortunately when it expires, it will for Eduardo and Carolina and for their Well, if we look at the statistics, those amount to a $42 billion tax increase on future plans and their future years, but who earn between $20,000 and $75,000, 36 million married working couples it is real money for real people. middle-class families are those who are who suffer what we call the marriage We worked to eliminate the marriage hardest hit by the marriage tax pen- tax penalty. tax penalty in several ways, and Presi- alty. Let me explain what the marriage dent Bush signed into law our legisla- So if we all claim to be friends of the tax penalty is. That is when there is a tion last year which helped those who middle class, we should want to make

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.004 pfrm04 PsN: H13PT1 H3518 CONGRESSIONAL RECORD — HOUSE June 13, 2002 permanent marriage tax relief, and I Baker Flake LoBiondo Sandlin Souder Udall (CO) Baldacci Fletcher Lofgren Sawyer Spratt Udall (NM) know we are going to hear from the ex- Baldwin Foley Lowey Saxton Stearns Upton cuses caucus who are going to come up Ballenger Ford Lucas (KY) Schaffer Stenholm Velazquez with every excuse to oppose this legis- Barcia Fossella Lucas (OK) Schiff Strickland Visclosky lation. Let us move in a bipartisan Barr Frank Luther Schrock Stump Vitter Barrett Frelinghuysen Lynch Scott Stupak Walden way. Let us have bipartisan support for Bartlett Frost Maloney (CT) Sensenbrenner Sullivan Walsh this rule. Let us move for permanent Barton Gallegly Maloney (NY) Serrano Sununu Wamp marriage tax relief. Bass Ganske Manzullo Sessions Sweeney Watkins (OK) Shadegg Tancredo Watson (CA) Mr. MCGOVERN. Mr. Speaker, I yield Becerra Gekas Markey Bentsen Gephardt Mascara Shaw Tanner Watts (OK) myself such time as I may consume. Bereuter Gibbons Matheson Shays Tauscher Waxman I want to say that I agree with the Berkley Gilchrest Matsui Sherwood Tauzin Weiner gentleman from Illinois that families Berman Gillmor McCarthy (MO) Shimkus Taylor (MS) Weldon (FL) Berry Gilman McCarthy (NY) Shows Taylor (NC) Weldon (PA) like the ones he mentioned, Jose and Biggert Gonzalez McCollum Shuster Terry Weller Magdalena, deserve relief, and we all Bilirakis Goode McCrery Simmons Thomas Wexler want to work to provide them that re- Bishop Goodlatte McGovern Simpson Thompson (CA) Whitfield Skeen Thompson (MS) Wicker lief; but what we are simply saying Blumenauer Gordon McHugh Blunt Goss McIntyre Skelton Thornberry Wilson (NM) here is we need to make sure we prop- Boehlert Graham McKeon Slaughter Thune Wilson (SC) erly pay for that relief. I am sure that Boehner Granger McKinney Smith (MI) Thurman Wolf Bonilla Graves McNulty Smith (NJ) Tiahrt Woolsey that family would not appreciate Smith (WA) Tiberi Wu knowing that we are paying for some of Bonior Green (TX) Meehan Boozman Green (WI) Meek (FL) Snyder Toomey Wynn these tax cut bills by dipping into the Borski Greenwood Meeks (NY) Solis Turner Young (FL) Social Security trust fund. Boswell Grucci Menendez NAYS—22 Every time that we pass an education Boucher Gutierrez Mica Boyd Gutknecht Millender- Abercrombie Jackson (IL) Schakowsky measure here, we have to find an offset. Brady (PA) Hall (TX) McDonald Cardin Kleczka Sherman Every time we pass a bill to protect a Brady (TX) Hansen Miller, Dan Conyers Kucinich Stark park or to improve our environment, Brown (FL) Harman Miller, Gary Cummings Lee Tierney DeFazio Nadler Waters we need an offset. Every time we have Brown (OH) Hart Miller, George Brown (SC) Hastings (FL) Miller, Jeff Filner Pastor Watt (NC) a health care measure on the floor, we Bryant Hastings (WA) Mink Hilliard Sabo need an offset; and yet what we are Burr Hayes Mollohan Hinchey Sanders asking for here is where are the offsets Buyer Hayworth Moore NOT VOTING—27 to pay for all of this. Callahan Hefley Moran (KS) Calvert Herger Moran (VA) Blagojevich Forbes Nussle The American people do not want to Camp Hill Morella Bono Hall (OH) Owens go further into debt. The American Cannon Hinojosa Murtha Burton Hilleary Peterson (MN) people do not want to jeopardize the Cantor Hobson Myrick Clayton Houghton Price (NC) Capito Hoeffel Napolitano Combest Johnson, E. B. Quinn Social Security trust fund. They want Capps Hoekstra Neal Crane Jones (OH) Smith (TX) us to be responsible, and I think work- Capuano Holden Nethercutt Deutsch Kennedy (RI) Towns ing in a bipartisan way we could pro- Carson (IN) Holt Ney Ehrlich McDermott Traficant English McInnis Young (AK) vide marriage tax relief and at the Carson (OK) Honda Northup Castle Hooley Norwood same time pay for it; but for whatever Chabot Horn Oberstar b 1054 reason, the other side does not want to Chambliss Hostettler Obey Messrs. WATT of North Carolina, do that. Clay Hoyer Olver STARK, SHERMAN, CONYERS, Clement Hulshof Ortiz Mr. Speaker, we have no further re- Clyburn Hunter Osborne KUCINICH, Ms. LEE and Mr. SAND- quests for time, and I yield back the Coble Hyde Ose ERS changed their vote from ‘‘yea’’ to balance of my time. Collins Inslee Otter ‘‘nay.’’ Mr. HASTINGS of Washington. Mr. Condit Isakson Oxley Cooksey Israel Pallone Ms. KILPATRICK, Mr. DOGGETT, Speaker, I yield back the balance of Costello Issa Pascrell Ms. CARSON of Indiana and Mr. HOLT my time, and I move the previous ques- Cox Istook Paul changed their vote from ‘‘nay’’ to tion on the resolution. Coyne Jackson-Lee Payne ‘‘yea.’’ Cramer (TX) Pelosi The previous question was ordered. Crenshaw Jefferson Pence Mr. TANCREDO changed his vote The SPEAKER pro tempore (Mr. Crowley Jenkins Peterson (PA) from ‘‘present’’ to ‘‘yea.’’ LAHOOD). The question is on the resolu- Cubin John Petri So the resolution was agreed to. Culberson Johnson (CT) Phelps tion. Cunningham Johnson (IL) Pickering The result of the vote was announced The question was taken; and the Davis (CA) Johnson, Sam Pitts as above recorded. Speaker pro tempore announced that Davis (FL) Jones (NC) Platts A motion to reconsider was laid on the ayes appeared to have it. Davis (IL) Kanjorski Pombo the table. Davis, Jo Ann Kaptur Pomeroy Mr. MCGOVERN. Mr. Speaker, I ob- Davis, Tom Keller Portman Stated for: ject to the vote on the ground that a Deal Kelly Pryce (OH) Mr. NUSSLE. Mr. Speaker, on Thursday, quorum is not present and make the DeGette Kennedy (MN) Putnam June 13, 2002, my vote was not recorded on Delahunt Kerns Radanovich point of order that a quorum is not DeLauro Kildee Rahall rollcall vote No. 226. Had my vote been represent. DeLay Kilpatrick Ramstad corded, it would have been in the following The SPEAKER pro tempore. Evi- DeMint Kind (WI) Rangel manner: Rollcall vote No. 226—H. Res. 440 Diaz-Balart King (NY) Regula dently a quorum is not present. Dicks Kingston Rehberg providing for the consideration of H.R. 4019— The Sergeant at Arms will notify ab- Dingell Kirk Reyes ‘‘aye.’’ sent Members. Doggett Knollenberg Reynolds f The SPEAKER pro tempore. This 15- Dooley Kolbe Riley Doolittle LaFalce Rivers THE JOURNAL minute vote on agreeing to the resolu- Doyle LaHood Rodriguez tion will be, followed by a 5-minute Dreier Lampson Roemer The SPEAKER pro tempore (Mr. vote, if ordered, on approving the Jour- Duncan Langevin Rogers (KY) LAHOOD). Pursuant to clause 8 of rule Dunn Lantos Rogers (MI) nal. Edwards Larsen (WA) Rohrabacher XX, the pending business is the ques- The vote was taken by electronic de- Ehlers Larson (CT) Ros-Lehtinen tion of agreeing to the Speaker’s ap- vice, and there were—yeas 385, nays 22, Emerson Latham Ross proval of the Journal. Engel LaTourette Rothman not voting 27, as follows: Eshoo Leach Roukema The question is on the Speaker’s ap- [Roll No. 226] Etheridge Levin Roybal-Allard proval of the Journal of the last day’s Evans Lewis (CA) Royce YEAS—385 proceedings. Everett Lewis (GA) Rush The question was taken; and the Ackerman Allen Baca Farr Lewis (KY) Ryan (WI) Aderholt Andrews Bachus Fattah Linder Ryun (KS) Speaker pro tempore announced that Akin Armey Baird Ferguson Lipinski Sanchez the ayes appeared to have it.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.006 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3519 RECORDED VOTE Platts Saxton Thomas Economic Growth and Tax Relief Rec- Pombo Schiff Thornberry Mr. MCGOVERN. Mr. Speaker, I de- Pomeroy Schrock Thune onciliation Act of 2001 shall be perma- mand a recorded vote. Portman Sensenbrenner Thurman nent, and ask for its immediate consid- A recorded vote was ordered. Pryce (OH) Serrano Tiahrt eration. Putnam Sessions Tiberi The Clerk read the title of the bill. The SPEAKER pro tempore. This Radanovich Shadegg Tierney will be a 5-minute vote. Rahall Shaw Toomey The SPEAKER pro tempore (Mr. The vote was taken by electronic de- Rangel Shays Turner LAHOOD). Pursuant to House Resolu- Regula Sherman Upton tion 440, the bill is considered read for vice, and there were—ayes 344, noes 56, Rehberg Sherwood Velazquez answered ‘‘present’’ 1, not voting 33, as Reyes Shimkus Vitter amendment. follows: Reynolds Shows Walden The text of H.R. 4019 is as follows: Riley Shuster Walsh H.R. 4019 [Roll No. 227] Rivers Simmons Wamp Be it enacted by the Senate and House of Rep- YEAS—344 Rodriguez Simpson Watkins (OK) Roemer Skeen Watson (CA) resentatives of the United States of America in Abercrombie Dingell Kelly Rogers (KY) Skelton Watt (NC) Congress assembled, Ackerman Doggett Kerns Rogers (MI) Slaughter Watts (OK) Akin Dooley Kildee SECTION 1. MARRIAGE PENALTY RELIEF PROVI- Rohrabacher Smith (MI) Waxman SIONS MADE PERMANENT. Allen Doolittle Kilpatrick Ros-Lehtinen Smith (NJ) Weiner Andrews Doyle Kind (WI) Ross Smith (WA) Weldon (FL) Title IX of the Economic Growth and Tax Baca Dreier King (NY) Rothman Snyder Weldon (PA) Relief Reconciliation Act of 2001 (relating to Bachus Duncan Kingston Roukema Solis Wexler sunset of provisions of such Act) shall not Baker Dunn Kirk Roybal-Allard Souder Whitfield apply to title III of such Act (relating to Baldacci Edwards Kleczka Royce Spratt Wilson (NM) marriage penalty relief). Ballenger Ehlers Knollenberg Rush Stearns Wilson (SC) Barcia Ehrlich Kolbe Ryan (WI) Sullivan Wolf The SPEAKER pro tempore. After 1 Barr Emerson LaFalce Ryun (KS) Sununu Woolsey hour of debate on the bill, it shall be in Barrett Engel LaHood Sanchez Tauscher Wynn order to consider an amendment print- Bartlett Eshoo Lampson Sanders Tauzin Young (FL) Barton Etheridge Langevin Sandlin Taylor (NC) ed in House Report 107–504, if offered by Bass Evans Lantos Sawyer Terry the gentleman from New York (Mr. Becerra Everett Larson (CT) RANGEL) or his designee, which shall be Bentsen Farr LaTourette NAYS—56 Bereuter considered read, and shall be debatable Fattah Leach Aderholt Hulshof Sabo Berkley Ferguson Lee Baird Kennedy (MN) Schaffer for 1 hour, equally divided and con- Berman Flake Levin Baldwin Kucinich Schakowsky trolled by the proponent and an oppo- Berry Foley Lewis (CA) Borski Larsen (WA) Scott Biggert nent. Fossella Lewis (KY) Brady (PA) Latham Strickland Bilirakis The gentleman from California (Mr. Frank Linder Brown (OH) Lewis (GA) Stupak Bishop Frelinghuysen Lipinski Capuano LoBiondo Sweeney THOMAS) and the gentleman from Cali- Blumenauer Frost Lofgren Costello Manzullo Tanner fornia (Mr. MATSUI) each will control 30 Blunt Gallegly Lowey Crane Markey Taylor (MS) Boehlert minutes of debate on the bill. Ganske Lucas (KY) DeFazio McGovern Thompson (CA) Boehner Gekas Lucas (OK) Filner McNulty Thompson (MS) The Chair recognizes the gentleman Bonilla Gephardt Luther Fletcher Menendez Udall (CO) from California (Mr. THOMAS). Bonior Gibbons Lynch Green (TX) Miller, George Udall (NM) Boozman Mr. THOMAS. Mr. Speaker, I yield Gilchrest Maloney (CT) Gutknecht Moran (KS) Visclosky Boswell myself such time as I may consume. Gillmor Maloney (NY) Hart Oberstar Waters Boucher Gilman Mascara Hastings (FL) Olver Weller Mr. Speaker, yesterday the House Boyd Gonzalez Matheson Hefley Pallone Wicker was privileged in a joint session to hear Brady (TX) Goode Matsui Hilliard Payne Wu from the Prime Minister of Australia. Brown (FL) Goodlatte McCarthy (MO) Hinchey Ramstad Brown (SC) Gordon McCarthy (NY) It was, I hope, for most Members a Bryant Goss McCollum ANSWERED ‘‘PRESENT’’—1 rather refreshing presentation of the Burr Graham McCrery Tancredo Buyer Granger McHugh closeness of the two countries, because Callahan Graves McIntyre NOT VOTING—33 he provided us with a speech which Calvert Greenwood McKeon pointed with pride and viewed with Armey Green (WI) Peterson (MN) Camp Grucci McKinney alarm. Cannon Gutierrez Meehan Blagojevich Hall (OH) Pitts Cantor Hall (TX) Meek (FL) Bono Hilleary Price (NC) He talked about areas in which we Capito Hansen Meeks (NY) Burton Houghton Quinn have common purpose, and areas where Capps Harman Mica Clayton Johnson, E. B. Smith (TX) the Australians, through the Prime Cardin Hastings (WA) Millender- Combest Jones (OH) Stark Carson (IN) Hayes McDonald DeLay Kaptur Stenholm Minister as the head of the govern- Carson (OK) Hayworth Miller, Dan Deutsch Kennedy (RI) Stump ment, had some concern about legisla- Castle Herger Miller, Gary English McDermott Towns tion that we might be passing. Forbes McInnis Traficant Chabot Hill Miller, Jeff But I want to focus on one small Chambliss Hinojosa Mink Ford Owens Young (AK) Clay Hobson Mollohan statement that he made which I think Clement Hoeffel Moore b 1102 has profound significance and which I Clyburn Hoekstra Moran (VA) So the Journal was approved. had not quite heard it put the way the Coble Holden Morella Collins Holt Murtha The result of the vote was announced Prime Minister put it. He said that the Condit Honda Myrick as above recorded. best structure for social welfare is the Conyers Hooley Nadler f family. And although we have dis- Cooksey Horn Napolitano cussed in many different ways the Cox Hostettler Neal PERSONAL EXPLANATION Coyne Hoyer Nethercutt value and virtues of the family, the Cramer Hunter Ney Mr. KENNEDY of Rhode Island. Mr. Speak- idea that from a societal point of view Crenshaw Hyde Northup er, on June 13, 2002, I was unavoidably de- the ability to nurture the family struc- Crowley Inslee Norwood Cubin Isakson Nussle tained at the Martin Luther King Jr. National ture as the best social welfare unit is, Culberson Israel Obey Memorial Project Board of Directors Meeting. I think, what we are about today. Cummings Issa Ortiz Consequently I missed two votes. In this system, or in any system, if Cunningham Istook Osborne Had I been here I would have voted: ‘‘yea’’ you do not want something, if you Davis (CA) Jackson (IL) Ose Davis (FL) Jackson-Lee Otter on rollcall No. 226; ‘‘aye’’ on rollcall No. 227. want to discourage it, you put up bar- Davis (IL) (TX) Oxley f riers. One of the cleanest barriers that Davis, Jo Ann Jefferson Pascrell you can put up to stop activity is to Davis, Tom Jenkins Pastor PERMANENT MARRIAGE PENALTY tax something. If it costs you more to Deal John Paul RELIEF ACT OF 2002 DeGette Johnson (CT) Pelosi do a particular behavior, you tend to Delahunt Johnson (IL) Pence Mr. THOMAS. Mr. Speaker, pursuant do less of it. If we want to encourage a DeLauro Johnson, Sam Peterson (PA) to House Resolution 440, I call up the particular kind of behavior, we should DeMint Jones (NC) Petri Diaz-Balart Kanjorski Phelps bill (H.R. 4019) to provide that the mar- reward it or create incentives for it, or, Dicks Keller Pickering riage penalty relief provisions of the at the very least, make sure that in the

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.009 pfrm04 PsN: H13PT1 H3520 CONGRESSIONAL RECORD — HOUSE June 13, 2002 way we engage in governmental inter- understand the dilemma we are in, pri- riage tax penalty and who will benefit activity in that area is to remain neu- marily because of the tax bill that we from the permanency that is before us tral. passed last year. today. During the last several years as We are here today to take the tax I know that there are Members on we have debated eliminating the mar- structure, which historically has penal- both sides of the aisle that share our riage tax penalty, we have often asked ized marriage, which is the foundation concern about acting this year on pre- a very fundamental question, and that for that family unit, and we have pe- scription medicines for seniors and pro- is, is it right, is it fair that under our nalized it by virtue of the way in which tecting the Social Security system. So, Tax Code if one is married that one the tax structure is arranged. Indeed, quite frankly, Mr. Speaker, I do not pays higher taxes than one would if he today we are half enlightened. That is, understand why we are considering this were single? Is it right that under our we have decided to suspend the penalty bill at this time. Tax Code that our society’s most basic through the tax structure on marriage The bill takes effect 10 years from institution should suffer higher taxes for a period of time. now. If we learned anything during the just because a couple is married? And I It is through no fault of the House debate last year, it is that we cannot am proud to say this House has ad- that this has occurred, because the even predict 1 year in the future, let dressed this issue, and last year we House passed permanent marriage re- alone 10 years in the future. passed legislation to provide tem- lief reform. It is because of the con- Last year we thought we had a $5.6 porary relief eliminating the marriage stitutional necessity to have the House trillion surplus. We are now told that tax penalty for a temporary period of and the Senate agree on a structure to under the unified budget that the def- time. be sent to the President to become law. icit this year, not surplus, deficit, will Let us remember that the marriage Under the arcane rules of the Senate, be between $150 billion to $200 billion. tax penalty is a middle-class issue. Al- at the time that this was moved, it We cannot predict 1 year into the fu- most every Member of this House often could only be done for 10 years. ture. How can we predict 10 years in gets up and talks about how they are Notwithstanding the fact that 10 the future? an advocate for the middle class be- We do know that this legislation, years seems a long way off, one of the cause that is the majority of Ameri- when implemented, will cost another things we ought to do at the first op- cans, and I would note it is the middle $25 billion a year and add to our defi- portunity and at every opportunity is class that suffers the marriage tax pen- cits. We do know that at the time this to correct that fundamental flaw, that alty disproportionately more than oth- legislation takes effect, the baby if in fact we have decided that we ers; and those who suffer the most are boomers will becoming eligible for So- in the income levels between $20,000 ought not to penalize marriage, then cial Security and Medicare, putting and $70,000. Again, the marriage tax we ought to make it permanent. And greater stress on both Social Security penalty is a middle-class issue. that is the sum and substance of the and Medicare. Mr. Speaker, I would note that 2 legislation that is before us today, to Mr. Speaker, one thing is clear and years ago we passed legislation pro- take a provision that is currently tem- that is that if you are going to go back viding for permanent marriage tax pen- porary in the law and make it perma- this weekend and talk to your medical alty relief. It passed with 282 to 144 nent. If you are not going to communities and your senior advocates votes, and even 64 Democrats joined incentivize marriage, at the very least and you are going to tell them how with every House Republican to pro- make sure you do not punish it. That is much you are in favor of prescription vide marriage tax relief benefiting 36 what this vote and debate is all about. medicine coverage under Medicare and million married working couples; and Mr. Speaker, I yield the balance of dealing with the other issues and that unfortunately because of an arcane my time to the gentleman from Illinois you are for fiscal responsibility, if you Senate rule, it forced our efforts to (Mr. WELLER), and ask unanimous con- are going to do that, you cannot do provide temporary relief, and that is sent that he control the time. that with a straight face and still vote why we are here today, to make it per- The SPEAKER pro tempore. Is there for the legislation that is before us. manent. objection to the request of the gen- I urge my colleagues to reject the Last year’s tax law, which President tleman from California? legislation. Bush signed on June 6, 2001, eliminated There was no objection. Mr. WELLER. Mr. Speaker, I yield the marriage tax penalty for 36 million Mr. MATSUI. Mr. Speaker, I yield 3 myself as much time as I might con- couples in three different ways. There minutes to the distinguished gen- sume. are different types of taxpayers out tleman from Maryland (Mr. CARDIN), a Before I begin my remarks, I would there. There are those who do not member of the Committee on Ways and just like to note that my good friend, itemize, and those who do not itemize, Means. the gentleman from Maryland (Mr. they use something called the standard Mr. CARDIN. Mr. Speaker, I thank CARDIN), has consistently voted ‘‘no’’ deduction; and what we did last year in the gentleman for yielding me time. on efforts to eliminate the marriage legislation that became law under a Mr. Speaker, last night I had a tax penalty, and of course his justifica- temporary basis was double the stand- chance to meet with members of the tion for voting ‘‘no’’ again today, even ard deduction to twice that for joint medical community in a new part of though 66,851 married couples benefit filers to twice that for singles. That my district and with senior advocates, from elimination of the marriage tax benefits 20 million American couples. and they asked me what Congress was penalty in his district in Maryland, is Second, for those who do itemize, and going to do about prescription medi- consistent. So I commend him on his those are middle-class couples who own cine because of the dire need in our consistency for opposition to elimi- a home or give money to their church community. They wanted to know nating the marriage tax penalty, and or institution of faith, their synagogue, what was going to happen with hos- his excuse that we need to spend more their temple, their mosque, charity as pital and physician reimbursement money here in Washington is some- well as probably own a home, they rates, because there is a real critical thing we will hear from all the others itemize. And they benefit from the wid- need in that community. They wanted in opposition to this bill. ening of the 15 percent tax bracket so to know whether seniors were going to Mr. Speaker, I appreciate the oppor- they can earn twice as much income in have greater choice in their options tunity before this House today to bring the 15 percent bracket as a joint filer under Medicare. But they wanted to H.R. 4019, the Permanent Marriage Tax as a single filer; 20 million couples ben- know whether the funds would be Relief Act of 2002, before this House of efit from the widening of the 15 percent available in Congress to deal with Representatives. This is legislation tax bracket. these issues. which makes the marriage tax penalty And, third, and we all care and are I explained to them the budget prob- relief provisions of the Economic concerned about the working poor, we lems that we are currently con- Growth and Tax Relief Act of 2001 per- expanded the eligibility for the earned fronting, and they certainly under- manent. We have often known that leg- income credit for the working poor by stand the fact that we do not want to islation as the Bush tax cut. eliminating the marriage penalty and use Social Security funds in order to There are 36 million working married the earned income credit, what some deal with these pressing needs. They couples who are impacted by the mar- call the earned income tax credit.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.018 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3521 b 1115 today is a vote for a $42 billion tax in- have today has little to do with that. That benefits 4 million married crease on 36 million married working Indeed, some people have suggested working couples who we consider work- couples. that the Republican tactic of having a ing poor. Let us do the right thing. Let us be tax cut vote every week, more or less, Mr. Speaker, 36 million married fair. Let us do the just thing for these is just a contrived, election year ploy. working couples benefit from the mar- married working couples. We are going Others have suggested that no, it is riage tax relief that is before us today. to hear excuses from the same people really just the only subject, cutting It should be made permanent. who have voted consistently against taxes, that the Republican caucus can Since 1969, our tax laws have pun- providing marriage tax relief that they come to agreement on among them- ished married couples when both would rather find a way to spend this selves. And while both of those state- spouses work, and there is no other money here in Washington rather than ments are probably true, I think that reason. It is right and it is fair to allowing good couples like Jose and the real intention here in offering this eliminate the marriage tax penalty. We Magdelene Castillo to keep their hard- proposal today as one element of a $4 believe the Tax Code should be mar- earned dollars to take care of their trillion tax cut relates to the basic op- riage-neutral, and a couple living to- family’s needs by eliminating the mar- position to the preservation of Social gether as two singles should pay no riage tax penalty. Security and Medicare by the Repub- more than a married couple, and vice I ask for bipartisan support today, lican Party here in the House. versa. Unfortunately, the marriage tax and I look forward to participating in Mr. Speaker, the Members of the penalty has been proven to exact a dis- the debate. House Republican leadership have proportionate toll on working women Mr. Speaker, I reserve the balance of never really believed in Social Security and lower income couples with chil- my time. and Medicare. To use their language, dren. Mr. MATSUI. Mr. Speaker, I yield they want to ‘‘privatize’’ Social Secu- Many times before this House I have myself such time as I may consume. rity. They have a plan to privatize introduced citizens of mine, couples I really do not understand why the Medicare and encourage people to get from back home who suffer the mar- gentleman is so concerned about the out of the traditional Medicare system. riage tax penalty. Recently I have in- marriage penalty tax expiring. Most of There is no way that we can maintain troduced a couple from my district, the provisions have not even come into the long-term dependability of Social Jose and Magdelene Castillo of Joliet, effect yet. The doubling of the standard Security and Medicare so long as we Illinois. They have a combined income deduction for couples will not take ef- add another $4 trillion of tax breaks, at of $82,000 a year. Jose makes $57,000, fect until 2005. The doubling of the 15 the same time we are letting corpora- Magdelene makes $25,000. They have 2 percent back for couples will not take tions flee America and escaping their children, Eduardo and Carolina. As a effect until 2005. In fact, the only provi- responsibility to fund national secu- result of the legislation we passed, sion in the whole area that has taken rity. There is no way we can have it their marriage tax penalty of $1125 is effect is the earned income tax credit. all. I believe that the disinterest in eliminated with the temporary meas- So I do not know why we are spending having Medicare and Social Security as ure that we passed and was signed into so much time on the whole issue of ex- a publicly financed, publicly supported law last year. That represented a 12 tending it when it has not even taken system in which every American can percent reduction in taxes for the effect yet. participate, that that lies at the heart Castillo family. Mr. Speaker, I yield 51⁄2 minutes to of bills like the one we have here Now, $1125 is pennies, pocket change the distinguished gentleman from the today. in Washington, D.C., but for real peo- State of Texas (Mr. DOGGETT), a mem- Now, I have had the good fortune to ple, real Americans, real working mar- ber of the House Committee on Ways be married to a great woman for a lit- ried couples back home in Joliet, Illi- and Means. tle over 32 years. My parents have been nois, $1125 is a lot of money. It is a Mr. DOGGETT. Mr. Speaker, I thank married for over 56 years. Marriage is a sizeable amount of money to set aside the gentleman for yielding me this great institution. But I recognize that each year in an education savings ac- time. I just want to say at the outset not every family in America has been count for little Eduardo and Carolina. that the gentleman from Illinois’s (Mr. as fortunate as I have. Indeed, the rea- It is several months’ worth of car pay- WELLER) attack on our colleague, the son that this current problem in the ments; it is several months’ worth of gentleman from Maryland (Mr. CARDIN) Tax Code exists is because a widow day care for Eduardo and Carolina with the suggestion that he has never from World War II came to the Con- while mom and dad are at work. The supported correction of the marriage gress decades ago and said that the law bottom line is, it is real money for real penalty is totally unjustified, and it is discriminates against me. I am having people. factually inaccurate. Indeed, in 1995, to pay more than my married friends, In Illinois, 1,149,196 married working when the Republicans under Newt and my husband sacrificed his life in couples benefit from the $2.9 billion of Gingrich had their much-ballyhooed defense of this country. The bill that is marriage tax relief they will receive ‘‘Contract With America,’’ the Demo- before us today to make it permanent because of the Bush tax cut enacted crats on the Committee on Ways and the way they have written it can just into law last year. Means, including the gentleman from as easily be called the ‘‘Widow Penalty Congress needs to work together to Maryland (Mr. CARDIN), proposed to in- Act.’’ It can be called the ‘‘Battered ensure that this tax relief, this elimi- clude marriage penalty tax relief and Woman Penalty Act.’’ It can be called nation of the marriage tax penalty, is implement all of the provisions of the the ‘‘Single Person’s Penalty Act,’’ be- permanent. It is a fairness issue. We Contract With America on this subject cause it proposes to erect penalties in must ensure that 36 million couples in the tax bill before the committee. favor of marriage and against those who benefit from the marriage tax pen- It was the Republicans, on a party- who happen to be widows, who happen alty relief do not suffer a tax increase line vote, because they had so many to be battered women who have left when this temporary provision expires. special interest provisions they loaded their husband and, for one reason or Again, $1125 in marriage tax penalty into that tax bill, who chose to reject another, happen to be single. relief is real money for Jose and marriage penalty tax relief. At every I believe that our tax laws should be Magdelene Castillo, and I would note opportunity since then, Democrats neutral. This is not a neutral law. It for the 36 million married working cou- have proposed more marriage penalty tends to give more of its benefits to ples, the $42 billion tax increase that tax relief sooner than the Republicans those who are married. would occur when this provision ex- have. So statements suggesting that Mr. KLECZKA. Mr. Speaker, will the pires is real money for those families there is some kind of party-line dif- gentleman yield? as well. ference over marriage penalty tax re- Mr. DOGGETT. I yield to the gen- Let me make it very clear. A vote lief are absolutely inaccurate. tleman from Wisconsin. against making permanent the mar- Indeed, there has been, generally, Mr. KLECZKA. Mr. Speaker, the pre- riage tax penalty relief legislation, a broad, bipartisan support for cor- vious speaker, the gentleman from Illi- vote ‘‘no’’ on the legislation before us recting the marriage penalty. What we nois (Mr. WELLER) indicated to the

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.015 pfrm04 PsN: H13PT1 H3522 CONGRESSIONAL RECORD — HOUSE June 13, 2002 House that a couple in his district, the young families than the marriage pen- ington (Mr. MCDERMOTT), a distin- Castillos, would stand to lose $1,125. alty, the bill we are debating today. guished member of the Committee on When, if ever, would that occur if we do To increase the tax burden on a cou- Ways and Means. not repeal the sunset? ple simply because they choose to Mr. MCDERMOTT. Mr. Speaker, I am Mr. DOGGETT. Mr. Speaker, they do marry is unjust. We ask for neutrality, glad to see my amendment from 1995 not even propose to actually imple- to get in there and give extra credit to suddenly appeared out here. When ment the marriage penalty under their married people, or support single peo- Newt Gingrich took over this place, proposal for several additional years. ple ahead of married people, and this is there was a Contract on America. This Now, if we had taken the Democratic the bill we are debating today. was in it then, 1995. I proposed it in the alternative that we advanced last year, Last year we passed the bill that al- Committee on Ways and Means, and that would have been more benefical to leviates the marriage penalty, but the every single Republican voted against that family sooner than under their problem is that it returns in 2011. So it. proposal. now we need to make it permanent. Now we have a new day, and now we Mr. KLECZKA. But is it not true I find it amusing, if not have all this money, or we did have all that they would stand to lose money in unexplainable, that the opponents of this money. We thought we had all this 2010 if we do not repeal the sunset? this bill are talking on the one hand money. We set up a straw man. Last Mr. DOGGETT. Mr. Speaker, that is about how we are impacting the deficit year we passed a bill that said, people correct. There is nothing in today’s bill situation in the United States by the are going to get this benefit, but then that really helps them at all over the passage of the bill we are debating we get this and it is not permanent, so next several years. today and, on the other hand, being they voted last year for it; and now Mr. KLECZKA. So this is 2002. So we truthful by saying that this bill does they come out here and they say, oh, are talking about something that not take effect until 2011. So you can- oh, it is not permanent. Let us make it might happen and might not happen in not have it both ways. We do not im- permanent, in the midst of fiscal chaos. 8 years from now? pact the financial situation of the Republicans ought to be ashamed of Mr. DOGGETT. Mr. Speaker, it is the United States by which we are all very themselves. All the times I heard peo- specter. It is the ghost of relief. It is concerned, but by the time this bill ple standing out here telling me about great for an election year, though. I would go into effect, in fact, it would those liberals just spend and spend and think they have done a good job of hav- be January 1, 2011. Every number that spend, well, I am watching the Repub- ing a good election year ploy. we have puts us in the surplus position, licans just spend and spend and spend, But my concern is that with this whether it is in the Social Security but not on things people care about. basic underlying proposal, there is Trust Fund or the national budget by The drug benefit is gone. There is not some discrimination against single that year. going to be any drug benefit worth parents, against widows; that is what So double-counting the dollars that anything at all. On Medicare, people in led to this inequity to the code now. would provide for the extension perma- my district cannot get a doctor to ac- We ought not to disfavor them any nently of the marriage penalty is polit- cept a Medicare patient. But no, no, we more than we would disfavor married ical. It is not fair. have to add this marriage tax penalty people. The marriage penalty is discrimina- out here. That is what is going to save Finally, it is a matter that the chil- tory to working women. Right now, the America. dren of people—whether family, mar- Tax Code creates a disincentive for This election is going to be a test of ried, single parent, whatever—we are women to earn above a very low whether Americans can be fooled all going to place a penalty on them, and threshold. Women who make a salary the time by the folks that say, we are it is a national debt that, if they can that is on a par with their husbands are cutting your taxes and it will not hurt, implement every one of these perma- taxed in an extraordinary way, and the and you are not going to notice it. nent proposals, will be $4 trillion high- reason is that their additional salary They may get a couple of bucks back, er than if we reject them, as we should. upon marriage moves in to combine but if one’s mother has to pay for her Mr. WELLER. Mr. Speaker, I yield and thrust the young couple into a drugs and she is living on a Social Se- myself such time as I may consume. higher marginal rate. It is not a prob- curity benefit like mine is, 92 years Mr. Speaker, before yielding to the lem if there is a single wage earner, but old, $8,000 a year, who do Members gentlewoman from Washington (Ms. in today’s society we see 70 percent of think pays for her drugs? Do Members DUNN), I would like to comment that young women, women with young chil- think she can pay for it? Of course she this legislation actually makes the Tax dren, in the workforce, so it has be- cannot, so her sons and her daughter Code marriage-neutral so that single come increasingly a more and more are going to pay for it. people, widows, single people pay no common problem for all young people. They have, of course, this tax ben- more in taxes than a joint filer does According to conservative estimates, efit, now that they are married. Let us under their obligation, and vice versa. 36 million American couples right now see, there are two of us that are mar- That was the goal of this legislation are paying, on average, $1,700 more per ried and two are not. Two are paying when it passed and still is the goal of year in taxes because they are married. the penalty and two are not. We are the legislation. In my district alone in the State of going to use our penalty that we get I would also note that the gentleman Washington, about 73,000 couples are back, and we are going to go down and from Indiana (Mr. DOGGETT) is being adversely affected by the marriage pen- pay for my mother’s drugs. consistent. He voted ‘‘no’’ on providing alty. This is wrong and we need to The old people in this country would marriage tax relief, even though there change it. rather have the security of knowing are 58,612 working married couples who they had a pharmaceutical benefit suffer from the marriage tax penalty. b 1130 under Social Security. They would also Mr. Speaker, I yield 3 minutes to the As newlyweds start out in their new like to know, and the children would gentlewoman from Washington (Ms. life together, they should not face a like to know, that there is going to be DUNN), one of the House’s leading advo- punishing tax bill. I urge my colleagues a Social Security out there in 20 years. cates for widows and working women to help young couples to put them on But they gave it all away. They gave it in the Congress and who has been a the road to success, to establish in all away. proven leader in the effort to ensure their lives full usage of the American Last week it was estate tax, and this that family businesses stay in the fam- dream, to support the Permanent Mar- week they have a new one: this is the ily and in business when the founder riage Penalty Relief Act that takes marriage tax day. Next week, it will be passes on with her efforts in elimi- place in 2011, takes away all that dis- retirement benefits. Do Members want nating the death tax. crimination against the marriage of me to predict every week? Because we Ms. DUNN. Mr. Speaker, the Tax two young people, both of whom are in are about to go home. In about 3 hours Code has many unfair and inexplicable the working world. we will all be on planes, and everybody provisions, but none is more harmful to Mr. MATSUI. Mr. Speaker, I yield 3 has to get their press release out before young people wishing to marry and minutes to the gentleman from Wash- they get back to the district. So they

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.020 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3523 send out, today I voted for removing real way, $1,400 is real money to a mar- have here? I think the reason that is the tax penalty on marriage. They then ried couple with a family. the case, if I might just say, is an arti- go home and bask in the warmth of As for the other subjects addressed, I cle that was written on May 26 in The that kind of baloney. would encourage my friends to stay Washington Post, it was a Sunday When are they going to be honest tuned. We are going to work to bring Washington Post story by Kevin Phil- with people that they have to pay for forth a prescription drug benefit as lips, who devised the Republican plan, stuff? When are they going to be honest part of Medicare in the days ahead. We the southern Republican plan for Presi- with them? Vote ‘‘no.’’ welcome the chance to work together, dent Nixon back in 1967, he says in this Mr. WELLER. Mr. Speaker, I yield but perhaps it is just a difference in article, and it really is interesting: myself such time as I may consume. opinion on the whole notion of tax- The Republican House Ways and Means Mr. Speaker, I note the gentleman ation. For some in this Chamber, there Committee has become a virtual arm of the from Washington (Mr. MCDERMOTT) has is no higher and better use of people’s Washington lobbying community, routinely been consistent in voting in opposition money than in the coffers of the Fed- arranging legislative favors that would make to eliminating the marriage tax pen- eral Government. That is an opinion a madame blush. alty on this House floor, even though that Members will defend by a mul- The President and his family have dynasti- titude of different methods. cally involved themselves with the rise of there are 53,387 working couples who Enron Corporation as an inconvenient sym- suffer the marriage tax penalty in his For others of us, there is a notion bol of the recent excesses. Washington district. that if people hang onto their own money and save, spend, and invest it, That is what is going on. We should Mr. Speaker, I yield 2 minutes to the be dealing with tax shelters, some of gentleman from Arizona (Mr. revenues to the Federal Government will increase and we will be able to these things that Americans really HAYWORTH), a leader in the effort to care about. Instead, we are talking eliminate the marriage tax penalty. take care of that, but we will be truer to the American people from this about some tax law that may or may Mr. HAYWORTH. Mr. Speaker, I not come into effect in 2011, and tap thank my colleague, the gentleman sense: the money that is spent here does not belong to Washington; it be- into the Social Security trust fund. from Illinois, for yielding time to me. This is an absolutely outrageous act we I thank my friend, the gentleman longs to the American people. are committing today. from Washington (Mr. MCDERMOTT) for With this legislation today, setting up permanency and neutrality in the Mr. WELLER. Mr. Speaker, I yield a very curious revisionist history pol- myself such time as I may consume. icy. I am always happy to hear dif- Tax Code so that married couples are not penalized, the American people will I would note that the gentleman ferences of opinion that, indeed, do from California (Mr. MATSUI) has been exist. be better off; American families will be better off. I ask my colleagues to join a consistent ‘‘no’’ vote on eliminating Indeed, when I was in private life, I the marriage tax penalty. I respect his noted with interest Congresses long be- us in support of this measure. Mr. MATSUI. Mr. Speaker, I yield arguments in respect to opposition to fore I got here that had no compulsion the marriage tax penalty. whatsoever about dipping into Social myself 2 minutes. Mr. Speaker, I might just point out Mr. Speaker, I yield 1 minute to the Security and spending money that was that when Ronald Reagan was Presi- distinguished gentleman from Cali- not here, and spending and spending dent from 1981 to 1988, and George fornia (Mr. THOMAS), the chairman of and spending. My friend chooses to Bush, the first George Bush, was Presi- the Committee on Ways and Means. lampoon that, but that, in essence, was dent from 1988 to 1992, they dipped into Mr. THOMAS. Mr. Speaker, just so the fact. As our second President, John the Social Security trust fund; but it everyone here understands that this is Adams, told us, facts are stubborn was not anywhere near what we are probably one of the grossest forms of things. talking about now. politics that is being engaged in, the The fact about this bill on the floor What we are really talking about gentleman from California just took to today is that we are acting prospec- now is, on the 10-year projections his feet and indicated that we should tively, within the rules of the House, under current spending and tax policy, be spending our time on other factors. within the rules of revenue as they we are going to dip into Social Secu- He mentioned, for example, the ques- exist today. Would that we could rity by the sum of $1.7 trillion. If we do tion of inversions. change those rules. Would that we the estate tax, which the Republicans I just want all of the Members here could point out to the American people want to extend, defense authorization, to know that 1 week ago today, the an economic fact, which is when people the farm bill, which has been com- Committee on Ways and Means held a have more of their own money to save, pleted, it will add $3.2 trillion in terms hearing on inversions. Is it not ironic spend, and invest, revenues to the gov- of dipping into the Social Security that it was the gentleman from Cali- ernment actually increase. trust fund. fornia (Mr. MATSUI) who moved that Would that our friends on the left We are going to break the bank for the committee adjourn before the would take that into account. But in- our senior citizens when it comes to panel of experts was heard, before the stead, they would rather talk about so the retirement benefits that they ex- Members had a chance to respond to many subjects under the sun, and elec- pect to get. The police officers, the questions? tioneering, rather than the fact that if firefighters that are paying payroll So here he is, complaining that we we fail to act today, if we fail to make taxes right into that trust fund right are not looking at inversions, when he this relief permanent, due not to a sit- now, they do not realize that it is was the one that moved to adjourn the uation of our own making but another going out in the form of estate tax pay- committee. Now, that is politics. body in close proximity with an arcane ments, in the form of farm support Mr. MATSUI. Mr. Speaker, I yield rule that failed to allow us to make payments, in the form of so-called mar- myself 1 minute. this permanent, we will be, in essence, riage penalty. I just wanted to respond to the chair- putting a tax back on the backs of the I have to say that I find it inex- man of the Committee on Ways and American people in the year 2011. plicable today that we are spending 3 Means. I have to say the reason we I listened with interest as my friend, hours today on this issue. I have to say asked that the meeting be adjourned, the gentleman from Washington (Mr. that here at a time when Stanley but the chairman did grant us, is be- MCDERMOTT), readily dismissed the Works in Connecticut, Ohio, is at- cause the drafter of the legislation that value of $1,000. I believe the average, tempting to move offshore into Ber- would have dealt with the problem of once this is fully implemented, the av- muda to save $30 million in taxes, when Stanley Works in Connecticut was the erage will be about $1,400 per married Neighbors Industries is talking about gentleman from Connecticut (Mr. couple. Again, I guess this reflects a voting to go offshore into Bermuda to MALONEY). He was not allowed to tes- difference in our philosophy. I know it save millions of dollars in taxes, we are tify. He was not allowed to testify on is easily lampooned, or perhaps, from messing around with something that his own bill with his own level of exper- time to time, we get jaundiced about will not take effect until 2011. tise. the fact, and we talk about trillions Does this not say something about We just thought that it was discour- and billions of dollars. But in a very the priorities and the values that we teous for the other side of the aisle,

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.022 pfrm04 PsN: H13PT1 H3524 CONGRESSIONAL RECORD — HOUSE June 13, 2002 particularly the chairman, not to allow Members are reminded to not address they always want to argue a different the gentleman who drafted the bill, their comments to the viewing audi- issue. One week ago today the elimi- who could testify with the level of ex- ence or the gallery. nation of the estate tax was on the pertise on this issue, to testify. That Mr. KLECZKA. Mr. Speaker, I am ad- floor. They did not like us voting on it. was the issue itself. dressing them through you. The RECORD shows it passed. Today the If the gentleman could explain why The SPEAKER pro tempore. The gen- marriage penalty will pass. Next week he did not allow the gentleman from tleman may proceed. we will be introducing legislation to Connecticut (Mr. MALONEY) to testify, Mr. KLECZKA. Mr. Speaker, what I deal with prescription drugs. But about we would like to know it. He never did was trying to say, and I am assuming this Maloney baloney, understand this, explain why the gentleman from Con- what this neighbor will also say is, we have had 17 full committee hearings necticut (Mr. MALONEY), a member of well, what did you hear about the def- and only once did we have a member the House of Representatives, was de- icit? Because last year I recall reading panel. It is not the ordinary and cus- nied the opportunity to testify. a newspaper. We are going to have sur- tomary thing that we do. That is balo- Mr. Speaker, I yield 2 minutes to the pluses for as far as the eye can see. ney. We have had subcommittee hear- gentleman from Wisconsin (Mr. KLECZ- What did they say about the $300 bil- ings. We have had 68 subcommittee KA). lion deficit of this year? And you are hearings and we have had 60 members Mr. KLECZKA. Mr. Speaker, let me going to have to say back to them, testify at those subcommittee hear- thank the gentleman for yielding time nothing. They did not bring it up. ings. We are having a subcommittee to me. Well, how about a drug program that hearing on inversions. We have invited I would also respond to the chairman. our seniors are in dire need of, where in the gentleman from Connecticut (Mr. I happen to be a member of the Com- my State hundreds and thousands of MALONEY). Let us see if he comes, as mittee on Ways and Means. One of the seniors want Congress to act? No, they all the other Members have come to reasons we had to adjourn last week is did not address that. They are talking the subcommittee. because at the same time we had this about this bill that might be a problem The reason they wanted to disrupt hearing in one of the buildings across in 2011. the hearing was because they want to the street, the House was debating a Mr. Speaker, let us separate the try to make a political point. The very important piece of legislation wheat from the chaff. What we are Maloney business is baloney. from the same committee. That was a doing today is nothing but politics to Mr. MATSUI. Mr. Speaker, I yield 3 permanent repeal of the inheritance benefit some of the Members of this minutes to the distinguished gen- tax. House in November of 2002. Clear and tleman from Maryland (Mr. HOYER). Members remember the inheritance simple, that is what it is all about. And Mr. HOYER. Mr. Speaker, we con- tax. That is where 2 percent of the pub- the gentleman will say, well, the gen- tinue on what I call the fiscal irrespon- lic pays something when their estates tleman from Wisconsin (Mr. KLECZKA) sibility rampage that the majority are probated. It is for the very, very voted against a marriage penalty con- party is on. I want to say at the outset wealthy. Well, as I indicated to the sistently and 200,000 of his constituents to my friend, the gentleman from Illi- chairman at the committee, and he is will not get the relief. nois (Mr. WELLER), I do not know what pretty powerful, but even though he The fact of the matter is, and you the exact numbers are, but let me tell has all his power, he cannot be in two heard the gentleman from the State of the gentleman something, 100 percent places at once. So the committee chose Washington (Mr. MCDERMOTT), he and I of the people who live in my district to come to the House floor and debate have been on this program to eliminate will be adversely affected by the inter- that policy. That is what the debate the marriage penalty since 1995, so I est rates that he will drive up by his was all about. am glad the Republicans are joining us. race towards deeper and deeper and But let us talk about the bill that is But nevertheless, the fact of the mat- deeper deficits. That is what will hap- before us today. Through the miracle ter is there are hundreds of thousands pen to everybody in his fiscal irrespon- of C–SPAN, hundreds of thousands of of people in my district who want a sibility rampage that this committee people are watching their House of drug benefit today, who want us to ad- is on and the Congress is pursuing. Representatives. We have hundreds of dress the war on terrorism and provide It is popular, of course, to get up here people in the gallery, Mr. Chairman, money for that. And they also want us week after week and vote for tax cuts. watching what we are doing. to address the $300 billion deficit. So I Of course. It is easy. It is also irrespon- They are going to go home and the encourage my colleagues to talk about sible. As we have $314 billion in debt neighbors are going to say, Wow, you those issues today so when your neigh- this year facing us and trillions of dol- went to Washington. What did you see? bors ask you what they did, they did lars in the years ahead, is it respon- Oh, I saw the Smithsonian, I saw the not think about some problem that sible fiscal leadership? It is absolutely Vietnam Veterans Memorial, and we might occur in 2011. not. Not with the record surpluses had the honor of going to the House Mr. WELLER. Mr. Speaker, I yield turning into deficits in less than one floor and listening to the debate. myself such time as I may consume. year of this administration. Not with And the neighbors are going to say, Mr. Speaker, before recognizing the the Federal Government expected to what did you hear? Well, they were de- chairman for an additional minute, I run a budget deficit of more than $300 bating a bill that would address a prob- will note that the gentleman from Wis- billion spending 100 percent of the So- lem that might or might not occur in consin (Mr. KLECZKA) is right. He has cial Security surpluses; not with a 2011. The neighbors will say, hot damn, consistently voted no on the House House majority violating its repeated really? 2011? floor in opposition to eliminating the pledge not to raid the Social Security b 1145 marriage tax penalty even though surpluses; and not with the Treasury there are 133,000 constituents who suf- Department’s practically begging Con- Well, that is 9 years from now. Yes, fer the marriage tax penalty in his dis- gress to raise the debt limit before they took it up today. Had to be done trict. June 28, which they have refused to do. right away. Well, the question is why? Mr. Speaker, I yield 1 minute to the Do Democrats support marriage pen- I will tell you why. There is one big gentleman from California (Mr. THOM- alty relief? Of course we do. It is the event between today and January 2011, AS). fair and right thing to do. But why this and you know what it is. It is Novem- (Mr. THOMAS asked and was given bill and why now? There is only 2 ber 2002 elections. It is the elections. permission to revise and extend his re- weeks left before the 4th of July break So we are gathered here today to pro- marks.) and we have not considered one of the mote our elections. And how about ad- Mr. THOMAS. Mr. Speaker, I do not 13 must-pass appropriations bills. dressing the work and the needs of the know about separating the wheat from Furthermore, fully 70 percent of the people? the chaff, but I do think we ought to marriage penalty provisions of this ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE separate the bull from the waste. GOP bill will not take affect until 2006 The SPEAKER pro tempore (Mr. Notice that when we come to the and most till 2011, as the previous LAHOOD). The gentleman will suspend. floor to argue the issue in front of us, speaker said.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.026 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3525 Is this legislation more important marriage penalty. We have doubled the would note that the gentleman from than defense? Is it more important standards deductions for marriage cou- New Jersey (Mr. PASCRELL) consist- than homeland security? Is it more im- ples; we expanded the 15 percent tax ently voted no on eliminating the mar- portant than prescription drugs and a bracket to twice the income of single riage tax penalty and what he con- host of other pressing issues so we can people; but this marriage penalty relief siders a cost to Uncle Sam, to the affect 2011? I think any commonsense is only temporary. Why? Because of an Treasury, is actually higher taxes on response to that is, of course it is not. arcane Senate rule that prevented per- working married couples. That is what The truth is this bill will cost more manent tax cuts. That is not, is not it. this is all about, making permanent than $63 billion over the next decade. Should we not help make marriages eliminating the marriage penalty. And every last cent, every last cent of permanent, not temporary? Instead of Mr. PASCRELL. Mr. Speaker, would that $63 billion comes out of the Social this tax relief lasting through the dia- the gentleman yield? Security surplus. Worse yet, in the sec- mond anniversaries of weddings, mar- Mr. WELLER. On your time. ond decade of this century, when the riage penalty relief will sunset on the Mr. PASCRELL. I voted for the sub- baby boomers begin to retire in full aluminum anniversary of this bill. stitute, so it is not a clear record. force, the cost of this bill is estimated In 2011, when the sunset of tax relief The SPEAKER pro tempore. The gen- to be $330 billion out of Social Security takes place, countless couples will face tleman is not recognized and I would revenues. The bill is nothing but an ex- higher tax bills simply because they appreciate it if the Members in the ercise in demagoguery. I urge the said I do. And you know what, that is Chamber are recognized by the Chair Members to vote no, to vote yes on the just plain wrong. We need to fix that in before they take the microphone. substitute, vote no on the bill. this Congress. PARLIAMENTARY INQUIRY PARLIAMENTARY INQUIRY Mr. MATSUI. Mr. Speaker, I yield 2 Mr. MATSUI. Mr. Speaker, par- Mr. MATSUI. Mr. Speaker, par- minutes to the distinguished gen- liamentary inquiry. liamentary inquiry. tleman from the State of New Jersey The SPEAKER pro tempore. The gen- The SPEAKER pro tempore. The gen- (Mr. PASCRELL). tleman will state his inquiry. Mr. MATSUI. Mr. Speaker, I would tleman will state his inquiry. Mr. PASCRELL. Mr. Speaker, now I Mr. MATSUI. Mr. Speaker, regret- have really heard it all, that there is have to imagine there must be some tably I would prefer not to do this, but, an intricate relationship between mar- rules in mischaracterizing a colon the other hand, I think it is very riage repeal and keeping marriage per- league’s voting record or a colleague’s critical in terms of our decorum in this manent. You are darn right. There is a vote; and clearly there was because the institution. The speaker before the question of values. You are darn right. Democratic substitute which the previous speaker voted for did have a mar- gentleman from Maryland (Mr. HOYER) Last week I got up here and urged made reference to a colleague of ours my colleagues to vote against the ill- riage penalty tax relief package in it. in what I believe to be a derogatory thought-out repeal of the sunset on the It just had a pay-for in it. I would have fashion, particularly right at the end of estate tax. Here we are again. Besides to believe there is some rule in his remarks. I wonder if the remarks being a colossal waste of time, these mischaracterizing a Member’s position were an inappropriate violation of any piecemeal votes to reveal bits and or vote, and I would like a ruling from rules in the House. I realize this may pieces of tax cuts that you have pro- the Chair on that. not be a timely request, but I think it posed reveal the deceit behind the ad- b 1200 is important we do put on the record ministration’s initial cost estimate. The SPEAKER pro tempore (Mr. According to the official estimate the ruling of the Speaker, had it been LAHOOD). The Chair would advise the a timely request. from the Joint Committee on Tax- Member that if a Member feels his The SPEAKER pro tempore. The ation, certainly no left-leaning group, record is not being reflected accu- Chair would affirm that remarks in de- no agency from the far left, no Demo- rately, he may debate that on the bate should not descend to personal- cratic agency, today’s bill would cost floor, and the Chair would also appre- ities. about $25 billion in 2012. If that does ciate it if Members would not grab the Mr. WELLER. Mr. Speaker, as we de- sound ridiculous, it really is. It really microphone and speak when they are bate whether or not to impose a $42 bil- is ridiculous, that we even put a budget not recognized. lion tax increase on 36 million couples, together 10 years is ridiculous, and the Mr. MATSUI. Mr. Speaker, I think I was wondering how much time re- American people know it is ridiculous. that is understandable. mains on each side. We cannot even project what is going Mr. Speaker, further parliamentary The SPEAKER pro tempore. The gen- to happen 10 months from now, let inquiry, but I have to say, Members tleman from Illinois (Mr. WELLER) has alone 10 years from now. need to protect themselves when dis- 9 minutes remaining. The gentleman Nearly two-thirds of the result of the tortions are given. from California (Mr. THOMAS) has 81⁄2 provision of this bill, an expansion of The SPEAKER pro tempore. The minutes remaining. the 15 percent rate bracket, that only Chair would advise that Members may Mr. WELLER. Mr. Speaker, I yield 2 benefits higher income couples. In the engage in debate to correct the record. minutes to the distinguished gen- 10-year period, this is going to cost $330 The gentleman from Illinois (Mr. tleman from Texas (Mr. SAM JOHNSON). billion. If the cost of increased interest WELLER) is recognized. (Mr. SAM JOHNSON of Texas asked payments is added, it is going to rise to Mr. WELLER. Mr. Speaker, I yield 2 and was given permission to revise and $460 billion. minutes to the gentleman from Illinois extend his remarks.) That is why I support the substitute. (Mr. SHIMKUS). Mr. SAM JOHNSON of Texas. Mr. I think it is a critical substitute. I (Mr. SHIMKUS asked and was given Speaker, I cannot believe some of the think it is an important substitute. permission to revise and extend his re- things being said here today. The other What it does is it triggers, it triggers, marks.) side keeps saying they support mar- if we cannot protect Social Security Mr. SHIMKUS. Mr. Speaker, it is riage penalty relief and yet they do not when it will not go into effect. You tough to come down here in the cal- vote for it. have made this card again a credit card dron of the Ways and Means. I have I rise today in support of marriage. for the Federal Government. And I say good friends on both sides and I appre- Marriage is a cornerstone of a strong you are wrong in doing it and you need ciate their diligence, but we have been family. There are many influences in to put everything on the table. You lobbied on this legislation, and we have today’s culture that undermine mar- cannot look at this in bits and pieces. been lobbied by married families that riages and there are a lot of those in- This is wrong-sided legislation; and have been asking for a simple solution, fluences we cannot do anything about. you are taking away the very founda- some legal certainty. But one thing we can keep trying to do tion of our society, Social Security. One of the things that frustrates me is fix the Tax Code, and with the Sen- Mr. WELLER. Mr. Speaker, I yield the most about this place as an institu- ate’s help, we can do that. myself such time as I may consume. tion is we do things sporadically every The tax cuts we have passed last year Mr. Speaker, before recognizing our year, and we do not provide any cer- remove many of the worst part of the next distinguished speaker here, I tainty or we do not finish the job on

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00011 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.034 pfrm04 PsN: H13PT1 H3526 CONGRESSIONAL RECORD — HOUSE June 13, 2002 legislation. The perfect example is the and again this year, and I was only try- their economy strong, and their taxes tax cut bill, because of the rules of the ing to follow the rules that were put low; and by supporting this bill, by other body, having to sunset key com- into place in Congress before I got passing the Permanent Marriage Pen- ponents of the Tax Code. here, because of the problems of defi- alty Relief Act, we are going to fulfill The death tax is one of them. I do not cits, when we did tax cuts, when we did those obligations. personally believe that government spend the dollars and raise the deficits In making the elimination of the ought to redistribute wealth, and I in this country, and that was some- marriage penalty tax permanent, we think that is supported by the folks in thing called pay-as-you-go. will provide married couples across the my district. I think other people dis- I think the American people remem- Nation peace of mind to plan for their agree, but that is what that does, is a ber pay-as-you-go. Guess what? In the financial security for years to come. redistribution of wealth; and it hurts substitute, we would have been given After all, why would we want our hard- people who want to get ahead. It dean opportunity to pay for this mar- working families to begin receiving ad- stroys family farms and small busi- riage tax penalty, but instead, we are ditional financial security through this nesses. This penalizes people for being going to go into Social Security. important tax relief only to turn married, and there is no certainty that Is it not interesting that last night around and strip them, as the Demo- this bill will maintain after 10 years. on this floor, in instructions to the crats would like to do, 10 years from I just want to boil it down to the conferees on the energy bill, what was the date and add to their tax burden. simple aspects, and I know there are the instruction? That we would not dip Mr. Speaker, the House of Represent- other issues that we are all involved in, into Social Security. It passed. It atives will once again show the Amer- and I appreciate those, but I want to be passed. Yet, today, we come to the ican people that we are caring about able to go home and tell married cou- floor, with a marriage tax penalty, a the American family and that we are ples that Uncle Sam does not take $300 billion deficit and guess what we here taking care of the business that more money out of their check just be- find. We know that this will go into the we were elected to do, and last year cause they are married. That is all I Social Security/Medicare trust funds at when the President signed the historic want to do, and I want to provide fami- the time that we will have the largest tax cut package into law, the people of lies some certainty that if they get retirement happen. Nevada knew that they would finally married now or they get married 5 I went back to my office, and I got begin to be keeping more of their own years from now or they get married 11 the statistics in my district. There are money after having paid into the gov- years from now or get married 12 years 158,000 seniors 65 years and older that ernment more than it needed to oper- from now, Uncle Sam will not take depend on Medicare, that depend on So- ate; and by passing last year’s tax re- more tax from them because they are cial Security. They want a prescription lief package, Congress put hard-earned married, and that is the simple drug benefit and guess what? My par- dollars back into the pockets of 76,304 premise. ents, those people that the gentleman deserving married couples in Nevada’s A person should not get penalized for is talking about, they want reduced Second Congressional District alone, saying, ‘‘I do,’’ and the chart states it. classroom sizes. In my colleagues’ and Statewide nearly 150,000 Nevada It may not be involved in all the other budget, they knock it out. They want couples sought relief from the onerous issues, but I ask support of the Repub- books for their children so they can marriage penalty tax. lican bill. help them with their homework. They If we fail to pass this bill today, we Mr. MATSUI. Mr. Speaker, I yield 31⁄2 want responsible tax relief. will be increasing their taxes. minutes to the distinguish gentle- I think that if we were being honest Mr. MATSUI. Mr. Speaker, may I in- woman from Florida (Mrs. THURMAN), a with the American public, we could quire of the gentleman how many other member of the Committee on Ways and have had responsible tax relief for this speakers he might have. Means. country; but we are not doing that, and Mr. WELLER. Mr. Speaker, we have Mrs. THURMAN. Mr. Speaker, I ap- last night the Senate did not even give one, maybe two more. preciate the gentleman yielding me the my colleagues the tax relief for their Mr. MATSUI. Mr. Speaker, I reserve time, and I thank him for his leader- small businesses. the balance of my time. ship, and I kind of want to go on some Mr. WELLER. Mr. Speaker, how Mr. WELLER. Mr. Speaker, I yield 2 of what I have heard here this morning much time remains on each side? minutes to the gentleman from Cali- from the gentleman from Wisconsin, The SPEAKER pro tempore. The gen- fornia (Mr. HERGER), who has been a because I do think that this is about tleman from Illinois (Mr. WELLER) has distinguished leader in the effort to politics. 5 minutes remaining. The gentleman eliminate the marriage tax penalty. I went home last week, and the first from California (Mr. MATSUI) has 3 Mr. HERGER. Mr. Speaker, failure to thing I was called upon to talk about minutes remaining. pass this bill will raise taxes on low- was the repeal of the death tax. Some- Mr. WELLER. Mr. Speaker, I yield and middle-income taxpayers by $42 body sent out a press release saying myself such time as I may consume. billion by 2007. that I voted against the repeal of the The gentlewoman from Florida is Mr. Speaker, when a couple stands at death tax, and I did. What they failed correct. I am not going to draw atten- the altar and says ‘‘I do,’’ they are not to mention is that I did vote and offer tion to her past opposition to elimi- agreeing to higher taxes; yet without the substitute to reform the death tax, nating the marriage tax penalty, but I relief from the marriage penalty, 36 that little thing that said 3 million per would note that there are almost 84,000 million American couples will pay person, 6 million per couple, taking married individual taxpayers in her higher taxes simply because they are care of 99.7 percent of the public and of district that do suffer the marriage tax married. those that would have to pay the estate penalty. Let us be clear. It is just plain wrong tax. Mr. Speaker, I yield 11⁄2 minutes to to tax marriage. Unfortunately, the So my guess is, and I will correct the the distinguished gentleman from Ne- marriage penalty relief passed last record so when the gentleman from Il- vada (Mr. GIBBONS), the distinguished year will expire at the end of 2010 due linois (Mr. WELLER) gets up and says leader in the fight to eliminate the to arcane Senate budget rules. The leg- whatever he is going to say, whether I marriage tax penalty. islation before us today makes this re- voted or did not vote, I am sure that Mr. GIBBONS. Mr. Speaker, I thank lief permanent. If we fail to enact this today when I go home, that there will the gentleman for yielding me the legislation, married couples will face a probably be another press release, and time. massive tax increase of $42 billion just that press release will say, KAREN I have heard these arguments on the in the year 2011 and 2012. We simply THURMAN voted against the permanent floor, and let me say to my colleagues cannot allow this to happen. repeal of the marriage tax penalty. I in the room, that is absolutely not a Under the leadership of President will get the phone call from the press, waste of time. When my fellow Nevad- Bush, last year’s tax bill provided mar- and I will have to say to them, well, ans elected me to come to Congress, ried couples with significant tax relief yes, I did, but the fact of the matter is, they entrusted me with a great respon- by making sure that the standard de- we did have an alternative last year sibility of keeping their families safe, duction for a couple is twice that of a

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00012 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.039 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3527 single taxpayer. And by allowing mar- One is doubling the standard deduc- tax penalty will be restored. If we add ried couples to earn more of their in- tions for couples; doubling the 15 per- that together with the other 36 million come in the lower 15 percent tax brack- cent bracket for couples; and then the married working couples who have suf- et, making sure that our Tax Code does other is the earned income tax credit, fered the marriage tax penalty, it is a not discourage marriage is not just which is not really a marriage penalty $42 billion tax increase. That is the good tax policy for the next few years, issue. The only one that is currently in question today. Do we increase taxes it is good tax policy, period. Now is the effect is the earned income tax credit. by $42 billion on 36 million married time to make tax relief for hard-work- The doubling of the 15 percent tax working couples, or do we make perma- ing married couples permanent. I urge bracket does not take effect until the nent our efforts to eliminate the mar- my colleagues to support this very im- year 2005, and of course the doubling of riage tax penalty. Let us vote in a bi- portant legislation. the standard deduction for couples does partisan way, and make elimination of The SPEAKER pro tempore. The gen- not take effect until 2005, 3 years from the marriage tax penalty permanent. tleman from California (Mr. MATSUI) now. Ms. KILPATRICK. Mr. Speaker, I rise today has 3 minutes remaining, and the gen- So we are worried about extending in opposition to H.R. 4019. I am not against tleman from Illinois (Mr. WELLER) has these credits, and they have not even repealing the marriage tax, but I am strongly the right to close. taken effect yet. So the irony of this is opposed to H.R. 4019 for two reasons: the Mr. MATSUI. I would imagine there that we are debating something that is funding source of the bill and the timing of its are no other speakers except the gen- really not real. It is an illusion. It is a floor consideration. tleman from Illinois. falsehood. It does not make any sense. First and foremost, the surplus that was The SPEAKER pro tempore. The gen- And the real tragedy, however, is in promised to the American people last year by 1 tleman from Illinois has 1 ⁄2 minutes spite of all these games, if in fact it did President bush is gone, only to be substituted remaining. take effect, if in fact it did take effect by the serious and foreseeable signs of a Mr. MATSUI. Mr. Speaker, I yield in the year 2011, you would have a budget deficit in the near future. Currently, myself such time as I may consume. there is an estimated budget deficit of about Mr. Speaker, I have to say I really do drain on the Social Security trust fund not understand why we are here today of $457 billion. Essentially, Mr. Speak- $200 billion—a drastic change from the sur- debating this issue. We should be tak- er, this is a bill that should be de- plus that was promised last year. Con- ing up prescription drugs. We should feated. We have a substitute we are sequently, the safety net that was to guar- perhaps even take up the President’s going to offer that addresses these antee Social Security and Medicare funding three proposals that his Social Secu- issues to preserve the Social Security for our baby boomers in the next decade is rity Commission has come up with, be- trust fund. I urge a ‘‘no’’ on final pas- becoming more of a wavering hope, instead of cause obviously we want to debate the sage. a secured promise. whole issue of whether or not Social The SPEAKER pro tempore. The gen- The estimated revenue cost of H.R. 4019 Security should be privatized or par- tleman from Illinois has 11⁄2 minutes will be over $25 billion per year after 2011, es- tially privatized. remaining. sentially, costing over $330 billion in the next The gentleman from Texas (Mr. Mr. WELLER. Mr. Speaker, I yield decade. Coupled with the approximate $200 ARMEY) has a piece of legislation on myself the remaining time. billion budget deficit this year, the future sav- Social Security that privatizes the en- Ladies and gentlemen, let us get ing for our Social Security is looking dim. Re- tire Social Security system over a pe- back to why we are here. We have pealing the marriage tax is a good gesture, riod of years. We should be debating heard a lot of rhetoric from the other but it definitely should not supersede the fu- that issue now. The gentleman from side, basically all the excuses that have ture of Social Security for our baby boomers. Florida (Mr. SHAW), the chairman of been previously used on why we should Second, the timing of the floor consideration the Subcommittee on Social Security not eliminate the marriage tax penalty for this tax penalty is unreasonable and un- of the Committee on Ways and Means, previously. necessary considering that none of the marriage penalty tax breaks will fully phase-in until has a privatization of Social Security b 1215 bill. We should be discussing that. 2011. Why are we considering such an issue If not those things, which are very It has always been let us do it an- that will cost so much in the future but has no important to the American public, at other time. There is something in affect on Americans today, tomorrow or four least we should be discussing why at a Washington that we need to spend it years from now? We are not sure of what the time of war we are allowing U.S. cor- on. Let us get back to why we need to fiscal situation of the federal government will porations like Stanley Corporation to make permanent the elimination of the be in the next decade, but we are cognizant go offshore and save $30 million in marriage tax penalty. of the responsibilities we have towards the taxes because now they have become Let me give an example of a couple American people and their retirement benefits. not a U.S. corporation but a foreign in Joliet, Illinois, who suffered the This is true fiscal irresponsibility to bring this corporation in Bermuda; and we all marriage tax penalty. A working cou- bill to the floor today and reeks of election know that all they are going to do is ple from Joliet, Jose and Magdalene year policy-making for Republican back pat- just open up a post office box, a mail- Castillo. They are both in the work- ting. For those reasons, Mr. Speaker, I am op- box perhaps, and then be able to save force, a son Eduardo, a daughter, Caro- posed to the passage of H.R. 4019. $30 million in taxes. And this is not lina. They have a combined income of I am in favor of the Democratic substitute, going to help their employees. This is $82,000; and prior to the Bush tax cut which is offered by my esteemed colleague, going to go into the pockets of the being signed into law last year, which Rep. MATSUI. The substitute offers a perma- owners. included our efforts to eliminate the nent repeal of the marriage tax. However, the So why not debate these issues? Un- marriage tax penalty, the Castillo fam- repeal will be initiated in 2011 only if there will fortunately, Mr. Speaker, what is hap- ily in Joliet, Illinois suffered an $1,125 be another source of funding besides the So- pening here is the fact that my col- marriage tax penalty. cial Security surplus. That essentially means leagues want a political issue, I think As we can see from the rhetoric that we should be out of budget deficit before as the gentlewoman from Florida (Mrs. today, there are those on the other side the marriage tax is repealed. THURMAN) mentioned, I think as the of the aisle who would much rather The substitute and H.R. 4019 are very simi- gentleman from Wisconsin (Mr. KLECZ- spend the Castillos’ hard-earned in- lar in that they both repeal the marriage tax in KA) mentioned, as a number of Mem- come, their $1,125 marriage penalty, 2011. The only difference is that the substitute bers on our side of the aisle mentioned; here in Washington. takes into consideration the baby boomers and I have to say that this is really a What we are asking the House to do that will be in need of Social Security and strange debate because I hear my col- today is to make permanent the elimi- Medicare in the next decade. Those individ- leagues on the other side of the aisle nation of the marriage tax penalty be- uals should not lose out on their benefits be- talk about all of the savings for the cause if we fail to make permanent the cause of a political gesture by the House lead- American public, and there are three elimination of the marriage tax pen- ership during the election year of 2002. This is components, and perhaps people do not alty, couples such as Jose and not just fiscal irresponsibility; it is fiscal insin- know this, of the marriage penalty re- Magdalene Castillo will see an $1,125 in- cerity as we have told baby boomers that they lief. crease in taxes because their marriage will have their retirement needs met when the

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00013 Fmt 4634 Sfmt 9920 E:\CR\FM\K13JN7.041 pfrm04 PsN: H13PT1 H3528 CONGRESSIONAL RECORD — HOUSE June 13, 2002 time arrives. Democrats are committed to spectfully disagree with this argument— billion per year. Over the following decade, it keeping our word to the American people, so again—and believe that we should address will cost over a quarter of a trillion dollars. This I cannot vote on a bill that will void the prom- the permanent extension of the Marriage Pen- is at the same time when the retirement of the ise of surplus for these working Americans. alty Relief Act years from now when we have baby boom generation will begin putting enor- Therefore, I am opposed to H.R. 4019 and in a clearer picture of what our budgetary chal- mous strains on Social Security and Medicare. favor of the substitute. lenges and what national challenges are. The Republicans have already shown Ms. BALDWIN. Mr. Speaker, it was one Mr. FRELINGHUYSEN. Mr. Speaker, today they’re content to lead us into fiscal crisis year ago that this House was considering the I rise in support of H.R. 4019, to make the today. This bill continues to make clear that merits of President Bush’s $1.6 trillion tax cut good work we did in bringing relief from the they want us in financial crisis in the next dec- proposal. The House Leadership claimed that Marriage Penalty Tax to 21 million married ade as well. This doesn’t have to be the case. the sky was the limit for our budget surplus Americans last year, permanent. I support the responsible and fiscally sound and that the ten-year projections would just As I travel across New Jersey’s 11th Con- approach to marriage penalty relief being of- continue to grow, and grow, and grow. At the gressional District, I am constantly reminded fered by my fellow Democrats. Our bill makes time of the debate, I too, offered support for of the need for prompt tax relief. I hear it when the marriage tax penalty fix permanent. But, tax relief, but with the caveat that it should go I get my coffee and paper in the morning, at our bill simply adds a protection for Social Se- to those who need it most—hardworking my local barbershop, at any one of my week- curity. It says if we don’t have the money in American familes—and that it should not cur- end town meetings, and at the pancake break- future budgets to enact responsible tax cuts, tail our ability to fund our nation’s priorities or fasts I attend on Sunday mornings. Americans we have the option to put them on hold. The hinder our ability to address unforeseen scored a major victory last year when Con- Republican’s bill leaves the door open for fu- events. I believed Congress had a duty to be gress and President Bush addressed one of ture invasions of the Social Security Trust fiscally responsible and move slow on tax cut- the most unjust provisions of the tax code by Fund to pay for forced tax cuts. ting measures to make certain the projections reducing the Marriage Penalty Tax. We in- We ought to be debating a prescription drug came true. After all, it is virtually impossible to creased the basic deduction from $7,350 to benefit and saving Social Security for future tell what our federal budget will look like one $8,800 for married couples, and nearly one generations. Instead, we are forced week after year from now—let alone ten. million married couples across New Jersey, week to vote on yet another Republican tax Sadly, the concerns I raised a year ago and closer to home, 72,000 married couples in bill that favors their wealthy contributors. were warranted. Our $5.6 trillion surplus has my Congressional District, have benefited from I urge my colleagues to vote no on the fis- virtually vanished, and once again, we face our good work to provide relief from the Mar- cally-flawed Republican Marriage Penalty Re- large federal budget deficits. While the events riage Penalty Tax. lief Act and support the fiscally-sound Demo- on September 11 and the sluggish economy Unfortunately, these provisions are sched- cratic alternative. played a role in slicing the surplus, there is no uled to expire at the end of 2010, because of Mr. KNOLLENBERG. Mr. Speaker, our tax doubt that the large Republican tax cut was a ‘‘sunset’’ provision that was included in the code should be designed fairly and it shouldn’t the main culprit. It is evident that the priorities Economic Growth and Tax Relief Reconcili- pick winners and losers. But under the current I talked about at the time will be much more ation Act. If H.R. 4019 is not enacted, then be- system, married taxpayers are unfairly singled difficult to address: it will be hard to shore up ginning in 2011, the standard deduction for out. Social Security for the soon-to-be retiring baby married couples will be reduced, forcing 21 Over 65,000 couples in my district are af- boomers; it will be very difficult to pay down million married couples to pay more taxes. fected by the marriage penalty each year. our national debt; it will be an enormous chal- The Marriage Penalty Tax is inherently unfair. Marriage should be a time of happiness and lenge to provide a prescription drug benefit The Federal Government should not force joy, not punishment from the federal govern- under Medicare; it will be a real struggle to working couples, through an unfair, archaic ment. Couples should not be targeted for en- fund the growing needs of our educational Tax Code, to pay higher taxes simply because tering into the sacred vows of wedlock. Since system. they choose to be married. The Marriage Pen- last year’s tax relief package, this House has With the new budget concerns and all of the alty Tax weakens the foundation of one of so- taken several steps to ensure tax relief will not problems that Congress has failed to fix, I ciety’s most sacred institutions: marriage. We be pulled out from under hardworking Ameri- found it irresponsible of the House to devote cannot turn back the clock after making such cans. Every person paying taxes deserves to more time and energy considering H.R. 4019, great strides in providing this sensible, mean- know that a sudden and harsh tax increase or the Marriage Penalty Relief Act. This bill ingful tax relief, and in the year 2011, force isn’t looming down the road. would permanently extend marriage penalty working couples to pay higher taxes simply I am proud of the work this House has ac- relief past the 2010 sunset date. Moreover, because they choose to be married. complished so far this year, especially to effort the cost of this bill would total about $330 bil- So today, I urge my colleagues to build on to provide continuing tax relief. We should lion in the ten-year period from 2013–2022— our ongoing efforts to provide tax relief for all continue our support for the American people at a time when the nation’s budgetary de- hard working Americans. Let’s pass Marriage by passing permanent repeal of the marriage mands will increase because of the retirement Penalty Tax relief for the millions of working penalty. of the baby boomers. couples who should not be penalized by the Mr. SANDLIN. Mr. Speaker, I rise today in I support the Matsui Substitute on Marriage IRS just because they are married. support of this legislation. Penalty Relief. This bill would permanently ex- Mr. STARK. Mr. Speaker, I rise today in op- The elimination of the Marriage Penalty Tax tend marriage penalty relief, but goes a nec- position to H.R. 4019, a bill to permanently re- has been a priority of mine since I first got essary step further that adds a much-needed peal the marriage tax penalty. elected to Congress. In 1997, as a Freshman trigger mechanism to impose financial dis- Last year, the President promised we could Congressman, one of the first pieces of legis- cipline: the repeal will only go forward if the have it all. He argued that the projected $5.6 lation I cosponsored was a bill to eliminate the Director of the Office of Management and trillion surplus was enough for a large tax cut, marriage penalty tax. Budget (OMB) certifies that permanent repeal an increase in education spending, and a de- When the Federal Government first levied will not result in a raid on the Social Security cent Medicare prescription drug benefit. It’s no income tax in 1913, all taxpayers filed indi- trust fund over the following ten year period. If, surprise to those of us who voted against his vidual tax returns and the rate schedules did on the other hand, OMB determines the repeal tax plan that such grandiose promises have not differentiate between singles and married will require a raid on the trust fund, the repeal proven wrong. Now, one year later, instead of couples. By basing a married couple’s federal would be put on hold. large projected surpluses, our budget is in def- income tax entirely on the separate income of In the past, I have supported legislation that icit. Republicans now say that we don’t have each spouse, the original tax code resulted in would fix the marriage penalty; it’s a serious the funds to implement last year’s No Child married couples with the same collective in- problem for thousands of married couples in Left Behind education bill. Republicans refuse come paying different level of taxes. Wisconsin and throughout America. However, to propose a Medicare prescription drug ben- In 1969, Congress enacted legislation es- I find myself hearing the same arguments the efit worthy of America’s seniors. But, they are tablishing a tax framework for married cou- House Leadership made last year: that perma- perfectly willing to continue spending trillions ples, similar to current law, that produced a nently extending marriage penalty relief will of dollars on new tax cuts for the wealthy. ‘‘marriage penalty’’ and a ‘‘marriage bonus.’’ not take money away from the Social Security When is the Republican leadership going to The ‘‘marriage penalty’’ results in some mar- Trust Fund, will not debilitate our ability to stop playing games with our priorities? ried couples paying more in taxes than they meet our priorities, and will not limit our ability The bill before us today will not take effect would as unmarried individuals filing sepa- to meet unforeseen challenges head on. I re- until 2011. At that point, it will cost over $25 rately. The ‘‘marriage penalty’’ is an archaic

VerDate 11-MAY-2000 01:59 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00014 Fmt 4634 Sfmt 9920 E:\CR\FM\A13JN7.007 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3529 tax that punishes working families. While the termination by the Office of Management and must look at the need to address the serious tax code actually gives a ‘‘marriage bonus’’ to Budget that the Social Security Trust Fund will problems facing the country now, such as So- couples with only one working partner, the not be raided to do so. cial Security and Medicare. ‘‘marriage penalty’’ is applied to couples where Ms. JACKSON-LEE of Texas. Mr. Speaker, Mr. GILMAN. Mr. Speaker, I rise today in both partners work. The average penalty is since 1969, our tax laws have punished mar- strong support of H.R. 4019 the Permanent over $1100. That translates into mortgage ried couples when both spouses work. Each Marriage Penalty Relief Act of 2002. I urge my payments, car payments or child care for East year more than 21 million are penalized for no colleagues to support this legislation. reason other than the decision to be joined in Texas families. This bill provides that the various provisions Last year, on March 29, 2001, I voted for holy matrimony. They pay more in taxes than pertaining to marriage penalty relief in last the Marriage Penalty and Family Tax Relief they would if they were single. Not only is the year’s comprehensive tax reduction legislation Act, which increased the standard deducation marriage penalty unfair, it’s wrong. The mar- be made permanent. At the time of passage, for married couples filing jointly to twice the riage tax penalty exacts a disproportionate toll these provisions were set to ‘‘sunset’’ after a basic standard deduction of single filers over on working women and lower income couples period of 10 years in order to comply with pro- a four-year period, beginning in 2005. How- with children. In many cases it is a working cedural rules in the Senate. ever, as we all know, the version that was women’s issue. I believe this penalty should signed into law, as part of the overall tax cut be fixed but in a responsible way. The marriage penalty statute punished mar- package, re-establishes the marriage penalty A married couple generally is treated as one ried couples where both partners work by driv- in 2011. This is simply not acceptable to me tax unit that must pay tax on the couple’s total ing them into a higher tax bracket. It taxed the or to the millions of couples who are hurt by taxable income. Defining the married couple income of the second wage earner at a much the marriage penalty tax. I believe that pas- as a single tax unit under the Federal indi- higher rate than if they were taxed as an indi- sage of last year’s tax bill was a good step to- vidual income tax tends to violate the goal of vidual. Since this second earner was usually ward eliminating the burden of the marriage marriage neutrality. Marriage neutrality means the wife, the marriage penalty was unfairly bi- penalty tax. However, the sunset is a setback that the tax system should not influence the ased against female taxpayers. for true, long-term relief. choice of individuals with regard to their mar- The Congressional Budget Office estimated Today, I am pleased that we have the op- ital status. However, under the current Federal that 42 percent of married couples incurred a portunity to vote once again on permanent re- income tax system, some married couples pay marriage penalty in 1996, and that more than peal—making sure that the marriage penalty more income tax than they would as two un- 21 million couples paid an average of $1,400 tax will not rear its ugly head again in 2011. married singles—a marriage tax pealty—while in additional taxes. The CBO further found that I believe that, no matter what, we must make other married couples pay less income tax those most severely affected by the penalty the marriage penalty tax repeal permanent. than they would as two unmarried singles—a were those couples with near equal salaries Doing so is good for working families—those marriage tax bonus. and those receiving the earned income tax where both parents are working to make ends A ‘‘marriage penalty’’ exists when the com- credit. meet. bined tax liability of a married couple filing a This aspect of the Tax Code never made I urge my colleagues to support this impor- joint return is greater than the sum of the tax sense. It discouraged marriage, was unfair to tant legislation and I yield back the balance of liabilities of each individual computed as if female taxpayers, and disproportionately af- my time. they were not married. fected the working and middle-class popu- Mr. DINGELL. Mr. Speaker, here we are: Last year, the President promised that we lations who are struggling to make ends meet. another day, another tax cut, another political could have it all. He argued that the projected For these reasons, it needed to be repealed, maneuver by my Republican colleagues. $5/6 trillion in surplus within 10 years was and today that repeal should be made I would be remiss if I failed to mention that enough for a large tax cut, a decent Medicare permanent. we have already done this. Recall, if you will, prescription drug benefit, increases in edu- Mr. KIND. Mr. Speaker, I rise today in sup- April 18, when this body voted to make the cation spending, and increases in defense port of making permanent the marriage pen- last year’s tax cut permanent. Though I voted spending. Now, instead of large projected sur- alty tax relief bill passed last year. I strongly against it, it passed by a vote of 229–198. pluses, we are experiencing deficits for the believe that we should eliminate the tax pen- Why are we taking a piecemeal approach and foreseeable future. The current estimates for alty that some married couples incur because voting on it again? Do we not have anything this year’s unified budget deficit are between it is simply the right thing to do. Yet, it must better to do with our time? Yes, we have plen- $150 and $200 billion. It is a remarkable be done in a fiscally responsible way that will ty to do, like providing a prescription drug ben- change from the $250 billion surplus that oc- not put our country further into the red. efit for our seniors, increasing the minimum curred in fiscal year 2000. wage so people can earn more than a measly The Republican bill will not have any impact That is why I support the alternative legisla- $5.15 an hour and making sure patients are until 2011. At that point, it will have a revenue tion being offered by Representative MATSUI, protected from insurance company bureau- cost of over $25 billion per year. It will cost which will allow the marriage penalty tax relief crats. over a quarter of a trillion dollars in the 10 bill passed last year to become permanent in Let’s discuss the substance of this bill, years following the budget window, the time 2010 as long as the extension does not raid something my Republican colleagues obvi- during which the baby boom generation will the Social Security trust fund. In 2010, the Di- ously have not done. Last year, the President retire and strain our Social Security and Medi- rector of the Office of Management and Budg- promised we would be able to maintain a bal- care resources. Democrats do support mar- et will determine if permanent repeal of the anced budget, shore-up Social Security and riage penalty relief if it is not funded out of So- marriage tax will not result in a raid on the So- Medicare, provide a prescription drug benefit cial Security surpluses. However, this not the cial Security. If, on the other hand, OMB de- to seniors, and give a huge tax cut to the case. We are being told that there are not suf- termines the repeal will raid the trust fund, the wealthiest Americans. Well, as some of us in ficient resources for a decent Medicare drug repeal will be put on hold. This alternative bill this body predicted, that has not materialized. benefit or education spending. I do support the to H.R. 4019 is a fiscally responsible approach That irresponsible tax cut was based on ten- substitute offered by Democrats which affirms to eliminating the marriage penalty because of year projections. The numbers used by the marriage and protects Social Security and the inclusion of the Social Security trigger Republicans were grossly unrealistic. So, here Medicare. mechanism. we are, experiencing deficits instead of sur- There is no need, other than politics, to Moreover, the alternative offers permanent pluses and the Republicans are telling us bring this bill up now, especially when we relief from the marriage tax penalty while also there are not sufficient resources for a decent have so much important work that needs to be providing the Federal Government added flexi- prescription drug benefit. completed. The marriage penalty relief prom- bility. As we have seen all too clearly in these Don’t get me wrong, I support, and Demo- ised by last year’s tax cut will not even arrive past 9 months, the Government needs the crats support, responsible tax relief, including for several years. Additionally, fully 70 percent ability to revisit economic forecasts before marriage penalty relief—as long as it is not of the marriage penalty provisions does not moving forward with policies that may seri- funded out of the Medicare and Social Secu- take effect until after 2006. Reducing the mar- ously cripple our ability to respond to new rity Trust Funds. So, I would ask my col- riage penalty is the right thing to do, but it problems. Lastly, the alternative bill before the leagues to do the responsible thing. Let us must be part of a responsible budget frame- House today sends the right message to the support the Rangel-Matsui substitute. This work that ensures sufficient resources for vital American people: that we are serious about substitute will permanently extend the mar- programs. Before we pass legislation that returning to the practice of fiscal responsibility riage penalty relief, as long as there is a de- drains Federal revenue in future years, we and protecting Social Security.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00015 Fmt 4634 Sfmt 9920 E:\CR\FM\A13JN7.012 pfrm04 PsN: H13PT1 H3530 CONGRESSIONAL RECORD — HOUSE June 13, 2002 In comparison, H.R. 4019, sends the wrong lican leadership offers no plan to take these rently set to be implemented beginning in message because it is so clearly fiscally irre- funds from anywhere but the Social Security 2005, will expire at the end of 2010. sponsible. It will cost nearly a half a trillion dol- and Medicare trust funds. At the outset, this Member would like to lars over 10 years and will not have an impact I support the Democratic substitute amend- thank both the main sponsor of H.R. 4019, the until 2011, the same time that the baby boom ment, which would permanently extend mar- distinguished gentleman from Illinois (Mr. generation will retire, and strain our Social Se- riage penalty relief if the Office of Manage- WELLER), and the chairman of the House curity and Medicare resources. Even Chair- ment and Budget certifies that the repeal will Ways and Means Committee, the distin- man of the Federal Reserve Board, Alan not result in funds being taken from Social Se- guished gentleman fro California (Mr. THOMAS) Greenspan, testified before the Senate Budget curity. for their instrumental role in bringing H.R. Committee in January 2002, warning Con- Congress must adhere to budget policies 4019 to the House floor today. gress ‘‘the fiscal pressures that will almost that will return fiscal responsibility to the Fed- This member supports the passage of H.R. surely arise after 2010 will be formidable.’’ eral Government. The American people expect 4019 because this legislation will at long last Last year we passed a budget that boasted us to produce a responsible budget and honor permanently reduce the current marriage pen- a 10-year unified surplus totaling $5.6 trillion. our commitments—a task that only becomes alty inherent in the provisions of the Internal The administration and House leadership more unlikely with the bill before us today. Revenue Code. Thus H.R. 4019 will make a claimed that an expensive tax cut plan and Mr. BARCIA. Mr. Speaker, I rise in strong major step toward meeting the principle that other costly initiatives were eminently afford- support of H.R. 4019, the Permanent Marriage the Federal income Tax Code should be mar- able and there would be enough of the budget Penalty Relief Act. This important measure will riage neutral. It would be a sad situation if the surplus to eliminate most or all of the national permanently repeal the marriage penalty Internal Revenue Code is a factor for consid- debt. Thus, Congress passed a tax cut costing which effects millions of married couples eration when individuals discuss their future over $1.3 trillion. Unfortunately, the budget sit- across our Nation. marital status. uation has changed dramatically since last I would like to recognize the leadership of Therefore, for these reasons, and many oth- year; large budget surpluses have been re- Congressman WELLER, and I want to thank ers, this Member urges his colleagues to sup- placed by large and growing budget deficits him for giving me the opportunity to do my port the Permanent Marriage Penalty Relief due to the war on terrorism, increased home- part to ensure that the marriage penalty is per- Act. land security, and the large tax cut. This manently removed from the Tax Code. It has Mr. ROEMER. Mr. Speaker, I rise in strong year’s deficit will be nearly $314 billion and truly been an honor to work with him. support of H.R. 4019, a bill to make the mar- over the next 10 years, the non-Social Secu- Let me begin by saying that, fundamentally, riage tax cut permanent. This is prudent and rity deficit will total $2.6 trillion. the marriage penalty is an issue of tax fair- fair legislation that strengthens our most basic Mr. Speaker, tax relief is a bipartisan issue. ness. Married couples on average pay $1,400 institution, the institution of marriage, which we My colleagues on both sides of the aisle rec- more in taxes simply because they are mar- should encourage rather than discourage under the United States Tax Code. ognize the need for providing tax relief to the ried. This is an unfair burden on our Nation’s I have always cosponsored and voted to re- hundreds and thousands of struggling families married couples and an unfair burden on the across our country. But making this tax cut peal the marriage penalty. I have also voted to American family. override the former President’s veto. It simply permanent is not the result of bipartisanship. Marriage is a sacred institution and our Tax did not make sense that our tax laws made it The large tax cut passed last year has already Code should not discourage it by making mar- derailed the opportunity we had to reduce our more expensive to be married than single. For ried couples pay more. We need to change more than 30 years, out tax laws punished large national debt and prepare for our future the Tax Code so it no longer discriminates obligations—for aging population and chil- married couples when both spouses worked. against those who are wed. In my district alone, more than 60,000 families dren’s futures. As most of you know, the marriage penalty After decades of deficit spending, it is our have been adversely affected by the marriage occurs when a couple filing a joint return ex- penalty. More than 600,000 families have responsibility to reduce the debt future genera- periences a greater tax liability than would tions will inherit. We must not keep digging a been punished by the marriage tax in my occur if each of the two people were to file as deeper hole for our children to climb out of in State of Indiana as a whole. single individuals. With my strong support, Congress finally en- the future, rather, we must give them the ca- The Congressional Budget Office estimates pability and flexibility to meet whatever prob- acted legislation to gradually reduce the tax that more than 25 million married couples suf- lems or needs they face. I cannot, in good penalty until fully repealed in the year 2009. fer under this burden. Unfortunately, however, the effect of last faith, support legislation that will put our coun- The legislation that is before us will erase try further into deficit spending and pass a leg- year’s tax cuts results in sunsetting marriage this grave injustice from our current Tax Code. acy of debt onto my two little boys. penalty relief and returning to the full tax rate It is important that these 25 million American Mr. Speaker, I urge my colleagues to opin 2010 and beyond. this would clearing pose this fiscally irresponsible tax cut. Making families know that this relief is permanent so present a shocking and unwelcome burden to the tax cut permanent without consideration they may use their hard earned money to married couples, forcing significant changes in for our Nation’s fiscal situation will only further build better futures. planning how family income is spent on their exacerbate our country’s poor fiscal health. For me, this bill strikes to the heart of mid- children’s college education and student loans, We must shore up Social Security and Medi- dle-income tax relief. In my district in Michi- mortgage payments for their home, and retire- care and reduce the national debt before gan, there are over 53,000 families who would ment savings. passing such an expensive tax cut that we benefit from this relief. These are the people I support this legislation not only because it cannot afford. I did not come to Congress to who are the backbone of our communities, provides fairness to married couples, but also saddle my two boys with a debt burden they these are the people who need tax relief the because it strengthens the institution of mar- did not create. most and we must make sure America knows riage from an IRS standpoint. This bill encour- Mr. BLUMENAUER. Mr. Speaker, last year this much deserved tax relief will not be lost ages stable two-parent, marriage-bound the administration and Republican leadership because of a sunset date. households. Whether it is in a church or in a brought forth a tax cut and budget proposal. I This bipartisan bill achieves that goal—and courtroom, couples usually have to pay some opposed that proposal for its unrealistic as- I know that all of us present here today who kind of fee for the marriage ceremony. But sumptions and potential for leading us down a support the measure will not stop working until while it may cost money to get married, is fiscally dangerous path. A year later we are this legislation is signed into law. My constitu- should not cost money to stay married. witnessing the deficits and raiding of Social ents have spoken to me on this issue—and Rather, we need to support policies that en- Security and Medicare that were all but inevi- the time has arrived to act decisively to per- courage strong and healthy families that are table. manently eliminate the marriage penalty. so absolutely critical for vibrant societies. The Now, with the reality of deficits staring us in Mr. BEREUTER. Mr. Speaker, this Member pressures on working families are significant the face, the Republican leadership brings to rises today to express his support for H.R. enough without this disincentive on the tax the floor another in a series of bills that repeal 4019, the Permanent Marriage Penalty Relief books. Therefore, I strongly encourage my col- the sunset provision of a part of their tax cut Act, of which he is a cosponsor. This legisla- leagues to support this legislation repealing package. Reducing the marriage penalty is the tion would make permanent the various provi- the marriage tax sunset and making it perma- right thing to do, but it must be part of a re- sions in the tax cut law enacted last year that nent for every current and future married cou- sponsible budget framework. reduced the so-called ‘‘marriage penalty.’’ ple in America. H.R. 4019 will cost nearly half a trillion dol- Without the passage of H.R. 4019, the mar- Mr. WELLER. Mr. Speaker, I yield lars over the next two decades. The Repub- riage penalty relief provisions, which are cur- back the balance of my time.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00016 Fmt 4634 Sfmt 0634 E:\CR\FM\A13JN7.018 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3531 AMENDMENT IN THE NATURE OF A SUBSTITUTE of the aisle voted for a so-called tleman from California did not under- OFFERED BY MR. MATSUI lockbox to preserve the Social Security stand the context in which I referred to Mr. MATSUI. Mr. Speaker, I offer an surplus so it could not be used for tax his argument about the fact that the amendment in the nature of a sub- cuts or spending. gentleman from Connecticut was not stitute. And so it is a very simple amend- allowed to appear in front of the full The SPEAKER pro tempore (Mr. ment, something that I believe that committee, in which I said there had LAHOOD). The Clerk will designate the they support, something that certainly been 17 full committee hearings, and amendment in the nature of a sub- we support because we think one of the only one had Members in front of it, is stitute. most important aspects senior citizens baloney. I said it was the * * * baloney; The text of the amendment in the na- have is a guaranteed benefit at the end and if the gentleman does not under- ture of a substitute is as follows: of the day, a Social Security benefit stand the use of that phrase, let me ex- Amendment in the nature of a substitute that frankly is actually only worth plain it. Apparently the argument that offered by Mr. MATSUI: about $860 a month for the average sen- the Democrats have been making for Strike all after the enacting clause and in- ior citizen; but for many, it is the only sert the following: the last hour is baloney. thing they have. SECTION 1. MARRIAGE PENALTY RELIEF PROVI- PARLIAMENTARY INQUIRY SIONS MADE PERMANENT. If my colleagues on the other side of Mr. MATSUI. Mr. Speaker, par- Except as provided in section 2, title IX of the aisle vote against my substitute, liamentary inquiry. I demand that the the Economic Growth and Tax Relief Rec- then they are basically the police offi- words of the gentleman from California onciliation Act of 2001 (relating to sunset of cer who is defending us, the firefighter (Mr. THOMAS) be taken down. I think provisions of Act) shall not apply to title III who is protecting us, the teacher who the gentleman has used a Member’s of such Act (relating to marriage penalty re- is teaching our children, as they pay lief). name in a way that is diminishing to their payroll taxes into the Social Se- the Member, and is putting the col- SEC. 2. TAX REDUCTIONS CONTINGENT ON NOT curity trust fund, that that money is RAIDING SOCIAL SECURITY TRUST league up to contempt and ridicule. If I FUNDS. not necessarily going to go to them may have a ruling, Mr. Speaker. Section 1 shall not take effect unless, dur- when they retire. We all know this. The SPEAKER pro tempore. Does the ing calendar year 2010, the Director of the Right now there are 60 million Amer- gentleman from California (Mr. MAT- Office of Management and Budget certifies icans that are receiving Social Secu- SUI) in his parliamentary inquiry de- that there will be sufficient non-social security benefits. In the next 15 years, we rity surpluses during the 10-fiscal year pe- mand that the gentleman’s words be are going to add 40 million more to a taken down? riod beginning with fiscal year 2011 so that, total of 100 million people because the during such 10-fiscal year period, the provi- Mr. MATSUI. Yes, I do, Mr. Speaker. sions of section 1 would not result in a raid baby boom population in the year 2012 The SPEAKER pro tempore. Mem- on the social security trust funds (or in- will begin to retire. We need to protect bers will suspend. The Clerk will tran- crease the size of a raid on such funds). For those funds for our senior population. scribe and report the words. purposes of the preceding sentence, such We should not be using them for estate funds shall be treated as raided during any tax relief, spending programs, or any- b 1230 year for which there is a deficit in the non- thing else. Mr. THOMAS. Mr. Speaker, rather social security portion of the Federal budget. My amendment will make Members than delay the process, since a number The SPEAKER pro tempore. Pursu- really fess up. Do they really want to of Members really want to go home and ant to House Resolution 440, the gen- protect Social Security, or are they rather than trying to get the Parlia- tleman from California (Mr. MATSUI) just kidding people? Do they want to mentarians to attempt to divine sen- and the gentleman from California (Mr. make sure that senior citizens are pro- tence structure, the gentleman from THOMAS) each will control 30 minutes. tected in their old age, or are they just California would ask unanimous con- The Chair recognizes the gentleman doing a bait-and-switch? That is what sent to remove the statement and put from California (Mr. MATSUI). this issue is all about, Mr. Speaker. Mr. MATSUI. Mr. Speaker, I yield Our bill will let them have their rein its place that the argument from the myself such time as I may consume. lief in 2011. We will continue the mar- gentleman from California about the Mr. Speaker, I would just like to say riage penalty relief, but only if it does way in which the gentleman from Con- we will concede for the moment the not come out of the Social Security necticut (Mr. MALONEY) was treated is fact if the other side wants to extend trust fund to do damage to the retire- phony baloney. this legislation, we will extend it with ment benefits of our senior citizens. PARLIAMENTARY INQUIRY them. We will take the bill from the Mr. Speaker, I reserve the balance of Mr. MATSUI. Mr. Speaker, I have a other side of the aisle, their legisla- my time. parliamentary inquiry. tion, and say we will extend it. How- Mr. THOMAS. Mr. Speaker, I yield The SPEAKER pro tempore (Mr. ever, we would just put a provision in myself such time as I may consume. LAHOOD). The gentleman will state it. there that they should accept because Mr. Speaker, golly, if any Members Mr. MATSUI. Mr. Speaker, I would last night when we had the motion to listened to the first hour, they would appreciate a ruling from the Chair. instruct, they did the same thing when think our friends on the other side of The SPEAKER pro tempore. The gen- it came to energy taxes, and that is 1 the aisle were in opposition to what we tleman will suspend. year before the proposal is to be ex- wanted to do. That it was a sham, a Is there objection to the gentleman’s tended, that is 2010, a full 8 years from farce. unanimous-consent request? now, we are talking about some 8 years And then, lo and behold, their sub- Mr. MATSUI. I object, Mr. Speaker. I from now, in 2010, the director of the stitute takes the majority’s bill. Now would like a ruling from the Chair, Mr. Office of Management and Budget at this point I am running through my Speaker. would have to certify that over the knowledge of quotes that might per- Mr. THOMAS. Mr. Speaker, I ask next 10 years, none of the funds to pay haps put this in perspective, and the unanimous consent to withdraw the for marriage penalty relief would come only one that comes to mind is the words so that we can go forward. out of the Social Security trust fund. Yogi Berra quote, ‘‘When you come to Mr. MATSUI. I object, Mr. Speaker. I Mr. Speaker, that way my colleagues a fork in the road, take it.’’ would like a ruling from the Chair, Mr. on the other side of the aisle could Mr. Speaker, what we have here is an Speaker. have it both ways. They could say that hour of debate about how horrible this The SPEAKER pro tempore. Objec- they have extended the marriage pen- side of the aisle and those who really tion is heard. alty relief for all Americans, and take do want to eliminate the marriage tax The Clerk will continue to transcribe care of all those people that the gen- penalty on the other side of the aisle the words. tleman from Illinois (Mr. WELLER) are in trying to offer permanent repeal. Mr. THOMAS. Mr. Speaker, in a fur- showed the picture of, and at the same If I understand what the gentleman ther attempt to expedite the process, time they will protect the Social Secu- from California (Mr. MATSUI) is offer- the gentleman from California asks rity trust fund. Seven times in the last ing is permanent repeal. He is offering unanimous consent to strike the words. 3 years my colleagues on the other side the underlying bill. So if the gen- Mr. MATSUI. I object, Mr. Speaker.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00017 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.043 pfrm04 PsN: H13PT1 H3532 CONGRESSIONAL RECORD — HOUSE June 13, 2002 The SPEAKER pro tempore. Objec- penalty permanent. One would think taxes if we do not take action now to tion is heard. that if they were in opposition with all deal with Social Security and Medi- Mr. THOMAS. Mr. Speaker, in a fur- those vehement phrases in the first care. I wish my colleague from Cali- ther attempt to expedite the process in hour to making the marriage penalty fornia had brought that up last year in- which the gentleman from California’s permanent, they would have a sub- stead of what got us into the debt posi- comments about the committee’s fail- stitute that would do something other tion that we are in today. ure to allow a Member to offer testi- than making the marriage penalty per- I do not know of any parent who mony at full committee when that is manent. would want us to give them a benefit the extreme exception to the rule rath- But I have to let my colleagues real- today at the expense of leaving their er than the general rule and the argu- ize here that what we are engaging in children to pay the bill for a massive ment that we denied it because of the on the floor with the offering of the national debt and a legacy of deficit gentleman, that that argument that Democrat substitute could probably spending. I do not understand the phi- the gentleman was making was in fact generally be referred to as political ba- losophy of folks who do not have a not accurate or factual, which is in a loney. problem with leaving our children and colloquial way sometimes referred to Mr. Speaker, I reserve the balance of grandchildren with a large debt just so as baloney, the gentleman from Cali- my time. we can have a tax cut or more spending fornia is willing to strike that struc- Mr. MATSUI. Mr. Speaker, I yield 5 today. ture which has been presented if it of- minutes to the distinguished gen- The government is on the verge of a fends the gentleman because I want to tleman from Texas (Mr. STENHOLM). financial crisis. The Treasury Depart- move on with the debate. The gentle- (Mr. STENHOLM asked and was ment has told us that if we do not in- man’s argument, notwithstanding that, given permission to revise and extend crease the debt limit in the next 2 is still phony; but if he is so upset with his remarks.) weeks, the government may be forced that reference that we continue to PARLIAMENTARY INQUIRY to default on our debt. The Senate has delay the proceedings of the floor, the Mr. STENHOLM. Mr. Speaker, I have acted. The House refuses to pay for gentleman from California would ask a parliamentary inquiry. that which you insist on coming to the unanimous consent that that be The SPEAKER pro tempore. The gen- floor and arguing again today for. Re- struck. tleman will state it. ducing the amount of revenue so that Mr. MATSUI. I object, Mr. Speaker. Mr. STENHOLM. Mr. Speaker, it is we default on our obligations, that is The SPEAKER pro tempore. Objec- my understanding that a previous rul- what you are for. Instead of figuring tion is heard. ing the Chair made today concerning out how we are going to stop the tide The Clerk will read the gentleman’s the question that was asked as to of rocky red ink and stop spending So- words. whether a Member on either side might cial Security surplus dollars, the ma- The Clerk read as follows: mischaracterize the other Member’s jority leadership continues to bring to the floor legislation that will continue So if the gentleman from California did voting record on this floor should be not understand the context in which I re- settled in debate. to add more debt and increased bor- ferred to his argument about the fact that The SPEAKER pro tempore. The gen- rowing from the Social Security sur- the gentleman from Connecticut was not al- tleman is correct. plus. And let me say since somebody lowed to appear in front of the full com- Mr. STENHOLM. Mr. Speaker, I want will stand up here and say spending, for mittee, in which I said there had been 17 full to say at the outset that particularly the record, in the 12 years I was here committee hearings, and only one had mem- my colleague from Illinois and others with Republicans in the White House, bers in front of it, is baloney. I said it was the Reagan-Bush years, only 1 year did the ‘‘Maloney Baloney’’ and if the gentleman who might wish to engage me in debate on what I am about to say, I will gladly the Congress, the big-spending, liberal does not understand the use of that phrase Democratic Congress we hear so much let me explain it. Apparently the argument yield for purposes of debate and would that the Democrats have been making for hope that they would be generous with about, ever spend more than the Presi- the last hour is baloney. some time if they take most of my dent asked us to spend. The SPEAKER pro tempore. The time, because I rise in strong support b 1245 Chair is aware that the gentleman of providing marriage penalty relief In the 8 years of the Clinton adminis- from California was using the word and protecting the Social Security sur- tration, with majority Republican ‘‘baloney’’ to characterize only the ra- plus. The only way you do both today leadership in this body, you will find tionale offered by his opposition, but is you vote for the Matsui amendment. we spent, Congress, notice I say ‘‘we,’’ the Chair nevertheless finds that the If you are for marriage tax penalty re- I am part of you, we spent more. It is use of another Member’s surname as lief, and I am, it is the same bill you time for you, us, to get honest with our though an adjective for a word of ridi- have got. But if you are also concerned debate and stop this politicizing and cule is not in order. about the future of Social Security, the sending out the press releases that you Without objection, the offending only way you do that is to vote for the send in to my district. word is stricken. substitute. It is kind of like last week Let me repeat, if you really want to There was no objection. I was for eliminating the estate tax on do away with the marriage tax penalty The SPEAKER pro tempore. Without every estate up to $6 million effective and protect Social Security today, objection, the gentleman from Cali- immediately. But you said no, and you there is only one honest vote you can fornia (Mr. THOMAS) may proceed in won and you lost and none of the small cast, and that is to vote for the Matsui order. businesses get anything and again you substitute. It is the only one that says There was no objection. are going to win on political points we can only do these things that feel Mr. THOMAS. Mr. Speaker, clearly, today if you prevail with 218 votes. In good, sound good, make good press re- based upon the Chair’s ruling, the fact the end, nobody is going to get any- leases if you pay for it. that the argument had been made thing except our young people. Yesterday we voted on the energy about the denial of a Member to appear I want to provide relief to the 57,000 bill, an energy bill that is a great bill. before the committee is without sub- couples in the 17th district who pay a I commend the chairman of the Com- stance. Perhaps if someone has a the- marriage penalty. I am for it. But I mittee on Energy and Commerce. The saurus and they look up synonyms for also care about the 67,000 households in gentleman from Massachusetts (Mr. ‘‘without substance,’’ they may find a my district who depend upon Social Se- MARKEY) and the gentleman from Lou- word referring to a particular lunch curity and the 253,000 workers paying isiana (Mr. TAUZIN) did a great job. meat. into the Social Security system now Yesterday we voted unanimously to The fundamental point we are mak- who are counting on us to make sure pay for it. We voted to pay for it. Some ing here is we spent an hour with their we can afford to meet our promises to were saying, well, we really did not bemoaning the fact that we want to them when they retire. I also am very mean it. Some of us meant it. make the marriage penalty permanent, concerned and care about the 250,000 I would like to get the tone of the de- they now want to take an hour on their children under the age of 18 who will bate back now. As I said in the begin- substitute which makes the marriage face a crushing debt burden and higher ning, I am willing to engage in debate.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00018 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.046 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3533 I wish somebody would stand up on this times we use jargon, and especially the Matsui amendment equally applied side and say what is it that I have said budgetary jargon, and it gets confusing to the bill that you are touting on the that is not true, what is it about the about what we really mean. floor today? fact when I state very clearly if you Let me read. It says that ‘‘during Mr. THOMAS. Mr. Speaker, will the want to do away with the marriage tax such 10-year fiscal period, the provi- gentleman yield? penalty, exactly like everybody on this sions of section 1 would not result in a Mr. STENHOLM. I yield to the gen- side, all of my friends, it is the same raid on Social Security trust funds or tleman from California. bill. increase the size of a raid on such Mr. THOMAS. Mr. Speaker, I thank It is the same marriage tax penalty funds.’’ the gentleman for yielding. bill. But what it does not do, it does Now, I would say that the funda- I will tell the gentleman it does not, because what we do is simply put in not increase the deficit on the Social mental political motivation of this place the current tax structure on a Security system in the second 10 years substitute is to focus on how they de- permanent basis. If I might very briefly that your amendment, pure like you scribe the decision that the Director in continue, and I will try to get time on want it voted on, does. That is the the Office of Management and Budget this side if the gentleman does not would make. He or she would decide issue. have it, if you have indicated you agree I wish you had the same courage now whether or not there was a, quote-un- you want to make the tax permanent, to stand up and say we are going to quote, ‘‘raid’’ on the Social Security and I want to make the tax permanent, borrow the $750 billion in order to give trust fund. if we make the tax permanent, is it not you that tax cut, and we are going to If you believe that is technical jargon incumbent on us to make sure we fol- send the bill to your grandchildren. that is used to determine a budgetary low fiscal discipline over the next 8 That is what you are doing. That is ex- consequence, okay. If you believe budget years and make sure we move actly what you are doing. ‘‘raid’’ carries pretty heavy political tax measures that can empower the Why are we doing this? What is it power and that the determination of a business sector and individuals so that that makes this such a great political raid does not create an attitude, does we can grow the economy so that we do issue? I do not understand. not get you into a negative frame of not have to worry about the con- Vote for the Matsui amendment, vote mind, then I guess you do not under- sequences that the gentleman is con- down the base bill; and then let us get stand how much this is a political exer- cerned about? civility back in the House and start cise. I think it is the idea of fiscal con- working together, before we undo a lot I appreciate the gentleman from servatism and the idea of trying to of good things for our grandchildren. Texas, my friend, and his fundamental grow the economy that some of my Mr. THOMAS. Mr. Speaker, I yield concern about our resources. I believe friend from Texas’ friends are worried myself such time as I may consume. he is absolutely honest in his attempts about actually having to do. You would Mr. Speaker, I appreciate the gentle- to make sure that we live within our rather create a false crisis than to man’s desire to let us get back to- budget. I agree with him. I am willing grow ourselves out of it. That is my gether, to let us lower the political to join hands with him. But what I opinion. rhetoric. We are doing some kind of want to do is unleash entrepreneurship, Mr. STENHOLM. Mr. Speaker, re- game here, and what they are engaged to hold the fiscal discipline in place. claiming my time, I thank the gen- in is serious legislative business. We can work our way out of this prob- tleman for that comment. It is inter- I ask anyone to read the substitute. lem. But I just have a little trouble esting how you can stand here on the First of all, their bill has no effect with the technical term to determine floor and look me in the eye and say until 2010, calendar year 2010. That is 8 whether or not his substitute has valid- that the criticism of the exact lan- budget years from now. We do not have ity, and it is the term ‘‘raid.’’ I think guage is not the same. to worry about what kind of obligation the term ‘‘raid’’ in and of itself is a po- Now, you make an argument on a our children are going to have if we litical statement. separate issue, and this is the one that make prudent spending decisions, if we Mr. Speaker, I yield the remainder of I take to the floor to oppose, because I stimulate this economy to allow entre- my time to the gentleman from Illinois think making tax cuts or spending in- preneurship to prevail so the economy (Mr. WELLER) and ask unanimous con- creases permanent is not fiscally re- can grow. sent that he be allowed to control the sponsible. We have eight budget seasons to cre- time as he sees fit. Mr. WELLER. Mr. Speaker, I yield 1 ate an environment to bootstrap our- The SPEAKER pro tempore (Mr. 1 ⁄2 minutes to the gentleman from California (Mr. THOMAS). selves out of the situation that the LAHOOD). Is there objection to the re- Mr. STENHOLM. Mr. Speaker, will tragic events of September 11 of last quest of the gentleman from Cali- year put us in, the position we are in. the gentleman yield? fornia? Mr. THOMAS. I yield to the gen- So to say that now we have to shut off There was no objection. tleman from Texas. all possibility for 8 or 10 years down Mr. MATSUI. Mr. Speaker, I yield 2 Mr. STENHOLM. Mr. Speaker, I the road, basically tells me they have minutes to the distinguished gen- thank the gentleman for yielding. no faith in the American people and tleman from Texas (Mr. STENHOLM), so Mr. Speaker, I think making tax cuts they have no intention to engage in he may be able to characterize his own or spending increases permanent in the prudent fiscal policy over those 8 comments, rather than have someone climate which we are now under, in years. else do it for him. which we have seen a $5.6 trillion sur- Now, let us talk about taking rhet- Mr. STENHOLM. Mr. Speaker, I am plus evaporate and we are now into a oric out of the debate. If you find out sorry that the chairman of the Com- $300 billion deficit, I do not believe it is what it is that the structure of the sub- mittee on Ways and Means is leaving fiscally responsible on our grand- stitute does is, it takes the congres- the floor, but I see he is coming back children to have votes like this day sional control over the purse strings, now. after day after day. I do not. I respect- jealously guarded by the Congress over I would just ask the chairman re- fully differ. the years, and blithely says the Direc- spectfully if the criticism that you just And on the spending, one thing that tor of the Office of Management and made of the Matsui amendment would really grates on me, when we at- Budget would certify, would take the not be equally applied to your bill on tempted to have a vote on a substitute decision out of the people’s House and the floor, because it is the same lan- budget this year that would have made take it down to the executive branch. I guage? this argument in the budget, you on think that is fundamentally wrong. It Now, as far as the word ‘‘raid’’ is con- the majority side denied us the oppor- undermines a key provision of the Con- cerned, I would be perfectly willing to tunity to have that debate on the floor stitution. change that. We could say ‘‘steal,’’ we of the House during the budget. That is But what is that the Director of the could say anything; but that does not what grates on me. Office of Management and the Budget help. Mr. THOMAS. Mr. Speaker, reclaim- is supposed to determine? This is where But I want to yield to the gentleman. ing my time, I understand the gen- the politics comes in. I know some- Is not the criticism that you made of tleman chafes under the rules of the

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00019 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.051 pfrm04 PsN: H13PT1 H3534 CONGRESSIONAL RECORD — HOUSE June 13, 2002 House because he is now a minority. I tens of billions matter. You are simply will not be January 1, 2011. The way to understand that. I was 16 years in the being reckless with the future of our do that is to make the marriage pen- minority, and we are operating under children and our grandchildren, and we alty relief permanent, to do it now, to far more liberal rules of the House. I are emphatic in saying let us take an- let couples begin to plan what they can understand how it grates on him. other look before that happens. That is do with their financial resources in the But I will tell the gentleman that the fiscal integrity, that is fiscal responsi- future for the advantage of children structure that the gentleman had when bility; and I am proud to rise in sup- and grandchildren. he was in the majority was far less lib- port of the amendment of the gen- Mr. MATSUI. Mr. Speaker, I yield 3 eral than ours. If the gentleman will tleman from California (Mr. MATSUI). minutes to the distinguished gen- carefully review what I said, which is The fact there has been some tleman from the State of Texas (Mr. good practice for everyone, my com- histrionics on the other side, I would GREEN). plaint was about the use of the term say to the gentleman from California (Mr. GREEN of Texas asked and was ‘‘raid’’ and the fact that the structure (Mr. MATSUI), I think shows the value given permission to revise and extend that triggered the review was the Of- of your amendment. his remarks.) fice of Management and Budget. That Mr. WELLER. Mr. Speaker, as we re- Mr. GREEN of Texas. Mr. Speaker, it does not appear in the underlying bill. turn to the basics of this debate of is not that I necessarily disagree with As far as I know, one of the best mo- whether or not we eliminate the mar- what my Republican colleagues want tivations to make sure people do the riage tax penalty or do we impose a $42 to do in 2011 and for the decade after right thing is to have a goal; and if we billion tax increase on 36 million mar- that, but let me remind my colleagues, make marriage tax relief permanent, ried working couples, I would yield 2 we are in the year 2002. We do not need we have a goal to make sure that the minutes to the gentleman from Mis- to fight this battle now. Why do we not responsibility of not pushing this off on souri (Mr. BLUNT), the distinguished wait until 2009 or 2010 so we can see to our children is one that we would deputy majority whip. what is happening with our budget match by fiscal conservatism and stim- (Mr. BLUNT asked and was given then? But what we are seeing is that ulation of the economy. permission to revise and extend his re- they would rather fight a battle today Mr. MATSUI. Mr. Speaker, I yield 3 marks.) for something that may happen 10 minutes to the distinguished gen- years from now instead of dealing with b 1300 tleman from Michigan (Mr. LEVIN), a the problems we have today. member of the Committee on Ways and Mr. BLUNT. Mr. Speaker, I thank We are in a war on terrorism. Our Means. the gentleman from Illinois for yield- budget deficits are exploding for the (Mr. LEVIN asked and was given per- ing me time. next 8 years, as we would expect. Yet, mission to revise and extend his re- I am here to talk about what happens they want to take time on the floor to marks.) to working families in 2011 if we do not say we want to make sure you can tax- Mr. LEVIN. Mr. Speaker, I am so go ahead and act now, act in a way plan for 10 years from now. I wish I pleased to follow the gentleman from that responsibly assures that we do the could tax-plan for next year or the year Texas (Mr. STENHOLM). We have a lot in right thing for the children of those after. common. I think what gripes him and families. The battle should be on how we are what gripes me is not simply being in My good friend from Texas talked a going to deal with the deficit right the minority, but your fiscal irrespon- couple of times about what we are now; how we are going to deal with the sibility. doing for our grandchildren. What do tax cut that was passed last year be- For the chairman of the Committee we do for these grandchildren if we ac- fore September 11; how September 11 on Ways and Means to rise and call cept the figures that we are hearing on and the increase that all of us support himself a fiscal conservative, when the floor today? Mr. Speaker, $460 bil- to fight the war on terrorism, how we under this majority we have seen the lion of tax increases for families where are going to deal with an economy that surplus essentially evaporate, other moms and dads are both working over did not come back or has not come than Social Security, and the Social 10 years, $460 billion taken away from back like some of us wanted it to or Security surplus threatened, to call those families where 2 people every day hoped it would do, or whatever we that fiscal conservatism? You essen- get up, go to work, do their very best could do, maybe some other tax cuts, tially are the fiscal radicals. to provide for their families, and we de- but they need to be more immediate, I favor marriage tax relief and have cide that we want to reinstate a mar- than to argue today over something voted for it, so I would say to the gen- riage penalty on January 1, 2011. That that is going to happen 10 years from tleman from Illinois (Mr. WELLER), do is not acceptable; it is not something now. That is why I think it is so ludi- not get up here and say otherwise. And this Congress should be considering. crous to be up here saying we are going so have most Democrats. The issue is What we have a chance to do today is to take care of you in 2011 but, by the whether we can combine that relief to really be sure that this relief be- way, for the next 9 years, we are going with fiscal responsibility. We say we comes permanent. to have deficits out of the gazoo. can do both, and essentially what you The fact is that when you get mar- The Democratic substitute, all it do is to throw away the future. You go ried, you should not have to have a says, it has the same things that the through the roof and, then you say ‘‘if penalty in the Tax Code. If anything, Republicans do for 10 years from now, Congress,’’ ‘‘if Congress,’’ ‘‘if.’’ there should be a bonus in the Tax again, which is somewhat silly, but it We have seen your record of fiscal ir- Code. You get more of what you en- says, okay, we will do this 10 years responsibility. You do not want to vote courage, you get less of what you dis- from now, but we are going to make on the debt ceiling separately. You are courage. A marriage penalty works sure that Social Security and Medicare doing everything you can to avoid it, against the very things that we want are safeguarded. That is all it says. and at the same time you are passing to encourage: families working to- That is why it seems we ought to as a bills that make the debt worse, worse, gether, people going to jobs every day House agree we want to take care of worse. So this is not a question of mar- to try to create a better life for their our seniors. There are those of us who riage tax relief. Indeed, the bill that families. We do not want to have a $42 10 years from now may be eligible for originally passed here, half of the billion annual tax increase that goes Social Security, but I know a lot of my money had nothing to do with mar- into effect January 1, 2011 because peo- constituents will be, and I want to riage tax relief, while our bill focused ple are married. make sure that they have Social Secu- in on this, as it did with the estate tax. If we are going to think about pen- rity and Medicare there instead of hav- What your bill does is in the second alties in the Tax Code, it should be ing the trust fund continue to be 10 years essentially costs $330 billion, somewhere besides here. We need to drained away by excessive deficits that plus debt service, which raises it to move forward with this legislation we expect. $460 billion. It used to be said around today and we need to make it certain Now, I hope it does not happen in the here that millions matter. What Demo- that one of the biggest tax increases in next 3 or 4 years, but unless we address crats are saying is that billions and history for working married couples today and not fight battles that are 9

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00020 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.053 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3535 years away, we will not address it and form, it raises taxes $42 billion on over this prescription drug program that we will have the budget deficits as far 30 million families. There is rarely a they need. It would cost less than this as the eye can see, and that is for the week that passes around here in which particular bill. Let us give seniors se- next 9 years, Mr. Speaker. the Democrat leadership does not at- curity, knowing that we are going to That is why the Democratic sub- tempt to raise taxes in one way or an- protect and strengthen Social Security stitute is very simple. We will give you other. Last week, they even voted to into the future, which we could do if we the tax cut. You can tax-plan for 10 revive the death tax. But the remark- did not pass this bill. But no, we are years from now if you can, but we are able thing is that my friends are also not doing that. We are committing going to make sure that if it impacts proposing to weaken the Constitution. monies into the future knowing that Social Security and Medicare, that it Our Constitution clearly states that right now, today, we are already in def- does not touch it, that the trust funds tax increases such as this one that they icit spending. will be there. propose in their substitute must begin Where is the accountability? A year That is why I think it is so strange in the House of Representatives. Our ago the President said, I can pass a tax that we are having a battle for 10 years Founding Fathers rightly structured cut bill and not touch a dime out of So- from now. Even if we are doing it in our system this way so that voters cial Security or Medicare trust fund 2013 to 2022, if the baby boomers are could hold the people who raise their money. Today, we are using every sin- aging into Medicare and Social Secu- taxes accountable. The Democrat sub- gle cent of it, and now we want to com- rity, this legislation could cost $330 bil- stitute would empower unelected gov- mit even more of it. Where are we lion. Where are we going to get that if ernment bureaucrats to raise taxes on going? Where are our priorities? How we have a $250 billion deficit for this married couples based upon their pre- do we explain this to the American year and for as far as the eye can see? dictions about the government’s bal- people? We must be accountable. We I just think, again, we are fighting a ance sheet or the needs of the govern- must have fiscal discipline. We cannot battle for political purposes and not ment. Their substitute tries to pull an continue to say that we will let the na- really dealing with the reality at hand, end run around our Constitution. Their tional debt, which is close to $6 tril- with the war on terrorism or an econ- substitute erodes the ability of voters lion, grow. omy that is not in good shape. We need to hold accountable those seeking to We had a plan 3 years ago that would to do something today instead of 10 grab more of their hard-earned wages. actually have eliminated that debt. years from now. Members should defend the Constitu- Today, under the President’s budget, it Mr. WELLER. Mr. Speaker, as we re- tion and reject higher taxes by defeat- grows. And now, with this it grows turn to the real issue here of whether ing this substitute. Vote ‘‘no’’ on the even further. How can we talk about or not to impose a $42 billion tax in- substitute and vote ‘‘yes’’ to support families and the marriage penalty re- crease on 36 million married working marriage penalty relief. couples, I am happy to yield 3 minutes lief when, in fact, what we are doing Mr. MATSUI. Mr. Speaker, I yield 3 to the gentleman from Texas (Mr. with this bill is actually causing fam- minutes to the distinguished gen- ily penalty, not relief. Why? Because DELAY), the distinguished majority tleman from the State of California whip. we take out one of these things, one of (Mr. BECERRA), a member of the Com- Mr. DELAY. Mr. Speaker, I appre- these things that too often Americans ciate the gentleman yielding me this mittee on Ways and Means. use and use unwisely. With the govern- Mr. BECERRA. Mr. Speaker, I thank time. ment credit card you can say, I can The House, once again, is revisiting the gentleman for yielding me this give you marriage penalty relief, not that long debate about whether work- time. today, in about 7 years, and it is going ing families pay too little in taxes or What are we doing today? As is often to cost us half a trillion dollars, but they pay too much. Only the Demo- the case, I think most people watching that is okay, I have this. Who pays? We crats see cutting taxes as a spending this are probably pretty confused. are mortgaging our children’s future, program. Deficits are caused by spend- What are we doing today? Well, we because they will have to pay for it. We ing too much money, not by raising too have a bill from the majority today be- are mortgaging our seniors’ lives, be- little taxes. fore us that would cost, during its first cause we can give them prescription So before I explain why this awful 10 years in effect, about $460 billion. drugs, and we are mortgaging seniors substitute must be defeated, we ought But, it will not take effect for the next today because they can say, I have So- to tell the people where we stand and 7 years, so none of the benefits that are cial Security, but I want to make sure what this debate is really about. claimed under this marriage penalty my children have it as well. Over the last few weeks, Republicans protection take effect until 2011. So Mr. Speaker, let us get our priorities have voted to lower the tax burden on nothing goes to anybody today. But we straight and support this bill and vote American families. We extended the are planning today to commit $460 bil- for the substitute. adoption tax credit to help more vul- lion starting in 2011, even when today Mr. WELLER. Mr. Speaker, as we re- nerable children in our society find we know we have a $100 billion deficit turn to the basic issue here of whether homes where they are safe and loved. in today’s, this year’s, budget, and we or not we have a $42 billion tax in- The House permanently eliminated the know that every single dime out of the crease on 36 million married working hated death tax, which destroys so Social Security trust fund and the couples, I am happy to yield 2 minutes many small businesses and farms. In Medicare trust fund today, this year, is to the distinguished gentleman from the weeks to come, we will strengthen being used to pay for things that we do Arizona (Mr. HAYWORTH). retirement security by allowing work- not have money to pay for yet because Mr. HAYWORTH. Mr. Speaker, I ers to expand their retirement savings we have a $100 billion deficit. thank the gentleman from Illinois for through 401Ks and IRAs, and we will What else are we doing today? Well, yielding me this time. raise the child tax credit to $1,000 so Democrats today stood up and intro- Returning to the debate on the floor parents can keep more of the money duced their prescription drug plan for today, it is very interesting to listen to that they earn to support their fami- seniors under Medicare, one that would the gentleman from California, my lies. provide seniors, every senior, not just friend, because he seems to be of two All of these measures passed the certain seniors, every senior, a pre- minds. He stood here on the floor be- House with strong bipartisan majori- scription drug policy under Medicare. moaning making permanent marriage ties, but the Democrat leadership’s Where are our priorities? What should penalty relief, alleging all sorts of fis- continuing devotion to big government we be doing? cal problems, and yet he said to sup- causes them to reflexively oppose any- The American people want us to take port the substitute offered by the other thing that lets people keep more of the care of the fear of terrorism. Let us in- gentleman from California. So there is money that they earn. That is why vest money there. The American people an inherent disconnection right there. they are demonizing the President’s say it is about time that seniors did Mr. BECERRA. Mr. Speaker, will the tax cut. not have to choose between their rent gentleman yield? I have seen a lot of Democrat sub- and their medicine, between their food Mr. HAYWORTH. No, not right now. stitutes, and this one is so true to and their medicine. Let us give them I want to make my point.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00021 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.054 pfrm04 PsN: H13PT1 H3536 CONGRESSIONAL RECORD — HOUSE June 13, 2002 Mr. BECERRA. Mr. Speaker, I want trust fund is not to be raided for this The previous speaker, I think, made to explain the disconnect. purpose. a very interesting observation. I am Mr. HAYWORTH. Mr. Speaker, on Mr. Speaker, the Democrats simply surprised it has not been made many the gentleman’s own time he can get want to pay for this tax relief act by times, at least from this side. Yes, a lot the time to explain the disconnect. implementing provisions of the Cor- of us did vote for the line-item veto, Here is the point I would like to porate Patriot Enforcement Act, spon- but the court said that the line-item make today, and this is the point that sored by myself and that old veto given to the President is unconsti- I think we all need to keep in mind. If, meatgrinder, the gentleman from Con- tutional because it is giving legislative in fact, they are offering marriage re- necticut (Mr. MALONEY). Taxpayers authority to the executive branch. lief, we say welcome. But there is a around the country want Congress to Whoa, wait a minute. Is that not problem here in what they have done. act swiftly to stop these corporations what we are doing here? Are we not Article I, section 7 of the Constitu- from shelving their patriotism to save giving the Office of Management and tion reads, ‘‘All bills for raising rev- a few bucks. Budget the opportunity to give a huge enue shall originate in the House of That is what we should be debating tax increase simply by a guess that it Representatives.’’ What the substitute on this floor, these companies that are will make in the year 2010 that the does is empower the director of the Of- moving to Bermuda. But constituent Congress may be spending a little bit of fice of Management and Budget to calls have fallen on deaf ears because the surplus, or that the surplus may be make a determination. we cannot readily get that piece of leg- called into play in order to bring fair- So let us get this straight. We are islation to the floor. The Neal-Maloney ness to the Tax Code? going to take and ignore the powers Corporate Patriot Enforcement Act I think it is also important to realize given to this House to make the czar of would immediately and permanently that we will not have a surplus after revenue the director of the Office of shut down the exodus of American cor- 2017, so we need to get together in a bi- Management and Budget, and that per- porations who are moving to Bermuda, partisan way and solve the problems of son will decide when and if tax relief in this time where we are all feeling Social Security so that it will be there will be enacted or put into practice. It good about patriotism in this Nation, after 2017, and we will not have to be defies the Constitution. so they can avoid paying U.S. cor- too concerned about what the question Mr. Speaker, we are talking about a porate income taxes. of the surplus is, because that is going Hardworking American families are, couple of major issues here today that to go away. yes, entitled to tax relief; but I am sure involve the notion of trust and what is But returning to the issue here, we these families do not want to burden sacred. The marriage vow is sacred, are trying to erase a scheduled tax in- their children by placing our trust and I believe that, and writings in the crease in 2010 that the Congress can funds and budget at risk. Let us pay for Constitution are likewise. We dare not enact simply by increasing spending the Marriage Penalty Relief Act. Let mortgage the rights of elected people and not having to vote to increase us stop the procedural games. Let us in a free society, elected representa- taxes. Vote against the substitute; vote get a vote in this institution on the tives, described in this document of for the underlying bill. Neal-Maloney Corporate Patriot En- limited and enumerated powers, for a Mr. MATSUI. Mr. Speaker, I yield forcement Act that would stop cor- gimmick empowering a bureaucrat in myself such time as I may consume. porate expatriates. Mr. Speaker, I am glad people are the executive branch to decide on tax- I will hold Members to the same offer concerned about the Constitution of ation. Yes, on marriage penalty relief; and opportunity I provided a couple of the United States. I wish we were con- no on a clever, but flawed, substitute. weeks ago in my assessment of that cerned about it in a lot of other cases, b 1315 vote: put that legislation on this floor and it will get 300 votes. We deserve a as well. Mr. MATSUI. Mr. Speaker, I yield 3 Mr. Speaker, I yield 2 minutes to the minutes to the distinguished gen- vote on that bill. Mr. WELLER. Mr. Speaker, as we re- distinguished gentleman from Georgia tleman from Massachusetts (Mr. turn to the debate on the issue before (Mr. BISHOP). NEAL), a member of the Committee on us on whether or not to impose a $42 (Mr. BISHOP asked and was given Ways and Means. billion tax increase on 36 million mar- permission to revise and extend his re- (Mr. NEAL of Massachusetts asked ried working couples, I am happy to marks.) and was given permission to revise and yield 3 minutes to the gentleman from Mr. BISHOP. Mr. Speaker, I rise extend his remarks.) today to support repeal of the sunset Florida (Mr. SHAW), a distinguished Mr. NEAL of Massachusetts. Mr. member of the Committee on Ways and provision of the Marriage Penalty Re- Speaker, I thank the gentleman for Means. lief Act. Mr. Speaker, a recent study yielding time to me. Mr. SHAW. Mr. Speaker, I thank the found that over 728,000 married couples Mr. Speaker, I am sure the previous gentleman for yielding time to me. in Georgia, 52,000 in the district I rep- speaker, by the way, in employing the Mr. Speaker, I would like to just re- resent, are adversely affected by the logic he did as he pulled out the copy of view exactly where we are, where we marriage penalty. Today we have the the Constitution, I would bet Members are going, and why we are here. ability to remove this burden and re- anything he voted for the line-item If I understand the way the thing is peal one of the most unfair provisions veto. So where Congress is in charge of arranged right now on the substitute, of our Tax Code. The family is the spending by the Constitution, I will bet to begin with, I think it is a truism, basic unit of society. As the family he voted to give that power to the and I have not heard anybody in this goes, so does our society go. President of the United States. I would House defend the marriage penalty. It The Bible says, he who finds a wife be willing to bet anything he voted for is a tax that taxes people that are mar- finds a good thing and obtains favor that. ried, where there are two wage-earners from the Lord. Marriage is a good Mr. Speaker, today we vote on in a household, more than they would thing. It is awful that our current laws whether or not to repeal the sunset be taxed if they were single. Everyone encourage cohabitation without mar- provision of the Marriage Penalty Tax in this House agrees that that is wrong, riage. Untold numbers of men and Relief Act. Now, marriage penalty tax and we corrected the situation. women should not be encouraged to relief is important; but just as impor- But because of a peculiarity in the make this choice. At best, our laws tant is, how do we pay for it? Time and rules of the Senate, we were only able should support marriage and the fam- again, the House has been prohibited to do it for 10 years, so we did it for 10 ily; at the least, our laws should be from voting on ways to pay for tax re- years. Ten years is better than noth- neutral. lief provisions that do not steal from ing. Now we want to make it perma- Today I ask my colleagues to em- Social Security and Medicare trust nent. I would say that many Democrats brace marriage, embrace the family funds. The Matsui substitute is a re- are going to vote with the Republicans unit, and create another reason for ev- sponsible approach to providing mar- in making it permanent. They are not eryone to find their good thing. Re- riage penalty relief by guaranteeing going to turn this over to the Office of move the financial hassle associated certification that the Social Security Management and Budget. with matrimony, permanently repeal

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00022 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.057 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3537 the marriage penalty, and fully encour- coverage. In so doing, I would remind year period will invade the Social Se- age the institution of marriage and the the gentleman that we are the only curity trust fund, as we are doing now. strengthening of our family units. people who have put forth in the past a It is my hope, Mr. Speaker, that we Mr. WELLER. Mr. Speaker, as we re- budget to keep that fiscal responsi- vote for this substitute and turn down turn to the basic debate we have before bility. final passage of the bill if my sub- us of whether or not to impose a $42 But my responsibilities also include, stitute fails. billion tax increase on 36 million mar- and my priorities include, families and Mr. Speaker, I yield the balance of ried working couples, I am happy to keeping them strong as the bulwark of my time, which I believe is 5 minutes, yield 11⁄2 minutes to the distinguished America. When we do that, the big fear to the distinguished gentleman from gentleman from Missouri (Mr. AKIN). that I have is that my children, when Texas (Mr. TURNER). (Mr. AKIN asked and was given per- they come to me later on and they de- b 1330 mission to revise and extend his re- cide that they have found someone marks.) they want to spend the rest of their life Mr. TURNER. Mr. Speaker, I thank Mr. AKIN. Mr. Speaker, I rise to with, because I have taught them the gentleman for yielding me time. speak against the Democrats’ sub- about fiscal responsibility, they will Mr. Speaker, it is time for this Con- stitute. say to me, dad, I can save $1,400 if we gress to start being honest with the Mr. Speaker, I would say that any- just live together and do not get mar- American people. Last June I was body who is going to acknowledge the ried, and we can use this $1,400 a year among a majority of this House that need for some level of fiscal responsi- on all kinds of good and wonderful voted for the largest tax cut in the his- bility, that is something that I think things, because I have taught them to tory of this country. The official esti- we all respect and know that we have be fiscally responsible. mate at that time of the surplus were some need for that. The question is, That is not a question I want to have. that we could anticipate over $5 tril- does this, the Democrat substitute, We have to take care of Social Secu- lion in surpluses over the decade. We really give us any fiscal responsibility, rity and Medicare. We should not be spent half of that on the tax cut. Here or is it, rather, a fig leaf or an excuse? doing that on the backs of American we are just one year later and the bal- I am afraid it is more of a fig leaf and families. This is not about whether we ance of that surplus is gone. In fact, an excuse. are spending Social Security; this is the projections are that we have defi- The substitute stipulates that the about whether we value and put a pri- cits as far as the eye can see. The ques- marriage penalty is going to be reim- ority on families as the basis of our tion that we should be debating on this posed, this unfair prejudice against American life. I would encourage Mem- floor today is not how many additional married people will be reimposed, un- bers to oppose the substitute and sup- tax cuts can we give, but the issue we less there is a non-Social Security sur- port eliminating permanently the mar- should be debating is who is going to plus. riage penalty on American families. pay the bills. Now, there are a couple of problems Mr. MATSUI. Mr. Speaker, I yield We all have stood united with our with that. The first problem is, who is myself 2 minutes. President, Democrats and Republicans it who is going to make that deter- Mr. Speaker, again, I just want to re- alike, in a commitment to fund what- mination? Who is going to guess iterate some numbers here before the ever is necessary to win this war on whether there are going to be non-So- last speaker closes, if I may. terrorism and to protect the security cial Security surpluses, particularly At this time, we have tapped into the of the homeland. But my Republican for a period of 10 years? That is going Social Security trust fund, in other colleagues refuse to acknowledge that to be the Office of Management and words, money that is payroll tax, we should not only vote to spend the Budget. Let us see, that is the execu- money that people think is going into money for the war, but that we should tive branch, or at least it is a bureau- a trust account to pay for their retire- be willing to pay the bills for this war. crat, as opposed to the Congress. That ment benefits, by $1.7 trillion. That in- Instead, they bring a new tax cut on is flatly unconstitutional. cludes debt service, and it includes the floor every week. You would think So the first problem on the face of spending programs that we will have that September 11 has never happened. this is that it is an amendment that is over the next 2 or 3 months. We have called to the young men and going to be putting into place some If we extend the tax cut, if we pay for women in uniform serving in far-off particular procedure which just flat the defense bill, the farm bill, the places to be willing to make the ulti- out is inconsistent with the Constitu- President’s Medicare proposal in terms mate sacrifice for our freedom, but we, tion. But, unfortunately, the inconsist- of his prescription drug proposal, we we in this Congress have refused to tell encies go even further and the prob- could add to that another $1.5 trillion, the American people that they too lems go further, because we are asking and make a total of $3.2 trillion. must be ready to share in the sacrifice some bureaucrat to be able to say to If in fact we do those things, and I by at least being willing to pay the Congress that, I am going to guarantee think most people will agree we are bills. you that for 10 years, not just 1 year going to have to do many of these Instead, the Republican majority has but 10 years, that there will be no things, we are going to make it impos- said to America’s younger generations, budgets; that you will not go on a tax- sible to solve the Social Security prob- we will leave the bills to you. and-spend spree. I think that is asking lem in America. We are going to make We should not ask the young men an awful lot. That is like asking some- it impossible to make sure that we con- and women in uniform to go fight this body to roll a seven on a single dice. tinue benefits for our senior citizens. war and then come home in their in- Mr. WELLER. Mr. Speaker, as we It is my hope that good judgment and come-earning years and to have to be continue our debate on whether or not common sense will finally come to us stuck paying the bill for the war they to raise taxes by $42 million on 36 mil- in this institution. If in fact we are fought. Nor should we be telling the lion working couples, I am pleased to going to deal with something 8 years next generations of seniors that we are yield 21⁄2 minutes to the distinguished down the road, at least we ought to going to use their retirement funds, gentleman from Minnesota (Mr. KEN- have the common sense, Mr. Speaker, the Social Security trust funds, to pay NEDY). to make sure that it does not further for this war. Mr. KENNEDY of Minnesota. Mr. invade and raid the Medicare and So- Never in the history of our Nation Speaker, the previous speaker, the gen- cial Security trust fund. have we cut taxes in the midst of war. tleman from California, asked, what The only way we are going to be able The way we are headed, this Repub- are our priorities, and asked us to to do that on this bill, Mr. Speaker, is lican administration will have the focus on fiscal discipline and fiscal re- if in fact we support my substitute, largest increase in spending of any ad- sponsibility. which basically says that we will let ministration in our history and will Yes, our priorities include making this marriage penalty relief go into ef- have the largest increase in debt. And sure that Social Security is secure for fect in 2011; however, the Director of somebody owes it to the American peo- all generations and that we preserve the Office of Management and Budget ple to tell them why and to tell them Medicare and add prescription drug must certify that no funds over that 10- that sacrifice goes beyond the duties of

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00023 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.060 pfrm04 PsN: H13PT1 H3538 CONGRESSIONAL RECORD — HOUSE June 13, 2002 those young men and women in uni- Let me give you an example of a cou- it so fascinating that so many would be form to the American people. ple here who really illustrate why we opposed to giving the American people If we really believe in protecting need to make permanent our effort to some of their money back to buy their those young men and women fighting eliminate the marriage tax penalty. kids school clothes or help put food on in far-off places, if we really believe in When we worked to eliminate the mar- the table or help pay the car insurance. supporting the FBI and the CIA and the riage tax penalty over the last several All of these things are very important law enforcement community that is years, we asked a very basic question, to people and I think it should be im- fighting this war on terrorism, we that is, is it right, is it fair, that under portant to Members of Congress. should be willing to pay the bill. our Tax Code that a married working It is interesting, just some facts be- I will be happy to give additional tax couple, husband and wife, both in the hind the eliminating the marriage tax. relief to any American family just as workforce, who are married, pay higher A vote against this bill is a vote to soon as we can tell those American taxes than an identical couple who live raise taxes on over 20 million married families that it will not be done with together outside of a marriage? We couples. A vote against this bill is a money borrowed from your seniors’ re- have decided that is wrong, and I think vote to raise taxes on over 3.9 million tirement funds and it will not be done we agree it is wrong for our Tax Code married Americans of African descent, with money borrowed from the public, to punish our society’s most basic in- African American couples. And the because today that is exactly what our stitution, which is marriage. marriage penalty, this penalty that Republican friends propose. The example I have is a young couple you have worked very hard to elimi- If we really believe in the great cause from Joliet, Illinois, Jose and nate, this penalty hits middle income to which we are now engaged, let us be Magdalene Castillo. They have a young married couples the hardest. I think it honest with the American people and son, Eduardo, a young daughter, Caro- is important that we eliminate this. tell them that the surplus is gone, that lina. He makes about $57,000. She As we know, we get taxed every time the bill collector is at the door, and makes about $25,000. They have a com- we turn around. We get taxed when we this generation must be willing to bined income of $82,000. And prior to turn on our lights. We get taxed when make the same sacrifices made by the the Bush tax cut being signed into law we put gas in our cars. We get taxed greatest generation during the Second last year, which included our effort to when we eat lunch. We get taxed when World War. eliminate the marriage tax penalty, we eat brunch. Moms are taxed when The bill I am voting for today will the Castillo family paid $1,125 more in they are taking their kids to Little give tax cuts whenever the official esti- higher taxes just because they are mar- League ballgames, when they get in mate of our Congressional Budget Of- ried. In Joliet, Illinois, in the area I their car and they stop at the local 7– fice says that we can do it without bor- represent, $1,125 is a lot of money. To Eleven to get fuel or to get oil. Dads rowing money on the credit card of the some here in Congress it is chump are taxed when they try to save a few next generation. A vote for the Demo- change. We are talking millions and bucks for retirement in order to pro- cratic substitute is the only honest billions and trillions most of the time vide for the families. And grandma and vote and it is the only way to really here. But for couples and families like grandpa are taxed for having the au- stand with the troops fighting for this the Castillos, $1,125 is several months’ dacity to die. They get taxed. So we Nation in far-off places today. worth of car payments. It is several get taxed from the time we get up in Mr. WELLER. Mr. Speaker, I yield months’ worth of daycare for Eduardo the morning, late at night when we go myself the balance of my time. and Carolina when mom and dad are at to bed and we kiss our wife good night, Mr. Speaker, let me state that to work. It is money that can be set aside and we think that is free, but it is not, begin with, I rise in opposition to the for their college education. That is the because of this unfair, arcane marriage Democratic substitute and I would choice we have to make today. Because tax. note, as the previous speaker noted, if we fail to make the marriage tax I commend the gentleman from Illi- that the right to raise taxes is being penalty elimination permanent, Jose nois (Mr. WELLER) for fighting to elimi- handed off to an unelected bureaucrat and Magdalene Castillo will once again nate this tax. Love and marriage goes by the Democratic substitute. And have to pay $1,125 more in higher taxes. together like a horse and a carriage. under our Constitution, under the Con- And for them, that was 12 percent of Marriage and taxes go together like a stitution, all revenue and spending ini- their tax bill. So just the marriage tax mosquito at a picnic. So we need to tiatives must originate right here in penalty elimination in the Bush tax eliminate this tax. Again, I commend this House of Representatives. And pre- cut alone lowers the Castillo family’s the gentleman. viously when the line-item veto was tax burden by 12 percent. That is My wife thinks it is taxing enough to passed by this Congress and proposed money they can spend to take care of be married to me, and she says she and then passed into law by the Con- their own family’s needs, rather than thinks it is unfair that there is such a gress, the Supreme Court ruled that at spending here in Washington. thing as a marriage tax. And I appre- that time the Congress was handing off Every time we brought this effort to ciate very much the gentleman work- legislative power to the executive eliminate this marriage tax penalty on ing hard to eliminate this tax. It is the branch and overturned that initiative the floor, there have been those on the right thing to do. And I hope that by the Congress. That is very similar other side of the aisle who come up Members of Congress will give married to what our Democratic friends are with excuse after excuse of why we couples in America a break and allow doing. should wait, why we should delay, and them to keep another $1,400, $1,500 per Today they are actually giving an why we should eliminate the marriage year to do what they need to do with unelected public servant or bureaucrat tax penalty right now. They are always it, not what their Member of Congress the right to raise taxes. What that for it but let us do it later. in Washington, DC thinks needs to be would entail would be a 442 billion tax Well, today we will have the oppor- done with it. increase. And what could trigger that tunity to make permanent the elimi- Mr. WELLER. Reclaiming my time tax increase on 36 million married nation of the marriage tax penalty. from the distinguished gentleman from working couples is an uncontrollable That is the question. Do we impose a Oklahoma (Mr. WATTS), I think he urge by Congress to spend. There are $42 billion tax increase on 36 million summarized it very well. That is what some in this House who like to spend. married working couples. this vote is all about. They are usually the ones who argue Mr. WATTS of Oklahoma. Mr. Speak- A vote for the Democratic substitute against eliminating the marriage tax er, will the gentleman yield? is a vote for an automatic tax increase penalty. And if they could force a Mr. WELLER. I yield to the gen- that Congress has hands off of. We spending increase without even having tleman from Oklahoma. spend too much. We trigger a tax in- to vote on it under this measure, they Mr. WATTS of Oklahoma. Mr. Speak- crease without having to vote on it is would also cause an automatic tax in- er, I appreciate the gentleman yield- what the Democrats are proposing. crease on 36 million married working ing. That would be a $42 billion tax increase couples. That alone is primary reason Mr. Speaker, I have been listening to on 36 million married working couples. to vote no on the Democrat substitute. this debate for some time. Again, I find Hard-working couples like Jose and

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00024 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.063 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3539 Magdalene Castillo who it would cost The question is on the amendment in NAYS—213 at least $1,125 more in higher taxes if the nature of a substitute offered by Aderholt Goss Peterson (PA) we allow the marriage tax penalty to the gentleman from California (Mr. Akin Graham Petri come back. Armey Granger Pickering MATSUI). Bachus Graves Pitts That is the debate today. Do we The question was taken; and the Baker Green (WI) Platts make permanent our efforts to elimi- Ballenger Greenwood Pombo nate the marriage tax penalty or do we Speaker pro tempore announced that Barcia Grucci Portman raise taxes on the married couples. the noes appeared to have it. Barr Gutknecht Pryce (OH) Bartlett Hansen Putnam What the Democrats are proposing is Mr. MATSUI. Mr. Speaker, I object Barton Hart Radanovich an automatic tax increase on 36 million to the vote on the ground that a Bass Hastings (WA) Ramstad married working couples. So I urge a quorum is not present and make the Bereuter Hayes Regula Biggert Hayworth Rehberg no vote on the Democrat substitute. I point of order that a quorum is not Bilirakis Hefley Reynolds also urge a no vote if the Democrats present. Blunt Hobson Riley offer a motion to recommit, and I ask Boehlert Hoekstra Rogers (KY) for a bipartisan aye vote in favor of The SPEAKER pro tempore. Evi- Boehner Horn Rogers (MI) dently a quorum is not present. Boozman Hostettler Rohrabacher permanently eliminating the marriage Brady (TX) Hulshof Ros-Lehtinen tax penalty on final passage. The Sergeant at Arms will notify ab- Brown (SC) Hunter Roukema Mr. TERRY. Mr. Speaker, I rise in opposi- sent Members. Bryant Hyde Royce tion to the Democrat substitute and in strong Burr Isakson Ryan (WI) The vote was taken by electronic de- Buyer Issa Ryun (KS) support of the underlying bill. vice, and there were—yeas 198, nays Callahan Istook Saxton Last May 26th, I voted with 239 of my col- 213, answered ‘‘present’’ 1, not voting Calvert Jenkins Schaffer leagues to scrap the marriage penalty once Camp Johnson (CT) Schrock and for all. We didn’t vote to phase it out over 22, as follows: Cannon Johnson (IL) Sensenbrenner Cantor Johnson, Sam Sessions 10 years and then bring it back; we voted to [Roll No. 228] Capito Jones (NC) Shadegg get rid of it. Why? Because, above all, our tax Castle Kanjorski Shaw code must be fair. YEAS—198 Chabot Keller Shays Is it fair to tax marriage? Is it fair for me to Abercrombie Hastings (FL) Oberstar Chambliss Kelly Sherwood Ackerman Hill Obey Coble Kennedy (MN) Shimkus tell my communications director that when he Allen Hilliard Olver Collins Kerns Shuster gets married next weekend, aside from paying Andrews Hinchey Ortiz Cooksey King (NY) Simmons for the invitations, caterer, photographer, Baca Hinojosa Pallone Crane Kingston Simpson music, and reception hall, he’s going to have Baird Hoeffel Pascrell Crenshaw Kirk Skeen Baldacci Holden Pastor Cubin Knollenberg Smith (MI) to pay an additional $1400 in taxes if we do Baldwin Holt Payne Culberson Kolbe Smith (NJ) not make this tax cut permanent? What kind Barrett Honda Pelosi Cunningham LaHood Souder of message are we sending to the American Becerra Hooley Phelps Davis, Jo Ann Latham Stearns people when we can afford pork barrel Bentsen Hoyer Pomeroy Davis, Tom LaTourette Stump Berkley Inslee Price (NC) Deal Leach Sullivan projects like tattoo removal programs, but are Berman Israel Rahall DeLay Lewis (CA) Sununu not willing to invest in marriage? Well, how’s Berry Jackson (IL) Rangel DeMint Lewis (KY) Sweeney this for bringing home pork: if we strike down Bishop Jackson-Lee Reyes Diaz-Balart Linder Tancredo Blumenauer (TX) Rivers Doggett LoBiondo Tauzin this substitute and vote for the underlying bill, Bonior Jefferson Rodriguez Doolittle Lucas (OK) Taylor (NC) $81.2 million will return home to the 58,000 Borski John Roemer Dreier Manzullo Terry couples in the Second District of Nebraska. Boswell Johnson, E. B. Ross Duncan McCrery Thomas That way, they can spend their money the Boucher Kennedy (RI) Rothman Dunn McHugh Thornberry Boyd Kildee Roybal-Allard Ehlers McKeon Thune way they want. Brady (PA) Kilpatrick Rush Ehrlich Mica Tiahrt I keep hearing from the other side of the Brown (FL) Kind (WI) Sabo Emerson Miller, Dan Tiberi aisle that tax cuts cost money. Who does it Brown (OH) Kleczka Sanchez English Miller, Gary Toomey cost? It certainly costs 175,000 couples in my Capps Kucinich Sanders Everett Miller, Jeff Upton Capuano LaFalce Sandlin Ferguson Mollohan Vitter state of Nebraska, who every year pay the Cardin Lampson Sawyer Flake Moran (KS) Walden marriage penalty. But it doesn’t cost the Fed- Carson (IN) Langevin Schakowsky Fletcher Morella Walsh eral Government anything, because for some- Carson (OK) Lantos Schiff Foley Murtha Wamp thing to cost you money, you actually have to Clay Larsen (WA) Scott Fossella Myrick Watkins (OK) Clement Larson (CT) Serrano Frelinghuysen Nethercutt Watts (OK) have it first. What the Democrat substitute is Clyburn Lee Sherman Gallegly Ney Weldon (FL) really saying is, ‘‘Without the marriage penalty, Condit Levin Shows Ganske Northup Weldon (PA) tax and spenders in Washington will have less Conyers Lewis (GA) Skelton Gekas Norwood Weller money to spend.’’ Costello Lipinski Slaughter Gibbons Nussle Whitfield Coyne Lofgren Smith (WA) Gilchrest Osborne Wicker If we do not continue to work to make provi- Cramer Lowey Snyder Gillmor Ose Wilson (SC) sions of President Bush’s tax cut permanent— Crowley Lucas (KY) Solis Gilman Otter Wolf like we did last week with the death tax, like Cummings Luther Spratt Goode Oxley Young (AK) we’re doing now with the marriage penalty, Davis (CA) Lynch Stark Goodlatte Paul Young (FL) Davis (FL) Maloney (CT) Stenholm like we’ll do next week with retirement bene- Davis (IL) Maloney (NY) Strickland ANSWERED ‘‘PRESENT’’—1 fits—the American taxpayers will experience DeFazio Markey Stupak Filner DeGette Mascara Tanner the single greatest tax increase in U.S. history: NOT VOTING—22 more than $380 billion from 2011 to 2012. Delahunt Matheson Tauscher DeLauro Matsui Taylor (MS) Blagojevich Forbes Owens How can Democrats possibly justify that? Dicks McCarthy (MO) Thompson (CA) Bonilla Hall (OH) Pence Mr. Speaker, this tax is unfair, unnecessary, Dingell McCarthy (NY) Thompson (MS) Bono Herger Peterson (MN) and irresponsible. It defies American morals, it Dooley McCollum Thurman Burton Hilleary Quinn defies logic, and it flies in the face of family Doyle McDermott Tierney Clayton Houghton Smith (TX) Edwards McGovern Towns Combest Jones (OH) Traficant values. It is everything that is wrong with gov- Engel McIntyre Turner Cox Kaptur ernment. Vote against this substitute and Eshoo McKinney Udall (CO) Deutsch McInnis make a pro-family, pro-marriage, and pro-com- Etheridge McNulty Udall (NM) Evans Meehan Velazquez mon sense vote for the underlying bill. Farr Meek (FL) Visclosky b 1407 Mr. WELLER. Mr. Speaker, I yield Fattah Meeks (NY) Waters back the balance of my time. Ford Menendez Watson (CA) Mrs. JO ANN DAVIS of Virginia The SPEAKER pro tempore (Mr. Frank Millender- Watt (NC) changed her vote from ‘‘yea’’ to ‘‘nay.’’ Frost McDonald Waxman Ms. WATERS changed her vote from LAHOOD). Pursuant to House Resolu- Gephardt Miller, George Weiner tion 440, the previous question is or- Gonzalez Mink Wexler ‘‘nay’’ to ‘‘yea.’’ dered on the bill and on the amend- Gordon Moore Wilson (NM) So the amendment in the nature of a ment in the nature of a substitute of- Green (TX) Moran (VA) Woolsey substitute was rejected. Gutierrez Nadler Wu fered by the gentleman from California Hall (TX) Napolitano Wynn The result of the vote was announced (Mr. MATSUI). Harman Neal as above recorded.

VerDate 11-MAY-2000 02:12 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00025 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.065 pfrm04 PsN: H13PT1 H3540 CONGRESSIONAL RECORD — HOUSE June 13, 2002 The SPEAKER pro tempore (Mr. Moore Rogers (KY) Sweeney A motion to reconsider was laid on Moran (KS) Rogers (MI) Tancredo LAHOOD). The question is on engross- Moran (VA) Rohrabacher Tauzin the table. ment and third reading of the bill. Morella Ros-Lehtinen Taylor (NC) f The bill was ordered to be engrossed Myrick Ross Terry PERSONAL EXPLANATION and read a third time, and was read the Nethercutt Roukema Thomas Ney Royce Thornberry third time. Northup Ryan (WI) Thune Mr. BURTON of Indiana. Mr. Speaker, due PARLIAMENTARY INQUIRY Norwood Ryun (KS) Tiahrt to a commitment to participate as a delegate Mr. THOMAS. Mr. Speaker, par- Nussle Sandlin Tiberi at the Indiana Republican State Convention, I Osborne Saxton Toomey was unable to be in Washington, DC during liamentary inquiry. Ose Schaffer Towns The SPEAKER pro tempore. The gen- Otter Schrock Udall (CO) rollcall votes 226–229. Had I been here I Oxley Sensenbrenner Upton tleman from California (Mr. THOMAS) is would have voted ‘‘yea’’ on rollcall votes 226 Paul Sessions Vitter and 227, ‘‘no’’ on rollcall vote 228 and ‘‘yea’’ recognized. Peterson (PA) Shadegg Walden Mr. THOMAS. Mr. Speaker, under Petri Shaw Walsh on rollcall vote 229. the rules of the House, does the minor- Phelps Shays Wamp f Pickering Sherwood Watkins (OK) ity have the right to offer a motion to Pitts Shimkus Watts (OK) PERSONAL EXPLANATION recommit? Platts Shows Weldon (FL) Mr. DEUTSCH. Mr. Speaker, I was unavoid- The SPEAKER pro tempore. Yes, Pombo Shuster Weldon (PA) ably absent from the chamber today during prior to the final passage of the bill. Pomeroy Simmons Weller Portman Simpson Whitfield rollcall vote No. 226, No. 227, No. 228 and The question is on the passage of the Pryce (OH) Skeen Wicker No. 229. Had I been present, I would have bill. Putnam Skelton Wilson (NM) voted ‘‘yea’’ on rollcall vote No. 226, ‘‘yea’’ on The question was taken; and the Radanovich Smith (MI) Wilson (SC) Ramstad Smith (NJ) Wolf rollcall vote No. 227, ‘‘yea’’ on rollcall vote No. Speaker pro tempore announced that Regula Snyder Wu 228 and ‘‘yea’’ on rollcall vote No. 229. the ayes appeared to have it. Rehberg Souder Wynn Reyes Stearns Young (AK) f RECORDED VOTE Reynolds Stump Young (FL) Mr. MATSUI: Mr. Speaker, I demand Riley Sullivan GENERAL LEAVE a recorded vote. Roemer Sununu Mr. THOMAS. Mr. Speaker, I ask A recorded vote was ordered. NOES—142 unanimous consent that all Members The vote was taken by electronic de- Ackerman Honda Pallone may have 5 legislative days within vice, and there were—ayes 271, noes 142, Allen Hoyer Pascrell which to revise and extend their re- not voting 21, as follows: Andrews Inslee Pastor marks and include extraneous material Baldacci Jackson (IL) Payne [Roll No. 229] Baldwin Jackson-Lee Pelosi on the bill just passed. AYES—271 Becerra (TX) Price (NC) The SPEAKER pro tempore (Mr. Bentsen Johnson, E. B. Rahall Abercrombie Davis (CA) LAHOOD). Is there objection to the re- Hoekstra Berman Kanjorski Rangel Aderholt Davis (FL) quest of the gentleman from Cali- Holden Berry Kaptur Rivers Akin Davis, Jo Ann Holt Blumenauer Kennedy (RI) Rodriguez fornia? Armey Davis, Tom Hooley Borski Kildee Rothman There was no objection. Baca Deal Horn Boyd Kilpatrick Roybal-Allard Bachus DeFazio f Hostettler Brady (PA) Kind (WI) Rush Baird DeLay Hulshof Brown (FL) Kleczka Sabo Baker DeMint LEGISLATIVE PROGRAM Hunter Brown (OH) Kucinich Sanchez Ballenger Diaz-Balart Hyde Capuano LaFalce Sanders (Ms. PELOSI asked and was given Barcia Doolittle Isakson Cardin Lampson Sawyer Barr Dreier permission to address the House for 1 Israel Carson (IN) Langevin Schakowsky Barrett Duncan Issa Clay Lantos Schiff minute.) Bartlett Dunn Istook Clyburn Larsen (WA) Scott Ms. PELOSI. Mr. Speaker, I yield to Barton Edwards Jefferson Conyers Larson (CT) Serrano Bass Ehlers the distinguished gentleman from Jenkins Coyne Lee Sherman Bereuter Ehrlich Texas for the purpose of inquiring John Crowley Levin Slaughter Berkley Emerson Johnson (CT) Cummings Lewis (GA) Smith (WA) about the schedule for next week. Biggert Engel Johnson (IL) Davis (IL) Lofgren Solis Mr. ARMEY. Mr. Speaker, I am Bilirakis Etheridge Johnson, Sam DeGette Lynch Spratt Bishop Everett pleased to announce that the House has Jones (NC) Delahunt Maloney (NY) Stark Blunt Ferguson Keller DeLauro Markey Stenholm completed its legislative business for Boehlert Flake Kelly Dicks Matsui Strickland the week. Boehner Fletcher Kennedy (MN) Dingell McCollum Stupak Bonilla Foley The House will next meet for legisla- Kerns Doggett McDermott Tanner Bonior Ford tive business on Monday, June 17, at King (NY) Dooley McGovern Tauscher Boozman Fossella Kingston Doyle McNulty Taylor (MS) 12:30 p.m. for morning hour and 2 p.m. Boswell Frelinghuysen Kirk Eshoo Meehan Thompson (CA) for legislative business. I will schedule Boucher Gallegly Knollenberg Evans Meek (FL) Thompson (MS) Brady (TX) Ganske a number of measures under suspension Kolbe Farr Menendez Thurman Brown (SC) Gekas LaHood Fattah Millender- Tierney of the rules, a list of which will be dis- Bryant Gibbons Latham Filner McDonald Turner tributed to Members’ offices tomorrow. Burr Gilchrest LaTourette Frank Miller, George Udall (NM) Buyer Gillmor Recorded votes on Monday will be post- Leach Frost Mollohan Velazquez Callahan Gilman poned until 6:30 p.m. Lewis (CA) Gephardt Murtha Visclosky Calvert Goode Lewis (KY) Gonzalez Nadler Waters On Tuesday and the balance of the Camp Goodlatte Linder Green (TX) Napolitano Watson (CA) week, I have scheduled the following Cannon Gordon Lipinski Gutierrez Neal Watt (NC) Cantor Goss measures for consideration in the LoBiondo Hastings (FL) Oberstar Waxman Capito Graham Lucas (KY) Hill Obey Weiner House: Capps Granger Lucas (OK) Hinchey Olver Wexler H.R. 327, the Small Business Paper- Carson (OK) Graves Luther Hoeffel Ortiz Woolsey Castle Green (WI) Maloney (CT) work Relief Act; Chabot Greenwood Manzullo NOT VOTING—21 H.R. 2114, the National Monument Chambliss Grucci Mascara Blagojevich Forbes McInnis Fairness Act of 2002; Clement Gutknecht Matheson Bono Hall (OH) Owens H.R. 3389, the National Sea Grant Coble Hall (TX) McCarthy (NY) Burton Hilleary Pence Collins Hansen McCrery College Program Act Amendments of Clayton Houghton Peterson (MN) Condit Harman McHugh 2002; Combest Jones (OH) Quinn Cooksey Hart McIntyre Deutsch Lowey Smith (TX) H.R. 1979, the Airport Safety, Secu- Costello Hastings (WA) McKeon English McCarthy (MO) Traficant Cox Hayes McKinney rity and Air Service Improvement Act; Cramer Hayworth Meeks (NY) and Crane Hefley Mica b 1425 The Retirement Savings Security Crenshaw Herger Miller, Dan So the bill was passed. Act of 2002. Cubin Hilliard Miller, Gary Culberson Hinojosa Miller, Jeff The result of the vote was announced Mr. Speaker, the Speaker also ad- Cunningham Hobson Mink as above recorded. vises me that he expects to be ready to

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00026 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.068 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3541 name conferees for an omnibus trade b 1430 that are hostile to the United States’ bill, which I would expect to schedule interests, such as North Korea, Iran ADJOURNMENT TO MONDAY, JUNE next week as well; and the Speaker fur- and Iraq. 17, 2002 ther advises me that, in consultation This resolution simply says that the with the minority leader, he expects to Mr. ARMEY. Mr. Speaker, I ask Congress supports the decision by the bring a resolution to the floor related unanimous consent that when the President to withdraw the United to the establishment of a select com- House adjourns today, it adjourn to States from the ABM Treaty in accord- mittee on homeland security. meet at 12:30 p.m. on Monday next for ance with article 15 of the treaty. It I thank the gentlewoman for yield- morning hour debates. also states that Congress supports ef- ing. The SPEAKER pro tempore (Mr. forts to provide for the establishment LAHOOD). Is there objection to the re- of a robust layered missile defense sys- Ms. PELOSI. I thank the distin- quest of the gentleman from Texas? tem to protect the United States and guished majority leader. I have some There was no objection. its allies. further questions. f Very frankly, the United States faces On what days will the following be new and complex threats. September scheduled: the appointment of the fast HOUR OF MEETING ON TUESDAY, 11, 2001, showed the new threats to our track conferees? trade promotion au- JUNE 18, 2002 national security and the potential thority conferees? Mr. ARMEY. Mr. Speaker, I ask threats we face by more than 32 coun- Mr. ARMEY. I expect that would unanimous consent that when the tries that are working on ballistic mis- probably happen on Tuesday. House adjourns on Monday, June 17, sile development. The new threats in- Ms. PELOSI. And then the Monu- 2002, it adjourn to meet at 10:30 a.m. on volve states with considerably fewer ment Fairness Act, Mr. Leader? Tuesday, June 18, 2002, for morning missiles with less accuracy, yield, reli- Mr. ARMEY. Wednesday. hour debates. ability and range. However, emerging The SPEAKER pro tempore. Is there ballistic missile systems can poten- Ms. PELOSI. And airport towers leg- objection to the request of the gen- tially kill tens of thousands, or even islation? tleman from Texas? millions, of Americans, depending on Mr. ARMEY. That would be Wednes- There was no objection. the warhead and intended target. day as well. I believe we cannot allow these coun- f Ms. PELOSI. And pension reform? tries to use ballistic missiles as instru- Mr. ARMEY. That would be Thurs- DISPENSING WITH CALENDAR ments of blackmail against the United day. WEDNESDAY BUSINESS ON States and its allies. The way we can WEDNESDAY NEXT and must defend our homeland is Ms. PELOSI. Mr. Leader, are there Mr. ARMEY. Mr. Speaker, I ask through the development of a layered definitely going to be votes next Fri- missile defense system, a layered sys- day? unanimous consent that the business in order under the Calendar Wednesday tem that would violate the terms of Mr. ARMEY. I appreciate the gentle- rule be dispensed with on Wednesday the ABM Treaty. woman’s inquiry. As the week is shap- next. Clearly, the day has come to with- ing up, the kind of work we see coming The SPEAKER pro tempore. Is there draw from this dated and ineffective available to us, I think we should have objection to the request of the gen- document that was created more than to expect to be here for votes on Friday tleman from Texas? 30 years ago during a different time of next week. There was no objection. and under different conditions than Ms. PELOSI. I appreciate that. I do those that face our national security have one other question. I unfortu- f today. nately do not see on the schedule a HAPPY FATHER’S DAY I would also like to submit the fol- date for the prescription drug legisla- lowing sponsors: The gentleman from Mr. ARMEY. Mr. Speaker, I ask tion to be scheduled. I have been hear- California (Mr. HUNTER), the gen- unanimous consent that it be the unan- ing over and over that it is coming up tleman from Florida (Mr. JEFF MIL- imous will of this body that every fa- soon, it is coming up soon. As you LER), the gentleman from Indiana (Mr. ther in America have a glorious Fa- know, Mr. Leader, the need is great. HOSTETTLER), the gentleman from Ala- ther’s Day. We have been hearing that the major- bama (Mr. ADERHOLT), the gentleman The SPEAKER pro tempore. The ity is going to schedule this legislation from North Carolina (Mr. JONES), the Chair thanks the majority leader. for months. We need a real Medicare gentleman from Pennsylvania (Mr. benefit that protects our seniors from f WELDON), the gentleman from North the huge cost of prescription drugs. EXPRESSING SUPPORT FOR U.S. Carolina (Mr. HAYES), the gentleman from Every day is important to them. I WITHDRAWAL FROM ANTI-BAL- Illinois (Mr. HYDE), and the gentleman from would like to ask the majority leader LISTIC MISSILE TREATY Oklahoma (Mr. WATTS). what the plan is for bringing a pre- f (Mr. YOUNG of Alaska asked and was scription drug benefit under Medicare ANNOUNCEMENT BY COMMITTEE to the floor. given permission to address the House for 1 minute and to revise and extend ON RULES REGARDING AMEND- Mr. ARMEY. Again I want to thank his remarks and include therein extra- MENTS TO H.R. 2114, NATIONAL the gentlewoman for her inquiry. neous material.) MONUMENT FAIRNESS ACT The gentlewoman from California, Mr. YOUNG of Alaska. Mr. Speaker, Mr. DREIER. Mr. Speaker, today a Mr. Speaker, is exactly right. This is today I rise to introduce a resolution Dear Colleague was sent to all Mem- indeed very important to so many citi- that would express support for Presi- bers informing them that the Com- zens in America, and we have two com- dent George W. Bush’s withdrawal of mittee on Rules is planning to meet mittees that are working on it and the United States from the 1972 Anti- the week of June 17 to grant a rule working with one another, the Com- ballistic Missile Treaty. Today marks which may limit the amendment proc- mittee on Ways and Means and the the conclusion of the 6-month notifica- ess on H.R. 2114, the National Monu- Committee on Energy and Commerce. I tion of the withdrawal from the ABM ment Fairness Act. The bill was or- am told that the Committee on Energy Treaty by the United States. dered reported by the Committee on and Commerce has already scheduled a My legislation reaffirms that the Resources on March 20 and the com- markup for next week and have every United States’ national security has mittee report was filed on April 15. reason to expect the bill to be on the fundamentally changed since 1972. Not Any Member wishing to offer an floor before we retire to our districts only do the Russians and Chinese have amendment should submit 55 copies of for the July 4th work period. ballistic missile arsenals that are capa- the amendment and one copy of a brief Ms. PELOSI. Mr. Speaker, I appre- ble of reaching the United States, but explanation of the amendment to the ciate the gentleman’s information. so do a growing number of countries Committee on Rules in room H–312 in

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00027 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.072 pfrm04 PsN: H13PT1 H3542 CONGRESSIONAL RECORD — HOUSE June 13, 2002 the Capitol no later than 12 noon this ensure that the Federal Government, MEDAL OF HONOR FOR SERGEANT coming Tuesday, June 18. Amendments working in concert with State and GARY MCKIDDY should be drafted to the text of H.R. local governments, is in a position to The SPEAKER pro tempore. Under a 2114 as ordered reported by the Com- secure our homeland. For the first previous order of the House, the gen- mittee on Resources. time, we have seen men and women in tleman from Michigan (Mr. BONIOR) is Members should use the Office of uniform now fighting international recognized for 5 minutes. Legislative Counsel to ensure that conflicts, not simply as men and Mr. BONIOR. Mr. Speaker, as our Na- their amendments are properly drafted women wearing military uniforms. We tion fights a war overseas, we once and should check with the Office of the have seen firefighters and law enforce- again see firsthand how the loss of a Parliamentarian to be certain that ment officers on the front line in this loved one to war affects family mem- their amendments comply with the struggle. bers and friends and those who are left rules of the House. The President’s proposal for home- behind. f land security and establishing a new Over 30 years ago, too many families Department is a right one; and I hope went through the experience of losing a CELEBRATING THE 227TH very much that we are going to do the loved one to the Vietnam War. One BIRTHDAY OF THE U.S. ARMY right thing, be careful about it, but do such family was that of Gary McKiddy. (Mr. WILSON of South Carolina it just as expeditiously as possible. Sergeant McKiddy was a helicopter asked and was given permission to ad- f crew chief and gunner with the 1st Cav- dress the House for 1 minute and to re- alry Division of the Army during the COMMUNICATION FROM DISTRICT vise and extend his remarks.) Vietnam War. He volunteered for the DIRECTOR OF HON. ROGER F. Mr. WILSON of South Carolina. Mr. Army when he was just 19 years of age WICKER, MEMBER OF CONGRESS Speaker, tomorrow will mark the 227th and specifically requested that he join birthday of the United States Army, The SPEAKER pro tempore (Mr. his country’s soldiers in Vietnam. the most powerful ground force the KELLER) laid before the House the fol- Gary quickly earned the deepest re- world has ever known. Since June 14, lowing communication from Harold spect of his fellow crewmen for the pa- 1775, the Army has always been pre- ‘‘Bubba’’ Lollar, District Director of triotism that he showed as he went pared for defense of freedom and de- the Honorable ROGER F. WICKER, Mem- into battle and the courage with which mocracy. Today, our brave soldiers are ber of Congress: he fought. Gary won his first medal on on the front lines defending the Amer- CONGRESS OF THE UNITED STATES, his first mission, and he continued to ican people in the war on terrorism. HOUSE OF REPRESENTATIVES, serve in this courageous and honorable As we recognize and celebrate the Washington, DC, June 11, 2002. way until his death. Gary McKiddy had Army’s birthday and reflect on this Hon. J. DENNIS HASTERT, a reputation among his fellow men for Speaker, House of Representatives, Washington, great institution, a simple truth arises: rising to any challenge and putting one of the world’s greatest professions DC. DEAR MR. SPEAKER: This is to formally no- loyalty and honor at the heart of his is the Profession of Arms, and one of tify you pursuant to Rule VIII of the Rules service. One man who served alongside the greatest callings is theirs, serving of the House that I have been served with a Gary once called him a credit to his our Nation. Thanks to American sol- subpoena for testimony issued by the Lee country and one of the finest men he diers, freedom’s light shines as a bea- County Youth Court, Tupelo, Mississippi. had ever met and served with in the con throughout the world. After consultation with the Office of Gen- Army. Just yesterday, we were reminded of eral Counsel, I have determined that compli- Prior to his death he was awarded the the dangers these men and women have ance with the subpoena is consistent with the privileges and precedents of the House. Air Medal, the Army Commendation volunteered to accept, as we learned of With best wishes, I am Medal with Oak Leaf Cluster for her- three American military that died in a Sincerely, oism, the National Defense Service plane crash. These are not only soldiers HAROLD ‘‘BUBBA’’ LOLLAR, Medal, the Vietnam Service Medal, the fighting on some distant soil, they are District Director. Aircraft Crewman Badge, and the sons and daughters, sisters and broth- f Marksman Badge for his many heroic ers, mothers and fathers. The courage COMMUNICATION FROM CHIEF OF actions. and dedication of those who serve so Yet his most courageous act came in STAFF OF HON. GARY A. CONDIT, honorably in the United States Army, Cambodia on May 6, 1970, when his heli- MEMBER OF CONGRESS Active, Guard and Reserve, is an inspi- copter came under intense enemy fire, ration to us all. The SPEAKER pro tempore laid be- receiving several damaging hits that fore the House the following commu- f ultimately caused the helicopter to nication from Mike Lynch, Chief of crash. Gary McKiddy was thrown from SECURING OUR HOMELAND Staff of the Honorable GARY A. CONDIT, the aircraft, but he immediately re- (Mr. DREIER asked and was given Member of Congress: turned to rescue a co-pilot, Specialist permission to address the House for 1 GARY A. CONDIT, Four James R. Skaggs, taking him to minute and to revise and extend his re- CONGRESS OF THE UNITED STATES, safety and saving his life. marks.) House of Representatives, June 11, 2002. Despite intense heat and flames and Mr. DREIER. Mr. Speaker, as my col- Hon. J. DENNIS HASTERT, tremendous risk to his life, Gary then league from South Carolina has just Speaker, House of Representatives, Washington, returned to the helicopter a second DC. chosen to recognize the 227th anniver- DEAR MR. SPEAKER: This is to formally no- time and attempted to save the pilot. sary of the United States Army, I tify you pursuant to Rule VIII of the Rules Tragically, the helicopter’s fuel tank think it is important for us to note of the House that I have been served with a then exploded and both the pilot and that President Bush has come forward subpoena for testimony issued by the U.S. Gary were killed. Sergeant Gary with a very important proposal. District Court for the District of Columbia. McKiddy was posthumously awarded We saw, as the gentleman from South I have determined that compliance with the Silver Star, the Bronze Star Medal, the subpoena is consistent with the privi- Carolina (Mr. WILSON) mentioned, the the Air Medal, the Purple Heart, and leges and precedents of the House. tragic loss of life in this war on ter- Sincerely, the Good Conduct Medal for his actions rorism that has just taken place, and MIKE LYNCH, that fateful day. There is no doubt that we continue to see this struggle move Chief of Staff. his bravery and self-sacrifice earned forward. Just yesterday the President f him this recognition; yet he was denied made it very clear in his statement, we the Medal of Honor. are in the midst of a war on terrorism, SPECIAL ORDERS I feel very strongly, Mr. Speaker, and that war has been brought to our The SPEAKER pro tempore. Under that Sergeant McKiddy should receive homeland. the Speaker’s announced policy of Jan- the Medal of Honor for all his heroic The President has, I believe, come uary 3, 2001, and under a previous order actions and particularly for his selfless forward with an extraordinarily bold of the House, the following Members rescue of Specialist Skaggs and his proposal. That proposal is designed to will be recognized for 5 minutes each. courageous attempt to rescue his pilot.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00028 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.075 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3543 I have no doubt that his actions qualify ton’s Disease affects as many people as control the symptoms, yet there is no him for this award. After all, if saving hemophilia, cystic fibrosis and mus- treatment to stop or reverse the course someone’s life does not earn one the cular dystrophy. of the disease; whereas Congress as an Medal of Honor, then what does? Ser- Early symptoms of Huntington’s Dis- institution and Members of Congress as geant McKiddy made the ultimate sac- ease may affect cognitive ability or individuals are in unique positions to rifice to fight for his country and pro- mobility and include depression, mood help raise public awareness about the tect his fellow man. His distinguished swings, forgetfulness, clumsiness, in- need for increased funding for research, service deserves the highest honor. I voluntary twitching, and lack of co- detection, and treatment of Hunting- know Sergeant McKiddy’s family, and I ordination. As the disease progresses, ton’s Disease and to support the fight know how much this honor would mean concentration and short-term memory against this disease: to them. After more than 30 years, they diminish and involuntary movements ‘‘Now, therefore, be it resolved by the are as committed as ever to receiving of the head, trunk and limbs increase. House of Representatives (the Senate the appropriate recognition of Gary’s Walking, speaking, and swallowing concurring), that it is the sense of the service. I too am committed to doing abilities deteriorate. Eventually the Congress that subsection 1, all Ameri- all that I can to ensure that Sergeant person is unable to care for himself or cans should take an active role in the McKiddy receives the Medal of Honor. herself. Death follows from complica- fight against Huntington’s Disease by As a Vietnam-era veteran and the son tions such as choking, infection, or any means available to them, including of a World War II veteran, I know in heart failure. being aware of their own family his- my heart the honor in answering a na- Huntington’s Disease typically be- tory, being aware of the issues in ge- tion’s call to serve and the value of gins in mid-life between the ages of 30 netic testing, and advocating for fami- this service. and 45, though onset may occur as lies with Huntington’s Disease in their I have heard from Gary’s relatives, early as the age of 2. Children who de- communities and their States; his close friends, and the man he saved, velop the juvenile form of the disease ‘‘Section 2, the role played by na- Specialist Skaggs. They too know in rarely live to adulthood. Huntington’s tional community organizations and their hearts the ultimate gift that Disease affects men and women equally health care providers in promoting Gary and our other lost soldiers gave and crosses all ethnic and racial bound- awareness should be recognized and ap- to us. I believe the Army should re- aries. Everyone who carries the gene plauded; verse its decision and award Sergeant will develop the disease. In 1993, the ‘‘And section 3, the Federal Govern- Gary McKiddy the Medal of Honor that Huntington’s Disease gene was isolated ment has a responsibility to, A, en- he deserves, and I pledge to Gary’s fam- and a direct genetic test developed deavor to raise awareness about the de- ily and friends that I will continue to which can accurately determine wheth- tection and treatment of Huntington’s fight alongside them to see that Gary er a person carries the Huntington’s Disease; and B, increase funding for re- receives this honor. The Congressman Disease gene. search so that a cure might be found.’’ from Dayton, Ohio (Mr. HALL), has I would like to commend Dr. Ruth Mr. Speaker, as May marked Hun- been very active in this effort for Abramson of Columbia, South Carolina tington’s Disease Awareness Month, we many, many years, and we pledge to- for her leadership and dedication for must do everything possible to ensure gether to work to make this happen. conducting ongoing research to find a we search out hope for thousands of May we all keep in our prayers those cure for Huntington’s Disease at both Americans by finding a cure for this men and women who are serving our the University of South Carolina disease. Nation overseas today. Like Gary, they School of Medicine and the South f show us through their courage and Carolina Department of Mental Health. The SPEAKER pro tempore (Mr. strength what it means to be an Amer- I also want to commend my chief of KELLER). Under a previous order of the ican. staff, Eric Dell, and his courageous House, the gentleman from California f mother, Ouida Dell, for their efforts in (Mr. FILNER) is recognized for 5 min- fighting Huntington’s Disease within HUNTINGTON’S DISEASE utes. their family. The SPEAKER pro tempore. Under a I encourage the American people to (Mr. FILNER addressed the House. previous order of the House, the gen- be aware of their own family histories, His remarks will appear hereafter in the Extensions of Remarks.) tleman from South Carolina (Mr. WIL- to be aware of the issues in genetic SON) is recognized for 5 minutes. testing, and to advocate for families f Mr. WILSON of South Carolina. Mr. with Huntington’s Disease in their The SPEAKER pro tempore. Under a Speaker, I rise today to draw attention communities. I also call on my col- previous order of the House, the gen- to Huntington’s Disease which affects leagues in the House to join in this ef- tleman from New Jersey (Mr. PALLONE) approximately 30,000 people in the fort to find a cure for those suffering is recognized for 5 minutes. United States. Each child of a parent from this disease. (Mr. PALLONE addressed the House. with Huntington’s Disease has a 50 per- To that extent, I would like to read His remarks will appear hereafter in cent risk of inheriting the illness, this concurrent resolution about Hun- the Extensions of Remarks.) tington’s Disease which I have intro- meaning that there are 200,000 individ- f uals who are at risk today. Hunting- duced in the House of Representatives. The SPEAKER pro tempore. Under a ton’s Disease results from a genetically ‘‘Concurrent resolution. Whereas previous order of the House, the gentle- programmed degeneration of nerve about 30,000 people in the United States woman from Indiana (Ms. CARSON) is cells in certain parts of the brain. suffer from Huntington’s Disease; recognized for 5 minutes. whereas each child of a parent with (Ms. CARSON of Indiana addressed b 1445 Huntington’s Disease has a 50 percent the House. Her remarks will appear While medication is available to help risk of inheriting the illness; around hereafter in the Extensions of Re- control the symptoms of Huntington’s 200,000 individuals are at risk; whereas marks.) Disease, sadly, there is no treatment to Huntington’s Disease results from a ge- stop or reverse the course of the dis- netically programmed degeneration of f ease. nerve cells in certain parts of the The SPEAKER pro tempore. Under a According to the Huntington’s Dis- brain; whereas this degeneration previous order of the House, the gentle- ease Society of America, this disease is causes uncontrolled movements, loss of woman from the District of Columbia named for Dr. George Huntington who intellectual faculties, and emotional (Ms. NORTON) is recognized for 5 min- first described this hereditary disorder disturbances; whereas presymptomatic utes. in 1872. Huntington’s Disease is now testing is available for those with a (Ms. NORTON addressed the House. recognized as one of the more common family history of Huntington’s Disease, Her remarks will appear hereafter in genetic disorders in America. Hunting- and medication is available to help the Extensions of Remarks.)

VerDate 11-MAY-2000 01:59 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00029 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.078 pfrm04 PsN: H13PT1 H3544 CONGRESSIONAL RECORD — HOUSE June 13, 2002 GEPHARDT SPEECH TO WOODROW effectively by putting at risk the as- ues of democracy and freedom, the rule of WILSON INTERNATIONAL CEN- sistance and cooperation of other na- law and tolerance—can succeed in a struggle TER FOR SCHOLARS AND THE tions, including some of our closest al- against the ideology of fanaticism and extre- COUNCIL ON FOREIGN RELA- lies. America must remain engaged and mism, an ideology that holds us to be the political, economic, and cultural enemy and TIONS DESERVES CAREFUL America must lead. states its desire to destroy America. STUDY BY HOUSE MEMBERS Leader GEPHARDT’s ideas deserve the While we now have terrorist organizations The SPEAKER pro tempore. Under a thoughtful consideration of all of us as on the run, we must acknowledge that in previous order of the House, the gen- we grapple with America’s course in some ways they are succeeding in creating division. Enemies of America still flourish, tleman from California (Mr. LANTOS) is foreign policy. I am proud to enter a sowing seeds of hatred for this country and recognized for 5 minutes. copy of the gentleman from Missouri (Mr. GEPHARDT)’s speech into the reaping violence. Some terrorist groups are Mr. LANTOS. Mr. Speaker, today I small in number, limited in visibility and RECORD, and I urge all of my colleagues rise to bring to the attention of my short on supplies. Others find harbor in colleagues a speech made last week by to give it the thorough reading and failed states or enjoy support from sympa- the gentleman from Missouri (Mr. GEP- study it deserves. thetic regimes, utilizing sophisticated tech- HARDT), the House of Representatives BUILDING A NEW LONG-TERM STRATEGY FOR nology to hatch their murderous plots. This Democratic leader. He offered ideas for AMERICAN LEADERSHIP AND SECURITY is a tough, complicated foe, one that should constructing a strong, bipartisan, long- Today, we are gathering almost nine not be oversimplified or underestimated. term approach to the war on terrorism months after enemies of America killed Over the past half-century, America’s bi- more than 3,000 of our fellow citizens. partisan policy of containment served to in a speech to the Woodrow Wilson hem in and deter a singular, comparable ad- International Center for Scholars and It has been eight months since America sent troops into battle in Afghanistan and versary. Today, with smaller, less discernible to the Council on Foreign Relations. five months since dialogue in the Middle enemies, we need a strategy that seeks not As we have come to know and expect, East broke down and that region sank into to wall off threatening parts of the world, our distinguished leader offered out- destructive waves of suicide bombings. but to engage potentially hostile regions. standing insights and thoughtful pro- Today, events continue to move swiftly, We need to be prepared to deliver the most posals for dealing with the urgent with momentous consequences for our nation forceful military responses to provocation, issues of our Nation’s foreign policy. and for the people of the world. but also to expand opportunities for peace and prosperity. With deference to George Leader GEPHARDT outlined proposals I believe now is the appropriate time to re- Kennan, the seminal work he did at the to build consensus for military trans- flect on how we have gotten here, but much more importantly, where we must go. Council on Foreign Relations, and the insti- formation so we can win the war on Too often, issues of national security are tute here that bears his name, I believe such terrorism. He offered a 21st Century considered separately—they are seen as frag- a policy could be called one of commitment. foreign policy to promote prosperity, mented, distinct disputes, such as: Must we With determination as our guide, we must democracy and universal education for prepare for two major simultaneous wars? move forward with a unified approach: stability and opportunity in the devel- What should be our diplomatic approach to A commitment to constantly updating the oping world. He proposed greater cit- the Middle East? Or will Americans back most effective military ever; A commitment to being engaged dip- izen involvement in all aspects of our peacekeeping in some foreign land? But it is also evident, when we take a step lomatically all over the world; public diplomacy. Leader GEPHARDT back, that these issues are profoundly inter- A commitment to making our homeland urged the administration to do more to winded, and that we must approach them secure and involving our citizens and our strengthen international alliances that from the single perspective of ensuring leaders in the issues of the world. will help fight terrorism, and he called America’s security. President Bush was right Saturday to say for the much faster development of a The world in which we live is very different we are fighting a new war and will have to be tough new homeland defense strategy. from the Cold War era, when a bipartisan ready to strike when necessary, not just deter. But on the home front, we are moving Mr. Speaker, Leader GEPHARDT wise- group of ‘‘wise men’’ shaped our thinking. I do not need to talk very much about the too slowly to develop a homeland defense ly stated in his speech that the goal of plan that is tough enough for this new war. America’s foreign policy in the 21st trends that have remade our times—we live with them every day. Let us be clear about the stakes in this century should be ‘‘to promote the uni- Globalization has made events in faraway struggle. As in all wars, the question is not versal values of freedom, fairness and places more relevant to use that ever before. just who shall govern, but also one of life opportunity, which has never been Information technology and the latest sci- itself. More than 3,000 people died on Sept. more in America’s self-interest. We entific revolution have changed the way we 11th. And American lives remain at risk so should seek to lead a community of na- live and produced astonishing gains in prolong as we are in this conflict. tions that are law-abiding, prosperous ductivity and knowledge. MODERNIZATION OF THE MILITARY And, of course, the crumbling of the Soviet Of course, no one makes a greater sac- and democratic. Such a world would empire has fundamentally changed the stra- leave fewer places for terrorists to hide rifice, or a more important contribution to tegic face of the globe. our security, than our nation’s military. The and more places for citizens across the With the advent of each of these trends, first challenge of a new policy is to strength- globe to pursue life, liberty, and happi- the world has become closer, moved faster, en our Armed Forces for the future. ness.’’ and grown more interconnected. We know our military must go through a The three qualities of this foreign Great wars have been followed by uneasy transformation—and we need our legislative policy, as Leader GEPHARDT points out, peace as America has struggled to create branch to be working on this transformation should be economic development, de- international arrangements to preserve har- along with the executive and uniformed serv- mony. After each war, America has debated mocracy, and universal education. ices. how engaged it should be in world affairs; Each of the branches is already reaching These qualities are not only intimately and when the peace has been broken, Amer- for the goal of modernization. In the future, interconnected and self-reinforcing, ica has chosen to engage the world ever more our Army will be lighter and faster; our but they are critical to the achieve- closely. Navy will deploy smaller, stealthier ships; ment of long-term American security I urge this Administration to build on this the Marines will move faster and with more and prosperity and, more importantly, tradition of engagement, not turn away from firepower; and the Air Force will revolu- they are pragmatic, achievable, and it. Now is the time to take the long view of tionize its planes and weapons systems. cost-effective. this challenge. We are often too focused on The results will be positive. As Bill Owens, Mr. Speaker, I wish to point out an issues at the margins of the status quo. This the former Vice Chairman of the Joint is not going to be a short struggle or an easy additional observation that Leader Chiefs, has suggested, electronics and com- one. In addition to all we are doing now, we puters should dramatically improve our GEPHARDT made in his speech. He could will need to do more. We will need to make forces without huge cost increases. not have been more correct when he our military stronger, our homeland safer, But to set goals and achieve them are two said that ‘‘America must lead’’ and and build alliances abroad to serve American different things. While some experts foresee that ‘‘leadership is not a synonym for interests. transformations that could take up to 30 unilateralism.’’ The recent U.S. foreign We are engaged in a global conflict. We years, much of what we must accomplish has policy moves towards international face a competition between governance and to happen in 15 or less. So we need to focus terror, between the great majority who ben- our energies and our resources. agreements, multilateral institutions, efit from order, and the small few who thrive My suggestions for military reform come and transnational issues such as the on chaos. with two qualifiers. environment pose a threat to our abil- The question today is whether a collection First, I am deeply committed to not politi- ity to prosecute the war on terrorism of nation states—committed to human val- cizing our military and strategic decision-

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00030 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.084 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3545 making. We achieve nothing if a good idea I suggest we create and expand military also know that the buying process takes too for our Department of Defense becomes a Re- academies that would train field officers long. I was struck to read that development publican or Democratic idea and gets bogged from all the services in new forms of strate- of the Crusader artillery system has already down in politics. gies and tactics. Such schools could teach taken over ten years, while Boeing developed Good ideas are too crucial to our nation to joint operations more comprehensively— the 777 in just five. let them founder on partisanship. We need to intermingling air, land, seas and space for These delays cost money and results in change the way we think—not just update the battles ahead. time lost on the battlefield. Congress has our weapons systems—and we need to look It would be a useful step in breaking down been guilty of its own share of microman- for good ideas everywhere. barriers between the services, and in cre- aging and politics. I hope that we can work Second, I hope that the suggestions I make ating integrated tactical units. together better in this era where a weapon today form the basis for further discussions. If President Bush is interested, I think this may be ‘‘smart’’ for only so long, and pro- A comprehensive plan will come from the is one area where we could easily work to- longed congressional fights—and procure- contributions of many. While I have a broad gether and make quick progress. And I would ment delays—may mean technology is stale view of the direction I hope we will take, the be willing to go much further and support by the time it is fully deployed. complete picture can only be sketched out programs to recruit and retain even more of Throughout the military and Congress, here. the best students to prepare our military for there will be opportunities to work together I believe we can strengthen our military the tasks ahead. to make sure transformation happens quick- through bipartisan efforts in three key The second challenge in military mod- ly. We have a chance in this new era to break areas: supporting the people who make up ernization is the acquisition of smart weap- down some old left/right obstacles and build our Armed Forces; improving our technology ons and technologies that provide better consensus for moving forward. and weaponry; and modernizing our systems knowledge of the battlefield. I would like to make another offer to for logistics and supply. Under the President’s current budget pro- President Bush and Secretary Rumsfeld. I First, we must work together to make sure posal, we will be spending $470 billion a year am ready to work with them and Speaker we have a sufficient number of troops, and on defense by 2007, making it seem that we Hastert to appoint members to a bipartisan that they receive better compensation, and will be able to buy every weapon imaginable. advisory commission to help build consensus get the superb training they need. But even at that huge amount, we need to for updating and modernizing the Armed Under President Reagan, the Armed Forces spend wisely. Forces. The commission could work with ex- reached a peak of about 2.2 million. Much One of the best things we can do is trans- perts and the Congress to make sure—just as has changed since that time: we currently form our military by linking new tech- we did during the Cold War—that we create have 1.4 million soldiers, sailors, airmen and nologies with existing ones. bipartisan support for modernization and marines who are severely strained as they I have been heartened, for example, to hear succeed at the new type of fighting already bravely carry out a growing number of mis- about the success of the GPS guidance kits upon us. sions. General Ralston, our commander of that can be attached to so-called ‘‘dumb In World War II, Churchill said, ‘‘Let us NATO and U.S. troops in Europe, recently bombs’’ dropped by pilot-less aircraft or B– learn our lessons. Never, never, never believe told Congress that he does not have the 52’s. any war will be smooth or easy.’’ We would forces to accomplish what we are asking of This relatively simple innovation makes be foolish to forget that. If we learn our les- him. bombs more accurate and is less expensive sons together, we can make our military Rep. IKE SKELTON has been a strong leader than designing whole new weapons systems. more effective, and make the world safer for on this issue in the House Armed Services And where we can design entirely new all people. Committee, and I will work with him to add weapons that revolutionize our capabilities 21ST CENTURY FOREIGN POLICY troops in 2003. on the battlefield, we must move ahead at I recently read a disturbing article in the full pace. One of the great successes in Af- But meeting the terrorist threat means re- New York Times that described the situation ghanistan has been our ability to integrate thinking more than simply the way we fight of a young Sergeant, Eric Vega, who is with data, an area where we must continue to in- wars. We also need to reexamine the way in the 459th Airlift Wing at Andrews Air Force vest. which we conduct our foreign policy. Our en- Base. Since he was activated on Sept. 22nd, Pilot-less surveillance aircraft, like the emies are no longer just hostile govern- Sergeant Vega has been on leave from his job Air Force’s Predator, helped us get real time ments, but foreign demagogues who seek with the Virginia State Troopers. data on the enemy’s movements, saving pi- support from the most impoverished citizens Because of his service this year, he has lost lots and allowing commanders to respond of the developing world. about $25,000 in overtime pay, is working 14 immediately. On the diplomatic front, a policy of com- to 18 hour days, and can’t see very much of The acquisition of these planes may seem mitment helps us prevent war and promote his 11 month old twins. costly—the 2003 budget calls for $150 million stability. This is especially true in the area I was heartened to read that he still dollars more—but pilot-less planes will cost of foreign assistance. planned to ren-enlist. But it is wrong that we much less than an F–22. The quicker we can A central goal of our foreign aid during the are putting men and women like him move to a dominating position with them Cold War was to preserve alliances and pre- through that. It is enough of a sacrifice to worldwide, the better off we will be. vent Soviet influence. Whether a recipient risk your life for your country; you should The third area where we could obtain im- government was authoritarian or democratic not have to also sacrifice your financial fu- proved performance, and make our budgets was not the primary consideration, and pro- ture. more efficient, is logistics and procurement. moting economic development was not al- Sens. MCCAIN and BAYH, Reps. FORD and Experts generally refer to the amount of ways a goal. On the one hand, the Marshall OSBORNE have introduced bills to let young resources devoted to support functions as op- Plan rebuilt Western Europe and ultimately Americans sign an ‘‘18–18–18 plan,’’ which is posed to war fighting capability as the ‘tail locked in democracy from Germany to one smart option for bringing more people to tooth’ ratio—and while the ratio was once Greece. On the other hand, American aid to into the service. Under this plan, which 50/50 it is now 70% tail and only 30% tooth. Zaire did little to improve living standards builds on work already begun in the Armed The financial planning process at the Pen- in that country. But it did make President Services Committees, a person could serve 18 tagon has not been overhauled since it was Mobutu one of the richest men in the world. months in active duty, 18 months in the re- implemented almost 40 years ago by Robert Today, promoting the universal values of serves and receive an $18,000 bonus, which McNamara. And a 1997 DOD report found freedom, fairness and opportunity has never can be used for educational purposes at the that of the US military’s $64 billion inven- been more in America’s self-interest. We end of his or her service. tory of supplies, over $20 billion was obso- should seek to lead a community of nations We need to keep investigating more inno- lete. that are law-abiding, prosperous, and demo- vative ways to help people serve. We need to update our logistics and supply cratic. Such a world would leave fewer places We also need to work together to reform systems. for terrorists to hide, and more places for our training system. I want to thank the Business Executives citizens across the globe to pursue life, lib- When I was in the Air National Guard, for National Security—in particular the erty and happiness. back in my younger days, I enjoyed the Chairman of its Executive Committee, Dr. Afghanistan offers an excellent example of fierce rivalry my Air Force buddies felt to- Sidney Harman—for the insightful and non- the strategic rationale for such a shift. wards the Army. But we had little contact partisan work they have done to highlight America was generous to that country dur- with the Army. You trained and worked with these issues. Dr. Harman and his group found ing much of the Cold War, and American those from your own branch. When a mission that by adopting the best business practices military aid following the Soviet invasion was called for, you were supposed to be for the military, the Pentagon could save was successful in its limited goal. In terms of ready. When it was an Army job, then it was $20–$30 billion annually without sacrificing a Cold War calculation, we had won and the their turn. quality. rationale for American aid to Afghanistan Wars, of course, don’t work like that any- In 2000, it took an average of 30 days to re- disappeared. more. And in recent years, our service ceive a part through the defense logistics But into the vacuum left by the Soviet de- branches have worked well together to de- system. In contrast, the Caterpillar company parture and the reduction in American inter- velop joint operational capabilities. But we can ship a part anywhere in the world within est, came an era of lawlessness and then the can do better. 48 hours, and usually in less than a day. We repressive theocracy of the Taliban. While

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\CR\FM\A13JN7.034 pfrm04 PsN: H13PT1 H3546 CONGRESSIONAL RECORD — HOUSE June 13, 2002 some may have argued before September individuals or small businesses who need ac- a public education. Worldwide, more then 130 11th that what happened in nations like Af- cess to capital and opportunity. million children are not in school and do not ghanistan didn’t matter to Americans, we In almost two-dozen Moroccan cities, receive a regular meal each day. now know that tragically, it does. Today, na- small indigenous NGOs supported by the Beyond the intrinsic merits of education, tions in trouble or chaos anywhere in the United States are dispensing $50 to $700 loans we know that in countries where education world have real consequences for the United to individuals seeking to establish and ex- is universal, economies expand and popu- States. pand businesses of their own. Such programs lation growth is held in check. Some people have suggested that we stop have generated tens of thousands of jobs We should work with developing nations to using the term ‘‘foreign aid.’’ I agree. We around the world, and they build a founda- help them create universal education sys- should remake and rename it. Traditional tion for future macroeconomic growth. tems. I am happy that the Farm Bill in- foreign aid may have worked as a Cold War Other support must help to defeat the cludes the bipartisan George McGovern-Bob construct, but our goal now should be what scourge of HIV/AIDS. To achieve economic Dole initiative to provide school meals to I call American Partnerships. We should development, we must work together to im- hungry children if their parents allow them work closely with countries that want to improve prevention, treatment and care for to go to school, and if the host country prove bilateral relations and benefit their people with this disease. I have been to Afri- agrees to a program of education develop- people, and insist that these relationships ca and seen the devastating pandemic on ment. are true partnerships based on shared values. that continent, from Zimbabwe’s villages to It is a good start and one we should ex- If we can help create a world with more South Africa’s maternity wards. It is a hu- pand. economic growth, better health care, strong- manitarian crisis. It is a development crisis. We must also encourage and help nations er education, and more human rights, par- And its ability to spread rapidly and desta- develop objective curricula that will advance ticularly for women, we will be fulfilling an bilize nations in Africa and elsewhere makes their place in a global society. In Arab na- essential part of our foreign policy. it a national security crisis, too. tions in particular, we must work, with gov- Let me outline three qualities that should Updating our foreign policy also requires ernments to force blatant and ugly anti-Se- comprise this strategy. renewing our commitment to democracy. mitic and anti-American rhetoric out of Economic development, democracy, and In my career, I’ve been fortunate to spend textbooks and out of the classroom. If we universal education. a good deal of time abroad meeting with for- don’t make this a high priority, our hope of First, economic development. eign leaders and their citizens. You can’t achieving a lasting peace in that region will People without access to jobs and the hope learn everything out of a briefing book, and never be realized. And our hope of building for a better life face a bleak and desperate I’ve learned a great deal from these travels. long-term partnerships will be dashed. future. In the last several decades, as the But nothing prepared me for the suspicions I’ve touched on a few ways in which a re- rest of the world opened up—as trade and towards America I found on my recent trip focused diplomatic agenda can promote long- freedom of movement have become more a to the Middle East. term change in the Middle East. But let me fact of life for most—many parts of the Mid- Many students I met in relatively mod- be more direct. Depending on the choices we dle East and Central Asia have remained erate nations such as Morocco asked ques- make in the weeks and months ahead, the closed. Regional barriers have discouraged tions about American plots against their Middle East will either continue to be a tin- trade, populations have skyrocketed, and too land that seemed outlandish. The ques- derbox for international instability, or a many economies have grown dependent on a tioners often cited regular news broadcasts— land of new alliances and hope for the future. single commodity—oil. media that in too many countries are filled Having witnessed the downward spiral of We know that when nations open them- with calls for hatred and violence. Just events in the region over the past year, I be- selves up economically, they will ultimately weeks ago, an outrageous Saudi broadcast lieve our first choice is clear—America must enjoy greater prosperity and moderation. called for the enslavement of Israeli women. lead. We cannot expect that the parties to Trade is one important part of lifting up We know in America that the antidote to this conflict will resole it without the active poor nations. these voices is more freedom. The censorship support of the United States. We must be In a speech I gave in January to the Demo- of legitimate criticism by some governments steadfast in our support for Israel, in words cratic Leadership Council, I said that it is too often leads to popular anger and a search and deeds. The United States must speak time we crafted a ‘‘new consensus’’ on trade. for scapegoats. We need to help moderate frankly: there is no moral equivalence be- Everyone knows that trade should be an en- voices be heard in these counties because tween suicide bombings and defending gine of growth for all nations, and that we they will offer a better way for the future. against them. can move beyond simple left vs. right de- And we can help. Radio Free Europe, Radio We need strong measures to replace vio- bates to craft agreements that both promote Liberty and Radio Free Asia should be mar- lence with dialogue, and despair with hope. trade and protect the environment and labor. keted as models for the delivery of compel- And we must seek a lasting peace that pro- I suggested then that the US-Jordan trade ling, objective broadcasting cross the globe. vides real security for Israel and opportunity agreement was a model that serves American In a world within terrorism, our security is for all people in the region. economic interests. Today, I also want to enhanced when accurate information about The other regional challenge that requires point out that it profoundly serves our na- our policies can reach every household. American leadership is Iraq. Saddam Hussein tional security and strategic interests as We need to nurture civil society in these survives by repressing his people and feeding well. regions, work with governments and nascent on a cult of victimization. He is clearly not There are promising signs that we can legislatures, and encourage free expression a victim, and I share President Bush’s rebuild on this new consensus. We are cur- and the broadening of rights for all people. solve to confront this menace head-on. We rently negotiating trade agreements with The National Endowment for Democracy and should use diplomatic tools where we can, Chile and Singapore, two nations that are its affiliates, NDI and IRI, deserve more sup- but military means when we must to elimi- ready to use Jordan as a model. port to expand the good work they’re already nate the threat he poses to the region and If we are to open the Middle East and other doing in this area. our own security. New foreign policy initia- regions to the hope of peace and prosperity, We also must fight corruption and take tives can help remove one of the legs of we will need more agreements like the one measures to advance the rule of law. Of par- Saddam’s survival by reducing the despera- we reached with Jordan that meet these ticular importance at this moment, we must tion of many in the Arab world who see him goals. demand that the Palestinian Authority take as a defiant ray of hope. At the same time, But trade alone for many countries will steps to formulate a truly operational, ac- we should be prepared to remove the other not be enough. We need a generation of de- countable and democratic governing entity. leg with the use of force. I stand ready to velopment partnerships that promote free To date, Chairman Arafat has failed in each work with this Administration to build an markets and democratic governments and of these areas. Real progress toward peace effective policy to terminate the threat are leveraged to spur growth. will only be possible when the Palestinian posed by this regime. Luckily, we have an opportunity for Authority begins to adopt the rule of law and progress with the Millennium Fund that the accountability as guiding principles. STRENGTHENING ALLIANCES President recently proposed in Monterrey, The third value that I think is stressed too As we reform our military and update our Mexico. I support its goal of fighting poverty little in our current foreign policy is edu- foreign policy, we must recognize that Amer- and hunger, encouraging universal education. ica cannot and should not do this alone. cation, enhancing women’s rights and The Pakistani government spends 90% of Leadership is not a synonym for health, reducing child mortality and pro- its budget on debt service and the military, unilateralism. When we lead a coalition, we moting sustainable development. But we and practically nothing on education. Gov- advance not just universal values, but mu- need to make sure this fund is not a shell ernments in other developing countries have tual security as well. game, diverting resources from other worthy similar difficulties in meeting the demands After World War II, the United States cre- development efforts, and I hope the Presi- of a rapidly growing population. In some ated institutions that promoted economic dent will work with Congress to provide in- Middle Eastern nations, almost half the peo- growth and forged the military alliances creases for effective programs in the 2003 ple are under the age of 15, and the total pop- that stood against communism. President budget. ulation is expected to double in the next two Clinton wisely built on that tradition, cre- Some of these new partnerships should also decades. The majority of children in the ating new alliances that strengthened Amer- come in the form of micro-loans: support to Arab and Muslim world do not have access to ica’s security. I hope the Administration will

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consider a new generation of international CHALLENGE TO AMERICANS Francisco-based Center for Citizen Initia- partnerships, regional security alliances, The last challenge I’d like to discuss today tives. Individual families in St. Louis and more flexible financial institutions, and is to instill all these initiatives with a new Atlanta hosted a handful of Russian entre- treaties to help manage increasing eco- energy of civic involvement at home and preneurs who came here to learn skills from nomic, political, and military complexity. abroad. American business people. Today, hundreds Over the past year, despite the unifying In a new, more interconnected world, indi- of Russians are coming to the U.S. each year force of the war on terrorism, an undercur- viduals or small groups can pose a serious to get hands-on training and Americans in rent of unilateralism has strained our rela- threat to America’s heartland. Nineteen hi- more than 40 states are participating in the tions with allies in Europe, Asia and Latin jackers did what Germany and Japan failed program. America. Instead, we need to redouble efforts to achieve in the entire Second World War. The challenge for every American is to to strengthen NATO and reinvigorate bilat- This is a new front involving our firefighter convince the world that it is better to live eral pacts with South Korea and Japan. In and police, our EMS, the INS, the Customs together than at war, looking toward the this hemisphere, we should take advantage Agency, the Coast Guard and all other orga- promise of the future rather than the griev- of the recently invoked Rio Pact to har- nizations responsible for protecting the ances of the past. monize security arrangements and pursue United States. Updating our public diplomacy requires up- democratic and economic objectives. And we This is a completely new threat to our dating our politics. In the 1990s, with the must leverage all of these ties to forge wider home front, and I am deeply concerned that Cold War over, it seemed like the parties regional alliances. the appropriate sense of urgency is absent could play politics with any issue. But today I commend the Bush Administration for its from our civil defense efforts. we need a new politics based on an open ex- work to construct a stronger partnership be- After Pearl Harbor, we moved with speed change of approaches. We must be free to tween NATO and Russia. This new arrange- to mobilize our nation in defense of democ- propose ideas and work together to implement should ultimately break down lin- racy. Almost nine months after Sept. 11th, ment the best ones. This may well be the gering suspicions and allow us to maximize America has still not crafted a strategy to most important public policy question of our strengths to confront shared threats. significantly strengthen our nation’s secu- lifetimes. We must be doing our very best, At the same time, we must intensify our thinking our very best, working together at bilateral work with Russia on a range of rity, despite a series of recent warnings from our government. our very best. issues, especially the need to destroy If we do, I think there is every reason for unneeded nuclear weapons and keep others We need to reorganize our homeland defense agencies in order to maximize the safe- optimism. out of the hands of terrorists and rogue na- Extremist leaders who advocate violence tions. Former Sen. Sam Nunn has identified ty of all Americans. Not only does the Home- land Security Director need to be a cabinet against America must constantly worry that this threat as the new nuclear arms race, and their own rhetoric will consume themselves I join him in calling for immediate steps to officer—he needs budgetary authority. He needs operational authority. And he must and their cause. To quote Churchill once avert what is no longer the unthinkable—the more, ‘‘dictators ride on tigers which they use of a weapon of mass destruction by an provide a comprehensive plan to the Con- gress on our national strategy for homeland dare not dismount.’’ In contrast, we have the unknown enemy. Our government must allo- luxury of trusting in democracy and the cate additional funds to secure these weap- security. Such a plan should involve all Americans in our civil defense effort. good sense of our fellow citizens. ons and their components, and accept no Just as we battled the Soviets through 50 more excuses for the proliferation of dan- As the Intelligence Committees begin their hearings today, we all know that our ability years of the Cold War as a united America, gerous materials from Russia to Iran and so will we battle terrorists and their sup- elsewhere. to coordinate information gathered at home and abroad needs to be improved. A task porters for as long as it takes. Today, we The severe consequences of proliferation enjoy a new and productive relationship with are on vivid display in the current tensions force led by former National Security Advi- sor Brent Scowcroft has developed proposals Russia; one day, we will hopefully enjoy a between India and Pakistan. We must do ev- new and productive relationship with those erything possible—on our own and with our to better integrate the work of our intelligence agencies. Given the urgency of col- who distrust us now. allies—to diffuse this stand off, because the We know that civilization requires protec- lecting and utilizing intelligence effectively, terrorists who have fueled it will be the sole tion, and that freedom demands commitment I hope the Administration will act upon beneficiaries of an all-out war. This is the and sacrifice. But it also requires imagina- these ideas. new world in which we live. Disputes once tion and clear thinking. Finally, we must harness the spirit that considered remote can have deadly con- In 1947, in an address to a joint session of defined people’s response to the Sept. 11th sequences if met with American apathy. Congress, Harry Truman spoke about the attacks. American citizens who have enjoyed We must also continue to encourage Chi- communist threat in Europe, and the strug- the rich benefits of democracy and free mar- na’s participation in bilateral and regional gle for freedom and democracy in Greece and kets possess a unique capacity to energize endeavors, provided that it agrees to the Turkey. He ended his speech with the re- these values across the world. price of admission—adherence to inter- minder: ‘‘Great responsibilities have been Let’s be clear: Americans face a special national standards including human rights, placed upon us by the swift movement of challenge in this conflict: to educate our- trade practices and nonproliferation rules. events.’’ selves as never before, to participate in deci- As former Defense Secretary Bill Perry Twice in the last century, and now again, sions that affect all out lives, and to make proved a few years ago in helping to develop our nation is being asked to measure itself. connections with people across the globe. We a visionary policy toward North Korea, the If we fail, the consequences are severe. For need to encourage citizens of all ages to get United States and China can make great ourselves, and for the world, let us succeed. progress if we recognize the common, long- involved in the Peace Corps, the diplomatic term interests that our people share. corps, Americorps, the CIA and the FBI. f We should also look to new regional struc- One of the efforts I am most enthusiastic The SPEAKER pro tempore. Under a tures for projecting strength and stability, about helps experienced Americans go over- previous order of the House, the gen- seas and share their skills with people in de- especially in places where our government is tleman from Maryland (Mr. HOYER) is veloping countries. not willing to commit U.S. forces. A case in recognized for 5 minutes. point is Africa, which some have claimed is I met a retired businessman from Chicago not a national security priority for the on my most recent trip to the Middle East. (Mr. HOYER addressed the House. His United States. I disagree, and I was dis- He had volunteered to run a start-up micro- remarks will appear hereafter in the appointed when the Bush administration cut loan program in Morocco. With his project Extensions of Remarks.) funding for the Africa Crisis Responsive Ini- nearing completion, I asked him what he was f tiative. This program was designed to build planning to do next. The SPEAKER pro tempore. Under a ‘‘I thought about going home to play golf,’’ indigenous capability within Africa that previous order of the House, the gen- could respond when needed, and help re- he said. ‘‘But I have decided to stay in the gional leaders like Nigeria calm trouble Middle East. I’ve seen what can be achieved tleman from Texas (Mr. GREEN) is rec- spots so the United States would not have to. here in Morocco, and I am going to another ognized for 5 minutes. We must be prepared to build alliances in country and do it all over again.’’ (Mr. GREEN of Texas addressed the regions that flare up unexpectedly. Afghani- For every American like him, we counter- House. His remarks will appear here- stan is the best example of this today. The act a book of lies. For every business he after in the Extensions of Remarks.) Administration deserves credit for the mili- helps succeed and every person who finds a f tary victory there. However, it will be short- job, we diminish the pool from which the sighted if we stop now and withhold support haters recruit. SUPER NAFTA MEANS SUPER for expanding the international security At home, government, industry, and indi- TORNADO FOR U.S. presence beyond Kabul, as Interim President viduals must also participate in this effort to Karzai has urgently requested. Instead, we expand knowledge of other peoples, and fos- The SPEAKER pro tempore. Under a must take steps to make that nation a prime ter interaction between nations. previous order of the House, the gentle- example of the coalition’s unbending com- In 1994, Newt Gingrich and I sponsored a woman from Ohio (Ms. KAPTUR) is rec- mitment to democracy and development. pilot exchange program devised by the San- ognized for 5 minutes.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\CR\FM\A13JN7.040 pfrm04 PsN: H13PT1 H3548 CONGRESSIONAL RECORD — HOUSE June 13, 2002 Ms. KAPTUR. Mr. Speaker, this week ready had a trade deficit with those Then there was the gentleman at the the House was scheduled to take up a countries of $6 billion. So why would Jewish senior citizen home in my dis- measure relating to fast track trade anyone want to exacerbate a situation trict who stood up and said, You know, authority but, for some reason, it got which is already working against the I cannot afford my prescription drugs pulled from the schedule and we were interests of our people? anymore. What I am doing is cutting not told why. We know President Bush This appears to be what the adminis- them in half and taking half of the pre- has called fast track one of his top leg- tration is fighting for: more lost jobs, scribed dosage. I am 77 years old, and I islative priorities, even though it will more trade deficits. When will this job am getting older and sicker every day. lead to more lost jobs and even higher hemorrhage end? When we have no I want you to do something about it. trade deficits for our country. So it is manufacturing base to speak of? When Then he said something that is embed- a bit of a mystery why we did not take our markets are flooded with agricul- ded in the DNA of every part of my up this important measure. tural products from every place else in memory bank. He said, Mr. CUMMINGS, Mr. Speaker, the President wants the world? if the Congress does not do something fast track to pave the way for the so- Mr. Speaker, many of our working fairly soon, I will be dead. called Free Trade Agreement of the families are suffering. In fact, millions We have other people in our districts Americas, a kind of super NAFTA. This of them are. America is becoming a ba- throughout the country who are pur- super NAFTA would extend NAFTA zaar to the world’s goods and, at the chasing half of a prescription because provisions to all of the countries in our same time, we are hollowing out our they simply cannot afford the entire hemisphere except Cuba. But why own productive strength here at home. prescription. So I was very pleased would we want a super NAFTA, consid- It is no surprise to us here to tell the today to hear and participate as the ering the damage that NAFTA has American people that 75 cents of every Democrats proposed a prescription caused in the past 8 years? NAFTA has farm dollar today is Federal subsidy. drug plan. I know the Republicans have been like a tornado, ripping up jobs and b 1500 done the same thing. tearing apart communities from the Farmers are farming the govern- The issue now is that this Congress, textile areas of the Carolinas to the ag- ment, not the market. Our agricultural Mr. Speaker, must act. There are many ricultural valleys in California and policies are only working to hold the people who are depending upon us to Florida, to the automobile industry in farm credit system together so we do come up with a reasonable plan so that the Great Lakes region. not have a depression in rural America, they can live. While we are about the Now, according to the Los Angeles and in manufacturing America we have business of protecting our country Times, the latest of our exports are had a depression. I do not know why it against outside forces, we have to high-wage jobs. Before NAFTA, we had is not on the front pages of every news- make sure that we do not deteriorate a trade surplus with Mexico. We sent paper in the country. We have lost over from the inside. These are people who them more than they sent us. In 1993, 2 million jobs, more in the last 2 years. have given their blood, sweat, and in fact, before NAFTA, America held a Talk to anybody in the integrated steel tears to lift up this great country; and surplus of over $6 billion with Mexico. industry. Talk to anybody in the ma- they are in their senior years. It is a Yes, that was a surplus. Where are we chine tool industry. Talk to the elec- time when they should be resting and today post-NAFTA? Well, we had a tronics industry. relaxing and feeling comfortable about trade deficit, a record deficit of nearly It seems to me we ought to have their lives, but they are coming to a $30 billion with Mexico in one year; trade policies that work for America point where they are not only losing that is billion, translated into over again. We should not be trading away their dignity, but slowly but surely los- 600,000 more lost jobs in our country. our good jobs, and fast track is not a ing their lives. Do we think the balance of accounts responsible plan for a secure economic So I am hoping, Mr. Speaker, that we was any better with Canada? Wrong. future. Why should we have a fast will take the words of those seniors Our trade deficit with Canada for the track for more lost jobs and higher who are not only in the Seventh Con- year 2001 was over $50 billion. That trade deficits? gressional District of Maryland, but translates into 1 million less jobs in Someone ought to pay attention, and those seniors who are throughout our our country. we ought to reject any fast track pro- entire country waiting and praying Who can call this kind of policy a posal that is brought to this floor. that we will take action. success? Most estimates indicate that f Last but not least, I have often said, more than 3 million jobs, direct and re- Mr. Speaker, that we have one life to lated, have been lost post-NAFTA. PRESCRIPTION DRUGS live, and that this is no dress rehearsal. Analysis shows State-by-State job loss The SPEAKER pro tempore (Mr. This so happens to be that life. I think figures range from a low of 6,838 in KELLER). Under a previous order of the it should be our goal to bring the very North Dakota to a high of over 364,000 House, the gentleman from Maryland best life to our very, very valued citi- in California. Other hard-hit States in- (Mr. CUMMINGS) is recognized for 5 min- zens, the very best life that we can. clude my own of Ohio, but add Texas, utes. After all, this is one of the greatest New York, California, Michigan, Penn- Mr. CUMMINGS. This afternoon, Mr. countries in this world, and we should sylvania, North Carolina, Illinois, Ten- Speaker, I just wanted to address this treat our seniors in a way that reflects nessee, Florida, Indiana, Georgia, New whole issue of prescription drugs. It is the greatness of our country. Jersey, each with a loss of over 100,000 an issue that is on the forefront of the f good jobs. Those may sound like num- minds of just about every senior in my bers to the White House or some of my district. SOCIAL SECURITY colleagues on the other side of the Over the past year, I have visited at The SPEAKER pro tempore. Under aisle, but each one of those numbers is least 25 senior centers, and the stories the Speaker’s announced policy of Jan- a family fighting to put food on the that we are told over and over again uary 3, 2001, the gentleman from Flor- table, to pay for college and medical would bring tears to almost anyone’s ida (Mr. FOLEY) is recognized for 60 costs, and is a strong indicator as well eyes. Just the other day, we had a minutes as the designee of the major- of America’s waning manufacturing young lady, I say young, 70 years ity leader. and agricultural strength. If that is the young, who in a meeting of seniors said Mr. FOLEY. Mr. Speaker, let me first wave of the future, I sure do not want to me, Mr. CUMMINGS, I worked all my indicate Florida’s pride in the gentle- any part of it. life. I worked very hard. Now that I am man’s being in the chair today. We are Under the Free Trade Agreement of older, I find myself unable to afford my delighted to see the gentleman from the Americas, the ‘‘Super NAFTA,’’ in- prescriptions. I go from drugstore to Florida (Mr. KELLER) as Chair of the stead of just covering Mexico and Can- drugstore trying to collect samples, be- House and Speaker pro tempore. ada, now we are going to add 31 more cause I simply cannot afford the cost of We are also delighted to have a con- countries into the mix, like Argentina, prescription drugs. I wish that the Con- versation today in calm and measured Brazil, Colombia, and Venezuela. In the gress would be in tune with me and tones about an issue that is vitally, vi- first 3 months of this year alone, we al- give me back my dignity. tally important, to every American.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00034 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.087 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3549 That topic is Social Security. Typi- Florida Day right now are Floridians. I system. There was no need to forward- cally, when we mention Social Secu- am from the district with the largest fund on Social Security. The system rity, people 65 and older are all ears population of seniors in all 435 districts was working beautifully. and stay tuned to the debate. What we in America. Seniors matter to me. So- Now we are at 2002. We find that hope to do today is spend some time on cial Security matters to me. My legacy there are only three workers for every this very valuable program, this impor- that I hope that I can leave in this retiree. We still have a pay-as-you-go tant program, this safety net, if you process to my grandmother’s memory system; and as we know by listening to will, for all Americans 65 and above matters to me. many of the speeches on the floor of and those yet to reach that wonderful I do not want to try and convince this House and reading in the news age. people to vote for our party by scaring media, we see that we still have a sur- We would also like to put to rest people. I would like them to have a plus in Social Security, so it is still some of the demagoguery relative to chance to look at the record and say, working as a pay-as-you-go system. this issue. We find so often that people, this group of individuals, hopefully in- But then we also look ahead, and we particularly the minority party, re- cluding some fair-minded Democrats, know that by 2035 there will only be grettably, have sought to use Social came to this great city in this great two workers per retiree. Now, every Security as a political issue to try and Nation and endeavored to fix a growing working American or most working divide people and suggest that they had problem. Americans pay in 11⁄2 months of wages better vote for their side if they want Now, I am joined, fortunately, today, per year to take care of the Social Se- to see Social Security preserved. by the chairman of the Subcommittee curity program. That is a lot of money, Let me start with a personal anec- on Social Security who happens to ad- particularly to our low- and middle-in- dote, if you will. My grandmother came join me in the neighboring congres- come people; and probably for many of from Poland. She came to the United sional district in Florida, a person who our low-wage workers, it is the biggest States of America. Her husband died, knows not only full well of Social Se- tax and maybe in some instances the and she raised my mother and her sis- curity’s importance, but some of the only tax they pay; but 11⁄2 months ter on her own. She was a maid in the remedies that we have prescribed to working for this retirement system is a Travelodge Motel, and she cleaned 28 make it financially secure. lot. It is up to this Congress to look rooms a day. It was a job she was proud He represents an equally large num- ahead and see what can we do for to- of, and a job she did well. ber of senior citizens; and every day he day’s workers to be sure that the sys- But in her later years, the one thing comes to work he considers and re- tem is going to be there for them. was certain, she depended desperately flects on that same awesome responsi- There is no reason to change it for on that Social Security check, and she bility, that it is not just about getting the older workers, people in retire- depended on Medicare. She died with elected and reelected, it is about doing ment. There is no reason to invade the but $10,000 in the bank, her life’s sav- something while we are here to earn trust fund. There is no reason to side- ings, all a woman of her means could the confidence of the voters. He has track any of those taxes. Those taxes are there and that program is there for afford to save in her lifetime while she been here since 1980, I might add, in a them. They have paid into it their cared for her two dependent children, largely Democratic district; so I think whole working life, and I do not know paid her taxes, contributed to the he has proven to Members of all polit- any Member of Congress that would church, did volunteer work, and helped ical stripes that he has the best inter- take anything away from them. the community in many ways. ests of seniors, not Democratic seniors But let us see where we are going to I remember her waiting anxiously for or Republican seniors or Independent go and what is going to happen. By the that check every month. She could seniors or nonaffiliated seniors, but of way, all of the figures that I am using have counted on us, but she wanted to all seniors, at heart. here this afternoon are from the Social be self-sufficient, and Social Security Mr. Speaker, I yield to the gentleman Security Administration. This is the provided that self-sufficiency. So it is from Fort Lauderdale, Florida (Mr. same under both the Bush, as well as in her memory that I stand today as a SHAW), chairman of the Subcommittee the Clinton, administration, so there proud Member of the Republican Party on Social Security. are no partisan figures that are being talking about ways to correct and Mr. SHAW. Mr. Speaker, I thank the used here. These are factual figures strengthen and improve Social Secu- gentleman for yielding to me. I would which no Member of Congress or no rity. like to congratulate him for reserving person in the government or elsewhere Now, they use tag lines on the other this time, because what we do need is can refute. side of the aisle like ‘‘privatize’’ and some time for some quiet reflection so What happens if we do nothing? If we ‘‘take away’’ and ‘‘diminish’’ and that we can examine the problem, look do nothing, we find that in 2041 there ‘‘raid’’ and ‘‘abscond’’; and it is amaz- at it in a very rational way, no yelling could be as much as a 27 percent reducing, rather than constructive rhetoric, and screaming, no talking about scare tion in benefits. Now, those of us who like, let us see if we can work together tactics about privatizing, which is ri- know or have talked to or worked with to fix a problem, they simply say, let diculous, no talking about cutting ben- people that are at the lower-income us be in charge, and we will make cer- efits and all of these things. But it is level, we know this would be dev- tain Social Security is fully protected. time that this Congress and the Amer- astating. It is really unthinkable. But Well, we have had that experiment. ican people really reflect upon exactly then when we look ahead to 2076, we In fact, since 1935, when Social Secu- what the problem is and why are we see a 33 percent reduction in benefits if rity was created, they ran this place trying to do something about it. Congress does nothing. for 40 years. They ran this place into I am going to refer to four charts looming and growing deficits. So if we during the few moments that I will be b 1515 look at the facts of the matter, we will here. I think they certainly graphically But Congress can, as we know, and as see that our stewardship of Social Se- show what the problem is. Congress sometimes does, they could curity has actually been more on the Social Security is one of the greatest raise the taxes. And if they were to point of making certain that it not anti-poverty programs that we have raise the taxes, we see right now where only is fundamentally and financially ever had in this country. It is not a 12.4 percent of the wages go into the secure, but that it also has long-term welfare program; it is a program in Social Security system. To keep the potential for future generations. which we pay in all of our working benefits the way they are, Congress We have to think more than just the years, and then if we become disabled would have to raise the taxes in 2041 to current voting age population of 65 and or retire, it is there for us. It is exactly an amount equal to almost 17 percent above. We have to think of those born the right thing to do. of the workers’ wages, and in 2076 you today in this country. We have to Now, it has been a pay-as-you-go sys- are getting over 18, almost 19 percent think of those who are just entering tem ever since it has been put in place. increase in the taxes. Now, this is the workforce at 17, whether they are In 1945, there were 42 workers for every something that is totally unacceptable. in Orlando or Palm Beach or Fort Lau- retiree. As we can see from this graph, We cannot go to American workers derdale. The three Members here on it is a great system as a pay-as-you-go and say we are going to give you this

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.089 pfrm04 PsN: H13PT1 H3550 CONGRESSIONAL RECORD — HOUSE June 13, 2002 tremendous increase in your taxes. We sustain itself with this type of a, with lemma that we find ourselves in, and will literally be taking food out of the a deficit. But this is the answer for there are some very good plans. The mouths of the children. We will be tak- doing nothing. plan that I have developed adds some- ing rent money. This is unacceptable. Now, I am not suggesting, I have got thing to Social Security without Likewise, this is an unacceptable, the on here under the Democrats Do Noth- touching the trust fund, without touch- cut in benefits. But we do not have to ing Plan, cash flow deficit starts in ing any of the FICA taxes that are do it. But if Congress does nothing, 2017, and this chart would indicate that going into the Social Security trust which is the only plan that I have their plan would build up to $25 trillion fund. And I believe that this is the best heard from Members, many of the deficit. I do not believe what they say, way to go. And I have demonstrated Members on the other side of the aisle when they simply say, oh, we will do through the Social Security Adminis- when they say we do not have to do nothing and the money that we are tration that if we were to enact this anything, we are looking at a $25 tril- going to save from the interest that we Social Security Plus Plan that we lion deficit in the Social Security trust are not going to have to pay on the would not only be able to avoid all of fund. borrowed revenue will take care of the this red ink, we would keep benefits We see here that we are going to have problem. every bit, if not better, than they are surpluses up to about 2017, and then be- I beg your pardon? Going to take today; we could add to it a retirement ginning in 2017, we are going into a care of a $25 trillion problem? Come on. bonus which would be paid out of these shortfall and we are going to have a $25 Even the newest math cannot get you added funds that are being put into the trillion deficit. This would be shat- there. I mean, we always talked about Social Security Administration. It as- tering to the economy of the United voodoo economics, but this is beyond sumes that every dime that goes into States. The biggest economy in the this. This is post-post graduate voodoo this would have to be borrowed and world cannot sustain that. economics. paid back, and not only would they be This is what the facts are and these This is not only a problem in the paid back over the between now and facts are reported by the Social Secu- United States, it is all over the indus- 2075, but it would create a surplus of $1 trialized world. People are living rity Administration. Mr. FOLEY. Mr. Speaker, if the gen- trillion. longer and they are having fewer kids Now, this is what we need to leave to tleman would also explain the Social and this is the problem that we have. our kids; and this is what we need to be Security trust fund because that is a So we have got a workforce as it ap- able to try to do. misnomer. There has been a lot of de- plies to the amount of seniors, the Now, you have heard a lot on this bate today, in fact, about raiding the workforce is decreasing, the numbers floor, they are saying the Bush admin- fund, borrowing the fund, stealing from of seniors is increasing, and the system istration or the Republicans have a se- the fund, which we know is false, pat- is definitely stressed. And the Congress cret plan to privatize Social Security. ent rhetoric. But if the gentleman needs to do something. How are you going to privatize some- would explain the fundamentals of the Mr. FOLEY. Mr. Speaker, if the gen- thing that is looking down the barrel trust fund for us. tleman would go back to the chart, I Mr. SHAW. Mr. Speaker, I am glad of a $25 trillion deficit? The private think it is very telling about the tax the gentleman suggested that. sector would not take this unfunded li- increases, but I think it is more telling The way the Social Security trust ability over, so that is absolutely ridic- about the time required for a person to fund works, the way Social Security ulous. work in a given 12-month period in works, your FICA and payroll taxes are The Social Security Administration order to pay those taxes. Can the gen- paid into the Social Security Adminis- needs to stay in place exactly as it is tleman illuminate that for us? tration. The money is paid out of the today. The American seniors, when Mr. SHAW. Mr. Speaker, I was speak- trust funds in order to pay the benefits, they were young workers, they paid ing to a reporter the other day. I could the survey benefits, disability benefits, into this system their whole working tell from her voice that she was cer- pension benefits. The benefits that life, and it is not up to this Congress or tainly a lot younger than I am. We come out of Social Security are paid any Congress to dismantle the Social were talking about the Social Security out of the trust fund. The monies that Security trust fund. It needs to be kept and what was happening to it. And I are left then go into the general fund. in place exactly as it is today. But we said, Would you go to work for this That is what we call the surplus. This need to add to it, add to it as an add- newspaper if during the interview they is money that is over and above what is on, as an addition. And my particular said you are going to work about one necessary to pay the benefits under So- plan, which we have looked at and and a half months a year to pay into cial Security. which I know you have carefully exam- the retirement funds but yet it is not Surpluses by law are replaced by ined, it would take money actually out going to be there for you? And she said Treasury bills. These treasury bills are of the Treasury. No more taxes. But it no. nonnegotiable Treasury bills which are would take it out of the Treasury Then I asked her the question, Do IOUs by the government to the govern- under monies that could be borrowed you think Social Security is going to ment. as a bridge and put into individual re- be there for you? She said no. That Mr. Greenspan testified before the tirement accounts, not all in one stock does not have to be the answer. Committee on Ways and Means and as you would hear. As soon as you start The problem that we have today is said these are really not economic as- talking about individual accounts, ev- that the young people are just not fo- sets. And you can compare them to eryone starts yelling Enron. cusing. I am looking at some of the writing yourself an IOU and declaring Well, if you had one Enron in your pages sitting here on the floor this that as an asset. It is not an asset. It portfolio, that would be a danger but afternoon. Retirement is the furthest is simply an IOU by the government to this would not allow that. They would thing from their minds. But when you the government. be widespread like index funds. And it start explaining to them that you are So we will continue to have sur- would only be 60 percent in corporate going to work a month and a half a pluses, according to the Social Secu- stocks and it would be 40 percent in year to pay for my retirement, then rity Administration, until the year corporate bonds. they say, well, wait a minute, what 2017. But beginning in 2017, the Con- Now, what the Social Security Ad- about mine? And this is what we have gress is going to have to find the ministration, they did a lookback over to think about. If we care about our money to pay the benefits, whether it the last 75 years which encompasses a kids, if we care about our grandkids, if increases taxes, whether it cuts bene- depression, a Great Depression, and we care about the legacy that this Con- fits, or whether it just simply goes into they said these individual retirement gress is going to leave to the United the red and produces this type of short- accounts would grow at a rate that States, it is time that we start focus- fall for the next 60 years. This is what would create over 75 years, which ing on this problem. And the idea of we are facing and this is what future would create a $1 trillion surplus. doing nothing and bringing up these Congresses are facing. Now, we do not have to adopt this terrible deficits, this is unthinkable be- Now there is a number of plans that plan. There are other plans out there. cause this is an economy that cannot are out there that do address this di- But it is time that the Congress quit

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00036 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.091 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3551 talking about doing nothing. They say to decrease the benefits. The next gen- committee on Social Security again, the sky is falling and then they think erations of workers, they get in under and let me also emphasize that the that is some kind of a joke. This is no the workforce, Congress talks about gentleman from Florida (Mr. SHAW) joke. This is 2017 which is right around raising their taxes. That is not fair, took his plan, the plan that I have co- the corner. And we need to start plan- particularly when you do not have to sponsored, down to the editorial boards ning for it, whether we use the plan do it. But the problem is getting the of our newspapers in Florida, and let that I have developed or whether they politics out of this. me mention one in particular, the have come forward with another plan. I I will be so glad when this next elec- Palm Beach Post, that is known for a would be delighted to hear their plan. tion gets behind us because I have a rather liberal look, for the agenda of But this is the only plan that they feeling that the Democrats will no America; and they looked at the gen- have put forward among their leader- longer say this is what they support, tleman from Florida’s (Mr. SHAW) plan ship. because this makes absolutely no very thoroughly, in fact, complimented Now, I will quickly say that there are sense. It makes no sense. And I am sure the gentleman on the authorship of the a few Members on the other side of the that once we get the politics out of this plan and willing to take the debate for- aisle that have developed plans. One of that we will be able to work with the ward to the American public on the im- the Members has developed a plan, one minority party and reform the Social portance of saving this valuable proof the Democrat Members has joined Security system. gram. Sun Sentinel, as well part of a with a Republican Member in devel- To do otherwise, I will tell you to- large chain of newspapers throughout oping a plan which I think you may morrow’s generation will turn our pic- the country, also opined that they felt hear about yet within the next few tures to the wall and that is where it was not only a very good plan but an minutes, and I congratulate him for they should be put if we do not step excellent starting point to begin the bi- doing that. But Social Security, and I forward and do something for future partisan debate on this valuable pro- am thinking of what the gentleman generations. gram. from Florida (Mr. FOLEY) was talking This is not only important for to- This is not just two Members of Con- about with his grandmother, and in day’s seniors, it is not only important gress talking to ourselves, wanting to there cleaning all of those rooms every for those who are about to go into re- hear our own voices. We have actually day and paying into a Social Security tirement, but it is our kids and our taken these ideas, as the gentleman fund that kept her out of poverty. grandkids, too. This is tremendously from Arizona (Mr. KOLBE) is going to I am reminded of a statement that important. It would be absolutely sin- share with us soon his, he has been was made here on the floor that life ful and pitiful for this Congress to do working with the gentleman from was to be enjoyed, not endured. And less than to save Social Security for Texas (Mr. STENHOLM), a noted Demo- that is what we need to work with. And this generation and the next genera- crat, who has been very engaged in this all of us know that today’s seniors are tion. constructive, bipartisan debate; but going to be just fine. Nobody is even Mr. Speaker, I thank the gentleman this is not just our voices in an echo thinking about cutting the benefits. and, again, I compliment him for tak- chamber. People have actually re- But I am also saying we do not have to ing this time. I think that the more we viewed the fine points of this document cut the benefits of tomorrow’s seniors can get this word out, the more the and suggested it was a great oppor- either if we start planning ahead American people will demand that tunity to not only enhance Social Se- today. If you start building on top of their Congress, that their representa- curity for today’s recipients but for the existing plan, not substituting, not tives, the people who work for them, generations to come. taking anything away from it. come here to Washington and not play I want to thank the gentleman for Mr. FOLEY. Mr. Speaker, if the gen- politics with this great retirement sys- spending time. Now it is indeed my tleman would tell us about his vested tem, but to fix it and be sure that it is pleasure and privilege to introduce the interest in this program. How many going to be at least as good for the gentleman from Arizona (Mr. KOLBE), grandchildren and children does the next generation as it is for this genera- another State that shares a large popu- gentleman have? tion. We can do it, but we need to do it lation of seniors, but also who has a Mr. SHAW. Mr. Speaker, I am doing on a bipartisan basis. tremendous amount of young, innova- my part to increase the number of tive working families trying to earn a workers per retiree with 4 children and b 1530 living and go to college and working to 13 grandchildren. But those are the We need to do it by everybody down make a better economy for the great kids I am worried about because I on the playing field and not having half State of Arizona; and the gentleman know, particularly when these grand- the team or the opponents up in the has been long endeavoring on Social children retire, they are going to be in bleachers throwing rocks at us that are Security, not just timely this week or deep trouble. They will be up to their down there on the field that are trying this month, but my colleague has been eyebrows in this red ink. And we can to do something. That is grossly un- working on it for a significant length avoid it, and we must avoid it, and we fair. So when people start talking of time, another true patriot in the ef- must work together and quit all of this about people wanting to privatize So- fort to preserve and protect Social Se- junk about raiding the trust fund. I cial Security, we should laugh at them. curity. I yield to the gentleman. have just explained there is no money There is no one in this House that has Mr. KOLBE. Mr. Speaker, I thank the in the trust fund. How can you raid the ever talked about privatizing Social gentleman for yielding to me, and I trust fund? The trust fund has nothing Security; and when they start talking really want to commend both my col- but Treasury bills. But beginning in about raiding the trust fund, we should leagues from south Florida for their ef- 2017, there is no surplus. You cannot laugh then because we know that there forts today to talk to the American send the seniors Treasury bills. You is no money in the trust fund. There is people about an issue that I think is so have got to send them cash. So the So- only nonnegotiable Treasury bills. vitally important. In fact, I do not cial Security Administration is going Now is the time to really move for- think there is anything long run, long to have to be looking towards the ward, lay the groundwork, so that we term that is more important for us to Treasury of the United States to get can, within hopefully next year, come be talking about than how we are going the money because there will not be together in a bipartisan way and solve to preserve and protect and save Social enough FICA taxes coming in begin- this problem. That is what the Amer- Security, which I think is undeniably ning in 2017 in order to pay the bene- ican people sent us here for, and I com- the most important, the most success- fits. pliment my colleague again, and I ful anti-poverty program we have ever We must not get in a situation where know that he and I both have a tre- had for senior citizens in this country. we are thinking about reducing the mendous number of wonderful seniors The gentleman from Florida, the benefits. That would be grossly unfair. in our shared districts, and I know that chairman of the subcommittee, has People paying into this system, relying is what they want us to do. pointed out very well exactly the prob- on it, and then just before they come Mr. FOLEY. Mr. Speaker, let me lems that we face; and we see them on into retirement, the Congress decides compliment the chairman of the Sub- these charts that are here. Several of

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00037 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.093 pfrm04 PsN: H13PT1 H3552 CONGRESSIONAL RECORD — HOUSE June 13, 2002 us in this body have recognized this money and doing anything with it. It is program which supports women and in- problem for several years now and have the very simple fact that the demo- fant children; all the money we spend been working to try to make sure that graphics of people living longer, grow- in education programs at the Federal we can find solutions to the problem. ing older, a larger older population and level; all the money we spend in the In- Since 1995 when I formed the Public a smaller working population, people terior Department to support our pub- Pension Reform Caucus here in Con- starting their families later, having lic lands and parks, national parks and gress with my colleague, the gen- fewer children, the demographics of monuments here in Washington, D.C.; tleman from Texas (Mr. STENHOLM), we those who pay the taxes for Social Se- all the money we spend for veterans then began the process of slowly work- curity to support those who receive the programs, including health care for ing through different options. Since Social Security benefits simply do not veterans; and all the money that we 1999 we have had two bills that we have work in the long run. spend in commerce, to support NOAA proposed in the Congress of the United The result is that we have promised and trade promotion, everything else States that I believe go a long way to- to pay, as this shows, $25 trillion more that the Commerce Department does; wards dealing in a very rational, sen- in benefits than we have promised to all the money we spend for environ- sible way with the problems that So- collect right now in payroll taxes. I mental protection, EPA; and all the cial Security faces. will repeat that number. We are look- money we spend on space in NASA, if So I think it is clear that there are ing at a $25 trillion, trillion, not mil- we cut out all of that, all of that, we Members of Congress that understand lion, not millions, trillion, shortfall in still would not be making up the short- the fiscal and demographic pressures the Social Security trust fund in the fall that we would experience each year that are facing Social Security and gap between what we are going to col- by the time we get to the year 2040 of that want to engage in a constructive lect in taxes and what we have prom- the deficit that we will be experiencing dialogue on reform. ised to pay out in benefits over the in Social Security. Again, some of the charts that we next generation or two. So the options are pretty bleak un- saw here from the gentleman from It is just 15 years from now that So- less we do something now, unless we Florida (Mr. SHAW) show very clearly cial Security will for the first time begin to face up to the realities of this what the demographics show us and begin to run annual cash deficits, and problem now. The government is going the problem that we have, the fiscal as the gentleman from Florida (Mr. to be forced to increase taxes on Amer- ican workers or businesses, or they are shortfall that we are going to have SHAW) pointed out, since seniors expect with Social Security. Unfortunately, not a piece of paper but a check that is going to have to make deep cutbacks in there are some Members who want to negotiable, we have to convert these other programs to free up funds to use Social Security for their own par- IOUs into cash. That means the gov- meet our Social Security obligation; or tisan political advantage in an election ernment has to start to borrow money of course, there is the option which none of us believe is an option at all, year. or we raise taxes. We raise taxes or we and that would be to cut Social Secu- Scaring seniors about Social Secu- borrow money in order to pay those rity benefits for the people when we rity might do wonders in the polls for benefits. some Members, but I do not think the That is when the deficit, in just 15 have already promised it to them. So the choices we can make are some politics of fear should be acceptable to short years, becomes a very serious tough ones. We can either make the the American people; and frankly, I do problem. Now, 15 years is not that far tough choices today to deal honestly not think it is acceptable. I think in- from now; 15 years before was not that with the challenges that the Social Se- stinctively the American people do long ago. Fifteen years ago we were curity system poses to us, or we can sense, do understand that Social Secu- just at the end of Ronald Reagan’s ad- leave a fiscal time bomb for future gen- rity is in trouble today. If we ask ministration. I was here in the House erations and truly put the benefits at young people, and by overwhelming of Representatives. Fifteen years from risk. That is why, Mr. Speaker, biparti- majorities, younger people know that now, most of the people that are listen- sanship and candor have to be at the Social Security, as it is currently con- ing to this or here on the floor will still heart of what we are going to do about stituted, cannot be there for them be either retired or the young people Social Security. when they get ready to retire; and so that we see here on the floor will be in This debate, as we have just heard simply doing nothing is really not an the middle of the early part of their from the previous speaker, is often option. working years. They will be paying characterized as an either/or choice be- There are legitimate differences of these taxes and wondering what has tween two ideological poles. Either we opinion on how best to tackle the happened to the Social Security sys- have the status quo or we have privat- looming financial deficit in Social Se- tem, why am I paying these taxes when ization. Defenders, of course, of the curity. There are a number of different it is clear there is not going to be any- status quo argue that any reform that ways that we might fix Social Secu- thing there to pay the tax for me. includes a market-based component is rity, and I think we need to honestly By the year 2030, the annual deficit going to undermine the current safety debate all of the different approaches in Social Security in one single pro- net features and expose workers to that are out there. We heard one of gram alone will reach $630 billion; and dangerous risks; and the other side, the them described by the gentleman from in that one single program, we will be advocates of full privatization, suggest Florida (Mr. SHAW). There is the Kolbe- running an annual deficit in Social Se- that creation of a privately managed Stenholm plan. But one thing for cer- curity of $630 billion. That means the personal account is painlessly going to tain is not an option and that is com- government is going to have to borrow solve the challenges, but forget that plete inaction. $630 billion in addition to the payroll Social Security provides more than Let me just review again a little bit taxes it is collecting just to pay the just retirement income. It provides for of what the gentleman from Florida benefits that it has promised to pay for disability insurance for the needs of (Mr. SHAW) laid out for us here today, retirees at that point. other special populations. and that is, some of the financial prob- Between years 2017 and 2041, the Fed- So if we take those two extremes of lems that the Social Security trust eral Government will need to raise al- do absolutely nothing and just pri- fund faces in the coming years. most $4 trillion in new money to re- vatize the whole system, I think we are The trust fund, as my colleague cor- deem the Treasury bills held in the So- looking at two extremes that really do rectly pointed out, it is a trust fund in cial Security trust fund. Just to give not solve the problem at all. They may name only. It has in it only the IOUs of my colleagues an idea of the mag- make for good, albeit myopic, rhetoric. the government, that is, the IOUs for nitude of what this means, how could They may help at election time, but the trust fund, nonnegotiable govern- we make up that deficit, how could we they do not acknowledge the virtues ment instruments. That trust fund make up that shortfall? Well, we could that we have of something that is in faces an enormous unfunded liability do so by cutting some government pro- the middle. under current law. It is not because of grams. If we cut out all the spending, The real solution to Social Security anybody robbing the trust fund. It is all the spending that the Federal Gov- has to be to fuse the best of the tradi- not because of anybody taking the ernment does on Head Start, the WIC tional program with some market-

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00038 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.094 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3553 based options, because it is possible, it not require deeper benefit reductions and of course the gentleman from Flor- is possible, Mr. Speaker, to establish than would otherwise be required. Let ida (Mr. SHAW) who spoke earlier, on personal accounts for younger Ameri- me repeat that. Does not require deep- what is a vital, important and out- cans, not for people who are already reer benefit reductions than would other- standing program for seniors. The gen- tired, not for people like me who are wise be required. But neither does it tleman has worked a long time on this nearing retirement, but for younger mean that no changes, no reductions proposal. I personally commend the people who will have time to invest in for future beneficiaries is going to be gentleman. We do not call the plans be- those personal accounts, who will have unnecessary. The gentleman from tween Members competing, we call time to see those accounts grow. Texas (Mr. STENHOLM) and I have never them complementary for a reason. We It is possible to establish those per- claimed that the reform plan that we are looking for solutions to real prob- sonal accounts, personal accounts of have put on the table is perfect. Mem- lems, and I salute the gentleman for which they have individual ownership, bers can go through the plan that I taking time for this discussion today. of which they have control of the re- have introduced with the gentleman Mr. Speaker, we have been joined by tirement income, of which they have from Texas (Mr. STENHOLM) and select the gentleman from Ohio (Mr. flexibility to decide how to invest that items that they want to criticize. We PORTMAN) who has worked tirelessly on and to change it as they get closer to went too far here, not far enough there. pension accounts, which are of interest retirement. That can strengthen and However, we need to examine plans in to all Americans who have actually improve the vital safety net protec- their entirety. How would the plans af- had a chance to build up their own tions that the Social Security system fect the future retirement income, the portfolios through IRAs and 401(k)s. has to provide. Federal budget, and the health of the The gentleman has been an important So none of the reform plans that I American economy. architect in not only emboldening know about are anything that ap- If Members determine that the ac- those plans to give more financial se- proaches privatization. It is simply the ceptability of reform based on adher- curity, but actually doing something wrong word. It is used as a scare word, ence to simplistic pledges, a pledge of even more meaningful for some of the and when we hear that, just remember no personal accounts or a pledge of no younger generations who may not have that it is being used as a scare word. changes to benefit levels, or a pledge of been able to afford to contribute the Privatization is the wrong description. no increase in taxes, then we are never $2,000 per year to their IRA by giving a It is the wrong word; but we ought to going to reach bipartisan consensus on catch-up provision that kicks in in frankly stop bickering about the label how we fix Social Security and how we later years so they are able to actually of privatization. pass legislation that will actually ac- add to their Social Security account We are suggesting that workers be complish that. through their IRA plan so their retire- given a degree of flex. That is what we Keeping Social Security intact for ment plan is more insured and more se- are really talking about, flexibility those who depend on it today, and for cure. with how they invest a small portion of those young people who are just start- Mr. Speaker, I yield to the gentleman their Social Security payroll taxes, ing out in life today and have some ex- from Ohio (Mr. PORTMAN). giving workers some flexibility to pectation that they should have some- Mr. PORTMAN. Mr. Speaker, I thank make some choices about their invest- thing from this system, it is a commit- the gentleman for that introduction, ments. We are not talking about dis- ment that none of us should ignore, and for having this Special Order to- mantling Social Security. We are talk- and we need to find a way to bridge the night. Nothing is more important to ing about investment flexibility. We gap between these generations. But the the future of this country than ad- are talking about ownership. We are fact is the Social Security system that dressing the retirement security needs talking about individuals having some we have today is vastly underfunded, of all Americans. control over their retirement options. We have spent a lot of time in this The directors of the Congressional and it will impose staggering financial Congress over the past 2 or 3 years Budget Office, the General Accounting burdens on younger workers and future working on ways to increase two of the Office, Federal Reserve Chairman Alan generations of workers if we leave it three legs of the retirement security Greenspan and many other policy ex- completely unchanged. stool. Those two legs are the employer- perts have all testified in front of var- Mr. Speaker, it is time to move past based system, which is expanding ious committees of Congress and the the demagoguery which has over- 401(k)s and expanding defined benefit President that we must make some whelmed the Social Security debate in tough choices to return Social Security the past, and work together to provide plans; and we have done a lot in that to solid financial footing. a secure retirement for all Americans. regard. Next week on this floor we will So, Mr. Speaker, what needs to hap- I believe the discussion we are having be taking up legislation to ensure that pen if we are going to have this debate, today that the gentleman from Florida those changes are permanent. which is so important to the survival (Mr. FOLEY) has initiated is a good dis- We have also helped with regard to of this program, we need to acknowl- cussion. I believe it is important that the second leg of that stool, which is edge there is no magic bullet. we begin this discussion today, and I private savings. We have expanded commend the gentleman for having from $2,000 to $5,000 the amount that b 1545 this Special Order and giving us an op- someone can put aside in an individual There is no free lunch, no free lunch portunity to talk about Social Secu- retirement account. We have been sure solution that is going to allow us to rity, the importance of Social Secu- through this process to also focus on provide 100 percent of promised bene- rity, that we attach to Social Security the third leg of the retirement security fits without trade-offs somewhere else. for people who are retired today, and stool, and that is the public pension But I do say that personal accounts can the importance of Social Security for side or the Social Security side. help make the task a lot easier for pol- young people who will depend on this There we have had less luck in pass- icymakers, and it can limit the impact system in the future. Both the current ing legislation because, frankly, it has that the deficit that we are talking retirees and those who are working but become, unfortunately, a very partisan about and the problems we see will will retire in the future, need to know issue. The reason I commend the gen- have on future beneficiaries. It would that the system holds promise for tleman from Florida (Mr. FOLEY) to- give them some hope by giving them an them. night for having this Special Order, investment that they are going to have I hope that this debate, this discus- and commend the President of the some return in their Social Security sion today, will begin the process that United States, and my colleagues who retirement that right now they cannot we need to have in this country of hav- spoke earlier, they are talking about look forward to seeing as we look down ing a national debate on how we fix it; this very critical third leg. People the road to the year 2070, to 2050, when but let us leave no doubt about one around this country depend on Social people today just starting out in the thing: Social Security does require fix- Security. Twenty percent of the sen- workforce will be retiring. ing. Doing nothing is not the option. iors in my district depend exclusively Including individual accounts, per- Mr. FOLEY. Mr. Speaker, I thank the on it, and that roughly $900 a month is sonal accounts in the reform plan does gentleman from Arizona (Mr. KOLBE), critical to their being able to live their

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.096 pfrm04 PsN: H13PT1 H3554 CONGRESSIONAL RECORD — HOUSE June 13, 2002 life with a little dignity after years and the analysis and look at it from an ob- I talked about my grandmother when years of hard work. jective basis. I opened, and I would like to talk about Mr. FOLEY. Mr. Speaker, if the gen- By 2076, a 33 percent reduction in my parents, Ed and Fran Foley of Lake tleman will yield, it is the security of benefits. Is that a good result? No. Worth, Florida. My father is 81, and I seniors we are here protecting. We are You could increase payroll taxes. will just leave it at the fact that my here protecting that valuable program. Again, payroll taxes are already too mother is younger than my dad, and I We are not changing their benefits; is high. We would have to have a substan- will not mention her age. I want to go that correct? tial increase in taxes. By the year 2041, home and eat over the weekend, and if Mr. PORTMAN. Mr. Speaker, the 16.9 percent increase, a 37 percent in- I mention her age on the House floor, gentleman is correct. What we are crease over today. There would have to she may be a bit upset. doing through these other two means, be a 16.9 percent payroll tax, which is a I suggest that they are both recipi- one, increasing what can be saved for 37 percent increase in payroll taxes by ents of Social Security. We want to un- retirement through a 401(k) or defined the year 2041. derscore to every senior like my par- benefit plan; and, second, improving By the year 2076, there would be a 52 ents, and much like my grandparent, what you can save individually percent increase in payroll taxes. we are not changing the benefits of So- through your personal savings. We are Again, to me these are not solutions cial Security recipients. We are not re- helping everyone to have a more secure that we want to have to fall back on. ducing them. We are not replacing retirement. We are going to continue Rather, we want to be proactive and them. We are not privatizing them. We to work on that. address the program so we can be sure are ensuring them. We are ensuring With regard to the third leg, Social that our seniors have peace of mind in that seniors across America can count Security, we are suggesting that the retirement that they so much deserve. on that check, whether it is direct-de- program needs to be strengthened and Here is the big picture on this chart. posited or comes to a mailbox near improved. Here are the alternatives. Right now we are here, and we have a their home. We are ensuring that every We can raise payroll taxes dramati- short-term surplus in Social Security, senior who has worked hard building cally, and already payroll taxes are the but soon the lines will cross. The bene- this economy, the greatest generation most regressive tax out there, already fits going out will be greater than the that served us in World War II, are too high. Most people around America amount of taxes coming in. Why? given the confidence by this Repub- pay more in payroll taxes than they do Again, because Americans are living lican leadership that we stand behind in Federal income taxes. Or, we can re- longer. It is a good problem, but a the pledge and promise that Social Se- duce benefits. We do not think that problem that we need to deal with; and curity would be there in their golden second, we have this large baby boom benefits ought to be reduced or payroll years. That is a gold-plated guarantee generation, my generation. Baby taxes ought to be increased to the sub- by this body. boomers ought to know that we are be- stantial level that they would have to We are not investing their funds in ginning to retire, and we are creating a be in order to sustain the program. In- the stock market. To the contrary, we huge problem for future generations to stead, we think we ought to look at are ensuring their success and survival. be able to fund this problem. That is more creative ways to be absolutely I reject the claims of the minority and why there is a $25 trillion shortfall sure that every senior has retirement suggest we are working productively to over time. ensure the continuation of this valu- security. This is what the President is talking The President’s principles that he able program. about. It is the right thing to do to has laid out are ones that most of us on For those who are disabled or sur- talk about this issue. It is the wrong vivors, children of people who have the Republican side support, that any thing to do to make this political and plan that changes Social Security be passed, who count on Social Security, partisan, to scare seniors. Do not scare our commitment is stronger than ever, voluntary, that it not affect any senior my grandmother. She is 97, and has who is retired or near retirement in and it is a bond we make with those worked hard during her life. She de- who are frail in our community that any way at all. Any benefits they get serves to know that check is con- now, they would get; but that we come need Social Security. So if you are dis- tinuing to come. She is one of those abled or a survivor, you can count on up with creative ways to ensure that people who is living longer, and de- this program is there in the future. the continuation of this valuable pro- serves to know that she is going to gram. I just saw a couple of charts as I was have security in her retirement. walking up that make this point very, The opportunity we have is to come b 1600 very clearly. First, what is the prob- together on a bipartisan basis and We are also telling current workers lem. The problem is the way Social Se- make a huge difference for the future that we are not going to tax them fur- curity was set up. It was a pay-as-you- of our country and our seniors. If we ther in order to ensure a political suc- go system. When FDR started this pro- allow this to become a political foot- cess formula for us. We are going to gram in 1945, we had 42 working Ameri- ball and just toss it back and forth make certain it works without bur- cans paying for the benefits of every across the aisle, or put our head in the dening hard-working young men and one retiree. Most people did not live sand and say there is no problem, we women who are earning their way and until age 65. Now the good news is that will be doing a great disservice to our supporting their families. people are living longer, more produc- future, to our seniors and to this great Today has been about speaking about tive lives. Also, we have this baby country. This is a challenge that this a greater point of view of protecting a boom generation that is beginning to Congress must take on. It is one that I generation who served us in a phe- retire. That means today there are believe we can take on again. The lead- nomenal way, many who led us out of only three workers for every retiree. ership of President Bush is very impor- the Depression and through World War By the year 2035, which is not too long tant in this, and I commend him for II, through Korea, some through Desert from now, there will only be two people making it one of the primary issues Storm, who because of disability are working. This is the demographic prob- that he took up not only in the Presi- now on Social Security. This is a gen- lem that Social Security faces. dential campaign, but since being eration that has brought this Nation to Again, the other two options that the elected has talked about increasingly. I the greatest place and the greatest other side of the aisle wants to rely on hope that we can join hands and come time on Earth. This is a generation is to reduce benefits, which would be, together and create a better future for that we should celebrate and support for seniors in my district and around all Americans. and applaud. Let us not demean the de- the country, would be a terrible result. Mr. FOLEY. Mr. Speaker, as we con- bate with the silly rhetoric of scare We would have to reduce benefits by 27 clude today, I thank the gentleman tactics. percent by the year 2041, and this is from Texas (Mr. ARMEY) for providing Again, I mentioned I come from Flor- based on data from the trustees of So- this time so Members can discuss at ida, and each political season I get cial Security, a nonpartisan group. great length this important, valuable ready for the attacks that run against This is not somebody who has an ax to and vital program for American sen- myself or Mr. SHAW suggesting some- grind. These are the actuaries who do iors. how we are going to take away this

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.098 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3555 valuable program. Fortunately, the eral others going. There are several summer days getting up in the morn- voters are smart enough to reject those starting also, and this one started last ing, going out to get the paper, looking election lies. They are election lies. I Friday. Many of these are being started up at the mountains, and seeing a do not like to use the word ‘‘lie’’ on the by arsonists. It is incredible, but that snow-capped mountain range in front floor, but I cannot characterize it any is what is happening in and around Col- of me in June or July. There is noth- other way because there is no factual orado. Of course, in other States they ing. There was nothing last Monday basis to them. They try to scare sen- are experiencing similar types of situa- when I went through this area. There iors. The last candidate for President tions. was no snow. There has been no rain, tried to scare seniors in my State of Now, every ounce of our effort at the and there are no prospects for rain that Florida, tried to win the election by present time should be and is directed we can see on the horizon. So that is scaring vulnerable seniors. To have a to trying to fight these fires, and that why we are going to have massive for- conversation about Social Security is certainly appropriate. There will be est fires, drought, hot weather and should not be about fright or fright- plenty of time for recriminations as to densely forested areas. ening people. It should be about uplift- how and what would be the best way to Now, here is where we can do some- ing them in this great hall of debate. deal with these things, what would be thing about it, and this is what is im- I choose the high road in this debate some of the things we can do to make portant for us to try and tackle, be- as does the majority leader and the sure that fires of this nature do not cause we do have some ability to deal Speaker and the majority whip and start again, at least to the extent we with this situation. We cannot, as I every member of our conference. We are able to prevent them. say, nor should we even try, to stop have heard from several today who This was started by a careless camp- natural fires from occurring. We sim- enunciated our plans for continuing er. He had a fire, illegally. We were at ply should make sure, to the extent and securing America’s future. Over a time that there were no fires allowed possible, that they occur in areas that the next several weeks we will con- in the national forest, no campfires have been managed, that is to say, tinue to engage in debate and respond whatsoever. But the law was dis- thinned; where the undergrowth of the to the charges by the other side of the regarded by some selfish and past 100 years of fire suppression ef- aisle. We are not going to sit back and unenlightened soul. The fire got out of forts, the result of fire suppression ef- take it anymore. I made that comment control, and within just really a very forts, has accumulated to the extent last week and I make it again. Bring short period of time it had already con- that we have now this tinderbox called your charges to this floor and we are sumed a good part of the forest around the national forest. it, and is now, of course, as I say, ap- ready. We will answer your rhetoric It really has been man’s ineptness, proaching 100,000 acres, if it is not over man’s inability to manage the forest with fact; and we will provide the in- that already, 100,000 acres. properly over the last 100 years, that formation so that seniors, as they sit Putting that in perspective, we are has helped cause this situation, our fire in their living rooms, know the truth. probably reaching the point when it suppression efforts, which has been the The truth is Social Security is a vi- would be about three times the size of main thing everybody has been focused tally important program, and we are the District of Columbia, just for peo- on for 100 years. here prepared to do our duties to en- ple to understand what a 100,000 acre This is as seen from the space shut- sure the continuation of this great pro- fire is. Combined, of course, with all of tle. This is the fire in Colorado. You gram. the other fires going on right now in can see the smoke plume and the fire I want to thank you, Mr. Speaker, Colorado, I am sure we are approaching down here. today for indulging and for all those that total. The fact is that there are fires all who participated and again my thanks Now, as I say, this fire was started by over the United States, of course. to the majority leader, the gentleman an illegal campfire that got away, that There are fires burning down there. from Texas (Mr. ARMEY), who recog- was left essentially unattended and got There are fires in several other loca- nizes, as he concludes his career in the away from its confined area. There will tions. But this is the one that is in- Congress as we adjourn this session, always be fires in the forest. That is credible. Here is the Glenwood Springs the value of this program, the value of part of the natural order of things. fire. This is the one I was referring to seniors, and our commitment to con- There is no two ways about that. We as the Hayman fire. This is my home tinue on leading this Nation in a finan- cannot and should not prevent all fires. right here. Down by Durango we have cially prudent and positive manner. So the issue here is not the extent to another fire, near Trinidad, Glenwood f which the fire that we are witnessing Springs, and over here by the Utah bor- COLORADO FIRES right now could have been prevented. der, just inside the Utah border. These Of course, it could have been pre- are the fires in Colorado at the present The SPEAKER pro tempore (Mr. vented, if someone had not carelessly time. KELLER). Under the Speaker’s an- ignited a fire at a campground. But, be- Mr. Speaker, the fact that for 100 nounced policy of January 3, 2001, the yond that, it could not have been pre- years we have attempted to follow a gentleman from Colorado (Mr. vented even if we had done a lot of policy to suppress all fires has created TANCREDO) is recognized for 60 minutes. work in that forest, because right now, a devastating situation, a very, very Mr. TANCREDO. Mr. Speaker, as we of course, we are in the midst of a hor- dangerous situation in our forests. stand here tonight on the floor of the rendous drought. It goes all the way, Suppression has meant that we have House, fires are raging in my State of frankly, from the Canadian to the allowed old timber to fall, to fall to the Colorado, fires so devastating, fires so Mexican border. ground, to decay and to dry out, and great in proportion. Historically, they The middle part of the United States that becomes part, of course, of the are great in proportion, and they are so is facing a drought, is facing drought fuel. We have allowed a tremendous big that they can be seen, as we are conditions that are unprecedented in amount of small saplings to grow, and told now, from the Space Shuttle. The recent history. Certainly in the last 100 that has become part of the fuel, be- smoke and ash from the fires in Colo- years we have not seen anything like cause they stay relatively small. The rado can be seen by the people on the this. The snow pack is very low. I was forest canopy does not allow for them Space Shuttle. amazed on Monday when I had the op- to grow quickly. It becomes part of the These are in every sense of the word portunity to fly into the fire area and undergrowth. catastrophic fires. The one burning observe the fire, to observe the dam- When it gets like this, when it gets closest to my home, the Hayman fire, age, I was amazed as I looked at Pike’s as dry as it is now, that is what we is over 100,000 acres, I understand, and Peak, which is not too far from the site could certainly call a tinderbox, and it will probably be burning all summer of this fire, and saw just a few ribbons takes very little to set it off. Of course, long. Hard for people to understand of snow still there. Usually, you can lightning will do it. Time and time that, hard for anybody to get a handle see snow on Pike’s Peak in July, some- again, that is the natural way of fires on that concept; but it will probably be times August. to start in the forests. burning all summer long we are told, I have lived in Colorado all of my However, when a forest has been and that is just one fire. There are sev- life, and I can remember many, many thinned by our efforts, by the efforts of

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00041 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.100 pfrm04 PsN: H13PT1 H3556 CONGRESSIONAL RECORD — HOUSE June 13, 2002 the Forest Service or anyone else, called the Bucktail fire in Colorado. It enormous. It will be much greater than when the forest has been thinned, it is came up to and stopped, essentially we can possibly imagine, because this simply a logical situation where you stopped at the treated areas. The fire is a bigger fire than we can possibly will have less opportunity for these comes down out of the trees, goes on to imagine. So all of the things that hap- catastrophic fires to burn as quickly as the ground and eventually burns itself pen as a result of a catastrophic fire they do and as hot as they do. out in these treated areas. like this are just waiting for us to try These fires that are burning now are It is amazing to see. I have seen it and deal with as time goes by. There so hot that they scorch the Earth with my own eyes. I saw it 2 weeks ago are hundreds and hundreds of fire- below them. Three or four inches down when we were in Colorado and went fighters on the line, but there is little there will be nothing. When this fire back to the district and were looking that they can do. The breadth of the passes, there will be nothing there but at the effects of other fires, earlier fire is so wide, the intensity so great what we cannot really call Earth, be- fires, High Meadows and the Snaking that there is really little they can do. cause there is no organic material in fire, they were called. And we could They are dropping, of course, retard- it. It has been scorched to 3 or 4, some- stand on a line and look straight down ant, they are dropping water; but a lot times 6 inches deep. Nature lays down that line and on the right-hand side of the water I am told that is dropping a hyperbolic blanket below that where the area had been treated, the out of the buckets that are being car- through which nothing can permeate, fire had stopped. All the way on the ried in there is actually evaporating left-hand side for as far as one could so regardless of how much rain you get, before it hits the fire, it is so hot, the see, everything was destroyed; just it does not let it go farther down, be- air is so dry. This is a horrendous fire. cause nature is trying to actually save these black spindles sticking up out of a lunar landscape. Everything was de- I want to emphasize that I do not the soil below that layer of imper- stroyed and, as I say, even the ground blame environmental groups for start- meable matter. ing this fire. Of course not. They had But what happens above that, of was seared. We got to that line, and it dropped down out of the trees just like nothing to do with the cause of the course, is the next time it does rain, all it is supposed to and burned some cover fire. It is just that we could have had of that will wash away. It will wash on the ground and burned itself out. perhaps a much less severe fire had we down the sides of the slopes into the Now, this fire, I do not know how been able to get in there and thin this tributaries; and, in this case, it will much less severe it would have been land. run into the Denver water supply, the had we been able to get in there and do Now, I am proposing a piece of legis- reservoirs that form the water supply some of the things that the Forest lation that we started on 2 or 3 weeks for the Denver metropolitan area. Service had planned on. There was only ago; it was before this most recent fire So once this fire is put out, whether one area, a roadless area, that was in started. It was after we went up and it is in 90 days from now or not, wheth- the middle of this Hayman fire area looked at the results of the Buffalo er it is all summer long, whenever it is which had been identified by the Forest Creek and High Meadows and Snaking put out, that is only the beginning of Service as the place in which they were fires in Colorado. There were two the problem. Erosion then begins to going to do thinning. About a year and things that I was confronted with when occur, and the next time it does rain or a half ago when they were ready to I got up there and when we were talk- snow all of this will move, all of the start the job of thinning that area, a ing about it. One was that the fine for material will move, the ground cover group of environmental organizations people starting illegal fires in the for- will slide down and end up as silt in filed an appeal to stop them, stop the est, illegal camp fires in a Federal these reservoirs. Forest Service. This is modus operandi; area, anyway, is ridiculously small. It b 1615 it happens all the time. The Forest was like $25 in that part of the forest It will cost millions of dollars. We Service goes into negotiation with the where I visited, the Pike National For- have already spent, I think, approach- environmental groups to try and solve est that I visited a couple of weeks ago; ing $40 million for this fire. It was $20 the problems that are presented to and I think it is about $50 in the part them, try to meet the needs of the en- million the last I looked; it is probably of the forest that is presently on fire. A vironmental community in their plan double that now because it has been $50 fine or a $25 fine for starting some- to remove these trees, in the Forest twice as long since I heard that figure; thing that could lead to this kind of Service plan to remove these trees and $40 million for the fire, but that will be enormous devastation. That has to be underbrush. It goes on negotiating for dwarfed by the amount of money that dealt with. That cannot be allowed to about a year and a half. We come to we have to spend in order to try to re- continue. the end of that period of time when we pair, to the extent we can, the ground We actually had instances. I was told think there is an agreement with the itself, and also to filter out the Denver by the fire people, by the fire rangers environmental community on exactly water supply. up there 2 weeks ago that we had peo- how the efforts to thin that area of the Now, there are ways in which man ple who would chip in. When a fire forest should go on, and the next thing can positively affect the forest envi- ranger got there and told them they we know, they file another appeal, had started a fire illegally and the fine ronment. There are ways that we can stopping the whole thing. now deal with the land that can reduce We were unable to get in there, was $25, the people just reached into the severity of the fires. We are never therefore. The Forest Service was un- their pockets and everybody chipped in going to, as I say, nor should we try, to able to do any thinning in this par- 5 bucks and they handed him the stop all fires. That is really what has ticular part of the forest, and I am re- money. So what? For 25 bucks. The gotten us into the situation we have ferring to this roadless area. other day when I was up there, when I now. We know that is wrong. But we Well, there is nothing to really worry was up there on Monday at the new also know that to the extent that we about now. There is no reason for the fire, a forest ranger told me that she do go in and thin out a forest area, we environmental groups to file any other had talked to somebody on the phone, actually accomplish some very positive appeals, because the forest that they I do not remember if it was a day or so goals. Fire will not burn as quickly, it were concerned about is gone. It is all before, who wanted to know if they will not burn as hot, it will not burn ash. And as I say, it looks like a lunar could pay the fine in advance, like a through the forest if, in fact, it comes landscape. It is devastating beyond fee, for instance. In this case it was 50 to an area that has been treated. anybody’s ability to describe it accu- bucks, and they wanted to just send Now, this is very difficult to see and rately, I guess; but one has to see it to them the ‘‘fee’’ or the fine to pay in ad- probably impossible, but I will try, believe it. Twenty-one homes so far, vance to go up and start a fire in the nonetheless, to explain what we have probably more than that, but that is national forest when it is in the middle here, a couple of pictures of where what we know so far that are gone; at of the most horrible drought we have there was treated area and where there least 5,000 people evacuated, 40,000 peo- had in 100 years. No one is ever going was not. The fire burned right up to it, ple getting ready to evacuate. to lose money in trying to underesti- burned every single thing in its path in The impact, as I say, on the environ- mate the stupidity of people like this. the area that was untreated. This is ment as a result of the fire will be It is amazing.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00042 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.102 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3557 So I have proposed legislation to in- There is another bill, therefore, that forest will return to anything that crease that to a $1,000 fine and the pos- we introduced that tries to accommo- looks like a forest. We will all be long sibility of a year in jail if you end up date the needs of everyone involved gone, and our children will have very doing something like this fire, or caus- here. It is called the charter forest little opportunity to enjoy the wonders ing something like this fire. That is for idea, the charter forest plan. It was of this magnificent natural wonder- starters. originally proposed by the President. land. So I hope that we can do that Then we tried to deal with the issue The concept was proposed by the Presi- quickly. of, again, what were the reasons, what dent. We have taken it, I guess this is Now, there is one other area, and this were the problems that prevented the the first such attempt in the Nation to leads me to the next part of my discus- Forest Service from being able to get actually write a Forest Service plan sion, which will surprise no one; it has in there and clear the land. They really placed on a charter forest. The idea is to do a little bit with immigration re- revolved around two things: internal this: that the local community and the form. There is another forest that has inertia within the Forest Service, in- Forest Service will get together on a suffered severe fire damage in the last ternal bureaucratic problems, process management plan. Everybody will be several months. It is the Coronado For- problems; it is called analysis paral- at the table during the discussion: en- est in Arizona. I had gone down there a ysis. That is the phrase they use to de- vironmental groups, business groups, little bit before I went to visit the for- scribe it. Because they spend days, local authorities, county, State, and est in Colorado; actually, I am sorry, it months, years in the analysis of minu- municipal officials, and, of course, the was about a month before, and we went tia because there might possibly be a Forest Service. Everyone will have the down there because I am a member of challenge, there might possibly be a opportunity to develop a forest plan, the Committee on Resources and we court challenge, there might possibly and it will be managed at the local had heard about the incredible environ- be an appeal, so everybody spends 40 or level, for the most part; and it will be mental damage that was being done in 50 percent of the time they have, in- freed of many of the bureaucratic ob- that area and to the Coronado Forest. stead of actually managing the forest, stacles that presently stop other forest b 1630 writing reports that are designed as management plans from being imple- Now, this damage was many-faceted. sort of CYAs, if you will, in case some- mented. And we will be able to then ac- It was actually the result of literally body has an objection to what you complish some of our goals in terms of hundreds of thousands of people com- want to do, and nothing ever happens. positive, healthy forest management. ing through this illegally, coming from That is internally. I stress that everybody will have a Mexico into the United States and Externally, we have groups, organiza- role to play; everyone will have the using the rough terrain and the heavy tions that are dedicated to stopping ability to discuss the concerns they brush to stay undetected while they any sort of activity in the forest car- have about the forest plan; but once it came through, either individually ried on by mankind. There are the ex- is adopted, then that is the way in seeking whatever they were seeking in tremists on the one side that say there which that forest will be operated for America, most of them I am sure look- is absolutely no forest that really man at least 10 years. Then we will review ing for jobs, and/or bringing in nar- should be in. Forests are nature’s pre- it, we will review it actually midpoint cotics, illegal drugs. serves and man does not have a place at 5 years and again in 10 years to see The area has now become the most there. And they want to stop any activ- how well that plan has worked and heavily trafficked area along the bor- ity whatsoever: no road building, no whether or not the whole concept of der for people coming in illegally and logging, no recreation. Just stay out. charter forest is viable. bringing in illegal drugs. What we saw Forests are not for people. That is It is built really on the charter were the folks on the border doing yeo- their motto. Forests are for animals school concept. That is where it gets man’s work, the Border Patrol, in try- and other forest denizens. And their its name. Because we have seen for ing to interdict this flow of both people continued legal battle with the Forest years and years and years that public and drugs. Service always spills into courtrooms schools are unable to actually accom- I think something like 90,000 pounds or through the bureaucratic process of plish their tasks many times because of marijuana and I have forgotten how appeals. of the bureaucratic problems they con- much of cocaine and heroin have been So what we have is between the For- front, that people taking the responsi- confiscated already this year, but it est Service’s inability to act just, as I bility into their own hands for their still is coming; and it comes as a result say, internally, and the lawsuits filed children’s education will start charter of people carrying about 60 pounds of by groups like the Wilderness Society schools. They write a charter and they the narcotics on their backs in these that filed the appeals on the thinning say, here is the kind of curriculum we homemade backpacks. They come proposals for the Pike National Forest. want, here is the kind of teachers we through the forest. The two things combined are deadly. want, here is the length of school day They come by so many numbers, in They lead to this. This is the result. we are going to have, here is the num- such large numbers, that of course Again, not fires that they start, simply ber of school days, here is where the they begin to wear footpaths through- fires that grow faster and are more se- setting is going to be; and they write out the forest. This is a very delicate rious and more severe than they other- their own school charter and run it ecosystem. It does not take much, it wise would have been. themselves at the local level, and we does not take many feet on the ground What we are hoping to do is actually free up and take away many of the reg- to actually wear a path into the ground return parts of the forest, as much as ulations and give them a much broader in a very short time; and it does not go we can, to a more natural state by hand in actually running this school. away for a long, long, long, long time. thinning. It is imperative that we do Well, that is exactly what we are It is almost like the tundra in that re- this and do it as quickly as possible, or talking about with a charter forest. We spect. this is going to be the way in which our are going to reduce the regulatory bur- And just then, you will see that after forests will be consumed in the next den, and we are going to add responsi- they follow that path for a while, they year or so. We have already burned bility to the people at the local level to will move off because they think that more acres in Colorado this summer, manage the forest. there are sensors that have been and it is not even mid June, than we So I hope that these concepts will placed, and sometimes there are sen- did all of last year, and I am sure that move forward. And I hope that we will sors that have been placed by our Bor- we are at historical levels. I do not be able to quickly get into the forests der Patrol people to try to catch them, think we have ever had as much land all around this Nation. If we started to- so they move over a little and create on fire in Colorado. I believe that that morrow, of course, it would take us another path. When we fly over that is what is going to happen all over the many years to really reduce the fuel forest, we look down and what we see is West as this drought continues, and as loads throughout the forest. But we a spider web of paths, paths through we keep putting obstacles in the path have to start somewhere. We cannot let the forest. They are also bringing both of the Forest Service to try and deal fires like this do it for us because, of mules and horses through loaded with with this. course, it will be 100 years before this narcotics.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00043 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.104 pfrm04 PsN: H13PT1 H3558 CONGRESSIONAL RECORD — HOUSE June 13, 2002 Then they will get to a certain place Now here is an intriguing aspect of back when he confronts this kind of in the forest sometimes 5, 10, 15 miles it. We were told by the forest manager situation. For one thing, they are up, and they will unload their goods. there that for many of the fires that outgunned. Another truck will come in on a road they fight they cannot even use the One of the peculiar things we have that is not a forest road, it will just be typical firefighter methods. They can- done in order to satisfy some of the a road that was created by so many not fly in slurry and drop it because concerns expressed by the Mexican trucks coming in, pick-up trucks, there are so many people in the forest, Government is that we have taken Suburbans, large vans, SUVs, and they so many illegals coming through the many of the M–16s away from our Bor- will come in and load the drugs on forest, that it actually would harm der Patrol people, taken them away these trucks and take them out of them. It would get on them. This re- and changed them into single-shot as there. tardant material might get on them, opposed to automatic weapons, so we Of course, all that activity causes and we would get sued because we were are outgunned at the border, quite damage. There are roads all over the trying to put out a fire; we dropped the frankly, and certainly outmanned. Coronado which are not Forest Service fire retardant, but we have illegals He turned around to leave, and a shot roads. They are simply drug dealer coming through. rings out and goes through the back roads, but there are more of them than I am sure Members are aware of the window of his vehicle, this is the Bor- there are Forest Service roads. There is fact that not too long ago a family of der Patrol vehicle, goes through the more activity in that forest with drug 11 people who died coming into the back window, hits a wire cage that sep- dealers than there is of any other United States, coming in illegally, arates the front seat from the back and thing; more than the campers, more they died of thirst and dehydration, or ricochets off and goes out the right than the hikers, more than the bikers. in some way of the elements coming rear window, certainly coming close to There are far more people coming across the desert; and we are being killing this agent, this Border Patrol through that place with guns pro- sued by $3.75 million for each one of agent and officer. tecting drug loads than there are peo- them, as if it was our fault; we have a Now, no one had heard about this. ple coming through to enjoy the sce- burden, and this is our responsibility. This had happened on a Friday. It was nery of a national forest; one of the Well, we cannot even fight the fires not until Tuesday that I got an e-mail oldest national forests in the United because there are so many people. We message from a Border Patrol officer in States, I should add. It was created, I do not even put people up there at the area telling us about this. I, of think, in 1903. course, think that this is incredible. I That is not all that they have done to night to fight the fires because there think it is almost enormously chal- the forest. This packing material are so many people coming through lenging to the United States how this where they carry these backpacks with guns protecting drug traffickers. And about a little over 3 weeks ago, could happen, and how we do not say a made of this nylon fiber, where they we had an incident that was very pecu- thing about it in the United States. unload, they just stack up these home- No news program covered this; no made backpacks that are nothing but, liar, and unfortunately, not all that newspaper in Arizona covered this. I just like I say, these kinds of nylon unusual. I thought it was, when I first mean, do Members not think it is news- rope things, but they will be coming in heard about it; but come to find out it worthy, Mr. Speaker? I certainly do. I with huge stacks of them. The birds is not all that odd. Here is what hap- cannot imagine this happening. Let us come and take it, build their nests out pened. of it, and sometimes of course they get It is a Friday, as I say, maybe 3 turn everything around. Let us say entangled in it. There are all kinds of weeks ago. Just south of Ajo, Arizona, armed military of the United States environmental problems. The trash is on the Tohono O’odham Indian reserva- went into some other country and incredible. tion, the Indian police came across a started shooting at their federal police. As we ride through the forest, as I Mexican humvee with Mexican mili- What do we think would happen? Do we was able to do on horseback the first tary markings on it, and Mexican mili- think we would be hearing about that day, then we flew over by helicopter tary inside of it. This was inside the from the state department of the coun- the next day, but the first day every- United States of America. This was on try where this incursion occurred? I where we looked along these paths the Indian reservation, the Tohono think so. were empty bottles from water, plastic O’odham Indian reservation. It turns out we have had 118 incur- water bottles everywhere, clothes ev- There was a confrontation, and fi- sions of a similar nature. Luckily, erywhere, tin cans where they made nally the humvee turned around and most of them did not involve firearms, campfires and just cooked something went away and went back to Mexico. or they did not involve the discharge of over a fire in tin cans, and they were The Indian police called the Border Pa- firearms. About 90 percent of these in- strewn all over the place. This was not trol and the INS, and we sent the cav- cidents were with people carrying guns, a national forest; it was a national alry and got down there, and the Mexi- but only a small percentage of these dump. can military vehicle had turned things actually ended up in firearms Now, the other thing that was hap- around. What in the world were they being discharged. pening, of course, was that these fires doing there? What is going on? However, 118 times since 1997 we have that they were setting at night, these A little bit later in the day it turns had incursions into the United States campfires illegally set by people com- out we interdict a drug shipment. We by Mexican military troops or mem- ing in illegally, were catching fire the seize it, it is 1,200 pounds of narcotics, bers of the Mexican Federal police, 118 next day. These people would walk probably marijuana, I am not sure, times. These are confirmed, by the away from it and not pay much atten- that were coming through in that same way. I am told by the Border Patrol tion to it; and of course it would catch area. Hmmm. Coincidence? It could be. that there are far more times than that fire. This area is also a place of incred- We have a Mexican military vehicle in that this has happened, but the status ible drought. It is a desert anyway, but the United States; we have this ship- of ‘‘confirmed’’ is difficult to get, so 118 right now it is even more dangerous in ment of drugs coming through a little is what we have confirmed. terms of fire. bit later that we interdict. I kept saying, what are you talking The day we left there a month ago Later on that night, the United about, 118 times people have come into Sunday, a fire broke out that by the States Border Patrol was going along the United States from a foreign coun- time we got back here had already con- the border, and it comes across that try? Why, I said? Were they lost? And, sumed 35,000 acres. There was another same or another humvee of a similar of course, there were chuckles around one just a couple of weeks ago that type, we do not know which because the table. Everybody thought that was started the same way with people com- they all look alike, but there is Mexi- pretty humorous that I would ask the ing through there illegally, people can military inside and Mexican mili- question. coming into the United States ille- tary markings on it. But I said, I do not understand it. gally, carelessly starting these fires, They are ordered to turn around and Were they lost? What were they doing walking on and destroying part of the go back. The Border Patrol agent is in the United States? The answer given forest. under orders to turn around and go to me every single time by the people

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.106 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3559 down there was, it is drug related. It is are doing to stop these events. He did possibly defend our borders, can we? the opinion of almost every single one, not write me back. I got a letter back We cannot possibly defend 5,500 miles no, not almost, but of every single per- from the ambassador from Mexico that of border. You know what? We can. We son that we asked on the border as to said we do not like the tone of your let- choose not to. Can we make so it is im- what was the nature of these incur- ter and these incidents are being dealt possible for anybody coming into the sions, why would we have Mexican with. United States and do us harm? No. I military, Mexican federal police in the I am amazed that I have to sort of know we cannot seal the border. It is United States, and they said it is be- talk about this on the floor of the impossible. It is impossible. We would cause they were either protecting or House to let people know what has hap- not want to. There are trade issues and creating a diversion for, the same pened. It should be a matter that is on all the rest of that stuff. But can we do thing, protecting a large drug shipment every single news program in the more than we are today to protect our that was going through. United States. It should be something borders? Yes, we can. They are not there all the time be- we talk about in the newspaper, some- The President made a good first step cause most of the drug shipments are thing we talk about in our committees, when he announced last week when he relatively small. It is a few people car- in the Committee on Armed Services, is asking for the Congress to take ac- rying these 60-pound backpacks, and in the Committee on International Re- tion and create the Homeland Defense there maybe 20 of them. They are usu- lations. We should be discussing these Agency that includes all of the dis- ally preceded by a guy with an M–16 things. We are not because we know parate parts of border security. I am and followed up by a guy with an M–16 that this is a very dangerous situation, all for it. I commend him for doing as they go through. very touchy situation, very sensitive. that. I will do everything I can to sup- Imagine Mom and Dad camper at the Why is it sensitive? It is sensitive be- port that effort. I hope that the Con- forest there at the campsite, and all of cause if the American public knew gress of the United States will act a sudden going across the parking lot about these things, the extent to which quickly to implement it. That will not were 20 people, going across with nar- they exist, combined with what the be easy. cotics in their backpacks, and followed American public already knows about We all know here that one of the by somebody with an M–16. It would be the porous nature of our borders and major obstacles to surrendering a little an interesting sight to behold, but I the ability for people to come across part of your turf is there are egos in- think a little more than they were bar- them at will and maybe to do us great volved, and God forbid that anybody gaining for when they bought their harm, that the American public would think that there are people around parks pass. rise up and demand from their rep- here with big egos. But let us face it, resentatives that they do something to turf battles here are the deadliest and b 1645 secure this border, our borders. And I nastiest thing you will ever see. But that is what is happening in the do not mean just the border between This will be a massive turf battle be- forest and it is actually being abetted the United States and Mexico. I am cause we will take agencies away from by the Mexican government. This is in- talking about the border all the way a committee of reference and put them credible and yet we do nothing about around this country, north, south, east over here, and every chairman will be it. The forest is ablaze down there just and west. very upset about the fact that they are like ours, not to the same extent, but We have to do far more than we have losing their little bit of power. It will it is ablaze. But why will we not say done to secure those borders. We have not happen easily, but it is our respon- anything about that forest? sent troops thousands of miles away to sibility to do it. We are not at the end It is also, by the way, closed. They defend the borders of other countries, of the road there. There are other have closed the Coronado to anybody but we refuse to put troops on our own things that can be done. coming through. No more tourists com- border to defend our own country. Does Certainly the military can be imple- ing through. But of course, they cannot this make sense to anyone? The de- mented in a much better way than we close Coronado to the illegal traffic fense of this Nation, as I said a hundred have used them so far in the protection coming through. They can only close times, begins at the defense of border. of borders. We will have more to say the Coronado to the people who want And if you do not think that we have a about this issue next week. But for the to just recreate there. But it is too problem just because people are com- time being, it behooves us, it seems to dangerous. The fire danger is too great. ing here illegally and they are just be- me, to do everything we can to protect The danger also of confronting some- nign, they are just looking for jobs and and defend these borders. And although body that is armed is too great. why try to stop them, well, you are there are plenty of people who do not The forest manager of that area told right. Most people coming into the like it, plenty of people here in this me that his greatest nightmare is that country illegally are just looking for body, even in the administration, plen- one of these days there is going to be a jobs and why try to stop them? But a ty of people in Mexico, maybe in Can- shootout, there is going to be some lot of people are coming in with dan- ada, who want to see open borders, the sort of event that occurs that con- gerous stuff on their backs, in this elimination of borders, it is such a nice fronts tourists and/or some of his own case, dangerous narcotics on their idealistic concept, no borders, it is people with people taking narcotics back. kumbaya time, everybody grabs hands through there and somebody is going What is to say the next person who and sings, and why can’t we all just get to get killed. It almost happened, like wants to do something to the United along, as the old saying was. I say, about 3 weeks ago on a Friday States like a terrorist attack will not Well, you know what, there are rea- when the Federal border patrol agent bring in something a heck of a lot sons for borders. There are reasons. was almost killed. But we hear nothing worse on their back? And what is to And the idealism of libertarian concept about it. stop them? of open borders just does not fit with The reason we hear nothing about it I guarantee you if you look at the the real world. September 11 of last is because it is a very sensitive topic. border you will find there is nothing to year should teach us the importance of When I called the State Department stop them. It is 5,500 miles, some delin- borders and well-defended borders. It and asked them about it, they said, eated or demarcated by barbed wire should teach us the importance of try- Congressman, we are taking this up at fence and periodic ports of entry. As if ing to identify who comes into the the highest levels of government. I anybody coming into the United States United States and why and for how said, How long have you been taking illegally is going to go through the long and what are they doing here once this up? This has been happening since ports of entry and say can I come in. I they get here, and do they leave when 1997. When do you think we are going just do not have a pass right now. Of they are supposed to? to get an answer? course not. Other countries are able to handle I wrote a letter to the Mexican Presi- Why do you not walk a mile down the that. You would think a country the dent Vicente Fox and said, I would like road and walk across the line into the size of the United States with the re- to know what you know about these United States? You can do it. There is sources of the United States would fig- events. I would like to know what you no problem. Why? Because we cannot ure out a way to actually identify the

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00045 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.108 pfrm04 PsN: H13PT1 H3560 CONGRESSIONAL RECORD — HOUSE June 13, 2002 people coming in, determine how long Mr. FORBES (at the request of Mr. culture, transmitting the Department’s final they are going to be able to stay here, ARMEY) for today on account of his rule—Citrus Canker; Quarantined Areas and determine when they leave. And if daughter’s high school graduation. [Docket No. 02–029–1] received May 16, 2002, they do not leave, find them, deport pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- Mr. MCINNIS (at the request of Mr. mittee on Agriculture. them. ARMEY) for today on account of trav- 7368. A letter from the Congressional Re- You would think we would be able to eling to inspect ongoing fire damage in view Coordinator, Department of Agri- do that. It is a big country. It would be the district. culture, transmitting the Department’s final hard, but it is not impossible. We can f rule—Importation of Used Farm Equipment do it, Mr. Speaker, and we must do it. From Regions Affected with Foot-and-Mouth That is the thing. We have no options, SPECIAL ORDERS GRANTED Disease [Docket No. 01–037–1] received May really, because frankly our responsi- By unanimous consent, permission to 16, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to bility as a Congress and as a Federal the Committee on Agriculture. address the House, following the legis- 7369. A letter from the Congressional Re- Government is primarily to defend the lative program and any special orders view Coordinator, Department of Agri- lives and properties of the people in heretofore entered, was granted to: culture, transmitting the Department’s final this country. That is number one. All (The following Members (at the re- rule—Imported Fire Ant; Addition to Quar- of the other stuff we do around here is quest of Mr. PALLONE) to revise and ex- antined Areas [Docket No. 01–081–2] received not as important. The hundreds of mil- tend their remarks and include extra- May 16, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Agri- lions of dollars, the hundreds of bil- neous material:) lions of dollars we have appropriated to culture. Mr. BONIOR, for 5 minutes, today. 7370. A letter from the Congressional Re- the Department of Health and Human Mr. FILNER, for 5 minutes, today. view Coordinator, Department of Agri- Services and the Department of Edu- Mr. PALLONE, for 5 minutes, today. culture, transmitting the Department’s final cation and the Department of Trans- Ms. CARSON of Indiana, for 5 minutes, rule—Oriental Fruit Fly; Removal of Quar- portation, all of that money, really and today. antined Areas [Docket No. 01–080–2] received May 16, 2002, pursuant to 5 U.S.C. truly, although some of it may be well Ms. NORTON, for 5 minutes, today. 801(a)(1)(A); to the Committee on Agri- spent, the fact is it has nothing to do Mr. LANTOS, for 5 minutes, today. with the primary goal of this country culture. Mr. HOYER, for 5 minutes, today. 7371. A letter from the Congressional Re- and the Federal government, I should Mr. GREEN of Texas, for 5 minutes, view Coordinator, Department of Agri- say, the responsibility of the Federal today. culture, transmitting the Department’s final Government. Nothing to do with that. Ms. KAPTUR, for 5 minutes, today. rule—Change in Disease Status of Slovakia But it has everything to do with our re- (The following Member (at the re- and Slovenia Because of BSE [Docket No. 01– sponsibility to establish border secu- 122–2] received May 16, 2002, pursuant to 5 quest of Mr. WILSON of South Carolina) U.S.C. 801(a)(1)(A); to the Committee on Ag- rity. to revise and extend his remarks and I have talked on this issue many riculture. include extraneous material:) times and at great length, and I can 7372. A letter from the Assistant Secretary, Mr. JONES of North Carolina, for 5 Department of Defense, transmitting the De- only hope that we have moved the minutes, June 17. partment’s FY 2001 Chief Information Officer process along a little bit and that we Annual Information Assurance Report, pur- are going to take steps soon to actu- (The following Member (at his own request) to revise and extend his re- suant to 10 U.S.C. 131 Public Law 106—65, sec- ally do something to secure those bor- tion 1043; to the Committee on Armed Serv- ders. And as I say, I am very happy marks and include extraneous mate- ices. with the President’s proposal for con- rial:) 7373. A letter from the Under Secretary, solidation of activities inside the Mr. CUMMINGS, for 5 minutes, today. Acquisition, Technology, and Logistics, De- f partment of Defense, transmitting a Report Homeland Defense Agency. on Activities and Programs for Countering These are difficult times and we are SENATE ENROLLED BILL SIGNED Proliferation and NBC Terrorism; to the challenged as perhaps we have never Committee on Armed Services. been challenged before. Because even The SPEAKER announced his signa- 7374. A letter from the Director, Corporate in wars of the past we have been able ture to an enrolled bill of the Senate of Policy and Research Department, Pension to know exactly where the enemy was, the following titles: Benefit Guaranty Corporation, transmitting confront them wherever they are, have S. 2431. To amend the Omnibus Crime Con- the Corporation’s final rule—Benefits Pay- the battle. We know who wins. We trol and Safe Streets Act of 1968 to ensure able in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer know who loses, and at the end of a pe- that chaplains killed in the lone of duty receive public safety officer death benefits. Plans; Interest Assumptions for Valuing and riod of time, thank God, the enemy Paying Benefits—received May 16, 2002, pur- surrendered and we know victory has f suant to 5 U.S.C. 801(a)(1)(A); to the Com- been achieved and we can come home ADJOURNMENT mittee on Education and the Workforce. and begin our lives anew. But this is a 7375. A letter from the Director, Office of Mr. TANCREDO. Mr. Speaker, I move different kind of war. We will never Integrated Analysis and Forecasting, EIA, that the House do now adjourn. know perhaps when the battle is over Department of Energy, transmitting notifi- The motion was agreed to; accord- cation that the Energy Information Admin- with. We are challenged in a way we ingly (at 4 o’clock and 57 minutes istration’s (EIA’s), ‘‘Performance Profiles of have never been challenged before as Major Energy Producers 2000’’ is being re- Americans. p.m.), under its previous order, the House adjourned until Monday, June leased electronically on the World Wide Web; It now behooves all of us in this body to the Committee on Energy and Commerce. to take the important steps that have 17, 2002, at 12:30 p.m., for morning hour 7376. A letter from the Director, Regula- to be taken to secure those borders. debates. tions Policy and Management Staff, Depart- Even then, as I have said a hundred f ment of Health and Human Resources, trans- times, it will not assure us that some- mitting the Department’s final rule—Over- EXECUTIVE COMMUNICATIONS, the-Counter Human Drugs; Labeling Re- one does not get through; but you can ETC. do at least this. You can say to your- quirements; Partial Delay of Compliance Dates [Docket Nos. 98N–0337, 96N–0420, 95N– self, I did everything I could as a Mem- Under clause 8 of rule XII, executive communications were taken from the 0259, and 90P–0201] (RIN: 0910–AA79) received ber of this Congress, as the President May 14, 2002, pursuant to 5 U.S.C. of the United States, I have done ev- Speaker’s table and referred as follows: 801(a)(1)(A); to the Committee on Energy and erything I could possibly do to secure 7366. A letter from the Administrator, De- Commerce. our borders and to make sure some- partment of Agriculture, transmitting the 7377. A letter from the Regulations Coordi- thing like this never happens again. It Department’s final rule—Raisins Produced nator, Department of Health and Human could; but on the other hand, we need From Grapes Grown in California; Reduction Services, transmitting the Department’s in Production Cap for 2002 Diversion Pro- to do everything that we can do. ‘‘Major’’ final rule—Medicaid Program; Med- gram [Docket No. FV02–989–2 FIR] received icaid Managed Care: New Provisions [CMS– f May 16, 2002, pursuant to 5 U.S.C. 2104–F] (RIN: 0938–AK96) received June 13, LEAVE OF ABSENCE 801(a)(1)(A); to the Committee on Agri- 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the culture. Committee on Energy and Commerce. By unanimous consent, leave of ab- 7367. A letter from the Congressional Re- 7378. A letter from the Secretary of the sence was granted to: view Coordinator, Department of Agri- Commission, Federal Trade Commission,

VerDate 11-MAY-2000 02:12 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00046 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JN7.110 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3561 transmitting the Commission’s final rule— the Educational Assistance Test Program By Mr. GIBBONS (for himself and Mr. Children’s Online Privacy Protection Rule— (RIN: 2900–AL02) received May 13, 2002, pursu- HANSEN): received May 14, 2002, pursuant to 5 U.S.C. ant to 5 U.S.C. 801(a)(1)(A); to the Committee H.R. 4934. A bill to establish the Great 801(a)(1)(A); to the Committee on Energy and on Veterans’ Affairs. Basin National Heritage Route, Nevada and Commerce. 7390. A letter from the Secretary, Depart- Utah; to the Committee on Resources. 7379. A letter from the Director, Defense ment of Veterans’ Affairs, transmitting a By Mr. GILLMOR (for himself and Mr. Security Cooperation Agency, transmitting draft bill entitled, ‘‘Veterans’ Employment, GOODLATTE) (both by request): notification concerning the Department of Business Opportunity, and Training Act of H.R. 4935. A bill to amend the Toxic Sub- the Navy’s proposed Letter(s) of Offer and 2002’’; to the Committee on Veterans’ Af- stances Control Act and the Federal Insecti- Acceptance (LOA) to Switzerland for defense fairs. cide, Fungicide, and Rodenticide Act; to the articles and services (Transmittal No. 02–22), 7391. A letter from the Secretary, Depart- Committee on Energy and Commerce, and in pursuant to 22 U.S.C. 2776(b); to the Com- ment of Labor, transmitting the Depart- addition to the Committee on Agriculture, mittee on International Relations. ment’s report entitled, ‘‘2001 Findings on the for a period to be subsequently determined 7380. A letter from the Under Secretary, Worst Forms of Child Labor’’; to the Com- by the Speaker, in each case for consider- Personnel and Readiness, Department of De- mittee on Ways and Means. ation of such provisions as fall within the ju- fense, transmitting a report on the audit of 7392. A letter from the Chief, Regulations risdiction of the committee concerned. the American Red Cross for the year ending Unit, Internal Revenue Service, transmitting By Mr. JONES of North Carolina: June 30, 2001, pursuant to 36 U.S.C. 6; to the the Service’s final rule—Low-Income Hous- H.R. 4936. A bill to amend title 37, United Committee on International Relations. ing Credit—received May 14, 2002, pursuant States Code, to provide a dislocation allow- 7381. A letter from the Assistant Secretary to 5 U.S.C. 801(a)(1)(A); to the Committee on ance under section 407 of such title to retired for Legislative Affairs, Department of State, Ways and Means. members of the uniformed services and mem- transmitting the texts of the International 7393. A letter from the Regulations Officer, bers on the temporary disability retired list Labor Organization Convention No. 184 and Social Security Administration, transmit- moving from their last duty station to their Recommendation No. 192 concerning Safety ting the Administration’s final rule—Tech- designated home; to the Committee on and Health in Agriculture, pursuant to Art. nical Revisions to Medical Criteria for De- Armed Services. 19 of the Constitution of the International terminations of Disability [Regulations No. 4 By Mr. LEWIS of Georgia (for himself, Labor Organization; to the Committee on and 16] (RIN: 0960–AE99) received May 16, Mr. ISAKSON, Mr. SERRANO, Mr. JACK- International Relations. 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the SON of Illinois, Mrs. JONES of Ohio, 7382. A letter from the Assistant Secretary Committee on Ways and Means. Ms. MCKINNEY, and Mr. PAYNE): H.R. 4937. A bill to amend the Internal Rev- for Legislative Affairs, Department of State, f transmitting a memorandum of justification enue Code of 1986 to allow individuals to des- for the waiver of loan default sanctions REPORTS OF COMMITTEES ON ignate that a portion or all of their income under section 620(Q)of the Foreign Assist- PUBLIC BILLS AND RESOLUTIONS tax refunds be used jointly by the Office of Minority Health of the Department of Health ance Act and Section 512 of the Kenneth M. Under clause 2 of rule XIII, reports of and Human Services and the Office on Wom- Ludden Foreign Operations, Export Financ- en’s Health of such Department to improve ing and Related Programs Appropriations committees were delivered to the Clerk the health of minorities and women; to the Act, 2002 and a Drawdown under section 506 for printing and reference to the proper Committee on Ways and Means, and in addi- of the Foreign Assistance Act to support the calendar, as follows: tion to the Committee on Energy and Com- Government of Afghanistan; to the Com- Mr. YOUNG of Alaska: Committee on merce, for a period to be subsequently deter- mittee on International Relations. Transportation and Infrastructure. H.R. 3429. mined by the Speaker, in each case for con- 7383. A letter from the Inspector General, A bill to direct the Secretary of Transpor- sideration of such provisions as fall within General Services Administration, transmit- tation to make grants for security improve- the jurisdiction of the committee concerned. ting the Audit Report Register, including all ments to over-the-road bus operations, and By Mr. OSBORNE: financial recommendations, for the period for other purposes; with an amendment H.R. 4938. A bill to direct the Secretary of ending September 30, 2001, pursuant to 5 (Rept. 107–507). Referred to the Committee of the Interior, through the Bureau of Reclama- U.S.C. app. (Insp. Gen. Act) section 5(d); to the Whole House on the State of the Union. tion, to conduct a feasibility study to deter- the Committee on Government Reform. f mine the most feasible method of developing 7384. A letter from the Deputy Archivist of a safe and adequate municipal, rural, and in- the United States, National Archives and PUBLIC BILLS AND RESOLUTIONS dustrial water supply for the Santee Sioux Records Administration, transmitting the Under clause 2 of rule XII, public Tribe of Nebraska, and for other purposes; to Administration’s final rule—Micrographic bills and resolutions were introduced the Committee on Resources. Records Management (RIN: 3095–AB06) re- By Mr. SMITH of New Jersey (for him- ceived May 16, 2002, pursuant to 5 U.S.C. and severally referred, as follows: self, Mr. EVANS, and Mr. FILNER): 801(a)(1)(A); to the Committee on Govern- By Mr. BARCIA: H.R. 4939. A bill to amend title XVIII of the ment Reform. H.R. 4929. A bill to recognize the American Social Security Act to provide for a transfer 7385. A letter from the Deputy Archivist of Boxing and Athletic Association as the offi- of payment to the Department of Veterans the United States, National Archives and cial sanctioning body for amateur elimi- Affairs for outpatient care furnished to Records Administration, transmitting the nation boxing contests; to the Committee on Medicare-eligible veterans by the Depart- Administration’s final rule—Records Dis- Energy and Commerce. ment; to the Committee on Energy and Com- position (RIN: 3095–AB02) received May 16, By Mrs. CAPITO: merce, and in addition to the Committees on 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the H.R. 4930. A bill to amend title XVIII of the Ways and Means, and Veterans’ Affairs, for a Committee on Government Reform. Social Security Act to establish a Medicare period to be subsequently determined by the 7386. A letter from the Director, Office of prescription drug discount card endorsement Speaker, in each case for consideration of Personnel Management, transmitting the program; to the Committee on Energy and such provisions as fall within the jurisdic- semiannual report on activities of the In- Commerce, and in addition to the Committee tion of the committee concerned. spector General for the period of October 1, on Ways and Means, for a period to be subse- By Mr. STUMP (for himself, Mr. SMITH 2001 through March 31, 2002 and the Manage- quently determined by the Speaker, in each of New Jersey, Mr. EVANS, Mr. SIMP- ment Response for the same period, pursuant case for consideration of such provisions as SON, and Mr. REYES): to 5 U.S.C. app. (Insp. Gen. Act) section 5(b); fall within the jurisdiction of the committee H.R. 4940. A bill to amend title 38, United to the Committee on Government Reform. concerned. States Code, to enact into law eligibility re- 7387. A letter from the Director, Office of By Mr. PORTMAN (for himself and Mr. quirements for burial in Arlington National Personnel Management, transmitting the Of- CARDIN): Cemetery, and for other purposes; to the fice’s final rule—Prevailing Rate Systems; H.R. 4931. A bill to provide that the pension Committee on Veterans’ Affairs. Change in the Survey Cycle for the Portland, and individual retirement arrangement pro- By Mr. TOOMEY: Oregon, Appropriated Fund Wage Area (RIN: visions of the Economic Growth and Tax Re- H.R. 4941. A bill to provide that the indi- 3206–AJ60) received May 16, 2002, pursuant to lief Reconciliation Act of 2001 shall be per- vidual income tax rate reductions of the Eco- 5 U.S.C. 801(a)(1)(A); to the Committee on manent; to the Committee on Ways and nomic Growth and Tax Relief Reconciliation Government Reform. Means. Act of 2001 shall be permanent; to the Com- 7388. A letter from the Director, Office of By Mr. GEKAS: mittee on Ways and Means. Personnel Management, transmitting the Of- H.R. 4932. A bill to amend the Social Secu- By Mr. WELDON of Florida (for him- fice’s final rule—Premium Pay Limitations rity Act to establish an Office of Administra- self and Mr. GREENWOOD): (RIN: 3206–AJ56) received May 16, 2002, pursu- tive Law Judges in the Social Security Ad- H.R. 4942. A bill to improve patient access ant to 5 U.S.C. 801(a)(1)(A); to the Committee ministration; to the Committee on Ways and to health care services, extend the solvency on Government Reform. Means. of the Medicare Trust Fund, and provide im- 7389. A letter from the Acting Director, Of- By Mr. GEPHARDT: proved medical care by reducing the exces- fice of Regulatory Law, Department of Vet- H.R. 4933. A bill to promote State historic sive burden the liability system places on erans’ Affairs, transmitting the Depart- tax credits; to the Committee on Ways and the health care delivery system; to the Com- ment’s final rule— Increased Allowances for Means. mittee on the Judiciary, and in addition to

VerDate 11-MAY-2000 02:12 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00047 Fmt 4634 Sfmt 0634 E:\CR\FM\L13JN7.000 pfrm04 PsN: H13PT1 H3562 CONGRESSIONAL RECORD — HOUSE June 13, 2002

the Committees on Ways and Means, and En- tion No. 21 memorializing the United States H.R. 2837: Mr. STARK. ergy and Commerce, for a period to be subse- Congress urging the state attorneys general H.R. 2863: Ms. MCKINNEY. quently determined by the Speaker, in each and the Federal Trade Commission to en- H.R. 2874: Mr. HOLT, Mr. HOLDEN, Mr. case for consideration of such provisions as force the Telemarketing Sales Rule and urg- SANDLIN, and Mr. WILSON of South Carolina. fall within the jurisdiction of the committee ing Congress to adopt the Know Your Caller H.R. 2908: Mr. LEACH. concerned. Act of 2001; to the Committee on Energy and H.R. 3058: Mr. WU. By Mr. WOLF (for himself and Mr. Commerce. H.R. 3324: Mr. SESSIONS and Mr. BEREUTER. SCOTT): 291. Also, a memorial of the Legislature of H.R. 3335: Ms. MCKINNEY and Mr. KILDEE. H.R. 4943. A bill to provide for the analysis the State of New Hampshire, relative to H.R. 3337: Mr. MENENDEZ, Mr. REYES, and of the incidence and effects of prison rape in House Concurrent Resolution No. 27 memori- Mrs. KELLY. Federal, State, and local institutions and to alizing the United States Congress and the H.R. 3397: Mr. CROWLEY. provide information, resources, rec- Department of Justice to complete its in- H.R. 3424: Mr. GOODLATTE. H.R. 3443: Mr. MALONEY of Connecticut. ommendations, and funding to protect indi- quiry into the mistreatment of Italian- H.R. 3464: Mr. PASCRELL. viduals from prison rape; to the Committee Americans during World War II with all due H.R. 3496: Mr. MCGOVERN. on the Judiciary. speed and release the results of such inquiry H.R. 3524: Mr. DAVIS of Illinois. By Mr. WOLF (for himself and Mr. to the public; to the Committee on the Judi- H.R. 3533: Mrs. MALONEY of New York. GOODLATTE): ciary. H.R. 3543: Mr. CONYERS. H.R. 4944. A bill to designate the Cedar f H.R. 3595: Mr. STUPAK, Ms. MILLENDER- Creek Battlefield and Belle Grove Plantation MCDONALD, Mr. KILDEE, Mr. ABERCROMBIE, National Historical Park as a unit of the Na- ADDITIONAL SPONSORS and Ms. NORTON. tional Park System, and for other purposes; Under clause 7 of rule XII, sponsors H.R. 3624: Mr. LOBIONDO. to the Committee on Resources. were added to public bills and resolu- H.R. 3626: Ms. DELAURO and Mr. REYES. By Mr. DAVIS of Illinois (for himself, tions as follows: H.R. 3673: Mr. OWENS. Mr. BILIRAKIS, Mr. CAPUANO, Mr. H.R. 3703: Mr. CROWLEY. BONILLA, Mr. MCNULTY, Mr. HALL of H.R. 13: Ms. MCCARTHY of Missouri. H.R. 3794: Mr. RAHALL and Mr. PASTOR. Texas, Mr. WAXMAN, Ms. ROS- H.R. 190: Mr. BROWN of South Carolina. H.R. 3831: Mr. HILLIARD, Mr. FLETCHER, Ms. LEHTINEN, Mr. DOOLEY of California, H.R. 432: Mr. KILDEE. PRYCE of Ohio, Mr. BARR of Georgia, Mr. Mr. HILLIARD, Mr. CONYERS, Mrs. H.R. 433: Mr. KILDEE. GREENWOOD, Mr. CRENSHAW, Mr. SANDLIN, CHRISTENSEN, Mr. FILNER, Mr. ROSS, H.R. 595: Mr. ACKERMAN and Mr. OWENS. Mr. BRYANT, and Mr. SANDERS. Mr. DOYLE, Mr. ANDREWS, Mr. UDALL H.R. 690: Mrs. MORELLA. H.R. 3884: Mr. RAHALL, Mr. MOLLOHAN, Mr. of New Mexico, Mr. RANGEL, Mr. H.R. 699: Mr. ROSS. PASTOR, and Mr. TURNER. RODRIGUEZ, Mr. THOMPSON of Cali- H.R. 805: Mr. CARSON of Oklahoma. H.R. 3897: Mr. RILEY and Mr. HALL of Ohio. fornia, Mr. JEFFERSON, Ms. BALDWIN, H.R. 822: Mr. LEACH, Mr. ROEMER, and Mr. H.R. 3940: Mr. BISHOP. Mrs. JONES of Ohio, Mr. BROWN of LARSEN of Washington. H.R. 3974: Mr. CONYERS. Ohio, Mrs. MALONEY of New York, H.R. 840: Ms. ROS-LEHTINEN, Mr. WYNN, Mr. H.R. 4018: Ms. SCHAKOWSKY. Mr. TOWNS, Mr. SHIMKUS, Mr. ROGERS of Michigan, Ms. KILPATRICK, Mr. H.R. 4033: Ms. BROWN of Florida. H.R. 4058: Mr. KUCINICH and Ms. MCCOLLUM. SERRANO, Mr. PRICE of North Caro- ISRAEL, Mr. BARCIA, Mr. LAHOOD, Mr. PAUL, H.R. 4066: Mr. GRAHAM. lina, and Mr. WATTS of Oklahoma): Mr. MCNULTY, Mr. CONYERS, Mr. JACKSON of H.R. 4089: Mr. DAVIS of Illinois, Mr. H. Con. Res. 418. Concurrent resolution ex- Illinois, Mr. HOYER, Mr. CRANE, Mrs. DAVIS FALEOMAVAEGA, Mr. UDALL of Colorado, Mr. pressing the sense of the Congress that there of California, Mr. WATKINS, and Mr. DAVIS of HILLIARD, and Mrs. MALONEY of New York. should be established a National Community Illinois. H.R. 4091: Mr. FALEOMAVAEGA, Mr. UDALL Health Center Week to raise awareness of H.R. 854: Mr. DEUTSCH, Mr. WOLF, Mr. ED- of Colorado, Mr. HILLIARD, and Mrs. health services provided by community, mi- WARDS, and Mr. LEACH. MALONEY of New York. grant, public housing, and homeless health H.R. 945: Ms. CARSON of Indiana. H.R. 4119: Mr. UNDERWOOD. centers, and for other purposes; to the Com- H.R. 951: Mr. HOYER, Mr. HUNTER, Mrs. H.R. 4169: Mr. VITTER. mittee on Government Reform. NAPOLITANO, Mr. NADLER, Mr. LINDER, and Ms. MILLENDER-MCDONALD. H.R. 4187: Ms. LOFGREN. By Mr. YOUNG of Alaska (for himself H.R. 4194: Ms. KILPATRICK. H.R. 1011: Mr. WAMP and Mr. THOMPSON of and Mr. DINGELL): H.R. 4483: Mr. FERGUSON, Ms. DELAURO, Ms. Mississippi. H. Con. Res. 419. Concurrent resolution re- WOOLSEY, Mr. BURTON of Indiana, Mr. H.R. 1021: Mr. BILIRAKIS. questing the President to issue a proclama- RODRIGUEZ, and Mr. OWENS. H.R. 1108: Mr. MCHUGH. tion in observance of the 100th Anniversary H.R. 4515: Mr. KENNEDY of Minnesota and H.R. 1143: Ms. VELAZQUES. of the founding of the International Associa- Mr. STENHOLM. H.R. 1265: Mr. UDALL of New Mexico. tion of Fish and Wildlife Agencies; to the H.R. 4582: Mr. PETERSON of Minnesota. H.R. 1452: Ms. SOLIS and Mr. NADLER. Committee on Resources. H.R. 4600: Mr. SIMPSON, Ms. DUNN, Mr. H.R. 1541: Mr. DUNCAN. By Mr. YOUNG of Alaska (for himself, SCHROCK, Mr. BOEHLERT, Mr. OSBORNE, and H.R. 1596: Mr. ISTOOK and Mr. LOBIONDO. Mr. HUNTER, Mr. JEFF MILLER of Mr. GOODE. H.R. 1598: Mr. PLATTS and Mr. SABO. Florida, Mr. HOSTETTLER, Mr. H.R. 4634: Mr. WELDON of Florida. H.R. 1671: Mr. THOMPSON of Mississippi. ADERHOLT, Mr. JONES of North Caro- H.R. 4635: Mr. CANNON and Mr. CHAMBLISS. H.R. 1859: Mr. RUSH, Mr. PASCRELL, Mr. lina, Mr. WELDON of Pennsylvania, H.R. 4642: Mr. DUNCAN. BONIOR, and Mr. GONZALEZ. Mr. HAYES, and Mr. HYDE): H.R. 4645: Mr. LYNCH. H. Con. Res. 420. Concurrent resolution ex- H.R. 1904: Mr. BAIRD. H.R. 4675: Mr. POMEROY. pressing support for withdrawal of the H.R. 1935: Mr. FORD, Mr. HAYES, Mrs. H.R. 4683: Ms. ESHOO and Mr. INSLEE. United States from the Anti-Ballistic Missile MCCARTHY of New York, Mr. MOLLOHAN, Mr. H.R. 4685: Mr. BACHUS. (ABM) Treaty; to the Committee on Inter- CRANE, Mr. ACKERMAN, Mr. LIPINSKI, and Mr. H.R. 4693: Mr. ENGLISH, Mr. SHIMKUS, Mr. national Relations, and in addition to the LUCAS of Kentucky. HOLDEN, Mr. RAMSTAD, Mr. CANTOR, Mr. Committee on Armed Services, for a period H.R. 2014: Mr. WILSON of South Carolina HOLT, Mr. PENCE, Mr. OWENS, Mr. SULLIVAN, to be subsequently determined by the Speak- and Mr. SIMMONS. Mr. SAXTON, Mr. WAXMAN, Mrs. KELLY, Mr. H.R. 2059: Ms. MCKINNEY. er, in each case for consideration of such pro- NADLER, Mr. BERMAN, Mr. FERGUSON, Mr. H.R. 2071: Mr. DAVIS of Illinois and Mr. visions as fall within the jurisdiction of the LOBIONDO, Mr. ROSS, Mr. CLEMENT, Mr. MALONEY of Connecticut. committee concerned. WEXLER, Mr. LINDER, and Mr. SHERMAN. H.R. 2094: Mr. PETERSON of Pennsylvania. By Mr. DAVIS of Illinois (for himself, H.R. 4707: Mrs. THURMAN, and Mrs. MINK of H.R. 2098: Mr. ISRAEL, Mr. WAXMAN, Mr. Mr. MCHUGH, and Mr. MALONEY of Hawaii. PENCE, Mr. MCNULTY, and Mr. LOBIONDO. Connecticut): H.R. 4716: Mr. BARCIA, and Mr. TAYLOR of H.R. 2148: Mr. THOMPSON of Mississippi. H. Res. 443. A resolution expressing the Mississippi. H.R. 2207: Mr. BALDACCI. support of the House of Representatives for H.R. 4738: Mr. GILLMOR. H.R. 2284: Mr. CONYERS, Mrs. CHRISTENSEN, programs and activities to prevent perpetra- H.R. 4742: Mr. WELDON of Pennsylvania, Mr. ISRAEL, Mr. FILNER, Mrs. MINK of Ha- tors of fraud from victimizing senior citi- Mr. OWENS, and Mr. ENGLISH. waii, and Mrs. JONES of Ohio. zens; to the Committee on Energy and Com- H.R. 4754: Mr. ORTIZ, and Mr. OWENS. H.R. 2290: Mr. BROWN of Ohio and Mr. merce. H.R. 4767: Mr. DUNCAN. ENGLISH. H.R. 4768: Mr. KUCINICH. f H.R. 2364: Mr. SCHIFF. H.R. 4777: Mr. CRAMER. MEMORIALS H.R. 2420: Mr. MEEKS of New York and Ms. H.R. 4793: Mrs. ROUKEMA, Mrs. MINK of Ha- LEE. waii, Mrs. MALONEY of New York, Ms. BROWN Under clause 3 of rule XII, memorials H.R. 2442: Mr. FRANK. of Florida, Mr. ISRAEL, Mr. BAKER, Mrs. were presented and referred as follows: H.R. 2484: Mr. REYES. THURMAN, and Mr. VITTER. 290. The SPEAKER presented a memorial H.R. 2571: Ms. DELAURO. H.R. 4798: Mr. STRICKLAND, Mr. ROHR- of the Legislature of the State of New Hamp- H.R. 2638: Mr. LARSEN of Washington, Mr. ABACHER, Ms. MCKINNEY, Mr. FROST, Mr. KIL- shire, relative to House Concurrent Resolu- BLUNT, and Mr. GILMAN. DEE, Mr. ENGLISH, Mr. FRANK, Mr. GREEN of

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00048 Fmt 4634 Sfmt 0634 E:\CR\FM\L13JN7.100 pfrm04 PsN: H13PT1 June 13, 2002 CONGRESSIONAL RECORD — HOUSE H3563 Texas, Ms. BROWN of Florida, Mr. MCGOVERN, H.R. 4896: Mr. GORDON and Ms. MCCARTHY PETITIONS, ETC. Mr. ACEVEDO-VILA, and Mrs. MINK of Hawaii. of Missouri. H.R. 4803: Mr. FATTAH, Mr. MCGOVERN, Mr. H.R. 4918: Mr. KUCINICH. Under clause 3 of rule XII, petitions NEAL of Massachusetts, Mr. HALL of Ohio, H.J. Res. 40: Mr. SIMMONS. and papers were laid on the clerk’s Mrs. CLAYTON, Mr. FROST, Mr. OWENS, Mr. H.J. Res. 92: Mr. CAPUANO, Mr. BERMAN, desk and referred as follows: MCDERMOTT, Ms. MILLENDER-MCDONALD, Mr. Mr. FROST, Mr. CROWLEY, Mr. SABO, Ms. CLEMENT, Mr. BALDACCI, Mr. JACKSON of Illi- WOOLSEY, Mr. ACKERMAN, Mr. PASCRELL, and 57. The SPEAKER presented a petition of nois, Mr. CLAY, and Mr. KUCINICH. Ms. SOLIS. the LaSalle County Board, Illinois, relative H.R. 4804: Mr. BURR of North Carolina, Mr. H. Con. Res. 60: Mr. CONYERS. to Resolution No. 02-48 petitioning the ASTINGS ANCREDO H of Washington, Mr. T , and H. Con. Res. 197: Mr. BONIOR. United States Congress that the LaSalle Mr. TERRY. H. Con. Res. 291: Mr. WHITFIELD. County Board opposes any changes to the 800 H.R. 4839: Ms. HART, and Mr. DUNCAN. H. Con. Res. 382: Mr. KUCINICH and Mr. MHz Band, and is in opposition to the Fed- H.R. 4851: Mr. WATTS of Oklahoma, Mr. HOEFFEL. eral Communications Commission Notice of LUCAS of Oklahoma, Mr. WATKINS, and Mr. H. Con. Res. 401: Mr. PASCRELL. Proposed Rule Making (FCC 02-81) WT Dock- CARSON of Oklahoma. H. Con. Res. 402: Mr. FILNER. et No. 02-55; to the Committee on Energy and H.R. 4852: Mrs. MEEK of Florida. Commerce. H.R. 4854: Mr. KILDEE, Mr. MCGOVERN, Ms. H. Con. Res. 406: Mr. DELAHUNT. HOOLEY of Oregon, Mr. SCHIFF, Mr. FROST, H. Con. Res. 417: Mr. OWENS, Mr. WEXLER, 58. Also, a petition of the LaSalle County Mr. TIERNEY, Mrs. MINK of Hawaii, Ms. and Mr. NADLER. Board, Illinois, relative to Resolution No. 02- DELAURO, Mr. HALL of Ohio, Mr. DAVIS of H. Res. 313: Mr. OBERSTAR, Mr. CONYERS, 47 petitioning the United States Congress Florida, Ms. MILLENDER-MCDONALD, and Mr. Ms. NORTON, and Ms. EDDIE BERNICE JOHNSON that LaSalle County endorses a federal sub- EHLERS. of Texas. sidy for passenger rail service and a high H.R. 4858: Mr. COSTELLO. H. Res. 393: Mr. SAXTON and Mr. JEFFER- speed passenger rail line through LaSalle H.R. 4888: Mr. LARSEN of Washington, Ms. SON. County and Northern Illinois; to the Com- NORTON, Mr. SAWYER, Mr. BENTSEN, and Mr. H. Res. 416: Mr. BONILLA. mittee on Transportation and Infrastruc- HALL of Texas. H. Res. 434: Ms. BERKLEY. ture.

VerDate 11-MAY-2000 00:57 Jun 14, 2002 Jkt 099060 PO 00000 Frm 00049 Fmt 4634 Sfmt 0634 E:\CR\FM\A13JN7.048 pfrm04 PsN: H13PT1 E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, SECOND SESSION

Vol. 148 WASHINGTON, THURSDAY, JUNE 13, 2002 No. 78 Senate The Senate met at 9 a.m. and was The legislative clerk read the fol- there is an effort to stall, after a period called to order by the Honorable ZELL lowing letter: of time the majority leader will again MILLER, a Senator from the State of U.S. SENATE, have to make a determination as to Georgia. PRESIDENT PRO TEMPORE, whether a cloture motion will be filed. Washington, DC, June 13, 2002. I hope that is not the case and that it PRAYER To the Senate: moves forward. We almost passed it by The Chaplain, Dr. Lloyd John Under the provisions of rule I, paragraph 3, unanimous consent before the Christ- Ogilvie, offered the following prayer: of the Standing Rules of the Senate, I hereby mas break. Since that time, things God is good all the time; all the time appoint the Honorable ZELL MILLER, a Sen- ator from the State of Georgia, to perform have gotten worse instead of better. We God is good! We say with the psalmist, the duties of the Chair. have construction projects that are ‘‘I would have lost heart, unless I had ROBERT C. BYRD, coming to a halt because they cannot believed that I would see the goodness President pro tempore. obtain terrorism insurance. It has be- of the Lord in the land of the living.’’— Mr. MILLER thereupon assumed the come extremely important that we do Psalm 27:13. chair as Acting President pro tempore. something about this. I hope we as a What do we mean when we affirm f Senate can move forward. that You are good? You have taught us, Mr. President, the chair has some dear God, that Your goodness is Your RECOGNITION OF THE ACTING business to conduct. impeccable consistency. We always can MAJORITY LEADER f depend on You to be the same yester- The ACTING PRESIDENT pro tem- day, today, and tomorrow. You do not pore. The Senator from Nevada is rec- RESERVATION OF LEADER TIME play favorites; You treat all Your chil- ognized. dren the same. It is only humankind The ACTING PRESIDENT pro tem- f that withholds Your blessings of jus- pore. Under the previous order, leader- tice, mercy, and plenty from some of SCHEDULE ship time is reserved. Your people. Or we tolerate customs, Mr. REID. The Chair will shortly an- f laws, or social prejudices that block nounce that the first hour of the Sen- MORNING BUSINESS Your goodness being offered to all. ate today will be morning business, If we say with the psalmist, ‘‘Blessed until 10 a.m. The first half of that time The ACTING PRESIDENT pro tem- be the Lord, who daily loads us with is under the control of the majority pore. Under the previous order, there benefits, the God of our salvation!’’— leader. It is my understanding that will now be a period for the transaction Psalm 68:19, then help us, generous Senator STABENOW will be here to talk of morning business not to extend be- Lord, to be to others as kind, caring, about pharmaceutical products. The yond the hour of 10 a.m., with Senators and forgiving, just as you have been to second half of the time will be under permitted to speak therein for up to 10 us. May it be said of us, ‘‘He/she is good the control of the Republican leader. minutes each. Under the previous all the time!’’ Amen. At 10, we will begin consideration of order, the first half of the time shall be f the terrorism insurance bill. We have under the control of the majority leader or his designee. PLEDGE OF ALLEGIANCE waited a long time to be able to have this measure on the floor. Industries The Chair recognizes the Senator The PRESIDING OFFICER. The Hon- all over America, for months, have from Michigan. orable ZELL MILLER led the Pledge of been telling us this is necessary. I hope Allegiance, as follows: f those people who don’t want this legis- I pledge allegiance to the Flag of the lation passed—and there are some—will THE HIGH COST OF PRESCRIPTION United States of America, and to the Repub- DRUGS lic for which it stands, one nation under God, offer their amendments and take what- indivisible, with liberty and justice for all. ever verdict the Senate renders and not Ms. STABENOW. Mr. President, it is f try to stall and kill this legislation. If a pleasure to be here again this morn- that is the case, I think the majority ing speaking about one of the most im- APPOINTMENT OF ACTING leader would have no alternative but to portant topics to touch American fami- PRESIDENT PRO TEMPORE file a cloture motion. lies, seniors, and businesses. The entire The PRESIDING OFFICER. The There is ample time to amend this economy, right now, is struggling with clerk will please read a communication legislation. I think both leaders ac- the explosion of health care costs. Most to the Senate from the President pro knowledge the importance of this legis- of those relate to the crisis of prescrip- tempore (Mr. BYRD). lation and the need to move on. So if tion drugs.

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

S5465

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5466 CONGRESSIONAL RECORD — SENATE June 13, 2002 First, I thank the Senator from Geor- we will. The reason this has been so proposals that are being called Medi- gia for his leadership, for bringing for- difficult an issue is that, unfortu- care prescription drug coverage. There ward and fighting for Medicare and pre- nately, we see an industry doing very are those who provide coverage that is scription drug coverage for seniors. I well by diverting a lot of the current affordable. We are pleased that our was pleased yesterday to join with the rules, by getting around a lot of the plan would be a $25-per-month pre- occupant of the chair, Senator BOB rules. The current system works well mium and would provide comprehen- GRAHAM from Florida, Senator TED for the drug industry. There are six sive coverage with no gaps. It would KENNEDY from Massachusetts, Senator drug company lobbyists for every Mem- not cut home health care to do it. It HARRY REID, our distinguished assist- ber of the Senate. So their voice is would not cut our hospitals or nursing ant majority leader, and many others heard here every day. homes to do it. who have come together to put forward I was pleased yesterday to join with We have a real plan. I regret to say a voluntary, comprehensive Medicare about 30 different health care consumer that our colleagues on the other side of prescription drug benefit for our sen- groups to launch an effort to get the the aisle, on the other side of the Cap- iors, one we can be proud of, one that people’s voice into this debate. Not itol, through the Speaker and the Re- people can choose to sign up for if they only are we asking people to write publicans in the House, have not yet need it; and if they choose not to be- their Senators, their House Member, put forward a real Medicare plan. Un- cause of other coverage, that is good as and the President and say, now is the fortunately, what they put forward well. But it will be there for everyone. time to act—it is past the time to act— covers very little of the prescription It will finally keep the promise of but we are also asking people to join us drug bill, and they are talking contin- Medicare by truly covering the way in an effort called fairdrugprices.org. ually about including cuts to hospitals health care is provided today. We know Fairdrugprices.org is a new action cen- and other providers to pay for it and that is long overdue. ter. We are asking people to log on— setting up new costs for home health As we all know, in 1965, when Medi- maybe this is your first time on a com- care. care was constructed, it covered the puter; if you do not have a computer, I know in my own family and friends’ way health care was provided. When ask a family member, ask somebody families, often when you are struggling you went in the hospital and had an op- else, and if, like so many of us, you are with that prescription drug bill, you eration, you might need penicillin or learning all this, just type in also need some home health care help. something else connected with your ‘‘fairdrugprices.org’’ and go to this Those frequently go together. stay in the hospital. But today is dif- site. Today we are very proud of the home ferent. Most people don’t go to the hos- You can sign a petition to send two health care industry, our visiting pital. Most people are able fortunately messages to Congress: Pass a real nurses, and our other small businesses to receive some kind of assistance, Medicare prescription drug benefit and that set up shop to help people live in such as medications that prevent prob- lower prices for everybody. We have a dignity at home. We know it is good lems. Some have high blood pressure or plan on how to do both. If you go to from a quality-of-life standpoint. We high cholesterol and many other things fairdrugprices.org, you can sign up to know it saves money. It is good on all that they need to take medication to be a part of this process. You can also accounts. Home health care makes control. You also may be able to take communicate with your Member of sense. a pill that stops open-heart surgery. A Congress through this site, as well as My fear is that what is being talked gentleman in Michigan tells me he directly going to their site. about by our House Republican col- takes one pill a month, and it stops Also, we are asking you to share your leagues is charging copays. One will him from having to have open-heart story. If you are a small business, the have to pay on the front end for visits. surgery. He said that is great, but the senior premium for health care went up On the one hand, while saying we want pill costs $400 a month. 30 percent last year, and insurance to help with prescription drug cov- This is a gentleman who, fortunately, companies said most of that was the erage, on the other, we are going to is a UAW retiree and is able to receive explosion in prescription drug prices. create new costs for you, we will save some assistance from an excellent ben- Or if you are an 85-year-old woman a little money in this pocket and take efit plan. But he said: What if I didn’t with breast cancer struggling to buy a little more out of this pocket. In the have that? What if I was just on Medi- tamoxifen or a 65-year-old man who is end, that will not be helpful to people. care and didn’t have that extra help struggling with high blood pressure I call upon my colleagues on the that came from my job? That $400 a and other ailments and struggling to other side of the aisle and the other month that stops open-heart surgery is get the medicine you need, sign up, side of the Capitol, in the House of a wonderful benefit. share that story, and we will bring that Representatives, to join with us in a We celebrate the fact that that drug story to the floor of the Senate. We real effort. Do not add costs to home was created. But too many people will make the people’s voice a part of health care. Do not cut our providers would either not be able to afford that, this process in a very real way because who have already been cut enough. would be sitting at the kitchen table, when the people are engaged—and, Mr. Join with us in something that is real like a lot of people today, saying: Do I President, you know this—the right and makes sense. eat today? Do I pay the utility bill? things happen. One of my other concerns about what Am I able to pay the other things that When people are involved in telling the House is talking about is that it will allow me to live independently or what is real—they are not making this would not be a benefit under Medicare. do I get my medicine? up; this is not a made-up problem; they They are saying let private insurance So I am very pleased to be a part of are not just trying to talk the talk— cover prescription drugs with prescrip- the effort that is building in the Senate they want action. They want action tion-only policies. I suggest that if the to pass a real Medicare prescription from Senators. They want this to be bi- insurance companies wanted to do drug benefit, which we intend to do. partisan. They want the President to that, they would have already done I thank our leader, TOM DASCHLE, for embrace this. They want us to solve that. The reason they do not is that it making a commitment that we are the problem. is very expensive to provide a prescrip- going to bring this issue before the There are a lot of other issues we can tion-only insurance policy, outside of Senate for a vote in a matter of a few talk about around here, but we want to Medicare or outside of a standard pol- weeks. get this done. This effort is beginning icy. There are those around the country to really get up steam. We want to in- Ironically, if you go back and look at who are listening today and saying, vite everybody to go to the debate prior to 1965 when Medicare Sure, we have heard this before, but is fairdrugprices.org and engage in this came into being, it came into being be- it really going to happen? Are we real- issue. cause the only thing that older adults ly going to be able to move the ball for- We also ask for some help to take a had at that time was to try to find in- ward? serious look at other proposals that are surance in the private sector, and The answer is, with the help of people coming forward from other places that about half of them could not find any who are watching and listening today, do not do the job. There are a lot of or it was not affordable because it is

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5467 less profitable to cover older adults or a farmer trying to get health care cov- tising is allowed. They have loosened to cover the disabled or to cover people erage for their family, a young working the rules, and we have seen an explo- who are likely to begin to have more family, or an older working family, sion in the amount of direct consumer health ailments. So those policies were right now we have a very unfortunate advertising. not there. situation in our country. In fact, in Anyone listening today, anyone lis- Medicare came into being to make some cases we are paying for all of the tening in the Chamber, all we have to sure that everybody had access to initial research on these new lifesaving do is turn on our television set, and if health care; that our older citizens, our drugs into the billions, over $23 billion. not every ad, every other ad is a beau- disabled citizens would be able to get We have been increasing the research tiful picture, a beautiful ad, for a pre- the same care that other citizens re- through the National Institutes of scription drug. That is great if they ceived. That was a promise we made in Health every year. As of this year, I be- want to do that, but unfortunately we 1965. lieve, we have doubled in the last 5 now see two and a half times more Now, instead of making sure that years the funding for NIH, a very im- being spent on advertising than on re- promise is real by covering prescrip- portant thing to do. It is something we search. The latest numbers show there tion drugs, which is the way health have had support for on both sides of was more spent on advertising Vioxx care is provided today, we have our col- the aisle. It is very important that we than Pepsi, Coke, or Budweiser. leagues on the Republican side of the be able to move forward on this fund- As I have said so many times before, aisle saying: Let’s go back to what did ing. That is good. someone can decide not to have a Coke not work before 1965. Let’s go back to We then have a situation in our coun- today, although I am pretty addicted the system that does not work. try where we allow companies to take to Diet Coke, but if someone is a breast We are saying that is not good that information that you and I pay cancer patient, they cannot decide not enough. More importantly, the people for, and begin to develop these new to take Tamoxifen without very seri- of the country are saying that is not drugs. As they do that, as a further in- ous consequences. So this is not the good enough. I believe people are centive, we allow them to take deduc- same and should not be treated the watching and are holding us account- tions on their taxes for the research. same. able. They are holding us accountable We give them a new 20-percent tax So one of the bills that we put for- as to whether or not we are going to credit on new research. We also allow ward—and I appreciate the Presiding get past the talk and start walking the them to write off their advertising, Officer’s support and cosponsorship walk. marketing, and sales costs. We give with me—is something called the FAIR Are we going to make this happen or them up to a 20-year patent. We say it Act, the Fair Advertising and In- continue to set up straw men that is so expensive to create these new creased Research Act. It is a bill that sound good, get people through an elec- drugs that we are going to make sure would simply say we will allow the tion, but, in the end, do not create the their name brand cannot be challenged companies to write off advertising and ability for one senior to buy one pill? and they cannot have competition for marketing and sales from their taxes. That is the challenge we face, and we that formula for up to 20 years. So we In other words, we will subsidize that have an opportunity because of the protect that for them through a pat- as taxpayers but only to the level we leadership in the Senate by our Senate ent. subsidize research. It makes sense to majority leader, Senator DASCHLE, and When all is said and done, after all me. We will allow advertising, and cer- Senator HARRY REID, and others who this investment and all of this effort to tainly they can do as much as they have said this is so important, we are support creating these new drugs, what want, but we just do not want to pay going to make this a priority now, that do we have? Unfortunately, we have, as for it. So we are saying we will pay for this summer we are going to act on Americans, the highest prices in the as much or help subsidize as much on this issue; we are going to bring this world. That makes absolutely no sense. advertising as we do on research; be- up. What I fear is that we are seeing yond that, they are on their own. It is so important we now engage more and more an industry that is less I hope we will get a vote on that bill, people and invite people to join us to focused on new breakthrough drugs and that we will be able to cap those exces- make sure we are successful. This is more focused on how to create more sive advertising costs, because it is not just about getting a vote or bring- profit by slightly changing the drug to overdue and we know it is part of the ing up a bill, this is about fixing the keep the patent going, making it a pur- explosion. It is not only the advertising problem. It is about creating a Medi- ple pill instead of a red pill, changing costs, it is that increased utilization care prescription drug benefit for ev- the box, promoting it, changing the that comes from promoting medica- eryone who needs it and making sure name, keeping the patent going so tions and the top name brand rather they then have the ability to get the there is no competition, and keep rais- than one that may be exactly the same health care they need. ing those prices right through the roof. that is not advertised. Frankly, I am excited about what I was very interested in watching a That leads me to another very impor- is ahead in the next few weeks and program that Peter Jennings put for- tant issue, and that is the question of want to invite people to join us to ward on ABC a couple of weeks ago. I unadvertised brands. We know that at be a part of this effort—again, commend ABC and Peter Jennings for least half of the medications out today fairdrugprices.org. coming forward with something that have another drug that is exactly the I want to also invite people from was very comprehensive but, unfortu- same or extremely close, that is just Michigan, if those from Michigan are nately, extremely disturbing. It indi- not advertised. It is called a generic. listening, to visit my own Web site. We cated that about 80 percent of the new We know that if someone uses that are asking people as well to come and patents, the new drugs that are going unadvertised brand, they can cut their join us and check out what is hap- on the market, the new patents ap- costs 35, 50, 75 percent. I have seen pening through my Senate Web site: proved by FDA on what is called stand- quotes of savings up to 90 percent. So Stabenow.Senate.gov. At this Web site, ard drugs—that is a category that there is a major effort now happening. we are asking people to take a look at means there is very little difference be- I commend Blue Cross/Blue Shield of what we are doing and share the stories tween the drug that was already there Michigan, which is working with our through our Web site as well. and the new drug—80 percent are not Chamber of Commerce and others, in a I also mention this morning the im- drugs that have changed the formulas coalition, and I know it is happening portant efforts to cut prices for every- in a way that would improve health across the country, to close the loop- one. As I said in the beginning, we have care. holes in the law. two goals. We have the goal of updat- What we see happening instead is Senator JOHN MCCAIN and Senator ing Medicare so it really provides this movement of sales and marketing CHUCK SCHUMER have a bill, which I am health care and meets the promise that and advertising, and now, unfortu- pleased to be cosponsoring, that would was made in 1965, but we also know nately, in the last 5 years—in fact, close the loopholes which right now that this issue affects everyone. As I since 1996—the FDA has changed the allow the drug companies to stop these said before, if one is a business owner, rules so that drug consumer adver- unadvertised brands from going on the

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5468 CONGRESSIONAL RECORD — SENATE June 13, 2002 market. So we want to address that as REMEMBERING DR. BARNETT lence. Their crimes include kidnaping, well. SLEPIAN AND CONDEMNING bombing, arson, assault and murder. We want to have the opportunity to ANTI-ABORTION VIOLENCE They have targeted health clinic em- do away with excessive advertising, use Mr. REID. Mr. President, after the ployees, judges and other officials. And more of the unadvertised brands and attacks against our country on Sep- not only have they attacked and killed drop the prices for people. We also tember 11th and with ongoing violence doctors, but they have also threatened want to open the border to Canada in the Middle East, we have taken the doctors’ children. These groups where right now one can buy prescrip- steps to remind Americans that not all have hosted Web sites that post the tions at half the price. Arabs and not all Muslims are terror- names, addresses, license plate num- The final thing on our agenda is to ists. And it is important to remember bers of doctors and others on hit lists support those States that are cre- that not all terrorists are Arabs or and even put up pictures of their tar- atively looking for ways and acting to Muslims. gets’ family members and identify lower prescription drug prices for their Terrorism is not an ideology linked where their children catch the school citizens. About 30 different States, in- to any particular religion, race, or na- bus. cluding my home State of Michigan, tionality; rather it is a tactic, a meth- Fortunately, the 9th Circuit Court of are developing ways to lower prices, od deliberately chosen by those who re- Appeals ruled just last month that tar- some very creatively. ject peaceful means of promoting their geting specific doctors in this way con- In Maine, for example, they have de- cause and instead turn to violence. Ob- stitutes an illegal threat, and found veloped a policy where if someone is viously not all terrorists share the those responsible for the Web sites in doing business and they have a Med- same goals—indeed, there are many violation of the Freedom of Access to icaid contract for prescription drugs, cases where terrorists with diamet- Clinic Entrances Act. I applaud the then they are requiring that same dis- rically opposed views are fighting court’s ruling, and I am pleased that counted price be provided that is pro- against one another. the FACE legislation we passed has vided to the State through Medicaid to But terrorists seem to hold in com- helped protect Americans. But we must those who do not have insurance but mon a belief that they are above the remain vigilant and continue to take are not on Medicaid. So they are using law and a common disregard for human appropriate action to prevent extrem- their clout as purchasers to be able to life. ist groups from terrorizing victims. lower prices, and they are being sued. Unfortunately, we have homegrown Their intention is to intimidate and Not surprisingly, a drug company terrorists right here in America: threaten, and sometimes they succeed lobby is suing all of the States that are People like Timothy McVeigh who as some doctors have given up their doing that. bombed the Federal building in Okla- practice due to the emotional stress homa City and whoever is responsible and constant fear they faced. The final bill I have introduced is for the anthrax attacks of last year. Dr. Slepian courageously endured called the RX Flexibility for States America has also been plagued by nu- threats for over a decade before he was bill, which would make it clear that merous acts of violence by extremists murdered. We must have the courage States have a right to develop innova- in the anti-abortion movement. One of to condemn the violent extremists in tive programs to lower prices for their their victims was Barnett Slepian, a the anti-choice movement. Those who citizens and to use the Medicaid pur- husband and a father of four. He was kill and commit other heinous acts to chasing power as a part of that. killed in his family’s home in Buffalo, express their opposition to abortion do In conclusion, let me say we have a New York 31⁄2 years ago shortly after so with the support of many others plan. As the Presiding Officer knows, returning from synagogue where he people who fund their crimes, aid and because he is one of the key leaders on had gone to mourn his father’s death. abet them, harbor fugitives. Others our Medicare plan, we have a Medicare Barnett Slepian was a gynecologist help create a climate that encourages plan. We have proposals to lower and obstetrician. He provided health this violence through their hateful prices. We have a plan that will make care to women and delivered babies. speech or by remaining silent. sure our seniors and our disabled have And he also performed abortions at a We cannot remain silent. We must what they need in lifesaving medicine. downtown clinic, because he wanted to say loudly and unequivocally that mur- We will make sure small businesses can make sure that even poor women had der is wrong. count on us to do something to lower access to safe, legal procedures. Be- America is a nation of laws. I believe prices for our farmers, our families. cause of this he was killed. in following the law. You might not al- I call upon colleagues to join as I didn’t know Dr. Slepian, but I ways agree with the law or how it is in- quickly as possible to put this plan in learned after his death that he was the terpreted. But that does not entitle action. Again, I invite all citizens lis- uncle of a woman from Reno, Nevada you to willfully violate it without con- tening today to join who worked for me here in Washington. sequences. America instead offers you www.fairdrugprices.org. Get involved. Dr. Slepian’s killer is not only a cold- an opportunity to seek to change the Put the people’s voice in this debate. I blooded murderer, but should also be law through peaceful means. know we will be able to get something seen as a terrorist. The man police We express policy differences civilly done. have identified as responsible for kill- through discourse and resolve them I suggest the absence of a quorum. ing Dr. Slepian was recently extradited through the political process, not The ACTING PRESIDENT pro tem- from France where he had fled. His through violence. Here in the Senate pore. The clerk will call the roll. name is James Kopp. we debate passionately, but in a man- Kopp has been indicted for the shoot- The legislative clerk proceeded to ner of respect and civility, and attempt ing of a doctor in Canada and is a sus- call the roll. to persuade others of the merits of our pect in 3 other shootings of doctors positions. Mr. REID. Mr. President, I ask unan- who provided abortions. While Kopp Those who resort to violence are vio- imous consent the order for the alone might have pulled the trigger lating not only our laws but our Amer- quorum call be rescinded. and fired the shot that killed Dr. ican principles and values. The ACTING PRESIDENT pro tem- Slepian, we have learned that he was We in the Senate must identify them pore. Without objection, it is so or- part of an organized network of violent as terrorists. The American people dered. extremists, including a group that calls must recognize them as terrorists. And Mr. REID. Mr. President, I ask unan- itself the Army of God. (Imagine that a law enforcement officials must treat imous consent I be allowed to use the group would invoke the Lord’s name them as terrorists—for that is what remainder of the time in morning busi- and believe that God sanctions their they are. ness. I see no one here from the minor- lawless violence. And this group of I suggest the absence of a quorum. ity. murderers professes a respect for life!) The ACTING PRESIDENT pro tem- The ACTING PRESIDENT pro tem- This group and others similar to it pore. The clerk will call the roll. pore. Without objection, it is so or- have engaged in a long campaign of The senior assistant bill clerk pro- dered. harassment, intimidation, and vio- ceeded to call the role.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5469 Mr. FEINGOLD. Mr. President, I ask company to own up to two AM and two ownership of a number of businesses re- unanimous consent that the order for FM stations in a specific market, so lated to the music industry. For exam- the quorum call be rescinded. long as they did not account for more ple, the Clear Channel Corporation The ACTING PRESIDENT pro tem- than 25 percent of the total listening owns over 1200 radio companies, more pore. Without objection, it is so or- audience. The national ownership lim- than 700,000 billboards, various pro- dered. its were also raised to 18 AM and 18 FM motion companies, and venues across Mr. FEINGOLD. Mr. President, I ask stations. the United States. Also, just three unanimous consent to speak as if in This change brings us to the seismic years ago, in 1999, Clear Channel morning business. shift that shook up the radio and live bought SFX productions, the Nation’s The ACTING PRESIDENT pro tem- concert industries across the country— largest promotion company. pore. Without objection, it is so or- the passage of the 1996 Telecommuni- A national group of organizations, re- dered. cations Act. cently joined together to voice many of Mr. FEINGOLD. I thank the Chair. This legislation did not simply raise the same concerns that I have heard Mr. FEINGOLD. Mr. President, I rise the national ownership limits on radio from my constituents in Wisconsin— today to voice my concerns about the stations—it eliminated them alto- that the high levels of concentration concentration of ownership in the radio gether. It also dramatically altered the are hurting the entire industry. and concert industry and its effect on local radio station ownership limits This coalition of artists, labor consumers, artists, local businesses, through the implementation of a tiered groups, small businesses, and radio and ticket prices. ownership system which allowed a companies recently released a joint I will be introducing legislation to company to own more radio stations in statement that expressed a number of address these concerns in the coming the larger markets. concerns about the levels of concentra- weeks, but wanted to make my col- The highest range was in the largest tion and the anticompetitive practices. leagues aware of the seismic changes markets, those with 45 stations or These concerns included that a cor- that have taken place in the radio and more. In those markets, one group poration that owns radio stations, pro- concert industries following the pas- could own up to eight stations, with no motion companies and venues has a sage of the Telecommunications Act of more than five in either AM or FM. conflict of interest in terms of pro- 1996. The strictest limit was in the smallest moting its own concerts and tours on During the debate of the 1996 Tele- markets with less than 15 stations, its radio stations over those of any communications Act, I joined a number where one entity could own five sta- competition. of my colleagues in opposing the de- tions, but only three in any one serv- They are also concerned about a cor- regulation of radio ownership rules be- ice. poration’s interest in limiting the pro- cause of concerns about the impact on This change was not beneficial to motional support of bands and artists consumers, artists, and local radio sta- consumers or local radio station own- that are performing for other compa- tions. ers or broadcasters. It simply led to a nies, performing at other venues or Passage of this act was an unfortu- number of national super radio station sponsored by other stations. nate example of the influence of soft corporations that now dominate the Mr. President, I ask unanimous con- money in the political process. As my marketplace, and allegedly engage in sent that a joint statement by this colleagues will recall, I have consist- anticompetitive business practices. group be printed in the RECORD at the ently said that this act was really in The concentration levels of radio sta- conclusion of my remarks. many ways bought and paid for by soft tion ownership, both across the United The PRESIDING OFFICER (Mr. NEL- money. Everyone was at the table, ex- States and in most local markets, is SON of Nebraska). Without objection, it cept for the consumers. staggering. is so ordered. In November, we will finally have rid In 1996, prior to the passage of the (See exhibit No. 1.) the system of this loophole, but we Telecommunications Act, there were Mr. FEINGOLD. After I began look- must repair its damage. 5133 owners of radio stations. Today, ing into the consolidation trends, I was In just 5 years since its passage, the for the contemporary hit radio/top 40 taken aback by the diverse range of effects of the Telecommunications Act formats, four radio station groups— people that expressed concerns about have been far worse than we imagined. Chancellor, Clear Channel, Infinity, the effects of concentration and con- While I opposed this act because of its and Capstar—just four control access solidation. Concert goers talk all the anticonsumer bias, I did not predict to 63 percent of the format’s 41 million time about higher ticket prices. that one provision would have caused listeners nationwide. For the country Broadcasters, artists, and others in so much harm to a diverse range of in- music format, the same four groups Wisconsin and across the country have terests. control access to 56 percent of the for- told me about reduced diversity and The provision I am referring to is the mat’s 28 million listeners. local input in the music industry. And elimination of the national radio own- The concentration of ownership is local businesses have spoken about ership caps and relaxation of local own- even more startling when we look at anticompetitive behaviors that have ership caps, which has triggered a wave radio station ownership in local mar- put them on an unfair playing field. of consolidation and caused harm to kets. Following the passage of the Tele- consumers, artists, concert goers, local Four radio station companies control communications Act, and the resulting radio station owners, and promoters. nearly 80 percent of the New York Mar- vertical concentration, a number of To put the changes of the 1996 act in ket. Three of these same four compa- trends have emerged. Ticket prices perspective, it is helpful to compare nies own nearly 60 percent of the mar- have gone through the roof, during the them to other moves towards deregula- ket share in Chicago. In my home same period in which a few companies tion of radio ownership that began in State of Wisconsin, four companies consolidated ownership of radio sta- 1984. own 86 percent of the market share in tions, promotion companies, venues, In 1984, there were limitations on the the Milwaukee radio market. and advertising. total number of radio stations that one Let me repeat, four companies con- This chart compares ticket prices company could own nationally and lo- trol 86 percent. during the period of consolidation fol- cally, and how long a company had to The list continues in almost every lowing the 1996 act with the preceding hold a station before being allowed to market across the United States. The 5 year blocks of time. Before the pas- sell. That year, the ownership regula- concentration of radio station owner- sage of the 1996 act, ticket prices rose tions were changed to allow one entity ship by a few companies is mind bog- slightly faster than the Consumer to own 12 AM stations, 12 FM stations gling, and its effect on consumers, art- Price Index. and 12 television stations—an increase ists and others in the music industry is For example, from 1991 to 1996, con- from 7 to each type a year earlier. cause for great concern. cert ticket prices grew by about 21 per- The Federal Communications Com- Many of the same corporations that cent, compared to the consumer price mission again loosened the ownership own multiple radio stations in a given index increase of about 15 percent. Fol- requirements in 1992 by allowing one market wield their power through their lowing the Telecommunications Act of

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5470 CONGRESSIONAL RECORD — SENATE June 13, 2002 1996, however, ticket prices have in- Mr. FEINGOLD. I am not certain earlier this year, we must fix the prob- creased almost 50—50—percentage they missed that. lems that the soft money loophole points more than the Consumer Price Mr. REID. You have not mentioned caused—including the gaping flaws of Index. From 1996 to 2001, concert ticket that. the Telecommunications Act that have prices grew by more than 61 percent, Mr. FEINGOLD. I am still checking hurt competition in the radio and con- while the Consumer Price Index in- into all the different aspects. cert industries. creased by only 13 percent. Mr. REID. To go to a concert, you In the coming weeks, I will be intro- Ticket prices have gone up by nearly need a place to park, right? ducing legislation to address the con- 50 percentage points more than con- Mr. FEINGOLD. I am sure they will cerns about concentration and anti- sumer prices since passage of the Tele- get to it if they haven’t. competitive practices that have re- communications Act, and that doesn’t They are able to achieve this shake- sulted from the Telecommunications even include the facility fees, parking down, it is said, by establishing exclu- Act. I hope my colleagues will join me charges, box office charges, or food and sive agreements with independent pro- in this effort. beverage increases. moters that collect a fee in exchange Mr. President, I just want to alert I think we have to look into allega- for access to the airwaves. my colleagues to this trend, and we tions that consolidation in the radio I am very troubled by these allega- will introduce legislation to deal with industry has triggered anticompetitive tions. If true, they mean that artists it. I am convinced the complaints I practices and raised ticket prices. that can’t, or don’t, pay these inde- have heard from such a wide variety of A broad coalition, including the pendent promoters will not be able to Wisconsinites are the same concerns American Federal of Television and get access to the airwaves. Artists being raised in all the States in this Radio Artists, has also expressed con- should not be required to pay for access country, and I look forward to submit- cerns that consolidation in the radio to the airwaves. I am continuing to in- ting a proposal and a bill to my col- industry has led to reduced diversity vestigate these allegations of a new leagues. and competition in local markets. shakedown, but if they are true, this I yield the floor. As corporations buy stations in the practice should be prohibited. EXHIBIT NO. 1 same market, they combine newsrooms Finally, I am deeply disturbed about JOINT STATEMENT ON CURRENT ISSUES IN and reporters and share playlists and concerns that have been voiced by indi- RADIO, MAY 24, 2002 radio personalities—all with the same viduals and local businesses—pro- We are a diverse coalition representing moters, radio station owners, and art- performing artist groups, labor, record la- effect: less choice in music and less in- bels, merchandisers, songwriters, community formation for consumers. ists—that have been forced out of the broadcasters, consumers and citizens advo- Radio airwaves are public property. business or have been put on an unfair cates. We urge the government to revise the Unlike other business ventures, radio playing field as a result of the con- payola laws to cover independent promotion stations have acquired their distribu- centration of market power caused by to radio, to investigate the impact of radio tion mechanisms—the airways—with- the deregulation of the 1996 act. consolidation on the music community and out any expenditure of capital. They These are local promoters and busi- citizens and to work to protect non-commer- were given access to the broadcast nesses who have succeeded through cial space on both the terrestrial radio bandwidth and the emerging webcasting models. spectrum by the Government for free. economic downturns, recessions and Radio is a public asset, not private prop- Since 1943, Congress and the Federal many other challenging times. But erty. Since 1934, the federal government, Communications Commission have when placed on an unfair playing field, through the Federal Communications Com- tried to ensure that this medium serves they are being pushed out of the mar- mission, has overseen the regulation and the public good, but limiting access to ket. protection of this public asset to create a information and diversity on the radio Radio is a public medium and we communications medium that serves the does not achieve this. must ensure that it serves the public public interest. Unlike other businesses, I have also heard concerns from art- good. The concentration of ownership, radio stations have acquired their distribu- both in radio and the other facets of tion mechanism—the airwaves—without any ists and radio stations about how the expenditure of capital. The public owns the vertically concentrated radio corpora- the concert industry, has caused great airwaves. Owners of broadcast stations were tions leverage their market-power to harm to people and businesses that given access to the broadcast spectrum by shake down the music industry in ex- have been involved and concerned the government for free. The quid pro quo for change for playing their music. about the radio and concert industry free use of the public bandwidth requires As my colleagues are aware, payola— for generations. that broadcast stations serve the public in- the practice of paying money to get It also harms the flow of creativity terest in their local communities. and ideas that artists seek to con- However, it has become clear that both re- music played—has been prohibited cording artists and citizens are negatively under Federal law since the 1960s. I tribute to our society. This concentra- impacted by legislation, regulatory interpre- have heard a number of concerns, how- tion does a disservice to our society at tations and by a number of standardized in- ever, about the alleged tendency of every level of the industry, and it must dustry practices that fail to serve the public some owners of multiple radio stations be addressed. interest. We call on the Federal Communica- to shake down the music industry. This is about the very freedom of tions Commission (FCC) to undertake a com- Mr. REID. Will the Senator yield for radio as a medium. Radio is one of the prehensive review of the following aspects of a question? most important media we have for ex- the radio industry that are anti-artist, anti- Mr. FEINGOLD. Yes. changing ideas and expressing our cre- competition and anti-consumer. Further, we call on Congress to be vigilant in their over- The PRESIDING OFFICER. The Sen- ativity. But that free exchange of ideas sight of the FCC to ensure the public inter- ator from Nevada. often isn’t free anymore—if you want est is being upheld in regards to radio. Mr. REID. I will ask a question. to get played, often it’s going to cost Specifically: Mr. President, I ask unanimous con- you. And if you can’t afford it, then 1. We request that payments made to radio sent morning business be extended you might not get heard at all. stations which are designed to influence until the Senator from Wisconsin fin- Being able to hear a variety of voices playlists (other than legitimate and reason- ishes his statement, which should be a is fundamental to a free society. Con- able promotional expenses) be prohibited, unless such payments are announced over couple, 3 more minutes. centration in the radio industry is di- the air, even when such intent is subtle and The PRESIDING OFFICER. Without minishing the number of voices that disguised. This includes payments made objection, it is so ordered. get heard. And that risks diminishing through independent radio promoters. Mr. REID. I have a question for my our freedom. 2. We request an investigation of the im- friend. It isn’t just about who is talented, pact of recent unprecedented increases in I have been listening to the Senator and who deserves to be played. It is radio ownership consolidation on citizens from Wisconsin. I think maybe there is about a shakedown, and that is just un- and the music community. 3. We request an examination of the way one thing these people who own all this acceptable for the industry, for the art- vertical integration of ownership in broad- stuff have missed, and that is the park- ist, and for all of us who listen. casting, concert promotion companies and ing lots. They own about everything While we took a step forward in revenues decreases fair market competition for else. forming the campaign finance system artists, clubs and promotion companies.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5471 4. We request that policies that protect Impact of Widespread Industry Consolidation mid-size promoter NIPP in Denver brought non-commercial space in the radio band- The federal government must also examine suit against Clear Channel in 2001, alleging width and in the emerging webcasting mod- the impact of loosened ownership caps on the that Clear Channel—which owns all three els be enacted, securing the benefits of pro- listening public. Until 1996, the Federal Com- rock stations in the Denver area—was not gramming diversity for the music commu- munications Commission regulated owner- running the ads that NIPP paid for on its nity and citizens. ship of broadcast stations so any company stations to promote last year’s NIPP-pro- BACKGROUND could own no more than two radio stations moted Warped Tour. There have been other in any one market and no more than 40 na- allegations from bands and performers— Pay for Play and Independent Radio tionwide. When Congress passed the Tele- mostly off-the-record for fear of retaliation— Promotion communications Act of 1996, the restrictions who have stated that radio station groups Payola—the practice of paying money to government ownership of radio stations have pressured them into playing shows for people in exchange for playing a particular evaporated. Now, radio groups own numerous free in exchange for airplay, or who have had piece of music—has a long history in the stations around the country and exercise un- their songs removed from playlists for play- music industry. The practice didn’t garner reasonable control over the airwaves. For ex- ing non-exclusive venues. much public attention until the late 1950s ample, in 1996, there were 5133 owners of We would like to see the FCC investigate and 1960s when rock and roll disc jockeys be- radio stations. Today, for the Contemporary whether an artist’s choice to play or not to came powerful gatekeepers who determined Hit Radio/Top 40 formats, only four radio play in Clear Channel venues or to use or not what music the public heard. Federal laws station groups—Chancellor, Clear Channel, to use Clear Channel’s promotion company were passed starting in the 1960s that forbid Infinity and Capstar—control access to 63 impacts the artist’s positions on or removal the direct payment or compensation of disc percent of the format’s 41 million listeners from Clear Channel playlists. jockeys or other radio staff in exchange for nationwide. For the country format, the Community Radio the playing of certain records unless such same four groups control access to 56 percent payments were announced over the air. of the format’s 28 million listeners. Rampant consolidation of commercial The various laws and hearings from the This consolidation has led to a new dy- radio and increased budgetary pressures felt 1960s–1970s muted the prominence of payola namic in the music industry. Radio station by non-commercial stations have led to a re- for a while. However, payola-like practices groups have centralized their decision-mak- duction in radio play for musical genres like eventually resurfaced, but in a more indirect ing about playlists and which new songs to classical, jazz, opera and bluegrass. Congress form. Standardized business practices now add to the playlist. These centralized needs to reevaluate the current status of employed by many broadcasters and inde- playlists have reduced the local flavor and non-commercial radio, including exploring pendent radio promoters result in what we limited the diversity of music played on new strategies for sustaining existing com- consider a de facto form of payola. Often, in radio. Due to their sheer market power, munity radio stations and moving forward an effort to stay within the law, the payment radio station groups now have the ability to with full implementation of community- is characterized as, for example, payment to make or break a hit song. based Low Power FM radio. After an intense receive first notice of the station’s playlist With the increased leverage resulting from lobbying campaign by the National Associa- ‘‘adds.’’ ownership consolidation, at least one group tion of Broadcasters and NPR, the FCC’s The new payola-like practices take two owner is considering charging labels for Low Power FM plan was scaled back signifi- primary forms. Radio consolidation has cre- merely identifying the name of the artist cantly via an Appropriations rider in 2000. ated the first type. Radio station group own- and song played. The CEO of Clear Channel The FCC is currently following Congress’ re- ers establish exclusive arrangements with told the Los Angeles Times that it might sell quest for additional testing of the impact of ‘‘independent promoters,’’ who then guar- song identification as a form of advertising. these tiny stations on existing broadcasters. antee a fixed annual or monthly sum of This miserly practice would harm the music Once the FCC report is submitted to Con- money to the radio station group or indi- community and citizens, as it would make it gress, Congress must move forward by pass- vidual station. In exchange for this payment, difficult for radio listeners to identify new ing legislation to authorize the FCC to li- the radio station group agrees to give the artists and purchase music. Once again, this cense these stations in urban areas. If con- independent promoter first notice of new practice would impact the ability of new and solidation in the radio environment has sti- songs added to its playlists each week. Sta- independent artists to succeed. fled competition and reduced diversity of tions in the group also tend to play mostly We request that the FCC investigate con- programming, low power radio can begin to records that have been suggested by the solidation of radio ownership focusing on the address the lack of community-based pro- independent promoter. As a result of the public interest which radio stations are sup- gramming. standardization of this practice, record composed to serve. This investigation should CONCLUSION panies and artists generally must pay the look at the difficulties small independent radio stations’ independent promoters if broadcasters face when going up against We are deeply concerned about payola and they want to be considered for airplay on large and powerful radio station groups in a payola-like practices, as well as the prob- those stations. specific market. It should study the role that lems caused by radio station ownership con- The second payola-like practice occurs national playlist decisions have had on the solidation, and the vertical iintegration of after the music labels hire an ‘‘independent skyrocketing cost of radio promotion. It station ownership with venue ownership and radio promoter’’ to legitimately promote should also take into account the impact of concert promoters. New rules must be writ- their records to specific stations for a fee. reduced staffing levels on members of local ten by the FCC to prohibit payments to Reportedly, certain indie promoters use the stations and the reduction of classical, jazz, radio stations from ‘‘independent pro- labels’ money to pay the stations for playing bluegrass and other formats from the air- moters’’ unless such payments are an- songs on the air. waves. nounced. The FCC must seriously evaluate These practices result in ‘‘bottom line’’ Vertical Integration of Radio Owners whether a radio station is even satisfying programming decisions where questions of Many radio groups are also vertically inte- the current license requirement that spon- artistic merit and community responsive- grated companies increasing their already sorship identification or disclosure must ac- ness take a back seat to the desire of broad- substantial leverage and control. For exam- company any material that is broadcast in casters to gain additional revenue. As a re- ple, Clear Channel, a company that owns exchange for money, service, or anything sult, many new and independent artists, as over 1200 radio stations, also owns tens of else of value paid to a station, either directly well as many established artists, are denied thousands of billboards, and various pro- or indirectly. The FCC should also consider valuable radio airplay they would receive if motion companies and venues. In 1999 Clear whether radio stations are serving the public programming decisions were more objective. Channel purchased SFX Entertainment, the interest by contributing to localism, and Furthermore, whatever form the pay-for- nation’s most powerful concert promoter. independence in broadcasting. Finally, Con- play takes, these ‘‘promotion’’ costs are This gave Clear Channel control of the congress must be vigilant in ensuring that the often shared by the artists and adversely im- cert promotion industry in most of the key FCC is upholding the public interest in all of pact the ability of recording artists to suc- regions of the US virtually overnight. Clear these matters. ceed financially. Channel therefore has a direct economic in- Respectfully submitted by the following To protect the public interest, we request terest in promoting its own concerts and organizations: the payola prohibition be revised by the FCC tours on its numerous radio stations over American Federation of Musicians (AFM), so that it cannot be circumvented by any en- those of the competition. It also has an in- American Federation of Television and tity via the use of independent promoters. If terest in limiting the promotional support of Radio Artists (AFTRA), Association for the music played on the radio has less to do bands and artists who are performing for Independent Music (AFIM), Future of Music with the quality of the song than the eco- other companies, at other venues or who are Coalition (FMC), Just Plain Folks, Nashville nomics of the business arrangement, how sponsored by other stations. Songwriters Association International does this serve the needs of citizens? Also, Some of the remaining independent con- (NSAI), National Association of Recording when payments are not announced, isn’t the cert promoters have alleged that Clear Chan- Merchandisers (NARM), National Federation public misled into thinking that the station nel is engaging in anti-competitive behavior of Community Broadcasters (NFCB), Record- chooses which songs to broadcast based on by using this leverage to force smaller coming Academy, Recording Industry Associa- merit? panies out of business. In particular, the tion of America (RIAA).

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5472 CONGRESSIONAL RECORD — SENATE June 13, 2002 CONCLUSION OF MORNING So while we have lost some time, I in short order, that those who have BUSINESS think the product we are putting be- amendments will be offering them and The PRESIDING OFFICER. Morning fore the Senate today is actually a that we will be able to consider them business is now closed. stronger proposal. as we address the important issue con- With that, I will turn to my col- tained in the legislation. f league from Maryland. This legislation is designed to ensure TERRORISM RISK INSURANCE ACT Mr. REID. Will the Senator from the continued financial capacity of in- OF 2002 Maryland yield to the Senator from surers to provide coverage for risks The PRESIDING OFFICER. Under Nevada to make a brief statement? from terrorism. It obviously stems the previous order, the Senate will now Mr. SARBANES addressed the Chair. from the attacks of September 11 proceed to the consideration of S. 2600, The PRESIDING OFFICER. The Sen- which raised a very large question which the clerk will report. ator from Maryland. about the future availability of prop- The senior assistant bill clerk read as Mr. SARBANES. I yield to the Sen- erty and casualty insurance for ter- follows: ator from Nevada. rorism risk. Mr. REID. Mr. President, I, on behalf A bill (S. 2600) to ensure the continued fi- Shortly after those attacks, the ad- nancial capacity of insurers to provide cov- of Senator DASCHLE, alert everyone, as ministration, interacting with the Con- erage for risks from terrorism. Senator DODD has done, that we want gress, put forward certain ideas for ad- The PRESIDING OFFICER. The Sen- to have ample opportunity for every- dressing this issue, and there has been ator from Connecticut. one to offer any relevant amendments. an effort to try to deal with this issue Mr. DODD. Mr. President, I want to We think it is very important that if over the intervening months. It is a shortly yield to my colleague, the people believe this bill isn’t what it difficult and complex question. A num- chairman of the Banking Committee, should be, they have an opportunity to ber of questions have been raised with for an opening statement he may wish make it better. But I hope that every- respect to it. Hearings have been held to make on this bill. one understands we are not going to Mr. President, just for the order of wait forever to move on cloture if it by more than one committee in the business, we will probably take a few appears people are stalling, trying to Congress on both the House and the minutes with some opening statements kill the bill, through amendment or Senate side. The Banking Committee this morning on the bill, although I otherwise. held hearings in late October in which think over the months there has been a There will be ample time for amend- the witnesses who appeared acknowl- lot of knowledge about what is in- ments, I repeat. But we are not going edged the need for legislation and volved. I know the Presiding Officer to stand around here for hours at a agreed that the future availability and has an amendment and is interested in time in wasteful time. We have so affordability of terrorism insurance the subject matter. I think Senator much to do. would be placed in jeopardy absent congressional action. KYL may have an amendment he wants The last week before the July recess to offer fairly soon. Senator GRAMM we have to spend on the Defense au- Many have outlined the potential from Texas, obviously, is very familiar thorization bill. We have to do that. negative consequences for the U.S. with the bill. And that leaves next week to complete economy from the financial instability My hope is that colleagues who have everything else that needs to be done. which would arise if terrorism insur- amendments would, first of all, let us So I say to everyone, if they have ance were not available. know what their amendments are. amendments, come over and offer That view is reflected in the congres- That would be helpful. I do know what them. Senator SARBANES and Senator sional findings on which the Terrorism many of them are already. There may DODD have worked on this legislation Insurance Act rests. Let me quote be others. So I would ask staffs of for months. We almost had it done be- briefly from those findings. It is very Members of both parties if they would fore Christmas of last year. Senator important to lay the basis as to why we get to the ranking member or the man- DODD and I have offered numerous are trying to move this legislation. I ager of the bill the amendments from unanimous consent requests so we quote: both sides so everyone has an idea could move forward on this more Widespread financial market uncertainties what we are looking at over today and quickly. have arisen following the terrorist attacks of possibly tomorrow and/or however long So I repeat, for the third time, as I September 11, 2001, including the absence of it takes to get this done. did when the Senate opened this morn- information from which financial institu- My hope is they would be relevant ing, we want to have a bill that comes tions can make statistically valid estimates amendments, that we would stick with out of the Senate, and we are going to of the probability and the cost of future ter- the subject matter at hand rather than get one, one way or the other. We hope rorist events and, therefore, the size, fund- using this vehicle to bring up extra- it would be done with people cooper- ing, and allocation of the risk of loss caused neous matters. ating, trying to improve the legisla- by such acts of terrorism. With that said, let me turn to the tion; when they offer an amendment, A decision by property and casualty insur- chairman of the full committee. I and it does not pass, or it is tabled, ers to deal with such uncertainties, either by thank him. I will make a longer state- terminating property and casualty coverage that they do not start crying and say: for losses arising from terrorist events or by ment in a few minutes myself. But I Well, I am going to kill the bill then. radically escalating premium coverage to certainly thank the majority leader, This legislative process is what it is. compensate for risks of loss that are not Senator DASCHLE. I want to thank the This legislation is important. We are readily predictable, could seriously hamper minority leader. Senator GRAMM has going to do everything we can to move ongoing and planned construction, property been deeply involved. it expeditiously. acquisition, and other business projects, and Certainly the chairman of the com- The PRESIDING OFFICER. The Sen- generate a dramatic increase in rents and mittee, Senator SARBANES, has been in- ator from Maryland. otherwise suppress economic activity. volved in this issue from the very be- Mr. SARBANES. Mr. President, I The findings go on to say: ginning. Going back to last fall, when commend my colleague, Senator DODD, The United States Government should pro- we tried to sort this out, he made a for his leadership on this very impor- vide temporary financial compensation to Herculean effort to bring it together. tant issue. I have joined with him in insured parties, contributing to the sta- When we do these things, it becomes cosponsoring the legislation he has in- bilization of the U.S. economy in a time of difficult because we get 97 other peo- troduced, S. 2600, which is now before national crisis, while the financial services ple, as I mentioned yesterday, who all the body. I thank Senator DASCHLE and industry develops the systems, mechanisms, have something they want to add to Senator REID for moving the Senate to products, and programs necessary to create a the discussion and debate. As a result this issue, and we appreciate the will- viable financial services market for private of that, a good effort did not work out ingness of the other side of the aisle to terrorism risk insurance. as well as we wanted initially, but I cooperate in that endeavor. That basically sets out the problem think a better effort may prevail as a This bill is now open to amendment, we are trying to address with this leg- result of more people being involved. and we hope as we move forward today, islation.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5473 There is recent evidence that prop- body, works off of the proposals that One of the guiding principles in the erty and casualty insurers are exclud- were developed by the administration bill that I think is important is that, ing terrorism coverage from the poli- late last year. This Terrorism Risk In- to the extent possible, State insurance cies they write. The U.S. General Ac- surance Act establishes a shared com- law should not be overridden. We seek counting Office recently analyzed the pensation program that will split the to respect the role of the State insur- terrorism insurance market and found cost of property and casualty claims ance commissioners as the appropriate that, and I quote: from any acts of terrorism during the regulators of policy terms and rates. . . . some sectors of the economy—notably next year between the Federal Govern- We are anxious to try to keep the State real estate and commercial lending—are be- ment and the insurance industry. insurance commissioners in the pic- ginning to experience difficulties because The act would terminate at the end ture. That is where the responsibility some properties and businesses are unable to of the year, unless the Treasury Sec- has heretofore been. There is not an ef- find sufficient terrorism coverage, at any retary determines that the program fort in this bill to make any radical price. should be in place for an additional change in that existing arrangement. Furthermore, where terrorism insur- year. So it is, by its very definition, In conclusion, I think the Congress ance is available, it is often expensive short term. The premise of it is that needs to act on this issue. We run the and significantly limited in both the over that period of time the insurance risk of serious damage to our economy. amount and the scope of the coverage. industry will be able to develop the I know there are many steps between The consequence of all of this is that knowledge, the expertise, and the capa- now and final enactment of the legisla- you have a number of properties cur- bility to underwrite the terrorist risk. tion. We look forward to continuing to rently either uninsured or under- Under this legislation, the definition of consult with the administration over insured. And the potential con- an act of terrorism will be uniform this matter, as we have been doing. sequences of this situation, if left across the country. Insurance compa- But, again, I commend Senator DODD unaddressed, are cause for serious con- nies providing commercial property for his extraordinary work in crafting cern. That is why we are here today. and casualty insurance are required to the bill that is before us and getting it In the event of another attack, a participate in the program; voluntary before the Senate. widespread lack of insurance coverage participation is allowed with respect to Yesterday some reference was made could hinder recovery efforts as prop- personal lines of property and casualty to some of the procedural problems erty owners struggle to meet the costs insurance. Participating insurance that we encountered on the way to the of rebuilding without the support of in- companies must offer terrorism insur- floor. But through the actions of Sen- surance. As the GAO noted, property ance coverage in all of their property ator DASCHLE and the concurrence of owners ‘‘lack the ability to spread such and casualty policies for all partici- Senator LOTT, we are here now with risks among themselves the way insur- pating lines. Each participating insur- the legislation before us, and the Sen- ers do,’’ and, as a result, I am quoting ance company will be responsible for ate now has an opportunity to address the GAO: paying a deductible before Federal as- this very important issue. I hope we . . . another terrorist attack similar to sistance becomes available. So the first will now be able to consider amend- that experienced on September 11th could ments on their merits, dispose of them, have significant economic effects on the dollar will come from the insurance industry. and then move to final action on this marketplace and the public at large. These legislation. effects could include bankruptcies, layoffs, In the first year of the program, the and loan defaults. amount of the deductible is determined Again, I underscore the fine work that Senator DODD has done on this The GAO also found that even in the by dividing $10 billion among participating insurance companies based on legislation from the very beginning absence of further terrorist activity, and, certainly, in bringing us to this even in the absence of it, inadequate their market share. If the Secretary calls for a second year, the deductible point today. insurance coverage could have an ad- I yield the floor. verse effect on the willingness of lend- will be determined by dividing $15 bil- Mr. DODD. Mr. President, I thank my ers to finance new construction lion among participating insurance colleague from Maryland very much. projects as well as the sale of existing companies based on their market As I said a few moments ago, but for property. Already the GAO found: share. his involvement as chairman of the [s]ome examples of large projects canceling For losses above the companies’ Banking Committee, we would not or experiencing delays have surfaced with a deductibles, but not exceeding $10 bil- have been able to produce this product. lack of terrorism coverage being cited as a lion, the Federal Government will pay He is an original sponsor, along with principal contributing factor. 80 percent, and the companies will pay Senator SCHUMER and Senator CORZINE, The GAO concluded that ‘‘the result- 20 percent. For any portion of total of S. 2600. I would like to do this. ing economic drag could slow economic losses that exceeds $10 billion, the Gov- BILL NELSON, my colleague from recovery and growth,’’ even if the ter- ernment will cover 90 percent and the Florida, wants to be heard on the bill. rorist attack does not materialize. companies will cover 10 percent. Senator SCHUMER is here as well. I So we have a problem either way. If Losses covered by the program will gather some others are ready to come the terrorist attack should materialize, be capped at $100 billion. Above this over to offer the lead amendment. That the lack of coverage would markedly amount, it will be up to Congress to de- will be the manner in which we will hinder recovery efforts. But even if it termine the procedures for and the probably proceed. I know Senator doesn’t, you have an economic drag source of any payments. SCHUMER has an ongoing Judiciary taking place because of the unwilling- This framework provides to the in- Committee meeting. I want to accom- ness of lenders to finance new con- surance industry the ability to cal- modate Members. struction projects as well as the sale of culate at the top level what they may I will yield to my colleague from New existing projects. have to cover in damage. Therefore, it York, with the indulgence of my col- Most people seem to believe that in gives them the ability to calculate league from Florida, to allow him to time, the insurance industry will be what the premiums ought to be and to make opening comments, and then I able to underwrite the terrorist risk. structure a properly arranged financial will turn to Senator NELSON. I will But they don’t now, at this point, have system. We do that, of course, by pro- make comments myself later so other the experience and the factual basis on viding that above certain levels the Members can go back to the hearings, which to make those calculations. In Federal Government will assume 80 or and then we will deal with the amend- the meantime, a short-term Federal 90 percent—depending on the figure—of ment process. backstop for terrorism insurance would the losses. The PRESIDING OFFICER. The Sen- help to stabilize the marketplace and I think this is a fairly simple pro- ator from New York is recognized. forestall the potential negative con- gram. We have had a lot of complex Mr. SCHUMER. Mr. President, I sequences which I have just quoted, suggestions made to us—some ex- thank my colleague from Connecticut. identified by the GAO. tremely complex, I may say. I think I will have more to say in a general na- The legislation we have before us, this is pretty straightforward on its ture, and I will probably do that during which Senator DODD has brought to the face. It is limited in its duration. the amendatory process.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5474 CONGRESSIONAL RECORD — SENATE June 13, 2002 First, I thank our chairman of the ders are not broad enough to carry the course of this debate—of multiple Banking Committee, Senator SAR- that. If you do, you will sink the bill. hundreds of percent in rate hikes, and BANES, as well as Senator DODD, and he, You will hurt our economy. thus that brings us to this point of con- in particular, for his leadership on this In conclusion, Mr. President, this is a sidering this legislation. issue; it has been second to none. test in our post 9–11 world: Can this I want the sponsor of the bill, Sen- We desperately need this bill. I also body deal in a bipartisan way with ator DODD, to listen. I want to direct thank the White House for their in- complicated issues that are vital to our something to him so that he knows my volvement. They have recognized the future even if the immediate impact is good faith. problem and have stepped to the plate. not seen? That relates to a whole lot of I was sitting in the chair presiding I recognize Senator LOTT, as well as other issues as well. We have to be in a last evening when this matter was many of my colleagues on the other new frame of mind. We have to come brought up. A unanimous consent reside who see this as a problem. I will together. This is crucial legislation, quest was presented. Even though I was make a couple of brief points. even though it is not on the lips of the seated in the chair, in my capacity as First, this is vitally needed—des- average American citizen, and I urge a Senator from Florida I could have ob- perately in my city. We have example my colleagues to support it. jected. I did not object because of the after example of projects not being I once again thank my colleague good faith he and I both have over the prefinanced, several defaulting, and from Connecticut for his graciousness issue, that this is an issue that ought projects delayed or not undertaken be- in yielding me a couple of moments. I to be hashed out, it ought to be dis- cause of the inability of people to get will speak at length under the amend- cussed, it ought to be thoroughly de- terrorism insurance. Lenders will not atory process. I thank him for his lead- bated, and then the amendatory proc- yield, will not give loans to projects of ership, as well as our chairman and ess can work its will in the Senate. It large economic agglomeration, wheth- Senator DASCHLE for bringing this bill is in that atmosphere of good faith er they be in large cities or places such to the floor. It is at the 11th hour. It is that I go forward. as Disneyland, Disney World, and Hoo- not too late yet. It will be if we do not I think the bill offered by the Sen- ver Dam, unless we solve this problem. get this bill done in the next few days. ator from Connecticut is significantly It has already begun to slow down the Mr. DODD. Mr. President, I thank flawed, although I think it is a good- economy. the Senator from New York. faith attempt. It is trying to address a As the chairman said, construction How much time does the Senator problem, and the problem is what we workers are being laid off and con- from Florida request for general com- all know of September 11. But several struction jobs are declining. This is a ment on the bill? things have happened since September sore on the economy. It is an open cut. Mr. NELSON of Florida. Yes, I would 11 in the insurance marketplace. The Every day that we don’t solve it, more like to make an opening statement and marketplace has responded. Capital is blood comes out of the wound. have 10, 15 minutes. flowing big time into the reinsurance In my city and in my State, this is Mr. DODD. Why don’t I say 10 min- companies, reinsurance being an insur- essential. Obviously, we were the nexus utes? The Senator from New Jersey ance for insurance companies against of the terrorist attack on 9–11. Insur- wants to be heard. I need to be heard. catastrophe; in this case, the terrorism ance rates are going through the roof. We have other Members who want to be risk. Some of that is not caused by the lack heard. This will keep the process mov- In the aftermath of September 11, of terrorism insurance, but some of it ing. If the Senator gets to 10 minutes when we thought this was going to be is. It is vital that we solve this prob- and there is something that has to be a problem endemic to the whole coun- lem. Just the other day we got a call said, I will add a few more minutes. try on any kind of commercial building from a developer refinancing an aver- Mr. NELSON of Florida. Would the or large structure that might be a tar- age office tower on Third Avenue, with Senator like me to defer and let the get of terrorists, what we have found in a $3 million increase in insurance. An- Senator from New Jersey proceed? the 8 or 9 months since is that the mar- other friend owns smaller properties. A Once I get on a roll, I do not want to ketplace has responded. Reinsurance third of his cashflow will be eaten up stop. companies have provided the coverage, by insurance. He will not build or reha- Mr. DODD. We do not want you to and the cost of that reinsurance for bilitate another building. So this is an stop. We do not want you on too long a this kind of catastrophe has been com- issue of jobs. It is vital—vital to Amer- roll. We want a 10-minute roll. ing down and down as more money has ica, vital particularly to our large cit- Mr. NELSON of Florida. I understand flowed into the reinsurance market- ies, including New York. the Senator wants to limit my roll, and place. As a result, we do not have to I will make one final point, and I will I do not want you to limit my roll. kill a bumble bee with a big stinger make the balance of my points later. Mr. DODD. That is R-O-L-L, not R-O- with a sledgehammer. Instead of us Each of us has other things that we L-E. having a bill that applies across the would like to do. Each of us may have I yield 10 minutes to the Senator board, what we ought to be doing is our own proposal—a different type of from Florida. rifleshooting where the problems are. proposal. We could probably come up Mr. NELSON of Florida. Mr. Presi- The Senator from New York just with a hundred solutions to this prob- dent, something this important should stated several examples. Certainly his lem. I had a proposal supported by Sec- not have a limit of 10 minutes. I accept constituency of Manhattan is a place retary O’Neill that would have gone the good nature of the prime sponsor of where they are having difficulty get- much further. It would be easy to stand the bill. Basically, we are here talking ting insurance for tall buildings. So, here and say this solution is not the about making insurance available and too, would be large structures such as a whole solution. affordable. After September 11, we football stadium, a baseball stadium. If each of us pushes in our own direc- ended up having something that was So, too, would be in my home State tion, we will get no bill. The same is neither: not available nor affordable. major identifiable high-visibility tar- true for those who wish to make this a As a matter of fact, one only has to gets, such as the crowds that go to Dis- test of tort reform. Please, please, I look to the front page of the Wash- ney World, major tourist attractions. plead with my colleagues, do not have ington Post today. This is chronicling Airports would clearly be another one, this proposal wrecked on the shoals of what has happened: and I can go down the line. tort reform as so many other pro- Insurance rates rise in DC. They soar That does not mean that every little posals. The Patients’ Bill of Rights downtown. Coverage more limited since Sep- commercial building, every medium- comes to mind. Yes, we can have a tember 11. sized commercial building, every strip fight on tort reform. There are strong- That is the headline from today’s mall, every air-conditioned mall, in ly held views. It ought not be on this Washington Post. It points out that in fact, cannot get terrorism insurance, bill. It will sink this bill. the downtown area, there is a hiking of because they can. The marketplace has I argue to my friends, anyone who rates. One example given by the Wash- responded. tries to put the burden of tort reform ington Post is 160 percent. I can give We are coming to the floor with a bill on this proposal, this proposal’s shoul- innumerable examples—and I will in that is fatally flawed because it is

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5475 overreaching the problem, and the time limit is up, which is exactly what another means of insuring against the problem is certain types of buildings I thought was going to happen, but I terrorism risk. that need coverage from terrorism. am just getting into my speech. I think that is reasonable. I think Let’s examine that. The PRESIDING OFFICER. The Sen- when we deal with this mass of losses What kind of terrorism? Most insur- ator is correct. it is very difficult to insure against in ance policies already have an exclusion Mr. NELSON of Florida. I am going certain areas. But if we look at how for chemical, biological, and nuclear to need to stop—— this vast but strong economy, this free devastation. So if those insurance poli- Mr. DODD. I say to the Senator, marketplace that provides insurance, cies are not covering chemical, biologi- there are other Members who want to and insurance against catastrophe, has cal, and nuclear terrorism, what kinds be heard. responded, it has responded for most of terrorism are we talking about that Mr. NELSON of Florida. I do not cases except the ones we have enumer- an insurance company would cover? We want to hold up the Senator from New ated. are talking about the use of conven- Jersey. Why don’t I stop and I will Any responsible legislation should tional weapons; what we so horribly come back after he finishes his state- explicitly require assurances of reason- learned on September 11, which is the ment. able premium rates, as we respond to use of an airplane or the use of explo- Mr. DODD. Fine. Any Senator can this new kind of risk. That is lacking sives as they tried to do in the early speak for as long as they want. There in this bill, and the evidence continues nineties at the basement of the World are no limits under this bill. If the Sen- to mount that insurers are Trade Center. Those are the things ator wants to talk, go ahead and talk. unjustifiably increasing the premium about which we are talking. I am trying to move the process along. prices, and they are going to continue When one takes the application of I know the Senator has an amendment to do so even with a substantial Gov- conventional explosives and applies it he wants to offer on the subject matter ernment backstop that is being pro- to commercial buildings, does the in- itself, so I will be glad to yield to him vided in this bill. surance marketplace today respond a few more minutes now if he would I, again, call attention to a story in with the coverage? My contention is, like to finish up rather than break the this morning’s Washington Post where yes, it does. The insurance market- flow of his remarks. I am trying to see it talks about how the insurance rates place is not going to respond to chem- to it that we do not delay the process have gone up in downtown Washington. ical terrorism, biological terrorism, or any longer than we have to, so we can Again, it is not because of the chem- nuclear terrorism because that is al- get to amendments and vote on them ical, biological, or nuclear threat. The ready exempted in most policies, with and then go on to other business. article talks about the ‘‘dirty’’ nuclear the result that the bill is overreaching Mr. NELSON of Florida. I assure the bomb. That is not going to be covered because of it trying to apply to the Senator, as he knows, I am going to be under these insurance policies. These whole country when, in fact, we have heard on this subject. I have not even insurance policies have increased rates certain structures that are indeed started to talk about the amendment. I presumably to cover the terrorism risk threatened and the marketplace cannot will hold that until I actually offer the only from the conventional kinds of ex- respond to that. That is the first flaw amendment, but I do not want to hold plosives. of this bill. up the Senator from New Jersey if he I have received a note that Senator The second flaw of this bill is that it needs to go back to committee. Why CORZINE has to leave now, so I yield to contains no provision to protect con- don’t I sit down and I will seek recogni- the Senator so he can make his re- sumers from rate gouging. It is not tion right after he finishes. marks. there. I am going to offer an amend- Mr. DODD. I must say to my col- Mr. DODD addressed the Chair. ment later on in the process that will league, I am going to be heard on the The PRESIDING OFFICER. The Sen- limit the rate increases, that will have bill itself after he gets finished. Then I ator from Connecticut. the Secretary of the Treasury, after presume someone may show up on the Mr. DODD. Let me say to my col- consultation with the insurance com- other side. We have not heard from league from New Jersey, I thank him missioners of the 50 States, through anybody on the other side. We have for cosponsoring the bill. He has been their organization, the National Asso- been dominating the debate, so I cau- an invaluable asset in putting this pro- ciation of Insurance Commissioners, tion my colleague that he may find posal together. Senator CORZINE is a set a range of where the rates should himself waiting a little bit. new Member of this body but, as all of be. That, by the way, is very similar to Mr. NELSON of Florida. I ask unani- us in this Chamber know, and his con- what the insurance commissioners do mous consent that I have another 10 stituents know, he spent a very distin- in the 50 States on commercial poli- minutes. guished career in the area of finance cies. They set a range or a band of Mr. DODD. That is fine. and was the leader of one of our great where that insurance rate premium The PRESIDING OFFICER. Without leading investment banks in the world ought to be. objection, it is so ordered. and brings a wealth of experience and The problem with terrorism insur- Mr. NELSON of Florida. I thank the knowledge into any subject matter but ance is, the insurance commissioners Senator from Connecticut. particularly ones involving a subject have difficulty figuring out what ought So where are we? Why do we need a matter as complicated as the issue of to be the rates, because the traditional bill such as this? I think there is a le- this bill, terrorism insurance. So I way of determining if a rate is actuari- gitimate question that the risk of ter- wanted to express publicly to him my ally sound is by experience and by rorism is something that heretofore sincere sense of gratitude for his tire- data, and we do not have hardly any among insurance companies was not less efforts, going back many months experience except for what happened on covered. Basically, we never antici- now, in dealing with this issue. He has September 11. Therefore, that is why I pated what happened. Now we have this very valuable suggestions and input am going to offer an amendment later threat facing us. that has contributed to this product. on that is going to point out that the The Senator’s bill, in fact, says that We would not have put together, I best way of determining what the rise because terrorism is such, as we would think, as good a bill as I think we have in rates ought to be to cover the ter- say in the South, an odoriferous act or without his input and his involvement. rorism risk would be through the ad- one that is so repugnant, akin to an act So I wanted to express my gratitude to vice to the Secretary of the Treasury of war, that the Federal Government him and I look forward to working who is prominent in Senator DODD’s has a basis for stepping in and insuring with him. bill as being the place of limiting the part of the risk. Thus, the Senator’s Mr. NELSON of Florida. Mr. Presi- rate hikes. The fatal flaw is this bill bill, through a process of either an 80/ dent, do I still have the floor? overreaches and this bill does not have 20 split or a 90/10 split with the higher The PRESIDING OFFICER. The Sen- any provision to protect consumers for figure of 80 or 90 percent being picked ator has the floor. rate gouging. up by the Federal Government of the Mr. NELSON of Florida. I would pro- I see the Presiding Officer is starting terrorism risk, thus that is then a propose that to accommodate the Senator, to twist in the seat as if my 10-minute tection for insurance companies or it is since he has to leave, we yield some

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5476 CONGRESSIONAL RECORD — SENATE June 13, 2002 time to him with me still retaining the there was a singular purpose to solve But there is more. The lack of ter- floor so I can finish my remarks. I am the problem. rorism insurance coverage is also af- trying to be accommodating, but I still I think we all were determined not to fecting our securities and our bond have not completed my remarks. engage in partisan politics or to under- markets. Mr. DODD. That is fine. mine a possible solution by promoting According to the Bond Market Asso- Mr. NELSON of Florida. With that pet policy priorities. Everyone I just ciation, to date, $7 billion worth of understanding, I yield to the Senator mentioned didn’t agree on every aspect commercial real-estate loan activity from New Jersey. of the product that was eventually pro- has already been suspended or can- The PRESIDING OFFICER. Without duced. I certainly didn’t. celled due to problems related to ter- objection, it is so ordered. But, ultimately, everyone agreed rorism insurance, that is 10 percent of The Senator from New Jersey. that we should act to bring a proposal the commercial-mortgage-backed-secu- Mr. CORZINE. Mr. President, I rise to the floor, with an expectation that rities (CMBS) market. today to join my colleagues in support amendments would be offered, includ- And overall, CMBS activity is down a of S. 2600. ing amendments that dealt with tort staggering 26 percent in the first quar- Let me begin, by applauding the ma- and liability issues. ter of this year. That level of decline in jority leader and Senator DODD for ex- The proposal that was presented late commercial investment activity is dis- erting the necessary leadership, and last year—late last year was not sim- turbing to think of when you consider doing what needed to be done to bring ply the result of a bunch of Democrats that that sector was one of the ones this bill to the floor. Now, it is time for getting in a room and saying ‘‘Voila.’’ that remained strong throughout last all Members of the Senate to recognize It was the result of serious discussion years’ recession. the urgent need before us, and move to and negotiations between Democrats And there is even more to illustrate act on this bill. and Republicans and there was consid- the there is an economic consequence The tragic events of September 11 erable input from the State insurance that accompanies our failure to act on highlighted the enormous exposure commissioners, this administration this issue. Last month, Moody’s Investors Serv- that insurance companies would face in and the Treasury Department. the event of future terrorist attacks. In fact, the Federal backstop provi- ice issued an opinion indicating that it In this time, when we receive dif- sions of this bill had more than input is preparing to downgrade billions of ferent terrorist alerts almost weekly, of these folks it had their support. The dollars of debt of large loan transactions, commercial mortgage-backed and we are faced with the uncertain na- bill we are debating today is that same securities, particularly on high-risk ture of future attacks, many insurers proposal. and reinsurance firms have concluded Now we have an opportunity to re- and ‘‘trophy’’ properties in the near fu- that terrorism is no longer an insur- spond to this growing emergency. ture if we fail to pass this legislation. The American Academy of Actuaries able risk. If we fail to act, or if this bill be- reports that ‘‘there is a reluctance to As a result, late last year, many incomes stalled by those seeking to pile finance [development] projects of $100 surers announced that they would no their pet policy priorities onto a meas- million or more, and some investors longer provide coverage for terrorism- ure that at its core seeks to provide re- are reluctant to buy bonds tied to indi- related losses. Without access to rein- lief to American businesses, then our vidual office towers, apartment build- surance coverage, primary insurance economy will be harmed. ing and shopping malls.’’ companies now find themselves subject Every day that passes without our And a report issued last month by to the full exposure of terrorism risk. action, leaves American businesses, de- the Joint Economic Committee offers This issue is not new. Many of us velopment projects, workers and vital data illustrating the economic drag first learned about them in October of infrastructure exposed to potentially that higher insurance costs, for ter- last year. And it left many concerned. devastating losses, and that’s a real rorism and non-terrorism related cov- While we all knew that it would be im- threat to our economic recovery. erage, is having on American business. possible to predict the true impact of In fact, the lack of terrorism insur- The report calls these factors ‘‘a one- the lack of terrorism insurance on our ance coverage has already begun to two punch’’ that is proving harmful to Nation’s economy, there was over- create a drag on commercial lending America’s economy. whelming agreement among scholars, and business activity. In April, the That report cites data from the Com- economists, and participants in our Federal Reserve Board surveyed commercial Insurance Market Index, which economy—that this issue had the po- mercial loan officers regarding their indicates that premiums for commer- tential to pose real problems in some recent lending activity and terrorism cial insurance policies have increased economic sectors. insurance. The responses are troubling by 30 percent in first quarter of this The threat that loomed led to hear- to say the least. year. And those increased costs are in ings in the Senate Banking Committee, The report indicated that 55 percent addition to the increased costs of ob- and it fueled discussion among Mem- of banks had not received applications taining terrorism insurance, a real cost bers in the Senate about how to best to finance ‘‘high profile or heavy traf- burden to our businesses. craft a solution before the end of last fic commercial real estate properties.’’ The report cites the example of a year when 70 percent of reinsurance In fact, two national lenders have com- building in my state, New Jersey, contracts were up for renewal. pletely stopped making loans to these which prior to 9/11 had an $80 million There was considerable debate about types of properties—GMAC Commer- insurance policy that included ter- how, and what, that response should cial Holding and Mutual of Omaha—al- rorism coverage at a cost of $60,000. be. We debated the proper role of the together. The new policy for that building has a Federal Government in ensuring that The report also states that 20 percent premium of $400,000 for property-cas- commercial insurers could provide ter- of banks reported weaker demand for ualty insurance and another $400,000 rorism insurance, knowing that their new commercial real estate financing. just for terrorism insurance. ability to cede some of that risk to re- And while not referenced specifically That’s a dramatic increase for the insurers had all but vanished. in the Fed report, we know that some same coverage. And that building’s Many Members of this body, people existing commercial borrowers may be lucky at least they got fairly com- like Senator DODD, Senator SARBANES, in technical default on loan covenants prehensive coverage. Many others find Senator GRAMM of Texas, Senator HOL- because they lack terrorism coverage. themselves facing similar cost in- LINGS, Senator SCHUMER, Senator ENZI, Each of these elements reflects the creases for half the coverage. Senator NELSON of Florida and myself economic threats that are posed by the In either case, these costs undermine put forth ideas on how to accomplish lack of affordable, comprehensive ter- productivity and any growth or invest- that. ror insurance coverage. The threat ment opportunities that the owners And let’s be clear, there was a great that accompanies the decrease in com- could possibly take on. And it is na- deal of difference in the ways members mercial lending and subsequently to tionwide trend. thought we should approach this prob- development translates to one thing I want to reiterate that point. Be- lem. But behind those differences, the loss of jobs. cause this is more than a Northeast, an

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5477 urban, or a ‘‘big city’’ issue. The inabil- being gouged with the price hikes, be- We can only rely on the States to ity of business and organizations to ob- cause even though the people who pay monitor rates. State insurance com- tain terrorism insurance coverage is these premiums in fact are the owners missioners traditionally do that. That truly a national problem. of these large commercial structures, has been carved out under Federal law Consider this: guess what happens when they have to as a regulation of insurance reserved to In Cleveland, the insurer for the pay the increase of a premium hike. the States. State insurance commis- Cleveland Municipal School District That is passed on to the consumers. sioners in fact, however, do not have has notified the district that its new That is the case I am making, that the data nor do they have the experi- policy will exclude losses due to ter- we have to have this insurance avail- ence of the data with which to be able rorism. able—and we are in large part doing to judge these rates. On the contrary, In Seattle, the Seattle Mariners base- that by the mechanism of this bill, so in some States they do not regulate ball team had difficulty securing $1 the Federal Government provides the the rates of commercial policies at all. million in terrorism insurance cov- insurance for the risk to the tune of 80 In other States, such as my State of erage for their $517 million stadium. percent or 90 percent. But in the proc- Florida, the State of Florida Depart- The St. Louis Art Museum’s insurer ess of what we are going to charge for ment of Insurance sets a range of the informed that museum that it would the portion that is covered by the in- commercial policies’ rates, as to what no longer be covered for terrorism surance company, that is going to be they may be, without the approval of losses. That could well prevent touring passed on to the consumers. the Department of Insurance. shows, and undermine tourism in that Ultimately, I will offer an amend- The PRESIDING OFFICER (Mr. city. ment that will call for a range, as de- JOHNSON). The time of the Senator has And a collection of Midwestern air- termined by the Secretary of the expired. ports reported that their aviation li- Treasury, as to what can be charged, Mr. NELSON of Florida. I will con- ability premium increased close to 300 where that premium, going into an include my opening remarks. I look for- percent post 9/11 and those policies ex- surance company, will be separated for ward to the debate. I thank the Sen- cluded terrorism losses. accounting purposes, it will be seg- ator from Connecticut for bringing this Last year, when this issue first sur- regated, so it will not be mixed up with important legislation to the floor. I faced, we tried to move a bill forward, all the other premiums for a slip and thank the Senate for this opportunity but that process didn’t take hold. fall and dog bites and all kinds of li- to be heard on a most important issue, Many members believed this issue abilities. It will be separate, so it will important not only to the businesses of wasn’t a problem for them that it be under the glare of the full light of this country but to the consumers of wasn’t in their back yards. day as to how much premium is there, this country as well. We know better than that now. At and therefore the Secretary of the Mrs. CARNAHAN. Mr. President, I least I hope we all do. Treasury, with the advice of the Na- strongly support the Terrorism Risk The impact of the lack of terrorism tional Association of Insurance Com- Insurance Act. insurance is being felt in cities and missioners, can determine what is a The September 11 tragedy has af- towns all throughout America. And so range—not a specific amount, but what fected our Nation in innumerable ways. I say to all my colleagues this is an is a range that is fair and affordable. One of the economic impacts has been issue that affects your state and your That is the place I am going. that the availability and affordability constituents. The only effective way to guarantee of terrorism insurance has been se- If there’s a port in your state, your that the rates will be stabilized under verely limited. affected. If there’s a bridge or a tunnel this circumstance is to federally regu- Uncertainty in the market is freezing in your state, you are affected. If you late the premium rate for the risk of commercial lending, preventing real have an airport or railway system in terrorism. Why Federal? Because the 50 estate transactions from going for- your state, you are affected. If you’ve insurance commissioners do not have ward, and slowing various construction got an NFL, NBA, NHL or Major the data to do this. And the Federal projects. Therefore I believe that we League Baseball stadium or arena in Government is picking up the biggest should move quickly to enact a federal your State, you’re affected. If you’ve part of the risk under this bill. Remem- terrorism insurance backstop. got a college football stadium in your ber, it is only the risk, basically, from I have heard from businesses State, where tens of thousands of peo- conventional kinds of terrorism be- throughout Missouri—from various ple gather on Saturdays to root for cause chemical, biological, and nuclear sectors of our economy—that are being their team and sing their alma mater, terrorism is exempt from most com- adversely impacted by current market you’re affected. mercial insurance policies. So that is conditions. But the lack of terrorism It is time to stop the stalling, stop not a risk we are going to be pro- insurance is hurting working families the games and time for us to pass an tecting. as well. interim federal backstop to ensure The Secretary of the Treasury is in As President Bush pointed out, ‘‘If against future acts of terrorism. the best position to consult with the people can’t get terrorism insurance on It is time for us to pass this bill, and actuaries and to determine the actual a construction project, they’re not I strongly urge my colleagues to sup- financial risk insurers would assume going to build a project, and if they’re port it. under the bill. If the Congress commits not going to build a project, then some- I thank the Senator from Con- billions of taxpayer dollars and man- one’s not working.’’ necticut for his efforts and persistence dates no real rate protection, we will This legislation will promote invest- in this endeavor. I look forward to have shirked our responsibility to the ment and provide the certainty nec- helping him as this process goes for- taxpayers and to the consumers. essary to reinvigorate commercial ward. We gnash our teeth around here on lending activities. Again, I thank my colleague from politically charged issues such as rais- I have supported each of the unani- Florida for being generous and respect- ing taxes. Let me tell you, as an insur- mous consent requests that have been ful, giving me the opportunity to ance commissioner for 6 years, there is offered since December to bring a ter- present my remarks. an issue that is more explosive to the rorism insurance bill before the Sen- Mr. NELSON of Florida. Of course, consuming public than the raising of ate. the Senator from New Jersey is one of taxes, and that is the raising of their I am pleased that we have finally the great new bright lights of this insurance premiums. been able to take up this bill. This body. What a privilege it is for me to So I call to the attention of the Sen- meaningful Federal backstop is long serve with him. What a privilege it is ate that as you consider a bill such as overdue, and I hope that we can enact to have the value of his opinion. this that has no mechanism by which it expeditiously. I agree with everything he said. Now to stop those rate hikes, you had better The PRESIDING OFFICER. The Sen- the question is, how do we get from think twice, and hopefully you will ator from Connecticut. here to there, to protect everybody and think very favorably about the amend- Mr. DODD. I see my friend from Ken- protect the consumer as well from ment I will be offering later on. tucky. I will take a few minutes to

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5478 CONGRESSIONAL RECORD — SENATE June 13, 2002 make an opening statement. I see he is that number. That is the situation we There is a lot in this bill that is very here. I do not want to delay him any are in. similar to what we worked out last longer. I will truncate my remarks and You can understand, while people fall, but it would not move along at then my anticipation is we will turn to may wish that it somehow were done that time for reasons I will not bother the Senator from Kentucky to offer an by just the Federal Government writ- to go into again. amendment to get the process going. ing a check and the people providing Who is supporting what we are trying Let me take a few minutes, if I may. this kind of coverage, that in a free to do? We have now heard from a number of market you have to encourage or in- I am troubled by our delay in enact- my colleagues. I appreciate the com- duce people to stay involved. There is ing this legislation because of the tre- ments of my colleagues, particularly no requirement under law that they mendous demand that we act and act those of Senators SARBANES, CORZINE, provide this kind of coverage. precipitously. There is a bipartisan let- and SCHUMER. The idea of how we can keep com- ter from 18 Governors from across the I ask unanimous consent the junior merce moving, and major construction country representing every region of Senator from New York, Mrs. CLINTON, programs underway—by the way, based the country, which I ask unanimous be added as a cosponsor of this bill as on the accumulated evidence we have, consent to be printed in the RECORD. well. most every State can demonstrate There being no objection, the letter The PRESIDING OFFICER. Without some serious problem they have in a was ordered to be printed in the objection, it is so ordered. major commercial or real estate devel- RECORD, as follows: Mr. DODD. I thank the leadership for opment. APRIL 15, 2002. their efforts on this bill. This is a com- This morning’s newspaper headlines Hon. TOM DASCHLE, plicated area of law. This is a thank- in the Washington Post that my col- Senate Majority Leader, Capitol Building, less task. When you get involved in league from Florida has raised, I think, Washington, DC. something such as terrorism insurance, point out the problem we are facing. I Hon. TRENT LOTT, there are other matters that may at- will talk about properties in the Dis- Senate Republican Leader, Capitol Building, Washington, DC. tract and galvanize the attention of trict of Columbia. Obviously, the at- Hon. DENNIS HASTERT, the American public, but this is a sub- tack on the Pentagon on September 11, Speaker of the House of Representatives, Capitol ject matter that can glaze over the and the news the other day about so- Building, Washington, DC. eyes of even the most determined lis- called ‘‘dirty’’ bombs that might have Hon. RICHARD GEPHARDT, tener, when you get into the arcane been used—and I gather this was some- House Democrat Leader, Capitol Building, world of insurance, particularly of ter- what shaky information, but put that Washington, DC. rorism insurance, the reinsurance in- aside for a second—the Nation’s Cap- DEAR CONGRESSIONAL LEADERS: As a result dustry dealing with commercial loans ital certainly is a target of oppor- of the events of September 11th, the nation’s and lending practices, and how it af- property and casually insurance companies tunity. have or will pay out losses that will exceed fects the market at large. We see rates already going up for $35 billion dollars. Since the first of January, I beg the indulgence of our colleagues properties located in the District of Co- many insurance companies, self-insurers and when we go through this, to understand lumbia. That is the subject matter of states have been faced with a situation what we have tried to do here in as the Washington Post article this morn- where they are unable to spread the risk that much a bipartisan fashion as possible, ing. In fact, the Washington Post itself they insure because of the unavailability of with the advice and consultation of or- is having a difficult time getting cov- reinsurance protection. In the event of an- ganizations, from the AFL/CIO to erage for workman’s compensation, other major attack, some companies or per- major banks and lending institutions, and the National Geographic building haps a segment of the industry would face insolvency. While most states have approved insurance companies, the Department has a similar problem, and there are a limited exclusion for terrorism with a $25 of the Treasury, and others in crafting similar problems around the city. million deductible, exclusions for workers’ something that will get us out of this I will not go into all of the details in compensation coverage are not permitted by particular situation. the article, suffice it to say that this is statute in any state. The present situation Let me just preface my remarks by a significant story and my colleagues poses a grave risk to the solvency of the in- saying this is a problem. I know there ought to take a look at it. It highlights surance industry, state insurance facilities, may be some who will argue this is not some of the difficulties we are facing. economic development initiatives, and the an issue. It is a massive issue and a This is not a perfect piece of legisla- ability of our states to recover from impacts of the September 11th attacks. growing one. I wish it were otherwise. tion. Obviously, many of us might have In the months after the attack on our na- I wish this were not the case. But the written this somewhat differently than tion, legislation passed in the House and was data that is coming in indicates that proposed. But, obviously, in a body like introduced in the Senate to create a back- we have a major blockage, if you will, this with 100 Members, with a lot of stop for the Insurance industry so they could in the normal flow of commerce, and different ideas and thoughts, you try to continue to provide protection to their cus- that is the inability to acquire ter- come together with what you can to tomers. The Administration has also sup- rorism insurance, which has a very make some sense and move the product ported this concept. Currently, there is negative impact when it comes to lend- forward. broad bi-partisan agreement for providing an There are differences of opinion on Insurance backstep. Governors believe this is ing institutions putting their resources an important goal that should be inhibited on the table, where the exposure could the substance of this legislation. We by other issues. be significant. are going to hear some of them raised Since late December, the lack of a finan- Just to put it in some perspective for with the amendments that will be cial backstop has started to ripple through people, the calculation of the casualty brought up and debated. My hope is the economy and will continue to do so. This and property loss—I am obviously not that the substance of this legislation will further impact the ability of the econ- going to talk about the loss that goes will prevail. omy to recover from the current recession. beyond that we can put a dollar sign The provisions that deal with the As Governors, we are facing many critical creation of a temporary Federal back- issues resulting from the September 11th cri- on. But for the loss to which you can sis. The emerging problem in insurance cov- put a dollar sign in the property and stop for terrorism insurance represent erage only serves to exacerbate our recovery casualty area on September 11, the es- a very hardcore compromise negotiated efforts. In view of this, we, the undersigned timates run no less than $50 billion, with Senator GRAMM of Texas, Senator Governors, respectfully urge the Congress to just in property and casualty. SARBANES, Senator SCHUMER, myself, quickly complete its work on the terrorism If you start adding others, obviously Senator ENZI, as well as the State in- reinsurance legislation in order to return the numbers go up. To give you some surance regulators, White House, and stability to U.S. insurance markets. idea, if you had a September 11-like the Treasury Department. This is a Sincerely. event somewhere in the United States modified version of what we agreed to Jim Hodges, Governor, South Caroline; Mike Johanns, Governor, Nebraska; and an accumulation of events like last fall. Senator GRAMM is not a spon- Paul E. Patton, Governor, Kentucky; September 11, the availability of re- sor of the bill which I introduced for Judy Martz, Governor, Montana; Don sources today to pay the property and the reason I am sure he will explain Siegelman, Governor, Alabama; Bob casualty losses is about 20 percent of himself when he comes to the floor. Holden, Governor, Missouri; Mark R.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5479 Warner, Governor, Virginia; John G. Helms; Wayne Allard; Mike DeWine; terrorism insurance have called for Rowland, Governor, Connecticut; Susan Collins; Mike Enzi; Jack Reed; Senate action as well. There are some Angus S. King, Jr., Governor, Maine; George V. Voinovich; Debbie Stabenow; who believe there is no reason for the Mike Huckabee, Governor, Arkansas; Mary L. Landrieu; Zell Miller; Max Federal Government to act. They cite a Jim Geringer, Governor, Wyoming; Cleland; Dianne Feinstein; Lincoln George H. Ryan, Governor, Illinois; Bill Chafee; Chuck Hagel; John Ensign; few press articles which suggest ter- Owens, Governor, Colorado; Scott Olympia Snowe; John F. Kerry; Ted rorism insurance is available in some McCallum, Governor, Wisconsin; Jeb Kennedy; Orrin Hatch; Daniel K. areas and wonder why the Congress Bush, Governor, Florida; Frank Inouye; Evan Bayh; Joe Lieberman; should step in with legislation such as O’Bannon, Governor, Indiana; Jane Jon Corzine. we are proposing. Swift, Governor, Massachusetts; Bob Mr. DODD. Mr. President, we have Terrorism insurance is available, it is Taft, Governor, Ohio. had repeated letters from the Presi- true, in limited areas. However, it is Mr. DODD. Mr. President, they lay dent, Secretary O’Neill, and others in not available in many buildings, power- out their concerns about what is going the administration which certainly plants, shopping centers, and transpor- on in their own States. point out the difficulty. tation systems that are perceived as We have letters from 30 of our Senate I will quote the President’s com- high risk for terrorism acts—hence, the colleagues representing a broad array ments during the White House gath- article this morning in the Washington of the political spectrum. I ask unani- ering back in April. He said: Post about our Nation’s Capital. In mous consent that those letters be If people can’t get terrorism insurance on those cases where terrorism insurance printed in the RECORD. a construction project, they are not going to is available, it is often unaffordable There being no objection, the letter build the project. If they are not going to and very limited in its scope and was ordered to be printed in the build the project, then someone is not work- amount of coverage. RECORD, as follows: ing. We in Washington must deal with it, and There are plenty of examples. Also, UNITED STATES SENATE, deal with it in a hurry. again, the Washington Post story this Washington, DC, April 22, 2002. Secretary O’Neill commented: morning is the one that comes to mind Hon. TOM DASCHLE, There is a real and immediate need for immediately. I mentioned the National Majority Leader, Senate. Congress to act on terrorism insurance legis- Geographic headquarters in town Hon. TRENT LOTT, lation. The terrorist attacks on September dropped its workman’s compensation Minority Leader, Senate. 11th have caused many insurance companies because it received threats to large DEAR MAJORITY LEADER DASCHLE AND MI- to limit or drop terrorists risk coverage from NORITY LEADER LOTT: We are writing to urge concentrations of employees and joined their property and casualty coverage, a move with the District of Columbia govern- prompt Senate passage of short-term, ter- that leaves the majority of American busi- rorism insurance backstop legislation that nesses extremely vulnerable. The dynamic, ment’s insurer as a last resort. would stabilize the insurance market for pol- in turn, threatens America’s jobs, and will The Washington Post is trying with icyholders and provide financial security in wreak havoc on America’s economy. inability to secure its own workman’s the event of future terrorist acts. As you compensation insurance. Workplaces Just this week, Secretary of Treas- both know, members of this body quickly re- around the Nation’s Capital have ei- ury O’Neill, Larry Lindsey, Director of sponded with a legislative package in the ther been denied coverage or have of- the National Economic Council, Mitch wake of September 11 to ensure the contin- fered reduced coverage. ued availability of insurance for terrorist-re- Daniels, Director of the Office of Man- Why is this going on? When you have lated acts. The proposal provided a short agement and Budget, and R. Glenn term, financial backstop so that private a $50 billion event, you can understand. Hubbard, Director of the Council of If I could wave a magic wand and say, markets for terrorism coverage could be re- Economic Advisors, wrote Senate lead- established. whether you like it or not, you have to While the House passed H.R. 3210, the ‘‘Ter- ership outlining again the significance be there, you have to have premiums— rorism Risk Protection Act’’ late last year, of moving forward with this bill. the law requires them to collect pre- the Senate was unable to bring a legislative The labor unions as well have called miums so they can provide the kind of package to the floor before our adjournment for action here—a rare occurrence resources they need to pay out if an in December. Since that time, we have heard when you get this kind of symmetry event occurs. The law requires it. from the financial services industry, the between both labor and management. The question is how do you know how building and construction sectors, the labor I quote from Ed Sullivan, president big an event is going to be. We had a community, small businesses, and other im- of the Building Construction Trades $50 billion one. That is at least a floor pacted parties that there is currently either Department of the AFL–CIO. He says: no insurance against acts of terrorism or in- of what we know it costs. That is with- adequate levels of insurance. This problem is President Bush, like all of us, realize that out including workman’s compensa- having a delirious impact on our economy, as long as terrorism is a threat, new job-cre- tion, life insurance and others. Just in including with respect to the financing and ating projects are being delayed or canceled property and casualty, that is the num- because we do not have adequate insurance construction of new real estate projects. A ber. host of additional parties, including hotels, coverage, or workman’s compensation coverage available. If you are going to have the industry convention centers, hospitals, local munici- be out and the private sector do this, palities, and professional sports teams are The Union Building Trades: they have to cost it out. I wish it could also pressing for needed action. Particularly Our members join in urging the U.S. Sen- troubling is the evidence that insurers can- be for nothing. I wish it wouldn’t cost ate to pass terrorism risk insurance legisla- anything at all. That is a mythical not provide needed workers compensation tion without delay. coverage where there are large aggregations The National Association of Insur- world. The reality is that banks don’t of individuals. As you know, these claims are ance Commissioners from across the lend money unless they can have some bolstered by a recently released study by the country, which is made up of State in- coverage to protect their exposure. If General Accounting Office and by testimony surance regulators, which continues to you are not going to give the coverage provided recently to the House Financial to protect the exposure, they don’t Services Subcommittee on Oversight. strongly urge the creation of a Federal backstop for terrorism insurance, has lend the money. The Senate should be proud of its work fol- It is not complicated. If you look at lowing the tragic events of September 11. We to its displeasure begun the process of the commercial mortgage-backed secu- passed numerous pieces of legislation to ad- excluding terrorism insurance from rity business, which covers all but dress the security of our country and the via- standard casualty property policies. bility of key sectors of our economy. We about $1 billion of all commercial lend- On behalf of the national insurance regu- should also try to prevent severe economic ing that goes on, already in the first lators, I strongly urge the Senate to quickly dislocation and should certainly not fall quarter it is down $7 billion—10 per- pass legislation that will make insurance af- short in helping to ensure that employers fordable and available to all American con- cent. You are already finding a stall and their workers have adequate levels of in- sumers and businesses. Only the Federal going on in that area. surance in the event of additional terrorist Government has sufficient resources at this Most of my colleagues understand acts. time to help restore adequate levels of risk that it is like residential mortgage- We urge you to bring a terrorism insurance measurement and financial certainty to our bill to the Senate floor expeditiously. backed securities. Security in the com- markets. Sincerely, mercial area is where they go out and Judd Gregg; Jim Bunning; John Breaux; Finally, a broad coalition of small bundle them together and have a sec- E. Benjamin Nelson; Dick Lugar; Jesse and large businesses and consumers of ondary market to cover it. Right now,

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5480 CONGRESSIONAL RECORD — SENATE June 13, 2002 10 percent in the first quarter is al- league from Florida would like, but in event. As I mentioned earlier, there are ready down in that area. our bill that we have proposed there is only about 20 percent of the resources I am not making the numbers up to an accounting requirement that says to cover a similar kind of event that highlight the significance of what we you must at least have a separate ac- occurred 9 months ago on the 11th of are talking about. George Washington counting for the premiums collected September. So this is not so much University’s downtown campus three for terrorism insurance. about their health and well-being as it blocks west of the White House has cut So there is a long list here of projects is those who rely on this industry for the school’s former $1 billion property that I could talk about that go all their own health and well-being. and casualty policy in half, and its pre- across the country that highlight ev- As I said, the industry is paying off miums have been raised 160 percent, erything from the Golden Gate Bridge losses from the September 11 attacks and advise that renewing terrorism to the Dolphin Stadium in Florida that estimated to be roughly $50 billion. The coverage would cost 15 times more. are having problems—the United Jew- industry has made clear that despite That is what we are up against here. ish Appeal, the Hyatt Corporation, the this unprecedented loss, it remains I can rail against it. Obviously, there Steve Wynn’s operation in Las Vegas very strong and solvent. is no great wisdom here to attack the our colleague from Nevada has already The question that many will ask is insurance industry. That is a pretty talked about, Amtrak, the Cleveland why we need to help an industry that is safe bet out there politically. Municipal School District, Baylor Uni- financially sound? And I think I have But the fact is, when you end up with versity. The list goes on and on and on. laid that out. The answer is we are not institutions like George Washington Again, we are not making these sto- protecting insurance companies, we are University, the National Geographic, ries up. This is the evidence we are re- protecting policy owners and busi- private sector people here in the Na- ceiving from across the country, that nesses and workers. tion’s Capital, it would be difficult to there is a problem, and it is a growing This legislation makes sense because say we are going to go out and cover one. We probably should have acted it is based on three principles that this after we had a $50 billion loss, to earlier, but I don’t think it is too late must be included in any bill that just jump back in somehow; and for for us to be moving forward. reaches the President’s desk. people to say, by the way, don’t raise So that is the background of it. First, it makes the American tax- your premiums to do it, and you better Every perspective homeowner, of payer the insurer of last resort. We have the resources to pay for it. I do course, needs insurance to obtain a could do what we did in World War II. not know where people acquired their mortgage from a bank. Similarly, in- In World War II, the Federal Govern- math knowledge, but this does not dustry as diverse as commercial real ment insured everything. We just paid work out, unfortunately. estate, shipping, construction, manu- all the claims. I don’t need to tell you So what we are trying to do is get facturing, and retailers require insur- what could happen if that happened this industry back in because we can- ance to obtain credit loans and invest- today. But that is a point of view: Just not require them to do it. So we have ments necessary for their business op- let the Federal Government pick up come up with a backstop idea that erations. Additionally, the creation of the claims of this stuff, and don’t says: Look, the first $10 billion of new construction projects require busi- worry about having a private sector in- losses you are on the hook for. When it ness loans. I think most people under- surance industry being involved at all. gets beyond that, we are going to work stand that. But I don’t think most Americans out a system that allows us to help in If you ever bought a home, you know think that is a wise solution nec- that kind of cost, for 2 years, by the you don’t get the mortgage unless you essarily given the potential exposure way, with a sunset provision. have insurance. That is what the law we have. So I think it makes sense to Some would like it longer. I think we requires. That is just as true in the have the industry be the ones that are could make a good case for it being commercial areas. So if there isn’t in- going to be on the front lines respon- longer because it is awfully difficult, surance available, the banks are not sible to do what is best, to calculate with some major real estate develop- going to lend you money to buy a the risk, to assess premiums, to pay ment going on that has more than a 2- house. Maybe some people can buy a claims. I don’t necessarily believe we year lifespan. But I am not sure how house by just writing out a check. want to set up another agency of Gov- much this institution will tolerate in Most Americans need a mortgage. And ernment, maybe under homeland secu- terms of time, so it has to be abbre- most Americans understand that the rity. Now that we are reorganizing viated to some extent. Then, hopefully, banks want to have some insurance on Government, maybe someone would as the market develops, the costing out that property to cover their potential like to add a branch to become an in- can be calculated, and we can get the loss. So that is why you have to be able surance company. I don’t think so. Federal Government out of this alto- to get that. Secondly, the legislation should pro- gether. That is true in commercial areas as mote competition in the current insur- I know of no one who wants to turn well. If you can’t get the insurance, ance marketplace. Competition is the the Secretary of the Treasury into an then the banks don’t lend you the best way to ensure that the private insurance regulator. I am afraid that is money to build the projects, and people marketplace assumes the entire re- what some of my colleagues are sug- lose jobs. Those are the dots you con- sponsibility for insuring against the gesting. That is not what this is about. nect, and that is what is going on all risk of terrorism without any direct That is a separate debate. Maybe some- across the country as one of the effects Government role as soon as possible. day we are going to have a debate of 9–11. It is a more complicated sub- That is why this bill has the very short around here that says the Federal Gov- ject matter, but it is a serious one that lifespan we are talking about. This is ernment ought to become an insurance the President, the Secretary of the not setting up something in perpetuity. company. That is a debate, but I don’t Treasury, organized labor, and others It is setting up a very short lifespan. think that is the debate we want to have highlighted. Right now it is 24 months in the bill. have here today. Some critics will argue, Why should And I think there will be suggestions The debate here today is whether or we do anything to help the insurance to extend that, which may have some not we are going to set up a program industry? Quickly, let me add, this is merit, by the way, I suggest, to those that is going to cause the flow of com- not about the financial health of the who may be offering them. But it is merce to get reignited in areas where insurance industry at all. It is about going to be limited, in any case. we have a significant stall. the financial well-being of nearly every Thirdly, the legislation ensures that Let me stay to my colleagues—and individual and company in America all consumers and businesses can con- my colleague from Florida raises the that requires this industry to be tinue to purchase affordable coverage issue—our bill does require that there healthy enough to be in business. for terrorist acts. be an accounting here separating out If you end up being put out of busi- Without action, consumers would be the premiums collected for terrorism ness because you don’t have the re- unable to get insurance, or insurance insurance from the normal course of sources, your solvency gets wiped out, that is available would be totally business. We do not go as far as my col- as it would be today with a 9–11-like unaffordable for them.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5481 Very simply, and lastly, I will just the assets and, of course, to the policy- assures that we don’t punish the vic- explain briefly—Senator SARBANES has holder to make sure their rates are not tims of terrorism for the criminal acts done this already—but let me just take too high and coverage will be there, if of the terrorists. another minute or so for those who needed. We make it very clear in this For months now, the Senate has been may not have heard his comments to bill that we want to keep the role of locked in a debate about whether an briefly describe how S. 2600 actually the State insurance commissioner via- American victim of a terrorist attack, works. ble. whether it is Walt Disney World, the It will provide Federal terrorism in- We don’t want to get in the business Mall of America, Giants Stadium, or surance in the event of another signifi- of setting up some massive new govern- the Las Vegas MGM Grand, should be cant terrorist attack. This legislation ment program with a new regulator held liable for punitive damages. is designed to maximize private sector with a whole bunch of new rules estab- Remember, punitive damages are in- involvement and minimize the Federal lished at the Federal level to start reg- tended to punish bad actors. That is role. The bill does not create a new ulating this industry. That is a debate what punitive damages are about. In Federal insurance regulator; rather, it that will occur to some degree down all other ways, defendants are com- promotes the authority of existing pri- the road, but today is not the day. This pensated. Punitive damages are de- vate sector mechanisms. is not the place or time for that debate. signed to punish the defendant. They The Federal backstop is temporary, This is an emergency. It should have are not designed to compensate vic- lasting only 1 year unless extended for been dealt with a long time ago. tims. an additional year by the Secretary of My hope is that my colleagues will Nothing in the Republican proposal the Treasury. offer their amendments, we will get for a base bill has sought to limit dam- The bill envisions that the private through this, and vote it up or down. ages to compensate victims. There are sector alone would respond to small- Maybe our colleagues will decide this no efforts on our part in the Senate to scale attacks, such as car bombs, arson bill is not necessary; they don’t want limit damages to compensate victims. fires, and the like. to be a part of it. Then we ought to say What we are talking about is punitive The Government intervention only so. Then end the debate entirely and go damages which are designed to punish occurs in insured losses in excess of a about our business. I suspect that a defendants. specific trigger. The amount each in- majority of our colleagues think this We are talking solely about whether surance company must pay before the has value and is important. My hope is American victims of a terrorist attack Federal participation begins is deter- we can get it done sooner rather than should be punished not once but twice, mined by a statutory formula based on later. attacked first by the terrorists, at- each company’s market share. Larger I turn to my colleague from Ken- tacked second by the lawyers. companies pay more through the re- tucky who, I know, has a very impor- In pondering this question our col- sulting individual company retentions. tant amendment. We will try to deal leagues who disagree and their allies Individual company retentions are with that and move the process along. have raised an interesting point—that calculated based on each company’s The PRESIDING OFFICER. The Sen- there are some victims of terrorism market share of $10 billion in the first ator from Kentucky. whose conduct may be so flagrant, in- year, and $15 billion in the second year AMENDMENT NO. 3836 deed so criminal, that as a matter of if the program is extended, meaning Mr. MCCONNELL. I thank my friend public policy, we should not let it go that large companies would sustain from Connecticut. I certainly agree unpunished. So to address that concern hundreds of millions of dollars in losses with him that this is legislation we head on, Senator GRAMM and I offered before the backstop is triggered. should have passed quite some time a new compromise for a base bill that In addition, once the backstop is ago. The principle sticking point with I fully expected my Democratic col- triggered, each insurance company re- which I am concerned is the liability leagues would embrace, at least I had mains responsible for 10 to 20 percent issue. hoped they would. Our proposal would of every claim dollar paid. Under the underlying bill, punitive permit punitive damages against any Lastly, I would say as well, regarding damages are available against victims defendant who has been convicted of a the States, we require that these ac- of terrorism. Let me repeat that. Hav- crime in State or Federal court. Using tions be brought in Federal court, that ing just been attacked by the terror- our criminal justice system to deter- there be a venue that is closer to where ists, the victims of that terrorist act mine what conduct is worthy of pun- the action may have occurred. are subject to punitive damages under ishment is a simple, commonsense so- But let me quickly point out, we the underlying bill. lution to ensure that no criminals have tried very strongly to retain the The only concession that those advo- avoid punitive damages in civil cases. role of the State insurance commis- cates of this kind of litigation have Let me state that again: In an ideal sions. There are 40 States right now made is to take the taxpayers off the world, we would not have any punitive that allow for rates to go into effect, hook for punitive damages. But the damages available against a victim of a and then the State commissioners can way the thresholds are allocated under terrorist attack. But to help address determine whether or not those rates the balance of the bill, it is highly like- the concerns of those on the other side are excessive or not. And 10 States rely that the taxpayers will be liable that punitive damages might lie in quire that rates be approved before under any attack, and all other kinds some extraordinary circumstance, the they go into effect. That is in commer- of damages other than punitive dam- amendment I am about to offer pro- cial property. ages will be available against the tax- vides a punitive damage opportunity In this bill, we say the rates could go payer. against victims of terrorism who them- into effect, but we do not deny, as ex- We are talking about a bill that selves have been convicted of a crimi- ists in 40 States, the State insurance while certainly in concept is desirable, nal act. That makes sense because if commissioners to then rule on those it has a number of significant flaws, you have been convicted of a criminal rate increases. So we are not setting a one of which I would like to begin to act, punitive damages ought to lie be- Federal regulator in that regard. We try to fix this morning by laying down cause of the nature of the conduct. are still keeping that in the States, the amendment I will lay down shortly. Although Senator GRAMM and I infor- and the State insurance commissioners While many of my colleagues on the mally offered this proposal before the do not lose that power. other side of the aisle have been talk- Memorial Day recess, we did not for- The State insurance commissioners ing about the need for a terrorism in- mally offer it on the floor because we have the responsibility, obviously, to surance bill, my Republican colleagues wanted to give the other side plenty of keep an eye on the rates, but they also and I have been busily preparing for ac- time to consider this approach as a have an obligation to see that the in- tion. Two weeks ago, Senator GRAMM compromise for a base bill. surers are solvent so they can pay and I broke a month-long logjam by in- Actually our proposal was the second claims, if, God forbid, some event oc- formally offering a proposal for a base compromise supported by many on this curs. So the responsibility is dual, both text that establishes a responsible pro- side of the aisle. The first compromise to the insurer to make sure they have gram for Federal assistance and from the House-passed bill included a

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5482 CONGRESSIONAL RECORD — SENATE June 13, 2002 stripped down liability section agreed suits and punitive damages.’’ They sent section (a)(1) shall be derived from the law, upon by Senators GRAMM, SARBANES, a letter to Senator LOTT, dated June including applicable choice of law principles, DODD, and ENZI. But that compromise 10. Let me say it again. All four of of the State in which the act of terrorism was later undone in December by oth- these top officials in the Bush adminis- giving rise to the action occurred, except to ers on the other side of the aisle. tration say they would recommend the the extent that— After months of inaction, Senator President veto legislation that ‘‘leaves (1) the law, including choice of law principles, of another State is determined to be GRAMM and I came back to propose this the American economy and victims of applicable to the action by the district court second compromise in the hopes that terrorist acts subject to predatory law- hearing the action; or our colleagues on the other side would suits and punitive damages.’’ (2) otherwise applicable State law (includ- agree to these protections. That gives us some parameters or ing that determined under paragraph (1), is Sadly, the opposite appears to have outlines here if we are serious about inconsistent with or otherwise preempted by taken place. Our colleagues on the making a law and not simply playing Federal law. other side rejected our idea by pro- legislative games. We ought to pass a (c) FEDERAL JURISDICTION.— ceeding to a bill that would allow bill that has a chance of being signed. (1) IN GENERAL.—Notwithstanding any American victims of a terrorist attack I think it is pretty clear that the Presi- other provision of law, not later than 90 days to be held liable for punitive damages. dent’s top advisers in this area would after the date of the occurrence of an act of Under this underlying bill, American recommend that he veto legislation terrorism, the Judicial Panel on Multidis- victims of a terrorist attack could be similar to the underlying bill. So we trict Litigation shall assign a single Federal district court to conduct pretrial and trial held liable for punitive damages. have an opportunity, if we are serious about this legislation, to fix it up and proceedings in all pending and future civil This approach to punitive damages actions for claims arising out of or resulting does not compensate plaintiffs, does get rid of this outrageous punitive from that act of terrorism. not prevent the double punishment of damage provision that subjects victims (2) SELECTION CRITERIA.—The Judicial American companies who are victims of terrorism to these awards, unless Panel on Multidistrict Litigation shall se- of a terrorist attack, and does nothing they themselves have engaged in crimi- lect and assign the district court under para- to prevent insurance money intended nal conduct, in which case I must say I graph (1) based on the convenience of the to rebuild homes and reopen American think they deserve punitive damages in parties and the just and efficient conduct of that unlikely eventuality. the proceedings. business from being diverted to pay (3) JURISDICTION.—The district court as- lottery-sized litigation awards. Interestingly, for those who say liability protections are not an impor- signed by the Judicial Panel on Multidistrict The message this sends to the Amer- Litigation shall have original and exclusive ican people is that some of our col- tant part of terrorism insurance, let jurisdiction over all actions under paragraph leagues are not truly concerned with me share with you a quote from a re- (1). For purposes of personal jurisdiction, the guarding against criminal conduct. In- cent report by the Joint Economic district court assigned by the Judicial Panel stead, they appear more concerned Committee: on Multidistrict Litigation shall be deemed with guarding the rights of personal in- Liability costs are estimated to constitute to sit in all judicial districts in the United States. jury lawyers to seek punitive damages the largest single cost of the 9–11 attacks and could easily exceed the property dam- (4) TRANSFER OF CASES FILED IN OTHER FED- against American victims of terrorism, age, life insurance, and workers compensa- ERAL COURTS.—Any civil action for claims protecting the opportunity for Amer- tion payments combined. arising out of or resulting from an act of ter- ican lawyers to seek punitive damages That is from the ‘‘Economic Perspec- rorism that is filed in a Federal district court other than the Federal district court against American victims of terrorism. tives on Terrorism Insurance,’’ pre- On Saturday, the New York Times, assigned by the Judicial Panel on Multidis- pared by the Joint Economic Com- certainly a publication I am not fre- trict Litigation under paragraph (1) shall be mittee in May of this year. transferred to the Federal district court so quently allied with on any matter, With this backdrop, I send the asked Senate Democrats to move to- assigned. amendment to the desk on behalf of (5) REMOVAL OF CASES FILED IN STATE ward our liability proposal. This is the myself, Senator GRAMM, and Senator COURTS.—Any civil action for claims arising New York Times talking: LOTT. out of or resulting from an act of terrorism Senate Democratic leaders eager to pass The PRESIDING OFFICER. The that is filed in a State court shall be remov- their own bill must compromise, even if it clerk will report. able to the Federal district court assigned by means offending trial lawyer groups. The legislative clerk read as follows: the Judicial Panel on Multidistrict Litiga- tion under paragraph (1). This is the New York Times. The Senator from Kentucky [Mr. MCCON- Senate Republicans appear willing to ac- NELL], for himself, Mr. GRAMM, and Mr. (d) APPROVAL OF SETTLEMENTS.—Any set- cept far more modest curbs on terrorism-re- LOTT, proposes an amendment numbered tlement between the parties of a civil action lated litigation than their House brethren. 3836. described in this section for claims arising Their proposals provide the basis for an Mr. MCCONNELL. Mr. President, I out of or resulting from an act of terrorism eventual reconciliation of House and Senate ask unanimous consent that further shall be subject to prior approval by the Sec- efforts. reading of the amendment be dispensed retary after consultation by the Secretary This is in the New York Times, the with. with the Attorney General. liberal New York Times, in an editorial The PRESIDING OFFICER. Without (e) LIMITATION ON DAMAGES.— entitled ‘‘Insuring Against Terrorism,’’ objection, it is so ordered. (1) IN GENERAL.—Punitive or exemplary June 8, 2002, just a few days ago. The amendment is as follows: damages shall not be available for any losses The home office of the New York (Purpose: To provide for procedures for civil in any action described in subsection (a)(1), Times, of course, is in New York City actions, and for other purposes) including any settlement described in subsection (d), except where— where this problem is the most appar- On page 29, strike line 1 and all that fol- (A) punitive or exemplary damages are per- lows through page 30, line 17, and insert the ent. They would like to see some ac- mitted by applicable State law; and following: tion, and they think having some rea- (B) the harm to the plaintiff was caused by sonable limits on punitive damages SEC. 10. PROCEDURES FOR CIVIL ACTIONS. a criminal act or course of conduct for which makes sense in the context of moving (a) FEDERAL CAUSE OF ACTION.— the defendant was convicted under Federal (1) IN GENERAL.—There shall exist a Fed- or State criminal law, including a conviction this legislation along. eral cause of action for claims arising out of On Monday, four top administration based on a guilty pea or plea of nolo or resulting from an act of terrorism, which contendere. officials, including Treasury Secretary shall be the exclusive cause of action and O’Neill, National Economic Council Di- (2) PROTECTION OF TAXPAYER FUNDS.—Any remedy for such claims, except as provided amounts awarded in, or granted in settle- rector Larry Lindsey, Office of Man- in subsection (f). ment of, an action described in subsection agement and Budget Director Mitch (2) PREEMPTION OF STATE ACTIONS.—All (a)(1) that are attributable to punitive or ex- Daniels, Council of Economic Advisors State causes of action of any kind for claims emplary damages allowable under paragraph Director Glenn Hubbard, announced arising out of or resulting from an act of ter- (1) of this subsection shall not count as in- they would recommend that the Presi- rorism that are otherwise available under sured losses for purposes of this Act. State law, are hereby preempted, except as dent veto legislation that ‘‘leaves the provided in subsection (f). (f) CLAIMS AGAINST TERRORISTS.—Nothing American economy and victims of ter- (b) GOVERNING LAW.—The substantive law in this section shall in any way be construed rorist acts subject to predatory law- for decision in an action described in sub- to limit the ability of any plaintiff to seek

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5483 any form of recovery from any person, gov- tors, not about compensating victims. me is entirely appropriate. A limita- ernment, or other entity that was a partici- Punishment has long been a hallmark tion on lawyer’s fees puts more money pant in, or aider and abettor of, any act of of our criminal justice system. Indeed, in the hands of the victim. terrorism. punitive damages draw their origins I know what a sensitive subject that (g) EFFECTIVE PERIOD.—This section shall is for many in this body, so that is not apply only to actions described in subsection from the English common law cases of (a)(1) arising out of or resulting from acts of assault and battery, where the crimi- in this amendment. I did not even limit terrorism that occur during the effective penal law provided an inadequate rem- the lawyer’s fees which would have riod of the Program, including any applica- edy. So it only makes sense that we been a very provictim provision. I did ble extension period. should rely on our criminal justice sys- not do that. Yet remarkably, this is Mr. MCCONNELL. Mr. President, this tem to determine whether additional not enough for some people. Even after amendment replaces the liability sec- punishment is warranted against a plaintiff has been fully compensated tion of the underlying bill with the li- American victims of terrorism. for all his or her fiscal, economic, and ability section proposed in the com- If American defendants have engaged noneconomic damages, the underlying promise bill sponsored by Senator in criminal activity, maybe punitive bill demands the right to seek addi- GRAMM and myself. damages are appropriate in those lim- tional punitive damages to punish The compromise has three principal ited circumstances. But what we can- American property owners, American elements. First, consolidation of all not and must not do is take the punish- shopkeepers, and American air carriers claims in a single Federal district ment reserved for the terrorists who who are also victims of terrorism. court; second, approval of settlements seek to destroy our buildings, our Under this amendment, no victim is by the Secretary of the Treasury; transportation systems, our fire and going to be denied the right to fully re- third, a ban on punitive damages, un- rescue personnel, and our way of life cover under every other provision. The only thing that is being denied is to get less the defendant has been convicted and transfer that punishment to Amer- punished for the second time. First, of a criminal offense that is related to ican victims of terrorism who bear no you have been attacked by the terror- the plaintiff’s injury. relation to the hijackers and suicide ists, and then you are going to be at- The first two provisions should not bombers, or the terror that they un- tacked by the lawyers if we do not pass spark any controversy. The proponents leash on America. of the underlying bill themselves have To be perfectly candid, my amend- this amendment. Just yesterday this body voted, re- agreed to Federal jurisdiction over ment does not do enough to protect li- grettably, to impose double taxation these claims, and the approval of set- ability costs from skyrocketing out of on American families afflicted by the tlements by the Secretary of the Treas- control and to protect against runaway death tax—double taxation. You get ury simply protects the taxpayer dol- lawsuits against terrorist victims. In- taxed once during your life, and then lars that will be exposed to potentially deed, this amendment moves along way you get taxed again when you die. Al- enormous lawsuits under this program. off the litigation management provi- most immediately afterwards, our col- And since the underlying bill now—un- sions in the House-passed bill. If I had leagues moved to proceed to a ter- like an earlier version—prudently bans my own way, I would be offering some- rorism insurance bill that would im- punitive damages against the Federal thing a good deal more comprehensive pose double punishment. Yesterday Treasury, this approval process ensures than what I have offered a few mo- they voted in favor of double taxation, that a party does not attempt to cas- ments ago. Indeed, I think it is impor- and today they are advocating double ually circumvent that ban through a tant for everybody to remember what punishment on American victims of settlement. kind of awards are still possible, even if terrorism. First, you get attacked by So, again, this is a debate about my amendment is adopted, as I hope it the terrorist, and then you get at- whether we should expose American will be. There is no limit to the tacked by the lawyers for punitive victims of terrorism to punitive dam- amount of damages an American plain- damages. ages—damages that heap additional tiff can receive as compensation for I hope our colleagues will join me in punishment on American victims, even physical or economic loss. Let me say curing the latter error by supporting after the plaintiff has been fully com- that again. I am not proposing any this amendment. If not, they should be pensated for his or her injuries. kind of limitation on the amount of prepared to explain to the American Let me make a very important point damages an American plaintiff can re- people why—why—in the aftermath of to those of my colleagues who are tra- ceive as compensation for physical or a terrorist attack it is somehow per- ditionally wary of liability protections. economic loss. missible in this country to punish Lawsuits arising out of terrorist at- No. 2, I am not proposing to limit the American victims of terrorism for the tacks will be a wholly different animal. amount of damages an American plain- harm caused by the terrorists. That is They will not feature the traditional tiff can receive as compensation for what this amendment is about. small, sympathetic plaintiffs against noneconomic damages—pain and suf- Let me reiterate before relinquishing the crotchety, arrogant big business fering losses. There is no limitation the floor that all other kinds of dam- that makes for such effective tele- under my amendment on recovery for ages are available to victims of ter- vision movies and plaintiffs’ lawyers’ pain and suffering. rorism, to the plaintiffs—pain and suf- tales. No, these lawsuits will pit victim In addition, there is nothing to pre- fering, economic compensation—but against victim—victim against vic- vent American defendants and victims the only thing that would be denied tim—both of whom have been dev- of a terrorist attack from having to would be the opportunity to get puni- astated by a coldblooded terrorist at- pay for the pain and suffering caused tive damages which are, in effect, dam- tack, and both of whom will be faced by terrorists. I could have gone a lot ages allowed for criminal-type behav- with traumatic physical, emotional, further, but there is no limitation ior from the victim of a terrorist at- and financial recovery. under this amendment on recovery for tack. I have even modified that to While it is important to ensure that pain and suffering against the victims allow punitive damages against a vic- an injured plaintiff be compensated for of terrorism or the taxpayers of the tim of terrorism if that victim has his or her injuries—and this amend- United States. And there is no limit on been convicted of a crime. That is the ment does just that—it is absurd, im- the amount of money an attorney can category of behavior which historically moral, and it is un-American to impose take from the plaintiff’s award. I must has made available punitive damages. additional punishment on an American say, I hated not putting that in. This is a very modest amendment. I victim of terrorism. This is very similar to the Federal would have loved to have gone a lot For those who remain concerned Tort Claims Act which has been on the further. I find it outrageous that it is about punishing egregious conduct, my books since the late forties. If you sue possible for any lawyer in America in amendment does not extend the puni- the United States under the Federal any one of these lawsuits to get more tive ban to any defendant who is en- Tort Claims Act, all the cases are in than a fourth. I think the Federal Tort gaged in criminal conduct. History re- Federal court. There are no punitive Claims Act would have been a perfect minds us that punitive damages have damages, and there is a 25-percent way to limit the lawyer’s compensa- always been about punishing bad ac- limit on lawyer’s fees, which seems to tion and provide more assistance for

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5484 CONGRESSIONAL RECORD — SENATE June 13, 2002 the victim, but I have not offered that risk as large as it might without the fect within 3 weeks of the day we were because I know there is substantial re- Federal backing. writing it, when we tried to put to- luctance in this body, as we have seen Our bipartisan bill had a retention of gether a compromise. With 3 weeks be- time and time again, to impact the $10 billion the first year, $10 billion the fore supposedly the vast majority of in- compensation of the plaintiff’s bar. So second year, and if the Secretary of the surance policies were expiring, we be- I have not done that in an effort to Treasury concluded that a third year lieved there was not time for a reinsur- make this more attractive. was required, he could extend the bill ance market to emerge, that there was This is a very modest step in the di- for a third year with a retention of $20 not time for companies to be able to rection of protecting the victims of billion. Above these retention levels lay off this risk by syndication. So the terrorism from being attacked twice. I where the private insurance company proposal was made that we have indi- hope it is something we can pass over- would pay, the taxpayer pays 90 cents vidual company retention levels. whelmingly in the Senate whenever we out of every dollar of the claim. Might I say that the day we an- get around to having a vote. Why did we have an industry reten- nounced a bipartisan compromise with Mr. President, I yield the floor and tion rather than an individual com- an industry retention level of $10 bil- hope that whenever this is voted upon, pany retention? We had an industry re- lion, virtually every insurance com- it will be adopted overwhelmingly. tention because our purpose is not to pany in America supported that bill. The PRESIDING OFFICER. The Sen- get the Government into the insurance Mr. LEAHY. Mr. President, will the ator from Texas. business permanently, but to build a Senator yield for a question? Mr. GRAMM. Mr. President, let me bridge to transition from where we are Mr. GRAMM. Yes, I would be happy talk just a moment about the bill and today in the wake of 9–11 to a period to yield. where we are, and then talk about this when, hopefully, we will do a better job Mr. LEAHY. I ask this with some amendment. This is the third bill now of managing these risks at the national trepidation because I know that every day I hear my good friend from Texas where we have not written a bill in level in terms of our antiterrorist pol- speaking, it is one less day I am going committee, where we have brought a icy and, secondly, over time, we can de- to have the opportunity to hear him. bill to the floor, basically a partisan velop the insurance structure to build And I mean that sincerely. I really do bill, for no purpose. I do not think I am the risk that remained into the term enjoy his statements. I wonder if he saying anything others will not agree structure of insurance rates. has some idea how much time he with in saying Senator DODD and I If we do not have an industry reten- needs? have pretty consistently been the two tion, the incentive for companies to Mr. GRAMM. I think I should be most committed people toward passing spread the risk is reduced. through within, say, 10 minutes. a bill. But rather than sitting down and If my risk as the Gramm Insurance Mr. LEAHY. I thank the distin- trying to work out the provisions of Company is only some portion of $10 guished Senator. this bill on a bipartisan basis, we have billion based on my size in the indus- Mr. GRAMM. So the day we intro- a bill that has been brought to the try, then once I am above that level of duced the bill with a $10 billion indus- floor of the Senate which has never exposure, the Federal Government is try retention, based on the logic that been passed by a committee, much less picking up 90 percent of the cost. we wanted to encourage reinsurance, the committee of jurisdiction. We basi- What we are trying to do is to get in- that we wanted to encourage syndica- cally are converting this into a par- surance companies to syndicate so that tion, there was broad support in the in- tisan issue which I think makes no no insurance company insures the Em- surance industry and in American busi- sense whatsoever. pire State Building. They might join ness for that compromise. Let me give a little bit of history so 10, 20, or 30 other insurance companies We got to December, 3 weeks away my colleagues understand how we got in doing it and, in doing so, spread the from—at least as we are told, and as I to be where we are and what the two risk. We want to develop reinsurance believe actually did happen—tremen- overriding issues are. There will be so that these risks can be dissemi- dous numbers of insurance policies ex- many other issues raised, I am sure, nated. piring on January 1. So recognizing we but I want people to know what the Having an industry cap or an indus- were writing a bill where the industry two overriding issues are. try retention, rather than an indi- would have only 3 weeks to try to re- Way back last fall, Senator SAR- vidual company retention, puts pres- spond to it, the bill that was put to- BANES, Senator DODD, Senator ENZI, sure on companies to enter into rein- gether had not an industry retention and I met with the Secretary of the surance. It provides an incentive and in but an individual company retention Treasury in the wake of 9–11 to try to fact a profitability for reinsurance to that would produce a situation where, put together a bipartisan bill. In fact, emerge. The purpose of the bill is to de- with as little as $50 million of cost, the we agreed to a bill. The Secretary of velop reinsurance and syndication. Federal taxpayer could be pulled into the Treasury endorsed the bill on be- Having reached that agreement, we the process, a far cry from the $10 bil- half of the administration. All four of also agreed on a set of provisions re- lion retention we had had in the origi- us had a press conference and an- lated to lawsuits in the wake of ternal compromise. The logic of it, as of nounced the bill. That bill worked as rorist attacks. We agreed that all law- December 10, was that we were 3 weeks follows: suits had to be brought in Federal away from the beginning of the year It was a 2-year bill with a possible ex- court because this was a Federal pro- and there was not time for this syn- tension to the third year. The first gram. We agreed that the cases could dication to occur, there was not time year there was an industry retention, be consolidated. We agreed to require for reinsurance to occur. and I want to define this term because that the Treasury would have to sign Now it is 7 months later. Insurance we are going to be hearing it now for off on any out-of-court settlement in companies have sold terrorism insur- an extended debate. There was an in- these cases. And we agreed there would ance, not at the price we might have dustry retention whereby the industry be no punitive damages in the case of a chosen, not to the people we might had to pay $10 billion in the case of a terrorist attack. This was a com- have chosen they sell it to, but the terrorist attack before the Federal promise. point is at inflated rates, because Government would begin to pay the Treasury wanted a lot more in the things changed, the market changed, bills, the idea being that the insurance way of protection. The House had and we expected rates would go up. It companies are selling insurance, they passed far more comprehensive protec- was, in fact, required that they go up are collecting premiums, and they tions, but this was a compromise we economically. Now insurance compa- should have a stake in the process and worked out. As we all know, there was nies have sold all these policies based, the Federal Government should come an objection to the liability parts of at that point, on no Government back- in in those events that are so large and the bill and the bill died. stop. To come back in now with an in- so costly that the insurance industry Then we got into December. In De- dividual company retention that could could not sustain it, and that the mar- cember, in trying to write a bill, we put the taxpayer at risk, when the ket for insurance and reinsurance po- were literally faced with a situation costs are as small as $50 million or $100 tentially would not develop with the where the bill was going to go into ef- million, makes absolutely no sense.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5485 What has happened, as we might ex- Finally, I turn to the liability ques- to the impact of not having any kind of pect it to happen, is that if I were run- tion, and I will be brief. We have before terrorism insurance fallback for these ning an insurance company and I had a the Senate the most modest proposal coverages, and the Federal Government choice between having Government related to punitive damages that has does have a role to play. backup begin at $100 million versus $10 been discussed thus far in this bill. We I serve on the Banking Committee, billion, I would not be running an in- had a bipartisan agreement that and I have expressed to my ranking surance company long if I did not de- banned punitive damages outright, a member some of my concerns for us cide that $100 million was better than complete ban. The House adopted a bill being involved at all. However, I am $10 billion. So now we are having this that had extensive protections from convinced there is some action we need debate driven by insurance companies predatory lawsuits in a terrorist at- to take in the short run to address this that want the low retentions. tack. In my mind, to unleash predatory crisis of businesses not being covered In December, when we were writing a lawsuits after a terrorist attack is like by terrorism insurance, projects not bill to go into effect in 3 weeks, there piracy on a hospital ship. It is out- moving forward because of the lack of was not any other choice, but once that rageous and unacceptable. terrorism insurance. Obviously, there marker got out there and people saw it Now, the Senator from Kentucky has is a need to do this. as a possibility, then they decided this given a very watered down compromise There are some areas that, frankly, deal they were willing to sign on in Oc- and, I think, a reasonable one, and to that I do not believe belong in a bill tober, which protected the taxpayer by me acceptable—though I like the House dealing with this issue. The one that I having insurance companies pay the provisions better; I like the proposal of believe is the most egregious is a con- first $10 billion, that that was no the President better. What his com- cept that is remarkable; that is, that victims of terrorism, who have been ei- longer acceptable. Seven months later, promise says is that you cannot sue ther physically or financially and cer- premiums collected, risks taken to victims of terrorism for punitive dam- tainly emotionally hurt by terrorists, come in with an individual company ages. You can sue the terrorists, but will be liable to be sued. retention level at the level that is you cannot sue the victims, the people Senator MCCONNELL takes a very being discussed now in this bill, would who were in the attack, the people small part of this liability. I have a grant a huge windfall. I think it is not whose buildings and lives were de- problem with any victim being sued for justified and not good public policy, stroyed, unless they have been con- anything. Think back to the days we and that is an issue that has to be dealt victed of a felony related to the attack. were at war. Can anyone imagine in with. We have to decide, are we rep- In other words, they had some measure previous years if someone in America resenting the taxpayer or are we rep- of criminal culpability. had been killed as a result of World resenting some other interest? It seems I don’t know how anyone can be War II, the Germans or the Japanese to me to put the taxpayer at risk, to against this proposal. If you are bombing someplace in America, that back up policies that have already been against this proposal, you are basically people in America would have rushed sold, with no Government backup, willing to unleash predatory lawsuits to the lawyers and then to the court- where premiums have already been colon anyone—in this case, including vic- room to sue the restaurant they lected on the basis that there would be tims of terrorism. worked in that was hit by the bomb? no Government backup, to now come Let me conclude and yield the floor Can anyone imagine the Senate, in up with a backup that is in the tens of by urging my colleagues to vote for the 1941–42, passing a bill saying people millions rather than $10 billion, is to McConnell amendment. The President who worked in a restaurant in Hawaii basically have the taxpayer enter into has said in a letter, through four when a bomb was dropped, that the a situation where the initial risk is spokesmen, including the Secretary of waitress who worked in the restaurant borne largely by the taxpayer and not the Treasury, that he will not sign a could sue the restauranteur whose by the insurance company. bill that does not protect people from place was destroyed for damages? On Let me say to my colleagues that if predatory lawsuits that arise from a top of that, this bill says not just for this were World War II instead of a new terrorist act. I hope my colleagues will any damages but for punitive damages. kind of war, we could have had a Gov- vote for the McConnell amendment. In other words, damages having to do ernment insurance program. We had Second, I hope we can work out a with any kind of pain, suffering, in- one in World War II. We had two kinds. compromise on this retention issue. We jury, or loss of wages, but simply to We had one for international shipping should be able to work out a com- punish the victim. and we had one for domestic assets. promise. I commend to my colleagues We will allow people who were in- Both companies made money. Both that we do it. If we do it, we can imme- jured economically, emotionally, phys- companies, when we signed the peace diately transform this bill into a bipar- ically, as a result of an act of war—and treaty on the Missouri, faded out. The tisan bill. We can get an overwhelming this terrorist act was an act of war—to problem now is this war will not end vote for it. We could end the debate on be sued under this bill. with a peace treaty on the Missouri. It it. If not today, certainly early next Look back in history. I do not know will end with the scream of some ter- week. that there is a precedent for allowing rorist. But there will not be a signed There is work that has yet to be this during a time when we are at war. agreement that it is over, nor will we done. I hope we can do it together. This was an act against America. This know that is the last terrorist in the There is no reason we cannot. is a very bad and dangerous step we are world. I yield the floor. taking in the Senate. We have to decide if this is a transi- The PRESIDING OFFICER (Mrs. What Senator MCCONNELL is trying tion bill that is trying to build these CLINTON). The Senator from Pennsyl- to do is a very small piece of the over- risks into the structure of insurance vania. all structure of this bill that allows, if rates, or are we getting the Govern- Mr. SANTORUM. Madam President, I the McConnell amendment passes, the ment permanently in the insurance will not be long. I rise in support of the restaurant owner of the World Trade business in America. That is a funda- McConnell amendment. I pick up on Center, whose business was destroyed— mental question. When we decided in where the Senator from Texas left off: he may have escaped; maybe he was October, we answered the question. This should be a bipartisan bill. There not there that day; his business was de- When this bill was written in Decem- is no reason why in dealing with such a stroyed, his employees were killed, ber, we were forced into this low deduc- serious issue as this that we should not maybe even family members were tion by having only 3 weeks. Seven be able to work in a bipartisan way killed—will now be in court. Under this months later, that makes no sense. with our colleagues in the Senate. That bill, he will be in court defending him- This is the issue that needs to be applies also to the House of Represent- self from lawsuits. After going through dealt with. I hope it can be com- atives and the President. what he has gone through, he now has promised on a bipartisan basis. As I Everyone realizes this is a piece of to defend himself from lawsuits. But said earlier, from the beginning I have legislation that must be done. We are worse, he has to defend himself from believed we needed a terrorism insur- hearing from folks back home in the lawsuits that will seek to punish him ance bill. business and insurance community as because he was a victim. Imagine that.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5486 CONGRESSIONAL RECORD — SENATE June 13, 2002 One can make an argument—and I Mr. MCCONNELL. Will the Senator ator SARBANES and others to craft a would not agree—he would have to pay agree that if punitive damages were balanced compromise in the substitute compensation for pain and suffering or available, they would be sought in amendment on legal procedures for wages, but now we will say he will be every instance? civil actions involving future acts of liable to be sued, to be punished, and Mr. SANTORUM. I am a lawyer. I did terrorism. he was a victim of terrorism. practice law before I came here, but The underlying Dodd bill protects the Victims of terrorism should not be not as much as many here. But I do rights of future terrorism victims and punished. Victims of terrorists should know, one of the things that happens their families while providing Federal not be punished by the Senate. It when you file lawsuits is, you do not court jurisdiction of civil disputes in- should not be permitted. It is an out- leave anything out. If you have dam- volving acts of terrorism and excluding rage to every victim who suffered on ages available to you, you file for them punitive damages from Government- September 11; if every victim who suf- and you let those who are responsible backed insurance coverage under the fered in September 11 owned anything for making the decision as to what bill. These provisions do not limit the that was destroyed, and had anyone your plaintiff should receive—whether accountability of a private party for its working for them, they are now going it is the jury or judge—you let them actions in any way. to be on the firing line, again. It is not decide what the plaintiff is permitted Further, the underlying Dodd bill bad enough that they were hurt phys- to receive. fully protects Federal taxpayers from ically, emotionally, and economically There is no question in my mind. paying for punitive damages awards. as a result of terrorist acts. We are now Imagine, that victims of terrorism—— Under the Dodd bill only corporate going to put them through another act Mr. LEAHY. Will the Senator yield wrongdoers pay punitive damages, not of destruction in the courtroom. for a question? U.S. taxpayers as some have incor- Even if this amendment is agreed to, Mr. SANTORUM. Let me finish my rectly claimed on the Senate floor. that is going to occur. All we are say- statement, and then I will be happy to. But the McConnell amendment would ing is, Members of the Senate, don’t There is no question in my mind that prohibit punitive damages in almost allow lawyers—who certainly will do so there will be hundreds, if not thou- all civil actions covered by the bill. and certainly have done so already sands, of lawsuits where victims of ter- This latest offer excuses wanton, reck- with past terrorist acts—come into rorism will be sued for punitive dam- less, and even malicious conduct by a court and attempt to punish victims. ages in order to punish them because corporate wrongdoer. The amendment That is over the top. It is over the top. they were victims. provides that a corporate wrongdoer It is not necessary. It is inhumane. I will be happy to yield for a ques- must have engaged in criminal conduct Mr. MCCONNELL. Will the Senator tion. and must have already been convicted yield for an observation? Mr. LEAHY. Madam President, the under State or Federal law before it Mr. SANTORUM. I am happy to yield Senator has the floor and of course can can held liable for punitive damages. to the Senator from Kentucky. This is a ridiculously high standard speak as long as he wishes. I do not Mr. MCCONNELL. After making this that excuses and immunizes all sorts of mean to suggest otherwise. argument a week or so ago, the Amer- Mr. SANTORUM. I was just about to bad acts that should be punished and ican Trial Lawyers Association said deterred. finish. there could be some circumstances The McConnell amendment, for all Mr. LEAHY. We had an informal un- under which the defendant himself en- practical purposes, eliminates punitive derstanding that originally I was going gaged in criminal behavior. So I modi- damages, which in turn, completely un- to follow the Senator from Texas. If fied this amendment to include, if the dermines the civil justice system. victim of terrorism himself were con- not, I will pass it on to the Chair. I just There is no effective punishment, and victed of a crime in connection with wondered how much longer he might consequently no real deterrent, for that event, then punitive damages be. misconduct. Right now, the threat of would lie because that would warrant Mr. SANTORUM. I was about to fin- punitive damages makes would-be punishment. ish. I am happy to do so. wrongdoers think twice. Mr. SANTORUM. Absolutely. I encourage my colleagues, No. 1, as Without the threat of punitive dam- Mr. MCCONNELL. But there are no I said before, to see if we can work out ages, callous corporations can decide it other circumstances—I agree with my some sort of bipartisan agreement. is more cost-effective to continue cut- friend from Pennsylvania—under which This should not be a partisan bill. This ting corners despite the risk to Amer- punitive damages ought to lie against should be a bill on which we work to- ican lives. This would let private par- the victim of terrorism. I thank the gether in the Senate. ties avoid accountability in cases of Senator for his observations. I think he No. 2, I encourage, as a good starting wanton, willful, reckless or malicious is right on the mark. point for that bipartisan arrangement, conduct. That is outrageous and irre- Mr. SANTORUM. I thank the Senator to support this very minimalist amend- sponsible. from Kentucky for further clarifying ment, with all due respect to my col- Punitive damages are monetary dam- his own amendment. I think it is im- league from Kentucky. It is a ages awarded to plaintiffs in civil ac- portant to say if someone is, maybe, in minimalist amendment to eliminate tions when a defendant’s conduct has complicity with a terrorist or did the most egregious aspects of lawsuits been found to flagrantly violate a something with respect to his business available to plaintiffs who want to sue plaintiff’s rights. Under this amend- that was, as the Senator from Ken- victims of terrorism; that they at least ment, those plaintiffs will be victims of tucky said, criminal in nature, that should not be punished, pay compensa- terrorism and their families. would be prosecuted. Then I think it is tion as a punishment, unless there was The standard for awarding punitive a reasonable recourse for some sort of some sort of criminal behavior at- damages is set at the State level, but is civil damages to be awarded. tached to the victim. generally allowed only in cases of wan- But to have a blanket provision that I yield. ton, willful, reckless or malicious con- says every victim is a potential defend- The PRESIDING OFFICER. The Sen- duct. These damages are used to deter ant in a lawsuit, where the lawyer is ator from Vermont. and punish particularly egregious con- saying you should be punished because Mr. LEAHY. Madam President, I duct. Eliminating punitive damages to- you were a victim in a terrorist act, I must oppose this amendment by my tally undermines the deterrent and find that to be almost something that good friend from Kentucky, Senator punishment function of the tort law. is so absurd; it is remarkable to me MCCONNELL, to add controversial so- The threat of punitive damages is a that we are even debating the existence called ‘‘tort reform’’ measures to the major deterrent to wrongdoing. Elimi- of this provision. terrorism insurance bill. This amend- nating punitive damages would se- Mr. MCCONNELL. Will the Senator ment would limit the legal rights of fu- verely undercut this deterrent and per- yield for a question? ture terrorism victims and their fami- mit reckless or malicious defendants to Mr. SANTORUM. I am happy to yield lies. That is not fair or just. find it more cost effective to continue to the Senator from Kentucky for a I have worked with the distinguished their callous behavior without the risk question. majority leader, Senator DODD, Sen- of paying punitive damage awards.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5487 For example, this amendment would Say during this period when it is op- wish we could have moved it earlier. permit a security firm to be protected erated without a functioning security There have been a lot of efforts on both from punitive damages if the private system a lab discovers various con- sides to make it happen. We were not firm hired incompetent employees or tainers of nuclear matter, including successful. deliberately failed to check for weap- dozens of vials containing radioactive Now we do have it on the floor. Obvi- ons and a terrorist act resulted. This iodine, are missing, and it fails to re- ously, there are going to be some im- amendment fails to protect the inter- port that fact to local, State, or Fed- portant amendments that will be of- ests of victims of terrorism and their eral authorities and doesn’t take any fered to change some of the provisions families. action to repair its security system. in the legislation. But I think this is I helped author the September 11th This is not a far-fetched example. one of the most important ones. The li- Victims Compensation Fund to take Let us say that nuclear material is ability provisions in this legislation, or care of any terrorism victim suffering traced back to the laboratory and it is lack thereof, is a critical point. I am physical injury or death. As a result, I later used to fuel a ‘‘dirty’’ bomb that very much concerned about jurisdic- was open to public interest retroactive exposes American cities. Under this tion and venue, where these actions liability limits up to insurance cov- amendment, you can’t go back and might occur arising out of terrorism. I erage for the September 11th attacks, prosecute that corporation. They have would be very concerned about the pre- such as limits for the airlines industry no criminal prosecution. You can’t go emption of State causes of action pro- to keep them out of bankruptcy and back. Come on. What is going to be the visions that would be included. limits for the owners of the World incentive for that corporation that But the most important point is, how Trade Center to rebuild. failed to fix their security system and would you deal with the punitive dam- But liability limits for future ter- to fix the locks on their doors? It is ages issue? I have real concerns and rorist attacks are irresponsible because just another example. problems with punitive damages com- they may restrict the legal rights of I see the distinguished acting major- ing out of the U.S. Treasury as a result victims and their families and discour- ity leader. of an action involving a terrorist at- age private industry from taking ap- I yield the floor. tack. So I hope we can find a way to re- propriate precautions. Mr. REID. Madam President, I have solve the problem. Restricting damages against the spoken to my friend, the distinguished Senator MCCONNELL has been very wrongdoer in civil actions involving senior Senator from Kentucky, Mr. diligent in staying behind this and personal injury or death, for example, MCCONNELL, indicating we will move to working to find an appropriate solu- could discourage corporations from table. I have been told that the Repub- tion. I think he has come up with one, taking the necessary precautions to lican leader may speak before we do and this is the key part of it. It says prevent loss of life or limb in a future that. That being the case, I certainly that to the extent punitive damages terrorist attack. don’t want to move to table if the Re- are permitted by applicable State law, There is no need to enact these spe- punitive damages may be recovered cial legal protections and take away publican leader wishes to speak. I ask unanimous consent that when the rights of victims of terrorism and against a defendant in a civil action in- the quorum call is called off, I be rec- their families. volving an act of terrorism only if ‘‘the At a time when the American people ognized. I alert everyone that I will harm to the plaintiff was caused by a are looking for Congress to take meas- move to table. As everyone knows, the criminal act or course of conduct for ured actions to protect them from acts Republicans have their policy lunch- which the defendant was convicted of terror, these ‘‘tort reform’’ proposals eons on Wednesdays, and we have ours under Federal or State criminal law, are unprecedented, inappropriate and on Thursdays. I would really like to including a conviction based on a irresponsible. At the very moment that get the vote out of the way before that guilty plea or plea of nolo contendere.’’ the President is calling on all Ameri- time, if we could. We are going to go This is the right solution. This is a cans to be especially vigilant, this into a quorum call awaiting the Repub- fair solution. It does not set a prece- amendment is calling on all American lican leader. dent saying that there can be no puni- businesses to avoid their responsibility I ask unanimous consent that I be tive damages; it just says it can only for vigilance under existing law. recognized following the calling off of occur under these conditions that were I am disappointed that some may be the quorum. outlined where there was a criminal taking advantage of the situation to The PRESIDING OFFICER. Is there act or course of conduct that led to the push ‘‘tort reform’’ proposals that have objection? situation where a terrorist could make been rejected by Congress for years. Without objection, it is so ordered. this kind of attack or hit. This smacks of political opportunism. Mr. REID. Madam President, I sug- The President has made it clear that I cannot support rewriting the tort gest the absence of a quorum. if we do not deal with this appro- law of each of the 50 states for the ben- The PRESIDING OFFICER. The priately, he will not sign this legisla- efit of private industry and at the ex- clerk will call the roll. tion. So rather than trying to find a pense of future terrorist victims and The assistant legislative clerk pro- time to deal with it later, or to deal their families. I urge my colleagues to ceeded to call the roll. with it in conference, or, in effect, try defeat this amendment. Mr. REID. Madam President, I ask to call either side’s bluff, this is the Madam President, the distinguished unanimous consent that the order for right solution. It does not set the Presiding Officer has been as involved the quorum call be rescinded. precedent; it does provide for damages in getting compensation to victims of The PRESIDING OFFICER. Without under these certain circumstances terrorism as anybody here. objection, it is so ordered. where there has been neglect or egre- I raise these points on the floor that Mr. REID. Madam President, I yield gious action that led to the terrorist we all want to help victims of terror, the floor. attack. and we will, but we don’t want to give The PRESIDING OFFICER. The Re- So I urge my colleagues to support a wish list to anyone. publican leader is recognized. the McConnell proposal that I have co- Medical laboratories specializing in Mr. LOTT. Madam President, I thank sponsored, and oppose the motion to nuclear medicine might know that Senator REID for making sure I have table this important issue. their security system is broken. They this opportunity to express myself be- I yield the floor. say: Well, you know, it will take a few fore we go to a vote on this important The PRESIDING OFFICER. The Sen- hundred dollars to fix it, and we are issue. ator from Nevada. not going to bother. So it stays broken I do think we need to move this legis- Mr. REID. Madam President, I move for months. At the same time, even lation forward. I have met with indi- to table and ask for the yeas and nays. though they might put high-security viduals, insurance companies, the con- The PRESIDING OFFICER. Is there a locks on the room that houses its struction industry, hotels, and others. sufficient second? vault, they don’t put security locks on As Senator REID has pointed out, they There appears to be. the storage room that houses nuclear are concerned about the growing prob- The question is on agreeing to the materials. lem in this area in terms of coverage. I motion.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5488 CONGRESSIONAL RECORD — SENATE June 13, 2002 The clerk will call the roll. (1) IN GENERAL.—Not later than 30 days is that terrorism has now become an The assistant legislative clerk called after the date of enactment of this Act, the insurance risk. In large part, this bill the roll. Secretary shall promulgate regulations es- takes that risk off individual insurance Mr. REID. I announce that the Sen- tablishing parameters for insurance rate in- companies and has the Federal Govern- creases for terrorism risk. ator from Vermont (Mr. JEFFORDS) is (2) CONSULTATION.—In developing the regu- ment assume a large part of that risk, necessarily absent. lations under paragraph (1), the Secretary so much so in one computation, it is 80 Mr. NICKLES. I announce that the shall consult with the NAIC and appropriate percent of the risk; in another com- Senator from North Carolina (Mr. Federal agencies. putation it is 90 percent of the risk. HELMS), the Senator from Idaho (Mr. (3) MODIFICATIONS.—The Secretary may pe- In the very complicated formula of CRAPO), and the Senator from Rhode Is- riodically modify the regulations promul- the bill, it has the responsibility of land (Mr. CHAFEE) are necessarily ab- gated under paragraph (1), as necessary to each insurance company with a de sent. account for changes in the marketplace. minimis amount that it would pay out (4) EXCLUSIONS.—Under exceptional cir- I further announce that if present in the case of a terrorism incident and, and voting the Senator from North cumstances, the Secretary may exclude a participating insurance company from cov- mind you, this is only a terrorism inci- Carolina (Mr. HELMS) would vote ‘‘no.’’ erage under any of the regulations promul- dent which is using conventional explo- The PRESIDING OFFICER (Mr. gated under paragraph (1). sives. It does not include—because they EDWARDS). Are there any other Sen- (b) SEPARATE ACCOUNT REQUIRED.—If a par- are exempt from almost all insurance ators in the Chamber desiring to vote? ticipating insurance company increases an- policies—the terrorism risk when the The result was announced—yeas 50, nual premium rates on covered risks under terrorist uses chemical, biological, or nays 46, as follows: subsection (a), the company— (1) shall deposit the amount of the increase nuclear weapons. [Rollcall Vote No. 152 Leg.] As a result, we are talking about a YEAS—50 in premium in a separate, segregated account; risk, as we learned on September 11, in Akaka Dodd Lieberman (2) shall identify the portion of the pre- the totality of the picture of the risk, Baucus Dorgan Lincoln mium insuring against terrorism risk on a to the whole country and risk to indi- Bayh Durbin Mikulski separate line item on the policy; and Biden Edwards Miller viduals, businesses, owners of high- Bingaman Feingold Murray (3) may not disburse any funds from rises and large businesses, medium-size Boxer Feinstein Nelson (FL) amounts in that separate, segregated ac- businesses and small businesses. We are Breaux Graham Nelson (NE) count for any purpose other than the pay- talking about a risk that, albeit still a Byrd Harkin Reed ment of losses from acts of terrorism. Cantwell Hollings substantial risk, it is a risk that in Reid (c) LIMITATION ON RATE INCREASES FOR COV- Carnahan Inouye Rockefeller ERED RISKS.— large part is being picked up by the Carper Johnson Sarbanes (1) EXISTING POLICIES.—Any rate increase Federal Government. Cleland Kennedy Clinton Kerry Schumer by a participating insurance company on I do not object to that, and I will re- Conrad Kohl Stabenow covered risks during any period within the state what I said this morning to my Corzine Landrieu Torricelli Program may not exceed the amount estab- good friend and colleague and the spon- Daschle Leahy Wellstone lished by the Secretary under subsection (a). sor of this legislation, Senator DODD. If Dayton Levin Wyden (2) NEW POLICIES.—Property and casualty I had objected to that, we would not be NAYS—46 insurance policies issued after the date of enactment of this Act shall conform with the on this legislation because I was in the Allard Frist Roberts Chamber when the unanimous consent Allen Gramm Santorum regulations issued by the Secretary under Bennett Grassley Sessions subsection (a). request was propounded last night, and Bond Gregg Shelby (d) REFUNDS ON EXISTING POLICIES.—Not I could have easily entered an objec- Brownback Hagel Smith (NH) later than 90 days after the date of enact- tion. I did not, and that is why we are Bunning Hatch Smith (OR) ment of this Act, a participating insurance Burns Hutchinson on the bill. Snowe company shall— I do not object to the Federal Gov- Campbell Hutchison Specter (1) review the premiums charged under Cochran Inhofe Stevens property and casualty insurance policies of ernment picking up a major part of the Collins Kyl Thomas terrorism risk, albeit only the conven- Craig Lott the company that are in force on the date of Thompson DeWine Lugar enactment of this Act; tional risk; it is not chemical, nuclear, Domenici McCain Thurmond (2) calculate the portion of the premium or biological. What I do vigorously ob- Ensign McConnell Voinovich paid by the policy holder that is attributable ject to is that in the underlying bill of Warner Enzi Murkowski to terrorism risk during the period in which the Senator from Connecticut, there is Fitzgerald Nickles the company is participating in the Pro- no process in place that can limit the NOT VOTING—4 gram; and rate hikes of the insurance companies (3) refund the amount calculated under Chafee Helms with regard to the terrorism risk. Crapo Jeffords paragraph (2) to the policy holder, with an explanation of how the refund was cal- Mr. DODD. Will my colleague yield The motion was agreed to. culated. on that point? AMENDMENT NO. 3834 Mr. DODD. Mr. President, will my Mr. NELSON of Florida. Certainly. Mr. NELSON of Florida. Mr. Presi- colleague yield? I inquire, it is a quar- Mr. DODD. I say to my colleague, dent, I send to the desk an amendment. ter after 1, so we can give our col- what we do is leave all the State insur- It is my understanding the amendment leagues an indication of time, how ance commissioners—and under the number is 3834. much time would my colleague like? present scheme, and my colleague is a The PRESIDING OFFICER. The Mr. NELSON of Florida. About 3 former commissioner and knows this clerk will report the amendment. hours. better than I do, there are 40 States The assistant legislative clerk read The PRESIDING OFFICER. The Sen- that allow for rate increases to go into as follows: ator from Florida. effect, and then the commissioners can The Senator from Florida [Mr. NELSON] Mr. NELSON of Florida. Mr. Presi- overturn those rate increases. In 10 proposes an amendment numbered 3834. dent, while some Members are still in States, the rates have to be approved Mr. NELSON of Florida. Mr. President, I the Chamber, I want them to under- before they go into effect. ask unanimous consent that the reading of In this bill we apply the standard the amendment be dispensed with. stand an essential truth that a public which is averse to raising taxes is all used in the 40 States, but the State in- The PRESIDING OFFICER. Without the more averse to hiking insurance surance commissioners do not lose objection, it is so ordered. their power to turn down that rate in- The amendment is as follows: premiums. Let me repeat that. We all know that the consuming pub- crease. We do not have anyone in the (Purpose: To restrict insurance rate lic is averse to raising taxes, and we Federal Government doing that, but we increases for terrorism risks) are sensitive to that fact, but equally leave it at the State level for those At the appropriate place, insert the fol- rate determinations to be made at the lowing: or more sensitive is the issue of passing local level. That is what the bill re- SEC. ll. INSURANCE RATE INCREASES FOR TER- legislation that hikes insurance pre- RORISM RISKS. miums, and that is what we are facing. quires. (a) CALCULATIONS OF TERRORISM INSURANCE We have an underlying bill that is Mr. NELSON of Florida. I was glad to PREMIUMS.— trying to solve a problem. The problem yield to my colleague, and I hope he

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5489 will interject these comments so we regulations promulgated. So we give of the insurance company to pay, then can have an honest and fair debate all kinds of leeway and exceptions, and those funds would be distributed from about this issue because the very point yet we set up a process by which we that separate account. The consumer that the Senator from Connecticut has can determine if rates are actuarially would know how much of their pre- made is the flaw of this bill. The 50 in- sound. mium they, in fact, are paying. surance commissioners of this country Now, why is this important? It hap- The other thing the Consumer Fed- usually do not set the rates on com- pens to be important because guess eration of America pointed out is that mercial policies, and the ones who do, who is going to pay? If there is not an this Nelson amendment would require such as the State of Florida, set a actuarially sound rate, guess who is insurers to issue rebates for terror in- range for rates, but that is with regard going to pay. The consuming public. surance premiums already collected. to all the conventional types of risk— You say, oh, no, this is just on tall What do we do there? This is a little theft, dog bite, slip and fall, and so buildings. So it is going to be the complicated, but the essence of it is, if forth. owner of a tall building, a big business. there is a policy in existence and we The fact is that the 50 insurance Not so. That is a cost of doing business know that rates have been jacked up commissioners, if they were to do what that is passed on to the consuming already, as has been indicated by this the Senator from Connecticut says, do public. morning’s Washington Post story, not have any actuarial data on which So whether it is a football stadium, a under the Nelson amendment, if law, to make a judgment about whether or shopping mall, a tall building, a short the Secretary of the Treasury would not a rate hike is actuarially sound for building, wherever it is, a small busi- say that the rate hike should not be the de minimis terrorism risk that the ness, a large business, that cost, that this, which has already been imposed, insurance company is now assuming. rate hike that so many in the real es- but instead should be this high. What Wait, wait. Let me finish. tate industry have decried because, in about the difference over the remain- Mr. DODD. Will the Senator yield so fact, they have experienced those rate ing life of that policy—it may be only I may comment further? hikes, as chronicled by this morning’s a few months left because policies are Mr. NELSON of Florida. I will not Washington Post, in downtown DC, issued on an annual basis, 1-year poli- yield. I will finish the answer and then rate hikes of 160 percent and above cies—that that difference is going to be I will yield to the Senator. since last September, where do we rebated to the consumer. What does My amendment sets a process in think that is going and who do we that mean? That means if the insur- place. We have the Secretary of the think is going to pay it? It is going to ance company, as so many have al- Treasury. Now why would we go to the be the consuming public. ready, hiked the rates, as indicated by Secretary of the Treasury? Because the Because of that is why the Consumer this morning’s newspaper story, up insurance commissioners of the 50 Federation of America has endorsed here, but the Secretary of the Treasury States determine if rates are actuari- this legislation. This is dated today. comes along and says after evaluating ally sound on the basis of an experience They say it would require the Sec- and consulting that the rate hike or on the basis of data coming from an retary of the Treasury to set param- ought to be here, not here, that for the experience, and the fact is that the in- eters for terror insurance rates. This is remainder of the months of that policy surance commissioners of the 50 States the Consumer Federation of America. the difference is going to have to be re- do not have that data and experience. It would require insurers to issue rebated to the consumer or to the policy- So in the Nelson amendment what we bates for terror insurance premiums al- holder, in this case mostly commercial do is put into place a process by which ready, and I will explain that in a policyholders. So what we have is a commonsense actuarially sound judgments can be minute. It would require insurers to amendment. It is an amendment that made on whether or not the rate hike separately itemize terrorism rates on not only will help the big real estate is just right or whether the rate hike is the insurance bill. properties that have been putting the too high or whether the rate hike is Let’s talk about those two provi- pressure on the majority leader to not high enough. You mean it could sions. Why would we want to sepa- bring this to the floor because they are not be high enough? In fact, that is rately itemize terrorism rates on an in- feeling the heat of all these increased something we ought to know. We ought surance bill? So the consumer will rates. I don’t blame them. I sympathize to know what is the appropriate hike know how much of their premium they with them. to cover the insurance risk that is are paying is going to pay for the ter- They need to understand what we are being assumed by the insurance com- rorism risk. It is all a matter of mathe- trying to do. Instead of letting it oper- pany since most of the terrorism risk matics. It is all a matter of calcula- ate in the sphere of the insurance com- is being assumed by the Federal Gov- tions. It is all a matter of what is sup- pany determining what the rate should ernment. posed to be a determination to know if be, the real way to regulate what those For example, under the Nelson a rate is actuarially sound. If it is, as rates would be is to collect data amendment, the Secretary of the I hope it will be under the process that through the Secretary of the Treasury Treasury shall promulgate regulations we are putting in place in this amend- that determines if the rate is accurate. establishing parameters for insurance ment, then the consumer ought to This affects the big properties, but it rates for terrorism risk. That says ‘‘pa- know how much it is they are paying. affects little properties as well. This rameters.’’ It does not say he sets the If one has a bank statement and they underlying bill applies to commercial rate. It says he sets the parameters. have an extra charge by the bank, cer- property and casualty. Many of these Then what does it say? It says the tainly they want the consumer to policies are held by small businesses Secretary of the Treasury is going to know how much extra that bank is whose insurance premiums have in- consult in developing the regulations charging and for what. And so, too, creased exorbitantly, significantly of setting those parameters. The Sec- with this. We set up a process which raising the cost of running their busi- retary shall consult with the National says they shall identify the portion of ness. Commercial policyholders will ul- Association of Insurance Commis- the premium insuring against the ter- timately pass their premium cost on to sioners and appropriate Federal agen- rorism risk on a separate line item on consumers in the form of higher prices cies. Then we go on to give an escape the policy. for products and services. Offering rate valve, a safety valve. The Secretary What we do also, as an accounting protection will allow businesses, large may periodically modify the regula- mechanism, is we cause the insurance and small, to obtain reasonably priced tions promulgated, as necessary, to accompany to deposit the amount of the insurance, eliminating the need to pass count for the changes in the market- terrorism rate increase in a separate, their cost on to consumers. place. segregated account so it does not get Discussing the question of whether or What do we give further on a safety mixed in with all the other premiums, not insurance companies have hiked valve? Then we say, under exceptional so we can keep it highlighted, so we rates since September 11, we saw in circumstances the Secretary may ex- know what it is. Then when funds are this morning’s paper: clude a participating insurance com- disbursed to pay if a terrorist strikes Property insurance for the firm that man- pany from coverage under any of the and there is an obligation on the part ages the office building at 1700 Pennsylvania

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5490 CONGRESSIONAL RECORD — SENATE June 13, 2002 Avenue will cost twice as much as last year’s ernment taking over most of the insur- Let me close by saying this: Let’s get $2 million premium. ance risk for terrorism risk—we are it to its bottom line. Let’s get it to its That is the first paragraph of the making it affordable by not letting the political raw. I am afraid if you vote story in the newspaper. hikes go through the roof and all the for this without the Nelson amend- The second paragraph: way to the Moon. ment, you or any Senator vote for this At George Washington University, insurers Organizations such as the Consumer without the Nelson amendment, a le- have cut the school’s former $1 billion prop- Federation of America, which point out gitimate charge can be made that the erty and casualty policy in half. they endorse this amendment to pro- Federal Government took over the big- They cut the coverage in half, and tect businesses and consumers from gest portion of the insurance terrorism they raised the premium at the same being gouged with unjustifiable rates, risk without a limitation on the insur- time 160 percent. That is the second have endorsed this legislation. ance premium hikes. paragraph. The underlying legislation I did not I do not think any Senator wants to The third paragraph: block because I thought it ought to be accused of that. I say again, the The National Geographic has been dropped come here, but I question whether this American public does not like you to by its workers’ compensation provider be- is the way we ought to approach it. It vote for tax increases, but let me tell cause of the perceived threats to large con- is using a sledgehammer in what other- you there is something they do not like centrations of employees that are in the D.C. wise ought to be a much more delicate even more. They do not like people to area. procedure to solve the problem. What vote on jacking up their insurance This story, as well as many others, is the problem? The problem is, some 8 rates. You can make this a much bet- can give example after example of how or 9 months after September 11 certain ter bill by adopting the Nelson amend- insurance rates have been hiked, which properties are still having difficulty ment, which will put in place a process in large part has caused a number of getting insurance. Where are those whereby the Secretary of the Treasury real estate trade associations to start properties? They are generally in high- will determine if the rate is actuarially sounding the alarm that the rates have ly identifiable trophy properties such sound or if it is not. The Secretary of gone up so much, they need some re- as tall buildings, such as highly visited Treasury could be determining maybe lief. facilities like stadiums, such as tourist it is not enough. But, then again, he What has been said about this in the attractions, such as ports that have could be determining that maybe it is insurance industry? I am sad to say cruise traffic. But there is a large part way too much. what has been said is quite revealing. of America that is not like that. Most I yield the floor. At the end of November, in a statement of America does not have high-rise The PRESIDING OFFICER. The Sen- quoting a Lloyd’s of London investor buildings. Most of America is not high- ator from Minnesota. newsletter quoted in the Washington ly, densely urbanized. Most of America Mr. WELLSTONE. Mr. President, I Post, they said, when talking of the ef- is not the financial district of the thank my colleague from Florida for fects of September 11 on the insurance country; namely, Manhattan in New this amendment. Let me start out industry premiums: York City. Most of America is not the speaking for a moment about the un- [There is a] historic opportunity [to make seat of Government of the United derlying legislation. Then I want to profits off of 9/11. Disaster insurance pre- States, Washington DC. Most of Amer- speak about the Nelson amendment. miums have shot up to a level where very ica has found its commercial properties I am glad the Senate is finally acting large profits are possible.] to be insured. Why? Because in the last on the whole question of affordable ter- Doesn’t that make your blood boil, 6, 7, 8 months, the marketplace has re- rorism insurance. Over the past 6 to 8 that there would be people in the sponded. months, I have heard from developers, boardrooms of insurance companies In the last half year, money, capital, lenders, and retailers in my State who who are considering the tragedy of Sep- investments are flowing into the rein- are saying this is getting very expen- tember 11 as an excuse to hike insur- surance industry. Reinsurance is insur- sive. Basically a lot of construction ance premiums big time? Doesn’t that ance for insurance companies to insure projects have been stalled or have fall- make your blood boil? against catastrophe, such as the ter- en through the cracks. Some of the Another quote from the CEO of Zu- rorism risk. major landmarks in Minnesota, such as rich Financial Services from a Reuters As a result of there being more sup- The Mall of America, have had trouble story at the end of November as well: ply of this money going into the rein- with their lenders. So I want to be hon- As respects to the terrorist attack of Sep- surance marketplace, the price of rein- est with my colleagues, to me this is tember 11, the industry ‘‘needed it to operate surance has started to come down. As a really about jobs. If the insurance is efficiently. The players who are strong, in a result of the price coming down, be- not there or it is too expensive, then responsible manner, and are aggressive, will cause there is more capital available, the projects do not get built and be the winners of the next 15 years.’’ In other it has started to ease the price that is planned development may not happen; words, the industry will profit from the price being charged to most of America. jobs are lost. Therefore, I think the un- hikes they are now trying to put in place. So here we are, coming along with an derlying bill is important. Does that concern Members? underlying bill that says basically we That is why I support the Nelson I come to the floor to offer an amend- are going to hold the insurance com- amendment. What the Nelson amendment on a bill that I question the need pany on any future conventional weap- ment says is if the Federal Government for but I did not block because I ons terrorism risk only a little bit re- is basically going to assume the finan- thought it ought to be aired and dis- sponsible. Instead, we are going to shift cial risk of a terrorist act, then we cussed and voted on. I come to offer an most of that terrorism risk over to the should ensure that the insurance indus- improvement to that bill on its fatal Federal Government of the United try is passing on this reduced risk in flaw. The fatal flaw is that it does not States. the form of lower insurance premiums have a provision to protect consumers For certain properties, I agree there to businesses. from rate hikes and rate gouging. is a legitimate need for the Federal The background of my colleague When dealing with insurance, con- Government to backstop insurance from Florida is in this very area, and sumers have to have two provisos: In- companies. Those are primarily your he can speak about this with more ex- surance has to be available, and it has trophy properties. But because the in- pertise, but he is saying we do not want to be affordable. Part of the reason for surance marketplace has responded to end up giving private insurance the bill coming to the floor is that the over the last half year, we do not need companies a blank check to gouge perception is out there, particularly to respond with this kind of legisla- businesses. That is the real danger. among large real estate properties, tion, and we surely do not need to re- In other words, if the problem the that it is neither available nor afford- spond with this kind of legislation Senate is trying to address is the sky- able. What this amendment tries to do which, in fact, has no ability to limit rocketing costs of terrorism insurance, is, in making it available as the under- the rate hikes that will occur. and we address it by reducing the li- lying bill does, in a huge Federal sub- Thus, I offer my amendment as a ability of the insurance industry to sidy—in other words, the Federal Gov- means of process. acts of terrorism, then we should make

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5491 sure the loop is closed and businesses The proposal has been that, once market to emerge, if we want to en- are not charged exorbitant rates for in- there is a cataclysmic loss, the Federal courage syndication, you don’t do that surance the United States taxpayers Government be the backup for insur- with individual company retention. I are actually providing. I believe that is ance companies. The word that has am afraid we are creating a hothouse what the Nelson amendment says. been used throughout the debate is the plant here which will never get out of Therefore, I think it is common sense. Federal Government would be the subsidization. We will never get out of I think it will make terrorism insur- ‘‘backup.’’ In October, when we were this business if we leave the bill the ance more available. I think it will pre- putting together a bill that had a re- way it is now. vent the gouging of businesses. I think tention rate of $10 billion, which meant I am not saying that the $10 billion it will prevent us from giving just a that private insurers had to lose $10 retention solves every problem in the blank check to this insurance industry. billion before we stepped in and started bill. It doesn’t. But at least it forces That is why I support the amendment. to pay 90 percent of the costs, $10 bil- companies to syndicate, and it forces I think this amendment is good for lion is a cataclysmic loss. companies to be willing to purchase re- our businesses. I also think this What happened as the bill evolved in insurance. That creates the profits to amendment is in the spirit of the un- December, and when we were only bring it into existence. derlying bill. I think it does not in any weeks away from the bill going into ef- I intend to vote against the amend- way, shape, or form—I say to my col- fect, that $10 billion retention got ment of the Senator from Florida, but league from Florida—negate or under- changed to individual company reten- I wanted to make it clear that he has cut this legislation. I just think it tions. So the level at which the tax- raised an issue that the current bill strengthens it. I think it closes a loop- payer starts paying has gone down and does not deal with. If this amendment hole and provides the additional pro- down. Now we find ourselves in a posi- is not successful, I hope we will find a tection we need to have, to make sure tion where various interests that would way for dealing with it. that we, the taxpayers, are not under- have been delighted in October to have I yield the floor. writing the insurance business which gotten the $10 billion retention now op- The PRESIDING OFFICER. The Sen- then gouges business. I believe that is pose it, wanting individual company ator from Nevada. what this is about—strong probusiness retentions. Mr. REID. Mr. President, I have spo- and strong proconsumer. The Senator from Florida is simply ken to the Senator from Florida, the If I could just take another minute or pointing out that to come in now sponsor of this legislation. At approxi- two, I ask unanimous consent that I where the Federal Government is going mately 3:15—he thinks that would give may take 5 minutes to speak as in to pay out money before there is a everyone enough time to say what they morning business. mega loss is going to create a situation have to say, and we have a presen- The PRESIDING OFFICER. Without where people have charged premiums tation to be made by Governor Ridge objection, it is so ordered. and sold policies based on one set of at 2:15—I alert everyone that we prob- The Senator from Minnesota is rec- circumstances. ably will have a vote at about 3:15 this ognized. We are about to change those cir- afternoon on this matter. Mr. WELLSTONE. I thank the Chair. cumstances. In doing so, you are going Mr. NELSON of Florida. Mr. Presi- (The remarks of Mr. WELLSTONE per- to have a net wealth effect. There is no dent, will the Senator yield? taining to the introduction of S. 2617 question about it. Mr. REID. Yes. are located in today’s RECORD under I think the solution is to change the Mr. NELSON of Florida. Does that ‘‘Statements on Introduced Bills and bill before us and require a higher level mean we will continue in session even Joint Resolutions.’’) of loss—a higher level of ‘‘retention,’’ while Governor Ridge is speaking? The PRESIDING OFFICER. The Sen- as it is called in the industry—so we Mr. REID. That is right. ator from Texas. simply move back to insure the kind of Mr. NELSON of Florida. I ask unani- Mr. GRAMM. Mr. President, let me loss that no one was able to insure mous consent that Senator CLINTON be first say that I believe the Senator against in any case. a cosponsor of the amendment. from Florida is to some degree correct But I wanted to make it clear that The PRESIDING OFFICER. Without about his concern. I think his remedy there is some validity to the Senator’s objection, it is so ordered. is wrong, and I am not going to support argument and concern about equity. The Senator from Utah is recognized. it. But I believe there is a problem. I Having said that, I am very loathe to AMENDMENT NO. 3839 wish to try to set out what I think the getting the Federal Government in the Mr. HATCH. Mr. President, on De- problem is and why I don’t think this is business of setting insurance rates. We cember 5, 2001, the Senate ratified two the remedy. have never done it before. It is some- extremely important international The problem is that, beginning in thing that has been done by the States. treaties, the International Convention January of this year, huge numbers of Those State regulations are still in for the Suppression of Terrorist Bomb- insurance policies expired. We tried place. ings and the International Convention last year without success to pass a bill. I know our distinguished colleague for the Suppression of the Financing of That effort went into mid-December. I from Florida has been a State insur- Terrorism, both of which further our am familiar with it because I was in- ance commissioner, and he understands efforts in the worldwide war on ter- volved in it. Insurance companies sold how difficult it is to set these rates. As rorism. policies beginning in January, and we difficult as it is for Florida and Texas, Under the terms of these treaties, are in June. Policies have been sold. it would be more difficult for the Fed- which were negotiated under the aus- Rates have gone up, as they had to go eral Government because we have pices of the United Nations, the United up because risks have gone up. never done it. States and the other countries who are But if we come in now with a bill I simply, again, make the point that signatories to the treaties, have obli- that has a very low retention, where I made earlier; that is, I think there gated themselves to prohibit acts of the taxpayer is going to become the are two problems with this bill as it ex- terrorism, or in support of terrorism, net payer before there is a substantial ists now. One is we are leaving victims within their national borders. The sig- or mega loss—I remind my colleagues of terrorism unprotected against preda- natories to these treaties are com- that when we first started debating tory lawsuits. On a straight party-line mitted to fighting the global war this no one proposed that we go into vote a minute ago, we decided to do against terrorism. business with the insurance companies. that. I rise today to offer an amendment No one has proposed—I don’t think The second problem is that we have a that would implement the terms of anybody proposed. Maybe I had better retention level in this bill now that is these treaties by creating new criminal be careful because for every bad idea so low that it doesn’t take into ac- offenses for terrorists who detonate there is a constituency. But I don’t count the fact we have had 7 months bombs in public places, and for those think anybody has proposed that we where insurance has been sold with no individuals who aid terrorists by pro- set up a Government insurance pro- Federal backup. Also, the most critical viding or collecting funds for use in gram. point is that, if we want a reinsurance terrorist activities. I had hoped that

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5492 CONGRESSIONAL RECORD — SENATE June 13, 2002 there would be no need for such an Mr. GRAMM. Why don’t you just ask Insurance Act of 2002. Naturally, I sup- amendment today. There is bipartisan it be set aside and offer yours as a first ported the amendment of the distin- support for passing implementing leg- degree? guished Senator from Kentucky, Mr. islation. Mr. HATCH. Mr. President, instead of MCCONNELL. I am very disappointed I I commend Senator LEAHY for sup- doing that, I ask unanimous consent was unable to speak on the McConnell porting almost identical legislation that we set aside the pending amend- amendment before the premature mo- that I am presenting and attempting to ment, and I will offer this as a first de- tion to table. I think most of us agree pass such legislation just last night. gree. that something needs to be done in this The bill was cleared on the Republican The PRESIDING OFFICER. Is there area. What we need to agree on is how side. However, I understand that the objection? to resolve the issue in a prudent and Democrats refused to pass it. That is Mr. REID. I object and suggest the responsible manner that provides the most unfortunate, and I am dis- absence of a quorum. appropriate stability to our economy appointed in the Senate’s failure to The PRESIDING OFFICER. The Sen- without exposing our taxpayers to an act. ator from Utah retains the floor during unreasonable financial burden. Let me This is critical legislation that we the unanimous consent request. begin by stressing the importance of must enact promptly. As I have al- The Senator from Utah. this issue. Insurance plays a vital role ready stated, the Senate already rati- Mr. HATCH. Mr. President, I renew in this country, not just in helping in fied these treaties on December 5, 2001. my request to set aside the Nelson the recovery after a tragedy, but in the the House of Representatives acted amendment, and send an amendment day to day operation of our national soon thereafter, on December 19, 2001, to the desk. economy. We all know the devastating to pass a bill, H.R. 3275, which is iden- The PRESIDING OFFICER. Is there impact the events of September 11th tical to the amendment I am offering objection? had on our Nation—the human cost today. There has been overwhelming, Without objection, it is so ordered. alone. What some do not realize is the bipartisan support for this legislation. The clerk will report the amendment. economic impact that has resulted and H.R. 3275 was passed by a vote of 381–36. Mr. REID. Will the Senator from which will continue to have a negative For one reason or another, however, Utah yield for a unanimous consent re- effect on business, the normal flow of the bill has been stalled in the Senate. quest? commerce, and especially the jobs of I urge my colleagues to give their Mr. HATCH. Excuse me? everyday Americans if we do not act unanimous support to this amendment. Mr. REID. Will the Senator from and if we do not act responsibly. Insur- The President of the United States, as Utah yield for a unanimous consent re- ance is necessary to the operation and well as Treasury Secretary Paul quest? financing of property and the construc- O’Neill, Secretary of State Colin Pow- Mr. HATCH. I am happy to yield for tion of new property. Without insur- ell, and Attorney General John such purpose. ance, our economic growth is in jeop- Ashcroft, have all voiced support for Mr. REID. Mr. President, it is my un- ardy, businesses will fail, and jobs will this implementing legislation. Indeed, derstanding the Senator from Utah has be lost. My constituents have come to we have an obligation under the trea- asked—and everyone has agreed—that me on multiple occasions, imploring ties we ratified to enact this legisla- the Nelson amendment be set aside, that the Senate act on this issue. They tion. and his amendment would stand sepa- are genuinely concerned about the neg- Here is what my amendment would rate from that. ative impact lack of coverage will have do. It would meet our obligations under Therefore, I ask unanimous consent on their businesses and on their em- the two treaties by prohibiting certain that at 3:15 today Senator DODD or his ployees. acts within our borders. With respect designee be recognized to offer a mo- Mr. President, I ask unanimous con- to the Terrorist Bombings Convention, tion regarding the Nelson amendment. sent to have printed in the RECORD a the legislation would prohibit deliv- The PRESIDING OFFICER. Is there letter dated June 10, 2000, from the ering or detonating an explosive or objection? Treasury Department and signed by other lethal device in a public place, a Mr. NELSON of Florida. Reserving not only the Secretary of the Treasury transportation system, or a State or the right to object. but the Director of the Office of Man- government facility. With respect to The PRESIDING OFFICER. The Sen- agement and Budget, the Director of the Terrorist Financing Convention, ator from Florida. the National Economic Council and the the legislation would prohibit pro- Mr. NELSON of Florida. I would ask Director of Economic Advisors—all viding or collecting funds with the that you amend that unanimous con- urging that the Congress act to address knowledge or intent that such funds be sent request so that I have 5 minutes to this issue, but, most importantly, all used, in full or in part, to finance an close before the vote on my amend- noting that it must be addressed in a act of terrorism. ment. reasonable and responsible manner. Mr. President, it is essential—now Mr. REID. That would be fine that Mr. President, I ask unanimous con- more than ever—that the United Sates you would have 5 minutes and also that sent that letter be printed in the maintain its position at the forefront the minority would have 5 minutes. So RECORD. of nations in opposition to terrorism. we would begin that at 5 after 3 p.m. There being no objection, the letter This legislation fulfills our obligations The PRESIDING OFFICER. Is there was ordered to be printed in the under the treaties we already have objection? RECORD, as follows: ratified. Identical legislation has al- The Chair hears none, and it is so or- DEPARTMENT OF THE TREASURY, ready passed the House of Representa- dered. Washington, DC, June 10, 2002. tives. So I sincerely hope that we will The clerk will report the amendment. Hon. TRENT LOTT, adopt this amendment here today, and The senior assistant bill clerk read as Senate Republican Leader, on its own, so that we can deliver it to follows: U.S. Senate, Washington, DC. DEAR SENATOR LOTT: The War on Ter- the President to sign and thereby con- The Senator from Utah [Mr. HATCH] proposes an amendment numbered 3839. rorism must be fought on many fronts. From tinue to lead the world in the fight an economic perspective, we must minimize against terrorism. Mr. HATCH. Mr. President, I ask the risks and consequences associated with Now, could I ask the Parliamen- unanimous consent reading of the potential acts of terror. No measure is more tarian, is it possible for me to offer this amendment be dispensed with. important to mitigating the economic ef- amendment as a second-degree amend- The PRESIDING OFFICER. Without fects of terrorist events than the passage of ment to the Nelson amendment? objection, it is so ordered. terrorism insurance legislation. Last November 1, the Administration pub- The PRESIDING OFFICER (Mr. CAR- (The amendment is printed in today’s licly agreed to bipartisan legislation nego- PER). The Nelson amendment is subject RECORD under ‘‘Text of Amendments.’’) tiated with Chairman Sarbanes, Chairman to a second degree. The PRESIDING OFFICER. The Sen- Dodd, Senator Gramm and Senator Enzi. Mr. HATCH. Then I will call up the ator from Utah. While the House of Representatives quickly amendment and offer it as a second-de- Mr. HATCH. Mr. President, I rise to responded to this urgent need by passing ap- gree amendment. speak on S. 2600, the Terrorism Risk propriate legislation, the Senate did not act

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5493 and has not passed any form of terrorism MITCHELL E. DANIELS, My colleague from Kentucky, Sen- legislation in the intervening seven months. Director, Office of ator MCCONNELL, has offered an amend- The absence of federal legislation is having Management and ment that I think is both reasonable a palpable and severe effect on our economy Budget. and necessary to ensure that we ad- and is costing America’s workers their jobs. LAWRENCE LINDSEY, In the first quarter of this year, commercial Director, National dress this issue in the proper and most real estate construction was down 20 per- Economic Council. effective manner. His amendment pro- cent. The disruption of terrorism coverage R. GLENN HUBBARD, vides for a Federal cause of action and makes it more difficult to operate, acquire, Director, Council of consolidation of multiple actions relat- or refinance property, leading to diminished Economic Advisors. ing to the same event by the panel on bank lending for new construction projects Mr. HATCH. My colleagues from Ken- multidistrict litigation. When we are and lower asset values for existing prop- tucky and Connecticut have already re- dealing with a catastrophic event, it erties. The Bond Market Association has makes sense to have a process in place said that more than $7 billion worth of com- ferred to this letter, but I would like to mercial real estate activity has been sus- highlight a few of the specific points that avoids inconsistent judgments in pended or cancelled due to the lack of such conveyed in that letter. multiple courts which could result in insurance. Last week, Moody’s Investors Quoting the letter: disparate treatment of victims. Service announced that 14 commercial mort- In the first quarter of this year, commer- This amendment of the distinguished gage-backed transactions could be down- cial real estate construction was down 20 Senator from Kentucky does not ban graded due to a lack of such insurance. percent. The disruption of terrorism cov- punitive damages. Let me restate, it Without such insurance, the economic im- erage makes it more difficult to operate, ac- does not ban punitive damages. It en- pact of another terrorist attack would be quire, or refinance property, leading to di- sures that punitive damages are not much larger, including major bankruptcies, minished bank lending for new construction layoffs and loan defaults. While we are doing counted as an insured loss covered by projects and lower asset values for existing the Government backstop, as does S. everything we can to stop another attack, properties. The Bond Market Association has we should minimize the widespread economic said that more than $7 billion worth of com- 2600. Senator MCCONNELL’s amendment damage to our economy should such an event mercial real estate activity has been sus- goes on to provide that punitive dam- occur. pended or cancelled due to the lack of such ages will be available to a claimant, if One important issue for the availability of insurance. State law so provides, but only if terrorism insurance is the risk of unfair or Without such insurance, the economic im- criminal conduct by the defendant is excessive litigation against American com- pact of another terrorist attack would be panies following an attack. Many for-profit proven. This is reasonable and just. much larger, including major bankruptcies, Without this limitation, then we are in and charitable entities have been unable to layoffs and loan defaults. obtain affordable and adequate insurance, in effect punishing victims of terrorism part because of the risk that they will be un- This letter really underscores the se- and lining the pockets of the trial law- fairly sued for the acts of international ter- rious ramifications to our economy yers, not the victims. My colleagues on rorists. that have resulted from a lack of cov- the other side of the aisle seem to To address this risk at least two important erage for terrorist acts and supports think that if they merely provide that provisions are essential. First, provisions for congressional action in this area. How- an exclusive federal cause of action and con- the Government will not cover punitive ever, it seems to me we ought to do it damages that is all that is necessary. I solidation of all cases arising out of terrorist in a responsible manner. The letter attack like those included in the Air Trans- submit that the provision regarding portation Safety and System Stabilization goes on to state: punitive damages in S. 2600 actually Act, are necessary to provide for reasonable One important issue for the availability of compounds the problem. Insurance and expeditious litigation. terrorism insurance is the risk of unfair or companies do not generally cover puni- Second, the victims of terrorism should excessive litigation against American com- tive damages, so those that are really panies following an attack. Many for-profit not have to pay punitive damages. Punitive at risk of bearing the brunt of the ter- damages are designed to punish criminal or and charitable companies have been unable near-criminal wrongdoing. Of course such to obtain affordable and adequate insurance, rorist attacks are the insured busi- sanctions are appropriate for terrorists. But in part because of the risk that they will be nesses, businesses that provide jobs. Do American companies that are attacked by unfairly sued for the acts of international we really want to undercut the real terrorists should not be subject to predatory terrorists . . . It makes little economic sense purpose of enacting Federal terrorism lawsuits. The availability of punitive dam- to pass a terrorism insurance bill that leaves insurance legislation? ages in terrorism cases would result in in- our economy exposed to such inappropriate Senator MCCONNELL’s amendment equitable relief for injured parties, threaten and needless legal uncertainty. has another important aspect—settle- bankruptcies for American companies and a In the event of a terrorist attack it is ment approval by the Secretary of the loss of jobs for American workers. contrary to commonsense to place un- It is also clear that the potential for mas- Treasury. If the Government is going sive damages imposed on companies that suf- limited exposure on companies—who to act as a backstop for insurance, then fer from acts of terror would endanger our are themselves victims of that attack— we must ensure that the Government’s economic recovery from a terrorist attack. for the criminal acts of third parties, generosity is not abused. An approval Indeed, the added risks and legal uncertainty the terrorists. I do not suggest that we mechanism such as that proposed by hanging over the economy as a result of last should limit the recovery of economic Senator MCCONNELL will work to en- September 11th are major factors inhibiting damages of an injured victim if there is sure that any settlement of a claim is a business willingness to invest and to create culpability on the part of a business. justified and supportable by the under- jobs. It makes little economic sense to pass However, we must provide some sta- a terrorism insurance bill that leaves our lying facts and not a rush to the court- economy exposed to such inappropriate and bility in the litigation process by house so that the trial lawyers can needless legal uncertainty. streamlining a Federal cause of action cash in and the defendants can reach The bipartisan public agreement reached and not allowing punitive damages un- their, what is in essence a deductible between the Administration and Chairman less criminal conduct is proven, as the limit, resulting in the Government re- Sarbanes, Chairman Dodd, Senator Gramm distinguished Senator so aptly argued sponsibility kicking in prematurely. and Senator Enzi last fall provided these in the prior amendment. Punitive dam- We are seeking to provide stability to minimum safeguards. We would recommend ages are designed to punish the defend- our economy, but S. 2600, as currently that the President not sign any legislation that leaves the American economy and vic- ant, not compensate the victim. I ask written, will actually hurt those we are tims of terrorist acts subject to predatory my colleagues, is it fair to punish a de- trying to help. If given the opportunity lawsuits and punitive damages. fendant business for the criminal acts I would have urged my colleagues to The American people and our economy of a third party? support this amendment so that we can have waited seven months since our public The President may well veto any provide the necessary stability to our agreement on legislation. The process must measure that unreasonably exposes economy in an appropriate manner. move forward. Prompt action by the Senate taxpayers and fails to provide stability I hope before this debate is over we on this vitally important legislation is need- to our economy. We need to act in this can return to this issue and resolve it. ed now. Sincerely, area, but if we fail to do so in a respon- It is hard for me to support a bill such PAUL H. O’NEILL, sible manner, legislation may never be as this if we don’t resolve this type of Secretary of the Treas- enacted and we will have failed in our problem, because we are creating prob- ury. responsibility. lems, not resolving them. Frankly, it is

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I want the Federal Government of the Judiciary Committee, is working rorism rates of which the Federal Gov- to step to the plate. But I want them to his way over here to talk with the Sen- ernment is picking up 80 or 90 percent. do it under the right circumstances ator from Utah. Maybe they can re- Mr. DODD. Mr. President, I will con- with well-written laws that will make solve this matter and there can be a cede that point because this is a 2-year a difference in the fight against ter- way to deal with this rather than hav- bill that sunsets. Obviously, we are rorism but will not destroy companies ing us necessarily get caught up in ex- talking about if all of a sudden the De- or businesses or jobs, which is what I tensive debate on the implementation partment of the Treasury—is going to think this current bill will do. of a convention in the midst of the ter- set rates and engage in all of the ac- I appreciate the leadership of those rorism insurance bill, which is of con- tivities that a normal insurance com- who are trying to resolve this problem cern to me, that we would end up off on missioner would, on a Federal level it and who have brought this bill to the a tangent and not get the matter be- is going to require a rather significant floor. I want to support them, but we fore us considered properly. step forward. have to start worrying about what I see my colleague standing. Let me address this. The one point works economically, what works le- Mr. HATCH. Mr. President, I will be the Senator from Florida has raised gally, what is fair legally, what really happy to work with the distinguished with which I agree—the language is dif- should be done. We have to punish the Senator and listen to any suggestions ferent, but I think the point is the perpetrators and not punish those who that are made. same. In the underlying bill, on page are the victims. I think it is very pertinent to this 12, lines 7 through 12, paragraph 2, In many cases, the bill as written bill. I would like to work with him. I under conditions for Federal payments: does not solve those problems. I think am open and will be happy to get our No payment may be made by the Secretary we should spend a little more time in two staffs together. under subsection (e) unless . . . (2) the par- trying to find some common ground to Mr. DODD. I appreciate the com- ticipating insurance company provides clear help resolve these problems. ments of the Senator from Utah. I hope and conspicuous disclosure to the policy- Good trial lawyers don’t need puni- my other colleagues on the Judiciary holder of the premium charged for insured tive damages. If they are really good, Committee have heard his statement. losses covered by the Program and the Fed- they can still get tremendous judg- That seems to leave the door open for eral share of compensation for insured losses under the program. ments and awards against those who some possible resolution of the matter. are negligent, those who haven’t done Let me address the Nelson amend- In effect, it is separate accounting so what is right. But when you allow pu- ment. My colleague from Florida has that we have a very clear accounting nitive damages, that can lead to run- offered an amendment that comes in procedure which allows that whatever away juries and other problems. As an several parts. I will emphasize to him premiums are collected for terrorism example, States such as Nevada have that the first parts of it deal with basi- insurance would be accounted for sepa- had so many medical liability cases cally having the Secretary of the rately from other premiums collected. brought now that they are losing their Treasury, as I read it, becoming an in- The language the Senator from Florida obstetrician-gynecologists, neuro- surance regulator, a Federal insurance has is even more explicit. It requires surgeons, and other surgeons. Physi- regulator. segregation of the funds and the like. I cians are going to other States or they I will hold some hearings, as the don’t disagree with him on that part of are just getting out of the business. chairman of the Securities Sub- his amendment, that we ought to have That is starting to happen all over committee, with the permission and separate accounting. America because we are not approach- approval of the chairman of the com- Secondly, in response to some coming these problems in ways that really mittee, Senator SARBANES. But we ments made by my colleague from make sense. On this bill, we ought to want to hold hearings at some point on Florida, there are significant reporting approach it in a way that makes sense. the whole issue of a Federal regulator requirements. Let me remind my col- With that, I yield the floor. of insurance. That is a very important leagues again, what we have done with The PRESIDING OFFICER. The Sen- debate and discussion. the underlying bill is maintain the im- ator from Connecticut. I know the Senator from New York, portant role of State insurance com- Mr. DODD. Mr. President, I believe Mr. SCHUMER, has a significant interest missioners. Rates will be set by insur- Senator LEAHY from Vermont will talk in that subject, as does my colleague ance commissioners at the State level. with the Senator from Utah about his from New Jersey. It is a very divided Now they are done differently. amendment which, except for the word constituency within the insurance con- I will repeat the point. Under exist- ‘‘terrorism,’’ is unrelated to the sub- stituency as to whether there ought to ing law in the 50 States, 40 States pres- stance of the underlying bill. I think be a Federal regulator or not. That is ently allow rates on property and cas- the effort was to make that a free- going to require a number of hearings ualty in the commercial field to go for- standing proposal to deal with imple- as to whether or not we want to make ward, and then the commissioner can mentation of a convention dealing with that step and move forward. rule that the rate is too high. In 10 terrorism. My hope is that the mem- I do not have an opinion on that issue States, the State law prohibits any bers of the Judiciary Committee will one way or the other. rate increase prior to approval by the work on this to see if they can’t re- Mr. NELSON of Florida. Will the State commissioner’s office. solve that matter to have it be dealt Senator yield? Under this bill, we do a number of with as a freestanding proposal rather Mr. DODD. I am happy to yield. things. One of the things we do here is than as an amendment. Mr. NELSON of Florida. Mr. Presi- follow what 40 States do. In other The reason I say that to my friend dent, the Senator raised a very legiti- words, under this, we will allow for and colleague from Utah is that if we mate question. I think that ought to be rate increases to occur, but we in no begin to open up this bill to matters hashed out. However, the Senator’s bill way undercut the historic role of State unrelated to the subject matter, we does self-destruct at the end of year commissioners then to oppose a rate will delay enactment of this bill. It 2002, unless it is extended by the Sec- increase. So we maintain a very strong may die here on the floor. If Members retary for 1 more year. role for the insurance commissioners. are interested in seeing us get some- Mr. DODD. That would be 1 year. The Why? Because, obviously, the exper- thing done on terrorism insurance, we bill before us is only a 2-year bill. So it tise is there. They have the shops and need to stick with amendments related is 1 year and a second year if the Sec- the personnel to do it. To all of a sud- to the subject matter. retary of the Treasury agrees to it. den allow one Federal regulator, the

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5495 Department of the Treasury, to do that Again, this is not terribly com- surance commissioner at the State would be asking too much, and it plicated when it comes to the political level. would be very difficult for the appa- questions. It doesn’t take a lot to at- For those reasons, I strongly urge ratus to be set up. tack an insurance company. That is a that my colleagues reject this amend- Mr. NELSON of Florida. Will the safe bet politically. People don’t like ment. Senator yield for a series of questions? rate increases, and they know the dif- I see my friend from Massachusetts. I Mr. DODD. At some point I will, but ficulties they can have when claims are am wondering what is on his mind. Let let me get through my statement. Let filed. me suspend for 1 minute, Mr. Presi- me tell you some of the reporting re- The problem is, if you are opposed to dent. quirements we have here and why this the idea of insurance companies, vote Our colleague from Massachusetts in- would be. against the bill. I guess that is a simple forms me there is a markup of a bill The Senator’s amendment does set answer; it is probably a safe bet if that that may require the presence of both up the Secretary of the Treasury to be is your concern. If you are worried at the Senator from Connecticut and the the regulator. There may be Members all, as you ought to be, about the fact Senator from Florida. who believe that is a progressive step. that banks are not providing the loans Mr. NELSON of Florida. I will be I think it is dangerous. to major commercial enterprises be- happy to run downstairs with the Sen- Secondly, it would have the effect of cause of the absence of terrorism insur- ator from Connecticut to make a a price control, trapping capital for ance, and you hear, as we have, from quorum if we can come back and re- many issues that do not experience a the AFL–CIO, as well as others, that sume and I can ask the Senator a series loss attributable to acts of terrorism. I there is a growing job loss over this, it of questions. don’t think we want to do that. We are is causing a problem economically, and Mr. DODD. I am always glad to do it. not trying to facilitate a clogging up of when you already have 10 percent of I will be happy to hear the questions. I the commercial process that is ongo- the commercial mortgage markets and do not know how well I can respond to ing. the secondary-market-backed securi- them. Thirdly, with regard to the reports, ties already in the first quarter not I suggest the absence of a quorum. the Secretary must report to Congress forthcoming in the bond market, these The PRESIDING OFFICER. The 9 months after date of enactment on are signals that we have a problem eco- clerk will call the roll. the availability and affordability of the nomically. The assistant legislative clerk pro- insurance for terrorism and a reflec- If you want the Federal Government ceeded to call the roll. tion on the impact on the U.S. econ- to be an insurance company, you ought Mr. DODD. Mr. President, I ask unan- omy. to vote for the amendment of the Sen- imous consent that the order for the The Secretary must report to Con- ator from Florida. That is what we did quorum call be rescinded. gress 9 months after the date of enact- in World War II. If you believe it makes The PRESIDING OFFICER. Without ment on the availability of life insur- sense in the longer term to have the objection, it is so ordered. ance and other lines of insurance cov- private sector involved in insurance Mr. DODD. Mr. President, I have erage. We only deal with property and and not the Federal Government, then completed my remarks in response to casualty. There is a legitimate issue it seems to me you ought to vote the amendment of my friend from Flor- being raised about other forms of in- against this amendment and vote for ida. He has a series of questions, so I surance that we do not cover in this the underlying bill. That is a choice will be happy to yield to my colleague bill. you have to make. In a few hours, you for the purpose of asking some ques- Also, participating insurance compa- can make that choice. tions. nies must report their terrorism pre- The amendment of the Senator from Mr. NELSON of Florida. Mr. Presi- mium rates to the National Associa- Florida runs the risk of providing a dent, I thank my colleague. Again, this tion of Insurance Commissioners every program that I don’t think is workable, was another experience where we had 6 months. These reports will be for- except for the point I mentioned ear- to temporarily suspend the debate in warded from the NAIC to the Treasury lier. I don’t disagree with my colleague order to go downstairs to the Foreign Department, the Commerce Depart- about having an accounting process Relations Committee to provide a ment, the Federal Trade Commission, that makes it possible for us to distin- quorum so we could vote out a very im- and the General Accounting Office. guish between premiums collected for portant piece of legislation. These agencies would submit a joint re- terrorism insurance and for nonter- First, I wish to ask a couple of ques- port to Congress summarizing and rorism insurance. tions about which we agree. evaluating the data they receive from I hope that when this amendment The Senator from Connecticut has a the NAIC. The GAO will report to Con- comes up for a vote in about an hour, provision in his bill that says: gress on its evaluation of the agency or less than that, my colleagues will do The participating insurance company pro- reports. We are trying to get as much what I think is the responsible thing to vides clear and conspicuous disclosure to the internal information as we can coming do here, and that is reject this amend- policyholder of the premium charged for in- through here so we can provide addi- ment. I have told my colleague from sured loss covered by the program. tional data when it comes to rate in- Florida I am happy to work with him ‘‘Provide clear and conspicuous dis- creases. on the provision dealing with the ac- closure.’’ Listen to the language in my There is a very important point to counting question because I agree with amendment with regard to the same make about insurance commissioners. him on that. I think we want to have issue, and see if the distinguished sen- Insurance commissioners not only set clear accounting so we know what is ior Senator from Connecticut does not rates, what premiums can be charged, going on. think that the language I have would but in every State they bear the re- With all due respect—and he is a not be something of an improvement sponsibility of seeing to it that insur- good friend, and I have great respect by making it a little more specific. I ance companies that do business in for him, and I admire the work he did am referring to page 2 of my amend- their States are solvent. That is a crit- as insurance commissioner of the State ment, line 18. The lead into it is: ical issue for consumers. In fact, if of Florida—providing the Secretary of If a participating insurance company in- they hold policies under an insurance the Treasury the ability to become an creases annual premium rates on covered company and that company lacks sol- insurance regulator goes too far, in my risks under subsection (a), the company— vency, then obviously those consumers view. To require segregation of these (2) shall identify the portion of the pre- are in jeopardy of not having their accounts entirely would run the risk of mium insuring against terrorism risk on a claims paid if some event occurs. I am insurance commissioners at the local separate line item on the policy . . . not just talking about terrorism insur- level being able to guarantee the sol- The reason we put that there is it is ance here. So the dual responsibility of vency of these companies to do busi- my experience that if you do not nail insurance commissioners is to not only ness in their States, which you know, down general language and be very spe- set rates, but also to make sure that as a former insurance commissioner, is cific, it will not end up on the policy on the companies themselves are solvent. a critical part of the function of an in- a separate line so that the consumer

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5496 CONGRESSIONAL RECORD — SENATE June 13, 2002 can see how much they are being caused the industry to back up in is no question that those terrorism pre- charged for the insured risk, in this terms of its willingness to provide in- miums get commingled with all the case the terrorism risk. surance coverage for events they no other premiums and suddenly we do I ask the distinguished senior Sen- longer can cost out, at least effectively not know how much that is. ator from Connecticut if he would con- in their minds, absent, of course, a se- I further ask the distinguished Sen- sider that later on as a perfecting ries of other events which no one ator, does the Senator’s bill require amendment to his language on page 12, knows will be the case. that premiums collected for terrorism the paragraph starting at line 7? That is how costing out occurs with risk be used for terrorism losses only? Mr. DODD. Mr. President, as a proce- natural disasters. After a number of Mr. DODD. Responding to my col- dural matter, obviously we are not in a years when you have certain hurri- league, first, we are dealing with a 2- position to do that. I told my colleague canes, as my friend from Florida year bill. This is not in perpetuity. It is in conversations we have had about his knows, it is easier for them to cost over 24 months. To all of a sudden re- amendment that I will be happy to events when there are a series of events quire a whole bunch more segregation work with him to tighten up, if he be- they can judge over a series of years. of accounts and setting up apparatuses lieves it is necessary, the language in Because this is such a unique event, to do it, seems to me, an overreaction. the underlying bill. Obviously, what is what happened here—and we hope this If we were talking about a permanent before us is a much larger amendment is the last time it ever occurs—but in program, then my colleague’s case may that covers a lot of other subject mat- the absence of having a series of have more validity. ters other than just the issue of separa- events, it is very difficult for them ac- If we look back at the language of tion of accounting. tuarially to determine what costs are the bill in our accounting, it requires I will state for the record as well, he in order to set premiums. in the language, as he read, a very may prevail with his amendment. If he I will be happy to work with my col- clear and conspicuous disclosure to the does, then obviously all of his language league from Florida under the cir- policyholder of the premium charged gets included. If his amendment fails cumstances that I have described. for insured losses covered by the ter- when voted upon, then I will be happy Mr. NELSON of Florida. Will the dis- rorism insurance program. Now, clear to work with him to see if we cannot tinguished Senator from Connecticut and conspicuous seems to be about as tighten up the language to such a de- yield for a further series of questions? clear and conspicuous as language gree that will satisfy him and satisfy Mr. DODD. Absolutely. could be. our concerns as well. Mr. NELSON of Florida. Does the For a 24-month bill, my point would At this point, for me, in the midst of Senator’s bill require terrorism pre- be that we are overreacting by requir- a floor action, to work on language is miums to be held in a separate ac- ing the separate accounting. And not not the most appropriate setting for count? getting into the business of segregating doing that, and procedurally it is awk- Mr. DODD. No, it does not. accounts and all of the costs associated ward, obviously, with an amendment Mr. NELSON of Florida. Would the with that seems to me to satisfy and pending. We have to set that aside and Senator want to propound why it should satisfy a majority of us. I think take language, and I prefer we do it in should not be in a separate account? people have looked at this and have the the way I suggested. Mr. DODD. If we look at the account- same kind of concerns that our col- If the amendment of the Senator ing and start setting up separate ac- league from Florida has raised. from Florida prevails, the issue be- counts, then in a sense capital is being Mr. NELSON of Florida. If the Sen- comes moot. If he does not prevail, he trapped, and I do not think we want to ator will allow me to continue with an- has my commitment to work on lan- do that. At least I do not want to do other couple of questions, I would guage to tighten up and do what he that; others may want to do it. That is merely respond to the distinguished wants to do and what we are interested one of the issues, solvency. Senator’s comments, that here is an in doing as well, and that is getting a As a former insurance commissioner, example today on the front page of the very clear accounting, have a very the Senator from Florida knows that Washington Post, that we are talking clear understanding of the difference no company can do business in his about rates being hiked using the ter- between premiums collected for ter- State unless they are solvent, unless rorism risk as an excuse. Therefore, I rorism insurance and premiums col- they have in reserve adequate enough clearly implore the Senate that it lected for nonterrorism insurance, so resources to respond to the claims that makes common sense, if rates are we can have a better understanding can occur from a natural disaster or going to be hiked for terrorism risk, over the next 2 years or 3 years, de- other types of insurance that may be make sure it is those rate premiums pending on how long this program is provided. So solvency is critically im- that are paying the terrorism losses, going to go if other amendments are portant. and not going into the general fund and adopted. If we start segregating accounts, we suddenly all of the premiums get The Senator already made note of get into the issue of capital adequacy. jacked up. If we are going to jack rates the fact that we are dealing with a 24- So I think I would be unwilling to re- higher than the Moon, then let us at month bill, and that is only the second quire segregation of accounts. I think least segregate them so they are there 12 months if the Secretary of the if we have an accounting of them, we for what they are purported to be there Treasury decides to extend the pro- would achieve the same result. for, and that is to pay for a terrorism gram for an additional year. Mr. NELSON of Florida. I will merely loss. That is what I would propound to As it is presently worded, this will respond before I ask my next question the Senator. expire, assuming it is enacted over the by saying that we have clearly a sepa- Mr. DODD. In response, I think the next week or two and signed into law, rate matter because all the other pre- story in the Washington Post this let’s say, sometime around the middle miums with regard to all the other morning, in fact, makes the case of of July. Twelve months from now this risks—be it wind, hail, dog bite, slip why we are here. Those rates are going whole program will be over. and fall, construction malfunction, up on the National Geographic building Our fervent hope is that by that whatever the risk is—is not subsidized and on the Washington Post itself. time, the costing of this product and by the Federal Government as we are There were several other enterprises. the other issues we talked about today doing with this bill where the Federal George Washington University, for in- will kick in and get the Federal Gov- Government is taking a part of the stance, is mentioned in the article. ernment out of this entirely and let the risk. That is done in the absence of this bill. private sector deal with this issue as It seems to me that it makes com- As I described apparently not very they have historically. But for the mon sense that since the Federal Gov- well a few minutes ago, costing this events on 9–11, we would not be here. ernment is getting into the business of kind of an event, 9–11, is very difficult. The fact that there was a $50 billion terrorism insurance in such a big-time So the insurance industry is out there event, which vastly exceeded what the way, that we ought to separate out the and it is going to protect itself. We be- reinsurance industry could calculate premiums in a separate account, purely lieve with this bill being a backstop for would be the cost, has understandably from an accounting function, so there a couple of years we could help put the

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5497 brakes on exactly the kind of story the true in commercial enterprises as it is most cases, you have a consolidation. Senator is reading from the Wash- in residential. You do not have one insurance com- ington Post. With the absence of insurance, the pany covering one building. If my colleague is worried about pre- banks do not lend the money. The Let me finish. You asked a question mium rate increases, it seems to me projects do not go forward and there is and I will respond. that while our bill is not perfect, there higher unemployment and a slowdown is a greater likelihood we are going to of the economy. Under the bill, you cannot have all of be able to protect consumers more If my colleague is looking for perfec- a sudden some fictitious insurance against rate increases having passed tion, I cannot give it to him. All I can company getting set up. It is only the this bill, making the case that now tell him is we are trying our best to companies in existence as of September there is a backstop so that the kind of frame something for 24 months that 11. The rate structures have to be what exposure that they would be subjected will reduce the spike in premium costs they were at the time. You cannot to in the absence of this bill would be and have as a backstop the Federal have someone taking advantage of this less. Government, but let the private sector bill to create the phony entities allow- If we do not pass this bill, if it is try to solve these crises or problems in ing them to take advantage of the situ- voted against, or a Federal regulator is the interim, with us getting out of the ation. created and there is a lot of other un- business as soon as we can. In the State of Florida, talking about necessary bureaucracy, then we run Mr. NELSON of Florida. Would the something such as Disney World, start the risk of not only what happened in distinguished Senator from Con- talking about the stadiums in Miami, Washington happening elsewhere—in necticut yield for a further question? for instance, there is not one insurer fact, it is happening. We already know Mr. DODD. I am happy to yield. that covers those events. There is usu- that terrorism insurance is not avail- Mr. NELSON of Florida. The Senator ally a collection that do. The idea of able in a lot of places, and where it is, has made much of the fact that this maintaining solvency which laws reit is very costly. We want to do what would suddenly be the Federal Govern- quire in each State—you could have a we can to stop the tremendous increase ment getting into ratemaking. Of smaller company, obviously as part of in that cost. That is what brings us course, the Senator would concede, that. If you get levels where their per- here. That is why, as well—I made the would he not, that this is the first time centage of the overall amounts are ex- point earlier and I make it again—we the Federal Government would be get- ceeded and the solvency of the com- require on page 12 of our bill that there ting into big time insuring an insur- pany goes under, we have defeated the be a very clear disclosure of what pre- ance risk? purpose of the legislation. miums are being charged. We put that Mr. DODD. I disagree. Facts will There is that distinction between in- right in the bill, clear and conspicuous show after World War II we were the dustry-wide and company caps. That is to policyholders, what the premiums insurance company for acts of war. why we drew that distinction. are and what the distinction is between Acts of war occurred in World War II. premiums collected for that and pre- The Federal Government was the party Mr. NELSON of Florida. Maybe I can miums collected for other forms of in- that paid the claims. ask a question of the distinguished surance. Mr. NELSON of Florida. And acts of Senator to which he could give a yes or We do not go as far as my colleague war are exempt on every insurance pol- no. from Florida does by requiring segrega- icy that I know of as a covered risk. It First, I merely point out the fact tion of accounts, but we think that is exempt. with the Federal Government being so provision for 24 months is a good con- I say to the distinguished—— involved in assuming the terrorism sumer protection provision, and it will Mr. DODD. I get nervous when he risk, what will be charged for that risk give us the kind of information we need keeps calling me ‘‘distinguished.’’ is clearly a legitimate issue for the to have. Mr. NELSON of Florida. You not Secretary of the Treasury with the The three reports I have mentioned only are distinguished, you look distin- consultation of the States to determine are rather extensive involving the Na- guished. what you ought to charge for that risk. tional Association of Insurance Com- Mr. DODD. You have a looking point, Particularly given the fact that since missioners, the GAO, the Commerce as well. this is only a 1-year bill and maybe a 2- Department, the Treasury Department, Mr. NELSON of Florida. You sound year bill by the time you get to the end the Federal Trade Commission, all re- very distinguished, too, but I want you of that time, the 50 insurance commis- quiring information be gathered so we to answer my questions. sioners of the country would not have can get, within 6 months, some clear Mr. DODD. Yes. even had a chance to determine if a indication of how this is working. Mr. NELSON of Florida. The ques- rate was actuarially sound. Usually In conclusion, I say to my colleague tion is, since we have the Federal Gov- that is done only when the insurance from Florida, I will be the first to ernment involved big time under your companies file those rates, when, in admit I cannot tell him that the Sen- bill, 80, 90 percent of the risk is going fact, these rates are already in effect as ator from New Jersey; the Senator to be borne by the Federal Govern- indicated by this morning’s newspaper. from Maryland; the two Senators from ment—— Mr. DODD. Let me say to my col- New York, Mrs. CLINTON and Mr. SCHU- Mr. DODD. My colleague has not read league, we are doing here what is done MER; and I have written a perfect bill. the bill. We are talking about $10 bil- in 40 States. My colleague is right; in If the Senator is asking me to say that, lion as the deductible level. 10 States they do it differently. We I cannot say that because we are in un- Mr. NELSON of Florida. Would the tried to set up a system that made charted waters in many ways. So we Senator concede under that com- some sense. That is, you are right, the are trying to respond to a problem that plicated mathematical formula, often rates go into effect but we still retain exists. it is a fraction of a percentage of the the strong involvement of your State We know for a fact that there is a total annual premium of a company insurance commissioners to go for- major slowdown in our economy be- that they will actually pay in an indi- ward. cause major projects have either been vidual company in any one year? cancelled or stalled because they can- Mr. DODD. My colleague is getting I ask unanimous consent a letter be not get the financing necessary to go away from the amendment. That is not printed in the RECORD that I received forward. The reason they cannot get part of the amendment. Are we are from the National Association of Insur- the financing is because they cannot talking the amendment or the under- ance Commissioners on this amend- get the insurance. Every homeowner in lying bill? ment and their concerns about the America knows what I am talking Mr. NELSON of Florida. Underlying amendment of distinguished Senator about. If they cannot get insurance, bill. from Florida. then their banker is not going to lend Mr. DODD. It is a formula, a debate. There being no objection, the letter them the money for the mortgage. Senator GRAMM may offer an amend- was ordered to be printed in the That is a fact of life. That is just as ment on how you prefer to do it. On RECORD, as follows:

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5498 CONGRESSIONAL RECORD — SENATE June 13, 2002 NATIONAL ASSOCIATION OF out getting into the minutiae of it, 40 strong than others on this point. But INSURANCE COMMISSIONERS, States, as I understand it, allow in the the choice is either relying on the ex- Kansas City, MO, June 13, 2002. commercial property and casualty area isting structure to set rates or set up a Hon CHRIS DODD, for rates to go forward if a rate request new operation of the Department of the U.S. Senate, Washington, DC. is made. They then retain the right to Treasury, for maybe 12 months—and DEAR SENATOR DODD: I am writing to re- decide whether or not that rate is one we all know how long that could take— spond to your request regarding the amend- they will accept. In 10 States, as I un- even if you wanted to defer to the De- ment offered by Senator Nelson of Florida derstand it—and my colleague is a partment of the Treasury. We could regarding terrorism insurance rates. former insurance commissioner so he spend months with them putting to- While the National Association of Insur- may have more detail on this—and gether an apparatus to do so. ance Commissioners (NAIC) has not taken a Florida could be one—do not allow the Again, if the intention here is perfec- formal position on the Nelson proposal, I do rate increase to go forward without tion, I am not the guy. This is not the believe state regulators would have the following concerns: there being permission by the insur- right bill. If you are asking those of us To our knowledge, the Treasury Depart- ance commissioner ahead of time. That who sat down to try to work and fash- ment does not have the infrastructure need- is a general breakdown. Within some ion something that we think would be ed to monitor insurance rates as the amend- States they have ranges of rates, but the right step forward, then I think we ment proposes. Putting such a monitoring the point being, the State insurance have done it here. If we have not, we mechanism in place could be cost prohibitive commissioner is the one that ulti- are going to have to come back to this particularly when the underlying federal leg- mately, one way or the other, decides issue. islation is short-term in nature; rates. How each State does it may vary The provisions on refunds of premiums All I can say to my colleagues in would be very difficult to enforce. Given the a little bit here and there, but we do good faith is we think we have done the uncertainty of risk and the lack of pricing nothing in this bill to undermine the right job. It is not all inclusive. We experience, the revised rates could be attrib- ability of the State insurance commis- don’t deal with workers’ compensation utable to a host of other factors related to sioner to ultimately set the rates if in this bill. That is a huge issue. My past or prospective loss cost (the cost of re- they do it differently. We defer to the colleague from Nebraska, the other insurance, or poor return on investments in States on this issue historically, and Senator NELSON, has an amendment re- recent months), not the potential or histor- we did so again in this bill. quiring some studies on life and other ical acts of terrorism, but rather to past and Mr. NELSON of Florida. If I may re- issues we do not cover in this bill that, prospective loss costs; spond, the NAIC, National Association The separate accounting could cause re- frankly, are major gaps. But we just porting difficulties and added expense for in- of Insurance Commissioners, has for- did not believe we could take on all of surers, insurance regulators, and presumably mally adopted a new version of the that under these circumstances. We the Treasury Department. The marginal ben- property and casualty energy rate and tried to keep as focused as we could, efits and costs associated with collecting the policy form model law which essen- knowing that the cost was, on Sep- information could outweigh the benefits that tially encourages the optional use and tember 11, a minimum of $50 billion. could be derived from the information. For file system, which is a system where We know today that reserves could instance, Section (b) requires a separate ac- the companies file what they want only accommodate about 20 percent of count for the ‘‘premium increases’’ and it without the insurance commissioner cannot be used for anything but to pay for that event. That is a fact. And we know terrorism losses. having to approve that rate ahead of there are projects and jobs being lost There is no discussion about what happens time. every day in the absence of some kind to the funds after the law sunsets. That is what I am trying to get of a backup, which is what we tried to At this time, state regulators already have across to the distinguished Senator craft. the ability to address this issue, making ad- from Connecticut. That, in fact, there I hope my colleagues will understand ditional federal oversight unnecessary. is not this closely held tight reign out we have put together what we think is I hope this responds to your concerns. there in the 50 States by the insurance the best proposal. We urge them to be Sincerely, commissioners over what are the rates TERRI VAUGHAN, supportive of it. Commissioner of Insurance, Iowa, on commercial policies. When you use I have great respect for my colleague President, NAIC. that as an excuse to justify not having from Florida and his passionate con- some kind of mechanism by which we Mr. DODD. The key paragraphs deal cern. He rightly points out the sense of control the rate hikes on terrorism in- with the underlying issue; that is, the people’s anger, frustration, and anxiety surance under a bill that the Federal Treasury Department does not have over rate increases that go on all the Government is basically going to sup- the infrastructure needed to monitor time. It is terribly frustrating. port, the terrorism risk, it has the po- insurance rates as the amendment pro- Certainly for people in Washington, tential of taking the rates to the Moon. poses. Putting such a monitor mecha- DC, already we know the costs are Mr. DODD. I defer in some ways be- nism in place could be cost prohibitive, going up. I wish I could wave a magic cause my distinguished friend and col- particularly when the underlying Fed- wand and make it go away. I think the league from Florida served as an insur- eral legislation is short term in nature. best we can do, as I said, is to pass this ance commissioner for the State of These are the State commissioners. bill, and then the justification for Florida. We asked the National Asso- They say: those cost increases, at least of the ciation of Insurance Commissioners to magnitude we may be seeing, is cer- The separate accounting could cause re- respond to the proposal. All I can tell porting difficulties and added expenses for tainly going to be minimized by pro- insurers, insurance regulators and presum- you is that in this letter from the viding some backup to this issue. ably the Treasury Department. The marginal NAIC, the last line of their letter to me For those reasons, I urge the rejec- benefits and costs associated with collecting says: tion of this amendment at the time the the information could outweigh the benefits At this time— vote occurs. that could be derived from the information. Again, they are working on the issue. I see my colleagues from Nebraska Lastly they say: My colleague has conceded that point— and New Jersey. I do not know if they At this time, state regulators already have the State regulators already have the ability have any comments they want to make the ability to address this issue, making ad- to address this issue, making additional Fed- on this bill. If not, I can note the ab- ditional Federal oversight unnecessary. eral oversight unnecessary. sence of a quorum. But if they want to Mr. President, does my colleague I don’t know what else you do. I do be heard, I will be happy to yield the have additional questions? not always agree with them on every floor. Mr. NELSON of Florida. Yes, I do. Is point. But it seems to me if the State The PRESIDING OFFICER. The Sen- the Senator aware as a matter of prac- insurance commissioners are satisfied ator from Nebraska. tice insurance commissioners of the that they are in a strong enough posi- Mr. NELSON of Nebraska. I thank States basically do not set rates for tion to deal with this, whether or not my colleague from Connecticut for put- commercial policies? they do in each State, I don’t know ting together, with the assistance of a Mr. DODD. I understand how it works what else you do. I know my colleague lot of folks, a bill that I think can help in different States. My point is, with- knows there may be some who are less take off some of the pressure.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5499 Mr. DODD. I made a mistake. We do I yield my time to the distinguished Now I would like to make a couple of deal with workers’ compensation here. Senator from Nebraska. points before we vote on the amend- I am sorry. We do not deal with life. The PRESIDING OFFICER. The Sen- ment, and I will ask for the yeas and Mr. NELSON of Nebraska. I thank ator from Nebraska is recognized for an nays. my colleague for a very able job, put- additional 5 minutes. First of all, I want to correct some- ting together a bill with the assistance Mr. NELSON of Nebraska. Mr. Presi- thing the distinguished Senator from of a lot of individuals who have had a dent, what I am concerned about is if Nebraska said. lot of experience dealing with these we adopt the current amendment to In fact, terrorism insurance under issues. the underlying bill, while there is a this bill is mandatory. That is the S. 2600 is a bill that I think can help temptation to try to control rates, it is whole point of setting the system up bring some balance to the whole area absolutely antithetical to try to con- whereby the Federal Government is that we today recognize as being im- trol rates at a time when we are not coming in and backstopping insurance balanced because of the events of Sep- going to control the issuance of the companies. It is mandatory for all com- tember 11. The effects on our economy, coverage. We get the odd effect of not mercial property and casualty insur- our society, and our national psyche saying you must write it—and I hope ance. The insurance is there. The Fed- can never be overstated. They have ad- we never get to the point of saying you eral Government is picking up most of versely impacted the Nation’s sense of must write this insurance, this line of the tab. If the loss occurs, who is pay- security and stability, and our lives coverage, that we never get to the ing? The consumer is paying through the premiums that have already been have been permanently changed in so point where that has to be required— hiked as chronicled daily over the last many different ways that we could not but at the same time, if we say the 6 months, including this one in today’s have anticipated. rates are controlled, this market I do paper talking about a 300-percent in- One cannot overstate the effects not think will continue to respond or upon the families who lost their loved crease in the last 6 months. That, in have the opportunity to respond as if fact, is what has happened. ones or those affected in other ways by we passed the underlying bill without the actions of the small number of ter- What should we do about it? We have this amendment. to make insurance available. That is rorists, terrorists sworn to the destruc- I respect a great deal my colleague tion of the American way of life and for part of the reason for the underlying from Florida, my namesake, who has bill. But we also have to make it af- all that we stand. had similar experience to mine. But my There is not any way to return to the fordable. experience has been different. That is, days before September 11, nor can we When rates get hiked 300 percent, you if we try to control the rates, if we try return the stability of our lives simply are getting to the precipice of whether to create a quasi-Federal rate control on the basis of economic decisions we it is affordable. structure for a very short period of make today. But I think we can begin Don’t just think it is the big real es- time, or for a long period of time, we the process of slowing down the im- tate conglomerates that are having pact, the adverse impact on our econ- will not enhance the availability of in- trouble getting this insurance. This af- omy. surance, we will get just the opposite fects small businesses as well. What- Congress can now act to help stimu- result. ever the size of the business, these rate late the weak economy and further Therefore, I hope as we look at this hikes are going to be passed on to the avoid the negative consequences with amendment today—and it pains me to consumers as a cost of doing business. this Federal backup, this ‘‘backstop’’ take issue with my friend from Florida, The huge rate hikes are going directly for catastrophic losses resulting from but I must in fact say this—it will not to the consumers. I reiterate that consumers and tax- acts of terrorism in the future. By en- enhance the availability of insurance, payers do not like to have their Sen- acting this legislation, I think we can in my opinion and from my experience, ators voting to increase their taxes. in fact see a turnaround in our com- but it will in fact deter the growth of Let me tell you what they do not like mercial real estate market, mortgage the market. It will help reduce the even more: They do not want their lenders, the construction industry, and availability of the coverage and not en- Senators approving legislation that other segments of our economy. hance it, as does the underlying bill as causes rate hikes to be etched into law. This is a jobs bill, pure and simple, to it is right now. I come forth humbly and respectfully make certain that our economy will in Whereas it may be amended by other amendments, and I intend to offer one with an amendment that says we are fact respond appropriately and posi- going to put a process in place—that tively rather than be adversely affected that in fact will enhance the availability of more terrorist coverage in we are going to put this process in by the continuing lack of availability place that says the Secretary of Treas- and a growing lack of availability of the commercial lines in those areas that are currently being so adversely ury is going to consult with the NAIC the property and casualty and workers’ and other Federal agencies as to what affected and impacted by the absence compensation coverages that are so im- ought to be the range of a rate hike or of this backstop, it is about jobs, it is portant to the future of our economy. rate decrease, whatever is warranted; about the economy, less so about insur- We must in fact respond to that. and, furthermore, where there has been ance. I have learned firsthand the necessity the huge increase already, but then the Mr. President, I yield the remainder of insurance in the commercial world. Secretary says the rate increase ought of my time to the distinguished Sen- As a former insurance regulator, as to be there or not there for the remain- ator from Connecticut. someone who has been involved in the der of that policy, that difference has Mr. DODD. Madam President, in the insurance business, or the field of in- to be rebated to the policyholder. surance regulation, virtually all of my interest of time, I yield my time and Naturally, this is stepping on some working life, with the exception of my leave the remaining time to the pro- toes because it not only puts a process public service as Governor and here in ponent of the amendment. of logic in the handling of rates, but it the Senate, this is not so much The PRESIDING OFFICER (Mrs. causes rebates to go back where the about—— CARNAHAN). The Senator from Florida. rates have been determined to be ex- Mr. NELSON of Florida. Madam The PRESIDING OFFICER. Under cessive. the previous order, the vote is to occur President, I would like to close on my Senators, hear me. This is a dan- at 3:15 on the amendment, with 10 min- amendment. gerous vote. Watch out what you are utes equally divided prior to that vote. This has been a good debate. Again, voting on as you vote on the Nelson We are at that point now. although I have serious reservations amendment. Mr. DODD. Mr. President, I will yield about this legislation, I did not prevent I ask for the yeas and nays. my 5 minutes to the distinguished Sen- it from coming to the floor, which I The PRESIDING OFFICER. Is there a ator from Nebraska in opposition to could have done last night. sufficient second? the Nelson amendment. I have already I appreciate the distinguished Sen- There is a sufficient second. spoken about it. Then Senator NELSON ator from Connecticut engaging in the Mr. REID. Madam President, I move will have 5 minutes in support of his colloquy, the series of questions and to table and I ask for the yeas and amendment. answers. I hope it is better understood. nays.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5500 CONGRESSIONAL RECORD — SENATE June 13, 2002 The PRESIDING OFFICER. Is there a HATCH’s may be withdrawn. I know than $100 billion, the Federal Govern- sufficient second? there is an amendment by Senator ment would pick up 90 percent and the There is a sufficient second. LEAHY. There will be a colloquy be- industry would cover 10 percent. And if The question is on agreeing to the tween Senator COLLINS and Senator there were more than $100 billion in motion, and the clerk will call the roll. BEN NELSON. My colleague from Or- losses, the Secretary of the Treasury The legislative clerk called the roll. egon, Senator WYDEN, has an interest would notify the Congress, and we Mr. REID. I announce that the Sen- in an amendment as well. Senator NEL- would then determine how losses over ator from California (Mrs. BOXER), the SON of Florida also has an amendment that huge amount would be covered. Senator from Hawaii (Mr. INOUYE), and we may try to take up. All property and casualty insurance, the Senator from Vermont (Mr. JEF- Those are the parameters at this except crop and mortgage insurance, FORDS) are necessarily absent. point. There may be other amend- would be covered. The bill would also I further announce that, if present ments. If there are, let’s get some sense cover not just insurance companies, and voting, the Senator from Cali- of it so the leader can set a schedule. but also those which self-insure, which fornia (Mrs. BOXER) would vote ‘‘no.’’ The PRESIDING OFFICER. The ma- includes many businesses in New York Mr. NICKLES. I announce that the jority leader is recognized. and across the country. Senator from North Carolina (Mr. Mr. DASCHLE. Madam President, if I have heard so many concerns ex- HELMS), the Senator from Idaho (Mr. it is possible to go to third reading to- pressed by businesses in New York. I CRAPO), and the Senator from Virginia night or tomorrow morning, I would have heard it from the real estate in- (Mr. ALLEN) are necessarily absent. like to entertain that. The sooner we dustry, from the Association for a Bet- The PRESIDING OFFICER. Are there can do that, the better. Colleagues are ter New York, which is the equivalent any other Senators in the Chamber de- interested in taking up the Defense au- in many ways of the Chamber of Com- siring to vote? thorization bill. That is something we merce in New York City, from New The result was announced—yeas 70, hope we can take up very quickly. York City Partnership, which also acts nays 24, as follows: There are other issues out there that to bring businesses, large and small, [Rollcall Vote No. 153 Leg.] have to be addressed. So if it is possible from all different sectors of the econ- YEAS—70 to go to third reading tonight, I would omy together to speak with one voice. Allard Edwards Murray like to be able to do that very much. If But throughout New York City and Bayh Ensign Nelson (NE) there are additional amendments, this throughout New York State, through- Bennett Enzi Nickles is the time to offer them, or we will out certainly the larger New York Bond Feinstein Reed move to third reading shortly. area, which includes New Jersey and Breaux Fitzgerald Reid I urge my colleagues to come to the Connecticut, the problems associated Brownback Frist Roberts Bunning Gramm Santorum floor and dispose of their amendments with obtaining terrorism insurance Burns Grassley Sarbanes so we can bring this bill to closure and have become a matter of great imme- Byrd Gregg Schumer move on to other matters of great pri- Campbell Hagel diacy and urgency. Sessions Cantwell Harkin ority before we leave for the Fourth of In fact, the department of insurance Carnahan Hatch Shelby July recess. superintendent, Gregory Serio, has re- Carper Hutchinson Smith (NH) Smith (OR) I yield the floor. cently met with me to confirm that it Chafee Hutchison Mrs. CLINTON. Madam President, I Cochran Inhofe Snowe is not just individual companies that Collins Kerry Specter am here to express very strong support are running into problems, it is a sys- Conrad Kyl Stevens for S. 2600, the Terrorism Risk Insur- temwide challenge to the fundamental Corzine Lieberman Thomas ance Act of 2002. I know we have had concept of being able to provide insur- Craig Lott Thompson Daschle Lugar Thurmond debate and a couple of votes, but I ance for our businesses. DeWine McCain Voinovich want to underscore how important this Mr. HATCH. Will the Senator yield Dodd McConnell Warner legislation is to the State of New York for a unanimous consent request? Domenici Miller Wyden and to the ongoing economic chal- Mrs. CLINTON. Certainly. Dorgan Murkowski lenges we confront because of Sep- AMENDMENT NO. 3839 WITHDRAWN NAYS—24 tember 11. Mr. HATCH. Mr. President, I with- Akaka Feingold Levin This legislation provides a temporary draw my amendment. Baucus Graham Lincoln Government-industry program for Biden Hollings Mikulski The PRESIDING OFFICER. The Bingaman Johnson Nelson (FL) sharing property and casualty insur- amendment is withdrawn. Cleland Kennedy Rockefeller ance losses; in short, what is called a The Senator from New York. Clinton Kohl Stabenow Government backstop. The loss sharing Mrs. CLINTON. I want to give one ex- Dayton Landrieu Torricelli Durbin Leahy Wellstone program would run for just 1 year, al- ample. I could literally give so many though it could be extended for an ad- examples in this Chamber because they NOT VOTING—6 ditional year. have flooded into my office and come Allen Crapo Inouye We are only talking about a tem- to my attention and to my counsel’s Boxer Helms Jeffords porary fix until the marketplace gets attention for weeks now. Francis The motion was agreed to. back on its feet and we get a reinsur- Greenberger of Time Equities, Inc., a Mr. DODD. Madam President, I move ance industry that is willing to back- real estate investment firm, has con- to reconsider the vote. stop the insured and their losses. I firmed to me that the insurer they had Mr. REID. I move to lay that motion hope all of my colleagues understand before September 11 required their on the table. how significant this legislation is to so company to buy terrorism insurance The motion to lay on the table was many industries and particularly in for four properties: three in New York agreed to. the State of New York. and one in Madison, WI, an apartment Mr. DODD. Madam President, I know Under the legislation, if there were a building. my colleague from Nevada wants to be terrorist attack that results in more They were required to insure the heard for a few minutes as in morning than $5 million in insured losses, insur- property in Madison, WI, against ter- business. I will make an appeal here, as ance companies would collectively rorism, despite the fact that it is clear- I see the leader on the floor. I only cover total losses of up to $10 billion. ly not near New York City. It is not an know of a couple more amendments at Companies would contribute to that $10 area where there have been a lot of this point. Maybe there are more. If billion amount based upon their indi- threats, but, nevertheless, in order to there are, I would like to know about vidual market shares. get the terrorism insurance where it them so I can have some idea and let If the losses exceeded $10 billion, but was needed in New York, the four prop- the leader know, or give the leader an were less than $20 billion, then the Fed- erties were lumped together. idea as to how we are going to be pro- eral Government would pay 80 percent The cost of the insurance premiums ceeding. of the losses and the insurance indus- for these properties rose from $191,500 I know Senator GRAMM may have an try would cover 20 percent. If the losses pre-September 11 to $664,300, an in- amendment. I gather that Senator were more than $20 billion but less crease of 347 percent. Even with these

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5501 exorbitant premiums, the amount of types of insurance are specifically de- Mr. DASCHLE. He is absolutely terrorism insurance coverage that the fined, but workers’ comp is not. I un- right. I have indicated to the distin- company received for these much high- derstand, though, that Senator DODD guished Republican leader it was not er premiums was actually 50 percent will address this issue and will make it my intention to file cloture today, less than the amount of coverage it had explicitly clear that workers’ com- even though obviously that is the pre- previously received. pensation coverage is also covered by rogative of the majority leader. We In addition, the new policy excluded this legislation. I wish to thank Sen- have no designs to do that. But we also bioterrorism and nuclear attacks and ator DODD and his staff for recognizing recognize that we have a lot of work to had a deductibility of more than $1 this potential oversight and moving to do. It is not my intention to file clo- million. By any standard, that is a ter- remedy it. ture today. I hope colleagues who have rible burden to try to absorb, espe- In conclusion, I am delighted that amendments will offer them and we cially during an economic downturn in this bill is finally being debated. Many can have votes on them. If there are no the wake of the terrorist attack on of us have been urging that it arrive as amendments, we will move to third New York. soon as it could. We are now right in reading sometime very soon. That is not by any means a unique the crunch period because reinsurance If there are objections to moving to story. I have heard many like it from in most instances disappears in just a third reading, our colleagues are going not only real estate holders but con- few weeks on July 1. Workers’ com- to have to come over and physically struction contractors, stadium owners, pensation is not even being written object. We cannot waste what is valu- sports teams, amusement park owners, right now in New York in many in- able time on the Senate floor waiting banks, and not just in New York but stances, so we must move. for Senators to offer amendments if people who do business, literally, all I have said from this floor many there are none. So we will make our over the country. times in the last months that when best effort to determine the degree to The lack of insurance has affected New York was attacked, it was an at- which there are Senators who still wish the ability of many developers to close tack on America. The economy of New to offer amendments. Time is running real estate deals, to complete old ones York is absolutely crucial to the full out. We will move to third reading and to start new ones. So at least in recovery of America, and there is no shortly if no amendments are offered. our part of the world new offices, resi- more important legislation than the I yield the floor and suggest the ab- dential buildings, new hotels, and new one we are considering now to ensure sence of a quorum. entertainment centers are either on that economic activity resume at the The PRESIDING OFFICER. The hold or being forced to expend much highest possible level and that we not clerk will call the roll. The assistant legislative clerk pro- more money than any reasonable as- only put New Yorkers back to work but ceeded to call the roll. sessment of the risk should call for. that, because of the dynamism of the In addition, we know the reinsurance Mr. BYRD. Mr. President, I ask unan- New York economy, we send out that imous consent that the quorum call be market ends on July 1, so there is ur- energy that will get our national econ- gency for us to act. I appreciate my rescinded. omy moving in the right direction as The PRESIDING OFFICER. Without colleagues on both sides of the aisle well. objection, it is so ordered. who are working to get this legislation So I thank the sponsors. I look for- passed. It is not only the private sec- ward to the vote on this, and I appre- f tor; it has also been a real challenge ciate support for this important legis- GRANDPA DASCHLE for hospitals. Again, the New York in- lation. Mr. BYRD. Mr. President, with great surance superintendent has reported I yield the floor. pleasure, I call attention to a new that hospitals were the first New York The PRESIDING OFFICER. The Sen- Democrat’s having been brought forth business to experience significant dif- ator from Nevada. in this Congressional election year. ficulties in obtaining adequate and af- Mr. REID. Mr. President, while the With even greater pleasure, I point out fordable property coverage for their fa- majority leader is on the floor, I want that our distinguished majority leader cilities. to certainly recognize the fact that has become a grandfather for the first We also have problems with our this is an important piece of legisla- time. major philanthropic organizations. tion. We have been told that people This new Democrat, Henry Thomas They operate hospitals. They operate have wanted this for months, going Daschle, arrived with the angels last museums. We have an across-the-board back to last December. Here it is, Friday. Being a Democrat, I always problem in getting the kind of insur- Thursday afternoon and there is no one welcome a new member to our party. ance that is required, and, in many in- else on the Senate floor. Being a grandfather, I know the joy stances, what has been offered is far As the majority leader said and as I and pleasure that a grandchild brings. from adequate. Many, as I said, exclude have tried to say in representing what There is nothing so wonderful as cra- certain kinds of terrorism. They tight- the majority leader has said to me, dling in your arms a swaddled baby. It en up the definition of occurrence. really we have to move this legislation awakens in one so many emotions. It is Then they jack up the prices so that it along. There is so much left to do with- a one-of-a-kind experience. A newborn is not affordable anyway, even though out our being here doing nothing. fairy glows with freshness and the it is not very good coverage. In many I would say as the leader said this promise of the life to come. cases, the insured has no choice. morning, if there are no amendments, But a grandchild is beyond special, I do hope we are not only going to maybe we should move to third read- and the birth of one’s first grandchild pass this and pass it as soon as posing, if people do not have amendments is an experience nearly beyond verbal sible, but that we will recognize an- to offer. The majority leader has been description. other area of difficulty, and that is very generous saying people should The birth of one’s own child is tem- with respect to workers’ compensation have the opportunity to offer all the pered by a certain apprehension. With coverage. Under New York law, pri- amendments they want. There will cer- this fragile baby, there also comes the mary insurers providing workers’ com- tainly be no rush to filing a motion for responsibility of protecting and mold- pensation coverage cannot exclude ter- cloture. ing a tiny, dependant creature until rorism coverage. Therefore, many pri- But I just say to the majority leader, adult status arrives. Parenthood is mary insurers are dropping their in- I hope everyone heard what the major- truly a delicate balance of bounteous sureds and refusing to offer workers’ ity leader said earlier today, that we love and serious responsibility. compensation anymore at all. have to move ahead. Here it is Thurs- But to become a grandparent and to I understand it was the intention of day afternoon and nothing is moving. see oneself being projected on, on into Senator DODD that workers’ compensa- Mr. DASCHLE. Mr. President, if I the eons in the future, one has really tion insurance would be covered by this could respond to the distinguished as- reached his first plateau of immor- bill under the general rubric of com- sistant Democratic leader. tality. It is a higher plateau. It is a mercial lines of insurance. I have some The PRESIDING OFFICER. The ma- completely different kind of experi- concern, however, because a number of jority leader. ence. It is pure joy. As a grandparent,

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5502 CONGRESSIONAL RECORD — SENATE June 13, 2002 the diapers that one changes will be be- marks about Senator DASCHLE being a naturally, to get it right, you have to cause one volunteers to change them. grandfather. read it again. Your whole universe will Won’t have to do it. Somebody else can On the floor is my friend from go around that. do it. But one volunteers to do it. Vermont. We have spent so many I congratulate you. Those who have Shameless spoiling can be the order pleasant months, spending hours, I am been there know it truly is the best of the day without guilt. You can spoil sure, talking about our own children part of life. It goes beyond all the those grandchildren and then let the and how we look forward to being able things you have accomplished, which parents take them home. Elder wisdom to visit with our grandchildren. Sen- are so great. And it was your children can be meted out with the sure, certain ator DASCHLE will be a great grand- who did the accomplishment for you. It knowledge that admonishments will father. It takes those who are grand- is the best of all possible worlds. follow to ‘‘listen to Grandpa. He is parents to really tell Senator DASCHLE, I yield the floor. wise.’’ it will take a little while before he The PRESIDING OFFICER. The ma- The first grandchild, so delicate, and really appreciates what it means to be jority leader. yet so determined to join this turbu- a grandfather, to see those beautiful Mr. DASCHLE. Mr. President, I am lent but wonderful world, stirs the children. No matter how calculated humbled and extraordinarily grateful heart and vividly demonstrates man’s you try to be, you see those children as for the generous words of my col- enduring link to the eternal. A grand- you. leagues. Senator BYRD has honored me child is the sweetest, most profound I also congratulate my friend, Sen- once several years ago when he was gracious enough to nominate me for measure of time’s passage. In inno- ator DASCHLE, on the birth of Henry cence and promise, that tiny being Thomas Daschle. I have seen a picture the position of majority leader. Often- times his words are repeated in intro- links generation to generation and em- of him, and as Senator DASCHLE told bodies mankind’s persistent, stubborn me, as far as I am concerned, he looks ductions all over the country, and I hope for a brighter future in spite of just like him. have not forgotten that special mo- the difficult lessons of the past. As Carl Mr. LEAHY. Mr. President if I might ment. I will be forever grateful to him Sandburg said: ‘‘A baby is God’s opin- add, I saw the same picture. Actually, for those words on that day. But I must say I am equally honored ion that life should go on.’’ Henry Thomas Daschle is better look- this afternoon that Senator BYRD A grandchild is living, breathing ing than our distinguished majority would come to the floor and honor my proof that significant components of leader. the fortunate grandparents’ DNA will We have so often rancorous debate, grandchild as he has. This is a very joyous occasion for my family. I must still be in evidence hundreds of years we are always so busy, it seems our say, I believe that the words just spo- hence. Grandpa’s dimples or Grandma’s dear friend, the senior Senator from ken will probably be read and spoken curly hair will most certainly be re- West Virginia, knows best when to and reiterated and kept and treasured marked upon by future family mem- come to the floor and bring us back to longer than the words spoken about my bers as they compare their own the human side of the Senate. He, nomination as majority leader. They likenesses with treasured old photos in knowing the Senate better than all of will probably terminate when I pass, the family album. us, brings us back to the human side but the words spoken to my grandchild Grand babies and great grand babies with poetry. My late mother used to will go on for generations. So his will- are part of the long continuum of man- read the CONGRESSIONAL RECORD every kind’s collective experience on this ingness to come to the floor and speak day looking for poems by ROBERT as he has means so much to me. lovely sun-washed planet. They are the CARLYLE BYRD. reason we occupants of planet earth I would also say, as much as I have And today to have those who are learned from him as a Senator, that strive to make life better and commit grandparents, as Senator REID, the dis- our resources to alleviate suffering and may pale in comparison to what I tinguished senior Senator from Nevada think I may learn from him as a grand- disease. The entire rationale for every said, to pass on this wisdom to our ma- effort to improve our world, and the father. So I thank him for his kindness jority leader. He is going to get this and for his willingness to make this millions and tens of millions of good wisdom from us about being grand- works toward that end performed by moment in our lives even richer. parents whether he wants it or not, but I do not have two dearer colleagues homo sapiens across the whole panoply we will pass it on. It is the most won- in the Senate than I do in Senator REID of history, can be understood in an in- derful time of your life. This will be and Senator LEAHY. They are like fam- stant when one hears the tenuous first the first of two this year, and that ily to us—to my wife and my children. cry of a newborn child. It is a wonder makes it even better. For them to join Senator BYRD on this beyond wonders; an affirmation of I might say to my dear friend, the glorious day means so much to me. I God’s love; and a tangible demonstra- majority leader, this is a very fortu- am grateful to them for their generous tion that hope is not a futile emotion. nate grandchild to have him as the words and for their willingness to join And so today, I would like to dedicate grandfather, just as the parents are in this colloquy. these few beautiful lines by William very fortunate to have Tom and Linda I had a special day today that I Wordsworth to Henry Thomas Daschle Daschle to love and help this child. shared with Senator BYRD. Just this and to Grandpa DASCHLE: The Leader will find there will come morning my daughter called very Our birth is but a sleep and a forgetting: a time as the child gets a little bit excitedly to say our second grandchild The soul that rises with us, our life’s star, older and is able to come to you with will be a daughter. She will be born Hath had elsewhere its setting, unreserved love, wanting to be with sometime in late October or early No- And cometh from afar; grandfather, as busy and as peripatetic Not in entire forgetfulness, vember. So we will have one grandson And not in utter nakedness, a life as have the busiest people, with and one granddaughter this year. I can- But trailing clouds of glory do we come the greatest responsibilities of anyone not be more blessed. I cannot feel more From God, who is our home: in this country, all of that will come to hopeful and happy than I do today— Heaven lies about us in our infancy! a screeching halt when that child—my first, to have the recognition for our I extend my heartiest congratula- dear friend from West Virginia and grandchild and, second, to know that tions to Senator DASCHLE on his first dear friend from Nevada know—climbs this joyous occasion will be extended grandchild, and I wish the best to his on to your lap and says, grandpa, can by yet another grandchild, who will be son, Nathan and wife Jill, who also had you read me this book or read me this a granddaughter, later this year. an important role in last Friday’s story. It has probably been read a One of my friends once said that our grand happening. dozen times before. I don’t care wheth- children and grandchildren are mes- The PRESIDING OFFICER (Mr. er your hotline is ringing, I don’t care sages to a future we will not see. I REED). The Senator from Nevada. whether 99 Senators are calling, I don’t thought a lot about what that means, Mr. REID. Mr. President, I say to my care whether the President of the the kind of message we are sending. I friend from West Virginia, the distin- United States is calling, I don’t care can only imagine the message the Byrd guished senior Senator, how much I who it is, you will find, of course, that grandchildren and the Reid grand- personally appreciate these kind re- book that you read 10 times already children and the Leahy grandchildren

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5503 will be sending to that generation, that guider, and JON CORZINE, my colleague, there was ever a place that role should future we will not see. They will send a as well. be needed, and make sense, it is here. message of love, a message of stability, The four of us have been laboring on They have opposed that. and hope, a message that they have this proposal for a very long time. I So we came up with a compromise. taken from their grandfathers and hope we can actually pass legislation The Senator from Connecticut, actu- grandmothers with such abundance. tonight. ally, the Senator from Texas, Mr. It is a message about this country This is extremely important legisla- GRAMM, and myself had a compromise that is embraced in these three Sen- tion. But it is deceptive. We are not that was put on the floor in late De- ators and passed on to their children getting many calls. When you walk cember. We tried to have a balance be- and grandchildren, a message that I into your local townhall meeting—or if tween those of us who believed the think makes this such a special coun- I go into one of my favorite places, Government should be fully involved try. It is a country that for so many McGillicuddy’s Pub, on Quentin Road, and those of us who felt—on the other reasons gives hope and new faith to fu- they don’t say: Hey, CHARLIE, what’s side, mainly—the Government should ture generations through our children doing on terrorism insurance? It is not not be involved at all. We came up with and our grandchildren. an issue on the lips of the average cit- a proposal. I hope we can send a strong message izen. But it affects the average citizen, Unfortunately, it did not come for- to those future generations through and greatly. ward, not because of objections to the our grandchildren—by reading them The reason is very simple: Without proposal but, rather, it ran up against books, by loving them, by giving them terrorism insurance, large numbers of the age-old whirlpool, if you will, of the attention they deserve, by chang- construction projects will not go for- tort reform. ing their diapers—when we want to, ward. Banks will not lend unless they It ran up on the shoals of tort reform, and by recognizing what a glorious can have terrorism insurance. And in- as many other proposals have in this miracle life is, in the eyes and faces of surance companies, while they are of- body in recent years, and nothing got those tiny grandbabies who grow up to fering terrorism insurance in many done. I was delighted to see the McCon- be the leaders of a wonderful nation. cases, are offering that insurance at nell amendment defeated for the main I, again, thank my colleagues for such a high rate that many projects reason that had it passed, we would not their generous words and for making are simply not going forward. have had a bill. It seems we have this such a special moment for me as a What does this mean for the national stepped past probably the greatest im- Senator. economy? It is a slowly bleeding cut on pediment to the proposal, and now we I yield the floor. the arm of our economy. But every have other issues. I want to talk about The PRESIDING OFFICER. The Sen- day, when a new project is not refi- one of those. ator from West Virginia. nanced, when a new proposal to build Before I do, I want to make a few Mr. BYRD. May I be so bold as to something large and grand does not go points. First, I want to talk about my close this pleasant interlude with these forward, is a day our economy is hurt. city of New York and give people some words to Henry Thomas Daschle: The reason is very simple. Since 9–11, examples. Examples could occur in their cities as well. I have talked to my First in thy grandfather’s arms, a new-born we fear terrorist attacks, and we fear child, them on large concentrations of eco- friend from Illinois, Senator DURBIN. Thou didst weep while those around thee nomic power, of economic wealth. They The same thing is happening in Chi- smiled; could be in cities—my city, of course, cago. I have talked to real estate lead- So live that in thy lasting sleep, has many of these—but they could also ers in Dallas and Houston and San Thou mayest smile, while those around thee be not in cities, Disney World or Francisco and Los Angeles. In all of weep. Disneyland in Florida and California. our large cities, the same thing is oc- Mr. President, I suggest the absence The Hoover Dam, every stadium, no curring. of a quorum. matter where it is in the country, is Let me cite some examples: 4 Times The PRESIDING OFFICER. Without suffering effects. We have heard from Square, one of our newest, most beau- objection, it is so ordered. the owners of baseball and football tiful buildings known as the Conde Mr. SCHUMER. Mr. President, I ask about how their costs are dramatically Nast building, is in litigation with its unanimous consent the order for the rising. And it will continue to occur. In lender due to the absence of terrorism quorum call be rescinded. fact, it will spread. The dramatic in- insurance coverage. The lender, La The PRESIDING OFFICER. Without creases in costs, the failure to do new Salle Bank and CIGNA, had threatened objection, it is so ordered. projects will continue unless we do to invade the lockbox into which rents f something. are deposited in order to buy $430 mil- I know there are some who believe: lion in terrorism insurance, the TERRORISM RISK INSURANCE ACT Well, the Government should not be in- amount of the mortgage. The insurer OF 2002—Continued volved. I strongly disagree. for the portfolio held by the owners of Mr. SCHUMER. Mr. President, I ask The Government has always been in- 4 Times Square has refused to write to address the House—I mean the Sen- volved in cases of war. We have always coverage for this building claiming it ate. I am still used to the House, I am been under the rule that in cases of war is high profile. Even if the $430 million sorry. I had 18 years there. I ask to ad- the Federal Government will step in. of coverage was available, it wouldn’t dress the Senate on this issue. Well, since 9–11, the rules of war have cover any of the environmental risks, The PRESIDING OFFICER. The Sen- been redefined. Terrorism is war. So if nor would the owner’s equity of $450 ator has that right. I had my druthers, I would have a one- million on this $880 million be covered. The Senator from New York is recog- page bill, something similar to what I In downtown New York, a 1 million- nized. worked out with Secretary O’Neill, square-foot office building could not Mr. SCHUMER. Thank you, Mr. that would say: Should, God forbid, the obtain refinancing for the underlying President. next terrorist incident occur, the Fed- mortgage of approximately $200 million Mr. President, I spoke briefly a bit eral Government will step in. because terrorism insurance was un- earlier on this legislation, but now That is what we would do in the case available. Finally, a lender agreed to that we are getting pretty close to try of war. If, during World War II, the go forward if the owner committed to to tie the final knot and get the bill Germans or the Japanese had hurt the pay $1 per square foot for stand-alone done, I do want to address it once American homeland, that is what terrorism insurance coverage. At the again. would have happened; the same thing same time that the owner faced that First, again, I thank my colleague with Korea, and the same thing when additional $1 million drain on cashflow, from Connecticut, Senator DODD, who we faced the cold war with Russia. I he had to absorb an increase in his reg- has worked so long and hard on this don’t know why it is any different now, ular insurance from $110,000 to $550,000. legislation. I also thank the chairman but some have had objections. They That additional cost did not cover of the Banking Committee, Senator don’t want to see the Federal Govern- mold or biological or nuclear or chem- SARBANES, who has been a good, careful ment’s role expand, even though if ical events whether terrorist-generated

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5504 CONGRESSIONAL RECORD — SENATE June 13, 2002 or otherwise. The owner now has a other more productive uses, negatively af- it is impossible for insurance to [determine $1,440,000 additional expense. fecting investment and jobs. the risk for terrorism insurance] The prob- A major REIT with properties in cen- ‘‘Low coverage limits in terrorism insur- lem is really the types of real estate activity tral business districts from New York ance policies mean that businesses are bear- being held up, whether delays in construc- ing a huge amount of risk themselves. In the to California can get only $250 million tion and building and that sort of thing are event of another attack similar to that of having a significant impact on the econ- of insurance for the entire portfolio. September 11th, insurance payments will not omy.’’ (Source: Federal Reserve Chairman And if there is one more terrorist inci- be available to the same degree to rebuild.’’ Alan Greenspan, to the House Financial dent—God forbid—it is likely that even (Source: Joint Economic Committee, United Services Committee 2/27/2002) this limited terrorism coverage will be States Congress, ‘‘Economic Perspectives on ‘‘There is a real and immediate need for lost given its not uncommon 30-day Terrorism Insurance’’ 5/23/02) Congress to act on terrorism insurance legis- cancellation clause. Top Officials Warn of Continued Terrorist lation. The terrorist attacks on September Risk: 11 have caused many insurance companies to A major residential and mixed use ‘‘I think we will see that in the future, I owner-builder renewed their all-risk in- limit or drop terrorist risk coverage from think it’s inevitable.’’ (Source: Quote from their property and casualty coverage a move surance a few months earlier than the FBI Director Robert Mueller when asked of expiration date for that carrier and that leaves the majority of American busi- the possibility the U.S. could expect walk-in nesses extremely vulnerable. This dynamic was about to lose its treaty agreement suicide bombers, Wall Street Journal Online in turn threatens American jobs and will for reinsurance and could only write $5 5/20/02) wreak havoc on the entire economy in the ‘‘Terrorism is an evil, pernicious thing, million. The list can go on and on and case of future attacks.’’ (Source: Treasury and it is one of the biggest challenges we’ve on of buildings that couldn’t get ter- Secretary Paul O’Neill in a statement issued ever faced as a nation.’’ (Source: Vice Presi- on 4/8/2002) rorism insurance, that had to pay so dent Dick Cheney as quoted in the Wall much that it virtually made them non- Street Journal Online 5/20/02) ‘‘The disruption of terrorism coverage economic, of new projects not started. ‘‘Senate Majority Whip Harry Reid (D– makes it more difficult to operate, acquire To simply and blithely say the mar- Nev.) said June 4 on the Senate floor that ac- or refinance property, leading to diminished ket will come in and cover this is not tion on the legislation is needed to maintain bank lending for new construction projects true. Just last Friday, another drain on stability of the country’s economic infra- and lower asset values for existing projects.’’ structure. ‘One issue we must seek to work (Source: letter to Congress from Treasury the body economy of my city, but this Secretary Paul O’Neill, National Economic is happening in other cities as well, on quickly, expeditiously, is getting a bill out of this body to address the growing prob- Council Director Lawrence Lindsey, Office of Moody’s put 12 buildings in New York lem of a lack of insurance coverage due to Management and Budget Director Mitch City on watch for possible downgrading the threat of terrorist attacks,’ Reid said. Daniels, and Council of Economic Advisors of their bonds, the whole cost of financ- Pointing to a similar move by Moody’s In- Director Glenn Hubbard on 6/10/02) ing, because of terrorism insurance. vestors Service May 31, Reid urged a com- ‘‘A fundamental necessity for a strong These include some of the premier promise on the legislation and called on the economy is confidence. The lack of con- properties in New York, including the White House to assist in moving the legisla- fidence lingers in some parts of our economy, Exxon building, the Bankers Trust tion. ‘Significant building projects, if not al- because of a lack of terrorism insurance. [Congressional failure to pass terrorism in- building, Celanese building, the Conde ready on hold, could be placed on hold until the terrorism insurance issue is resolved,’ surance legislation is hurting the economy.] Nast building, Rockefeller Center, the Reid said.’’ (Source: Banking Daily 6/6/02) People are delaying, postponing, canceling Marriot Marquis Hotel—the list goes ‘‘In just facing the facts, we have to recog- major construction projects because they on. nize that terrorist networks have relation- can’t get terrorism insurance.’’ (Source: So anyone who thinks this is not a ships with terrorist states that have weapons Treasury Secretary Paul O’Neill, as quoted problem, anyone who thinks the mar- of mass destruction, and that they inevi- by Bloomberg News 2/21/2002) ket is solving this problem on its own tably are going to get their hands on them, Construction Industry Hemorrhaging Jobs, is simply not understanding what is oc- and they would not hesitate one minute is AFL–CIO Calls For Action: curring. using them,’’ Rumsfeld said. ‘‘That’s the ‘‘Employment in construction fell by I am not the only one who thinks world we live in.’’ (Source: Defense Secretary 79,000, after seasonal adjustment. Much of Donald Rumsfeld as quoted in the Wash- this. I ask unanimous consent to print April’s job loss was in special trades ington Post 5/22/02) (¥61,000), though general building contrac- quotes from others in the RECORD. ‘‘The FBI also heightened anxiety levels in There being no objection, the mate- tors and heavy construction lost 12,000 and New York by advising officials that land- 6,000 jobs, respectively. Following the turn of rial was ordered to be printed in the marks there could be terrorist targets. Offi- the business cycle in March 2001, construc- RECORD, as follows: cials said the advisory was based on the tion employment was relatively flat through ECONOMIC DISLOCATION RESULTING FROM THE same kind of uncorroborated information the end of the year. So far in 2002, however, TERRORISM INSURANCE MARKET TURMOIL that has led to other notices to law enforce- the industry has lost 155,000 jobs.’’ (Source: President Bush Calls For Action: ment in recent weeks about threats to Bureau of Labor Statistics News Release, ‘‘If people can’t get terrorism insurance on banks, nuclear power plants, water systems, May 2002) a construction project, they’re not going to shopping malls, supermarkets and apartment buildings.’’ (Source: The Washington Post 5/ ‘‘President Bush, like all of us here today, build a project, and if they’re not going to realizes that as long as terrorism is a threat, build a project, then someone’s not working. 22/02) ‘‘We believe the Congress should enact a new job-creating projects are being delayed We in Washington must deal with it and deal or canceled because we do not have adequate with it in a hurry.’’ (Source: President Bush federal terrorism risk insurance backstop in a timely fashion for four primary reasons. insurance coverage or workers compensation during a White House gathering on terrorism coverage available. The unions of the build- insurance 4/8/2002) First, lack of coverage and high premium rates imply a drag upon our economy and a ing trades and our members join with him in New Congressional Study Finds Lack of urging the Senate to pass terrorism risk in- Terrorism Insurance Risky to Economy; burden to the nascent recovery, including the potential for a loss of even more jobs. surance legislation without delay. The un- among the study’s principal findings: availability of terrorism risk insurance is ‘‘The market for terrorism insurance re- Second, the cost of lost and postponed investment opportunity is potentially large for hurting the construction industry by making mains limited. the cost and risk of undertaking new build- ‘‘Only a small number of insurers are ac- future economic growth. Third. inaction ing projects prohibitive. Building projects tively providing stand-alone terrorism insur- paralyzes the private sector. Finally, the are being delayed or canceled for fear that ance policies. economic impact of another terror attack ‘‘When available, coverage for terrorism could be even greater than the September 11 they may be future terrorist targets. Lend- losses is expensive, terms of coverage are re- attacks.’’(Source: Lawrence B. Lindsay, As- ers are refusing to go forward with pre- strictive and policy limits are often insuffi- sistant to the President for Economic Policy viously planned projects where terrorism in- cient. in a letter to Steve Bartlett and Edward C. surance coverage is no longer available. As a ‘‘The problems associated with terrorism Sullivan—3/18/02) result, construction workers are losing job insurance pose a significant threat to sus- Federal Officials Sound the Alarm: opportunities. In addition, workers com- tained economic growth. ‘‘I think there is still great urgency to pass pensation premiums have increased because ‘‘The lack of terrorism insurance is stop- the [terrorism insurance] bill. I think there state laws do not allow companies to exclude ping some business deals, such as real estate is a very important level of exposure here terrorism risk from workers compensation and construction projects where terrorism that needs to be addressed.’’ (Source: Senate insurance.’’ (Source: Speech by Edward C. insurance may be necessary to obtain financ- Majority Leader Tom Daschle remarking on Sullivan, President, Building and Construc- ing. the issue at the National Press Club 5/22/02) tion Trades Department, AFL–CIO 4/8/02) ‘‘The high cost of terrorism insurance ‘‘[Insurance] is a crucial aspect of a fairly ‘‘According to new figures compiled by the (when available) diverts resources from large segment of the economy. In this case, Census Bureau, compared to March 2001, non-

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5505 residential construction was off by 19 per- Wells Fargo Forced to Place Nearly $1 Bil- ‘‘However, the limited capacity that cent, while office building construction suf- lion Worth of Construction Loans on Hold: Lloyd’s and other commercial insurers have fered a 32 percent drop over the last year.’’ ‘‘Wells Fargo & Company, one of the larg- available to write this business will not be (Source: U.S. Census Bureau) est real estate lenders in the country, cur- sufficient in the near-term to satisfy the Difficulty Obtaining Adequate Terrorism rently has three real estate projects that are growing coverage gap in the United states Coverage, Moodys May Downgrade: ready to be funded. The only obstacle to economy.’’ (Source: Saxon Riley, Chairman, ‘‘Moody’s Investors Service has placed the moving these projects forward is the unavail- Lloyds of London 4/18/02) ratings of classes from 14 commercial mort- ability of terrorism insurance. They are: A Difficulty in Assessing Terrorist Risk: gage backed transactions on watch for pos- $600 million commercial real estate project To date, terrorists have not behaved pre- sible downgrade due to concerns about ter- in Manhattan. A $260 million retail project dictably, and no study we have seen suggests rorism insurance coverage. Moody’s stated in Queens, NY. A $120 million commercial they will do so. We do not believe insurers that the lack of, insufficiency of, or near project in Oakland, CA. (Information sup- have a reasonable basis for underwriting the term expiration of terrorism insurance cov- plied by Wells Fargo & Company 4/8/2002) risk at this time. At best, they can limit the erage is the cause for these reviews for down- Bond Markets Stall on $7 billion in Com- amount of capital they expose to risk. grade.’’ (Source: Moodys Investor Service mercial Loans: Source: Alice D. Schroeder, senior U.S. non- Press Release 5/31/02) ‘‘The Bond Market Association announced life equity insurance analyst for Morgan ‘‘Billions of dollars in commercial mort- April 18 that according to a survey of its Stanley Dean Whitter & Co., testifying be- gage-backed securities, or CMBS, may face members who deal in commercial mortgage- fore the House Financial Services Com- ratings downgrades by the end of this month backed securities, due to the high cost or un- mittee 2/27/2002) if terrorism insurance legislation continues availability of terrorism insurance for prop- ‘‘Due to the changes in insurance coverage to stall in the Senate. ‘If Congress doesn’t erty owners, this year large lenders have since issuance, the risks related to potential pass something soon we will have to start placed on hold or canceled more than $7 bil- terrorist actions have been or in the near downgrading bonds by Memorial Day,’ said lion in commercial mortgage loans.’’ term may be transferred to the Sally Gordon, vice-president and senior cred- (Source: Bureau of National Affairs 4/22/2002) Certificateholders. While acknowledging it officer at Moody’s Investors Service in Hyatt Puts 2,500 Jobs On Hold, Seeks Ter- that these risks are very difficult to quan- New York, which monitors about $350 billion rorism Insurance: tify, a spokesman for the rating agency said, CMBS.’’ (Source: Dow Jones Newswires 5/3/ ‘‘The Hyatt Corporation has purchased a ‘we believe that ignoring the risks would be 02) site for a new office building in downtown inappropriate given the events of September ‘‘The National Football League and indi- Chicago at a cost of roughly $400 million. 11th and continued government warnings of vidual teams and stadiums have experienced The company is now trying to obtain financ- the likelihood of future terrorist attacks. difficulty acquiring terrorism coverage. The ing for this project but is being told that no- While the probability of a major downgrade Miami Dolphins and New York Giants have body will make loans without insurance for joined the ranks of other teams around the or default because of a terrorist attack re- terrorism, yet adequate terrorism insurance country that have lost terrorism coverage in mains fairly remote, the overall risk in these is unavailable. As a result, construction on the wake of the Sept. 11 attacks.’’ (Source: transactions has clearly increased.’ ’’ the project has not been able to begin. The Bureau of National Affairs 4/9/2002) (Source: Moodys Investor Service Press Re- ‘‘Today, terrorism insurance can be pur- project will lead to the creation of 2,500 jobs lease 5/31/02) chased; although it has a higher premium, if the Hyatt Corporation can get insurance Lack of Terrorism Coverage Constricts higher deductible and lower limit of cov- and proceed with the project.’’ (Source: Bu- Lending: erage. High-risk assets the ones that serve reau of National Affairs 4/9/2002) ‘‘I have to assume that nobody in their the most people face such steep cost in- The Problem of the Underinsured: right mind is going to lend $300 million, $400 creases and diminished coverage, that it ‘‘Officials in Georgia’s Gwinnett County, million, $500 million if there’s no terrorism often makes sense to purchase only a frac- an Atlanta suburb, have been able to find coverage.’’ (Source: GMAC Commercial Hold- tion of the original coverage or no coverage only $50 million of terrorism insurance cov- ing Corp. Chairman and CEO David E. at all. And that’s if terrorism insurance can erage for a $300 million portfolio of prop- Creamer, as quoted in the Philadelphia Busi- even be purchased. erties that includes the county jail and sew- ness Journal 2/27/2002) ‘‘The federal government warns another age treatment facility.’’ (Source: Wash- ‘‘Last year at any point in time we had a terrorist attack is possible, and insurance ington Post, 4/8/2002) large number of single high-profile trans- policies have 30-day cancellation clauses. ‘‘The New York Metropolitan Transit Au- actions to work on, and now we don’t.’’ Thus, after another major attack, avail- thority has $150 million of terrorism insur- (Source: Tad Phillipp, managing director of ability is expected to disappear. Separately, ance to cover its bridges and tunnels, assets Moodys Investors Service, referring to lend- capacity and concentration issues for insur- worth $1.5 billion.’’ (Source: Washington ers becoming wary about financing real es- ance companies are expected to arise, even Post, 4/8/2002) tate deals, as quoted in the Wall Street Jour- in the absence of another terrorist attack. ‘‘Some property owners are opting to go nal 1/11/02) There are only a few companies providing without [terrorism insurance] coverage. In Transportation in Crisis: terrorism coverage for high-risk assets and the long-term, [the] limited or complete lack ‘‘Considering the fact that trucking moves at least one has announced it is reaching its of terrorism insurance coverage threatens a the majority of the freight in America, a cri- threshold for tolerance.’’ (Source: Merrill property owners ability to get financing for sis like this is a real problem for the na- Lynch Research Report, Mortgage Backed new projects or to refinance existing prop- tional economy.’’ (Source: American Truck- Research, 5/17/02) erties.’’ (Source: summary of remarks by ing Association President and CEO William ‘‘While acknowledging the insurance mar- Tony Edwards, general counsel of the Na- J. Canary, as quoted on ATAs website) ket and risk of terrorism is an evolving situ- tional Association of Real Estate Investment ‘‘Amtrak was unable to obtain terrorism ation, rating agencies would gain comfort Trusts, Dow Jones 1/15/02) coverage when its $500 million property in- from a federal terrorism insurance program Building Projects Placed on Hold: surance policy came up for renewal on Dec. or an improvement in the insurance market. ‘‘In downtown Chicago, Pritzker Realty 1. Amtrak believes that only limited We have heard that the insurance market is Group LP cannot get financing to build an amounts of terrorism coverage are available more likely to evolve into a capacity-con- office building because the project does not today, and that limited coverage is at ex- strained market than it is to satisfy insur- have terrorism insurance.’’ (Source: Wash- tremely high rates.’’ (Source: Bureau of Na- ance neene is relying on the amount and the ington Post, 4/8/2002) tional Affairs 4/9/2002) quality of insurance to counter balance the ‘‘Casino developer Steve Wynn has halted A Growing Chorus Calls For Action: increased risk of terrorist attacks then one plans to build a $2 billion development in Las ‘‘The story is only half-told right now. must also recognize that insurance policies Vegas that would create 16,000 new jobs be- Over the year it will grow in magnitude.’’ covering terrorist acts have exclusions for cause he cannot buy enough terrorism insur- (Source: Marty DePoy, speaking on behalf of losses due to atomic, biological or chemical ance to satisfy his lenders.’’ (Source: Wash- the Coalition to Insure Against Terrorism, terrorism.’’ (Source: Merrill Lynch Research ington Post, 4/8/2002) which includes the National Association of Report, 6/5/02) Many Insurers Not Willing to Write Com- Real Estate Investment Trusts, the U.S. ‘‘Premiums on standard property and cas- mercial Property Insurance: Chamber, the National Football League, the ualty insurance have jumped by as little as ‘‘Wells Fargo is threatening to throw a $275 National Retail Federation, and the Associa- 10 percent and by as much to 300 percent for million securitized mortgage into default un- tion of American Railroads, among several owners of large urban commercial prop- less terrorism insurance is arranged for the other diverse organizations 2/13/02 erties. They are scrambling to find coverage collateral property the Opryland Hotel and ‘‘The entire market that provided workers from a single insurer for properties worth Convention Center in Nashville.’’ (Source: compensation catastrophe reinsurance has more than $25 million, bond rating service Commercial Mortgage Alert 5/31/02) dried up.’’ (Source: Timothy P. Brady, man- Standard & Poor’s said in a recent report. ‘‘The result of 9/11 was a sizable reduction aging director, Marsh, Inc., as quoted in the The rift between lenders and owners will in the number of available insurers willing Wall Street Journal 1/9/02 likely deepen, investors and analysts say, to write commercial property insurance.’’ ‘‘[Higher insurance costs, higher until more affordable terrorism policies are (Source: Christopher Ewers, vice president of deductibles and fewer insurance choices are] available—or the government steps in.’’ March Risk & Insurance Services, the bro- going to affect the cost of doing business for (Source: Reuters 5/27/02) kerage for the Golden Gate Bridge 3/23/2002) all companies. It might take a while to hit

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5506 CONGRESSIONAL RECORD — SENATE June 13, 2002 the bottom line, but its something that af- ‘‘Washington’s decision to postpone any The Senator from Connecticut, whom I fects the total company.’’ (Source: James action on apportioning the burden for ter- mentioned while he was out of the Shelton, regional risk manager at Manpower rorism coverage could have long-term nega- room, has done a great job. He under- Inc., in Glendale, WI, as quoted by tive economic consequences for business and stood the position and put it in. It was CNNMoney 12/31/01 the pace of recovery.’’ (Source: New York ‘‘The situation that we’re in at the mo- City Partnership and Chamber of Commerce at that point supported by the Senator ment is analogous to getting into your car 2/11/02) from Texas in the final proposal that without seat belts or the steel frame. If ‘‘Executives at the companies that service was made. This did not stand in the you’re not in an accident, nothing’s going to the hundreds of billion of dollars in commer- way. It was tort reform that stood in be affected. If you’re in an accident, the re- cial-mortgage-backed securities have al- the way. sults are going to be disastrous because you ready begun to question whether they are Let me explain why this is so needed don’t have the infrastructure in place to pro- going to have to declare property owners in and why so many people are for this on tect you.’’ (Source: David Mair, risk man- technical default if they lose terrorism cov- both sides of the aisle. In the bill, as ager for the U.S. Olympic Committee, quoted erage. These mortgage-servicing companies by Dow Jones 2/7/02) may have little choice. If they don’t declare you know, there is a $10 billion indus- ‘‘The real damage likely will come in the a default and the property is attacked by try-wide benchmark for triggering in- secured lending market. Depending on the terrorists, they could face a lawsuit from dividual company retentions in the size of the building, it’s going to be hard to bondholders.’’ (Source: Wall Street Journal first year. It goes to $15 billion in year get mortgage and [commercial mortgage- 2/13/02) 2, if the program is extended by the backed securities] done.’’ (Source: Richard ‘‘Sales and refinancing of high-profile of- Treasury Secretary. That benchmark Kincaid, chief operating officer of Equity Of- fice buildings and other trophy properties fice Properties Trust, quoted by Dow Jones 1/ would result in substantial private in- are slowing, as the real estate industry grap- surer losses before the Federal back- 16/02) ples with the lower availability and higher ‘‘This is a national problem. Everybody cost of terrorism insurance. Owners of prop- stop is triggered. needs shoes to walk. Suddenly, shoes are not erties that can’t get terrorism insurance are We didn’t want the Federal Govern- available. Its as simple as that.’’ (Source: reluctant to speak out for fear of scaring ment in the compromise that came Deborah B. Beck, executive vice president of tenants and drawing attention to them- about—this was not to my liking—but the Real Estate Board of New York, dis- selves.’’ (Source: Wall Street Journal 1/11/02) it was intended to have the private sec- cussing the lack of coverage for real estate ‘‘Some companies may have experienced tor step in first until they were so lim- owners, as quoted by the Washington Post 1/ troubles already but are unwilling to talk 15/02) ited because of the extent of the dam- about them, especially publicly traded com- ‘‘It’s little strange. You could understand age, God forbid, that they couldn’t do panies worried about the impact on their [higher insurance costs] at signature build- it anymore. Well, if we didn’t have this ings like Liberty Place and Mellon Bank stock prices or builders concerned about their overall market.’’ (Source: Hartford cap for a number of companies, the Center. But the new building being built in larger companies, the companies that Plymouth Meeting is facing the same soar- Courant 1/10/02) ‘‘One developer in the New York area is ing [insurance rates as the high-rises]. Its concentrated, again, on the big eco- going to have a pretty dramatic effect on close to finishing an office building for a nomic properties, the losses that they tenants. I had a lender in here today who solid tenant. [Its a company that has been would incur before the Federal Govern- said they have had to postpone a couple of around for decades and signed a long-term ment’s involvement was triggered settlements because the escrow required for lease.] That sort of tenant is precisely what would equal those losses. They would first-year payments are prohibitive’’ real estate lenders like. But the developers bank is no longer willing to finance the be comparable to the losses incurred on (Source: Walt DAlessio, chief executive of September 11. And for almost every in- Legg Mason Capital Markets, a national real building because the owner cannot get ade- estate finance company, as quoted in the quate terrorism coverage. If the developer surer, they would exceed the losses sus- Philadelphia Inquirer 1/14/02) has to sink its own money into the effort, it tained in any previous natural disaster. ‘‘Ultimately, [increased insurance costs for will tie up capital the firm could use to start In order for insurers to sustain such terrorism for coverage] all passes down to new projects.’’ (Source: Washington Post 1/ significant losses without risking in- you and I when we go shopping. Most of 15/02) solvency, each company must be able those costs will be passed down to our ten- Mr. SCHUMER. I have quotes from to determine with some degree of cer- ants in their operating costs and then to the President Bush who stated last month tainty the outer bounds of terrorism products, whether it is a pair of jeans or a how important this was; from the Joint exposure in actuarial terms, its prob- pound of coffee.’’ (Source: Steven Sachs, insurance risk manager for The Rouse Co., Economic Committee of the Congress, able maximum loss. And since Janu- which has 47 shopping malls and over 100 of- ably chaired by our Presiding Officer, ary, the Coalition to Insure Against fice buildings, as quoted by Dow Jones 12/21/ from May 23; from FBI Director Robert Terrorism, which is a broad-based busi- 01) Mueller; from Vice President CHENEY; ness group, has stressed the need for ‘‘The issue has nothing to do with the size from Secretary Donald Rumsfeld; from this kind of insurance that will bring of the property. It could be a manufacturing Larry Lindsay; from Secretary Paul the insurers back into high-risk prop- plant of 20,000 square feet or an office build- O’Neill; from Reserve Chairman Green- ing of 2 million square feet. Theyre all af- erty insurance. Per-company reten- fected.’’ (Source: Jerry I. Speyer, president span. All of these people are not known tions are the way to do so. They are and chief executive of Tishman Speyer Prop- as people who believe the Government the best way to assure that the com- erties, a prominent New York developer, as ought to come in and solve the problem pany is temporary because they will fa- quoted in the Washington Post 01/15/02) at the drop of a hat. In fact, philosophi- cilitate a quick transition to the pri- ‘‘One of the lessons learned from Sept. 11 is cally most of them are of the opposite vate sector as insurers and reinsurers that many insurers have concentrations of view. They all felt the need to talk begin to develop underwriting relation- risk that they had not previously factored about terrorism insurance. into their underwriting decisions. Employee ships with even the highest risk policy- groups of 1,000 or more lives are common We have to move this legislation. We holders. across Corporate America and even globally. have to move forward. Again, each of This experience will make it easier Terror attacks on large corporate sites could us could have our own idea on how to to develop actuarial models for use easily bankrupt insurers with workers’ com- make it better, how to change it. We after the Federal program expires be- pensation claims averaging $1 million or know things will fall apart. My guess cause, as you know, unlike the wishes more.’’ (Source: Standard & Poors 1/9/02) is, if we don’t solve this problem now, of many of us, this expires in a few ‘‘Our inability to obtain insurance on our properties could cause us to be in default we are not going to solve it until a cri- years, depending on whether the Treas- under covenants on our debt instruments or sis is truly upon us, until this slow ury Secretary does an extension. other contractual commitments we have drain on the economy, which the lack The per-company retentions will also which require us to maintain adequate insur- of terrorist insurance is causing, be- minimize Federal involvement since ance on our properties to protect against the comes not a flow but a cascade. Then, there is no need for Treasury to de- risk of loss. If this were to occur, or if we of course, the damage will have been velop a formalized allocation procedure were unable to obtain insurance and our done, and it will be almost too late. for determining each company’s share properties experienced damages which other- Finally, I want to talk a little bit of the aggregate industry retention or wise have been covered by insurance, it could materially adversely affect our business and about the per-company cap which I the quota share payment. Because the the conditions of our properties.’’ (Source: know is an issue that Senator GRAMM insurance industry comprises more Host Marriott, L.P., in an S–4 filing dated 1/ and I are debating. As you know, I than 3,000 competing firms, private in- 10/02) fought hard to have this cap put in. surers cannot otherwise get together

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5507 and agree on a loss-sharing formula risk that might be brought about by not get financing without terrorism in- that would bind the industry as a terrorist acts. It is unacceptable that surance, and most insurance companies whole. So inclusion of the per company we hold large segments of our economy are not in a position to offer that. retention in the legislation provides hostage to the acts of terrorists. So I hope we can move with a good some certainty as to when the back- Right now, many small business and piece of legislation that will provide stop is triggered for each insurer, with- small property owners are at disadvan- the temporary reinsurance by the Fed- out an elaborate Federal bureaucracy tages. They face the prospect of dou- eral Government to allow us to get to allocate the losses. bling and tripling insurance premiums. back to the normal business of building The bottom line is that we need this They are not only faced with increased facilities, building shopping centers, bill. We need the per company cap to property insurance costs, but they are operating cultural facilities, and con- make it work—particularly for large facing workers’ compensation insur- ducting business. properties, particularly for areas of ance costs, health insurance costs; and Mr. President, I look forward to high economic risk. I urge the Senate without affordable insurance, many working with my colleagues. I hope we to pass S. 2600, including these reten- small businesses and property owners can get a good product, and I hope we tions. It is the right solution to an on- are simply forgoing insurance. That is can do it very quickly so we can get going problem that threatens insurers, bad business. Those that have elected our economy moving again. policyholders, and the economy at to pay much higher insurance costs are I thank the Chair. large. finding they have to pass this cost I suggest the absence of a quorum. Mr. President, I yield the floor. along to their customers, renters, The PRESIDING OFFICER. The The PRESIDING OFFICER (Mr. NEL- leaseholders, and others. This could clerk will call the roll SON of Florida). The Senator from Mis- have a tremendous impact on our econ- The assistant legislative clerk pro- souri is recognized. omy. ceeded to call the roll. Mr. BOND. Mr. President, I rise to We are hearing about major con- Mr. SANTORUM. Mr. President, I speak on the pending legislation construction projects coming to a halt ask unanimous consent that the order cerning terrorism reinsurance. Last across the country as lenders and for the quorum call be rescinded. December—December 13, I believe—I major financing institutions are seek- The PRESIDING OFFICER. Without spoke here urging the leadership to ing, but unable to get, terrorism risk objection, it is so ordered. bring up bipartisan legislation that insurance. The Bond Market Associa- AMENDMENT NO. 3842 was at the time being negotiated be- tion has stated that more than $7 bil- (Purpose: To implement the International tween the White House and the Senate lion worth of construction projects are Convention for the Suppression of Ter- Banking Committee. Unfortunately, rorist Bombings to strengthen criminal on hold or have been canceled due to laws relating to attacks on places of public the legislation before us today does not the lack of affordable terrorism risk use, to implement the International Con- reflect those discussions. At that point, insurance. vention of the Suppression of the Financ- I thought we had a good start on a bi- Rating organizations have issued ing of Terrorism, to combat terrorism and partisan terrorism reinsurance effort. warnings in the past 2 weeks that large defend the Nation against terrorist acts, The availability and affordability of securitizations are in jeopardy of being and for other purposes) insurance is vital to the stability of downgraded. We are trying to get out Mr. SANTORUM. Mr. President, I our Nation’s economy. Now that we of a recession. The economic recovery send an amendment to the desk. know terrorists can and have struck in that we expect and that we need is in The PRESIDING OFFICER. The the United States, and have struck grave danger if we do not provide a clerk will report. against major buildings, insurance is means of reinsuring the risk that has The legislative clerk read as follows: going to have to change because the in- now become a reality in this country The Senator from Pennsylvania [Mr. surance is going to have to cover risks with possible terrorist acts. This is an SANTORUM] proposes an amendment that were never before recognized as unknown at this point, and this is the numbered 3842. being legitimate in this country. time, and this is something in which Mr. SANTORUM. Mr. President, I We hear reports from all over that the Federal Government could play a ask unanimous consent that the read- many insurance and reinsurance com- very significant role. That is why good ing of the amendment be dispensed panies are no longer able to provide the terrorism risk reinsurance legislation with. insurance coverage that is necessary must be provided. The PRESIDING OFFICER. Without for builders of buildings, for those own- I also agree with my colleague from objection, it is so ordered. ing buildings, to get the kind of financ- Kentucky that businesses that are vic- (The amendment is printed in today’s ing they need or to have the protection timized by terrorist attacks should not RECORD under ‘‘Text of Amendments.’’) they need for the resources they put be subject to punitive damages. Now, Mr. SANTORUM. Mr. President, a into those buildings. unfortunately, on a party line vote, we clarification for Members. This is the At this moment, affordable terrorism rejected the standard my colleague same amendment that Senator HATCH risk insurance is not attainable by proposed. I hope we can find other proposed earlier today. I understand many businesses, both small and means of compromise to ensure that a Senator HATCH engaged in some con- large—apartment and condominium business owner or a business that is versation with Senator LEAHY about buildings, shopping centers, as well as struck by a terrorist act is not also withdrawing his amendment. I think it many cultural institutions. Recently, struck by a punitive damage action is vitally important for the Senate to the St. Louis Art Museum was identi- that could be economically as dev- vote on this amendment. It is an im- fied by the Joint Economic Committee astating as a terrorist act. portant amendment. It is an amend- as not being able to afford terrorism We cannot and should not hold our ment that is relevant to this bill be- insurance. As a result, the museum is major economic engines hostage to the cause it deals with terrorism. not covered. I am positive there are threat of punitive damages on top of a We had the same agreement yester- many entities across the country fac- terrorist act. I hope we can agree on a day, I understand, to vote on this ing the same situation as the museum. means of avoiding this kind of risk to amendment. We had consent to do so, I know major sports facilities, includ- those who have businesses or property and there was an objection filed at the ing ones in my State, are in a position that might be subject to a terrorist at- last minute. We are now going out of where they cannot get the terrorism tack. As I said back in December, this session and will not be back until next risk insurance they would need to add is a potential problem. I believe now it week, and I think it is important we new construction, or even to continue is a problem. I think our recovery from have a record vote. their operations. The fact that ter- the economic downturn, the recession, Mr. REID. Will my friend yield for a rorism has struck our country has a has been slowed because the business question? double impact now that we are in a po- community—especially small busi- Mr. SANTORUM. I will be happy to sition where insurance companies are nesses from which I hear—are really in yield. not able to write and insure against a position where they cannot go for- Mr. REID. I have just been in- and to ascertain the level of insurance ward and, in many instances, they can- formed—and this may be something of

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5508 CONGRESSIONAL RECORD — SENATE June 13, 2002 which the Senator is not aware—Sen- do this separate and apart from this these bills. It is going to require con- ator HATCH and others have been work- bill. This way, we can send a free- tinued work and labor. Those who are ing on this in the last few minutes, and standing bill to the House so they can concerned about getting something we have something we believe can be work on this issue, and it will not be done, let it be known I am fully pre- completed in wrapup this evening that tied up in this legislation. pared to entertain amendments. I will takes care of the matter. Mr. SANTORUM. Again, I am fine offer time agreements to try to wrap I suggest my friend take a look at with that. My concern is we get a vote them up early, but if this goes on much this. I do not know the subject matter on it. I am happy to do it that way, but longer, I presume the leader will con- very well, but I assume Senator HATCH my concern is we vote on this legisla- sider having to file cloture, and then and Senator LEAHY have worked it out. tion. we will have to limit amendments, at Mr. SANTORUM. I will be happy to Mr. REID. I say to my friend from least limit them to relevant amend- deal with this as a separate matter as Pennsylvania, we will try our very best ments. long as we get a vote on it. I am just to work with him. We have Senator It is now almost 5:30, and I hope we looking for a vote. This is an impor- LEAHY’s staff here. Senator HATCH’s might get a couple more amendments tant piece of legislation that deals with staff is not here, but they will be here done, particularly some of those that terrorism, the implementation of a shortly. We will work on trying to do are outstanding that I know need to be treaty on terrorist bombing. It is an this separate and apart from this legis- debated and considered. The quicker important vote. It is the implementa- lation. that is done, the more rapidly we can tion act of a treaty that we passed last Mr. SANTORUM. I thank the assist- conclude work on this bill and vote it year. There are criminal code sections ant majority leader. either up or down, but we will have dealing with terrorist bombings, as Mr. REID. I suggest the absence of a dealt with terrorism insurance. well as people who are financing ter- quorum. Mr. REID. Will the Senator yield for rorism. It is important legislation. I The PRESIDING OFFICER. The a question? think it is something on which we clerk will call the roll. Mr. DODD. I will be happy to yield to should vote. The legislative clerk proceeded to my colleague. I am not being critical of what Sen- call the roll. Mr. REID. The distinguished Senator ator LEAHY and Senator HATCH did. I Mr. DODD. Mr. President, I ask unan- from Connecticut with whom I have just think it is important legislation imous consent that the order for the been on this floor when considering that should be voted on in the Senate. quorum call be rescinded. major pieces of legislation—we do not Mr. REID. Will the Senator yield for The PRESIDING OFFICER. Without have a better manager in the Senate one more question? objection, it is so ordered. than Senator DODD. He does a wonder- Mr. SANTORUM. I will be happy to Mr. DODD. Mr. President, it is now ful, outstanding, exemplary job. He is yield. after 5 p.m. We are hoping to get this here ready to work. Mr. REID. If the Senator wants a done. It could go into the end of next Yesterday afternoon, we finished the vote, we can and should have a vote. It week. I know the majority leader is estate tax debate. The majority leader is my understanding Senator HATCH trying to bring up the Defense author- at that time wanted to move to this and Senator LEAHY have worked out a ization bill. I am more than happy to legislation, but Members who were in- substitute. It will be passage of S. 1770, consider other amendments. If people terested in this legislation said: We the Terrorist Bombing Convention Im- have them, bring them up and see if we have had a hard couple days; why don’t plementation Act of 2001. cannot finish this legislation. It is pos- you wait until tomorrow? Mr. SANTORUM. Right. sible we can get it done this evening. I say to my friend from Connecticut, Mr. REID. We were going to do this The majority leader has indicated if we it appears to me that this is an effort by unanimous consent this evening in can complete this bill this evening, to slow down this legislation. We want- wrapup. I assume it will be easy to there will be no votes tomorrow. We ed to move to it last night, allow Mem- work out a vote. will then complete the process and bers to make opening statements and Mr. SANTORUM. If we can work out next week, I guess, move—I do not offer amendments, but the majority a vote on this legislation, that will be want to speak for the leadership—but I leader said: No, they say they do not amenable to me. I will be happy to put gather there is a strong indication we want to; go ahead and agree with that. us back in a quorum call and see if we will move to the Defense authorization Now here we are today, not much can arrange that. bill. We will move to other legislation, happening all afternoon, and if the ma- Mr. REID. What I suggest—and I will if not Defense authorization. jority leader did decide to file cloture be happy for the Senator to continue I was hoping in the next hour or so today people would yell and scream his statement—maybe in the near fu- we could get some time agreements on saying this is the first day. ture he can look at this and see that amendments. Otherwise, my fear is we It is not really the first day. We Senators HATCH and LEAHY agree to will end up into next week, and if that wanted to do it yesterday. Tomorrow is have a vote on this issue. is the case, then people will be slow- Friday. Monday is already a scheduled Mr. SANTORUM. My concern is to walking this bill. no-vote day, but that does not mean it have a vote. I would be comfortable to I appreciate the comments of the is a no-amendment day. Tomorrow we have a vote on that legislation which, Senator from Missouri. He made a fine may not work a full day as we nor- while I understand it is not identical to speech about the importance of this mally do with votes all day, but this the amendment I offered, is legislation legislation. There is a consensus that body will stay in as late as anyone that accomplishes the same purpose. we need to do something on terrorism wants to offer amendments. Why don’t I suggest the absence of a insurance. It is causing economic prob- So the Senator is absolutely right. quorum, and we can see if we can work lems for our country, for all the rea- We are going to finish this legislation. this out. sons I identified. I say to my friend, and I think he is The PRESIDING OFFICER. Does the Certainly I am happy to entertain aware of this, all of the industry Senator suggest the absence of a and debate relevant amendments that groups all over America that are inter- quorum? deal directly with this bill and move on ested in this have sent letters and e- Mr. REID. Will the Senator withhold them, either accepting them or defeat- mails to anyone who will pick them up, his request? ing them. Let’s see if we cannot get saying they support cloture on this. Mr. SANTORUM. I will be happy to. this bill done. We started it early this Everybody is tired of this. We have The PRESIDING OFFICER. The Sen- morning. We have already dealt with a danced since late last year on this leg- ator from Nevada. couple major amendments. We have ac- islation. We are going to complete this Mr. REID. Mr. President, while the cepted some colloquies that have been legislation. It is only a question of Senator is in the Chamber, and we can offered as an alternative. whether we do it tonight or whether we certainly talk about this, there is no We are going to end up in a condo it next week sometime. Will the reason not to do this. I think the chair- ference with the other body. There are Senator agree? man and ranking member would like to substantial differences between both of Mr. DODD. I agree with that.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5509 Obviously, it helps the work of the I thought since we had a moment I The PRESIDING OFFICER. Without Senate if we can complete it this would address this issue. As I under- objection, it is so ordered. evening, but tomorrow morning would stand it, the majority leader will be The amendment is as follows: make more sense. We still have a lot of coming out shortly to make announce- (Purpose: To provide for satisfaction of judg- work to do in conference to get this ments, and I will be happy to yield the ments from frozen assets of terrorists, ter- done. I know the administration is in- floor at that time. rorist organizations, and State sponsors of terested, as well as the Secretary of I am hopeful we can take up this terrorism, and for other purposes) the Treasury, the President, and many issue on the floor and that it can be At the appropriate place, insert the fol- others. My colleague from Nevada considered before the body, allowing lowing: mentioned the various business groups people to be able to consider this. SEC. ll. SATISFACTION OF JUDGMENTS FROM FROZEN ASSETS OF TERRORISTS, that are interested. I should also note There are a number of people who have TERRORIST ORGANIZATIONS, AND that the building trades, the AFL-CIO, been harmed greatly, and family mem- STATE SPONSORS OF TERRORISM. have sent a strong letter in support of bers have been killed by terrorist orga- (a) IN GENERAL.—Notwithstanding any this legislation. It is one of those rare nizations. We need to provide a means other provision of law, and except as pro- occasions when groups that sometimes for satisfaction. This is one way that it vided in subsection (b), in every case in which a person has obtained a judgment are antagonistic to each other on a leg- could be taken care of. If I may reply to those who say this against a terrorist party on a claim based islative effort have come together and upon an act of terrorism or for which a ter- have, for months now, asked that we particular bill is not the appropriate rorist party is not immune under section respond to this. So we are hopeful to vehicle, we have a limited number of 1605(a)(7) of title 28, United States Code, the get this done. vehicles left in front of this body. This blocked assets of that terrorist party (in- Again, I will stay here as late as any- is the appropriate point in time for us cluding the blocked assets of any agency or one wants. I will make time tomorrow. to be able to bring this forward. instrumentality of that terrorist party) shall I will make time next week. We are I understand the Senator from Vir- be subject to execution or attachment in aid going to get the bill done one way or ginia will be bringing it forward so it of execution in order to satisfy such judg- can be worked out, and the administra- ment to the extent of any compensatory the other. It serves everyone’s interest damages for which such terrorist party has to try to complete this work sooner tion and Congress is coming forward been adjudged liable. rather than later. with other ways and means of dealing (b) PRESIDENTIAL WAIVER.— I merely wanted to make those with it. Yet I am still hopeful that we (1) IN GENERAL.—Subject to paragraph (2), points to our colleagues who are won- can get this taken care of on this par- upon determining on an asset-by-asset basis dering what the schedule will be. Obvi- ticular bill. that a waiver is necessary in the national se- ously, the leadership will make up its I note there has been a lot of pressure curity interest, the President may waive the to get this bill wrapped up. requirements of subsection (a) in connection own mind about how to proceed, but it with (and prior to the enforcement of) any certainly would be in our interest—we I understand the Senator from Vir- ginia has been caught in traffic and is judicial order directing attachment in aid of have been here a couple of hours with execution or execution against any property really no amendments. I know there trying to get here to offer his amend- subject to the Vienna Convention on Diplo- are some. If people have them, come ment. I would like to see us take up matic Relations or the Vienna Convention over and offer them. We will happily this amendment and have it considered on Consular Relations. consider them. I do not include in that and moved forward. (2) EXCEPTION.—A waiver under this sub- group the Presiding Officer, who of- He asked me, through his staff, if I section shall not apply to— would bring up this amendment. If we (A) property subject to the Vienna Conven- fered a very strong amendment, who is tion on Diplomatic Relations or the Vienna now working with us and is working on could consider this important piece of legislation in front of this body, I Convention on Consular Relations that has another amendment trying to work been used by the United States for any non- things out, but it is relevant to the think this would be very valuable. If diplomatic purpose (including use as rental subject matter of the bill. we could allow this to take place, I property), or the proceeds of such use; or I hope those who have amendments think it would be a positive note. (B) the proceeds of any sale or transfer for will offer them, withdraw them, or I yield the floor. I suggest the ab- value to a third party of any asset subject to offer some alternative we can consider sence of a quorum. the Vienna Convention on Diplomatic Rela- as we go into the conference, if the bill The PRESIDING OFFICER. The tions or the Vienna Convention on Consular Relations. is passed. clerk will call the roll. The legislative clerk proceeded to (c) SPECIAL RULE FOR CASES AGAINST I suggest the absence of a quorum. IRAN.—Section 2002 of the Victims of Traf- The PRESIDING OFFICER. The call the roll. Mr. ALLEN. Mr. President, I ask ficking and Violence Protection Act of 2000 clerk will call the roll. (Public Law 106–386; 114 Stat. 1542) is amend- The legislative clerk proceeded to unanimous consent that the order for ed— call the roll. the quorum call be rescinded. (1) in subsection (a)(2)(A)(ii), by inserting Mr. BROWNBACK. I ask unanimous The PRESIDING OFFICER (Mr. DAY- after ‘‘July 27, 2000’’ the following: ‘‘or before consent that the order for the quorum TON). Without objection, it is so or- October 28, 2000,’’; (2) in subsection (b)(2)(B), by inserting call be rescinded. dered. Mr. ALLEN. I ask unanimous consent after ‘‘the date of enactment of this Act’’ the The PRESIDING OFFICER. Is there to set aside the pending amendment. following: ‘‘(less amounts therein as to objection? The PRESIDING OFFICER. Without which the United States has an interest in Mr. REID. Mr. President, I object. objection, the pending amendment is subrogation pursuant to subsection (c) aris- The PRESIDING OFFICER. Objec- ing prior to the date of entry of the judg- set aside. tion is heard. ment or judgments to be satisfied in whole The legislative clerk continued with AMENDMENT NO. 3838 or in part hereunder).’’; the call of the roll. Mr. ALLEN. Mr. President, I call up (3) by redesignating subsections (d), (e), Mr. BROWNBACK. Mr. President, I amendment No. 3838. and (f) as subsections (e), (f), and (g), respec- ask unanimous consent that the order The PRESIDING OFFICER. The tively; and clerk will report. (4) by inserting after subsection (c) the fol- for the quorum call be rescinded. lowing new subsection (d): The PRESIDING OFFICER. Without The assistant legislative clerk read as follows: ‘‘(d) DISTRIBUTION OF FOREIGN MILITARY objection, it is so ordered. SALES FUNDS INADEQUATE TO SATISFY FULL Mr. BROWNBACK. Mr. President, the The Senator from Virginia [Mr. AMOUNT OF COMPENSATORY AWARDS AGAINST Senator from Virginia, Mr. ALLEN, will ALLEN], for himself, Mr. BURNS, Mrs. IRAN.— be here momentarily and will ask to HUTCHISON, Mr. SMITH of New Hamp- ‘‘(1)(A) In the event that the Secretary de- set aside the pending amendment in shire and Mr. WARNER, proposes an termines that the amounts available to be order to offer an amendment on ter- amendment numbered 3838. paid under subsection (b)(2) are inadequate to pay the entire amount of compensatory rorism to obtain judgments from frozen Mr. ALLEN. Mr. President, I ask damages awarded in judgments issued as of assets of terrorists, terrorist organiza- unanimous consent that further read- the date of the enactment of this subsection tions, and state-sponsored terrorism, ing of the amendment be dispensed in cases identified in subsection (a)(2)(A), the and others. with. Secretary shall, not later than 60 days after

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5510 CONGRESSIONAL RECORD — SENATE June 13, 2002 such date, make payment from the account amendment would permit the blocked all from Virginia; they are from Iowa, specified in subsection (b)(2) to each party to assets of terrorists, terrorist organiza- New York, New Hampshire; they are which such judgment has been issued a share tions, and state sponsors of inter- from States across our Nation—for all of the amounts in that account which are national terrorism, to be used to com- these victims who have suffered at the not subject to subrogation to the United States under this Act. pensate American victims of terrorism. hands of these ruthless terrorists we ‘‘(B) The amount so paid to each such per- A little history: In 1996, Congress ought to say they can be compensated son shall be calculated by the proportion passed the Antiterrorism and Effective from the blocked assets of these terror- that the amount of compensatory damages Death Penalty Act, which, in section ists and their sponsors. awarded in a judgment issued to that par- 221, expressly amended the Foreign Indeed, this measure talks about ter- ticular person bears to the total amount of Sovereign Immunities Act to allow rorism reinsurance and who ought to all compensatory damages awarded to all American victims of terrorism to seek be sued, the obligations of insurance persons to whom judgments have been issued justice through the courts against for- companies and how should we back up in cases identified in subsection (a)(2)(A) as those insurance companies. In these of the date referred to in subparagraph (A). eign terrorist governments. In 1998, ‘‘(2) Nothing herein shall bar, or require Congress again amended the Foreign cases where someone has a judgment delay in, enforcement of any judgment to Sovereign Immunities Act, stating ex- and where there are assets that have which this subsection applies under any pro- plicitly that any property of a terrorist been seized, it is the terrorists and cedure or against assets otherwise available state that was frozen by the U.S. their state sponsors, not the American under this section or under any other provi- Treasury Department was subject to taxpayers, who should be held account- sion of law. execution or attachment to satisfy the able for these heinous crimes. ‘‘(3) Any person receiving less than the full victim’s court judgments. This amendment will accomplish amount of compensatory damages awarded However, in response to bureaucratic three salient principles: Responsibility, to that party in judgments to which this subsection applies shall not be required to make interference, Congress again, in 2000, as justice, and punishment and deter- the election set forth in subsection (a)(2)(C) part of the Victims of Trafficking and rence. in order to qualify for payment hereunder.’’. Violence Protection Act, endorsed the Responsibility: At least financial re- (d) DEFINITIONS.—In this section: policy of using blocked assets to im- sponsibility for the injuries and dam- (1) The term ‘‘terrorist party’’ means a ter- pose a cost on terrorism and provide ages from those who are culpable for rorist, a terrorist organization, or a foreign justice to victims. the terrorist criminal acts. state designated as a state sponsor of ter- Currently, there are at least $3.7 bil- Justice: Justice for the victims and rorism under section 6(j) of the Export Ad- lion in blocked or frozen assets of seven the victims’ families. ministration Act of 1979 (50 U.S.C. App. state sponsors of terrorism. However, Punishment and deterrence: Those 2405(j)) or section 620A of the Foreign Assist- who sponsor these terrorist acts should ance Act of 1961 (22 U.S.C. 2371). the executive branch bureaucracy is (2) The term ‘‘blocked asset’’ means any once again preventing these funds from be punished and deterred. asset seized or frozen by the United States in being used to compensate American Therefore, I ask that my colleagues accordance with law, or otherwise held by victims who have brought lawsuits in stand with the victims, stand with the United States without claim of owner- our Federal courts, won their cases, their families, and allow them to get ship by the United States. and secured court-ordered judgments— some satisfaction, albeit only financial (3) The term ‘‘property subject to the Vi- victims such as Edwina Hegna of Vir- satisfaction. enna Convention on Diplomatic Relations or ginia. I request that we move forward with the Vienna Convention on Consular Rela- this terrorism reinsurance bill, but tions’’ and the term ‘‘asset subject to the Vi- In the 1980s, Mrs. Hegna’s husband, Charles Hegna, was an employee of the also add to it this opportunity for the enna Convention on Diplomatic Relations or Senate to take a stand and allow those the Vienna Convention on Consular Rela- U.S. Agency for International Develop- tions’’ mean any property or asset, respec- ment. In 1984, his flight from Kuwait folks who have had these injuries and tively, the attachment in aid of execution or City to Karachi, Pakistan, was hi- these damages and loss of life, in some execution of which would result in a viola- jacked by Hizbollah, an Iranian-backed cases, to have those judgments satis- tion of an obligation of the United States organization. The terrorists demanded fied, maybe satisfied in part, but satis- under the Vienna Convention on Diplomatic that all Americans reveal themselves. fied against the assets that have been Relations or the Vienna Convention on Con- seized from primarily two countries sular Relations, as the case may be. Mr. Hegna stepped forward. The terrorists then beat and tortured him. Upon that have been involved—Iran and Iraq. Mr. ALLEN. Mr. President, I rise to Some say we should be worried about landing, they forced him to kneel. Wit- present this amendment, No. 3838, what Iraq and Iran might do about all nesses heard Mr. Hegna praying for his which is a measure that has to do with this. But sitting back and worrying life. He was then shot in the stomach allowing those who are victims of ter- about what they might do is not going and thrown 20 feet to the tarmac below rorist acts in the past who have judg- to help these families and is not going while still alive, breaking nearly every ments, to collect those judgments to help this country. I am going to bone in his lower body. He didn’t die. against the assets of the terrorist stand with these families, these vic- He laid in agony for about an hour. As states or the state-sponsored terrorist tims, and our judicial system. Let an ambulance arrived, the terrorists states involved in these acts. I thank these victims get after these assets. leaned out of the airplane door and the cosponsors of the basic bill that Let them try to rebuild their lives in shot him repeatedly. He died in the am- has been introduced, which is the basis some part. bulance at the age of 50, survived by for this amendment. I ask for the yeas and nays on this his wife and their 4 children. The cosponsors include Senator WAR- amendment and yield the floor. NER; the lead of this on the Democrat Mrs. Hegna currently has a multi- The PRESIDING OFFICER. Is there a side, Senator HARKIN of Iowa, CONRAD million dollar judgment, but is unable sufficient second? BURNS of Montana, Senator BAYH, Sen- to receive any compensation. Mr. GRAMM. What are we seconding? ator CLELAND, Senator COLLINS, Sen- In another equally brutal case in Mr. President, I suggest the absence ator FEINSTEIN, Senator JOHNSON, Sen- which I prefer not to mention the name of a quorum. ator MILLER, Senator SCHUMER, Sen- of the family, but nevertheless it was a Mr. ALLEN. Mr. President, I am ask- ator TORRICELLI, Senator BAUCUS, Sen- case in Kuwait. A pastor who now lives ing for the yeas and nays. ator BURNS, Senator CLINTON, Senator in Richmond, VA, was held captive The PRESIDING OFFICER. The Sen- CRAIG, Senator HOLLINGS, Senator MI- while he and his children were forced ator from Virginia is requesting the KULSKI, Senator NICKLES, and Senator to watch—and his children at the time yeas and nays on his amendment. Is BOB SMITH. were 10 and 13 years old—the terrorists there a sufficient second? I particularly want to thank Mr. sexually assault his wife. He currently There is a sufficient second. HARKIN for the leadership he has shown holds a $1 million court judgment but The yeas and nays were ordered. on this issue. He has stood strong for is unable to satisfy that judgment. Mr. SMITH of New Hampshire. Mr. making terrorists responsible for their The United States must say today to President, I rise today to support Sen- actions and for justice. I’m grateful for the executive bureaucracy that Mrs. ator ALLEN’s amendment to provide Sen. HARKIN’s tireless efforts in mak- Hegna and this pastor from Richmond justice to American victims of inter- ing this proposal a reality. Now, this and all the victims—and they are not national terrorism.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5511 It is appropriate that today we are ported to an army camp about an hour from people of the Holocaust went through.’’ debating legislation to provide a Fed- Kuwait City. Americans who are the victims of ter- eral backstop to existing and future in- William Van Dorp was held hostage rorist acts sponsored by nations that surance policies covering terrorist by the Iraqi government for months. are deemed by the State Department to acts. That legislation provides eco- During the Persian Gulf war Iraqi used be state sponsors of terrorism should nomic protection for the U.S. economy American hostages to be imprisoned at be punished. for acts of terrorism. I believe that this sites where the Iraqis thought the I urge the Senate to support the legislation should be amended to ad- United States would target during the Allen amendment. dress the issue of Americans held hos- Persian Gulf war. The PRESIDING OFFICER. The Sen- tage and tortured by terrorists to spe- The nations of Iran and Iraq have ator from Kansas. cifically hold liable nations that pro- committed unspeakable acts against Mr. BROWNBACK. Mr. President, I vide financial and other support for American and against citizens of my have an amendment. The PRESIDING OFFICER. The terrorist that target the symbols and state of New Hampshire. Those nations Chair is in error. The majority leader. citizens of America. I am proud to be deserve to be punished. Recently, Iraqi President Saddam Hussien pledged in- Mr. DASCHLE. Mr. President, we an original cosponsor of the The Ter- will work to attempt to vote on the rorism Victim’s Access to Compensa- creased Iraq’s payments to the families of Palestinian suicide bombers from Allen amendment tomorrow as well, tion Act of 2002 that Senator GEORGE but we have been working over the ALLEN and Senator TOM HARKIN have $10,000 to $25,000. The press has reported in the past course of the last several hours—and I introduced. thank those of our colleagues who have That bill provides redress for victims that Iran may be harboring terrorists from the Al-Qaida network and been involved—to accommodate a of terrorism to receive compensation unanimous consent request that I un- from nations that sponsor terrorism. I Taliban. I don’t know that to be true, but it has been reported by the press derstand has now been cleared on both appeared with Senators HARKIN and that Iran and Iraq have not been allies sides. In order to ensure we can inform ALLEN at a press conference with our colleagues of the schedule for the Americans who have experienced first in the war against terrorism. Our diplomatic efforts to change these coun- remainder of the evening and tomor- hand the despicable and evil use of ter- row, I propound this unanimous con- rorism that every American can under- tries has fallen on deaf ears and these countries are supporting terrorism sent request so that at least this can be stand as a result of the tragic events of scheduled. September 11 2001. throughout the globe. Iran, Iraq, and North Korea are the ‘‘Axis of Evil.’’ I ask unanimous consent that when What right does a citizen have to the Senate resumes consideration of fight back against a terrorist nation? I am sure that every Member of this body remembers the Iran hostage cri- the terrorism insurance bill on Friday, The only power that individual has is June 14, at 9:35 a.m., the Santorum to sue that terrorist nation in court to sis. Americans who worked in the U.S. Embassy of Iran were held hostage by amendment No. 3842 be withdrawn; gain access to seized assets from ter- that the Judiciary Committee be dis- rorist nations. Our Nation is in a war the Iranian government more than 20 years ago. Those hostages sued the charged from further consideration of against terrorism and this amendment H.R. 3275 and that the Senate proceed provides another tool in the war government of Iran. The Iranian Gov- ernment did not make an appearance to its immediate consideration; that against nations that sponsor terrorism. Senator LEAHY, or his designee, be rec- This amendment requires that com- in the U.S. court to defend themselves, but as iron would have it, lawyers, not ognized to call up the Leahy-Hatch pensation be paid from the blocked as- substitute amendment at the desk; sets of terrorist nations provided that from Iran, were in the U.S. courtroom to defend the interests of government that upon reporting by the clerk, the the American victims of terrorism se- Senate vote on the adoption of the cure a final judgment in our Federal of Iran. Does anybody in this Chamber know amendment; that following adoption of courts. what lawyers were in court defending the amendment, the bill, as amended, Victims of terrorism have many sad the interests of the Iranian govern- be read a third time and the Senate stories, and I want to bring to you at- ment? It was our own Justice Depart- vote on passage of the bill, with no intention the sad plight of a man who ment and the U.S. State Department. tervening action or debate; further, had a residence in New Hampshire dur- How do you think the U.S. hostage felt that upon the disposition of H.R. 3275, ing the toughest time of his life. about the U.S. Government, using tax the Judiciary Committee be discharged In November of 1989, William Van from further consideration of S. 1770; Dorp was sent by his employer from his dollars from these same U.S. hostages, defending the interests of the Iran gov- that the Senate proceed to its consider- home in Kingston, NH to Kuwait City ation; that the Senate consider the to teach the Kuwaiti Air Force ernment. The Washington Post, on October 16, Leahy-Hatch amendment at the desk; English. On August 2, 1990, Kuwait was 2001 reported that: and that upon reporting the amend- invaded by the forces of Saddam Hus- ment, the Senate vote on the adoption sein. U.S. Government lawyers went to Federal court yesterday seeking to vacate a judg- of the amendment; that following the Let me use William Van Dorp’s own ment against Iran in a lawsuit filed by 52 vote, the bill, as amended, be read words to describe what happened: Americans have were held captive in that three times and passed, and the motion On August 4, I heard loud rumblings com- country more than 20 years ago. The timing to reconsider be laid upon the table, all ing from the road and, when I looked out my of the government motion, nearly a year without intervening action or debate; window, I saw seventeen trucks, filled with after the lawsuit was filed and two months further, that any statements relating Iraqi troops, and three tanks driving toward after the judgment was entered, drew sharp to these items be printed in the the beach. It became apparent to me that I criticism from some of the former hostages, was still in the middle of a combat zone and RECORD. who accused the Bush administration of try- The PRESIDING OFFICER. Is there in immediate danger of encountering enemy ing to mute their claims because of the cur- fire. rent conflict in Afghanistan. ‘‘The State De- objection? The Senator from Kansas. William Van Dorp attempted to es- partment and the Justice Department are doing this only to curry favor with Iran at Mr. BROWNBACK. Mr. President, I cape the Iraqis who were rounding up have an amendment I would like to American hostages. Mr. Van Dorp was this juncture of history,’’ said Barry M. Rosen, a former hostage who is now director have considered at some point. I would attempting to leave the Interconti- of public affairs at Columbia University’s like to see it considered. It is a very nental Hotel in Kuwait City. Mr. Van Teachers College. ‘‘I was outraged.’’ narrow issue, and I would like to see if Dorp describes the event as follows: Another former hostage retired Army we can get this in the queue of items. When I reached the lobby, I saw a U.S. Em- Col. Charles W. Scott who had three It is not under consideration. If my col- bassy official yelling at an Iraqi colonel and teeth knocked out during brutal inter- league, the majority leader, can con- trying to convince him not to take the West- erners away. I was being taken into custody rogations, said, ‘‘In combat, you have a sider it, I would like to be able to put by heavily armed Iraqi soldiers. Later that weapon and can fight back. Here, we it forward. If not, I believe I will need evening I was packed into a military truck were defenseless and brutalized. For to object to proceeding under this with roughly 23 American citizens and trans- the first time I understood what the unanimous consent request.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5512 CONGRESSIONAL RECORD — SENATE June 13, 2002 Mr. DASCHLE. I ask unanimous con- Senator from anyplace can offer any to get the floor, as people maybe would sent that the Senator from Kansas be amendment they want. say, well, we do not want to consider recognized to offer his amendment fol- The PRESIDING OFFICER. The mathis at this particular time. I want to lowing the disposition of the amend- jority leader. make sure we can. ment offered by the Senator from Vir- Mr. DASCHLE. Mr. President, I will Unfortunately for me, I will not be ginia. renew my request in a moment. I do present tomorrow. As many of my col- The PRESIDING OFFICER. Is there not know that any Senator can be de- leagues know, we have had in the Phil- objection? nied the right to offer an amendment ippines the death of a Kansan who is Mr. DODD. Reserving the right to ob- as long as cloture has not been filed being buried tomorrow, Mr. Burnham, ject, may I inquire of the substance of and achieved. It is not my desire now and I will be at that funeral tomorrow the amendment of the Senator from to file cloture. At some point, if we morning. But I want to make sure this Kansas? cannot bring this debate to a conclu- issue can come up and can be heard be- Mr. BROWNBACK. It is an issue on sion, I will be forced to do so. Until fore the end of this bill. I do not think patenting, and it is an issue that I that time, of course, the Senator has that is an inappropriate request. think is a very important one for us to every right to come to the floor to I renew the request that I be allowed consider. I want to bring it up and offer an amendment. to bring up this amendment sometime press it. It is a narrow one. I think we We are going to be in session tomor- during the pendency of this bill. I ask ought to consider it. I would like to row and on Monday, even though there unanimous consent that I be allowed to offer it. are no votes on Monday. So I hope Sen- do so. Mr. DODD. Further reserving the ators will use that time to come to the The PRESIDING OFFICER. Does the right to object, is this the cloning floor to offer what I would hope will be majority leader so modify his request? Mr. DASCHLE. I did not understand amendment? relevant amendments. the request. I have not modified my re- Mr. BROWNBACK. It is patenting of We certainly cannot prohibit the human beings. It is the issue of pat- quest. Senator from offering other legisla- The PRESIDING OFFICER. The ma- enting of humans which I would like to tion. So I would renew my request. jority leader made a unanimous con- put forward at this time. The PRESIDING OFFICER. Is there sent request to which the objection was Mr. DODD. Mr. President, with all objection? heard from the Senator from Kansas. due respect, as someone trying to man- Mr. BROWNBACK. Reserving the So the question is, Will the majority age a bill, I regretfully object to con- right to object. leader modify his unanimous consent sideration of that amendment at this The PRESIDING OFFICER. The Sen- request to include the unanimous con- point. I am trying to deal with the sub- ator from Kansas. sent request of the Senator from Kan- ject matter at hand. It is going to be Mr. BROWNBACK. I would like to sas? impossible—— make sure I do get an opportunity to Mr. DASCHLE. Mr. President, as I Mr. BROWNBACK. I must object. bring this issue forward, so I ask unan- said, that does not require a unani- The PRESIDING OFFICER. Objec- imous consent that before the conclu- mous consent request, but I would not tion is heard. sion of this bill I have the opportunity object to the request made by the Sen- The Senator from Nevada. to put forward and have this amend- ator from Kansas. Mr. REID. Mr. President, while the ment considered. The PRESIDING OFFICER. Is there majority leader is in the Chamber, we The PRESIDING OFFICER. Will the objection? have worked now for several hours to majority leader so modify his request? Mr. DODD. Reserving the right to ob- get a vote for Senator SANTORUM. I The Senator from Nevada. ject. cannot understand why the Senator Mr. REID. Could the Senator do this The PRESIDING OFFICER. The Sen- from Kansas would prevent us from tomorrow morning or Monday? ator from Connecticut. having this vote. He has an oppor- Mr. BROWNBACK. All I am doing is Mr. DODD. My concern is we are pro- tunity on this legislation at a subse- asking unanimous consent that I be al- viding the Senator from Kansas some- quent time to offer an amendment. No lowed to offer this amendment something that has been provided to no one one can stop him from offering an time during the pendency of this bill. else. We could have every Member de- amendment. Mr. REID. Reclaiming my time. mand a unanimous consent on totally I think the majority leader will an- The PRESIDING OFFICER. The Sen- irrelevant amendments to this bill. If nounce shortly that there will be ator from Nevada. we go down that road and if the Sen- ample opportunity tomorrow and Mon- Mr. REID. That seems somewhat un- ator wants to kill this bill, that is fine, day to offer amendments. So I do not fair. We have all day Friday, all day filibuster the bill, but to bring up to- know why the Senator from Kansas Monday. Anytime before the end of the tally extraneous amendments, it seems would hold up a vote that the Senator bill could be a long time from now. to me, is unwarranted. from Pennsylvania has been trying to Several Senators addressed the I have talked a number of our col- get for several hours. Chair. leagues out of offering amendments I also say to the leader that while he The PRESIDING OFFICER. The ma- that had nothing to do with this bill, was proffering his unanimous consent jority leader has the floor. no matter how meritorious their pro- request, the Senator from Virginia said Mr. DASCHLE. Mr. President, the posals. Certainly, the majority leader he would have no problem voting on his Senator does not need that consent. He has indicated the Senator has the right amendment tomorrow morning. That can offer that amendment, as the Sen- precloture to bring up an amendment. will give anyone who has any objection ator from Nevada has noted, tomorrow, Cloture has not been invoked. If we can to the amendment of the Senator from Monday, or any day. That does not remove this bill along, there is no reason Virginia the chance to speak tonight quire a unanimous consent. I have no for it to be invoked, but to cut out one for as long as they want. We can set objection to his request, but it does not exception for one Member to make a this up following the vote on the take a unanimous consent. He is enti- unanimous consent request, after I Santorum amendment, whatever we tled to that until cloture is obtained. If have talked other people out of it, I do want to call it, the one on which we cloture were invoked, he would prob- not think is terribly fair. asked unanimous consent. ably be denied the right. We are not an- I urge my colleague from Kansas to I ask the Senator from Kansas to ticipating a cloture vote, at least in withdraw the request. If we can agree kindly reconsider allowing us to vote the foreseeable future. So the Senator to move this bill along, we are dealing, on the Santorum amendment and, fol- is certainly entitled to his right to then, with the Santorum amendment lowing that, vote on the amendment of offer this amendment whenever he tomorrow. We have tomorrow, next the Senator from Virginia, and then chooses. Monday, next Tuesday. We can spend the floor is open and anybody can offer The PRESIDING OFFICER. The Sen- all next week on this bill if Members an amendment. The Senator from Kan- ator from Kansas. are so inclined. sas or the Senator from Pennsylvania Mr. BROWNBACK. Mr. President, I The PRESIDING OFFICER. The ma- can offer another amendment, or the have had difficulty at times being able jority leader.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5513 Mr. DASCHLE. Mr. President, let me The PRESIDING OFFICER. If that is Santorum amendment, I refer to the reiterate something I think everybody the intent of the unanimous consent legislation as it was referred to in the understands. Obviously, the consider- request, then it would be in order. unanimous consent request. It is more ation of an amendment does not mean The Senator from Virginia. than an amendment. It is now a free- the disposal or the resolution of the Mr. ALLEN. Mr. President, if I may standing bill under the request. I think issue. The Senator is only asking for ask the distinguished majority leader a all of my colleagues understood that, consideration of the amendment. It question, so I understand the procedure but I want to ensure that people know could be second-degreed. It could be de- as he originally outlined it. May I in- that would be the order of business to- bated. I do not know that he has asked quire as to when the vote on my morrow morning. that it be brought to some final conclu- amendment would occur? As far as I With this request, there will be no sion. am concerned, the amendment having further rollcall votes tonight. I will say this: If cloture is invoked, to do with getting after terrorist assets Mr. President, I ask further unani- if the amendment has not been dis- for those who obtain judgments in this mous consent that no amendments be posed of and it is not a germane country has broad bipartisan support. in order to the Allen amendment prior amendment, then it would fall, but Is there any reason why we could not to the vote on the Allen amendment that certainly would not disallow the vote on that tonight or, in accommoda- tomorrow morning. consideration of an amendment. So, tion to a lot of people who will be gone, The PRESIDING OFFICER. Without again, I would pursue my request. vote on it on Tuesday? objection, it is so ordered. Mr. DODD. Will the majority leader Mr. DASCHLE. Mr. President, I was Mr. DASCHLE. Mr. President, if yield for 1 minute? entertaining the possibility of voting there are no Senators wishing to be Mr. BROWNBACK. If the Senator on the Allen amendment, as well as on recognized, I have a statement to will yield, I think I have perhaps a so- the Santorum amendment, tomorrow make, for which I will use leader time, lution. morning. If the discussion of the with regard to the Middle East. The PRESIDING OFFICER. The Sen- amendment has been completed, we The PRESIDING OFFICER. The Sen- ator from Kansas. could lay it aside temporarily to allow ator is recognized. the Brownback amendment to be laid Mr. BROWNBACK. I ask the amend- f ment I have be considered after the down and then return to the Allen Allen amendment tonight. I am pre- amendment tomorrow morning. That THE MIDDLE EAST pared to put it forward this evening, if would be fine with me. I will say that Mr. DASCHLE. Mr. President, too it would be acceptable to the leader to this will generate other amendments. often, the crush of daily business here do that. The Brownback amendment will not be in the Senate leaves us little time to Mr. GRAMM. Will the distinguished the only amendment offered. discuss important issues that are not majority leader yield? Mr. ALLEN. All right. directly and immediately before us. Mr. BROWNBACK. We will then be Mr. DASCHLE. I would be happy to Among the many issues that deserve able to dispose of the Allen amendment yield. greater attention, none is more impor- The PRESIDING OFFICER. The Sen- tomorrow morning. So I have no res- tant than the need for peace in the ator from Texas. ervations or objections to doing that if Middle East, and the security of our Mr. GRAMM. I am hopeful that at our colleagues would be interested in friend and ally, Israel. The urgency and some point we are going to work out a taking that approach. importance of this issue couldn’t be The PRESIDING OFFICER. The Sen- compromise and move this bill for- more stark. In this past week alone, a ator from Virginia. suicide bomber—the 68th in the last 21 ward. It seems to me the position we Mr. ALLEN. A further inquiry of our months—blew up a fast food restaurant are in is we want to set this vote up for leader. The point is, as I understand it, in Israel, killing a 15-year-old girl. An- tomorrow. The Senator has the right to at some point tomorrow morning the other bomb, placed near a road near object to doing that, pending getting earliest vote would be a vote on the Hebron, injured three Israeli teenagers. the opportunity guaranteed that he Santorum amendment. Let us assume A third bomb, detonated next to a bus can offer his amendment. If he is here— the vote on the Santorum amendment outside Tel Aviv, killed 17 Israelis. A and he has this problem with this fu- is at 9 or 9:30. Thereafter, say 10 min- fourth attack—this one with guns, not neral apparently—no one can prevent utes later, there would be a vote on my bombs—killed a pregnant mother. Less him from doing it. I am hopeful if we amendment tomorrow morning? work out a compromise that we might Mr. DASCHLE. Mr. President, we than a week: three bombs; several at- talk him out of offering the amend- have not propounded the request, but it tacks. The targets in each—civilians: ment. So I think we should accept the would be my intention to vote on it im- fathers, mothers, teenagers, young amended unanimous consent request of mediately after the disposition of the children. the majority leader. I do not see that Santorum amendment. Given the steady stream of terrorist we are giving him anything that he Mr. ALLEN. I have no objection. acts, the historic enmity between the would not have if we were not here. It The PRESIDING OFFICER. The ma- parties, and the stakes involved, the seems to me, pending trying to work jority leader. situation could hardly be more dif- out a compromise, that we would be Mr. DASCHLE. If there is no dis- ficult. But we cannot turn our backs or better off not having it offered tonight. agreement, I would then again amend allow the specter of violence to dimin- He could offer it as a second-degree my request in the following manner: In ish our commitment. Our unique rela- amendment tonight—it is perfectly addition to the request as it was origi- tionship with Israel, and the strategic within the rules—by objecting to set- nally propounded, I ask that we vote importance of the Middle East, demand ting up the vote for tomorrow. So I on the Allen amendment immediately that the United States play a leading think the logical thing to do is to take following the disposition of the role in helping to end the current cri- the majority leader’s proposal. Santorum amendment tomorrow morn- sis. Mr. DODD. Will the majority leader ing. I would further ask that the Allen The President recognizes this dy- yield for one question? amendment be set aside to accommo- namic, and has spoken out forcefully Mr. DASCHLE. Yes. date the amendment to be offered by on the importance of the leaders in the Mr. DODD. I would make a par- the Senator from Kansas, and that region taking steps to end the violence. liamentary inquiry. If there is a unani- amendment be the pending business There can be no mistaking the indigna- mous consent request which is agreed this evening; that we return to the tion he feels about what is happening to, for the consideration of an amend- Santorum amendment tomorrow morn- in Israel or his appreciation for the ment that would otherwise fail in a ing, to be followed then by the Allen strategic importance of the entire re- postcloture environment, does that amendment, after its disposition. gion to our national security. In fact, amendment still prevail if cloture is The PRESIDING OFFICER. Without he and his team have undertaken an ef- invoked? Or at least will that amend- objection, it is so ordered. fort to sound out leaders in the region ment be considered without being vio- Mr. DASCHLE. Mr. President, just in order to fashion a new way forward. lative of the rules of cloture? for clarification, when I refer to the I understand that as early as next week

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5514 CONGRESSIONAL RECORD — SENATE June 13, 2002 he will outline the results of those ef- has time and again taken risks for The PRESIDING OFFICER. The forts. Like all Americans, I am eager peace. Rabin did it at Oslo, Netanyahu clerk will report. to hear the President’s plan. at Wye, and Barak at Camp David. And The assistant legislative clerk read If there is one message in our success earlier this week, in this very building, as follows: so far in the global war on terrorism it Prime Minister Sharon made it clear The Senator from Kansas [Mr. BROWNBACK] is this: When we stand together, ter- he would be willing to make the sac- proposes an amendment numbered 3843: rorism cannot win. Right now, at this rifices necessary to add his name to At the appropriate place add the following: very moment, Afghanistan’s new lead- this distinguished list of warriors who SEC. ll. UNPATENTABILITY OF HUMAN ORGA- NISMS. ers are meeting in Kabul to choose a fought for peace, if he is convinced Section 101 of title 35, United States Code, new government, a government that there is a committed partner on the is amended— will represent Afghans of all ethnic other side of the peace table. (1) by inserting ‘‘(a) IN GENERAL.—’’ before backgrounds. They are sending a mes- The third and final principle is this: ‘‘Whoever’’; and sage of hope that the Taliban and al- America’s commitment to peace in the (2) by adding at the end the following: Qaida never could: Terrorists can only Middle East must be clear and con- ‘‘(b) UNPATENTABILITY OF HUMAN ORGA- NISMS.— destroy, democracies build. We want sistent. It must never wane. President Harry Truman recognized Israel as a ‘‘(1) DEFINITION.—In this subsection, the the Palestinian people to know that if term ‘human cloning’ means human asexual their leaders will take the necessary valued ally 6 minutes after Israel was created. Every American President reproduction, accomplished by introducing steps to end the violence in their re- nuclear material from one or more human gion, we are ready to build in the West since Harry Truman has known that somatic cells into a fertilized or unfertilized Bank and Gaza too. the best hope for peace and positive re- oocyte whose nuclear material has been re- This afternoon I want to talk briefly form in the region lies in sustained and moved or inactivated so as to produce a liv- about three principles that I believe decisive American engagement. ing organism (at any stage of development) should guide our efforts to help bring Every President since Harry Truman that is genetically virtually identical to an has made such engagement a corner- existing or previously existing human orga- security, stability, and, ultimately, stone of American foreign policy. The nism. peace to this troubled region. current violence in the Middle East ‘‘(2) UNPATENTABILITY.—A patent may not First, after 68 homicide bombings, be obtained for— the debate over whether Chairman does not diminish the importance of U.S. engagement, it increases it. If ‘‘(A) an organism of the human species at Arafat is unable or unwilling to stop any stage of development produced by any there is to be any lasting peace, any terrorism is unproductive and irrele- method, whether in vitro or in vivo, includ- chance for regional stability, Israel vant. It is no longer important. What ing the zygote, embryo, fetus, child or adult; must be secure enough to make peace matters is that Chairman Arafat has ‘‘(B) a living organism made by human and strong enough to enforce it. That clearly and consistently failed the test cloning; or is a commitment the United States has ‘‘(C) a process of human cloning.’’. of leadership. If Chairman Arafat made—and will keep. But there is an- The PRESIDING OFFICER (Ms. would take consistent, decisive actions other commitment we must honor as against terrorist violence, cir- CANTWELL). The Senator from Kansas. well, and that is our commitment to Mr. BROWNBACK. Madam President, cumstances would be different. But he stand by Israel when she takes risks we are going to open a debate in the has been unwilling to exercise this for peace, and stand with all parties U.S. Senate on the future of humanity. basic authority that is required of his who embrace peace as their goal— I asked the clerk to read the entirety office and required by the agreements Israelis and Palestinians. of the amendment because I wanted he has signed and the commitments he The United States is, and will re- people to know what is pending now. has made on behalf of the Palestinian main, Israel’s best friend. We are also The issue is a very narrow and a very people. He has undermined his own the best hope for bringing all of the clear one. It is about whether or not we credibility as the leader of the Pales- parties in the region together at the allow the patenting of people. tinian people. peace table. No other country in the This is an issue that is pending. The second principle that should world is in a better position to facili- There are at least three different pat- guide our efforts is this: Words alone tate a dialog. We must remain actively ents in front of the Patent Office. The are not enough. Reform demands re- and consistently engaged in the search issue of whether you can patent human sults. Saudi Arabia, Egypt, and Jordan for peace. We do not, for one minute, life or the process of creating human are all pushing for reforms of the Pal- underestimate the difficulty of this life is a question that is a live one in estinian Authority. Their efforts are task. The challenges, and the risks, are front of our Government, in front of commendable. Unfortunately, their de- enormous. But the probable cost of our people. As I mentioned, there are mands—and the demands of the Pales- doing nothing or vacillating from our three pending today. There are likely tinian people—seem to be falling on historic course is far greater. It is too to be many more. deaf ears. Chairman Arafat has put a great a price to even consider. This is a narrow subsection of the figurehead in control of the security I suggest the absence of a quorum. overall issue on human cloning. This is services, leaving the power in his own The PRESIDING OFFICER. The not the issue about a moratorium on hands. He signed the Basic Law but has clerk will call the roll. cloning. It is not the issue about a ban The assistant legislative clerk pro- done nothing to implement it. He on human cloning. It is not the issue ceeded to call the roll. added five new faces to his Cabinet, about therapeutic cloning. This is none of whom has the power to affect Mr. BROWNBACK. Mr. President, I ask unanimous consent the order for about whether or not we as a govern- real change. And he announced new the quorum call be rescinded. ment will allow a person, a human in elections but set no date for them. The PRESIDING OFFICER. Without any stage or age of its development and It is time to demand results, begin- objection, it is so ordered. growth, to be patented. ning with a democratic Palestinian Currently, the Patent Office is reject- leadership that confronts corruption f ing these patents, saying they have and provides security for the Pales- TERRORISM RISK INSURANCE ACT that authority under the 13th amend- tinian people and their neighbors. We OF 2002—Continued ment to the Constitution. That is the want the Palestinian people to know: Mr. BROWNBACK. Mr. President, I amendment that bans slavery. I happen Such changes will garner support—in ask unanimous consent the pending to think the Patent Office is on good this country and in this Congress. amendment be set aside. ground to be able to say that they can- America’s people and political institu- The PRESIDING OFFICER. Without not allow these patents because this tions will help rebuild the West Bank objection, it is so ordered. would be slavery. and repair the infrastructure of Pales- AMENDMENT NO. 3843 There are others who are contending tinian society when the Palestinian (Purpose: To prohibit the patentability of that the young human at various leadership rejects violence and moves human organisms, and for other purposes) stages—an embryo—is not a person, toward real, democratic reform. Such Mr. BROWNBACK. Under the pre- therefore is patentable; that a person leadership, I am convinced, will also vious unanimous consent agreement, I can be patented because it is a piece of find a willing partner in Israel, which send an amendment to the desk. property. It is, in essence, livestock.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5515 It is alive, we know that. But they bryo is a life. But some question it very well—we should not be creating would contend or say that it is not a whether it is a life or a person. life just to destroy it or do research on person, so therefore we are putting this Clearly, the human embryo—whether it. forward to make it clear to the Patent brought into being in a woman, wheth- Some in the Senate don’t want a full Office, for the people of America, the er artificially created in a test tube by ban. They want a limited ban—what people around the world, that you can’t fertilization, or by cloning—is seen by they refer to as ‘‘preproductive patent a person at any stage or age of observation to be a new being of human cloning,’’ but not on so-called research its development and growth. That is genetic constitution and a unified life or therapeutic cloning. the entirety of the amendment. The principle that in all normal cir- All cloning is, of course, reproduc- clerk read the entire amendment. cumstances of implementation and de- tive; that is, all human cloning pro- Ultimately, the question that will be velopment will grow into an adult who duces new human life. That is the very put before this Senate and this coun- will one day die. Because we call the nature of it. If you produce a human try, indeed the world, will be this: adult a human person and because clone, it is a young human something. Shall we use human life for research there is an essential, unified, biological It is a human person; it is a human life. purposes? Shall we use human life for continuity between him or her—by If you allow it to grow, it is not going commercial purposes? We are taking that I mean once you are alive you to grow into an elephant or a tomato. this as a narrow issue now on the issue grow along that continuum until you It is going to grow into a human, if you of patentability. die—and the initial one-celled embryo, allow it to grow. In this debate we will have to answer it is clear that the one-celled embryo is I think the notion that human whether or not the young human at his an inviolable human person. cloning can be therapeutic is both mis- or her earliest moments of life is a per- If you allow it to survive and to leading and disingenuous. ‘‘Thera- son or is a piece of property. That is grow, it becomes a full-scale human peutic’’ cloning, as some proponents of the narrow and the focused issue that being under anybody’s definition. As cloning refer to it, is really the process is in front of us. some have attempted to discount this by which an embryo is specially cre- Cloning proponents will argue that clear understanding of the biological ated for the directly intended purpose the young human is a piece of property continuity of the human person in of subsequently killing it for its parts. that can be created or destroyed at the order to justify some human experi- Some proponents of human cloning whims of society for the benefit of oth- mentation in some circumstances, I claim an embryo created in this man- ers. I will argue that the young human note that the people who support this ner will have cells for a genetic match is a person; that it is wrong to treat are supporting it for reasons that are to the patient being cloned and thus another person as a piece of property very good, true, altruistic, to try to would not be subjected to the patient’s that can be bought and sold, created find cures for others’ debilitating, ter- immune system. I will address this issue of transplantation rejection later. and destroyed, all at the will of those rible diseases, for which I want to find Let me say that this particular claim in power. a cure. But I don’t want to find that I think we all understand that human is not scientifically true. cure at the cost of somebody else’s life. To describe the process of destructive cloning is an issue of vast importance I don’t want to find that cure at the human cloning as ‘‘therapeutic’’ when to our society and for humanity. This cost of my life or Senator SPECTER’s the intent is to create a new human issue, unlike others, reveals the value life or Senator REID’s life or at the cost life destined to its virtual destruction we hold and the worth we place on of anybody else—or young people yet is misleading. However, one would like human life. It is a decision that one to come and to be born. That is why I to describe the process of destructive generation of mankind will be making believe we should start with some basic cloning, it is certainly not therapeutic for all future generations of mankind. definitions. for the clone that has been created and I would also argue it is an issue that Human cloning is human asexual re- them disemboweled for the purported will determine what kind of future we production. It is accomplished by in- benefit of its twin. will give to our children and grand- troducing nuclear material from one or All human cloning is reproductive, children and their children and their more human somatic cells into a fer- regardless of the intention of the re- children’s children. The essential ques- tilized or unfertilized oocyte whose nu- searchers and the technicians who have tion is whether or not we will allow clear material has been removed or in- created that life or copied it. human beings to produce, to pre- activated so as to produce a human liv- I do not believe we should create ordained specifications for eventual ing being—at any stage of develop- human life to be used by others and, in implantation or destruction, dependent ment—that is genetically virtually the process, destroy it. Yet that is ex- upon the intentions of the technicians identical to an existing or previously actly what is being proposed by those who create them; whether or not we existing human being—the human who support cloning in limited cir- will allow life to be created just to be being from whom the nuclear material cumstances. And however they might destroyed and researched upon. was taken. name the procedure—whether they call The question and its corollary must In essence, if we take nuclear mate- it nuclear transplantation, therapeutic be addressed before the technology rial from the Presiding Officer or from cloning, therapeutic cellular transfer, overtakes our public discourse. Indeed, myself and put it inside an egg and DNA regenerative therapy, or some today we have many of these capacities start the egg growing, there is a human other euphemism—it is simply destruc- to do this to us now. We are doing it to of identical genetic material to me, to tion. animals and mammals. We can do this the Presiding Officer, and to anybody The cloning of a human embryo is in humans. The question is, Should we else in this room. wrong in all circumstances, whatever do this? Is it right for us to do this? Is Roughly, the debate over human it is called. Human cloning is wrong. it the point in time that we want to cloning has fallen into two categories, Yet proponents of so-called therapeutic make this decision to do this? Do we misleading as those categories may be: cloning claim that with the use of this want to make this decision for all fu- reproductive cloning and so-called re- controversial technique we will be able ture mankind or do we want to pause? search or therapeutic cloning. to cure a whole host of dread diseases Do we want to stop here for just a mo- Two-thirds of the American public, that plague humanity—diseases that I ment and say, Wait? We should really the President of the United States, a want to cure, diseases that I helped think about such a monumental step large majority of the House of Rep- double the funding for at the National and such a monumental move. resentatives, Senator LANDRIEU, and Institutes. I am cochairman of the can- I would like to begin by making a few myself hold the position that all cer caucus in the Senate. I want to see observations. human cloning should be banned. It is these cured. Cancer runs in my family. First, as we debate the issue, we need a position based in large part on the I want to see these things cured, but to debate the science along with the bi- principle that you should not create not at the cost of other people’s lives. ological reality of the human embryo human life as a means of something I wish to take a minute to explain from his or her earliest moments of else, especially purposely to destroy it, why some of the claims of those who life. We all know that the human em- the point being—and the President put support cloning are overhyped.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5516 CONGRESSIONAL RECORD — SENATE June 13, 2002 First, the argument that so-called that even genetically matched cells de- Everybody agreed, at that time, it therapeutic cloning will solve the rived by therapeutic cloning may still seemed, that we were going to ban immuno-response rejection problem is face barriers to effective transplan- cloning. But now, as some of the re- questionable. tation.’’ search has gone forward, people are Second, the reliance on this type of This is one of the leading advocates starting to say: You know what. Now cloning as a treatment for those who who is saying, early on, we don’t get we are just going to do therapeutic are suffering will ultimately only be around immuno-suppressant problems, cloning. We are not going to do repro- realized by heavily relying on the ex- one of the leading claims of the cloning ductive cloning. ploitation of women. advocates. Well, as the Senator from Kansas has We should also not forget that this In addition, it is now known that pointed out, we are not dealing with practice would be available only to the there are problems with gene expres- just therapeutic cloning. It is all repro- rich. sion and gene imprinting that can ductive cloning. Dolly was produced by First, the myth of therapeutic cause cell deterioration as well as the same technology that therapeutic cloning: It is becoming increasingly ob- other abnormalities in the clonal em- cloning will be produced from. It is the vious that the so-called therapeutic bryos. same, exact technology. It is cloning. purposes lack the evidence to back up Also, there are practical consider- You can call it by any name you their claims for the purpose of their ations, considerations that have led want to call it, but it is cloning. I know there are other Senators who technique of supposedly a ‘‘regenera- many of the advocates of cloning to want to talk tonight, so I will not talk tive’’ type of medicine. concede the impracticality of efforts to too much more on this. The promise that some have held out custom make stem cells. That is what But, Madam President, I send a sec- that the use of cloning technologies cloning is really about: Custom making ond-degree amendment to the desk and stem cells for me, the Senator from Ne- produce rejection-proof cells is starting ask for its immediate consideration. to crumble under closer scrutiny. vada, the Senator from Washington, The PRESIDING OFFICER. The This is the argument. If we just clone and others. It is saying: OK, we are clerk will report the amendment. a person, they will have cells that are going to make some cells just for me. The legislative clerk read as follows: genetic matches and you will be able to These are going to be custom made to The Senator from Nevada [Mr. ENSIGN] put those back into your body and the fit what I need. proposes an amendment numbered 3844 to body itself will not reject them because In an article by Peter Aldhous, enti- amendment No. 3843. it is saying these are my cells. It would tled ‘‘Can They Rebuild Us?’’, pub- Mr. ENSIGN. Madam President, I ask get around this immune-repressive lished in Nature Magazine, the author unanimous consent reading of the amend- problem we have with heart transfers notes that: ment be dispensed with. or other organs or tissue transfers that [I]t may come as a surprise that many ex- The PRESIDING OFFICER. Without have immuno-repressive problems. The perts do not now expect therapeutic cloning objection, it is so ordered. problem is that under closer scrutiny, to have a large clinical impact—many re- The amendment is as follows: cloning does not work that well. searchers have come to doubt whether thera- (Purpose: To prohibit the patentability of We know that cells derived from clo- peutic cloning will ever be efficient enough human organisms, and for other purposes) to be commercially viable. It would be astro- Strike all after the first word and insert nal embryos created for the purpose of nomically expensive, says James Thomson of stem cell transplantation contain the following: the University of Wisconsin in Madison, who UNPATENTABILITY OF HUMAN ORGANISMS. mitochondrial DNA—that DNA passed led the team that first isolated E[mbryonic] Section 101 of title 35, United States Code, through the maternal contribution to S[tem] cells from human blastocysts. is amended— the zygote. For the advantage of my colleagues, (1) by inserting ‘‘(a) IN GENERAL.—’’ before In other words, this is from outside I yield the floor so that colleagues can ‘‘Whoever’’; and the genetic material. To say the Pre- take advantage of some of their time. (2) by adding at the end the following: siding Officer provided it encased in I yield to the Senator from Nevada. ‘‘(b) UNPATENTABILITY OF HUMAN ORGA- NISMS.— mitochondrial material that is from a The PRESIDING OFFICER. The Sen- ‘‘(1) DEFINITION.—In this subsection, the different person, it is a different per- ator from Nevada. term ‘human cloning’ means human asexual son. Therefore, it is not genetically AMENDMENT NO. 3844 reproduction, accomplished by introducing identical to the donor/recipient. This Mr. ENSIGN. Madam President, I rise nuclear material from one or more human nonidentity can trigger an immune-re- to speak on behalf of the amendment of somatic cells into a fertilized or unfertilized sponse rejection. the Senator from Kansas. oocyte whose nuclear material has been re- If you take an outside egg, take your We deal with issues around this body moved or inactivated so as to produce a liv- genetic material, put it in this egg and often. We deal with issues that, frank- ing organism (at any stage of development) that is genetically virtually identical to an grow the cells up to a certain age, and ly, sometimes don’t seem very impor- kill this embryo for those cells, then existing or previously existing human orga- tant. But this issue is an issue of crit- nism. you put it back in you, the problem is ical importance. This issue is really ‘‘(2) UNPATENTABILITY.—A patent may not the egg isn’t your matching genetic what the human species is all about. be obtained for— material. Some of that carries over to I am a veterinarian by profession. I ‘‘(A) an organism of the human species at the characteristic of this genetic mate- have studied embryology, as all veteri- any stage of development produced by any rial of test cells that you are putting nary students do, as all medical stu- method, whether in vitro or in vivo, includ- into your body. It still triggers the im- dents do. We study it in detail. As a ing the zygote, embryo, fetus, child or adult; mune-response problem. That is one matter of fact, we study it in species ‘‘(B) a living organism made by human problem. cloning; or after species. ‘‘(C) a process of human cloning.’’. Further, there is not one animal I have studied the cloning of the fa- ‘‘(3) EFFECTIVE DATE.—This section shall model that shows this is not the case. mous Dolly clone that we are all famil- become effective 30 days after the date of en- In other words, we don’t have an ani- iar with, Dolly the sheep. When that actment.’’ mal model that says if you just clone a first happened, there was something Mr. ENSIGN. Madam President, the person you can inject it right back into very disturbing that went off in my issue of human patenting in this whole the person. We don’t have a single ani- brain. It was not because of the cloning issue of cloning. And the whole cloning mal model that says we get around this of an animal, it was because cloning debate is really an egregious one be- problem—none. Yet we are going to put people in the future. cause the idea of being able to patent a move forward on this theory that this When Dolly was first announced, ev- human being or the making of a human works when we don’t even have a single erybody said: No, we cannot clone peo- being is probably one of the most egre- model that that works? ple. We will never go there. gious parts of this whole issue. In fact, Dr. Rudolph Jaenisch, one of Last year, during the whole issue This really is a time when we are the leading vocal proponents of cloning dealing with embryos that people were confronting a brave new world. The admits that his study into the thera- talking about, they were saying: No. prospect of people in corporate Amer- peutic value of cloning in animal mod- You know what. We will not have ica owning people and trading and buy- els ‘‘raise[s] the provocative possibility cloning. We will ban cloning. ing and selling people as if they were

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5517 property is something that should give velopment moving along. You are talk- the people who suffer from one of these us all a chill. ing about a very inefficient process, diseases, based on these assumptions it So, Madam President, I think all of and one where you have to have a lot of would take 800 million human eggs to us should support the Senator’s amend- women superovulating, collecting treat just 16 percent of the Americans ment, and the second-degree amend- these eggs so we can get more of these who suffer from conditions for which ment as well. clones going. At what price to women? these therapies involving embryonic Madam President, I yield the floor. At what price to humanity? stem cells have been promised, to be The PRESIDING OFFICER. The Sen- Also, in a recent LA Times inter- able to address the treatments needed ator from Kansas. view—this is from May 10, 2002, about a for just 16 percent of Americans suf- AMENDMENT NO. 3843 month ago—Thomas Okarma of Geron fering. Mr. BROWNBACK. Madam President, Corporation said that cloning for cus- I am just saying, only the rich can I want to proceed to the discussion of tomized stem cell treatments would afford this. It is going to be very expen- this issue on the overall patenting be- take, ‘‘thousands of [human] eggs on sive. Let’s just say the top 16 percent of cause that is the narrow issue on which an assembly line’’ to produce a custom those who suffer can afford to do this. we are focused and it ties in, very therapy for a single person. He says, We will be able to treat those. With closely, with this issue of cloning. ‘‘This proceeds as a non-starter com- current knowledge and our ability, and I was mentioning the Nature Maga- mercially.’’ The odds favoring success even including a factor of favorability, zine article about whether this will ‘‘are vanishingly small.’’ He said this. saying we will be able to get this done work because the issue of patents will He is one of the lead researchers from efficiently from being a human egg to be that people are seeking to create Geron Corporation. The possibilities of being a clone, because you to have these humans, and then own them success ‘‘are vanishingly small.’’ Yet make that transition, you will need 800 through the patenting process; that we want to take this step for humanity million eggs from women. Where are people will research and invest com- on the science where the science says you going to get those? If 10 eggs are mercially in them. It should really the opportunities, the possibilities ‘‘are harvested per woman, then 80 million send a chill through all of us. vanishingly small’’? We want to go women of child-bearing age would have I think the question one should be ahead and step forward and say: Yes, to submit to the risk of drugs and asking, even ahead of that, is: Will this we should do research, we should pat- hyperovulation and surgical extraction even work? If we are going to allow ent people on an opportunity that is procedures, providing the eggs that this to take place, one might advocate, ‘‘vanishingly small’’? would be needed to develop therapies well, OK, this is going to work and cre- That is not a wise step to take on the for just a fraction, 16 percent of those ate all these cures for diseases; there- science of it, let alone how you view who are suffering from these condi- fore, maybe we ought to risk this to the human person, whether or not you tions. humanity. should allow patenting of people on the The egg dearth is a mathematical I say, even on the science of this, the science of it. It argues we should not. certainty and is one reason researchers very basic science of this, the science This leads me to my second point say therapeutic cloning will not be says this isn’t going to work either, so which is, in order to be effective, thera- generally available for medical treat- that we would be subjecting humanity peutic cloning must rely on the exploi- ment. to the notion that you can patent peo- tation of women and the practice will For example, a year ago biotech re- ple, when it does not even work. And it be available only to the rich. This prac- searchers Jon Odorico, Dan Kaufman, is not going to proceed. tice will have to rely upon the exploi- and James Thompson admitted the fol- Here is the quote I was talking about tation of women and will be available lowing in the research journal Stem by Peter Aldhous, entitled ‘‘Can They only to the rich. Aside from being high- Cells. They said: The poor availability Rebuild Us?’’ in Nature Magazine, ly impractical, the claim that thera- of human eggs, the low efficiency of dated April 5, 2001: peutic cloning will lead to cures is one the nuclear cell procedure, and the It may come as a surprise that many ex- that can ultimately only be realized long population-doubling time of perts do not now expect therapeutic cloning with the blatant exploitation of human embryonic stem cells make it to have a large clinical impact—many re- women. difficult to envision this, therapeutic searchers have come to doubt whether thera- In order to conduct so-called thera- cloning to obtain stem cells, becoming peutic cloning will ever be efficient enough peutic or research cloning on a scale a routine clinical procedure, even if to be commercially viable. It would be astro- ethical considerations were not a sig- nomically expensive, says James Thomson of that would yield just a portion of the benefits cloning advocates promise, nificant point of contention. the University of Wisconsin in Madison, who James Thompson is the person who led the team that first isolated E[mbryonic] one would need to harvest a vast num- S[tem] cells from human blastocysts. ber of human eggs. The only place you developed the embryonic stem cell, first found those in humans. He is say- The article continues: get those is from women. As noted by Dr. David Prentice, a ing that even if you didn’t have ethical [M]ammalian cloning is inefficient, even in considerations, you will not be able to the hands of the most skilled scientists. Of stem cell researcher at the University the 277 cells from Dolly’s mother that were of Indiana: do this on a regular basis. That is aside fused with donor egg cells— More than 100 million people in the United from the overall issue. That is just the This is 277 eggs. And then because States suffer from medical conditions for science of it. That is not questioning you had to make 277 of these, 277 eggs— which embryonic stem cell therapies are whether a human person should be pat- being promoted as promising—Parkinson’s ented or not. That is the question of less than 30 developed to the blastocyst disease, stroke, multiple sclerosis, spinal stage. whether you could do it, whether you cord injuries, juvenile diabetes, ALS, and have sound science based upon being That is the early stages of develop- more. If 20 percent of cloning attempts suc- able to do it. ment. ceeded in reaching the blastocyst stage of de- Concerns such as these as well as At the time experts believed efficiency velopment—the success rate in animal others have led a group of progressive cloning—and stem cells are derived from 10 would improve. But despite feverish efforts scientists, virtually all of whom sup- by groups worldwide, progress has been dis- percent of these clon[al] embryos—a rate appointing. We don’t at the moment have consistent with such success rates in deriv- port abortion rights, to state in their any real handle on how to greatly increase ing embryonic stem cell lines from non- letter of support for a ban on all the efficiency, admits Alan Coleman of PPL cloned embryos—how many eggs will we human cloning that: Therapeutics near Edinburgh, the company need? Although we may differ in our views re- involved in the Dolly experiments. Based on these assumptions, just his garding reproductive issues, we agree that a So 277 eggs, to get to 30 developed to assumptions, saying OK, let’s take our human embryo should not be cloned for the the blastocyst stage, to eventually get animal models on cloning, that we are specific intention of using it as a resource for medical experimentation or for producing to one Dolly. So 277 to one, that is how going to say we can be just as success- a baby. Moreover, we believe that the mar- many eggs we are going to have to ful with human cloning as we can in ket for women’s eggs that would be created have from women to be able to start our animal models, and we will try to by this research will provide unethical in- these, to be able to get some sort of de- derive stem cells for just 10 percent of centives for women to undergo health-

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5518 CONGRESSIONAL RECORD — SENATE June 13, 2002 threatening hormone treatment and surgery. niques or research which relies on the tes. When you implant it into diabetic We are also concerned about the increased death of another human being. mice, the transformed cells reverse bio-industrialization of life by the scientific As to the adult stem cell area, I want their hyperglycemia in 10 days. community and life science companies, and to spend some time on this because I Ammon Peck, one of the team lead- shocked and dismayed that clonal human embryos have been patented and declared to want to solve these diseases as well. I ers, said: be human ‘‘inventions.’’ think we have an avenue that is being Adult stem cells appear to offer great This is a very real concern. As I am proven in science today that we should promise for the production of an almost un- pursue aggressively, fund aggressively, limited supply of insulin-producing cells and sure many of you are aware, the typ- islets of Langerhans . . . ical in vitro fertilization procedure in- fund at the Federal level, and get these volves a collection of eggs from women cures to the people. A particular type of cell that pro- who seek to become pregnant in this In fact, to date there is no clinical duces insulin. manner. The superovulatory drugs application of embryonic stem cells in The ability to grow insulin-producing cells typically used in this procedure will re- people, much less those derived from from liver stem cells shows the remarkable cloned embryos, that are used with hu- potential of adult stem cells into for future sult in anywhere from 10 to 40 eggs. cell therapy. The use of superovulatory drugs has al- mans, whereas there are many diseases This was in a June 4, 2002, online edi- ready been linked to ovarian cancer already being treated in humans with and other health risks. Some people adult nonembryonic stem cells. We al- tion of Proceedings of the National choose to go ahead with that risk be- ready have human clinical trials with Academy of Sciences. Adult stem cells successfully treat cause of other concerns and desires adult stem cells. Parkinson’s. Think about that—suc- they have. I would like to list just a few of these The market for women’s eggs is not recent advances. I am comparing cessful treatment for Parkinson’s. Has just a fiction. In fact, the market for clones, cloned embryonic stem cells, no the Chair even heard of this? On April women’s eggs has already developed. human trials or applications. It is fully 8, Dr. Mike Levesque at the Cedars- For example, the company Advanced legal today to clone humans in the Sinai Medical Center in Los Angeles Cell Technology of Massachusetts paid United States, fully legal. It has been reported a total reversal of symptoms women up to $4,000 per egg donation. going on; companies are claiming to in the first patient treated, a 57-year- This is the group that claimed already have done it. There are no human ap- old former fighter pilot. The patient is to have cloned human beings in the plications, none. Adult stem cells are still without symptoms 3 years after United States. They paid women up to these repair cells in each of our bod- adult neural stem cells were removed $4,000 per egg donation. There is an- ies—Senator SPECTER’s body, my body, from his brain, coaxed into becoming other issue we should consider: Wheth- right now. We have them in all parts of dopamine-producing cells, and then reer or not we are going to allow compa- our body, these repair cells that go to implanted. So here they took this 57- nies to pay for women’s eggs, to create a particular area and help it build back year-old former fighter pilot, took this marketplace, to allow this mar- up and build more cells where they are these adult neural stem cells, nerve ketplace to take place. needed. It is the maintenance crew in stem cells, removed them from his Such a market for women’s eggs will the body. These adult stem cells go brain, coaxed them into becoming be a true threat to the health of many places and help where there are needs. dopamine-producing cells, and re- women. Women undergoing the health What we are finding is that we can implanted them. This was in a human risks associated with egg donation for pull those out, grow them outside the trial, not animal. the purpose of having children is cer- body, put them back in with amazing ‘‘I think transplantation of the pa- tainly one thing in that they choose results in cures in some of these ter- tient’s own neural stem cells and dif- and the life comes forward. That they rible, debilitating areas. ferentiated dopaminergic neurons is would be induced by some to undergo There was one reported in the paper more biologically and physiologically these health risks for money is another just today about liver stem cells being compatible—more efficacious and more issue. converted into pancreatic stem cells elegant,’’ said Levesque. The results It is striking, as I watch this debate that were insulin secreting to be able show that adult stem cells from a pa- unfold, that corporate interests in the to cure diabetes. That was just re- tient’s own brain can aid in treatment biotech community want us to coun- ported in the paper today. of Parkinson’s. This was all accom- tenance the idea that society will be Adult bone marrow stem cells: These plished without the requirement for able to solve the health care problems are in us now, grow extensively, trans- immuno-suppression since the patient’s of the world on the backs of poor formed into functional liver cells. own adult stem cells were used. Again, women. Asking us to do so is an assault Dr. Catherine Verfaillie’s group in it is your own stem cells. There is no not only on the dignity of the human Minnesota continues to show more and immuno-suppression problem since the embryo created and destroyed in this more uses for the multi-potent adult patient’s own adult stem cells were process but also on the dignity of the progenitor cells from bone marrow. used. In addition to its use for Parkin- woman who sells her body parts to ac- These are adult bone marrow stem son’s, the technique is under study for complish it. cells. The team has now shown that juvenile diabetes, stroke, brain tumors, The commodification of women and these can transform into functional spinal cord injury, and other condi- their eggs is a very real concern that liver cells. The adult stem cells also tions. The results were presented at we all share and is yet another reason were grown in culture for over 100 gen- the meeting of the American Associa- on a long list for why we must outlaw erations of the cells, twice the length tion of Neurological Surgeons. all human cloning and why we must do of time previously thought possible Think about that. Three years after so now. with adult cells. these were taken, were coaxed into be- That is not the issue in front of us This was in a recent journal, May coming dopamine-producing cells and today. The issue today is whether we 2002—adult liver stem cells from pan- were reimplanted, they are showing a should allow patenting of human em- creatic cells. total reversal of symptoms in the pa- bryos, patenting of people. There are Researchers at the University of tient. Incredible. alternatives, however, that do not use Florida have transformed highly puri- Adult stem cells can form potentially controversial and unproven techniques fied adult liver stem cells into pan- all tissues. Injection of a single adult to improve health. Many of you who creatic stem cells. Now they are taking bone marrow stem cell can reform the follow this issue already know the ad- liver stem cells and making them into entire bone marrow of a mouse, form- vances being made, and the adult non- pancreatic cells. The cells self-assem- ing functional marrow and blood cells embryonic stem cell research con- ble in a culture and form three-dimen- and saving the life of the mouse. The tinues to show great promise. Not only sional islet structures—that is where transplanted bone marrow also could are we beginning to treat the myriad you get the secretion of insulin—ex- form functional cells of liver, lung, diseases which plague humanity, but press pancreatic genes, produce pan- gastrointestinal tract—esophagus, we are continuing to find we can do so creatic hormones and, best of all, se- stomach, intestine, colon—and skin, as without the use of controversial tech- crete insulin—to be able to cure diabe- well as other cells in heart and skeletal

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5519 muscle. The experiments also provided ing on nonpatentability, my question ance. The commercial world has been evidence that adult stem cells ‘‘home is whether the Senator from Kansas is waiting for action on this bill and, to in’’ to sites of tissue damage. This was aware of a release by the Patent Office find this amendment here, again I say, from Dr. D.S. Krause on May 4, 2001, in on April 1, 1998, which reads, in perti- is surprising. the publication ‘‘Cell.’’ nent part: The core question which is raised by Fifth, adult stem cells repair heart The Patent and Trademark Office is re- the Senator from Kansas has been an- damage. I am talking, again, about quired by law to keep all patent applications swered by the Patent Office. I took human clinical trials. Heart damage. in confidence until such time as a patent from his comment that he had men- Listen to this: may be granted. However, the existence of a tioned that I did not hear him refer to patent application directed to human/non- Researchers at NIH and the New York Med- that at all, but I think his amendment human chimera has recently been discussed ical College-Valhalla used mice to show that is totally unnecessary in light of what in the news media. It is the position of the injecting adult bone marrow stem cells into the Patent Office has had to say. PTO that inventions directed to human/non- damaged hearts could rebuild heart tissue If the Senator from Kansas wanted to human chimera could, under certain cir- and help restore heart function. Newly have hearings on his amendment in the cumstances, not be patentable because, formed heart tissue occupied over two-thirds among other things, they would fail to meet regular course of business, he is a of the damaged portion of the heart 9 days the public policy and morality aspects of the member of the Judiciary Committee— after the transplant. In other experiments, utility requirement. the Senator from Kansas is a member significant repair of heart damage was of the Judiciary Committee, as is this achieved by simply stimulating the produc- Now, this position by the Patent Of- fice obviously, on its face, renders to- Senator—that would be an appropriate tion and release of stem cells from bone mar- place to hear it. row, with the cells migrating to the heart tally unnecessary the amendment that When the Senator from Kansas talks and repairing damage. The studies indicate is being offered. My question to the about the future of humanity, I agree that adult stem cells can generate new heart Senator from Kansas is, Was he aware tissue, decreasing the damage of coronary with him about that. Nuclear trans- of this position taken by the Patent Of- plantation offers an opportunity to artery disease. fice? That was in a magazine called Nature save lives, to find a cure for Parkin- Mr. BROWNBACK. Yes, I am very fa- son’s, Alzheimer’s, and heart disease, on April 5, 2001. This was a mouse trial, miliar with that. The Patent Office has not human. so that we really are on the threshold continued to articulate that position. of some remarkable scientific achieve- The notion that we have to kill one That is why I stated that there is a person in order to find cures for others ments. question on this, because the Patent Mr. BROWNBACK. Madam President, is a false trade-off that has been pre- Office is stating that issue based upon if I may reclaim my time, if we are sented to the American public in what the 13th amendment of the Constitu- going to go into the speech of the Sen- seems to be a total disregard of the ad- tion, which is against slavery. But they ator from Pennsylvania, I would like to vances made in the promising fields of are being challenged by attorneys, and answer his comments and finish up my alternative nonembryonic sources of they have been challenged in the court comments, unless he has another ques- stem cells. If we want to talk about re- often about whether they can deny a tion to ask. Again, I would like to go generative medicine, this is where we patent. ahead and finish my statement. should focus; this is the area of regen- What I am providing by this amend- Mr. SPECTER. I had not finished an- erative medicine. We are doing it today ment is clarity by the legislative body swering the question of the Senator in human clinical trials. acting and saying that we will not from Kansas. I have been sitting here Mr. SPECTER. Will the Senator yield allow the patentability of this issue. I patiently listening to him at some for a question? ask my colleague if he agrees with that length and again express a little sur- Mr. BROWNBACK. If I may complete and maybe with my amendment and prise at having the Senator from Ne- this point, then I will yield for a ques- would agree to support this amend- vada take the floor when I step out for tion. Why would we contemplate going ment. It is just a clarification of what a minute and then ask unanimous con- to the point of creating a human life the Patent Office has currently stated. sent not to have the amendment read, and patenting this human life in an Mr. SPECTER. I would be glad to ex- which is customary, but then the Sen- area where we are showing no results pound, Madam President. The amend- ator always explains it. taking place, and it has all these eth- ment which the Senator from Kansas While I was up at the desk getting a ical questions, and you have one gen- has offered was offered without any no- copy of the amendment, the Senator eration of humanity saying, okay, we tice to this Senator, which came as a from Kansas took the floor again. I do think there are some possibilities here surprise, since the Senator from Kan- not think there has been any shortage to research in this cloning area? There- sas and I have been debating this sub- of time for the Senator from Kansas. fore, we are going to allow the creation ject very broadly for the past year or Mr. BROWNBACK. I do have the of human clones, which we allow freely two. floor, I say to the Senator from Penn- in the United States to take place Having seen this amendment for the sylvania, and I am willing to yield for today; it is going on right now. We are first time this evening, I was surprised a question on this issue. Mr. SPECTER. Madam President, the going to allow them to be patented so that when I walked out for a telephone Senator from Kansas has asked me a that you can own this creation of a call, that opportunity was used by the question, and I am in the process of re- human being. We don’t have to go Senator from Nevada to offer a second- sponding to the question. there. I would say, at a minimum, we degree amendment to foreclose this The last comment I will make and ought to contemplate at least pausing Senator from offering a second-degree will give the floor back— on this until we see how all of this amendment, although that may still be The PRESIDING OFFICER. The Sen- would grow and develop before we con- possible under certain procedural ap- ator from Kansas does have the floor template creating humans just to re- proaches. and can reclaim the floor when he search them. We have a better alter- The arguments which I have heard wishes. native that is working today. the Senator from Kansas offer tonight, Mr. BROWNBACK. I am happy to I am happy to yield for a question. almost his entire presentation has not have the Senator from Pennsylvania Mr. SPECTER. Madam President, the been about the patent issue but has respond, but if it is his speech, I would Senator from Kansas, in his introduc- been about therapeutic cloning, and like to finish up my comments and tory comments, announced what his embryonic stem cells. The Appropria- then yield the floor. amendment was not about, and then he tions Subcommittee on Labor, Health Mr. SPECTER. The last part of my proceeded to talk extensively about nu- and Human Services had some 14 hear- response, Madam President, would be clear transplantation, otherwise re- ings on the issues relating to stem cells to take strenuous issue with the state- ferred to as therapeutic cloning, and and nuclear transplantation. There has ment by the Senator from Kansas that about embryonic stem cells, and about been no hearing at all on this subject. those who have talked about thera- adult stem cells. Again, it is a little surprising to find peutic cloning, really nuclear trans- But coming back to the core issue on it come up on a very important bill re- plantation, are misleading and dis- what the Senator from Kansas is offer- garding Federal guarantees on insur- ingenuous. There has never been any

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5520 CONGRESSIONAL RECORD — SENATE June 13, 2002 challenge by this Senator to the Sen- to resolve the issue: Is this a person It is not about a difference of religious ator from Kansas about his being mis- protected under the 13th amendment view or the difference between religion leading or disingenuous. against slavery? Is it livestock; go and science. Every argument I have put As strenuously as I may disagree ahead and patent it, a new type of live- forward has been based upon science, with what he has had to say, there has stock. biology, and reason. To me, the present never been any challenge to his being I am saying that what we should do debate is about good or bad science and forthright and his integrity on the is move forward with clarity for the good or bad reasoning. Many, however, point which is strongly suggested by Patent Office. They are claiming this seem to be wanting to make this a de- the characterization of ‘‘misleading is a person. It is subject to protection bate about religion when it is not. and disingenuous.’’ under the 13th amendment against What makes this argument so The PRESIDING OFFICER. The Sen- slavery, and I am saying we should strange is that I cannot think of one ator from Kansas. clarify that. Senator who does not believe in God. Mr. BROWNBACK. Madam President, I hope many of the Senators in this Indeed, we have printed above the main reclaiming the floor, I would like to body will join me and say: Yes, that is door when we come in, ‘‘In God We put forward a couple of issues in re- right, we should clarify that. Even if it Trust.’’ sponse to the Senator from Pennsyl- is a questionable issue, we should The question for my colleagues to vania. No. 1, this issue on the patenting weigh on the side of, yes, this is prob- ponder may be put the other way: Does of humans has been out there about a ably life and we should not enslave it God trust us? Does he love us? And if month now since a group discovered to a patent. I hope most of the Mem- so, when did his love start for us? I several applications of patents for the bers of this body will agree and say: would suggest it starts very early. patenting of a process to create a Yes, we are going to deny these pat- In closing, I think it is important human embryo. It has been out there, ents. These are not going to be allowed that as we continue to engage this na- and a number of us stated we wanted to to go forward. tional dialogue, we strive to do so in a ban this procedure of patenting. The notion that we have to kill one way that shows the profound mystery No. 2, as we were going forward in person in order to find cures for others and inviolable worth of every human this negotiation process to get the is a false tradeoff. It has been pre- being from the moment of conception competing cloning bills forward, we sented to the American public in what until natural death. It is a debate well were required to exchange a bill, and in seems to be disregard for the advances worth having, and as a brave new world our base bill was the issue of banning being made in this promising field of draws ever near, it becomes clearer the patenting of people. That was ex- alternative nonembryonic stem cells. that our own humanity in fact may de- changed this week. It has been out in This is true regenerative medicine. pend upon it. the hands of Senator SPECTER’s staff or As our national bioethics debate pro- As a final thought, I think it is un- others during this week. We have had gresses, we must continue to closely likely that Senators today will ulti- this issue of patenting banned. Wheth- monitor the advances being made in mately be remembered by history for er the Senator knew about it or not, it the field of adult stem cell research, their votes on tax bills or even on bills was in the base bill we put forward. and we need to fund it and fund it ag- that are pending right now—budget, On the issue of questioning his integ- gressively. trade—all of which will be important. rity, I did not, and I do not here. I stat- It is important to remember that we They are important, but I think when ed earlier in my comments that those do not have unlimited resources in our we look back 50 years to this period of who are putting this forward do so, battle to prolong and improve the qual- time, that may not be what history re- when they put forward the issue of ity of life. Throwing money at members. cloning people, under laudable pur- unproven, controversial, and novel There is something truly unique poses: to cure debilitating diseases, the treatment regimes is foolhardly. It is about the debate on this issue, on same diseases that I seek to cure. What better to invest where progress is being whether you treat a person as patent- I call disingenuous is the term ‘‘thera- shown and progress charted. able or not. The action we take today, peutic cloning.’’ It is certainly not I wish to address a final point, and tomorrow, and next week on this issue therapeutic to the clone, and as I have that is on the issue of people saying will have far-reaching implications and been going through the science, it is this is about your view of religion, will be of great historical consequence. not going to work for the people who your view of science. The point I wish It is what history will ultimately re- are trying to do it. If it did work for to make is some have charged religion member us for during this time. I think the people who were trying to do this, is attempting to, once again, block im- that is why we clearly have to address they are going to have to harvest a lot portant scientific discoveries. This is this issue. That is why we have nar- of eggs from women. It is not going to not true. rowly addressed the point that is in be therapeutic to the women from What I have argued in the past, and I front of us. whom the eggs are harvested, and as will argue today, as well as what I will I hope that in the end we get unani- far as I know, it is not going to be continue to argue in the future, is mous consent in this body that we therapeutic to the clone, and, I might based directly on biological data, should not allow patenting of human also add, it is not therapeutic to man- statements by those in the field of biol- life in any stage of its development, kind to do this, to start at some point ogy, the data of common observations, whether it is asexual reproduction or in the life chain, in the life cycle, cre- an objective, logical, reflective think- human reproduction. ating life as livestock and be able to do ing about the data available. I have not Today, yes, indeed, we in the Senate research on them. once mentioned an argument based open a debate on the future of human- Moving forward with this, and the upon religion. ity and whether we shall use human reason this patent is a central issue, as Certainly many traditional religions, life for research purposes. Let us pause I noted at the very outset, the whole dependent on their respective posi- and do something most of us agree on issue in front of the Patent Office— tions, coincide with many of the points and not allow human life, whether cre- they are claiming one way and others that have been made in the past. The ated by a clone, in a clone, by a bio- are claiming another—is the status of Christian tradition, in particular the technician or in the womb, to be pat- the clone. Is the clone a person, thus Catholic and much of the Evangelical, ented. subject to protections under the 13th says everything relevant to this debate I yield the floor. amendment against slavery or is it depends on the humanly accessible The PRESIDING OFFICER (Ms. STA- property, is it livestock to be owned data and the logical conclusions that BENOW). The Senator from Utah. and dealt with as its master chooses? can be drawn from it, not on theology. Mr. HATCH. Madam President, I That is the central question that is in- Authentic religion hands this over to have a lot of respect for the distin- volved at the Patent Office. authentic science. guished Senator from Kansas. He is a That is what I was saying at the out- The difference of view, in my judg- good man. He is very sincere, and he set of the speech, and that is why the ment, depends on knowing the biologi- believes in what he is doing. He fights issue is in front of us, because we need cal and human truth or not knowing it. for what he believes in. I have a lot of

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5521 respect for him, and I have a lot of re- diciary Committee, of which Senator widespread agreement that patenting spect for his attitude. BROWNBACK is a member. So the distin- human life, per se, is undesirable. Up until this point, the debate on guished Senator from Kansas will have Moreover, it may have serious con- cloning has been considered in an or- every right to have his thoughts constitutional implications under the 13th derly and responsible fashion. I am sidered. and 14th amendments as well. However, greatly concerned that in filing this We need to know how far the Brown- in approaching these issues, we must particular amendment, our opponents back Amendment reaches. Does it ex- take care not to rush to judgment and in this debate are resorting to tactics tend to cell lines derives from unnecessarily make unwise policy deci- that will not result in the careful con- unfertilized blastocysts? Does the sions that would hinder, and perhaps sideration that this important issue amendment destroy the patentability halt, important biomedical research. merits. We all know that the great of any process that could be used in nu- Having said that, I jotted down a few issue in this debate is whether an clear transplantation involving human notes put forth by the accomplished unfertilized blastocyst, or an cells? We need to know what, if any, patent attorney, Al Engelberg. I agree unfertilized egg that is used in the so- tensions, exist between the Brownback with Al and other experts who do not matic cell nuclear transfer process and Amendment and the Supreme Court’s believe that changing the patent law is becomes a blastocyst in 5 or 6 days, is holding in the famous Chakrabarty de- the appropriate vehicle for exercising a person? We will have that debate in cision? governmental control over the mul- this body, I presume. I think it would The 1987 PTO policy cited titude of issues relating to cloning. be a worthwhile debate. Chakrabarty ‘‘as controlling authority Patents do not create an affirmative The amendment being offered to- that Congress intended statutory sub- right to make, use, or sell the patented night is something of a red herring. ject matter to ‘include anything under subject matter. They only give the True, there are issues that should be the sun that is made by man.’ ’’ The owner the right to exclude others from examined in addition with patents PTO went on to say that it ‘‘now con- doing so. For example, a patent on a which may be issued on living cells. In siders nonnaturally occurring non- new drug does not create any right to human multicelluar living organisms, fact, Chairman LEAHY and I are pur- manufacture, use, or sell. An approval suing that matter in the Judiciary including animals, to be patentable from the FDA is an absolute pre- Committee with the Patent and Trade- subject matter within the scope of 35 requisite. mark Office and other interested par- U.S.C. 101.’’ Similarly, a patent on a slot machine We need to think how the Brownback ties. We are trying to learn more about does not give the owner the right to Amendment squares with the position patent No. 6,211,429, issued to Univer- use or sell it in a State where gambling taken in the memo written by then- sity of Missouri researcher, Dr. Randall is illegal. It would be a big mistake to HHS General Counsel Harriet Raab Prather. We are trying to learn if the leave the important broad societal with respect to the relationship em- issuance of this patent is consistent moral, ethical, and public health issues bryos and pluripotent cell lines. with the 1987 PTO policy statement But I want to emphasize that what to PTO experts applying technical pat- with respect to the non-patentability we really have to resolve in this debate ent laws. That would be a terrific mis- of human beings. is the legal and moral status of an take to make, and I believe that the However, let’s be fair, the crux of the unfertilized blastocyst that will not be ambiguities in the Senator’s amend- issue in this debate has little to do implanted into a mother’s womb and ment will thrust PTO into an improper with patents. It has to do with whether can never develop into a human baby. role. or not we will allow important re- That is a key issue. Let’s be honest, Do we really want to get involved in search to proceed, research that holds there is little interest in patenting a parsing patent claims in order to de- the promise of improving upwards of unfertilized blastocyst because the cide what is ethically permissible in 100 million-plus lives in our society in promise is not in the unfertilized the real world of cutting edge bio- America alone. That does not even blasotcyst but in the stem cell lines medical research? I think not. Let us mention the millions of others that may be derived from this artifi- settle the policy issue through a direct, throughout the world who might ben- cially created cells. frontal debate rather than approaching efit from what I refer to as regenera- I have been following the recent de- the matter through the back door of tive medicine. bate on the patenting of human life patentability. This body can look at issues around very closely. My interest is twofold. As I do not think springing, unan- the margin—and trust me, there are a policy matter and of course as rank- nounced, this type of amendment on literally hundreds of them that we ing member of the Judiciary Com- this bill in this fashion is the most con- could consider—and patenting is cer- mittee, I have a special responsibility structive manner in which to hold an tainly a concern but it does not go to for considering any policy issues that informed debate. the heart of the issue. touch on intellectual property laws. In But on the substance of the amend- The Patent and Trademark Office, addition, my longstanding interest in ment, we should take the view that the the PTO, has already made abundantly biomedical research and ethics compels existence of the patent is not deter- clear in its 1987 policy statement that me to understand ramifications of in- minative of what is legal or illegal to human beings are not patentable, as tellectual property policy which have make, use, sell, or permit within com- the distinguished Senator from Penn- such far-ranging public health con- merce. The value of the patent should sylvania has aptly pointed out. This sequences. So I am very concerned rise or fall on the basis of independent policy states, in part, ‘‘A claim di- about both of those issues. They are legislative determinations regarding rected to or including within its scope important issues and should not be the legality or illegality of certain ac- a human being will not be considered helter-skelter considered on the floor tivities. to be patentable subject matter.’’ without hearings, without appropriate That is what Senators SPECTER, It seems to me that it might prove consideration. These are complex and FEINSTEIN, KENNEDY and I have done in beneficial for PTO to reexamine the difficult issues. our legislation by making the inde- claims of the University of Missouri Throughout my career, I have always pendent legislative determination that patent in light of prior art. taken a strong pro-family and pro-life clearly outlaws the cloning of human In any event, human beings are not stance, especially on issues relating to babies by criminalizing the implanta- patentble. That has been the law of the biomedical research. I have also spent tion of unfertilized blastocysts. land, as it should be. To get into a considerable efforts to see that the The right to engage in such activities somewhat arcane, complicated debate United States remains the world’s lead- should be divorced from the issuance of about intellectual property on a to- er in biomedical research so that our patents. tally unrelated bill merely sidesteps citizens may continue to benefit from Now, as Mr. Engelberg argues, one the real debate and confuses the issue. revolutionary breakthroughs in advantage of proceeding in that fashion The patent issue is an issue that most science. is that it maximizes the incentives for appropriately should be examined, but Patenting human life involves novel those who make new and potentially I believe should be examined by the Ju- and difficult issues. I believe there is new discoveries to disclose them in the

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5522 CONGRESSIONAL RECORD — SENATE June 13, 2002 hope that over the 20-year life of the loss of his left leg below the knee, the world is going to leave us behind. They patent, the definition of ‘‘legally per- loss of his right toes, a colonoscopy, all will do so under moral and ethical missible’’ activities may be altered, kinds of other travails, difficulties and standards that will not be good—at thereby breathing economic value into problems, and ultimately was on dialy- least in some parts of the world. If we a discovery that cannot be commer- sis for the loss of his kidneys for the help set the moral and ethical stand- cially exploited at the time of the re- last 10 years of his life before he died, ards, it seems to me, we can benefit ev- covery. If research in a particular area in a miserable, painful condition, at 47 erybody around the world, first and is eliminated, no patent applications years of age. foremost U.S. citizens. It will mean can be filed without effectively admit- When Cody’s mother discovered that they will conduct this research on a ting to a crime. Therefore, legislation her son, at the age of 2, had exactly the highly ethical and morally upright regarding the scope of patents is not a same disease that killed her father at manner. good way to get at the underlying age 47, after all that miserable, wretch- If we do not do that, this research is questions that are being debated. ed existence, she almost fell apart. She going to go on through the rest of the I hope the Senator would withdraw came to me and said: You have to do world, and it will not be with our influ- his amendment. I believe it is grossly something about it. ence. premature. It is very dangerous for us Not only did the grandfather go Second, it seems to me, if we do not to adopt such a measure without ap- blind, he had pressure behind one of the go ahead with this research under very propriate hearings and a complete re- eyes, and it had to be removed. stringent moral and ethical standards, view of this matter. Now, why wouldn’t we do everything it will be gone ahead with no matter In the end, it does not help us decide, in our power to help Cody and others what happens because many of our what seems to me the central issue of suffering from life-debilitating dis- leading scientists today may leave our the debate: whether or not we should eases? It seems to me we should. country and go where they can pursue go forward with this very important re- Let me state my total agreement this research. And I say again—accord- search? with my dear friend and colleague from ing to at least 40 Nobel laureates and In the weeks ahead, the Senate is Kansas that we should ban absolutely almost everyone else I know, except a going to debate these issues of extreme reproductive cloning of human beings. few—this is very promising research. importance to many Utahans and There is no question that ban would This is important. I am totally in many Americans. There are upwards of pass 100 to 0 in this body, and I think favor of adult stem cell research, and 128 million people in our society who 435 to 0 in the House. There are only a almost every scientist I have talked to are suffering from various difficulties few people in our society today who be- is also supportive of this line of re- and diseases that may benefit from re- lieve we ought to follow through and search. But almost every scientist I generative medicine research. I am try to experiment with and reach a po- have talked to, and I have talked to a talking about heart disease, cancer, sition of cloning human beings. Those lot of them, will tell me that it is very ALS, diabetes and many others. people would be shut off automatically. difficult to get enough adult stem I, personally, believe we ought to do They basically would be outcasts if cells, and when you do they are not as everything in our power to help con- they tried to do something like that. able to maintain and differentiate into sistent with sound ethics. I, personally, By banning that totally, we would the various forms of human tissue as believe—because experts tell me this is solve most every problem with which embryonic stem cells are. That is why the case—that regenerative medicine most people are concerned. many in the scientific world, except for holds great promise of curing many It does not solve the problem that a few, believe this research, this posi- diseases. my dear colleague is concerned with tive, very important research, should I acknowledge the distinguished Sen- because he considers the unfertilized go forward. ator has quoted some scientists, but I egg, once a nuclear transfer takes out I understand the sincerity of those am going to stand with the 40 Nobel the 23 mother’s chromosomes, and in- who believe that somatic cell nuclear laureates who have said this research sert the DNA of a skin cell or other so- transfer results in the creation of a should go forward because it holds matic cell through the nuclear trans- human being but I do not see it that great promise in expanding biomedical plantation process. This process inserts way. If you have an unfertilized egg research to find treatments or cures. the 46 chromosomes into the that is never implanted into a mother’s This science may also be used to exam- unfertilized egg that will remain womb, I do not think we have a human ine disease so we can get to the bottom unfertilized. life. It is a living human cell. It is of the causes of disease and hopefully Some believe that the product of nu- something that should be given re- find treatments and cures for the mil- clear transplantation is a human being. spect, certainly, but we should give it lions and millions of Americans and I don’t agree with that. It is a living, respect by studying, learning, and help- people all over the world who need our human cell, but it certainly is not a ing alleviate human pain and suffering help. human being, nor does it have a chance if we can. At least that is my view- Regenerative medicine has the great in the world of becoming a human point. potential to save lives and to alleviate being unless it is implanted in a human I respect those with viewpoints that pain and suffering. I have come to this womb, and even then probably will not are different from mine but I think position after many months of study, become a human being because it is they are in the minority and as this de- contemplation, talking with all kinds theoretically possible but nobody is ab- bate unfolds I think that more and of scientists and others on both sides of solutely sure if that can happen. more Americans will agree with us this issue, including some of the lead- During this period of time, the that this important research should go ing authorities in science, religion, and unfertilized egg can be grown to a blas- forward. But I do not agree with it. ethics. I have spent a lot of time on tocyst stage in a lab and develop to the There are a lot of very fine people biomedical research issues during my point where special cells, called embry- who feel the same way the distin- entire Senate career. I have analyzed onic stem cells, can be extracted and guished Senator from Kansas feels. But this from a pro-life, pro-family perspec- replicate themselves. The stem cells there are a lot of fine people, who are tive, with the view that being pro-life are undifferentiated but, scientists be- very religious and very decent, and means helping the living. lieve, they can be differentiated into as who are pro-life, who believe that re- A 4-year-old boy, Cody Anderson, many as 200 different forms of human generative medicine is moral and that from West Jordan, UT, came to visit tissue which might save lives, which we ought to do all we can to help the me this last June. Cody Anderson’s might treat disease, which might bring living, too. mother almost fell apart when she dis- cures, which certainly will help study From where are these eggs going to covered at the age of 2 Cody Anderson disease and the origins of disease. come? First, that egg is unfertilized. It got the very same diabetes that his I don’t mean to go into all of the de- remains unfertilized right up through grandfather had. His grandfather lived tails this evening. But I am very con- this blastocyst stage. Those eggs are until he was 47 years of age but lived cerned in the end that if we do not con- probably going to come from in vitro through 28 different operations, the tinue this research, the rest of the clinics themselves, in many cases.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5523 Under our proposal they are going to tation on human subjects and should be pro- sity, Nobel Prize in Physiology or Medicine, be voluntarily given. Nobody is going hibited by legislation that imposes criminal 1986. to profiteer on these eggs. There will and civil penalties on those who would im- Elias James Corey, Sheldon Emery Re- be eggs that you cannot freeze readily plant the product of nuclear transplantation search Professor of Chemistry, Harvard Uni- into a woman’s uterus. versity, Nobel Prize in Chemistry, 1990. because they are not fertilized. So they Unfortunately, some legislation, such as Johann Deisenhofer, Virginia and Edward will have to be used in a relatively that introduced by Senator Brownback (R– Linthicum Distinguished Chair in Biomolec- short-term fashion, to create these em- KS) would foreclose the legitimate use of nu- ular Science, Regental Professor, University bryonic stem cells, generally in 4 to 6 clear transplantation technology for re- of Texas Southwestern Medical Center at days or so. search and therapeutic purposes. This would Dallas, Nobel Prize in Chemistry, 1988. The fact is, they are going to be eggs impede progress against some of the most de- Renato Dulbecco, Distinguished Research that are voluntarily given. bilitating diseases known to man. For exam- Professor, President Emeritus, The Salk In- Some of my friends on the right and ple, it may be possible to use nuclear trans- stitute, Nobel Prize in Physiology or Medi- cine, 1975. left of me say every one of those eggs plantation technology to produce patient- specific embryonic stem cells that could Edmond H. Fischer, Professor Emeritus of ought to be used and implanted in a overcome the rejection normally associated Biochemistry, University of Washington, woman so they can have babies. That is with tissue and organ transplantation. Nu- Nobel Prize in Physiology or Medicine, 1992. not reality. It can be, to a limited clear transplantation technology might also Jerome I. Friedman, Institute Professor, number of people who choose to do permit the creation of embryonic stem cells Massachusetts Institute of Technology, that, but some will volunteer eggs for with defined genetic constitution, permit- Nobel Prize in Physics, 1990. this research. ting a new and powerful approach to under- Walter Gilbert, Carl M. Loeb University During the Olympics I had a woman standing how inherited predispositions lead Professor, The Biological Laboratories, Har- vard University, Nobel Prize in Chemistry, come up to me and she said: Senator, I to a variety of cancers and neurological diseases such as Parkinson’s and Alzheimer’s 1980. appreciate your stand on stem cell re- diseases. Alfred G. Gilman, Regental Professor and search. She said: My husband and I A critical element of the Brownback bill Chairman, Raymond and Ellen Willie Distin- have twins from in vitro fertilization. would prevent the importation into the guished Chair in Molecular Neuropharma- We are so grateful for that process. United States of medical treatments devel- cology, Director, Alliance for Cellular Sig- I remember when that process came oped in other parts of the world using nu- naling, Chairman, Department of Pharma- forward, many of the arguments that clear transplantation. It seems unbelievable cology, University of Texas Southwestern are being used today were used against that the United States Senate would deny Medical Center, Nobel Prize in Physiology or advanced medical treatment to hundreds of Medicine, 1994. that process. Donald A. Glaser, Professor of Physics and And she said: Senator, we are grate- millions of suffering Americans because of an aversion to a technology that was used in Neurobiology, University of California, ful for those twins. But I don’t want its development. Berkeley, Nobel Prize in Physics, 1960. any more children and I don’t want my By declaring scientifically valuable bio- Joseph L. Goldstein, Regental Professor, eggs implanted in somebody else. I medical research illegal, Senator Brown- Department of Molecular Genetics, Univer- want them used for research. back’s legislation, if it becomes law, would sity of Texas Southwestern Medical Center, She ought to have the right to do have a chilling effect on all scientific re- Nobel Prize in Physiology or Medicine, 1985. that, and women like her. If you are a search in the United States. Such legal re- Paul Greengard, Vincent Astor Professor, mother and your child has just gotten strictions on scientific investigation would Laboratory of Molecular and Cellular Neuro- also send a strong signal to the next genera- science, The Rockefeller University, Nobel a very virulent form of diabetes, or Prize in Physiology or Medicine, 2000. your parents are drifting into Alz- tion of researchers that unfettered and irresponsible scientific investigation is not wel- Lee Hartwell, President and Director, Fred heimer’s or Parkinson’s, what woman, come in the United States. Hutchinson Cancer Research Center, Pro- who is really concerned about her par- We, the undersigned, urge that legislation fessor, Department of Genome Sciences, Uni- ents, would not be willing to do what to impose criminal and civil sanctions versity of Washington School of Medicine, she could to help them, if in fact this against attempts to create a cloned human Nobel Prize in Physiology or Medicine, 2001. research can prove efficacious? And if being be enacted. We also oppose strongly Dudley Herschbach, Baird Professor of any legislation that would prohibit or im- Science, Department of Chemistry and adult stem cell research has a chance Chemical Biology, Harvard University, Nobel of being efficacious, can you imagine pede the scientifically legitimate, responsible use of nuclear transplantation tech- Prize in Chemistry, 1986. what the undifferentiated state of stem nology for research and therapeutic pur- Tim Hunt, Principal Scientist, Cancer Re- cells, which can be so easily differen- poses. Similarly, any attempt to prohibit the search UK, Nobel Prize in Physiology or tiated, in the eyes at least of these sci- use of therapies in the United States that Medicine, 2001. entists, can you imagine what good were developed with the aid of nuclear trans- Jerome Karle, Chief Scientist, Laboratory that will do? plantation technology overseas denies hope for the Structure of Matter, Naval Research I believe these 41 Nobel laureates, the for those seeking new therapies for the most Laboratory, Nobel Prize in Chemistry, 1985. debilitating dieases known to man. Arthur Kornberg, Emma Pfeiffer Merner leading scientists in our society, ought Professor, Emeritus Professor of Bio- to be listened to in this debate. To a Sidney Altman, Sterling Professor of Biol- ogy, Yale University, Nobel Prize in Chem- chemistry, Stanford University School of person, they do not believe this is a istry, 1989. Medicine, Nobel Prize in Physiology or Medi- human being at this stage. There is Kenneth J. Arrow, Professor of Economics cine, 1959. good reason for that. and Professor of Operations Research, Emer- Edwin G. Krebs, Professor Emeritus, Sen- I ask unanimous consent the letter itus, Stanford University, Nobel Prize in Ec- ior Investigator Emeritus, Department of from these Nobel laureates, with their onomics, 1972. Pharmacology, Howard Hughes Medical In- names, be printed in the RECORD. Julius Axelrod, Scientist Emeritus, Na- stitute, University of Washington School of There being no objection, the mate- tional Institutes of Health, Nobel Prize in Medicine, Nobel Prize in Physiology or Medi- cine, 1992. rial was ordered to be printed in the Physiology or Medicine, 1970. David Baltimore, President and Professor Leon M. Lederman, Pritzker Professor of RECORD, as follows: of Biology, California Institute of Tech- Science, Illinois Institute of Technology, THE AMERICAN SOCIETY nology, Nobel Prize in Physiology or Medi- Nobel Prize in Physics, 1988. FOR CELL BIOLOGY, cine, 1975. Edward B. Lewis, Thomas Hunt Morgan Bethesda, MD. Paul Berg, Cahill Professor of Cancer Re- Professor of Biology, Emeritus, California Two National Academy of Sciences expert search and Biochemistry, Emeritus, Direc- Institute of Technology, Nobel Prize in committees, as well as noted national and tor, Beckman Center for Molecular & Ge- Physiology or Medicine, 1995. international organizations, have evaluated netic Medicine, Emeritus, Stanford Univer- William N. Lipscomb, Abbot and James current scientific and medical information sity School of Medicine, Nobel Prize in Lawrence Professor, Emeritus, Department and have concluded that cloning a human Chemistry, 1980. of Chemistry and Chemical Biology, Harvard being using the method of nuclear transplan- J. Michael Bishop, University Professor University, Nobel Prize in Chemistry, 1976. tation cannot be achieved safely. Such at- and Chancellor, University of California, San Ferid Murad, Professor and Chairman, De- tempts in other mammals often have cata- Francisco, Nobel Prize in Physiology or Med- partment of Integrative Biology, Pharma- strophic outcomes. Furthermore, virtually icine, 1989. cology and Physiology, University of Texas nothing is known about the potential safety Thomas R. Cech, Distinguished Professor, at Houston, Nobel Prize in Physiology or of such procedures in humans. Consequently, University of Colorado, Boulder, Nobel Prize Medicine, 1998. there is widespread and strong agreement in Chemistry, 1989. Marshall Nirenberg, Chief, Laboratory of that an attempt to clone a human being Stanley Cohen, Distinguished Professor of Biochemical Genetics, National Heart, Lung would constitute unwarranted experimen- Biochemistry, Emeritus, Vanderbilt Univer- & Blood Institute, National Institutes of

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5524 CONGRESSIONAL RECORD — SENATE June 13, 2002 Health, Nobel Prize in Physiology or Medi- of Utah, Mario Capecchi, one of the spect for him. He is a senior Member of cine, 1968. leading experts in the world on mice this body. He has done excellent work Sir Paul Nurse, Director-General (Science), stem cell research—it was an abso- over the years. We have a disagreement Cancer Research UK, Nobel Prize in Physi- lutely fascinating hour and a half I on this one, although I don’t know that ology or Medicine, 2001. Burton Richter, Paul Piggot Professor in spent with him. You can’t believe how we actually have a disagreement on the the Physical Sciences, Director, Stanford very deeply he believes that embryonic bill that is pending. Linear Accelerator Center, Emeritus, Nobel stem cell research, of the type I have I continue to note the bill that is Prize in Physics, 1976. been talking about, is absolutely cru- pending is about a patenting issue. It is Richard J. Roberts, Research Director, cial for the well-being and care of hu- about banning patents, and it is not New England Biolabs, Nobel Prize in Physi- mankind and that, really, this research about banning patents on unfertilized ology or Medicine, 1993. has to go forward. eggs. The bill is on the zygote, embryo, Phillip A. Sharp, Institute Professor, Di- We have already lost one of the truly fetus, child or adult; a living organism rector, McGovern Institute, Massachusetts Institute of Technology, Nobel Prize in great scientists in this country, Dr. made by human cloning or a process of Physiology or Medicine, 1993. Peterson, I believe, who just threw his human cloning. That is the operative Hamilton O. Smith, Senior Director of hands in the air and gave up because he part. DNA Resources, Celera Genomics, Nobel believes this research is going to be ul- The zygote is the very young, fer- Prize in Physiology or Medicine, 1978. timately hurt in this country—al- tilized egg. I agree that the unfertilized Robert M. Solow, Institute Professor though I do not think he is right. He egg is not a person, to maybe clarify Emeritus, Massachusetts Institute of Tech- has already left and gone to England. that in the debate. I don’t think the nology, Nobel Prize in Economics, 1987. Can you imagine how many more unfertilized egg is a person and it is E. Donnall Thomas, Professor of Medicine, Emeritus, University of Washington, Mem- would leave if we, the most free coun- not protected under what we are pro- ber, Fred Hutchinson Cancer Research Cen- try in the world, the most scientif- posing on this issue about patenting. ter, Nobel Prize in Physiology or Medicine, ically oriented country in the world, The issue in front of us is patenting. 1990. the country where most biomedical re- I also respond to my dear colleague Harold Varmus, President, Memorial Sloan search progress has been made, the from Utah that what we are proposing Kettering Cancer Center, Former Director, country that has the best Food and does not ban research on human National Institutes of Health, Nobel Prize in Drug Administration in the world, the cloning, that he would like to proceed. Physiology or Medicine, 1989. country that has a caring nature about I disagree with that, but the pending James D. Watson, President, Cold Spring Harbor Laboratory, Director, National Cen- living human beings—not meaning to issue is not about banning human ter for Human Genome Research, NIH, 1989– demean other countries, but I think cloning. It says that what we should do 1992, Nobel Prize in Physiology or Medicine, this country cannot be beat in bio- is not allow patenting of human clones 1962. medical research. Can you imagine or of young people. It is a narrow issue. Torsten Nils Wiesel, The Rockefeller Uni- what a demoralizing thing it would be I want to make sure that it is clear versity, President Emeritus Nobel Prize in if we banned this highly promising re- to the body overall that the pending Physiology of Medicine, 1981. search that can help alleviate the pains issue before this body is not about ban- Robert W. Wilson, Senior Scientist, Har- of mankind? ning human cloning, it is not about a vard-Smithsonian Center for Astrophysics, I have talked enough about it. I am moratorium on human cloning; it is an Nobel Prize in Physics, 1978. just saying I hope my dear colleague issue that we should not patent the Mr. HATCH. There is so much more will withdraw his amendment because young human at any stage in the life to be said about this. We can debate all it is premature. We will be happy to de- continuum, when it is a young human. night about it. I am sure there will bate tomorrow, if he is unwilling to That is when you have an entity. come a time for this debate, where we withdraw it, or whenever—but it is pre- Whether it is a clone or a natural can discuss all these matters. mature. I think it is dangerous to do it human, if you nurture it and it grows But, you know, I am concerned that this way. We should study this because into a person, you should not be allow- we not lose this opportunity to help it is a complex, very difficult area. ing patenting of this person. That is mankind. I remember in the early There are so many things about this the pending issue. 1970s, mid-1970s, when recombinant whole debate that are very complex I don’t believe a number of scientists DNA was so heavily lobbied against, and very difficult. and Nobel laureates speak to the issue the research, and it was another type I am sure I cannot convince my col- of patenting. They speak to the issue of of cloning research. It was not the league of my point of view, and I do not human cloning, which is going on in same as this, it is not cloning a living believe he is going to convince me of America and which continues to go on mother’s egg, but nevertheless, it in- his. But the fact is, I believe we ought this day in America. I don’t think it volved cloning. Similar arguments to do everything in our power, within should. That is not the pending issue, were made against recombinant DNA moral and ethical constraints and and that is not the issue the scientists research. standards, to try to come up with address. I have to tell you that we went ahead treatments and cures that might al- The issue that we are bringing up is anyway, the research was done, and leviate the pain, suffering, and yes, about patenting. The good Senator today we have over 60 mainline drugs even premature death of our fellow from Utah knows this is the time and that came from recombinant DNA— human beings on this planet. the right place. I brought these issues cloning—research, not the least of I hope before this year is out that we up in the past year. If not now, when? which is human insulin which is saving will be able to resolve this issue be- This is the time. These issues are pend- millions of lives today in this world. cause I think it needs to be resolved. I ing. Some say it is not a real issue be- In fact, virtually every major sci- will certainly work with my dear col- cause the Patent Office has already de- entific breakthrough through history league to try to find ways we can re- clared that you can’t patent a person. has had those who have argued against solve this. But I believe it has to be re- I want to draw the attention of the it. And there have been some which solved, and I hope we can have that Members of the body to when this de- have not proven efficacious, such as full-time debate at a later date and bate broke open. Here is a May 17, 2002, fetal tissue research. that we will be able, at that time, to piece in the New York Times, ‘‘Debate I made the arguments on the floor let the Senate vote and let the Senate on Human Cloning Turns to Patents’’— against fetal tissue research at the make the determination, as well as the just this past month. time. So far, I believe that science has House, and go from there. The University of Missouri has received a not been able to derive the projected I yield the floor. patent that some lawyers say could cover benefits from fetal tissue research. I The PRESIDING OFFICER. The Sen- human cloning, potentially violating a long- am not saying I was right; I am just ator from Kansas. standing taboo against patenting of humans. saying the fact is, it did not prove as Mr. BROWNBACK. Madam President, The patent covers a way of turning efficacious as originally thought. I would like to respond to a few issues unfertilized eggs into embryos. But the scientists, one of the latest raised by my friend and colleague from That is covered by the amendment ones I chatted with at the University Utah. I have great admiration and re- we have put forward.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5525 . . . the production of cloned mammals patents would violate the 13th Amendment on its method of cloning. But the patent is using that technique. ban on slavery. Brigid Quinn, a spokes- on only nonhuman embryos produced by the And it could be used on humans. That woman for the patent office, said the agency process, though it does seem to cover human is the issue. was not using the 13th Amendment argument cells. anymore but was not granting patents on hu- It might be difficult to draw the line on I ask unanimous consent that this ar- mans because it had not received any guid- what constitutes a human. George J. Annas, ticle from the New York Times, and a ance from Congress or the courts saying it professor of health law at Boston University similar one covering it from the Wash- should do so. School of Public Health, said it was unclear ington Post, and the Washington The result has been that many patents whether the anti-slavery amendment would Times, be printed in the RECORD. that conceivably could cover humans—like be a basis for denying patents on human em- There being no objection, the articles on cloning animals or on genetically engi- bryos, because courts, in cases like those in- were ordered to be printed in the neering animals to produce drugs in their volving custody of frozen embryos, have said milk—specifically exclude humans. an embryo is not a person. RECORD, as follows: A spokesman for the University of Mis- [From the New York Times, May 17, 2002] souri, Christian Basi, said that it believed its [From the Washington Times, May 21, 2002] DEBATE ON HUMAN CLONING TURNS TO patent covered human cloning because it ap- UNIVERSITY’S CLONING PATENT RAISES A PATENTS plied to all mammals. The university has li- ‘‘MAMMAL’’ ISSUE (By Andrew Pollack) censed the patent to BioTransplant, a Massa- (By Amy Fagan) chusetts biotechnology company that is The University of Missouri has received a Adding another layer to the contentious working on creating pigs that can be used as patent that some lawyers say could cover debate over cloning in Congress, a patent human organ donors. But the license, Mr. human cloning, potentially violating a long- watchdog group said last week that the Uni- Basi said, covers only the use in pigs. standing taboo against the patenting of hu- versity of Missouri at Columbia has received ‘‘We have absolutely no interest in using mans. a patent for technology that can be used to this to research humans and we will not li- The patent covers a way of turning clone human beings. cense this technology to anyone for use in unfertilized eggs into embryos, and the pro- The patent covers laboratory procedures humans,’’ Mr. Basi said, suggesting that the duction of cloned mammals using that tech- for creating cloned mammals, but it extends patent could actually help stop human nique. But unlike some other patents on ani- to the direct products of those cloning proc- cloning. ‘‘This gives us control of this par- mal cloning, this one does not specifically esses, including humans, said Peter ticular technology so we will know that this exclude human from the definition of mam- DiMauro, director of Patent Watch. technology will not be used in humans.’’ mals; indeed, it specifically mentions the use ‘‘It says ‘mammals’ and it doesn’t have a Ms. Quinn said the patent office did not of human eggs. disclaimer for humans,’’ said Mr. DiMauro, comment on individual patents but had not Those opposed to cloning and to patenting whose project tracks patents for the Inter- changed its policy of not issuing patents of living things say the patent is a further national Center for Technology Assessment. ‘‘drawn to humans.’’ University officials said the patent, issued sign that human life is being turned into a Randall S. Prather, a professor of repro- commodity. last year, was never intended to apply to ductive technology at Missouri whose work human beings. It was issued to a university ‘‘It is horrendous that we would define all was the basis for the patent, said the men- of human life as biological machines that researcher and applied to technology that al- tion of human eggs ‘‘was put there by the at- lows the cloning of swine. can be cloned, manufactured and patented,’’ torneys and they wanted to cover all mam- said Andrew Kimbrell, executive director of ‘‘The intent of the patent was to allow for mals.’’ research on swine,’’ said Missouri spokes- the International Center for Technology As- Charles Cohen, who wrote the patent when sessment, a Washington group that has long woman Mary Joe Banken, who said school he was a lawyer at a St. Louis law firm, de- officials are meeting today to discuss nar- opposed patenting of living things and also clined to comment. wants to ban all human cloning. rowing the patent’s language to exclude hu- Some lawyers who have looked at the pat- mans. ‘‘It was never the intent of the univer- The patent was issued in April 2001, but at- ent, No. 6,211,429, say it is not clear that it tracted no attention until Mr. Kimbrell’s sity to use the technology on humans.’’ covers human cloning and that interpreting Mr. DiMauro said he respects that, ‘‘but group ran across it recently. patents requires careful analysis of the pat- the flaw is in the law.’’ Senator Sam Brownback, the Kansas Re- ent’s history, that the patent office did not The Senate is awaiting a debate on the publican who has been a leading opponent of appear to have problems with it could be a human-cloning issue. Sen. Sam Brownback, human cloning, said he intended to introduce sign that the agency believes that the patent Kansas Republican, has a bill to outlaw the a bill to prohibit patents on human beings does not cover humans. cloning of human embryos for any purpose, and human embryos, which he said were ‘‘You’d have to go through line by line, including for medical research. The House ‘‘akin to slavery.’’ word by word,’’ said Gerald P. Dodson, a law- has passed an identical bill and the president ‘‘I think the patent office will appreciate yer with Morrison & Foerster in Palo Alto, is pushing for it. having that clarity, given the applications Calif., who read the patent and said he could Mr. DiMauro said his group has found that are coming into the patent office,’’ Mr. not reach an immediate conclusion. three pending patents similar to that in Mis- Brownback said. Mr. Dodson and others noted that the spec- souri. He called on Congress to clarify in law That bill would be separate from a bill the ifications and examples of how the patent that patents cannot apply to human beings— senator is already sponsoring that would could be used dealt with pigs and cows. including human embryos or fetuses. prohibit all human cloning. The Senate is de- Even if the patent does cover human Mr. Brownback said he will introduce leg- bating how extensively to ban human cloning, some lawyers say, it would be a islation this week to do so. cloning, but none of the bills it is consid- stretch to say it covers humans themselves, ‘‘The central point in the debate over ering deal with the patent issues. although the abstract of the patent says it human cloning revolves around our view of The patent also illustrates the tricky legal covers the ‘‘cloned products.’’ the human embryo and whether or not the and ethical issues the United States Patent But even a patent on the process of cloning human embryo is a person or a piece of prop- and Trademark Office is confronting as sci- humans could give the patent holder some erty,’’ Mr. Brownback said. ‘‘If we allow the entists race to develop cloning and to grow rights over people, some lawyers said. Con- patenting of human embryos, we will be human tissues to treat disease. Mr. Kimbrell ceivably, for instance, the university could sending the message that humans are prop- said he had found a few other patents that bar people created overseas by its cloning erty and that they can be exploited and de- had been applied for but not granted that process from entering the country. stroyed for profit.’’ might cover human cloning. ‘‘It definitely is a patent for cloning a A bill competing with Mr. Brownback’s The United States has been more liberal human, and under the laws we have right cloning ban, by Sens. Arlen Specter, Penn- than most other countries in granting pat- now, it might actually cover the human,’’ sylvania Republican, Dianne Feinstein, Cali- ents on living things, ever since a Supreme said Richard Warburg, a patent lawyer at fornia Democrat, and others, would outlaw Court decision in 1980 that allowed the pat- Foley & Lardner in San Diego who rep- the implantation of a cloned human embryo enting of a microbe genetically engineered resents Infigen, an animal cloning company. in a uterus but would allow the human- to consume oil spills. There are patents on Dr. Rochelle Seide, a New York patent law- cloning procedure to be done for medical re- complete animals, like a mouse genetically yer who heads the biotechnology practice at search, including the extraction of stem engineered to be prone to cancer. There are the law firm of Baker & Botts, said the lack cells. Advocates of this approach say the patents on human genes and human cells. of the nonhuman disclaimer in the Missouri cloning procedure does not produce a human The University of Wisconsin has a patent on patent was surprising. embryo, since no sperm is involved. human embryonic stem cells, which are cells ‘‘Looking at it,’’ Ms. Seide said, ‘‘I can see Patent Watch’s DiMauro said the Specter- taken from human embryos that have the where people who are against cloning would Feinstein cloning bill contains ‘‘nothing to ability to turn into any other type of tissue. have a big problem with it.’’ address the large scale commercialization of But the patent office has drawn the line on Advanced Cell Technology, a company that human embryos created through cloning.’’ patenting of humans or human embryos wants to clone human embryos to obtain He said it ‘‘seems to permit the status quo themselves, saying it would not be constitu- stem cells for disease treatments, licensed a of the law, which is to allow the patenting of tional. Many experts say this is because such patent from the University of Massachusetts human embryos.’’

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5526 CONGRESSIONAL RECORD — SENATE June 13, 2002 When asked whether scientists would be court challenge and to simple oversight by phone, and the world of medical research. In able to obtain patents on their human- patent examiners. 1997 I fell asleep while driving interstate and cloning research under her bill, Mrs. Fein- There is no specific law that excludes a resulting spinal cord injury left me para- stein said she did not know because her bill clones or other genetically modified human lyzed below the chest. Because of what I’ve does not deal with the patent issue. beings from being covered by patents. Some learned through reading medical journals ‘‘I do not know, I cannot answer that,’’ she legal experts feel that constitutional law, and speaking to leading scientists, and be- said. particularly the 13th Amendment’s prohibi- cause my life’s focus is to support the safe, tion of slavery, would rule out human pat- efficient development of cures for many med- [From the Washington Post] ents. But others are doubtful and they argue ical conditions (including my own), I re- A NEW CALL FOR CLONING POLICY that Congress should make the prohibition cently left my cocoon and journeyed to Washington to support your proposed ban on (By Justin Gillis) explicit. Sen. Sam Brownback (R–Kan.), who has led all forms of human cloning. An advocacy group said yesterday it had a contested effort in Congress to ban all My reasons for supporting this ban are uncovered a year-old patent that it inter- types of human cloning, said yesterday he simple. Huge obstacles stand in the way of prets as applying to cloned human beings, would introduce separate legislation to clar- cloned embryonic stem cells ever leading to and the group called on Congress to clarify ify the patent laws. ‘‘If we allow for the pat- cures for any condition. To overcome these the law to specify that no patents can be enting of human embryos we will be sending obstacles crucial funds, resources, and re- issued on human life. the message that humans are property and search careers will need to be diverted from The patent holder, the University of Mis- that they can be exploited and destroyed for more promising avenues for many years to souri at Columbia, said it is still studying profit,’’ Brownback said. come. These obstacles include tumor forma- issues raised by the group but had no intention, short and long-term genetic mutations, tion of asserting ownership of human beings Mr. BROWNBACK. Madam President, tissue rejection, prohibitive costs, and the or of cloned human embryos. The patent was I wanted to note to the Members of need for eggs from literally hundreds of mil- obtained by a Missouri researcher working this body that this is the current issue. lions of women to treat a single major condi- to develop pigs whose organs could be trans- Indeed, one group that is looking and tion (such as stroke, heart disease, or diabe- planted to save human patients. Cloning studying this issue believes that there tes). However, every condition that cloned might be a way of creating many such pigs. are three patents either pending or al- embryonic stem cells someday may address What the patent, No. 6,211,429, actually ready granted that could or are being is already being addressed in animals or hu- covers is somewhat unclear. It is mostly a mans more safely, effectively, and cheaply description of specific laboratory techniques used by the patent people or the proc- by adult stem cells and other avenues. And for making cloned mammals, but a subordi- ess to create a human clone already. since money spent on impressive-sounding, nate clause in a section of the patent also Madam President, my point is that it but hugely problematic research such as lays claim to ‘‘the cloned products produced is a live issue, and what we are doing cloning cannot also be spent on research by these methods.’’ here does not ban human cloning. It that really offers cures, I’m in favor of a Other recent patents of this type have in- simply says you can’t patent the total ban on human cloning. cluded explicit language saying the mam- human clone because there is a person; I knew all this before I went to Wash- mals in question do not include human that if you allow this person to grow it ington. That’s why I went there. Please beings, but this patent, issued April 3, 2001, allow me to share with you what I learned to Missouri researcher Randall S. Prather is going to become a full-scale human while I was there. being. It appears as if we are not going and an associate, includes no such language. He goes ahead and talks about his to be able to take this up in front of Read in conjunction with relevant law, discussion. that means Prather has staked a claim on this body—the overall issue of cloning. I want to show another person who cloned humans whether he meant to or not, Negotiations on that have broken has written to me who has studied and said Andrew Kimbrell, executive director of down. Yet here is one to which I was the International Center for Technology As- looked into this issue. hopeful we could get actually 100 per- This is Julie Durler from Wright, KS. sessment, the Washington activist group cent of the Members of the body to whose ‘‘PatentWatch’’ project raised the That is a nice-sounding community issue. agree. name. Some details of the patent appeared yes- I want to point to a couple of other I am writing this letter in support of legis- terday in the Wall Street Journal. issues that the Senator from Utah lation that would ban the creation of all No one has ever made a cloned person, but mentioned. cloned embryos. I understand the cloning of many scientists believe it has become pos- One is the unfertilized egg. We con- human embryos is being proposed for re- sible, raising profound ethical questions, in- tinue to speak about the unfertilized search purposed to help in finding a cure for cluding what rights of ownership the cre- egg, which I believe is not a person. I different diseases including diabetes. ators of a clone might have in their creation. want to state that clearly. The I am an insulin-dependent diabetic having ‘‘I would say that the patent office should been diagnosed with type I diabetes 17 years rescind this patent as grossly unethical and unfertilized egg he spoke about is not ago. I know personally the financial costs of contrary to any kind of public policy,’’ covered by the amendment. We do not having diabetes and also the health risks in- Kimbrell said. ‘‘I also feel that in order to cover the unfertilized egg. volved. As I have worked hard to keep my di- clarify this, Congress needs to come in.’’ He notes the position of a number of abetes under control, I have been blessed in His group also raised concerns about three scientists on the issue of cloning. I that I do not currently have any major com- pending patents that it said could also be would agree that there are differences plications as a result of having diabetes. read as covering human life. in the scientific community on the However, I am also aware that in the future The University of Missouri disclaimed any issue of cloning. I also note that there such complications may very well develop. pernicious intent. Prather ‘‘has absolutely are differences in the public. Two- Along with many others in our nation, I, too, no interest in doing research on humans,’’ would like to see a cure found for diabetes said Mary Jo Banken, a spokeswoman for the thirds of the American public is op- and know that research is necessary to ac- school. ‘‘I would say it would be impossible posed to human cloning. complish that goal. However, the proposed that we would attempt human reproductive I want to give you some examples of use of cloning of human embryos for re- cloning. It would never be approved’’ by the people who are opposed to human search or other purposes concerns me, espe- university. cloning and some of the reasons they cially since this creation of the cloned em- Brigid Quinn, a spokeswoman for the U.S. are opposed to human cloning, and bryos for research purpose would result in Patent and Trademark Office, said she could show you some pictures. their deaths. not discuss any individual patent and could Two-thirds of the American public is I do not believe it is necessary to destroy not comment on Kimbrell’s interpretation of life at any stage of development for research the Missouri patent. But she said the patent uncomfortable about the issue of purposes. I believe their are other avenues of office had made no change in its long- cloning. It kind of makes their skin research that should be explored, most spe- standing policy that human life cannot be crawl. It is that natural law within us cifically the use of adult stem cells which patented. that causes us to bristle when we think has already produced some promising devel- ‘‘Our policy has not changed,’’ Quinn said. about creating life just for the purpose opments. ‘‘It is not changing. We do not patent claims of destruction. These are a few of many letters that drawn to humans.’’ Here is a gentleman who wrote to we received from people who are suf- However the Missouri patent is ultimately interpreted, the case does point up what me. He is from Granbury, TX. His name fering from some of these diseases who some experts see as a gap in U.S. law. The is James Kelly. He is in a wheelchair. say there is a better way to go, as I policy to which Quinn referred is just that— He said: have noted earlier. a statement of intent issued by the patent For the past five years I’ve lived in a self- I want to make another point on this office 15 years ago. It is subject to change, to imposed cocoon that includes a computer, a RECORD.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5527 The Senator from Utah, who has then, if it is property at this point, at represents 40 percent of all life insur- worked with me on many issues, says what point in time does it become a ance in force in the United States, or, these are just a few cells. They are just person that it cannot be patented? $6 trillion of protection to Americans— a few cells. They are just a few cells. My submission to you is, you should most of whom are average working I want to show you Hannah when she start at the moment of inception or Americans. Group life insurance is a was just a few cells. This is Hannah. that creation of the clone and say, you highly efficient and inexpensive way to She is age 28 months, on April 1. cannot patent the person. It is against deliver much needed security to people This is Hannah earlier. This is Han- the 13th amendment abolishing slav- who might otherwise have little or no nah in the womb at 21 weeks. It is a ery. That is the only clean spot you coverage. This product is inexpensive fairly good picture of her. This is Han- can go in here and declare this is the because it is sold as a single contract nah transferred to mom on April 11, spot we should start. between an insurance company and a 1998. Hannah was conceived. She was This should be a relatively easy and corporate buyer, the employer, and frozen. She was adopted as a frozen em- straightforward issue. It does not stop covering a great number of lives. This bryo. cloning research from taking place. It greatly simplifies and reduces costs of That is interesting. does not stop the funding of cloning re- marketing and administering of the On March 5, 1998, she arrived at a search from taking place. It does not product. It is typically a staple of the clinic. On April 10, Hannah was thawed. stop our scientists from working on the employee benefits package provided by Here she grows outside the womb. And, issue. It simply says, you cannot pat- employers to their employees. on April 11, she is transferred to mom. ent a person. It clarifies that issue for While I support the terrorism insur- And then she goes on down the process. people who desire and seek to do that. ance bill that we consider today, I am If you destroy Hannah here, you have For those reasons, I think we should concerned that it fails to address issues destroyed Hannah there. It is the same be able to vote on this, bring it up. And that threaten the continued vitality of person. Looks different. When she gets I am hopeful all my colleagues will join group life insurance providers. And so I older, she is going to look different. me in voting for the amendment. am pleased to have the opportunity to Madam President, myself, I was once Madam President, I yield the floor. engage in a colloquy on this issue with one of these. You were one of these. Mr. WARNER. Madam President, fol- the Senator from Nebraska, a true ex- The Senator from Nevada was one of lowing the tragic events of September pert on insurance matters, the senior these. If we had been destroyed at this 11, 2001, the insurance industry faced Senator from Maine, and three key stage, we would never have gotten to an unprecedented situation. The final members of the Senate Banking Com- this stage. costs and impact on the insurance in- mittee. It is a life continuum that exists. If dustry and its consumers have yet to I understand that the primary prob- you destroy me here, I never get there. be determined. lem, both for the property and casualty That is a biological fact. There is no Although secondary insurers will insurers, as well as the group life insur- theory involved. There is no theology help to cover some of the expenses as- ers, is the difficulty in obtaining rein- involved. This is a biological fact. sociated with the September 11 at- surance after the disaster. Am I cor- Hannah was a few cells. We all were tacks, it is critical for the Senate to rect? a few cells at some point in time. If consider and pass legislation to address Mr. DODD. The Senator’s under- you destroy us here, you destroy us the risks of future terrorists attacks. standing is correct. Reinsurance is im- there. If you destroy a caterpillar, you The administration, the insurance in- portant to the property and casualty never get the butterfly, as much as we dustry, and policy holders throughout insurers as well as to the group life in- may want it. the various and diverse sectors of the surance industry. My point in continuing this descrip- economy, state the critical importance Mr. NELSON of Nebraska. I thank tion for people is because this is just a of passing legislation in a timely man- the Senator from Connecticut, who has few cells, it is true—it is just a few ner. played such a key role in bringing this cells—but if you destroy those few The attacks in September dealt a important bill to the floor. I also thank cells, Hannah is destroyed. detrimental blow to an already slug- the Senator from Maine for raising the At what point in time do you put any gish economy leaving the health and profile of this issue in the Senate. value to this life? Do we put value to stability of the economy very uncer- It is my understanding as well that Hannah when she is 28 months? I would tain. Although the economic outlook is the group life industry is experiencing say everybody in this body would improving, further delay in passage of difficulties in obtaining reinsurance. I agree. What do you put as Hannah’s a terrorism insurance measure will ad- understand, for example, that one worth on December 31, 1998, when she versely affect economic progress and group life insurer covered four cor- came out of the womb? Everybody in growth. porate groups in the World Trade Cen- this body agrees you put value to her Since September we have passed the ter, with over $150 million in losses. All at that point. Do you put value to her September 11 Victims Compensation but $6 million was paid by reinsurance. at 21 weeks in the womb? Some people Fund, the Air Transportation Safety Had that insurer not had reinsurance, in this body would question that, and Stabilization Act, and the Bioter- its financial security would have been whether you would put worth to her at rorism Preparedness Act. severely compromised. It is not un- that point. How about April 11, when The insurance industry is also facing usual for group life insurance losses to she is outside the womb? Some people a potential crisis. It is now June 13, be 96 percent covered by reinsurers. would raise questions about that. 2002, and we still have not passed a bill. Now, however, the catastrophic rein- My point is, if you value her here, Every day that we fail to do so, the surance market has changed. For those you have destroyed her here in the growing uncertainty in the market companies that use reinsurance, I un- process that we are talking about. threatens the ability of businesses to derstand that premiums have sky- That is not the issue in front of us. obtain adequate and affordable insur- rocketed with 10- to 13-fold increases What I am talking about is the pat- ance. and, in many instances, reinsurance enting. What I am saying here is, what NEED TO ADDRESS GROUP LIFE INSURANCE may not be available at all. Much of is this? Is it a person or a piece of prop- Ms. COLLINS. Madam President, the the reinsurance that is being written erty at this point in time? Patentwise, bill that we are debating today takes excludes acts of terrorism and biologi- what is this? Is it a person or a piece of critical steps to address the problems cal, nuclear and chemical claims. And, property? The argument that is being arising from the September 11 tragedy while reinsurers are either declining to presented to the Patent Office by some that are being experienced by the com- pay for certain claims or simply not of- lawyers is that it is property and can mercial property and casualty insur- fering reinsurance for certain occur- be patented. But others are saying, it ance industry. I understand however, rences, the group life insurers are not is life; it cannot be patented. That is that the group life business has also allowed by their State insurance com- the position of the Patent Office. been impacted by the tragic events of missioners to have the same exclu- This body needs to decide that issue. September 11. Group life insurance cov- sions. And so I ask the distinguished And we are going to have to decide, ers nearly 160 million Americans and ranking member of the Senate Banking

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5528 CONGRESSIONAL RECORD — SENATE June 13, 2002 Committee, does the bill that we are Mr. GRAMM. I would say to the Nuclear Waste Policy Act provides a currently debating address the prob- gentlelady from Maine that this is an special statutory authority to make lems being faced by group life insurers? important issue that was brought to exception to contemporary practice.’’ Mr. GRAMM. I thank the Senator our attention only after the basic legis- That is not the case. I have the act from Nebraska for raising this impor- lation was drafted. For that reason, I right here. tant question. I believe that this bill have every intention of making sure The Nuclear Waste Policy Act of 1982 does not speak individually to the that, in conference, we give full consid- does state that it shall be in order ‘‘for issues now confronting the group life eration to the problems faced by the any Member of the Senate to move to insurance industry. I would note that group life industry. proceed to the consideration of such the bill does contain a provision that Mr. DODD. I concur with the senior resolution.’’ But the act also states requires the Secretary of the Treasury, Senator from Texas and will do all I that the procedures outlined in the Nu- after consultation with the Nation of can to address the legitimate needs of clear Waste Policy Act ‘‘supersede Association of Insurance Commis- group life insurers in conference. To other rules of the Senate only to the sioners and representatives of the in- that end, I would invite the group life extent that they are inconsistent with surance industry and other experts, to industry to continue to work with us such other rules.’’ study the potential effects of acts of so that we can better understand the The Nuclear Waste Policy Act provi- terrorism on the availability of life in- problems that it now faces. sion permitting any Member to move surance and other lines of insurance Mr. GREGG. I share the concerns of to proceed to the consideration of the coverage. my colleagues regarding this issue and Yucca Mountain resolution is con- Ms. SNOWE. I thank the senior Sen- would add that we should facilitate in- sistent with Senate rules, therefore it ator from Texas for his remarks. I am surance coverage for buildings subject does not supersede the rules of the Sen- concerned that the study may not be to terrorist attacks, as well as for the ate. In the modern history of the Sen- completed in sufficient time to help people who work inside them. I look ate, no Member, other than the major- the group life insurers avail themselves forward to addressing these issues in ity leader (or a designee), has success- of the help that the property and cas- conference. fully made a motion to proceed to a ualty companies are getting in this Mr. REID. Madam President, I sug- matter or measure. bill. I would therefore ask the Senator gest the absence of a quorum. Here are the facts: from South Dakota, a senior member The PRESIDING OFFICER. The CRS indicates there are six statutory of the Senate Banking Committee, if clerk will call the roll. expedited procedures in current law he believes the needs of group life in- Mr. REID. Madam President, I ask which explicitly state that ‘‘any Mem- surers are adequately addressed in this unanimous consent the order for the ber of the Senate’’ may offer the mo- bill or its companion measure, passed quorum call be rescinded. tion to proceed: Executive Reorganiza- by the House last November? The PRESIDING OFFICER. Without tion Act; Atomic Energy Act; Defense Mr. JOHNSON. I thank the senior objection, it is so ordered. Base Closure and Realignment Act of Senator from Maine for her question. I f 1990; Balanced Budget and Emergency believe that the needs of group life in- Deficit Control Act; Balanced Budget surers are not adequately met by this MORNING BUSINESS Emergency Deficit Control Act; Nu- bill. I find this problematic because of Mr. REID. Madam President, I ask clear Waste Policy Act of 1982. the role that group life insurance plays unanimous consent the Senate now According to a March 28, 2002 CRS for the majority of American families. proceed to a period of morning business memorandum, the language in these I am particularly concerned about the with Senators allowed to speak therein six statutes which states that ‘‘any families of firefighters and other first for not to exceed 5 minutes each. Member of the Senate’’ may offer the responders. We ask firefighters and The PRESIDING OFFICER. Without motion to proceed is ‘‘consistent with other first responders to risk their objection, it is so ordered. the Standing Rules of the Senate, lives for us in the event of a terrorist f which permit any Senator to make a attack. We have to make sure that motion to proceed, but also with the YUCCA MOUNTAIN LEGISLATION basic group life insurance is there for general Senate practice under which them. I am also concerned about fami- Mr. ENSIGN. Madam President, I rise Senators routinely concede to the ma- lies whose wage earners are at the today to respond to remarks by the jority leader the function of taking ac- lower end of the pay scale. These fami- senior Senator from Idaho on the Sen- tions to determine the floor agenda. lies often find that they are able to se- ate floor procedures outlined in the Nu- So the Nuclear Waste Policy Act is cure more life insurance than they clear Waste Policy Act regarding not, as the senior Senator from Idaho could otherwise afford because their Yucca Mountain. And I come to the stated, ‘‘a special procedure.’’ employer is subsidizing it. floor today out of great respect for the Next, a June 11 CRS memorandum Finally, I am concerned about those traditions of the U.S. Senate. I am a indicates that since the 100th Congress, families with a spouse who has had a freshman Senator. I have only been consideration of five measures was gov- serious medical problem. These fami- here a year. But one of the first things erned by some statutory procedure ex- lies often find that the only life insur- I did when I arrived was to seek the ad- plicitly permitting any Senator to ance they can afford or even find is vice of the senior Senator from West offer a motion to proceed to consider. group life. Virginia, Senator BYRD, our very own In three of these cases, action to call We need to make sure that this in- Senate historian. I asked him for a up the measure for consideration was dustry remains highly competitive and copy of his history of the Senate which taken by the Senate majority leader. able to pay all of the claims that might I have turned to often. I haven’t had However, in two of those cases, no Sen- be made in the event of a future ter- the opportunity to speak to him di- ator took action to call up the other rorist attack. rectly on this matter, but I turned to two measures. The majority leader se- Ms. COLLINS. I thank my colleagues his books for guidance. cured their indefinite postponement. for participating in this colloquy, Madam President, when you have the That means no Senators offered a mo- which has added measurably to the de- chance, turn to Volume II page 191, and tion to proceed, even when explicitly bate on the underlying bill. I thank see what Senator BYRD says about the permitted to do so by statute. The ma- particularly the distinguished senior powers of the majority leader. He says jority leader kept control of the Sen- Senators from Texas and Connecticut, the majority leader . . . ‘‘determines ate. without whom this bill would not be what matters or measures will be The Senate is a body which, quite before us today, and I would like to ask scheduled for floor action and when.’’ rightly, reveres tradition. We must, as them if they would commit to doing all The Senator from Idaho is planning to we have so few rules. As a new Member, they could to ensure that the legiti- change that by asserting that it would I relied on the guidance from the Par- mate needs of group life insurers are be alright for any member to deter- liamentarian, the Congressional Re- addressed in the conference on this leg- mine when the Yucca Mountain resolu- search Service, and my senior col- islation. tion comes to floor. he said that, ‘‘the leagues. I am certain that if anyone,

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5529 other than the majority leader, suc- thousands of dollars worth of children’s Quoting his mother, Barbara Nalley, cessfully offers a motion to proceed to furniture, on behalf of Mary and Sam ‘‘He’s mildly autistic, but he’s chan- the Yucca Mountain resolution, it will Haskell, to Sela Ward’s Hope Village neled that into his spelling.’’ break with Senate tradition, under- Orphanage located in Meridian, MS. Steven’s accomplishment serves as a mine the goal of the majority leader, It should be duly noted that Mrs. Ire- reminder to us all that we can accom- and allow other Senators to control the land’s generosity, patronage, and char- plish astonishing things when we are floor. I hope the Members of this body ity is not limited to benefitting com- willing to put in great time and effort will think before they move forward on munities located in my home State of for them. Steven’s approach to adver- the resolution. Mississippi. Examples of Mrs. Ireland’s sity is to not back down, but rather to In closing, I thank the majority lead- commitment to community service on fight until he has conquered all obsta- er. He is keeping his word that he gave a national scale include currently serv- cles and achieved his objective. I find to the people of the State of Nevada, ing as Ambassador of both Women’s this attribute of his remarkably inspir- and the people of the State of Nevada Health Issues and the National Wom- ing. say thank you to the majority leader. en’s Cancer Research Alliance on be- Not only am I highly impressed with f half of the Entertainment Industry Steven’s workmanship as an out- Foundation. Mrs. Ireland also holds the standing speller, but he also is a RECOGNIZING MRS. KATHY title of National Chair of Family Serv- straight A student and a member of his IRELAND ices and Parenting for the Athletes and school’s honor society. He exemplifies Mr. LOTT. Madam President, since Entertainers For Kids non-profit orga- a hard working young man and is a age 17 Mrs. Kathy Ireland has been nization. As chairperson she personally great asset for Mississippi. blessed to have assembled an illus- sees to it that AEFK’s mission of em- I know my colleagues will join me in trious career as an actress, supermodel, powering our youth through mentoring congratulating Steven on his tremen- and vocalist. Her numerous talents partnerships and positive experiences dous accomplishment and wishing him have afforded her the opportunity to be is achieved. Mrs. Ireland also joins the best in all of his future endeavors. regularly featured on the covers of with an organization called Feed The Congratulations, Steven. such prestigious magazines as Cos- Children each holiday season, in super- f mopolitan, People, Glamour, McCalls, vising the dissemination of over 170,000 FLAG DAY and Redbook. Likewise, her inherent pounds of clothing, food, and toys to capabilities have provided her with the needy children nationwide. Mrs. Ire- Mr. LEAHY. Madam President, as we good fortune to appear as a special land is a long-standing supporter of the approach Flag Day tomorrow, I guest on nationally renowned tele- Special Olympics, and has played an in- thought it worthwhile to reflect on the vision programs such as The Tonight tegral role in the establishment and innate patriotism of so many Ameri- Show with Jay Leno, The Today Show, continued development and success of cans. Justice Brennan wrote, ‘‘We can Oprah, Entertainment Tonight, and the Dream Foundation, which provides imagine no more appropriate response Access Hollywood. This abundance of terminally ill adults with the resources to burning a flag than waving one’s accolades has established Mrs. Ireland necessary to fulfill a special dream or own.’’ That is exactly how the Amer- as a public figure of world-wide fame be granted a final wish. ican people respond. and recognition. Despite her responsibilities associ- Immediately following September 11, My purpose here today is not to rec- ated with being a loving wife, devoted Americans all around the country ognize Mrs. Ireland for her extreme mother of two, Sunday school teacher, began to fly flags outside their homes number of personal achievements, im- clothes designer, supermodel, actress, and businesses, to wear flag pins on pressive as they are, but rather to ex- and vocalist, Mrs. Ireland expresses their lapels, and to place flag stickers pand on the manner in which she uses and executes an unequivocal desire to on their automobiles. This surge in pa- the fame and recognition gained from champion the causes of others. I take triotism over the past 9 months has such accomplishments as a medium by great personal pride and gain tremen- made American flags such a hot com- which to make charitable contribu- dous fulfillment in recognizing Mrs. modity that several major flag manu- tions to our local and national commu- Kathy Ireland before you on the Senate facturers cannot keep flags stocked on nities. As I will bring to your attention floor this day, and encourage all Amer- store shelves. Within one week of the in the next few minutes, Mrs. Ireland’s icans possessing the will, desire, and attacks, demand for American flags personal accomplishments pale in com- resources to do so, to live according to was 20 times higher than is typical for parison to the number of ways in which her example. that time of year, according to the Na- she gives back to our communities, f tional Flag Foundation in Pittsburgh, both local and Nation wide. Pennsylvania. During that same week, I was made aware of Mrs. Ireland’s TRIBUTE TO STEVEN NALLEY Wal-Mart sold 450,000 flags. Within benevolent character just recently, as Mr. LOTT. Madam President, today I days of the bombing, K-mart sold it was brought to my attention that rise to salute Stephen Matthew Nalley 200,000 flags. she was responsible for sending an from Starkville, MS, for his out- This expression of national pride was eighteen wheeler filled with enough standing achievement in this year’s na- spontaneous, and consisted of indi- food to feed 1600 needy families for two tional spelling bee. Stephen finished in vidual Americans taking conscious weeks to Monroe County in my home second place after spelling words such acts of patriotism. No one in the gov- State of Mississippi. This is the second as ‘‘altricial,’’ ‘‘muliebral’’ and ‘‘seri- ernment decreed that Americans must consecutive year Mrs. Ireland has sent ceous.’’ He endured ten rounds, defeat- purchase and fly flags. There was no of- the Holiday Food Truck to aid Mis- ing 248 other spellers between the ages ficial direction stating that Americans sissippians in need. In 2000, the truck of 9 through 15. should wear clothing and accessories was dispersed to the northwest region The Louisville Courier-Journal start- with flag designs, but these have been of Mississippi, also known as the Mis- ed the national spelling bee in 1925 wildly popular as well. sissippi Delta. A philanthropic concert with only 9 contestants. Scripps How- Supporters of S.J. Res. 7, a constitu- entitled ‘‘Stars Over Mississippi’’ is ard News Service assumed sponsorship tional amendment to prohibit flag held biannually for the purpose of rais- in 1941. This year Steven and 249 other desecration, believe that Americans ing funds to be allocated towards in- participants helped celebrate the 75th need a lesson in how to respect the creasing the educational opportunities Annual Scripps Howard National Spell- flag. I disagree, and I believe that the available to the children of Mississippi. ing Bee held here in Washington, D.C. American people have proven these Mrs. Ireland has further benefitted my Steven was born with a particular Senators wrong. State by selflessly devoting her time to type of autism that impairs social At the height of World War II, in the perform in many of these concerts. interaction and contributes to repet- case of West Virginia State Board of Mrs. Ireland has also asserted herself itive behavior patterns. Fortunately, Education v. Barnette, Justice Jackson as a benevolent benefactress of the he has been able to work with his dis- wrote, ‘‘To believe that patriotism will state of Mississippi, by donating many ability and use it to his advantage. not flourish if patriotic ceremonies are

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5530 CONGRESSIONAL RECORD — SENATE June 13, 2002 voluntary and spontaneous instead of a goon should be conditioned on con- cessful effort to crush the Taliban, dis- compulsory routine is to make an un- crete, political progress following Daw rupt and demoralize al-Qaida, and free flattering estimate of the appeal of our Aung San Suu Kyi’s release. Intimi- the people of Afghanistan from two institutions to free minds.’’ Patriotism dating and punishing any Burmese who decades of war and despotism. Men and is flourishing in ways that no one could meets with democracy leader Suu women in both nations are safer now have predicted. Americans are rallying Kyi—as has already occurred—or con- because of her work, and all of us who around the flag in a voluntary show of tinuing to restrict her movements is value freedom owe Sgt. Shero a pro- strength that demonstrates America’s wholly unacceptable and must not be found debt of gratitude and honor. I commitment to freedom and liberty. tolerated. know that the thoughts and prayers of Respect cannot be coerced or com- The State Department made a grave many people are, like mine, with her pelled. It can only be given voluntarily. mistake in allowing a Burmese colonel family and her friends tonight. Some may find it more comfortable to to visit Washington last month. The Like the two service members who silence dissenting voices, but coerced regime exploited this mistake when it died with her, and the 37 others killed silence can only create resentment, touted in a press statement: ‘‘This was in Afghanistan during this war, includ- disrespect, and disunity. You don’t our first conversation at this level with ing West Virginian Sgt. Gene Vance, stamp out a bad idea by repressing it; American authorities since 1988.’’ We Jr., Sgt. Shero bravely did her duty as you stamp it out with a better idea. should not allow an illegal military an American. Now, let us pledge to do My better idea is to fly the flag, not junta to spin our intentions—or our ours in her honor. Let us remember al- because the law tells me to; not be- policy. ways, including on the floor of this cause there is something that says this It is my expectation that the junta Senate Chamber, that wars are about is what I have to do to show respect; I will allow Suu Kyi and the National people, and freedom, and lives. Let us do it because, as an American, I want League for Democracy to conclude its make certain that our armed forces to. That is why the American flag has assessment of Burma’s humanitarian have the tools they need to meet any always flown at the Leahy home. The needs before moving forward on any foe, any where, any time. And let us extraordinary display of patriotism we new programs or initiatives. Restrict- treasure the freedoms we enjoy as have witnessed over the past 9 months ing Suu Kyi’s access to U.N. offices in Americans and give thanks for the is evidence that the American public Rangoon serves no logical purpose. service members who fight to protect agrees. Those of us who have long cham- them. f pioned freedom and democracy for the Sgt. Shero represented the best of people of Burma must be vigilant in West Virginia and the best of America. LOCAL LAW ENFORCEMENT ACT the days, weeks, and months ahead. It She was strong, courageous, and dedi- OF 2001 is premature for the Washington—or cated. She will forever serve as a role Mr. SMITH of Oregon. Madam Presi- any other foreign capital—to be consid- model for West Virginians, men and dent, I rise today to speak about hate ering ‘‘rewards’’ for the SPDC: 1,500 po- women alike, who loved their country crimes legislation I introduced with litical prisoners have yet to be re- and who, like her, know our ideals are Senator KENNEDY in March of last leased; forced labor continues worth fighting for. year. The Local Law Enforcement Act unabated; ethnic nationalities suffer f of 2001 would add new categories to horrific human rights abuses; and, dia- THE ABM TREATY current hate crimes legislation sending logue between the NLD and the regime a signal that violence of any kind is has not resumed. Mr. REED. Madam President, I rise unacceptable in our society. The State Department would be wise to acknowledge the fact that today, 6 I would like to describe a terrible to withhold requests to Congress for months after President Bush an- crime that occurred December 6, 2000 in expanding narcotics cooperation with nounced the U.S. intention to with- Placer County, CA. A 37-year-old Afri- the Burmese—including the use of draw from the ABM Treaty, the Treaty can American woman was attacked at training facilities in Thailand—lest lapses. The 30-year old treaty, which a roadside rest stop. The perpetrators, they be guilty of premature jubilation most consider to be the cornerstone of two men, were hiding in a restroom in Burma. arms control, now no longer exists. stall when they attacked, bound and As I wrote to President Bush last The significance of today has gone gagged the victim with duct tape, sexu- month, the SPDC should be judged not largely unnoticed. Press coverage has ally assaulted her, and wrote racial by what they say, but rather by what been minimal so most American will slurs all over her body. Police inves- they do. It does not look like the tiger likely not realize what happens today. tigated the assault as a hate crime. in Burma has changed its stripes. The objections of Russia and China to I believe that government’s first duty f the withdrawal have been muted. Our is to defend its citizens, to defend them European allies have reluctantly ac- against the harms that come out of THE DEATH OF S.SGT. ANISSA A. cepted the withdrawal. Some would say hate. The Local Law Enforcement En- SHERO IN AFGHANISTAN that this lack of fanfare proves that hancement Act of 2001 is now a symbol Mr. ROCKEFELLER. Madam Presi- the ABM Treaty was a relic of the cold that can become substance. I believe dent, for many generations, the people war and needed to be renounced. I that by passing this legislation and of West Virginia have distinguished would argue that while today’s with- changing current law, we can change themselves by their willingness to drawal seems insignificant at this mo- hearts and minds as well. serve their country in the armed ment, it has profound implications for f forces. West Virginians understand the the future. cost of freedom and have always been When President Bush announced his MISSED OPPORTUNITIES IN willing to pay it when called. Today, intention to withdraw from the treaty, BURMA? we are reminded again just how great he stated: ‘‘I have conclude the ABM Mr. MCCONNELL. Madam President, that cost can be, as we mourn the loss Treaty hinders our government’s abil- leave it to the repressive generals in of Air Force Staff Sgt. Anissa A. Shero, ity to develop ways to protect our peo- Rangoon to miss an opportunity to se- of Grafton, WV, who died in a tragic ple from future terrorist or rogue-state cure peace and reconciliation in airplane crash near the town of Gardez, missile attacks.’’ I would argue that Burma. I am referring to today’s BBC Afghanistan. this statement is incorrect. First, the article entitled ‘‘Burma Renews Suu Sgt. Shero was a volunteer, who greatest threat from terrorists is not Kyi Isolation.’’ chose to serve her country in the face from a long range missile but from I want to be very clear to the repres- of grave danger. When terrorists methods we have witnessed and sive State Peace and Development struck, she left behind the mountains watched for since September 11 conven- Council (SPDC), the Administration, of West Virginia for the mountains of tional transportation like planes and and the international community—par- Afghanistan, to risk her life so that we cargo ships, used as weapons. ticularly Japan—that the level of en- might live ours in freedom and safety. Secondly, any testing of missile de- gagement with the hard liners in Ran- She was part of an extraordinarily suc- fenses that could be planned for the

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5531 next several years would not violate So, while there seems to be little con- logical arms control are but a few of the ABM Treaty. We simply do not sequence to cessation of the ABM Trea- the areas in which she has assisted have the technology yet to test a sys- ty today, if we are not careful it could Congress. A list of her reports and ana- tem in violation of the treaty. An arti- be the spark of a new arms race. lytical memoranda to Congress would cle in today’s New York Times states As of today, the ABM Treaty no run several pages, but a brief survey that on Saturday, ground will be bro- longer exists. But our work has just finds: Congress and the Termination of ken for a missile test site in Fort begun. Withdrawing from this treaty the Vietnam War, Nuclear Prolifera- Greely Alaska. The article states that dictates that we redouble our efforts on tion: Future U.S. Foreign Policy Impli- this test site would violate the treaty. other nonproliferation and arms con- cations, Congress and Arms Control That is not correct. Under Article IV of trol agreements. Since September 11, Policy, and U.S. Foreign Military Sales the ABM treaty and paragraph 5 of a every American has become acutely Legislation. Ms. Wu also coordinated 1978 agreed statement, the U.S. simply aware of the need to eliminate and se- and contributed to the eight-part Fun- has to notify Russia of U.S. intent to cure nuclear materials so that they do damentals of Nuclear Arms Control, build another test range. As a matter not become the weapon of a terrorist. issued as a Committee Print by the fact, the fiscal year 2002 Defense au- The only way we will not regret to- House Committee on Foreign Affairs. thorization act authorized the funding day’s action is to prove by future ac- On two occasions, Ms. Wu was detailed for the Alaska test bed prior to the tions that the U.S. is truly committed to the Arms Control and Disarmament President’s announcement to withdraw to arms control and nonproliferation. Agency to advise in the preparation of from the treaty. As a supporter of the The United States should robustly fund Arms Control Impact Statements, en- ABM Treaty and a member of the Sen- Cooperative Threat Reduction pro- suring attention to congressional in- ate Armed Services Committee, I can grams. The United States should pur- tent and interests. assure you that Congress clearly had sue further negotiations with the Rus- In addition to her research respon- no intent to authorize an action that sians and agree to actually dismantle sibilities, Ms. Wu has undertaken nu- would violate the treaty. The tech- some weapons rather simply place merous administrative responsibilities. nologies which would indeed violate them in storage. The United States Prior to her present position, within the ABM Treaty, sea-based and space- should also ratify the Comprehensive the Foreign Affairs Division she has based systems, are mere concepts that Test Ban Treaty. served as head of the Central Research are years away from constituting an In his withdrawal announcement last Unit, the International Organizations, action that would violate the treaty. In December 13, President Bush said, Development, and Security Section, sum, despite the claims of the Presi- ‘‘This is not a day for looking back, and the Defense Policy and Arms Con- dent, there was no compelling reason but a day for looking forward . . . ’’ I trol Section. Following these assign- to withdraw at this time. agree. We cannot look back to a treaty ments she moved on to become the In addition, today, the United States that no longer exists, but we must Foreign Affairs Division’s Program Co- becomes the first nation since World work diligently from this day forward ordinator and later Research Coordi- War II to withdraw from a major inter- to ensure that the United States is nator. Ms. Wu has also overseen a national security agreement. In the taking the steps necessary to maintain unique and vital resource to the Con- past 50 years only one other nation has the peace and security once sustained gress, CRS’s Language Services, which attempted such an action. In 1993 by the ABM Treaty. provides foreign language translations North Korea announced its intention f for both Members and Committees. For to withdraw from the Nuclear Non- the Liberty of Congress as whole, Ms. proliferation Treaty which caused an ADDITIONAL STATEMENTS Wu has served as a member of the international crisis until North Korea Women’s Program Advisory Com- reconsidered. The U.S. withdrawal has APPRECIATION FOR LENEICE WU mittee, and as both Equal Employment not caused an international crisis, but Opportunity Counselor and Officer. it does send a subtle signal. If the U.S. ∑ Mr. BIDEN. Madam President, I Ms. Wu is a fine example of those can withdraw from a treaty at any would like to take this opportunity to many staff in this institution who time without compelling reasons, what extend the appreciation of the Senate work in virtual anonymity to support is to stop Russia or China from with- to a devoted public servant at the Con- the important work of the Congress. drawing from an agreement? Further- gressional Research Service. Leneice On behalf of my colleagues, I extend more, what basis would the U.S. have Wu is retiring from CRS after 34 years our deep appreciation to Ms. Wu for her for objecting to such a withdrawal of service to the United States Con- service, and wish her the very best in since our nation began the trend? This gress, a period spanning 17 Congresses her future endeavors.∑ and the tenures of eight Presidents. administration must keep in mind that f other nations can also take unilateral Only five sitting members of the Sen- actions, but we might not be as com- ate and three Members of the House of WE THE PEOPLE: THE CITIZEN fortable with those decisions. Indeed, Representatives have longer terms of AND THE CONSTITUTION 2002 NA- as we seek to eliminate the threat of service to the Nation. This length of TIONAL COMPETITION weapons of mass destruction, this with- service is not only a credit to Ms. Wu, ∑ Mr. LUGAR. Madam President, I am drawal sends the opposite signal. but also a demonstration of the dedica- pleased to rise today to recognize the As I mentioned before, the ABM trea- tion that the staff of the Congressional signal accomplishments of students ty was the cornerstone of arms control. Research Service bring in their support from Castle High School, of Newburgh, With the cornerstone gone, there are of our work in Congress. IN, who were the Central States Re- worries about an increase in nuclear After graduating from Mary Wash- gional Award winners in the 2002 ‘‘We proliferation. As Joseph Cirincione ington College in 1968, Ms. Wu began the People: The Citizen and the Con- said, ‘‘No matter what some people her career with the Library of Congress stitution’’ national competition. may tell you, each side’s nuclear force as a research assistant, and is now con- The ‘‘We the People: The Citizen and is based primarily on the calculation of cluding it as the CRS Deputy Assistant the Constitution’’ program, adminis- the other side’s force.’’ If China be- Director of the Foreign Affairs, De- tered by the Center for Civic Edu- lieves its force could be defeated by a fense and Trade Division. During her cation, promotes an understanding of U.S. missile shield, China may decide decades of service, Ms. Wu has provided the rights and responsibilities of it is in its best interest to increase the research and analytical support to United States citizens. Students in the number of weapons in its arsenal to Members of Congress on a broad range elementary, middle, and high school overwhelm the shield. If China in- of international relations issues, with a levels learn about the values and prin- creases its nuclear missile production, particular focus upon the difficult ciples embodied in the Bill of Rights neighboring rival India may find it nec- challenges of arms control. The Stra- and the United States Constitution. essary to recalculate the size of its tegic Arms Limitation Talks, START, The Castle High School team competed force. Of course, Pakistan would then the Nuclear Test Ban Treaty, nuclear against fifty classes from throughout increase its inventory to match India. non-proliferation, and chemical-bio- the country and testified before a mock

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5532 CONGRESSIONAL RECORD — SENATE June 13, 2002 Congressional hearing as experts on Nanz & Kraft Florists of Louisville, to underscore Yale’s deep and renewed Constitutional law. This kind of prac- KY. For over 150 years, Nanz & Kraft commitment to establishing itself as tical application of constitutional prin- has served Kentuckians, providing one of the world’s premier engineering ciples helps students in addressing them with beautiful and memorable institutions. modern public policy concerns. floral arrangements for birthdays, an- I cannot imagine another person for These award-winning students dem- niversaries, funerals, hospital visits whom this prestigious award is more onstrated an extensive understanding and various other occasions. Nanz & richly deserved. Professor Woodall, of the ideology of our governmental Kraft is the single largest florist shop who holds the position of C. Baldwin framework. Their commitment to ex- in the Commonwealth of Kentucky, Sawyer Professor of Electrical Engi- cellence and thorough preparation is and one of the biggest in the entire neering at Yale, has conducted pio- reflected in their achievement. They United States. neering research in compound semicon- have truly brought pride to the State In 1850, the year Zachary Taylor died ductor materials and devices over a ca- of Indiana. and Millard Fillmore became president reer spanning four decades. Fully half The names of these young Hoosiers of the United States, Henry Nanz de- of the entire world’s annual sales of are: Carrie Baum, Michael Carter, cided to open a quaint little flower compound semiconductor components Marc Chapman, Allison Craney, Robert shop on Fourth Street in downtown are made possible by his research leg- Dagit, Kelly Daniels, Karen De Neve, Louisville. He cultivated his flowers on acy. He invented electronic and Phillip Exline, George Ferguson, Jr., a one-acre suburban plot and in a 12′ x optoelectronic devices seen ubiq- Bryan Hart, Kimberly Hedge, Melanie 20′ green house. In 1870, with business uitously in modern life, including the Hiatt, Rachel Hopper, Brett Howard, thriving, Henry Nanz packed his bags red LEDs used in indicators and stop- Eric Jenkins, Andy Jobe, Yvonne and moved the company to 30 acres of lights, the infrared LED used in CD Laaper, Christine Lowe, Maureen Mar- land in the St. Matthews area owned players, TV remote controls and com- tin, Steven Melfi, Amanda Merold, by a Mr. Charles Neuner. In 1872, Mr. puter networks, the high speed transis- Peter Murphy, Allan Patterson, Lynn Neuner made the decision to join the tors used in cell phones and satellites, Perry, Mina Pirkle, Sarah Relyea, Ra- profitable company. For the next 82 and the weight-efficient solar cell. chel Roper, Michael Schmidt, Kellen years, the business was known as Nanz Professor Woodall spent most of the Scott, Jeffrey Seibert, Kelly Smith, & Neuner. early and mid parts of his career at the Matthew Suter, Prashant Tatineni, When in 1900 Nanz & Neuner cele- IBM Thomas J. Watson Research Cen- Stephanie Wurmnest. brated their 50th anniversary, the St. ter, where he rose to the coveted rank I would also like to commend their Matthews site contained an astounding of IBM Fellow. He built the first high teacher, Stan Harris, who did a re- 60 greenhouses, a 15-acre nursery, and purity single crystals of gallium arse- markable job preparing the team for ten acres devoted to roses and other nide there, enabling the first definitive this achievement. He is a talented edu- flowers, including Field Grown Roses, measurements of carrier velocity cator who has provided tremendous the company’s specialty. In 1954, Nanz versus electric field relationships, as leadership for students in the New- & Neuner officially became Nanz & well as GaAs crystals used for the first burgh area. non-supercooled injection laser. He and Again, congratulations to Castle Kraft, changing names but retaining Hans Ruprecht pioneered the liquid- High School on a remarkable perform- the same formula for success. Today, phase epitaxial growth of both Si doped ance in the ‘‘We the People: The Cit- Nanz & Kraft’s main store is a 20,000 GaAs used for high efficiency IR LEDs, izen and the Constitution’’ national square foot building. There are three and gallium aluminum arsenide competition.∑ branch stores, and the business has about 125 employees, half full-time and (GaAlAs), which led to his most impor- f the rest part-time. They are open every tant research contribution so far the 88TH BIRTHDAY OF MILWAUKEE day of the year except Christmas and first working heterojunction. They NATIVE LARRY LEDERMAN make more than 200 deliveries a day. built it from gallium aluminum arse- ∑ Mr. KOHL. Madam President, I rise Whether it be a birthday or a first nide mated to gallium arsenide here today to congratulate Milwaukee date, Kentuckians can count on Nanz & (GaAlAs/GaAs), and it remains the native Larry Lederman, who National Neuner to brighten up the occasion. world’s most important compound Racquetball Magazine calls the ‘‘found- I ask that my fellow colleagues join semiconductor heterojunction. ing father of modern racquetball’’ and me in thanking all the men and women He then invented and patented many who recently celebrated his 88th birth- who have worked so hard over the last important commercial high-speed elec- day last month. 152 years to make Nanz & Kraft one of tronic and photonic devices which de- Larry is a prominent figure not only the most profitable and well-respected pend on the heterojunction, including in Wisconsin sports history, but in floral businesses in the United States. bright red LEDs and the two classes of American sports history. In 1939 he was Nanz & Kraft truly is a tribute to the ultra-fast transistors, called the the best wrestler in America in his American capitalist spirit. They have heterojunction bipolar transistor weight class and arguably the best served the Commonwealth in three dif- (HBT) and pseudomorphic high-elec- wrestler in the world. Larry was named ferent centuries now, through a Civil tron-mobility transistor (pHEMT). to six Hall or Wall of Fames, including and two World Wars, and through 21 Many new areas of solid-state physics the Wisconsin AAU Hall of Fame in different presidents, and I would just have evolved and been realized as a re- 1995, and most recently was elected to like to pass along my thanks and admi- sult of his work, including the semi- the International Wrestling Hall of ration.∑ conductor superlattice, low-dimen- Fame in Stillwater, Oklahoma. f sional systems, mesoscopics, and reso- Five years ago, the AAU selected nant tunneling. THE 2002 NATIONAL MEDAL OF Professor Woodall was elected to the Larry to give back the medals to the TECHNOLOGY TO PROFESSOR world’s greatest athlete, Jim Thorpe, National Academy of Engineering in JERRY M. WOODALL OF YALE 1989 and is a fellow of the American taken from him in 1918, at a special UNIVERSITY ceremony in Wisconsin. Physical Society (APS), the Institute For 88 years Larry Lederman has pro- ∑ Mr. LIEBERMAN. Madam President, of Electrical and Electronics Engineers vided us with many great memories I rise today to express my heartfelt (IEEE), the Electrochemical Society and touched many lives, and it is my congratulations to a Connecticut resi- (ECS), and AVS. He has served as presi- honor here today to celebrate his many dent, Professor Jerry M. Woodall of dent of the ECS and AVS, and on the achievements.∑ Yale University, for being awarded the board and executive committee of the f 2002 National Medal of Technology, our American Institute of Physics (AIP). country’s highest honor celebrating He has published 315 publications in TRIBUTE TO NANZ AND KRAFT America’s leading innovators. This rep- the open literature and been issued 67 FLORISTS resents the first time that a professor U.S. patents. He received five major ∑ Mr. BUNNING. Madam President, I from Yale has ever achieved this ex- IBM Research Division Awards, 30 IBM rise today to pay a proper tribute to traordinary recognition, and it serves Invention Achievement Awards, and an

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5533 IBM Corporate Award in 1992 for the in- force Investment Act and has been a congregation has chosen to change vention of the GaAlAs/GaAs tremendous help to hundreds of dis- sites over the years, and with each heterojunction. Other recognition in- placed workers trying to get back on move, a new vitality has been infused cludes a 1975 Industrial Research 100 their feet. into the church. Over the course of its Award; the 1980 Electronics Division This important program not only history, some fifty ministers have Award of the Electrochemical Society provides up to fifty percent of dis- served here, each building on one an- (ECS); the 1984 IEEE Jack A. Morton placed workers’ wages, but it offers other’s success, and contributing to its Award; the 1985 ECS Solid State skill assessments and retraining, and importance in the community. Science and Technology Award; the help with job applications, inter- I am proud to add my voice in praise 1988 Heinrich Welker Gold Medal and viewing techniques, and stress manage- of the good people—past, present and International GaAs Symposium Award; ment. future—of Grant chapel, and to wish the 1990 American Vacuum Society’s I have heard from many constituents them at least another hundred twenty (AVS) Medard Welch Award, its highest about how important this service has years of prayerful service.∑ been in getting back to work or gain- honor; the 1997 Eta Kappa Nu Vladimir f Karapetoff Eminent Members’ Award; ing skills for a new job. Ms. Mary Paige MESSAGES FROM THE PRESIDENT the 1998 American Society for Engi- Rose recently contacted me to tell me neering Education’s General Electric how CAPECO changed her career. Ms. Messages from the President of the Senior Research Award; and the 1998 Rose writes: ‘‘I was classified as a dis- United States were communicated to ECS Edward Goodrich Acheson Award, placed worker by Oregon’s Employ- the Senate by Ms. Evans, one of his its highest honor. ment Department. They directed me to secretaries. Woodall co-founded LightSpin Tech- go to CAPECO and attend their classes f called Choices and Options. This class nologies, Inc., a high technology start- EXECUTIVE MESSAGES REFERRED up company, and serves as its Chief was instructed by Mary Kinsch who be- Science Officer. From 1993 through came my work force counselor and con- As in executive session the Presiding 1999, he held the Charles William Har- fident. In less than a year, I have Officer laid before the Senate messages rison Distinguished Professorship of opened my own business due to the from the President of the United Microelectronics at Purdue University. services I received from CAPECO . . . States submitting sundry nominations He earned a Ph.D. in electrical engi- When I was fired from my account ex- which were referred to the appropriate neering from Cornell University and a ecutive sales position . . . it devastated committees. (The nominations received today are B.S. in metallurgy from MIT. me. I had never been fired before and I speak with utmost sincerity in ex- never had needed to use these types of printed at the end of the Senate pro- pressing my gratitude to Professor social services. I am forever grateful ceedings.) Woodall for the lifetime of contribu- for CAPECO and for the Oregon Em- f ployment Department for assisting me. tions or, more accurately, several life- MESSAGES FROM THE HOUSE times’ worth of contributions that he I would not be where I am today without the aid. . . . With the help of pro- ENROLLED BILL SIGNED has rendered in service to our nation in At 12:05 p.m., a message from the enabling it to become the world leader grams like CAPECO, I am not a liability to Umatilla County or the State of House of Representatives, delivered by in technology and research. Our lives Ms. Niland, one of its reading clerks, and our society would be dramatically Oregon, I am an asset. I appreciate all the help that Mary Kinsch and announced that the Speaker has signed different today had we not benefitted CAPECO were able to give me through the following enrolled bill: from Professor Woodall’s drive and ge- the Workforce Investment Act. Please S. 2431. An act to amend the Omnibus nius, and it fills me with exceptional know that programs like CAPECO are Crime Control and Safe Streets Act of 1968 to pride to see him recognized for his ef- very needed especially in such a dis- ensure that chaplains killed in the line of forts. Outstanding technologists such tressed area as Umatilla County.’’ duty receive public safety officer death bene- as he create to the tools to fully realize Madam President, I am proud of fits. human and societal potential, and by CAPECO’s important contribution to The enrolled bill was signed subse- having someone as accomplished as the Oregon economy and proud of con- quently by the President pro tempore Professor Woodall on its faculty, both stituents like Ms. Rose who have taken (Mr. BYRD) Connecticut and Yale University will advantage of these services and also At 12:24 p.m., a message from the be well-situated to produce the next contributed to job growth in the state. House of Representatives, delivered by generation of engineering lights. On be- They are a credit to my state of Oregon Ms. Niland, one of its reading clerks, half of your state and your country, and to this country.∑ Professor Woodall, please accept my announced that the House disagrees to f deepest congratulations and thanks.∑ the amendment of the Senate to the f GRANT CHAPEL bill (H.R. 4775) making supplemental ∑ Mr. BINGAMAN. Madam President, appropriations for further recovery THE COMMUNITY ACTION PRO- from and response to terrorist attacks GRAM EAST CENTRAL OREGON on June 14, the church family of Grant Chapel in Albuquerque celebrates what on the United States for the fiscal year (CAPECO) its pastor describes as ‘‘one hundred ending September 30, 2002, and for ∑ Mr. SMITH of Oregon. Madam Presi- twenty years of God’s faithfulness to other purposes, and agrees to the con- dent, I rise today to commend my Grant and to the community of Albu- ference asked by the Senate on the dis- friends at the Community Action Pro- querque.’’ agreeing votes of the two Houses there- gram East Central Oregon, CAPECO. Organized in 1882 as the ‘‘Colored on; and appoints the following Mem- CAPECO was formed in October 1987 to Methodist Mission,’’ it was founded to bers as the managers of the conference support the economic development ef- serve as a place of worship for African on the part of the House: forts of Morrow, Umatilla, Gilliam, and American people in New Mexico. A Mr. YOUNG of Florida, Mr. REGULA, Wheeler Counties through its worker year later, it was one of five churches Mr. LEWIS of California, Mr. ROGERS of training services. awarded a plot of land by New Mexico Kentucky, Mr. SKEEN, Mr. WOLF, Mr. Located in my home town of Pen- Township, Inc., to promote develop- KOLBE, Mr. CALLAHAN, Mr. WALSH, Mr. dleton, OR, CAPECO works with the ment in Albuquerque. In 1892, it be- TAYLOR of North Carolina, Mr. HOBSON, Oregon Workforce Alliance to offer em- came known as the Coal Avenue Meth- Mr. ISTOOK, Mr. BONILLA, Mr. KNOLLEN- ployment and training services to em- odist Church and in 1905 it was re- BERG, Mr. OBEY, Mr. MURTHA, Mr. ployers and citizens of Morrow and named Grant Chapel to honor Bishop DICKS, Mr. SABO, Mr. HOYER, Mr. MOL- Umatilla counties. CAPECO is an ac- Abram Grant of the 5th Episcopal Dis- LOHAN, Ms. KAPTUR, Mr. VISCLOSKY, tive Work-Links partner, offering serv- trict which included the states and ter- Mrs. LOWEY, Mr. SERRANO, and Mr. ices to help job seekers, workers, and ritories in the West. OLVER. employers. The Program has been ac- Building and growing are very much The message further announced that tive since the inception of the Work- part of Grant Chapel’s history. The the House disagrees to the amendment

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5534 CONGRESSIONAL RECORD — SENATE June 13, 2002 of the Senate to the bill (H.R. 4) to en- From the Committee on Science, for MEASURES REFERRED hance energy conservation, research consideration of sections 125, 152, 305–6, The following bill was read the first and development and to provide for se- 801, division B, division E, and section and the second times by unanimous curity and diversity in the energy sup- 6512 of the House bill and sections 501– consent, and referred as indicated: ply for the American people, and for 507, 509, 513–516, 770–772, 807–809, 814–816, H.R. 4019. An act to provide that the mar- other purposes, and agrees to the con- 824, 832, 1001–1022, title XI, title XII, riage penalty relief provisions of the Eco- ference asked by the Senate on the dis- title XIII, title XIV, sections 1502, 1504– nomic Growth and Tax Relief Reconciliation agreeing votes of the two Houses there- 1505, title XVI, and sections 1801–1805 of Act of 2001 shall be permanent; to the Com- on; and appoints the following Mem- the Senate amendment, and modifica- mittee on Finance. bers as the managers of the conference tions committed to conference: Mr. f on the part of the House: BOEHLERT, Mr. BARTLETT of Maryland, ENROLLED BILLS PRESENTED From the Committee on Energy and and Mr. HALL of Texas: Commerce, for consideration of the The Secretary of the Senate reported That Mr. COSTELLO is appointed in House bill and the Senate amendment, that on today, June 13, 2002, she had lieu of Mr. HALL of Texas for consider- and modifications committed to con- presented to the President of the ation of division E of the House bill, ference: Mr. TAUZIN, Mr. BILIRAKIS, Mr. United States the following enrolled and modifications committed to con- BARTON of Texas, Mr. UPTON, Mr. bill. ference: STEARNS, Mr. GILLMOR, Mr. BURR of S. 2431. An act to amend the Omnibus North Carolina, Mr. DINGELL, Mr. WAX- That Ms. WOOLSEY is appointed in Crime Control and Safe Streets Act of 1968 to MAN, Mr. MARKEY, Mr. BOUCHER, Mr. lieu of Mr. HALL of Texas for consider- ensure that chaplains killed in the line of GORDON, and Mr. RUSH. ation of sections 2001–2178 and 2201–2261 duty receive public safety officer death bene- From the Committee on Agriculture, of division B of the House bill, and fits. for consideration of section 401 of the modifications committed to con- f House bill and sections 265, 301, 604, 941– ference. REPORTS OF COMMITTEES 948, 950, 1103, 1221, 1311–1313, and 2008 of From the Committee on Transpor- The following reports of committees Senate amendment, and modifications tation and Infrastructure, for consider- were submitted: committed to conference: Mr. COMBEST, ation of sections 121–126, 151, 152, 401, By Mr. HOLLINGS, from the Committee Mr. LUCAS of Oklahoma, and Mr. STEN- 701, 2101–2105, 2141–2144, 6104, 6507, and on Commerce, Science, and Transportation, HOLM. 6509 of the House bill and sections 102, with an amendment in the nature of a sub- From the Committee on Armed Serv- 201, 205, 301, 701–783, 812, 814, 816, 823, stitute: ices, for consideration of sections 401 911–916, 918–920, 949, 1214, 1261–1262 and S. 633: A bill to provide for the review and and 6305 of the House bill and sections 1351–1352, of the Senate amendment, management of airport congestion, and for 301, 501–507, 509, 513, 809, 821, 914, 920, and modifications committed to con- other purposes. (Rept. No. 107-162). 1401, 1407–1409, 1411, 1801 and 1803, of the By Mr. LEAHY, from the Committee on ference: Mr. YOUNG of Alaska, Mr. Senate amendment, and modification the Judiciary, without amendment and with PETRI, and Mr. OBERSTAR: committed to conference: Mr. STUMP, a preamble: That Mr. COSTELLO is appointed in H. Con. Res. 387: A concurrent resolution Mr. WELDON of Pennsylvania, and Mr. recognizing the American Society of Civil SKELTON. lieu of Mr. OBERSTAR for consideration of sections 121–126 of the House bill and Engineers for reaching its 150th Anniversary From the Committee on the Budget, and for the many vital contributions of civil for consideration of section 1013 of the sections 911–916 and 918–919 of the Sen- engineers to the quality of life of our Na- Senate amendment, and modifications ate amendment, and modifications tion’s people including the research and de- committed to conference: Mr. NUSSLE, committed to conference: velopment projects that have led to the Mr. GUTKNECHT, and Mr. MOORE. That Mr. BORSKI is appointed in lieu physical infrastructure of modern America. By Mr. BIDEN, from the Committee on From the Committee on Education of Mr. OBERSTAR for consideration of Foreign Relations, without amendment and and the Workforce, for consideration of sections 151, 2101–2105, and 2141–2144 of section 134 of the House bill and sec- with a preamble: the House bill and sections 812, 814, and S. Res. 283: A resolution recognizing the tions 715, 774901, 903, 1505 and 1507 of the 816 of the Senate amendment, and successful completion of democratic elec- Senate amendment, and modifications modifications committed to con- tions in the Republic of Colombia. committed to conference: Mr. MCKEON, ference: By Mr. LEAHY, from the Committee on Mr. NORWOOD, and Mr. GEORGE MILLER the Judiciary, with an amendment in the na- of California. That Mr. DEFAZIO is appointed in ture of a substitute: From the Commmittee on Financial lieu of Mr. OBERSTAR for consideration S. 1956: A bill to combat terrorism and de- Services, for consideration of division of section 401 of the House bill and sec- fend the Nation against terrorist attacks, D of the House bill and sections 931–940 tions 201, 205, 301, 1262, and 1351–1352 of and for other purposes. By Mr. LEAHY, from the Committee on and 950 of the Senate amendment, and the Senate amendment, and modifications committed to conference. the Judiciary, without amendment and with modifications committed to con- a preamble: ference: Mr. OXLEY, Mrs. ROUKEMA, and From the Committee on Ways and S. Con. Res. 104: A concurrent resolution Mr. LAFALCE. Means, for consideration of division C recognizing the American Society of Civil From the Committee on the Judici- of the House bill and divisions H and I Engineers on the occasion of the 150th anni- ary, for consideration of sections 206, of the Senate amendment, and modi- versary of its founding and for the many 209, 253, 531–532, 708, 767, 783, and 1109 of fications committed to conference: Mr. vital contributions of civil engineers to the quality of life of the people of the United the Senate amendment, and modifica- THOMAS, Mr. MCCRERY, and Mr. RAN- tions committed to conference: Mr. States, including the research and develop- GEL. ment projects that have led to the physical SENSENBRENNER, Mr. SMITH of Texas, For consideration of the House bill infrastructure of modern America. and Mr. CONYERS. and Senate amendment, and modifica- By Mr. BIDEN, from the Committee on From the Committee on Resources, tions committed to conference: Mr. Foreign Relations, with an amendment in for consideration of sections 401, 2441– the nature of a substitute and an amendment DELAY. 2451, 6001–6234, and 6301–6801 of the to the title and with an amended preamble: House bill and sections 201, 265, 272, 301, S. Con. Res. 114: A concurrent resolution 401–407, 602–606, 609, 612, 705, 707, 712, 721, At 3:21 p.m., a message from the expressing the sense of Congress regarding 1234, 1351–1352, 1704, and 1811 of the Sen- House of Representatives, delivered by North Korean refugees who are detained in Mr. Hays, one of its reading clerks, an- china and returned to North Korea where ate amendment, and modifications they face torture, imprisonment, and execu- committed to conference: Mr. HANSEN, nounced that the House has passed the tion. following bill, in which it requests the Mrs. CUBIN, and Mr. RAHALL: f That Mr. GEORGE MILLER of Cali- concurrence of the Senate: EXECUTIVE REPORTS OF fornia is appointed in lieu of Mr. H.R. 4019. An act to provide that the mar- RAHALL for consideration of sections riage penalty relief provisions of the Eco- COMMITTEES 6501–6512 of the House bill, and modi- nomic Growth and Tax Relief Reconciliation The following executive reports of commit- fications committed to conference. Act of 2001 shall be permanent. tees were submitted:

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5535 By Mr. LEAHY for the Committee on the S. 2619. A bill to provide for the analysis of JOHNSON) was added as a cosponsor of Judiciary. the incidence and effects of prison rape in S. 839, a bill to amend title XVIII of the Henry E. Autrey, of Missouri, to be United Federal, State, and local institutions and to Social Security Act to increase the States District Judge for the Eastern Dis- provide information, resources, rec- amount of payment for inpatient hos- trict of Missouri. ommendations, and funding to protect indi- Richard E. Dorr, of Missouri, to be United viduals from prison rape; to the Committee pital services under the medicare pro- States District Judge for the Western Dis- on the Judiciary; to the Committee on the gram and to freeze the reduction in trict of Missouri. Judiciary. payments to hospitals for indirect David C. Godbey, of Texas, to be United By Mrs. HUTCHISON (for herself and costs of medical education. States District Judge for the Northern Dis- Mr. BROWNBACK): S. 840 trict of Texas. S. 2620. A bill to provide that the marriage At the request of Mr. BIDEN, the Henry E. Hudson, of Virginia, to be United penalty relief provisions of the Economic name of the Senator from North Caro- States District Judge for the Eastern Dis- Growth and Tax Relief Reconciliation Act of trict of Virginia. 2001 shall be permanent; to the Committee lina (Mr. HELMS) was added as a co- Timothy J. Savage, of Pennsylvania, to be on Finance. sponsor of S. 840, a bill to amend title United States District Judge for the Eastern By Mr. LEAHY (for himself and Mr. I of the Omnibus Crime Control and District of Pennsylvania. BIDEN): Safe Streets Act of 1968 to provide Amy J. St. Eve, of Illinois, to be United S. 2621. A bill to provide a definition of ve- standards and procedures to guide both States District Judge for the Northern Dis- hicle for purposes of criminal penalties relat- State and local law enforcement agen- trict of Illinois. ing to terrorist attacks and other acts of vio- cies and law enforcement officers dur- Gregory Robert Miller, of Florida, to be lence against mass transportation systems; ing internal investigations, interroga- United States Attorney for the Northern Dis- to the Committee on the Judiciary. trict of Florida for the term of four years. By Mr. HOLLINGS: tion of law enforcement officers, and Kevin Vincent Ryan, of California, to be S. 2622. A bill to authorize the President to administrative disciplinary hearings, United States Attorney for the Northern Dis- posthumously award a gold medal on behalf to ensure accountability of law en- trict of California, for the term of four years. of Congress to Joseph A. De Laine in rec- forcement officers, to guarantee the Randall Dean Anderson, of Utah, to be ognition of his contributions to the Nation; due process rights of law enforcement United States Marshal for the District of to the Committee on Banking, Housing, and officers, and to require States to enact Utah for the term of four years. Urban Affairs. law enforcement discipline, account- Ray Elmer Carnahan, of Arkansas, to be By Mr. WARNER (for himself and Mr. ability, and due process laws. United States Marshal for the Eastern Dis- ALLEN): trict of Arkansas for the term of four years. S. 2623. A bill to designate the Cedar Creek S. 913 David Scott Carpenter, of North Dakota, Battlefield and Belle Grove Plantation Na- At the request of Ms. SNOWE, the to be United States Marshal for the District tional Historical Park as a unit of the Na- name of the Senator from California of North Dakota for the term of four years. tional Park System, and for other purposes; (Mrs. BOXER) was added as a cosponsor Theresa A. Merrow, of Kentucky, to be to the Committee on Energy and Natural Re- of S. 913, a bill to amend title XVIII of United States Marshal for the Middle Dis- sources. the Social Security Act to provide for trict of Georgia for the term of four years. Ruben Monzon, of Texas, to be United f coverage under the medicare program of all oral anticancer drugs. States Marshal for the Southern District of SUBMISSION OF CONCURRENT AND S. 917 Texas for the term of four years. SENATE RESOLUTIONS James Michael Wahlrab, of Ohio, to be At the request of Ms. COLLINS, the United States Marshal for the Southern Dis- The following concurrent resolutions names of the Senator from California trict of Ohio for the term of four years. and Senate resolutions were read, and (Mrs. FEINSTEIN) and the Senator from By Mr. BIDEN for the Committee on For- referred (or acted upon), as indicated: New Jersey (Mr. TORRICELLI) were eign Relations. By Mr. BIDEN (for himself and Mr. *Tony P. Hall, of Ohio, for the rank of Am- added as cosponsors of S. 917, a bill to SPECTER): bassador during his tenure of service as amend the Internal Revenue Code of S. Res. 284. A resolution expressing support United States Representative to the United 1986 to exclude from gross income for ‘‘National Night Out’’ and requesting Nations Agencies for Food and Agriculture. amounts received on account of claims that the President make neighborhood crime *Nomination was reported with rec- prevention, community policing, and reduc- based on certain unlawful discrimina- ommendation that it be confirmed sub- tion of school crime important priorities of tion and to allow income averaging for ject to the nominee’s commitment to the Administration; to the Committee on the backpay and frontpay awards received respond to requests to appear and tes- Judiciary. on account of such claims, and for tify before any duly constituted com- By Mr. MURKOWSKI (for himself and other purposes. mittee of the Senate. Mr. STEVENS): S. 2051 S. Res. 285. A resolution expressing the At the request of Mr. REID, the name (Nominations without an asterisk sense of the Senate condemning the failure were reported with the recommenda- of the International Whaling Commission to of the Senator from Connecticut (Mr. tion that they be confirmed.) recognize the needs of Alaskan Eskimos; to DODD) was added as a cosponsor of S. f the Committee on Foreign Relations. 2051, a bill to remove a condition pre- By Mrs. FEINSTEIN (for herself and venting authority for concurrent re- INTRODUCTION OF BILLS AND Mrs. BOXER): ceipt of military retired pay and vet- JOINT RESOLUTIONS S. Res. 286. A resolution commending and erans’ disability compensation from The following bills and joint resolu- congratulating the Los Angeles Lakers for taking affect, and for other purposes. their outstanding drive, discipline, and mas- tions were introduced, read the first S. 2086 tery in winning the 2002 National Basketball and second times by unanimous con- Association Championship; considered and At the request of Mr. BINGAMAN, his sent, and referred as indicated: agreed to. name was added as a cosponsor of S. By Mr. WELLSTONE (for himself and By Mr. HUTCHINSON (for himself, Mr. 2086, a bill to provide emergency agri- Mr. DAYTON): DURBIN, Mr. BOND, and Mr. HOL- cultural assistance. S. 2617. A bill to protect the rights of LINGS): S. 2116 American consumers to diagnose, service, S. Con. Res. 121. A concurrent resolution At the request of Mr. KERRY, the and repair motor vehicles purchased in the expressing the sense of Congress that there name of the Senator from New York United States, and for other purposes; to the should be established a National Health Cen- Committee on Commerce, Science, and ter Week for the week beginning on August (Mrs. CLINTON) was added as a cospon- Transportation. 18, 2002, to raise awareness of health services sor of S. 2116, a bill to reform the pro- By Mr. TORRICELLI (for himself and provided by community, migrant, public gram of block grants to States for tem- Mr. CORZINE): housing, and homeless health centers; to the porary assistance for needy families to S. 2618. A bill to direct the Director of the Committee on the Judiciary. help States address the importance of Federal Emergency Management Agency to f adequate, affordable housing in pro- designate New Jersey Task Force 1 as part of moting family progress towards self- the National Urban Search and Rescue Re- ADDITIONAL COSPONSORS sufficiency, and for other purposes. sponse System; to the Committee on Envi- ronment and Public Works. S. 839 S. 2119 By Mr. KENNEDY (for himself and Mr. At the request of Mr. BAYH, the name At the request of Mr. GRASSLEY, the SESSIONS): of the Senator from South Dakota (Mr. name of the Senator from Delaware

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5536 CONGRESSIONAL RECORD — SENATE June 13, 2002 (Mr. CARPER) was added as a cosponsor lies programs operated by Indian hicle Owners’ Right to Repair Act of of S. 2119, a bill to amend the Internal tribes, and for other purposes. 2002. This legislation would protect the Revenue Code of 1986 to provide for the S. 2496 viability of independent service station tax treatment of inverted corporate en- At the request of Mrs. CLINTON, the and repair shops and ensure that con- tities and of transactions with such en- name of the Senator from Connecticut sumers will continue to have a choice tities, and for other purposes. (Mr. DODD) was added as a cosponsor of of automotive service providers. S. 2134 S. 2496, a bill to provide for the estab- The 1990 Clean Air Act mandated At the request of Mr. ALLEN, the lishment of investigative teams to as- that vehicle manufacturers install name of the Senator from Texas (Mrs. sess building performance and emer- computer systems to monitor emis- HUTCHISON) was added as a cosponsor of gency response and evacuation proce- sions in 1994 model year cars and be- S. 2134, a bill to allow American vic- dures in the wake of any building fail- yond. Today, many vehicle systems are tims of state sponsored terrorism to re- ure that has resulted in substantial integrated into the car’s computer sys- ceive compensation from blocked as- loss of life or that posed significant po- tem, making auto repair an increas- sets of those states. tential of substantial loss of life, and ingly ‘‘high tech’’ business and making S. 2194 for other purposes. access to the computer and the information it contains vital to the ability At the request of Mr. MCCONNELL, S. 2560 the name of the Senator from Illinois to perform repairs. At the request of Mr. ALLARD, the Increasingly, however, independent (Mr. DURBIN) was added as a cosponsor name of the Senator from Nebraska repair shops are being barred access to of S. 2194, a bill to hold accountable the (Mr. HAGEL) was added as a cosponsor the codes and diagnostic tools nec- Palestine Liberation Organization and of S. 2560, a bill to provide for a multi- essary to repair newer model cars. The the Palestinian Authority, and for agency cooperative effort to encourage effect is to reduce consumer choice for other purposes. further research regarding the causes auto repair services, and to endanger S. 2215 of chronic wasting disease and methods the livelihood thousands of small, fam- At the request of Mrs. BOXER, the to control the further spread of the dis- ily owned repair shops across the coun- name of the Senator from New Jersey ease in deer and elk herds, to monitor try. (Mr. CORZINE) was added as a cosponsor the incidence of the disease, to support On April 10, I met with a group of re- of S. 2215, a bill to halt Syrian support State efforts to control the disease, pair shop owners from Minnesota. The for terrorism, end its occupation of and for other purposes. explained that new practices by some Lebanon, stop its development of weap- S. 2600 auto manufactures were preventing ons of mass destruction, cease its ille- At the request of Mr. DODD, the name them from competing on an even play- gal importation of Iraqi oil, and by so of the Senator from New York (Mrs. ing field. One thing we don’t need is an- doing hold Syria accountable for its CLINTON) was added as a cosponsor of S. other industry where all the little role in the Middle East, and for other 2600, a bill to ensure the continued fi- guys, the small, independent busi- purposes. nancial capacity of insurers to provide nesses, are driven out. This is terrible S. 2233 coverage for risks from terrorism. for our communities. And reduced com- At the request of Mr. THOMAS, the S. RES. 242 petition means higher prices for con- names of the Senator from Kansas (Mr. At the request of Mr. THURMOND, the sumers BROWNBACK) and the Senator from Mis- name of the Senator from New Hamp- Specifically, the Motor Vehicle Own- sissippi (Mr. COCHRAN) were added as shire (Mr. GREGG) was added as a co- ers’ Right to Repair Act would simply cosponsors of S. 2233, a bill to amend sponsor of S. Res. 242, a resolution des- require a manufacturer of a motor ve- title XVIII of the Social Security Act ignating August 16, 2002, as ‘‘National hicle sold in the United States to dis- to establish a medicare subvention Airborne Day.’’ close to the vehicle owner, a repair fa- demonstration project for veterans. S. CON. RES. 110 cility, and the Federal Trade Commis- sion, FTC, the information necessary S. 2246 At the request of Mrs. FEINSTEIN, the At the request of Mr. DODD, the name names of the Senator from Arizona to diagnose, service, or repair the vehicle. The bill bars the FTC from requir- of the Senator from South Dakota (Mr. (Mr. KYL), the Senator from Rhode Is- ing disclosure of any information enti- JOHNSON) was added as a cosponsor of land (Mr. CHAFEE), and the Senator tled to protection as a manufacturer’s S. 2246, a bill to improve access to from North Carolina (Mr. HELMS) were printed instructional materials used by added as cosponsors of S. Con. Res. 110, trade secret. This legislation is an example of blind or other persons with print dis- a concurrent resolution honoring the what is good for small business is good abilities in elementary and secondary heroism and courage displayed by air- for the consumer. The bill is endorsed schools, and for other purposes. line flight attendants on a daily basis. by the 44 million member American S. 2428 AMENDMENT NO. 3834 Automobile Association, AAA, as well At the request of Mr. KERRY, the At the request of Mr. NELSON of Flor- as the Automotive Service Association, name of the Senator from Michigan ida, the name of the Senator from New the trade association of automotive (Ms. STABENOW) was added as a cospon- York (Mrs. CLINTON) was added as a co- service professionals. sor of S. 2428, a bill to amend the Na- sponsor of amendment No. 3834 pro- To reiterate, I want to introduce a tional Sea Grant College Program Act. posed to S. 2600, a bill to ensure the bill and tell colleagues about it. I have S. 2480 continued financial capacity of insur- sent out a ‘‘Dear Colleague’’ letter. At the request of Mr. LEAHY, the ers to provide coverage for risks from This is very much a pro-consumer bill name of the Senator from North Caro- terrorism. as well. It is called the Motor Vehicle lina (Mr. HELMS) was added as a co- f and Owners Right to Repair Act. There sponsor of S. 2480, a bill to amend title has to be a better title. 18, United States Code, to exempt STATEMENTS ON INTRODUCED Basically, this is the issue. The auto- qualified current and former law en- BILLS AND JOINT RESOLUTIONS motive industry, for 100 years, has al- forcement officers from state laws pro- By Mr. WELLSTONE (for himself ways shared information with mechan- hibiting the carrying of concealed and Mr. DAYTON): ics. But post-1994, you have cars with handguns. S. 2617. A bill to protect the rights of very computerized systems. All of a S. 2484 American consumers to diagnose, serv- sudden, the automotive industry is now At the request of Mr. BAUCUS, the ice, and repair motor vehicles pur- saying to independent mechanics, we name of the Senator from Mississippi chased in the United States, and for will not share with you the informa- (Mr. COCHRAN) was added as a cospon- other purposes; to the Committee on tion about the computer system so you sor of S. 2484, a bill to amend part A of Commerce, Science, and Transpor- can get into the computer system, do title IV of the Social Security Act to tation. the diagnosis and the repair, in which reauthorize and improve the operation Mr. WELLSTONE. Madam President, case I think it is a blatant anti- of temporary assistance to needy fami- I rise today to introduce the Motor Ve- competitive practice.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5537 It puts the independent mechanics, able inmates. Prison rape is a serious ship, Focus on the Family, the Pres- the small guys, out of business. In ad- problem in our Nation’s prisons, jails, byterian Church, the Justice Policy In- dition, it says to the consumers: Lis- and detention facilities. Of the two stitute, the Sentencing Project, Youth ten, you might want to take your car million prisoners in the United States, Law Center, Human Rights Watch, the back to the dealership for repair, but it is conservatively estimated that one National Association for the Advance- now that is your only choice because in ten has been raped. According to a ment of Colored People, and the Na- you may want to go to the neighbor- 1996 study, 22 percent of prisoners in tional Council of La Raza. Together, hood mechanic you have worked with Nebraska had been pressured or forced these diverse groups have dem- for years and he might want your busi- to have sex against their will while in- onstrated impressive moral leadership ness, but we are going to make it im- carcerated. Human Rights Watch re- on this issue. possible for him to get your business. cently reported, ‘‘shockingly high rates It is a privilege to work on this legis- We are going to make it impossible for of sexual abuse’’ in U.S. prisons. lation with Congressmen FRANK WOLF you to go there. Prison rape causes severe physical and BOBBY SCOTT in the House and Sen- I like this piece of legislation be- and psychological pain to its victims. ator SESSIONS in the Senate. While we cause it is little guy versus big guy. It It also leads to the increased trans- may disagree on other issues relating feels right to me. At 5 feet, 5 inches, I mission of HIV, hepatitis, and other to criminal justice, we all recognize like the little guys. diseases. The brutalization in prison that rape is unacceptable, and it is In April, some mechanics came by also makes it more likely that pris- long past time to end it. our office and talked with Perry Lang, oners will commit crimes after they Mr. SESSIONS. Madam President, I who works with me, and they said this are released, as 600,000 prisoners are want to commend Senator KENNEDY for is happening to us and asked for some each year. his leadership on the important issue help. To deal with this serious problem, of reducing prison rape. I have enjoyed I say on the floor of the Senate two Senator SESSIONS and I are today in- working with him to craft and refine things: No. 1, I am circulating a ‘‘Dear troducing the Prison Rape Reduction the legislation that we are introducing Colleague’’ letter. I hope to get a lot of Act of 2002. This bipartisan legislation today, the Prison Rape Reduction Act support. I think there will be a lot of is intended to address the prison-rape of 2002. Though Senator KENNEDY and I support. epidemic in an effective and com- come from different backgrounds and This is going on in the House with a prehensive manner, while still respect- have different political philosophies, lot of Republicans as well as Demo- ing the primary role of States and local we both agree that Congress should act crats. governments in administering prisons to reduce prison rape. The second thing that I am saying to and jails. I would also like to thank Congress- the industry today on the floor of the Our bill directs the Department of man FRANK WOLF and BOBBY SCOTT for Senate—and I think they are watching Justice to conduct an annual statis- their important leadership on this bill this carefully—is we are going to get a tical review and analysis of the fre- in the House of Representatives. Con- good head of steam on this. If you want quency and effects of prison rape. It es- gressman WOLF is a recognized cham- to sit down and negotiate an agree- tablishes a special panel to conduct pion for human dignity across the ment with the mechanics that is fair to hearings on prison systems, prisons, globe and this legislation to reduce these independent mechanics, go and jails where the incidence of rape is prison rape is consistent with his phi- ahead. Then we won’t have to pass the high. It directs the Attorney General losophy. Congressman SCOTT is very legislation. But I could not believe to collect complaints of rape from in- knowledgeable on criminal law issues. when I heard the report of what they mates, transmit them to the appro- While he and I have agreed and dis- are dealing with. priate authorities, and review how the agreed on many issues over the years, Again, you have a blatant anti- authorities respond. It also directs the we agree on the need to reduce prison competitive practice of the industry Attorney General to provide informa- rape. basically saying we will not share with tion, assistance, and training to Fed- As a Federal prosecutor for 15 years you any information about our com- eral, State, and local authorities on and as Attorney General of Alabama, I puterized systems. If the industry the prevention, investigation, and pun- sent many guilty criminals to prison wants to say there is some kind of a ishment of prison rape. where they belong. I believed that they trade patent secret which they can’t Our bill also authorizes $40 million in should be treated fairly in court, and I share, they can go to the FTC and get grants to enhance the prevention, in- treated them fairly. I also believe that approval for that. Otherwise, for 100 vestigation, and punishment of prison they should be treated fairly in prison. years, this has not happened. Now we rape. These grants will strengthen the Most prison wardens and sheriffs are get into a blatant collusion, anti- ability of state and local officials to outstanding public servants that do an competitive practice that is unfair to prevent these abuses. excellent job of supervising inmates, the independent mechanics who a lot of Finally, our bill establishes a com- and I commend my friends in the law Senators know as friends and as small mission that will conduct hearings enforcement community for their hard businesspeople. I am aiming to stop it. over two years and recommend na- work in this area. tional correctional standards on a wide However, knowingly subjecting a By Mr. KENNEDY (for himself range of issues, including inmate clas- prisoner to rape is cruel and unusual and Mr. SESSIONS): sification, investigation of rape com- punishment under the Eighth Amend- S. 2619. A bill to provide for the anal- plaints, trauma case for rape victims, ment to the Constitution of the United ysis of the incidence and effects of pris- disease prevention, and staff training. States. Some studies have estimated on rape in Federal, State, and local in- These standards should apply as soon that over 10 percent of the inmates in stitutions and to provide information, as possible to the Federal Bureau of certain prisons are subject to rape. I resources, recommendations, and fund- Prisons. Prison accreditation organiza- hope that this statistic is an exaggera- ing to protect individuals from prison tions that receive Federal funding tion. Nonetheless, it is the duty of Gov- rape; to the Committee on the Judici- should also adopt the standards. States ernment officials to ensure that crimi- ary. should adopt the standards too. If they nals who are convicted and sentenced Mr. KENNEDY. Madam President, as ‘‘opt out’’ by passing a statute, they to prison serve the sentence imposed the Supreme Court has made clear, will suffer no penalty, but States that by the judge and rape is not a part of ‘‘being violently assaulted in prison is fail to act at all will lose 20 percent of any lawful sentence. simply not part of the penalty that their prison-related federal funding. This bill responds to the problem of criminal offenders pay for their of- Our bill is supported by a broad coali- rape of prison inmates in three prin- fenses against society.’’ Government tion of religious, civil rights, and cipal ways. First, the bill establishes a officials have a duty under the Con- human rights organizations, including bipartisan National Commission that stitution to prevent prison violence. the Salvation Army, the Southern Bap- will study prison rape at the federal, Too often, however, officials fail to tist Convention, the National Associa- state, and local levels. Within 2 years, take obvious steps to protect vulner- tion of Evangelicals, Prison Fellow- the commission will publish the results

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5538 CONGRESSIONAL RECORD — SENATE June 13, 2002 of its study and make recommenda- that started this legislative initiative. tion 1993 charge on grounds that 1. the tions on how to reduce prison rape. Well-conceived, carefully crafted ideas penalty provision does not apply to an Second, the bill directs the Attorney drive many legislative and political ‘‘attempt’’ and 2. an airplane is not en- General to issue a rule for the reduc- initiatives that become law after peo- gaged in ‘‘mass transportation.’’ ‘‘Mass tion of prison rape in Federal prisons. ple work together to form a bipartisan, transportation’’ is defined in section To avoid a 20 percent reduction in cer- moral position. 1993 by reference to the ‘‘the meaning tain Federal funds, each State will I also want to commend the hard given to that term in section 5302(a)(7) have to pass a statute that either work of Bill Pryor, the attorney gen- of title 49, U.S.C., except that the term adopts or rejects the standards for eral of Alabama, who will end up deal- shall include schoolbus, charter and State prisons. This bill contains no un- ing with the effects of this legislation sightseeing transportation.’’ Section funded mandate to order States how to at the state level. Bill has worked with 5302(a)(7), in turn, provides the fol- deal with prison rape. It does, however, Prison Fellowship, has talked with lowing definition: ‘‘mass transpor- require that they address the issue. Alabama prison officials, and has tation’’ means transportation by a con- Third, the bill will require the De- worked with me on this legislation. In veyance that provides regular and con- partment of Justice to conduct statis- addition to being an outstanding legal tinuing general or special transpor- tical surveys on prison rape for Fed- scholar and leader among all the tation to the public, but does not in- eral, State, and local prisons and jails. States’ attorneys general, Bill cares clude school bus, charter or sightseeing Further, the Department of Justice about people and demands fairness in transportation.’’ The court explained will select officials in charge of certain how the State treats both victims and that ‘‘commercial aircraft transport prisons with an incidence of prison prisoners. I was very pleased that At- large numbers of people every day’’ and rape exceeding the national average by torney General Pryor joined us at the that the definition of ‘‘mass transpor- 30 percent to come to Washington and press conference to express his support tation’’ ‘‘when read in an ordinary or testify to the Department about the of the bill. natural way, encompasses aircraft of prison rape problem in their institu- This bill will address prison rape, not the kind at issue here.’’ U.S. v. Reid, CR tion. If they refuse to testify, the pris- through unfunded mandates and law- No. 02–10013, at p. 10, 12 (D. MA, June on will lose 20 percent of certain Fed- suits, but through examining the prob- 11, 2002). eral funds. lem and allowing sunshine to expose Defendant Reid also argued that the In addition, the bill provides for $40 deficiencies that need to be addressed. section 1993 charge should be dismissed million in grants to States for preven- This bill is a necessary step to reform because an airplane is not a ‘‘vehicle.’’ tion, investigation, and prosecution of and a bipartisan step toward justice. The court agreed, citing the fact that prison rape. This will help the States the term ‘‘vehicle’’ is not defined in By Mr. LEAHY (for himself and to reduce repeat offenses by inmates. section 1993 and that the Dictionary A broad and bipartisan array of orga- Mr. BIDEN); Act, 1 U.S.C. § 4, narrowly defines ‘‘ve- S. 2621. A bill to provide a definition nizations and individuals have added hicle’’ to include ‘‘every description of of vehicle for purposes of criminal pen- their support to this bill. The list in- carriage or other artificial contrivance alties relating to terrorist attacks and cludes: American Psychological Asso- used, or capable of being used, as a other acts of violence against mass means of transportation on land.’’ Em- ciation; American Values; Biblical Wit- transportation systems; to the Com- ness Fellowship, UCC; Camp Fire USA; phasis in original opinion. Notwith- mittee on the Judiciary. standing common parlance and other Center for Religious Freedom, Freedom Mr. LEAHY. Madam President, I rise court decisions that have interpreted House; Christian Rescue Committee; to introduce legislation today with this Dictionary Act definition to en- Citizens United for Rehabilitation of Senator BIDEN to clarify that an air- compass aircraft, the district court re- Errants—Virginia, Inc. (Virginia plane is a vehicle for purposes of ter- lied on the narrow definition to con- CURE); Disciple Renewal; Focus on the rorist and other violent acts against clude that an aircraft is not a ‘‘vehi- Family; Mary Ann Glendon, Learned mass transportation systems. A signifi- cle’’ within the meaning of section Hand Professor of Law, Harvard Law cant question about this point has been 1993. School; Good News, UMC; Human raised in an important criminal case Rights Watch; Human Rights and the The new section 1993 was intended to and deserves our prompt attention. provide broad federal criminal jurisdic- Drug War; Institute on Religion and Earlier this week, on June 11, 2002, a tion over terrorist and violent acts Democracy; Justice Policy Institute; U.S. District Judge in Boston dis- against all mass transportation sys- Lutheran Office for Governmental Af- missed one of the nine charges against tems, not only bus services but also fairs; National Association for the Ad- Richard Reid stemming from his al- commercial airplanes, cruise ships, vancement of Colored People; National leged attempt to detonate an explosive railroads and other forms of transpor- Association of Evangelicals; National device in his shoe while onboard an tation available for public carriage. Association of School Psychologists; international flight from Paris to The bill I introduce today would add a National Center on Institutions and Al- Miami on December 22, 2001. The dis- definition of ‘‘vehicle’’ to section 1993 ternatives; National Council for La missed count charged defendant Reid and clarify that an airplane is a ‘‘vehi- Raza; National Network for Youth; Na- with violating section 1993 of title 18, cle’’ both in common parlance and tional Mental Health Association; United States Code, by attempting to under this new criminal law to protect Marvin Olasky, Editor—World Maga- ‘‘wreck, set fire to, and disable a mass mass transportation systems. Specifi- zine; Partnership for Responsible Drug transportation vehicle.’’ cally, the bill would define this term to Information; Presbyterian Church Section 1993 is a new criminal law mean ‘‘any carriage or other contriv- (U.S.A.); Prison Fellowship; Religious that was added, as section 801, to the ance used, or capable of being used, as Action Center of Reform Judaism; USA PATRIOT Act to punish terrorist a means of transportation on land, Renew Network; Research and Policy attacks and other acts of violence against, inter alia, a ‘‘mass transpor- water or through the air.’’ Reform, Inc.; Salvation Army; The I urge the Senate to act promptly tation’’ vehicle or ferry, or against a Sentencing Project; Southern Baptist and pass this legislation. I ask unani- passenger or employee of a mass trans- Convention; Stop Prison Rape; Uni- mous consent that the text of the bill tarian Universalists for Juvenile Jus- portation provider. I had urged that be printed in the RECORD. tice; Volunteers of America; and Youth this provision be included in the final There being no objection, the bill was anti-terrorism law considered by the Law Center. ordered to be printed in the RECORD, as I am especially proud of the evan- Congress. A similar provision was follows: gelical Christian groups for their work originally part of S. 2783, the ‘‘21st Cen- S. 2621 in gathering support for the bill. They tury Law Enforcement and Public Be it enacted by the Senate and House of Rep- have worked tirelessly for ethics and Safety Act,’’ that I introduced in the resentatives of the United States of America in compassion in government, and this last Congress in June, 2000 on the re- Congress assembled, legislation reflects those values. quest of the Clinton Administration. SECTION 1. DEFINITION. I would also like to thank Linda Cha- The district court rejected defendant Section 1993(c) of title 18, United States vez and Mike Horowitz for the ideas Reid’s arguments to dismiss the sec- Code, is amended—

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5539 (1) in paragraph (7), by striking ‘‘and’’ at ing down that dirt road all the way here to When the Briggs v. Elliott case came up, the end; Scotts Branch School, and that school bus before Judge Waring in Charleston, he ques- (2) in paragraph (8), by striking the period passing, all for the white children. Yet all tioned separate but equal. Then in December at the end and inserting ‘‘; and’’; and your families were asking for was a bus. But 1952, the case went to the Supreme Court. (3) by adding at the end the following: they were told: ‘‘you don’t pay any taxes, so Governor Byrnes had served on the State Su- ‘‘(9) the term ‘vehicle’ means any carriage how can you ask for a bus?’’ What they preme Court, and he wanted to make sure we or other contrivance used, or capable of didn’t say is you didn’t have a job, whereby won the case. In my mind, he was absolutely being used, as a means of transportation on you could make a living and be able to pay sure that under Chief Justice Vinson the land, water, or through the air.’’. the taxes. They didn’t say that. State would win it. I think of the threats, the burnings, the But to make sure, he set aside Mr. Bob By Mr. HOLLINGS: shooting up of Reverend John De Laine’s McC. Figg, who had done all the work, and S. 2622. A bill to authorize the Presi- home. I think about how they turned him selected John W. Davis, as the attorney for dent to posthumously award a gold into a fugitive. He had to leave his home in South Carolina against Thurgood Marshall, medal on behalf of Congress to Joseph South Carolina, never to return. Harry who was representing Briggs and the Briggs had to leave his home and go to Flor- NAACP. Mr. Davis had been the Solicitor A. De Laine in recognition of his con- ida to earn a living. It’s not for me to tell General of the United States. He had been tributions to the Nation; to the Com- the descendants of the Briggs v. Elliott case the Democratic nominee for president in mittee on Banking, Housing, and how they have suffered. 1924. He was considered the greatest con- Urban Affairs. I didn’t try this case, don’t misunderstand stitutional mind in the country. Mr. HOLLINGS. Madam President, I me. My beginnings with Briggs v. Elliott The second thing the Governor did was to rise today to introduce legislation to started in 1948 when I was elected to the call me up and say: ‘‘I’m appointing you to present Reverend Joseph A. De Laine House of Representatives in Columbia. go to Washington, because you know inti- the Congressional Gold Medal in honor The previous year James Hinton, the head mately this law here that built the schools. of the NAACP in the State gave a speech in of his heroic sacrifices to desegregate You have to go to Washington in case any Columbia. He talked about the need to get questions of fact come up.’’ our public schools. His crusade to separate but equal facilities. He got Rev. De So we took a train to Washington. We break down barriers in education for- Laine from Summerton in the audience all came in at 6 o’clock that morning at Union ever scarred his own life, but led to the fired up. Rev. De Laine, who was the prin- Station, and we sat down for breakfast. I’ll landmark Brown v. Board of Education cipal here, put together a petition signed by never forget it, because Thurgood Marshall case in 1954. 20 parents, of 46 children, the Summerton 66. walked in. He and Bob McC. Figg had become Eight years before Rosa Parks re- I’ll never forget the day after I was sworn real close friends. So he sat down and was fused to move to the back of the bus, into the Legislature the superintendent of eating breakfast with us, and we began swap- schools in Charleston County took me across ping stories. Rev. De Laine, a minister and prin- the Cooper River Bridge, down the Mathis Mr. Marshall said ‘‘Bob, you know that cipal, organized African-American par- Ferry Road, to the Freedom School, the black family that moved into that white ents to petition the Summerton, SC, black school. He said I want to show you neighborhood in Cicero, IL. They have so school board for a bus and gasoline so what we really do, he used the word at that much trouble. There are riots, and every- their children would not have to walk time, ‘‘for a Negro education.’’ thing else going on.’’ And he said: ‘‘Don’t tell 10 miles to attend a segregated school. This was a cold November Day, and we anybody, but I got hold of Governor Adlai A year later, in Briggs v. Elliott, the went into a big one-room building. That’s all Stevenson.’’ Stevenson was the governor of they had, one room, with a pot belly stove in parents sued to end segregation. It was Illinois at the time. And he said: ‘‘I sent that the middle. They had a class in this corner, family back to Mississippi for safe keeping.’’ a case that as a young lawyer I a class in that back corner, a class up front And Thurgood added, ‘‘for God’s sake, don’t watched Thurgood Marshall argue be- in this corner, and a class here. Of course, tell anybody that or it will ruin me.’’ I said: fore the Supreme Court as one of the they didn’t have any desks, and very few ‘‘for God’s sake, don’t tell anybody I’m eat- five cases collectively known as Brown books, and one teacher teaching the four ing breakfast with you, or I will never get v. Board of Education. For this Sen- classes. elected again.’’ ator, their arguments helped to shape When I went to Columbia I was with a I tell you that story so you can get a feel bunch of rebels. I introduced an anti-lynch- for 1952, for what it was like 50 years ago. my view on racial matters. ing bill. I had never heard of lynchings down We had wanted Briggs to be the lead case For his efforts, Rev. De Laine was in Charleston, but then they had one. As we before the Supreme Court. It was one of five subjected to a reign of domestic ter- debated the bill, a fellow who was the grand cases that they would hear collectively. But rorism. He lost his job. He watched his dragon of the Klan got up with all these soon after our breakfast, we found out that church and home burn. He was charged Klansmen in the Gallery, and he mumbled Roy Wilkens from the NAACP had gotten to- with assault and battery with intent to and raised cane. Speaker Blott got some gether with the Solicitor General and moved kill after shots were fired at his home order. But several House members walked the Kansas case in front of the South Caro- and he fired back to mark the car. He out. They said they wouldn’t be seated in the lina case. Some reports said the reason was had to leave South Carolina forever; re- Legislature with a fellow like that. We because they wanted a northern case. That passed the anti-lynching bill. was not it. There was another case from the locate to New York, where he started I’m trying to give you this background, so State of Delaware, which was just as north an AME Church, and he eventually re- you’ll understand the significance of what as the State of Kansas. tired in North Carolina. Not until the your parents did. We had just had the case, Kansas was selected because up until the year 2000, 26 years after his death and whereby blacks could participate in the sixth grade, yes, it was segregated. But 45 years after the incident in his home Democratic primary. And we had just given thereafter it was a local option, and the was Rev. De Laine cleared of all women the right to vote. schools were mostly integrated. And in 1949 and 1950, I struggled because Before the court John W. Davis obviously charges. there was no money in the state for separate made a very impassioned, constitutional ar- Last month, I spoke to the 100 de- but equal schools, or anything else. I said we gument. But Thurgood Marshall made the scendants of Briggs v. Elliott, and I ask ought to put in a 3 percent sales tax to pay real argument, there wasn’t any question unanimous consent that my remarks for things. Governor Thurmond opposed it, about it. He had been with this case. He had be printed in the RECORD, which show and the senators particularly opposed it. But the feel, and everything else of that kind. the bravery of Rev. De Laine during a I made the motion for a one-cent tax on ciga- I can still hear and see Justice Frankfurter troubled time in our Nation’s past, and rettes; a one-cent tax on gasoline; and a one- on the Court leaning over and saying, ‘‘Mr. which point to the immeasurable bene- cent tax on beer. Beer, cigarettes, and gaso- Marshall, Mr. Marshall, you’ve won your fits he has given our Nation. line. case, you’ve won your case. What happens There being no objection, the re- We formed a House Committee with six of next’’? And Thurgood Marshall said, well, if us to work on it. We worked all summer. It’s he prevails, then the state imposed policy of marks were ordered to be printed in a long story, but let me cut it and say by De- separation by race would be removed. The the RECORD, as follows: cember we had it all written. I knew the in- little children can go to the school of their BRIGGS V. ELLIOTT DESCENDANTS RE-UNION coming governor, Governor Byrnes. I felt it choice. They play together before they go to BANQUET, SUMMERTON, SOUTH CAROLINA, would be good to ask him to see if he could school. They come back and play together MAY 11, 2002 help me with this measure. after school. Now they can be together at I want to give you an insight into exactly The second week in January, before he was school. The State imposed policy of separa- what happened to your parents 50 years ago sworn in, he called me and said: ‘‘You’ve got tion by race in South Carolina would be in Summerton, SC, that led to the desegrega- to come to Columbia, I’m going to include gone. tion of our Nation’s schools by the Supreme this in my Inaugural address.’’ Over time, I Another lawyer arguing the case was Court of the United States. made 79 talks on the proposal, until we fi- George E. C. Hayes, and when I heard him I speak with some trepidation, because nally passed the sales tax, which provided that was my epiphany. Mr. Hayes got every- right now I can see Harry Briggs’ son walk- some money for separate but equal schools. one because he used a jury argument before

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5540 CONGRESSIONAL RECORD — SENATE June 13, 2002 the Supreme Court. He said: as black soldiers We have both Andy Chishom and Israel S. 2623. A bill to designate the Cedar we went to the war to fight on the front lines Brooks as the first black Marshalls of South Creek Battlefield and Belle Grove in Europe, and when we come home we have Carolina. Matthew Perry, the first black dis- Plantation National Historical Park as to sit on the back of the bus. trict judge of a Federal court ever appointed, a unit of the National Park System, I had been with the 9th Anti-Artillery Air- I appointed. The first black woman judge to craft unit in Tunisia in Africa for a month. the Federal district court, Margaret Sey- and for other purposes, to the Com- And then I was in Italy and Germany and mour, I appointed her. So we have made a lot mittee on Energy and Natural Re- crossed over to what is now Kosovo. So I of progress along that line. sources. served. I knew exactly what he was talking But to give you a feel for how things have Mr. WARNER. Madam President I am about. And I said this is wrong. changed, I remember speaking at the C.A. pleased to introduce legislation, along The next year Chief Justice Vinson died. It Johnson High School in Columbia, the larg- with my colleague, Senator ALLEN, to was reported at that time that Justice est black high school in the entire state, the Frankfurter said for the first time that he create the Cedar Creek Battlefield and day after Martin Luther King was assas- Belle Grove Plantation National His- believed there was a God in Heaven when sinated. Vison passed away. They appointed Mr. Earl At the event, there was a mid-shipman, a torical Park. Warren as Chief Justice, who dragged every- senior at the Naval Academy, who stood up This legislation builds on an effort body back to the Court to re-argue the case and made one of the finest talks I ever heard. that I have been involved with for over in December of 1953. He didn’t want to hear I turned to the principal, because it was his a decade. In 1991, the Congress author- about separate but equal. He wanted the case son, and I asked: who appointed your son to ized the National Park Service to con- re-argued on the constitutionality of seg- the Naval Academy? He didn’t answer. We duct an assessment of the historical in- regation itself. walked down the row, and I can see me now, Then on May 17, 1953 the decision came tegrity of significant Civil War battle- asking him again. He still didn’t answer. fields in the Shenandoah Valley of Vir- down, it was unanimous, segregation was When I got to my car, I said evidently you over in this country. So the lawyers imme- don’t understand my accent from Charles- ginia. That examination identified 10 diately got together to discuss how to imple- ton. Who appointed your son to the U.S. Civil War battlefields in eight counties ment the decision. Since the decision said to Naval Academy? He said, ‘‘Senator, I didn’t in the Valley that remained signifi- integrate schools with all deliberate speed, want to have to answer that question. We cantly as they were during the war. there was arguments back and forth on how couldn’t get a member of the South Carolina The Valley itself was a location of we could comply with this order with all de- delegation to appoint him. Hubert Humphrey liberate speed and not start chaos all over constant engagements throughout the appointed him.’’ War with more than 325 armed con- the land. What goes around, comes around. Today, I Some school authority down in Charleston flicts. The 10 battlefields that are have more minority appointments to West came up with the idea that with all delib- Point, Annapolis, and the Air Force Acad- today preserved under the Shenandoah erate speed meant we would integrate the emies than anybody. Recently I had Chuck Valley National Battlefields Manage- first grade the first year; we would integrate Bolden, who is a major general in the marine ment Plan include the places of Stone- the first and second grades the second year; corps and a former astronaut, ready to re- wall Jackson’s 1862 campaign, and later the third year would be the first, second, and turn to NASA as the number two person third grades. Over a 12–year period, we would Union General Philip Sheridan’s 1864 there. But the Pentagon raised the question then have the 12 grades integrated. When the campaign which left the Valley in about taking such a talent during a time of head of the NAACP in New York heard that ruins. war and moving him to the civilian space he said: ‘‘Noooo Way. We are not going to be This legislation is the product of program. So we said the heck with it, he’s given our constitutional rights on the in- many months of discussions with af- stallment plan.’’ And that ended that. But too needed in the military. That is the effect Briggs v. Elliott had on fected individual property owners with nothing was done for about 10 years, until this public servant. There isn’t any question the battlefield boundary, our partner Martin Luther King came along. When I became Governor, I started work- that without the courage of your parents, non-profit organizations who today ing on other areas that needed to be inte- our society would be a lot worse off today. preserve Belle Grove Plantation and I was there a few years back when the Con- grated, beginning with law enforcement. I’ll surrounding lands within the battle- gress of the United gave the Congressional never forget all the white sheriffs who were field, local governments and many in- against all the blacks. We only had 34 black Gold Medal to Rosa Parks. She deserved it, and we wouldn’t take anything from her for terested citizens. I am pleased to sheriffs. We have about 500 today. present to the Senate their strong sup- And we literally broke up and locked up not moving her seat. But in the 1950s the the Ku Klux Klan. I remember on the day I worst they could have done to her was to port for this legislation. I know that was sworn in as Governor, waiting for me pull her off the bus. These descendants lost with retaining the private sector own- was a green and gold embossed envelope, their homes. They lost their livelihoods. ership of buildings and their direct par- with a lifetime membership into the Ku Klux They almost lost their lives. As far as con- ticipation in preserving and inter- Klan. I never heard of such a thing. I asked tinuing their life in the State of South Caro- preting the story of Cedar Creek, we the head of law enforcement, do we have the lina, they could not do it. will have a truly unique partnership. Ku Klux Klan in South Carolina? He said, Without their courage, without their stamina, without their example in starting the The compelling story of the events ‘‘Ohhh yes. We have 1,727 members.’’ I asked, that unfolded at Cedar Creek surely you have an actual count? And he said: Briggs v. Elliott case, we never would have ‘‘Ohhh yes, we keep a count of them.’’ He had a civil rights act. We never would have earns recognition within our National said he could get rid of them, but no Gov- had a voting rights act. We never would have Park system. In October of 1864, the ernor had helped him in the past. I said, I’ll had all the progress we’ve made over the Federal Army of the Shenandoah, hav- help you. What do we do? He said: ‘‘I need a many, many years. ing soundly defeated the Confederate little money.’’ So I wanted particularly to come back and Army of the Valley at Winchester on So we infiltrated the Klan, and the mem- to publicly thank each of you descendants. And I want to announce that I am putting September 19 and then again at Fish- bers began to know, or their bosses at busi- er’s Hill on September 22, ran the Con- nesses knew because they would say to these forward a bill that would honor post- people: ‘‘You know on Friday night, your humously Rev. De Laine with a Congres- federate forces out of the Shenandoah man, so and so, has been going to these ral- sional Gold Medal. Valley. In the process of this Union ad- lies.’’ The next thing you know, they quit I need 66 co-sponsors in the Senate. We vance, Federal forces either burned or going to the rallies. So by the time we inte- have to have similar support on the House took all of the Confederate food re- grated Clemson with Harvey Gantt, it went side. But Cong. Clyburn, he can get way serves and livestock between Staunton more votes than I can. I don’t think he’ll very, very peacefully. And there were less and Strasburg. Thinking he had finally than 300 Klansmen. have any trouble. We’ll try to work it out so Then, of course, as Senator I took my hun- that in ’04, the 50th anniversary of when the deprived the Valley as the Confed- ger trips. This is the effect those arguments decision came down, we’ll be able to make erate’s food source and as an invasion before the court had on me. I took those that presentation. route North, Major General Philip trips with the NAACP to 16 different coun- I just want to end by saying because of the Sheridan left his army camped along ties. As a result, we embellished the food courage of your parents, we made far more Cedar Creek at Middletown and went to stamp program, we instituted the women in- progress in the United States of America. Washington to have meetings with his fants and children’s feeding program, and the Our country is a far stronger country. We are supporters. more than ever the land of the free and the school lunch program. The attendance in Refusing to give up the Valley to the schools went way up when we started that. home of the brave because of Briggs v. El- As your Senator I had the privilege of em- liott. And I thank you all very, very much. Federals, General Jubal Early moved ploying Ralph Everett. He was the first his very hungry, tired, and ill-equipped black staff director of any committee in the By Mr. WARNER (for himself and army of about 17,000 to Fisher’s Hill on United States Senate. Mr. ALLEN): October 13. Facing down Sheridan’s

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5541 well dug-in army of over 30,000 men, (stonewall) Jackson campaign of 862 and the ural beauty. The historic, natural, cultural, Early had to make a decision to attack decisive campaigns of 1864; military, and scenic resources found in the or retreat. He chose to attack. On the (3) tell the rich story of the Battle of Cedar Cedar Creek Battlefield and Belle Grove night of October 18, he sent three of his Creek and its significance in the conduct of Plantation areas are nationally and region- the war in the Shenandoah Valley; and ally significant. divisions under the command of Major (4) preserve the significant historic, nat- (9) The existing, independent, not-for-prof- General John Gordon across the Shen- ural, cultural, military, and scenic resources it organizations dedicated to the protection andoah River and along the flank of found in the Cedar Creek Battlefield and and interpretation of the resources described Massanutten Mountain to hit the Fed- Belle Grove Plantation areas through part- above provide the foundation for public-pri- eral position from the east, behind its nerships with local landowners and the com- vate partnerships to further the success of entrenchments along Cedar Creek. munity. protecting, preserving, and interpreting After marching and maneuvering all SEC. 3. FINDINGS. these resources. night, Gordon’s divisions struck at Congress finds the following: (10) None of these resources, sites, or sto- (1) The Battle of Cedar Creek, also known ries of the Shenandoah Valley are protected dawn in a thick fog. The Federals were by or interpreted within the National Park clearly surprised. Early pushed the as the battle of Belle Grove, was a major event of the Civil War and the history of this System. Federals all the way out of their country. It represented the end of the Civil SEC. 4. DEFINITIONS. camps, past Belle Grove plantation and War’s Shenandoah Valley campaign of 1864 In this Act: all the way through Middleton. At mid- and contributed to the reelection of Presi- (1) COMMISSION.—The term ‘‘Commission’’ day, Gordon ordered a halt to the ad- dent Abraham Lincoln and the eventual out- means the Cedar Creek Battlefield and Belle vance so that he could regroup his come of the war. Grove Plantation National Historical Park forces. (2) 2,500 acres of the Cedar Creek Battle- Advisory Commission established by section Being informed that there was a bat- field and Belle Grove Plantation were des- 9. tle going on, Sheridan rushed to Mid- ignated a national historic landmark in 1969 (2) MAP.—The term ‘‘Map’’ means the map entitled ‘‘Cedar Creek Battlefield and Belle dletown from Winchester. Once he ar- because of their ability to illustrate and interpret important eras and events in the his- Grove Plantation National Historic Park’’, rived there in the afternoon, he found tory of the United States. The Cedar Creek numbered CECR–80,000, and dated June 12, his army posted along a ridge north of Battlefield, Belle Grove Manor House, the 2002. Middletown. There he was able to rally Heater House, and Harmony Hall (a National (3) PARK.—The term ‘‘Park’’ means the his men, and from the position he or- Historic Landmark) are also listed on the Cedar Creek Battlefield and Belle Grove dered a massive counterattack. The Virginia Landmarks Register. Plantation National Historical Park estab- counterattack completely swept the (3) The Secretary of the Interior has ap- lished under section 5 and depicted on the Confederates from the field. proved the Shenandoah Valley Battlefields Map. The battle of Cedar Creek was signifi- National Historic District Management (4) SECRETARY.—The term ‘‘Secretary’’ Plan, September 2000, which preserves the means the Secretary of the Interior. cant for many reasons. The battle dealt District’s historic character, and protects SEC. 5. ESTABLISHMENT OF CEDAR CREEK BAT- the crushing blow to the Confederacy and interprets 10 significant Civil War bat- TLEFIELD AND BELLE GROVE PLAN- in the Shenandoah Valley, thus ending tlefields within the District, including the TATION NATIONAL HISTORICAL the career of Jubal Early in the proc- Cedar Creek battlefield. PARK. ess. Most importantly, however, cou- (4) The Shenandoah Valley Battlefields Na- (a) ESTABLISHMENT.—There is established pled with the successes of General Wil- tional Historic District Management Plan the Cedar Creek Battlefield and Belle Grove and the National Park Service Special Re- Plantation National Historical Park, con- liam T. Sherman in the Atlanta cam- sisting of approximately 3,000 acres, as gen- paign, the battle boosted the morale of source Study recognize the Cedar Creek battlefield as the most significant Civil War re- erally depicted on the Map. the war-weary North and guaranteed source within the Historic District. (b) AVAILABILITY OF MAP.—The Map shall the re-election of President Abraham (5) The Shenandoah Valley Battlefields Na- be on file and available for public inspection Lincoln. tional Historic District Management Plan, in the offices of the National Park Service of The untouched landscape of this bat- which was developed with extensive public the Department of the Interior. tlefield and the historic structure of participation over a 3-year period and is ad- SEC. 6. ACQUISITION OF PROPERTY. Belle Grove plantation still today ministered by the Shenandoah Valley Battle- (a) REAL PROPERTY.—The Secretary may evoke the stories of the war. This site fields Foundation, recommends that Cedar acquire land or interests in land within the will serve to tell the whole story of the Creek Battlefield be established as a new boundaries of the park, from willing sellers campaigns of the Valley and visitors unit of the National Park System to provide only, by donation, purchase with donated or permanent protection for the battlefield and appropriated funds, or exchange. will experience the full impact of the to serve as the central site to increase the (b) BOUNDARY REVISION.—After acquiring War of these surrounding rural commu- public’s education and awareness of the land for the Park, the Secretary shall— nities. War’s legacy throughout the Historic Dis- (1) revise the boundary map of the Park to I ask unanimous consent that the trict. include newly acquired land within the text of the bill be printed in the (6) The Cedar Creek Battlefield Founda- boundary; and RECORD. tion, organized in 1988 to preserve and inter- (2) administer newly acquired land subject There being no objection, the bill was pret the Cedar Creek Battlefield and the 1864 to applicable laws (including regulations). ordered to be printed in the RECORD, as Valley Campaign, has acquired 308 acres of (c) PERSONAL PROPERTY.—The Secretary follows: land within the boundaries of the National may acquire personal property associated Historic Landmark. The foundation annually with, and appropriate for, interpretation of S. 2623 hosts a major reenactment and living his- the Park. Be it enacted by the Senate and House of Rep- tory event on the Cedar Creek Battlefield. (d) CONSERVATION EASEMENTS AND COV- resentatives of the United States of America in (7) Belle Grove Plantation is a Historic ENANTS.—The Secretary is authorized to ac- Congress assembled, Site of the National Trust for Historic Pres- quire conservation easements and enter into SECTION 1. SHORT TITLE. ervation that occupies 383 acres within the covenants regarding lads in or adjacent to This Act may be cited as the ‘‘Cedar Creek National Historic Landmark. The Belle the Park for willing sellers only. Such con- Battlefield and Belle Grove Plantation Na- Grove Manor House was built by Isaac Hite, servation easements and covenants shall tional Historical Park Act’’. a Revolutionary War patriot married to the have the effect of protecting the scenic, nat- SEC. 2. PURPOSE. sister of President James Madison, who was ural, and historic resources on adjacent The purpose of this Act is to establish the a frequent visitor at Belle Grove. President lands and preserving the natural or historic Cedar Creek Battlefield and Belle Grove Thomas Jefferson assisted with the design of setting of the Park when viewed from within Plantation National Historical Park in order the house. During the Civil War Belle Grove or outside the Park. to— was at the center of the decisive battle of (e) SUPPORT FACILITIES.—The National (1) help preserve, protect, and interpret a Cedar Creek. Belle Grove is managed locally Park Service is authorized to acquire from nationally significant Civil War landscape by Belle Grove, Incorporated, and has been willing sellers up to 50 acres of land outside and antebellum plantation for the education, open to the public since 1967. The house has the park boundary, but in close proximity to inspiration, and benefit of present and future remained virtually unchanged since it was the park, to develop facilities for one or generations; built in 1797, offering visitors an experience more of the following: (2) serve as a focal point to recognize and of the life and times of the people who lived (1) Visitors. interpret important events and geographic there in the 18th and 19th centuries. (2) Administrative functions. locations representing key Civil War battles (8) The panoramic views of the mountains, (3) Museums. in the Shenandoah Valley, including those natural areas, and waterways provide visi- (4) Curatorial functions. battlefields associated with the Thomas J. tors with an inspiring setting of great nat- (5) Maintenance.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5542 CONGRESSIONAL RECORD — SENATE June 13, 2002 SEC. 7. ADMINISTRATION. (i) 4 members for a term of 1 year; ized to enter into cooperative agreements The Secretary shall administer the Park in (ii) 5 members for a term of 2 years; and with interested public and private entities accordance with this Act and the provisions (iii) 6 members for a term of 3 years. and individuals (including the National of law generally applicable to units of the (5) EXTENDED SERVICE.—A member may Trust for Historic Preservation, Belle Grove, National Park System, including— serve after the expiration of that member’s Inc., the Cedar Creek Battlefield Founda- (1) the Act entitled ‘‘An Act to establish a term until a successor has taken office. tion, the Shenandoah Valley Battlefields National Park Service, and for other pur- (6) MAJORITY RULE.—The Commission shall Foundation, and the Counties of Frederick, poses’’, approved August 25, 1916 (16 U.S.C. 1 act and advise by affirmative vote of a ma- Shenandoah, and Warren), through technical et seq.); and jority of its members. and financial assistance, including encour- (2) the Act entitled ‘‘An Act to provide for (7) MEETINGS.—The Commission shall meet aging the conservation of historic and nat- the preservation of historic American sites, at least quarterly at the call of the chair- ural resources within and near the Park. buildings, objects, and antiquities of na- person or a majority of the members of the (b) TECHNICAL AND FINANCIAL ASSIST- tional significance, and for other purposes’’, Commission. ANCE.—The Secretary may provide to any approved August 21, 1935 (16 U.S.C. 461 et (8) QUORUM.—8 members shall constitute a person, organization, or governmental entity seq.). quorum. technical and financial assistance for the SEC. 8. MANAGEMENT OF PARK. (d) COMPENSATION.—Members shall serve purposes of this Act, including the following: (a) MANAGEMENT PLAN.—The Secretary, in without pay. Members who are full-time offi- (1) Preserving historic structures within consultation with the Commission, shall pre- cers or employees of the United States, the the Park. pare a management plan for the Park. In Commonwealth of Virginia, or any political (2) Maintaining the natural or cultural particular, the management plan shall con- subdivision thereof shall receive no addi- landscape of the Park. tain provisions to address the needs of own- tional pay on account of their service on the (3) Local preservation planning, interpre- ers of non-Federal land, including inde- Commission. tation, and management of public visitation pendent nonprofit organizations within the (e) HEARINGS; PUBLIC INVOLVEMENT.—The for the Park. boundaries of the Park. Commission may, for purposes of carrying (4) Furthering the goals of the Shenandoah (b) SUBMISSION OF PLAN TO CONGRESS.—Not out this Act, hold such hearings, sit and act Valley Battlefields Foundation and National later than 3 years after the date of the enact- at such times and places, take such public ment of this Act, the Secretary shall submit Historic District Management Plan. testimony, and receive such evidence, as the the management plan for the Park to Con- SEC. 13. ROLES OF KEY PARTNER ORGANIZA- Commission considers appropriate. The Com- gress. TIONS. mission may not issue subpoenas or exercise (a) IN GENERAL.—In recognition that cen- SEC. 9. CEDAR CREEK BATTLEFIELD AND BELLE any subpoena authority. GROVE PLANTATION NATIONAL HIS- tral portions of the Park are presently (f) FACA NONAPPLICABILITY.—The Federal TORICAL PARK ADVISORY COMMIS- owned and operated for the benefit of the Advisory Committee Act shall not apply to SION. public by key partner organizations, the Sec- the Commission. (a) ESTABLISHMENT.—There is established retary shall acknowledge and support the the Cedar Creek Battlefield and Belle Grove SEC. 10. CONSERVATION OF CEDAR CREEK BAT- continued participation of these partner or- Planation National Historical Park Advisory TLEFIELD AND BELLE GROVE PLAN- ganizations in the management of the Park. Commission. TATION NATIONAL HISTORICAL PARK. (b) PARK PARTNERS.—Roles of the current (b) DUTIES.—The Commission shall— key partners include the following: (1) advise the Secretary in the preparation (a) ENCOURAGEMENT OF CONSERVATION.— (1) CEDAR CREEK BATTLEFIELD FOUNDA- and implementation of a general manage- The Secretary and the Commission shall en- TION.—The Cedar Creek Battlefield Founda- ment plan described in section 8; and courage conservation of the historic and nat- tion may— (2) advise the Secretary with respect to the ural resources within and in proximity of the (A) continue to own, operate, and manage identification of sites of significance outside Park by landowners, local governments, or- the lands acquired by the Foundation within the Park boundary deemed necessary to ful- ganizations, and businesses. the Park; fill the purposes of this Act. (b) PROVISION OF TECHNICAL ASSISTANCE.— (c) MEMBERSHIP.— The Secretary may provide technical assist- (B) continue to conduct reenactments and (1) COMPOSITION.—The Commission shall be ance to local governments, in cooperative ef- other events within the Park; and composed of 15 members appointed by the forts which complement the values of the (C) transfer ownership interest in portions Secretary so as to include the following: Park. of their land to the National Park Service by (A) 1 representative from the Common- (c) COOPERATION BY FEDERAL AGENCIES.— donation, sale, or other means that meet the wealth of Virginia. Any Federal entity conducting or supporting legal requirements of National Park Service (B) 1 representative each from the local activities directly affecting the Park shall land acquisitions. governments of Strasburg, Middletown, consult, cooperate, and, to the maximum ex- (2) NATIONAL TRUST FOR HISTORIC PRESER- Frederick County, Shenandoah County, and tent practicable, coordinate its activities VATION AND BELLE GROVE INCORPORATED.— Warren County. with the Secretary in a manner that— The National Trust for Historic Preservation (C) 2 representatives of private landowners (1) is consistent with the purposes of this and Belle Grove Incorporated may continue within the Park. Act and the standards and criteria estab- to own, operate, and manage Belle Grove (D) 1 representative from a citizen interest lished pursuant to the general management Plantation and its structures and grounds group. plan developed pursuant to section 8; within the Park boundary. Belle Grove In- (E) 1 representative from the Cedar Creek (2) is not likely to have an adverse effect corporated may continue to own the house Battlefield Foundation. on the resources of the Park; and and grounds known as Bowman’s Fort or (F) 1 representative from Belle Grove, In- (3) is likely to provide for full public par- Harmony Hall for the purpose of permanent corporated. ticipation in order to consider the views of preservation, with a long-term goal of open- (G) 1 representative from the National all interested parties. ing the property to the public. Trust for Historic Preservation. SEC. 11. ENDOWMENT. (3) SHENANDOAH COUNTY.—Shenandoah (H) 1 representative from the Shenandoah (a) IN GENERAL.—In accordance with the County may continue to own, operate, and Valley Battlefields Foundation. provisions of subsection (b), the Secretary is manage the Keister park site within the (I) 1 ex officio representative from the Na- authorized to receive and expend funds from Park for the benefit of the public. tional Park Service. an endowment to be established with the Na- (4) GATEWAY COMMUNITIES.—The adjacent (J) 1 ex officio representative from the tional Park Foundation, or its successors historic towns of Strasburg and Middletown United States Forest Service. and assigns. shall be acknowledged at Gateway Commu- (2) CHAIRPERSON.—The Chairperson of the (b) CONDITIONS.—Funds from the endow- nities to the Park. Commission shall be elected by the members ment referred to in subsection (a) shall be (5) SHENANDOAH VALLEY BATTLEFIELDS to serve a term of one year renewable for one expended exclusively as the Secretary, in FOUNDATION.—The Shenandoah Valley Bat- additional year. consultation with the Commission, may des- tlefields Foundation may continue to admin- (3) VACANCIES.—A vacancy on the Commis- ister and manage the Shenandoah Valley sion shall be filed in the same manner in ignate for the interpretation, preservation, Battlefields National Historic District in which the original appointment was made. and maintenance of the Park resources and public access areas. No expenditure shall be partnership with the National Park Service (4) TERMS OF SERVICE.— made pursuant to this section unless the and in accordance with the Management (A) IN GENERAL.—Each member shall be Plan for the District in which the Park is lo- appointed for a term of 3 years and may be Secretary determines that such an expendi- cated. reappointed for not more than 2 successive ture is consistent with the purposes of this terms. Act. SEC. 14. AUTHORIZATION OF APPROPRIATIONS. (B) INITIAL MEMBERS.—Of the members first SEC. 12. COOPERATIVE AGREEMENTS There is authorized to be appropriated appointed under paragraph (1), the Secretary (a) IN GENERAL.—In order to further the such sums as are necessary to carry out this shall appoint— purposes of this Act, the Secretary is author- Act.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5543 STATEMENTS ON SUBMITTED on August 6, 2002, between 7:00 p.m. and 10:00 SENATE RESOLUTION 285—EX- RESOLUTIONS p.m.; and PRESSING THE SENSE OF THE (4) requests that the President— SENATE CONDEMNING THE FAIL- (A) issue a proclamation calling on the URE OF THE INTERNATIONAL SENATE RESOLUTION 284—EX- people of the United States to participate in WHALING COMMISSION TO REC- PRESSING THE SUPPORT FOR National Night Out with appropriate activi- OGNIZE THE NEEDS OF ALASKAN ties; and ‘‘NATIONAL NIGHT OUT’’ AND ESKIMOS REQUESTING THAT THE PRESI- (B) make neighborhood crime prevention, DENT MAKE NEIGHBORHOOD community policing, and reduction of school Mr. MURKOWSKI (for himself and CRIME PREVENTION COMMUNITY crime important priorities of the Adminis- Mr. STEVENS) submitted the following POLICING AND REDUCTION OF tration. resolution; which was referred to the SCHOOL CRIME IMPORTANT PRI- Mr. BIDEN. Madam President, today Committee on Foreign Relations: ORITIES OF THE ADMINISTRA- I rise to submit a resolution, along S. RES. 285 TION. with Senator SPECTER, supporting ‘‘Na- Whereas the International Whaling Com- mission was founded in 1946 under the Inter- Mr. BIDEN (for himself and Mr. tional Night Out,’’ a program at the national Convention for the Regulation of SPECTER) submitted the following reso- forefront of the Nation’s effort to com- Whaling, with the purpose of providing for lution; which was referred to the Com- bat crime and terrorism. On August 6 the proper conservation of whale stocks in mittee on the Judiciary. of this year, over 33 million people in order to make possible the orderly develop- S. RES. 284 ment of the whaling industry; 9,700 communities from all 50 States Whereas the Commission has explicitly Whereas neighborhood crime is a con- will participate in the 19th Annual Na- tinuing concern of the American people; recognized aboriginal subsistence whaling as Whereas the fight against neighborhood tional Night Out. These volunteers separate from commercial whaling and has crime and terrorism requires the cooperation greet their neighbors, meet with local in the past provided quotas for aboriginal of community residents, neighborhood crime police, and participate in block parties subsistence whaling participants from Den- mark, the Russian Federation, St. Vincent watch organizations, schools, community po- and parades, all to encourage citizens licing groups, and other law enforcement of- and The Grenadines and the United States; ficials; to become active caretakers of their Whereas the Commission has failed to Whereas neighborhood crime watch organi- communities. This resolution would sa- renew the aboriginal subsistence whaling zations are effective in promoting awareness lute and encourage those efforts. which previously was designated for Alaska about, and the participation of volunteers in, Eskimo whalers; crime prevention activities at the local This past year has seen our nation Whereas the Commission’s failure to reau- level; both horrified by unthinkable tragedy, thorize quotas for aboriginal subsistence Whereas the vigilance of neighborhood and driven to ensure that nothing so whaling was orchestrated by nations dis- crime watch organizations creates safer gruntled by the United States position in op- terrible ever happens again. Unfortu- position to the resumption of commercial communities and discourages drug dealers nately, we can’t have a police officer from operating in the communities mon- whaling and determined to retaliate against itored by those organizations; protecting us on every block, during legitimate United States interests in ab- Whereas the American people are con- every minute, of everyday. And while original subsistence whaling; Whereas aboriginal subsistence whaling cerned about violence and crime in schools, many of us in the Congress have has been a mainstay of the culture and live- especially about incidents that result in fa- worked for years to enhance the tools lihood of the Inuit people of Alaska for thou- talities at school, and are seeking methods sands of years; to prevent such violence and crime; and resources available to law enforce- Whereas whaling by the Inupiat people of Whereas community-based programs in- ment, few things are more valuable in northern Alaska brings significant benefits volving law enforcement personnel, school our ongoing war against terrorism and to every member of the successful villages, administrators, teachers, parents, and local crime than the eyes and ears of con- where whale meat is shared among all resi- communities are effective in reducing vio- scientious citizens. A 1995 study by the dents; lence and crime in schools; Whereas the Inupiat people of Alaska have Whereas the Federal Government has made National Institute of Justice shows consistently followed responsible manage- efforts to prevent neighborhood crime, in- that crime rates are 40 percent lower, ment practices in carrying out their whaling cluding supporting community policing pro- on average, in communities with high activities; grams; mutual trust among neighbors. By en- Whereas the Inupiat people of Alaska have Whereas the Attorney General has called embraced the goal of whale conservation and Federal efforts to support community polic- couraging members of each community to get to know one another, be familiar participated heavily in whale research and ing a ‘‘miraculous sort of success’’; monitoring that demonstrates that their Whereas the Administration has supported with their block, and work with local subsistence whaling has no adverse effect on neighborhood watch programs through the law enforcement officials to spot and the population of bowhead whales, their pre- establishment of the Citizen Corps; address suspicious situations, National ferred species: Now, therefore, be it Whereas on August 6, 2002, people across Night Out helps all of us sleep more Resolved, That it is the sense of the Senate America will take part in National Night that— Out, an event that highlights the importance soundly. (1) the failure of the Commission to renew of community participation in crime preven- Today, with terrorists seeking to aboriginal whaling quotas is inconsistent tion efforts; strike our homeland, our efforts to with the understandings on which the Com- Whereas on National Night Out partici- mission is based, and jeopardizes the contin- pants will light up their homes and neighbor- keep America’s streets safe are more ued existence of the Commission as a mean- hoods between 7:00 p.m. and 10:00 p.m. on crucial than ever. Working side by side ingful international body; and that date, and spend that time outside with with local law enforcement, neighbor- (2) regardless of any current or subsequent their neighbors; and hood crime watch groups have been, action of the Commission, the United States Whereas schools that turn their lights on government should take all steps necessary from 7:00 p.m. to 10:00 p.m. on August 6, 2002, and will continue to be an invaluable to ensure the continuance of scientifically send a positive message to the participants resource. In fact, a Justice Department sound aboriginal subsistence whaling by the of National Night Out and show their com- survey indicates that 90 percent of law Inupiat people of Alaska. mitment to reducing crime and violence in enforcement officers believe National schools: Now, therefore, be it Mr. MURKOWSKI. Madam President, Resolved, That the Senate— Night Out enhances their policing pro- I rise to offer a sense of the Senate res- (1) supports the goals of National Night grams. Every year, National Night Out olution condemning the International Out; provides Americans with a great oppor- Whaling Commission’s recent vote (2) recognizes that the fight against neigh- tunity to meet their neighbors, show against renewing quotas for aboriginal borhood crime and terrorism requires indi- their patriotism, and keep their streets subsistence whaling by Alaska’s Inuit viduals, neighborhood crime watch organiza- people. safe. I hope my colleagues will join tions, schools, and community policing I have always respected both the groups and other law enforcement officials Senator SPECTER and me in thanking goals and the processes of the Inter- to work together; them for making a difference, one (3) encourages neighborhood residents, national Whaling Commission, but my crime watch organizations, and schools to doorstep at a time. support has been badly eroded by re- participate in National Night Out activities cent events.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5544 CONGRESSIONAL RECORD — SENATE June 13, 2002 The Inupiat people of northern Alas- lemma will be developed in the near fu- ketball Association Finals games is number ka have engaged in environmentally ture. 1 all-time and his 34.2 point scoring average responsible whaling practices for thou- Nor can I suggest that this develop- ranks second; sands of years, with no international ment was a complete surprise. Japan Whereas Kobe Bryant was named to the has long sought the resumption of com- 2001–2002 All-National Basketball Associa- supervision. They were forced to stand tion First Team after averaging 25.5 points and watch as the great whales were mercial whaling, which is, in fact, the per game, 5.5 rebounds per game, and 5.5 as- decimated. stated purpose of the International sists per game during the regular season; Alaska’s Inupiat people responded Whaling Commission. It has long Whereas Kobe Bryant averaged 26.8 points, positively to the conservation goals of warned that some form of retaliation 5.8 rebounds, and 5.3 assists during the 2002 the International Commission, forming might result from our continued oppo- National Basketball Association Finals; their own organization, the Alaska Es- sition in the face of scientific evidence Whereas Coach Phil Jackson won his ninth kimo Whaling Commission, which has that some whale populations, such as National Basketball Association title, tying the record of legendary Boston Celtics coach, participated wholeheartedly in Inter- the Minke whales sought by the coastal villages, have fully recovered and Red Auerbach; national Commission meetings. The Whereas Coach Phil Jackson won his 156th Alaska Commission has also put sig- could support the resumption of whal- postseason game, surpassing former Lakers nificant assets and effort toward re- ing. Coach Pat Riley to become the winningest search and monitoring that has proven Japan complains that the U.S. is playoff coach in National Basketball Asso- conclusively that current Alaskan being ‘‘unfair.’’ How could anything be ciation history; whaling poses no danger to the stocks more unfair than the action Japan has Whereas the Los Angeles Lakers epitomize of bowhead whales that are its target orchestrated against Alaska’s Inupiat the spirit of their hometown with their determination, heart, stamina, and amazing species. people? I repeat, that this is not how inter- comeback ability; Whaling is more important to the Whereas the support of all the Los Angeles communities of northern Alaska than national negotiations should be conducted. Targeting Alaska’s Inupiat fans and the people of California propelled most can possibly understand. It pro- the Los Angeles Lakers to another National vides a critical element of their diet, a whaling is not justified and can only Basketball Association Championship; and major staple for their survival. But be- serve to further alienate even those Whereas the Los Angeles Lakers are poised yond that, it is a custom that is deeply who might be sympathetic to the Japa- to win a fourth straight National Basketball ingrained in the culture of the Inupiat nese villages. Association Championship next season: Now, The resolution I am introducing people. therefore, be it today condemns this unwarranted de- Resolved, That the Senate commends and Becoming a whaling captain is one of velopment, and calls on U.S. authori- congratulates the Los Angeles Lakers on the greatest honors possible, and car- ties to do everything in their power to winning the 2002 National Basketball Asso- ries with it great responsibility. Whal- ensure that aboriginal subsistence ciation Championship Title. ing captains provide gear and supplies whaling in Alaska is allowed to con- for their crews at significant cost, yet f tinue under the same carefully crafted when a whale is taken, they receive no and scientifically justified system that SENATE CONCURRENT RESOLU- compensation other than the knowl- currently guides it. I understand the TION 121—EXPRESSING THE edge of a job well done, for which they various executive branch agencies with SENSE OF CONGRESS THAT are not even allowed to deduct their an interest in this issue are already en- THERE SHOULD BE ESTAB- costs as charitable contributions. It is gaged in doing just that, and they de- LISHED A NATIONAL HEALTH a job that is important not only to the serve our enthusiastic support. CENTER WEEK FOR THE WEEK whalers themselves, but to every resi- BEGINNING ON AUGUST 18, 2002, f dent of the whaling communities, TO RAISE AWARENESS OF where their catch is shared between SENATE RESOLUTION 286—COM- HEALTH SERVICES PROVIDED BY young and old alike. MENDING AND CONGRATU- COMMUNITY, MIGRANT, PUBLIC But that long history and honorable LATING THE LOS ANGELES HOUSING, AND HOMELESS practice suffered a serious blow at the LAKERS FOR THEIR OUT- HEALTH CENTERS recent International Whaling Commis- STANDING DRIVE, DISCIPLINE, Mr. HUTCHINSON (for himself, Mr. sion meeting in Shimoneseki, Japan. AND MASTERY IN WINNING THE DURBIN, Mr. BOND, and Mr. HOLLINGS) Nations promoting the resumption of 2002 NATIONAL BASKETBALL AS- submitted the following concurrent commercial whaling, led by Japan SOCIATION CHAMPIONSHIP resolution; which was referred to the itself, engineered a vote to reject the Mrs. FEINSTEIN (for herself and Committee on the Judiciary: proposed renewal of quotas for Eskimo Mrs. BOXER) submitted the following S. CON. RES. 121 whaling. resolution; which was considered and Whereas community, migrant, public hous- It is clear from a statement released agreed to: by the Japanese Fisheries Agency on ing, and homeless health centers (referred to S. RES. 286 May 24 that this action was taken sole- in this concurrent resolution as ‘‘health cen- Whereas the Los Angeles Lakers are 1 of ters’’) are nonprofit, community-owned and ly to retaliate against the United the greatest sports franchises in history; community-operated health providers and States for our opposition to the re- Whereas the Laker organization has won 14 are vital to the Nation’s communities; sumption of commercial whaling, spe- National Basketball Association Champion- Whereas there are more than 1,000 health cifically our rejection of a small quota ships; centers serving 12,000,000 people at more than of Minke whales for four coastal vil- Whereas the Los Angeles Lakers are only 4,000 health delivery sites, spanning urban lages. There is a word for such an ac- the fifth team to win 3 consecutive National and rural communities in all 50 States, the tion, and that word is ‘‘spiteful.’’ Basketball Association Championships and District of Columbia, Puerto Rico, Guam, This is not the way international ne- the seventh team to sweep the finals 4 games and the Virgin Islands; gotiations should be conducted. to none; Whereas health centers have provided cost- Whereas the Laker organization has fielded effective, quality health care to the Nation’s Alaska’s aboriginal whaling has such legendary superstars as George Mikan, poor and medically underserved (including nothing to do with commercial whal- Wilt Chamberlain, Jerry West, Elgin Baylor, the working poor, the uninsured, and many ing, and everything to do with hon- Kareem Abdul-Jabbar, Earvin ‘‘Magic’’ John- high-risk and vulnerable populations), acting oring a way of life that has come to be son, and now, Shaquille O’Neal and Kobe as a vital safety net in the Nation’s health synonymous with survival for Alaska’s Bryant; delivery system, meeting escalating health Inupiat people. Whereas Shaquille O’Neal won his third needs, and reducing health disparities; It is not that I lack sympathy for the straight National Basketball Association Whereas health centers provide care to 1 of Japanese people, or the long history of Finals Most Valuable Player award, joining every 9 uninsured Americans, 1 of every 8 whaling that is part of the culture of Michael Jordan as the only player to win 3 low-income Americans, and 1 of every 10 consecutive awards; rural Americans, and without health centers those four Japanese coastal villages. I Whereas Shaquille O’Neal scored a record these Americans would otherwise lack access happen to believe that history also 145 points in the 2002 4-game finals series; to health care; should be honored, and I hope that an Whereas Shaquille O’Neal’s 59.5 percent ca- Whereas health centers and other innova- agreeable solution to the current di- reer field goal percentage in National Bas- tive programs in primary and preventive

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5545 care reach out to 650,000 homeless persons contributing to the physical well-being ment intended to be proposed by him and 700,000 farm workers; of communities, they are also contrib- to the bill S. 2600, to ensure the contin- Whereas health centers make health care uting to the economic well-being of the ued financial capacity of insurers to responsive and cost-effective by integrating communities where they are located, provide coverage for risks from ter- the delivery of primary care with aggressive outreach, patient education, translation, and by employing over 50,000 community rorism; which was ordered to lie on the enabling support services; residents nationwide. table; as follows: Whereas health centers increase the use of I commend President Bush for recog- On page 14, line 9, insert before ‘‘but’’ the preventive health services such as immuni- nizing the valuable role of community following: ‘‘or that could have operated zations, Pap smears, mammograms, and health centers. The President has wise- through such self insurance arrangements glaucoma screenings; ly called for the establishment of 1,200 under applicable State law in effect on Sep- Whereas in communities served by health new and expanded health center sites tember 11, 2001,’’. centers, infant mortality rates have been re- by 2006 that will enable health centers duced by between 10 and 40 percent; SA 3836. Mr. MCCONNELL (for him- to serve more than 16 million patients Whereas health centers are built by com- self, Mr. GRAMM, Mr. LOTT, and Mr. annually. munity initiative; SANTORUM) proposed an amendment to Congress should also pay tribute to Whereas Federal grants provide seed the bill S. 2600, to ensure the continued the role of these centers in improving money to empower communities to find part- financial capacity of insurers to pro- ners and resources and to recruit doctors and the health and well-being of our Na- vide coverage for risks from terrorism; needed health professionals; tion’s poor and medically underserved as follows: Whereas Federal grants, on average, con- by establishing the week of August 18, tribute 22 percent of a health center’s budg- 2002, as National Community Health On page 29, strike line 1 and all that fol- et, with the remainder provided by State and lows through page 30, line 17, and insert the local governments, medicare, medicaid, pri- Center Week. following: vate contributions, private insurance, and f SEC. 10. PROCEDURES FOR CIVIL ACTIONS. patient fees; AMENDMENTS SUBMITTED AND (a) FEDERAL CAUSE OF ACTION.— Whereas health centers are community- PROPOSED (1) IN GENERAL.—There shall exist a Fed- oriented and patient-focused; eral cause of action for claims arising out of Whereas health centers tailor their serv- SA 3835. Mr. LEAHY (for himself and Mr. or resulting from an act of terrorism, which ices to fit the special needs and priorities of JEFFORDS) submitted an amendment in- shall be the exclusive cause of action and communities by working together with tended to be proposed by him to the bill S. remedy for such claims, except as provided schools, businesses, churches, community or- 2600, to ensure the continued financial capac- in subsection (f). ganizations, foundations, and State and local ity of insurers to provide coverage for risks (2) PREEMPTION OF STATE ACTIONS.—All governments; from terrorism; which was ordered to lie on State causes of action of any kind for claims Whereas health centers contribute to the the table. arising out of or resulting from an act of ter- health and well-being of their communities SA 3836. Mr. MCCONNELL (for himself, Mr. rorism that are otherwise available under by keeping children healthy and in school GRAMM, Mr. LOTT, and Mr. SANTORUM) pro- State law, are hereby preempted, except as and helping adults remain productive and on posed an amendment to the bill S. 2600, provided in subsection (f). the job; supra. (b) GOVERNING LAW.—The substantive law Whereas health centers engage citizen par- SA 3837. Mr. NELSON, of Nebraska (for for decision in an action described in sub- ticipation and provide jobs for 50,000 commu- himself and Ms. COLLINS) submitted an section (a)(1) shall be derived from the law, nity residents; and amendment intended to be proposed by him including applicable choice of law principles, Whereas the establishment of a National to the bill S. 2600, supra; which was ordered of the State in which the act of terrorism Community Health Center Week for the to lie on the table. giving rise to the action occurred, except to week beginning on August 18, 2002, would SA 3838. Mr. ALLEN (for himself, Mr. the extent that— raise awareness of the health services pro- BURNS, Mr. WARNER, Mr. SMITH, of New (1) the law, including choice of law prin- vided by health centers: Now, therefore, be it Hampshire, Mrs. HUTCHISON, and Mr. HARKIN) ciples, of another State is determined to be Resolved by the Senate (the House of Rep- submitted an amendment intended to be pro- applicable to the action by the district court resentatives concurring), That it is the sense posed by him to the bill S. 2600, supra. hearing the action; or of Congress that— SA 3839. Mr. HATCH proposed an amend- (2) otherwise applicable State law (includ- (1) there should be established a National ment to the bill S. 2600, supra. ing that determined under paragraph (1), is Community Health Center Week for the SA 3840. Mr. NELSON, of Florida sub- inconsistent with or otherwise preempted by week beginning on August 18, 2002, to raise mitted an amendment intended to be pro- Federal law. awareness of health services provided by posed by him to the bill S. 2600, supra; which (c) FEDERAL JURISDICTION.— health centers; and was ordered to lie on the table. (1) IN GENERAL.—Notwithstanding any (2) the President should issue a proclama- SA 3841. Mr. HOLLINGS submitted an other provision of law, not later than 90 days tion calling on the people of the United amendment intended to be proposed by him after the date of the occurrence of an act of States and interested organizations to ob- to the bill S. 2600, supra; which was ordered terrorism, the Judicial Panel on Multidis- serve such a week with appropriate programs to lie on the table. trict Litigation shall assign a single Federal and activities. SA 3842. Mr. SANTORUM proposed an district court to conduct pretrial and trial amendment to the bill S. 2600, supra. proceedings in all pending and future civil Mr. HUTCHINSON. Madam Presi- SA 3843. Mr. BROWNBACK proposed an dent, I rise today to submit a concur- actions for claims arising out of or resulting amendment to the bill S. 2600, supra. from that act of terrorism. rent resolution, along with my col- SA 3844. Mr. ENSIGN proposed an amend- (2) SELECTION CRITERIA.—The Judicial leagues, Senators DURBIN, BOND, and ment to amendment SA 3843 proposed by Mr. Panel on Multidistrict Litigation shall se- ROWNBACK to the bill (S. 2600) supra. HOLLINGS, that would establish the B lect and assign the district court under para- SA 3845. Mr. REID (for Mrs. FEINSTEIN) pro- week of August 18, 2002, as National graph (1) based on the convenience of the posed an amendment to the bill S. 672, to Community Health Center Week. parties and the just and efficient conduct of amend the Immigration and Nationality Act Community, migrant, public housing, the proceedings. to provide for the continued classification of (3) JURISDICTION.—The district court as- and homeless health centers are non- certain aliens as children for purposes of signed by the Judicial Panel on Multidistrict profit providers of health care for our that Act in cases where the aliens ‘‘age-out’’ Litigation shall have original and exclusive Nation’s medically underserved. An es- while awaiting immigration processing, and jurisdiction over all actions under paragraph sential element of our Nation’s safety for other purposes. (1). For purposes of personal jurisdiction, the SA 3846. Mr. REID (for Mrs. FEINSTEIN) pro- net, health centers provide care to 1 of district court assigned by the Judicial Panel posed an amendment to the bill H.R. 1209, to every 9 uninsured Americans, 1 of on Multidistrict Litigation shall be deemed amend the Immigration and Nationality Act every 8 low-income Americans and 1 of to sit in all judicial districts in the United to determine whether an alien is a child, for every 10 rural Americans. In rural and States. purposes of classification as an immediate (4) TRANSFER OF CASES FILED IN OTHER FED- small communities, health centers are relative, based on the age of the alien on the ERAL COURTS.—Any civil action for claims often the only health care providers, date the classification petition with respect arising out of or resulting from an act of ter- and in many cases can be the difference to the alien is filed, and for other purposes. between life and death. Communities rorism that is filed in a Federal district f court other than the Federal district court served by these health care centers TEXT OF AMENDMENTS assigned by the Judicial Panel on Multidis- have experienced reduced infant mor- trict Litigation under paragraph (1) shall be tality rates by as much as 10 and 40 SA 3835. Mr. LEAHY (for himself and transferred to the Federal district court so percent. Not only are health centers Mr. JEFFORDS) submitted an amend- assigned.

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(5) REMOVAL OF CASES FILED IN STATE reasonable and predictable prices, in order to (II) property; or COURTS.—Any civil action for claims arising spread the risk of both routine and cata- (III) infrastructure; out of or resulting from an act of terrorism strophic loss, is critical to economic growth, (ii) to have resulted in damage or loss of that is filed in a State court shall be remov- urban development, and the construction life within the United States, or outside the able to the Federal district court assigned by and maintenance of public and private hous- United States in the case of an air carrier de- the Judicial Panel on Multidistrict Litiga- ing, as well as to the promotion of United scribed in paragraph (3)(A)(ii); and tion under paragraph (1). States exports and foreign trade in an in- (iii) to have been committed by an indi- (d) APPROVAL OF SETTLEMENTS.—Any set- creasingly interconnected world; vidual or individuals acting on behalf of any tlement between the parties of a civil action (4) the ability of employers, labor unions, foreign person or foreign interest, as part of described in this section for claims arising and other groups to obtain group life and ac- an effort to coerce the civilian population of out of or resulting from an act of terrorism cidental death insurance is critical to the the United States or to influence the policy shall be subject to prior approval by the Sec- ability of such groups to attract employees or affect the conduct of the United States retary after consultation by the Secretary and members, which is vital to sustained Government by coercion. with the Attorney General. high levels of employment and economic (B) LIMITATION.—No act or event shall be (e) LIMITATION ON DAMAGES.— growth; certified by the Secretary as an act of ter- (1) IN GENERAL.—Punitive or exemplary (5) insurance firms that provide property rorism if— damages shall not be available for any losses and casualty insurance and insurance firms (i) the act or event is committed in the in any action described in subsection (a)(1), that provide group life and accidental death course of a war declared by the Congress; or including any settlement described in sub- insurance face similar concentrations of fi- (ii) losses resulting from the act or event, section (d), except where— nancial risk; in the aggregate, do not exceed $5,000,000. (A) punitive or exemplary damages are per- (6) the ability of the insurance industry to (C) DETERMINATIONS FINAL.—Any certifi- mitted by applicable State law; and cover the unprecedented financial risks pre- cation of, or determination not to certify, an (B) the harm to the plaintiff was caused by sented by potential acts of terrorism in the act or event as an act of terrorism under this a criminal act or course of conduct for which United States can be a major factor in the paragraph shall be final, and shall not be the defendant was convicted under Federal recovery from terrorist attacks, while main- subject to judicial review. or State criminal law, including a conviction taining the stability of the economy; (2) BUSINESS INTERRUPTION COVERAGE.—The based on a guilty pea or plea of nolo (7) widespread financial market uncertain- term ‘‘business interruption coverage’’ contendere. ties have arisen following the terrorist at- means— (2) PROTECTION OF TAXPAYER FUNDS.—Any tacks of September 11, 2001, including the ab- (A) coverage of losses for temporary relo- amounts awarded in, or granted in settle- sence of information from which financial cation expenses and ongoing expenses, in- ment of, an action described in subsection institutions can make statistically valid es- cluding ordinary wages, where— (a)(1) that are attributable to punitive or ex- timates of the probability and cost of future emplary damages allowable under paragraph terrorist events, and therefore the size, fund- (i) there is physical damage to the business (1) of this subsection shall not count as in- ing, and allocation of the risk of loss caused premises of such magnitude that the busi- sured losses for purposes of this Act. by such acts of terrorism; ness cannot open for business; (f) CLAIMS AGAINST TERRORISTS.—Nothing (8) a decision by insurers to deal with such (ii) there is physical damage to other prop- in this section shall in any way be construed uncertainties, either by terminating or ex- erty that totally prevents customers or em- to limit the ability of any plaintiff to seek cluding coverage for losses arising from ter- ployees from gaining access to the business any form of recovery from any person, gov- rorist events, or by radically escalating pre- premises; or ernment, or other entity that was a partici- mium coverage to compensate for risks of (iii) the Federal, State, or local govern- pant in, or aider and abettor of, any act of loss that are not readily predictable, could ment shuts down an area due to physical or terrorism. seriously hamper ongoing and planned con- environmental damage, thereby preventing (g) EFFECTIVE PERIOD.—This section shall struction, property acquisition, and other customers or employees from gaining access apply only to actions described in subsection business projects, generate a dramatic in- to the business premises; and (a)(1) arising out of or resulting from acts of crease in rents, otherwise suppress economic (B) does not include lost profits, other than terrorism that occur during the effective pe- activity and deprive the beneficiaries of in the case of a small business concern (as riod of the Program, including any applica- group life insureds the financial security and defined in section 3 of the Small Business ble extension period. benefits of such coverage; and Act (15 U.S.C. 632) and applicable regulations (9) the United States Government should thereunder) in any case described in clause SA 3837. Mr. NELSON of Nebraska provide temporary financial compensation to (i), (ii), or (iii) of subparagraph (A). (for himself and Ms. COLLINS) sub- insured parties, contributing to the sta- (3) INSURED LOSS.—The term ‘‘insured mitted an amendment intended to be bilization of the United States economy in a loss’’— proposed by him to the bill S. 2600, to time of national crisis, while the financial (A) means any loss resulting from an act of ensure the continued financial capac- services industry develops the systems, terrorism that is covered by primary property and casualty insurance, including busi- ity of insurers to provide coverage for mechanisms, products, and programs necessary to create a viable financial services ness interruption coverage, or group life in- risks from terrorism; which was or- market for private terrorism risk insurance. surance, including accidental death insur- dered to lie on the table; as follows: (b) PURPOSE.—The purpose of this Act is to ance, issued by a participating insurance Strike all after the enacting clause and in- establish a temporary Federal program that company, if such loss— sert the following: provides for a transparent system of shared (i) occurs within the United States; or SECTION 1. SHORT TITLE. public and private compensation for insured (ii) occurs to or aboard an air carrier (as This Act may be cited as the ‘‘Terrorism losses resulting from acts of terrorism, in defined in section 40102 of title 49, United Risk Insurance Act of 2002’’. order to— States Code) or to a United States flag vessel SEC. 2. CONGRESSIONAL FINDINGS AND PUR- (1) protect consumers by addressing mar- (or a vessel based principally in the United POSE. ket disruptions and ensure the continued States, on which United States income tax is (a) FINDINGS.—The Congress finds that— widespread availability and affordability of paid and whose insurance coverage is subject (1) insurance firms that provide property property and casualty insurance and group to regulation in the United States), regard- and casualty insurance are important finan- life and accidental death insurance for ter- less of where the loss occurs; and cial institutions, the products of which allow rorism risk; and (B) excludes coverage under any health in- mutualization of risk and the efficient use of (2) allow for a transitional period for the surance or individual life insurance policy. financial resources and enhance the ability private markets to stabilize, resume pricing (4) MARKET SHARE.— of the economy to maintain stability, while of such insurance, and build capacity to ab- (A) IN GENERAL.—The ‘‘market share’’ of a responding to a variety of economic, polit- sorb any future losses, while preserving participating insurance company shall be ical, environmental, and other risks with a State insurance regulation and consumer calculated using the total amount of direct minimum of disruption; protections. written property and casualty insurance pre- (2) insurance firms that provide group term SEC. 3. DEFINITIONS. miums or group life insurance premiums, in- life and accidental death insurance are im- In this Act, the following definitions shall cluding premiums for accidental death insur- portant financial institutions, the products apply: ance for the participating insurance com- of which allow employers, labor unions, and (1) ACT OF TERRORISM.— pany during the 2-year period preceding the other groups to protect their employees and (A) CERTIFICATION.—The term ‘‘act of ter- year in which the subject act of terrorism members against the financial impact of un- rorism’’ means any act that is certified by occurred (or during such other period for timely death and allow their employees and the Secretary, in concurrence with the Sec- which adequate data are available, as deter- members to make financial provisions for retary of State, and the Attorney General of mined by the Secretary), as a percentage of their families and other beneficiaries at rea- the United States— the aggregate of all such property and cas- sonable cost; (i) to be a violent act or an act that is dan- ualty insurance or group life insurance, in- (3) the ability of businesses and individuals gerous to— cluding accidental death insurance pre- to obtain property and casualty insurance at (I) human life; miums industry-wide during that period.

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(B) ADJUSTMENTS.—The Secretary may ad- Compensation Program established by this that meets the definition of a participating just the market share of a participating in- Act. insurance company under section 3— surance company under subparagraph (A), as (11) PROPERTY AND CASUALTY INSURANCE.— (1) shall participate in the Program; necessary to reflect current market partici- The term ‘‘property and casualty insur- (2) shall make available in all of its prop- pation of that participating insurance com- ance— erty and casualty insurance policies (in all of pany. (A) means commercial lines of property its participating lines) and all of its group (5) NAIC.—The term ‘‘NAIC’’ means the and casualty insurance; life and accidental death policies, coverage National Association of Insurance Commis- (B) includes personal lines of property and for insured losses; and sioners. casualty insurance, if a notification is made (3) shall make available property and cas- (6) PARTICIPATING INSURANCE COMPANY.— in accordance with paragraph (6)(B); and ualty insurance and group life and accidental The term ‘‘participating insurance com- (C) does not include— death coverage for insured losses that does pany’’ means any insurance company, in- (i) Federal crop insurance issued or rein- not differ materially from the terms, cluding any subsidiary or affiliate thereof— sured under the Federal Crop Insurance Act amounts, and other coverage limitations ap- (A) that— (7 U.S.C. 1501 et seq.); or plicable to losses arising from events other (i) is licensed or admitted to engage in the (ii) private mortgage insurance, as that than acts of terrorism.– (d) PARTICIPATION BY SELF INSURED ENTI- business of providing primary insurance in term is defined in section 2 of the Home- TIES.— any State, and was so licensed or admitted owners Protection Act of 1998 (12 U.S.C. 4901). (1) DETERMINATION BY THE SECRETARY.—The on September 11, 2001; or (12) GROUP LIFE INSURANCE.—The term ‘‘group life insurance’’ means an insurance Secretary may, in consultation with the (ii) is not licensed or admitted as described contract that provides life insurance cov- NAIC, establish procedures to allow partici- in clause (i), if it is an eligible surplus line erage for a number of persons under a single pation in the Program by municipalities and carrier listed on the Quarterly Listing of contract and that provides such coverage on other governmental or quasi-governmental Alien Insurers of the NAIC, or any successor the basis of a group selection of risks. entities (and by any other entity, as the Sec- thereto; (13) SECRETARY.—The term ‘‘Secretary’’ retary deems appropriate) operating through (B) receives direct premiums for any type means the Secretary of the Treasury. self insurance arrangements that were in ex- of commercial property and casualty insur- (14) STATE.—The term ‘‘State’’ means any istence on September 11, 2001, but only if the ance coverage or that, not later than 21 days State of the United States, the District of Secretary makes a determination with re- after the date of enactment of this Act, sub- Columbia, the Commonwealth of Puerto gard to participation by any such entity be- mits written notification to the Secretary of Rico, the Commonwealth of the Northern fore the occurrence of an act of terrorism in its intent to participate in the Program with Mariana Islands, American Samoa, Guam, which the entity incurs an insured loss. regard to personal lines of property and cas- and each of the United States Virgin Islands. (2) PARTICIPATION.—If the Secretary makes ualty insurance; (15) UNITED STATES.—The term ‘‘United a determination to allow an entity described (C) that receives direct premiums for group States’’ means all States of the United in paragraph (1) to participate in the Pro- life insurance coverage, including accidental States. gram, all reports, conditions, requirements, death insurance coverage and, not later than SEC. 4. TERRORISM INSURED LOSS SHARED COM- and standards established by this Act for 21 days after the date of enactment of this PENSATION PROGRAM. participating insurance companies shall Act, submits written notification to the Sec- (a) ESTABLISHMENT OF PROGRAM.— apply to any such entity, as determined to retary of its intent to participate in the Pro- (1) IN GENERAL.—There is established in the be appropriate by the Secretary. gram; and Department of the Treasury the Terrorism (e) SHARED INSURANCE LOSS COVERAGE.— (D) that meets any other criteria that the Insured Loss Shared Compensation Program. (1) FEDERAL SHARE.— Secretary may reasonably prescribe. (2) AUTHORITY OF THE SECRETARY.—Not- (A) IN GENERAL.—Subject to the cap on li- (7) PARTICIPATING PROPERTY AND CASUALTY withstanding any other provision of Federal ability under paragraph (2) and the limita- INSURANCE COMPANY DEDUCTIBLE.—The term or State law, the Secretary shall administer tion under paragraph (6), the Federal share ‘‘participating property and casualty insur- the Program, and shall pay the Federal share of compensation under the Program to be ance company deductible’’ means— of compensation for insured losses in accord- paid by the Secretary for insured losses re- (A) a participating property and casualty ance with subsection (e). sulting from an act of terrorism occurring insurance company’s market share, multi- (b) CONDITIONS FOR FEDERAL PAYMENTS.— during the period beginning on the date of plied by $10,000,000,000, with respect to in- No payment may be made by the Secretary enactment of this Act and ending at mid- sured losses resulting from an act of ter- under subsection (e), unless— night on December 31, 2002— rorism occurring during the period beginning (1) a person that suffers an insured loss, or (i) shall be equal to 80 percent of that por- on the date of enactment of this Act and a person acting on behalf of that person, files tion of the amount of aggregate insured ending at midnight on December 31, 2002; and a claim with a participating insurance com- losses that— (B) a participating property and casualty pany; (I) exceeds the participating insurance insurance company’s market share, multi- (2) the participating insurance company company deductibles required to be paid for plied by $15,000,000,000, with respect to in- provides clear and conspicuous disclosure to those insured losses; and sured losses resulting from an act of ter- the policyholder of the premium charged for (II) does not exceed $10,000,000,000; and rorism occurring during the period beginning insured losses covered by the Program and (ii) shall be equal to 90 percent of that por- on January 1, 2003, and ending at midnight the Federal share of compensation for in- tion of the amount of aggregate insured on December 31, 2003, if the Program is ex- sured losses under the Program— losses that— tended in accordance with section 6. (A) in the case of any policy covering an (I) exceeds the participating insurance (8) PARTICIPATING GROUP LIFE INSURANCE insured loss that is issued on or after the company deductibles required to be paid for COMPANY DEDUCTIBLE.—The term ‘‘partici- date of enactment of this Act, in the policy, those insured losses; and pating group life insurance company deduct- at the time of offer, purchase, and renewal of (II) exceeds $10,000,000,000. ible’’ means—– the policy; and (B) EXTENSION PERIOD.—If the Program is (A) a participating group life insurance (B) in the case of any policy that is issued extended in accordance with section 6, the company’s market share, multiplied by before the date of enactment of this Act, not Federal share of compensation under the $2,000,000,000, with respect to insured losses later than 90 days after that date of enact- Program to be paid by the Secretary for in- resulting from an act of terrorism occurring ment; sured losses resulting from an act of ter- during the period beginning on the date of (3) the participating insurance company rorism occurring during the period beginning enactment of this Act and ending at mid- processes the claim for the insured loss in on January 1, 2003, and ending at midnight night on December 31, 2002; and accordance with its standard business prac- on December 31, 2003, shall be calculated in (B) a participating group life insurance tices, and any reasonable procedures that accordance with clauses (i) and (ii) of sub- company’s market share, multiplied by the Secretary may prescribe; and paragraph (A), subject to the cap on liability $3,000,000,000, with respect to insured losses (4) the participating insurance company in paragraph (2) and the limitation under resulting from an act of terrorism occurring submits to the Secretary, in accordance with paragraph (6). during the period beginning on January 1, such reasonable procedures as the Secretary (C) PRO RATA SHARE.—If, during the period 2003, and ending at midnight on December 31, may establish— described in subparagraph (A) (or during the 2003, if the program is extended in accord- (A) a claim for payment of the Federal period described in subparagraph (B), if the ance with section 6. share of compensation for insured losses –Program is extended in accordance with (9) PERSON.—The term ‘‘person’’ means any under the Program; section 6), the aggregate insured losses for individual, business, or nonprofit entity (in- (B) written verification and certification— that period –exceed $10,000,000,000, the Sec- cluding those organized in the form of a (i) of the underlying claim; and retary shall determine the pro rata share for partnership, limited liability company, cor- (ii) of all payments made for insured each participating insurance company of the poration, or association), trust or estate, or losses; and Federal share of compensation for insured a State or political subdivision of a State or (C) certification of its compliance with the losses calculated under subparagraph (A).–– other governmental unit. provisions of this subsection. (2) CAP ON ANNUAL LIABILITY.—Notwith- (10) PROGRAM.—The term ‘‘Program’’ (c) MANDATORY PARTICIPATION; MANDATORY standing paragraph (1), or any other provi- means the Terrorism Insured Loss Shared AVAILABILITY.—Each insurance company sion of Federal or State law, if the aggregate

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5548 CONGRESSIONAL RECORD — SENATE June 13, 2002 insured losses exceed $100,000,000,000 during participating insurance company and any ment, or adjustment of compensation for in- any period referred to in subparagraph (A) or Federal share of compensation for insured sured losses arising out of any act of ter- (B) of paragraph (1)— losses owed to any participating insurance rorism occurring during the period in which (A) the Secretary shall not make any pay- company, to effectuate the insured loss shar- the Program was in effect under this Act, in ment under this Act for any portion of the ing provisions contained in section 4. accordance with the provisions of section 4 amount of such losses that exceeds (c) SUBROGATION RIGHTS.—The United and regulations promulgated thereunder. $100,000,000,000; and States shall have the right of subrogation (e) REPEAL; SAVINGS CLAUSE.—This Act is (B) participating insurance companies with respect to any payment made by the repealed at midnight on the final termi- shall not be liable for the payment of any United States under the Program. nation date of the Program under subsection portion of the amount that exceeds (d) CONTRACTS FOR SERVICES.—The Sec- (a), except that such repeal shall not be con- $100,000,000,000. retary may employ persons or contract for strued— (3) NOTICE TO CONGRESS.—The Secretary services as may be necessary to implement (1) to prevent the Secretary from taking, shall notify the Congress if estimated or ac- the Program. or causing to be taken, such actions under (e) CIVIL PENALTIES.—The Secretary may tual aggregate insured losses exceed subsection (d) of this section and sections assess civil money penalties for violations of $100,000,000,000 in any period described in 4(e)(4), 4(e)(5), 5(a)(1), 5(c), 5(d), and 5(e) (as in this Act or any rule, regulation, or order paragraph (1), and the Congress shall deter- effect on the day before the date of such re- issued by the Secretary under this Act relat- mine the procedures for and the source of peal), and applicable regulations promul- ing to the submission of false or misleading any such excess payments. gated thereunder, during any period in which information for purposes of the Program, or (4) FINAL NETTING.—The Secretary shall the authority of the Secretary under sub- any failure to repay any amount required to have sole discretion to determine the time at section (d) of this section is in effect; or be reimbursed under regulations or proce- which claims relating to any insured loss or (2) to prevent the availability of funding dures described in section 5(b). The authority act of terrorism shall become final. under section 10(b) during any period in granted under this subsection shall continue (5) DETERMINATIONS FINAL.—Any deter- which the authority of the Secretary under during any period in which the Secretary’s mination of the Secretary under this sub- subsection (d) of this section is in effect. section shall be final, and shall not be sub- authority under section 6(d) is in effect. (f) SENSE OF THE CONGRESS.—It is the sense ject to judicial review. SEC. 6. TERMINATION OF PROGRAM; DISCRE- of the Congress that the Secretary should (6) IN-FORCE REINSURANCE AGREEMENTS.— TIONARY EXTENSION. make any determination under subsection For policies covered by reinsurance con- (a) TERMINATION OF PROGRAM.— (a) in sufficient time to enable participating tracts in force on the date of enactment of (1) IN GENERAL.—The Program shall termi- insurance companies to include coverage for this Act, until the in-force reinsurance con- nate at midnight on December 31, 2002, un- acts of terrorism in their policies for 2003. tract is renewed, amended, or has reached its less the Secretary— 1-year anniversary date, any Federal share of (A) determines, after considering the re- (g) STUDY AND REPORT ON SCOPE OF THE compensation due to a participating insur- port and finding required by this section, PROGRAM.— ance company for insured losses during the that the Program should be extended for 1 (1) STUDY.—The Secretary, after consulta- effective period of the Program shall be additional year, until midnight on December tion with the NAIC, representatives of the shared— 31, 2003; and insurance industry, and other experts in the (A) with all reinsurance companies to (B) promptly notifies the Congress of such insurance field, shall conduct a study of the which the participating insurance company determination and the reasons therefor. potential effects of acts of terrorism on the has ceded some share of the insured loss pur- (2) DETERMINATION FINAL.—The determina- availability of individual life insurance and suant to an in-force reinsurance contract; tion of the Secretary under paragraph (1) other lines of insurance coverage. and shall be final, and shall not be subject to ju- (2) REPORT.—Not later than 9 months after (B) in a manner that distributes the Fed- dicial review. the date of enactment of this Act, the Sec- eral share of compensation for insured losses (3) TERMINATION AFTER EXTENSION.—If the retary shall submit a report to the Congress between the participating insurance com- Program is extended under paragraph (1), the on the results of the study conducted under pany and the reinsurance company or com- Program shall terminate at midnight on De- paragraph (1). panies in the same proportion as the insured cember 31, 2003. (h) REPORTS REGARDING TERRORISM RISK losses would have been distributed if the (b) REPORT TO CONGRESS.—Not later than 9 INSURANCE PREMIUMS.— Program did not exist. months after the date of enactment of this (1) REPORT TO THE NAIC.—Beginning 6 SEC. 5. GENERAL AUTHORITY AND ADMINISTRA- Act, the Secretary shall submit a report to months after the date of enactment of this TION OF CLAIMS. Congress— Act, and every 6 months thereafter, each (a) GENERAL AUTHORITY.—The Secretary (1) regarding— participating insurance company shall sub- shall have the powers and authorities nec- (A) the availability of insurance coverage mit a report to the NAIC that states the pre- essary to carry out the Program, including for acts of terrorism; mium rates charged by that participating in- authority— (B) the affordability of such coverage, insurance company during the preceding 6- (1) to investigate and audit all claims cluding the effect of such coverage on pre- month period for insured losses covered by under the Program; and miums; and the Program, and includes an explanation of (2) to prescribe regulations and procedures (C) the capacity of the insurance industry and justification for those rates. to implement the Program. to absorb future losses resulting from acts of (2) REPORTS FORWARDED.—The NAIC shall (b) INTERIM RULES AND PROCEDURES.—The terrorism, taking into account the profit- promptly forward copies of each report sub- Secretary shall issue interim final rules or ability of the insurance industry; and mitted under paragraph (1) to the Secretary, procedures specifying the manner in which— (2) that considers— the Secretary of Commerce, the Chairman of (1) participating insurance companies may (A) the impact of the Program on each of the Federal Trade Commission, and the file, verify, and certify claims under the Pro- the factors described in paragraph (1); and Comptroller General of the United States. gram; (B) the probable impact on such factors (3) AGENCY REPORTS TO CONGRESS.— (2) the Secretary shall publish or otherwise and on the United States economy if the (A) IN GENERAL.—The Secretary, the Sec- publicly announce the applicable percentage Program terminates at midnight on Decem- retary of Commerce, and the Chairman of of insured losses that is the responsibility of ber 31, 2002. the Federal Trade Commission shall submit participating insurance companies and the (c) FINDING REQUIRED.—A determination joint reports to Congress and the Comp- percentage that is the responsibility of the under subsection (a) to extend the Program troller General of the United States summa- Federal Government under the Program; shall be based on a finding by the Secretary rizing and evaluating the reports forwarded (3) the Federal share of compensation for that— under paragraph (2). insured losses will be paid under the Pro- (1) widespread market uncertainties con- (B) TIMING.—The reports required under gram, including payments based on esti- tinue to disrupt the ability of insurance subparagraph (A) shall be submitted— mates of or actual aggregate insured losses; companies to price insurance coverage for (i) 9 months after the date of enactment of (4) the Secretary may, at any time, seek losses resulting from acts of terrorism, this Act; and repayment from or reimburse any partici- thereby resulting in the continuing unavail- (ii) 12 months after the date of submission pating insurance company, based on esti- ability of affordable insurance for con- of the first report under clause (i). mates of insured losses under the Program, sumers; and (4) GAO EVALUATION AND REPORT.— to effectuate the insured loss sharing provi- (2) extending the Program for an addi- (A) EVALUATION.—The Comptroller General sions contained in section 4; tional year would likely encourage economic of the United States shall evaluate each re- (5) each participating insurance company stabilization and facilitate a transition to a port submitted under paragraph (3), and that incurs insured losses shall pay its pro viable market for private terrorism risk in- upon request, the Secretary, the Secretary of rata share of insured losses, in accordance surance. Commerce, the Chairman of the Federal with section 4; and (d) CONTINUING AUTHORITY TO PAY OR AD- Trade Commission, and the NAIC shall pro- (6) the Secretary will determine any final JUST COMPENSATION.—Following the termi- vide to the Comptroller all documents, netting of payments for actual insured losses nation of the Program under subsection (a), records, and any other information that the under the Program, including payments the Secretary may take such actions as may Comptroller deems necessary to carry out owed to the Federal Government from any be necessary to ensure payment, reimburse- such evaluation.

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(B) REPORT TO CONGRESS.—Not later than State law, are hereby preempted, except as (B) the proceeds of any sale or transfer for 90 days after receipt of each report sub- provided in subsection (d). value to a third party of any asset subject to mitted under paragraph (3), the Comptroller (b) GOVERNING LAW.—The substantive law the Vienna Convention on Diplomatic Rela- General of the United States shall submit to for decision in an action described in sub- tions or the Vienna Convention on Consular Congress a report of the evaluation required section (a)(1) shall be derived from the law, Relations. by subparagraph (A). including applicable choice of law principles, (c) SPECIAL RULE FOR CASES AGAINST SEC. 7. PRESERVATION OF STATE LAW. of the State in which the act of terrorism IRAN.—Section 2002 of the Victims of Traf- Nothing in this Act shall affect the juris- giving rise to the action occurred, except to ficking and Violence Protection Act of 2000 diction or regulatory authority of the insur- the extent that— (Public Law 106–386; 114 Stat. 1542) is amend- ance commissioner (or any agency or office (1) the law, including choice of law prin- ed— performing like functions) of any State over ciples, of another State is determined to be (1) in subsection (a)(2)(A)(ii), by inserting any participating insurance company or applicable to the action by the district court after ‘‘July 27, 2000’’ the following: ‘‘or before other person— hearing the action; or October 28, 2000,’’; (1) except as specifically provided in this (2) otherwise applicable State law (includ- (2) in subsection (b)(2)(B), by inserting after ‘‘the date of enactment of this Act’’ the Act; and ing that determined pursuant to paragraph following: ‘‘(less amounts therein as to (2) except that— (1)), is in consistent with or otherwise pre- which the United States has an interest in (A) the definition of the term ‘‘act of ter- empted by Federal law. (c) PUNITIVE DAMAGES.—Any amounts subrogation pursuant to subsection (c) aris- rorism’’ in section 3 shall be the exclusive awarded in a civil action described in sub- ing prior to the date of entry of the judg- definition of that term for purposes of com- section (a)(1) that are attributable to puni- ment or judgments to be satisfied in whole pensation for insured losses under this Act, tive damages shall not count as insured or in part hereunder).’’; and shall preempt any provision of State law losses for purposes of this Act. (3) by redesignating subsections (d), (e), that is inconsistent with that definition, to (d) CLAIMS AGAINST TERRORISTS.—Nothing and (f) as subsections (e), (f), and (g), respec- the extent that such provision of law would in this section shall in any way be construed tively; and otherwise apply to any type of insurance to limit the ability of any plaintiff to seek (4) by inserting after subsection (c) the fol- covered by this Act; any form of recovery from any person, gov- lowing new subsection (d): (B) during the period beginning on the date ernment, or other entity that was a partici- ‘‘(d) DISTRIBUTION OF FOREIGN MILITARY of enactment of this Act and ending at mid- pant in, or aider and abettor of, any act of SALES FUNDS INADEQUATE TO SATISFY FULL night on December 31, 2002, rates for ter- terrorism. AMOUNT OF COMPENSATORY AWARDS AGAINST rorism risk insurance covered by this Act (e) EFFECTIVE PERIOD.—This section shall IRAN.— and filed with any State shall not be subject apply only to actions described in subsection ‘‘(1)(A) In the event that the Secretary de- to prior approval or a waiting period, under (a)(1) arising out of or resulting from acts of termines that the amounts available to be any law of a State that would otherwise be terrorism that occur during the effective pe- paid under subsection (b)(2) are inadequate applicable, except that nothing in this Act riod of the Program, including, if applicable, to pay the entire amount of compensatory affects the ability of any State to invalidate any extension period provided for under sec- damages awarded in judgments issued as of a rate as excessive, inadequate, or unfairly tion 6. the date of the enactment of this subsection discriminatory; and in cases identified in subsection (a)(2)(A), the (C) during the period beginning on the date SA 3838. Mr. ALLEN (for himself, Mr. Secretary shall, not later than 60 days after of enactment of this Act and for so long as BURNS, Mr. WARNER, Mr. SMITH of New such date, make payment from the account the Program is in effect, as provided in sec- Hampshire, Mrs. HUTCHISON, and Mr. specified in subsection (b)(2) to each party to tion 6 (including any period during which the HARKIN) submitted an amendment in- which such judgment has been issued a share authority of the Secretary under section 6(d) tended to be proposed by him to the of the amounts in that account which are is in effect), books and records of any par- bill S. 2600, to ensure the continued fi- not subject to subrogation to the United ticipating insurance company that are rel- nancial capacity of insurers to provide States under this Act. evant to the Program shall be provided, or coverage for risks from terrorism; as ‘‘(B) The amount so paid to each such per- caused to be provided, to the Secretary or follows: son shall be calculated by the proportion the designee of the Secretary, upon request that the amount of compensatory damages At the appropriate place, insert the fol- by the Secretary or such designee, notwith- awarded in a judgment issued to that par- lowing: standing any provision of the laws of any ticular person bears to the total amount of State prohibiting or limiting such access. SEC. ll. SATISFACTION OF JUDGMENTS FROM all compensatory damages awarded to all FROZEN ASSETS OF TERRORISTS, SEC. 8. SENSE OF THE CONGRESS REGARDING TERRORIST ORGANIZATIONS, AND persons to whom judgments have been issued CAPACITY BUILDING. STATE SPONSORS OF TERRORISM. in cases identified in subsection (a)(2)(A) as It is the sense of the Congress that the in- (a) IN GENERAL.—Notwithstanding any of the date referred to in subparagraph (A). surance industry should build capacity and other provision of law, and except as pro- ‘‘(2) Nothing herein shall bar, or require aggregate risk to provide affordable property vided in subsection (b), in every case in delay in, enforcement of any judgment to and casualty insurance coverage and group which a person has obtained a judgment which this subsection applies under any pro- life insurance coverage, including accidental against a terrorist party on a claim based cedure or against assets otherwise available death coverage, for terrorism risk. upon an act of terrorism or for which a ter- under this section or under any other provi- SEC. 9. AUTHORIZATION OF APPROPRIATIONS; rorist party is not immune under section sion of law. PAYMENT AUTHORITY. 1605(a)(7) of title 28, United States Code, the ‘‘(3) Any person receiving less than the full (a) ADMINISTRATIVE EXPENSES.—There are blocked assets of that terrorist party (in- amount of compensatory damages awarded authorized to be appropriated to the Sec- cluding the blocked assets of any agency or to that party in judgments to which this sub- retary, out of funds in the Treasury not oth- instrumentality of that terrorist party) shall section applies shall not be required to make erwise appropriated, such sums as may be be subject to execution or attachment in aid the election set forth in subsection (a)(2)(C) necessary for administrative expenses of the of execution in order to satisfy such judg- in order to qualify for payment hereunder.’’. Program, to remain available until ex- ment to the extent of any compensatory (d) DEFINITIONS.—In this section: pended. damages for which such terrorist party has (1) The term ‘‘terrorist party’’ means a ter- (b) PAYMENT AUTHORITY.—This Act con- been adjudged liable. rorist, a terrorist organization, or a foreign stitutes payment authority in advance of ap- (b) PRESIDENTIAL WAIVER.— state designated as a state sponsor of ter- propriation Acts, and represents the obliga- (1) IN GENERAL.—Subject to paragraph (2), rorism under section 6(j) of the Export Ad- tion of the Federal Government to provide upon determining on an asset-by-asset basis ministration Act of 1979 (50 U.S.C. App. for the Federal share of compensation for in- that a waiver is necessary in the national se- 2405(j)) or section 620A of the Foreign Assist- sured losses under the Program. curity interest, the President may waive the ance Act of 1961 (22 U.S.C. 2371). SEC. 10. PROCEDURES FOR CIVIL ACTIONS. requirements of subsection (a) in connection (2) The term ‘‘blocked asset’’ means any (a) FEDERAL CAUSE OF ACTION.— with (and prior to the enforcement of) any asset seized or frozen by the United States in (1) IN GENERAL.—There shall exist a Fed- judicial order directing attachment in aid of accordance with law, or otherwise held by eral cause of action for property damage, execution or execution against any property the United States without claim of owner- personal injury, or death arising out of or re- subject to the Vienna Convention on Diplo- ship by the United States. sulting from an act of terrorism, which shall matic Relations or the Vienna Convention (3) The term ‘‘property subject to the Vi- be the exclusive cause of action and remedy on Consular Relations. enna Convention on Diplomatic Relations or for claims for such property damage, per- (2) EXCEPTION.—A waiver under this sub- the Vienna Convention on Consular Rela- sonal injury, or death, except as provided in section shall not apply to— tions’’ and the term ‘‘asset subject to the Vi- subsection (d). (A) property subject to the Vienna Conven- enna Convention on Diplomatic Relations or (2) PREEMPTION OF STATE ACTIONS.—All tion on Diplomatic Relations or the Vienna the Vienna Convention on Consular Rela- State causes of action of any kind for prop- Convention on Consular Relations that has tions’’ mean any property or asset, respec- erty damage, personal injury, or death aris- been used by the United States for any non- tively, the attachment in aid of execution or ing out of or resulting from an act of ter- diplomatic purpose (including use as rental execution of which would result in a viola- rorism that are otherwise available under property), or the proceeds of such use; or tion of an obligation of the United States

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5550 CONGRESSIONAL RECORD — SENATE June 13, 2002 under the Vienna Convention on Diplomatic ‘‘(F) the offense is committed on board a ‘‘(10) ‘military forces of a state’ means the Relations or the Vienna Convention on Con- vessel flying the flag of the United States or armed forces of a state which are organized, sular Relations, as the case may be. an aircraft which is registered under the trained, and equipped under its internal law laws of the United States at the time the of- for the primary purpose of national defense SA 3839. Mr. HATCH proposed an fense is committed; or or security, and persons acting in support of amendment to the bill S. 2600, to en- ‘‘(G) the offense is committed on board an those armed forces who are under their for- sure the continued financial capacity aircraft which is operated by the United mal command, control, and responsibility; of insurers to provide coverage for States. ‘‘(11) ‘armed conflict’ does not include in- risks from terrorism; as follows: ‘‘(c) PENALTIES.—Whoever violates this ternal disturbances and tensions, such as section shall be imprisoned for any term of riots, isolated and sporadic acts of violence, At the end, add the following: years or for life, and if death results from and other acts of a similar nature; and TITLE II—ANTITERRORISM PROVISIONS the violation, shall be punished by death or ‘‘(12) ‘state’ has the same meaning as that Subtitle A—Suppression of Terrorist imprisoned for any term of years or for life. term has under international law, and in- Bombings ‘‘(d) EXEMPTIONS TO JURISDICTION.—This cludes all political subdivisions thereof.’’. section does not apply to— SEC. 201. SHORT TITLE. (b) CLERICAL AMENDMENT.—The table of This subtitle may be cited as the ‘‘Ter- ‘‘(1) the activities of armed forces during sections at the beginning of chapter 113B of rorist Bombings Convention Implementation an armed conflict, as those terms are under- title 18, United States Code, is amended by Act of 2002’’. stood under the law of war, which are gov- adding after the item relating to section erned by that law, SEC. 202. BOMBING STATUTE. 2332e the following: ‘‘(2) activities undertaken by military (a) OFFENSE.—Chapter 113B of title 18, forces of a state in the exercise of their offi- ‘‘2332f. Bombings of places of public use, gov- United States Code, relating to terrorism, is cial duties; or ernment facilities, public trans- amended by inserting after section 2332e the ‘‘(3) offenses committed within the United portation systems and infra- following: States, where the alleged offender and the structure facilities.’’. ‘‘§ 2332f. Bombings of places of public use, victims are United States citizens and the (c) DISCLAIMER.—Nothing contained in this government facilities, public transportation alleged offender is found in the United section is intended to affect the applicability systems and infrastructure facilities States, or where jurisdiction is predicated of any other Federal or State law which ‘‘(a) OFFENSES.— solely on the nationality of the victims or might pertain to the underlying conduct. ‘‘(1) IN GENERAL.—Whoever unlawfully de- the alleged offender and the offense has no SEC. 203. EFFECTIVE DATE. livers, places, discharges, or detonates an ex- substantial effect on interstate or foreign Section 202 shall become effective on the plosive or other lethal device in, into, or commerce. date that the International Convention for against a place of public use, a state or gov- ‘‘(e) DEFINITIONS.—As used in this section, the Suppression of Terrorist Bombings en- ernment facility, a public transportation the term— ters into force for the United States. system, or an infrastructure facility— ‘‘(1) ‘serious bodily injury’ has the meaning Subtitle B—Suppression of the Financing of ‘‘(A) with the intent to cause death or seri- given that term in section 1365(g)(3) of this Terrorism ous bodily injury, or title; SEC. 211. SHORT TITLE. ‘‘(B) with the intent to cause extensive de- ‘‘(2) ‘national of the United States’ has the This subtitle may be cited as the ‘‘Suppres- struction of such a place, facility, or system, meaning given that term in section 101(a)(22) sion of the Financing of Terrorism Conven- where such destruction results in or is likely of the Immigration and Nationality Act (8 tion Implementation Act of 2002’’. to result in major economic loss, U.S.C. 1101(a)(22)); shall be punished as prescribed in subsection ‘‘(3) ‘state or government facility’ includes SEC. 212. TERRORISM FINANCING STATUTE. (c). any permanent or temporary facility or con- (a) IN GENERAL.—Chapter 113B of title 18, United States Code, is amended by adding at ‘‘(2) ATTEMPTS AND CONSPIRACIES.—Who- veyance that is used or occupied by rep- ever attempts or conspires to commit an of- resentatives of a state, members of Govern- the end the following: fense under paragraph (1) shall be punished ment, the legislature or the judiciary or by ‘‘§ 2339C. Prohibitions against the financing as prescribed in subsection (c). officials or employees of a state or any other of terrorism ‘‘(b) JURISDICTION.—There is jurisdiction public authority or entity or by employees ‘‘(a) OFFENSES.— over the offenses in subsection (a) if— or officials of an intergovernmental organi- ‘‘(1) IN GENERAL.—Whoever, in a cir- ‘‘(1) the offense takes place in the United zation in connection with their official du- cumstance described in subsection (c), by States and— ties; any means, directly or indirectly, unlawfully ‘‘(A) the offense is committed against an- ‘‘(4) ‘intergovernmental organization’ in- and willfully provides or collects funds with other state or a government facility of such cludes international organization (as defined the intention that such funds be used, or state, including its embassy or other diplo- in section 1116(b)(5) of this title); with the knowledge that such funds are to be matic or consular premises of that state; ‘‘(5) ‘infrastructure facility’ means any used, in full or in part, in order to carry ‘‘(B) the offense is committed in an at- publicly or privately owned facility pro- out— tempt to compel another state or the United viding or distributing services for the benefit ‘‘(A) an act which constitutes an offense States to do or abstain from doing any act; of the public, such as water, sewage, energy, within the scope of a treaty specified in sub- ‘‘(C) at the time the offense is committed, fuel, or communications; section (e)(7), as implemented by the United it is committed— ‘‘(6) ‘place of public use’ means those parts States, or ‘‘(i) on board a vessel flying the flag of an- of any building, land, street, waterway, or ‘‘(B) any other act intended to cause death other state; other location that are accessible or open to or serious bodily injury to a civilian, or to ‘‘(ii) on board an aircraft which is reg- members of the public, whether continu- any other person not taking an active part istered under the laws of another state; or ously, periodically, or occasionally, and en- in the hostilities in a situation of armed con- ‘‘(iii) on board an aircraft which is oper- compasses any commercial, business, cul- flict, when the purpose of such act, by its na- ated by the government of another state; tural, historical, educational, religious, gov- ture or context, is to intimidate a popu- ‘‘(D) a perpetrator is found outside the ernmental, entertainment, recreational, or lation, or to compel a government or an United States; similar place that is so accessible or open to international organization to do or to ab- ‘‘(E) a perpetrator is a national of another the public; stain from doing any act, state or a stateless person; or ‘‘(7) ‘public transportation system’ means shall be punished as prescribed in subsection ‘‘(F) a victim is a national of another state all facilities, conveyances, and instrumental- (d)(1). or a stateless person; ities, whether publicly or privately owned, ‘‘(2) ATTEMPTS AND CONSPIRACIES.—Who- ‘‘(2) the offense takes place outside the that are used in or for publicly available ever attempts or conspires to commit an of- United States and— services for the transportation of persons or fense under paragraph (1) shall be punished ‘‘(A) a perpetrator is a national of the cargo; as prescribed in subsection (d)(1). United States or is a stateless person whose ‘‘(8) ‘explosive’ has the meaning given in ‘‘(3) RELATIONSHIP TO PREDICATE ACT.—For habitual residence is in the United States; section 844(j) of this title insofar that it is an act to constitute an offense set forth in ‘‘(B) a victim is a national of the United designed, or has the capability, to cause this subsection, it shall not be necessary States; death, serious bodily injury, or substantial that the funds were actually used to carry ‘‘(C) a perpetrator is found in the United material damage; out a predicate act. States; ‘‘(9) ‘other lethal device’ means any weap- ‘‘(b) CONCEALMENT.— ‘‘(D) the offense is committed in an at- on or device that is designed or has the capa- ‘‘(1) IN GENERAL.—Whoever, in the United tempt to compel the United States to do or bility to cause death, serious bodily injury, States, or outside the United States and a abstain from doing any act; or substantial damage to property through national of the United States or a legal enti- ‘‘(E) the offense is committed against a the release, dissemination, or impact of ty organized under the laws of the United state or government facility of the United toxic chemicals, biological agents or toxins States (including any of its States, districts, States, including an embassy or other diplo- (as those terms are defined in section 178 of commonwealths, territories, or possessions), matic or consular premises of the United this title), or radiation or radioactive mate- knowingly conceals or disguises the nature, States; rial; the location, the source, or the ownership or

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5551 control of any material support or resources ‘‘(1) the term ‘funds’ means assets of every law, and includes all political subdivisions provided in violation of section 2339B of this kind, whether tangible or intangible, mov- thereof. chapter, or of any funds provided or collected able or immovable, however acquired, and ‘‘(f) CIVIL PENALTY.—In addition to any in violation of subsection (a) or any proceeds legal documents or instruments in any form, other criminal, civil, or administrative li- of such funds, shall be punished as prescribed including electronic or digital, evidencing ability or penalty, any legal entity located in subsection (d)(2). title to, or interest in, such assets, including within the United States or organized under ‘‘(2) ATTEMPTS AND CONSPIRACIES.—Who- coin, currency, bank credits, travelers the laws of the United States, including any ever attempts or conspires to commit an of- checks, bank checks, money orders, shares, of the laws of its States, districts, common- fense under paragraph (1) shall be punished securities, bonds, drafts, and letters of cred- wealths, territories, or possessions, shall be as prescribed in subsection (d)(2). it; liable to the United States for the sum of at ‘‘(c) JURISDICTION.—There is jurisdiction ‘‘(2) the term ‘government facility’ means least $10,000, if a person responsible for the over the offenses in subsection (a) in the fol- any permanent or temporary facility or con- management or control of that legal entity lowing circumstances— veyance that is used or occupied by rep- has, in that capacity, committed an offense ‘‘(1) the offense takes place in the United resentatives of a state, members of a govern- set forth in subsection (a).’’. States and— ment, the legislature, or the judiciary, or by (b) CLERICAL AMENDMENT.—The table of ‘‘(A) a perpetrator was a national of an- officials or employees of a state or any other sections at the beginning of chapter 113B of other state or a stateless person; public authority or entity or by employees title 18, United States Code, is amended by ‘‘(B) on board a vessel flying the flag of an- or officials of an intergovernmental organi- adding at the end the following: other state or an aircraft which is registered zation in connection with their official du- ‘‘2339C. Prohibitions against the financing of under the laws of another state at the time ties; terrorism.’’. ‘‘(3) the term ‘proceeds’ means any funds the offense is committed; (c) DISCLAIMER.—Nothing contained in this ‘‘(C) on board an aircraft which is operated derived from or obtained, directly or indirectly, through the commission of an offense section is intended to affect the scope or ap- by the government of another state; plicability of any other Federal or State law. ‘‘(D) a perpetrator is found outside the set forth in subsection (a); SEC. 213. EFFECTIVE DATE. United States; ‘‘(4) the term ‘provides’ includes giving, do- Except for sections 2339C(c)(1)(D) and (2)(B) ‘‘(E) was directed toward or resulted in the nating, and transmitting; of title 18, United States Code, which shall carrying out of a predicate act against— ‘‘(5) the term ‘collects’ includes raising and become effective on the date that the Inter- ‘‘(i) a national of another state; or receiving; national Convention for the Suppression of ‘‘(ii) another state or a government facility ‘‘(6) the term ‘predicate act’ means any act referred to in subparagraph (A) or (B) of sub- the Financing of Terrorism enters into force of such state, including its embassy or other section (a)(1); for the United States, and for the provisions diplomatic or consular premises of that ‘‘(7) the term ‘treaty’ means— of section 2339C(e)(7)(I) of title 18, United state; ‘‘(A) the Convention for the Suppression of States Code, which shall become effective on ‘‘(F) was directed toward or resulted in the Unlawful Seizure of Aircraft, done at The the date that the International Convention carrying out of a predicate act committed in Hague on December 16, 1970; for the Suppression of Terrorist Bombing en- an attempt to compel another state or inter- ‘‘(B) the Convention for the Suppression of ters into force for the United States, section national organization to do or abstain from Unlawful Acts against the Safety of Civil 212 of this subtitle shall take effect upon the doing any act; or Aviation, done at Montreal on September 23, date of enactment of this Act. ‘‘(G) was directed toward or resulted in the 1971; Subtitle C—Ancillary Measures carrying out of a predicate act— ‘‘(C) the Convention on the Prevention and ‘‘(i) outside the United States; or Punishment of Crimes against Internation- SEC. 221. ANCILLARY MEASURES. ‘‘(ii) within the United States, and either ally Protected Persons, including Diplomatic (a) WIRETAP PREDICATES.—Section the offense or the predicate act was con- Agents, adopted by the General Assembly of 2516(1)(q) of title 18, United States Code, is ducted in, or the results thereof affected, the United Nations on December 14, 1973; amended by— interstate or foreign commerce; ‘‘(D) the International Convention against (1) inserting ‘‘2332f,’’ after ‘‘2332d,’’; and ‘‘(2) the offense takes place outside the the Taking of Hostages, adopted by the Gen- (2) striking ‘‘or 2339B’’ and inserting United States and— eral Assembly of the United Nations on De- ‘‘2339B, or 2339C’’. ‘‘(A) a perpetrator is a national of the cember 17, 1979; (b) FEDERAL CRIME OF TERRORISM.—Section United States or is a stateless person whose ‘‘(E) the Convention on the Physical Pro- 2332b(g)(5)(B) of title 18, United States Code, habitual residence is in the United States; tection of Nuclear Material, adopted at Vi- is amended by— ‘‘(B) a perpetrator is found in the United enna on March 3, 1980; (1) inserting ‘‘2332f (relating to bombing of States; or ‘‘(F) the Protocol for the Suppression of public places and facilities),’’ after ‘‘2332b ‘‘(C) was directed toward or resulted in the Unlawful Acts of Violence at Airports Serv- (relating to acts of terrorism transcending carrying out of a predicate act against— ing International Civil Aviation, supple- national boundaries),’’; and ‘‘(i) any property that is owned, leased, or mentary to the Convention for the Suppres- (2) inserting ‘‘2339C (relating to financing used by the United States or by any depart- sion of Unlawful Acts against the Safety of of terrorism),’’ before ‘‘or 2340A (relating to ment or agency of the United States, includ- Civil Aviation, done at Montreal on Feb- torture)’’. ing an embassy or other diplomatic or con- ruary 24, 1988; (c) PROVIDING MATERIAL SUPPORT TO TER- sular premises of the United States; ‘‘(G) the Convention for the Suppression of RORISTS PREDICATE.—Section 2339A of title ‘‘(ii) any person or property within the Unlawful Acts against the Safety of Mari- 18, United States Code, is amended by insert- United States; time Navigation, done at Rome on March 10, ing ‘‘2332f,’’ before ‘‘or 2340A’’. ‘‘(iii) any national of the United States or 1988; (d) FORFEITURE OF FUNDS, PROCEEDS, AND the property of such national; or ‘‘(H) the Protocol for the Suppression of INSTRUMENTALITIES.—Section 981(a)(1) of ‘‘(iv) any property of any legal entity orga- Unlawful Acts against the Safety of Fixed title 18, United States Code, is amended by nized under the laws of the United States, in- Platforms located on the Continental Shelf, adding at the end the following: cluding any of its States, districts, common- done at Rome on March 10, 1988; or ‘‘(H) Any property, real or personal, in- wealths, territories, or possessions; ‘‘(I) the International Convention for the volved in a violation or attempted violation, ‘‘(3) the offense is committed on board a Suppression of Terrorist Bombings, adopted or which constitutes or is derived from pro- vessel flying the flag of the United States or by the General Assembly of the United Na- ceeds traceable to a violation, of section an aircraft which is registered under the tions on December 15, 1997; 2339C of this title.’’. laws of the United States at the time the of- ‘‘(8) the term ‘intergovernmental organiza- fense is committed; tion’ includes international organizations; SA 3840 Mr. NELSON of Florida sub- ‘‘(4) the offense is committed on board an ‘‘(9) the term ‘international organization’ mitted an amendment intended to be aircraft which is operated by the United has the same meaning as in section 1116(b)(5) proposed by him to the bill S. 2600, to States; or of this title; ensure the continued financial capac- ‘‘(5) the offense was directed toward or re- ‘‘(10) the term ‘armed conflict’ does not in- ity of insurers to provide coverage for sulted in the carrying out of a predicate act clude internal disturbances and tensions, risks from terrorism; which was or- committed in an attempt to compel the such as riots, isolated and sporadic acts of United States to do or abstain from doing violence, and other acts of a similar nature; dered to lie on the table; as follows: any act. ‘‘(11) the term ‘serious bodily injury’ has At the appropriate place, insert the fol- ‘‘(d) PENALTIES.— the same meaning as in section 1365(g)(3) of lowing: ‘‘(1) Whoever violates subsection (a) shall this title; SEC. . SEPARATE ACCOUNT REQUIRED. be fined under this title, imprisoned for not ‘‘(12) the term ‘national of the United If a participating insurance company in- more than 20 years, or both. States’ has the meaning given that term in creases annual premium rates on covered ‘‘(2) Whoever violates subsection (b) shall section 101(a)(22) of the Immigration and Na- risks, the company— be fined under this title, imprisoned for not tionality Act (8 U.S.C. 1101(a)(22)); and (1) shall deposit the amount of the increase more than 10 years, or both. ‘‘(13) the term ‘state’ has the same mean- in premium in a separate, segregated ac- ‘‘(e) DEFINITIONS.—As used in this section— ing as that term has under international count;

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(2) shall identify the portion of the pre- (4) A representative of a recognized na- (1) IN GENERAL.—For the year beginning mium insuring against terrorism risk on a tional credit rating agency, appointed by the January 1, 2002, and each subsequent year of separate line item on the policy; and Secretary. operation, participating insurers shall pay (3) may not disburse any funds from (5) A representative of the banking or real into the Fund an annual reinsurance con- amounts in that separate, segregated ac- estate industry, appointed by the Secretary. tract premium of not less than 3 percent of count for any purpose other than the pay- (6) 2 representatives of the National Asso- their respective gross direct written pre- ment of losses from acts of terrorism. ciation of Insurance Commissioners, des- miums for covered lines for the calendar ignated by that organization. year. The annual premium shall be paid in SA 3841. Mr. HOLLINGS submitted (7) A representative of the Department of installments at the end of each calendar an amendment intended to be proposed the Treasury, designated by the Secretary of quarter. The reinsurance contract premium by him to the bill S. 2600, to ensure the the Treasury. and any annual assessment may be recovered continued financial capacity of insur- (c) NATIONAL TERRORISM REINSURANCE by a participating insurer from its covered FUND.— ers to provide coverage for risks from lines policyholders as a direct surcharge cal- (1) ESTABLISHMENT.—To carry out the rein- culated as a uniform percentage of premium. terrorism; which was ordered to lie on surance program, the Secretary shall estab- the table; as follows: (2) ADDITIONAL CREDIT RISK PREMIUM.—If lish a National Terrorism Reinsurance Fund the Secretary determines that a partici- Strike out all after the enacting clause and which shall be available, without fiscal year pating insurer has a credit rating that is insert the following: limitations— lower than the second from highest credit (A) to make such payments as may, from SECTION 1. SHORT TITLE; TABLE OF CONTENTS rating awarded by nationally recognized time to time, be required under reinsurance (a) SHORT TITLE.—This Act may be cited as credit rating agencies, the Secretary may contracts under this Act; the ‘‘National Terrorism Reinsurance Fund charge an additional credit risk premium, of (B) to pay such administrative expenses as Act’’. up to 0.5 percent of gross direct written pre- may be necessary or appropriate to carry out (b) TABLE OF CONTENTS.—The table of con- miums for covered lines received by that in- the purposes of this Act, but such expenses tents for this Act is as follows: surer, to compensate the Fund for credit risk may not exceed $5,000,000 for each of fiscal Sec. 1. Short title; table of contents. associated with providing reinsurance to Sec. 2. Findings. years 2002, 2003, and 2004; and (C) to repay to the Secretary of the Treas- that insurer. Sec. 3. Purpose. (b) INITIAL CAPITAL.— Sec. 4. National terrorism reinsurance pro- ury such sums, including interest thereon, as may be borrowed from the Treasury for pur- (1) LOAN.—The Fund shall have an initial gram. capital of $2,000,000,000, which the Secretary Sec. 5. Fund operations. poses of this Act. Sec. 6. Coverage provided. (2) CREDITS TO FUND.—The Fund shall be shall borrow from the Treasury of the United Sec. 7. Secretary to determine if loss is at- credited with— States. Upon application by the Secretary, tributable to terrorism. (A) reinsurance premiums, fees, and other the Secretary of the Treasury shall transfer Sec. 8. Mandatory coverage by property and charges which may be paid or collected in that amount to the Fund, out of amounts in casualty insurers for acts of connection with reinsurance provided under the Treasury not otherwise appropriated, at terrorism. this Act; standard market rates. Sec. 9. Pass-throughs and other rate in- (B) interest which may be earned on in- (2) REPAYMENT OF START-UP LOAN.—The creases. vestments of the Fund; Secretary shall use premiums received from Sec. 10. Credit for reinsurance. (C) receipts from any other source which assessments in calendar year 2002 to repay Sec. 11. Administrative provisions. may, from time to time, be credited to the the loan provided to the Fund under para- Sec. 12. Inapplicability of certain laws. Fund; and graph (1). Sec. 13. Sunset provision. (D) Funds borrowed by the Secretary from (c) SHORTFALL LOANS.— Sec. 14. Definitions. the Treasury. (1) IN GENERAL.—If the Secretary deter- SEC. 2. FINDINGS. (3) INVESTMENT IN OBLIGATIONS ISSUED OR mines that the balance in the accounts of The Congress finds the following: GUARANTEED BY UNITED STATES.—If the Sec- the Fund is insufficient to cover anticipated (1) The terrorist attacks on the World retary determines that the moneys of the claims, administrative expenses, and main- Trade Center and Pentagon on September 11, Fund are in excess of current needs, he may tain adequate reserves for any other reason, 2001, have inflicted possibly the largest loss request the investment of such amounts as after taking into account premiums assessed ever incurred by insurers and reinsurers. he deems advisable by the Secretary of the under subsection (a) and any other amounts (2) The magnitude of the loss, and its im- Treasury in obligations issued or guaranteed receivable, the Secretary shall borrow from pact on the current capacity of the reinsur- by the United States. the Treasury an amount sufficient to satisfy ance market, threaten the ability of the (4) LOANS TO FUND.—The Secretary of the the obligations of the Fund and to maintain property and casualty insurance market to Treasury shall grant loans to the Fund in a positive balance of $2,000,000,000 in the ac- provide coverage to building owners, busi- the manner and to the extent provided in counts of the Fund. Upon application by the nesses, and American citizens. this Act. Secretary, the Secretary of the Treasury (3) It is necessary to create a temporary re- (d) UNDERWRITING STANDARDS.—In order to shall transfer to the Fund, out of amounts in insurance mechanism to augment the capac- carry out the responsibilities of the Sec- the Treasury not otherwise appropriated, the ity of private insurers to provide insurance retary under this Act and protect the Fund, requested amount as an interest-bearing for terrorism related risks. the Secretary shall establish minimum un- loan. SEC. 3. PURPOSE. derwriting standards for participating insur- (2) INTEREST RATE.—The rate of interest on The purpose of this Act is to facilitate the ers. any loan made to the Fund under paragraph coverage by property and casualty insurers (e) MONITORING OF TERRORISM INSURANCE (1) shall be established by the Secretary of of the peril for losses due to acts of terrorism RATES.— the Treasury and based on the weighted av- by providing additional reinsurance capacity (1) SECRETARY TO ESTABLISH SPECIAL COM- erage credit rating of the Fund before the for loss or damage due to acts of terrorism MITTEE ON RATES.—The Secretary shall es- loss that made the loan necessary. occurring within the United States, its terri- tablish a special committee on rates, the size (3) $50 BILLION LOAN LIMIT.—Notwith- tories, and possessions. and membership of which shall be deter- standing any other provision of this Act, the SEC. 4. NATIONAL TERRORISM REINSURANCE mined by the Secretary, except that the total amount of loans outstanding at any PROGRAM. committee shall, at a minimum, include— time from the Treasury to the Fund may not (a) IN GENERAL.—The Secretary of Com- (A) representatives of providers of insur- exceed the amount by which $50,000,000,000 merce shall establish and administer a pro- ance for losses due to acts of terrorism; exceeds the Fund’s assets. gram to provide reinsurance to participating (B) representatives of purchases of such in- (4) REPAYMENT OF LOANS BY ASSESSMENT.— insurers for losses due to acts of terrorism. surance; Any loan under paragraph (1) shall be repaid (b) ADVISORY COMMITTEE; MEMBERSHIP.— (C) at least 2 representatives of NAIC; and from reserves of the Fund, assessments of There is established an advisory committee (D) at least 2 independent insurance actu- participating insurers, or a combination to provide advice and counsel to the Sec- aries. thereof. If an assessment is necessary, the retary in carrying out the program of rein- (2) DUTIES.—The special committee on maximum annual assessment under this sub- surance established by the Secretary. The rates shall meet at the call of the Secretary section shall be not more than 3 percent of advisory committee shall consist of 10 mem- and shall— the direct written premium for covered lines. bers, as follows: (A) review reports filed with the Secretary (1) 3 representatives of the property and by State insurance regulatory authorities; The reinsurance contract premium and any casualty insurance industry, appointed by (B) collect data on rate disclosure prac- annual assessment may be recovered by a the Secretary. tices of participating insurers for insurance participating insurer from its covered lines (2) A representative of property and cas- for covered lines and for losses due to acts of policyholders as a direct surcharge cal- ualty insurance agents, appointed by the terrorism; and culated as a uniform percentage of premium. Secretary. (C) provide such advice and counsel to the SEC. 6. COVERAGE PROVIDED. (3) A representative of consumers of prop- Secretary as the Secretary may require. (a) IN GENERAL.—The Fund shall provide erty casualty insurance, appointed by the SEC. 5. FUND OPERATIONS. reinsurance for losses resulting from acts of Secretary. (a) FUNDING BY PREMIUM.— terrorism covered by reinsurance contracts

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5553 entered into between the Fund and partici- ment from the Fund, the Secretary shall SEC. 10. CREDIT FOR REINSURANCE. pating insurers that write covered lines of make an initial determination as to whether Each State shall afford an insurer obtain- insurance within the meaning of section the losses or expected losses were caused by ing reinsurance from the Fund credit for 14(5)(A) or that have elected, under section an act of terrorism. such reinsurance on the same basis and to 14(5)(C), to voluntarily include another line (b) NOTICE AND HEARING.—The Secretary the same extent that credit for reinsurance of insurance. shall give public notice of the initial deter- would be available to that insurer under ap- (b) RETENTION.—The Fund shall reimburse mination and afford all interested parties an plicable State law when reinsurance is ob- participating insurers for losses resulting opportunity to be heard on the question of tained from an assuming insurer licensed or from acts of terrorism on direct losses in any whether the losses or expected losses were accredited in that State. calendar year in excess of 10 percent of a par- caused by an act of terrorism. SEC. 11. ADMINISTRATIVE PROVISIONS; REPORTS ticipating insurer’s average gross direct (c) FINAL DETERMINATION.—Within 30 days AND ANALYSIS. written premiums and policyholders’ surplus after the Secretary’s initial determination, (a) IN GENERAL.—In carrying out this Act, for covered lines for the most recently ended the Secretary shall make a final determina- the Secretary may— calendar year for which data are available, tion as to whether the losses or expected (1) issue such rules and regulations as may based on each participating insurer’s annual losses were caused by an act of terrorism. be necessary to administer this Act; statement for that calendar year as reported (d) STANDARD OF REVIEW.—The Secretary’s (2) enter into reinsurance contracts, adjust to NAIC. determination shall be upheld upon judicial and pay claims as provided in this Act, and (c) REIMBURSEMENT AMOUNT.—If a partici- review if based upon substantial evidence. carry out the activities necessary to imple- pating insurer demonstrates to the satisfac- SEC. 8. MANDATORY COVERAGE BY PROPERTY ment this Act; tion of the Secretary that it is has paid AND CASUALTY INSURERS FOR ACTS (3) set forth the coverage provided by the claims for losses resulting from acts of ter- OF TERRORISM. Fund to accomplish the purposes of this Act; rorism equal to or in excess of the amount of (a) IN GENERAL.—An insurer that provides (4) provide for an audit of the books and retention required by subsection (b), then lines of coverage described in section 14(5)(A) records of the Fund by the General Account- the Fund shall reimburse the participating or 14(5)(B) may not— insurer for— ing Office; (1) exclude or limit coverage in those lines (5) take appropriate action to collect pre- (1) 90 percent of its covered losses in cal- for losses from acts of terrorism in the endar year 2002; and miums or assessments under this Act; and United States, its territories, and posses- (6) audit the reports, claims, books, and (2) a percentage of its covered losses in cal- sions in property and casualty insurance pol- endar years beginning after calendar year records of participating insurers. icy forms; or (b) REPORTS FROM INSURERS.— 2002 equal to— (2) deny or cancel coverage solely due to (A) 90 percent if the insurer pays an assess- Participaitng insurers shall submit reports the risk of losses from acts of terrorism in ment equal to 4 percent of the insurer’s aver- on a quarterly or other basis (as required by the United States. age gross direct written premiums and pol- the Secretary) to the Secretary, the Federal (b) TERMS AND CONDITIONS.—Insurance icy-holders’ surplus for the most recently Trade Commission, and the General Ac- against losses from acts of terrorism in the ended calendar year; counting Office setting forth rates, pre- (B) 80 percent if the insurer pays as assess- United States shall be covered with the same miums, risk analysis, coverage, reserves, ment equal to 3 percent of the insurer’s aver- deductibles, limits, terms, and conditions as claims made for reimbursement from the age gross direct written premiums and pol- the standard provisions of the policy for non- Fund, and such additional financial and ac- icyholders’ surplus for the most recently cal- catastrophic perils. tuarial information as the Secretary may re- endar year; and SEC. 9. PASS-THROUGHS AND OTHER RATE IN- quire regarding lines of coverage described in (C) 70 percent if the insurer pays an assess- CREASES. section 14(5)(A) or 14(5)(B). ment equal to 2 percent of the insurer’s aver- (a) LIMITATION ON RATE INCREASES FOR (c) FTC ANALYSIS AND ENFORCEMENT.—The age gross direct written premiums and pol- COVERED RISKS.—Except as provided in sub- Federal Trade Commission shall review the icyholders’ surplus for the most recently section (b), a participating insurer that pro- reports submitted under subsection (b), ended calendar year. vides lines of coverage described in section treating the information contained in the re- (d) $50,000,000,000 LIMIT.—Except as pro- 14(5)(A) or 14(5)(B) may not increase annual ports as privileged and confidential, for the vided in subsection (e), the Fund may not re- rates on covered risks during any period in purpose of determining whether any insurer imburse participating insurers for covered which the insurer participates in the Fund is engaged in unfair methods of competition losses in excess of a total Fund reimburse- by a percent in excess of the sum of— or unfair or deceptive acts or practices in or ment amount for all participating insurers of (1) the percent used to determine the insur- affecting commerce (within the meaning of $50,000,000,000. er’s assessment under section 5(a)(1); and section 5 of the Federal Trade Commission (e) LOSSES EXCEEDING $50,000,000,000 (2) if there is an assessment against the in- Act (15 U.S.C. 45)). LIMIT.—If the Secretary determines that re- surer under section 5(c)(4), a percent equiva- (d) GAO REVIEW.—The Comptroller General imbursable losses in a calendar year from an lent to the percent assessment of the insur- shall provide for review and analysis of the event exceed $50,000,000,000, the Secretary— er’s gross direct written premium for covered (1) shall pay, out of amounts in the Treas- reports submitted under subsection (b), and, lines. if necessary, provide of audit of reimburse- ury not otherwise appropriated. (b) TERRORISM-RELATED INCREASES IN EX- ment claims filed by insurers with the Fund. (A) 90 percent of the covered losses occur- CESS OF PASS-THROUGHS.— (e) REPORTS BY SECRETARY.—No later than ring in calendar year 2002 in excess, in the (1) REPORTS BY INSURERS.—Not less than 30 march 31st of each calendar year, the Sec- aggregate, of $50,000,000,000 but not in excess days before the date on which a participating retary shall transmit to the Senate Com- of $100,000,000; and insurer increases the premium rate for insur- mittee on Commerce, Science, and Tech- (B) 80 percent of the covered losses occur- ance on any covered line of insurance de- nology and the House of Representatives ring in calendar year 2003 or 2004 in excess, in scribed in section 14(5) based, in whole or in Committee on Commerce an annual report the aggregate, of $50,000,000,000 but not in ex- part, on risk associated with insurance on insurance rate increases for the preceding cess of $100,000,000; and against losses due to acts of terrorism, the (2) shall notify the Congress of that deter- calendar year in the United States based insurer shall file a report with the State in- mination and transmit to the Congress rec- upon the reports received by the Secretary surance regulatory authority for the State ommendations for responding to the insuffi- under this Act. The Secretary may include in which the premium increase is effective ciency of available amounts to cover reim- in the report a recommendation for legisla- that— bursable losses. tion to impose Federal regulation of insur- (A) explains the need for the increased pre- (f) REPORTS TO STATE REGULATOR; CERTIFI- ance rates on covered lines of insurance if mium; CATION.— (B) identifies the portion of the increase the Secretary determines that premium (1) REPORTING TERRORISM COVERAGE.—A rates for insurance on covered lines of insur- participating insurer shall— properly attributable to risk associated with insurance offered by that insurer against ance are— (A) report the amount of its terrorism in- (1) unreasonable; and surance coverage to the insurance regulatory losses due to acts of terrorism; and (C) demonstrates, by substantial evidence, (2) attributable to insurance for losses authority for each State in which it does from acts of terrorism. business; and why that portion of the increase is war- (B) obtain a certification from the State ranted. SEC. 12. INAPPLICABILITY OF CERTAIN LAWS. that it is not providing terrorism insurance (2) REPORTS BY STATE REGULATORS.—Within (a) IN GENERAL.—State laws relating to in- coverage in excess of its capacity under 15 days after a State insurance regulatory surance rates, insurance policy forms, insur- State solvency requirements. authority receives a report from an insurer ance rates on any covered lines of insurance (2) REPORTS TO SECRETARY.—The State reg- required by paragraph (1), the authority— described in section 14(5)(A) or 14(5)(B), in- ulator shall furnish a copy of the certifi- (A) shall transmit a copy of the report to surer financial requirements, and insurer li- cation received under paragraph (1) to the the Secretary; censing do not apply to contracts entered Secretary. (B) may include a determination with re- into by the Fund. The Fund is not subject to SEC. 7. SECRETARY TO DETERMINE IF LOSS IS spect to whether an insurer has met the re- State tax and is exempt from Federal income ATTRIBUTABLE TO TERRORISM. quirement of paragraph (1)(C); and tax. The reinsurance contract premium paid (a) INITIAL DETERMINATION.—If a partici- (C) may include with the report any com- and assessments collected by insurers shall pating insurer files a claim for reimburse- mentary or analysis it deems appropriate. not be subject to local, State, or Federal tax.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5554 CONGRESSIONAL RECORD — SENATE June 13, 2002 The reinsurance contract premium and as- (2) NAIC.—The term ‘‘NAIC’’ means the in the course of a war declared by the Con- sessments recovered from policyholders shall National Association of Insurance Commis- gress of the United States or by a foreign not be subject to local, State, or Federal tax. sioners. government. (b) EXCEPTION FOR UNFAIR TRADE PRACTICE (3) FUND.—The term ‘‘Fund’’ means the Na- (C) FINALITY OF CERTIFICATION.—Any cer- LAWS.—Notwithstanding subsection (a), tional Terrorism Reinsurance Fund estab- tification, or determination not to certify, nothing in this Act supersedes or preempts a lished under section 4. by the Secretary under subparagraph (A) is State law that prohibits unfair methods of (4) PARTICIPATING INSURER.—The term final and not subject to judicial review. competition in commerce, unfair or decep- ‘‘participating insurer’’ means every prop- (9) INSURER.— tive acts or practices in commerce, or unfair erty and casualty insurer writing on a direct (A) IN GENERAL.—The term ‘‘insurer’’ insurance claims practices. basis a covered line or lines of insurance in means an entity writing covered lines on a SEC. 13. SUNSET PROVISION. any jurisdiction of the United States, its ter- direct basis and licensed as a property and (a) ASSESSMENT AND COLLECTION OF PRE- ritories, or possessions, including residual casualty insurer, risk retention group, or MIUMS.—The Secretary shall continue the market insurers. other entity authorized by law as a residual premium assessment and collection oper- (5) COVERED LINE.— market mechanism providing property or ations of the Fund under this Act as long as (A) IN GENERAL.—The term ‘‘covered line’’ casualty coverage in at least one jurisdiction loans due from the Fund to the United means any one or a combination of the fol- of the United States, its territories, or pos- States Treasury are outstanding. lowing, written on a direct basis, as reported sessions. (b) PROVISION OF REINSURANCE.—The Sec- by property and casualty insurers in re- (B) VOLUNTARY PARTICIPATION.—A State retary shall suspend other operations of the quired financial reports on Statutory Page 14 workers’ compensation, auto, or property in- Fund for new contract years on the close of of the NAIC Annual Statement Blank: surance Fund may voluntarily participate as business on December 31, 2004, and may sus- (i) Fire. an insurer. pend the offering of reinsurance contracts (ii) Allied lines. (10) CONTRACT YEAR.—The term ‘‘contract for new contract years at any time before (iii) Commercial multiple peril. year’’ means the period of time that obliga- (iv) Ocean marine. that date if the Secretary determines that tions exist between a participating insurer (v) Inland marine. and the Fund for a given annual reinsurance the reinsurance provided by the Fund is no (vi) Workers compensation. longer needed for covered lines due to mar- contract. (vii) Products liability. (11) RETENTION.—The term ‘‘retention’’ ket conditions. (viii) Commercial auto no-fault (personal means the level of direct losses retained by a (c) REVIEW OF PRIVATE REINSURANCE injury protection), other commercial auto li- participating insurer for which the insurer is AVAILABILITY.—The Secretary shall review ability, or commercial auto physical dam- not entitled to reimbursement by the Fund. the cost and availability of private reinsur- age. ance for acts of terrorism at least annually (ix) Aircraft (all peril). Mr. SANTORUM proposed and shall report the findings and any rec- SA 3842. (x) Fidelity and surety. an amendment to the bill S. 2600, to en- ommendations to Congress by June 1 of each (xi) Burglary and theft. year the Fund is in operation. (xii) Boiler and machinery. sure the continued financial capacity (d) DISSOLUTION OF FUND.— (xiii) Any other line of insurance that is of insurers to provide coverage for (1) DISTRIBUTION FOR RESERVES.—When the reported by property and casualty insurers risks from terrorism; as follows: Secretary determines that all Fund oper- in required financial reports on Statutory At the end, add the following: ations have been terminated, the Secretary Page 14 of the NAIC Annual Statement TITLE II—ANTITERRORISM PROVISIONS shall dissolve the Fund. Any unencumbered Blank which is voluntarily elected by a par- Subtitle A—Suppression of Terrorist Fund assets remaining after the satisfaction ticipating insurer to be included in its rein- Bombings of all outstanding claims, loans from the surance contract with the Fund. Treasury, and other liabilities of the fund (B) OTHER LINES.—For purposes of clause SEC. 201. SHORT TITLE. shall be distributed, on a pro rata basis based (xiii), the lines of business that may be vol- This subtitle may be cited as the ‘‘Ter- on premiums paid, to any insurer that— untarily selected are the following: rorist Bombings Convention Implementation (A) participated in the Fund during its op- (i) Farmowners multiple peril. Act of 2002’’. eration; and (ii) Homeowners multiple peril. SEC. 202. BOMBING STATUTE. (B) demonstrates, to the satisfaction of the (iii) Mortgage guaranty. (a) OFFENSE.—Chapter 113B of title 18, Secretary, that any amount received as a (iv) Financial guaranty. United States Code, relating to terrorism, is distribution from the Fund will be perma- (v) Private passenger automobile insur- amended by inserting after section 2332e the nently credited to a reserve account main- ance. following: (C) ELECTION.—The election to voluntarily tained by that insurer against claims for in- ‘‘§ 2332f. Bombings of places of public use, include another line of insurance, if made, dustrywide aggregate losses of $2,000,000,000 government facilities, public transportation must apply to all affiliated insurers that are from— systems and infrastructure facilities (i) acts of terrorism in the United States; members of an insurer group. Any voluntary or election is on a one-time basis and is irrev- ‘‘(a) OFFENSES.— (ii) the effects of earthquakes, volcanic ocable. ‘‘(1) IN GENERAL.—Whoever unlawfully de- livers, places, discharges, or detonates an ex- eruptions, tsunamis, or hurricanes. (6) LOSSES.—The term ‘‘losses’’ means di- (2) RETENTION REQUIREMENT FOR TAPPING rect incurred losses from an act of terrorism plosive or other lethal device in, into, or RESERVE.—Amounts credited to a reserve for covered lines, plus defense and cost con- against a place of public use, a state or gov- under paragraph (a) may not be used by an tainment expenses. Notwithstanding the pre- ernment facility, a public transportation insurer to pay claims until the insurer has ceding sentence, a loss shall not be recog- system, or an infrastructure facility— paid claims for losses resulting from acts or nized as a loss for the purpose of determining ‘‘(A) with the intent to cause death or seri- events described in paragraph (1)(B) in excess the amount of an insurer’s retention or reim- ous bodily injury, or of 10 percent of that insurer’s average gross bursement under this Act unless the claim ‘‘(B) with the intent to cause extensive de- direct written premiums and policyholders’ for the loss has been paid within 12 months struction of such a place, facility, or system, surplus for covered lines for the most re- after the terrorism event occurs and other where such destruction results in or is likely cently ended calendar year for which data loss adjustments. to result in major economic loss, are available. (7) COVERED LOSSES.—The term ‘‘covered shall be punished as prescribed in subsection (3) OFFICER AND DIRECTOR PENALTIES FOR losses’’ means direct losses in excess of the (c). MISUSE OF RESERVES.—Any officer or director participating insurer’s retention. ‘‘(2) ATTEMPTS AND CONSPIRACIES.—Who- of an insurer who knowingly authorizes or (8) TERRORISM; ACT OF TERRORISM.— ever attempts or conspires to commit an of- directs the use of any amount received from (A) IN GENERAL.—The terms ‘‘terrorism’’ fense under paragraph (1) shall be punished the Fund under paragraph (1) for any purpose and ‘‘act of terrorism’’ means any act, cer- as prescribed in subsection (c). other than an appropriate use of amounts in tified by the Secretary in concurrence with ‘‘(b) JURISDICTION.—There is jurisdiction the reserve to which the amount is credited the Secretary of State and the Attorney over the offenses in subsection (a) if— shall be guilty of a Class E felony and sen- General, as a violent act or act dangerous to ‘‘(1) the offense takes place in the United tenced in accordance with the provisions of human life, property or infrastructure, with- States and— section 3551 of title 18, United States Code. in the United States, its territories and pos- ‘‘(A) the offense is committed against an- (4) RESIDUAL DISTRIBUTION TO TREASURY.— sessions, that is committed by an individual other state or a government facility of such Any unencumbered Fund assets remaining or individuals acting on behalf of foreign state, including its embassy or other diplo- after the distribution under paragraph (1) agents or foreign interests (other than a for- matic or consular premises of that state; shall be covered into the Treasury of the eign government) as part of an effort to co- ‘‘(B) the offense is committed in an at- United States as miscellaneous receipts. erce or intimidate the civilian population of tempt to compel another state or the United SEC. 14. DEFINITIONS. the United States or to influence the policy States to do or abstain from doing any act; In this Act: or affect the conduct of the United States ‘‘(C) at the time the offense is committed, (1) SECRETARY.—Except where otherwise government. it is committed— specifically provided, the term ‘‘Secretary’’ (B) ACTS OF WAR.—No act shall be certified ‘‘(i) on board a vessel flying the flag of an- means the Secretary of Commerce. as an act of terrorism if the act is committed other state;

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5555 ‘‘(ii) on board an aircraft which is reg- members of the public, whether continu- any other person not taking an active part istered under the laws of another state; or ously, periodically, or occasionally, and en- in the hostilities in a situation of armed con- ‘‘(iii) on board an aircraft which is oper- compasses any commercial, business, cul- flict, when the purpose of such act, by its na- ated by the government of another state; tural, historical, educational, religious, gov- ture or context, is to intimidate a popu- ‘‘(D) a perpetrator is found outside the ernmental, entertainment, recreational, or lation, or to compel a government or an United States; similar place that is so accessible or open to international organization to do or to ab- ‘‘(E) a perpetrator is a national of another the public; stain from doing any act, state or a stateless person; or ‘‘(7) ‘public transportation system’ means shall be punished as prescribed in subsection ‘‘(F) a victim is a national of another state all facilities, conveyances, and instrumental- (d)(1). or a stateless person; ities, whether publicly or privately owned, ‘‘(2) ATTEMPTS AND CONSPIRACIES.—Who- ‘‘(2) the offense takes place outside the that are used in or for publicly available ever attempts or conspires to commit an of- United States and— services for the transportation of persons or fense under paragraph (1) shall be punished ‘‘(A) a perpetrator is a national of the cargo; as prescribed in subsection (d)(1). United States or is a stateless person whose ‘‘(8) ‘explosive’ has the meaning given in ‘‘(3) RELATIONSHIP TO PREDICATE ACT.—For habitual residence is in the United States; section 844(j) of this title insofar that it is an act to constitute an offense set forth in ‘‘(B) a victim is a national of the United designed, or has the capability, to cause this subsection, it shall not be necessary States; death, serious bodily injury, or substantial that the funds were actually used to carry ‘‘(C) a perpetrator is found in the United material damage; out a predicate act. States; ‘‘(9) ‘other lethal device’ means any weap- ‘‘(b) CONCEALMENT.— ‘‘(D) the offense is committed in an at- on or device that is designed or has the capa- ‘‘(1) IN GENERAL.—Whoever, in the United tempt to compel the United States to do or bility to cause death, serious bodily injury, States, or outside the United States and a abstain from doing any act; or substantial damage to property through national of the United States or a legal enti- ‘‘(E) the offense is committed against a the release, dissemination, or impact of ty organized under the laws of the United state or government facility of the United toxic chemicals, biological agents or toxins States (including any of its States, districts, States, including an embassy or other diplo- (as those terms are defined in section 178 of commonwealths, territories, or possessions), matic or consular premises of the United this title), or radiation or radioactive mate- knowingly conceals or disguises the nature, States; rial; the location, the source, or the ownership or ‘‘(F) the offense is committed on board a ‘‘(10) ‘military forces of a state’ means the control of any material support or resources vessel flying the flag of the United States or armed forces of a state which are organized, provided in violation of section 2339B of this an aircraft which is registered under the trained, and equipped under its internal law chapter, or of any funds provided or collected laws of the United States at the time the of- for the primary purpose of national defense in violation of subsection (a) or any proceeds fense is committed; or or security, and persons acting in support of of such funds, shall be punished as prescribed ‘‘(G) the offense is committed on board an those armed forces who are under their for- in subsection (d)(2). aircraft which is operated by the United mal command, control, and responsibility; ‘‘(2) ATTEMPTS AND CONSPIRACIES.—Who- States. ‘‘(11) ‘armed conflict’ does not include in- ‘‘(c) PENALTIES.—Whoever violates this ever attempts or conspires to commit an of- ternal disturbances and tensions, such as fense under paragraph (1) shall be punished section shall be imprisoned for any term of riots, isolated and sporadic acts of violence, years or for life, and if death results from as prescribed in subsection (d)(2). and other acts of a similar nature; and the violation, shall be punished by death or ‘‘(c) JURISDICTION.—There is jurisdiction ‘‘(12) ‘state’ has the same meaning as that imprisoned for any term of years or for life. over the offenses in subsection (a) in the fol- term has under international law, and in- ‘‘(d) EXEMPTIONS TO JURISDICTION.—This lowing circumstances— section does not apply to— cludes all political subdivisions thereof.’’. ‘‘(1) the offense takes place in the United (b) CLERICAL AMENDMENT.—The table of ‘‘(1) the activities of armed forces during States and— sections at the beginning of chapter 113B of an armed conflict, as those terms are under- ‘‘(A) a perpetrator was a national of an- title 18, United States Code, is amended by stood under the law of war, which are gov- other state or a stateless person; adding after the item relating to section erned by that law, ‘‘(B) on board a vessel flying the flag of an- 2332e the following: ‘‘(2) activities undertaken by military other state or an aircraft which is registered forces of a state in the exercise of their offi- ‘‘2332f. Bombings of places of public use, gov- under the laws of another state at the time cial duties; or ernment facilities, public trans- the offense is committed; ‘‘(3) offenses committed within the United portation systems and infra- ‘‘(C) on board an aircraft which is operated States, where the alleged offender and the structure facilities.’’. by the government of another state; victims are United States citizens and the (c) DISCLAIMER.—Nothing contained in this ‘‘(D) a perpetrator is found outside the alleged offender is found in the United section is intended to affect the applicability United States; States, or where jurisdiction is predicated of any other Federal or State law which ‘‘(E) was directed toward or resulted in the solely on the nationality of the victims or might pertain to the underlying conduct. carrying out of a predicate act against— the alleged offender and the offense has no SEC. 203. EFFECTIVE DATE. ‘‘(i) a national of another state; or substantial effect on interstate or foreign Section 202 shall become effective on the ‘‘(ii) another state or a government facility commerce. date that the International Convention for of such state, including its embassy or other ‘‘(e) DEFINITIONS.—As used in this section, the Suppression of Terrorist Bombings en- diplomatic or consular premises of that the term— ters into force for the United States. state; ‘‘(1) ‘serious bodily injury’ has the meaning Subtitle B—Suppression of the Financing of ‘‘(F) was directed toward or resulted in the given that term in section 1365(g)(3) of this Terrorism carrying out of a predicate act committed in title; an attempt to compel another state or inter- SEC. 211. SHORT TITLE. ‘‘(2) ‘national of the United States’ has the national organization to do or abstain from This subtitle may be cited as the ‘‘Suppres- meaning given that term in section 101(a)(22) doing any act; or sion of the Financing of Terrorism Conven- of the Immigration and Nationality Act (8 ‘‘(G) was directed toward or resulted in the tion Implementation Act of 2002’’. U.S.C. 1101(a)(22)); carrying out of a predicate act— ‘‘(3) ‘state or government facility’ includes SEC. 212. TERRORISM FINANCING STATUTE. ‘‘(i) outside the United States; or any permanent or temporary facility or con- (a) IN GENERAL.—Chapter 113B of title 18, ‘‘(ii) within the United States, and either veyance that is used or occupied by rep- United States Code, is amended by adding at the offense or the predicate act was con- resentatives of a state, members of Govern- the end the following: ducted in, or the results thereof affected, ment, the legislature or the judiciary or by ‘‘§ 2339C. Prohibitions against the financing interstate or foreign commerce; officials or employees of a state or any other of terrorism ‘‘(2) the offense takes place outside the public authority or entity or by employees ‘‘(a) OFFENSES.— United States and— or officials of an intergovernmental organi- ‘‘(1) IN GENERAL.—Whoever, in a cir- ‘‘(A) a perpetrator is a national of the zation in connection with their official du- cumstance described in subsection (c), by United States or is a stateless person whose ties; any means, directly or indirectly, unlawfully habitual residence is in the United States; ‘‘(4) ‘intergovernmental organization’ in- and willfully provides or collects funds with ‘‘(B) a perpetrator is found in the United cludes international organization (as defined the intention that such funds be used, or States; or in section 1116(b)(5) of this title); with the knowledge that such funds are to be ‘‘(C) was directed toward or resulted in the ‘‘(5) ‘infrastructure facility’ means any used, in full or in part, in order to carry carrying out of a predicate act against— publicly or privately owned facility pro- out— ‘‘(i) any property that is owned, leased, or viding or distributing services for the benefit ‘‘(A) an act which constitutes an offense used by the United States or by any depart- of the public, such as water, sewage, energy, within the scope of a treaty specified in sub- ment or agency of the United States, includ- fuel, or communications; section (e)(7), as implemented by the United ing an embassy or other diplomatic or con- ‘‘(6) ‘place of public use’ means those parts States, or sular premises of the United States; of any building, land, street, waterway, or ‘‘(B) any other act intended to cause death ‘‘(ii) any person or property within the other location that are accessible or open to or serious bodily injury to a civilian, or to United States;

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‘‘(iii) any national of the United States or time Navigation, done at Rome on March 10, (d) FORFEITURE OF FUNDS, PROCEEDS, AND the property of such national; or 1988; INSTRUMENTALITIES.—Section 981(a)(1) of ‘‘(iv) any property of any legal entity orga- ‘‘(H) the Protocol for the Suppression of title 18, United States Code, is amended by nized under the laws of the United States, in- Unlawful Acts against the Safety of Fixed adding at the end the following: cluding any of its States, districts, common- Platforms located on the Continental Shelf, ‘‘(H) Any property, real or personal, in- wealths, territories, or possessions; done at Rome on March 10, 1988; or volved in a violation or attempted violation, ‘‘(3) the offense is committed on board a ‘‘(I) the International Convention for the or which constitutes or is derived from pro- vessel flying the flag of the United States or Suppression of Terrorist Bombings, adopted ceeds traceable to a violation, of section an aircraft which is registered under the by the General Assembly of the United Na- 2339C of this title.’’. laws of the United States at the time the of- tions on December 15, 1997; fense is committed; ‘‘(8) the term ‘intergovernmental organiza- SA 3843. Mr. BROWNBACK proposed ‘‘(4) the offense is committed on board an tion’ includes international organizations; an amendment to the bill S. 2600, to en- aircraft which is operated by the United ‘‘(9) the term ‘international organization’ sure the continued financial capacity States; or has the same meaning as in section 1116(b)(5) of insurers to provide coverage for ‘‘(5) the offense was directed toward or re- of this title; risks from terrorism; as follows: sulted in the carrying out of a predicate act ‘‘(10) the term ‘armed conflict’ does not in- committed in an attempt to compel the clude internal disturbances and tensions, At the appropriate place add the following: United States to do or abstain from doing such as riots, isolated and sporadic acts of SEC. ll. UNPATENTABILITY OF HUMAN ORGA- any act. violence, and other acts of a similar nature; NISMS. Section 101 of title 35, United States Code, ‘‘(11) the term ‘serious bodily injury’ has ‘‘(d) PENALTIES.— is amended— ‘‘(1) Whoever violates subsection (a) shall the same meaning as in section 1365(g)(3) of (1) by inserting ‘‘(a) IN GENERAL.—’’ before this title; be fined under this title, imprisoned for not ‘‘Whoever’’; and ‘‘(12) the term ‘national of the United more than 20 years, or both. (2) by adding at the end the following: States’ has the meaning given that term in ‘‘(2) Whoever violates subsection (b) shall ‘‘(b) UNPATENTABILITY OF HUMAN ORGA- section 101(a)(22) of the Immigration and Na- be fined under this title, imprisoned for not NISMS.— tionality Act (8 U.S.C. 1101(a)(22)); and more than 10 years, or both. ‘‘(1) DEFINITION.—In this subsection, the ‘‘(13) the term ‘state’ has the same mean- ‘‘(e) DEFINITIONS.—As used in this section— term ‘human cloning’ means human asexual ing as that term has under international ‘‘(1) the term ‘funds’ means assets of every reproduction, accomplished by introducing law, and includes all political subdivisions kind, whether tangible or intangible, mov- nuclear material from one or more human thereof. able or immovable, however acquired, and somatic cells into a fertilized or unfertilized ‘‘(f) CIVIL PENALTY.—In addition to any legal documents or instruments in any form, oocyte whose nuclear material has been re- including electronic or digital, evidencing other criminal, civil, or administrative liability or penalty, any legal entity located moved or inactivated so as to produce a liv- title to, or interest in, such assets, including ing organism (at any stage of development) coin, currency, bank credits, travelers within the United States or organized under the laws of the United States, including any that is genetically virtually identical to an checks, bank checks, money orders, shares, existing or previously existing human orga- securities, bonds, drafts, and letters of cred- of the laws of its States, districts, commonwealths, territories, or possessions, shall be nism. it; ‘‘(2) UNPATENTABILITY.—A patent may not ‘‘(2) the term ‘government facility’ means liable to the United States for the sum of at least $10,000, if a person responsible for the be obtained for— any permanent or temporary facility or con- ‘‘(A) an organism of the human species at veyance that is used or occupied by rep- management or control of that legal entity has, in that capacity, committed an offense any stage of development produced by any resentatives of a state, members of a govern- method, whether in vitro or in vivo, includ- ment, the legislature, or the judiciary, or by set forth in subsection (a).’’. (b) CLERICAL AMENDMENT.—The table of ing the zygote, embryo, fetus, child or adult; officials or employees of a state or any other sections at the beginning of chapter 113B of ‘‘(B) a living organism made by human public authority or entity or by employees title 18, United States Code, is amended by cloning; or or officials of an intergovernmental organi- adding at the end the following: ‘‘(C) a process of human cloning.’’. zation in connection with their official duties; ‘‘2339C. Prohibitions against the financing of SA 3844. Mr. ENSIGN proposed an terrorism.’’. ‘‘(3) the term ‘proceeds’ means any funds amendment to amendment SA 3843 pro- derived from or obtained, directly or indi- (c) DISCLAIMER.—Nothing contained in this section is intended to affect the scope or ap- posed by Mr. BROWNBACK to the bill (S. rectly, through the commission of an offense 2600) to ensure the continued financial set forth in subsection (a); plicability of any other Federal or State law. ‘‘(4) the term ‘provides’ includes giving, do- SEC. 213. EFFECTIVE DATE. capacity of insurers to provide cov- nating, and transmitting; Except for sections 2339C(c)(1)(D) and (2)(B) erage for risks from terrorism; as fol- ‘‘(5) the term ‘collects’ includes raising and of title 18, United States Code, which shall lows: receiving; become effective on the date that the Inter- Strike all after the first word and insert ‘‘(6) the term ‘predicate act’ means any act national Convention for the Suppression of the following: referred to in subparagraph (A) or (B) of sub- the Financing of Terrorism enters into force UNPATENTABILITY OF HUMAN ORGANISMS. section (a)(1); for the United States, and for the provisions Section 101 of title 35, United States Code, ‘‘(7) the term ‘treaty’ means— of section 2339C(e)(7)(I) of title 18, United is amended— ‘‘(A) the Convention for the Suppression of States Code, which shall become effective on (1) by inserting ‘‘(a) IN GENERAL.—’’ before Unlawful Seizure of Aircraft, done at The the date that the International Convention ‘‘Whoever’’; and Hague on December 16, 1970; for the Suppression of Terrorist Bombing en- (2) by adding at the end the following: ‘‘(B) the Convention for the Suppression of ters into force for the United States, section ‘‘(b) UNPATENTABILITY OF HUMAN ORGA- Unlawful Acts against the Safety of Civil 212 of this subtitle shall take effect upon the NISMS.— Aviation, done at Montreal on September 23, date of enactment of this Act. ‘‘(1) DEFINITION.—In this subsection, the 1971; Subtitle C—Ancillary Measures term ‘human cloning’ means human asexual ‘‘(C) the Convention on the Prevention and SEC. 221. ANCILLARY MEASURES. reproduction, accomplished by introducing Punishment of Crimes against Internation- (a) WIRETAP PREDICATES.—Section nuclear material from one or more human ally Protected Persons, including Diplomatic 2516(1)(q) of title 18, United States Code, is somatic cells into a fertilized or unfertilized Agents, adopted by the General Assembly of amended by— oocyte whose nuclear material has been re- the United Nations on December 14, 1973; (1) inserting ‘‘2332f,’’ after ‘‘2332d,’’; and moved or inactivated so as to produce a liv- ‘‘(D) the International Convention against (2) striking ‘‘or 2339B’’ and inserting ing organism (at any stage of development) the Taking of Hostages, adopted by the Gen- ‘‘2339B, or 2339C’’. that is genetically virtually identical to an eral Assembly of the United Nations on De- (b) FEDERAL CRIME OF TERRORISM.—Section existing or previously existing human orga- cember 17, 1979; 2332b(g)(5)(B) of title 18, United States Code, nism. ‘‘(E) the Convention on the Physical Pro- is amended by— ‘‘(2) UNPATENTABILITY.—A patent may not tection of Nuclear Material, adopted at Vi- (1) inserting ‘‘2332f (relating to bombing of be obtained for— enna on March 3, 1980; public places and facilities),’’ after ‘‘2332b ‘‘(A) an organism of the human species at ‘‘(F) the Protocol for the Suppression of (relating to acts of terrorism transcending any stage of development produced by any Unlawful Acts of Violence at Airports Serv- national boundaries),’’; and method, whether in vitro or in vivo, including International Civil Aviation, supple- (2) inserting ‘‘2339C (relating to financing ing the zygote, embryo, fetus, child or adult; mentary to the Convention for the Suppres- of terrorism),’’ before ‘‘or 2340A (relating to ‘‘(B) a living organism made by human sion of Unlawful Acts against the Safety of torture)’’. cloning; or Civil Aviation, done at Montreal on Feb- (c) PROVIDING MATERIAL SUPPORT TO TER- ‘‘(C) a process of human cloning.’’. ruary 24, 1988; RORISTS PREDICATE.—Section 2339A of title ‘‘(3) EFFECTIVE DATE.—This section shall ‘‘(G) the Convention for the Suppression of 18, United States Code, is amended by insert- become effective 30 days after the date of en- Unlawful Acts against the Safety of Mari- ing ‘‘2332f,’’ before ‘‘or 2340A’’. actment.’’

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5557 SA 3845. Mr. REID (for Mrs. FEIN- tus of Women, Easton, MD; Ms. Jane E. Court Judge for the Eastern District of STEIN) proposed an amendment to the Smith, Chief Executive Officer, Busi- California; and Kenneth Marra to be bill S. 672, to amend the Immigration ness and Professional Women/USA, U.S. District Court Judge for the and Nationality Act to provide for the Washington, DC; Ms. Kathryn Ogden Southern District of Florida. continued classification of certain Balmforth, Member, Firm of Wood Panel IV: Lawrence Greenfeld to be aliens as children for purposes of that Crapo, L.L.C., Salt Lake City, Utah, Director, Bureau of Justice Statistics. Act in cases where the aliens ‘‘age-out’’ Former Director, World Family Policy The PRESIDING OFFICER. Without while awaiting immigration proc- Center, Brigham Young University, objection, it is so ordered. essing, and for other purposes; as fol- Provo, Utah; Ms. Jeane Kirkpatrick, COMMITTEE ON THE JUDICIARY lows: Senior Fellow & Director of Foreign Mr. DODD. Madam President, I ask On page 9, line 9, strike ‘‘(a)(4)’’ and insert and Defense Policy Studies, American unanimous consent that the Com- ‘‘(a)(2)(A)’’. Enterprise Institute, Former Perma- mittee on the Judiciary be authorized On page 10, line 9, strike ‘‘209(b)(2)’’ and in- nent Representative to the United Na- to meet to conduct a markup on Thurs- sert ‘‘209(b)(3)’’. tions, Washington, DC; and Dr. Chris- day, June 13, 2002, at 10:00 a.m. in Dirk- tina Hoff Sommers, Resident Scholar, sen Room 226. Mr. REID (for Mrs. FEIN- SA 3846. American Enterprise Institute, Chevy TENTATIVE AGENDA STEIN) proposed an amendment to the Chase, MD. I. NOMINATIONS bill H.R. 1209, to amend the Immigra- The PRESIDING OFFICER. Without Henry E. Autrey to be a U.S. District tion and Nationality Act to determine objection, it is so ordered. Court Judge for the Eastern District of whether an alien is a child, for pur- COMMITTEE ON FOREIGN RELATIONS Missouri; Richard E. Dorr to be a U.S. poses of classification as an immediate Mr. DODD. Madam President, I ask District Court Judge for the Western relative, based on the age of the alien unanimous consent that the Com- District of Missouri; David Godbey to on the date the classification petition mittee on Foreign Relations be author- be a U.S. District Court Judge for the with respect to the alien is filed, and ized to meet during the session of the Northern District of Texas; Henry Hud- for other purposes; as follows: Senate on Thursday, June 13, 2002 at son to be a U.S. District Court Judge On page 7, line 9, strike ‘‘(a)(4)’’ and insert 2:15 p.m. to hold a business meeting to for the Eastern District of Virginia; ‘‘(a)(2)(A)’’. Timothy Savage to be a U.S. District On page 8, line 9, strike ‘‘209(b)(2)’’ and in- consider and vote on S. 2525, a bill to sert ‘‘209(b)(3)’’. amend the Foreign Assistance Act of Court Judge for the Eastern District of 1961 to increase assistance for foreign Pennsylvania; and Amy J. St. Eve to f countries seriously affected by HIV– be a U.S. District Court Judge for the AUTHORITY FOR COMMITTEES TO AIDS, tuberculosis, and malaria, and Northern District of Illinois. MEET for other purposes. To be a United States Attorney: COMMITTEE ON FINANCE The PRESIDING OFFICER. Without Gregory Robert Miller for the Northern Mr. DODD. Madam President, I ask objection, it is so ordered. District of Florida, and Kevin Vincent Ryan for the Northern District of Cali- unanimous consent that the Com- COMMITTEE ON HEALTH, EDUCATION, LABOR, mittee on Finance be authorized to AND PENSIONS fornia. To be a United States Marshal: Ray meet in open executive session during Mr. DODD. Madam President, I ask Elmer Carnahan for the Eastern Dis- the session of the Senate on Thursday, unanimous consent that the Com- trict of Arkansas, David Scott Car- June 13, 2002, at 10 a.m. mittee on Health, Education, Labor, and Pensions be authorized to meet for penter for the District of North Da- Agenda: a hearing on Implementation of Read- kota, Theresa Merrow for the Eastern H.R. 7: Community Solutions Act. ing First and Reading Programs and District of Georgia, Ruben Monzon for S. 2498: Tax Shelter Transparency Strategies during the session of the the Southern District of Texas, and Act. Senate on Thursday, June 13, 2002 at 10 James Michael Wahlrab for the South- S. 2119: Reversing the Expatriation of a.m. in SD–430. ern District of Ohio. Profits Offshore Act. The PRESIDING OFFICER. Without II. BILLS The PRESIDING OFFICER. Without objection, it is so ordered. S. 1956, The Safe Explosives Act objection, it is so ordered. COMMITTEE ON THE JUDICIARY [Kohl/Hatch/Schumer/Cantwell] S. 1291, Development, Relief, and COMMITTEE ON FOREIGN RELATIONS Mr. DODD. Madam President, I ask Education for Alien Minors Act [Hatch] Mr. DODD. Madam President, I ask unanimous consent that the Com- S. 2134, Terrorism Victim’s Access to unanimous consent that the Com- mittee on the Judiciary be authorized Compensation Act of 2002 [Harkin/ mittee on Foreign Relations be author- to meet to conduct a hearing on Judi- ized to meet during the session of the Allen] cial Nominations on Thursday, June 13, H.R. 3375, Embassy Employee Com- Senate on Thursday, June 13, 2002 at 2002, in Dirksen Room 226 at 2 p.m. pensation Act [Blunt] 10:00 a.m. to hold a hearing on the CEDAW Treaty. Agenda III. RESOLUTIONS S. Con. Res. 104, A concurrent resolu- Agenda Witnesses tion recognizing the American Society Panel I: The Honorable Arlen Spec- of Civil Engineers on the occasion of Witnesses ter, United States Senator (R–PA); the the 150th anniversary of its founding Panel 1: The Honorable Carolyn B. Honorable Mitch McConnell, United and for the many vital contributions of Maloney (D–NY), U.S. House of Rep- States Senator (R–KY); the Honorable civil engineers to the quality of life of resentatives, Washington, DC; the Hon- Dianne Feinstein, United States Sen- the people of the United States, includ- orable Juanita Millender-McDonald (D– ator (D–CA); the Honorable Rick ing the research and development CA), U.S. House of Representatives, Santorum, United States Senator (R– projects that have led to the physical Washington, DC; the Honorable Con- PA); the Honorable Jim Bunning, infrastructure of modern America. stance A. Morella (R–MD), U.S. House United States Senator (R–KY); the [Jeffords/Smith] of Representatives, Washington, DC; Honorable Bill Nelson, United States H. Con. Res. 387, Recognizing the and the Honorable Lynn C. Woolsey (D– Senator (D–FL); and the Honorable American Society of Civil Engineers CA), U.S. House of Representatives, Roscoe Bartlett, United States Rep- for reaching its 150th Anniversary and Washington, DC. resentative (Republican, 6th District of for the many vital contributions of Panel 2: The Honorable Harold Maryland). civil engineers to the quality of life of Hongju Koh, Prefessor, Yale Law Panel II: John Rogers to the U.S. our Nation’s people including the re- School, Former Assistant Secretary of Court of Appeals for the Sixth Circuit. search and development projects that State for Human Rights, New Haven, Panel III: David Cercone to be U.S. have led to the physcial infrastructure CT; the Honorable Juliette C. District Court Judge for the Western of modern America [Barton/Moore] McLennan, Former U.S. Representa- District of Pennsylvania; Morrison The PRESIDING OFFICER. Without tive to the UN Commission on the Sta- Cohen England Jr. to be U.S. District objection, it is so ordered.

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5558 CONGRESSIONAL RECORD — SENATE June 13, 2002

SELECT COMMITTEE ON INTELLIGENCE ‘‘(f) RULES FOR DETERMINING WHETHER CER- SEC. 4. USE OF AGE ON PARENT’S APPLICATION Mr. DODD. Madam President, I ask TAIN ALIENS ARE IMMEDIATE RELATIVES.— FILING DATE IN DETERMINING ELI- GIBILITY FOR ASYLUM. ‘‘(1) AGE ON PETITION FILING DATE.—Except as unanimous consent that the Select Section 208(b)(3) of the Immigration and Na- provided in paragraphs (2) and (3), for purposes Committee on Intelligence be author- tionality Act (8 U.S.C. 1158(b)(3)) is amended to of subsection (b)(2)(A)(i), a determination of ized to meet during the session of the read as follows: whether an alien satisfies the age requirement Senate on Thursday, June 13, 2002 at ‘‘(3) TREATMENT OF SPOUSE AND CHILDREN.— in the matter preceding subparagraph (A) of ‘‘(A) IN GENERAL.—A spouse or child (as de- 2:30 p.m. to hold a closed business section 101(b)(1) shall be made using the age of meeting. fined in section 101(b)(1) (A), (B), (C), (D), or the alien on the date on which the petition is (E)) of an alien who is granted asylum under The PRESIDING OFFICER. Without filed with the Attorney General under section this subsection may, if not otherwise eligible for objection, it is so ordered. 204 to classify the alien as an immediate relative asylum under this section, be granted the same SUBCOMMITTEE ON HOUSING AND under subsection (b)(2)(A)(i). status as the alien if accompanying, or fol- TRANSPORTATION ‘‘(2) AGE ON PARENT’S NATURALIZATION lowing to join, such alien. Mr. DODD. Madam President, I ask DATE.—In the case of a petition under section ‘‘(B) CONTINUED CLASSIFICATION OF CERTAIN unanimous consent that the Sub- 204 initially filed for an alien child’s classifica- ALIENS AS CHILDREN.—An unmarried alien who tion as a family-sponsored immigrant under sec- seeks to accompany, or follow to join, a parent committee on Housing and Transpor- tion 203(a)(2)(A), based on the child’s parent granted asylum under this subsection, and who tation of the Committee on Banking, being lawfully admitted for permanent resi- was under 21 years of age on the date on which Housing, and Urban Affairs be author- dence, if the petition is later converted, due to such parent applied for asylum under this sec- ized to meet during the session of the the naturalization of the parent, to a petition to tion, shall continue to be classified as a child Senate on Thursday, June 13, 2002, at classify the alien as an immediate relative under for purposes of this paragraph and section 10:00 a.m. to conduct an oversight hear- subsection (b)(2)(A)(i), the determination de- 209(b)(2), if the alien attained 21 years of age ing on ‘‘TEA–21: A National Partner- scribed in paragraph (1) shall be made using the after such application was filed but while it was ship.’’ age of the alien on the date of the parent’s nat- pending.’’. uralization. SEC. 5. USE OF AGE ON PARENT’S APPLICATION The PRESIDING OFFICER. Without FILING DATE IN DETERMINING ELI- objection, it is so ordered. ‘‘(3) AGE ON MARRIAGE TERMINATION DATE.— In the case of a petition under section 204 ini- GIBILITY FOR ADMISSION AS REF- f tially filed for an alien’s classification as a fam- UGEE. Section 207(c)(2) of the Immigration and Na- ily-sponsored immigrant under section 203(a)(3), PRIVILEGES OF THE FLOOR tionality Act (8 U.S.C. 1157(c)(2)) is amended— based on the alien’s being a married son or (1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’; Mr. DODD. Madam President, I ask daughter of a citizen, if the petition is later con- and unanimous consent that Jessica Byrnes verted, due to the legal termination of the (2) by adding at the end the following: be granted floor privileges for the dura- alien’s marriage, to a petition to classify the ‘‘(B) An unmarried alien who seeks to accom- tion of the debate on S. 2600. alien as an immediate relative under subsection pany, or follow to join, a parent granted admis- The PRESIDING OFFICER. Without (b)(2)(A)(i) or as an unmarried son or daughter sion as a refugee under this subsection, and who of a citizen under section 203(a)(1), the deter- objection, it is so ordered. was under 21 years of age on the date on which mination described in paragraph (1) shall be such parent applied for refugee status under Mr. WELLSTONE. Madam President, made using the age of the alien on the date of I ask unanimous consent that Amy this section, shall continue to be classified as a the termination of the marriage.’’. child for purposes of this paragraph, if the alien Hertel be allowed to be on the floor of SEC. 3. TREATMENT OF CERTAIN UNMARRIED attained 21 years of age after such application the Senate for the duration of the de- SONS AND DAUGHTERS SEEKING was filed but while it was pending.’’. bate on this bill. STATUS AS FAMILY-SPONSORED, EM- SEC. 6. TREATMENT OF CLASSIFICATION PETI- The PRESIDING OFFICER. Without PLOYMENT-BASED, AND DIVERSITY TIONS FOR UNMARRIED SONS AND objection, it is so ordered. IMMIGRANTS. DAUGHTERS OF NATURALIZED CITI- Mr. HATCH. Madam President, I ask Section 203 of the Immigration and Nation- ZENS. ality Act (8 U.S.C. 1153) is amended by adding Section 204 of the Immigration and Nation- unanimous consent that privilege of at the end the following: ality Act (8 U.S.C. 1154) is amended by adding the floor be granted to Bruce Artim for ‘‘(h) RULES FOR DETERMINING WHETHER CER- at the end the following: the remainder of this session. TAIN ALIENS ARE CHILDREN.— ‘‘(k) PROCEDURES FOR UNMARRIED SONS AND The PRESIDING OFFICER. Without DAUGHTERS OF CITIZENS.— ‘‘(1) IN GENERAL.—For purposes of subsections objection, it is so ordered. ‘‘(1) IN GENERAL.—Except as provided in para- (a)(2)(A) and (d), a determination of whether an graph (2), in the case of a petition under this f alien satisfies the age requirement in the matter section initially filed for an alien unmarried son preceding subparagraph (A) of section 101(b)(1) CHILD STATUS PROTECTION ACT or daughter’s classification as a family-spon- shall be made using— sored immigrant under section 203(a)(2)(B), Mr. REID. Madam President, I ask ‘‘(A) the age of the alien on the date on which based on a parent of the son or daughter being unanimous consent the Senate now an immigrant visa number becomes available for an alien lawfully admitted for permanent resi- proceed to Calendar No. 374, S. 672. such alien (or, in the case of subsection (d), the dence, if such parent subsequently becomes a The PRESIDING OFFICER. The date on which an immigrant visa number be- naturalized citizen of the United States, such clerk will report the bill by title. came available for the alien’s parent), but only petition shall be converted to a petition to clas- if the alien has sought to acquire the status of The legislative clerk read as follows: sify the unmarried son or daughter as a family- an alien lawfully admitted for permanent resi- sponsored immigrant under section 203(a)(1). A bill (S. 672) to amend the Immigration dence within one year of such availability; re- ‘‘(2) EXCEPTION.—Paragraph (1) does not and Nationality Act to provide for the con- duced by apply if the son or daughter files with the Attor- tinued classification of certain aliens as chil- ‘‘(B) the number of days in the period during ney General a written statement that he or she dren for purposes of that Act in cases where which the applicable petition described in para- elects not to have such conversion occur (or if it the aliens ‘‘age-out’’ while awaiting immi- graph (2) was pending. has occurred, to have such conversion revoked). gration processing, and for other purposes. ‘‘(2) PETITIONS DESCRIBED.—The petition de- Where such an election has been made, any de- There being no objection, the Senate scribed in this paragraph is— termination with respect to the son or daughter’s eligibility for admission as a family-spon- proceeded to consider the bill, which ‘‘(A) with respect to a relationship described sored immigrant shall be made as if such natu- had been reported from the Committee in subsection (a)(2)(A), a petition filed under ralization had not taken place. on the Judiciary, with an amendment. section 204 for classification of an alien child ‘‘(3) PRIORITY DATE.—Regardless of whether a under subsection (a)(2)(A); or (Strike out all after the enacting petition is converted under this subsection or clause and insert the part printed in ‘‘(B) with respect to an alien child who is a not, if an unmarried son or daughter described italic.) derivative beneficiary under subsection (d), a in this subsection was assigned a priority date SECTION 1. SHORT TITLE. petition filed under section 204 for classification with respect to such petition before such natu- This Act may be cited as the ‘‘Child Status of the alien’s parent under subsection (a), (b), ralization, he or she may maintain that priority Protection Act’’. or (c). date. ‘‘(3) RETENTION OF PRIORITY DATE.—If the age LARIFICATION SEC. 2. USE OF AGE ON PETITION FILING DATE, ‘‘(4) C .—This subsection shall PARENT’S NATURALIZATION DATE, of an alien is determined under paragraph (1) to apply to a petition if it is properly filed, regard- OR MARRIAGE TERMINATION DATE, be 21 years of age or older for the purposes of less of whether it was approved or not before IN DETERMINING STATUS AS IMME- subsections (a)(4) and (d), the alien’s petition such naturalization.’’. DIATE RELATIVE. shall automatically be converted to the appro- SEC. 7. IMMIGRATION BENEFITS FOR CERTAIN Section 201 of the Immigration and Nation- priate category and the alien shall retain the ALIEN CHILDREN NOT AFFECTED. ality Act (8 U.S.C. 1151) is amended by adding original priority date issued upon receipt of the Section 204(a)(1)(D) of the Immigration and at the end the following: original petition.’’. Nationality Act (8 U.S.C. 1154(a)(1)(D)) is

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00094 Fmt 4624 Sfmt 6333 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5559 amended by adding at the end the following under section 203(a)(2)(A), based on the parent granted asylum under this sub- new clause: child’s parent being lawfully admitted for section, and who was under 21 years of age on ‘‘(iii) Nothing in the amendments made by the permanent residence, if the petition is later the date on which such parent applied for Child Status Protection Act shall be construed converted, due to the naturalization of the asylum under this section, shall continue to to limit or deny any right or benefit provided parent, to a petition to classify the alien as be classified as a child for purposes of this under this subparagraph.’’. an immediate relative under subsection paragraph and section 209(b)(2), if the alien SEC. 8. EFFECTIVE DATE. (b)(2)(A)(i), the determination described in attained 21 years of age after such applica- The amendments made by this Act shall take paragraph (1) shall be made using the age of tion was filed but while it was pending.’’. effect on the date of the enactment of this Act the alien on the date of the parent’s natu- SEC. 5. USE OF AGE ON PARENT’S APPLICATION and shall apply to any alien who is a derivative ralization. FILING DATE IN DETERMINING ELI- beneficiary or any other beneficiary of— ‘‘(3) AGE ON MARRIAGE TERMINATION DATE.— GIBILITY FOR ADMISSION AS REF- UGEE. (1) a petition for classification under section In the case of a petition under section 204 Section 207(c)(2) of the Immigration and 204 of the Immigration and Nationality Act (8 initially filed for an alien’s classification as Nationality Act (8 U.S.C. 1157(c)(2)) is U.S.C. 1154) approved before such date but only a family-sponsored immigrant under section amended— if a final determination has not been made on 203(a)(3), based on the alien’s being a married (1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’; the beneficiary’s application for an immigrant son or daughter of a citizen, if the petition is and visa or adjustment of status to lawful perma- later converted, due to the legal termination (2) by adding at the end the following: nent residence pursuant to such approved peti- of the alien’s marriage, to a petition to classify the alien as an immediate relative under ‘‘(B) An unmarried alien who seeks to action; company, or follow to join, a parent granted (2) a petition for classification under section subsection (b)(2)(A)(i) or as an unmarried son or daughter of a citizen under section admission as a refugee under this subsection, 204 of the Immigration and Nationality Act (8 and who was under 21 years of age on the U.S.C. 1154) pending on or after such date; or 203(a)(1), the determination described in paragraph (1) shall be made using the age of date on which such parent applied for ref- (3) an application pending before the Depart- ugee status under this section, shall con- ment of Justice or the Department of State on or the alien on the date of the termination of the marriage.’’. tinue to be classified as a child for purposes after such date. of this paragraph, if the alien attained 21 SEC. 3. TREATMENT OF CERTAIN UNMARRIED Mr. REID. Madam President, Senator SONS AND DAUGHTERS SEEKING years of age after such application was filed FEINSTEIN has a technical amendment STATUS AS FAMILY-SPONSORED, EM- but while it was pending.’’. at the desk, and I ask unanimous con- PLOYMENT-BASED, AND DIVERSITY SEC. 6. TREATMENT OF CLASSIFICATION PETI- sent that the amendment be considered IMMIGRANTS. TIONS FOR UNMARRIED SONS AND Section 203 of the Immigration and Nation- DAUGHTERS OF NATURALIZED CITI- and agreed to, the motion to reconsider ality Act (8 U.S.C. 1153) is amended by add- ZENS. be laid upon the table, that the coming at the end the following: Section 204 of the Immigration and Nation- mittee substitute amendment, as ‘‘(h) RULES FOR DETERMINING WHETHER ality Act (8 U.S.C. 1154) is amended by add- amended, be agreed to, the bill, as CERTAIN ALIENS ARE CHILDREN.— ing at the end the following: amended, be read a third time, passed, ‘‘(1) IN GENERAL.—For purposes of sub- ‘‘(k) PROCEDURES FOR UNMARRIED SONS AND and the motion to reconsider be laid sections (a)(2)(A) and (d), a determination of DAUGHTERS OF CITIZENS.— ‘‘(1) IN GENERAL.—Except as provided in upon the table, without any inter- whether an alien satisfies the age requirement in the matter preceding subparagraph paragraph (2), in the case of a petition under vening action or debate. (A) of section 101(b)(1) shall be made using— this section initially filed for an alien un- The PRESIDING OFFICER. Without ‘‘(A) the age of the alien on the date on married son or daughter’s classification as a objection, it is so ordered. which an immigrant visa number becomes family-sponsored immigrant under section The amendment (No. 3845) was agreed available for such alien (or, in the case of 203(a)(2)(B), based on a parent of the son or to, as follows: subsection (d), the date on which an immi- daughter being an alien lawfully admitted for permanent residence, if such parent sub- On page 9, line 9, strike ‘‘(a)(4)’’ and insert grant visa number became available for the sequently becomes a naturalized citizen of ‘‘(a)(2)(A)’’. alien’s parent), but only if the alien has the United States, such petition shall be con- On page 10, line 9, strike ‘‘209(b)(2)’’ and in- sought to acquire the status of an alien law- verted to a petition to classify the unmar- sert ‘‘209(b)(3)’’. fully admitted for permanent residence within one year of such availability; reduced by ried son or daughter as a family-sponsored The committee amendment in the ‘‘(B) the number of days in the period dur- immigrant under section 203(a)(1). nature of a substitute, as amended, was ing which the applicable petition described ‘‘(2) EXCEPTION.—Paragraph (1) does not agreed to. in paragraph (2) was pending. apply if the son or daughter files with the The bill (S. 672), as amended, was ‘‘(2) PETITIONS DESCRIBED.—The petition Attorney General a written statement that read the third time and passed, as fol- described in this paragraph is— he or she elects not to have such conversion lows: ‘‘(A) with respect to a relationship de- occur (or if it has occurred, to have such con- scribed in subsection (a)(2)(A), a petition version revoked). Where such an election has S. 672 filed under section 204 for classification of an been made, any determination with respect Be it enacted by the Senate and House of Rep- alien child under subsection (a)(2)(A); or to the son or daughter’s eligibility for admis- resentatives of the United States of America in ‘‘(B) with respect to an alien child who is sion as a family-sponsored immigrant shall Congress assembled, a derivative beneficiary under subsection (d), be made as if such naturalization had not SECTION 1. SHORT TITLE. a petition filed under section 204 for classi- taken place. This Act may be cited as the ‘‘Child Status fication of the alien’s parent under sub- ‘‘(3) PRIORITY DATE.—Regardless of whether Protection Act’’. section (a), (b), or (c). a petition is converted under this subsection or not, if an unmarried son or daughter de- SEC. 2. USE OF AGE ON PETITION FILING DATE, ‘‘(3) RETENTION OF PRIORITY DATE.—If the PARENT’S NATURALIZATION DATE, age of an alien is determined under para- scribed in this subsection was assigned a pri- OR MARRIAGE TERMINATION DATE, graph (1) to be 21 years of age or older for the ority date with respect to such petition be- IN DETERMINING STATUS AS IMME- purposes of subsections (a)(4) and (d), the fore such naturalization, he or she may DIATE RELATIVE. alien’s petition shall automatically be con- maintain that priority date. Section 201 of the Immigration and Nation- verted to the appropriate category and the ‘‘(4) CLARIFICATION.—This subsection shall ality Act (8 U.S.C. 1151) is amended by add- alien shall retain the original priority date apply to a petition if it is properly filed, re- ing at the end the following: issued upon receipt of the original petition.’’. gardless of whether it was approved or not ‘‘(f) RULES FOR DETERMINING WHETHER CER- SEC. 4. USE OF AGE ON PARENT’S APPLICATION before such naturalization.’’. TAIN ALIENS ARE IMMEDIATE RELATIVES.— FILING DATE IN DETERMINING ELI- SEC. 7. IMMIGRATION BENEFITS FOR CERTAIN ‘‘(1) AGE ON PETITION FILING DATE.—Except GIBILITY FOR ASYLUM. ALIEN CHILDREN NOT AFFECTED. as provided in paragraphs (2) and (3), for pur- Section 208(b)(3) of the Immigration and Section 204(a)(1)(D) of the Immigration and poses of subsection (b)(2)(A)(i), a determina- Nationality Act (8 U.S.C. 1158(b)(3)) is Nationality Act (8 U.S.C. 1154(a)(1)(D)) is tion of whether an alien satisfies the age re- amended to read as follows: amended by adding at the end the following quirement in the matter preceding subpara- ‘‘(3) TREATMENT OF SPOUSE AND CHILDREN.— new clause: graph (A) of section 101(b)(1) shall be made ‘‘(A) IN GENERAL.—A spouse or child (as de- ‘‘(iii) Nothing in the amendments made by using the age of the alien on the date on fined in section 101(b)(1) (A), (B), (C), (D), or the Child Status Protection Act shall be con- which the petition is filed with the Attorney (E)) of an alien who is granted asylum under strued to limit or deny any right or benefit General under section 204 to classify the this subsection may, if not otherwise eligible provided under this subparagraph.’’. alien as an immediate relative under sub- for asylum under this section, be granted the SEC. 8. EFFECTIVE DATE. section (b)(2)(A)(i). same status as the alien if accompanying, or The amendments made by this Act shall ‘‘(2) AGE ON PARENT’S NATURALIZATION following to join, such alien. take effect on the date of the enactment of DATE.—In the case of a petition under section ‘‘(B) CONTINUED CLASSIFICATION OF CERTAIN this Act and shall apply to any alien who is 204 initially filed for an alien child’s classi- ALIENS AS CHILDREN.—An unmarried alien a derivative beneficiary or any other bene- fication as a family-sponsored immigrant who seeks to accompany, or follow to join, a ficiary of—

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5560 CONGRESSIONAL RECORD — SENATE June 13, 2002 (1) a petition for classification under sec- (b)(2)(A)(i) or as an unmarried son or daughter was under 21 years of age on the date on which tion 204 of the Immigration and Nationality of a citizen under section 203(a)(1), the deter- such parent applied for refugee status under Act (8 U.S.C. 1154) approved before such date mination described in paragraph (1) shall be this section, shall continue to be classified as a but only if a final determination has not made using the age of the alien on the date of child for purposes of this paragraph, if the alien been made on the beneficiary’s application the termination of the marriage.’’. attained 21 years of age after such application for an immigrant visa or adjustment of sta- SEC. 3. TREATMENT OF CERTAIN UNMARRIED was filed but while it was pending.’’. tus to lawful permanent residence pursuant SONS AND DAUGHTERS SEEKING SEC. 6. TREATMENT OF CLASSIFICATION PETI- to such approved petition; STATUS AS FAMILY-SPONSORED, EM- TIONS FOR UNMARRIED SONS AND (2) a petition for classification under sec- PLOYMENT-BASED, AND DIVERSITY DAUGHTERS OF NATURALIZED CITI- tion 204 of the Immigration and Nationality IMMIGRANTS. ZENS. Act (8 U.S.C. 1154) pending on or after such Section 203 of the Immigration and Nation- Section 204 of the Immigration and Nation- date; or ality Act (8 U.S.C. 1153) is amended by adding ality Act (8 U.S.C. 1154) is amended by adding (3) an application pending before the De- at the end the following: at the end the following: partment of Justice or the Department of ‘‘(h) RULES FOR DETERMINING WHETHER CER- ‘‘(k) PROCEDURES FOR UNMARRIED SONS AND State on or after such date. TAIN ALIENS ARE CHILDREN.— DAUGHTERS OF CITIZENS.— ‘‘(1) IN GENERAL.—For purposes of subsections f ‘‘(1) IN GENERAL.—Except as provided in para- (a)(2)(A) and (d), a determination of whether an graph (2), in the case of a petition under this CHILD STATUS PROTECTION ACT alien satisfies the age requirement in the matter section initially filed for an alien unmarried son OF 2001 preceding subparagraph (A) of section 101(b)(1) or daughter’s classification as a family-spon- shall be made using— sored immigrant under section 203(a)(2)(B), Mr. REID. Madam President, I ask ‘‘(A) the age of the alien on the date on which based on a parent of the son or daughter being unanimous consent that the Senate an immigrant visa number becomes available for an alien lawfully admitted for permanent resi- such alien (or, in the case of subsection (d), the now proceed to Calendar No. 377, H.R. dence, if such parent subsequently becomes a date on which an immigrant visa number be- 1209. naturalized citizen of the United States, such came available for the alien’s parent), but only The PRESIDING OFFICER. The petition shall be converted to a petition to clas- if the alien has sought to acquire the status of clerk will report the bill by title. sify the unmarried son or daughter as a family- an alien lawfully admitted for permanent resi- The legislative clerk read as follows: sponsored immigrant under section 203(a)(1). dence within one year of such availability; re- ‘‘(2) EXCEPTION.—Paragraph (1) does not A bill (H.R. 1209) to amend the Immigra- duced by apply if the son or daughter files with the Attor- tion and Nationality Act to determine ‘‘(B) the number of days in the period during ney General a written statement that he or she whether an alien is a child, for purposes of which the applicable petition described in para- elects not to have such conversion occur (or if it classification as an immediate relative, graph (2) was pending. has occurred, to have such conversion revoked). based on the age of the alien on the date the ‘‘(2) PETITIONS DESCRIBED.—The petition de- Where such an election has been made, any de- classification petition with respect to the scribed in this paragraph is— alien is filed, and for other purposes. ‘‘(A) with respect to a relationship described termination with respect to the son or daughter’s eligibility for admission as a family-spon- There being no objection, the Senate in subsection (a)(2)(A), a petition filed under section 204 for classification of an alien child sored immigrant shall be made as if such natu- proceeded to consider the bill, which ralization had not taken place. has been reported from the Committee under subsection (a)(2)(A); or ‘‘(B) with respect to an alien child who is a ‘‘(3) PRIORITY DATE.—Regardless of whether a on the Judiciary, with an amendment. derivative beneficiary under subsection (d), a petition is converted under this subsection or (Strike out all after the enacting petition filed under section 204 for classification not, if an unmarried son or daughter described clause and insert the part printed in of the alien’s parent under subsection (a), (b), in this subsection was assigned a priority date italic.) or (c). with respect to such petition before such naturalization, he or she may maintain that priority SECTION 1. SHORT TITLE. ‘‘(3) RETENTION OF PRIORITY DATE.—If the age date. This Act may be cited as the ‘‘Child Status of an alien is determined under paragraph (1) to Protection Act’’. be 21 years of age or older for the purposes of ‘‘(4) CLARIFICATION.—This subsection shall subsections (a)(4) and (d), the alien’s petition apply to a petition if it is properly filed, regard- SEC. 2. USE OF AGE ON PETITION FILING DATE, less of whether it was approved or not before PARENT’S NATURALIZATION DATE, shall automatically be converted to the appro- OR MARRIAGE TERMINATION DATE, priate category and the alien shall retain the such naturalization.’’. IN DETERMINING STATUS AS IMME- original priority date issued upon receipt of the SEC. 7. IMMIGRATION BENEFITS FOR CERTAIN DIATE RELATIVE. original petition.’’. ALIEN CHILDREN NOT AFFECTED. Section 201 of the Immigration and Nation- SEC. 4. USE OF AGE ON PARENT’S APPLICATION Section 204(a)(1)(D) of the Immigration and ality Act (8 U.S.C. 1151) is amended by adding FILING DATE IN DETERMINING ELI- Nationality Act (8 U.S.C. 1154(a)(1)(D)) is at the end the following: GIBILITY FOR ASYLUM. amended by adding at the end the following ‘‘(f) RULES FOR DETERMINING WHETHER CER- Section 208(b)(3) of the Immigration and Na- new clause: TAIN ALIENS ARE IMMEDIATE RELATIVES.— tionality Act (8 U.S.C. 1158(b)(3)) is amended to ‘‘(iii) Nothing in the amendments made by the ‘‘(1) AGE ON PETITION FILING DATE.—Except as read as follows: Child Status Protection Act shall be construed provided in paragraphs (2) and (3), for purposes ‘‘(3) TREATMENT OF SPOUSE AND CHILDREN.— to limit or deny any right or benefit provided of subsection (b)(2)(A)(i), a determination of ‘‘(A) IN GENERAL.—A spouse or child (as de- under this subparagraph.’’. whether an alien satisfies the age requirement fined in section 101(b)(1) (A), (B), (C), (D), or SEC. 8. EFFECTIVE DATE. in the matter preceding subparagraph (A) of (E)) of an alien who is granted asylum under The amendments made by this Act shall take section 101(b)(1) shall be made using the age of this subsection may, if not otherwise eligible for effect on the date of the enactment of this Act the alien on the date on which the petition is asylum under this section, be granted the same and shall apply to any alien who is a derivative filed with the Attorney General under section status as the alien if accompanying, or fol- beneficiary or any other beneficiary of— 204 to classify the alien as an immediate relative lowing to join, such alien. (1) a petition for classification under section under subsection (b)(2)(A)(i). ‘‘(B) CONTINUED CLASSIFICATION OF CERTAIN 204 of the Immigration and Nationality Act (8 ‘‘(2) AGE ON PARENT’S NATURALIZATION ALIENS AS CHILDREN.—An unmarried alien who U.S.C. 1154) approved before such date but only DATE.—In the case of a petition under section seeks to accompany, or follow to join, a parent if a final determination has not been made on 204 initially filed for an alien child’s classifica- granted asylum under this subsection, and who the beneficiary’s application for an immigrant tion as a family-sponsored immigrant under sec- was under 21 years of age on the date on which visa or adjustment of status to lawful perma- tion 203(a)(2)(A), based on the child’s parent such parent applied for asylum under this sec- nent residence pursuant to such approved peti- being lawfully admitted for permanent resi- tion, shall continue to be classified as a child tion; dence, if the petition is later converted, due to for purposes of this paragraph and section (2) a petition for classification under section the naturalization of the parent, to a petition to 209(b)(2), if the alien attained 21 years of age 204 of the Immigration and Nationality Act (8 classify the alien as an immediate relative under after such application was filed but while it was U.S.C. 1154) pending on or after such date; or subsection (b)(2)(A)(i), the determination depending.’’. scribed in paragraph (1) shall be made using the (3) an application pending before the Depart- SEC. 5. USE OF AGE ON PARENT’S APPLICATION ment of Justice or the Department of State on or age of the alien on the date of the parent’s nat- FILING DATE IN DETERMINING ELI- uralization. GIBILITY FOR ADMISSION AS REF- after such date. ‘‘(3) AGE ON MARRIAGE TERMINATION DATE.— UGEE. Mr. REID. Madam President, Senator In the case of a petition under section 204 ini- Section 207(c)(2) of the Immigration and Na- FEINSTEIN has a technical amendment tially filed for an alien’s classification as a fam- tionality Act (8 U.S.C. 1157(c)(2)) is amended— at the desk, and I ask that the amend- ily-sponsored immigrant under section 203(a)(3), (1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’; ment be considered and agreed to, the based on the alien’s being a married son or and daughter of a citizen, if the petition is later con- (2) by adding at the end the following: motion to reconsider be laid upon the verted, due to the legal termination of the ‘‘(B) An unmarried alien who seeks to accom- table, that the committee substitute alien’s marriage, to a petition to classify the pany, or follow to join, a parent granted admis- amendment, as amended, be agreed to, alien as an immediate relative under subsection sion as a refugee under this subsection, and who the bill, as amended, be read a third

VerDate Mar 15 2010 20:31 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\2002SENATE\S13JN2.REC S13JN2 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 13, 2002 CONGRESSIONAL RECORD — SENATE S5561 time, passed, and the motion to recon- pionship without the hard work and Whereas Kobe Bryant was named to the sider be laid upon the table, without dedication of the entire team: Rick 2001–2002 All-National Basketball Associa- any intervening action or debate. Fox, Derrick Fisher, Robert Horry, tion First Team after averaging 25.5 points The PRESIDING OFFICER. Without Brian Shaw, Devean George, Lindsey per game, 5.5 rebounds per game, and 5.5 as- Hunter, Samaki Walker, Mark Madsen, sists per game during the regular season; objection, it is so ordered. Whereas Kobe Bryant averaged 26.8 points, The amendment (No. 3846) was agreed Slava Medvedenko, and Mitch Rich- 5.8 rebounds, and 5.3 assists during the 2002 to, as follows: mond. National Basketball Association Finals; On page 7, line 9, strike ‘‘(a)(4)’’ and insert I also want to congratulate team Whereas Coach Phil Jackson won his ninth ‘‘(a)(2)(A)’’. owner Dr. Jerry Buss, General Manager National Basketball Association title, tying On page 8, line 9, strike ‘‘209(b)(2)’’ and in- Mitch Kupchak and all the others who the record of legendary Boston Celtics coach, sert ‘‘209(b)(3)’’. put in the time and effort to bring an- Red Auerbach; The committee amendment in the other championship to the City of An- Whereas Coach Phil Jackson won his 156th gels. And, most importantly, I would postseason game, surpassing former Lakers nature of a substitute, as amended, was Coach Pat Riley to become the winningest agreed to. like to thank the Laker fans in Los An- geles and throughout the state for playoff coach in National Basketball Asso- The bill (H.R. 1209), as amended, was ciation history; read the third time and passed. being there for the team every step of Whereas the Los Angeles Lakers epitomize the way. f the spirit of their hometown with their de- The 2001–2002 Los Angeles Lakers termination, heart, stamina, and amazing CONGRATULATING THE LOS have written another chapter in the comeback ability; ANGELES LAKERS history of one of the National Basket- Whereas the support of all the Los Angeles Mr. REID. Madam President, I ask ball Association’s storied franchises fans and the people of California propelled unanimous consent the Senate proceed and will certainly go down as one of the Los Angeles Lakers to another National Basketball Association Championship; and to the consideration of S. Res. 286 sub- the greatest teams of all time. They have made the City of Los An- Whereas the Los Angeles Lakers are poised mitted earlier today by Senators FEIN- geles and the State of California proud. to win a fourth straight National Basketball STEIN and BOXER. The Los Angeles Lakers are a team Association Championship next season: Now, The PRESIDING OFFICER. The with a tremendous amount of heart, therefore, be it clerk will report the resolution by Resolved, That the Senate commends and stamina, determination and a clear congratulates the Los Angeles Lakers on title. will to win. I have no doubt that this The legislative clerk read as follows: winning the 2002 National Basketball Asso- team stands ready to make a run at a ciation Championship Title. A resolution (S. Res. 286) commending and fourth straight championship and add f congratulating the Los Angeles Lakers for yet another banner to the rafters of the their outstanding drive, discipline, and mas- Staples Center. ORDERS FOR FRIDAY, JUNE 14, 2002 tery in winning the 2002 National Basketball Mr. REID. Madam President, I ask Association Championship. Mr. REID. Madam President, I was pulling for the Sacramento team. I unanimous consent when the Senate There being no objection, the Senate have to say, as much as I dislike the completes its business today, it ad- proceeded to consider the resolution. Lakers, they sure came through in the journ until 9 a.m. Friday, June 14; that Madam President, I rise today with clutch. They really know how to win. following the prayer and the pledge, my friend and colleague from Cali- You have to admire them for that. the Journal of proceedings be approved fornia, Senator BARBARA BOXER, to I ask unanimous consent the resolu- to date, the morning hour be deemed commend and congratulate the Los An- tion and preamble be agreed to en bloc, expired, the time for the two leaders be geles Lakers for winning the 2002 Na- the motion to reconsider be laid on the reserved for their use later in the day, tional Basketball Association Cham- table, and any statements relating and there be a period of morning busi- pionship last night. thereto be printed in the RECORD, with- ness until 9:35 a.m., with 20 minutes Clearly, the Lakers are one of the out further intervening action or de- under the control of Senator MURRAY, most distinguished franchises in the bate. and the remaining time under the con- history of professional sports. In The PRESIDING OFFICER. Without trol of the Republican leader or his des- sweeping a talented and game New Jer- objection, it is so ordered. ignee; further that at 9:35 a.m., the sey Nets team, the Lakers won their The resolution (S. Res. 286) was Senate resume consideration of the ter- third straight championship and their agreed to. rorism insurance bill. fourteenth overall. The preamble was agreed to. The PRESIDING OFFICER. Without Led by coach Phil Jackson, Shaquille The resolution, with its preamble, objection, it is so ordered. O’Neal, and Kobe Bryant, the Lakers reads as follows: f S. RES. 286 could not be denied. Shaquille O’Neal PROGRAM dominated the Finals and won his third Whereas the Los Angeles Lakers are 1 of straight National Basketball Associa- the greatest sports franchises in history; Mr. REID. Madam President, the tion Finals Most Valuable Player Whereas the Laker organization has won 14 Senate will conduct two rollcall votes award after scoring a record 145 points National Basketball Association Champion- beginning at approximately 9:35 a.m., in a four game series. ships; first on passage of H.R. 3275, the Sup- Whereas the Los Angeles Lakers are only pression of Terrorism Convention, and Another superstar, Kobe Bryant, the fifth team to win 3 consecutive National averaged 26.8 points, 5.3 assists, and 5.8 the second on the Allen amendment to Basketball Association Championships and the terrorism insurance bill regarding rebounds during the Finals series after the seventh team to sweep the finals 4 games frozen assets. being named to the 2001–2002 All-Na- to none; tional Basketball Association First Whereas the Laker organization has fielded f Team. In addition, he delighted fans such legendary superstars as George Mikan, ADJOURNMENT UNTIL 9 A.M. with his usual collection of highlight Wilt Chamberlain, Jerry West, Elgin Baylor, TOMORROW material plays. Kareem Abdul-Jabbar, Earvin ‘‘Magic’’ John- son, and now, Shaquille O’Neal and Kobe Mr. REID. Madam President, if there Coach Phil Jackson also had a record Bryant; is no further business to come before breaking night. He won his ninth Na- Whereas Shaquille O’Neal won his third the Senate, I ask unanimous consent tional Basketball Association title, straight National Basketball Association the Senate stand in adjournment under tying the record of the legendary Bos- Finals Most Valuable Player award, joining the previous order. ton Celtics coach, Red Auerbach. In ad- Michael Jordan as the only player to win 3 There being no objection, the Senate, dition, he won his 156th post-season consecutive awards; at 8:50 p.m., adjourned until Friday, Whereas Shaquille O’Neal scored a record game, surpassing former Lakers coach June 14, 2002, at 9 a.m. Pat Riley to become the winningest 145 points in the 2002 4-game finals series; Whereas Shaquille O’Neal’s 59.5 percent ca- f playoff coach in National Basketball reer field goal percentage in National Bas- NOMINATIONS Association history. ketball Association Finals games is number But it should be pointed out that the 1 all-time and his 34.2 point scoring average Executive nominations received by Lakers could not have won the cham- ranks second; the Senate June 13, 2002:

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FEDERAL MARITIME COMMISSION PIRING OCTOBER 6, 2006, VICE ROBERT B. ROGERS, TERM IN THE NAVY EXPIRED. REBECCA DYE, OF NORTH CAROLINA, TO BE A FEDERAL THE FOLLOWING NAMED OFFICER FOR APPOINTMENT MARITIME COMMISSIONER FOR THE TERM EXPIRING NATIONAL FOUNDATION ON THE ARTS AND THE IN THE UNITED STATES NAVY TO THE GRADE INDICATED JUNE 30, 2005, VICE JOHN A. MORAN, TERM EXPIRED. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND HUMANITIES RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: CORPORATION FOR NATIONAL AND COMMUNITY EARL A. POWELL III, OF VIRGINIA, TO BE A MEMBER OF To be vice admiral SERVICE THE NATIONAL COUNCIL ON THE ARTS FOR A TERM EX- PIRING SEPTEMBER 3, 2006, VICE TOWNSEND D. WOLFE III, REAR ADM. PHILLIP M. BALISLE, 0000 WILLIAM A. SCHAMBRA, OF VIRGINIA, TO BE A MEMBER TERM EXPIRED. OF THE BOARD OF DIRECTORS OF THE CORPORATION THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES NAVY TO THE GRADE INDICATED FOR NATIONAL AND COMMUNITY SERVICE FOR A TERM NATIONAL LABOR RELATIONS BOARD EXPIRING SEPTEMBER 14, 2006, VICE CAROL W. KINSLEY, WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND TERM EXPIRED. ROBERT J. BATTISTA, OF MICHIGAN, TO BE A MEMBER RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: DONNA N. WILLIAMS, OF TEXAS, TO BE A MEMBER OF OF THE NATIONAL LABOR RELATIONS BOARD FOR THE To be vice admiral THE BOARD OF DIRECTORS OF THE CORPORATION FOR TERM OF FIVE YEARS EXPIRING AUGUST 27, 2006, VICE NATIONAL AND COMMUNITY SERVICE FOR A TERM EX- PETER J. HURTGEN. REAR ADM. ROBERT F. WILLARD, 0000

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IN RECOGNITION OF THE 12TH AN- I commend everyone involved in the Teach- pressions on the lives he touched. I wish him NUAL TEACHERS ON AN ers on an Agriscience Bus Program for their continue success and Godspeed! AGRISCIENCE BUS PROGRAM commitment to educate our children on the im- f portance of agriculture and am hopeful they will continue to make a positive impact in the 200TH ANNIVERSARY OF THE HON. J. DENNIS HASTERT TOWN OF OWASCO OF ILLINOIS lives of students and staff for years to come. IN THE HOUSE OF REPRESENTATIVES f HON. JAMES T. WALSH Wednesday, June 12, 2002 TRIBUTE TO DR. WILLIAM O. OF NEW YORK CASON Mr. HASTERT. Mr. Speaker, I rise today to IN THE HOUSE OF REPRESENTATIVES recognize the 12th Annual Teachers on an Wednesday, June 12, 2002 Agriscience Bus Program as well as the in- HON. JAMES E. CLYBURN valuable contributions it has made in expand- OF SOUTH CAROLINA Mr. WALSH. Mr. Speaker, I rise today in ing the understanding of agriculture and IN THE HOUSE OF REPRESENTATIVES recognition of the 200th Anniversary of the agriscience. Town of Owasco. This bicentennial will include Wednesday, June 12, 2002 First launched as a pilot program in June town historical events beginning in June and 1991, the Teachers on an Agriscience Bus Mr. CLYBURN. Mr. Speaker, I rise today to continuing through the year long celebration. Program was developed to include tours and pay tribute to a dear friend and fellow South Settlers began arriving in this scenic area in seminars at a variety of agriscience industries Carolinian, Dr. William O. Cason. On June 30, 1792 and built their homes along the beautiful in Chicago and the Western Suburbs. Tour 2002, ‘‘Bill,’’ as he is commonly referred, will shores of Owasco Lake. The town of Owasco hosts explain the multitude of career opportu- retire from Sumter County School District 17, was officially founded in 1802. During the nities in agriscience and provide tours of their where he served as Superintendent for three town’s early history, dignitaries such as Martin facilities, demonstrating the high-tech nature of challenging but rewarding years. After 34 Van Buren and Washington Irving were enter- the industry. years in public education, it is a retirement tained in this beautiful Cayuga County setting. In 1991, the program included 26 staff well deserved and he will be sorely missed. The jewel of Owasco, perched on the North members from Naperville School District 203. Dr. Cason began his educational career in end of the lake, is what is now known as However, it became evident to those involved Georgia public schools in 1968 as a math and Emerson Park. While many facets of life in that the wealth of information provided by the history teacher at Clinch County High School. Owasco have changed over the past two hun- Program could serve a greater purpose by He also served as an assistant football and dred years, the park has remained a staple of opening up the experience to neighboring basketball coach, an assistant principal and the community. It opened on July 1, 1889, school districts. To date, 504 participants from guidance counselor, and as principal for high boasting a family orientated atmosphere with a 30 school districts, many of which are located schools, where he served for over fourteen merry-go-round and a 350-foot miniature train in my Congressional District, have taken part years. Prior to coming to Sumter School Dis- ride. By the 1890’s the park had a hotel, in the program. trict 17, he was the Superintendent of Schools dance hall, and even began to serve ice The agriculture industry in the State of Illi- in the Colleton County School District in cream cones. The park became the center- nois is of primary important to the economy, Walterboro, South Carolina from 1993–1999. piece of entertainment in Cayuga County and not only to the state, but as one of the largest When Dr. Cason accepted the position of the gem of the Town of Owasco. employers in the U.S. The youth of America, Superintendent of Sumter School District 17, The rich history of Owasco and Emerson and particularly those in Illinois, need current, he came to a district in the throes of scandal Park provides the backdrop for this bicenten- up-to-date, technological backgrounds in the and quickly turned the school system to solid nial celebration. It is my honor to recognize importance of agriculture in their everyday fiscal and educational footing. During his ten- the Town of Owasco and to extend best wish- lives and of the career opportunities available ure, he made several needed changes to the es for many more years that will continue to to them in the industry. personnel division of the school district which contribute to the distinguished history of Ca- As a former high school teacher, I can attest included: increasing the number of insurance yuga County. to the importance of continued innovative pro- options available to employees, supporting the f grams needed to reach our youth. The Teach- development of a comprehensive salary RECOGNIZING VACAVILLE CITY ers on an Agriscience Bus Program enables schedule to ensure equity for non-teaching po- ATTORNEY CHARLES O. educators to share an awareness and appre- sitions, instituted signing bonuses to attract LAMOREE ON THE OCCASION OF ciation for agriculture and agriscience career quality teachers, added personal leave days HIS RETIREMENT opportunities with their students. Participants for employees who were not eligible for annual in the Program have introduced approximately leave. 60,000 students to the fact that agriscience Dr. Cason received a bachelor’s degree in HON. MIKE THOMPSON and its related industries constitute more than secondary education, a master’s degree in OF CALIFORNIA just farming; today it is a highly technical, via- history, a master’s degree in education admin- HON. DOUG OSE ble and sophisticated industry. istration supervision all from Valdosta State Finally, I would like to point out that the con- College, and a doctorate degree in education OF CALIFORNIA tinued success of the Teachers on an administration supervision from Georgia State HON. GEORGE MILLER Agriscience Bus Program is due to the over- University. He is a member of numerous na- OF CALIFORNIA whelming support of the sponsoring organiza- tional, state and local organizations, and will IN THE HOUSE OF REPRESENTATIVES tions, including: the Midwest Dairy Association be retiring to a family of five wonderful chil- of Illinois, DuPage County Fair Association, dren and a loving wife. Wednesday, June 12, 2002 DuPage County Farm Bureau, DuPage Coun- Samuel Johnson said, ‘‘What we hope to do Mr. THOMPSON of California. Mr. Speaker, ty Regional Office of Education, Illinois Land- with ease, we must learn to do with diligence.’’ we rise today to recognize Vacaville, California scape Contractors Association, Naperville Dr. Cason is an exemplar of what Johnson re- City Attorney Charles O. Lamoree, a dedi- Community Unit School District 203, ferred. He was diligent in his strides to make cated public servant who is retiring June 30, Wheatland Plowing Match Association, Sumter School District 17 all that it can be. 2002 after twenty-five years of tremendous DuPage Education to Careers System, 1st Mr. Speaker, I ask you and my colleagues to service to his community. Farm Credit Services of Northern Illinois, Illi- join me today in honoring Dr. Bill Cason. The Mr. Lamoree has been the City Attorney in nois Pork Producers and Illinois Agricultural contributions he made to his community and Vacaville since 1989. During his tenure, he Association Foundation. to the educational system will leave lasting im- wrote the city’s Planned Growth Ordinance

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E1028 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 managing development within the city, rep- for motivation and participatory leadership, David lives in his own home, drives his own resented the city in federal litigation con- and received a bachelor’s degree from the car, and goes to work every day. He has cerning the Fair Labor Standards Act, nego- prestigious Union College in 1859. At the out- worked tremendously hard and overcome tiated and wrote development agreements for break of the Civil War, driven by an ardent be- great obstacles to reach his goals. Please join major city projects, negotiated acquisition lief in the Union, strong ideological passion, me in applauding the remarkable spirit, dedi- agreements for new city water supplies, re- and a devotion to state and nation, William cation, and work ethic of David Wayne Coo- wrote the city’s development impact fee ordi- Tibbits raised a company of the Second Regi- per. His efforts are a reminder of the power of nance, reduced dependence on outside coun- ment, New York Volunteers. In 1863, he re- the human spirit. sel in tort litigation to less than 5% of all cruited the Griswold Cavalry, and with over- f claims and created and implemented a long whelming popularity and support became its TRIBUTE TO DR. LEROY DAVIS, range computerization plan. Colonel. With faith and valor, Tibbits distin- SR. In addition to his duties with the munici- guished himself in various battles and was pality, he has served as President of the So- brevetted Brigadier General in 1864. Although lano County Bar Association, President of the wounded to the point of eventual incapacita- HON. JAMES E. CLYBURN County Counsels’ Association of California, tion from military duties later in life, his brilliant OF SOUTH CAROLINA Committee Member of the County Counsels’ leadership, grit, determination and bravery IN THE HOUSE OF REPRESENTATIVES Benchbook, Member of the League of Cali- won him the rank of Major General at the age Wednesday, June 12, 2002 fornia Cities Legal Advocacy Committee, of twenty-seven. Mr. CLYBURN. Mr. Speaker, I rise today to Member of the League of California Cities Mu- Established in part by Major General Tibbits, pay tribute to a dear friend and fellow South nicipal Law Handbook Editorial Board and Del- the Tibbits Cadets have stood for one hundred Carolinian, Dr. Leroy Davis, Sr. On June 30th egate to the State Bar Association Conference and twenty-five years as a constant reminder Dr. Davis will retire as president of our alma Delegates. of so much more than local history or the life mater, South Carolina State University (SCSU) Mr. Lamoree received special recognition of one great man. Since their inception, the in Orangeburg, South Carolina. when he was named the 1993–94 ‘‘Boss of Tibbits Cadets have exemplified the greatest Dr. Davis is only the second alumnus and the Year’’ by the Solano County Legal Secre- of American values—diligence, compassion, the first Orangeburg native to be inaugurated taries Association. volunteerism, dedication of purpose, loyalty, as president of South Carolina State Univer- Prior to becoming the City Attorney in passion, and courage. The Tibbits Cadets of sity in its 125-year history. Vacaville, he served for seven-and-a-half Troy, New York have wholeheartedly ad- Dr. Leroy Davis, Sr. received a bachelor of years as Solano County Counsel, as Assistant vanced that spirit of united purpose and science degree in biology and a master of City Attorney in Vallejo and Deputy County shared concern that so uniquely defines our science degree in microbiology at SCSU. He Counsel in both Solano and Fresno Counties. glorious American experience; and it is in that matriculated at Purdue University and received Mr. Lamoree completed his undergraduate spirit that I wish to commend the Tibbits Ca- his doctoral degree in molecular biology in work at Sonoma State University and received dets at the conclusion of the year-long cele- 1979. Most of Dr. Davis’ professional career his law degree from the University of Cali- bration of the one hundred and twenty-fifth an- has been spent serving his alma mater at fornia, Davis. He was admitted to the State niversary of their founding. South Carolina State University, where he Bar of California in 1972 and is also admitted f quickly advanced and became a tenured pro- to practice before the U.S. District Court of fessor of biology. He also worked at Appeal and the U.S. District Courts for the HONORING DAVID WAYNE COOPER Brookhaven National Laboratory as a research Eastern and Northern Districts of California. assistant and the National Institutes of Health Mr. Speaker, Charles Lamoree has had a HON. DUNCAN HUNTER where he was an extramural associate. How- long and distinguished career and has had a OF CALIFORNIA ever, his love for his home State and S.C. lasting impact on his community. It is therefore IN THE HOUSE OF REPRESENTATIVES State brought him back to South Carolina. Dr. Davis has served as director of the Of- fitting that we honor him today for his many Wednesday, June 12, 2002 accomplishments and contributions. fice of Institutional Self-Studies, Provost for f Mr. HUNTER. Mr. Speaker, I rise today to Academic Admissions, vice president of Stu- congratulate David Wayne Cooper of my dis- dent Services, and interim president. On April COMMEMORATING THE 125TH ANNI- trict in San Diego for achieving his masters 10, 1996, Dr. Davis became the eighth presi- VERSARY OF THE TIBBITS CA- degree in business administration (MBA) from dent of this exceptional institution. DETS OF TROY, NEW YORK National University. David has fared some While serving as president of South Caro- long and arduous tasks in life, but did not lina State University, Dr. Davis has shown tre- HON. JOHN E. SWEENEY allow these challenges to stop his determina- mendous leadership and innovation. The Uni- OF NEW YORK tion to overcome adversity and fulfill his life versity established its first staff senate, in- IN THE HOUSE OF REPRESENTATIVES ambitions. creased scholarship support in order to recruit David was born with cerebral palsy, which more academically talented freshmen, the first Wednesday, June 12, 2002 resulted in orthopedic and speech disabilities. Emeritus awards to professors have been pre- Mr. SWEENEY. Mr. Speaker, the Tibbits These disabilities would affect many aspects sented, and community service programs in Cadets of Troy, New York, were founded on of David’s life, however, he persevered and the fields of health care and economic devel- August 18, 1876. With strong ideals and a fer- graduated Clairemont High School at the age opment have been put into action. In addition vent belief in community service, the Tibbits of 19. In 1998, David built upon this achieve- to his many accomplishments at South Caro- Cadets have consistently acted with dignity ment by earning a bachelors degree in lina State University, Dr. Davis has spread his and honor in their quest to preserve and share science with a concentration in Information talents to other Universities in the region by the rich history of Troy, New York. Systems from San Diego State University being active in the Southern Association of The Tibbits Cadets by name and deed have (SDSU). Colleges and Schools (SACS). In this organi- perpetuated and honored the memory of Major During his academic pursuits, David worked zation, he serves as Commissioner on the General William Badger Tibbits for the past as a computer programmer at the Science Ap- Commission on Colleges and presents work- one hundred and twenty-five years. And it may plications International Corporation (SAIC) in shops and symposiums, Dr. Davis also holds be through the courageous life story of Major San Diego. At SAIC, David’s duties included memberships in many professional and serv- General Tibbits that we most clearly discover working on the County of San Diego informa- ice organizations including the American the strength, dignity and pride with which the tion systems updates and maintenance con- Council on Education, The American Associa- Tibbits Cadets act—as well as the noble tract. tion for the Advancement of Science, and Ro- ideals they encompass and uphold. While working at SAIC, David was able to tary International. William Badger Tibbits was born on March take advantage of their tuition reimbursement Dr. Davis is husband to the former Christine 31, 1837 in Hoosac, New York. As a young program, earning a graduate degree from Na- McGill of Kingstree, South Carolina and the fa- man, William strove for excellence in all of his tional University in his spare time. On May 12, ther of two children Tonya and Leroy, Jr. endeavors. With a strong work ethic, fervent 2002, David walked across the state at the Throughout his life, Dr. Davis has shown an dedication and a robust thirst for knowledge, Convention Center in San Diego and received unrelenting pursuit and love for education. William Tibbits earned a reputation as a true his MBA, the culmination of a solid work ethic, Through his example of diligence and perse- and honest man, cultivated a brilliant capacity dedication, and triumph over adversity. verance in his studies and as an educator, Dr. CONGRESSIONAL RECORD — Extensions of Remarks E1029 Leroy Davis has touched many lives, and has gifted children. There Anne demonstrated Oswego. This location was the site of numer- inspired students as well as peers. dedication to fostering the talents of special ous Indian Councils and served as the center Mr. Speaker, I ask you and my colleagues children. She subsequently took on a long- of the Iroquois Confederacy. It was here that to join me in recognizing my good friend and term position with Cheltenham School District. early French and English explorers, traders a man that I greatly admire and deeply re- Here she worked diligently to implement pro- and military officers met with the Indians and spect. Dr. Leroy Davis, Sr. has served his grams that she felt would cultivate the gifts of matched eloquence with that of the Indian ora- community and State well and has provided every student. Most recently, Anne has con- tors. outstanding leadership to South Carolina State tributed tremendously to Cheltenham by taking The town flourished in its early days and University over the years. I wish him good luck on the duties of District Grant Development continues to grow at a rapid pace. In the and Godspeed in what I know will be a very Specialist. In this capacity she has affected all 175th year history of Clay the town population active retirement. grade levels by writing million-dollar grant pro- has grown from 700 to over 58,000, and Clay f posals. continues to expand. It remains Onondaga Throughout her teaching career Anne County’s most populated town today. It is my RECOGNIZING WEST GROUP touched the minds and hearts of countless honor to recognize the town of Clay and ex- students and parents. I would like to thank tend best wishes for many more years of dis- HON. BILL LUTHER Anne for her unmatched dedication to the edu- tinguished history in Onondaga County. OF MINNESOTA cation of our leaders of tomorrow. We are grateful to have such a distinguished citizen in IN THE HOUSE OF REPRESENTATIVES f our community. Wednesday, June 12, 2002 f TRIBUTE TO DR. NORMAN Mr. LUTHER. Mr. Speaker, I would like to SAMUELS TRIBUTE TO KATIE MARBURGER take this opportunity to recognize an employer in my district that has gone above and beyond HON. DONALD M. PAYNE its duty in showing support for military reserv- HON. JAMES A. TRAFICANT, JR. OF NEW JERSEY ists called to action. OF OHIO West Group has been extremely generous IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES to the men and women who have been called Wednesday, June 12, 2002 to duty in this time of conflict. Wednesday, June 12, 2002 When Petty Officer Theodore Cabbage was Mr. TRAFICANT. Mr. Speaker, as Rep- Mr. PAYNE. Mr. Speaker, I rise today to activated, for example, West Group imme- resentative to the citizens of the 17th Con- recognize one of our country’s great edu- diately put into place a package of benefits to gressional District of Ohio, it brings me great cators, Dr. Norman Samuels. A native of Mon- support his family until his return. In addition, pleasure to pay tribute to Katie Marburger, on treal, Quebec, Dr. Samuels has been an inte- West Group agreed to meet the difference be- this date, June 12, 2002, as she is recognized gral part of the Newark, New Jersey commu- tween Petty Officer Cabbage’s civilian and for her scholastic achievements in History, on nity for the past 35 years. As of June 30, military pay for a period of 5 years. National History Day. 2002, Dr. Samuels will resign as provost of The outstanding patriotism shown by West Katie Marburger, a student at Edison Junior the Newark Campus of Rutgers, leaving be- Group helps to ease the financial worry most High School in Niles, Ohio, was one of seven- hind him a campus that will be forever military reservists feel when they are away teen students chosen out of a half million changed because of his presence. from home. In turn, individuals like Petty Offi- across America, to display and present her Upon his arrival in Newark in 1967, Dr. cer Cabbage are better able to focus on the history project at the Smithsonian Institution’s Samuels began his career at Rutgers as an tasks before them, ensuring that our country is National Museum of American History. Katie’s assistant professor of political science. From safe and secure. It is an honor and privilege project is titled ‘‘. . . And Justice for All? The there, he rose to associate dean and visiting to represent West Group in the U.S. Con- Imprisoning of the Japanese Americans: a fellow at the Woodrow Wilson School of gress. I ask everyone to join me in com- Revolution of Discrimination.’’ The National Princeton University, being appointed as act- mending their generous actions. History Day Program allows students to create ing provost in 1982. Upon his resignation, Dr. f exhibits, documentaries and performances, by Samuels will return to the classroom. using their critical thinking and research skills In 1967, Rutgers was not the place that it is CONGRATULATIONS MRS. ANNE in the subject of history. today. Much like the rest of the country, New- SPECTOR I congratulate Katie as she is honored for ark was erupting in race riots and Rutgers was per presentation, and commend her for her a predominantly white university. When Dr. HON. JOSEPH M. HOEFFEL dedication and commitment. I join with the citi- Samuels arrived he became a catalyst for OF PENNSYLVANIA zens of this district in wishing Katie well in all change at the university from lending support her future endeavors, and may God bless her IN THE HOUSE OF REPRESENTATIVES to the school’s African-American students to in the years to come. seeing that diversity flourished at Rutgers. The Wednesday, June 12, 2002 f notion of a segregated society was foreign to Mr. HOEFFEL. Mr. Speaker, I rise today to Dr. Samuels and he made it his mission to 175TH ANNIVERSARY OF THE congratulate and recognize Mrs. Anne Spector see that disadvantaged students, students of TOWN OF CLAY of Cheltenham, Pennsylvania. For over 30 color, and students of foreign nationalities years, Mrs. Spector has taught at every level were all given the same high-quality edu- in the Philadelphia area from kindergarten to HON. JAMES T. WALSH cation. His goal was to create a unified cam- third year law students. I recognize her today OF NEW YORK pus life. As a result of his efforts Rutgers- specifically for her endless dedication to the IN THE HOUSE OF REPRESENTATIVES Newark is recognized as one of the country’s children of the Cheltenham School District. most diverse universities. Wednesday, June 12, 2002 Anne embarked on her remarkable teaching Dr. Samuels not only has the drive to edu- career in 1967 at Bartlett Junior High School Mr. WALSH. Mr. Speaker, I rise today in cate our country’s young people but also to in- in South Philadelphia. In 1972, Anne took her honor of the 175th anniversary of the town of still in them the necessary values for the fu- only sabbatical from teaching to give birth to Clay. The first settler arrived in the township of ture. He has sought to equip them with the Caralyn, her daughter, and Michael, her son. Clay in 1793, and the town was the scene of tools necessary to become the future leaders, While at home, caring for her children, Anne much of Central New York’s notable early his- thinkers, and doers of the next generation. He attained her Reading Specialist Certification tory. Clay became its own entity on April 16, has inspired greatness through his greatness. and a variety of master’s degrees. She also 1827. Mr. Speaker, I know that my colleagues here served as co-president of the Wyncote Parent The town was named in honor of Henry in the U.S. House of Representatives join me Teacher Organization. Clay, the great statesman from Kentucky, and in recognizing the work of Dr. Samuels and Anne returned to full time teaching at Nor- is surrounded by three beautiful Central New wish him the best for a healthy and happy fu- wood-Fontbonne as the head of a program for York rivers—the Oneida, Seneca and ture. E1030 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 MYCHAL JUDGE POLICE AND FIRE Banda Escolar De Guayanilla, a specular elected as the top labor leader in San Fran- CHAPLAINS PUBLIC SAFETY OF- band of young people from Guayanilla, Puerto cisco in 1984 and has remained so since then. FICERS’ BENEFIT ACT OF 2002 Rico who will play in the 44th annual National As secretary-treasurer of the San Francisco Puerto Rican Parade. The legendary parade, Labor Council since 1985, he currently rep- SPEECH OF to be held on June 9th in New York City, is resents 75,000 workers and 125 different HON. JOSEPH CROWLEY the largest celebration of Puerto Rican culture unions. OF NEW YORK in the United States. Since his early years as a member of the IN THE HOUSE OF REPRESENTATIVES This year, I have the distinct honor of being Department Store Employees Union, Walter the parade’s Grand Marshall. I can not ex- Johnson has dedicated his time and talents to Tuesday, June 11, 2002 press how much I appreciate this honor. I am improving the lives of his fellow workers. In Mr. CROWLEY. Mr. Speaker, I rise in strong especially proud to be Grand Marshall of the 1958, Walter Johnson played an integral role support for the Mychal Judge Police & Fire parade this year, because it will be the Banda in helping the first African-American woman to Chaplains Public Safety Officers’ Benefit Act. Escolar De Guayanilla’s fifth year participating. secure a position behind the counter at Wool- This legislation would ensure that those This exceptional band marched in the parade worth’s. brave public safety officers who leave behind in 1987, 1988, 1990, and 1992. Today, Walter Johnson continues to ensure no spouses, children or parents will still be eli- Mr. Speaker, the Banda Escolar De that workers have the quality of life they de- gible for the Public Safety Officers’ Benefit. Guayanilla is made up of about 200 students serve with secure jobs, equitable wages and This legislation would effect several of the vic- from Guayanilla who spend nearly all of their quality benefits. Walter regularly works with tims of the tragedy of September 11 including spare time in rigorous practice, doing drills to community groups, elected officials and reli- Father Mychal Judge. improve their performance. These young peo- gious leaders to advocate for workers’ rights Appointed in 1992 as the Catholic Chaplain ple are exceptionally talented and have been both locally and globally, including in such of the New York City Fire Department at the recognized throughout the country for their countries as China and South Korea. Walter strong urging of the uniformed members of the precise marching, discipline, and excellent Johnson also serves as a member of the Eco- Fire Department, Father Judge dedicated him- presentation. Not only must these young peo- nomic Forum Board of Directors where he self to helping others and counseling to the ple hone such difficult skills and travel all over works to enhance the quality of life for all resi- members and families of members of the New the country to march, they must maintain their dents of the Bay Area. York City Fire Department—a Department that schoolwork as well. As a result, they develop Walter Johnson’s commitment to his fellow has seen a tragically high number of casual- unmatched time-management skills and self- human beings goes far beyond his work within ties this year, previous to the events of 9–11. discipline at a young age. Only the best march the labor movement. A heroic and courageous Taking on this role was characteristic of Fa- in this band and that is why they have been cancer survivor, Walter Johnson has added ther Judges lifetime of service that began singled out so many times. his personal testimony to the fight against when he entered the seminary at age 14. Dur- In 1998, the Banda Escolar De Guayanilla breast cancer, helping to lead rallies on behalf ing his 41 years as a priest, Father Judge tire- became the first Latin American band to of the Breast Cancer Fund. Walter also serves lessly served the sick, homeless, poor, and march in the Macy’s Thanksgiving Day Pa- on the boards of various local organizations disabled. He diligently cared for people living rade, perhaps the most famous parade in the including the United Way of the Bay area, the with AIDS, worked for peace in Northern Ire- world. They also participated in the well-known Bay Area Sports Organizing Committee and land, and tended to the families of the victims Tournament of Roses Parade in 2001. Along Our Redeemers Lutheran Church. of TWA Flight 800, which exploded over Long with these major accomplishments, the Banda Mr. Speaker, Walter Johnson is an out- Island in July of 1996 as well as provided for Escolar De Guayanilla has marched in the standing individual and a respected labor and New York Firefighter families during both Walt Disney World Parade in Orlando, the community leader. I ask my colleagues to join times of joy and sorrow. Thanksgiving Parade in Philadelphia, and doz- me in honoring this distinguished man for all On September 11, Father Judge died as he ens of parades throughout Latin America. he has done and continues to do. We are a lived—serving others. He was among the first Mr. Speaker, I ask my colleagues to please better county, a better people because of him. units responding at the World Trade Center join me in honoring the Banda Escolar De f and, while advised to move to a safer location, Guayanilla, a marching band of dedicated he like so many of his comrades in the Fire IN HONOR OF BARBARA JOHNSON youth who will grace this year’s Puerto Rican Department, refused to leave his compatriots. Day Parade. When the firefighters entered the building, Fa- HON. ROBERT MENENDEZ ther Judge was at their side, where he re- f OF NEW JERSEY mained offering comfort and absolution until TRIBUTE TO WALTER JOHNSON ON IN THE HOUSE OF REPRESENTATIVES the end. We all remember the haunting picture BEING HONORED BY THE SAN Wednesday, June 12, 2002 of Father Judge being carried out of the MATEO CENTRAL LABOR COUN- Mr. MENENDEZ. Mr. Speaker, I rise today wreckage of the World Trade Center. CIL to honor Barbara Johnson for her 40 years as In addition to the New York Fire department, an educator and leader at Washington School. many of us here in Congress recognize and HON. ANNA G. ESHOO Her retirement will be celebrated on June 14, acknowledge his good works and have been OF CALIFORNIA 2002, at Washington School, the very place working with the White House for the post- where generation after generation of students humous awarding of the presidential Medal of IN THE HOUSE OF REPRESENTATIVES Wednesday, June 12, 2002 benefited from her guidance. Freedom to Father Judge. Barbara Johnson dedicated herself to a life That is why I am so pleased that such a Ms. ESHOO. Mr. Speaker, I rise today to of teaching, greatly influencing the lives of compassionate and vital piece of legislation is honor Walter Johnson, a respected citizen of Union City residents. She started her career named after such a compassionate and vital San Mateo County, California, who is being as a fourth grade teacher at Washington human being. honored by the San Mateo Central Labor School in 1962. In 1971, she became a help- Therefore, I urge my colleagues to pass this Council at its 23rd Annual COPE Benefit Din- ing teacher/curriculum resource teacher, was legislation that serves as a small token of ap- ner on July 18, 2002. eventually promoted to assistant principal in preciation to those who perish in the line of Walter Johnson has been a visionary leader 1992, and will retire as Washington School’s duty from a grateful nation. within the labor movement for more than 40 esteemed principal. f years. His efforts began more than a half cen- Barbara Johnson has left a lasting legacy at TRIBUTE TO BANDA ESCOLAR DE tury ago when he joined the Department Store Washington School, having introduced the fol- GUAYANILLA Employees Union Local 1100 after securing a lowing outstanding programs: violin program, job at Sears Roebuck as an appliance sales- marching band, multicultural extravaganza, HON. JOS´E E. SERRANO person. By 1957, Walter had become the busi- parent dinners, field day picnics, and peer me- ness agent of the union and was elected OF NEW YORK diation. president the following year. In 1964, Walter Over the past four decades, Barbara John- IN THE HOUSE OF REPRESENTATIVES Johnson was elected to the union’s top posi- son has devoted her life to the students of Wednesday, June 12, 2002 tion of secretary-treasurer and was subse- Washington School. She advocated on their Mr. SERRANO. Mr. Speaker, it is with great quently reelected to the position 11 times. It behalf, served as an educational leader, de- pride that I rise today to pay tribute to the should come as no surprise that Walter was veloped the curriculum, and maintained an CONGRESSIONAL RECORD — Extensions of Remarks E1031 open door policy for her staff, students, and businessmen, teachers, city workers, and the estate tax on all but 36 Minnesota estates that parents. Her willingness to be an active part of National Guard joined together and planned owned estate tax. the lives of the students, parents, and staff, the first Halloween celebration. This celebra- I found it embarrassing to open the Wash- her innovative new programs, and her years of tion provided a fun and safe environment in ington Post today to see that based on the commitment will never be forgotten. which to enjoy Halloween and has been a personal assets of the Bush administration Today, I ask my colleagues to join me in major community event ever since. Due to the Cabinet, a full repeal of the estate tax will honoring Barbara Johnson for 40 years of celebration’s size and community significance, save the Bush Cabinet $98–$332 million in es- service to Washington School. She will be Anoka first proclaimed itself the ‘‘Halloween tate tax. The President has taken his full re- missed, and remembered for her commitment Capital of the World’’ in 1937. peal message to family farmers in the Midwest and hard work on behalf of Washington The community’s ongoing commitment to telling them he’s fighting for them. Yet family School’s students and staff. At Washington the celebration is clearly reflected in year- farmers rarely pay estate tax. In fact, last year School, her legacy will live on forever. round planning that includes citizens of all the American Farm Bureau Federation could f ages. In this way, the Halloween celebration is not cite a single example of a farm lost be- a unique civic asset and Anoka certainly lives cause of estate taxes when pressed. RECOGNIZING MS. VIRGINIA W. up to its title as ‘‘Halloween Capital of the So far, the Republicans’ fiscal plan has IMPROTA World.’’ meant that we have gone from projected sur- f pluses of $5.6 trillion to deficits as far as the HON. JAMES R. LANGEVIN eye can see—not to mention the fact that un- PERMANENT DEATH TAX REPEAL OF RHODE ISLAND less Congress takes action to balance the ACT OF 2002 IN THE HOUSE OF REPRESENTATIVES budget, we will have to raise the federal debt limit to ensure that the government does not Wednesday, June 12, 2002 SPEECH OF default on its current debts. Mr. LANGEVIN. Mr. Speaker, I rise today to HON. BETTY McCOLLUM This year alone, the budget deficit, exclud- recognize Ms. Virginia W. Improta, an excep- OF MINNESOTA ing the Social Security trust fund, is estimated tional history teacher and role model from IN THE HOUSE OF REPRESENTATIVES to be $314 billion. Over the next 10 years, the Johnston, RI. Ms. Improta has been named non-Social Security deficit will total $2.6 tril- Thursday, June 6, 2002 one of eight national finalists for the Richard lion. If these projections are correct, the budg- T. Farrell Teacher of Merit Award. This na- Ms. MCCOLLUM. Mr. Speaker, before Con- et is on course to deplete the entire Social Se- tional award is presented every year to an ed- gress passes legislation placing an enormous curity surplus and the entire Medicare surplus ucator who develops and uses innovative and drain on the federal budget in future years, we between now and 2012. creative teaching methods to enhance stu- first need to address the serious problems f dents’ interest in history. As a teacher at Nich- with funding homeland defense, protecting olas A. Ferri Middle School in Johnston, RI, education, the environment, Social Security NATIONAL HISTORY DAY she has shown exemplary commitment to and Medicare. NATIONAL CONTEST making history education engaging and excit- While the Republican bill permanently re- ing, while involving her students in the Na- peals the estate tax, it provides no immediate HON. TED STRICKLAND tional History Day Program. relief for small, family-owned estates which OF OHIO National History Day is a yearlong program are the ones most in need. Make no mis- IN THE HOUSE OF REPRESENTATIVES in which students explore historical topics re- take—repealing the estate tax in 2011 will not Wednesday, June 12, 2002 stimulate the economy in 2002. lated to an annual theme. Participants qualify Mr. STRICKLAND. Mr. Speaker, I want to I support more immediate estate tax relief for national competition after competing in commend and congratulate two students from and voted for the substitute that freezes the several local and state competitions. In pre- Ohio who have been chosen to present existing maximum estate tax at the current paring her students for the program, Ms. projects at the National History Day national rate of 40 percent and increases the estate Improta’s work ethic and research skills pro- contest, which is taking place this year from tax credit to $3 million, $6 million for couples, vided students with the tools necessary to be June 9 through the 13. Alexandria West, who beginning in 2003, up from $1 million under successful in competition. is from Gallipolis, OH, will present her project, current law. Mr. Speaker, I find it heartening that there ‘‘Amistad: From Freedom and Back,’’ and are educators in this country who devote so I stand today in opposition to H.R. 2143, to make repeal of the estate tax permanent. Katie Marburger, who is from Niles, OH, will much time and effort to shaping the minds of present an exhibit called ‘‘ . . . And Justice our young people. I hope you and our col- Under last year’s Republican tax bill, repeal of the estate tax is slowly phased in until 2010. for All? The Imprisoning of the Japanese leagues will join me in recognizing Ms. Virginia Americans: A Revolution in Discrimination.’’ Improta for her dedication to educating the po- However, because Republicans put a sunset on all of their tax-cut provisions to hide their These projects reflect this year’s National His- tential leaders of tomorrow. tory Day theme of ‘‘Revolution, Reaction, Re- f true costs, the estate tax will return to the 2001 levels of taxation in 2010. form in History’’ and were selected from more ANOKA, MINNESOTA: HALLOWEEN This permanent repeal of the estate tax than half a million students across America. The National History Day program seeks to CAPITAL OF THE WORLD benefits only the very wealthiest in our society give students the critical thinking and research while endangering our long-term economic skills that are essential for excellence in all stability and the solvency of Social Security HON. BILL LUTHER subject areas. Students research history topics and Medicare. Once again, the House Repub- OF MINNESOTA of their choice related to an annual theme and lican Leadership has shown its true priorities IN THE HOUSE OF REPRESENTATIVES create exhibits, performances, documentaries, by helping 22,000 families at the very top of and papers, which they may enter into com- Wednesday, June 12, 2002 the income scale while letting 35 million sen- petitions at the district, state, and national lev- Mr. LUTHER. Mr. Speaker, I would like to iors wait for help with their prescription drug els. The program annually engages more than recognize the city of Anoka, MN, for their long- bills. half a million participants in grades 6 through standing tradition of community oriented Hal- Currently, the estate tax applies to fewer 12 in 49 States and the District of Columbia. loween festivities. On May 20, 2002, the city than 2 percent of all estates—less than 50,000 council of Anoka, MN, reaffirmed their procla- each year. In addition, family-owned busi- f mation of Anoka as ‘‘Halloween Capital of the nesses and farms are already eligible for spe- CONGRATULATING DR. ARUN N. World.’’ Celebrating Halloween as a commu- cial tax treatment under current law. NETRAVALI nity for over 80 years, the people of Anoka are Families in Minnesota’s Fourth District want proud of their unique tradition. Anoka is sound investments in our future, protecting HON. MICHAEL FERGUSON thought to be the first to put on a citywide Social Security and Medicare, and responsible OF NEW JERSEY celebration and parade to provide families with tax cuts that provide relief now. For example, IN THE HOUSE OF REPRESENTATIVES alternative activities and fun on Halloween. the average Minnesota gross estate for tax Local historians have traced the Anoka Hal- purposes of $5 million or more in 1999 was Wednesday, June 12, 2002 loween tradition back to its initial celebration in approximately $586,000. I supported a $5 mil- Mr. FERGUSON. Mr. Speaker, I rise today 1920. That year, local civic organizations, lion exemption that would have eliminated the to congratulate Dr. Arun N. Netravali on being E1032 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 named a 2001 National Medal of Technology This is the anniversary of the Indian govern- and elsewhere. In March 2000, while former Laureate. ment’s brutal military attack on the Golden President Clinton was visiting India, the In- Given each year by the President, the Na- Temple and 38 other Sikh temples through dian government murdered 35 Sikhs in the Punjab, from June 3–6, 1984. More than 20,000 village of Chithisinghpora, Kashmir and tional Medal of Technology is the highest Sikhs were killed in those attacks, known as tried to blame the massacre on alleged mili- honor that our country can bestow upon Amer- Operation Bluestar. These martyrs laid down tants. The Indian media reported that the ica’s innovators. Enacted by Congress in their lives to lay the foundation for police in Gujarat were ordered by the gov- 1980, the National Medal of Technology was Khalistan. On October 7, 1987, the Sikh Na- ernment to stand by and not to interfere first awarded in 1985 to honor those scientists tion declared its homeland, Khalistan, inde- with the massacre of Muslims there. who through their work push the bounds of pendent. ‘‘Guru gave sovereignty to the Sikh Na- technology with the goal of benefiting human- ‘‘We thank all the demonstrators who tion,’’ Dr. Aulakh said. ‘‘The Golden Temple came to this important protest,’’ said Dr. ity. massacre reminded us that if Sikhs are going Gurmit Singh Aulakh, President of the to live with honor and dignity, we must have Dr. Netravali’s career achievements are cer- Council of Khalistan. ‘‘These martyrs gave a free, sovereign, independent Khalistan,’’ he tainly deserving of the highest acclaim. He is their lives so that the Sikh Nation could live said. a pioneer in the field of digital technology. in freedom,’’ Dr. Aulakh said. ‘‘We salute Serving from 1999 to 2001 as the ninth presi- them on Khalistan Martyrs’ Day,’’ he said. f ‘‘As Sant Bhindranwale said, the Golden dent to Bell Labs’ history, Dr. Netravali is cur- PASSING OF W. BAIN PROCTOR, rently the company’s chief scientist and has Temple attack laid the foundation of Khalistan.’’ JR. been the head of the research and develop- Sikhs ruled Punjab until 1849 when the ment team working on Bell Labs’ high defini- British conquered the subcontinent. Sikhs tion television (HDTV) effort. He has authored were equal partners during the transfer of HON. MAC COLLINS more than 170 technical papers and co-au- power from the British. The Muslim leader OF GEORGIA thored three books. He holds more than 70 Jinnah got Pakistan for his people, the IN THE HOUSE OF REPRESENTATIVES patents in the areas of computer networks, Hindu leaders got India, but the Sikh leader- Wednesday, June 12, 2002 human interfaces to machines, picture proc- ship was fooled by the Hindu leadership promising the Sikhs would have ‘‘the glow of Mr. COLLINS. Mr. Speaker, on June 5th, essing and digital television. freedom’’ in Northwest India and the Sikhs Spalding County and the City of Griffin, Geor- With great minds like Dr. Netravali working took their share with India on that promise. gia lost a dear friend and public servant. W. along the frontier of technology, we can only No Sikh representative has ever signed the Bain Proctor, Jr. tirelessly worked for the bet- expect to be amazed by what will be achieved Indian constitution. terment of the people of Griffin, serving as a in the near future. I commend Dr. Netravali for Recently, former Senate Majority Leader City Commissioner, County Commissioner, his lifelong dedication to science and his unre- George Mitchell (D–Me.) said, ‘‘The essence and on the boards of the Griffin-Spalding lenting pursuit of the unimaginable. of democracy is the right to self-determination.’’ The minority nations of South Asia County Recreational Board and the Georgia f need freedom. ‘‘Without political power na- State Recreational Board. IN MEMORY OF INDIA’S ATTACK tions perish. We must always remember Mr. Proctor was a servant of the people in these martyrs for their sacrifice,’’ Dr. ON A RELIGIOUS SHRINE the true sense of the word. He never regarded Aulakh said. ‘‘The best tribute to these mar- praise for his actions or sought credit, often tyrs would be the liberation of the Sikh HON. DAN BURTON homeland, Punjab, Khalistan, from the occu- working behind the scenes to get things done. pying forces,’’ he said. ‘‘That must be the Bain was a consistent force for positive gov- OF INDIANA only objective,’’ he said. ‘‘We should use the ernment action. Often he would call or write to IN THE HOUSE OF REPRESENTATIVES opportunity presented by the situation in me to let me know how people in his area felt Wednesday, June 12, 2002 South Asia to liberate our homeland.’’ about a particular issue. Nothing in that is un- The Golden Temple attack launched a usual. As Members of Congress, we hear from Mr. BURTON of Indiana. Mr. Speaker, as campaign of genocide against the Sikhs that hundreds of constituents on a regular basis. you may know, this week marked the anniver- belies India’s claims that it is a democracy. What made Bain’s contacts memorable and sary of India’s June 1984 attack on the Gold- The Golden Temple attack made it clear effective was that he seldom tried to influence en Temple in Amritsar, the seat of the Sikh re- that there is no place for Sikhs in India. your decision on legislation in a particular way, ligion. This is the equivalent of attacking the Since 1984, India has engaged in a campaign based on any bias he may have had. He was Vatican of Mecca. of ethnic cleansing in which tens of thousands of Sikhs were murdered by the Indian simply satisfied to make sure that I knew how In the attack, which also included attacks on police and security forces and secretly cre- the people of Griffin felt. As such, whenever 38 other Sikh temples (known as Gurdwaras), mated after declaring them ‘‘unidentified.’’ he did have a position to advocate, I made more than 20,000 Sikhs were killed, including The Indian Supreme Court described this sure to listen. Sant Jarnail Singh Bhindranwale, a Sikh polit- campaign as ‘‘worse than a genocide.’’ Gen- In addition to his steady influence on local ical leader. The Indian government hoped that eral Narinder Singh has said, ‘‘Punjab is a public policy, Bain was involved in the more by murdering Bhindranwale, it would end the police state.’’ U.S. Congressman Dana Rohr- charitable side of his community, serving on Sikh Nation’s aspirations for freedom, but as abacher (R–Cal.) has said that for Sikhs, the boards of the Salvation Army and the Bhindranwale himself said, the attack ‘‘laid the Kashmiri Muslims, and other minorities ‘‘India might as well be Nazi Germany.’’ American Cancer Society, he was a member foundation of Khalistan,’’ the independent Sikh According to a report last year by the of the Rotary Club, and a Navy veteran of the homeland. Movement Against State Repression, India Vietnam War who helped to build a memorial I would like to extend my sympathies to all admitted that 52,268 Sikh political prisoners to the brave men and women who laid down Sikhs on this occasion and I would like to let are rotting in Indian jails without charge or their lives in that conflict. them know that many of us grieve with them trial. Many have been in illegal custody Not only did Bain lead by example, he did at this brutal atrocity committed against them. since 1984. In February, 42 Members of the a great job of instilling his love of community The Council of Khalistan recently led a com- U.S. Congress wrote to President Bush to get these Sikh prisoners released. MASR report and service to those close to him. During memoration of the Golden Temple attack. I quotes the Punjab Civil Magistracy as writ- Bain’s funeral, his daughter Heather implored would like to place the report of that coming ‘‘if we add up the figures of the last few the filled-to-capacity room to pick up the torch memoration into the RECORD for the informa- years the number of innocent persons killed her father had passed. ‘‘On behalf of Dad and tion of my colleagues. would run into lakhs [hundreds of thousands.]’’ the rest of the family, I ask you to be a part SIKHS OBSERVE KHALISTAN MARTYRS DAY— Indian security forces have murdered over of this community. Get involved and remain in- SIKHS NEVER FORGIVE OR FORGET ATTACK 250,000 Sikhs since 1984, according to figures volved. He would not have gone on if he did ON GOLDEN TEMPLE compiled by the Punjab State Magistracy not have faith in us,’’ Heather urged. GOLDEN TEMPLE ATTACK LAID FOUNDATION OF and human-rights organizations. These fig- Bain Proctor lived a life of silent leadership. KHALISTAN ures were published in The Politics of Geno- He was a steady force in a turbulent world. He WASHINGTON, D.C., June 1, 2002.—It is a cide by Inderjit Singh Jaijee. India has also will be missed by his community, his family, Sikh tradition and Sikh history that Sikhs killed over 200,000 Christians in Nagaland never forgive or forget the attack on the since 1947, over 80,000 Kashmiris since 1988, and those of us who were close to him. I Golden Temple, the Sikh Nation’s holiest and tens of thousands of Tamils, Bodos, thank him and commend him for his efforts on shrine. In that spirit, Sikhs from all over the Dalits (the aboriginal people of the subconti- behalf of the people of Griffin and I thank him East Coast gathered in Washington, D.C. nent labelled ‘‘Untouchables’’) as well as infor his insights and advice to me as a law- today to observe Khalistan Martyrs Day. digenous tribal peoples in Manipur, Assam maker. I ask God’s blessing on Bain’s family CONGRESSIONAL RECORD — Extensions of Remarks E1033 during their time of grief, and urge everyone Colonel Turner has demonstrated his out- Mr. Speaker, I rise today to thank Luther who hears this to follow Heather’s urging and standing tactical and operational expertise in Khachigian for his many years of devoted pick up Bain’s torch of community service. numerous command and staff positions over- service to agriculture and his participation on f seas and in the continental United States. the Boards of the California Grape Rootstock Continually serving in positions of ever-in- Improvement Commission and the California MEMORIAL TRIBUTE AND EXTOL creasing responsibility, the highlights of his ca- Grape Rootstock Research Foundation. I in- TO THE CITY OF LYNWOOD, reer include serving as a company and Bat- vite my colleagues to join me in wishing Lu- CALIFORNIA talion Commander with the 82d Airborne Divi- ther many years of continued success. sion, regimental tactical officer at West Point, f commander of the Infantry Training Brigade, HON. JUANITA MILLENDER–McDONALD IN MEMORY OF MEDAL OF HONOR OF CALIFORNIA and special assistant to the Chairman of the RECIPIENT GINO MERLI IN THE HOUSE OF REPRESENTATIVES Joint Chiefs of Staff. Indicative of the quality of Colonel Turner’s Wednesday, June 12, 2002 leadership, management, and interpersonal HON. DON SHERWOOD Ms. MILLENDER-MCDONALD. Mr. Speaker, skills, was the fact that he was specially se- OF PENNSYLVANIA whereas, the city of Lynwood, California, was lected to serve as the Chief of the Army’s IN THE HOUSE OF REPRESENTATIVES incorporated in 1921, when new residents Congressional Liaison Office in the U.S. Wednesday, June 12, 2002 flocked to the area because of its great land House of Representatives. As such, he has Mr. SHERWOOD. Mr. Speaker, I rise to and plentiful water; and been responsible for maintaining liaison with honor and remember an American hero .–.–. Whereas, since Lynwood’s inception, the 435 Members of Congress, their personal World War II Medal of Honor recipient Gino city has shown tremendous strength in com- staffs, and 20 permanent or select legislative Merli. Mr. Merli passed away yesterday at his munity involvement and has overcome many committees. Over the past year, Abe devoted home in Peckville, Pennsylvania, at the age of obstacles that challenged the young city; and himself to getting to know over 180 members 78. The son of a coal miner, Gino Merli lived Whereas, in the 1930s, Lynwood faced a personally. His dedication, candor and profes- a life defined by the words ‘‘service’’ and ‘‘sac- devastating earthquake and severe economic sionalism while serving in this capacity has rifice’’. hardship during the Great Depression, yet the earned him the reputation of being the best At a time when America was at war, much community was rebuilt, supplying construction source on Capitol Hill to resolve issues per- like today, Mr. Merli answered his internal call jobs for unemployed local citizens; and taining to the Army. to service and enlisted in the Army, even be- Whereas, Lynwood grew rapidly through the Upon leaving us, Colonel Turner, already fore graduating from high school. He was a economic boom of the 1940s and served as a selected and confirmed for promotion to Briga- teenage machine gunner in September of settling place for returning World War II vet- dier General, will return home to the 82d Air- 1944, when, in the vicinity of Sars la Bruyere, erans; and borne Division, where he will continue to serve Belgium, his company was overrun by the su- Whereas, in 1961, Lynwood won the Na- our nation as Assistant Division Commander. perior firepower and numbers of an attacking tional All-American City Contest and 22 That great All-American Division could not German force. Private First Class Merli and Lynwood schools captured Freedom Founda- hope for the stewardship of a better leader his assistant gunner resolutely held their position Awards; and than Abe Turner. tion covering the withdrawal of his fellow sol- Whereas, through the years, Lynwood has Accordingly, I invite my colleagues to join in diers and blunting the attack of the enemy. grown into a multi-racial, multi-ethnic, and offering our heartfelt thanks to Col. Abraham During the night, the Germans assaulted multi-lingual community representative of a di- J. Turner for his selfless service. He rep- Pfc. Merli’s position killing his assistant gunner verse United States; and resents the very best that our great Nation has and capturing the position. Pfc. Merli feigned Whereas, Lynwood was invigorated during to offer. We wish Abe and his wife, Linda, death by slumping down aside his assistant the 1990s with many new community develop- continued success and happiness in all of gunner and endured many bayonet thrusts to ments, including a new state-of-the-art high their future endeavors. determine if he and his gun crew were out of school, a youth center, and the Rosa Parks f action. When the Germans moved on, he Transit Center. would jump back to his machine gun and en- Now therefore, be it recognized that Con- HONORING LUTHER KHACHIGIAN gage the enemy with fire. Throughout the gresswoman JUANITA MILLENDER-MCDONALD night, Pfc. Merli remained with his weapon proudly recognizes the city of Lynwood, Cali- HON. GEORGE RADANOVICH and repeated this process several times until fornia for the 80th Anniversary of its incorpora- OF CALIFORNIA daybreak. As morning dawned, the Germans tion and as a flourishing, multi-cultural commu- IN THE HOUSE OF REPRESENTATIVES had suffered such heavy losses that 700 sur- nity that is representative of an increasingly di- Wednesday, June 12, 2002 rendered. Pfc. Merli’s commanding officer verse United States. found him still at his weapon, covered in his f Mr. RADANOVICH. Mr. Speaker, I rise assistant gunner’s blood, with 52 enemy dead today to honor Luther Khachigian for his many around his position. A TRIBUTE TO COL. ABRAHAM J. years of service as a board member of the When informed by his commanding officer TURNER California Grape Rootstock Commission and that he would be recommended to receive the the California Grape Rootstock Research Congressional Medal of Honor, Pfc. Merli stat- HON. BENJAMIN A. GILMAN Foundation. In January, Mr. Khachigian retired ed that his assistant gunner who had made OF NEW YORK from his service on these boards, but remains the ultimate sacrifice should be the recipient. IN THE HOUSE OF REPRESENTATIVES an active member of the organizations and the He said that his gunner was the ‘‘true’’ hero. agriculture community. Wednesday, June 12, 2002 Pfc. Merli’s only request was to attend church. Luther graduated from the University of Cali- This moment defined the courage, integrity Mr. GILMAN. Mr. Speaker, today, I am fornia, Davis, with a degree in pomology and and conviction of young Merli. He dem- pleased to recognize the outstanding service a minor in viticulture. In 1962, he founded Cal- onstrated the ability to think under tremendous to our Nation of Col. Abraham J. Turner, who Western with a one acre nursery and has ex- pressure to fulfill his duty. At its core, courage will be leaving his position with us as Chief of panded to a farming and nursery operation, is the ability to think and act under pressure the Army House Liaison Division on June 13, which is now known throughout California’s while realizing the potential costs of your ac- 2002 for assignment as the Assistant Division Great Central Valley. Cal-Western specializes tions. He demonstrated his integrity as he rec- Commander of the 82d Airborne Division, Fort in table grapes, wine grapes, walnuts, and the ommended his assistant gunner for our na- Bragg, North Carolina. During his tenure here, production of grape rootstock. tion’s highest military honor, for the gunner Abe has distinguished himself as a friend, Mr. Khachigian has dedicated his time, ef- had given his last full measure of life in the trusted resource, and an officer who epito- forts, and finances to the improvement of execution of his duty. And he manifested his mizes the modern American professional sol- more than just the agriculture industry in Cali- selfless religious convictions as he walked to dier. fornia. In addition to the Commission and the church to pray for his fellow fallen soldiers and Abe Turner’s illustrious career as an infantry Foundation, Luther is a member of the College those German soldiers whose lives he had officer embodies all of the Army’s values of of Sequoias Board of Trustees, the University taken. loyalty, duty, respect, selfless service, honor, of California Ag Issues Center, and the Uni- Last Saturday, the History Channel aired a integrity, and personal courage. versity of California, Davis, Foundation. special on Mr. Merli’s First Infantry Division E1034 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 know as the Big Red One. I recommend that surrender, found Pfc. Merli still at his gun. lion children will see another day come and go all in this House take the time to view it. As On the battlefield lay 52 enemy dead, 19 of without hearing the sound of their father’s Mr. Merli recounts the events of that night in whom were directly in front of the gun. Pfc. voice or playing catch with their Dad in the Merli’s gallantry and courage, and the losses Belgium to Roger Mudd, the emotional loss of and confusion that he caused the enemy, backyard or having their father tuck them into his assistant gunner, whom Mr. Merli views contributed materially to our victory. bed. And what’s even more sad is that it’s not throughout time as the real hero that night, because their fathers went on a business trip tears welled up in his eyes. Selfless as al- f or had to work the late shift. It’s because their ways, Mr. Merli states that the true heroes are A RESOLUTION REGARDING THE fathers are gone. And for these children to- the American soldiers who did not come back 55TH ANNIVERSARY OF THE night is going to be a lot like last night and and gave their lives in the service of their na- LYNWOOD CHAMBER OF COM- may be a lot like tomorrow night. Forty million tion. MERCE, CA, AND ITS OUT- American children have not seen their fathers Upon returning from the war, Gino Merli STANDING LEADERSHIP FOR in over a year. served our nation’s veterans for thirty-four LYNWOOD BUSINESS OWNERS Mr. Speaker, being a father has been one of years as an adjudication officer at the Vet- the greatest privileges of my life. Watching my erans Administration Center in Plains Town- children grow and teaching them right from ship, Pennsylvania. Service and sacrifice were HON. JUANITA MILLENDER-McDONALD wrong has given me more joy than I ever the foundations upon which he lived his life. OF CALIFORNIA thought possible. Just this last year, I became This nation has been truly blessed by men IN THE HOUSE OF REPRESENTATIVES a grandfather for the first time. Watching my such as Mr. Merli who have sustained us in Wednesday, June 12, 2002 son be a father to his son has reconfirmed for times of war and healed the veteran in times me the importance and joys of fatherhood. I of peace. Ms. MILLENDER-MCDONALD. Mr. Speaker, salute the many single mothers who work hard In a letter to an appreciative citizen, Mr. whereas, the Lynwood Chamber of Com- to support and care for their children. But, fa- Merli wrote: merce, California, was founded in 1946, and thers are important. They can’t be replaced. W.W. Jones, principal of the high school, was Not everyone can be a Medal of Honor re- f cipient. But everyone can take pride in him- elected the first president of the chamber, and self—have pride in his heritage. We must al- Jack Weaver was elected the first secretary; RECOGNITION OF CARL ‘‘BRONKO’’ ways keep trying to better ourselves and our Whereas, 2001 marks the 55th anniversary STANKOVIC surrounding and we must never quit. Always of the Lynwood Chamber of Commerce, Cali- remember America is you and me. fornia, an organization that has provided out- HON. PETER J. VISCLOSKY I want to assure the many military men and standing assistance to its members, helping OF INDIANA women from Northeastern Pennsylvania and their businesses flourish; IN THE HOUSE OF REPRESENTATIVES throughout the country who are serving in Whereas, the Lynwood Chamber of Com- harm’s way, that this nation will never break merce, California represents over 1,500 home- Wednesday, June 12, 2002 the sacred promise between the veterans and based, commercial, industrial, and manufac- Mr. VISCLOSKY. Mr. Speaker, it is with the people for whom they have sacrificed. turing businesses in Lynwood; great pride that I recognize Mr. Carl ‘‘Bronko’’ Mr. Merli fought the good fight in peacetime Whereas, the Lynwood Chamber of Com- Stankovic, a proud World War II veteran and and war. He will be sorely missed, but his ac- merce, California continues to promote area dear friend of mine. Bronko has recently tions and sacrifice and service to his country businesses through functions such as the An- brought to my attention an inspirational poem will never be forgotten. From a grateful Amer- nual Business and Economic Development written by his friend Bev Freeman, of Morgan ican people and nation we extend our condo- Expo; Hill, California, during the Second World War. lences to Mr. Merli’s family. Godspeed Pfc Whereas, the Lynwood Chamber of Com- Bev passed away last year leaving behind not Merli, we know that you will hold the high merce, California hosts important events for only loved ones but strong friendships forged ground until relieved. business owners, including forums for minority during the war. After the funeral, Bronko and Mr. Speaker, I request that Mr. Merli’s and women business owners and the Annual Bev’s daughter, Carolyn Turner, came across Medal of Honor Citation be included as part of Legislative Conference, which allows busi- a poem written by Bev and two members of the permanent CONGRESSIONAL RECORD for fu- nesses to meet with their elected officials from his Tank Battalion that embodied the war ex- ture generations to honor and read. the local to Federal level; and perience not only for Bronko, but many other The President of the United States in the Whereas, the Lynwood Chamber of Com- veterans. name of The Congress takes pleasure in pre- merce, California provides youth scholarships, This poem speaks powerfully to the uncer- senting the Medal of Honor to: including the Mr. and Miss Lynwood Scholar- tainty and fear faced by World War II combat- MERLI, GINO J.—Rank and organization: ants. The emotions it represents rings true Private First Class, U.S. Army, 18th Infan- ship Competition and the Annual Educational try, 1st Infantry Division. Place and date: Golf Classic, which have generated over with Bronko, and the hundreds of veterans he Near Sars la Bruyere, Belgium, 4–5 Sep- $150,000 in the past years. has shared this poem with. Bev’s poem has tember 1944. Entered service at: Peckville, Now therefore, be it recognized that Con- been copied and given out at reunions since Pa. Birth: Scranton, Pa. G.O. No.: 64, 4 Au- gresswoman JUANITA MILLENDER-MCDONALD its discovery, and now I would like to share it gust 1945. proudly recognizes that the Lynwood Chamber with the Congress of the United States. Citation: He was serving as a machine gun- of Commerce, California serves the busi- Mr. Speaker, it is with great pride that I sub- ner in the vicinity of Sars la Bruyere, Bel- mit this untitled poem as a tribute to Bev’s gium, on the night of 4—5 September 1944, nesses of Lynwood with distinction; and pro- when his company was attacked by a supe- vides important scholarships for children and tank crew and to the memory of all our lost rior German force. Its position was overrun assists business owners, including minorities World War II veterans: and he was surrounded when our troops were and women, to promote their businesses. Look, God I have never spoken to you. But now, I want to say, ‘‘How do you do?’’ driven back by overwhelming numbers and f firepower. Disregarding the fury of the You see, God, they told me you didn’t exist. enemy fire concentrated on him he main- FATHERS ARE IMPORTANT And, like a fool, I believed all this. tained his position, covering the withdrawal Last night from my turret I saw your sky. of our riflemen and breaking the force of the I figured then they told me a lie. enemy pressure. His assistant machine gun- HON. JOSEPH R. PITTS Had I taken time to see things you made, ner was killed and the position captured; the OF PENNSYLVANIA I’d have known they weren’t calling a spade other 8 members of the section were forced IN THE HOUSE OF REPRESENTATIVES a spade. to surrender. Pfc. Merli slumped down beside Wednesday, June 12, 2002 I wonder, God, if you’d shake my hand? the dead assistant gunner and feigned death. Somehow I feel that you will understand. No sooner had the enemy group withdrawn Mr. PITTS. Mr. Speaker, I rise today in sup- Funny I had to come to this Hellish place than he was up and firing in all directions. port of America’s fathers. Before I had time to see your face! Once more his position was taken and the Mr. Speaker, fathers are important. They’re captors found 2 apparently lifeless bodies. Well, I guess there isn’t much more to say. Throughout the night Pfc. Merli stayed at important to our communities, our civic institu- But I’m sure glad God that I met you today. his weapon. By daybreak the enemy had suf- tions and most of all they are important to I guess the hour will soon be here. fered heavy losses, and as our troops their families, especially their children. Tonight, I’m not afraid since I know you’re near. launched an assault, asked for a truce. Our 40 percent of American children will go to There’s the signal; Well, God, I’ve got to go. negotiating party, who accepted the German sleep in a home without their father. Forty mil- I like you a lot—this I want you to know. CONGRESSIONAL RECORD — Extensions of Remarks E1035 Look now, this will be a kind of a rough A STATEMENT ON THE PASSING The community of Clinton, Missouri, in con- fight. OF HOLOCAUST SURVIVOR ALEX junction with the program ‘‘Random Acts of Who knows, I may come to your house to- STEINER Service’’ will be involved in many volunteer ef- night. forts during the months of May and June. Vol- Though I wasn’t friendly to you before, HON. SAM FARR unteers from Hilton Hotels and citizens of Clin- I wonder, God, if you’d wait at the door? OF CALIFORNIA ton, Missouri, will be restoring the Historic Mis- Look, I’m crying, Oh, me shedding tears; IN THE HOUSE OF REPRESENTATIVES souri Artesian Park in Clinton, among other I wish I had known you these many years. projects. Well, I have to go now, God, so good-bye. Wednesday, June 12, 2002 Mr. Speaker, I applaud the city of Clinton for Strange, since I met you, I’m not afraid to Mr. FARR of California. Mr. Speaker, Alex helping to make their community and our great die. Steiner, Holocaust survivor and longtime resi- country a better place to live. I know that Mr. Speaker, I hope this poem inspires my dent of Highland Park, New Jersey, died May Members of the House will join me in wishing 23, 2002 in Oregon. Alex (‘‘Sanyi,’’ to his inti- them all the best in the days ahead. distinguished colleagues as it has inspired me. mates) was born in Budapest, Hungary, in f The Greatest Generation has given so much 1920. He was a young man when World War to younger generations that I am happy to Two came to his native land. Like many able- TRIBUTE TO HENNINGER HIGH give something back by submitting this poem bodied Jewish male citizens, he was confined SCHOOL BASKETBALL TEAM to the House of Representatives. I would ask to a Hungarian labor camp for most of the my colleagues to join me in honoring World War. After the War, Alex, his mother and older HON. JAMES T. WALSH War II veterans with a moment of silence. sister (their father, an older brother and many OF NEW YORK other extended family members did not sur- IN THE HOUSE OF REPRESENTATIVES f vive), were displaced persons in Germany. Wednesday, June 12, 2002 They immigrated to the United States in 1949 Mr. WALSH. Mr. Speaker, I rise to congratu- PERMANENT DEATH TAX REPEAL to New Brunswick, New Jersey, where Alex’s late the Henninger High School Boys Basket- ACT OF 2002 uncle sponsor and his family lived. ball Team for winning the Class A State Alex embraced American patriotism and Championship. The win was a great testament bought into the American dream. He was SPEECH OF to the hard work and dedication of this team hardworking and ambitious for himself and for and its staff. HON. BENJAMIN A. GILMAN his family. Among his occupations he owned a The Black Knights of Henninger made his- shoe store in New Brunswick and sold com- tory when they won the Class A championship OF NEW YORK mercial real estate. He and his wife Julie title by defeating McQuaid Jesuit High School IN THE HOUSE OF REPRESENTATIVES (‘‘Joli’’), a concentration camp survivor, ex- of Rochester, 71 to 56. They were the first tended themselves to provide a comfortable team in their section to bring home a Class A Thursday, June 6, 2002 home in a good neighborhood for the family. championship. On top of this great victory the Alex was always openly grateful to the United Mr. GILMAN. Mr. Speaker, I rise today in Black Knights had a close to perfect season States for providing him a chance for the good winning 25 of their 27 games played. strong support of H.R. 2143, the Permanent life. He often insisted that few understood how Henninger player Chris Turner was deserv- Death Tax Repeal Act and I urge my col- unparalleled in goodness and opportunity our ing of special recognition by breaking the leagues to lend this measure their support. country is. Class A single-game record, scoring 38 points This measure would repeal the sunset provi- After his retirement and his wife’s death, to aid in the teams victory. He and fellow Alex moved with his son to Portland where his sion pertaining to the death tax that was in- teammate Jerice Crouch were also players on lawyer daughter and her family lived. He was the New York All-State Team and helped to cluded in the comprehensive tax relief legisla- a loving, attentive grandparent to his two tion passed by Congress in the spring of carry the Black Knights to their victory. grandsons and an active optimistic person to I would also like to give a special recogni- 2001. the moment of his final illness. tion to Joe Mazella for his dedicated service Without passage of today’s bill, the death Alex Steiner was a lively, fun-loving, voluble, as Head Coach to the Black Knights. He is tax provisions, which are gradually phased out energetic social man. He was a talented musi- going to be stepping down from his position at over the next 8 years, will revert to 2001 lev- cian who played several instruments and the end of this season. Mazella finished his els in 2011. could readily pick up any piece of music. In career with an impressive record of 245 wins Germany he led an orchestra that performed and 78 losses. Under his direction, the team The estate tax is an outmoded policy that for American service personnel. When he won nine Onondaga League championships has long outlived its usefulness. Alternatively came to America, he brought as an appre- and five sectional crowns. Personally he has known as the death tax, this tax was instituted ciative present for his young American cousin won the All-Central New York coach of the in 1916 to prevent too much wealth from con- a full-sized accordion. year twice, once in 1995 and then again in gregating with the wealthy capitalist families in He was a loving relative, whose closeness 2002. early 20th century America. The law failed in to his uncle and others was especially touch- On behalf of the people of the 25th district its original purpose, as the truly wealthy are ing. Survived by his son, daughter and two of New York, it is my honor to congratulate the always able to shelter their income with the grandsons, he will be missed as a bright spot Henninger High School Basketball Team and in life by those who knew him well. help of tax attorneys that the middle-class its coaching staff on their Class A Champion- cannot afford. f ship. With these remarks I would like to recog- TRIBUTE TO CLINTON, MISSOURI nize the following players and staff: Chris Instead, as incomes have risen in the past Turner, Chase Frazer, Jerice Crouch, Quincy 30 years, the death tax, like so much of the Fulmer, Markese Brown, Jason Nelson, Justin Tax Code, has begun to impact the middle HON. IKE SKELTON Wright, Terrance Evans, Roger Robinson, class, especially those with cash poor estates, OF MISSOURI Erris Robinson, Dan Rogers, Lawrence like small businesses or family farms. IN THE HOUSE OF REPRESENTATIVES Graser, Lenell Graham, Sedric Hawkins, and The Congress addressed this problem last Wednesday, June 12, 2002 Head Coach: Joe Mazella. year, by providing for a 10-year phase-out of Mr. SKELTON. Mr. Speaker, let me take f the death tax. However, this structure makes this means to congratulate the city of Clinton, PERSONAL EXPLANATION advanced estate planning difficult, especially Missouri, for being recognized as the first re- for those planning for after 2011. cipient of the ‘‘Random Acts of Service’’ award HON. JIM DeMINT sponsored by Hilton Hotels Corporation. In re- OF SOUTH CAROLINA Given this, it makes sense to simply repeal sponse to a national re-commitment to the IN THE HOUSE OF REPRESENTATIVES the sunset provisions affecting the death tax service of our neighborhoods and our nation, after 2010. This measure accomplishes this Hilton Hotels launched a nationwide commu- Wednesday, June 12, 2002 goal, and I urge my colleagues to join in sup- nity effort aimed at committing one million ran- Mr. DEMINT. Mr. Speaker, on June 11, port. dom acts of service in 2002. 2002 I was unavoidably detained and was not E1036 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 present for three rollcall votes. Had I been One brave man, Father Mychal Judge, died stars as service-members were killed or died present, I would have voted ‘‘aye’’ on rollcall as he was helping victims escape from the as a result of war-time injuries. votes Nos. 220, 221, and 222. chaos. Unfortunately, his family and the fami- These banners saw their popularity peak f lies of nine other public safety officers are not during World War I and World War II, but have eligible for federal death benefits. also been seen during the Korean War, Beirut, A RESOLUTION PRESENTING A This legislation would change that policy. Grenada, Panama, Persian Gulf, Somalia, MEMORIAL TRIBUTE TO THE While no amount of money will ever replace Bosnia and Saudi Arabia conflicts. LIFE AND LEGACY OF GER- what these families have lost, we owe it to It is time again, to show our support for the TRUDE SCHWAB them to do whatever we can to ease any fi- U.S. Armed Forces. America has found herself nancial hardship. at a time of war due to the events of 9/11. As HON. JUANITA MILLENDER-McDONALD I urge my colleagues to support this legisla- a result, our nation has been called once OF CALIFORNIA tion and to recognize the bravery of all public again to defend and uphold the moral obliga- IN THE HOUSE OF REPRESENTATIVES safety officers. tions of freedom and democracy. The need for Wednesday, June 12, 2002 f patriotism, a shared national unity and pur- Ms. MILLENDER-MCDONALD. Mr. Speaker, pose directed at our common enemy, has IN HONOR OF RESCUE HOOK & never been clearer. Gertrude Schwab was born in Wilmington, LADDER CO. NO. 1 California on November 6, in the year 1926, to I have been given the opportunity to honor Henry and Anna Viereck; she was the fourth several constituents who are serving in the of nine children; and HON. GARY L. ACKERMAN Armed Forces. These men are Jason Tinelle, Whereas, Gertrude Schwab received her OF NEW YORK who currently serves in Bosnia as an infantry early education at Avalon Elementary and IN THE HOUSE OF REPRESENTATIVES Platoon Sergeant, and TM1 Richard Messick, Phineas Banning High School in her home- Wednesday, June 12, 2002 who currently serves aboard the USS Hart- town of Wilmington, California; and ford. On behalf of the American Legion and a Whereas, Gertrude Schwab married Bill Mr. ACKERMAN. Mr. Speaker, I rise today grateful nation, I presented the Blue Star Ban- Schwab on March 28, in the year 1945, and to commemorate the officers and members of ner to their families and children as a symbol from this union were born three sons: Michael, Rescue Hook & Ladder Co. No. 1 of Roslyn. of their loved ones’ endless dedication and Frank, and David, seven grandchildren, and This year, Rescue Hook & Ladder Co. No. 1 sacrifice for patriotism and freedom. one great-grandchild; and will celebrate its 150th anniversary, making it I strongly encourage all Members of Con- Whereas, Gertrude Schwab raised her three one of the oldest fire companies in the State gress to honor their constituents by partici- sons, taking a strong participatory role in their of New York. pating in the Blue Star Service Banner Pro- upbringing through PTA, Cub Scouts and nu- Rescue Hook & Ladder Co. No. 1, since the gram. Contact your local American Legion Of- merous other family oriented activities; and introduction of its Charter by the Assembly of fice and encourage your media to promote this Whereas, Gertrude Schwab attended Har- the State of New York in 1866, has shown he- program and let the public know that this pro- bor College in Wilmington, earning her Li- roic dedication to the Roslyn community. It is gram is still strong. cense of Vocational Nursing graduating on the this untiring commitment at the moment of ut- Let’s do everything we can to stand behind Dean’s list in 1973 enabling her to do the work most danger that has forever unified Rescue the men and women who are fighting for she loved, caring for those in need at Kaiser Hook & Ladder Co. No. 1 with the families it America. Hospital in Harbor City and Harbor General so ably protects. Hospital; and Moreover, the officers and members of Res- f Whereas, Gertrude Schwab dedicated her cue Hook & Ladder Co. No. 1 are proud of life to community activism as a volunteer in- their legacy and achievement within the Ros- LEGISLATION RESTORING FIRST volved in political and social issues and activi- lyn community. They are committed to main- AMENDMENT PROTECTIONS OF ties essential to the advancement of the com- taining their reputation for only the highest RELIGION AND RELIGIOUS munity of Wilmington; and standards long into the future. SPEECH Whereas, Gertrude Schwab was appointed To the officers and members of Rescue by the Mayor of Los Angeles in 1993 to a seat Hook & Ladder Co. No. 1 and to the memory HON. RON PAUL on the Harbor Commission, where she served of all the fallen firefighters, who sacrificed their OF TEXAS with dignity and thoughtfulness for the citizens lives to preserve our freedom during the ter- IN THE HOUSE OF REPRESENTATIVES of Wilmington, who are most affected by Port rorist attacks of September 11, I ask my col- Wednesday, June 12, 2002 issues; and leagues to join me in commemorating this his- Whereas, Gertrude Schwab, through her ad- toric anniversary. Mr. PAUL. Mr. Speaker, I rise to introduce vocacy, made Wilmington a better place to f legislation restoring First amendment protec- live, touching the lives of countless people, in- tions of religion and religious speech. For fifty cluding myself. PARTICIPATING IN BLUE STAR years, the personal religious freedom of this Now therefore, be it resolved that Congress- SERVICE PROGRAM nation’s citizens has been infringed upon by woman JUANITA MILLENDER-MCDONALD proudly courts that misread and distort the First recognizes this woman of dedication, courage, HON. ROB SIMMONS amendment. The framers of the Constitution persistence and wisdom and her distinguished OF CONNECTICUT never in their worst nightmares imagined that service to her community. IN THE HOUSE OF REPRESENTATIVES the words, ‘‘Congress shall make no law re- f specting an establishment of religion or pro- Wednesday, June 12, 2002 hibiting the free exercise thereof; or abridging MYCHAL JUDGE POLICE AND FIRE Mr. SIMMONS. Mr. Speaker, I rise today in the freedom of speech . . .’’ would be used to CHAPLAINS PUBLIC SAFETY OF- support of the U.S. Armed Forces and the rec- ban children from praying in school, prohibit FICERS’ BENEFIT ACT OF 2002 ognition of their services by emphasizing the courthouses from displaying the Ten Com- SPEECH OF importance of an American tradition, known as mandments, or prevent citizens from praying the Blue Star Banner Program. I would also before football games. The original meaning of HON. CAROLYN B. MALONEY like to take a moment to praise the American the First amendment was clear on these two OF NEW YORK Legion for their tireless role in promoting tradi- points: The federal government cannot enact IN THE HOUSE OF REPRESENTATIVES tions such as this and their endless support of laws establishing one religious denomination Tuesday, June 11, 2002 veterans throughout the years. over another, and the federal government can- Mrs. MALONEY of New York. Mr. Speaker, The service banner has had a long history not forbid mention of religion, including the I rise today in strong support of this legislation. in the United States dating back to World War Ten Commandments and references to God. Our nation’s police and fire chaplains serve I. These banners were displayed in commu- In case after case, the Supreme Court has their communities each day, often putting their nities across the nation in homes, businesses, used the infamous ‘‘Separation of Church and own lives in danger. churches and schools as an indication that a State’’ metaphor to uphold court decisions that Tragically, on September 11, 2001, some member of a family or organization was serv- allow the federal government to intrude upon public safety officers lost their lives responding ing in the U.S. Armed Forces. The blue stars and deprive citizens of their religious liberty. to the terrorist attack in New York City. of these banners were replaced with gold This ‘‘separation’’ doctrine is based upon a CONGRESSIONAL RECORD — Extensions of Remarks E1037 phrase taken out of context from a letter writ- I would like to take this opportunity to echo Group, the largest medical chorale and sym- ten by Thomas Jefferson to the Danbury Bap- the respect and admiration Jerry Alexander phony orchestra in America. The musicians of tists on January 1, 1802. In the letter, Jeffer- has gained within the communities of South- this award-winning group are healers and son simply reassures the Baptists that the west Michigan. His personal qualities and nu- medical clinicians, scientists or medical admin- First amendment would preclude an intrusion merous skills are certain to facilitate success istrators by profession, but they are all also by the federal government into religious mat- in all of his future endeavors. extremely talented and well-trained musicians. ters between denominations. It is ironic and f They embrace Dr. Wahby’s vision of ‘‘music sad that a letter defending the principle that that heals.’’ the federal government must stay out of reli- HONORING FRANCES BACA ON A renaissance man, Dr. Wahby is a physi- gious affairs. should be used two hundred LAND DONATION TO SANTA FE cian, scientist, musician, poet, and a leading years later to justify the Supreme Court telling NATIONAL FOREST medical practitioner and administrator at the a child that he cannot pray in school! Veterans’ Health Administration in Wash- The Court completely disregards the original HON. TOM UDALL ington, DC. Dr. Wahby has had an extraor- meaning and intent of the First amendment. It OF NEW MEXICO dinary career. In his younger years at the has interpreted the establishment clause to IN THE HOUSE OF REPRESENTATIVES Mayo Clinic, he provided critical medical care preclude prayer and other religious speech in to such notables as the Rev. Billy Graham, Dr. Wednesday, June 12, 2002 a public place, thereby violating the free exer- Charles Malik and Corrie Ten Boom. Subse- cise clause of the very same First amend- Mr. UDALL of New Mexico. Mr. Speaker, I quently, while on faculty of Yale University, he ment. Therefore, it is incumbent upon Con- rise today to announce the Santa Fe National published research on the hormonal correlates gress to correct this error, and to perform its Forest has received a donation of approxi- of depression and appetite. In his current posi- duty to support and defend the Constitution. mately 154 acres of private land from Ms. tion as a leading VA physician-executive, he My legislation would restore First amendment Frances Baca, of Circleville, Ohio. This unde- has received many national recognitions. Just protections of religion and speech by removing veloped forested land has been in the Baca this year he and his team won the prestigious all religious freedom-related cases from fed- family for over 50 years. The Baca property Government Executive Technology Award, the eral district court jurisdiction, as well as from was the last remaining private parcel of land e-gov Pioneer Award, the Knowledge Manage- federal claims court jurisdiction. The federal in Santa Fe Canyon located within the bound- ment World Award, as well as numerous oth- government has no constitutional authority to aries of the Santa Fe Municipal watershed, ers. reach its hands in the religious affairs of its just east of the City of Santa Fe. Mr. Speaker, in 1996 Dr. Wahby and the citizens or of the several states. Ms. Baca inherited the parcel from her VA-National Medical Musical Group initiated a As James Madison said, ‘‘There are more mother, Antoinette Hanna Baca—the first unique patriotic event that has become an an- instances of the abridgement of the freedom woman commissioned Officer in the National nual tradition here on Capitol Hill—the Con- of the people by the gradual and silent en- Guard and later appointed Assistant Adjutant gressional Flag Day Concert. This program of croachment of those in power, than by violent General—who owned a larger parcel in the word and music is sponsored by the prayer and sudden usurpation.’’ I sincerely hope that watershed but sold part of it to the renowned breakfast organizations of the House of Rep- my colleagues will fight against the ‘‘gradual artist Randall Davey. Eventually, Randall resentatives and the Senate. It is held on or and silent encroachment’’ of the courts upon Davey left his property and houses to the Au- around Flag Day (June 14) for the past six our nation’s religious liberties by supporting dubon Society—which uses the facility as a years. The seventh in this annual concert se- this bill. conference and education center. ries will take place tomorrow, Thursday, June f After this donation, either the City of Santa 13, at 1:00 p.m. in the Cannon Caucus Room. IN PRAISE OF SPECIAL AGENT Fe or the United States of America own all of The Congressional Flag Day Concerts have GERARD B. ALEXANDER the lands within the watershed. With the re- been embraced by members of both houses cent release of the Santa Fe Municipal Water- of the Congress and their staff, and it has en- HON. FRED UPTON shed Management Plan to improve forest con- joyed wide public support and strong media in- ditions through thinning and burning portions terest. Many leaders from different fields and OF MICHIGAN of the municipal watershed, having access to varied backgrounds have endorsed and par- IN THE HOUSE OF REPRESENTATIVES this property is considered key to the success- ticipated in this program, which emphasizes Wednesday, June 12, 2002 ful implementation of the project. national healing and unity. I have personally Mr. UPTON. Mr. Speaker, Special Agent Among the most valuable assets in northern had the honor of participating in several of Gerard B. ‘‘Jerry’’ Alexander recently retired New Mexico are its deep-rooted culture and these concerts, and I always come away en- after 26 years of service to the communities of pristine beauty. Together, they are a large part tertained, refreshed and inspired. Southwest Michigan. An employee of the Fed- of why generation after generation has chosen The 2002 Concert Honorary Committee is eral Bureau of Investigation (FBI) and as- to live here and why new neighbors arrive chaired by First Lady Laura Bush, and the signed to the Kalamazoo field office, Jerry was every day. This new land will only add to vice chairs are my wife, Annette, and Mrs. Pa- an asset to the community that will sorely be those treasures. tricia Lott, the wife of Senate Minority Leader missed. I know how grateful the Santa Fe National Trent Lott. Others who serve on the committee A graduate of American University, Jerry Forest Supervisor Leonard Atencio is for this include Lynne Cheney, former President Bill boasts an impressive law enforcement record generous donation. I, too, want to thank Ms. Clinton, former Senator Bob Dole, Dr. Henry both in the United States as well as the world Baca for this unprecedented gift on behalf of Kissinger and other distinguished Americans. at large. Dedicated, intelligent, and respon- all New Mexicans and visitors to the Land of Mr. Speaker, these Flag Day Concerts have sible, Jerry is a well-rounded law enforcement Enchantment. This land will forever serve as a emphasized the honoring of America’s vet- official with experience working on numerous testament to the legacy of your family and erans and the men and women serving in our case genres. Jerry specialized in white-collar symbolizes the special connection that our citi- nation’s armed forces. This year, the choir and crime, an area of law enforcement that he zens feel to the land. orchestra will perform the ‘‘Veterans Hymn’’— found especially challenging and prevalent in f composed by Dr. Wahby. our corner of the state of Michigan. His im- It is a tribute to the energy, enthusiasm, pa- pressive talents and exemplary work ethic are TRIBUTE TO VICTOR WAHBY, MD, triotism, and showmanship of Dr. Wahby that just two of the qualities that come to mind DIRECTOR OF THE VA-MEDICAL the VA-National Medical Musical Group has when recalling Jerry’s work with the Bureau. MUSICAL GROUP been awarded the 2002 Congressional Medal A strong communitarian, Jerry spent much of Honor Society’s Bob Hope Award. of his free time as a volunteer in the Kala- HON. TOM LANTOS Mr. Speaker, I invite my colleagues to join mazoo area. His service as a coach and man- OF CALIFORNIA me in paying tribute to Dr. Victor Wahby for ager for the West Portage Little League will IN THE HOUSE OF REPRESENTATIVES his service to our nation and for his out- not be forgotten by the countless youngsters standing leadership and dedication to healing who enjoyed a rewarding athletic experience. Wednesday, June 12, 2002 through medicine and through music. And, Mr. Jerry’s love for children also led him to take Mr. LANTOS. Mr. Speaker, I rise to pay trib- Speaker, I invite my colleagues and their staff an active role in the Portage Central High ute to a distinguished and unique individual— to join me tomorrow afternoon in the Cannon School Band, which he supported in numerous Victor S. Wahby, M.D., Ph.D., founder and di- Caucus Room for the 2002 Annual Flag Day fundraisers. rector of the VA-National Medical Musical Concert. E1038 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 HONORING THE RETIREMENT OF Reverend Souders and his wife, Beverly will pressing the sense of the House of Rep- REVEREND ROBERT SOUDERS OF be married 47 years on December 17, 2002. resentatives that improving men’s health ST. MATTHEW UNITED METH- They have three children; Michelle, Gregory through fitness and the reduction of obesity ODIST CHURCH IN BELLEVILLE, and Shauna. Michelle and Jerry Haynes live in should be a priority. Had I been present I ILLINOIS Tennessee with their four children; Joshua, would have voted yea. Courtney, Jonathan and Tucker. Greg and I was also unavoidably detained for Rollcall HON. JERRY F. COSTELLO Brenda Souders reside in Belleville, Illinois No. 221, H. Con. Res. 394, expressing the OF ILLINOIS with their three daughters; Cara, Kimberly and Sense of the Congress Concerning the 2002 IN THE HOUSE OF REPRESENTATIVES Jessica. Shauna and Tony call Arizona home World Cup and Co-Hosts Republic of Korea Wednesday, June 12, 2002 with their sons, Nicholas and Jared and and Japan. Had I been present I would have daughters Renae, Lauren and Neaville. voted yea. Mr. COSTELLO. Mr. Speaker, I rise today to Mr. Speaker, I ask my colleagues to join me I was also unavoidably detained for Rollcall ask my colleagues to join me in recognizing in honoring the service of Reverend Robert No. 222, H. Con. Res. 213, expressing the the retirement of the Reverend Robert Souders to the community and to congratulate Sense of Congress Regarding North Korea Souders of St. Matthew United Methodist him upon the occasion of his retirement and to Refugees who are Detained in China and Re- Church in Belleville, Illinois. wish him and his family the very best for the turned to North Korea Where they Face Tor- Reverend Robert Souders, Senior Pastor, future. ture, Imprisonment, and Execution. Had I been came to serve the congregation of St. Mat- present I would have voted yea. thew United Methodist Church in Belleville, Illi- f f nois in August, 1965, completing almost 37 IN THE FOOTSTEPS OF LEWIS & years at his retirement in June of 2002. Rev- CLARK: A STUDENT EXPLO- TANF REAUTHORIZATION 2002 erend Souders began his 46 years of service RATION OF ECOLOGY, HISTORY & as a pastor of Zion, Marlow and Liberty Meth- GEOGRAPHY OF THE EXPEDI- HON. PETER A. DeFAZIO odist Churches (1955–1956); Browns Chapel TION and McHenry United Methodist Churches OF OREGON (1956–1958); Ransom and Blackstone (1958– IN THE HOUSE OF REPRESENTATIVES 1961); Steeleville and Percy (1961–1965); and HON. RAY LaHOOD Wednesday, June 12, 2002 OF ILLINOIS then St. Matthew United Methodist Church. Mr. DEFAZIO. Mr. Speaker, well before the IN THE HOUSE OF REPRESENTATIVES Reverend Souders is a graduate of Republican majority forced passage of the McKendree College and received his seminary Wednesday, June 12, 2002 1996 ‘‘Personal Responsibility and Work Op- degree from Garrett-Evangelical Theological Mr. LAHOOD. Mr. Speaker, on Sunday, portunity Reconciliation Act’’ (PRWORA)—-the Seminar. He was ordained as an Elder in the June 16, 2002, a group of nineteen students so-called welfare reform package—Oregon pi- United Methodist Church in 1961. and five teachers from Jacksonville High oneered several welfare and poverty allevi- St. Matthew UMC has grown physically and School in Jacksonville, Illinois are embarking ation initiatives and landmark education and spiritually under the leadership of Reverend training programs. The 1996 welfare bill al- Souders. For many years the church has had on a journey that will follow the footsteps of lowed states, like Oregon, a waiver to con- one of the finest youth ministries in the area. Lewis & Clark. The students will be focusing tinue their successful social assistance pro- The bus and senior citizen’s ministry has been on environmental ethics, ecology, geography grams with minimal federal interference. exemplary and many churches have sought and historical issues. Throughout their seven- Oregon was able to offer such programs as ideas and information from Reverend Souders teen-day journey through the Dakotas and the JOBS welfare-to-work program and the to enhance their own programs. The music Montana, the students will meet with historians JOBS Plus program that assists in job place- ministry continues to be one of the most well and biologists to discuss the impact of hu- ments in fields with opportunities for real ca- known in southern Illinois. Since his actual mans on this land since the early 1800’s. Fol- reer advancement and makes an impact not coming, many souls have been won. He lowing their trip, the students and teachers will just in the caseloads, but in poverty alleviation. began in 1965 with 99 members with the rep- be presenting their historic environmental jour- Oregon was also one of the first states to in- resent church exceeding 1300 members. Rev- ney to schools and community groups. The clude innovations like incentives for employers erend Souders has been a leaders in the group plans on presenting their findings during evangelism work of the United Methodist the following year leading up to the bicenten- to train and hire welfare recipients. There are a number of proposed changes to Church and in June 1990, was a recipient of nial commemoration. These young people are the prestigious ‘‘Harry Denman Evangelism to be commended for embarking on this edu- the Temporary Assistance to Need Families Award’’. cational venture that will help them immeas- (TANF) reauthorization that will end up costing The New Life Club began in 1972 as an urably in their understanding of the scientific Oregon more and reduce its flexibility in deliv- outreach to senior adults in the area. They and geographic research done by Lewis and ering innovative, individualized programs. have traveled many miles from Southern Illi- Clark, as well as challenging them to use the Under current law, adults have two years to nois to Canada, Nova Scotia and Europe. The skills they have acquired during their studies. find a job before losing their welfare benefits. St. Matthew Day Care was formally estab- I am proud to name these young adventurers One of the most important factors in finding a lished on August 27, 1972 and continues to among my constituents: Michael Meyer, stable job at a living wage is education. That’s provide a needed ministry in the community to Kelsey Mason, James Million, David Mosley, why I’ve advocated that any reforms allow re- provide a place of safety where children are LeAnn Shearbum, Sam Dimmick, Aaron cipients to enroll in two-year college or four- cared for and grow in body, mind and spirit. A Evans, Jaclyn Verticchio, Cailean Bailey, year university programs, job training or pro- Thrift Shop was established in 1976 and con- Thomas Baulos, Toni Brooks, Jamey fessional development programs, or rehabilita- tinues to serve the needs of many through the Davidsmeyer, Andrew Massey, Bridgett tion programs for mental health, substance generous donations of the congregation. In Hubbartt, Adam Phillips, James Rice, Janet abuse, or domestic violence, without hurting October 1978 and in March 1979, two apart- Clayton, Erica Kemple, and Jonathan Fox. their eligibility for benefits. Over 50 percent of ment complexes, each with 17 units, were The teachers accompanying these fine stu- the poor in Oregon have, for one reason or opened for senior citizens. dents are as follows: Jim Herget, Jim another, not completed high school. Over 35 The Mission Society for the United Meth- Chelsvig, Heather Beavers, Travis percent of the poor in Oregon have only an odist Church was established in 1984 with Brockschmidt, and John Lawless. eighth-grade education or less. According to Reverend Souders as one of the organizers. f the Bureau of Labor Statistics, of the 30 fast- Over 125 fully funded missionaries now serve est growing, well-compensated occupations, on the mission field in various parts of the PERSONAL EXPLANATION only five can be accomplished with short-term world. training. Reverend Souders has served on the Belle- HON. BOB RILEY With Oregon suffering from the highest un- ville Memorial Hospital Board of Directors OF ALABAMA employment rate in the nation at nearly 8 per- since December 20, 1983. During this time, he IN THE HOUSE OF REPRESENTATIVES cent, and many Oregon counties at double- also served on the following committees; digit unemployment, education becomes even Buildings and Grounds, Hospital Human Re- Wednesday, June 12, 2002 more important during these tough economic sources, Planning and Convalescent Home Mr. RILEY. Mr. Speaker, I was unavoidably times to ensure living wage jobs. The facts are Care. detained for Rollcall No. 220, H. Res. 438, ex- shocking. A single mom with two children will CONGRESSIONAL RECORD — Extensions of Remarks E1039 only earn $13,520 a year before taxes working I urge my colleagues—especially those first body armor for the Alton Police Depart- a full-time minimum wage job and not receive across the aisle—to pursue responsible re- ment. TANF benefits because the minimum wage— forms that offer a hand up, rather than a hand The following year, again through fund- $6.50/hour in Oregon—is too high to qualify. out; that offer a real chance of reducing pov- raising efforts, the club purchased Defibrillator This is nowhere near the federal estimate of a erty, not just caseloads. equipment for the Alton Fire Department. The living wage for a family of three of $34,429 (or f Exchange Club of Alton has also raised funds $16.55/h). The Republican proposal doesn’t and donated them to the Child Abuse Preven- even address how Oregon can resolve this HONORING THE EXCHANGE CLUB tion Project of Alton. disparity. Instead, they leave it to each state to OF ALTON, ILLINOIS AND THEIR In furtherance of it’s goals to provide com- address. Oregon is drastically cutting social 75TH ANNIVERSARY munity service, the club has provided much service programs in order to deal with a near needed manual labor in support of the Wom- billion dollar deficit. I can’t imagine the state HON. JERRY F. COSTELLO en’s Oasis Center Building and actively works will find resources to deal with this issue. OF ILLINOIS with and supports the Boys and Girls Club of Alton and hosts a special annual event for the Equally important is the amount of time IN THE HOUSE OF REPRESENTATIVES TANF recipients spend at work activities and children. the quality of these activities. I’m concerned Wednesday, June 12, 2002 Finally, the club also periodically recognizes about proposals advocating 40 work hours per Mr. COSTELLO. Mr. Speaker, I rise today to an outstanding community member or volun- week, either implicitly or explicitly stated, that ask my colleagues to join me in recognizing teer who otherwise may have been overlooked will push recipients into ‘‘workfare’’ programs the Seventy-Fifth Anniversary of the Alton Ex- through their ‘‘Book of Golden Deeds’’ award. that fail to increase earnings or opportunity. change Club. The Alton Exchange Club is truly a part of the Forty hours of direct work is unrealistic for Exchange is known to millions as America’s fabric of the Alton community. Exchange, most TANF recipients because of the other service club. From their earliest days, the Ex- America’s Service Club, is a group of men and support programs—like training, job search as- change Club has been usefully serving the women working together to make our commu- sistance, counseling—that recipients need to Alton area and improving the quality of life for nities a better place to live through programs participate in. the Alton community. The diverse array of Ex- of service. Mr. Speaker, I ask my colleagues to join me Education, training and ensuring a living change-sponsored programs and projects has in honoring the service of the Exchange Club wage are only part of a successful plan to made a considerable impact on both the Alton of Alton and to congratulate all of their past allow recipients to become more self-sufficient. area and America as a whole, thus enhancing and present members on the occasion of their Many working mothers depend on child care. the lives of countless men, women and chil- 75th Anniversary. I’ve always supported significantly increasing dren across the country. In a very real sense, funding for the Child Care Development Block Exchange exists for the simple purpose of f Grant (CCDBG). The CCDBG is currently serving others. JAMES WILLIAM SMITH-BETSILL funded at $2.21 billion nationally, which means The Exchange Club philosophy of service $2.5 million for Oregon. This funding doesn’t addresses Americanism, Community Service HON. WILLIAM J. COYNE come close to meeting demand. A 2000 Rad- and Youth and Child Abuse Prevention as na- cliffe Public Policy Center study found that for OF PENNSYLVANIA tional programs. America’s young people are IN THE HOUSE OF REPRESENTATIVES families under 200 percent of the poverty its most precious natural resource. That is why level, the most likely reason parents lose jobs Wednesday, June 12, 2002 for many years, Exchange has sponsored an is because of a lack of child care. The Repub- impressive selection of activities designed to Mr. COYNE. Mr. Speaker, I rise today to licans claim that the TANF bill commits $6 bil- benefit and encourage area youth. In Alton, note the passing of a distinguished public lion towards child care but looking at the fine the Exchange Club promotes the Basketball servant and an important player in the civil print, the Republicans have made mandatory Player of the Year program. rights struggle. Mr. James William Smith- only $2.9 billion and merely authorized an- In addition to developing youth activities and Betsill died in Harrisburg recently at the age of other $3.1 billion. A good press hit in an elec- programs, promoting pride in country, respect 67 after a period of illness. He was a remark- tion year, but given the disastrous federal for the flag and appreciation of our freedoms able individual. budget situation, it’s unlikely that child care Mr. Smith-Betsill was an outstanding athlete, are primary purposes of Exchange’s Ameri- funding will ever reach its full authorized level. who earned a college basketball scholarship, canism programs. The Alton Exchange pro- Like many of my colleagues, I want make was twice named a small college All-Amer- vides flags for children during parades and sure states have some degree of flexibility in ican—averaging more than 20 rebounds per other patriotic activities for young people in the implementing TANF and allow a measure of game—and was drafted to play for the Boston community. The club promotes patriotism by program coordination with other social assist- Celtics in 1958. Unfortunately, his professional donating 8,000 to 10,000 flags annually for ance initiatives. But I’m also concerned that basketball career was derailed by the develop- children and bystanders in the annual Memo- the Republicans have included a completely ment of knee problems during his service in rial Day parade. unnecessary provision in this legislation that the U.S. Army from 1958 to 1960. But his ath- The Exchange Club is also responsible for would override, at a governor’s request, Con- letic achievements pale in comparison to his the installation and placement of the Freedom gressional authorization and appropriations other accomplishments. laws related to a range of social assistance Shrines many of us see in our public places. Mr. Smith-Betsill pursued a career in public programs. This so-called ‘‘superwaiver,’’ would The Shrine is an impressive, permanently service that lasted for more than 30 years. In allow the diversion of funds from some pro- mounted collection of 28 of the most important the 1960s, he trained volunteers and managed grams to others and trump Congressional and historic American documents including the redevelopment projects in the Hazelwood funding decisions. The superwaiver allows Declaration of Independence, the Constitution neighborhood. He also trained people to take states to circumvent the legislative intent and of the United States and the Gettysburg Ad- and pass union apprenticeship tests. Finally, programmatic standards in the name of state dress. These remarkable documents serve as as the western regional director of the Penn- flexibility. Significant amounts of money are in- windows to the world of America’s proud past. sylvania Bureau of Corrections Education, he volved, too. Programs—like TANF, food They show our nation’s youth the strength and worked for many years to provide inmates with stamps, job training under the Workforce In- courage of their forefathers by allowing them better educational opportunities. vestment Act—slated for superwaiver authority to read, with their own eyes, the immortal In addition, Mr. Smith-Betsill has a long, are going to receive $65 billion in FY2002 words of inspired Americans who so decisively proud record as a community activist in and, according to Congressional Budget Office changed the course of history. Alton’s Club in- Wilkinsburg and Hazelwood. He worked hard estimates, will receive nearly $669 billion over stalled a Freedom Shrine at Gordon Moore for many years, at significant personal risk, to the next ten years. This puts an enormous Park in Alton. desegregate local unions. Mr. Smith-Betsill amount of money outside normal Congres- The Alton Exchange also follows the tradi- also was credited with keeping the peace in sional oversight. tion of providing community service through Hazelwood when riots raged in Pittsburgh in Finally, I’m concerned that the TANF block many crime prevention programs. The club 1969. Mr. Smith-Betsill’s many contributions to grant of $16.5 billion to states has not even in- provides assistance to the Alton police depart- his community are widely recognized and ap- creased with the rate of inflation since it was ment by providing bulletproof vests and sup- preciated. instituted in 1997. By 2007, the block grant will porting other crime prevention and awareness Mr. Smith-Betsill will be fondly remembered lose nearly 22 percent of its value. This needs programs. In fact, through their fundraising ef- and sorely missed. I want to extend my con- to change. forts, the Alton Exchange Club purchased the dolences to his family and friends. E1040 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 JAMES WILLIAM SMITH-BETSILL, SCHOOL BAS- But unions were segregated at the time and receive OSHA’s highest level of Voluntary Pro- KETBALL STAR, ACTIVIST AND PUBLIC SERV- blacks weren’t given opportunities to join tection Programs (VPP) safety and health ANT them. management certification, that of Star Partici- (By Paul Zeise) Mr. Smith-Betsill organized many protests and pickets, which eventually helped to pant, on Friday, June 14, 2002. James William Smith-Betsill, a high break the color barrier in several powerful Mr. Speaker, the people of Aeroquip-Inoac school and college basketball standout at unions. took it upon themselves to participate in the Franciscan University who later became a ‘‘During those days I was like his bail VPP by establishing a cooperative relationship community leader and civil rights activist in bondsman,’’ said his widow, Mary Harris- Wilkinsburg and Hazelwood, has died. between management, labor, and OSHA offi- Betsill. ‘‘He was constantly getting arrested Mr. Smith-Betsill, 67, was diagnosed with cials. Management established an effective because he was picketing at the head- leukemia in February and died May 5 at Har- program that meets the set OSHA require- quarters of unions and at various construc- risburg Hospital of a viral infection. ments, and labor employees agreed to partici- Mr. Smith-Betsill was born James Betsill tion jobs. And the fact that he was leading protests wasn’t popular. We received count- pate in an effort to assure a safe and healthful in 1935, and lived in Hazelwood until he was workplace. OSHA has verified that the pro- a sophomore in high school. He was 6 feet 6 less death threats, bomb threats and burning house threats. Jim was a hero of sorts to the gram meets the established criteria and is rec- inches tall, athletic and strong, but as a ognizing the Aeroquip-Inoac Corporation for young black man playing in the City League people in the community.’’ He also was a calming influence in Hazel- of Allderdice High School, his opportunities attaining the highest level of success. wood when riots broke out in Pittsburgh in to earn a college scholarship were limited. Aeroquip-Inoac has joined the ranks of .01% The summer before his junior year, how- 1969. of the six million companies in the U.S. to be ‘‘Every day during those riots, Jim would ever, he was recruited to play at Homestead recognized by OSHA under their Voluntary get up early and walk the streets and en- High School by the school’s coach, Charles courage people to stay calm,’’ said Harris- Protection Programs by achieving that status ‘‘Chick’’ Davies, so he moved in with a fam- Betsill. ‘‘Some days, he’d have a lot of people of Star Participant. As a company that pro- ily in Homestead and had his name legally walk with him; others he’d be by himself. It duces Class A painted exterior trim products changed to James Smith. for the automotive industry I applaud them on Mr. Smith-Betsill’s brother, Lawrence was tense at that point, but he was deter- Betsill of Doylestown, Bucks County, said mined to make sure that the neighborhood their cooperative effort, which involved all of changing his name and moving across the stayed intact.’’ the 500 employees. This program not only in- Mr. Smith-Betsill’s willingness to step in Glenwood Bridge was one of the most impor- creased employee motivation to work safely, and help anyone who needed assistance had tant moves his brother ever made. but also increased productivity by reducing the an impact on thousands of people, but it ‘‘At that time, blacks needed to do what- number of lost workdays due to injury. ever it was they could do in order to get into nearly cost him his life in the fall of 1976. He was at a Howard Johnson’s restaurant in Mr. Speaker, I would ask my colleagues to college sports,’’ said Betsill. stand and join me in paying special tribute to ‘‘The adoption was purely for basketball Oakland watching the Steelers play when an- reasons. Jim still had a bed at our house and other patron became drunk, got loud and the Aeroquip-Inoac Corporation. Businesses in came home to sleep most nights.’’ The coach began harassing other customers. Mr. Smith- the U.S. are served well through participation at Allderdice tried to file a suit to stop it, Betsill stepped in and tried to calm the man in these types of voluntary programs, and like but at the time the WPIAL couldn’t do any- down, but the man pulled a gun and shot him Aeroquip-Inoac, show what the American spirit thing about it and neither could the courts in the face. of cooperation can accomplish. I am confident ‘‘That was the first time I fully realized because the Smiths were his legal guardians. that the Aeroquip-Inoac Corporation will con- ‘‘Had he not made the move, he probably how many people’s lives he touched,’’ said Harris-Betsill, ‘‘because so many people tinue to improve their safety and health pro- wouldn’t have gotten a chance to go to col- grams and I wish them well in their future en- lege.’’ came to visit him at the hospital that they After earning all-state honors twice at moved him to a bigger room and there was deavors. Homestead and graduating in 1954, Mr. still a number of people who couldn’t get in Smith earned a scholarship to play basket- to see him.’’ f ball for the College of Steubenville, now Mr. Smith-Betsill moved to Harrisburg in 1972 and took a job with the Pennsylvania REMEMBERING DR. WILLIAM Franciscan University. NATHAN DANSBY Mr. Smith-Betsill played for coach Hank Department of Education as the western re- Huzma at Steubenville and became a two- gional director of the Bureau of Corrections time small college All-American. He aver- Education. He developed and implemented curriculum programming guidelines that HON. CARRIE P. MEEK aged more than 20 rebounds per game OF FLORIDA throughout his career and his 2,427 career re- provided inmates with educational opportu- bounds is believed to be an NAIA record. nities. IN THE HOUSE OF REPRESENTATIVES He was drafted in the second round of the Mr. Smith-Betsill remained active in a va- Wednesday, June 12, 2002 1958 NBA draft by the Boston Celtics. But he riety of different community service projects never got a chance to play for the Celtics be- throughout his life and even after he retired. Ms. MEEK of Florida. Mr. Speaker, I rise cause he also got drafted into the Army. He also was an active member of the Mac- today in remembrance of the late Dr. William He continued is basketball career in the edonia Missionary Baptist Church in Harris- Nathan Dansby, a remarkable man whose Army and toured Europe and the United burg. personal achievement and community service States as a member of the All-Army team. In addition to his wife, survivors include are an example to us all. two daughters, Tracey R. Betsill of Harris- But he developed knee problems and after he Dr. William Nathan Dansby, 84, was born in was discharged in 1960, he failed tryouts with burg and Michelle Heggs of Pikesville, Md.; two sons, James P. Betsill and Michael E. Mobile, Alabama. He was educated in private the Celtics and also with the Pittsburgh elementary and secondary schools, including Rens of the ABL. Betsill, both of Harrisburg, seven sisters; ‘‘Jimmy is the best player to ever come three brothers; and five grandchildren. Stillman College (then Stillman Institute). He out of the University of Steubenville. He put He was buried Friday in Harrisburg. received the bachelor of science degree from this school on the map the same way that f Johnson C. Smith University in Charlotte, Maurice Stokes did for St. Francis,’’ said North Carolina, a master’s degree in chemistry Kuzma. ‘‘But when he came out of the Army, A SPECIAL TRIBUTE TO from Fisk University in Nashville, Tennessee, he wasn’t the same player because of his AEROQUIP–INOAC ON THEIR and a doctorate in dental surgery from knees. It is a shame, because had he played OSHA VPP RECOGNITION Meharry Medical College, also, in Nashville. A right out of college, he’d have probably had proud Fraternity man, he was elected to Beta a nice NBA career and be remembered like the Chuck Coopers and Maurice Stokes.’’ HON. PAUL E. GILLMOR Kappa Chi and a member of Alpha Phi Alpha Mr. Smith-Betsill moved to Wilkinsburg in OF OHIO Fraternity. the early 1960s, was hired by Action Housing IN THE HOUSE OF REPRESENTATIVES A decorated veteran of World War II, Dr. and began a career of public service that Dansby served with distinction in the U.S. lasted until he retied in 1997. Wednesday, June 12, 2002 Army. He was appointed by the Tuscaloosa His first job was with the U.S. Office of Mr. GILLMOR. Mr. Speaker, I rise today to City Council to the City Board of Education in Economic Opportunity program as a commu- pay special tribute to an outstanding corpora- 1970 and was elected chairman of the board nity organizer. A big part of his job was tion based in Ohio’s Fifth Congressional Dis- in 1985. He served on boards of directors of training short-term volunteers to become community servants and be directed a num- trict. I am happy to announce that the employ- the Black Warrior Council of the Boy Scouts, ber of redevelopment projects in Hazelwood. ees of Aeroquip-inoac in Fremont, Ohio, have the Martin Luther King, Jr. School National He also trained men to take and pass ap- recently achieved an extraordinary level of Network, the Benjamin Barnes YMCA, and the prenticeship tests in order to develop trades. success. The Aeroquip-inoac Corporation will Maude L. Whatley Health Center. He was, CONGRESSIONAL RECORD — Extensions of Remarks E1041 also, a member of the Kiwanis and Tusca- Woodall and to join with our nation in con- dent by his fellow trade unionists, he was loosa Reunion Clubs. gratulating him as he is honored as a 2001 elected as Secretary-Treasurer of the state As a devoted servant at Brown Memorial Medal of Technology laureate. federation, serving in that position from 1977 Presbyterian Church, he was installed an elder f to 1989. and very active in work of the Men of the It’s clear to anyone who has observed Ed Church, the Endowment Committee, and the ON THE CREATION OF THE DE- Mohler over the years that the legacy he Trustee Board. PARTMENT OF HOMELAND SECU- leaves as a lifelong, dedicated trade unionist In his last years of life, Dr. Dansby served RITY is one of concrete accomplishment that will his community by providing free dental serv- endure for years to come. ices to those who could not afford to pay and HON. ALCEE L. HASTINGS In the State Capitol in Annapolis, where I helped in anyway he could to serve his var- OF FLORIDA worked with him while serving as the Presi- ious schools of matriculation and local organi- IN THE HOUSE OF REPRESENTATIVES dent of the Maryland Senate, Ed was instru- zations. mental in helping organized labor achieve leg- Wednesday, June 12, 2002 Dr. William Nathan Dansby passed away on islative gains in the areas of workers’ com- Thursday, June 6, 2002 and will be laid to rest Mr. HASTINGS of Florida. Mr. Speaker, I pensation benefits, unemployment insurance today in Tuscaloosa, Alabama. He was pre- rise today in support of the creation of a new benefits, and collective bargaining rights. ceded in death by his parents, William L. cabinet-level federal Department of Homeland Ed also played an important role in passage Dansby and Portia Dorcette Canty Dansby, Security. This long-overdue initiative, designed of the Maryland Occupational Safety and and his sister, Sarah Dansby Pinkney. He is to streamline current government activities, is Health Act, prevailing wage legislation, pen- survived by cousins, Theodora Dansby John- an important first step in our nation’s war on sion and salary increases, protections for son of Florida, Sondra Brown Julien of Florida, terrorism. health care workers, and right-to-know protec- George F. Knox of Florida and their families. In October of last year, I introduced H.R. tions for public safety workers. He leaves to cherish his memory a devoted 3078, to establish the National Office for Com- In more recent years, Ed has helped lead family whom he adopted as his own, William bating Terrorism. It included an initiative to de- the fight to defeat anti-worker initiatives such and Elizabeth Rice of Aliceville and their three velop policies and goals for the prevention of as right-to-work legislation and so-called ‘‘pay- daughters: Mechelle, Benidia, and Portia. and response to terrorism, and for the consoli- check protection.’’ As he is grieved, his family and friends dation of federal, state, and local government During his 24-year tenure as an executive know that his spirit has returned to God and programs. I am pleased to see that the Admin- officer of the state federation, Ed not only that he is smiling down upon the world. Mr. istration is incorporating my ideas, along with helped drive organized labor’s policy agenda Speaker, I ask all Members to join me in pay- those of my colleagues, into a comprehensive but also strengthened its administration. For ing tribute to him this remarkable man. plan to streamline the workings of the Execu- example, Ed believed that the interests of f tive Branch. working men and women would be much bet- The new Department will have four separate ter served if the state federation maintained a HONORING PROFESSOR JERRY divisions to deal with threats to our nation. permanent presence in Annapolis. As a result, WOODALL ON HIS RECEIPT OF Within each division, the missions and func- the state federation moved from rental space THE NATIONAL MEDAL OF TECH- tions that are currently spread out amongst a in Baltimore to its current headquarters at the NOLOGY dizzying array of federal agencies will be con- House of Labor on School Street in Annapolis, solidated to avoid duplication and redundancy providing Maryland workers with both conven- HON. ROSA L. DeLAURO and ensure that the Executive Branch of gov- ience to the State Capitol and prestige. OF CONNECTICUT ernment actually supports the tax payers who But, then, Ed always understood that the IN THE HOUSE OF REPRESENTATIVES support it. cause of organized labor—ensuring workplace The concept of consolidating the efforts of fairness and social justice—could best be ad- Wednesday, June 12, 2002 federal, state, and local agencies is not a new vanced through our political system. Ms. DELAURO. Mr. Speaker, it is with great one. I recently introduced H.R. 4754, the Na- After being hired as a cable splicer in 1957, pleasure that I rise today to pay tribute to Dr. tional Drought Preparedness Act. My legisla- Ed joined the Communications Workers of Jerry Woodall of Yale University in my home- tion will bring together representatives from America, Local 2336, and immediately town of New Haven, Connecticut. Dr. Woodall federal and state agencies to create planning plunged into union activism and political cam- was recently honored with the National Medal models and preparedness plans, in much the paigning. He has worked in political cam- of Technology in recognition of his outstanding same way that the new Department of Home- paigns on behalf of Democrats at the local, work in semiconductor materials and devices. land Security would operate. I applaud this im- state and federal levels, including the presi- The National Medal of Technology was cre- portant initiative and urge my colleagues to dential campaigns of John Kennedy, Lyndon ated to recognize those who embody the spirit work towards quick passage of legislation for Johnson, Robert Kennedy and Hubert Hum- of American innovation and have advanced the creation of this new Department. phrey. the nation’s global competitiveness. As one of f More recently, Ed was elected to serve as only 120 individuals bestowed with this distinc- a delegate at the Democratic National Con- tion, Dr. Woodall most-deservedly belongs EDWARD A. MOHLER: A CHAMPION ventions in 1992, 1996 and 2000. among Connecticut’s long legacy of FOR WORKING MEN AND WOMEN Throughout the 1960s and 1970s, Ed was innovators, like Eli Whitney and Igor Sikorsky. immersed in union activities and political cam- It is no overstatement to say that, in a re- HON. STENY H. HOYER paigns that advanced the interests of working markable career that has spanned four dec- OF MARYLAND men and women. He was elected as chair of ades, Dr. Woodall has truly expanded Amer- IN THE HOUSE OF REPRESENTATIVES political activity for CWA, Local 2108, and then ica’s horizons through his groundbreaking ad- served as chair of the Committee on Political Wednesday, June 12, 2002 vances in electrical engineering and physics. Education (COPE) for the Washington Metro- Half of the entire world’s annual sales of com- Mr. HOYER. Mr. Speaker, today I want to politan Central Labor Council. pound semiconductor components would sim- pay tribute to a trusted, long-time friend who, Between 1968 and 1977, the year in which ply not be possible without his legacy of re- for nearly half a century, has been a true he was elected Secretary-Treasurer of the search. Technology used in CD players, TV champion for working men and women and state federation, Ed worked as an organizer, remote controls, computer networks, cell the cause of organized labor throughout the legislative agent and staff representative for phones, and satellites can be credited to Dr. State of Maryland and our great country. AFSCME International and Council 67. In that Woodall as well as advances in the use of la- For 12 years, from 1989 until his retirement capacity, he conducted numerous organizing sers and ultra-fast transistors and solar cells. in 2001, Edward A. Mohler served with distinc- campaigns and was a strong advocate for What’s more, Dr. Woodall’s work will provide tion and effectiveness as the President of the public employees, beginning the fight for col- the basis for technological innovations for dec- Maryland State and District of Columbia AFL– lective bargaining rights for state and higher ades to come. Few can claim such a legacy. CIO). education employees in 1974. Dr. Woodall’s dedication and commitment to Ed not only was re-elected to that post three While working men and women have been excellence have made a real difference in the times, but also was one of the longest-serving the subject of many harsh, unthinking attacks quality of life of all Americans. I am honored executive officers of a state federation in the over the years, Ed Mohler has always recog- to rise today to pay tribute to Dr. Jerry entire AFL–CIO. Before being elected presi- nized that the immutable truths that lie at the E1042 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 core of the American labor movement—fair- and crafts fair, second Sunday in October and There was a cobbler, a shoemaker, black- ness, justice, dignity and morality—never go a German Christmas, on the first Sunday in smith, tailor and an undertaker. The stone out of fashion. December. structures that dot the community were built And that’s a tremendous professional legacy (The following is taken from ‘‘The Signifi- by the German immigrants along the bluffs in to leave for this and future generations of cance of the Village of Maeystown, Illinois’’ by a manner similar to Bavarian Stone houses in workers. Gloria Bundy.) their native Germany. About 60 significant As Samuel Gompers, the first president of ‘‘The picturesque village of Maeystown, nes- buildings still exist; including Maey’s log the American Federation of Labor, said more tled in the hills and among the spring-fed house, the original church, the mill and the than 100 years ago: streams in one small spot of Southern Illinois various limestone buildings. ‘‘To protect the workers in their inalienable was founded in 1852 by Jacob Maeys, who Maeystown today continues as a vibrant, fights to a higher and better life; to protect was born in Oggersheim, Bavaria, in 1828. historic community hosting thousands of visi- them, not only as equals before the law, but Although the village was founded in 1852 tors each year to walk among its historic areas also in their health, their homes, their fire- and settled entirely by German immigrants of and enjoy the hospitality of its people. sides, their liberties as men [and women], as the Forty-Eighter movement, its historical sig- Mr. Speaker, I ask my colleagues to join me workers, and as citizens; to overcome and nificance begins in 1782, at the time of the in honoring the 150th Anniversary of the Vil- conquer prejudices and antagonism; to secure Moore settlement at La Belle Fontaine, at lage of Maeystown, Illinois and to congratulate to them the right to life, and the opportunity to what is now Waterloo, Illinois. all of their past, present and future residents maintain that life; the right to be full sharers in Captain James Moore, a native of Maryland, with the historic achievement. the abundance which is the result of their was a soldier under George Rogers Clark and brain and brawn, and the civilization of which was with him at Kaskaskia when he captured they are the founders and the mainstay. . . . the Illinois Country for Governor Patrick Henry, f making it a county of Virginia. Having seen the The attainment of these is the glorious as mis- A SPECIAL TRIBUTE TO MIRIAM H. advantages of the Illinois Country, he returned sion of the trade unions.’’ FETTERS ON HER FORTIETH AN- with his family and four other pioneers and Ed Mohler has helped keep that ‘‘glorious NIVERSARY WITH THE SOCIAL their families and spent the winter of 1781 in mission’ on course for nearly half a century, SECURITY ADMINISTRATION bettering the lives of working men and women. Kaskaskia. In 1782, Moore and his party For that, we offer our heartfelt thanks, and moved northward on the Kaskaskia Trail and wish him and his family—his wife Barbara, settled at a place the French called La Belle HON. PAUL E. GILLMOR and his sons and their families—the very best Fontaine because of the beautiful spring there. OF OHIO in the years to come. This was the first permanent American settle- f ment made in the Illinois Territory. IN THE HOUSE OF REPRESENTATIVES Other pioneers subsequently followed, stop- Wednesday, June 12, 2002 HONORING THE VILLAGE OF ping briefly at the Moore settlement until they MAEYSTOWN ON THEIR 150TH staked claims for themselves elsewhere. One Mr. GILLMOR. Mr. Speaker, I rise today to ANNIVERSARY such young pioneer was James McRoberts, a pay special tribute to an outstanding public Revolutionary War Soldier, who joined the servant. Miriam H. Fetters will celebrate forty HON. JERRY F. COSTELLO Moore party and then staked a claim of 100 years of public service with the Social Security OF ILLINOIS acres (Survey 704; Claim 316), which he re- Administration on Tuesday, June 18, 2002. IN THE HOUSE OF REPRESENTATIVES ceived for an improvement right. He left his Mr. Speaker, Miriam began her tenure of claim, went to Tennessee, where he married Wednesday, June 12, 2002 exemplary service with the Social Security Ad- Mary Fletcher-Harris and came back to Mon- ministration on June 18, 1962 in Cincinnati, Mr. COSTELLO. Mr. Speaker, I rise today to roe County in 1797, receiving, another 100 Ohio serving as a Claims Representative. Mir- ask my colleagues to join me in recognizing acres, presently owned by Mr. and Mrs. iam was then transferred to the Lima, Ohio of- the 150th Anniversary of the Village of Halbert Mueller (Survey 703; Claim 315), from fice where she served as a Field Representa- Maeystown, Illinois. the government as a militia donation. This tive, Operations Analyst, Operations Super- The Village of Maeystown, Illinois is located claim was about one mile north of the first visor, and finally Assistant District Manager. just eight miles south of Waterloo in Monroe one. It was on the second claim that he built Throughout her career, Miriam has continually County, Illinois and is celebrating its 150th An- his dwelling out of cedar logs. Here his ten provided the highest level of assistance to the niversary as a Village this year. children were born. Samuel, the eldest, ‘‘was Lima service area and to the team of staff The town, founded in 1852, was placed on the first native-born Illinoisan elevated to the members with whom she works. the National Register of Historic Places in United States Senate.’’ 1978 for significance in architecture and engi- Following the elder McRobert’s death in Miriam continues to lead a distinguished ca- neering. Since that time the small community 1844, his Survey 704; Claim 316, now known reer as a public servant, which is made evi- of approximately 150 residents has become a as the McRoberts’ Meadow, was sold and re- dent through the numerous awards she has popular site for visitors to the area. Its historic sold in rapid succession. It was a hilly, wood- received for meritorious service. In October, distinction, as well as a progressive organiza- ed tract of land, not suitable for cultivation. It 1973, Miriam received the Commissioner’s Ci- tion called the Maeystown Preservation Soci- contained three streams and a large spring, tation from then Acting Commissioner of So- ety, has brought new life to the once-dying with limestone deposits protruding out of the cial Security Arthur E. Hess for ‘‘sustained ex- community. hillsides and along the creek banks. cellence in processing an exceptional quantity The village has a periodic newspaper called In 1848, Jacob Maeys purchased the Mead- of claims with a high degree of accuracy.’’ Ad- the Maeystown Volksblatt. Maeystown has its ow from James 0. Hall because of the large ditionally, in January, 1987, Miriam also re- own water system and is governed by a vil- spring upon it. Young Maeys intended to use ceived the Chicago Region Supervisory Excel- lage board and mayor. Maeystown has a the waterpower from the spring to run a saw- lence Award for ‘‘outstanding supervisory skills growing business community, including The mill. Here he built his log house to which he resulting in improved efficiency and enhanced Corner George Bed and Breakfast, Corner brought his bride, Barbara Fischer, also a na- employee morale.’’ These awards demonstrate George Inn Sweet Shoppe, Eschy’s Village tive of Germany. not only that Miriam is a dedicated employee, Inn, Maeystown General Store, Raccoon Hol- Purchasing these 100 acres was very time- but also a loyal public servant. low Handcrafts, KW Outdoor Wear, T. Walster ly, as it was just when the Forty-Eighters were Mr. Speaker, I would ask my colleagues to of Maeystown (custom doors and windows). coming up the Mississippi River from the port join me in paying special tribute to Miriam H. The Maeystown Nature Walk is operated year of New Orleans, stopping briefly at St. Louis Fetters. Our federal service agencies and the round for donations. and then spreading by the thousands into the American people are better served through the Although Maeystown’s population continues surrounding areas of Missouri and Illinois.’’ diligence and determination of public servants, to be small, people from throughout the area The people of Maeystown are extremely like Miriam, who dedicate their lives to serving support Maeystown’s many activities. These proud of their German heritage and love to the needs of others. I am confident that Mir- events include: Fastnacht, a German pancake talk of the history of the stone structures that iam will continue to serve her community as a and sausage dinner Tuesday before Ash dot the community. The German ancestry of model federal employee well into the future. Wednesday; Fruhlingfest, a spring craft fes- the town originally existed because of the We wish her the very best on this special oc- tival, first Sunday in May; Oktoberfest, an art craftspeople that came to settle in the area. casion. CONGRESSIONAL RECORD — Extensions of Remarks E1043 A PROCLAMATION HONORING city, state, and nation with distinction. I would PERSONAL EXPLANATION ARMAND W. COSENZA, JR. ask my colleagues to join me in recognizing their service. HON. JOHN ELIAS BALDACCI HON. ROBERT W. NEY It Is only proper and appropriate that Post OF MAINE OF OHIO 2408 is being rededicated in honor of an IN THE HOUSE OF REPRESENTATIVES American who fought for our country and gave IN THE HOUSE OF REPRESENTATIVES Wednesday, June 12, 2002 his life so that we may all enjoy the fruits of Wednesday, June 12, 2002 freedom. Carl Robert Arvin was a man of Mr. BALDACCI. Mr. Speaker, last night I Mr. NEY. Mr. Speaker, whereas, Armand W. great worth and an inspiration to all in his was unavoidably detained in my district due to Cosenza, Jr. has been elected President of presence. His life was taken while serving his Maine’s Primary Election. If I had been the National Association of Mortgage Brokers country in Vietnam on October 8, 1967. present, I would have voted: (NAMB); and, Though Bob was only 24 years old when he ‘‘Aye’’ on rollcall vote number 220; ‘‘Aye’’ on Whereas, NAMB provides invaluable serv- died his life achievement outranked men twice rollcall vote number 221; ‘‘Aye’’ on rollcall vote ices for the mortgage broker industry which his age. His legacy must not be forgotten, and number 222. originates more than half of all home loans in his life must forever serve the men and f the country; and, women of Michigan, both now and in the fu- MARGARETA CRAMPTON: A Whereas, home ownership is at an all time ture, as a lasting testimony to the sacrifice FRIEND, ALLY AND SUPPORTER record rate largely due to the contributions of others have made for our nation. mortgage brokers; and, DEDICATED TO WORKING MEN Bob’s natural born leadership was exhibited AND WOMEN Whereas, through his involvement in NAMB, early in his high school career. At Ypsilanti Mr. Cosenza has been instrumental in shaping High School, Bob demonstrated the intellect, housing policy in this country; and, athletic ability, and leadership qualities, which HON. STENY H. HOYER Whereas, Armand Cosenza was a founding were the foundation of his subsequent OF MARYLAND father of the Ohio Association of Mortgage achievements. He participated in numerous IN THE HOUSE OF REPRESENTATIVES Brokers, for which he was president in 1995 high school activities ranging from debating to Wednesday, June 12, 2002 and 1996 and still serves on the board as quarterbacking the football team. An out- Mr. HOYER. Mr. Speaker, today, on behalf North Chapter President; and, standing wrestler, he was team captain and of working men and women in the State of Whereas, Armand Cosenza must be com- captured the 154 pound state title. Bob Maryland and throughout the entire country, I mended for his contributions to his profession capped his brilliant high school career as val- want to thank a stalwart trade unionist who and involvement in his community and dedica- edictorian of his graduating class. His high has dedicated her life to improving the lives of tion to his wife Judy and daughters, Denise school achievements led to several college others. and Vicki; scholarship offers, including an appointment to But before I recount the many accomplish- Therefore, I join with the residents of the en- West Point, which was the fulfillment of a boy- ments and long service of Margareta A. tire 18th Congressional District of Ohio in ap- hood ambition and his ultimate choice. Crampton, the director of the Committee on plauding Armand W. Cosenza, Jr. for his elec- Bob quickly established himself as a class tion as President of NAMB and in wishing him Political Education (COPE) for the Maryland leader when he entered West Point in July State and District of Columbia AFL–CIO for continued success. 1961 as a member of the Class of 1965. He f more than 20 years, I want to add a personal continued his extracurricular activities and rep- note. HONORING THE 70TH ANNIVER- resented West Point at numerous conferences Margareta is far more than a political ally. SARY OF YPSILANTI VFW POST and functions across the country. Bob was a She is a trusted friend and staunch supporter 2408; REDEDICATION OF CARL Rhodes Scholarship finalist and was among a who has been by my side since I first decided ROBERT ARVIN POST 2408 group of college students selected to discuss to run for Congress in 1981. In fact, when my public affairs with President Lyndon Johnson predecessor in Congress, the late Gladys HON. JOHN D. DINGELL at the White House. Noon Spellman, suffered a heart attack that In August 1965, after graduating from West OF MICHIGAN left her unable to complete her term, Point, Bob reported to Fort Benning, Georgia, IN THE HOUSE OF REPRESENTATIVES Margareta was one of the first people to come for Airborne and Ranger training. In the brief to my law office to encourage me to run in a Wednesday, June 12, 2002 span of 23 months in the 82nd Airborne Divi- special election to fill that seat. Mr. DINGELL. Mr. Speaker, as a veteran of sion, Bob demonstrated outstanding profes- I can only hope that I’ve served my constitu- World War II and a proud member of the Vet- sional competence and leadership. After a ents in the Fifth Congressional District as well erans of Foreign Wars, it is my honor to speak brief stint as a platoon leader and executive as Margareta has tended to the needs of to you today in honor of the 70th anniversary officer, he became the youngest company working men and women in Maryland and the of VFW Post 2408 in Ypsilanti, Michigan. On commander in the Division. During this tour American labor movement over the last 40 June 15, Post 2408 will commemorate this Bob was able to return home to Ypsilanti and years. event by rededicating its post in honor of the marry Merry Lynn Montoyne in 1966. Margareta began her union career in 1960 late Carl Robert Arvin, a veteran who served Bob received orders for Vietnam in early with the Bakery, Confectionary and Tobacco his nation with distinction and gave his life in 1967; he was assigned as an advisor in the International Union, serving as chief steward battle during the Vietnam War. Military Assistance Command Vietnam and shop representative. Recall that what Throughout our history, 11 major wars and (MACV). He reported to his advisory detach- today is rightly natural and commonplace— many smaller conflicts have required the serv- ment, the 7th Vietnamese Airborne Battalion, women working in positions in virtually every ices of over 40 million Americans to stand and in May 1967. Bob was quickly thrust into com- sector of our economy—was not the norm 40 defend the sovereignty and principles we, as bat with the pace and intensity of the war years ago. Women faced many barriers in the a Nation, cherish most. There is no more quickening. For combat action on September workplace. Discrimination was often open and noble cause for an American than to actively 5, 1967, he was awarded the Silver Star and too often tolerated. participate in that defense. The valor displayed Purple Heart. Following a brief hospital stay But Margareta, and the women of her gen- by American troops in World War II, Korea, Bob returned to his battalion, which was pre- eration, through force of character and the will Vietnam, the Persian Gulf, and today in Af- paring for combat operations to clear enemy to succeed, overcame the many hurdles ghanistan must not be forgotten. forces from an area threatening a vital air placed in their paths. They proved that women For over a century, the VFW has served our base at Hue-Phu Bai. Bob was mortally could perform any job well. And it’s because nation well. It has not only lobbied effectively wounded in battle on October 8, 1967; he was of their hard work that women in the labor for the rights of veterans, but has worked to posthumously awarded a second Silver Star. movement, as well as other types of employ- better communities across our nation. Mem- Bob was buried at West Point on October 17, ment, have made such tremendous strides in bers of the VFW did not stop serving their na- 1967, with full military honors. our society—and continue the fight for the tion when they left the armed forces. Rather, Mr. Speaker, I would ask all my colleagues equality, justice and fairness that they de- they rededicated themselves to helping others, to rise and join me in honoring the service of serve. veteran and non-veteran alike. For 70 years, a true American hero, Bob Arvin, and to honor After 19 years at the Bakery, Confectionary the members of Post 2408 have served their the 70th anniversary of Ypsilanti Post 2408. and Tobacco Workers International Union, E1044 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 Margareta moved in 1979 to the Graphic Arts grade students at the school have converted a since serving his country in the U.S. Air Force International Union, serving as the financial re- courtyard into an outdoor classroom and put in the Korean War. cording secretary and membership reviewer. new landscaping in the area. Mr. Speaker, I ask my colleagues to join me During the 1960s and 1970s, she was an The children have restored the Whiteside in paying special tribute to Jim Streacker. Our active member of the Office of Professional Cemetery, which had been abandoned and communities are served well by having such Employees International Union (OPEIU), Local vandalized. In addition, they have done gene- honorable and giving citizens, like Jim, who 2, and became the first woman to be elected alogical research on the people who are bur- care about the well being and stability of their First Vice-President of her local in 1974. ied in the cemetery and have published an ex- communities. We wish him the very best on She served as chair or co-chair of numer- tensive Whiteside family history. They are tak- this special occasion. ous committees in her local, including the edu- ing photographs of other Civil War gravesites cational committee, the COPE committee, and in St. Clair County, and they are in the proc- f the organizing committee. She also served as ess of putting together a web site that will in- CONGRATULATIONS TO LINCOLN the chair of the Young Trade Unionists No. 2 clude the genealogical information and other HIGH SCHOOL IN DALLAS, TEXAS from 1969 to 1984, and as the recording sec- Civil War information. The students have as- retary of the Young Trade Unionists No. I from sembled a CD–ROM that will be sent to the 1970 to 1973. Library of Congress. HON. EDDIE BERNICE JOHNSON In 1980, Margareta was appointed as the The teachers and administrators at OF TEXAS Director of COPE for the Maryland State and Whiteside have been a great asset for these IN THE HOUSE OF REPRESENTATIVES District of Columbia AFL–CIO, and earned a children, as they have combined service and Wednesday, June 12, 2002 well-deserved reputation through the years as education in a way that is fun and creative. a determined advocate for all workers and a There are 412 students in 5th through 8th Ms. EDDIE BERNICE JOHNSON of Texas. gritty political organizer. grade at the school, and they have all been in- Mr. Speaker, whereas on March 9, 2002, the She has worked on numerous political cam- volved with service-learning projects. The chil- Lincoln High School Tigers boys varsity bas- paigns at the local, state and national levels, dren have not only found a new enthusiasm ketball team in Dallas, Texas completed its and it’s more than fair to say that her unrelent- for their education, but they have performed 2001–2002 season undefeated, with 40 wins, ing work across the state on behalf of working valuable work for the community as well. 0 losses; families built enduring relationships between Whiteside continues to make a significant Whereas the Lincoln High School Tigers the labor community and elected officials at all contribution to Southwestern Illinois and the won the 2002 Texas State Championship; levels of government. entire nation, Mr. Speaker, I urge my col- Whereas the Lincoln High School Tigers Margareta’s boundless energy helped her leagues to join me in expressing appreciation were ranked number one by USA Today na- balance her dedication to improving the lives to the Whiteside School District for its dedica- tional high school ranking poll; of working men and women, with her love and tion to service. Whereas the coach of the Lincoln High School Tigers, Mr. Leonard Bishop, has also devotion to her children, Brenda and Philip, f and her grandchildren. been awarded the national Coach Awards by And as she enjoys semi-retirement, she A SPECIAL TRIBUTE TO JIM USA Today and the Black Coaches Associa- should do so with the knowledge that her ef- STREACKER ON HIS SEVENTIETH tion, as well as the Dallas All Sports Awards forts over the last 40 years have changed and BIRTHDAY area Coach of the Year; improved people’s lives, and that her labor Whereas the Lincoln High School Lady Ti- continues the activism, stretching all the way HON. PAUL E. GILLMOR gers girls’ team won the, District 12–4A Cham- back to notables as Susan B. Anthony, So- OF OHIO pionship in Dallas, Texas, having completed the 2001–2002 season undefeated with 12 journer Truth and Mary Harris ‘‘Mother’’ IN THE HOUSE OF REPRESENTATIVES wins, 0 losses; Jones—who understood that labor fairness Wednesday, June 12, 2002 was rooted in morality and inspired by the Whereas the Lincoln High School Lady Ti- American quest for equality, justice and fair- Mr. GILLMOR. Mr. Speaker, I rise today to gers continued to win their regional champion- ness. pay special tribute to an outstanding gen- ship and were also state finalists; As Mother Jones said many years ago: tleman from Ohio’s Fifth Congressional Dis- Whereas the Lincoln High School Football ‘‘The cause of the worker continues on- trict. Jim Streacker of Tiffin, Ohio, will cele- team won their district championship, finishing ward.... The future is in labor’s strong, brate a milestone seventieth birthday on June the season undefeated with 6 wins, 0 losses; rough hands.’’ 15, 2002, and That future, today, is much brighter for Mr. Speaker, Jim will be celebrating this Whereas the Lincoln High School National working men and women, in large part due to monumental occasion with family and friends, Society of Black Engineers (NSBE) Jr. Club the hard work of trade unionists like Margareta all who have known of his selfless contribu- won the 2001 Dallas Boosting Engineers, Crampton. To her, we owe a deep gratitude tions to the local community. Serving the com- Science & Technology (BEST) award, includ- and offer our thanks and deep appreciation. munity was not only Jim’s duty but also his ing the Most Elegant Robot award; f honor. These chances to give back to the Be It Proclaimed, That I— community have brought him a lifetime of both (1) congratulate—The Lincoln High School WHITESIDE SCHOOL NAMED AS personal and professional achievement Jim Tigers boys varsity basketball team for win- NATIONAL SERVICE-LEARNING truly is a valued asset to the City of Tiffin. ning the 2002 Texas State Championship; LEADER SCHOOL Jim has served Tiffin well throughout his The Lincoln High School Lady Tigers girls years both, professionally and philanthropi- basketball team for winning their 2002 district HON. JERRY F. COSTELLO cally. In his state of semi-retirement from and regional championships; OF ILLINOIS Streacker Tractor Sales, he continues to serve The Lincoln High School Football team for IN THE HOUSE OF REPRESENTATIVES the agricultural community as Secretary of the winning the 2001 district championship; and Tractor Sales Association. He also holds a The Lincoln High School NSBE Jr. Club for Wednesday, June 12, 2002 seat on the Seneca Industrial Environmental winning the BEST award; Mr. COSTELLO. Mr. Speaker, I rise today to Development Commission, and is a member (2) commend the Lincoln High School Ti- ask my colleagues to join me in honoring the of the local chamber of commerce, the local gers boys varsity basketball team, the Lady Ti- Whiteside School District in Belleville, Illinois business boosters, and the Key Bank Advisory gers girls basketball team, the football team which is one of 16 schools in the United Board. and the NSBE Jr. Club for their outstanding States to serve as a 2002 National Service- Jim serves charitable interests of the Saint performance during the entire 2001–2002 sea- Learning Leader School. This honor dem- Francis Foundation, and the Betty Jane Advi- son and for their commitment to high stand- onstrates the school’s strong commitment to sory Board. Through Jim’s work in the Calvert ards of character, perseverance, and team- service-learning in its curriculum. Foundation, he has helped manage the invest- work; and Whiteside has undertaken many projects ments of the local school system in an effort (3) recognize the achievements of the play- which demonstrate its exceptional efforts in to keep the schools properly financed and ers, coaches, and support staff who were in- service. Students at the school have created a maintain a high standard of education for the strumental in helping the athletic teams and garden area, an outdoor science lab and a community’s children. He is also active in the clubs win their respective championships and pond, including a fountain and fish. Also, sixth- local VFW, American Legion, and AMVETS awards. CONGRESSIONAL RECORD — Extensions of Remarks E1045 INTRODUCTION OF H.R. 4914, THE (b)(1) Notwithstanding any other provision fense and commercial transportation re- CENTER FOR COMMERCIAL DE- of law, from amounts made available to quirements. Voyager’s proposed trimaran PLOYMENT OF TRANSPORTATION carry out this subsection, the Secretary of high speed. cruise vessels, in addition to rep- TECHNOLOGY DEVELOPMENT AU- Defense, in cooperation with the Secretary resenting the next step in the evolution of of Transportation, shall carry out a program cruise vessel design, offer distinct advan- THORIZATION ACT OF 2002 under this subsection to develop and deploy tages for both commercial and defense sea- dual use transportation technologies for lift missions. In fact, a representative of the HON. STEPHEN HORN commercial and military applications, in- Department of the Navy has told Voyager OF CALIFORNIA cluding but not limited to the following: Holdings that they ire ‘‘particularly pleased IN THE HOUSE OF REPRESENTATIVES (A) Agile port. that [this] design includes a number of fea- (B) High-speed sealift. tures that will greatly enhance the defense Wednesday, June 12, 2002 (C) Advanced cargo and passenger vessel related value of your vessel . . . These high- hull design, propulsion systems, and con- Mr. HORN. Mr. Speaker, I rise today to in- speed long range vessels . . . will signifi- struction employing national defense fea- cantly enhance our nation’s United States- troduce the Center for Commercial Deploy- tures. ment of Transportation Technology Develop- (D) Rapid deployment. flag commercial sealift capability.’’ ment Authorization Act of 2002. The Center (E) Command and control, and decision We believe CCDoTT’s mission to pursue for the Commercial Deployment of Transpor- support. dual use defense and commercial tech- tation Technologies (CCDoTT) is a chartered (F) Maritime, port, and cargo security. nologies will, as in the case of the high-speed (2) The Secretary of Defense shall carry university center at California State University trimaran cruise vessels, help the United out such program in cooperation with the States gain worldwide leadership in the ad- Long Beach (CSULB) functioning as a partner- Secretary of Transportation under section ship of academic institutions, government, and vanced high-speed ocean transportation mar- 2358(b)(4) of title 10, United States Code. ket. Your legislation, by providing CCDoTT (3) The program required by paragraph (1) commercial corporations. with a multi-year authorization, will enable shall be carried out pursuant to a coopera- The CCDoTT project is operated by the CCDoTT to continue to pursue its mandates tive agreement to be entered into by the Sec- CSULB Foundation in conjunction with the De- over the long term with the knowledge that retary of Defense, the Secretary of Transpor- partment of Defense, the United States Trans- its work can proceed in an uninterrupted portation Command (USTRANSCOM), and the tation, and the Center for Commercial De- ployment of Transportation Technology of fashion. Department of Transportation, through the California State University, Long Beach. We again express our support for your leg- Maritime Administration (MARAD). (4) Of amounts appropriated or otherwise islation and look forward to working with CCDoTT was organized to pursue a broad made available for the use of the Department you and your colleagues for its enactment range of defense and commercial tech- of Defense for research, development, test, this year. nologies, to analyze transportation problems and evaluation, Defense-wide, the following Sincerely, and environmental impacts, and to develop amounts shall be available for a task and de- Captain Timothy Brown, Masters, Mates technological, procedural, computer, or equip- livery order contract under section 2304(c) of & Pilots; Ron Davis, Marine Engineers’ ment solutions. CCDoTT and its associates title 10, United States Code, to carry out this Beneficial Association; Henry Disley, subsection, to remain available until ex- are well versed in transportation technologies, Marine Fireman’s Union; Gunnar pended: Lundeberg, Sailors’ Union of the Pa- computer simulation and modeling, defense, (A) $10,000,000 for fiscal year 2003. cific; Michael Sacco, Seafarers Inter- electronic commerce, economic and cost mod- (B) $15,000,000 for each of fiscal years 2004 national Union. eling, state-of-the-art training and educational and 2005. solutions, and advanced manufacturing tech- (C) $20,000,000 for each of fiscal years 2006 and 2007. f nologies. Recent developments with respect to na- Below is a letter of June 11, 2002, from five Presidents of the marine unions who want to THE BRACERO JUSTICE ACT OF tional security issues and more specifically 2002 maritime related security issues, have intro- see the dedicated ship-building in high-speed duced a new dimension to a number of passenger and cargo vessels. CCDoTT program undertakings. These initia- JUNE 11, 2002. HON. LUIS V. GUTIERREZ tives seek to advance the technology, proce- Hon. STEVE HORN, dures and equipment associated with im- House of Representatives, OF ILLINOIS Washington, DC. proved surveillance and security of cargo IN THE HOUSE OF REPRESENTATIVES DEAR CONGRESSMAN HORN: On behalf of the movement to and from domestic and foreign undersigned maritime or organizations, we Wednesday, June 12, 2002 marine ports and terminals. are writing to express our support for your Working with its partners, CCDoTT will con- legislation, H.R. 4914, the ‘‘Center for Com- Mr. GUTIERREZ. Mr. Speaker, I rise today tinue to help our Armed Forces meet their mercial Deployment of Transportation Tech- to announce the introduction of my bill, the rapid deployment needs for the new millen- nology Development Authorization Act of Bracero Justice Act of 2002. I am joined by nium while concurrently advancing the com- 2002.’’ We are especially pleased your legisla- Representatives FARR, FILNER, PASTOR, petitive capability of U.S. based shipping inter- tion would specifically authorize the devel- NAPOLITANO, SOLIS, BACA, ROYBAL-ALLARD, ests and maritime security related efforts cur- opment and deployment of dual use transportation technologies for commercial and mili- SERRANO, MCGOVERN, RODRIGUEZ, FRANK, rently under consideration. Mr. Speaker, it is my hope that my col- tary applications in the area of high-speed MENENDEZ, MILLENDER-MCDONALD, passenger vessels. SCHAKOWSKY, GONZALEZ, ORTIZ, VELA´ZQUEZ, leagues will join me in supporting H.R. 4914, As you may be aware, our organizations ACEVEDO-VILA´, REYES, LIPINSKI, BECERRA, The Center for Commercial Deployment of have been working with Voyager Holdings, a Transportation Technologies Authorization Act U.S.-owned venture that has contracted to MCKINNEY, DAVIS (IL), and BERMAN. of 2002. build two very high-speed trimaran pas- I am very pleased to introduce legislation H.R. 4914 is printed below: senger vessels at Baltimore Marine Indus- that offers relief to people who have long tries. These vessels will incorporate a new, H.R. 4914 sought help. My bill would allow people to highly stable hull design developed by Be it enacted by the Senate and House of Rep- Kvaemer Masa Marine with technology sup- seek recourse in a venue that so often has resentatives of the United States of America in port from Science Applications International protected the most vulnerable in our society: Congress assembled, Corporation (SAIC), David Taylor Research the federal judicial system. In short, my bill SECTION 1. SHORT TITLE. Center, and Band Lavis & Associates. In ad- would give a deserving group of people their This Act may be cited as the ‘‘Center for dition, these vessels will be capable of con- day in court and to have their case heard on Commercial Deployment of Transportation version for national emergency support due the merits. Technology Development Authorization Act to their innovative militarily useful features of 2002’’. designs. Significantly, these design enhance- Bracero workers have been waiting for their SEC. 2. JOINT DEPARTMENT OF TRANSPOR- ments are based on the cooperative develop- day in court for nearly six decades. Sixty TATION/DEPARTMENT OF DEFENSE ment between the California State Univer- years ago, in 1942, the U.S. Government en- PROGRAM TO DEVELOP TRANSPOR- TATION TECHNOLOGIES FOR COM- sity at Long Beach and the Center for the tered into a program that was designed to MERCIAL AND MILITARY APPLICA- Commercial Development of Transportation help America get through the economic chal- TIONS. Technologies (CCDoTT). lenges that accompanied World War II. Under Section 8 of the Merchant Marine Act, 1920 The CCDoTT program enables the Depart- the program, nearly 5 million workers came to (46 U.S.C. App. 867) is amended— ment of Defense, through the United States (1) by designating the text as subsection Transportation Command, and the Depart- the United States from Mexico, to carry out (a); and ment of Transportation, through the Mari- the back-breaking labor that kept our Nation (2) by adding at the end the following new time Administration, to leverage advanced going. They filled in where labor was in short subsection: transportation technologies to address de- supply—especially in agriculture. Their work E1046 CONGRESSIONAL RECORD — Extensions of Remarks June 13, 2002 allowed America to carry out its war effort and would then (supposedly) transfer it to regional RECOGNITION OF JUNE L. to feed the country and its troops. banks. MCNEELY After the war, during the late 1940s and into Somewhere along the way—sometime dur- the 1960s, braceros helped keep America ing a process which we know began on U.S. growing and expanding. Some worked on soil and may, for all we know, ended on U.S. HON. HENRY E. BROWN JR. farms, others in railroad construction or other soil, too—the money was lost. Or taken away. jobs. Unfortunately, despite working a full day All we know is, the money is still owed. To OF SOUTH CAROLINA in the fields, despite being fully exposed to the discover where the money went, to get some IN THE HOUSE OF REPRESENTATIVES elements and a full range of other challenges, accounting of what went wrong, is one of the braceros did not receive compensation in full. primary goals of a lawsuit filed last year in fed- Wednesday, June 12, 2002 As many as 400,000 workers saw their pay- eral court. But, even that basic step is blocked checks reduced by as much as $70 million. until certain legal matters are resolved. These Mr. BROWN of South Carolina. Mr. Speak- During the first 7 years of the program, it matters are addressed in this bill, the Bracero er, I would like to submit the following poem, was an overt, explicit policy that each worker Justice Act of 2002. ‘‘First Place in the Heart’’, by a fellow South would sacrifice 10 percent of his or her salary, For example, my bill addresses the issue of Carolinian, June L. McNeely. with the promise that it would be available to the statute of limitations. We must eliminate This poem expresses my feelings toward them upon their return to Mexico. It was a pol- any time limits on legal action. Just as we patriotism, family, and faith. by: June L. icy which very well may have continued long have seen with Holocaust survivors who were McNeely after that period, and affected far more work- robbed of their assets or the Japanese citi- ers. And, yet, the money disappeared. It went zens interned in our country for years— ‘‘FIRST PLACE IN THE HEART’’ unaccounted for. At least $70 million of it— waiving the statute of limitations is a nec- which, with interest, may be worth as much as essary step in seeking justice that is decades (By June L. McNeely) $500 million to a billion dollars today—was overdue. My bill also addresses jurisdictional Let’s put GOD back in America, let HIM gone. questions, allowing suits to be filed in any dis- have first place in our heart. Today, Members of both parties speculate trict court, so the full universe of workers can Let’s put GOD back in America and right about the possibility that American workers will gain relief. now is the time to start. not get the full Social Security payout to which The Bracero Justice Act also seeks a waiver Let us all stand together as a family hand in hand and pray for GOD’s mercy and for they are entitled upon their retirement. Here is of sovereign immunity, so that action can be the healing of our land. a real-life example of exactly that scenario. In taken against a government—whether the HE has given us a country that is special to this case, it was tens (perhaps hundreds) of United States or Mexican Government—if it is us all. millions of dollars that rightfully belonged to found that their actions contributed to this fi- Let’s not bow to the enemy, but keep stand- people who had little resources then—who asco. Eligibility of class members matters, so ing very tall. had little resources in the years since. And, in that the full category of workers who may Let’s put GOD back in America. This beau- many cases, few resources today. Without this have been harmed, which may have included tiful country we call home. legislation, these people will lack the most braceros working into the late 1960s, may Put HIM in our homes and schools and all of basic resource of all: the ability to have their have legal standing. In short, what we are our gathering places. complaint heard. asking is that such cases be heard and de- Then everyone in this world will see GOD’s Do we know where the money went? No. cided on their merits so that justice cannot be love in all our faces. However, we do know this: Under the Bracero dismissed on a technicality, so that we can Put all of your trust in your HEAVENLY program, the U.S. Government acted as the discover—first and foremost—the truth. FATHER. He will all of your burdens employer. Workers were contracted out to var- I am confident that my colleagues will agree bear. HE will never leave you nor forsake you. ious businesses—farms, for example. The that the American legislative and judicial sys- HE has promised to always be there. U.S. Government withheld 10 percent of their tem can be put to work to help people who HE will help you through each moment so all wages. The funds were then to be transferred were put to work to build and grow and feed of your fears will cease. to Wells-Fargo Bank and this bank was to our country. Please join me in cosponsoring Let’s put GOD back in America and with HIS transfer it to the Banco de Mexico which my bill, the Bracero Justice Act of 2002. help live with others in peace. Thursday, June 13, 2002 Daily Digest

HIGHLIGHTS The House passed H.R. 4019, Permanent Marriage Penalty Relief Act of 2002. Senate aliens as children for purposes of that Act in cases Chamber Action where the aliens ‘‘age-out’’ while awaiting immigra- Routine Proceedings, pages S5465–S5562 tion processing, after agreeing to a committee Measures Introduced: Seven bills and four resolu- amendment in the nature of a substitute, and the tions were introduced, as follows: S. 2617–2623, S. following amendment proposed thereto: Res. 284–286, and S. Con. Res. 121. Page S5535 Pages S5558–59 Measures Reported: Reid (for Feinstein) Amendment No. 3845, to make certain technical corrections. Page S5559 S. 633, to provide for the review and management of airport congestion, with an amendment in the na- Child Status Protection Act: Senate passed H.R. ture of a substitute. (S. Rept. No. 107–162) 1209, to amend the Immigration and Nationality H. Con. Res. 387, recognizing the American Soci- Act to determine whether an alien is a child, for ety of Civil Engineers for reaching its 150th Anni- purposes of classification as an immediate relative, versary and for the many vital contributions of civil based on the age of the alien on the date the classi- engineers to the quality of life of our Nation’s peo- fication petition with respect to the alien is filed, ple including the research and development projects after agreeing to a committee amendment in the na- that have led to the physical infrastructure of mod- ture of a substitute, and the following amendment ern America. proposed thereto: Pages S5560–61 S. Res. 283, recognizing the successful completion Reid (for Feinstein) Amendment No. 3846, to of democratic elections in the Republic of Colombia. make certain technical corrections. Page S5561 S. 1956, to combat terrorism and defend the Na- Commending Los Angeles Lakers: Senate agreed tion against terrorist attacks, with an amendment in to S. Res. 286, commending and congratulating the the nature of a substitute. Los Angeles Lakers for their outstanding drive, dis- S. Con. Res. 104, recognizing the American Soci- cipline, and mastery in winning the 2002 National ety of Civil Engineers on the occasion of the 150th Basketball Association Championship. Page S5561 anniversary of its founding and for the many vital Terrorism Risk Insurance Act: Senate began con- contributions of civil engineers to the quality of life sideration of S. 2600, to ensure the continued finan- of the people of the United States, including the re- cial capacity of insurers to provide coverage for risks search and development projects that have led to the from terrorism, taking action on the following physical infrastructure of modern America. amendments proposed thereto: S. Con. Res. 114, expressing the sense of Congress Pages S5472–S5501, S5503–13, S5514–28 regarding North Korean refugees who are detained Rejected: in china and returned to North Korea where they face torture, imprisonment, and execution, with an McConnell Amendment No. 3836, to provide for amendment in the nature of a substitute and with procedures for civil actions. (By 50 yeas to 46 nays (Vote No. 152), Senate tabled the amendment.) an amended preamble. Page S5534 Pages S5481–88 Measures Passed: Nelson (FL) Amendment No. 3834, to restrict in- Child Status Protection Act: Senate passed S. surance rate increases for terrorism risks. (By 70 yeas 672, to amend the Immigration and Nationality Act to 24 nays (Vote No. 153), Senate tabled the amend- to provide for the continued classification of certain ment.) Pages S5488–91, S5494–S5500 D607 D608 CONGRESSIONAL RECORD — DAILY DIGEST June 13, 2002 Withdrawn: tion of the amendment; following which, Senate vote Hatch Amendment No. 3839, to implement the on passage of the bill. Pages S5511–13 International Convention for the Suppression of Ter- Nominations Received: Senate received the fol- rorist Bombings to strengthen criminal laws relating lowing nominations: to attacks on places of public use, to implement the Rebecca Dye, of North Carolina, to be a Federal International Convention of the Suppression of the Maritime Commissioner for the term expiring June Financing of Terrorism, to combat terrorism and de- 30, 2005. fend the Nation against terrorist acts. William A. Schambra, of Virginia, to be a Mem- Pages S5491–94, S5500 ber of the Board of Directors of the Corporation for Pending: National and Community Service for a term expiring Santorum Amendment No. 3842, to implement September 14, 2006. the International Convention for the Suppression of Donna N. Williams, of Texas, to be a Member of Terrorist Bombings to strengthen criminal laws re- the Board of Directors of the Corporation for Na- lating to attacks on places of public use, to imple- tional and Community Service for a term expiring ment the International Convention of the Suppres- October 6, 2006. sion of the Financing of Terrorism, to combat ter- Earl A. Powell III, of Virginia, to be a Member rorism and defend the Nation against terrorist acts. of the National Council on the Arts for a term ex- Pages S5507–09 piring September 3, 2006. Allen Amendment No. 3838, to provide for satis- Robert J. Battista, of Michigan, to be a Member faction of judgments from frozen assets of terrorists, of the National Labor Relations Board for the term terrorist organizations, and State sponsors of ter- of five years expiring August 27, 2006. rorism. Pages S5509–13 2 Navy nominations in the rank of admiral. Brownback Amendment No. 3843, to prohibit Pages S5561–62 the patentability of human organisms. Messages From the House: Pages S5533–34 Pages S5514–16, S5517–28 Measures Referred: Page S5534 Ensign Amendment No. 3844 (to Amendment No. 3843), to prohibit the patentability of human Enrolled Bills Presented: Page S5534 organisms. Pages S5516–17 Executive Reports of Committees: Pages S5534–35 A unanimous-consent agreement was reached pro- Additional Cosponsors: Pages S5535–36 viding for further consideration of the bill at 9:35 Statements on Introduced Bills/Resolutions: a.m., on Friday, June 14, 2002, that Santorum Amendment No. 3842 be withdrawn. Further, that Pages S5536–45 following disposition of S. 1770 (listed below), Sen- Additional Statements: Pages S5531–33 ate will continue consideration of this bill, with a Amendments Submitted: Pages S5545–57 vote to occur on Allen Amendment No. 3838 (listed Authority for Committees to Meet: Pages S5557–58 above). Page S5511 Privilege of the Floor: Page S5558 Suppression of Terrorist Bombings—Agreement: A unanimous-consent agreement was reached pro- Record Votes: Two record votes were taken today. viding that when the Senate resume consideration of (Total—153) Pages S5488, S5550 the terrorism insurance bill on Friday, June 14, at Adjournment: Senate met at 9 a.m., and adjourned 9:35 a.m., the Santorum Amendment No. 3842 at 8:50 p.m., until 9 a.m., on Friday, June 14, (listed above) be withdrawn. Further that the Judici- 2002. (For Senate’s program, see the remarks of the ary Committee be discharged from further consider- Acting Majority Leader in today’s Record on page ation of H.R. 3275, Suppression of the Financing of S5561). Terrorism Convention Implementation Act, and the Senate proceed to its consideration, with a Leahy/ Committee Meetings Hatch substitute amendment to be proposed thereto, with a vote to occur on adoption of the substitute (Committees not listed did not meet) amendment; following which, Senate vote on passage of the bill; that upon disposition of H.R. 3275, the APPROPRIATIONS—INTERIOR Judiciary Committee be discharged from further con- Committee on Appropriations: Subcommittee on Interior sideration of S. 1770, Terrorist Bombings Conven- concluded hearings on proposed budget estimates for tion Implementation Act, and the Senate proceed to fiscal year 2003 for the Department of the Interior, its consideration, with a Leahy/Hatch amendment to after receiving testimony from Gale A. Norton, Sec- be proposed thereto, with a vote to occur on adop- retary of the Department of the Interior. June 13, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D609 BUSINESS MEETING Doc. 96–53), after receiving testimony from Rep- Committee on Armed Services: Senate met in closed ses- resentatives Maloney, Millender-McDonald, Morella, sion to discuss the Crusader artillery system pro- Woolsey, and Jo Anne Davis; Harold Hongju Koh, gram. Yale Law School, New Haven, Connecticut, former Assistant Secretary of State for Human Rights; Juli- TRANSPORTATION EQUITY ACT ette Clagett McLennan, Easton, Maryland, former Committee on Banking, Housing, and Urban Affairs: U.S. Representative to the United Nations Commis- Subcommittee on Housing and Transportation held sion on the Status of Women; Jane E. Smith, Busi- oversight hearings on the implementation and reau- ness and Professional Women/USA, and Jeane Kirk- thorization of the public transportation provisions of patrick, American Enterprise Institute, former Per- the Transportation Equity Act for the 21st Century manent Representative to the United Nations, both (TEA–21) (105–178), receiving testimony from of Washington, D.C.; Kathryn O. Balmforth, Wood Mayor Kwame M. Kilpatrick, Detroit, Michigan; Crapo, Salt Lake City, Utah; and Christina Hoff Mayor H. Brent Coles, Boise, Idaho; and Kenneth Sommers, American Enterprise Institute, Chevy Mayfield, Dallas County Commissioners Court, Dal- Chase, Maryland. las, Texas, on behalf of the National Association of ELEMENTARY AND SECONDARY Counties. EDUCATION Hearings recessed subject to call. Committee on Health, Education, Labor, and Pensions: BUSINESS MEETING Committee concluded oversight hearings to examine Committee on Finance: Committee began markup of the implementation of the No Child Left Behind H.R. 7, to provide incentives for charitable contribu- Act (P.L. 107–110), focusing on the Reading First tions by individuals and businesses, to improve the and other literacy-related programs and strategies, effectiveness and efficiency of government program receiving testimony from Eugene W. Hickok, Under delivery to individuals and families in need, and to Secretary of Education; Trisha Rhodes, Hancock enhance the ability of low-income Americans to gain County Consortium, Bar Harbor, Maine; Ruth Na- financial security by building assets, but did not than, Rancho Romero Elementary, Alamo, Cali- complete action thereon, and recessed subject to call. fornia; and Elizabeth V. Primas, Anthony Bowen El- ementary School, Washington, D.C., on behalf of the BUSINESS MEETING International Reading Association’s Urban Diversity Committee on Foreign Relations: Committee ordered fa- Initiatives Commission. vorably reported the following business items: BUSINESS MEETING S. 2525, to amend the Foreign Assistance Act of 1961 to increase assistance for foreign countries seri- Committee on the Judiciary: Committee ordered favor- ously affected by HIV/AIDS, tuberculosis, and ma- ably reported the following business items: laria; S. 1956, to combat terrorism and defend the Na- S. Con. Res. 114, expressing the sense of Congress tion against terrorist attacks, with an amendment in regarding North Korean refugees who are detained the nature of a substitute; in China and returned to North Korea where they S. Con. Res. 104, recognizing the American Soci- face torture, imprisonment, and execution, with an ety of Civil Engineers on the occasion of the 150th amendment in the nature of a substitute; anniversary of its founding and for the many vital S. Res. 283, recognizing the successful completion contributions of civil engineers to the quality of life of democratic elections in the Republic of Colombia; of the people of the United States, including the re- and search and development projects that have led to the The nomination of Tony P. Hall, of Ohio, for the physical infrastructure of modern America; rank of Ambassador during his tenure of service as H. Con. Res. 387, recognizing the American Soci- U.S. Representative, to the United Nations Agencies ety of Civil Engineers for reaching its 150th Anni- for Food and Agriculture, Department of State. versary and for the many vital contributions of civil engineers to the quality of life of our Nation’s peo- DISCRIMINATION AGAINST WOMEN ple including the research and development projects TREATY that have led to the physical infrastructure of mod- Committee on Foreign Relations: Committee concluded ern America; and hearings on the Convention on the Elimination of The nominations of Henry E. Autrey, to be All Forms of Discrimination Against Women, adopt- United States District Judge for the Eastern District ed by the United Nations General Assembly on De- of Missouri, Richard E. Dorr, to be United States cember 18, 1979, and signed on behalf of the District Judge for the Western District of Missouri, United States of America on July 17, 1980 (Treaty David C. Godbey, to be United States District Judge D610 CONGRESSIONAL RECORD — DAILY DIGEST June 13, 2002 for the Northern District of Texas, Henry E. Hud- NOMINATIONS son, to be United States District Judge for the East- Committee on the Judiciary: Committee concluded ern District of Virginia, Timothy J. Savage, to be hearings on the nominations of John M. Rogers, of United States District Judge for the Eastern District Kentucky, to be United States Circuit Judge for the of Pennsylvania, Amy J. St. Eve, to be United States Sixth Circuit, David S. Cercone, to be United States District Judge for the Northern District of Illinois; District Judge for the Western District of Pennsyl- and Gregory Robert Miller, to be United States At- vania, Morrison C. England, Jr., to be United States torney for the Northern District of Florida, Kevin District Judge for the Eastern District of California, Vincent Ryan, to be United States Attorney for the Kenneth A. Marra, to be United States District Northern District of California, Randall Dean An- Judge for the Southern District of Florida, and Law- derson, to be United States Marshal for the District rence A. Greenfeld, of Maryland, to be Director of of Utah, Ray Elmer Carnahan, to be United States the Bureau of Justice Statistics, Department of Jus- Marshal for the Eastern District of Arkansas, David tice, after the nominees testified and answered ques- Scott Carpenter, to be United States Marshal for the tions in their own behalf. Mr. Rogers was introduced District of North Dakota, Theresa A. Merrow, to be by Senators McConnell and Bunning, Mr. Cercone United States Marshal for the Middle District of was introduced by Senators Specter and Santorum, Georgia, Ruben Monzon, to be United States Mar- Mr. England was introduced by Senator Feinstein, shal for the Southern District of Texas, and James and Mr. Greenfeld was introduced by Representative Michael Wahlrab, to be United States Marshal for Bartlett. the Southern District of Ohio, all of the Department BUSINESS MEETING of Justice. Select Committee on Intelligence: Committee met in closed session to consider the events surrounding September 11, 2001, and made no announcements. h House of Representatives 2010 upon certification by the Director of the Office Chamber Action of Management and Budget that the tax reductions Measures Introduced: 16 public bills, H.R. will not result in the raid on the social security trust 4929–4944; and 4 resolutions, H. Con. Res. funds by a yea-and-nay vote of 198 yeas to 213 nays 418–420, and H. Res. 443, were introduced. with 1 voting ‘‘present’’, Roll No. 228. Pages H3561–62 Pages H3531–39 Reports Filed: Reports were filed as follows: Agreed to H. Res. 440, the rule that provided for H.R. 3429, to direct the Secretary of Transpor- consideration of the bill by a yea-and-nay vote of tation to make grants for security improvements to 385 yeas to 22 nays, Roll No. 226. Pages H3515–18 over-the-road bus operations, amended (H. Rept. Legislative Program: The Majority Leader an- 107–507). Page H3561 nounced the Legislative Program for the week of Journal: Agreed to the Speaker’s approval of the June 17. Pages H3540–41 Journal of Wednesday, June 12 by a recorded vote Meeting Hour—Monday, June 17: Agreed that of 344 ayes to 56 noes with 1 voting ‘‘present,’’ Roll when the House adjourns today, it adjourn to meet No. 227. Pages H3515, H3518–19 at 12:30 p.m. on Monday June 17 for morning-hour Repeal of Marriage Tax Penalty Sunset: The debate. Page H3541 House passed H.R. 4019, to provide that the mar- Meeting Hour—Tuesday, June 18: Agreed that riage penalty relief provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 when the House adjourns on Monday, June 17, it shall be permanent by a recorded vote of 271 ayes adjourn to meet at 10:30 a.m. on Tuesday, June 18 for morning hour debate. Page H3541 to 142 noes, Roll No. 229. Pages H3519–40 Rejected the Matsui amendment in the nature of Calendar Wednesday: Agreed to dispense with the a substitute that sought to make the marriage pen- Calendar Wednesday business of Wednesday, June alty relief provisions permanent during calendar year 19. Page H3541 June 13, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D611 Quorum Calls—Votes: Two yea-and-nay votes and Trials Design and Analysis; and Richard Pazdur, two recorded votes developed during the proceedings M.D., Director, Division of Oncology Drug Prod- of the House today and appear on pages H3518, ucts, Office of Drug Evaluation, Center for Drug H3519, H3539, and H3540. There were no quorum Evaluation and Research; Harlan Waksal, M.D., calls. Chief Executive Officer, ImClone Systems, Inc.; Sam- Adjournment: The House met at 10 a.m. and ad- uel Waksal, former Chief Executive Officer, ImClone journed at 4:57 p.m. Systems, Inc., Laurie Smaldone, M.D., Senior Vice President, Global Regulatory Sciences, Bristol-Myers Committee Meetings Squibb Company; and a public witness. NATIONAL FIRE PLAN MEDICAID CLAIMS Committee on Agriculture: Subcommittee on Depart- Committee on Government Reform: Subcommittee on ment Operations, Oversight, Nutrition and Forestry Government Efficiency, Financial Management, and held a hearing on National Fire Plan and Outlook Intergovernmental Relations held a hearing on for 2002 Wildfire Season. Testimony was heard from ‘‘Medicaid Claims: Who’s Watching the Money?’’ Mark E. Rey, Under Secretary, Natural Resources Testimony was heard from Linda M. Calbom, Direc- and the Environment, USDA; Barry T. Hill, Direc- tor, Natural Resources and Environment, GAO; and tor, Financial Management and Assurance, GAO; the a public witness. following officials of the Department of Health and Human Services: Dennis Smith, Director, Centers for ‘‘FLAGS OF CONVENIENCE’’—VESSEL Medicare and Medicaid Services; and Michael F. OPERATIONS AND NATIONAL SECURITY Mangano, Principal Deputy Inspector General; and Committee on Armed Services: Special Oversight Panel Charles C. Maddox, Inspector General, District of on the Merchant Marine held a hearing on vessel op- Columbia. erations under ‘‘flags of convenience’’ and their implications on national security. Testimony was heard SOUTH AFRICA—DEVELOPING FOOD from Representative Wolf; the following officials of SECURITY CRISIS the U.S. Coast Guard, Department of Transpor- Committee on International Relations: Held a hearing on tation: Rear Adm. Paul J. Pluta, USCG, Assistant the Developing Food Security Crisis in Southern Af- Commandant, Marine Safety and Environmental Pro- tection; and Capt. William G. Shubert, USCG, Ad- rica. Testimony was heard from Andrew Natsios, ministrator, Maritime Administrator; and public Administrator, AID, Department of State; James T. witnesses. Morris, Executive Director, World Food Programme, United Nations; and a public witness. MISCELLANEOUS MEASURES Committee on Energy and Commerce: Ordered reported, ANGOLA: PROSPECTS FOR DURABLE PEACE as amended, the following bills: H.R. 4888, Mam- AND ECONOMIC RECONSTRUCTION mography Quality Standards Reauthorization Act of Committee on International Relations: Subcommittee on 2002; H.R. 1784, Women’s Health Office Act of Africa held a hearing on Angola: Prospects for Dura- 2001; and H.R. 3609, Pipeline Infrastructure Pro- ble Peace and Economic Reconstruction. Testimony tection to Enhance Security and Safety Act. was heard from Walter H. Kansteiner III, Assistant IMCLONE CANCER-DRUG STORY Secretary, Bureau of African Affairs, Department of Committee on Energy and Commerce: Subcommittee on State; George Chicoti, Vice-Minister, Foreign Affairs, Oversight and Investigations held a hearing entitled Ministry of External Affairs, Angola; and public wit- ‘‘An Inquiry into the ImClone Cancer-Drug Story. nesses. Testimony was heard from the following officials of the FDA, Department of Health and Human Serv- MISCELLANEOUS MEASURES ices: Patricia Keegan. M.D., Deputy Division Direc- Committee on the Judiciary: Ordered reported, as tor; Lee H. Pai-Scherf, M.D., Medical Officer, Clin- amended, H.R. 4598, Homeland Security Informa- ical Reviewer, Oncology Branch, Susan M. Jerian, tion Sharing Act. M.D., Medical Officer, Team Leader, Oncology The Committee also continued markup of H.R. Branch and George Q. Mills, M.D., Acting Chief, 3215, Combating Illegal Gambling Reform and Team Leader, Oncology, all with the Center for Bio- Modernization Act. logics Evaluation and Research, Office of Thera- peutic Research and Review, Division of Clinical Will continue June 18. D612 CONGRESSIONAL RECORD — DAILY DIGEST June 13, 2002

OVERSIGHT—COPYRIGHT ARBITRATION Administrator, Environmental Information, EPA; ROYALTY PANEL and public witnesses. Committee on the Judiciary: Subcommittee on Courts, JFK CENTER FOR THE PERFORMING ARTS the Internet, and Intellectual Property held an over- ACCESS STUDY AND PLAZA sight hearing on ‘‘The CART (Copyright Arbitration AUTHORIZATION Royalty Panel) Structure and Process.’’ Testimony was heard from Marybeth Peters, Register of Copy- Committee on Transportation and Infrastructure: Sub- rights and Associate Librarian for Copyright Services, committee on Economic Development, Public Build- Copyright Office of the United States, Library of ings and Emergency Management held a hearing on Congress. the John F. Kennedy Center for the Performing Arts Access Study and Plaza Authorization. Testimony ANTI-TERRORISM EXPLOSIVES ACT was heard from Mary K. Peters, Administrator, Fed- Committee on the Judiciary: Subcommittee on Crime, eral Highway Administration, Department of Trans- Terrorism, and Homeland Security approved for full portation; Michael Kaiser, President, The John F. Committee action H.R. 4864, Anti-Terrorism Ex- Kennedy Center for the Performing Arts; and Dan plosives Act of 2002. Tangherlini, Director, Department of Transportation, MARINE MAMMAL PROTECTION ACT District of Columbia. REAUTHORIZATION WATER QUALITY TRADING Committee on Resources: Subcommittee on Fisheries Committee on Transportation and Infrastructure: Sub- Conservation, Wildlife and Oceans held a hearing on committee on Water Resources and Environment H.R. 4781, to reauthorize the Marine Mammal Pro- held a hearing on Water Quality Trading—An Inno- tection Act of 1972. Testimony was heard from the vative Approach to Achieving Water Quality Goals following officials of the Department of Defense: on a Watershed Basis. Testimony was heard from Raymond F. DuBois, Jr., Deputy Under Secretary, Benjamin H. Grumbles, Deputy Assistant Adminis- Installations and Environment; and Vice Adm. trator, Water, EPA; Bruce L. Knight, Chief, Natural Charles Moore, USN, Deputy Chief of Naval Oper- Resources Conservation Service, USDA; Thomas M. ations, Readiness and Logistics; William T. Hogarth, Morrissey, Director, Water Management Bureau, De- Assistant Administrator, Fisheries, National Marine partment of Environmental Protection, State of Con- Fisheries Service, NOAA, Department of Commerce; necticut; Thomas R. Morgan, General Management, Marshall Jones, Deputy Director, U.S. Fish and Montgomery Water Works and Sanitary Sewer Wildlife Service, Department of the Interior; John E. Board, State of Alabama; and public witnesses. Reynolds III, Chairman, Marine Mammal Commis- sion; and public witnesses. FILIPINO WW II VETERANS HEALTH CARE MISCELLANEOUS MEASURES WITHIN DEPARTMENT OF VETERANS AFFAIRS Committee on Resources: Subcommittee on National Parks, Recreation and Public Lands held a hearing Committee on Veterans’ Affairs: Subcommittee on on the following bills: H.R. 2534, Lower Los Ange- Health held a hearing on the health care of Filipino les River and San Gabriel River Watershed Study World War II veterans within the Department of Act of 2001; H.R. 4530, Blue Ridge Heritage and Veterans Affairs. Testimony was heard from Rep- Cultural Partnership Area Study Act of 2002; and resentatives Gilman, Cunningham, Rohrabacher, 4822, Upper Missouri River Breaks Boundary Clari- Mink of Hawaii, Millender-McDonald and Under- fication Act. Testimony was heard from Representa- wood; Anthony J. Principi, Secretary, Department of tives Taylor of North Carolina and Rehberg; the fol- Veterans Affairs; Albert Del Rosario, Ambassador to lowing officials of the Department of the Interior: the United States, Embassy of the Philippines; rep- Katherine Stevenson, Associate Director, Cultural resentatives of veterans organizations; and public Resources, Stewardship and Partnerships, National witnesses. Park Service; and Patricia Morrison, Deputy Assist- EXTRATERRITORIAL INCOME REGIME ant Secretary, Land Minerals Management, Bureau of Land Management; and public witnesses. Committee on Ways and Means: Subcommittee on Se- lect Revenue Measures concluded hearings on the TRI LEAD RULE Extraterritorial Income (ETI) Regime. Testimony Committee on Small Business: Subcommittee on Regu- was heard from R. Glenn Hubbard, Chairman, latory Reform and Oversight held a hearing on the Council of Economic Advisers; Barbara Angus, Inter- TRI Lead Rule: Costs, Compliance and Science. Tes- national Tax Counsel, Department of the Treasury; timony was heard from Kim T. Nelson, Assistant and public witnesses. June 13, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D613 NEW PUBLIC LAWS COMMITTEE MEETINGS FOR FRIDAY, (For last listing of Public Laws, see DAILY DIGEST of June 11, JUNE 14, 2002 2002, p. D596) (Committee meetings are open unless otherwise indicated) H.R. 3448, to improve the ability of the United Senate States to prevent, prepare for, and respond to bioterrorism and other public health emergencies. Signed Committee on Health, Education, Labor, and Pensions: Sub- committee on Children and Families, to hold hearings to on June 12, 2002. (Public Law 107–188) examine increasing of options and awareness concerning the screening of newborns, 10:15 a.m., SD–430. House No committee meetings are scheduled. D614 CONGRESSIONAL RECORD — DAILY DIGEST June 13, 2002

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9 a.m., Friday, June 14 12:30 p.m., Monday, June 17

Senate Chamber House Chamber Program for Friday: After the transaction of any morn- Program for Monday: Consideration of suspensions. ing business (not to extend beyond 9:35 a.m.), Senate will continue consideration of S. 2600, Terrorism Risk Insurance Act. Also, Senate will consider H.R. 3275 and S. 1770, bills to implement the International Convention for the Suppression of Terrorist Bombings to strengthen criminal laws relating to attacks on places of public use, to implement the International Convention of the Suppression of the Financing of Terrorism, to combat terrorism and defend the Nation against terrorist acts, with votes to occur thereon.

Extension of Remarks, as inserted in this issue

HOUSE Gutierrez, Luis V., Ill., E1045 Ose, Doug, Calif., E1027 Hastert, J. Dennis, Ill., E1027 Paul, Ron, Tex., E1036 Ackerman, Gary L., N.Y., E1036 Hastings, Alcee L., Fla., E1041 Payne, Donald M., N.J., E1029 Baldacci, John Elias, Maine, E1043 Hoeffel, Joseph M., Pa., E1029 Pitts, Joseph R., Pa., E1034 Radanovich, George, Calif., E1033 Brown, Henry E., Jr., S.C., E1046 Horn, Stephen, Calif., E1045 Riley, Bob, Ala., E1038 Burton, Dan, Ind., E1032 Hoyer, Steny H., Md., E1041, E1043 Serrano, Jose´ E., N.Y., E1030 Clyburn, James E., S.C., E1027, E1028 Hunter, Duncan, Calif., E1028 Sherwood, Don, Pa., E1033 Collins, Mac, Ga., E1032 Johnson, Eddie Bernice, Tex., E1044 Simmons, Rob, Conn., E1036 Costello, Jerry F., Ill., E1038, E1039, E1042, E1044 LaHood, Ray, Ill., E1038 Skelton, Ike, Mo., E1035 Coyne, William J., Pa., E1039 Langevin, James R., R.I., E1031 Strickland, Ted, Ohio, E1031 Crowley, Joseph, N.Y., E1030 Lantos, Tom, Calif., E1037 Sweeney, John E., N.Y., E1028 DeFazio, Peter A., Ore., E1038 Luther, Bill, Minn., E1029, E1031 Thompson, Mike, Calif., E1027 DeLauro, Rosa L., Conn., E1041 McCollum, Betty, Minn., E1031 Traficant, James A., Jr., Ohio, E1029 Udall, Tom, N.M., E1037 DeMint, Jim, S.C., E1035 Maloney, Carolyn B., N.Y., E1036 Upton, Fred, Mich., E1037 Dingell, John D., Mich., E1043 Meek, Carrie P., Fla., E1040 Visclosky, Peter J., Ind., E1034 Eshoo, Anna G., Calif., E1030 Menendez, Robert, N.J., E1030 Walsh, James T., N.Y., E1027, E1029, E1035 Farr, Sam, Calif., E1035 Millender-McDonald, Juanita, Calif., E1033, E1034, Ferguson, Michael, N.J., E1031 E1036 Gillmor, Paul E., Ohio, E1040, E1042, E1044 Miller, George, Calif., E1027 Gilman, Benjamin A., N.Y., E1033, E1035 Ney, Robert W., Ohio, E1043

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