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, MONDAY, JANUARY 28, 2002 No. 4 House of Representatives The House was not in session today. Its next meeting will be held on Tuesday, January 29, 2002, at 12:30 p.m. Senate MONDAY, JANUARY 28, 2002

The Senate met at 3 p.m. and was lic for which it stands, one nation under God, Durbin amendment No. 2714 (to amend- called to order by the President pro indivisible, with liberty and justice for all. ment No. 2698), to provide enhanced unem- tempore (Mr. BYRD). f ployment compensation benefits. Nickles (for Bond) amendment No. 2717, to RECOGNITION OF THE ACTING PRAYER amend the Internal Revenue Code of 1986 to MAJORITY LEADER provide for a temporary increase in express- The Chaplain, Dr. Lloyd John The PRESIDENT pro tempore. The ing under section 179 of such code. Ogilvie, offered the following prayer: Senator from Nevada. Reid (for Baucus/Torricelli/Bayh) amend- Almighty God, Sovereign of this Na- ment No. 2718 (to amendment No. 2698), to f tion, we begin the work of this week amend the Internal Revenue Code of 1986 to with an acute sense of our account- SCHEDULE provide for a special depreciation allowance ability to You. We claim Solomon’s for certain property acquired after December Mr. REID. Mr. President, today we 31, 2001, and before January 1, 2004. promise, ‘‘In all your ways acknowl- will be working again on the economic edge Him, and He shall direct your Reid (for Harkin) amendment No. 2719 (to recovery legislation. We hope that Sen- amendment No. 2698), to provide for a tem- paths.’’—Prov. 3:6. In response, we say ators will offer amendments today and with the psalmist, ‘‘Let the words of porary increase in the Federal medical as- debate their measures. We hope we can sistance percentage for the medicaid pro- our mouths and the meditations of our have rollcall votes on these measures gram for fiscal year 2002. hearts be acceptable in Thy sight, O beginning tomorrow morning. There Allen amendment No. 2702 (to the language Lord.’’—Psalm 19:14. Help us to remem- will be rollcall votes tomorrow morn- proposed to be stricken by amendment No. ber that every thought we think and ing. The leader has said he wants some 2698), to exclude from gross income certain every word we speak is open to Your votes, so we will have some votes to- terrorist attack zone compensation of civil- scrutiny. We commit this week to love morrow morning whether on this or ian uniformed personnel. You with our minds and to honor You some other matters. Reid (for Baucus) amendment No. 2721 (to with our words. Guide the crucial deci- amendment No. 2698), to provide emergency sions ahead. Bless the Senators with f agriculture assistance. Your gifts of wisdom and vision. Grant RESERVATION OF LEADER TIME The PRESIDENT pro tempore. Who them the profound inner peace that re- The PRESIDENT pro tempore. Under seeks recognition? sults from trusting You completely. the previous order, the leadership time The Senator from Kentucky, Mr. Draw them together in oneness in di- is reserved. BUNNING. versity, unity in patriotism, and loy- f AMENDMENT NO. 2699, AS MODIFIED alty in a shared commitment to You. And may these who lead honor and en- HOPE FOR CHILDREN ACT Mr. BUNNING. Mr. President, I have an amendment at the desk, as modi- courage their leaders here in the Sen- The PRESIDENT pro tempore. Under fied. I call up amendment No. 2699. ate: TOM DASCHLE, TRENT LOTT, HARRY the previous order, the Senate will now REID, and DON NICKLES. In the name of resume consideration of H.R. 622, which The PRESIDENT pro tempore. The our Lord and Saviour. Amen. the clerk will report. clerk will report the amendment. The legislative clerk read as follows: f The legislative clerk read as follows: A bill (H.R. 622) to amend the Internal Rev- The Senator from Kentucky [Mr. BUNNING] PLEDGE OF ALLEGIANCE enue Code of 1686 to expand the adoption proposes an amendment numbered 2699, as The PRESIDENT pro tempore led the credit, and for other purposes. modified, to the language proposed to be Pledge of Allegiance, as follows: Pending: stricken by amendment No. 2698. I pledge allegiance to the Flag of the Daschle/Baucus amendment No. 2698, in the The amendment, as modified, is as United States of America, and to the Repub- nature of a substitute. follows:

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

S153

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VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S154 CONGRESSIONAL RECORD — SENATE January 28, 2002 (Purpose: To provide that the exclusion from presently have a situation where sti- There is a sufficient number. gross income for foster care payments pends are taxed depending on the age of The yeas and nays were ordered. shall also apply to payments by qualified the foster care family member, and placement agencies, and for other pur- whether or not they were placed by a Mr. BUNNING. Mr. President, I yield poses) for-profit agency or a nonprofit agency. the floor. At the end of the bill add the following: This makes no sense. The PRESIDENT pro tempore. The SEC. ll. EXCLUSION FOR FOSTER CARE PAY- Presently, if the placement is done MENTS TO APPLY TO PAYMENTS BY Senator from Nevada. QUALIFIED PLACEMENT AGENCIES. by a for-profit agency, or if the foster RECESS (a) IN GENERAL.—The matter preceding family member is over 18, the stipends subparagraph (B) of section 131(b)(1) (defin- are taxed. Mr. REID. Mr. President, I ask unan- ing qualified foster care payment) is amend- It is only if the foster family member imous consent that the Senate stand in ed to read as follows: is placed by a not-for-profit and they recess until 4 o’clock today. ‘‘(1) IN GENERAL.—The term ‘qualified fos- are under 18 that the stipends are not ter care payment’ means any payment made There being no objection, the Senate, taxed. at 3:11 p.m., recessed until 3:59 p.m. and pursuant to a foster care program of a State This is a distinction without a dif- or political subdivision thereof— reassembled when called to order by ference. ‘‘(A) which is paid by— the Presiding Officer (Mr. REID). ‘‘(i) a State or political subdivision there- It shouldn’t matter if the stipends of, or come from a for-profit or a nonprofit The PRESIDING OFFICER (Mr. ‘‘(ii) a qualified foster care placement agency, or if it is a needy individual LEVIN). The Senator from South Caro- agency, and’’. who is 12 or 42. lina is recognized. (b) QUALIFIED FOSTER INDIVIDUALS TO IN- We shouldn’t tax love and compas- CLUDE INDIVIDUALS PLACED BY QUALIFIED sion on such an arbitrary basis. f PLACEMENT AGENCIES.—Subparagraph (B) of Instead of sending a tax bill to the section 131(b)(2) (defining qualified foster in- dividual) is amended to read as follows: foster parents who are doing the right THE STIMULUS BILL ‘‘(B) a qualified foster care placement thing, we should give them a break and agency.’’ encourage their good intentions. Mr. HOLLINGS. Mr. President, last (c) QUALIFIED FOSTER CARE PLACEMENT What is important is that these week we were debating the stimulus AGENCY DEFINED.—Subsection (b) of section needy individuals are getting help, and bill. In that regard, there was some dis- 131 is amended by redesignating paragraph the families who help by offering to cussion by some of the leadership on (3) as paragraph (4) and by inserting after help should not be penalized for their the other side of the aisle to the effect paragraph (2) the following new paragraph: good deeds. that they were asking for all these tax ‘‘(3) QUALIFIED FOSTER CARE PLACEMENT Instead of punishing foster care, we cuts. However, on Saturday morning I AGENCY.—The term ‘qualified foster care placement agency’ means any placement should reward it. listened to the President. I heard him agency which is licensed or certified by— My amendment helps to do just this in his weekly radio address. ‘‘(A) a State or political subdivision there- by making it more attractive and more He said: of, or affordable to take in foster care family ‘‘(B) an entity designated by a State or po- members. I urge it to pass a strong stimulus bill, the litical subdivision thereof, This is a noncontroversial, bipartisan one that passed the House last year. for the foster care program of such State or idea. In fact, this proposal passed Con- political subdivision to make foster care So there is no question that the issue gress as part of the 1999 tax bill that of tax cuts as a stimulus is still one of payments to providers of foster care.’’ was vetoed by President Clinton. It (d) EFFECTIVE DATE.—The amendments the main issues to this particular Sen- also passed the House last year on two made by this section shall apply to taxable ator, and it really hackles this Senator years beginning after December 31, 2001. separate occasions as both a stand- in that we don’t have any taxes to cut. alone bill and as part of the centrist We don’t have any revenues. We don’t Mr. BUNNING. Mr. President, I ask stimulus package, H.R. 3529. unanimous consent that Senator have any surplus. I have been saying I have been working on this issue for this ever since we balanced the budget INHOFE be added to this amendment as almost 5 years, and I have never heard a cosponsor. back under Lyndon Baines Johnson. I one bit of criticism about it. will never forget at that particular The PRESIDENT pro tempore. With- It is a commonsense improvement to out objection, it is so ordered. time George Mahon on the House side, the Tax Code that would immediately the distinguished Congressman from Mr. BUNNING. Mr. President, I rise benefit families by letting them keep today to offer an amendment to the un- Texas, was chairman of the Appropria- more of the money that they receive tions Committee and we were working derlying bill. for the foster care of children of any My amendment corrects an inconsist- in December, after the November elec- age. tions; and in that particular December ency in the Tax Code that unfairly And it has the added, more impor- punishes foster care families and the session it looked like in order to bal- tant, benefit of promoting care and ance that budget, pay down the debt, foster care family members for whom compassion for some of our most needy they care. not increase it, not have a deficit, that individuals. we needed some $5 billion more in cuts. Many families that take in foster There are hundreds of thousands of We called over to Marvin Watson and care family members receive a stipend children and adults in foster care. Both said: ‘‘Ask the President will he go from the placement agency to help pro- they and the families who are looking along with another cut of some $5 bil- vide this care. after them would benefit from my lion.’’ We did it at that particular These stipends help defray the costs amendment. time, and we balanced the budget for for food, shelter, and the basic neces- My amendment is nothing new to 1968–1969. We were in the black as we sities. Congress. But let’s make it new to ended that particular year. It was right In some cases, families get these sti- those foster care families all across the at $2.9 billion. pends tax-free. But in others, families Nation. pay taxes on them as if they were ordi- Foster parenting is hard work. The Mr. President, I ask unanimous con- nary income. stipends are very small. Foster care sent to have printed in the RECORD at My amendment replaces this patch- families and their charges deserve and this particular point the deficits and work system by providing a single, need tax relief and fairness as much as interest costs over the past half cen- blanket rule that gives equal treat- anyone else. tury, since President Truman in 1947, ment to all of these stipends by simply Mr. President, I ask for the yeas and including President Bush today. excluding them from taxation. nays on this amendment. There being no objection, the mate- Because real world changes in foster The PRESIDENT pro tempore. Is rial was ordered to be printed in the care have outpaced the Tax Code, we there a sufficient number? RECORD, as follows:

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S155 HOLLINGS’ BUDGET REALITIES [In billions of dollars]

Annual in- Borrowed Unified def- Actual def- National creases in President and year U.S. budget trust funds icit with icit without debt spending for trust funds trust funds interest

Truman: 1947 ...... 34.5 ¥9.9 4.0 +13.9 257.1 ...... 1948 ...... 29.8 6.7 11.8 +5.1 252.0 ...... 1949 ...... 38.8 1.2 0.6 ¥0.6 252.6 ...... 1950 ...... 42.6 1.2 ¥3.1 ¥4.3 256.9 ...... 1951 ...... 45.5 4.5 6.1 +1.6 255.3 ...... 1952 ...... 67.7 2.3 ¥1.5 ¥3.8 259.1 ...... Eisenhower: 1953 ...... 76.1 0.4 ¥6.5 ¥6.9 266.0 ...... 1954 ...... 70.9 3.6 ¥1.2 ¥4.8 270.8 ...... 1955 ...... 68.4 0.6 ¥3.0 ¥3.6 274.4 ...... 1956 ...... 70.6 2.2 3.9 +1.7 272.7 ...... 1957 ...... 76.6 3.0 3.4 +0.4 272.3 ...... 1958 ...... 82.4 4.6 ¥2.8 ¥7.4 279.7 ...... 1959 ...... 92.1 ¥5.0 ¥12.8 ¥7.8 287.5 ...... 1960 ...... 92.2 3.3 0.3 ¥3.0 290.5 ...... Kennedy: 1961 ...... 97.7 ¥1.2 ¥3.3 ¥2.1 292.6 ...... 1962 ...... 106.8 3.2 ¥7.1 ¥10.3 302.9 9.1 Johnson: 1963 ...... 111.3 2.6 ¥4.8 ¥7.4 310.3 9.9 1964 ...... 118.5 ¥0.1 ¥5.9 ¥5.8 316.1 10.7 1965 ...... 118.2 4.8 ¥1.4 ¥6.2 322.3 11.3 1966 ...... 134.5 2.5 ¥3.7 ¥6.2 328.5 12.0 1967 ...... 157.5 3.3 ¥8.6 ¥11.9 340.4 13.4 1968 ...... 178.1 3.1 ¥25.2 ¥28.3 368.7 14.6 Nixon: 1969 ...... 183.6 0.3 3.2 +2.9 365.8 16.6 1970 ...... 195.6 12.3 ¥2.8 ¥15.1 380.9 19.3 1971 ...... 210.2 4.3 ¥23.0 ¥27.3 408.2 21.0 1972 ...... 230.7 4.3 ¥23.4 ¥27.7 435.9 21.8 1973 ...... 245.7 15.5 ¥14.9 ¥30.4 466.3 24.2 1974 ...... 269.4 11.5 ¥6.1 ¥17.6 483.9 29.3 Ford: 1975 ...... 332.3 4.8 ¥53.2 ¥58.0 541.9 32.7 1976 ...... 371.8 13.4 ¥73.7 ¥87.1 629.0 37.1 Carter: 1977 ...... 409.2 23.7 ¥53.7 ¥77.4 706.4 41.9 1978 ...... 458.7 11.0 ¥59.2 ¥70.2 776.6 48.7 1979 ...... 504.0 12.2 ¥40.7 ¥52.9 829.5 59.9 1980 ...... 590.9 5.8 ¥73.8 ¥79.6 909.1 74.8 Reagan: 1981 ...... 678.2 6.7 ¥79.0 ¥85.7 994.8 95.5 1982 ...... 745.8 14.5 ¥128.0 ¥142.5 1,137.3 117.2 1983 ...... 808.4 26.6 ¥207.8 ¥234.4 1,371.7 128.7 1984 ...... 851.9 7.6 ¥185.4 ¥193.0 1,564.7 153.9 1985 ...... 946.4 40.5 ¥212.3 ¥252.8 1,817.5 178.9 1986 ...... 990.5 81.9 ¥221.2 ¥303.1 2,120.6 190.3 1987 ...... 1,004.1 75.7 ¥149.8 ¥225.5 2,346.1 195.3 1988 ...... 1,064.5 100.0 ¥155.2 ¥255.2 2,601.3 214.1 Bush: 1989 ...... 1,143.7 114.2 ¥152.5 ¥266.7 2,868.3 240.9 1990 ...... 1,253.2 117.4 ¥221.2 ¥338.6 3,206.6 264.7 1991 ...... 1,324.4 122.5 ¥269.4 ¥391.9 3,598.5 285.5 1992 ...... 1,381.7 113.2 ¥290.4 ¥403.6 4,002.1 292.3 Clinton: 1993 ...... 1,409.5 94.2 ¥255.1 ¥349.3 4,351.4 292.5 1994 ...... 1,461.9 89.0 ¥203.3 ¥292.3 4,643.7 296.3 1995 ...... 1,515.8 113.3 ¥164.0 ¥277.3 4,921.0 332.4 1996 ...... 1,560.6 153.4 ¥107.5 ¥260.9 5,181.9 344.0 1997 ...... 1,601.3 165.8 ¥22.0 ¥187.8 5,369.7 355.8 1998 ...... 1,652.6 178.2 69.2 ¥109.0 5,478.7 363.8 1999 ...... 1,703.0 251.8 124.4 ¥127.4 5,606.1 353.5 2000 ...... 1,789.0 258.9 236.2 ¥22.7 5,628.8 362.0 Bush: 2001 ...... 1,863.9 270.5 127.1 ¥143.4 5,772.2 359.5 2002 ...... 2,003.3 250.7 ¥20.5 ¥271.2 6,043.4 331.7 *Historical Tables, Budget of the U.S. Government FY 1998; Beginning in 1962, CBO’s The Budget and Economic Outlook: Fiscal Years 2003–2012 January 23, 2002.

Mr. HOLLINGS. Mr. President, you In fiscal 2000, there was a deficit of I ask unanimous consent that this will see from this particular chart the $22.7 billion. For the first year of Presi- chart be printed in the RECORD, which truthfulness of what I have just stated; dent Bush, we now have a $143.4 billion reflects ‘‘trust funds looted to balance namely, we have not had a balanced deficit, and the Congressional Budget the budget.’’ budget since 1968–1969. More specifi- Office last week attested to the fact that they project that the deficit next There being no objection, the mate- cally, we keep talking about surpluses, rial was ordered to be printed in the but we get surpluses by using all kinds year, in 2002, is going to be $271.2 bil- RECORD, as follows: of fancy terminologies to dance around lion. Can you imagine that? Last year at this time we were talking about $5.6 in order to hide the money and the trillion in the black and now we are TRUST FUNDS LOOTED TO BALANCE BUDGET debt. The truth is, though, the net fig- talking about $271.2 billion in the red. [By fiscal year, in billions of dollars] ure as to whether the national debt I think it was Mark Twain years ago goes up or goes down; whether or not 2001 2002 2003 who said: ‘‘The truth is such a precious we spend only the money we have, or thing, it should be used very spar- Social Security ...... 1,170 1,333 1,512 we have to borrow in order to provide ingly.’’ That is exactly the way we ap- Medicare: for the appropriations that we have HI ...... 197 230 266 proach this particular role of ours as SMI ...... 42 43 42 provided; whether those things occur budgeteers and Congressmen and Sen- Military Retirement ...... 157 165 173 or not, the actual national debt has Civilian Retirement ...... 543 577 611 ators and everything else of that kind. Unemployment ...... 89 74 59 gone up, up, and away. It has gone up We actually hide the debt. The way we Highway ...... 24 20 13 some billions of dollars each year for hide the debt is what Alan Greenspan Airport ...... 14 12 9 the past 31 years, to the extent that Railroad Retirement ...... 27 27 28 euphemistically calls ‘‘intragovern- Other ...... 72 77 81 when we talked about surpluses all last mental transfers.’’ That sounds pretty, year, we did not end up with a surplus but what you are doing is looting the Total ...... 2,335 2,558 2,794 when President Clinton left town. retirement funds, the trust funds.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S156 CONGRESSIONAL RECORD — SENATE January 28, 2002 Mr. HOLLINGS. Mr. President, that counting Standards Board. In 1990, account- not control it and therefore keeps DFS debts shows in 2001 we took $1.170 trillion ing firms asked the SEC to endorse the 3% off its own balance sheet. What if DFS has from Social Security. We took from rule that had become a common, though un- trouble from customers not paying? Dell Medicare some $240 billion. From mili- official practice in the ’80s. The SEC didn’t spokesman T.R. Reid says any obligation of like the idea, but it didn’t stomp on it, ei- DFS are Tyco’s responsibility and Tyco tary retirement—the retirees who we ther. It asked the FASB to set tighter rules agrees. Jeffrey D. Simon, president of the say we want to look after—we looted to force consolidation of entities that were global vendor financing business at Tyco their retirement moneys, some $157 bil- effectively controlled by companies. FASB Capital, says Tyco would look at Dell’s cus- lion; from civilian retirement, $543 bil- drafted two overhauls of the rules but never tomers to pay and not to Dell. Tyco’s bal- lion—that is the civil service; from un- finished the job, and the SEC is still waiting. ance sheet reflects borrowing to finance employment compensation fund, $89 It’s not just the energy industry that ex- Dell’s customers. ploits the loophole and stashes major liabil- billion. Now they say we might have to Companies argue that off-balance sheet ve- ities in the never-never land of SPEs. In- hicles benefit investors because they enable start paying into that. creasingly, companies of all stripes routinely management to tap extra sources of financ- In 2001, we looted the highway trust use them to offload potential balance-sheet ing and hedge trading risks that could roil funds by $24 billion; airports by $14 bil- bombshells such as loan guarantees or the fi- earnings. Maybe so, but they sure make the lion; railroad retirement by some $27 nancing of sales of their own products. For companies, and their executives, look good: billion: and another $72 billion from example, the accounts of data processor Return on capital looks better than it is be- other entities like the Federal Finance Electronic Data Systems Corp. don’t show cause balance sheets understate the amount Bank. The savings and loan debacle is $500 million—half of last year’s earnings— employed. And investors and regulators that it would owe if its customers were to don’t freak out as corporate debt balloons. when we started that fever about de- cancel their contracts and leave it holding regulating. We deregulated the savings But critics charge that the widespread use of the bag for loans on their computer equip- off-balance-sheet schemes encourages con- and loan industry and that up-ended. ment. The arrangement is acknowledged tempt for accounting rules in the executive We deregulated the airlines and they only in a footnote. An EDS spokesman says suite and spreads confusion among investors. have gone broke. We deregulated the the tactic is common in the industry and ‘‘The nonprofessional has no idea of the ex- trucking companies and they have does not put the company at undue risk. tent of the real liabilities,’’ says J. Edward gone out of business. Now we are on Airlines keep appearances aloft by shunt- Ketz, accounting professor at Pennsylvania ing billions worth of airplane financing into State University. ‘‘Professionals can be eas- course to deregulating energy, which is off-balance-sheet vehicles, says credit ana- before us now. Our experience is that ily fooled, too.’’ lyst Philip Baggaley of Standard & Poor’s Worse yet, many SPEs have provisions when we have deregulated, it has been Corp. United Airlines Inc. parent UAL that can throw their users into a full-blown a disaster. The point is, we have hidden Corp.’s published balanced sheet for 2000 financial crisis. To get assets off its books, a $2.335 trillion. We have hidden $2.335 shows $5 billion of long-term debt. But only company typically sells them to an SPE, trillion. a footnote describes the bulk of its lease pay- funding the purchase by borrowing cash from Let me refer to the January 28th edi- ments, which Baggaley estimates have a institutional investors. As a sweetener to tion of Business Week. This says: Ac- present value of $12.7 billion, due over 26 protect investors, many SPEs incorporate counting in crisis, what needs to be years on 233 airplanes. AMR Corp., parent of triggers that require the parent to repay American Airlines Inc., is on the hook for loans or give them new securities if its stock done. I refer to page 36 and the article, $7.9 billion in lease payments not on its bal- ‘‘Who Else is Hiding Debt?’’ falls below a certain price or credit-rating ance sheet. ‘‘Everyone who’s involved in the agencies downgrade its debt. It was just such I ask unanimous consent that this ar- industry knows that the true leverage is triggers in its notorious off-balance-sheet ticle be printed in the RECORD. higher’’ than what’s shown on the balance partnerships that sent Enron into a death There being no objection, the article sheet, says Baggaley. UAL and AMR declined spiral. And triggers fueled the crises last was ordered to be printed in the to comment. year at Pacific Gas & Electric, Southern RECORD, as follows: Banks arrange many of the devices and are California Edison, and Xerox, according to big users themselves. J.P. Morgan Chase & WHO ELSE IS HIDING DEBT Moody’s Investors Service. ‘‘All of this hid- Co., for example, has revealed in the Enron den debt and these triggers could make the Moving financial obligations into off-book vehi- bankruptcy that it has nearly $1 billion in cles is now a common ploy next economic downturn a lot worse than it potential liabilities stemming from a single would otherwise be,’’ says Lynn Turner, who (By David Henry, et al.) 49%-owned Channel Islands entity called was chief accountant at the Securities & Ex- When energy trader Enron Corp. admitted Mahonia that traded with Enron. The liabil- change Commission until July. to hiding billions of dollars of liabilities in ities bring the bank’s total Enron exposure Despite the risks, SPEs remain very ap- mysterious off-book entities, it trotted out to $2.6 billion. And J.P. Morgan is not alone. pealing to companies. And any attempt to the lame excuse of scoundrels: Everyone does A suit filed earlier this month shows that curb them or abolish the 3% rule will run it. And this time, it was the gospel truth. many U.S. finance companies are among 52 into furious opposition. Since the early ’90s, Hundreds of respected U.S. companies are partners in LJM2, an Enron off-balance-sheet an army of accountants, lawyers, and bank- ferreting away trillions of dollars in debt in entity with over $300 million in assets. The ers built a huge industry to concoct ever off-balance-sheet subsidiaries, partnerships, partners, including Citigroup, Wachovia, and more creative ways to evade consolidated re- and assorted obligations, including leases, American International Group, may all have porting. So reform won’t come easily. ‘‘It pension plans, and take-or-pay contracts to take losses on it. will be a phenomenal flight,’’ says Turner. with suppliers. Potentially bankrupting con- The banks’ participation in SPEs is at- Maybe so, but Enron’s demise shows how tracts are mentioned vaguely in footnotes to tracting scrutiny of federal regulators. A quickly a tiny loophole can tear the coun- company accounts, at best. The goal is to Federal Reserve spokesman said it is ‘‘con- try’s economic fabric. And there may never skirt the rules of consolidation, the bedrock cerned about’’ off-balance-sheet exposures be a better time to close it. of the American financial reporting system and hopes new accounting rules will be put OUT OF SIGHT and the source of much of its credibility. in place. How many more Mahonia or LJM2- These rules, set clear in 1959, aim to make like entities are there? The Channel Islands Many companies keep debts and other obli- public companies give a full and fair picture tax haven boasts more than 350 SPEs and gations out of investors’ view in partnerships of their business—including all the assets similar entities, though it is impossible to and other entities. Often, financial liabilities and liabilities of any subsidiaries. But ac- know how many should really be consoli- are secured by physical assets such as planes countants, lawyers, and bankers have dated on balance sheets of U.S. companies. or computers. A sample: learned to drive a coach and horses through Assets in the entities total more than $635 Estimated them. billion, according to Fitzrovia International Company Item not on balance sheet exposure Because of a gaping loophole in accounting PLC, a London-based research firm. The Cay- (billions) practice, companies create arcane legal man Islands, which has been competing for UAL ...... Plane leases ...... $12.7 structures, often called special-purpose enti- the business since the 1980s, claims another AMR ...... Plane leases ...... 7.9 ties (SPEs). Then, the parent can bankroll 600 trusts and banks, most of which have J.P. Morgan Chase ...... Liability for trading units ...... 1 1.0 up to 97% of the initial investment in an SPE expertise. Dell Computer ...... Debt of consumer financing 2 N/A venture. SPE without having to consolidate it into its With some of the vehicles, it is impossible Electronic Data Systems ...... Payments for customers’ 0.5 own accounts. Normally, once a company for investors to know from financial reports computers. owns 50% or more of another, it must con- who could be responsible for what. For exam- 1 Exposure to Enron through Mahonia. solidate it under the 1959 rules. The con- ple, Dell Computer Corp. has a joint venture 2 Joint venture partner Tyco Intl. is responsible for losses. troversial exception that outsiders need in- with Tyco International Ltd. called Del Fi- Data: Standard & Poor’s, company reports. vest only 3% of an SPE’s capital for it to be nancial Services that last year originated independent and off the balance sheet came $2.5 billion in customer financing, according Mr. HOLLINGS. Mr. President, this about through fumbles by the Securities & to a footnote to Dell’s accounts. According says, ‘‘Moving financial obligations Exchange Commission and the Financial Ac- to the note, Dell owns 70% of DFS, but does into off-book vehicles is now a common

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S157 ploy.’’ Could it be that Kenneth Lay is Wall Street does not look for off budget. Get it out of the unified acting like a Senator, acting like a intragovernmental transfers. They budget, as they were talking about in Congressman, acting like a President, look at the long range, whether or not those times. or acting like Alan Greenspan? Chair- the Government will be crowding into This Senator over several years tried man Greenspan testified before our the market with its sharp elbows to to get that into law. Finally, George committee and it was like pulling borrow money to pay its bills. They Herbert Walker Bush—Bush senior—on teeth to try to get him to admit that know that instead of surpluses we have November 5, 1990, signed into law sec- the debt went up. He came and we went deficits; instead of paying down the tion 13301 of the Budget Act: Thou around and around and around, and fi- debt, we have the national debt in- shalt not use Social Security in your nally, I said: creasing. This is why the long-range budget. Let me ask you this. Here is the CBO re- bond rates and interest rates are stay- We did not put a penalty in the law. port. Does it project that the debt goes up ing high. The law is violated every day by the and the Government will have to borrow Yes, Dr. Greenspan and the Federal Congress and the President. It has long over the next 10 years, or not? Mr. Greenspan Reserve had 11 cuts to the short-term since been law. We all voted for it. The answered, it does. rate, and where is the long-term rate? vote was 98 to 2 in the Senate. But they The reason I wanted to fit that into Still at 5 percent, and it could be in- spend that money willy-nilly, spending the RECORD is because Mr. Greenspan is creasing, according to Dr. Greenspan’s Social Security in violation of that no different than the Director of the statement. law; in violation of the spirit of the Congressional Budget Office, our good I have had hearings. We have about a Pension Reform Act. They all go out friend Dr. Crippen, when it comes to dozen committees and scores of hear- and say: I am a responsible Senator, re- the budget. Last week at our Budget ings about Enron hiding the debt. But elect me; the Government is too big; hearing on national TV, he says this is according to Business Week, who is the Government is not the answer; the the CBO report, and all he has in this hiding the debt? None other than the Government is the problem; the Gov- thin little document is the revenue, United States Government. We owe $2.3 ernment is the enemy. but none of the expenditures, so we are trillion, and if we do not pay down the Let us not act like Kenneth Lay this left with only surpluses. He kept talk- debt and continue to borrow, we will year. I hope that sears the conscience ing about how the surplus has gone owe these particular trust funds $2.8 of not only the American people but down from $5.6 trillion to $1.6 trillion. trillion at this time next year. the Senate body in which I serve. He kept saying the word surplus—sur- In 1994, this supposedly conscientious For years I have been trying to limit plus, surplus, surplus, surplus. Congress passed the Pension Reform campaign spending. I was in the discus- That is all we heard. We did not hear Act. We said we were not going to have sions during the Campaign Finance Act about the debt and the deficit. these fast operating artists come in, I finally got the sheet that shows the which we finally enacted in 1974. At the gross Federal debt, according to CBO, take over a company, pay down the time, I looked over at the distinguished goes from $5.772 trillion to $7.644 tril- debt with the pension fund and take Senator from New York, Mr. Buckley, lion; in other words, it goes up about the money that is left and run. We had and said: You are not going to buy it. $1.9 trillion. That is what we ought to that going on all through the eighties. He said: Oh, yes, I am. be talking about, that is the reality; So at the beginning of the nineties, we And he sued; Buckley v. Valeo. He but we keep talking about passed legislation making it a felony sued the Secretary of the Senate, and intragovernmental transfers, as Dr. to pay off corporate debt with a pen- we got the Buckley v. Valeo decision. I Greenspan says, or we talk about sur- sion fund. could see exactly what happened with pluses, as Dr. Crippin testified to. The I refer to Denny McLain, the former that Buckley v. Valeo decision. The fact is, we are doing what Kenneth Lay pitcher for the Detroit Tigers, about Supreme Court turned around the in- was doing: Misleading the public. whom the distinguished Presiding Offi- tent of the Congress. And that par- We are trying to get reelected. So if cer knows. He took over a company ticular decision by the Court said we we all go along with this $1.6 trillion when he got out of baseball and paid are not going to be able to buy the of- surplus, surplus, surplus, that gives down the debt with the company’s pen- fice. But that is the only way you can some substance, some credibility to a sion fund. He was charged with a felony get into office is to buy it. It is a dis- tax cut. I do not believe in letting a under the law and sentenced to 8 years. grace. surplus sit around any more than any- Now he is out, I take it, by now, and I So I offered a one-line constitutional body else, but the truth of the matter wish him well, but I have to use that amendment, and I still propose it every is, there is no surplus. example to sear the conscience and Congress. It says the Congress is here- I have the public debt to the penny awareness of this dormant body. Sen- by empowered to regulate or control chart which you can find on the inter- ators still want to keep their eyes and spending in Federal elections. net at: http://www.publicdebt.treas.gov/ ears closed as to the truth about budg- But I cannot get a two-thirds vote. I opd/opdpenny.htm. eting. used to get a lot of my Republican col- Mr. President, the chart shows we They all have schemes to save Social leagues on the other side of the aisle to ended up last year with a $143.4 billion Security. All they have to do is quit vote for it. I would get Bill Cohen, Alan deficit. That was the end of September- spending, quit looting the Social Secu- Simpson, Nancy Kassenbaum, and Bill October 1 of 2001. Already this year, the rity trust fund. I remember when Dr. Roth, but they are all gone now. The current amount of public debt, has Greenspan came to us in the early distinguished Senator from Texas, Mr. gone up $122 billion. We are starting eighties, and he projected to Congress: GRAMM, said: Now, wait a minute. We the year in the red and talking about If we do not do something about this, have the money. They have the unions. stimulating with tax cuts. Social Security is going bottom up. It Of course, I come from South Carolina Let’s get to the point. How did we get will go bankrupt. and I don’t get money and I don’t get those 8 glowing years of the greatest What happened? They appointed the unions, neither one. economic boom in America’s history? Greenspan Commission, and the Green- So that being the case, I believe I am By what? By paying down the debt. span Commission recommended, among going to have to go for public campaign Somehow we have gotten lost in the other things, that we have an inordi- financing. I have resisted the idea of politics of all of this. They are all talk- nately high payroll tax graduated up- public financing politics, but it is cur- ing tax cuts, they are all talking sur- wards. Why did we graduate it upwards rently being financed in the most cor- pluses, they are all talking about giv- over the years? They said to take care rupt fashion. ing money back that nobody has. The of the baby boomers. The truth is, they Do not give me McCain-Feingold. truth is, economic growth is not about knew this 20 years ago, so they put in That does away with the soft money. consumer confidence; it is about mar- that inordinately high payroll tax Instead, contributions are directed into ket confidence. It is the financial com- which, for most Americans, exceeds hard money and those particular spe- munity up on Wall Street who know their income tax. The money was there cial interest entities. I call McCain- the truth. They read this budget the and section 31 of the Greenspan report Feingold the Give-the-money-to-Gro- same way I do. said do not touch that money. Put it ver bill; that is, Grover Norquist and

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S158 CONGRESSIONAL RECORD — SENATE January 28, 2002 all of that crowd. So we take all the ’90s, because a lot of it wasn’t really sustain- lyst Jack Ciesielski. Because of the write- contributions from soft money and the able.’’ downs, ‘‘when the natural cycle begins again, parties have the duty and the responsi- The Nasdaq Composite Index stood at the returns on assets and returns on equity around 1043 in September 1995, soared to bility of running elections. Now we are will look fantastic.’’ But Mr. Ciesielski adds 5048.62 in March 2000 and now stands at that this benefit will be short-lived. giving it to corporate America, and 1918.89. Because companies in the Nasdaq Cisco Systems in the first quarter took a corporate America and the hard money Composite Index now have a cumulative loss, $2.25 billion pretax inventory charge. This will be there. This will end, I say, the for the first time in memory the Nasdaq’s quarter, it partly reversed that write-down, Democratic Party down in my back- value can’t be gauged using the popular taking a gain of $187 million form the revalu- yard. It will not even have a chance on price-earnings ratio, which divides the price ation of the previously written-down inven- that score. of stocks by their earnings. That means it is tory. The reversal pushed Cisco into the impossible to say whether the market is black. So I believe we ought to have public cheap or expensive in historical terms. financing, where we can get away from But Mr. Barbera warns that investors The extent of the losses surprised a senior shouldn’t be so quick to ignore the unusual this corruption that the Enron case has Nasdaq official, who asked not to be named. charges. For example, during good times it brought to the fore. ‘‘I wouldn’t have thought they were that wasn’t unusual for companies to book large Back to the point, remember, we do high,’’ he said. gains from investments in other companies. Nasdaq spokesman Andrew MacMillan, not have a surplus. It is a deficit and Now that the value of those investments are while not disputing the losses, pointed to the debt. Is there any way better to empha- under water, companies are calling the losses $1.5 trillion in revenue Nasdaq companies unusual. ‘‘If they are going to exclude the size how we got this way than a Wall generated over the past year, saying that unusual losses, then they should exclude the Street Journal of August 16 2001, al- represented ‘‘a huge contribution to the unusual gains,’’ says Mr. Barbera. most a month before 9–11? economy, to productivity, and to people’s I ask unanimous consent to have the lives . . . regardless of what’s happening to Mr. HOLLINGS. I quote a couple of Wall Street Journal article printed in the bottom line during a rough business lines: the RECORD. cycle.’’ The Wall Street Journal analysis looked at There being no objection, the article Staya Pradhuman, director of small-cap- earnings excluding extraordinary items italization research at Merrill Lynch, says going back to September 1995 for about 4,200 was ordered to be printed in the the recent massive losses tell a story of a companies listed on NASDAQ, which is heav- RECORD, as follows: market where investors became focused on ily weighted toward technology stocks but NASDAQ COMPANIES’ LOSSES ERASE 5 YEARS revenue instead of earnings. With billions of also includes hundreds of financial and other OF PROFIT dollars in financing chasing every glimmer growth companies. For the most recently re- of an Internet idea, Mr. Pradhuman says, a (By Steve Liesman) ported four quarters—that is since January 1 lot of companies came to market long before Mounting losses have wiped out all the cor- of 2000—those companies tallied $148.3 billion they were ready. porate profits from the technology stock in losses. This figure roughly equaled the boom of the late 1990s, which could make the ‘‘The underwriting was very aggressive, so earlier-stage companies came to market $145.3 billion in profits before extraordinary road back to the previous level of profit- than the kind of companies that came to items these companies reported since Sep- ability longer and harder than previously es- market five or 10 years ago,’’ he adds. He be- tember 1995. It was as if the last 5 years timated. lieves there is plenty of potential profit- never happened, and now they want to tell The massive losses reported over the most me it was because of 9–11. Come on. recent four quarters by companies listed on ability out there in this crop of young com- panies. But, he notes, ‘‘only among those the Nasdaq Stock Market have erased five It is the same thing with the govern- that survive.’’ years’ worth of profits, according to figures ment. Do you mean to tell me that the The data show that the very companies $143.4 billion deficit for 2001 was in- from investment-research company whose technology produces were supposed to Multex.com that were analyzed by The Wall boost productivity and help smooth out the curred from September 11 until Sep- Street Journal. business cycle by providing better informa- tember 30? The Government did not Put another way, the companies currently tion have been among the hardest-hit in this spend $143.4 billion in 20-some days. No. listed on the market that symbolized the economic slowdown. ‘‘Management got No. It was going down on account of New Economy haven’t made a collective caught up with how smart they were and tax cuts. We did not have a surplus. It dime since the fall of 1995, when Intel intro- completely forgot about the business cycle duced the 200-megahertz computer chip, Bill was a deficit. We were operating in the and competition,’’ says Mr. Yardeni. ‘‘They red, and more than anything else we Clinton was in his first term in office and the were managed for only ongoing success.’’ O.J. Simpson trial obsessed the nation. to be sure, some of Nasdaq’s largest star- were operating just like Enron. Who is ‘‘What it means is that with the benefit of powered companies earned substantial sums hiding debt? We are. hindsight, the late ’90s never happened,’’ over the period. Intel led the pack with $37.6 I yield the floor. says Robert Barbera, chief economist at billion in profit before extraordinary items f Hoenig & Co. since September 1995, followed closely by The Wall Street Journal analysis looked at Microsoft’s $34.6 billion in earnings. To- HOPE FOR CHILDREN ACT— earnings excluding extraordinary items gether, the 20 most profitable companies Continued going back to September 1995 for about 4,200 earned $153.3 billion, compared with losses of The PRESIDING OFFICER. The Sen- companies listed on Nasdaq, which is heavily $140.9 billion for the 20 least profitable. In- weighted toward technology stocks but also cluded in the losses was a $44.8 billion write- ator from Utah. includes hundreds of financial and other down of acquisitions by JDS Uniphase and Mr. HATCH. Mr. President, I ask growth companies. For the most recently re- an $11.2 billion charge by VeriSign, also to unanimous consent that the pending ported four quarters, those companies tallied reduce the value on its book of companies it amendment be set aside. $148.3 billion in losses. That roughly equaled had bought with its high-price stock. The PRESIDING OFFICER. Without the $145.3 billion in profit before extraor- These charges lead some analysts and objection, it is so ordered. dinary items these companies have reported economists to believe that including these since September 1995. Because companies losses overstates the magnitude of the de- AMENDMENT NO. 2724 have different quarter ending dates, the cline. According to generally accepted ac- Mr. HATCH. Mr. President, I send an analysis doesn’t entirely correspond to cal- counting principles, these write-offs are amendment to the desk. endar quarters. treated as regular expenses. But corporate The PRESIDING OFFICER. The Large charges that aren’t considered ex- executives say they should be treated as one- clerk will report. traordinary items were responsible for much time items. ‘‘It’s an accounting entry rather The assistant legislative clerk read of the red ink, including restructuring ex- than a true loss,’’ maintains Bill Dudley, penses and huge write-downs of inventories chief U.S. economist at Goldman Sachs as follows: and assets acquired at high prices during the Group. The Senator from Utah [Mr. HATCH], for technology bubble. Removing these unusual charges, the himself and Mr. BENNETT, proposes an Analysts, economists and accountants say losses over the most recently reported four amendment numbered 2724 to the language these losses raise significant doubts about quarters shrink to $6.5 billion on a before-tax proposed to be stricken by amendment No. both the quality of past reported earnings basis. By writing down the value of assets, 2698. and the potential future profit growth for companies have used the slowdown to clean Mr. HATCH. Mr. President, I ask these companies. Ed Yardeni, chief invest- up their balance sheets, a move that should unanimous consent that reading of the ment strategist at Deutsche Banc Alex. allow them to move forward with a smaller amendment be dispensed with. Brown, said the losses raise the question of expense base and could pump up future earn- ‘‘whether the Nasdaq is still too expensive. ings. The PRESIDING OFFICER. Without These companies aren’t going to give us the ‘‘It sets the table for future dramatic objection, it is so ordered. kind of awesome performance they did in the growth,’’ says independent accounting ana- The amendment is as follows:

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S159 (Purpose: To amend the Internal Revenue any economic stimulus bill—a tem- that a distressed company is able to Code of 1986 to allow the carryback of cer- porary enhanced net operating loss get from going back beyond 5 years to tain net operating losses for 7 years) carryback provision. Simply stated, $50 million. This limitation both keeps At the end, add the following: this amendment would help distressed the estimated revenue loss of this pro- SEC. ll. CARRYBACK OF CERTAIN NET OPER- American companies, including a num- vision down to a reasonable level and ATING LOSSES ALLOWED FOR 7 YEARS. ber of them in my home State of Utah, also eliminates the suggestion that (a) IN GENERAL.—Paragraph (1) of section deal with losses they have been experi- these companies might be getting a 172(b) of the Internal Revenue Code of 1986 encing as a result of the terrorist at- windfall in refunds from these earlier (relating to years to which loss may be car- tacks and as a result of the economic years. ried) is amended by adding at the end the fol- slowdown. And it will help those em- A few commentators have argued lowing new subparagraph: ployees who are going to lose their jobs that a net operating loss relief provi- ‘‘(H) SPECIAL RULE FOR CERTAIN LOSSES.— ‘‘(i) IN GENERAL.—In the case of a taxpayer unless we help these distressed compa- sion does not belong in an economic which has a net operating loss for any tax- nies. stimulus bill. I strongly disagree. Com- able year ending during 2000, 2001, or 2002, Over the past months, as both Houses panies that are losing money face some subparagraph (A)(i) shall be applied by sub- of Congress have worked toward devel- very hard choices. One option that is a stituting ‘7’ for ‘2’ and subparagraph (F) oping various legislative packages to very difficult one, but one that is being shall not apply. stimulate the economy, there is one turned to more and more as the eco- ‘‘(ii) PER YEAR LIMITATION.—For purposes provision that has been common to nomic slowdown continues, is that of of the 6th and 7th taxable years preceding the taxable year of such loss, the amount of practically every plan—a provision to laying off workers. net operating losses to which clause (i) may enhance the net operating loss Such layoffs, of course, are dev- apply for any taxable year shall not exceed carryback to make it more beneficial astating to the families involved and to $50,000,000.’’ to distressed companies and their em- our entire economy. One reason for (b) ELECTION TO DISREGARD 7-YEAR ployees. this is these displaced workers begin to CARRYBACK.—Section 172 of the Internal Rev- This provision was in both of the slow down their consumer spending in enue Code of 1986 (relating to net operating House-passed stimulus plans, it was in order to conserve their money. More- loss deduction) is amended by redesignating subsection (j) as subsection (k) and by insert- the Democratic plan passed out by the over, layoffs have the effect of lowering ing after subsection (i) the following new Finance Committee last November, the confidence of other consumers who subsection: and it was in the compromise plan de- become worried that their jobs could ‘‘(j) ELECTION TO DISREGARD 7-YEAR veloped by the Senate Centrists. In also be lost. CARRYBACK FOR CERTAIN NET OPERATING short, the concept of temporarily in- One of the best ways to prevent lay- LOSSES.—Any taxpayer entitled to a 7-year creasing the carryback period for net offs, in my view, would be to help dis- carryback under subsection (b)(1)(H) from any loss year may elect to have the operating losses to get quick relief to tressed companies that are experi- carryback period with respect to such loss corporations that have paid taxes in re- encing losses through an enhanced net year determined without regard to sub- cent years but are now losing money is operating loss carryback provision. By section (b)(1)(H). Such election shall be made one that is widely supported on both allowing these companies to get imme- in such manner as may be prescribed by the sides of the aisle. It is supported be- diate refunds of their previously paid Secretary and shall be made by the due date cause it helps these distressed compa- taxes can keep some of these busi- (including extensions of time) for filing the nesses viable, so they do not need to taxpayer’s return for the taxable year of the nies and their employees, who are like- net operating loss. Such election, once made ly to lose their jobs if we do not do turn to layoffs for relief. Extra cash in for any taxable year, shall be irrevocable for something. the form of tax refunds can help these such taxable year.’’ There are two major differences— companies ride out the recession (c) TEMPORARY SUSPENSION OF 90 PERCENT which we consider improvements—be- storm. LIMIT ON CERTAIN NOL CARRYBACKS.— tween the net operating loss amend- The Internal Revenue Code has long (1) IN GENERAL.—Subparagraph (A) of sec- ment we are offering today and the included provisions allowing taxpayers tion 56(d)(1) of the Internal Revenue Code of 1986 (relating to general rule defining alter- provision that is included in all the to offset losses with gains in other tax native tax net operating loss deduction) is other economic stimulus plans. The years. This is only fair because the des- amended to read as follows: first difference is in the length of time ignation of the tax year, whether a cal- ‘‘(A) the amount of such deduction shall that the net operating loss can be car- endar year or a fiscal year, as the prop- not exceed the sum of— ried back to previous years. This period er measurement period for computing ‘‘(i) the lesser of— is 5 years in the other stimulus bills, tax liability is purely arbitrary. ‘‘(I) the amount of such deduction attrib- compared with a 2-year carryback pe- Many companies have business cycles utable to net operating losses (other than that exceed a year in length, and some the deduction attributable to carrybacks de- riod allowed by current law. scribed in clause (ii)(I)), or Our amendment would go further and have shorter cycles. Any kind of limit ‘‘(II) 90 percent of alternative minimum allow a 7-year net operating loss we place on the ability of businesses to taxable income determined without regard carryback. This is important for dis- carry back or carry forward the loss to such deduction, plus tressed companies with large losses or they might incur in 1 year to another ‘‘(ii) the lesser of— that have been losing money for sev- year where taxes were paid artificially ‘‘(I) the amount of such deduction attrib- eral years because of the economic reduces the fairness of the tax system. utable to carrybacks of net operating losses slowdown and various other matters Because of the realities of admin- for taxable years ending during 2000, 2001, or that are beyond their control. Compa- istering the tax system, it is obvious 2002, or that we must have some kind of limits ‘‘(II) alternative minimum taxable income nies such as these often have no tax- determined without regard to such deduction able income within the past 5 years to on the number of years to which we reduced by the amount determined under which they can reach back and offset can carry the losses, but there is noth- clause (i), and’’. losses. For these companies, a 5-year ing magical about the current law lim- (2) EFFECTIVE DATE.—The amendment carryback simply provides no relief. itation of 2 years for carrybacks and 20 made by this subsection shall apply to tax- Allowing them to go back 7 years offers years for carryforwards. Indeed, the able years beginning before January 1, 2003. them a better chance to immediately carryback period was 3 years until the (d) EFFECTIVE DATE.—Except as provided in 1997 tax act shortened it to 2 years. subsection (c), the amendments made by this offset these losses and get the quick re- section shall apply to net operating losses lief they need. Thus, if we can increase fairness and for taxable years ending after December 31, The second difference between this help distressed companies by allowing 1999. amendment and the other net oper- them to carry tax losses back 7 years, Mr. HATCH. Mr. President, on behalf ating loss provisions is that, for the 6th rather than 2, we certainly ought to do of myself and Senator BENNETT, I have and 7th years of the carryback period, so. sent this amendment to the desk. This our provision includes a $50 million cap This amendment does not add a per- is an amendment to the underlying per company per year on how much net manent extended net operating loss bill. operating loss can be carried back. provision carryback period to the In- The amendment we offer today would In other words, the amendment lim- ternal Revenue Code. Rather, it is de- add a provision that is much needed for its the amount of immediate tax refund signed to help alleviate losses incurred

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S160 CONGRESSIONAL RECORD — SENATE January 28, 2002 by taxpayers only in tax years that end have long proposed extending unem- Small Business Administration has in 2000, 2001, and 2002. After this period, ployment compensation to help those noted: the carryback period would revert to workers who have exhausted their Adequate financing for rapidly growing the 2 years now in the law. State unemployment benefits yet have firms will be America’s greatest economic I might add, that the revenue effects been unable to find new work because policy challenge for small business in [this] of timing changes such as these are rel- of the poor economy. I also support the century. atively short-term. For example, the provisions in Senator DASCHLE’s plan As our economy has slid into reces- estimated loss to the Treasury for the to have stimulus checks go to those sion, capital has become increasingly 5-year net operating loss provision taxpayers and other citizens who did scarce for smaller companies. Indeed, passed by the House in December was not receive rebate checks last summer venture capital investment in the third about $1.6 billion. However, the 10 year and fall. quarter of 2001—which is the latest loss was estimated to be only $271 mil- While I support much of what is in data available—represents a 31-percent lion. This is because most of the loss the majority leader’s package, it does decline from the previous quarter and a reverses itself within the 10-year budg- virtually nothing for small businesses. 73-percent decline from just 1 year ago. et window. While the Joint Committee I think that is a serious mistake be- So our small businesses are having on Taxation has not yet estimated the cause if we can get the small business great difficulty in accessing the capital cost of the 7-year carryback provision sector booming again, we will increase they need. Moreover, the capital gap in this amendment, it is also likely to employment and stimulate our econ- disproportionately affects minority- be largely reversed within 10 years. omy. That is why I have offered, with owned and women-owned businesses. In conclusion, this is a common-sense my good friend from Missouri, Senator By raising the section 179 expensing limit by two-thirds, our amendment amendment that adds a provision that BOND, the ranking member of the Sen- is in every other economic stimulus ate Small Business Committee, an will, in effect, free up more capital for plan, and that has support from both amendment that gives small businesses small businesses to purchase more sides of the aisle. If we want to help the boost they need to grow, to create equipment. These purchases in turn distressed companies avoid the layoff new jobs, and to energize our sluggish will stimulate other industries that produce that new equipment. option, this is an excellent place to economy. I included a very similar pro- As Federal Reserve Chairman Alan start. In addition, this amendment vision as part of an economic recovery Greenspan has pointed out, enacting would increase tax equity. I urge all of bill I introduced on October 4. temporary expensing provisions would our colleagues to support it. I ask unanimous consent two more have the ‘‘most immediate impact’’ on It is in the best interests of the dis- cosponsors be added to the Bond-Col- our economy of all the provisions and tressed companies, those companies lins amendment, Senator BENNETT and proposals that have been advanced. It that have had a difficult time over the Senator HUTCHINSON of Arkansas. is the right medicine and it is the right last number of years. It is in the best The PRESIDING OFFICER. Without tonic for our economy today. interests of the employees of those objection, it is so ordered. I have spoken with entrepreneurs in Ms. COLLINS. Mr. President, our companies because those employees my home State of Maine about what amendment is as straightforward as it will stand a much better chance of not the impact would be on their particular is effective. Under section 179 of the In- being laid off. Third, it is in the best business if we were to increase the ex- ternal Revenue Code, a small business interests of everyone because it will pensing allowance. They have told me, stimulate the economy. can deduct up to $24,000 of the cost of without exception, that our amend- This is a good amendment. I hope our qualifying property placed in service in ment is needed and that it will help to colleagues will support it. I hope it will any given year. The deduction is stimulate our sluggish economy. Let win by an overwhelming margin. phased out for taxpayers that invest me give an example by quoting Terry I yield the floor. more than $200,000 per year in quali- Skillins of Skillins’ Greenhouses, a The PRESIDING OFFICER. The Sen- fying property. For the rest of this fourth-generation Maine family busi- ator from Maine. year and for all of next year, the Bond- ness founded in 1885. Skillins’ employs Ms. COLLINS. I ask unanimous con- Collins amendment permitted small between 70 and 120 employees, depend- sent the pending amendment be set businesses to expense up to $40,000 in ing upon the season, in its landscaping, aside and I be permitted to speak in new equipment purchases per year. So greenhouse, and floral businesses. favor of amendment No. 2717. the limit would go from $24,000 to Terry told me that Skillins’ is looking The PRESIDING OFFICER. Without $40,000. It would also increase the total to expand but that to do so is expen- objection, it is so ordered. investment limit from $200,000 to sive. It takes money. From tractors to AMENDMENT NO. 2717 $325,000. conveyor belts to machines that fill Ms. COLLINS. Mr. President, I have The purpose of our amendment is to flowerpots automatically, the equip- always been a very strong supporter of encourage small businesses to make ment that Skillins’ needs to expand is small business, the engine of our econ- important investments that create expensive. Terry says raising the small omy. According to the Small Business jobs. It would allow them to write off business expensing limit to $40,000 Administration, it is our smaller firms more of their new equipment purchases would help his company a lot. that account for three-quarters of our immediately. Many small businesses He told me something else that I Nation’s economic growth and almost have put on hold investments in equip- think is very important and telling. all of the net new jobs that are created. ment that they were planning to make Terry said that it is very important for These are good jobs, jobs that make in the wake of the September 11 at- the increased expensing to last through our communities strong. Indeed, small tacks and because of the poor economy. next year. He told me it often takes businesses are often the last to lay off This tax incentive would help encour- more than 1 year for a small business employees because the employees tend age them to go ahead with these crit- to carry out an expansion plan and if to be their neighbors, their family ical investments. the increased expensing were available members, and their friends. They will Direct expensing allows small busi- for 2 years, his ability to grow his busi- go to great lengths to try to retain em- nesses to also avoid the complicated ness, Skillins’ Greenhouses, would be ployees while a larger corporation rules of depreciation as well as the un- far greater. might cut without much thought. realistic recovery periods for many as- I think we should heed Terry’s advice More than 95 percent of all the busi- sets. For example, under current law a and help our small businesses, just as nesses in the United States are consid- computer must be depreciated over 5 they will help drive our economy back ered small businesses. Yet the eco- years, even though we all know from to prosperity. nomic recovery plan put forth by the the experience in our offices that the We also must not lose sight of the distinguished majority leader does not useful life of most computers is 2 to 3 human side to this amendment. As assist this critical sector of our econ- years. Mark Carpentier, the owner of a small omy. Our amendment would also help to media business in Portland, ME, re- I support much of what is in Senator address a critical need of small busi- cently told me, increasing the expens- DASCHLE’s package. For example, I nesses to access more capital. As the ing limit will provide his business with

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S161 more cash, cash he could use to hire small businesses may expense each year from the Senate. He wanted to make sure I another employee, to pay his employ- the current $24,000 to $40,000. understood how to prepare for a bar ees more, or to purchase them better Many small businesses are currently strug- exam. This was done by a man who health insurance—a major problem for gling to cope with the recession and the graded the exams. events of September 11. Increasing the ex- I pay tribute to Howard Cannon, my many small businesses as premiums pensing limit would provide small and grow- continue to soar. ing firms with the funds to make critical in- friend and fellow Nevadan, for all he It seems to me that a true consensus vestments and keep their firms running and has done for me personally over the package, a package that is going to growing, creating new jobs. years and all he has done for the State make a real difference to our economic The Bond amendment will also help small of Nevada and this country. recovery, should and must include a business by eliminating burdensome record Howard Cannon is a true American provision like the Bond-Collins amend- keeping involved in depreciating equipment. hero. On January 26, as I have indi- ment to help small businesses pull And it adjusts the investment limit on ex- cated—last Saturday—he turned 90 pensing from 200,000 to $325,000. years old. His service to Nevada and through these difficult times and to Small business is the major job generator give them the boost they need so they our Nation includes a lot of things, not for the economy. Let’s give them the tools to the least of which is 24 years as a U.S. can be, once again, the engine of our grow, hire more employees, and lead this economy. country out of recession. Support the Bond- Senator. Indeed, an increase in the small busi- Collins expensing amendment. Votes on or During his youth, he enjoyed being a ness expensing limit is a provision that related to this amendment will be an NFIB cowboy, lassoed wild horses, and broke is common to pretty much every eco- Key Small-Business Vote for the 107th Con- them to ride. In fact, as a boy he used nomic recovery package other than the gress. one of these horses to deliver news- Sincerely, one advanced by the majority leader. papers to ranches in the area where he DAN DANNER, Increased small business expensing was was raised. Senior Vice President, Today, even though he is 90 years old, included in both the economic recovery Public Policy. he still gets up every morning and goes packages that passed the House, the Ms. COLLINS. I yield the floor and out into his yard to take care of his fa- Centrist Coalition proposal—which I, suggest the absence of a quorum. vorite horse, a palomino named Bandit. along with my colleague from Maine, The PRESIDING OFFICER. The It isn’t surprising that in growing up with Senator VOINOVICH, and three of clerk will call the roll. in the West, Howard Cannon, the son of our colleagues on the other side of the The assistant legislative clerk pro- a rancher, was comfortable with aisle joined together to draft—and the ceeded to call the roll. horses. But more surprisingly, he was Senate Finance Committee bill which Mr. REID. Mr. President, I ask unan- comfortable playing the saxophone. He was reported with unanimous Demo- imous consent the order for the started a band called ‘‘Howard Cannon cratic support in committee. quorum call be rescinded. and His Orchestra.’’ He performed in The help that our amendment would The PRESIDING OFFICER (Mr. CAR- small towns throughout the West, and provide comes at a relatively modest PER). Without objection, it is so or- he even went on a cruise ship and cost to the Treasury. It is needed by dered. played in Japan. small businesses across the Nation. I Mr. REID. Mr. President, I ask unan- During law school, Howard pursued believe it would make a real difference. imous consent I be allowed to speak in his fascination with airplanes and took A survey by the National Federation morning business for up to 10 minutes. flying lessons. He paid for those flying of Independent Business, our Nation’s The PRESIDING OFFICER. Without lessons with earnings from his musical largest small business advocacy group, objection, it is so ordered. gigs. He became an accomplished pilot showed that the September 11 attacks and developed a lifelong passion for fly- and the economic downturn have sig- f ing. nificantly damaged small business eco- TRIBUTE TO FORMER SENATOR I can remember on a number of occa- nomic activity. According to the HOWARD CANNON sions that he piloted airplanes in which NFIB’s members, 34 percent of those I accompanied him around the State of responding reported that their sales Mr. REID. Mr. President, I spoke last Nevada while he was a Senator. I can are lower since September 11; 13 per- Friday to Howard Cannon. Howard remember specifically one airplane ride cent reported that business investment Cannon served the State of Nevada for that I took from Lovelock, NV, to Las plans had been postponed or canceled 24 years in the Senate. The reason I Vegas with Howard Cannon flying that altogether. spoke to him on Friday was because airplane. I have many fond memories The Senate, tomorrow, will have the the next day—this past Saturday—was of Howard Cannon, but that certainly opportunity to put the investment his 90th birthday. is one of them. plans of our Nation’s small businesses Howard Cannon has a great history. He went into the U.S. military in back on track. This is a modest step we Howard Cannon has served his country 1941. He was about 10 years older than can take, but it is a step that will well. For me, personally, I can remem- most people who went into the mili- make a real difference to our small ber when I was back here working as a tary, as indicated by his age now being businesses and to the millions of em- Capitol Hill police officer and he was a 90 and the average World War II vet- ployees for whom they provide good Senator. I was going to law school. I eran is about 79. While in the Army, he jobs. I urge my colleagues to support attended law school full time during served in a unit of combat engineers. this amendment which the NFIB con- the daytime and then I worked a shift But later he transferred to the Army siders to be a key one in favor of small at night as a Capitol Police officer. Air Corps because they learned he was business. Howard Cannon had previously been a an experienced pilot. In that regard, I ask unanimous con- bar examiner. To be a bar examiner in In September of 1944, Howard Cannon sent a letter from the NFIB, endorsing Nevada means you are one of the best was the commander of a C–47 in which the Bond-Collins amendment, be print- lawyers in the State. It is a very exclu- he was flying American paratroopers. ed in the RECORD. sive group of people. They actually This was before the Allied invasion There being no objection, the letter grade the bar exams for the people who into Europe. His plane was brought was ordered to be printed in the take the bar to become lawyers. down by enemy fire. In fact, it came RECORD, as follows: Howard Cannon, as I reflect back, be- down in Nazi-occupied Holland. He had comes even more significant to me. I dropped these paratroopers near the NFIB KEY SMALL-BUSINESS VOTE was a young man here going to law Arnheim Bridge. He bailed out and SMALL BUSINESS NEEDS HELP NOW!! VOTE YES school and working, and he was a Sen- parachuted behind enemy lines. ON BOND-COLLINS EXPENSING AMENDMENT ator tremendously burdened with re- For 42 days, 6 weeks—I have heard DEAR SENATOR: On behalf of the 600,000 sponsibilities, but yet he took the time Senator Cannon tell this story; it is a members of the National Federation of Inde- pendent Business (NFIB), I urge you to sup- to have me in his office on more than wonderful story—with courage and cre- port Senator Kit Bond’s and Senator Susan one occasion to help me prepare for the ativity and the aid of Dutch farmers Collin’s amendment increasing for two years bar examination. He did that when all and underground police, he made his the amount of equipment purchases that the other activities were going on in way out of Holland into Allied hands.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S162 CONGRESSIONAL RECORD — SENATE January 28, 2002 He had a picture on his wall in his conservative State, but he was willing revenues of the Federal Government an Senate office—he now has it in his to take political risks to do the right amount sufficient so as to ensure that the home—of two boys with an apple. The thing, as he demonstrated in 1964 when income and balances of the trust funds under section 201 of the Social Security Act and reason that was so important is, in his he voted for cloture, allowing the Civil the Social Security Equivalent Benefit Ac- getting out of Holland, he always had Rights Act to come up for a vote. That count under section 15A of the Railroad Re- to find two boys eating an apple. He, of was a very courageous vote for him. He tirement Act of 1974 (45 U.S.C. 231n–1) are not course, would take a bite out of his voted for the Panama Canal Treaty, reduced as a result of the application of sub- apple. That meant it was safe to go also politically dangerous. It hurt him, section (a). where he wanted to go through enemy but he did it because he thought it was (e) DETERMINATION OF BENEFITS.—In mak- ing any determination of benefits under title territory. proper. II of the Social Security Act, the Commis- As a consequence of his gallantry, of Howard Cannon provides a legacy sioner of Social Security shall disregard the evading these German soldiers—of which endures. His work continues to effect of the payroll tax holiday period on course, if he had been caught he would have a positive impact on the country. any individual’s earnings record. have been executed—he was able to On behalf of all the people of the Mr. DOMENICI. Mr. President, I am of- unite with American troops, and for his State of Nevada and those people who fering this payroll tax holiday amend- efforts he received a Purple Heart, Le- served with him in the Senate, I thank ment today to move this process for- gion of Merit, Distinguished Flying Howard Cannon for his service. ward. Right now, we have a Republican Cross, Air Medal with two oakleaf clus- I also want to say a word about his stimulus bill that passed the House; we ters, the French Croix de Guerre with lovely wife. I underscore that because have the President’s plan and the Sen- Silver Star, the European Theatre Rib- she is the sweetest woman you could ate Republicans’ plan; we have the Sen- bon with eight Battle Stars, and a ever know. She was so nice and rep- ate Democrats’ plan. Presidential citation. resented Howard and the State of Ne- But we don’t yet have a stimulus After the war ended, Howard Cannon vada so well in her duties as a Sen- plan that will pass the Senate and be moved from Utah to Las Vegas where ator’s wife. She was so instrumental in signed by the President. he settled with his wife Dorothy and his success. Howard and Dorothy live Let me be clear. I support the Presi- they raised their daughter Nancy and in Las Vegas. He is a little bit hard of dent. I think this administration is son Alan. hearing, but other than that, he is right on track when it comes to an eco- He served as a Las Vegas city attor- physically very strong, as he was when nomic stimulus package. However, any ney. He was a fine lawyer. He was he was in the Senate. existing plan has to be modified to gar- elected in 1958 to the U.S. Senate. He Happy birthday, Howard. ner enough Senate support to pass. accomplished so much for the State of The PRESIDING OFFICER. The Sen- The payroll tax holiday is an idea Nevada. ator from New Mexico. supported by both Republicans and Democrats. He had a personal commitment to f the U.S. military based upon his patri- Yes, I think we should have acted on HOPE FOR CHILDREN ACT— otism but also based on the fact that a stimulus plan last October or Novem- Continued he had been such an outstanding part ber. I would have preferred that this payroll tax holiday had been in place of the U.S. military during the Second AMENDMENT NO. 2723 Mr. DOMENICI. Mr. President, I be- for the December holidays. World War. But having said that, whenever im- When he was in the Senate, he test- lieve I have an amendment at the desk, plemented, a payroll tax holiday will amendment No. 2723. I ask unanimous flew all new aircraft before voting for be more effective at increasing spend- consent that we set aside the pending money to develop them. He could fly ing than the rebate checks sent out amendment and take up the amend- those airplanes. He helped preserve earlier. It will put the tax cut in pay- Nellis Air Force Base when it was ment that is at the desk, amendment checks automatically, without the threatened with Air Force funding cuts No. 2723. need for special mailings. and worked to make Nellis what is now The PRESIDING OFFICER. Without This tax holiday would be in March the preeminent military installation objection, it is so ordered. The clerk 2002. This gives employers and payroll for training American fighter pilots. will report. administrators time to adjust their Senator Cannon considers the impact The assistant legislative clerk read systems for the change. he had on aviation, though, even more as follows: Psychologically, workers are used to significant. His support of the Airport The Senator from New Mexico [Mr. DOMEN- adjusting their spending habits based and Airways Development Act, and ICI] proposes an amendment numbered 2723. on the size of their paychecks. At later airline deregulation, helped make Mr. DOMENICI. Mr. President, I ask present, workers spend about 95 cents air travel what it was prior to Sep- unanimous consent that reading of the for every dollar of after-tax earnings. tember 11. amendment be dispensed with. Increasing their after-tax earnings will Howard Cannon’s contributions en- The PRESIDING OFFICER. Without therefore lead to more spending—if abled Nevada to attract more travelers objection, it is so ordered. they perceive the tax cut to be part of and become the tourist capital of the The amendment is as follows: their regular earnings. world, one of the most popular destina- (Purpose: To provide for a payroll tax The Congressional Budget Office ana- tion resort areas in the world. He holiday) lyzed the various stimulus proposals. helped expand our Nation’s transpor- At the end, add the following: CBO said: tation system. He served as chairman SEC. ll. PAYROLL TAX HOLIDAY. Among the options being considered for of the Senate Rules Committee. We (a) IN GENERAL.—Notwithstanding any providing fiscal stimulus, a payroll tax holi- were very proud of Howard Cannon at other provision of law, the rate of tax with day could have a comparatively large bang for the buck . . . bigger paychecks might in- that time. And, of course, later he respect to remuneration received during the payroll tax holiday period shall be zero duce more spending than rebates would and served as chairman of the Commerce a payroll tax holiday would reach many Committee. under sections 1401(a), 3101(a), and 3111(a) of the Internal Revenue Code of 1986 and for lower income working families. He contributed so much for the State purposes of determining the applicable per- The bottom line: A payroll tax holi- of Nevada, not the least of which was centage under section 3201(a), 3211(a)(1), and day is truly a stimulative, temporary his farsightedness in providing money 3221(a) of such Code. tax cut that is very likely to be spent. through the Congress for the Southern (b) PAYROLL TAX HOLIDAY PERIOD.—The Nearly all wage earners, all except Nevada Water Project that has allowed term ‘‘payroll tax holiday period’’ means the those who have already reached the Las Vegas to grow the way it has, period beginning after February 28, 2002, and taxable maximum of $84,700, even those drawing water out of the Colorado ending before April 1, 2002. who don’t earn enough to pay income River. This was just one of his accom- (c) EMPLOYER NOTIFICATION.—The Sec- retary of the Treasury shall notify employ- taxes, would benefit. plishments, but he had numerous ac- ers of the payroll tax holiday period in any Both the employee and employer complishments. manner the Secretary deems appropriate. share—6.2% each—of the Social Secu- One reason I admire Howard Cannon (d) TRANSFER OF FUNDS.—The Secretary of rity—OASDI—payroll tax would be sus- so much is Nevada was and is a very the Treasury shall transfer from the general pended. Self-employed Social Security

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S163 payroll taxes would also be suspended. What I am saying to Senators and to behalf of our people, we are going to The Social Security trust fund would the public is that everyone agreed we have to make a choice. He is going to be made whole via a transfer from the should project the growth for this year suggest that while there is evidence general fund. at about 3.4 percent, a pretty healthy the American economy is coming back Employees would have more take- growth year over year. That means the and, as some say—perhaps Dr. Green- home pay and employers would have entire basic growth of the United span would say—if he were to put nine increased cash flow. States was going to go up substan- criteria up there on the economy, he A school teacher making $40,000 tially. It turned out the estimates were would say we are now out of recession would see an increase in their take- wrong, and it came down. We lost $220 on five out of nine. So if you want to home pay of $207 in May. A self-em- billion in the assumption with ref- weigh that, a majority of the indica- ployed contractor earning $40,000 per erence to how much money we were tors of growth, or nongrowth, are on year, who pays both the employer and going to take in. the growth side. employee share of 12.4%, would see an Let me repeat, that is about a 72-per- We still have to ask ourselves, is it increase in pay of $413. cent reduction in the surplus we had going to take too long to come out of This proposal enjoys wide support. expected to accumulate, just that one this recession or should we pass a bill The majority leader was ready to in- item. For those who wonder about the that would stimulate the American clude it in his earlier plan. Several effect of our tax cut, it was $28 billion economy? Senators have cosponsored the bill here compared to the 220 that came from I believe the President is going to say in the Senate. I believe this proposal the economy plunging. It is 14 percent he would like us to join him in passing could provide us with a bipartisan way for the tax cut. That is the reality of a stimulative tax incentive package. It to enact a stimulus bill quickly. it. is with reference thereto that today I Mr. President, I didn’t want to let I remember rather vividly that the ask if the Senate is going to consider today go by without reintroducing this chairman of the Budget Committee, passing a tax incentive bill, that they measure we call the ‘‘payroll tax holi- who presided over two hearings early give serious consideration to a payroll day’’ amendment. The occupant of the this year, at the last one or the second- tax holiday—that is, a Social Security chair has on a couple of occasions spo- to-last hearing, did acknowledge that payroll tax holiday—for all of the em- ken to the Senator from New Mexico in terms of this year the tax cut had ployees of the Nation for 1 month and about this amendment. At some point only the impact about which the Sen- all of the employers of the country for in the history of the so-called stimulus, ator from New Mexico is talking. 1 month, and that that month be the are we going to do it or are we not? The When we speak about a tax cut that month of March. That is about as fast distinguished Senator was a cosponsor we have already passed being too big, as you can do it. It is also about as fast of the amendment. then we have to try to look at what we as any of the other taxes you are going People are now talking about the are talking about. We passed a tax cut to consider and get implemented and fact that a very large surplus that we that came into play little by little over become part of the tax laws of the land, were reporting at the beginning of this a full decade, a little bit each year, to either cause growth or restrain year, some $300 billion, has disappeared with the biggest tax cuts coming 6, 7, growth. for all intents and purposes and that and 8 years from now. That was already As I have said, I knew this was going the President tomorrow night is going passed, but it will not take effect. So to be the case when I asked for cospon- to deliver to the American people his for those who think it is too big and sors, and many helped. Many have said ideas and his proposals and concepts. that we should not give the American this is probably a good way to get the And, obviously, shortly thereafter he people that kind of tax relief 6, 7, 8, 9 economy going. It probably amounts to will call for the budget that will be his years from now, they have plenty of about $40 billion that gets back into proposals to match fiscal policy and time to fix it. They could fix it this the hands of American workers every- tax policies with the speech he made year in the budget, if they would like, where and employers, large and small, and what he intends to do during the by suggesting we increase taxes in lieu in 1 month, for they don’t have to pay ensuing year. of the decrease we passed. They could their half. I remind everyone, once again, what wait until next year and say let’s in- In the meantime, we also heard from actually happened to this surplus for crease taxes. various institutional analysts—in this the year we are talking about, this I don’t believe we should increase case the CBO, which does a lot of anal- year, had very little to do with wheth- taxes. Actually, the tax reductions we ysis and upon whose numbers we base er we cut or raised taxes. Some are made over the next decade still leave our projections with reference to what saying to the American people, the tax the overall tax on the American people is going to happen when you pass tax cut is what brought down this wonder- at a high level compared to other tax packages. We run it through a joint ful surplus that was going to pay down years during the last 30 to 40 years. committee, but CBO gives their esti- our debt and we should not be cutting Let me quickly tell you about that. mates, and they are pretty good. They taxes. Well, the point is, we only cut For 60 years, postwar, the average indicated that, of the taxes being con- $38 billion worth of taxes as a tem- taxes as a percentage of GDP were 18 templated, the most stimulative would porary reduction in that surplus. The percent. For a period of 60 years, after be this tax holiday. They base that on fact that we have gone down in terms the war and continuing on, the average assumptions as to what happens when of our economic prosperity and slowly tax take was 18 percent. Now even with you get more money in your paycheck but surely ended up with a recession, a the tax cut over the 10 years, the taxes and what happens when you get less in real recession—it doesn’t seem as if it are going to be 19 percent of the gross your paycheck. They have concluded is going to last too long—that period of domestic product. They are projected that the overwhelming percentage of time of the American economy coming by CBO to rise to 20 percent of the Americans will spend the money if it is from a projected growth of over 3 per- gross domestic product over the next reflected in their check as a payroll cent to what all of us know is cur- decade. In this year, it will be 19 per- check. This will not be huge for each rently a negative growth, that is what cent. Over the decade it will go up to taxpayer of America. But somebody took $220 billion of this surplus. 20. making $40,000—depending on who is I know as I say this, if there are peo- How can they be higher than they working, the husband and wife, it could ple interested in what we say, some are have been on average for the past 60 be between $200 and $400 in 1 month. asking, what do you mean? years and yet there are some who That would be the change in their In the U.S. Government, when we would like to increase taxes from this checks. have a growing economy, an economy high level that already is imposed upon If an employer has 10 such employ- that is projected to grow for the rest of them? ees—you see, they don’t pay—their half this year at 3.4 percent, we have to es- So we ought to be talking about that is the same amount. They don’t pay timate how much in taxes is going to for some time. But right now, the that to the Federal Government. They come into the Treasury of the United President will be speaking to us tomor- get it to invest or do whatever they States based on that kind of growth. row, Senators and House Members. On would like, in terms of helping their

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S164 CONGRESSIONAL RECORD — SENATE January 28, 2002 business grow and helping them to add CHANGES IN CBO’S BASELINE PROJECTIONS OF THE time again to make sure we commit to more employees or, as may be the case, SURPLUS SINCE JANUARY 2001—Continued the real needs of the people in this staving off having to lay someone off [By fiscal year, in billions of dollars] country. or, indeed, being able to buy equipment But in our slowing economy, States Total % they weren’t going to be able to buy. 2002 2002– % 2002– are already facing a serious budget All of this is going to be at the dis- 2011 2002 2011 crunch, forcing some of our State lead- posal of businesses, large and small. It ers to make tough decisions. In fact, Changes a will be a very healthy dollar amount as Legislative the recession would force Iowa to cut we move through that 1 month and the Tax act b ...... (41) (1,657) 12 41 Discretionary ...... (45) (714) 14 18 $18 million from its State Medicaid effective date that will take place, de- Other ...... (5) (49) 1 1 budget, funds that would have brought pending upon whether we in the Con- Subtotal ...... (91) (2,420) 27 60 an additional $32 million in Federal gress decide to pass this proposal. Economic and Technical c (242) (1,588) 73 40 money to our State. Let me repeat, for simplicity, we will All of us, when we are talking about Total ...... (333) (4,008) 100 100 call it the payroll tax holiday amend- a stimulus, have to think about what is ment. So everybody will know, it is the Total Surplus or Deficit (¥) as Pro- happening in the State budgets. I know payroll withholding for Social Security jected in January 2002 ...... (21) 1,602 ...... Memorandum the occupant of the chair is the former for 1 month on employers and employ- Legislative changes to discretionary Governor of the distinguished State of ees of America. I believe I am correct spending a Delaware and he knows, as well as oth- Defense ...... (34) (396) 10 10 in saying it is somewhere between $39 Nondefense ...... (11) (318) 3 8 ers, that when recessions go up and un- billion and $42 billion in that 1 month. a These estimates include the interest effects of changes assumed. employment goes up, the impact on the And to the extent there is a month b CBO cost estimate for the Economic Growth and Tax Relief Reconcili- State budgets to meet their require- that we do not put the money into the ation Act of 2001 (P.L. 107–16). The estimate includes both a reduction in taxes and an increase in outlays. ment for Medicaid increases dramati- Social Security fund, we do replenish it c Changes not directly driven by new legislation or by changes in the cally. from the general tax revenues of the components of CBO’s economic forecast are considered technical. What happens is, as these rolls grow, United States, which is the way we Source: Congressional Budget Office. then there is more of a demand on the have done it for years when indeed we Mr. DOMENICI. Mr. President, that State moneys. For example, there are have had this kind of expenditure oc- is what it is going to be in 2002 through already 240,000 Iowans on Medicaid, curring. 2011. The source is the CBO. The facts about 15 percent more than what the I will repeat that when the President are pretty easy to understand—the es- State expected to serve this year. The sends his budget here and he is asking timates for the Economic Growth and same providers who are facing the cuts that we spend more, not less, on de- Tax Relief Reconciliation Act. The es- will also be called upon to serve a fense—in fact, I think he will ask for a timate includes both a reduction in growing number of people. When the 12-percent increase in defense spending. taxes and an increase in outlays. That providers are cut, the patients they I believe on homeland defense spending will be in the budget if we choose to do serve feel it. he is going to ask that it be doubled in something on the tax side. As we look at what is going on in the percentages—about a 111-percent in- The PRESIDING OFFICER. The Sen- country today, we cannot allow Med- crease. Of course, it was a small num- ator from Nevada is recognized. icaid recipients, some of the most vul- ber. He is going to ask that those two Mr. REID. Mr. President, we have nerable people in our country, the most items across our various expenditure had an agreement with the minority vulnerable of my constituents in Iowa, lines be considered the highest priority since this bill came up that we would to fall through the cracks. But unless and that we spend our money on those alternate amendments. We have done Iowa and other States get help, they two. And a third is that we produce a that, but we have never formalized will have to either make deeper pro- stimulus. I believe the stimulus I am that. vider cuts take effect, make eligibility talking about here—the payroll tax I ask unanimous consent that the requirements tougher, or cut benefits, holiday—will ultimately, depending first-degree amendments offered with all of which are going to impact the upon what you put with it, receive the respect to H.R. 622, the economic re- most vulnerable people in our society. support of the President. I believe he covery/stimulus measure, be offered One provision in the stimulus bill is will sign a bill with that in it. and considered in an alternating fash- of particular importance to my State I think if Senators begin to pay at- ion. of Iowa, and I would say all States tention to what might work, surely we The PRESIDING OFFICER. Without across the country. This provision will have to do something on unemploy- objection, it is so ordered. give States critical assistance in meet- ment compensation and we have to do Mr. REID. Mr. President, I inquire of ing their Medicaid responsibilities by something on a few other of the social the Chair if the following is the order increasing the Federal match for Med- programs that affect our working men in which these amendments have been icaid, the FMAP, for 1 year. and women. But we are also going to do offered: Durbin, No. 2714; Bond, No. Under the Daschle amendment, every something on the tax side of the ledger. 2717; Baucus, No. 2718; Allen, No. 2702; State would get a 1.5-percent increase I submit that this one is more apt to Harkin, No. 2719; Bunning, No. 2699; in their 2002 FMAP. I do not know what get us out of the lethargy that is cur- Baucus, 2721; and Hatch, No. 2724, plus it will mean to all the States, but I do rently in various parts of our economy, we have an amendment, No. 2723, of- know it will mean an additional $30 which doesn’t seem to want to move. I ask unanimous consent that at the fered by the Senator from New Mexico. million to the State of Iowa. Again, while what is in the under- end of this speech, the chart on the The PRESIDING OFFICER. The Sen- lying bill is an important first step, we CBO baseline projections of the surplus ator is correct. Mr. REID. That being the case, there must remember it was developed when since January 2001 by fiscal year in the would be two Democratic amendments State-projected deficits were estimated billions of dollars be printed in the next in order. to be a lot lower than they are today. RECORD. There being no objection, the mate- The PRESIDING OFFICER. The Sen- On October 31 of last year, the Na- rial was ordered to be printed in the ator is correct. tional Association of State Budget Of- Mr. REID. I thank the Chair. ficers predicted a $15 billion shortfall RECORD, as follows: The PRESIDING OFFICER. The Sen- for the States for 2002. On October 31, CHANGES IN CBO’S BASELINE PROJECTIONS OF THE ator from Iowa is recognized. there was a $15 billion estimated short- SURPLUS SINCE JANUARY 2001 Mr. HARKIN. Mr. President, I com- fall in our State budgets. Six weeks [By fiscal year, in billions of dollars] mend Chairman BAUCUS and Senator later, on December 19, they updated DASCHLE for their leadership and their that to a $38 billion shortfall in our Total % determination on this important issue State budgets. We all know when we 2002 2002– % 2002– 2011 2002 2011 of the ever-deepening recession of the talk about State budget deficits, we United States and the fact that so are talking in large part about their Total Surplus as Projected in January 2001 ...... 313 5,610 ...... many people are out of work. They Medicaid budgets. In many States, that have consistently returned time and is the largest part.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S165 Because most States are required by double that from 1.5 percent to 3 per- from that of the adversarial cold war their constitutions to balance their cent will make it so that the States relationship between the two super- budgets every year, they have to look will not have to cut their Medicaid powers, and how this ABM decision is to Medicaid for cost savings. budgets this year. probably the most dramatic recogni- Without adequate State fiscal relief I hope we can adopt this amendment. tion of that new relationship. through a temporary increase in the I hope we can get the stimulus bill I will discuss what that means both FMAP, the Federal Medicaid matching passed and get increased unemploy- in terms of the relationship between rate, these cuts are likely to be ap- ment benefits out there, health care the two countries in the future but also proved. It could be even worse as the benefits, and help our States with their what it means in terms of a change in deficits worsen further. Medicaid budgets. This will do more to the direction of the philosophy of this To help States avert these otherwise stimulate the economy than anything country with respect to national secu- unavoidable cuts, I have offered an else we are doing. rity issues, especially how it relates to amendment which is in the lineup for Mr. President, I yield the floor and the question of how we protect our- tomorrow that will increase the Fed- suggest the absence of a quorum. selves. Is it through a combination of eral Government’s match of State Med- The PRESIDING OFFICER. The ideas that are premised on peace icaid spending by 3 percent instead of clerk will call the roll. through strength, going back to the the 1.5 percent that is in the under- The legislative clerk proceeded to Reagan days, or more of a focus on lying amendment for the next fiscal call the roll. arms control agreements, reflecting year. Mr. KYL. Mr. President, I ask unani- more of the Clinton administration If this amendment is agreed to, all mous consent that the order for the view? States will receive an enhanced 3-per- quorum call be rescinded. Clearly, the Bush administration has cent increase on their FMAP. Also, the The PRESIDING OFFICER (Mr. MIL- decided defending the United States de- States that have high unemployment LER). Without objection, it is so or- pends first and foremost upon our abil- rates will still get their 1.5-percent dered. ity to defend ourselves through missile bonus and all States will still be held Mr. KYL. Mr. President, I ask that I defense, for example, and less on arms harmless. be allowed to speak in morning busi- control agreements. I will be discussing Basically, my amendment takes the ness for a period of 25 minutes. what I think are the important rami- underlying 1.5 percent and makes it 3 The PRESIDING OFFICER. Without fications of that decision. percent in terms of the Federal match objection, it is so ordered. Today, I will first of all commend the for Medicaid. f President for his decision, made on De- It will provide about $3.5 billion more cember 13 of last year, of the intent to WITHDRAWAL FROM THE ABM to the States than the pending legisla- withdraw from the ABM Treaty and, TREATY tion and over $7.5 billion more than the secondly, discuss the reasons I believe House-passed plan to help offset the Mr. KYL. Mr. President, tomorrow this was the right decision for the impending State Medicaid cuts for pro- evening President Bush will be giving President to make. Let me note those viders and beneficiaries. his State of the Union speech. He will two reasons in summary. Again, State fiscal relief is one of the undoubtedly review the actions of the It is highly questionable whether the best ways to stimulate the economy past year and talk about his plans for ABM Treaty ever served U.S. interests. because Federal dollars used for this this current year. It seems to me ap- It did not stop an arms race, its pur- purpose help avert the State budget propriate to focus a little bit on what pose, as proponents claims. It was the cuts and the tax increases that can be I believe is one of the most important product of a bipolar international detrimental to any economic recovery. decisions he made in the last year and structure, as I said before, that no The people in Iowa and all across the to reflect a little bit upon what that longer exists and no longer reflects the Nation have enough trouble finding af- decision will mean for the United relationship we should have with Rus- fordable quality health care. They need States in the years to come. It was sia as a result. It remains a serious ob- our help and support during this reces- made at a time when Congress was not stacle to U.S. ability to defend itself sion. When it comes to protecting the in session and the country, frankly, against the long-range threat of bal- vulnerable in these difficult times was primarily thinking about the listic missiles. The President’s decision while getting our economy back on Christmas season. There was not a lot was a necessary step forward in ad- track, putting Iowans and all Ameri- of media attention paid to the decision. dressing that threat. The future na- cans back to work, this proposal to in- For reasons I will discuss in some tional security of the United States re- crease the FMAP, the Federal match subsequent speeches, it seems to me quires the construction of ballistic on Medicaid, is right on the mark. one of the most fundamental and im- missile defenses that were flatly pro- This amendment will be up tomorrow portant decisions of any President in hibited by the treaty. for a vote. I hope it will get over- recent years and certainly of President Let me discuss those items in turn. whelming support because, again, we Bush during his first term. I refer to First, with respect to the purpose of cannot afford to let the most vulner- his decision on behalf of the United the treaty, the premise of the ABM able in our society fall through the States to give notice to Russia of the Treaty back in 1972 was that if neither cracks, and we have to recognize that withdrawal of the United States from the United States nor the Soviet Union States are facing over a doubling of the the 1972 ABM Treaty. As I said, I am took steps to protect itself against a initial estimate of what their State going to discuss different aspects of devastating nuclear strike, then both shortfalls would be in their budgets for this decision in some subsequent re- nations would feel confident in their this next fiscal year. marks. ability to retaliate against each other, Looking at all that, we need to make For example, I will discuss the Presi- secure in the knowledge that each pos- sure we increase the Federal share. For dent’s legal authority to withdraw. sessed that capability, and neither a small amount of money we put into Some have suggested action by the would find it necessary to increase the it, considering the nationwide impact, Senate should take place or that some- size of their nuclear arsenals. An ac- the multiple effect it will have on our how the President doesn’t necessarily companying agreement, SALT I, was economy will be tremendous, espe- have the authority to withdraw from intended to limit the size and shape of cially as it affects those State budgets. the treaty. That is not true; he does. I the arsenals in order to enhance stra- Again, I commend Senator DASCHLE will be discussing that. I also want to tegic stability. and Senator BAUCUS for the underlying address in subsequent remarks how I Proponents of the ABM Treaty—and amendment. If we had voted on this think this decision changes the geo- their numbers are many —have for the last year, perhaps 1.5 percent might political relationships and, frankly, re- 30 years or so since the treaty’s ratifi- have been sufficient with what we flects a 21st century view of the world, cation considered it the cornerstone of knew then. But with what we know especially the relationship between the strategic stability. They view the trea- now, 1.5 percent is not sufficient. I be- United States on one hand and Russia ty not just as the guiding document in lieve this amendment I have offered to on the other hand, a view far different United States-Soviet and now United

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S166 CONGRESSIONAL RECORD — SENATE January 28, 2002 States-Russian relations but as the The ABM Treaty was negotiated be- If the National Intelligence Estimate principal constraint on all countries tween two countries, one of which no is nebulous in its description of the considering developing missile forces longer exists. At its signing, little con- threat to the continental United States with which to threaten neighbors and sideration was given to a post-Cold War of long-range ballistic missiles, it is argue that the absence unleashes a de- world. The developments of the late emphatic in its description of the stabilizing arms buildup around the 1980s and early 1990s were simply not threat from shorter-range missiles: world, including in Russia. foreseen. Nuclear and missile prolifera- The probability that a missile with a weap- Well, what of this? tion, while certainly acknowledged as on of mass destruction will be used against The central premise of the ABM issues, took a backseat in the two su- U.S. forces or interests is higher today than Treaty, that the United States and So- perpowers’ thinking to direct bipolar during most of the Cold War, and it will con- tinue to grow as the capabilities of potential viet nuclear arsenals would be re- considerations back in 1972. strained by the absence of missile de- adversaries mature . . . (T)he missile threat Proliferation is today, however, one will continue to grow, in part because mis- fenses, is refuted through the simplest of our principal national security chal- siles have become important regional weap- quantitative analysis. In the 15 years lenges. Roughly two dozen countries ons in the arsenals of numerous countries. since the treaty’s ratification, the have or are developing ballistic mis- Moreover, missiles provide a level of pres- number of strategic ballistic missile siles. These weapons have also become tige, coercive diplomacy, and deterrence warheads in the inventory of the So- a common feature of modern warfare. that nonmissile means do not. viet Union grew from around 2,000 to Used but once between 1945 and 1980, What this tells us is that missiles re- 10,000. The U.S. level grew from around thousands of ballistic missiles have main an extremely important compo- 3,700 in 1972 to about 8,000 in 1987. In been fired in at least six conflicts since nent of the arsenals of the very re- fact, strategic nuclear forces expanded 1980, and their range and sophistication gimes that represent our greatest for- not just quantitatively but quali- are growing. In fact, despite the prom- eign policy challenges. Yet, the NIE tatively as well. The decade following ised reductions in Russian strategic suggests that the threat from medium- the ABM Treaty signing witnessed in- forces, the threat from other countries range missiles is not likely to be troduction into the Soviet arsenal of seeking to target the United States matched by a commensurate threat entire generations of new long-range with long-range missiles has grown from long-range missiles in the next 15 missiles, not just in contradiction to since the end of the Cold War. years, in spite of the fact that the very the intent of the ABM Treaty but in Let me give some examples of this same arguments for medium-range contravention of the accompanying trend: missiles exists in the case of longer- SALT I accord as well. China is actively modernizing and ex- range ones. The post-cold-war picture similarly panding its long-range missile force. Fortunately, we have today a Sec- argues against the treaty’s effective- The newly released National Intel- retary of Defense who understands inti- ness at restraining offensive forces. ligence Estimate states that, by 2015, mately the weaknesses of intelligence China has been exceedingly belligerent ‘‘the total number of Chinese strategic estimates that seek to predict foreign in its use of warlike rhetoric targeted warheads will rise several-fold.’’ technological developments. As chair- against the concept of a regional mis- Despite difficulties it has experienced man of the bipartisan Rumsfeld Com- sile defense plan encompassing the is- in developing its Shahab-3 medium- mission, Secretary of Defense Rums- land of Taiwan. Yet in the absence of range missile—and it should be pointed feld led an effort to assess the threat of missile defenses, it has been deploying out that all countries, including the foreign ballistic missiles and the abil- missiles opposite Taiwan at the rate of United States, experience develop- ity of the intelligence community to 50 a year. China made the decision and mental problems with new missile pro- accurately estimate the scale of that embarked on a modernization of its grams—Iran continues to place much threat. The commission’s unanimous long-range missile force targeted emphasis on its missile activities. With conclusion was that the missile threat against the United States long before considerable Russian assistance, it is to the United States ‘‘is broader, more the United States made a decision to developing missiles capable of striking mature and evolving more rapidly than deploy missile defense systems. Central Europe. The new NIE concludes has been reported in estimates and re- Similarly, India and Pakistan missile that ‘‘Teheran’s longstanding commit- ports by the intelligence community,’’ developments which, combined with ment to its ballistic missile programs and a rogue nation could acquire the each country’s nuclear weapons pro- . . . is unlikely to diminish.’’ capability to strike the United States grams, create the most dangerous re- Iraq is believed to covertly possess a with a ballistic missile in as little as 5 gion on Earth right now, occur without stockpile of banned missiles. While years. reference to missile defenses. And of Iraq’s missile programs have been con- That analysis was accepted by the course missile programs of countries strained by sanctions in effect since Congress, by the President, and by a such as Iran, Iraq, and North Korea the Persian Gulf War, the gradual but majority of the intelligence commu- have been restrained at times by tech- steady erosion of those sanctions could nity. The Rumsfeld Commission turned nological factors but never by the pres- result in its being able to reconstitute out to be more prescient than anybody ence of missile defenses in countries anticipated. Within months of the com- they might target. its long-range missile programs. Iraq’s ability to surprise us in the past with pletion of its report, North Korea The point is that missile forces are shocked the intelligence community not a response to missile defenses. the scale of its missile and nuclear, chemical and biological programs with its launch of the Taepo-dong. They are the result of national percep- Indeed, for all of its successes—and tions of threat and political and mili- should serve as a warning of what can happen should the sanctions regime they have been both numerous and tary requirements. As the new Na- vital to our security—it does not dis- tional Intelligence Estimate on foreign collapse completely. North Korea has extended its mora- grace the intelligence community to ballistic missiles states: point out that either it or its political The ballistic missile remains a central ele- torium on testing its intercontinental- range Taepo-dong missiles, but its sur- overseers have, at times, missed impor- ment in the military arsenals of nations tant developments. A recent article in around the globe and almost certainly will prise August 1998 test flight over Japan retain this status over the next 15 years. of one such missile should similarly Jane’s Intelligence Review describes the three times during the 1990s that In other words, ballistic missiles are temper any enthusiasm about that re- North Korea alone surprised the United not being built as a result of missile gime’s capabilities and intentions. The States within the realm of missile pro- defenses being built. Those missile National Intelligence Estimate pointed grams: forces are already occurring, are al- out that North Korea has not aban- ready being built, and it is the defenses doned the the Taepo-dong 2, and that it The first was in 1990 with the testing of the could reappear ‘‘as a [space-launch ve- No-dong IRBM . . . The second surprise was which now need to restrain them. in 1994, when aerial photographs revealed Another point: The bipolar world hicle] with a third stage to place a mock-ups of two new two-stage ballistic mis- structure that I referred to no longer small payload into the same orbit the siles, named Taepo-dong 1 and 2. The third exists. The problem of proliferation North Koreans tried to achieve in surprise came in August 1998 with the test here has to be addressed. 1998.’’ launch of Taepo-dong 1. . . .

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S167 President Bush recognized the fail, and we ought not be left with mas- of the ABM Treaty. That was the effi- changed post-Cold War security envi- sive retaliation as the only response to cacious thing about the treaty: it effec- ronment typified by the ballistic mis- an attack on the United States. tively prevented the development of sile programs of numerous real or po- It has always been of concern to me such a system. tentially hostile countries, when he that we would rely on deterrence Furthermore, we cannot even re- stated in his December 13 announce- against a largely innocent population search the kind of layered defense nec- ment of his intent to withdraw the of a country headed by a tyrant. The essary to maximize the prospects of a United States from the ABM Treaty: best deterrence is the ability to defeat successful intercept. . . . as the events of September the 11th an attack. The principal impediment Article V of the treaty states: made all too clear, the greatest threats to to our ability to develop the means to Each Party undertakes not to develop, both our countries come not from each actually defend against missile attack test, or deploy ABM systems or components other, or other big powers in the world, but is not technology. It is the ABM Trea- which are sea-based, air-based, space-based, from terrorists who strike without warning, ty, as I said before. As the President or mobile land-based. or rogue states who seek weapons of mass de- stated in his December 13 announce- Article VI states: struction. ment: The President’s announcement was Each Party undertakes not to give mis- We must have the freedom and the flexi- siles, launchers, or radars, other than ABM the culmination of a period of negotia- bility to develop effective defenses against interceptor missiles, ABM launchers, or tions intended to convince Russia of those attacks. Defending the American peo- ABM radars, capabilities to counter stra- the need to amend or scrap an outdated ple is my highest priority as Commander in tegic ballistic missiles or their element in treaty. He did this because he believes Chief, and I cannot and will not allow the flight trajectory, and not to test them in an that the appropriate response to the United States to remain in a treaty that pre- ABM mode. threat from foreign missile programs vents us from developing effective defenses. It is critical. That is why the Sec- must include defenses against those Despite the failure of the ABM Trea- retary of Defense was forced in October missiles, and that the ABM Treaty pre- ty to slow the growth in nuclear arms, to alter the most recent missile-flight vents the United States from devel- it was remarkably successfully at pre- test. It would have violated the treaty oping and deploying those defenses. venting the development of missile de- had we used a U.S. Navy ship to track What of that latter point? Some have fenses. We cannot develop, let alone de- the target missile in flight—precisely, argued maybe we could stretch our re- ploy, a national missile defense system by the way, what we want to do in de- search time and testing time and still under the constraints of the ABM Trea- veloping a successful missile defense not be in direct violation of the treaty. ty. That was its whole purpose. But system. Because the sea-based option In fact, the previous administration times have changed, and, as the Presi- remains among the most promising for sought to deal with the threat of bal- dent has pointed out, the treaty has be- a secure, flexible missile tracking ca- listic missile attack primarily by rely- come an unacceptable restraint on our pability, we should be actively inte- ing on treaties or agreements as ar- ability to defend ourselves against the grating the AEGIS system into these ticulated in 1994 by Under Secretary of threat of ballistic missile attack. flight tests, but under Articles V and State John Holum: To repeat, we cannot develop, let VI of the treaty that is prohibited. The Clinton Administration’s policy aims alone deploy, a national missile de- Similarly, use of a Multiple Object to protect us first and foremost through fense system under the constraints of Tracking Radar at Vandenberg Air arms control—by working hard to prevent the ABM Treaty. Both its letter and its Force Base, which was going to be used new threats—and second, by legally pursuing intent are very clear on this point. Let to track the target missile, is prohib- the development of theater defenses for me just take a moment to explain why. ited. An administration official was those cases where arms control is not yet Article I, Section 2, states: successful. quoted in the Washington Post as not- Each Party undertakes not to deploy ABM ing: Arms control, first and foremost; systems for a defense of the territory of its only secondarily by pursuing the devel- country and not to provide a base for such a This shows that the ABM Treaty is already opment—not deployment—of theater defense, and not to deploy ABM systems for constraining us in a very material way. defenses, not defenses against inter- an individual region except as provided for in These are aspects of tests that we canceled, and they need to be done at some point. continental ballistic missiles, and only Article III of this treaty. in those cases where arms control is Additionally, under the terms of the Similarly, how can we exploit the ca- not yet successful. That is an entirely treaty, specifically Article III, we can pabilities that may emerge from devel- different paradigm, that we can rely only build one treaty-permissible site opment of the Airborne Laser Program, upon arms control to protect the peo- around either Washington, D.C., or a system designed to shoot down ple of the United States. around an ICBM field. The treaty pre- enemy missiles early in their ascent There are no arms control agree- vents the defense of any other part of phase when they are larger and hotter ments with rogue states, and they the United States. That is why the and therefore easier to target? The Air- don’t prevent nuclear blackmail. Na- Fort Greely, AK, site under the terms borne Laser won’t necessarily know tional Security Advisor Condoleezza of the treaty, cannot be an operational whether it is shooting at a short-range Rice noted this problem in her July 13 missile defense site. missile, or one with intercontinental speech before the National Press Club: Critics of the President argue that range. The former would be permissible We must deal with today’s world and to- the decision to withdraw from the trea- under the treaty, but not the latter. day’s threats, including weapons of mass de- ty is premature, and that the treaty In short, the treaty, as it was de- struction and missiles in the hands of states does not really prevent the develop- signed to do, prevents us from even de- that would blackmail us from coming to the ment of the capability to build a na- veloping let alone deploying a national aid of friends and allies. tionwide defense. missile defense system that exploits Nor do I think it is a good idea to For example: The Union of Concerned the most promising technologies. rely principally on deterrence. One Scientists concludes, on the basis of its In conclusion, the ABM Treaty was problem with deterrence is that it does own examination of the issue, that signed in a vastly different strategic fail. We acknowledge that fact when ‘‘there is no compelling reason for the environment than exists today. It can applied regionally. We support the United States to withdraw from the hardly be said to have been a success Israeli Arrow missile program because ABM Treaty for at least the next sev- during the cold war, the geopolitical we know that Israel’s adversaries may eral years.’’ One of our colleagues from context in which it was written. Today, not be deterred by threat of retalia- the State of Florida, Senator NELSON, it serves only to prevent us from ad- tion. In fact, in the case of Saddam stated at a hearing in June: dressing the post-cold war challenges Hussein during the Gulf War, such re- We need, for the sake of defense of our that confront us from a number of taliation was invited. country, to proceed with robust research and other countries. A treaty that failed in When the subject becomes the safety development, but you can’t deploy some- a strictly bipolar structure to restrain of American cities, however, such ac- thing that’s not developed. nuclear weapons developments, it is knowledgements disappear. The fact The fact is, we cannot develop a na- even more ill-suited to the security en- remains, though, that deterrence does tionwide system under the constraints vironment of today’s multipolar world.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S168 CONGRESSIONAL RECORD — SENATE January 28, 2002 The President’s decision to withdraw SEC. ll. PERMANENT EXTENSION OF RESEARCH A study by Coopers & Lybrand in 1998 the United States from its provisions CREDIT; INCREASE IN RATES OF AL- showed that a permanent extension of TERNATIVE INCREMENTAL CREDIT. should be commended. We cannot pred- (a) PERMANENT EXTENSION OF RESEARCH the R&D tax credit would create nearly icate the defense of the American peo- CREDIT.— $58 billion in domestic economic ple on a theory of deterrence that as- (1) IN GENERAL.—Section 41 of the Internal growth through 2010. sumes hostile regimes make decisions Revenue Code of 1986 (relating to credit for This is an astounding and immediate in the same manner as do we, and that increasing research activities) is amended by impact that affects virtually every leaves us vulnerable to a particular striking subsection (h). American. Available solely for incre- type of threat we know is on the hori- (2) CONFORMING AMENDMENT.—Paragraph mental research activities in the (1) of section 45C(b) of such Code is amended zon. United States and Puerto Rico, ap- by striking subparagraph (D). proximately 75 percent of the R&D tax We have a fundamental responsi- (3) EFFECTIVE DATE.—The amendments bility to the American public to defend made by this subsection shall apply to credit dollars pay for salaries of em- it against all threats. The threat from amounts paid or incurred after the date of ployees associated with research and the ballistic missile programs of for- the enactment of this Act. development. These are high-skilled, eign countries is real, and it can be ex- (b) INCREASE IN RATES OF ALTERNATIVE IN- high-paying American jobs. pected to grow. We cannot address that CREMENTAL CREDIT.— In an ever expanding global market- threat within the confines of the ABM (1) IN GENERAL.—Subparagraph (A) of sec- place, it is important that American tion 41(c)(4) of the Internal Revenue Code of Treaty. The decision to move beyond it companies be able to compete abroad. 1986 (relating to election of alternative in- It is also important that multinational was the right decision, and I applaud cremental credit) is amended— President Bush’s leadership on this (A) by striking ‘‘2.65 percent’’ and insert- firms see the United States as a wel- issue of tremendous importance to all ing ‘‘3 percent’’, come laboratory for research and de- Americans. (B) by striking ‘‘3.2 percent’’ and inserting velopment. As I said, he probably will be too ‘‘4 percent’’, and Australia, Canada, Germany, Great modest to address this much in his (C) by striking ‘‘3.75 percent’’ and inserting Britain, and Japan all offer financial State of the Union speech tomorrow ‘‘5 percent’’. incentives to companies to perform re- (2) EFFECTIVE DATE.—The amendments search and development within their evening, but I believe it to be one of made by this subsection shall apply to tax- the most important decisions he made borders which lowers the cost of R&D able years ending after the date of the enact- and gives companies both a competi- last year, and its ramifications will be ment of this Act. felt and be defined by greater security tive advantage and an incentive to Mr. ALLARD. Mr. President, I ask bring their resources and jobs to the for the American people for decades to unanimous consent Senator WARNER be come. marketplace where they can get the added as a cosponsor to the amend- most bang for the buck. It is my hope I commend him for that decision. ment. Mr. President, I suggest the absence that international research and devel- The PRESIDING OFFICER. Without opment investors will recognize that of a quorum. objection, it is so ordered. The PRESIDING OFFICER. The the United States is just such a place. Mr. ALLARD. Mr. President, I am The R&D tax credit provides an effec- clerk will call the roll. pleased to rise today to offer an amend- The legislative clerk proceeded to tive incentive for companies to create ment making the research and develop- valuable, skilled jobs. This is not just call the roll. ment tax credit permanent. I express Mr. ALLARD. Mr. President, I ask theory. The research and development my gratitude to Senator HATCH, the tax credit was originally enacted in unanimous consent the order for the distinguished ranking member of the quorum call be rescinded. 1981 and has been extended 11 times. Judiciary Committee. Senator HATCH From 1995 through 1998, the innova- The PRESIDING OFFICER. Without has been working on this issue for objection, it is so ordered. tion and economic growth in informa- years, and I am grateful for the oppor- tion technology alone was responsible f tunity to join him in this continuing for one-third of the real economic HOPE FOR CHILDREN ACT— effort on this essential piece of legisla- growth. Studies by the General Ac- Continued tion. I also express my thanks to Sen- counting Office, the Bureau of Labor ator GEORGE ALLEN who has distin- Mr. ALLARD. Mr. President, my un- Statistics, and others have documented guished himself as the chairman of the derstanding is that we are under reg- the impact the research and develop- High Tech Task Force. ment tax credit has on private research ular business. I am pleased to serve with Senator The PRESIDING OFFICER. The Sen- and development spending. One such ALLEN on the task force, and I look for- study found that every dollar of tax ator is correct. ward to continuing to work with him AMENDMENT NO. 2722 benefit spurs an additional dollar in as we address the many numerous tech- private research and development in- Mr. ALLARD. Mr. President, I ask nology issues that confront this Na- unanimous consent to lay aside the vestment. This is to say nothing of the tion. Both of our States take a very ac- major economic benefits associated pending amendment and call up tive role in high tech. We have many amendment No. 2722, which is the with increased productivity and effi- businesses in both of our States—Vir- ciency that new technologies and prod- Allard-Hatch-Allen amendment. ginia and Colorado—that rely on high The PRESIDING OFFICER. Without ucts bring. tech in order to grow. And the benefits don’t stop there. In- objection, it is so ordered. As a member of the Senate High Tech vestment in research and development The clerk will report the amendment. Task Force, I have been fortunate to The legislative clerk read as follows: has generated countless products and work with a number of my colleagues technological advances affecting every The Senator from Colorado [Mr. ALLARD] on an agenda that is both probusiness facet of American life. for himself, Mr. HATCH, and Mr. ALLEN, pro- and proconsumer. We have focused on poses an amendment numbered 2722 to the In 1866, American farmers could ex- language proposed to be stricken by amend- expanding the reach of Internet and pect to yield 11.6 bushels of wheat per ment No. 2698. broadband technologies, putting more acre. Then, about 34 years later, in computers in classrooms, more schools Mr. ALLARD. Mr. President, I ask 1900, the expected yield was 12.2 bush- online dealing with cyber security unanimous consent reading of the els, climbing to 16.5 bushels per acre in issues in general relating to e-com- amendment be dispensed with. 1950. Today, thanks to advances in pes- The PRESIDING OFFICER. Without merce, the spectrum, and intellectual ticides and crop genetics, that yield objection, it is so ordered. property issues. None of these issues can reach well over 43 bushels per acre. The amendment is as follows: has the power to make as immediate Medical patients today benefit from (Purpose: To amend the Internal Revenue an impact in the technology industry a variety of wonder drugs and medical Code of 1986 to permanently extend the re- as a permanent extension of the re- devices previously unimaginable. The search credit and to increase the rates of search and development tax credit. It hardware, software, and fiber that the alternative incremental credit) is altogether appropriate that we in- makes the Internet run, even the Inter- At the appropriate place, insert the fol- clude this language in any stimulus net itself, provide examples of what ag- lowing: bill to pass out of the Senate. gressive research and development can

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S169 do. The benefits of investment in re- There being no objection, the list was paying, high-skilled jobs in the United search and development in short makes ordered to be printed in the RECORD, as States; increase productivity in the U.S. al- our lives better. follows: most immediately; stimulate additional R&D spending in the United States, ranging Every American has benefited from ASSOCIATION MEMBERS OF R&D CREDIT from 1 to 2 additional dollars for every dollar the giant leap forward in technology. COALITION of foregone tax revenue; and lower U.S. pro- Our standard of living is higher. Our (Listing from NAM/R&D Workbook) duction costs and consumer prices. quality of life is greater. AeA (formerly American Electronics Asso- In times of uncertainty, companies are re- I realize that many of my colleagues ciation) luctant to invest in long term projects, and may ask why we must make this tax Aerospace Industries Association (AIA) therefore anything that provides certainty credit permanent rather than con- American Association of Engineering Soci- will make it that much easier to commit re- tinuing to extend it annually semi- eties sources now to hire people to pursue long annually. As a former small business- American Council on Education term research projects. The current eco- man, I know many of my colleagues American Institute of Aeronautics and As- nomic slowdown requires this kind of dra- can relate to this. A business must tronautics matic, effective action by the Congress. AeA (American Electronics Association) is budget, look forward, and plan in order American Institute of Chemical Engineers American Society of Civil Engineers the nation’s largest high-tech trade associa- to get the highest use of their hard- American Society of Engineering Education tion and is comprised of more than 3,500 earned dollars. This principle applies Engineering Deans Council small, medium and large high-tech compa- to all businesses, regardless of size, lo- Automotive Parts Rebuilders Association nies. Passage of an economic stimulus pack- cation, or the number of borders they Biotechnology Industry Organization age is very important to the high-tech indus- cross in doing business. Business Software Alliance try right now, and we hope the U.S. Senate The process of ongoing renewal year Computing Technology Industry Association will act quickly to approve a stimulus pack- to year means the research and devel- Electronic Industries Alliance age that includes a permanent R&D tax cred- opment tax credit offers less value to Federation of Materials Societies it extension. the businesses and research initiatives Information Technology Association of Sincerely, WILLIAM T. ARCHEY, we are seeking to support. Business America Information Technology Industry Council President and CEO. and technology leaders look at IPC, Association Connecting Electronics In- multiyear projects often over 10 years dustries INFORMATION TECHNOLOGY down the road. When we look around Medical Device Manufacturers Association INDUSTRY COUNCIL, today and take stock of the many National Association of Manufacturers Washington, DC, January 28, 2002. goods and services today that did not National Electric Manufacturers Association Hon. ORRIN G. HATCH, exist 10 years ago, I believe we can National Society of Professional Engineers Hon. WAYNE ALLARD, agree that this kind of planning must North American Die Casting Association U.S. Senate, Washington, DC. DEAR GENTLEMEN: The Information Tech- be encouraged. Pharmaceutical Research and Manufacturers of America nology Industry Council (ITI) wishes to ex- I mentioned my experience as a small Semiconductor Equipment and Materials press our strong support for your amendment businessman. As my colleagues know, I International (SEMI) to permanently extend the Research and De- ran my own veterinary hospital. Semiconductor Industry Association velopment (R&D) credit and to increase the Trained as a scientist, I continue to Software & Information Industry Associa- rates of the alternative incremental credit. keep up on the latest developments in tion (SIIA) We commend you for your leadership on such pharmaceuticals, treatment tech- Software Finance and Tax Executives Coun- a critical issue to the U.S. economy. niques, and chemistry. I would like to cil As the representative of the leading U.S. Steel Manufacturers Association providers of information technology (IT) make one thing very clear today: That products and services. ITI is extremely proud is, scientific development does not fit Technology Network Telecommunications Industry Association of the critical role our member companies in calendar or fiscal years. It is not cy- The Advanced Medical Technology Associa- have played in fueling the extraordinary clical or situational. Science is an tion (AdvaMed) growth in productivity and job creation over evolving, growing, expanding study. The Tax Council the last decade. Much of that growth was This vital process through which vir- U.S. Chamber of Commerce fueled by industry-funded investments in R&D. tually all human endeavor can be Mr. ALLARD. I also ask unanimous traced is one that should not be inhib- As you know, R&D is the lifeblood of the consent to print a number of letters, IT industry. It has proven instrumental in ited by regular policy debates when the from the American Electronics Asso- helping America remain at the forefront of result is so clear. ciation, the Information Technology technological development and innovation. Research and development is the cor- Industry Council, and the R&D Credit While we appreciate the fact that the credit nerstone of healthy industry and pro- Coalition, regarding the importance of has been extended many times over the vides solutions to problems we may not including this permanent R&D tax years, a permanent R&D tax credit will pro- even realize exist. Uncertainty can credit extension in the current stim- vide a more predictable environment for sus- taining our lead in cutting-edge technology. equate to less investment and under- ulus bill. mines the entire purpose of the re- The R&D credit has long enjoyed bipar- There being no objection, the mate- tisan support in both houses of Congress. We search and development tax credit. rial was ordered to be printed in the President Bush included permanent hope the Senate will once again demonstrate RECORD, as follows: its commitment to U.S. technology by vot- extension of the R&D tax credit in his AMERICAN ELECTRONICS ASSOCIATION, ing in favor of your amendment. initial tax relief plan. I was pleased to Washington, DC, January 28, 2002. Sincerely, see that a majority of my colleagues DEAR SENATOR: On behalf of the high-tech RHETT DAWSON, supported this credit by voting 62 to 38 industry, I write to express AeA’s strong sup- President. on the final tax package, which at that port for the Allard/Hatch/Allen amendment time included the permanent exten- which calls for a permanent extension of the R&D CREDIT COALITION, sion. It is my hope that we will be able research and development tax credit (R&D Washington, DC, January 28, 2002. to continue the momentum of last tax credit) along with a modest increase in Hon. WAYNE ALLARD, U.S. Senate, year’s vote and seize this opportunity the Alternative Incremental Research Credit (AIRC) rates. We believe that this amend- DEAR SENATOR ALLARD: On behalf of the to state, in no uncertain terms, that ment would provide businesses the certainty members of the R&D Credit Coalition, we the Senate recognizes the importance to invest in additional R&D and would stim- thank you for offering as an amendment to of this tax credit, the innovations it in- ulate the economy. Our industry is unified in the pending economic stimulus bill (S. 622) a spires, and the tangible impact it its support of such a measure. permanent extension of the research and ex- makes on the quality of life in Amer- Please vote in support of the Allard/Hatch/ perimentation tax credit (the ‘‘R&D credit’’) ica. Allen amendment (SA 2772.) This amendment with a modest increase in the Alternative In- A number of prominent trade organi- is identical to bipartisan legislation, S. 41, cremental Research Credit (AIRC) rates. Private-sector research is vital to our na- zations have organized the R&D credit sponsored by Senators Max Baucus and Orrin Hatch and which currently has 53 Senate co- tional security as well as to our economic re- coalition in an effort to support the sponsors. silience. In order to maximize the potential Congress in passing this legislation. I The many economic benefits of the R&D for new and continued U.S.-based research, it ask unanimous consent to print a list tax credit are well documented. A permanent is important that companies be able to rely of these organizations in the RECORD. R&D credit would: Create additional high- on the long-term availability of the R&D

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S170 CONGRESSIONAL RECORD — SENATE January 28, 2002 credit. This is especially true in periods of nificant things we can do as a Congress tension of the research credit. While we economic uncertainty, when it is particu- is to send to the President a research were debating that year’s version of larly difficult for companies to commit to and development tax credit that is per- the death tax repeal bill, Senator BAU- high cost, high-risk projects. manent, not one that will change every CUS and I offered an amendment to The R&D tax credit encourages companies to create more high-skilled, high-paying year. make the research credit permanent. jobs, as well as increased economic security I can understand the frustrations of The Senate passed the amendment and higher standards of living for American business people who come to me and with a vote of 98 to 1. Once again, workers. In addition, this credit enables have talked in town meetings and said: President Clinton vetoed the under- companies to provide increased jobs and sal- Look, if we only had some idea of how lying bill. aries for engineers, researchers and techni- long this research and development tax Again last May, as we debated the cians. Just as important, however, are the credit would last instead of periodi- 2001 tax cut bill, I offered an amend- additional jobs created in manufacturing, cally renewing it, we could lay out ment to extend permanently the re- administration and sales when research long-term plans for R&D. I agree. I search credit. That amendment was yields new products taken to market. think it is important to have a very By making the commitment to U.S. based withdrawn, but the provision was in- research permanent, Congress is in the successful program of research and de- cluded in a managers’ amendment that unique position to help stimulate invest- velopment in your company. You have was approved by the Senate. Unfortu- ments now in more long-term research to have a long-range plan in place, and nately again, however, the permanent projects in the U.S.-providing both an imme- the only way to do that is to have some research credit was dropped in con- diate boost to the economy and a stronger assurance from the Congress, the Presi- ference and the credit was not ex- foundation for future economic growth dent, and the Federal Government that tended. through productivity gains. We look forward the tax credits are going to be there to Thus, as it stands under present law, to working with you to see a permanent ex- use in putting together any research the research credit is scheduled to ex- tension of the R&D credit with a modest in- needs you may have in order to meet crease in the AIRC rates enacted into law pire on June 30, 2004. This is most un- this year. product development within your com- fortunate, Mr. President, because in Sincerely, pany. So this is an extremely impor- 2004 the Congress and, more impor- Bill Sample, Microsoft Corporation, tant piece of legislation. I think it is tantly, America’s business community Chairman, R&D Credit Coalition; an important issue. will once again have to go through the Donna Siss Gleason, The Boeing Com- The Senate should address it, and the complete rigmarole of on-again, off- pany, Vice Chair, R&D Credit Coali- sooner the better, during these times again uncertainty of an important tax tion; Kristin Paulson, United Tech- when our economy is not doing so well. nologies Corporation, Cochair, R&D provision. Temporary extensions are Even if our economy was doing well, poor tax policy. The ultimate loser in Credit Coalition, Government Affairs this is what we need to have in place in Committee; Karen Myers, EDS, Co- this game is not the Congress or even chair, R&D Credit Coalition, Govern- order to sustain economic growth. It the companies that engage in research, ment Affairs Committee; Caroline would be less likely we would get into but each American. That is because Graves Hurley, American Electronics economic downturns with this kind of every one of us is the direct beneficiary Association, Executive Secretary, R&D encouraging tax credit on a permanent of the research investments made by Credit Coalition. basis. I encourage my colleagues to the businesses of America. We benefit Mr. ALLARD. Mr. President, at one join me in voting for the permanent ex- from the higher economic growth and time or another, we have had various tension of the research and develop- increased productivity and the higher Members from the Senate state how ment tax credit. degree of global competitiveness that important it is to encourage research I yield the floor. The PRESIDING OFFICER. The Sen- increased research brings. and development in our country. In The research credit has been in the ator from Utah is recognized. fact, the majority leader himself, TOM Mr. HATCH. Mr. President, I thank Internal Revenue Code for more than 20 DASCHLE, on January 4, 2001, said: my colleague. I commend him for being years in one form or another. It has ex- We should act to make the research and willing to file this amendment today. I pired and been extended 10 times, Mr. development tax credit permanent; the soon- rise to speak in support of the amend- President. Those extensions have been er the better. ment of the distinguished Senator from as short as 6 months and as long as 5 And then majority leader TOM Colorado to extend permanently the re- years. There have even been periods DASCHLE, on January 4, 2001, stated: search credit. when the credit was allowed to expire . . . the R&D tax credit is one of the most This amendment we offer today is and then retroactively reestablish. On effective mechanisms to encourage innova- simple and straightforward. It would one occasion, the credit expired and tion, increase business investment, and keep extend permanently the credit for in- was reenacted prospectively, leaving a the economy growing. creasing research activities, commonly gap period where the credit was not Now, as I mentioned in my remarks, known as the research credit or the available. The one thing the credit has being a scientist and having been in R&D credit. This provision was an im- never been is permanent. That is a business for myself, I fully understand portant contributor to our robust eco- shame. the importance of research and bring- nomic growth of the last half of the This is significant because, as effec- ing those technologies to the market- 1990s. tive as the credit has been in providing place. Not only do the consumers ben- Let me explain why this amendment a strong incentive to companies to in- efit, but society in general and the is necessary. crease research activities, it has been whole world benefit. If we are going to In July 1999, the Senate voted to inherently limited in its effectiveness continue to be a leading competitive make the research credit permanent. because business leaders have never nation in the world, we need to con- Unfortunately, the House version of been able to count on the credit being tinue research and development. the 1999 tax bill included only a 5-year there on a long-term basis, and there- As members of the chamber of com- extension of the credit. The 5-year ex- fore their long-term planning can’t be merce in the town in which I practiced tension did prevail in the conference. entered into. veterinary medicine, we tried to at- Unfortunately, that bill was vetoed by Anyone who has been in business tract businesses that did a sizable President Clinton for reasons unrelated more than 10 minutes knows that plan- amount of research and development to the research credit itself. ning and budgeting—unlike what we do because we understood that, with re- However, in November of 1999, Con- in Congress—is a multiyear process. search and development, that company gress passed and President Clinton Anyone who has been involved in re- was likely to be with us for a long time signed the Ticket to Work and Work search knows that scientific enterprise because they were continually keeping Incentives Improvement Act, which in- does not fit neatly into calendar or fis- up with advancements in science and cluded a 5-year extension of the re- cal years. bringing that to the marketplace. search credit. Therefore, the credit was Our history of dealing with the re- So as we talk about what it is with extended to June 30, 2004. search credit—that is, allowing it to which we can stimulate the economy in In mid-2000, the Senate again had the run to the brink of expiration and America, I think one of the most sig- opportunity to vote on a permanent ex- bringing it back after it is dead with

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S171 retroactive extensions—results in not the research credit has been lost over Senator from Colorado in helping us to only very poor tax policy but is also the past 20 years because of the con- pass it on the economic stimulus bill. I very detrimental—and I would say stant uncertainty about its continuing do believe that almost everybody in highly so—to our research-intensive availability. This uncertainty has un- the Senate should vote for this amend- business entities and indeed the whole dermined the very purpose of the cred- ment. This makes sense. It creates jobs country. it. For the government and the Amer- and gives businesses an opportunity to It is time to get serious about our ican people to maximize the return on plan ahead. It literally keeps us at the commitment to a tax credit that is their investment in U.S.-based research cutting edge of technology and helps us widely viewed by economists and busi- and development, this credit must be to really be what we should be, in a ness leaders as a very effective provi- made permanent. And now is the time time such as this when we want to sion in creating economic growth and to do so. stimulate the economy. I don’t know of keeping this country on the leading I believe a permanent research credit many amendments that would do as edge of high technology in the world. A is one of the most important elements much as this particular amendment of 1998 study by Coopers and Lybrand dra- of our tax code because it is so tied in the Senator from Colorado and myself. matically illustrated the significant with the issues of economic growth and I praise him and thank him for his economic benefits provided by the re- our future prosperity. dedication in bringing this issue for- search credit. According to the study, According to Chairman Greenspan, ward. making the credit permanent would the Nation’s high productivity growth, I urge my colleagues to support this stimulate substantial amounts of addi- which played an instrumental role in amendment. tional R&D in the United States, in- our economic growth during the second Mr. President, I yield the floor and crease national productivity and eco- half of the 1990s, would likely not have suggest the absence of a quorum. I nomic growth almost immediately, and been possible without the innovations withhold. provide U.S. workers with higher of recent decades, especially those in The PRESIDING OFFICER. The Sen- wages. information technologies. The research ator from Colorado. The vast majority of the Members of credit is a key factor in keeping these Mr. ALLARD. I thank the Senator this body are on record in support of innovations coming. But a temporary from Utah for all his compliments. the permanent research credit. As I credit is inherently limited in its abil- This is a subject I know he has worked mentioned, only 18 months ago, 98 Sen- ity to do this. on for years. I appreciate what he is ators voted in favor of permanence. As I mentioned earlier, I am afraid to trying to do. But, while practically everyone says many of us are stuck in a mindset that I could not agree more with his state- they support a permanent research says that since the research credit can ment that one of the most important credit, it has become too easy for Con- just be taken care of later this year in things we can do to get the economy to gress to fall into its two-decade-long a tax extenders package, or when it grow is to make on a permanent basis practice of merely extending the credit gets closer to its 2004 expiration date, the research and development tax cred- for a year or two, or even five years, why bother about it now? it. and then not worrying about it until it I want to emphasize that another I am also involved in the Senate Re- is time to extend it again. temporary extension is not the issue publican High Tech Task Force. I These short-term extensions have oc- here. We can and probably will always would like to make a part of the curred ten times since 1981. Ten short- extend the credit when the time for its RECORD their policy agenda for the term extensions for a tax credit that 107th Congress where they talk about a most Members of this body strongly expiration comes. It will likely be on the less effective basis we have always Tax Code for the 21st century and list support. I am not sure we realize how a number of actions they believe we the lack of permanence of the credit done it, perhaps only for a few months, or it may be on a retroactive basis, and can take to encourage the high-tech in- damages its effectiveness. dustry to grow in America. They men- Research and development projects there may be a gap created, but we will tion, among those, making the re- cannot be turned on and off like a light probably keep extending it. The issue search and development tax credit per- switch. They typically take a number is whether or not we should magnify manent, in addition to a number of of years and may even last longer than the power of this credit by making it a decade. As our business leaders plan permanent. other provisions. I ask unanimous con- these projects, they need to look years This amendment is about long-term sent that be printed in the RECORD. There being no objection, the mate- ahead in making the projections and growth; it is about fostering innova- rial was ordered to be printed in the estimating the potential return on tion and keeping the innovation pipe- RECORD, as follows: their investment. Because the research line filled; and it is about sustaining credit is not permanent, and its exten- the productivity gains that have SENATE REPUBLICAN HIGH TECH TASK FORCE POLICY AGENDA FOR THE 107TH CONGRESS sion is not assured, the availability of brought us where we are today and the credit over the life of these projects that can help us stay prosperous in the Protecting Internet Privacy and E-Com- merce.—The Task Force believes market- is uncertain and is thus often not in- future as we deal with the entitlement challenges ahead. based solutions are the best way to balance cluded in the numbers. As a result, the legitimate privacy concerns with the need projected return on the investment is In conclusion, if we decide not to for flexible e-commerce. While certain types lower and some promising research make the research credit permanent, of medical and financial data may warrant projects are simply not funded. are we not limiting the potential special legislative protections, we are skep- With a permanent credit, these busi- growth of our economy? How can we tical that the Congress should rush to dele- ness planners would take the benefits expect the American economy to hold gate to government bureaucrats the task of of the credit into account, knowing the lead in the global economic race if developing effective mandates related to per- they would be there for all years in we allow other countries, some of sonal privacy. If legislation is considered, we which provide huge government direct believe that it should not discriminate which the reason is to be performed. against Internet transactions, should provide The result would be a lower projected subsidies, to offer stronger incentives a uniform federal standard for enforcement cost, leading to more research projects than we do? of privacy policies, and should limit the abil- being funded, which in turn would lead Making the credit permanent will ity to regulatory agencies to impose burden- to more benefits to the economy, to keep American business ahead of the some and cumbersome mandates. our productivity, and to each con- pack. It will speed economic growth. Promoting Education and Technology.— sumer. In fact, making the credit per- Innovations resulting from American Without a workforce fully capable in math, manent would start these benefits now research and development will con- science, and computing skills, our competi- and actually give an immediate boost tinue to improve the standard of living tiveness is at risk. Without a consumer base able to utilize the latest technological ad- to the amount of research performed, for every person in the U.S. and world- vances, our economic growth may wane. The even before the current credit expires wide. Task Force believes that a top priority in in 2004. I have been making this case year education should be development of policies There is little doubt that a signifi- after year, and I am so pleased to have both encouraging the use of technology in cant amount of the incentive effect of the leadership of our distinguished the classroom and using this technology to

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S172 CONGRESSIONAL RECORD — SENATE January 28, 2002 master basic math, science, and computer from the Senate Republican High Tech Members of the Task Force, Senators skills. Task Force dated Friday, June 29, 2001, Allen, Wayne Allard (CO), Robert Bennett Safeguarding Copyright in the Digital be printed in the RECORD. It talks (UT), Sam Brownback (KS), Conrad Burns Age.—With our economy dependent on cut- (MT), Orrin Hatch (UT), Jeff Sessions (AL), about, again, Senator SMITH’s effort in ting-edge software and our families enjoying Gordon Smith (OR) and John Warner (VA), music, movies, and television through new getting it attached to the Patients’ as well as Senators Mike Crapo (ID), Bill distribution models, protecting copyrighted Bill of Rights and reemphasizes the Frist (TN), Tim Hutchinson (AR), and Re- material is of paramount importance. The point we are trying to make today on publican Policy Committee Chairman Larry Task Force believes that the Congress should how important it is we provide a per- Craig (ID) today sent letters to Senate Fi- bolster efforts to protect copyrighted mate- manent extension of the research and nance Committee Chairman Charles Grass- rials from piracy and to facilitate legal dig- development tax credit. ley (R–IA) and Ranking Member Max Baucus ital distribution of copyrighted works. There being no objection, the mate- (D–MT) with their request. Deploying Broadband Technologies.—The rial was ordered to be printed in the ‘‘We believe the R&D tax credit is essential Task Force understands that high speed to the technology community,’’ the Senators Internet access has the power to transform RECORD, as follows: wrote. ‘‘It encourages investment in basic re- how we use the Internet. Encouraging tax HIGH TECH TASK FORCE SUPPORTS SMITH- search that over the long term can lead to and regulatory policies that foster rapid, ef- HATCH-ALLEN AMENDMENT TO PATIENTS the development of new, more cost-effective, ficient, and competitive deployment of BILL TO MAKE R&D TAX CREDIT PERMA- and more efficient technology products and broadband and other important technologies NENT services. Research and development is essen- to urban and rural areas will be crucial to WASHINGTON, DC.—Senate Republican High tial for long-term economic growth.’’ ensure our economic growth and techno- Tech Task Force Chairman Senator George The R&D tax credit was originally enacted logical competitiveness. Allen (VA) today pledged the endorsement of in 1981 and has been temporarily extended Enhancing Free Trade.—The Task Force the group of an amendment by Senators Gor- ten times. ‘‘Permanent extension is long believes that trading freely with other coun- don Smith (OR), Orrin Hatch (UT) and Sen- overdue,’’ the Senators maintained. ‘‘Yet be- tries has allowed our producers of tech- ator Allen to make the federal Research and cause it has never been made permanent, nology goods and services to lead the world Development (R&D) Tax Credit permanent. this vital tax credit offers business less value in technology innovation while significantly The Smith-Hatch-Allen amendment to the than it should because of its unpredict- raising our standard of living. We believe Patients’ Bill of Rights, currently being de- ability.’’ that a vital component of free trade is ensur- bated on the Senate floor, makes the R&D The Senators also noted that President ing enforcement of international trade tax credit permanent and increases the rates Bush included the permanent extension in agreements to guarantee that our businesses of the alternative incremental research and his budget, and they urged Finance Com- are not placed at a competitive disadvantage development tax credit as provided in S. 41, mittee members include this measure in the and that our intellectual property is not pi- Senator Hatch’s bill. Both Senators Smith tax relief package as ‘‘making the R&D tax rated or copied illegally. and Hatch are also High Tech Task Force credit permanent is essential to helping Protecting Internet Security and Com- members. maintain America’s technology lead in the bating Cyberterrorism.—The Task Force Chairman Allen said making the R&D tax world.’’ supports legislation and appropriations to credit permanent will help improve the qual- Permanent extension of the Research and protect the privacy of Internet users and to ity of medical care for all Americans. Development Tax Credit is a component of aid law enforcement in making sure the ‘‘Providing every possible incentive for the Task Force’s policy agenda, which was Internet does not become a haven for technological advancements and innovations announced March 1, 2001. cybercriminals. Our goals include enhancing will lead to better and less expensive medical MAY 7, 2001. deterrents to Internet piracy and counter- treatments and devices,’’ Chairman Allen Hon. CHARLES GRASSLEY, feiting of intellectual property and bol- said. ‘‘The R&D tax credit is crucial not only Chairman, Committee on Finance, Washington, stering international cooperation against to the field of medicine, but to the tech- DC. computer crimes. Also, our communications nology community at large. DEAR CHAIRMAN GRASSLEY: We respectfully ‘‘A permanent R&D Tax Credit credibly en- infrastructures remain vulnerable to request that you include permanent exten- courages investment in basic research that cyberattacks, and we must support executive sion of the research and experimentation over the long term can lead to the develop- branch efforts to bolster cooperation within (R&D) tax credit in the tax relief package ment of new, more cost-effective, and more and between Federal agencies and the pri- you will consider in your Committee shortly. efficient technology products and services. vate sector. As Republican Senators and members of Research and development is also essential Digital Decency.—The Task Force believes High Tech Task Force (HTTF), we believe for our long-term, competitive economic that the growth of the Internet does not the R&D tax credit is essential to the tech- growth,’’ have to mean a decline in cultural decency. nology community. It encourages invest- Chairman Allen also pointed to a study Advocating ‘‘Digital Decency’’ means using ment in basic research that over the long conducted by Coopers & Lybrand, which the bully pulpit to advocate responsible en- term can lead to the development of new, shows that workers in every State will ben- tertainment products, encouraging parents cheaper, and better technology products and efit from higher wages if the R&D credit is and children to turn their backs on music, services. Research and development is essen- made permanent. Payroll increases as a re- movies, and games advocating violence and tial for long-term economic growth. Innova- sult of gains in productivity stemming from discrimination, and encouraging better pri- tions in science and technology fueled the the credit are estimated to exceed $60 billion vate sector filters to keep the Internet expe- massive economic expansion we witnessed over the next 12 years. rience a healthy one. over the course of the 20th century. These Patent and Trademark Office Funding.— The R&D tax credit was original enacted in 1981 and has been temporarily extended ten advancements have improved the standard of The Task Force believes that the explosion living for nearly every American. Simply of technology patents has made it more nec- times. Permanent extension of the Research and Development Tax Credit is a component put, the research tax credit is an investment essary than ever to ensure that the PTO has in economic growth, new jobs, and important adequate funding through its own fee mecha- of the Task Force’s policy agenda, which was announced March 1, 2001. new products and processes. nisms, rather than siphoning off these fees As you know, the credit was originally en- for general government use. Mr. ALLARD. Mr. President, I also acted in 1981, and has been temporarily ex- A Tax Code for the 21st Century.—The ask unanimous consent that another tended ten times. Permanent extension is Task Force believes our tax code must be re- press release from the Senate Repub- long overdue. There is broad support among viewed and modernized to reflect current Republicans for the credit, and President business realities affecting technology indus- lican High Tech Task Force for Friday Bush included the credit in the $1.6 trillion tries. Issues which the Task Force believes June 29, 2001, be printed in the RECORD. tax relief plan. Yet because it has never been should be considered include making the re- There being no objection, the mate- made permanent, this vital tax credit offers search and development tax credit perma- rial was ordered to be printed in the business less value then it should. Business, nent, accelerating the depreciation schedules RECORD, as follows: unlike Congress, must plan and budget in a for technology equipment and encouraging HIGH TECH TASK FORCE MEMBERS URGE FI- multi-year process. Scientific enterprise capital formation for small technology busi- NANCE COMMITTEE TO MAKE R&D TAX does not fit neatly into calendar or fiscal nesses. CREDIT PERMANENT years. Research and development projects Keeping Government Out of Competition WASHINGTON, DC.—Members of the Senate typically take a number of years, and may With E-Commerce Businesses.—The Task Republican High Tech Task Force including even last longer than a decade. As our busi- Force believes that federal government agen- Chairman Senator George Allen (VA) are ness leaders plan these projects, they need to cies should not use taxpayer dollars to com- urging the Senate Finance Committee to in- know whether or not they can count on this pete with private businesses developing new clude permanent extension of the Research tax credit. The current uncertainty sur- e-commerce products and services. and Development (R&D) Tax Credit in the rounding the credit has induced businesses Mr. ALLARD. Mr. President, I ask tax relief package that they will soon con- to allocate significantly less to research unanimous consent that a news release sider. than they otherwise would if they knew the

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S173 tax credit would be available in future years. The assistant legislative clerk pro- Union’s academic performance that is This uncertainty undermines the entire pur- ceeded to call the roll. truly remarkable. The college, as a pose of the credit. Mr. REID. Mr. President, I ask unan- whole, boasts 14 Academic All Ohio We believe making the R&D tax credit per- manent is essential to helping maintain imous consent that the order for the Athletic Conference winners and three America’s technology lead in the world. We quorum call be rescinded. Academic All-Americans. The football thank you for your consideration. The PRESIDING OFFICER. Without team has graduated a near-perfect per- Sincerely, objection, it is so ordered. centage of players in the last 16 sea- George Allen, Larry E. Craig, Conrad f sons. I applaud the Purple Raider play- Burns, Tim Hutchinson, Gordon Smith, ers who exceed all expectations on the Wayne Allard, Jeff Sessions, Orrin MORNING BUSINESS gridiron, as well as in the classroom. Hatch, Michael Crapo, Robert F. Ben- Mr. REID. Mr. President, I ask unan- For the local residents of Alliance, nett, Sam Brownback, Bill Frist, John Warner. imous consent that the Senate now OH and the students of Mount Union, proceed to a period for morning busi- there is so much to be proud of. As Mr. ALLARD. Mr. President, I ask ness, with Senators permitted to speak they crowd into the oldest college foot- unanimous consent that a news release therein for a period not to exceed 5 ball stadium in Ohio every fall, they dated Tuesday, May 8, 2001, entitled minutes. are not only cheering for the heroes of ‘‘High Tech Task Force Members Urge The PRESIDING OFFICER. Without the Purple Raiders, but also for future Finance Committee to Make R&D Tax objection, it is so ordered. Credit Permanent,’’ which documents heroes, future leaders who will have ac- the work of this task force and the im- f quired the valuable experiences that come with a solid education and a de- portance they place in making perma- FARM STABILITY nent the research and development tax manding athletic routine. These expe- Mr. MILLER. Mr. President, our riences will aid them in making a posi- credit, be printed in the RECORD. There being no objection, the mate- farmers are hurting, and they are fac- tive impact years from now. rial was ordered to be printed in the ing an uncertain future. They des- Again, I congratulate head coach perately need the stability this farm RECORD, as follows: Larry Kehres and his Purple Raiders on bill will offer them. a perfect championship season. They REPUBLICANS WILL KEEP FIGHTING TO MAKE R&D CREDIT PERMANENT—HIGH TECH TASK Because we failed to act in Decem- are a shining example of true student- FORCE CHAIRMAN ALLEN PRAISES SENATOR ber, many bankers are balking at athletes, and I wish them the best of GORDON SMITH’S LEADERSHIP issuing loans to farmers. The bankers luck next fall.∑ WASHINGTON, DC.—Senate Republican High want a guarantee that there will be a f Tech Task Force Chairman Sen. George new farm bill this season, or, at the Allen (VA) today vowed to keep pushing for very least, a disaster relief package. GAINESVILLE, TX an amendment to make the Research and And our farmers cannot operate ∑ Mrs. HUTCHISON. Mr. President, I Development (R&D) Tax Credit permanent, without loans. Their livelihood depends rise today with tremendous pride for despite almost universal Democrat opposi- on getting that bank loan each season. the city of Gainesville, Texas. This city tion to the provision in a Senate vote. He deserves special recognition for being also praised the leadership of Sen. Gordon So, we’ve left them in limbo, anxiously Smith (OR) in sponsoring the amendment, awaiting our next move. the first city to establish The Medal of which was also sponsored by Sen. Orrin That is why we must pass this farm Honor Host City Program. The purpose Hatch (UT) and Sen. Allen. bill as soon as possible. of this unique program is to recognize Senate Democrats, led by Finance Com- Remember, the 1996 farm bill didn’t those legendary, humble heroes who, mittee Chairman Max Baucus (MT), defeated pass until April of that year, and it was through great personal sacrifice, have the provision 57–41. Only one Democrat preserved our freedoms. At the same joined 40 Senate Republicans in supporting still able to be implemented for that the Smith-Hatch-Allen amendment. Cospon- year’s growing season. We will be able time this program will pay tribute to sors of the amendment were Senators Wayne to do the same this year if we pass a the principles that the medal rep- Allard (CO), Robert Bennett (UT), Sam bill early this spring. resents—Duty, Honor, and Country. To Brownback (KS), Conrad Burns (MT), Larry I worked hard on the Agriculture this end, it will provide Medal of Honor Craig (ID), Mike Crapo (ID), John Ensign Committee to protect the interests of recipients a stipend to cover lodging, (NV), and Kay Bailey Hutchison (TX). Georgia and the Southeast. The bill we food, and fuel expenses while visiting ‘‘Senator Gordon Smith deserves com- the city of Gainesville. mendation for his leadership for the idea of came up with is good for Georgia. It a permanent R&D Tax Credit,’’ Chairman provides more assistance for peanuts The local Veterans of Foreign Wars Allen said. ‘‘Unfortunately, Democrats voted and cotton, and most Georgia agri- Post No. 1922, along with the leaders of almost universally to pull the plug on one of culture groups had displayed a rare the community, pioneered the project the top items on the technology commu- unity in rallying around it. and have seen it through from idea to nity’s agenda. We must pass this farm bill and get it implementation. While designed to ‘‘I pledge the support of the High Tech to the President as quickly as possible. honor living recipients of the nation’s Task Force in working with Senators Smith highest decoration for military valor, and Hatch to find any avenue to make the Our farmers and the rural areas they R&D Tax Credit a permanent part of our tax breathe life into cannot afford for us to it also was initiated with the intent of code. put it off any longer. exposing the citizens of Gainesville to ‘‘A permanent R&D Tax Credit brings cer- these role models of selfless service. f tainty and will spur more American invest- When visiting the city, these men of ment and more American jobs that can lead ADDITIONAL STATEMENTS uncommon valor will be invited to to the development of new, more cost-effec- share their experiences with students, tive, and more efficient technology products clubs, and local organizations. By pro- and medicines Research and development are MOUNT UNION FOOTBALL TEAM also essential for America’s long-term, com- viding youth the opportunity to hear, petitive economic growth.’’ ∑ Mr. DEWINE. Mr. President, I rise first-hand, these amazing tales of gal- Studies have shown that a permanent R&D today to congratulate the Mount Union lantry and the effect that these cir- tax credit would lead to higher wages for Purple Raiders football team, from Al- cumstances have had on the remainder workers and gains in productivity. liance, OH, on a number of outstanding of their lives, the principles of patriot- The R&D tax credit was originally enacted achievements. The Purple Raiders just in 1981 and has been temporarily extended ism and duty will be propagated ten times. Permanent extension of the Re- recently won the Division III National throughout the current generation and search and Development Tax Credit is a com- Championship for the fifth time in six beyond. It also gives civic groups and ponent of the Task Force’s policy agenda, years. Maintaining a perfect record of classes an opportunity to thank them which was announced March 1, 2001. 13 victories, Mount Union’s team has for everything that they have done for Mr. ALLARD. Mr. President, I do not the longest current winning streak of our country. see anybody seeking recognition, so I any NCAA football team, and has won This project has not only been for- suggest the absence of a quorum. 82 of the last 83 games. malized, but has already been put into The PRESIDING OFFICER. The While their execution of the split- action. The first two Medal of Honor clerk will call the roll. back offense is flawless, it is Mount recipients visited the city this past

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S174 CONGRESSIONAL RECORD — SENATE January 28, 2002 Veterans’ Day and the Congressional accompanying papers, reports, and doc- EC–5214. A communication from the Prin- Medal of Honor Society took the oppor- uments, which were referred as indi- cipal Deputy Associate Administrator of the tunity at its October annual reunion to cated: Environmental Protection Agency, transmit- announce the project to its members. ting, pursuant to law, the report of a rule en- EC–5205. A communication from the Direc- titled ‘‘Approval of Section 112(1) Authority Mr. President, while sacrifice, patri- tor of the Office of Integrated Analysis and for Hazardous Air Pollutants; City of Phila- otism, and a sense of duty have been a Forecasting, Energy Information Adminis- delphia; Department of Public Health Air foundation for our great nation for tration, Department of Energy, transmit- Management Services’’ (FRL7134–9) received over 200 years, the events of the past ting, pursuant to law, a report entitled ‘‘An- on January 25, 2002; to the Committee on En- nual Energy Outlook 2002’’; to the Com- five months have made it even more vironment and Public Works. mittee on Energy and Natural Resources. EC–5215. A communication from the Prin- appropriate to recognize these heroes EC–5206. A communication from the Ad- and provide them a singular oppor- cipal Deputy Associate Administrator of the ministrator of the Office of Management and Environmental Protection Agency, transmit- tunity to be the advocates of the price Budget, Executive Office of the President, ting, pursuant to law, the report of a rule en- of our freedom. Mayor Kenneth Kaden transmitting, pursuant to law, a report enti- titled ‘‘Interim Final Determination the is to be especially recognized for his tled ‘‘Making Sense of Regulation: 2001 Re- State has Corrected the Deficiencies in Cali- leadership in advancing this unique port to Congress on the Costs and Benefits of fornia, Yolo-Solano Air Quality Management project. I am humbly honored to recog- Federal Regulations and Unfunded Mandates District’’ (FRL7132–1) received on January on State, Local and Tribal Entities’’; to the 25, 2002; to the Committee on Environment nize The Medal of Honor Host City Pro- Committee on Governmental Affairs. gram, and I hope to see its success and Public Works. EC–5207. A communication from the Dep- EC–5216. A communication from the Prin- spawn similar programs throughout uty Associate Administrator of the Office of cipal Deputy Associate Administrator of the the Great State of Texas and the rest Acquisition Policy, Department of Defense, Environmental Protection Agency, transmit- of the Nation.∑ General Services Administration, National ting, pursuant to law, the report of a rule en- Aeronautics and Space Administration, f titled ‘‘Revision to the California State Im- transmitting, pursuant to law, the report of plementation Plan, Yolo-Solano Air Quality LOCAL LAW ENFORCEMENT ACT a rule entitled ‘‘Federal Acquisition Regula- Management District’’ (FRL7131–9) received OF 2001 tions; Federal Acquisition Circular 2001–03’’ on January 25, 2002; to the Committee on En- ∑ (FAC 2001–03) received on January 25, 2002; to vironment and Public Works. Mr. SMITH of Oregon. Mr. President, the Committee on Governmental Affairs. I rise today to speak about hate crimes EC–5217. A communication from the Attor- EC–5208. A communication from the Direc- ney, Research and Special Programs Admin- legislation I introduced with Senator tor of the Office of Management and Budget, istration, Department of Transportation, KENNEDY in March of this year. The Executive Office of the President, transmit- transmitting, pursuant to law, the report of Local Law Enforcement Act of 2001 ting, pursuant to P.L. 107–38, an appropria- a rule entitled ‘‘Pipeline Safety: Pipeline In- would add new categories to current tions report relative to the 2001 Emergency tegrity Management in High Consequence hate crimes legislation sending a sig- Supplemental Appropriations Act for Recov- Areas (Repair Criteria)’’ (RIN2137–AD61) re- ery from and Response to Terrorist Attacks ceived on January 25, 2002; to the Committee nal that violence of any kind is unac- on the United States; to the Committee on ceptable in our society. on Commerce, Science, and Transportation. the Budget. EC–5218. A communication from the Attor- I would like to describe a terrible EC–5209. A communication from the Direc- ney, Research and Special Programs Admin- crime that occurred October 31, 1993 in tor of the Office of Management and Budget, istration, Department of Transportation, Olympia, WA. In two separate inci- Executive Office of the President, transmit- transmitting, pursuant to law, the report of dents, men described as ‘‘skinheads’’ ting, pursuant to law, appropriations reports a rule entitled ‘‘Pipeline Safety: Pipeline In- attacked two groups of people because relative to P.L. 107–87, P.L. 107–96, P.L. 107– tegrity Management in High Consequence they were perceived to be gay. The as- 115, P.L. 107–116, and P.L. 107–117; to the Areas (Hazardous Liquid Operators with Less Committee on the Budget. than 500 Miles of Pipeline)’’ (RIN2137–AD49) sailants, Derek K. Jensen, 20, Samuel EC–5210. A communication from the Assist- M. Tomasello, 21, and a 16-year-old, received on January 25, 2002; to the Com- ant to the Federal Reserve Board, transmit- mittee on Environment and Public Works. were arrested in connection with the ting, pursuant to law, the report of a rule en- EC–5219. A communication from the Pro- assaults. titled ‘‘Amendments to the Capital Guide- gram Analyst, Federal Aviation Administra- I believe that Government’s first lines in Regulation H (Membership of State tion, Department of Transportation, trans- duty is to defend its citizens, to defend Banking Institutions in the Federal Reserve mitting, pursuant to law, the report of a rule them against the harms that come out System) and Regulation Y (Bank Holding entitled ‘‘Airworthiness Directives: of hate. The Local Law Enforcement Companies and Change in Bank Control) Re- Eurocopter France Model DC 120 Heli- lating to the Capital Treatment of Non- Enhancement Act of 2001 is now a sym- copters’’ ((RIN2120–AA64)(2002–0032)) received financial Equity Investments’’ (Doc. No. R– on January 25, 2002; to the Committee on bol that can become substance. I be- 1097) received on January 25, 2002; to the Commerce, Science, and Transportation. lieve that by passing this legislation, Committee on Banking, Housing, and Urban EC–5220. A communication from the Pro- we can change hearts and minds as Affairs. gram Analyst, Federal Aviation Administra- well.∑ EC–5211. A communication from the Direc- tion, Department of Transportation, trans- tor of the Office of Federal Housing Enter- f mitting, pursuant to law, the report of a rule prise Oversight, transmitting, pursuant to entitled ‘‘Airworthiness Directives: Enstrom MESSAGES FROM THE PRESIDENT law, the report of a rule entitled ‘‘Prompt Helicopters Corporation Model TH 28 and 480 Supervisory Response and Corrective Ac- Helicopters’’ ((RIN2120–AA64)(2002–0034)) re- Messagers from the President of the tion’’ (RIN2550–AA12) received on January 25, United States were communicated to ceived on January 25, 2002; to the Committee 2002; to the Committee on Banking, Housing, on Commerce, Science, and Transportation. the Senate by Mr. Williams, one of his and Urban Affairs. EC–5221. A communication from the Pro- secretaries. EC–5212. A communication from the Prin- gram Analyst, Federal Aviation Administra- f cipal Deputy Associate Administrator of the tion, Department of Transportation, trans- Environmental Protection Agency, transmit- mitting, pursuant to law, the report of a rule EXECUTIVE MESSAGES REFERRED ting, pursuant to law, the report of a rule en- entitled ‘‘Airworthiness Directives: Agusta As in executive session the President titled ‘‘Approval and Promulgation of State SpA Model A109C, A109E, and A109K2 Heli- Officer laid before the Senate messages Plans for Designated Facilities and Pollut- copters’’ ((RIN2120–AA64)(2002–0031)) received ants; State of Kansas, Missouri, and Ne- from the Presiding of the United States on January 25, 2002; to the Committee on braska’’ (FRL7134–7) received on January 25, Commerce, Science, and Transportation. submitting sundry nominations which 2002; to the Committee on Environment and EC–5222. A communication from the Pro- were referred to the appropriate com- Public Works. gram Analyst, Federal Aviation Administra- mittees. EC–5213. A communication from the Prin- tion, Department of Transportation, trans- (The nominations received today are cipal Deputy Associate Administrator of the mitting, pursuant to law, the report of a rule printed at the end of the Senate pro- Environmental Protection Agency, transmit- entitled ‘‘Airworthiness Directives: Gulf- ceedings.) ting, pursuant to law, the report of a rule en- stream Model GIV Series Airplanes’’ titled ‘‘Approval of Section 112(1) Authority ((RIN2120–AA64)(2002–0041)) received on Janu- f for Hazardous Air Pollutants and the Chem- ary 25, 2002; to the Committee on Commerce, EXECUTIVE AND OTHER ical Accident Prevention Provisions; Alle- Science, and Transportation. COMMUNICATIONS gheny County; Health Department’’ EC–5223. A communication from the Pro- (FRL7135–3) received on January 25, 2002; to gram Analyst, Federal Aviation Administra- The following communications were the Committee on Environment and Public tion, Department of Transportation, trans- laid before the Senate, together with Works. mitting, pursuant to law, the report of a rule

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S175 entitled ‘‘Airworthiness Directives: Airbus United States Coast Guard, transmitting, France Model AS 332C, L, L1, and L2 Heli- Model A319, A320, and A321 Series Airplanes’’ pursuant to law, the report of a rule entitled copters’’ ((RIN2120–AA64)(2002–0043)); to the ((RIN2120–AA64)(2002–0038)) received on Janu- ‘‘Mandatory Ship Reporting Systems’’ Committee on Commerce, Science, and ary 25, 2002; to the Committee on Commerce, ((RIN2115–AF82)(2002–0001)); to the Com- Transportation. Science, and Transportation. mittee on Commerce, Science, and Transpor- EC–5244. A communication from the Chief EC–5224. A communication from the Pro- tation. of Regulations and Administrative Law, gram Analyst, Federal Aviation Administra- EC–5234. A communication from the Chief United States Coast Guard, transmitting, tion, Department of Transportation, trans- of Regulations and Administrative Law, pursuant to law, the report of a rule entitled mitting, pursuant to law, the report of a rule United States Coast Guard, transmitting, ‘‘Safety/Security Zone Regulations; San entitled ‘‘Airworthiness Directives: CFC pursuant to law, the report of a rule entitled Juan, Puerto Rico’’ ((RIN2115–AA97)(2002– Company Model CFE738 1 1B Turbofan En- ‘‘Certification of Navigation Lights for 0008)); to the Committee on Commerce, gines’’ ((RIN2120–AA64)(2002–0037)) received Uninspected Commercial Vessels and Rec- Science, and Transportation. on January 25, 2002; to the Committee on reational Vessels’’ ((RIN2115–AF70)(2002– EC–5245. A communication from the Chief Commerce, Science, and Transportation. 0001)); to the Committee on Commerce, of Regulations and Administrative Law, EC–5225. A communication from the Pro- Science, and Transportation. United States Coast Guard, transmitting, gram Analyst, Federal Aviation Administra- EC–5235. A communication from the Chief pursuant to law, the report of a rule entitled tion, Department of Transportation, trans- of Regulations and Administrative Law, ‘‘Safety/Security Zone Regulations; Port of mitting, pursuant to law, the report of a rule United States Coast Guard, transmitting, Los Angeles and Catalina Island (COTP Los entitled ‘‘Airworthiness Directives: Short pursuant to law, the report of a rule entitled Angeles-Long Beach 01–011)’’ ((RIN2115– Brothers Model SD3 Series Airplanes’’ ‘‘Drawbridge Regulations: Annisquam River, AA97)(2002–0007)); to the Committee on Com- ((RIN2120–AA64)(2002–0030)) received on Janu- Blynman Canal, MA’’ ((RIN2115–AE47)(2001– merce, Science, and Transportation. ary 25, 2002; to the Committee on Commerce, 0104)); to the Committee on Commerce, EC–5246. A communication from the Under Science, and Transportation. Science, and Transportation. Secretary for Export Administration, De- EC–5226. A communication from the Pro- EC–5236. A communication from the Chief partment of Commerce, transmitting, pursu- gram Analyst, Federal Aviation Administra- of Regulations and Administrative Law, ant to law, a report concerning certain for- tion, Department of Transportation, trans- United States Coast Guard, transmitting, eign policy-based export controls on Liberia; mitting, pursuant to law, the report of a rule pursuant to law, the report of a rule entitled to the Committee on Banking, Housing, and entitled ‘‘Airworthiness Directives: Saab ‘‘Regatta Regulations: Chester River, Kent Urban Affairs. Model SAAB SF340A and SAAB 340B Series Island Narrows, Maryland’’ ((RIN2115– EC–5247. A communication from the Assist- Airplanes’’ ((RIN2120–AA64)(2002–0029)) re- AE46)(2002–0004)); to the Committee on Com- ant Secretary for Export Administration, ceived on January 25, 2002; to the Committee merce, Science, and Transportation. Bureau of Export Administration, Depart- on Commerce, Science, and Transportation. EC–5237. A communication from the Chief ment of Commerce, transmitting, pursuant EC–5227. A communication from the Pro- of Regulations and Administrative Law, to law, the report of a rule entitled ‘‘Entity gram Analyst, Federal Aviation Administra- United States Coast Guard, transmitting, List: Removal of Two Russian Entities’’ tion, Department of Transportation, trans- pursuant to law, the report of a rule entitled (RIN0694–AC40) received on January 25, 2002; mitting, pursuant to law, the report of a rule ‘‘Drawbridge Regulations: Beaufort Channel, to the Committee on Banking, Housing, and entitled ‘‘Airworthiness Directives: Pratt Beaufort, North Carolina’’ ((RIN2115– Urban Affairs. and Whitney PW4000 Series Turbofan En- AE47)(2002–0007)); to the Committee on Com- gines’’ ((RIN2120–AA64)(2002–0023)) received f merce, Science, and Transportation. on January 25, 2002; to the Committee on EC–5238. A communication from the Chief NOMINATION DISCHARGED Commerce, Science, and Transportation. EC–5228. A communication from the Pro- of Regulations and Administrative Law, Pursuant to a unanimous consent gram Analyst, Federal Aviation Administra- United States Coast Guard, transmitting, agreement of January 28, 2002, the tion, Department of Transportation, trans- pursuant to law, the report of a rule entitled Committee on Commerce, Science and mitting, pursuant to law, the report of a rule ‘‘Safety/Security Zone Regulations: Oak Bluffs Fireman’s Civic Association, Oak Transportation was discharged of the entitled ‘‘Airworthiness Directives: Boeing following nomination: Model 767 Series Airplanes’’ ((RIN2120– Bluffs, MA’’ ((RIN2115–AA97)(2001–0071)); to DEPARTMENT OF TRANSPORTATION AA64)(2002–0022)) received on January 25, the Committee on Commerce, Science, and 2002; to the Committee on Commerce, Transportation. John Magaw, of Maryland, to be Under Science, and Transportation. EC–5239. A communication from the Chief Secretary of Transportation for Security for EC–5229. A communication from the Pro- of Regulations and Administrative Law, a term of five years. gram Analyst, Federal Aviation Administra- United States Coast Guard, transmitting, f tion, Department of Transportation, trans- pursuant to law, the report of a rule entitled mitting, pursuant to law, the report of a rule ‘‘Regulated Navigation Areas; San Francisco INTRODUCTION OF BILLS AND entitled ‘‘Airworthiness Directives: Ham- Bay, California’’ ((RIN2115–AE84)(2002–0002)); JOINT RESOLUTIONS ilton Sundstrand Model 247F Propellers’’ to the Committee on Commerce, Science, The following bills and joint resolu- ((RIN2120–AA64)(2002–0021)) received on Janu- and Transportation. EC–5240. A communication from the Chief tions were introduced, read the first ary 25, 2002; to the Committee on Commerce, and second times by unanimous con- Science, and Transportation. of Regulations and Administrative Law, EC–5230. A communication from the Pro- United States Coast Guard, transmitting, sent, and referred as indicated: gram Analyst, Federal Aviation Administra- pursuant to law, the report of a rule entitled By Mr. BROWNBACK (for himself, Mr. tion, Department of Transportation, trans- ‘‘Safety/Security Zone Regulations: Port of GREGG, Mr. BENNETT, Mr. BOND, Mr. mitting, pursuant to law, the report of a rule Palm Beach, FL; Port Everglades, Fort Lau- BUNNING, Mr. DEWINE, Mr. ENSIGN, entitled ‘‘Airworthiness Directives: Boeing derdale , FL; Port of Miami, Miami, FL; and Mr. HELMS, Mr. HUTCHINSON, Mr. Model 747 Series Airplanes’’ ((RIN2120– Port of Key West, Key West, FL’’ ((RIN2115– INHOFE, Mr. KYL, Mr. SANTORUM, Mr. AA64)(2002–0019)) received on January 25, AA97)(2002–0009)); to the Committee on Com- SESSIONS, Mr. SHELBY, Mr. SMITH of 2002; to the Committee on Commerce, merce, Science, and Transportation. New Hampshire, Mr. VOINOVICH, and Science, and Transportation. EC–5241. A communication from the Chief Mr. HAGEL): EC–5231. A communication from the Chief of Regulations and Administrative Law, S. 1899. A bill to amend title 18, United of Regulations and Administrative Law, United States Coast Guard, transmitting, States Code, to prohibit human cloning; to United States Coast Guard, transmitting, pursuant to law, the report of a rule entitled the Committee on the Judiciary. pursuant to law, the report of a rule entitled ‘‘Safety/Security Zone Regulations; Festa By Mr. EDWARDS: ‘‘Regatta Regulations: Modification to Spe- Italiana 2001, Milwaukee Harbor, WI’’ S. 1900. A bill to protect against cial Local Regulation (SLR) for Seattle ((RIN2115–AA97)(2002–0011)); to the Com- cyberterrorism and cybercrime, and for Seafair Unlimited Hydroplane Race’’ mittee on Commerce, Science, and Transpor- other purposes; to the Committee on Com- ((RIN2115–AE46)(2002–0005)); to the Com- tation. merce, Science, and Transportation. mittee on Commerce, Science, and Transpor- EC–5242. A communication from the Chief By Mr. EDWARDS: tation. of Regulations and Administrative Law, S. 1901. A bill to authorize the National EC–5232. A communication from the Chief United States Coast Guard, transmitting, Science Foundation and the National Secu- of Regulations and Administrative Law, pursuant to law, the report of a rule entitled rity Agency to establish programs to in- United States Coast Guard, transmitting, ‘‘Drawbridge Regulations: Miami River, crease the number of qualified faculty teach- pursuant to law, the report of a rule entitled Miami, Dade County, FL’’ ((RIN2115– ing advanced courses conducting research in ‘‘Safety/Security Zone Regulations; Macy’s AE47)(2002–0006)); to the Committee on Com- the field of cybersecurity, and for other pur- July 4th Fireworks, East River, NY’’ merce, Science, and Transportation. poses; to the Committee on Health, Edu- ((RIN2115–AA97)(2002–0010)); to the Com- EC–5243. A communication from the Chief cation, Labor, and Pensions. mittee on Commerce, Science, and Transpor- of Regulations and Administrative Law, By Mr. BREAUX: tation. United States Coast Guard, transmitting, S. 1902. A bill to suspend temporarily the EC–5233. A communication from the Chief pursuant to law, the report of a rule entitled duty on railway passenger coaches of stain- of Regulations and Administrative Law, ‘‘Airworthiness Directives: Eurocopter less steel; to the Committee on Finance.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S176 CONGRESSIONAL RECORD — SENATE January 28, 2002 By Mr. KERRY (for himself, Ms. HAGEL) was added as a cosponsor of S. awaiting action in the House. Another SNOWE, Mr. LIEBERMAN, Mr. BENNETT, Res. 109, a resolution designating the bill, to tighten our border security, and Mr. BINGAMAN): second Sunday in the month of Decem- should reach the Senate floor soon. All S. 1903. A bill to amend the Internal Rev- enue Code of 1986 to allow certain small busi- ber as ‘‘National Children’s Memorial three should be enacted quickly. You nesses to defer payment of tax; to the Com- Day’’ and the last Friday in the month can be sure our enemies are not wait- mittee on Finance. of April as ‘‘Children’s Memorial Flag ing for us to act. f Day’’. One of the greatest challenges in the AMENDMENT NO. 2699 struggle for security is to prepare for ADDITIONAL COSPONSORS At the request of Mr. BUNNING, the the next attack, not just the last one. S. 1062 name of the Senator from Oklahoma We have seen how vicious thugs can de- At the request of Mr. DURBIN, the (Mr. INHOFE) was added as a cosponsor stroy innocent life with airplanes, how name of the Senator from Michigan of amendment No. 2699. they can terrorize ordinary people with (Mr. LEVIN) was added as a cosponsor of biological weapons. We are responding AMENDMENT NO. 2717 S. 1062, a bill to amend the Public to those threats. But what about At the request of Ms. COLLINS, the Health Service Act to promote organ threats whose awful consequences we names of the Senator from Utah (Mr. donation and facilitate interstate link- haven’t yet felt? BENNETT) and the Senator from Arkan- age and 24-hour access to State donor Today I want to talk about one of sas (Mr. HUTCHINSON) were added as co- registries, and for other purposes. those threats: the threat of sponsors of amendment No. 2717 pro- S. 1248 ‘‘cyberterrorism’’, an attack against posed to H.R. 622, a bill to amend the the computer networks upon which our At the request of Mr. KERRY, the Internal Revenue Code of 1986 to ex- name of the Senator from New Jersey safety and economy now depend. Com- pand the adoption credit, and for other puters have become a foundation of our (Mr. TORRICELLI) was added as a co- purposes. sponsor of S. 1248, a bill to establish a electricity, oil, gas, water, telephones, National Housing Trust Fund in the AMENDMENT NO. 2722 emergency services, and banks, not to Treasury of the United States to pro- At the request of Mr. ALLARD, the mention our national defense appa- vide for the development of decent, name of the Senator from Virginia (Mr. ratus. safe, and affordable, housing for low-in- WARNER) was added as a cosponsor of Computer networks have brought ex- come families, and for other purposes. amendment No. 2722. traordinary improvements in the way S. 1306 f we live and work. We communicate At the request of Mr. CRAIG, his name more often, more quickly, more cheap- STATEMENTS ON INTRODUCED ly. With the push of a button in a class- was added as a cosponsor of S. 1306, a BILLS AND JOINT RESOLUTIONS bill to amend the Internal Revenue room or a bedroom, our children can Code of 1986 to transfer all excise taxes By Mr. EDWARDS: get more information than most librar- imposed on alcohol fuels to the High- S. 1900. A bill to protect against ies have ever held. way Trust Fund, and for other pur- cyberterrorism and cybercrime, and for Yet there is a dark side to the inter- poses. other purposes; the Committee on net, a new set of dangers. Today, if you Commerce, Science, and Transpor- ask an expert quietly, he or she will S. 1469 tation. tell you that cyberspace is a very vul- At the request of Mr. REED, the name nerable place. Terrorists could cause of the Senator from New Jersey (Mr. By Mr. EDWARDS: terrible harm. They might be able to CORZINE) was added as a cosponsor of S. S. 1901. A bill to authorize the Na- stop all traffic on the internet. Shut 1469, a bill to amend the Head Start tional Science Foundation and the Na- down power for entire cities for ex- and Early Head Start programs to en- tional Security Agency to establish tended periods. Disrupt our phones. sure that children eligible to partici- programs to increase the number of Poison our water. Paralyze our emer- pate in those programs are identified qualified faculty teaching advanced gency services—police, firefighters, and treated for lead poisoning, and for courses conducting research in the ambulances. The list goes on. We now other purposes. field of cybersecurity, and for other live in a world where a terrorist can do S. 1566 purposes; to the Committee on Health, as much damage with a keyboard and a At the request of Mr. REID, the name Education, Labor, and Pensions. modem as with a gun or a bomb. of the Senator from Washington (Ms. Mr. EDWARDS. Mr. president, since Already, one hacker has broken into CANTWELL) was added as a cosponsor of the horrifying events of September 11, a computer-controlled waste manage- S. 1566, a bill to amend the Internal our country’s number one priority has ment system and caused millions of Revenue code of 1986 to modify and ex- been to secure our families against the gallons of raw sewage to spill into pand the credit for electricity produced scourge of terrorism. parks, rivers, and private property. from renewable resources and waste First, in our hearts, of course, are the You probably haven’t heard about this products, and for other purposes. men and women on the frontlines of attack because it occurred in Aus- S. 1607 the fight: the soldiers fighting for free- tralia. But imagine if terrorists At the request of Mr. ROCKEFELLER, dom half a world away; the firefighters launched calculated, coordinated at- the name of the Senator from North and police officers in New York; the tacks on America. Dakota (Mr. CONRAD) was added as a postal workers here in Washington. Our enemies are already targeting cosponsor of S. 1607, a bill to amend Those of us elected to serve in Wash- our networks. After September 11, a title XVIII of the Social Security Act ington have a special responsibility to Pakistani group hacked into two gov- to provide coverage of remote moni- protect our security. To discharge that ernment web services, including one at toring services under the medicare pro- duty, I have been working with my col- the Department of Defense, and de- gram. leagues here in the Senate. We have clared a ‘‘cyber jihad’’ against the S. 1832 made a great deal of progress, but United States. Another series of at- At the request of Mrs. LINCOLN, the there’s a lot more work to do. tacks, known as ‘‘Moonlight Maze,’’ as- name of the Senator from Massachu- After a long debate, Congress passed saulted the Pentagon, Department of setts (Mr. KERRY) was added as a co- and the President signed important Energy, and NASA, and obtained vast sponsor of S. 1832, a bill to amend the legislation, based partly on a bill I in- quantities of technical defense re- Internal Revenue Code of 1986 to mod- troduced, to tighten security in our search. To date, we can be thankful ify the credit for the production of airports. But we have to do more. that these attacks have not been ter- electricity from renewable resources to There are several bills that I have ribly sophisticated. But that could include production of energy from agri- helped author that are working their change soon. As the Defense Science cultural and animal waste. way through Congress. Two of these Board recently stated, the U.S. will S. RES. 109 bills, to tighten security at seaports eventually be attached ‘‘by a sophisti- At the request of Mr. REID, the name and to protect against bioterrorism, cated adversary using an effective of the Senator from Nebraska (Mr. have already passed the Senate and are array of information warfare tools and

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S177 techniques. Two choices are available: versities do not have sufficient back- how government could condition adapt before the attack or afterward.’’ ground to properly train students.’’ grants and contracts on the adoption of In addition, cybercrime is already a As a whole, the challenge of cyberse- cybersecurity best practices. The billion-dollar drain on our economy, a curity is not unlike the challenge of a President is authorized to implement drain growing larger each year. In 1955, terrible disease like cancer. First, we recommendations from that study. one survey reported that losses from have to encourage everyone to do what The Cyberterrorism Preparedness FBI-reported computer crime had al- they can to reduce the risk of disease— Act will address the first goal of cyber- ready reached $2 billion. Last year, the don’t smoke, eat right, exercise. That security—making sure we’re taking the ‘‘ILOVEYOU’’ virus alone caused $8.7 is what cybersecurity ‘‘best practices’’ steps we already know to improve our billion in damage worldwide, much of like changing passwords are all about. security. The second bill I am intro- it here. Cyberattacks have shut down Second, we have to make sure we have ducing today—the Cybersecurity Re- major web sites like Yahoo! and eBay, got top-notch scientists working to search and Education Act—focuses on not to mention the FBI. According to a find new medicines to prevent and fight our second task: ‘‘training the train- recent survey, 85 percent of large cor- the disease. And that is why we need ers’’ and increasing the number of re- porations and government agencies de- more cyber teachers and researchers. searchers, teachers, and workers com- tected computer security breaches over To tackle these two challenges, I’m mitted to cybersecurity. the prior 12 months. Two thirds suf- proud today to introduce two new bills First, the bill establishes a Cyberse- fered financial losses as a result. that will support an intensive, $400 mil- curity Graduate Fellowship Program So the danger is clear, and the only lion cybersecurity effort over the next at the National Science Foundation. question is how we address it. I think five years. The first bill is called the Individuals selected to participate in we need to address it in many ways. Cyberterrorism Preparedness Act of the program will receive a loan that Today I want to focus on just two that 2002. covers the full tuition and fees as well are especially critical. That bill’s first step is to establish a as a living stipend for 4 years of doc- The first is to encourage computer new, nonprofit, nongovernment, con- toral study. Upon graduation, these users to take proven measures to pro- sortium of academic and private sector loans will be forgiven at 20 percent per tect themselves. In the industry, these experts to lay out a clear set of ‘‘best year for each year that the individual proven measures are known as ‘‘best practices’’ that protect against teaches at a college or university. practices’’—steps like using cus- cyberattack. The White House Office of After only 5 years of teaching, the en- tomized passwords, not the ones that Science and Technology Policy, the In- tire loan will be paid off. That way, we come with software, or promptly in- stitute for Defense Analyses, and the can ensure that the money we invest in stalling known ‘‘patches’’ to keep in- President’s Committee of Advisors on these promising young scientists will truders out. Science and Technology have all rec- be used to train others interested in The National Academy of Sciences ommended a new, nonprofit cybersecu- cybersecurity. recently reported that cybersecurity rity consortium. Such a consortium today is far worse than what known can work closely with the private sec- Second, my bill also establishes a best practices can provide. As a result, tor, unfettered by bureaucracy, in a competitive sabbatical for Distin- viruses have shut down tens of thou- way that all the country can see and guished Faculty in Cybersecurity. sands of machines even after patches to learn from. Under the program, a qualified faculty block them were widely available. Be- The goals of the consortium are sim- member will receive a stipend to spend cause the password protections on ple: first, the establishment of ‘‘best a year working and researching at the some systems are so weak, intruders practices’’ that are tailored to different Department of Defense, a university have taken the ‘‘routers’’ that control computer systems and needs; second, specializing in cybersecurity, or some Internet traffic hostage. And the gov- the widest possible dissemination of other appropriate facility. Universities ernment is as guilty as anyone. Ac- those practices; and third, long-term, sending faculty on sabbatical will re- cording to the report card issued by a multi-disciplinary research on cyberse- ceive funding to hire a temporary re- member of the House of Representa- curity-research that isn’t occurring placement instructor. In addition, tives, most government agencies rate now. when the faculty member returns, the between a ‘‘D’’ and an ‘‘F’’ on cyberse- The second part of the university will get a generous grant to curity. Improving our security by im- Cyberterrorism Preparedness Act will enhance its cybersecurity infrastruc- plementing existing best practices is implement ‘‘best practices’’ for govern- ture needs. For example, the university our first big task. ment systems. The government has a could purchase advanced computing Our second challenge is to train more duty to lead by example, something we equipment and hire graduate research researchers, teachers, and workers to aren’t doing right now. And so, within assistants. Participants in this pro- fight cyberthreats. Today the private 6 months after this Act passed, the Na- gram will have a unique opportunity to sector engages in some short-term tional Institute of Standards and Tech- engage in cutting-edge research with R&D on cybersecurity. But broader re- nology would immediately begin the some of the best minds in the country. search and knowledge needs aren’t process of implementing best practices When they return to their schools, being met. In addition, our workforce for government agencies, beginning these faculty will be even better in cybersecurity is woefully inad- with small-scale tests and concluding equipped to advance the state of cyber- equate, especially in academia. Each with government-wide adoption of the security education. year, American universities award recommended best practices. Third, this bill will create a Cyberse- Ph.D.’s in computer science to about The last part of my bill will assess curity Awareness, Training, and Edu- one thousand people each year. But the issue of best practices for the pri- cation Program at the National Secu- less than one-half of one-percent spe- vate sector. While the bill doesn’t im- rity Agency. NSA has a strong history cialize in cybersecurity, and fewer still pose new mandates beyond the govern- of supporting cybersecurity education, go on to train others in the discipline. ment, it does require careful consider- as exemplified through initiatives such As Dr. Bill Chu, Chairman of the Soft- ation of how to encourage the widest as the Centers of Excellence program ware and Information Systems Depart- possible use of known best practices. and the National Colloquium for Infor- ment at the University of North Caro- There’s a particular focus on entities mation Systems Security Education. lina at Charlotte and one of the coun- that do business with the Federal Gov- The program I propose would build on try’s leading experts on cybersecurity ernment as grantees or contractors. NSA’s expertise and would enable the puts it: ‘‘The weakest link . . . is the Government agencies should not be ex- agency to make grants to universities lack of qualified information security posed to security vulnerabilities in the specializing in cybersecurity. The professionals. The majority of informa- products supplied by these companies. grants could be used for projects like tion technology professionals in this And Federal dollars should not be flow- teaching basic computer security to K– country have not been trained in the ing to firms that expose America to 12 teachers, or for the development of a basics of information security. Infor- cyberterrorism. So the new consortium ‘‘virtual university.’’ Students who mation technology faculty in most uni- would be required to study whether and don’t

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S178 CONGRESSIONAL RECORD — SENATE January 28, 2002 have access to nearby course offerings (c) APPLICATION.—Any entity seeking a any update of such recommendations under would then be able to take cybersecu- grant under this section shall submit to the subparagraph (B), the grantee shall— rity classes online. National Institute of Standards and Tech- (i) review the most current cybersecurity All of these programs are critical in nology an application therefor, in such form best practices identified by the National In- stitute of Standards and Technology under our fight against cyberterrorism. A and containing such information as the Na- tional Institute for Standards and Tech- section 3(a); and strong and vibrant academic commu- nology shall require. (ii) consult with— nity is essential for building the (d) SELECTION OF GRANTEE.—The entity (I) the entities carrying out research and trained workforce of tomorrow. We awarded a grant under this section shall be development under paragraph (1)(A); must be committed to funding long- selected after full and open competition (II) entities employing cybersecurity best term research. And we must vigilantly among qualifying nongovernmental entities. practices; and maintain basic cybersecurity protec- (e) DISPERSAL OF GRANT AMOUNT.— (III) a wide range of academic, private sec- tor, and public entities. tions in government, while promoting Amounts available for the grant under this section pursuant to the authorization of ap- (D) DISSEMINATION.—The grantee shall sub- them in the private sector. mit the report under subparagraph (A), and When it comes to the threat of a so- propriations in section 5 shall be dispersed on a fiscal year basis over the five fiscal any update of the report under paragraph phisticated, coordinated cyberterrorist years beginning with fiscal year 2003. (B), to the bodies and officials specified in paragraph (5), and shall widely disseminate attack, the question most likely is not (f) CONSULTATION.—In carrying out activi- whether such an attack will come. The ties under this section, including selecting the report, and any such update, among gov- question is when. And so we must be an entity for the award of a grant, dispersing ernment (including State and local govern- prepared to fight against a grant amounts, and overseeing activities of ment), private, and academic entities. (4) ACTIVITIES RELATING TO WIDESPREAD USE ‘‘cyberjihad,’’ and we must be prepared the entity receiving the grant, the National OF CYBERSECURITY BEST PRACTICES.— Institute of Standards and Technology— to win. (A) IN GENERAL.—Not later than two years (1) shall consult with an existing inter- I ask unanimous consent that the after the selection of the grantee under this agency entity, or new interagency entity, text of my two bills be printed in the section, the grantee shall submit to the bod- consisting of the elements of the Federal ies and officials specified in paragraph (5) a RECORD. Government having a substantial interest report containing— There being no objection, the bills and expertise in cybersecurity and des- (i) an assessment of the advisability of re- were ordered to be printed in the ignated by the President for purposes of this quiring the contractors and grantees of the RECORD, as follows: Act; and Federal Government to use appropriate cy- S. 1900 (2) may consult separately with any such bersecurity best practices; and Be it enacted by the Senate and House of Rep- element of the Federal Government. (ii) recommendations for sound means to resentatives of the United States of America in (g) PROGRAM USING GRANT AMOUNT.— achieve widespread use of appropriate cyber- Congress assembled, (1) IN GENERAL.—The entity awarded a security best practices that have proven ef- SECTION 1. SHORT TITLE. grant under this section shall carry out a na- fective. This Act may be cited as the tional program for the purpose of protecting (B) REPORT ELEMENTS.—The report under ‘‘Cyberterrorism Preparedness Act of 2002’’. the information infrastructure of the United subparagraph (A) shall set forth— SEC. 2. GRANT FOR PROGRAM FOR PROTECTION States against disruption. The program shall (i) whether or not the requirement de- OF INFORMATION INFRASTRUCTURE consist of— scribed in subparagraph (A)(i) is advisable, AGAINST DISRUPTION. (A) multi-disciplinary research and devel- including whether the requirement would (a) IN GENERAL.—The National Institute of opment to identify appropriate cybersecu- impose undue or inappropriate burdens, or Standards and Technology shall, using rity best practices, to measure the effective- other inefficiencies, on contractors and amounts authorized to be appropriated by ness of cybersecurity best practices that are grantees of the Federal Government; section 5, award a grant to a qualifying non- put into use, and to identify sound means to (ii) if the requirement is determined advis- governmental entity for purposes of a pro- achieve widespread use of appropriate cyber- able— gram to support the development of appro- security best practices that have proven ef- (I) whether, and to what extent, the re- priate cybersecurity best practices, support fective; quirement should be subject to exceptions or long-term cybersecurity research and devel- (B) multi-disciplinary, long-term, or high- limitations for particular contractors or opment, and perform functions relating to risk research and development (including as- grantees, including the types of contractors such activities. The purpose of the program sociated human resource development) to or grantees and the nature of the exceptions shall be to provide protection for the infor- improve cybersecurity; and or limitations; and mation infrastructure of the United States (C) the activities required under para- (II) which cybersecurity best practices against terrorist or other disruption or at- graphs (3) and (4). should be covered by the requirement and tack or other unwarranted intrusion. (2) CONDUCT OF RESEARCH AND DEVELOP- with what, if any, exceptions or limitations; (b) QUALIFYING NONGOVERNMENTAL ENTI- MENT.— and TY.—For purposes of this section, a quali- (A) IN GENERAL.—Except as provided in (iii) any other matters that the grantee fying nongovernmental entity is any entity subparagraph (B), research and development considers appropriate. that— under subparagraphs (A) and (B) of para- (5) SPECIFIED BODIES AND OFFICIALS.—The (1) is a nonprofit, nongovernmental consor- graph (1) shall be carried out using funds and bodies and officials specified in this para- tium composed of at least three academic other support provided by the grantee to en- graph are as follows: centers of expertise in cybersecurity and at tities selected by the grantee after full and (A) The appropriate committees of Con- least three private sector centers of exper- open competition among entities determined gress. tise in cybersecurity; by the grantee to be qualified to carry out (B) The President. (2) has a board of directors of at least 12 such research and development. (C) The Director of the Office of Manage- members who include senior administrators (B) CONDUCT BY GRANTEE.—The grantee ment and Budget. of academic centers of expertise in cyberse- may carry out research and development re- (D) The National Institute of Standards curity and senior managers of private sector ferred to in subparagraph (A) in any fiscal and Technology. centers of expertise in cybersecurity and of year using not more than 15 percent of the (E) The interagency entity designated by whom not more than one third are affiliated amount dispersed to the grantee under this the President under subsection (f)(1). with the centers comprising the consortium; Act in such fiscal year by the National Insti- (h) GRANT ADMINISTRATION.— (3) is operated by individuals from aca- tute of Standards and Technology. (1) USE OF GRANT COMPETITION AND MANAGE- demia, the private sector, or both who (3) RECOMMENDATIONS ON CYBERSECURITY MENT SYSTEMS.—The National Institute of have— BEST PRACTICES.— Standards and Technology may permit the (A) a demonstrated expertise in cybersecu- (A) RECOMMENDATIONS.—Not later than 18 entity awarded the grant under this section rity; and months after the selection of the grantee to utilize the grants competition system and (B) the capacity to carry out the program under this section, the grantee shall prepare grants management system of the National required under subsection (g); a report containing recommendations for ap- Institute of Standards and Technology for (4) has in place a set of rules to ensure that propriate cybersecurity best practices. purposes of the efficient administration of conflicts of interest involving officers, em- (B) UPDATES.—The grantee shall update activities by the entity under subsection (g). ployees, and members of the board of direc- the recommendations made under subpara- (2) RULES.—The National Institute of tors of the entity do not undermine the ac- graph (A) not less often than once every six Standards and Technology shall establish tivities of the entity; months, and may update any portion of such any rules and procedures that the National (5) has developed a detailed plan for the recommendations more frequently if the Institute of Standards and Technology con- program required under subsection (g); and grantee determines that circumstances so re- siders appropriate to further the purposes of (6) meets any other requirements estab- quire. this section. Such rules may include provi- lished by the National Institute of Standards (C) CONSIDERATIONS.—In making rec- sions relating to the ownership of any intel- and Technology for purposes of this Act. ommendations under subparagraph (A), and lectual property created by the entity

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S179 awarded the grant under this section or Federal Government under the demonstra- SECTION 1. SHORT TITLE. funded by the entity under subsection (g). tion projects. This Act may be cited as the ‘‘Cybersecu- (i) SUPPLEMENT NOT SUPPLANT.—The Na- (D) A description of a security-enhancing rity Research and Education Act of 2002’’. tional Institute of Standards and Technology missions-comparable, cost-effective pro- shall take appropriate actions to ensure that gram, to the extent such program is feasible, SEC. 2. FINDINGS. activities under this section supplement, for the adoption of appropriate cybersecurity rather than supplant, other current govern- best practices government-wide. Congress finds that— mental and nongovernmental efforts to pro- (E) Any other matters that the President (1) critical elements of the Nation’s basic tect the information infrastructure of the considers appropriate. economic and physical infrastructure rely on United States. (c) ADOPTION OF CYBERSECURITY BEST information technology for effective func- SEC. 3. APPROPRIATE CYBERSECURITY BEST PRACTICES GOVERNMENT-WIDE.—The Presi- tioning; PRACTICES FOR THE FEDERAL GOV- dent shall implement a program for the (2) increased reliance on technology has ERNMENT. adoption of appropriate cybersecurity best left our Nation vulnerable to the threat of (a) NIST RECOMMENDATIONS.— practices government-wide commencing not cyberterrorism; (1) IN GENERAL.—Not later than 180 days later than six months after the date of the (3) long-term research on practices, meth- after the date of the enactment of this Act, report. ods, and technologies that will help ensure the National Institute of Standards and (d) INCORPORATION OF RECOMMENDATIONS.— the safety of our information infrastructure Technology shall submit to the bodies and If during the development or implementa- remains woefully inadequate; officials specified in subsection (e) a report tion of the program under subsection (c) the (4) there is a critical shortage of faculty at that— President receives any recommendations institutions of higher education who spe- (A) identifies appropriate cybersecurity under paragraph (3) or (4) of section 3(g), the best practices that could reasonably be President shall modify the program in order cialize in disciplines related to cybersecu- adopted by the departments and agencies of to take into account such recommendations. rity; the Federal Government over the 24-month (e) SPECIFIED BODIES AND OFFICIALS.—The (5) a vigorous scholarly community in period beginning on the date of the report; bodies and officials specified in this sub- fields related to cybersecurity is necessary and section are as follows: to help conduct research and disseminate (B) sets forth proposed demonstration (1) The appropriate committees of Con- knowledge about the practical application of projects for the adoption of such best prac- gress. the community’s findings; and tices by various departments and agencies of (2) The President. (6) universities in the United States award the Federal Government beginning 90 days (3) The Director of the Office of Manage- the Ph.D. degree in computer sciences to ap- after the date of the report. ment and Budget. proximately 1,000 individuals each year, but (2) UPDATES.—The National Institute of (4) The interagency entity designated by of those awarded this degree, less than 0.3 Standards and Technology may submit to the President under section 3(f)(1). percent specialize in cybersecurity and still the bodies and officials specified in sub- SEC. 4. DEFINITIONS. fewer become employed in faculty positions section (e) any updates of the report under In this Act: at institutions of higher education. paragraph (1) that the National Institute of (1) APPROPRIATE COMMITTEES OF CON- Standards and Technology consider appro- GRESS.—The term ‘‘appropriate committees SEC. 3. DEFINITIONS. priate due to changes in circumstances. of Congress’’ means— In this Act: (3) CONSULTATION.—In preparing the report (A) the Committee on Commerce, Science, (1) CYBERSECURITY.—The term ‘‘cybersecu- under paragraph (1), and any updates of the and Transportation of the Senate; and rity’’ means information assurance, includ- report under paragraph (2), the National In- (B) the Committee on Science of the House ing scientific, technical, management, or stitute of Standards and Technology shall of Representatives. any other relevant disciplines required to en- (2) CYBERSECURITY.—The term ‘‘cybersecu- consult with departments and agencies of sure computer and network security, includ- the Federal Government having an interest rity’’ means information assurance, includ- ing, but not limited to, a discipline related in the report and such updates, and with aca- ing information security, information tech- to the following functions: demic centers of expertise in cybersecurity nology disaster recovery, and information (A) Secure System and network adminis- and private sector centers of expertise in cy- privacy. tration and operations. bersecurity. (3) CYBERSECURITY BEST PRACTICE.—The (b) DEMONSTRATION PROJECTS FOR IMPLE- term ‘‘cybersecurity best practice’’ means a (B) Systems security engineering. MENTATION OF RECOMMENDATIONS.— computer hardware or software configura- (C) Information assurance systems and (1) IN GENERAL.—Commencing not later tion, information system design, operational product acquisition. than 90 days after receipt of the report under procedure, or measure, structure, or method (D) Cryptography. subsection (a), the President shall carry out that most effectively protects computer (E) Threat and vulnerability assessment, the demonstration projects set forth in the hardware, software, networks, or network including risk management. report, including any modification of any elements against an attack that would cause (F) Web security. such demonstration project that the Presi- harm through the installation of unauthor- (G) Operations of computer emergency re- dent considers appropriate. ized computer software, saturation of net- sponse teams. (2) UPDATES.—If the National Institute of work traffic, alteration of data, disclosure of (H) Cybersecurity training, education, and Standards and Technology updates under confidential information, or other means. management. subsection (a)(2) any recommendation under (4) APPROPRIATE CYBERSECURITY BEST PRAC- (I) Computer forensics. subsection (a)(1)(A) that is relevant to a TICE.—The term ‘‘appropriate cybersecurity (J) Defensive information operations. demonstration project under paragraph (1), best practice’’ means a cybersecurity best (2) CYBERSECURITY INFRASTRUCTURE.—The the President shall modify the demonstra- practice that— term ‘‘cybersecurity infrastructure’’ in- tion project to take into account such up- (A) permits, as needed, customization or cludes— date. expansion for the computer hardware, soft- (A) equipment that is integral to research (3) REPORT.—Not later than nine months ware, network, or network element to which and education capabilities in cybersecurity, after commencement of the demonstration the best practice applies; including, but not limited to— projects under this subsection, the President (B) takes into account the need for secu- (i) encryption devices; shall submit to the appropriate committees rity protection that balances— (ii) network switches; of Congress a report on the demonstration (i) the risk and magnitude of harm threat- (iii) routers; projects. The report shall set forth the fol- ened by potential attack; and (iv) firewalls; lowing: (ii) the cost of imposing security protec- (v) wireless networking gear; (A) An assessment of the extent to which tion; and (vi) protocol analyzers; the adoption of appropriate cybersecurity (C) takes into account the rapidly chang- best practices by departments and agencies ing nature of computer technology. (vii) file servers; (viii) workstations; of the Federal Government under the dem- SEC. 5. AUTHORIZATION OF APPROPRIATIONS. onstration projects has improved cybersecu- There is hereby authorized to be appro- (ix) biometric tools; and rity at such departments and agencies. priated for the National Institute of Stand- (x) computers; and (B) An assessment whether or not the ards and Technology for purposes of activi- (B) technology support staff (including adoption of appropriate cybersecurity best ties under this Act, amounts as follows: graduate students) that is integral to re- practices by departments and agencies of the (1) For fiscal year 2003, $70,000,000. search and education capabilities in cyberse- Federal Government under the demonstra- (2) For each of the fiscal years 2004 through curity. tion projects has affected the capability of 2007, such sums as may be necessary. (3) DIRECTOR.—The term ‘‘Director’’ means such departments and agencies to carry out the Director of the National Science Founda- their missions. S. 1901 tion. (C) A description of the cost of the adop- Be it enacted by the Senate and House of Rep- (4) INSTITUTION OF HIGHER EDUCATION.—The tion of appropriate cybersecurity best prac- resentatives of the United States of America in term ‘‘institution of higher education’’ has tices by departments and agencies of the Congress assembled, the meaning given the term in section 101(a)

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S180 CONGRESSIONAL RECORD — SENATE January 28, 2002

of the Higher Education Act of 1965 (20 U.S.C. (d) APPLICATION.—Each individual desiring (1) the National Security Agency; 1001(a)). to receive a graduate fellowship under this (2) the Department of Defense; (5) OTHER RELEVANT DISCIPLINE.—The term section shall submit an application to the (3) the National Institute of Standards and ‘‘other relevant discipline’’ includes, but is Director at such time, in such manner, and Technology; not limited to, the following fields as the containing such information as the Director, (4) a research laboratory supported by the fields specifically relate to securing informa- in consultation with the Board, shall re- Department of Energy; or tion infrastructures: quire. (5) a qualified institution. (A) Biometrics. (e) AWARD.—The Director is authorized to (b) APPLICATION.—Each institution of high- (B) Software engineering. award graduate fellowships under the fellow- er education desiring to receive a grant (C) Computer science and engineering. ship program that shall— under this section shall submit an applica- (D) Law. (1) be made available to individuals, tion to the Director at such time, in such (E) Business management or administra- through a competitive selection process, for manner, and containing such information as tion. study at a qualified institution and in ac- the Director shall require. cordance with the procedures established in (F) Psychology. (c) GRANT AWARDS.— subsection (h); (G) Mathematics. (1) IN GENERAL.—The Director shall award (2) be in an amount that is sufficient to (H) Sociology. a grant under this section only if the Na- cover annual tuition and fees for doctoral (6) QUALIFIED INSTITUTION.—The term tional Science Foundation and the agency or study at a qualified institution for the dura- ‘‘qualified institution’’ means an institution institution where the faculty member will tion of the graduate fellowship, and shall in- of higher education that, at the time of sub- spend the sabbatical approve the sabbatical clude, in addition, an annual living stipend mission of an application pursuant to any of placement. the programs authorized by this Act— of $20,000; and (3) be for a duration of 3 to 5-years, the spe- (2) NUMBER AND DURATION.—For each fiscal (A) has offered, for not less than 3 years year, the Director shall award grants for not prior to the date the application is sub- cific duration of each graduate fellowship to be determined by the Director in consulta- more than 25 sabbatical positions that will mitted under this Act, a minimum of 2 grad- each be for a 1-year period. uate courses in cybersecurity (not including tion with the Board on a case-by-case basis. (3) AMOUNT OF AWARD.— short-term special seminars or 1-time classes (f) REPAYMENT.—Each graduate fellowship (A) IN GENERAL.—Each institution of high- offered by visitors); shall— (1) subject to paragraph (f)(2), be subject to er education that is awarded a grant under (B) has not less than 3 faculty members this section shall receive $250,000 for each who teach cybersecurity courses— full repayment upon completion of the doc- toral degree according to a repayment sched- faculty member who will spend a sabbatical (i) each of whom has published not less pursuant to the grant. than 1 refereed cybersecurity research arti- ule established and administered by the Di- (B) USE OF AWARD.—The Director shall cle in a journal or through a conference dur- rector; (2) be forgiven at the rate of 20 percent of award a grant under this section in 2 dis- ing the 2-year period preceding the date of bursements in the following manner: enactment of this Act; the total amount of graduate fellowship as- sistance received under this section for each (i) FIRST DISBURSEMENT.—The first dis- (ii) at least 1 of whom is tenured; and academic year that a recipient is employed bursement shall be made upon selection of a (iii) each of whom has demonstrated active as a full-time faculty member at an institu- grant recipient and shall consist of the fol- engagement in the cybersecurity scholarly tion of higher education for a period not to lowing: community during the 2-year period pre- exceed 5 years; and (I) $20,000 to provide a stipend for living ex- ceding the date of enactment of this Act, (3) be monitored by the Director to ensure penses to each faculty member awarded a such as serving as an editor of a cybersecu- compliance with this section. sabbatical under this section. rity journal or participating on a program (g) ELIGIBILITY.—To be eligible to receive a (II) An amount sufficient for the grant re- committee for a cybersecurity conference or graduate fellowship under this section, an in- cipient to hire a qualified replacement for workshop; dividual shall— the faculty member awarded a sabbatical (C) has graduated not less than 1 Ph.D. (1) be a citizen of the United States; under this section for the term of the sab- scholar in cybersecurity during the 2-year (2) be matriculated or eligible to be ma- batical, if such a replacement is possible. period preceding the date of enactment of triculated for doctoral studies at a qualified (ii) SECOND DISBURSEMENT.—The second this Act; and institution; and disbursement shall be made at the conclu- (D) has not less than 3 graduate students (3) demonstrate a commitment to a career sion of the sabbatical, only if the faculty enrolled who are pursuing a Ph.D. in cyber- in higher education. member completes the sabbatical in its en- security. (h) SELECTION.— tirety, and shall be used for the grant recipi- SEC. 4. CYBERSECURITY GRADUATE FELLOW- (1) IN GENERAL.—The Director, in consulta- ent’s cybersecurity infrastructure needs, in- SHIP PROGRAM. tion with the Board, shall select recipients cluding— (a) PURPOSE.—The purpose of this section for graduate fellowships. (I) acquiring equipment or technology; is— (2) DUTIES.—The Director, in consultation (II) hiring graduate students; or (1) to encourage individuals to pursue aca- with the Board, shall— (III) supporting any other activity that demic careers in cybersecurity upon the (A) establish criteria for a competitive se- will enhance the grant recipient’s course of- completion of doctoral degrees; and lection process for recipients of graduate fel- ferings and research in cybersecurity. (2) to stimulate advanced study and re- lowships; LIGIBILITY.—To be eligible to receive a search, at the doctoral level, in complex, rel- (d) E (B) establish and promulgate an applica- grant under this section, an institution of evant, and important issues in cybersecu- tion process for the fellowship program; higher education shall submit an application rity. (C) receive applications for graduate fel- under subsection (b) that— (b) ESTABLISHMENT.—The Director is au- lowships; (1) identifies the faculty member to whom thorized to establish a Cybersecurity Fellow- (D) annually review applications and select the institution of higher education will pro- ship Program (referred to in this section as recipients of graduate fellowships; and vide a sabbatical and ensures that the fac- the ‘‘fellowship program’’) to annually award (E) establish and administer a repayment ulty member is a citizen of the United 3 to 5-year graduate fellowships to individ- schedule for recipients of graduate fellow- States; uals for studies and research at the doctoral ships. (2) ensures that the faculty member to level in cybersecurity. (3) CONSIDERATION.—In making selections whom the institution of higher education (c) CYBERSECURITY FELLOWSHIP PROGRAM for graduate fellowships, the Director, to the will provide a sabbatical is tenured at that ADVISORY BOARD.— extent possible and in consultation with the institution of higher education and meets (1) ESTABLISHMENT.—There is established a Board, shall consider applicants whose inter- general standards of excellence in research Cybersecurity Fellowship Program Advisory ests are of an interdisciplinary nature, en- or teaching; and Board (referred to in this section as the compassing the social scientific as well as (3) explains how the faculty member to ‘‘Board’’). technical dimensions of cybersecurity. whom the institution of higher education (2) MEMBERSHIP.—The Director shall ap- (i) AUTHORIZATION OF APPROPRIATIONS.— point members of the Board who shall in- There are authorized to be appropriated to will provide a sabbatical will— clude— carry out this section $5,000,000 for each of (A) integrate into the faculty member’s (A) not fewer than 3 full-time faculty fiscal years 2003 through 2005, and such sums course offerings knowledge related to cyber- members— as may be necessary for each succeeding fis- security that is gained during the sabbatical; (i) each of whom teaches at an institution cal year. and of higher education; and SEC. 5. SABBATICAL FOR DISTINGUISHED FAC- (B) in conjunction with the institution of (ii) each of whom has a specialty in cyber- ULTY IN CYBERSECURITY. higher education, use the second disburse- security; and (a) ESTABLISHMENT.—The Director is au- ment of funds available under subsection (B) not fewer than 2 research scientists em- thorized to award grants to institutions of (c)(3)(B)(ii). ployed by a Federal agency with duties that higher education to enable faculty members (e) AUTHORIZATION OF APPROPRIATIONS.— include cybersecurity activities. who are teaching cybersecurity subjects to There is authorized to be appropriated to (3) TERMS.—Members of the Board shall be spend a sabbatical from teaching working carry out this section $8,000,000 for each of appointed for renewable 2-year terms. at— fiscal years 2003 through 2005.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S181 SEC. 6. ENHANCING CYBERSECURITY INFRA- (1) establish or enhance a Center for Stud- search, including costs and initiatives re- STRUCTURE. ies in Cybersecurity Awareness, Training, quired to meet such needs and possible con- (a) ESTABLISHMENT.—The Director is au- and Education that shall— sequences of failure to meet such needs. thorized to award grants to qualified institu- (A) establish a professionally produced, (3) Other information that the Comptroller tions to fund activities that provide, en- web-based collection of cybersecurity pro- General determines appropriate. hance, and facilitate acquisition of cyberse- grams of instruction that have been ap- (b) REPORT.—Not later than 6 months after curity infrastructure at qualified institu- proved for general public dissemination by the date of enactment of this Act, and bien- tions. the authors and owners of the programs; nially thereafter, the Comptroller General (b) USE OF GRANT AWARD.—Each qualified (B) maintain a web-based directory of cy- shall prepare and submit a report on the institution that receives a grant under this bersecurity education and training related study conducted pursuant to subsection (a) section shall use the grant funds for needs conferences and symposia; to the— specifically related to— (C) sponsor the development of specific in- (1) Committee on Health, Education, Labor (1) cybersecurity education and research; structional materials in cybersecurity and and Pensions of the Senate; and and other relevant disciplines, including— (2) Committee on Education and the Work- (2) development efforts related to cyberse- (i) intrusion detection; force of the House of Representatives. curity. (ii) overview of information assurance; (c) MATCHING FUNDS.—Each qualified insti- (iii) ethical use of computing systems; By Mr. KERRY (for himself, Ms. tution that receives a grant under this sec- (iv) network security; SNOWE, Mr. LIEBERMAN, Mr. tion shall contribute to the activities as- (v) cryptography; BENNETT, and Mr. BINGAMAN): sisted under this section non-Federal match- (vi) risk management; S. 1903. A bill to amend the Internal ing funds equal to not less than 25 percent of (vii) malicious logic; and Revenue Code of 1986 to allow certain the amount of the grant. (viii) system security engineering; small businesses to defer payment of (d) AUTHORIZATION OF APPROPRIATIONS.— (D) sponsor cybersecurity education There is authorized to be appropriated to symposia; tax; to the Committee on Finance. carry out this section $10,000,000 for each of (E) collaborate with the National Mr. KERRY. Mr. President, each fiscal years 2003 through 2005. Colloquium for Information Assurance Edu- year, the United States economy gen- SEC. 7. CYBERSECURITY AWARENESS, TRAINING, cation; erates 600,000 to 800,000 new businesses. AND EDUCATION PROGRAM. (F) create a ‘Virtual Academy’ for sharing While many of these businesses will (a) PURPOSE.—The purpose of this section courseware and laboratory exercises in cy- succeed, some of them will fail. Wheth- is to increase the quality of education and bersecurity; and er they succeed or not, one fact is with- training in cybersecurity, thereby increasing (G) review and participate in integrating out question: the entrepreneurs build- the number of qualified students entering various cybersecurity education and training the field of cybersecurity to adequately ad- ing these small businesses lay the foun- standards into unified curricula; and dation for our Nation’s productivity dress the Nation’s increasing dependence on (2) establish or enhance a Center for the information technology and to defend the Development of Faculty in Cybersecurity gains, employment growth, and eco- Nation’s increasingly vulnerable information that shall— nomic progress. In fact, although spe- infrastructure. (A) establish criteria for recognition and cific estimates vary, economists gen- (b) ESTABLISHMENT.—The Director of the certification of cybersecurity trainers and erally agree that small, entrepre- National Security Agency is authorized to educators; neurial companies generate the major- award grants, on a competitive basis, to (B) establish faculty training outreach to ity of the Nation’s new jobs. qualified institutions to establish Cybersecu- teachers in kindergarten through grade 12 The legislation I am introducing rity Awareness, Training, and Education and to faculty of part B institutions (as de- today, the Business Retained Income Programs (referred to in this section as ‘‘in- fined in section 322 of the Higher Education formation programs’’). During Growth and Expansion, Act of 1965 (20 U.S.C. 1061)); (BRIDGE), Act, will help ensure that (c) APPLICATION.— (C) build, test, and evaluate laboratory ex- (1) IN GENERAL.—Each qualified institution ercises that represent use of model practices rapidly expanding, entrepreneurial desiring to receive a grant under this section in cybersecurity for use in training and edu- businesses have access to the capital shall submit an application to the Director cation programs; and they need to continue creating jobs and of the National Security Agency at such (D) establish an integrated program to in- stimulating the economy. time, in such manner, and accompanied by clude the programs described in this para- Most new business start small and such information as the Director of the Na- graph and paragraph (1). stay small. A portion, however, evolve tional Security Agency shall require. (e) AUTHORIZATION OF APPROPRIATIONS.— into fast-growth companies with the (2) PLANS.—Each application submitted There are authorized to be appropriated to capacity to propel the economy for- pursuant to paragraph (1) shall include a carry out this section— plan for establishing and maintaining an in- (1) $1,500,000 for fiscal year 2003; ward. For these companies, access to formation program under this section, in- (2) $2,000,000 for fiscal year 2004; financing presents a pivotal challenge. cluding a description of— (3) $3,000,000 for fiscal year 2005; and A typical small business may open its (A) the design, structure, and scope of the (4) $4,500,000 for fiscal year 2006. doors with a combination of personal proposed information program, including SEC. 8. CYBERSECURITY WORKFORCE AND FA- savings, credit card borrowing, and unique qualities that may distinguish the CILITIES STUDY. family lending. Informal investors, proposed information program from possible (a) STUDY.—The Comptroller General shall family, friends, and work associates, approaches of other qualified institutions; conduct a study and collect data on the fol- contribute the vast majority of the $56 lowing: (B) research being conducted in the dis- billion of estimated initial funding for ciplines encompassed by the plan; (1) The cybersecurity workforce, includ- (C) any integration of the information pro- ing— new businesses. If a business is success- gram with other federally funded programs (A) the size and nature of the cybersecu- ful, it moves to the next stage of devel- related to cybersecurity education, such as rity workforce by occupation category (in- opment. Unfortunately, emerging the National Science Foundation Scholar- cluding academic faculty at institutions of growth companies will often outstrip ship for Service Program, the Department of higher education), level of education and the capital financing available based Defense Multidisciplinary Research Program training, personnel demographics, and indus- solely on the personal credit or assets of the University Research Initiative, and try characteristics; and of the entrepreneur. the Department of Defense Information As- (B) the role of foreign workers in the cy- Capital funding gaps frequently pre- surance Scholarship Program; bersecurity workforce. vail when a firm seeks financing in the (D) necessary costs for information infra- (2) Academic cybersecurity research facili- structure to support the information pro- ties, including— range of $250,000 to $1 million, a period gram; (A) total academic research space available when the business is particularly vul- (E) how the qualified institution will pro- or utilized for research relating to cyberse- nerable. Funding needs below $250,000 tect the integrity and security of the infor- curity; are often fulfilled by family, friends, mation infrastructure and any student test- (B) academic research space relating to cy- credit cards, home mortgages, and ing mechanisms; and bersecurity that is in need of major repair or home equity lines of credit. Beyond (F) other relevant information. renovation; $250,000, businesses typically turn to (3) COLLABORATION.—A qualified institu- (C) new or ongoing projects at institutions so-called ‘‘angel’’ financiers; high-in- of higher education expected to produce new tion desiring to receive a grant under this terest borrowing; and in limited cases, section may propose collaboration with or renovated research space to be used for re- other qualified institutions. search relating to cybersecurity; and Small Business Investment Companies. (d) GRANT AWARDS.—Each qualified insti- (D) any research space needs related to cy- Venture capital is usually not an op- tution that receives a grant under this sec- bersecurity and based on projections of tion for these companies because ini- tion shall use the grant funds to— growth in educational programs and re- tial venture investments generally

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S182 CONGRESSIONAL RECORD — SENATE January 28, 2002 begin at approximately $3 million, The entrepreneurial spirit lies at the ‘‘(B) DUE DATE FOR FIRST INSTALLMENT.— which is far more than most early- foundation of our economy’s techno- The due date for the first installment for a stage growth companies need or war- logical advances, creative innovations, taxable year shall be whichever of the fol- rant. When sales reach $10 million, the and dynamic growth. We should take lowing is the earliest: ‘‘(i) The date selected by the taxpayer. company is better able to attract ex- steps to ensure that rapidly growing ‘‘(ii) The date which is 2 years after the ternal financing at a reasonable cost companies have the resources needed date prescribed by section 6151(a) for pay- based on the business’s underlying as- to continue producing new jobs and op- ment of the tax for such taxable year. sets. portunities. The BRIDGE Act will free ‘‘(2) TIME FOR PAYMENT OF INTEREST.—If Congress should take steps to ease entrepreneurial businesses from the the time for payment of any amount of tax the credit crunch for small businesses shackles of unmet capital funding has been extended under this section— climbing the economic ladder from needs and empower them to expand ‘‘(A) INTEREST FOR PERIOD BEFORE DUE DATE small to medium-size enterprise. When into new markets. I urge my colleagues OF FIRST INSTALLMENT.—Interest payable the lack of available financing pre- to support the legislation, and I ask under section 6601 on any unpaid portion of vents a growing, successful firm from such amount attributable to the period be- unanimous consent that the text of the fore the due date for the first installment expanding into new markets, we miss legislation be printed in the RECORD. shall be paid annually. an opportunity to create new jobs and There being no objection, the bill was ‘‘(B) INTEREST DURING INSTALLMENT PE- unleash productive forces. The legisla- ordered to be printed in the RECORD, as RIOD.—Interest payable under section 6601 on tion I am introducing today with Sen- follows: any unpaid portion of such amount attrib- ator OLYMPIA SNOWE will help bridge S. 1903 utable to any period after such period shall the gap in capital financing for emerg- Be it enacted by the Senate and House of Rep- be paid at the same time as, and as a part of, ing growth companies. A companion resentatives of the United States of America in each installment payment of the tax. measures has been introduced in the Congress assembled, ‘‘(C) INTEREST IN THE CASE OF CERTAIN DEFI- CIENCIES.—In the case of a deficiency to House by Representatives JIM DEMINT SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Business Re- which subsection (e)(3) applies for a taxable and BRIAN BAIRD. year which is assessed after the due date for The BRIDGE Act would allow mid- tained Income During Growth and Expansion Act of 2002’’ or the ‘‘BRIDGE Act of 2002’’. the first installment for such year, interest sized, fast-growing businesses to tem- attributable to the period before such due SEC. 2. DEFERRED PAYMENT OF TAX BY CERTAIN porarily defer a portion of their Fed- SMALL BUSINESSES. date, and interest assigned under subpara- eral income tax liability if the firm’s (a) IN GENERAL.—Subchapter B of chapter graph (B) to any installment the date for sales for the year are at least 10 per- 62 of the Internal Revenue Code of 1986 (re- payment of which has arrived on or before cent higher than the average sales of lating to extensions of time for payment of the date of the assessment of the deficiency, the prior two years. The two-year de- tax) is amended by adding at the end the fol- shall be paid upon notice and demand from lowing new section: the Secretary. ferral would be limited to $250,000 of ‘‘(e) SPECIAL RULES.— tax, which would be repayable with in- ‘‘SEC. 6168. EXTENSION OF TIME FOR PAYMENT OF TAX FOR CERTAIN SMALL BUSI- ‘‘(1) APPLICATION OF LIMITATION TO PART- terest over a four-year period. The tax- NESSES. NERS AND S CORPORATION SHAREHOLDERS.— deferred amount would be deposited in ‘‘(a) IN GENERAL.—An eligible small busi- ‘‘(A) IN GENERAL.—In applying this section a separate trust account at a bank or ness may elect to pay the tax imposed by to a partnership which is an eligible small other approved intermediary, and the chapter 1 in 4 equal installments. business— firm could borrow against the deferred ‘‘(b) LIMITATION.—The maximum amount of ‘‘(i) the election under subsection (a) shall be made by the partnership, amount, as collateral, for business pur- tax which may be paid in installments under this section for any taxable year shall not ‘‘(ii) the amount referred to in subsection poses. Upon sale or merger of the busi- exceed whichever of the following is the (b)(1) shall be the sum of each partner’s tax ness, any remaining tax deferral would least: which is attributable to items of the partner- be payable at that time. ‘‘(1) The tax imposed by chapter 1 for the ship and assuming the highest marginal rate To be eligible, a small business would taxable year. under section 1, and have to have annual gross receipts of ‘‘(2) The amount contributed by the tax- ‘‘(iii) the partnership shall be treated as $10,000,000 or less. Partnerships and S payer into a BRIDGE Account during such the taxpayer referred to in paragraphs (2) corporations would also be eligible to year. and (3) of subsection (b). make the election to defer taxes. To ‘‘(3) The excess of $250,000 over the aggre- ‘‘(B) OVERALL LIMITATION ALSO APPLIED AT PARTNER LEVEL.—In the case of a partner in allow adequate review of this new and gate amount of tax for which an election under this section was made by the taxpayer a partnership, the limitation under sub- innovative concept, the proposal would (or any predecessor) for all prior taxable section (b)(3) shall be applied at the partner- expire at the end of 2005. years. ship and partner levels. The BRIDGE Act will free up new in- ‘‘(c) ELIGIBLE SMALL BUSINESS.—For pur- ‘‘(C) SIMILAR RULES FOR S CORPORATIONS.— vestment capital for fast-growing firms poses of this section— Rules similar to the rules of subparagraphs by allowing them to use a portion of ‘‘(1) IN GENERAL.—The term ‘eligible small (A) and (B) shall apply to shareholders in an their federal tax liability for self-fi- business’ means, with respect to any taxable S corporation. nancing. These firms experience heavy year, any person if— ‘‘(2) ACCELERATION OF PAYMENT IN CERTAIN demands on their cash flow as they re- ‘‘(A) such person meets the active business CASES.— invest receipts, hire new employees, requirements of section 1202(e) throughout ‘‘(A) IN GENERAL.—If— such taxable year, ‘‘(i) the taxpayer ceases to meet the re- create additional marketing channels, ‘‘(B) the taxpayer has gross receipts of quirement of subsection (c)(1)(A), or and purchase new equipment. Tax li- $10,000,000 or less for the taxable year, ‘‘(ii) there is an ownership change with re- ability directly trades off with rein- ‘‘(C) the gross receipts of the taxpayer for spect to the taxpayer, vestment. The BRIDGE Act will help such taxable year are at least 10 percent then the extension of time for payment of reduce cash flow pressures by allowing greater than the average annual gross re- tax provided in subsection (a) shall cease to a limited tax deferral. As the firm pros- ceipts of the taxpayer (or any predecessor) apply, and the unpaid portion of the tax pay- pers, it will repay its original tax obli- for the 2 prior taxable years, and able in installments shall be paid on or be- gation as well as additional taxes on ‘‘(D) the taxpayer uses an accrual method fore the due date for filing the return of tax its higher receipts. of accounting. imposed by chapter 1 for the first taxable One of the most interesting aspects ‘‘(2) CERTAIN RULES TO APPLY.—Rules simi- year following such cessation. lar to the rules of paragraphs (2) and (3) of ‘‘(B) OWNERSHIP CHANGE.—For purposes of of the proposal is that its long-term section 448(c) shall apply for purposes of this subparagraph, in the case of a corporation, costs are negligible. According to the subsection. the term ‘ownership change’ has the mean- Joint Committee on Taxation, the leg- ‘‘(d) DATE FOR PAYMENT OF INSTALLMENTS; ing given to such term by section 382. Rules islation would generate a revenue loss TIME FOR PAYMENT OF INTEREST.— similar to the rules applicable under the pre- of $22.9 billion during the first four ‘‘(1) DATE FOR PAYMENT OF INSTALLMENTS.— ceding sentence shall apply to a partnership. years. However, as businesses repay de- ‘‘(A) IN GENERAL.—If an election is made ‘‘(3) PRORATION OF DEFICIENCY TO INSTALL- ferred amounts, the revenue loss would under this section for any taxable year, the MENTS.—Rules similar to the rules of section first installment shall be paid on or before reverse, and then some. During the fol- 6166(e) shall apply for purposes of this sec- the due date for such installment and each tion. lowing six years, the proposal would succeeding installment shall be paid on or ‘‘(f) BRIDGE ACCOUNT.—For purposes of raise $24.1 billion. Thus, over the ten before the date which is 1 year after the date this section— year budget window, the proposal prescribed by this paragraph for payment of ‘‘(1) IN GENERAL.—The term ‘BRIDGE Ac- would raise $1.1 billion. the preceding installment. count’ means a trust created or organized in

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S183 the United States for the exclusive benefit of the Committee on Ways and Means of the sioner of Social Security shall disregard the an eligible small business, but only if the House of Representatives and the Committee effect of the payroll tax holiday period on written governing instrument creating the on Finance of the Senate a written report any individual’s earnings record. trust meets the following requirements: presenting the results of the study conducted ‘‘(A) No contribution will be accepted for pursuant to this subsection, together with SA 2724. Mr. HATCH (for himself and any taxable year in excess of the amount al- such recommendations for legislative or ad- Mr. BENNETT!) PROPOSED AN AMENDMENT lowed as a deferral under subsection (b) for ministrative changes as the Comptroller TO THE LANGUAGE PROPOSED TO BE such year. General determines are appropriate. STRICKEN BY AMENDMENT SA 2698 SUB- ‘‘(B) The trustee is a bank (as defined in f section 408(n)) or another person who dem- MITTED BY MR. DASCHLE and intended onstrates to the satisfaction of the Secretary AMENDMENTS SUBMITTED AND to be proposed to the bill (H.R. 622) to that the manner in which such person will PROPOSED amend the Internal Revenue Code of administer the trust will be consistent with 1986 to expand the adoption credit, and the requirements of this section. SA 2723. Mr. DOMENICI proposed an amendment to the language proposed to be for other purposes; as follows: ‘‘(C) The assets of the trust consist en- At the end, add the following: tirely of cash or of obligations which have stricken by amendment SA 2698 submitted adequate stated interest (as defined in sec- by Mr. DASCHLE and intended to be proposed SEC. ll. CARRYBACK OF CERTAIN NET OPER- to the bill (H.R. 622) to amend the Internal ATING LOSSES ALLOWED FOR 7 tion 1274(c)(2)) and which pay such interest YEARS. not less often than annually. Revenue Code of 1986 to expand the adoption (a) IN GENERAL.—Paragraph (1) of section ‘‘(D) The assets of the trust will not be credit, and for other purposes. 172(b) of the Internal Revenue Code of 1986 commingled with other property except in a SA 2724. Mr. HATCH (for himself and Mr. (relating to years to which loss may be car- common trust fund or common investment BENNETT) proposed an amendment to the ried) is amended by adding at the end the fol- fund. language proposed to be stricken by amend- lowing new subparagraph: ‘‘(E) Amounts in the trust may be used ment SA 2698 submitted by Mr. DASCHLE and ‘‘(H) SPECIAL RULE FOR CERTAIN LOSSES.— only— intended to be proposed to the bill (H.R. 622) ‘‘(i) IN GENERAL.—In the case of a taxpayer ‘‘(i) as security for a loan to the business supra. or for repayment of such loan, or SA 2725. Mr. BINGAMAN submitted an which has a net operating loss for any tax- ‘‘(ii) to pay the installments under this amendment intended to be proposed to the able year ending during 2000, 2001, or 2002, section. language proposed to be stricken by amend- subparagraph (A)(i) shall be applied by sub- stituting ‘7’ for ‘2’ and subparagraph (F) ‘‘(2) ACCOUNT TAXED AS GRANTOR TRUST.— ment SA 2698 submitted by Mr. DASCHLE and The grantor of a BRIDGE Account shall be intended to be proposed to the bill (H.R. 622) shall not apply. treated for purposes of this title as the supra; which was ordered to lie on the table. ‘‘(ii) PER YEAR LIMITATION.—For purposes owner of such Account and shall be subject SA 2726. Mrs. LINCOLN submitted an of the 6th and 7th taxable years preceding to tax thereon in accordance with subpart E amendment intended to be proposed by her the taxable year of such loss, the amount of of part I of subchapter J of this chapter (re- to the bill H.R. 622, supra; which was ordered net operating losses to which clause (i) may lating to grantors and others treated as sub- to lie on the table. apply for any taxable year shall not exceed stantial owners). SA 2727. Mr. ROCKEFELLER (for himself $50,000,000.’’ ‘‘(3) TIME WHEN PAYMENTS DEEMED MADE.— and Mr. KERRY, Mr. JOHNSON, and Mr. (b) ELECTION TO DISREGARD 7-YEAR For purposes of this section, a taxpayer shall DASCHLE) submitted an amendment intended CARRYBACK.—Section 172 of the Internal Rev- be deemed to have made a payment to a to be proposed by him to the bill H.R. 622, enue Code of 1986 (relating to net operating BRIDGE Account on the last day of a taxable supra; which was ordered to lie on the table. loss deduction) is amended by redesignating subsection (j) as subsection (k) and by insert- year if such payment is made on account of f such taxable year and is made within 31⁄2 ing after subsection (i) the following new months after the close of such taxable year. TEXT OF AMENDMENTS subsection: ‘‘(j) ELECTION TO DISREGARD 7-YEAR ‘‘(g) REPORTS.—The Secretary may require SA 2723. Mr. DOMENICI proposed an CARRYBACK FOR CERTAIN NET OPERATING such reporting as the Secretary determines amendment to the language proposed to be appropriate to carry out this section. LOSSES.—Any taxpayer entitled to a 7-year ‘‘(h) APPLICATION OF SECTION.—This section to be stricken by amendment SA 2698 carryback under subsection (b)(1)(H) from shall apply to taxes imposed for taxable submitted by Mr. DASCHLE and in- any loss year may elect to have the years beginning after December 31, 2001, and tended to be proposed to the bill (H.R. carryback period with respect to such loss before January 1, 2006.’’. 622) to amend the Internal Revenue year determined without regard to sub- (b) PRIORITY OF LENDER.—Subsection (b) of Code of 1986 to expand the adoption section (b)(1)(H). Such election shall be made section 6323 of the Internal Revenue Code of in such manner as may be prescribed by the 1986 (relating to protection for certain inter- credit, and for other purposes; as fol- lows: Secretary and shall be made by the due date ests even though notice filed) is amended by (including extensions of time) for filing the adding at the end the following new para- At the end, add the following: taxpayer’s return for the taxable year of the graph: SEC. ll. PAYROLL TAX HOLIDAY. net operating loss. Such election, once made ‘‘(11) LOANS SECURED BY BRIDGE AC- (a) IN GENERAL.—Notwithstanding any for any taxable year, shall be irrevocable for COUNTS.—With respect to a BRIDGE account other provision of law, the rate of tax with such taxable year.’’ (as defined in section 6168(f)) with any bank respect to remuneration received during the (c) TEMPORARY SUSPENSION OF 90 PERCENT (as defined in section 408(n)), to the extent of payroll tax holiday period shall be zero LIMIT ON CERTAIN NOL CARRYBACKS.— any loan made by such bank without actual under sections 1401(a), 3101(a), and 3111(a) of (1) IN GENERAL.—Subparagraph (A) of sec- notice or knowledge of the existence of such the Internal Revenue Code of 1986 and for tion 56(d)(1) of the Internal Revenue Code of lien, as against such bank, if such loan is se- purposes of determining the applicable per- 1986 (relating to general rule defining alter- cured by such account.’’. centage under section 3201(a), 3211(a)(1), and native tax net operating loss deduction) is (c) CLERICAL AMENDMENT.—The table of 3221(a) of such Code. amended to read as follows: sections for subchapter B of chapter 62 of the (b) PAYROLL TAX HOLIDAY PERIOD.—The ‘‘(A) the amount of such deduction shall Internal Revenue Code of 1986 is amended by term ‘‘payroll tax holiday period’’ means the not exceed the sum of— adding at the end the following new item: period beginning after February 28, 2002, and ‘‘(i) the lesser of— ‘‘Sec. 6168. Extension of time for payment of ending before April 1, 2002. ‘‘(I) the amount of such deduction attrib- tax for certain small busi- (c) EMPLOYER NOTIFICATION.—The Sec- utable to net operating losses (other than nesses.’’. retary of the Treasury shall notify employ- the deduction attributable to carrybacks de- (d) EFFECTIVE DATE.—The amendments ers of the payroll tax holiday period in any scribed in clause (ii)(I)), or made by this section shall apply to taxable manner the Secretary deems appropriate. ‘‘(II) 90 percent of alternative minimum years beginning after December 31, 2001. (d) TRANSFER OF FUNDS.—The Secretary of taxable income determined without regard (e) STUDY BY GENERAL ACCOUNTING OF- the Treasury shall transfer from the general to such deduction, plus FICE.— revenues of the Federal Government an ‘‘(ii) the lesser of— (1) STUDY.—In consultation with the Sec- amount sufficient so as to ensure that the ‘‘(I) the amount of such deduction attrib- retary of the Treasury, the Comptroller Gen- income and balances of the trust funds under utable to carrybacks of net operating losses eral of the United States shall undertake a section 201 of the Social Security Act and for taxable years ending during 2000, 2001, or study to evaluate the applicability (includ- the Social Security Equivalent Benefit Ac- 2002, or ing administrative aspects) and impact of count under section 15A of the Railroad Re- ‘‘(II) alternative minimum taxable income the BRIDGE Act of 2001, including how it af- tirement Act of 1974 (45 U.S.C. 231n–1) are not determined without regard to such deduction fects the capital funding needs of businesses reduced as a result of the application of sub- reduced by the amount determined under under the Act and number of businesses ben- section (a). clause (i), and’’. efiting. (e) DETERMINATION OF BENEFITS.—In mak- (2) EFFECTIVE DATE.—The amendment (2) REPORT.—Not later than March 31, 2005, ing any determination of benefits under title made by this subsection shall apply to tax- the Comptroller General shall transmit to II of the Social Security Act, the Commis- able years beginning before January 1, 2003.

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(d) EFFECTIVE DATE.—Except as provided in SEC. ll. BROADBAND INTERNET ACCESS TAX generation broadband credit under sub- subsection (c), the amendments made by this CREDIT. section (a)(2) with respect to qualified equip- section shall apply to net operating losses (a) IN GENERAL.—Subpart E of part IV of ment through which next generation for taxable years ending after December 31, chapter 1 (relating to rules for computing in- broadband services are provided, if the quali- 1999. vestment credit) is amended by inserting fied equipment is capable of serving both after section 48 the following: qualified subscribers and other subscribers, SA 2725. Mr. BINGAMAN submitted ‘‘SEC. 48A. BROADBAND CREDIT. the qualified expenditures shall be multi- an amendment intended to be proposed ‘‘(a) GENERAL RULE.—For purposes of sec- plied by a fraction— to the language proposed to be stricken tion 46, the broadband credit for any taxable ‘‘(A) the numerator of which is the sum by amendment SA 2698 submitted by year is the sum of— of— ‘‘(1) the current generation broadband ‘‘(i) the number of potential qualified sub- Mr. DASCHLE and intended to be pro- credit, plus scribers within the rural areas and under- posed to the bill (H.R. 622) to amend ‘‘(2) the next generation broadband credit. served areas, plus the Internal Revenue Code of 1986 to ‘‘(b) CURRENT GENERATION BROADBAND ‘‘(ii) the number of potential qualified sub- expand the adoption credit, and for CREDIT; NEXT GENERATION BROADBAND CRED- scribers within the area consisting only of other purposes; which was ordered to IT.—For purposes of this section— residential subscribers not described in lie on the table; as follows: ‘‘(1) CURRENT GENERATION BROADBAND CRED- clause (i), IT.—The current generation broadband credit At the end, add the following: which the equipment is capable of serving for any taxable year is equal to 10 percent of with next generation broadband services, and SEC. . ALLOWANCE OF ELECTRONIC 1099S. the qualified expenditures incurred with re- ‘‘(B) the denominator of which is the total Except as otherwise provided by the Sec- spect to qualified equipment providing cur- potential subscriber population of the area retary of the Treasury, any person required rent generation broadband services to quali- which the equipment is capable of serving to furnish a statement under any section of fied subscribers and taken into account with with next generation broadband services. subpart B of part III of subchapter A of chap- respect to such taxable year. ‘‘(e) DEFINITIONS.—For purposes of this sec- ter 61 of the Internal Revenue Code of 1986 ‘‘(2) NEXT GENERATION BROADBAND CREDIT.— tion— for any taxable year ending after the date of The next generation broadband credit for ‘‘(1) ANTENNA.—The term ‘antenna’ means the enactment of this Act, may electroni- any taxable year is equal to 20 percent of the any device used to transmit or receive sig- cally furnish such statement to any recipi- qualified expenditures incurred with respect nals through the electromagnetic spectrum, ent who has consented to the electronic pro- to qualified equipment providing next gen- including satellite equipment. vision of the statement in a manner similar eration broadband services to qualified sub- ‘‘(2) CABLE OPERATOR.—The term ‘cable op- to the one permitted under regulations scribers and taken into account with respect erator’ has the meaning given such term by issued under section 6051 of such Code or in to such taxable year. section 602(5) of the Communications Act of such other manner as provided by the Sec- ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC- 1934 (47 U.S.C. 522(5)). retary. COUNT.—For purposes of this section— ‘‘(3) COMMERCIAL MOBILE SERVICE CAR- ‘‘(1) IN GENERAL.—Qualified expenditures RIER.—The term ‘commercial mobile service SA 2726. Mrs. LINCOLN submitted an with respect to qualified equipment shall be carrier’ means any person authorized to pro- amendment intended to be proposed by taken into account with respect to the first vide commercial mobile radio service as de- her to the bill H.R. 622, to amend the taxable year in which— fined in section 20.3 of title 47, Code of Fed- Internal Revenue Code of 1986 to ex- ‘‘(A) current generation broadband services eral Regulations. pand the adoption credit, and for other are provided through such equipment to ‘‘(4) CURRENT GENERATION BROADBAND SERV- purposes; which was ordered to lie on qualified subscribers, or ICE.—The term ‘current generation ‘‘(B) next generation broadband services the table; as follows: broadband service’ means the transmission are provided through such equipment to of signals at a rate of at least 1,000,000 bits At an appropriate place, insert the fol- qualified subscribers. per second to the subscriber and at least lowing: ‘‘(2) LIMITATION.— 128,000 bits per second from the subscriber. SEC. ll. AMORTIZATION OF REFORESTATION ‘‘(A) IN GENERAL.—Qualified expenditures ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.— EXPENDITURES AND REFOREST- shall be taken into account under paragraph The term ‘multiplexing’ means the trans- ATION TAX CREDIT. (1) only with respect to qualified equip- mission of 2 or more signals over a single (a) REMOVAL OF CAP ON AMORTIZABLE ment— channel, and the term ‘demultiplexing’ BASIS.— ‘‘(i) the original use of which commences means the separation of 2 or more signals (1) IN GENERAL.—Section 194 (relating to with the taxpayer, and previously combined by compatible multi- amortization of reforestation expenditures) ‘‘(ii) which is placed in service, plexing equipment. is amended by striking subsection (b) and by after December 31, 2001. ‘‘(6) NEXT GENERATION BROADBAND SERV- redesignating subsections (c) and (d) as sub- ‘‘(B) SALE-LEASEBACKS.—For purposes of ICE.—The term ‘next generation broadband sections (b) and (c), respectively. subparagraph (A), if property— service’ means the transmission of signals at (2) CONFORMING AMENDMENT.—Subsection ‘‘(i) is originally placed in service after De- a rate of at least 22,000,000 bits per second to (b) of section 194, as redesignated by para- cember 31, 2001, by a person, and the subscriber and at least 5,000,000 bits per graph (1), is amended by striking paragraph ‘‘(ii) sold and leased back by such person second from the subscriber. (4). within 3 months after the date such property ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The (b) INCREASE IN CAP ON REFORESTATION was originally placed in service, term ‘nonresidential subscriber’ means a per- CREDIT.—Paragraph (1) of section 48(b) (re- such property shall be treated as originally son who purchases broadband services which lating to reforestation credit) is amended— placed in service not earlier than the date on are delivered to the permanent place of busi- (1) by inserting ‘‘of the first $25,000’’ after which such property is used under the lease- ness of such person. ‘‘10 percent’’, and back referred to in clause (ii). ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The (2) by striking ‘‘(after the application of ‘‘(d) SPECIAL ALLOCATION RULES.— term ‘open video system operator’ means section 194(b)(1))’’. ‘‘(1) CURRENT GENERATION BROADBAND SERV- any person authorized to provide service (c) EFFECTIVE DATES.— ICES.—For purposes of determining the cur- under section 653 of the Communications Act (1) AMORTIZATION PROVISIONS.—The amend- rent generation broadband credit under sub- of 1934 (47 U.S.C. 573). ments made by subsection (a) shall apply to section (a)(1) with respect to qualified equip- ‘‘(9) OTHER WIRELESS CARRIER.—The term additions to capital account made after De- ment through which current generation ‘other wireless carrier’ means any person cember 31, 2001. broadband services are provided, if the quali- (other than a telecommunications carrier, (2) TAX CREDIT PROVISIONS.—The amend- fied equipment is capable of serving both commercial mobile service carrier, cable op- ments made by subsection (b) shall apply to qualified subscribers and other subscribers, erator, open video system operator, or sat- property acquired after December 31, 2001. the qualified expenditures shall be multi- ellite carrier) providing current generation plied by a fraction— broadband services or next generation SA 2727. Mr. ROCKEFELLER (for ‘‘(A) the numerator of which is the sum of broadband service to subscribers through the himself, Mr. KERRY, Mr. JOHNSON, and the number of potential qualified subscribers wireless transmission of energy through Mr. DASCHLE) submitted an amendment within the rural areas and the underserved radio or light waves. intended to be proposed by him to the areas which the equipment is capable of serv- ‘‘(10) PACKET SWITCHING.—The term ‘packet bill H.R. 622, to amend the Internal ing with current generation broadband serv- switching’ means controlling or routing the Revenue Code of 1986 to expand the ices, and path of a digitized transmission signal which adoption credit, and for other purposes; ‘‘(B) the denominator of which is the total is assembled into packets or cells. potential subscriber population of the area ‘‘(11) PROVIDER.—The term ‘provider’ which was ordered to lie on the table; which the equipment is capable of serving means, with respect to any qualified equip- as follows: with current generation broadband services. ment— At the appropriate place, add the fol- ‘‘(2) NEXT GENERATION BROADBAND SERV- ‘‘(A) a cable operator, lowing: ICES.—For purposes of determining the next ‘‘(B) a commercial mobile service carrier,

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S185 ‘‘(C) an open video system operator, first in a series of such functions performed dwellings located within such census tract, ‘‘(D) a satellite carrier, in the transmission of a signal from a sub- and ‘‘(E) a telecommunications carrier, or scriber. ‘‘(B) such services can be utilized— ‘‘(F) any other wireless carrier, ‘‘(D) MULTIPLEXING AND DEMULTIPLEXING ‘‘(i) at least a majority of the time during providing current generation broadband EQUIPMENT.—Multiplexing and demulti- periods of maximum demand by each such services or next generation broadband serv- plexing equipment shall be taken into ac- subscriber who is utilizing such services, and ices to subscribers through such qualified count under subparagraph (A) only to the ex- ‘‘(ii) in a manner substantially the same as equipment. tent it is deployed in connection with equip- such services are provided by the provider to ‘‘(12) PROVISION OF SERVICES.—A provider ment described in subparagraph (B) and is subscribers through equipment with respect shall be treated as providing services to a uniquely designed to perform the function of to which no credit is allowed under sub- subscriber if— multiplexing and demultiplexing packets or section (a)(1). ‘‘(A) a subscriber has been passed by the cells of data and making associated applica- ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ provider’s equipment and can be connected tion adaptions, but only if such multiplexing means a person who purchases current gen- to such equipment for a standard connection or demultiplexing equipment is located be- eration broadband services or next genera- fee, tween packet switching equipment described tion broadband services. ‘‘(B) the provider is physically able to de- in subparagraph (C) and the subscriber’s ‘‘(22) TELECOMMUNICATIONS CARRIER.—The premises. liver current generation broadband services term ‘telecommunications carrier’ has the ‘‘(14) QUALIFIED EXPENDITURE.— or next generation broadband services, as ap- meaning given such term by section 3(44) of ‘‘(A) IN GENERAL.—The term ‘qualified ex- plicable, to such subscribers without making the Communications Act of 1934 (47 U.S.C. penditure’ means any amount— more than an insignificant investment with 153(44)), but— ‘‘(i) chargeable to capital account with re- respect to any such subscriber, ‘‘(A) includes all members of an affiliated spect to the purchase and installation of ‘‘(C) the provider has made reasonable ef- group of which a telecommunications carrier qualified equipment (including any upgrades forts to make such subscribers aware of the is a member, and thereto) for which depreciation is allowable availability of such services, ‘‘(B) does not include a commercial mobile under section 168, and ‘‘(D) such services have been purchased by service carrier. ‘‘(ii) incurred after December 31, 2001, and ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU- one or more such subscribers, and before January 1, 2003. ‘‘(E) such services are made available to LATION.—The term ‘total potential sub- ‘‘(B) CERTAIN SATELLITE EXPENDITURES EX- such subscribers at average prices com- scriber population’ means, with respect to CLUDED.—Such term shall not include any parable to those at which the provider makes any area and based on the most recent cen- expenditure with respect to the launching of sus data, the total number of potential resi- available similar services in any areas in any satellite equipment. which the provider makes available such dential subscribers residing in dwellings lo- ‘‘(15) QUALIFIED SUBSCRIBER.—The term cated in such area and potential nonresiden- services. ‘qualified subscriber’ means— ‘‘(13) QUALIFIED EQUIPMENT.— tial subscribers maintaining permanent ‘‘(A) with respect to the provision of cur- places of business located in such area. ‘‘(A) IN GENERAL.—The term ‘qualified rent generation broadband services— equipment’ means equipment which provides ‘‘(24) UNDERSERVED AREA.—The term ‘un- ‘‘(i) a nonresidential subscriber maintain- derserved area’ means any census tract current generation broadband services or ing a permanent place of business in a rural which is located in— next generation broadband services— area or underserved area, or ‘‘(A) an empowerment zone or enterprise ‘‘(i) at least a majority of the time during ‘‘(ii) a residential subscriber residing in a community designated under section 1391, periods of maximum demand to each sub- dwelling located in a rural area or under- ‘‘(B) the District of Columbia Enterprise scriber who is utilizing such services, and served area which is not a saturated market, Zone established under section 1400, ‘‘(ii) in a manner substantially the same as and ‘‘(C) a renewal community designated such services are provided by the provider to ‘‘(B) with respect to the provision of next under section 1400E, or subscribers through equipment with respect generation broadband services— ‘‘(D) a low-income community designated to which no credit is allowed under sub- ‘‘(i) a nonresidential subscriber maintain- section (a)(1). ing a permanent place of business in a rural under section 45D. ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN INTO area or underserved area, or ‘‘(25) UNDERSERVED SUBSCRIBER.—The term ACCOUNT.—Except as provided in subpara- ‘‘(ii) a residential subscriber. ‘underserved subscriber’ means a residential subscriber residing in a dwelling located in graph (C) or (D), equipment shall be taken ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term into account under subparagraph (A) only to ‘residential subscriber’ means an individual an underserved area or nonresidential sub- the extent it— who purchases broadband services which are scriber maintaining a permanent place of ‘‘(i) extends from the last point of switch- delivered to such individual’s dwelling. business located in an underserved area. ing to the outside of the unit, building, ‘‘(17) RURAL AREA.—The term ‘rural area’ ‘‘(f) DESIGNATION OF CENSUS TRACTS.—The dwelling, or office owned or leased by a sub- means any census tract which— Secretary shall, not later than 90 days after scriber in the case of a telecommunications ‘‘(A) is not within 10 miles of any incor- the date of the enactment of this section, carrier, porated or census designated place con- designate and publish those census tracts ‘‘(ii) extends from the customer side of the taining more than 25,000 people, and meeting the criteria described in paragraphs mobile telephone switching office to a trans- ‘‘(B) is not within a county or county (17), (20), and (24) of subsection (e). In making mission/receive antenna (including such an- equivalent which has an overall population such designations, the Secretary shall con- tenna) owned or leased by a subscriber in the density of more than 500 people per square sult with such other departments and agen- case of a commercial mobile service carrier, mile of land. cies as the Secretary determines appro- ‘‘(iii) extends from the customer side of the ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural priate.’’. headend to the outside of the unit, building, subscriber’ means a residential subscriber re- dwelling, or office owned or leased by a sub- siding in a dwelling located in a rural area or (b) CREDIT TO BE PART OF INVESTMENT scriber in the case of a cable operator or nonresidential subscriber maintaining a per- CREDIT.—Section 46 (relating to the amount open video system operator, or manent place of business located in a rural of investment credit) is amended by striking ‘‘(iv) extends from a transmission/receive area. ‘‘and’’ at the end of paragraph (2), by strik- ing the period at the end of paragraph (3) and antenna (including such antenna) which ‘‘(19) SATELLITE CARRIER.—The term ‘sat- transmits and receives signals to or from ellite carrier’ means any person using the fa- inserting ‘‘, and’’, and by adding at the end multiple subscribers, to a transmission/re- cilities of a satellite or satellite service li- the following: ceive antenna (including such antenna) on censed by the Federal Communications Com- ‘‘(4) the broadband credit.’’ the outside of the unit, building, dwelling, or mission and operating in the Fixed-Satellite (c) SPECIAL RULE FOR MUTUAL OR COOPERA- office owned or leased by a subscriber in the Service under part 25 of title 47 of the Code TIVE TELEPHONE COMPANIES.—Section case of a satellite carrier or other wireless of Federal Regulations or the Direct Broad- 501(c)(12)(B) (relating to list of exempt orga- carrier, unless such other wireless carrier is cast Satellite Service under part 100 of title nizations) is amended by striking ‘‘or’’ at the also a telecommunications carrier. 47 of such Code to establish and operate a end of clause (iii), by striking the period at ‘‘(C) PACKET SWITCHING EQUIPMENT.—Pack- channel of communications for distribution the end of clause (iv) and inserting ‘‘, or’’, et switching equipment, regardless of loca- of signals, and owning or leasing a capacity and by adding at the end the following: tion, shall be taken into account under sub- or service on a satellite in order to provide ‘‘(v) from the sale of property subject to a paragraph (A) only if it is deployed in con- such distribution. lease described in section 48A(c)(2)(B), but nection with equipment described in sub- ‘‘(20) SATURATED MARKET.—The term ‘satu- only to the extent such income does not in paragraph (B) and is uniquely designed to rated market’ means any census tract in any year exceed an amount equal to the perform the function of packet switching for which, as of the date of the enactment of credit for qualified expenditures which would current generation broadband services or this section— be determined under section 48A for such next generation broadband services, but only ‘‘(A) current generation broadband services year if the mutual or cooperative telephone if such packet switching is the last in a se- have been provided by one or more providers company was not exempt from taxation and ries of such functions performed in the trans- to 85 percent or more of the total number of was treated as the owner of the property sub- mission of a signal to a subscriber or the potential residential subscribers residing in ject to such lease.’’.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4637 Sfmt 0634 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S186 CONGRESSIONAL RECORD — SENATE January 28, 2002 (d) CONFORMING AMENDMENT.—The table of DEPARTMENT OF TRANSPORTATION ORDERS FOR TUESDAY, JANUARY sections for subpart E of part IV of sub- John Magaw, of Maryland, to be Under 29, 2002 chapter A of chapter 1 is amended by insert- Secretary of Transportation for Security for Mr. REID. Mr. President, I ask unan- ing after the item relating to section 48 the a term of five years. following: imous consent that when the Senate f ‘‘Sec. 48A. Broadband credit.’’. completes its business today, it ad- (e) REGULATORY MATTERS.— LEGISLATIVE SESSION journ until the hour of 10:30 a.m. on (1) PROHIBITION.—No Federal or State agen- The PRESIDING OFFICER. The Sen- Tuesday, January 29; that following cy or instrumentality shall adopt regula- ate will now return to legislative ses- the prayer and the pledge, the Journal tions or ratemaking procedures that would sion. of proceedings be approved to date, the have the effect of confiscating any credit or morning hour be deemed expired, the portion thereof allowed under section 48A of f time for the two leaders be reserved for the Internal Revenue Code of 1986 (as added VALUATION OF NONTRIBAL INTER- their use later in the day, and that the by this section) or otherwise subverting the EST OWNERSHIP OF SUB- Senate be in a period for morning busi- purpose of this section. SURFACE RIGHTS WITHIN (2) TREASURY REGULATORY AUTHORITY.—It ness until 11 a.m., with Senators per- is the intent of Congress in providing the BOUNDARIES OF ACOMA INDIAN mitted to speak for up to 10 minutes broadband credit under section 48A of the In- RESERVATION each; further, that at 11 a.m., the Sen- ternal Revenue Code of 1986 (as added by this Mr. REID. Mr. President, I ask unan- ate resume consideration of H.R. 622, section) to provide incentives for the pur- imous consent that the Committee on with the Durbin amendment pending; chase, installation, and connection of equip- that there be 30 minutes of debate on ment and facilities offering expanded Indian Affairs be discharged from fur- ther consideration of H.R. 1913, and the amendment equally divided in the broadband access to the Internet for users in usual form, prior to a vote in relation certain low income and rural areas of the that the Senate proceed to its imme- United States, as well as to residential users diate consideration. to the amendment, with no second-de- nationwide, in a manner that maintains The PRESIDING OFFICER. Without gree amendments in order prior to the competitive neutrality among the various objection, it is so ordered. vote; further, that the Senate recess classes of providers of broadband services. The clerk will report the bill by title. from 12:30 p.m. to 2:15 p.m. for the Accordingly, the Secretary of the Treasury The assistant legislative clerk read weekly party conferences. shall prescribe such regulations as may be as follows: The PRESIDING OFFICER. Without necessary or appropriate to carry out the objection, it is so ordered. purposes of section 48A of such Code, includ- A bill (H.R. 1913) to require valuation of ing— nontribal ownership of subsurface rights f (A) regulations to determine how and when within the boundaries of the Acoma Indian a taxpayer that incurs qualified expenditures Reservation, and for other purposes. PROGRAM satisfies the requirements of section 48A of There being no objection, the Senate Mr. REID. Mr. President, we can ex- such Code to provide broadband services, and proceeded to consider the bill. pect a full day tomorrow. We should (B) regulations describing the information, Mr. REID. Mr. President, I ask unan- have some votes after this one in the records, and data taxpayers are required to afternoon. In addition, we are going to provide the Secretary to substantiate com- imous consent that the bill be read the pliance with the requirements of section 48A third time and passed the motion to re- be honored by the appearance of the of such Code. consider be laid upon the table with no President to give his State of the Until the Secretary prescribes such regula- intervening action or debate, and that Union speech tomorrow evening. tions, taxpayers may base such determina- any statements relating to the bill be f tions on any reasonable method that is con- printed in the RECORD. sistent with the purposes of section 48A of The PRESIDING OFFICER. Without ADJOURNMENT UNTIL 10:30 A.M. such Code. objection, it is so ordered. TOMORROW (f) EFFECTIVE DATE.—The amendments The bill (H.R. 1913) was read the third Mr. REID. If there is no further busi- made by this section shall apply to expendi- time and passed. tures incurred after December 31, 2001, and ness to come before the Senate, I ask before January 1, 2003. f unanimous consent that the Senate stand in adjournment under the pre- f FEASIBILITY STUDIES OF WATER RESOURCE PROJECTS IN THE vious order. There being no objection, the Senate, EXECUTIVE SESSION STATE OF WASHINGTON at 6:47 p.m., adjourned until Tuesday, Mr. REID. Mr. President, I ask unan- January 29, 2002, at 10:30 a.m. imous consent that the Committee on EXECUTIVE CALENDAR AND Indian Affairs be discharged from fur- f DISCHARGE ther consideration of H.R. 1937, and NOMINATIONS that the Senate proceed to its imme- Mr. REID. Mr. President, I ask unan- Executive nominations received by diate consideration. imous consent that the Senate proceed the Senate January 28, 2002: to executive session to consider Cal- The PRESIDING OFFICER. Without DEPARTMENT OF JUSTICE endar No. 637, and that the Commerce objection, it is so ordered. The clerk will report the bill by title. PAUL I. PEREZ, OF FLORIDA, TO BE UNITED STATES Committee be discharged from further ATTORNEY FOR THE MIDDLE DISTRICT OF FLORIDA, FOR consideration of the nomination of The assistant legislative clerk read THE TERM OF FOUR YEARS, VICE DONNA A. BUCELLA, as follows: RESIGNED. John McGaw to be Under Secretary of ROSLYNN R. MAUSKOPF, OF NEW YORK, TO BE UNITED Transportation for Security; that the A bill (H.R. 1937) to authorize the Sec- STATES ATTORNEY FOR THE EASTERN DISTRICT OF NEW retary of the Interior to engage in certain YORK FOR THE TERM OF FOUR YEARS, VICE LORETTA E. nominations be confirmed, the motions LYNCH, RESIGNED. feasibility studies of water resource projects to reconsider be laid upon the table the IN THE COAST GUARD President be immediately notified of in the State of Washington. THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT the Senate’s action; that any state- There being no objection, the Senate TO THE GRADE INDICATED IN THE UNITED STATES ments relating to the nominations be proceeded to consider the bill. COAST GUARD UNDER TITLE 14, U.S.C., SECTION 211: printed in the RECORD; and that the Mr. REID. Mr. President, I ask unan- To be lieutenant commander Senate return to legislative business. imous consent that the bill be read the DAVID W LUNT, 0000 The PRESIDING OFFICER. Without third time and passed, the motion to To be lieutenant reconsider be laid upon the table with objection, it is so ordered. JONATHAN A ALEXANDER, 0000 The nominations considered and con- no intervening action or debate, and MICHELLE C BAS, 0000 that any statements relating to the CURTIS E BORLAND, 0000 firmed are as follows: RACHAEL B BRALLIAR, 0000 INTER-AMERICAN DEVELOPMENT BANK bill be printed in the RECORD. CHARLOTTE B BROGA, 0000 The PRESIDING OFFICER. Without KEVIN F BRUEN, 0000 Jorge L. Arrizurieta, of Florida, to be JOSEPH M CARROLL, 0000 United States Alternate Executive Director objection, it is so ordered. STEPHEN H CHAMBERLIN, 0000 The bill (H.R. 1937) was read the third ROCKY L COLE, 0000 of the Inter-American Development Bank, ISMAEL CURET, 0000 vice Lawrence Harrington. time and passed. DIMITRI A DELGADO, 0000

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4637 Sfmt 9801 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S187 KEVIN M DEUSTACHIO, 0000 RADIAH M JONES, 0000 To be colonel DAWN A DUGGER, 0000 JONATHAN P JORGENSEN, 0000 LOREN A FRIEDEL, 0000 WARREN D JUDGE, 0000 TIMOTHY S. CLASEMAN, 0000 LAWRENCE E GREENE, 0000 WAYNE E KEAN, 0000 CORYDON L. DOERR, 0000 SCOTT C HALE, 0000 WHITNEY S KEITH, 0000 RANDALL C. DUNCAN, 0000 MARC A HAWKINS, 0000 CHRISTOPHER J KENDALL, 0000 JOHN R. EMBRY, 0000 TYRONE L JONES, 0000 EDWARD A KESLER, 0000 GRANT R. HARTUP, 0000 VIRGINIA J KAMMER, 0000 CHAD A KINGSBURY, 0000 GARY C. MARTIN, 0000 JOSEPH F LECATO, 0000 WADE S KIRSCHNER, 0000 ERIK J. MEYERS, 0000 CAROLYN L LEONARDCHO, 0000 BRIAN G KNAPP, 0000 KEVIN M. NOALL, 0000 DAVID E OCONNELL, 0000 THOMAS E KUHAR, 0000 CHARLES A. POWELL, 0000 JOHN C REARDON, 0000 KEN KUSANO, 0000 DOUGLAS C. WILSON, 0000 KRISTEN A ROMAO, 0000 JOSEPH T LALLY, 0000 JOSEPH R SIEMIATKOWSKI, 0000 ERIK LASALLE, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT ROBERT J VOLPE, 0000 TIMOTHY R LAVIER, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR ANTHONY E WALKER, 0000 ANDREW A LAWRENCE, 0000 FORCE UNDER TITLE 10, U.S.C., SECTION 624: DANIEL F LEARY, 0000 To be lieutenant junior grade LYNDA C LECRONE, 0000 To be major CHRISTOPHER E LEE, 0000 MICHAEL N ADAMS, 0000 MICHAEL D LENDVAY, 0000 KATHRYN L. AASEN, 0000 RODERICK D ADAMS, 0000 DONNA D LEOCE, 0000 JAVAD S. AGHALOO, 0000 TODD W ANDERSON, 0000 CHAD A LONG, 0000 MELANIE D. ALLGEYER, 0000 RALPH P ANGUIANO, 0000 JOHN H LOVEJOY, 0000 BRANT W. BOLING, 0000 JOHN D ANNONEN, 0000 MIGUEL A LUMBAG, 0000 BRENT J. BRADLEY, 0000 WALTER J ARMSTRONG, 0000 ALAN B MCCABE, 0000 CHOL H. CHONG, 0000 GRETCHEN M BAILEY, 0000 KEVIN J MCCORMACK, 0000 KIMBERLY Y. CHRISTIAN, 0000 KLAUS J BARBOZA, 0000 STEVEN J MCKECHNIE, 0000 MICHAEL E. CRABTREE, 0000 PATRICK T BARELLI, 0000 MICHAEL J MCNEIL, 0000 SOHEILA F. DEGIEUX, 0000 KEVIN M BARRES, 0000 TERESA A MCTEAR, 0000 ANNETTE G. DUNFORD, 0000 ROBERT B BARTHELMES, 0000 AARON R MEADOWSHILLS, 0000 HOLLY V. ELLENBERGER, 0000 ADAM G BENTLY, 0000 MICHAEL L MEDICA, 0000 GORDON C. FRASER JR., 0000 MICHAEL J BERGMAN, 0000 JASON L MENAPACE, 0000 PAUL A. GAGNON, 0000 KEVIN C BERRY, 0000 TODD S MIKOLOP, 0000 JOHN P. GONZALES, 0000 KERRY R BLOUNT, 0000 KENNETH V MILLS, 0000 ALICIA D. GUTH, 0000 JAMES W BOLDEN, 0000 MARCUS A MITCHELL, 0000 OLAF J. HAERENS, 0000 MARA M BOOTHMILLER, 0000 JOHN H MIXSON, 0000 MICHAEL C. HARMS, 0000 RALPH J BOYES, 0000 SIMONE R MOORE, 0000 SCOTT K. HETZ, 0000 MATTHEW A BRADEN, 0000 ALAN H MOORE, 0000 BRENT L. KINCAID, 0000 NELSON J BRANDT, 0000 ELLIS H MOOSE, 0000 JAMES M. KUTNER, 0000 CHARLES J BRIGHT, 0000 VICKIE J NEBLOCK, 0000 JEFFREY K. LADINE, 0000 MATTHEW T BROWN, 0000 KRISTINE B NEELEY, 0000 GEORGE R. LAWLEY, 0000 ROY R BRUBAKER, 0000 RAYMOND NEGRON, 0000 DAVID P. LEE, 0000 MATTHEW D BUCKINGHAM, 0000 BRADLEY D NEWBERRY, 0000 GIANG K. LOI, 0000 RICHARD F CALVERT, 0000 LUIS C PARRALES, 0000 MICHAEL D. LOURIA, 0000 ERIC R CASLER, 0000 JEFFREY S PEARSON, 0000 TODD T. MATSUMOTO, 0000 CHRISTOPHER R CEDERHOLM, 0000 LATASHA E PENNANT, 0000 PEREZ MILDRED YO PAGAN, 0000 WALTER CHUBRICK, 0000 PATRICK F PESCHKA, 0000 TIMOTHY B. PAULIN, 0000 HECTOR L CINTRON, 0000 DOUGLAS C PETRUSA, 0000 MICHAEL R. PICHARDO, 0000 BRYAN E CLAMPITT, 0000 THOMAS S PHILBRICK, 0000 DONNA A. PITTER, 0000 JEFFREY S CLARK, 0000 KEITH J PIERRE, 0000 MARK B. RANZINGER, 0000 KIRSTEN R CODEL, 0000 WILLIE E PITTMAN, 0000 ZINDELL RICHARDSON, 0000 BRADLEY C COOK, 0000 CHARLOTTE E PITTMAN, 0000 KEVIN J. STANGER, 0000 PETER A COOK, 0000 KENNETH R POST, 0000 MICHAEL R. SUHLER, 0000 LETICIA I CORALIN, 0000 SCOTT B POWERS, 0000 DAVID R. SWENSON, 0000 NATHAN E COULTER, 0000 ALISA L PRASKOVICH, 0000 ELIZABETH M. TANDY, 0000 JOANDREW D COUSINS, 0000 TODD E RAYBON, 0000 RICHARD D. TOWNSEND, 0000 JAMES E REYNOLDS, 0000 DIANA J CRANSTON, 0000 MICHAEL L. UMBERGER, 0000 VICTOR F RIVERA, 0000 DERRICK J CROINEX, 0000 HENRY D. WATZL, 0000 LUIS J RODRIGUEZ, 0000 WILLIAM M DANIELS, 0000 JOHN J. WIDLAK JR., 0000 KUNSTLER D RUSSELL, 0000 SHAWN E DECKER, 0000 JUSTIN N. ZUMSTEIN, 0000 FRANCIS J DELROSSO, 0000 JERREL W RUSSELL, 0000 STEPHEN A DEVEREUX, 0000 DAVID B SALCIDO, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT BRIAN T DEVRIES, 0000 DAMON C SANDERS, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR RADFORD A DEW, 0000 MICHELE L SCHALLIP, 0000 FORCE AND FOR REGULAR APPOINTMENT (IDENTIFIED JOSE E DIAZ, 0000 CHRISTINA M SCHULTZ, 0000 BY AN ASTERISK (*)) UNDER TITLE 10, U.S.C., SECTIONS MELISSA DIAZ, 0000 ANITA M SCOTT, 0000 624 AND 531: FRED W SEATON, 0000 KEITH M DONOHUE, 0000 WILLIAM E SEWARD, 0000 JANINE E DONOVAN, 0000 To be colonel HOLLY L SHAFFNER, 0000 ERIC D DREY, 0000 GREGORY J SILVA, 0000 MIA P DUTCHER, 0000 RICHARD E. BACHMANN JR., 0000 DANIEL J SILVESTRO, 0000 TIMOTHY W EASON, 0000 * WILLIAM H. BARTH JR., 0000 PETER J SIMONDS, 0000 SAMUEL O EAST, 0000 CATHERINE E. BIERSACK, 0000 ERIC A SMITH, 0000 JAMES P EILAND, 0000 * DOUGLAS F. BOLDA, 0000 KEVIN J SMITH, 0000 JOSEPH P ESMERADO, 0000 GEORGE T. BOLTON, 0000 CASSEE J SOCHA, 0000 JANET D ESPINOYOUNG, 0000 MARK W. BOWYER, 0000 ANTONIO R SOLIZ, 0000 DEBORAH N. BURGESS, 0000 SHAWN G ESSERT, 0000 DOUGLAS K STARK, 0000 MATTHEW R FARNEN, 0000 * YVONNE D. CAGLE, 0000 STEVEN M STEWART, 0000 JUNE A. CARRAHER, 0000 JOHN M FEREBEE, 0000 BENJAMIN F STRICKLAND, 0000 TODD A FISHER, 0000 DOUGLAS J. CHADBOURNE, 0000 VASILIOS TASIKAS, 0000 * JOHN T. CINCO, 0000 TAMARA L FLOODINE, 0000 SOLOMON C THOMPSON, 0000 KEVIN D FLOYD, 0000 JOSEPH D. DYE, 0000 MATTHEW A THOMPSON, 0000 ANN E. FARASH, 0000 JAMES G FORGY, 0000 SOL A TILLETT, 0000 THOMAS R FOSTER, 0000 CHARLES R. FISHER JR., 0000 BART K TOMERLIN, 0000 * STEVEN C. HADLEY, 0000 TED R FOWLES, 0000 RUSSELL R TORGERSON, 0000 PAUL E FRANTZ, 0000 DAN R. HANSEN, 0000 ANDRE P TOWNER, 0000 GILBERT R. HANSEN, 0000 RICHARD F FREED, 0000 ALLEN R TURNER, 0000 * JAMES H. HENDERSON II, 0000 CHRISTOPHER J GAGNON, 0000 CARISSA A VANDERMEY, 0000 JAMES H. HERIOT, 0000 PAMELA P GARCIA, 0000 VINCENT W VANNESS, 0000 BRUCE T. HEWETT, 0000 ELISA M GARRITY, 0000 GUILLERMO VEGA, 0000 BART O. IDDINS, 0000 JOSEPH W GASKILL, 0000 SANDRA J WALLER, 0000 ROBERT R. IRELAND, 0000 MARK A GIBBS, 0000 ROBERT B WALLS, 0000 TIMOTHY J. LADNER, 0000 ERROL M GLENN, 0000 DOUGLAS G WATSON, 0000 CHRISTOPHER J. LISANTI, 0000 WADE W GOUGH, 0000 EDWARD A WIELAND, 0000 KAREN M. MATHEWS, 0000 TIMOTHY J GRANT, 0000 DAMON A WILLIAMS, 0000 PAUL S. MUELLER, 0000 SHAWN C GRAY, 0000 KEVIN M WILSON, 0000 DANIEL W GRAY, 0000 MARY A WYSOCK, 0000 KEVIN J. OTOOLE, 0000 DIANE E GREENTREE, 0000 MARTIN G. OTTOLINI, 0000 ROBERT T GRIFFIN, 0000 IN THE AIR FORCE * PETER S. PALKA, 0000 * DENNIS PEARMAN, 0000 JASON B GUNNING, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT JEFFREY J. PELTON, 0000 LOUIS E GUTIERREZ, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR ARNYCE R. POCK, 0000 JOHN K HAHN, 0000 FORCE UNDER TITLE 10, U.S.C., SECTION 624: KEVIN J HALL, 0000 STEVEN M. PRINCIOTTA, 0000 KEITH T HANLEY, 0000 To be lieutenant colonel * ADIN T. PUTNAM II, 0000 CAROL S. RAMSEY, 0000 CHARLES W HAWKINS, 0000 VINCENT G. DEBONO JR., 0000 MICHAEL L HERRING, 0000 * EDMUND S. SABANEGH JR., 0000 MARK W. DEVANE, 0000 * PATRICK R. STORMS, 0000 JON D HILL, 0000 DAVID J. DINTAMAN, 0000 TOBY L HOLDRIDGE, 0000 KEN M. TASHIRO, 0000 DAVID A. HORWITZ, 0000 LAURA A. TORRESREYES, 0000 JAMES E HOLLINGER, 0000 ROBERT H. HRABE, 0000 ROBERT B HOLLIS, 0000 WILLIAM J. VALKO, 0000 JACK L. LESHO, 0000 CHRISTOPHER S. WILLIAMS, 0000 BRIAN P HOPKINS, 0000 BRIAN P. OREAR, 0000 DARREN A HOPPER, 0000 MYGLEETUS W. WRIGHT, 0000 TODD M. POST, 0000 DONALD R. YOHO JR., 0000 CHRISTOPHER M HUBERTY, 0000 MARIE A. REVAK, 0000 STEPHEN B JAUDON, 0000 AMY M. ROWE, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT STARLING S JINRIGHT, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR BRYAN D JOHNSON, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT FORCE AND FOR REGULAR APPOINTMENT (IDENTIFIED ALYSSA M JOHNSONVERNON, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR BY AN ASTERISK (*)) UNDER TITLE 10, U.S.C., SECTIONS DAVID M JOHNSTON, 0000 FORCE UNDER TITLE 10, U.S.C., SECTION 624: 624 AND 531:

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4637 Sfmt 9801 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S188 CONGRESSIONAL RECORD — SENATE January 28, 2002 To be lieutenant colonel * JENNIFER M. RHODE, 0000 MELIA K. COX, 0000 PHILLIP C. RIDDLE, 0000 MICHAEL K. J. COZZI, 0000 * MELISSA A. AERTS, 0000 DAMIAN M. RISPOLI, 0000 RICHARD A. CROSS, 0000 JOHN R. ANDRUS, 0000 *BARBARA LYNN ROACH, 0000 ADEBAYO O. CROWNSON, 0000 * BRYAN N. ANGLE, 0000 *ANTHONY S. ROBBINS, 0000 PATRICK J. DANAHER, 0000 * JIMMIE D. BAILEY II, 0000 *DAVID M. ROSE, 0000 TODD E. DANTZLER, 0000 * TIMOTHY D. BALLARD, 0000 *PETER W. ROSS, 0000 LAKEISHA R. DAVIS, 0000 * DANIEL J. BALOG, 0000 LEE G. SALTZGABER, 0000 CYNTHIA J. DECHENES, 0000 * MARY E. BANE, 0000 *ROGER W. SATTERTHWAITE, 0000 ROWLAND SARAH A. DELANEY, 0000 * DAVID R. BARNARD, 0000 TOM J. SAUERWEIN, 0000 KEITH S. DICKERSON, 0000 * JOHN R. BENNETT, 0000 *RUSSELL D. SCHROEDER, 0000 MARK H. DICKIE, 0000 DANNY P. BERK, 0000 CHUNG M. SIEDLECKI, 0000 JENNIFER J. DISCHEL, 0000 * LEROY G. BEYER JR., 0000 *KINGSAU SIU, 0000 SUSAN A. DOTZLER, 0000 JAY T. BISHOFF, 0000 BRYNNE B. STANDAERT, 0000 PABLO J. DUBON, 0000 * MATTHEW F. BITNER, 0000 RICHARD E. STANDAERT JR., 0000 SARAH E. DUCHARME, 0000 MICHAEL L. BLEDSOE, 0000 *STEVEN G. SUTTON, 0000 RICHARD L. DUNBAR, 0000 * WILLIAM T. BOLEMAN, 0000 *TODD C. SWATHWOOD, 0000 ELIZABETH A. DURKIN, 0000 * JEFFREY R. BORIS, 0000 *NEAL R. TAYLOR, 0000 DAVID J. DUVAL, 0000 * MARK A. BRADSHAW, 0000 *DAN E. THOMAS, 0000 DAVID V. EASTHAM, 0000 * CHRISTOPHER K. BREUER, 0000 *CHRISTOPHER M. THOMPSON, 0000 DEBORAH L. EBERT, 0000 JONATHAN W. BRIGGS, 0000 *GREGORY E. THOMPSON, 0000 KRISTY D. EDWARDS, 0000 * DIANA P. BROOMFIELD, 0000 *GEOFFREY Y. TOM, 0000 WILLIAM F. EDWARDS, 0000 * JAMES P. BROWN, 0000 *DAVID R. TRIGG, 0000 PATRICK T. EITTER, 0000 * MARKHAM J. BROWN, 0000 HORACE TSU, 0000 CAROL J. ELNICKY, 0000 * LINDA J. BROWNE, 0000 *JOHN J. TUCHER, 0000 RONALD W. ENGLAND, 0000 * JOHN G. BUCK, 0000 JEFF P. VISTA, 0000 CHARLES P. FAY, 0000 * RICARDO M. BUENAVENTURA, 0000 *DAVID M. WALKER, 0000 KENNETH H. FERGUSON, 0000 * LAWRENCE T. BURD, 0000 *ANDREW J. WALTER, 0000 JOHN J. FINK, 0000 EDWIN K. BURKETT, 0000 *OLGA I. WASILE, 0000 GINA M. FIORITI, 0000 * ONIE BUSSEY, 0000 BILL P. WATSON, 0000 AMY E. FLEMING, 0000 * JOSEPH A. BUZOGANY, 0000 GERALD S. WELKER, 0000 JULIANNE FLYNN, 0000 * DANILO O. CANLAS, 0000 *LEROY C. WHITE, 0000 CHERYL L. FOLSON, 0000 * JAMES W. CARPENTER, 0000 DONALD S. WIERSMA, 0000 LINDA K. FOX, 0000 * FRANCISCO G. CARPIO, 0000 JANET L. WILKINSON, 0000 JEFFREY M. FREED, 0000 * TODD E. CARTER, 0000 *LAROY E. WILLIAMS, 0000 BRETON C. FREITAG, 0000 BLAKE V. CHAMBERLAIN, 0000 CEDRIC L. WONG, 0000 JAMES K. FROST, 0000 * DAVID L. CHIN, 0000 *W. PRESTON WOODALL JR., 0000 MELECIA FUENTES, 0000 * DONALD E. CHRISTENSEN, 0000 *STEVEN P. WORATYLA, 0000 ROBERT D. GARRISON, 0000 DAVID R. CONDIE, 0000 RANDALL C. ZERNZACH, 0000 JAY D. GEOGHAGAN, 0000 * JACQUES S. COUSINEAU, 0000 RICHARD M. ZWIRKO, 0000 CHRISTOPHER W. GLANTON, 0000 * GEOFFREY W. CRAWLEY, 0000 JOHN G. GODDARD, 0000 JEFFREY M. CUSICK, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT ALLAN C. GOLDING, 0000 RONALD N. DELANOIS, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR ERIC R. GOLDMAN, 0000 ROY J. DILEO, 0000 FORCE UNDER TITLE 10, U.S.C., SECTION 624: RONALD A. GOSNELL, 0000 * THOMAS M. DYE, 0000 To be major MATTHEW A. GRAVES, 0000 BRUCE M. EDWARDS, 0000 DAVID E. GRAYSON, 0000 * PETER G. EHRNSTROM, 0000 TODD E. ABBOTT, 0000 JEREMY M. GROLL, 0000 * ROLAND E. ENGEL, 0000 JASON D. ADAMS, 0000 MARY L. GUYE, 0000 IREL S. EPPICH, 0000 DEMETRIO J. AGUILA III, 0000 GREGORY J. HAACK, 0000 * MICHAEL J. EPPINGER, 0000 GAIL M. AHLQUIST, 0000 RICHARD G. HALL, 0000 * GAIL D. FANCHER, 0000 DEBORAH D. ALBRIGHT, 0000 MARK W. HAMRA, 0000 DANIEL J. FEENEY, 0000 MICHAEL E. ALLOWAY, 0000 PAUL F. HANLEY, 0000 * EDWARD L. FIEG, 0000 DAURI Z. ALVAREZ, 0000 WILLIAM N. HANNAH JR., 0000 * MICHAEL D. FIELDS, 0000 JOSEPH AMATO, 0000 PETER R. HARDING, 0000 * OCLLA M. FLETCHER, 0000 MICHAEL B. ANDERSON, 0000 LON A. HASKELL, 0000 DAVID R. FOSS, 0000 SHARE DAWN P. ANGEL, 0000 BERT T. HAWKINS, 0000 KEVIN J. FRANKLIN, 0000 MARK A. ANTONACCI, 0000 BRIAN J. HELLER, 0000 * MICHAEL D. FUGIT, 0000 ERIC O. APPELGREN, 0000 KEVIN J. HELMRICK, 0000 BARRY L. GARDNER, 0000 GUY C. ASHER JR., 0000 TRAVIS B. HENDERSON, 0000 * DAVID GARRETT JR., 0000 ADRIENNE W. ASKEW, 0000 GREGORY L. HESS, 0000 * JOSEPH A. GIOVANNINI, 0000 EZELL ASKEW JR., 0000 MICHAEL J. HIGGINS, 0000 * STEVEN P. GOFF, 0000 RAUL E. AYALA, 0000 HOWARD HOFFMAN, 0000 * TIMOTHY P. GREYDANUS, 0000 KERRI L. BADEN, 0000 MARK E. HOGGAN, 0000 * CYNTHIA L. GRYBOSKI, 0000 CHRISTOPHER W. BALLARD, 0000 SHANNON D. HOIME, 0000 * NELS C. GUNNARSEN, 0000 MICHELLE R. BARG, 0000 PHILIP H. HOPP, 0000 * YVETTE GUZMAN, 0000 BRETON F. BARRIER, 0000 SEAN P. HURLEY, 0000 * RYAN T. HAGINO, 0000 MICHAEL C. BARROWS, 0000 VICTOR M. IERULLI, 0000 * KEVIN D. HALOW, 0000 DEVIN C. BATEMAN, 0000 DAVID C. IVES, 0000 * TYLER E. HARRIS, 0000 ROBERT R. BATES JR., 0000 EDWARD L. JACKSON, 0000 JAMES W. HAYNES, 0000 SHERREEN G. BATTS, 0000 SCOTT R. JACOB, 0000 AUGUST S. HEIN, 0000 GREGORY H. BEAN, 0000 JULIET C. JACOBSEN, 0000 * DEBBIE L. HEIT, 0000 JONATHAN D. BECK, 0000 WILL V. JEFFERS, 0000 * KATHRYN K. HOLDER, 0000 DEVIN P. BECKSTRAND, 0000 KATHY J. JOERS, 0000 * II CHARLES HOPE, 0000 MARTIN J. BELL, 0000 JON M. JOHNSON, 0000 * DANILO H. HOYUMPA, 0000 LESLIE A. BENTINGANAN, 0000 JOSEPH C. JOHNSONWALL, 0000 * MARK E. HUBNER, 0000 JENNIFER L. BEPKO, 0000 RONALD B. JOHNSTON JR., 0000 * JAMES P. ICE, 0000 STEPHEN J. BEPKO, 0000 DANIEL E. KAHN, 0000 * MICHAEL S. JAFFEE, 0000 BRIANA C. BEREZOVYTCH, 0000 HYON SIK SCOTT KANG, 0000 * DAVID J. JASKIERNY, 0000 MARDI J. BISHOP, 0000 TRICIA L. KEEFE, 0000 * DANIEL JOHNSON, 0000 ALEXANDER B. BLACK, 0000 MELISSA M. KEMPF, 0000 NEIL L. JORGENSEN, 0000 CELESTE S. BLANKEN, 0000 JASIRI KENNEDY, 0000 CAESAR A. JUNKER, 0000 STEPHEN R. BODEN, 0000 PETER H. KIM, 0000 * INEZ M. KELLEHER, 0000 THOMAS P. BODINE, 0000 MARK W. KLEVE, 0000 * AMIR I. KENDE, 0000 HENRY A. BOILINI, 0000 SCOTT E. KNUTSON, 0000 * JEFFREY D. KERBY, 0000 KURT R. BOLIN, 0000 DAYTON S. KOBAYASHI, 0000 COLIN M. KINGSTON, 0000 MATTHEW R. BONZANI, 0000 CRAIG A. KOVITZ, 0000 * JANE K. R. KLINGENBERGER, 0000 ALOK K. BOSE, 0000 KEVIN W. KULOW, 0000 * DAVID L. KUTZ, 0000 SEAN E. BOURKE, 0000 MICAL J. KUPKE, 0000 * KRISTEN LANCASTERWEISS, 0000 MAURA BRADLEY, 0000 JIMMY J. S. LAU, 0000 * GEORGE S. LAW, 0000 JASON S. BRADT, 0000 RICHARD R. LAUE, 0000 * KEITH W. LAWHORN, 0000 WILLIAM L. BRAY, 0000 ERIC L. LEAN, 0000 * TIMOTHY W. LINEBERRY, 0000 JOHN C. BREWER, 0000 EVAN W. LEE JR., 0000 TIMOTHY L. LONGACRE, 0000 JAMIE L. BROUGHTON, 0000 BRENT P. LEEDLE, 0000 DON C. LOOMER, 0000 MARILYN A. BROWN, 0000 VALERIE M. LEIS, 0000 * DOUGLAS A. LOUGEE, 0000 SCOTT G. BRYK, 0000 JOHN R. LEISEY, 0000 FELIX MAMANI, 0000 ROBERT J. BUCK III, 0000 MELANIE L. LEU, 0000 JEFFREY A. MARCHESSAULT, 0000 JEFFREY S. BUI, 0000 COREY B. LEWIS, 0000 * JAMES E. MC CRARY, 0000 VANCE R. BURNS, 0000 RALPH R. LIM JR., 0000 * BRUCE H. MC FALL, 0000 STEPHEN L. BUSHAY, 0000 JEREMY D. LLOYD, 0000 * SCOTT E. MC GUIRE, 0000 JONATHAN W. BUTTRAM, 0000 HEATHER NYE LORENZO, 0000 * GREGORY J. MORSE, 0000 DARREN E. CAMPBELL, 0000 MATTHEW B. LOVATO, 0000 * KEVIN L. MORTARA, 0000 HUBERT J. M. CANTAVE, 0000 KIMBERLY A. LOVETT, 0000 * ERIC A. NELSON, 0000 THOMAS J. CANTILINA, 0000 THOMAS R. LOWRY, 0000 RICHARD H. NGUYEN, 0000 WADE D. CARLSON, 0000 SALVATORE J. LUCIDO, 0000 * STEVEN A. NGUYEN, 0000 KELLEY ANN CAROTHERS, 0000 KEVIN R. LUSK, 0000 * CHRISTOPHER A. NUSSER, 0000 MATTHEW A. CARRELL, 0000 MARK D. LYMAN, 0000 * LAWRENCE R. NYCUM, 0000 MICHAEL C. CASCIELLO, 0000 MICHAEL J. LYONS, 0000 * CHRISTOPHER G. PALMER, 0000 JOHN C. CHANEY, 0000 MIKELLE A. MADDOX, 0000 * DAMIAN PAONESSA, 0000 ALBERT Y. CHEN, 0000 GEORGE V. MANAHAN, 0000 ANJA A. PATTONEVANS, 0000 JASON J. CHO, 0000 ARA M. MARANIAN, 0000 * HAI V. PHAM, 0000 NICOLA A. CHOATE, 0000 BRIAN D. MARRIOTT, 0000 * THOMAS R. PIAZZA, 0000 DARBY A. CLAYSON, 0000 SHERON B. MARSHALL, 0000 * LLOYD A. PIERRE JR., 0000 NICHOLAS G. CONGER, 0000 MICHAEL L. MARTIN, 0000 * WILLIAM D. PO, 0000 JOSEPH A. COOK, 0000 MICHAEL J. MC COLLUM, 0000 JOHN A. POREMBA, 0000 JOANN B. COUCH, 0000 JOSEPH L. MC DANIEL, 0000 * LEONARDO C. PROFENNA, 0000 CHRISTOPHER J. COUTURE, 0000 ROBERT C. MC DONOUGH III, 0000 * CORA I. RANDLE, 0000 ROBYN L. COWPERTHWAITE, 0000 LAVETA L. MC DOWELL, 0000

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TINA A. MC GUFFEY, 0000 JANET W CHARVAT, 0000 JAMES M MADSEN, 0000 ERIC A. MEIER, 0000 WILLIAM F CONDRON JR., 0000 DAVID MALAVE, 0000 CHRISTOPHER T. MESSITT, 0000 MARK CREMIN JR., 0000 BEVERLY I MALINER, 0000 SCOTT A. MILLER, 0000 DAVID N DINER, 0000 RICKY D * MALONE, 0000 VINEETH MOHAN, 0000 KARL M GOETZKE, 0000 KENNETH W * MEADE, 0000 ANDREW E. MOORE, 0000 WILLIAM A HUDSON JR., 0000 NELSON L * MICHAEL, 0000 LAURA M. MOORE, 0000 MUSETTA T JOHNSON, 0000 RICHARD W MOCZYGEMBA, 0000 MEREDITH LINN MOORE, 0000 JOHN KASTENBAUER, 0000 RANDOLPH E MODLIN, 0000 PAMELA K. MOORE, 0000 EVERETT MAYNARD JR., 0000 BARRINGTON N NASH, 0000 JACQUELINE J. MORRIS, 0000 HOWARD O MCGILLIN JR., 0000 KOJI D NISHIMURA, 0000 CHARLES D. MOTSINGER, 0000 TIMOTHY J PENDOLINO, 0000 SCOTT A NORTON, 0000 PATRICK M. MUEHLBERGER, 0000 RICHARD V PREGENT, 0000 CHRISTIAN F OCKENHOUSE, 0000 SEAN T. MULLENDORE, 0000 EDITH M ROB, 0000 FRANCIS G OCONNOR, 0000 ANDREW J. MYRTUE, 0000 KATHRYN STONE, 0000 JOSEPH M PARKER, 0000 MARK A. NASSIR, 0000 CRAIG E TELLER, 0000 ANA L * PARODI, 0000 DIANNA L. NEAL, 0000 DONNA M WRIGHT, 0000 BRUNO P PETRUCCELLI, 0000 CHRISTINE A. NEFCY, 0000 CAROL E PILAT, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT GREGG B. NELSON, 0000 WILLIAM R RAYMOND IV, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY LUONG T. NGUYEN, 0000 HENRI RENOMDELABAUME IV, 0000 IN THE DENTAL CORPS AND FOR REGULAR APPOINT- APRIL M. NORTH, 0000 MENT (IDENTIFIED BY AN ASTERISK(*)) UNDER TITLE 10, ROBERTO RODRIGUEZ IV, 0000 DAVID A. NORTON, 0000 U.S.C., SECTIONS 624, 531, AND 3064: BERNARD J ROTH, 0000 MICHAEL J. NOUD, 0000 MARK V RUBERTONE, 0000 ANDREW O. OBAMWONYI, 0000 To be colonel RICHARD A SCHAEFER, 0000 STEVEN L. OLSEN, 0000 BEVERLY R SCOTT, 0000 ANN L BAGLEY, 0000 TANDY G. OLSEN, 0000 BRIAN G SCOTT, 0000 DANIEL K BAILEY, 0000 DAVID M. OLSON, 0000 CHRISTINE T SCOTT, 0000 TIMOTHY BANDROWSKY, 0000 GABRIELLA M. OLSON, 0000 KATHLEEN M SHEEHAN, 0000 FREDERICK C BISCH, 0000 CRAIG R. K. PACK, 0000 BARRY J SHERIDAN, 0000 BARRY G BISHOP, 0000 KAREN M. PANEK, 0000 JEFFREY E SHORT, 0000 MICHAEL L BRACE, 0000 PRADIP M. PATEL, 0000 HARRY K STINGER III, 0000 WILLIAM F BRUCE JR., 0000 DALE A. PATTERSON, 0000 JOSE A STOUTE, 0000 DAVID M BURNETTE, 0000 STEVEN D. PEINE, 0000 SIDNEY J SWANSON III, 0000 WILLIAM W CARMICHAEL, 0000 GREGORY A. PERRON, 0000 DEAN C TAYLOR, 0000 MICHAEL L * ELLIS, 0000 ANH T. PHAM, 0000 JOHN F THEROUX, 0000 GLEN J FALLO, 0000 RICHARD E. POPWELL, 0000 GEORGE W TURIANSKY, 0000 THERESA S * GONZALES, 0000 MARIA R. PRINCE, 0000 JAMES R * UHL, 0000 DONALD C HOFHEINS, 0000 MAURO QUAGLIA, 0000 DOUG A VERMILLION, 0000 ANDRE K KIM, 0000 WILFREDO R. RAMOS, 0000 NADJA Y WEST, 0000 ETHEL M LARUE, 0000 RAMESH D. RAO, 0000 JOSEPH A WHITFIELD, 0000 JAMES J LIN, 0000 MELINDA I. RATHKOPF, 0000 MICHAEL K YANCEY, 0000 THOMAS S MACKENZIE, 0000 TRAVIS A. RICHARDSON, 0000 CHRISTINA M YUAN, 0000 THOMAS G * MARINO, 0000 LYRAD K. RILEY, 0000 NASRIN MAZUJI, 0000 IN THE MARINE CORPS ERIC M. RITTER, 0000 DALE L PAVEK, 0000 CLIFTON A. ROBINSON, 0000 TIMOTHY M PIVONKA, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT RECHELL G. RODRIGUEZ, 0000 BONITA L PRUITT, 0000 TO THE GRADE INDICATED IN THE UNITED STATES MA- DANIEL M. ROKE, 0000 MARTIN C RADKE, 0000 RINE CORPS UNDER TITLE 10, U.S.C., SECTION 624: KIMBERLY A. ROOP, 0000 DANIEL J REESE, 0000 CHRISTOPHER H. RUSH, 0000 To be colonel DAVID R REEVES, 0000 NATHANIEL D. RUSSELL, 0000 RONALD L ROHOLT, 0000 ROBERT J ABBLITT, 0000 TIMOTHY M. RUTH, 0000 LARRY G ROTHFUSS, 0000 TRAVIS M ALLEN, 0000 KAREN A. RYAN, 0000 STEPHEN J ROUSE, 0000 GEORGE S AMLAND, 0000 MARK W. SANKEY, 0000 ROBERT C SHAKESPEARE, 0000 SCOTT M ANDERSON, 0000 RICHARD A. SAVELL, 0000 HAROLD B SNYDER III, 0000 WILLIAM J ANDERSON, 0000 KIMBERLY D. SAWYER, 0000 STEPHEN B WILLIAMS, 0000 DENNIS M ARINELLO, 0000 STEPHANIE A. SCHAEFER, 0000 GORDON W WOOLLARD, 0000 WALTER H AUGUSTIN, 0000 MYSTI D. W. SCHOTT, 0000 KEITH A WUNSCH, 0000 RONALD F BACZKOWSKI, 0000 MARK A. SELDES, 0000 HOWARD F BARKER, 0000 DAN SEPDHAM, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT MARK H BEAN, 0000 MONICA T. SERRANO, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY ROBERT K BEAUCHAMP, 0000 PATRICK A. SHEA, 0000 IN THE MEDICAL CORPS AND FOR REGULAR APPOINT- PAUL D BENNETT, 0000 CLAIRE A. SHERVANICK, 0000 MENT (IDENTIFIED BY AN ASTERISK(*)) UNDER TITLE 10, KENNETH D BEST, 0000 STEPHEN A. SMALL, 0000 U.S.C., SECTIONS 624, 531, AND 3064: KEITH A BIRKHOLZ, 0000 REBECCA A. SMILEY, 0000 To be colonel CHRISTOPHER E BLANCHARD, 0000 HUGH S. SMITH, 0000 ELVIS E BLUMENSTOCK, 0000 KAREN S. SMITH, 0000 ROBERT C ALLEN JR., 0000 MICHAEL S BONEM, 0000 LARRY O. SMITH, 0000 PAUL J AMOROSO, 0000 FRANK R BOYNTON, 0000 BERNARD J. SOPKY, 0000 JO A ANDRIKO, 0000 TERRANCE C BRADY, 0000 ROBERT L. SPENCE, 0000 LINDA R * ATTEBERRY, 0000 BROOKS R BREWINGTON, 0000 MICHEAL SPOHN, 0000 MARK R BAGG, 0000 MARK A BRILAKIS, 0000 AMAND KEITH B. ST, 0000 JAMES A BARKER, 0000 MICHAEL M BROGAN, 0000 GARY E. STAPLETON, 0000 KENNETH B BATTS, 0000 MICHAEL F BROOKER, 0000 DAVID G. STONE, 0000 ALAN L BEITLER, 0000 STEPHEN E BROWN, 0000 GIGI Y. SU, 0000 RICHARD T BEITZ JR., 0000 JOHN J BRYANT, 0000 JEFFREY A. SWANSON, 0000 ENRIQUE BENIQUEZ JR., 0000 PAUL A BRYGIDER, 0000 LEIGH A. SWANSON, 0000 KRAIG S * BOWER, 0000 STEVEN W BUSBY, 0000 NGUYEN V. TA, 0000 KENT L BRADLEY, 0000 SCOTT T CAMPBELL, 0000 CATHERINE A. TAKACS, 0000 MATRICE W BROWNE, 0000 JOHN J CANHAM JR., 0000 KRISTEN E. TALECK, 0000 WILLIAM T BROWNE, 0000 ROBERT D CLINTON, 0000 JAMES J. THOMAS, 0000 WILLIAM E BURKHALTER JR., 0000 JOHN T COLLINS, 0000 CARL E. THORNBLADE II, 0000 DOUGLAS E CHAPMAN, 0000 STEPHEN R COTE, 0000 PATRICK A. TITUS, 0000 JOHN D CHARETTE, 0000 LYLE M CROSS, 0000 WENDY Y. TONGLANDRUM, 0000 JOSEPH L CHRISTENSON, 0000 DANIEL F CROWL, 0000 DAI A. TRAN, 0000 EDWARD J COLL, 0000 FRANCIS X CUBILLO, 0000 AVRAM Z. TRAUM, 0000 STEPHEN J COZZA, 0000 CHARLES A DALLACHIE, 0000 ANDREW R. TRICKEY, 0000 MICHAEL A DEATON, 0000 RAYMOND C DAMM JR., 0000 WILLIAM P. TRIPLETT, 0000 JOHN S DICK, 0000 CLAUDE H DAVIS III, 0000 ANTHONY P. TVARYANAS, 0000 SCOTT R DUFFIN, 0000 JON M DAVIS, 0000 KYLE M. VANDEGRAAFF, 0000 RALPH L ERICKSON, 0000 STEPHEN W DAVIS, 0000 MICHAEL W. VANDEKIEFT, 0000 JEREL J ERNE, 0000 JAMES A DAY, 0000 LYLE J. VANDERSCHAAF, 0000 CHARLES A FARRINGTON, 0000 MICHAEL E DICK, 0000 JODIE K. VANWYHE, 0000 KURT A FICHTNER, 0000 JOHN K DODGE, 0000 LYNN G. VIX, 0000 KENNETH I FINK, 0000 GREGORY R DUNLAP, 0000 CHARLES V. VOIGT, 0000 JAMES M FRANCIS, 0000 PAUL K DURKIN, 0000 SCOTT W. VOSKUIL, 0000 IAN H FREEMAN, 0000 ANDREW P DWYER, 0000 SON VAN VIET VU, 0000 THOMAS H GARVER, 0000 JOHN K ELDER, 0000 TODD B. WAMPLER, 0000 ANTHONY D GOEI, 0000 JOHN F FELTHAM, 0000 ALLAN E. WARD, 0000 ROBERT R GRANVILLE JR., 0000 ROBERT A FITZGERALD JR., 0000 MATTHEW T. WARREN, 0000 HENRY D HACKER, 0000 JOHN A FORQUER, 0000 GLENN S. WHEET, 0000 MICHAEL A HARKABUS, 0000 GARY D FRALEY, 0000 MARC E. WHITAKER, 0000 SUSAN L HENDRICKS, 0000 STEVEN L FRANKLIN, 0000 GWEN M. WILCOX, 0000 OLEH W HNATIUK, 0000 ADRIENN K FRASERDARLING, 0000 YVONNE L. WONG, 0000 CURTIS J HOBBS, 0000 THOMAS B GALVIN, 0000 TIMOTHY D. WOODS, 0000 JOHN B HOLCOMB, 0000 STEPHEN T GANYARD, 0000 AARON T. YU, 0000 DAVID W HOUGH, 0000 ROBERT A GEARHART JR., 0000 DENNIS F. ZAGRODNIK, 0000 JAMES K HOWDEN, 0000 THOMPSON A GERKE, 0000 DUSTIN ZIEROLD, 0000 WILLIAM A HUGHES, 0000 PATRICK J GOUGH, 0000 STEPHEN J. ZIMMERMANN, 0000 ALAN A JANUSZIEWICZ, 0000 DAVID H GURNEY, 0000 IN THE ARMY SHEILA B JONES, 0000 ELLEN K HADDOCK, 0000 STEVEN D KLAMERUS, 0000 ANDREW S HAEUPTLE, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT THOMAS E KNUTH, 0000 MANTFORD C HAWKINS II, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY DAVID D KRIEGER, 0000 STEPHEN D HAWKINS, 0000 IN THE JUDGE ADVOCATE GENERAL’S CORPS UNDER ROBERT A * KUSCHNER, 0000 CHAD W HOCKING, 0000 TITLE 10, U.S.C., SECTIONS 624 AND 3064: BRIAN C LEIN, 0000 STEVEN D HOGG, 0000 To be colonel SVEN K LJAAMO, 0000 STEPHEN P HUBBLE, 0000 DOREEN M LOUNSBERY, 0000 CARL F HUENEFELD, 0000 GARY J BROCKINGTON, 0000 PATRICK J * LOWRY, 0000 CHARLES G HUGHES II, 0000

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KENNETH E JACOBSEN, 0000 STEVEN A. ROSS, 0000 PETER M. WILSON II, 0000 JAMES F JAMISON, 0000 BRETON L. SAUNDERS, 0000 TODD G. WITT, 0000 RUSSELL I JONES, 0000 BRENT A. SEARING, 0000 DAVID L. YAGGY, 0000 JAMES C JUMPER JR., 0000 GLENN R. SEIFFERT, 0000 JOEL P KANE, 0000 RANDALL J. SIMMONS, 0000 To be second lieutenant MARK M KAUZLARICH, 0000 ROBERT T. SIRKS, 0000 GEORGE H KEATING, 0000 JOHN S., JR SIROTNIAK, 0000 JOHN F. ALLSUP JR., 0000 DAVID A KELLEY JR., 0000 OLIVER B. SPENCER, 0000 SCOTT B. BALEY, 0000 ROBERT G KELLY, 0000 ROBERT A. THALER, 0000 BRITON C. BECK, 0000 JAMES A KESSLER, 0000 MICHAEL J. WALSH, 0000 NATHAN M. BOAZ, 0000 MARK A KING, 0000 DAVID V. WEAVER, 0000 JAMES R. BOOTH, 0000 CHAD E KIRKLEY, 0000 FRANCISCO A. CACERES, 0000 RALPH H KOHLMANN, 0000 To be captain PAUL A. CHADWICK, 0000 BRIAN R. CHONTOSH, 0000 WILLIAM P LEEK, 0000 CLAUDE L. ADAMS, 0000 JOHN M. CISCO, 0000 DOARIN R LEWIS, 0000 ANDREW P. ALBANO, 0000 TERRY M LOCKARD, 0000 MICHAEL H. ALVAREZ, 0000 BRAD W. COLLINS, 0000 MICHAEL E LOVE, 0000 JENNIFER A. ARCHBOLD, 0000 WILLIAM C. COX, 0000 JUERGEN M LUKAS, 0000 MICHAEL J. ARDEN, 0000 KEVIN A. CRESPO, 0000 JAMES W LUKEMAN, 0000 JESSE J. BELSKY, 0000 JUDSON Z. DANIEL, 0000 JEROME M LYNES, 0000 ELROY D. BLACK, 0000 MATTHEW C. DANNER, 0000 JAMES C MALLON, 0000 LORIN D. BODILY, 0000 MICHAEL A. DUBRULE, 0000 RICHARD V MANCINI, 0000 JAMES A. BOERIGTER, 0000 JOSEPH P. ENGLISH, 0000 BRIAN MANTHE, 0000 DARYL S. BOERSMA, 0000 BRYAN A. EOVITO, 0000 ALEXANDER V MARTYNENKO, 0000 SEAN C. BRAZIEL, 0000 NATHANIEL C. FICK, 0000 CARL D MATTER, 0000 BRYANT E. BUDDE, 0000 DARREN M. FISCHER, 0000 DANIEL C MC CARRON, 0000 RICHARD M. BURKE, 0000 RICHARD J. FISHER, 0000 JAMES E MC COWN III, 0000 RODERICK D. CAPILI, 0000 JAMES F. FOLEY, 0000 PAUL D MC GRAW, 0000 NORMAN D. CELLA, 0000 VIJAY A. GEORGE, 0000 CHRIS D MC MENOMY, 0000 STEVEN M. COGAR, 0000 JOSEPH S. GROAH, 0000 DANNY L MELTON, 0000 CHAD J. COMUNALE, 0000 STANTON C. HAWK, 0000 STEPHEN N MIKOLASKI, 0000 CARL E. COOPER JR., 0000 TIMOTHY M. HIMES, 0000 GEORGE F MILBURN III, 0000 MARK D. COUSINS, 0000 BILLY S. HORTMAN, 0000 RALPH F MILLER, 0000 RYAN E. CRAIS, 0000 JEFFREY W. HULLINGER, 0000 MARK E MONROE, 0000 PATRICK R. CRAWFORD, 0000 DAVID A. JANSEN, 0000 JOSEPH A MORTENSEN, 0000 DARREN K. CROW, 0000 CHARLES C. JONES, 0000 MATHEW D MULHERN, 0000 JON A. CUSTIS, 0000 CHRISTOPHE A. LASALLE, 0000 THOMAS M MURRAY, 0000 RICHARD M. DESTEFANO JR., 0000 ARIC C. LIBERMAN, 0000 JAMES T MURTHA, 0000 STEPHEN M. DICKERSON, 0000 DUANE LIPTAK JR., 0000 LAWRENCE D NICHOLSON, 0000 JOHN F. DOBRYDNEY, 0000 DAVID M. MANIMTIM, 0000 CHRISTOPHER L O’CONNOR, 0000 PETER J. DORAN, 0000 MATTHEW J. MARTIN, 0000 ANDREW W O’DONNELL JR., 0000 JASON M. EBY, 0000 MARK A. MCCAULEY, 0000 LOUIS N RACHAL, 0000 CHAD W. EDWARDS, 0000 ERIC A. MEADOR, 0000 DENNIS W RAY, 0000 JUSTIN W. EGGSTAFF, 0000 MICHAEL G. MINTON, 0000 JACKY E RAY, 0000 MATTHEW W. ERICKSON, 0000 SEAN P. MITZEL, 0000 RICHARD M RAYFIELD, 0000 JOSHUA C. EVANS, 0000 DAVID M. NAEHER, 0000 DAVID M RICHTSMEIER, 0000 CHARLES B. FLOURNOY, 0000 TODD L. NICHOLS, 0000 MICHAEL E RUDOLPH, 0000 ANTHONY N. FRASCO, 0000 MATTHEW A. NIELAND, 0000 DENNIS G SABAL, 0000 JOHN J. GARRIGAN III, 0000 DEREK C. NIELSEN, 0000 SHEILA M SCANLON, 0000 TERRENCE M. GREGORY, 0000 TODD B. OPALSKI 0, 0000 SUE I SCHULER, 0000 CLARENCE J. GRISHAM JR., 0000 PAUL A. OWINGS, 0000 JOEL G SCHWANKL, 0000 NIKOLAS D. HALATSIS, 0000 JOHN E. PETERSON, 0000 KEVIN M SCOTT, 0000 RICHARD D. HANSEN, 0000 DAVID K. PIDGEON, 0000 MICHAEL W SCOTT, 0000 GEORGE A. HERRERA, 0000 SCOTT C. PITTMAN, 0000 STEPHEN M SHEEHAN, 0000 BRUNSON HOWARD, 0000 JOHN A. PRATHER, 0000 CARLYLE E SHELTON, 0000 ROBERT C. HUNTER, 0000 JASON D. ROACH, 0000 RICHARD S SLATER, 0000 THOMAS F. JASPER JR., 0000 DANIEL C. RODENHAVER, 0000 DALE M SMITH, 0000 TIMOTHY S. JENKINS, 0000 JOHN B. ROGERS JR., 0000 DAVID E SMITH, 0000 BRIAN E. KASPRZYK, 0000 JAMES E. ROLLINS III, 0000 ROBERT G SOKOLOSKI, 0000 JOHN J. KELLY JR., 0000 JACKIE L. SCHILLER II, 0000 JAMES L STALNAKER, 0000 ALBERT K. KIM, 0000 WILLIAM G. SEELMANN JR., 0000 DOUGLAS M STILWELL, 0000 DEWAYNE L. KNOWLES, 0000 DALLAS E. SHAW JR., 0000 PETER J STRENG, 0000 JOSEPH S. LEE, 0000 THOMAS M. SIVERTS, 0000 JOHN M SULLIVAN JR., 0000 SAMUEL C. LEIGH, 0000 MATTHEW R. SMITH, 0000 WILLIAM E TAYLOR, 0000 AARON C. LOCHER, 0000 RICHARD R. STEELE, 0000 CHARLES T THOMPSON, 0000 GREGORY B. LOVETT, 0000 SCOTT E. STEPHAN, 0000 MICHAEL K TOELLNER, 0000 BRADLEY M. MAGRATH, 0000 ARTHUR J. THORNTON, 0000 JEFFREY P TOMCZAK, 0000 ROBERTO J. MARTINEZ, 0000 MAURICE J. UENUMA, 0000 MARK H TRIPLETT, 0000 ANDREW R. MCCONVILLE, 0000 CHAD L. ULRICH, 0000 CRAIG A TUCKER, 0000 DOUGLAS S. MCLEAN, 0000 STEVE URREA, 0000 ERIC J VANCAMP, 0000 CARL L. MCLEOD, 0000 JOEL A. VANBRUNT, 0000 PETER S VERCRUYSSE, 0000 JOSE R. MEDINA, 0000 DAVID P. VAUGHAN JR., 0000 TIMOTHY C WELLS, 0000 MARK W. MICKE, 0000 WILLIAM L. VAUGHN JR., 0000 JAMES L WELSH, 0000 BILLIE D. MORTON JR., 0000 HUGH D. WEAVER, 0000 FRED WENGER III, 0000 TIMOTHY E. MOZLEY, 0000 SCOTT F. WELCH, 0000 CARL J WOODS, 0000 CRISTOPHER R. MYERS, 0000 NICOLAS R. WISECARVER, 0000 THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- SIEBRAND H. NIEWENHOUS IV, 0000 POINTMENT IN THE UNITED STATES MARINE CORPS ERIC D. OLIPHANT, 0000 IN THE AIR FORCE UNDER TITLE 10, U.S.C., SECTION 531: JEFFREY B. PALMER, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT To be major CHRISTOPHE M. PERRINE, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR MICHEAL S. PLATT, 0000 FORCE AND FOR REGULAR APPOINTMENT (IDENTIFIED DONALD A. BARNETT, 0000 DENNIS R. POWERS, 0000 BY AN ASTERISK (*)) UNDER TITLE 10, U.S.C., SECTIONS GREGORY A. CASE, 0000 STEPHEN PRITCHARD, 0000 624 AND 531: STEVEN D. DANYLUK, 0000 STEWART J. PULLEY, 0000 RICHARD M. DEVORE JR., 0000 WILLIAM A. RASGORSHEK, 0000 To be lieutenant colonel CHRISTOPHER G. DIXON, 0000 EUGENIA C. ROBERTS, 0000 PHILIP H. FRAZETTA, 0000 RAFAEL RODRIGUEZ JR., 0000 *KIRBY D. AMONSON, 0000 SCOTT M. GRIFFITH, 0000 BRYON G. ROSS, 0000 *SHARON RUSCH BANNISTER, 0000 KOLAN J. HAIRSTON, 0000 THOMAS M. ROSS, 0000 *ANN M. BLAKE, 0000 CURTIS L. HILL, 0000 CHANDLER P. SEAGRAVES, 0000 *RUSSELL G. BOESTER, 0000 GREGORY E. HILL, 0000 ARTHUR L. SCHOEN, 0000 *JAMES R. BULLARD, 0000 TODD L. HOLDER, 0000 RICHARD F. SIMS JR., 0000 *GREGORY B. CANNEY, 0000 GARY A. KLING, 0000 DAVID O. SINGLEY, 0000 *THADDEUS M. CHAMBERLAIN, 0000 MICHAEL L. KLOCH, 0000 JOHN M. SOUTH, 0000 *JAMES C. CHOI, 0000 VERNIE R. LIEBL, 0000 KENNETH R. STEPHENS, 0000 CHRISTOPHER CIAMBOTTI, 0000 DANIEL R. LINGMAN, 0000 JOHN P. SULLIVAN JR., 0000 *JOHN F. COKE, 0000 PAUL K. LITTLE II, 0000 ROBERT J. VANDERWOUDE, 0000 *SALVATORE R. CUTINO, 0000 DEREK J. MAURER, 0000 JOEL D. VANPROYEN, 0000 GUY A. DELGADILLO, 0000 MICHAEL G. MCPHERSON, 0000 MARK E. VANSKIKE, 0000 *JANA DYKES, 0000 ARTHUR S. PENNY, 0000 ANDY S. WATSON, 0000 *HARIS EHLAND, 0000 PAUL E. PINAUD, 0000 AREND G. WESTRA, 0000 *JAY E. FANDEL, 0000 ROBERT W. REYNOLDS, 0000 JEFFERY T. WILLIAMS, 0000 *VICTORIA K. FARLEY, 0000

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4637 Sfmt 9801 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — SENATE S191 RICHARD R. FRAZIER, 0000 *MARK E. MUTH, 0000 CONFIRMATIONS THOMAS J. GRIMM, 0000 *MARK D. NILL, 0000 DENNIS HANNON, 0000 *SUSAN M. OSOVITZPETERS, 0000 *BILLY B. HATCHETTE, 0000 *DOUGLAS A. OTTAWAY, 0000 Executive nominations confirmed by *JOSEPH J. HEINZE, 0000 *BRIAN A. PARKER, 0000 the Senate January 28, 2002: *STEVEN H. HELM, 0000 *DAVID F. PIERSON, 0000 *MARISA H. HERMAN, 0000 *MICHELLE K. RAMPULLA, 0000 INTER-AMERICAN DEVELOPMENT BANK LEE A. HOLSTEIN, 0000 *BRADLEY E. RAUSCH, 0000 *GEORGE E. JOHNSON, 0000 JORGE L. ARRIZURIETA, OF FLORIDA, TO BE UNITED STACY E. ROBINSON, 0000 *RICHARD L. JOHNSON, 0000 STATES ALTERNATE EXECUTIVE DIRECTOR OF THE *JOHN A. SAFAR, 0000 DAVID B. KEMP, 0000 INTER-AMERICAN DEVELOPMENT BANK. *BRIAN T. KERNAN, 0000 *SCOTT R. SCHUBKEGEL, 0000 DAVID M. SMITH, 0000 THE ABOVE NOMINATION WAS APPROVED SUBJECT TO *ROBERT E. LANGSTEN, 0000 THE NOMINEE’S COMMITMENT TO RESPOND TO RE- JAY S. TAYLOR, 0000 *DONALD S. LINTON, 0000 QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY *ERNESTO J. TORRES, 0000 ROBIN L. LIVINGSTON, 0000 CONSTITUTED COMMITTEE OF THE SENATE. JAMES A. LOE, 0000 *MAREN DENNIS M. VAN, 0000 *BARBARA MARTIN, 0000 *JANE S. WALLACE, 0000 DEPARTMENT OF TRANSPORTATION *MICHAEL F. MORRIS, 0000 *LESLIE D. WILLIAMS, 0000 *CRAIG H. MULLETT, 0000 *RAY WILLIAMS, 0000 JOHN MAGAW, OF MARYLAND, TO BE UNDER SEC- *DAVID W. MURRAY, 0000 *DALTON P. WILSON, 0000 RETARY OF TRANSPORTATION FOR SECURITY FOR A *STEPHEN P. MURRELL, 0000 TERM OF FIVE YEARS.

VerDate Mar 15 2010 21:09 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 4637 Sfmt 9801 E:\2002SENATE\S28JA2.REC S28JA2 mmaher on DSKCGSP4G1 with SOCIALSECURITY January 28, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E35 EXTENSIONS OF REMARKS

SENATE COMMITTEE MEETINGS FEBRUARY 5 amine the legislative presentations of Title IV of Senate Resolution 4, 9:30 a.m. the Disabled American Veterans and agreed to by the Senate on February 4, Commerce, Science, and Transportation the Veterans of Foreign Wars. 345 Cannon Building 1977, calls for establishment of a sys- Science, Technology, and Space Sub- committee tem for a computerized schedule of all To hold hearings to examine issues con- MARCH 7 meetings and hearings of Senate com- cerning bioterrorism. mittees, subcommittees, joint commit- 10 a.m. SR–253 Veterans’ Affairs tees, and committees of conference. Governmental Affairs To hold joint hearings with the House To hold hearings to examine the impact This title requires all such committees Committee on Veterans’ Affairs to ex- to notify the Office of the Senate Daily of the Enron Corporation collapse on the company’s 401(k) retirement inves- amine the legislative presentations of Digest—designated by the Rules com- the Paralyzed Veterans of America, mittee—of the time, place, and purpose tors. SD–342 Jewish War Veterans, Blinded Veterans of the meetings, when scheduled, and Banking, Housing, and Urban Affairs Association, the Non-Commissioned Of- any cancellations or changes in the To hold hearings to examine the state of ficers Association, and the Military meetings as they occur. financial literacy and education in Order of the Purple Heart. As an additional procedure along America. 345 Cannon Building with the computerization of this infor- SH–216 mation, the Office of the Senate Daily Armed Services MARCH 14 Digest will prepare this information for To hold hearings on proposed legislation 10 a.m. printing in the Extensions of Remarks authorizing funds for fiscal year 2003 Veterans’ Affairs for the Department of Defense, and the To hold joint hearings with the House section of the CONGRESSIONAL RECORD Future Years Defense Program. Committee on Veterans’ Affairs to ex- on Monday and Wednesday of each SH–216 week. amine the legislative presentations of Meetings scheduled for Tuesday, Jan- FEBRUARY 6 the Gold Star Wives of America, the Fleet Reserve Association, the Air uary 29, 2002 may be found in the Daily 9 a.m. Force Sergeants Association, and the Digest of today’s RECORD. Governmental Affairs Retired Enlisted Association. MEETINGS SCHEDULED To hold hearings to examine the nomina- tion of Jeanette J. Clark, to be an As- 345 Cannon Building sociate Judge of the Superior Court of FEBRUARY 1 the District of Columbia. MARCH 20 9:30 a.m. SD–342 2 p.m. Joint Economic Committee 10 a.m. Veterans’ Affairs To hold hearings to examine the employ- Banking, Housing, and Urban Affairs To hold joint hearings with the House ment-unemployment situation for Jan- To continue hearings to examine the Committee on Veterans’ Affairs to ex- uary. state of financial literacy and edu- amine the legislative presentations of 311 Cannon Building cation in America. American Ex-Prisoners of War, the SD–538 Vietnam Veterans of America, the Re- FEBRUARY 4 tired Officers Association, the National FEBRUARY 27 9:30 a.m. Association of State Directors of Vet- Commerce, Science, and Transportation 9:30 a.m. erans Affairs, and AMVETS. To hold hearings to examine issues sur- Veterans’ Affairs 345 Cannon Building rounding the Enron Corporation. To hold joint hearings with the House SH–216 Committee on Veterans’ Affairs to ex-

∑ 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. Monday, January 28, 2002 Daily Digest Senate increase in the Federal medical assistance percentage Chamber Action for the Medicaid program for fiscal year 2002. Routine Proceedings, pages S153–S191 Page S153 Measures Introduced: Five bills were introduced, Allen Amendment No. 2702 (to the language as follows: S. 1899–1903. Pages S175–76 proposed to be stricken by Amendment No. 2698), Measures Passed: to exclude from gross income certain terrorist attack zone compensation of civilian uniformed personnel. Acoma Indian Ownership Rights: Committee on Page S153 Indian Affairs was discharged from further consider- Reid (for Baucus) Amendment No. 2721 (to ation of H.R. 1913, to require the valuation of non- Amendment No. 2698), to provide emergency agri- tribal interest ownership of subsurface rights within culture assistance. Page S153 the boundaries of the Acoma Indian Reservation, and Bunning/Inhofe Modified Amendment No. 2699 the bill was then passed, clearing the measure for the (to the language proposed to be stricken by Amend- President. Page S186 ment No. 2698), to provide that the exclusion from Pacific Northwest Feasibility Studies Act: Com- gross income for foster care payments shall also mittee on Indian Affairs was discharged from further apply to payments by qualified placement agencies. consideration of H.R. 1937, to authorize the Sec- Pages S153–54 retary of the Interior to engage in certain feasibility Hatch/Bennett Amendment No. 2724 (to the lan- studies of water resource projects in the State of guage proposed to be stricken by Amendment No. Washington, and the bill was then passed, clearing 2698), to amend the Internal Revenue Code of 1986 the measure for the President. Page S186 to allow the carryback of certain net operating losses Adoption Tax Credit: Senate resumed consideration for 7 years. Pages S158–60 of H.R. 622, to amend the Internal Revenue Code Domenici Amendment No. 2723 (to the language of 1986 to expand the adoption credit, taking action proposed to be stricken by Amendment No. 2698), on the following amendments proposed thereto: to provide for a payroll tax holiday. Pages S162–65 Pages S153–54, S158–61, S162–65, S168–73 Allard/Hatch/Allen Amendment No. 2722 (to the Pending: language proposed to be stricken by Amendment Daschle/Baucus Amendment No. 2698, in the na- No. 2698), to amend the Internal Revenue Code of ture of a substitute. 1986 to permanently extend the research credit and Pages S153–54, S158–61, S162–65, S168–73 to increase the rates of the alternative incremental Durbin Amendment No. 2714 (to Amendment credit. Pages S168–73 No. 2698), to provide enhanced unemployment com- A unanimous-consent-time agreement was reached pensation benefits. Page S153 providing for further consideration of the bill at 11 Nickles (for Bond) Amendment No. 2717, to a.m., on Tuesday, January 29, 2002, with 30 min- amend the Internal Revenue Code of 1986 to pro- utes of debate on Durbin Amendment No. 2714 (to vide for a temporary increase in expressing under Amendment No. 2698); followed by a vote on or in section 179 of such code. Pages S153, S160–61 relation to the amendment. Page S186 Reid (for Baucus/Torricelli/Bayh) Amendment No. Nominations Confirmed: Senate confirmed the fol- 2718 (to Amendment No. 2698), to amend the In- lowing nominations: ternal Revenue Code of 1986 to provide for a special Jorge L. Arrizurieta, of Florida, to be United depreciation allowance for certain property acquired after December 31, 2001, and before January 1, States Alternate Executive Director of the Inter- American Development Bank. 2004. Page S153 Reid (for Harkin) Amendment No. 2719 (to John Magaw, of Maryland, to be Under Secretary Amendment No. 2698), to provide for a temporary of Transportation for Security for a term of five D20 January 28, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D21 years. (Prior to this action, Committee on Com- Additional Cosponsors: Page S176 merce, Science, and Transportation was discharged Statements on Introduced Bills/Resolutions: from further consideration.) Page S175, S186, S191 Pages S176–83 Nominations Received: Senate received the fol- Additional Statements: Pages S173–74 lowing nominations: Paul I. Perez, of Florida, to be United States At- Amendments Submitted: Pages S183–86 torney for the Middle District of Florida, for the Adjournment: Senate met at 3 p.m., and adjourned term of four years. at 6:47 p.m., until 10:30 a.m., on Tuesday, January Roslynn R. Mauskopf, of New York, to be United 29, 2002. (For Senate’s program, see the remarks of States Attorney for the Eastern District of New York the Acting Majority Leader in today’s Record on for the term of four years. page S186.) Routine lists in the Air Force, Army, Coast Guard, Marine Corps. Pages S186–91 Committee Meetings Executive Communications: Pages S174–75 No committee meetings were held. h House of Representatives anti-money laundering provisions of the USA Patriot Act, Chamber Action 10 a.m., SD–538. The House was not in session today. It will next Committee on the Budget: to hold hearings on certain meet on Tuesday, January 29 at 12:30 p.m. for budgetary issues and the economic outlook of the United morning hour debate. States, 10 a.m., SD–608. Committee on Energy and Natural Resources: to hold hear- ings to examine the implications for consumers and en- Committee Meetings ergy markets of the Enron bankruptcy, focusing on main- No committee meetings were held. taining the needed investment and competition in natural gas and electricity production and transmission, 9:30 f a.m., SH–216. COMMITTEE MEETINGS FOR TUESDAY, Committee on Environment and Public Works: Sub- committee on Clean Air, Wetlands, and Climate Change, JANUARY 29, 2002 to hold hearings on S. 556, to amend the Clean Air Act (Committee meetings are open unless otherwise indicated) to reduce emissions from electric powerplants, 9:30 a.m., SD–406. Senate Committee on Banking, Housing, and Urban Affairs: to House hold oversight hearings to examine the financial war on No Committee meetings are scheduled. terrorism and the Administration’s implementation of the D22 CONGRESSIONAL RECORD — DAILY DIGEST January 28, 2002

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10:30 a.m., Tuesday, January 29 12:30 p.m., Tuesday, January 29

Senate Chamber House Chamber Program for Tuesday: After the transaction of any Program for Tuesday: Joint session of Congress to re- morning business (not to extend beyond 11 a.m.), Senate ceive the President’s State of the Union of Address and will continue consideration of H.R. 622, Adoption Tax Consideration of Suspensions: Credit Act, with 30 minutes of debate on Durbin 1. H. Res. , honoring the life of Rex David Amendment No. 2714 (to Amendment No. 2698), fol- ‘‘Dave’’ Thomas and expressing condolences of the House lowed by a vote on or in relation to the amendment. of Representatives to his family on his death; and (Senate will recess from 12:30 p.m. until 2:15 p.m., for 2. H. Res. 335, honoring the contributions of Catholic their respective party conferences.) schools. (At 8:40 p.m., Senate will proceed to the House of Represent- atives to receive the President’s State of the Union Address.)

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