Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 106 CONGRESS, FIRST SESSION

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

Vol. 145 WASHINGTON, THURSDAY, NOVEMBER 4, 1999 No. 154 House of Representatives The House met at 10 a.m. The point of no quorum is considered titles in which concurrence of the The Reverend Father Allen P. withdrawn. House is requested. Novotny, S.J., President, Gonzaga Col- f S. 185. An act to establish a Chief Agricul- lege High School, Washington, D.C., of- tural Negotiator in the Office of the United PLEDGE OF ALLEGIANCE fered the following prayer: States Trade Representative. Almighty God, You made us to Your The SPEAKER. Will the gentleman S. 580. An act to amend title IX of the Pub- own image and set us over all creation. from Louisiana (Mr. VITTER) come for- lic Health Service Act to revise and extend Once You chose a people and gave them ward and lead the House in the Pledge the Agency for Healthcare Policy and Re- search. a destiny and, when You brought them of Allegiance. Mr. VITTER led the Pledge of Alle- S. 688. An act to amend the Foreign Assist- out of bondage to freedom, they carried ance Act of 1961 to reauthorize the Overseas with them the promise that all men giance as follows: Private Investment Corporation. and women would be blessed and all I pledge allegiance to the Flag of the S. 1232. An act to provide for the correction men and women could be free. United States of America, and to the Repub- of retirement coverage errors under chapters It happened to our forbearers, who lic for which it stands, one nation under God, 83 and 84 of title 5, United States Code. indivisible, with liberty and justice for all. came to this land as if out of the desert f into a place of promise and hope. It f MAKING IN ORDER AT ANY TIME happens to us still in our time, as You MESSAGE FROM THE SENATE MOTION TO AGREE TO CON- guide to perfection the work of cre- A message from the Senate by Mr. FERENCE ASKED BY THE SEN- ation by our labor. Lundregan, one of its clerks, an- ATE ON H.R. 3194, DISTRICT OF May the women and men of this nounced that the Senate had passed COLUMBIA APPROPRIATIONS House bring this spirit to all their ef- without amendment a bill and a con- ACT, 2000 forts to establishing true justice and current resolution of the House of the Mr. GOSS. Mr. Speaker, I ask unani- guide our Nation to its destiny. May following titles: their work today and every day further mous consent that it may be in order H.R. 609. An act to amend the Export Apple at any time for the chairman of the this mission. Amen. and Pear Act to limit the applicability of the f Act to apples. Committee on Appropriations or his H. Con. Res. 102. Concurrent resolution designee to move that the House take THE JOURNAL celebrating the 50th anniversary of the Gene- from the Speaker’s table the bill (H.R. The SPEAKER. The Chair has exam- va Conventions of 1949 and recognizing the 3194) making appropriations for the ined the Journal of the last day’s pro- humanitarian safeguards these treaties pro- government of the District of Columbia ceedings and announces to the House vide in times of armed conflict. and other activities chargeable in his approval thereof. The message also announced that the whole or in part against the revenues Pursuant to clause 1, rule I, the Jour- Senate had passed with amendments in of said District for the fiscal year end- nal stands approved. which the concurrence of the House is ing September 30, 2000, and for other Mr. MCNULTY. Mr. Speaker, pursu- requested, a bill of the House of the fol- purposes, with a Senate amendment, ant to clause 1, rule I, I demand a vote lowing title: thereto, disagree to the Senate amend- on agreeing to the Speaker’s approval H.R. 434. An act to authorize a new trade ment and agree to the conference asked of the Journal. and investment policy for sub-Sahara Africa. by the Senate. The SPEAKER. The question is on The message also announced that the The SPEAKER. Is there objection to the Speaker’s approval of the Journal. Senate insists upon its amendments to the request of the gentleman from The question was taken; and the the bill (H.R. 434) ‘‘An Act to authorize Florida? Speaker announced that the ayes ap- a new trade and investment policy for There was no objection. peared to have it. sub-Sahara Africa,’’ requests a con- f Mr. MCNULTY. Mr. Speaker, I object ference with the House on the dis- to the vote on the ground that a agreeing votes of the two Houses there- MAKING IN ORDER AT ANY TIME CONSIDERATION OF H.J. RES. 75, quorum is not present and make the on, and appoints Mr. ROTH, Mr. GRASS- FURTHER CONTINUING APPRO- point of order that a quorum is not LEY, Mr. LOTT, Mr. HELMS, Mr. MOY- PRIATIONS, FISCAL YEAR 2000 present. NIHAN, Mr. BAUCUS, and Mr. BIDEN to be The SPEAKER. Pursuant to clause 8, the conferees on the part of the Senate. Mr. GOSS. Mr. Speaker, I ask unani- rule XX, further proceedings on this The message also announced that the mous consent that it may be in order question will be postponed. Senate has passed bills of the following at any time, without the intervention

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

H11483

VerDate 29-OCT-99 01:08 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00001 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.000 pfrm02 PsN: H04PT1 H11484 CONGRESSIONAL RECORD — HOUSE November 4, 1999 of any point of order, to consider in the Mr. OLVER. Mr. Speaker, Americans ference committee on this bill so we House the joint resolution (H.J. Res. have enjoyed an unprecedented growth can get it to the President for signa- 75) making further continuing appro- in our economy over 8 years. We have ture. priations for the fiscal year 2000, and the lowest unemployment rate in dec- f for other purposes, that the joint reso- ades, but 12 million workers, 10 percent IT IS TIME CONGRESS WRITES lution be debatable for 1 hour, equally of all American workers, work at the THE LAWS, NOT NEW YORK divided and controlled by the chairman minimum wage. The majority of them JUDGES and ranking minority member of the are adults, a majority are women. Committee on Appropriations, and that Most of those women are trying to (Mr. TRAFICANT asked and was the previous question otherwise be con- bring up children at that minimum given permission to address the House sidered as ordered to passage without wage with less than $10,000 a year. for 1 minute and to revise and extend intervening motion except one motion They have not seen any benefit from his remarks.) to recommit. the economic boom. They deserve a Mr. TRAFICANT. Mr. Speaker, The SPEAKER. Is there objection to wage increase, and they can only get judges in New York have ruled that the request of the gentleman from that wage increase by increasing the Mayor Giuliani shall give $7.2 million Florida? minimum wage by this Congress. to the Brooklyn Museum of Art, even There was no objection. Eighty percent of Americans favor though their exhibit is offensive. I will f doing that. Even two-thirds of all Re- say it is offensive, a portrait of the Vir- publicans favor doing that. We have a gin Mary splattered with elephant ANNOUNCEMENT OF THE SPEAKER bill that would raise the minimum dung. PRO TEMPORE wage by $1 over the next 2 years. It If that is not bad enough, now tax- The SPEAKER pro tempore (Mr. should pass. It could pass in a day, but payers have to subsidize it. Unbeliev- OSE). There will be 15 1-minutes on the Republican leadership is going to able, Mr. Speaker. In the name of art each side. hold that bill hostage unless it is pos- and freedom of expression, these stum- f sible to give $70 billion per year of tax bling, bumbling, fumbling judges in New York have institutionalized per- IT IS TIME THE LIBERAL DEMO- cuts to the handful of Americans who make more than $300,000 a year. That version. CRATS SUPPORT FLEXIBILITY The museum may have the right to tax reduction goes to the wealthiest 1 FOR LOCAL SCHOOL DISTRICTS show it, but by God, the taxpayers percent of Americans. should not be compelled to fund it. It is (Mr. GIBBONS asked and was given Why is this? Members guessed it, the time that Congress starts writing laws, permission to address the House for 1 handful of Americans who make more not these judges. I yield back the stu- minute and to revise and extend his re- than $300,000 a year make the vast ma- pidity, absolute stupidity and perver- marks). jority of contributions to political sion, of the decision of these judges in Mr. GIBBONS. Mr. Speaker, there is campaigns. a Latin phrase that applies to those The Republican leadership of this New York. liberal Democrats who constantly be- Congress, the House and Senate, have f lieve that Washington always knows killed campaign finance reform again ASKING THE PRESIDENT TO DO best: via ovicepitum dura est. For the this year. THE RIGHT THING engineers, ‘‘The way of the egghead is f (Mr. CHABOT asked and was given hard.’’ permission to address the House for 1 Mr. Speaker, it is time our liberal AFRICA TRADE BILL: AN HISTORIC minute and to revise and extend his re- colleagues support the education op- OPPORTUNITY marks.) portunities that grant our local school (Mr. ROYCE asked and was given per- Mr. CHABOT. Mr. Speaker, as usual, districts the flexibility to decide how mission to address the House for 1 the gentleman from Ohio is absolutely to spend their Federal education fund- minute and to revise and extend his re- right. ing. marks.) I address my comments to another We are all aware of the Administra- Mr. ROYCE. Mr. Speaker, it is en- topic, however. In the coming days, the tion’s plan to hire 100,000 new teachers, couraging to see the African Growth President is going to have to do some and we can all agree that hiring more and Opportunity Act passed yesterday, critical things and make some critical qualified teachers should be a priority. overwhelmingly passed, and it has now decisions. He can choose to support a But what about books? What about passed both chambers of Congress. Republican program that balances the computers? What about the basic We need to get to work, Mr. Speaker, budget and saves social security, or he things, like pencils and papers? What on putting together a Senate-House can succumb to the pressure of the lib- right do Washington bureaucrats have conference committee on this bill so eral Democrat leadership here in the to deny school districts the option of we can get it to the President for sig- House and bust the budget and loot the using these funds for these necessities? nature. This legislation is a first step social security trust fund once again. Mr. Speaker, we can do more to im- in helping Africa help itself by bring- To the average hard-working Amer- prove the education of our children by ing the continent into a positive trad- ican taxpayer, this should not really be giving local school districts the flexi- ing partnership with the United States. a dilemma, but this is Washington, and bility and tools needed to make those As the chairman of the Sub- silly things happen here. When liberals improvements. Let us give our children committee on Africa, as well as an get together to discuss spending issues, the best education opportunity we can. original cosponsor of the bill in the it is awfully hard to keep their hands Let us cut the Federal purse strings. House, I can say that passage of this off of the taxpayers’ money. Mr. Speaker, I yield back all the egg- historic bill is good for Africa and it is The President talks about his legacy. headed, cookie-cutter, liberal funding good for America. He can assure his place in history if he theories which cannot possibly meet In addition to bringing Africa into a stands up to his free-spending friends the diverse needs and educational trading partnership with us, it will and says no to budget-busting and no needs of our children. help open African markets to American to more increases and raids on the so- f goods. America today has only 5 per- cial security trust fund. cent of Africa’s market. France and Let us hope that just this once, the REPUBLICANS HAVE KILLED CAM- other European nations dominate the President does the right thing. PAIGN FINANCE REFORM AND continent’s trade. With this bill, the f CONTINUE TO BLOCK AN IN- U.S. will be able to pry some of the Af- CREASE IN THE MINIMUM WAGE rican markets away from Europe. This REPUBLICANS HAVE ALREADY (Mr. OLVER asked and was given will lead to tens of thousands of new SPENT $17 BILLION OF SOCIAL permission to address the House for 1 jobs for Americans. SECURITY SURPLUS minute and to revise and extend his re- Mr. Speaker, I again urge quick for- (Mr. BERRY asked and was given marks). mation of a House and Senate con- permission to address the House for 1

VerDate 29-OCT-99 01:08 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00002 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.002 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11485 minute and to revise and extend his re- tleman from Arkansas seek recogni- I wish to pay tribute to an American marks.) tion? whose character and actions are truly Mr. BERRY. Mr. Speaker, it would Mr. GREEN of Texas. Mr. Speaker, I unselfish acts of courage and sacrifice. have been amusing the last few weeks am from Texas. On September 2, the 54th anniversary if it had not been so sad listening to (Mr. GREEN of Texas asked and was of VJ-Day, U.S. Army Command Ser- our Republican colleagues swearing to given permission to address the House geant Major Ronald W. Bedford began a protect social security. This charade for 1 minute and to revise and extend 1,500-mile journey from Mobile, Ala- continues, despite the fact that the his remarks.) bama, to Washington, D.C. Congressional Budget Office has con- Mr. GREEN of Texas. Mr. Speaker, I His walk, which takes him through firmed that the Republicans have al- am glad to follow my colleague, the six States and the District of Colum- ready spent $17 billion of the social se- gentleman from Louisiana (Mr. bia, is remarkable because it is en- curity surplus. VITTER) because they are the ones that tirely on foot. But CSM Bedford is not Remember, that $17 billion loan does wanted to cut defense spending by 1 walking this enormous distance to set not include the Republicans’ $1 trillion percent last week. any record. Instead, he is striding the What I am here today about concerns tax cut. It does, however, include Sen- 71-day route to bring attention to and what we are seeing that is happening. ator TRENT LOTT’s ship that the Navy raise funding for the construction of a Despite a strong bipartisan vote in does not need, does not want, and does national memorial to honor America’s favor of HMO reform, the over- not have the people to man if they had greatest generation of heroes, those whelming and public support across the it. who fought in World War II. country, the leadership has shown it is It does include over $1 million to Bedford, an ex-airborne infantryman now still looking for a way to cut and elimi- study the spruce bark beetle. In fact, stationed at Fort Rucker, Alabama in my con- nate real HMO reform. according to the CBO, if the President The Republican leadership scheduled gressional district, came up with the idea of had not vetoed the tax bill, we would a bill that automatically linked to it a the walk after learning that there was no na- have already raided the social security Patients’ Bill of Rights, supposedly tional memorial for the 16 million Americans trust fund by at least $70 billion, with- their patient access, but the House who served and sacrificed to liberate the world out counting any of the other billions spoke by a bipartisan vote and passed a from Nazi and Japanese occupation in World and billions and billions that my bipartisan measure for real HMO re- War II. His efforts to help raise money for the spendthrift Republican colleagues have form. Now we see the Republicans have on-going World War II Memorial fund have passed this year. stacked the conference committee with gained the support of the Non-Commissioned With all this spending and all this only one Member who voted for the Officers Association, and the praise of former borrowing, how can my Republican col- bill, only one Member. Senator Bob Dole, who chairs the World War leagues get up here with a straight face What is so sad is that they are over- II Memorial Committee. and say they are saving social secu- ruling the whole majority in this CSM Bedford's journey of 2,792,000 steps rity? The American people know bet- House. Clearly, our fight for HMO re- will take him through 144 cities and 15 military ter. form is just beginning. We may have installations before he arrives at Arlington Na- f won the first battle but we have a big tional Cemetery on November 11. From there, battle to go. By appointing only those he will cross Memorial Bridge, pass by the b 1015 Members who oppose it, they want to Lincoln Memorial, and then proceed to the THE WORLD REMAINS A DAN- bury it again. They are neglecting the spot on the national mall where the World War GEROUS PLACE, AND THE PRESI- American people by a large majority, II Memorial will be built next year. DENT REFUSES TO ABIDE BY and this House, by a large majority, I salute the Sargent Major for his THE WILL OF CONGRESS wants binding external appeals. They personal sacrifice and welcome him to want open communication with our Washington, D.C. (Mr. VITTER asked and was given f permission to address the House for 1 doctors and patients. They want ac- minute.) countability to whoever makes those NO MORE DEADBEAT LEADERSHIP medical decisions. Mr. VITTER. Mr. Speaker, I continue (Ms. DELAURO asked and was given to be amazed by the lax defense poli- f permission to address the House for 1 cies of this administration. Today our ANNOUNCEMENT BY THE SPEAKER minute and to revise and extend her re- Navy has more than 200 fewer ships PRO TEMPORE marks.) than during Desert Storm. Red China The SPEAKER pro tempore. The Ms. DELAURO. Mr. Speaker, the Re- has six times our land forces and North Chair wishes to apologize to the gen- publican leadership was irresponsible Korea has developed a missile that de- tleman from Texas (Mr. GREEN) and to in trying to spend the surplus on $800 livers weapons of mass destruction to the people of Texas. billion worth of tax breaks for the U.S. territory, and now the Clinton ad- f wealthiest in this country. Now it is ministration says it will ignore the trying to skip town without addressing vote of the Senate, abide by the re- TRIBUTE TO U.S. ARMY COMMAND the needs of American families. jected test ban treaty, just as they ig- SERGEANT MAJOR RONALD W. The failures of this Republican lead- nored H.R. 4 that calls for a missile de- BEDFORD, A REAL AMERICAN ership are many. Their budget does not fense. HERO extend the life of Social Security by a Despite the fall of the Soviet Union, (Mr. EVERETT asked and was given single day. It fails to strengthen Medi- the world remains a dangerous place. permission to address the House for 1 care with not even a penny to provide Yet under President Clinton the will of minute and to revise and extend his re- for a prescription drug benefit for sen- the Congress is ignored and defense marks.) iors who are desperately looking for spending has not even kept pace with Mr. EVERETT. Mr. Speaker, I would that kind of a benefit. The Republican inflation. We must insist that the like to remind the gentleman from leadership has ignored American fami- President follow the will of the Con- Texas (Mr. GREEN) that this Repub- lies. Families overwhelmingly support gress regarding national defense; mod- lican Congress has added about $38 bil- common sense gun safety, laws that ernize our weaponry and above all, lion more than the President of the keep firearms out of the hands of kids above all, increase pay and benefits so United States has requested for de- and of criminals. that no soldiers, sailors, airmen or Ma- fense, but I would like to speak on The Republican leadership has al- rines have to rely on food stamps to something else. lowed the special interests to write our feed their families. Mr. Speaker, our society has cheap- gun laws. Common sense should be ap- f ened the name of heroes today by ele- plied when it comes to the safety of our vating millionaire movie, music and schools, of our neighborhoods, of office WE MAY LOSE HMO REFORM sports stars while ignoring those Amer- buildings and places of worship. This The SPEAKER pro tempore (Mr. icans who perform unselfish acts of Congress should not adjourn without OSE). For what purpose does the gen- courage and sacrifice. closing the loopholes that let guns fall

VerDate 29-OCT-99 01:08 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00003 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.004 pfrm02 PsN: H04PT1 H11486 CONGRESSIONAL RECORD — HOUSE November 4, 1999 into the wrong hands. No more dead- Let us get real. Let us do the people’s does not get it, and I do not think the beat leadership. It is time for respon- business. Republican majority gets it. sible action. f A couple of weeks ago, I joined with f my Democratic colleagues on the Com- ONE PENNY FROM EVERY DOLLAR mittee on Ways and Means to lower the LET US KEEP SOCIAL SECURITY IS ALL IT WILL TAKE TO SAVE cost of prescription drugs, and they SOLVENT SOCIAL SECURITY FOR AMER- voted against it. ICA’S SENIOR CITIZENS (Mr. SMITH of Michigan asked and f was given permission to address the (Mr. BARTLETT of Maryland asked House for 1 minute and to revise and and was given permission to address IS THE UNITED NATIONS OPER- extend his remarks.) the House for 1 minute and to revise ATING UNDER A DOUBLE STAND- Mr. SMITH of Michigan. Mr. Speak- and extend his remarks.) ARD? er, somehow, sometime, some place we Mr. BARTLETT of Maryland. Mr. (Mr. PITTS asked and was given per- are going to have to get over this par- Speaker, I cannot believe what I have mission to address the House for 1 tisan bickering and start working to- been hearing from President Clinton minute and to revise and extend his re- gether on serious problems facing this and his Democrat cohorts in Congress marks.) nation. Yesterday I introduced a bipar- over the last few days. It really should Mr. PITTS. Mr. Speaker, could the tisan bill that keeps Social Security not surprise me to hear Democrats say U.N. be operating under a double stand- solvent. In trying to convey the seri- we cannot cut any waste, fraud and ard? It is very interesting that the ousness of the Social Security problem, abuse in government. After all, they United Nations, while calling for the I said that in the next 75 years the are not exactly known for their fiscal indictment of Yugoslavia President taxes coming in from Social Security discipline. But still, when they cry out Milosevic as a war criminal was all too are going to be short $120 trillion from that Federal agencies cannot find one eager to work with Milosevic’s health accommodating what we have promised cent out of every dollar to cut from minister to set up the Kosovo program in benefits; $120 trillion over Social Se- their spending that just does not ring to, quote, stimulate the birth rate of curity taxes collected over the next 75 true, even for them. the populations in central and north- years. One penny from every dollar is all ern Serbia and to limit or forbid the My wife Bonnie said, Nick, nobody that it will take to save Social Secu- enormous increase of the birth rate in understands what a trillion is. How rity for America’s senior citizens. How Kosovo. else can we convey the seriousness? So, can anyone be against this? But the Could the U.N. be a complicit partner here is a quick try. A worker’s income Clinton-Gore administration and their in Milosevic’s efforts to halt or slow will be less if we don’t solve Social Se- friends in Congress are against it. the growth of the ethnic Albanian pop- curity. Poland has just exceeded 48 per- We passed a very good bill last week, ulation? cent of their payroll tax for senior citi- Mr. Speaker. It will strengthen Social Could we have another one-child pol- zens. France is over 70 percent for their Security, it will cut waste, fraud and icy in the works following in the foot- payroll tax. That means the cost of abuse out of the Federal bureaucracy steps of China? production goes up and fewer sales and but only if the President signs it. It is Can we blame the Albanian people for less employment. time for the administration to stop believing family planning programs We have created less take home pay, protecting bureaucratic mismanage- and condom distribution is just an- more jobs in the U.S. in the first quar- ment at the expense of working Ameri- other way to reduce their ethnic popu- ter of this year than Poland and cans. It is time to stop pretending that lation? France have in those two countries it is not possible. It is time to do the Mr. Speaker, this tension in Kosovo combined since 1980. Our pay roll tax is honest, responsible thing, stop the raid represents the fine line that UNFPA is heading in that direction. Let’s fix So- on Social Security once and for all. walking when it, however well-mean- cial Security. f ing, pushes through its population con- f LOWERING THE COSTS OF PRE- trol programs around the world. THE LEGACY OF NEWT SCRIPTION DRUGS FOR SENIORS f (Mr. HOYER asked and was given (Mrs. THURMAN asked and was PHONY NUMBERS, PHONY ANAL- permission to address the House for 1 given permission to address the House YSIS AND PHONY ACCOUNTING minute and to revise and extend his re- for 1 minute and to revise and extend PRINCIPLES marks.) her remarks.) Mr. HOYER. Mr. Speaker, almost one Mrs. THURMAN. Mr. Speaker, I was (Mr. MINGE asked and was given per- year ago today, October 20, 1998, the reading the newspaper this morning mission to address the House for 1 then-speaker Newt Gingrich came on and I came across an ad that just minute and to revise and extend his re- this House floor and chided the Repub- stopped me cold. The ad put out by the marks.) lican perfectionist caucus. Two disas- Pharmaceutical Research and Manu- Mr. MINGE. Mr. Speaker, we have trous government shutdowns and rhet- facturers of America highlights the been embarrassed by the tragic level of oric hot enough to heat this building new medicines they are coming out duplicity here by the Republican lead- on a cold winter day taught him one with to help stroke victims, breast can- ership this fall. In a misguided effort to thing, government is the art of com- cer patients, people with osteoporosis avoid blame for using the Social Secu- promise; but he is not here. That lesson and other common ailments. rity trust fund to finance pork barrel has been lost on today’s House leader- The industry says the new drugs save spending for things, including TRENT ship. The perfectionist caucus, the the country and employers billions of LOTT’s home State, the leadership is crowd that says it is my way or no dollars by doing away with missed compromising the Congressional Budg- way, rides on. workdays, expensive rehabilitation et Office. It is using phony numbers, The majority whip says the leader- costs and other forms of care. This may phony analysis. ship will negotiate with the President be true, but what good is it if millions ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE on his knees. The Republican leader- of seniors who need the drugs to live The SPEAKER pro tempore. The ship rammed an irresponsible tax cut cannot afford to buy them? Chair wishes to remind Members to through the House, even though it I also want to point out that the avoid such references to Members of would suck the Social Security surplus pharmaceutical companies also receive the other body. dry, and now they claim they will not significant government dollars from Mr. MINGE. It is using phony num- spend one dime of that Social Security the National Institutes of Health to bers, phony analysis and phony ac- surplus. They have already dipped into conduct the innovative research and to counting principles. Here the Wall that surplus to the tune of $17 billion find the cures. So is it then appropriate Street Journal has identified some of and it is going to be well over on their to price them out of the reach of the these problems. Smoke and mirrors has way to spending $30 billion plus. people who need them? PHRMA just returned with claims that we have

VerDate 29-OCT-99 01:08 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00004 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.007 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11487 emergencies, and the use of slick ac- Truly it is time that we be honest But what I did want to come down counting principles. and straightforward with the people of this morning to say is that the Blue The Republicans are $17.1 billion into America. The Blue Dogs in the spring Dogs offered a budget last April. We the Social Security trust fund, accord- of last year introduced a budget pro- are in a mess. We are into November. ing to the Congressional Budget Office. posal that fit then, and it fits now. It There is still no agreements in sight. We violated the budget caps by over $30 says take 50 percent of the surplus over There is a blame game going on here billion, and the Republican leadership 5 years, pay down the debt, use those about who wants to spend Social Secu- has failed to get the spending bills to savings to shore up Social Security, rity money. That is not very construc- the White House and here we are 5 take 25 percent in a targeted tax cut, tive. weeks into the fiscal year. whether it is a State, marriage pen- We ought to stop that, stop the We are operating on supplemental alty, or capital gains, take the other 25 blame game, and get into the Blue Dog resolutions. It is a disgrace to this percent for priority spending on vet- budget or something similar and do body. erans or education or defense. something constructive for the country f Let us stop playing games with the for a change. That is what we were sent American people. Follow the blueprint PRESCRIPTION DRUGS here for. That is what I hope we can do of the Blue Dogs. It saves Social Secu- in the future for the people that we (Mr. GUTKNECHT asked and was rity; and most of all, it is responsible represent and for our kids and given permission to address the House and honest. grandkids. for 1 minute and to revise and extend f his remarks.) f Mr. GUTKNECHT. Mr. Speaker, I ONLY HALF A NOTCH IN AMER- BLUE DOGS SHOULD JOIN WITH would like to read some excerpts from ICA’S BELT WILL SAVE SOCIAL CONSERVATIVE REPUBLICANS a letter from Mr. George Halvorson SECURITY ON 1-CENT SAVINGS who heads up one of the largest health (Mr. TIAHRT asked and was given groups in the Twin Cities of the State permission to address the House for 1 (Mr. HAYWORTH asked and was of Minnesota. He took out an ad re- minute and to revise and extend his re- given permission to address the House cently and the headline is, ‘‘Who buys marks.) for 1 minute and to revise and extend prescription drugs at ten cents on the Mr. TIAHRT. Mr. Speaker, some time his remarks.) dollar?’’ ago, the Democrats sent a letter to the Mr. HAYWORTH. Mr. Speaker, let Let me read this, please, and this is Congressional Budget Office, the CBO, me follow, then, in the spirit of biparti- a quote. ‘‘The cost of prescription and it had some bogus ground rules; sanship offered by the gentleman from drugs varies to an amazing degree be- and what they got back said that we Tennessee (Mr. TANNER), I welcome tween countries. If you have a stomach were spending Social Security under that candid exchange, and I think one ulcer and your doctor says you need to these bogus ground rules. way we can really get started is for the be on prilosec, you would probably pay Their whole purpose for doing that is Blue Dogs to join with the conservative about $99.95 for a 30-day supply in the so that they can spend more money. majority in a pledge to realize savings Twin Cities. But if you were vaca- They have shown the programs and of 1 cent of every dollar spent. tioning in Canada and decided to fill they have talked about the programs The gentleman from Tennessee (Mr. your prescription there, you would pay that they want to spend the extra TANNER), the gentleman from Lou- only $50.88. Or even better, if you were money on. Well, rest in peace, liberal isiana (Mr. JOHN) says, let us save looking for a little warmer weather big government. We are not going to do money. We agree. Join with us. But, south of the border in Mexico, that it. see, the problem is within the minority same day 30-day supply would cost you In fact, we have got a letter from the caucus, sadly my friends in the Blue only $17.50. That is for the same dose, Congressional Budget Officer that says, Dog Coalition are a minority within made by the same manufacturer. if we do not spend more than $592.1 bil- that minority. lion on domestic discretionary spend- b 1030 So I would invite my friends, mod- ing, we will not spend any Social Secu- erate conservatives on the other side of ‘‘When the North American Free rity surplus. Along with that, we have the aisle, to join with this working ma- Trade Act (NAFTA) was passed by Con- put in a 1 percent across-the-board cut, jority for a center right coalition to re- gress to allow free trade between us which is like taking a half a notch in alize savings. and our neighboring countries, this belt, just tightening up just a half All we are talking about is 1 cent on HealthPartners decided to follow the a notch. That is all we would have to every discretionary dollar. That is eas- lead of Minnesota Senior Federation do, and we passed that; and, in fact, we ily done. It saves the Social Security and buy our drugs in Canada’’, but the are not going to spend the Social Secu- money for Social Security. Let us do FDA is standing between them. Today rity surplus. That is the fact of the that in the spirit of bipartisanship. To I am going to introduce legislation to matter. The Congressional Budget Of- my friends in the Blue Dog Caucus, I respond to this problem. fice confirmed that in a letter. extend my hand in that bipartisan f Now, if we are going to do what they fashion. are recommending, we would have to THE BLUE DOG BUDGET FITS take four notches up in this belt. Now, f (Mr. JOHN asked and was given per- America knows we could do that four HONESTY IN BUDGET NUMBERS mission to address the House for 1 notches and protect Social Security, minute and to revise and extend his re- but yet the liberals have failed to offer (Mr. SANDLIN asked and was given marks.) any program reduction. permission to address the House for 1 Mr. JOHN. Mr. Speaker, today, 35 f minute and to revise and extend his re- days into the fiscal year, we have not marks.) finished but only half of our appropria- DO SOMETHING CONSTRUCTIVE; Mr. SANDLIN. Mr. Speaker, it is tions bills up to this point. PASS THE BLUE DOG BUDGET time for responsible budgeting in this The majority leadership up to this (Mr. TANNER asked and was given country. It is time to pay the country’s point has been fairly innovative and permission to address the House for 1 debt. It is time to take Social Security clever at trying to maneuver around minute and to revise and extend his re- completely off budget. Mr. Speaker, we the balanced budget agreement caps marks.) have heard a lot of bragging from the and making sure they are not spending Mr. TANNER. Mr. Speaker, I do not other side of the aisle about stopping Social Security surplus money. But I come down here and do 1-minutes very the raid on Social Security. The only tell my colleagues today that they often most of the time, I think most of problem is that the facts just do not failed miserably. Even their own ap- the people that listen to these agree, back up the bragging. pointed CBO director says that they that it is hurling insults back and The Republicans would like us to be- have broken the caps and spent $17 bil- forth across this table here, and that is lieve that the Congressional Budget Of- lion of Social Security money. not very constructive. fice has said that their budget would

VerDate 29-OCT-99 01:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00005 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.012 pfrm02 PsN: H04PT1 H11488 CONGRESSIONAL RECORD — HOUSE November 4, 1999 protect the Social Security surplus. When the amendments were added to spending enough money that has to What they forget to mention is it is the Constitution, first amendment of come from Social Security Trust Fund. only true when the Republican leader- course a priority, freedom of speech Why do we not do what we say we are ship tells CBO to change their num- and freedom of religion. But what is trying to do? Let us not spend the bers. How convenient. the second amendment, the right to money which we do not want to spend. When the Republicans wave around keep and bear arms shall not be in- We use great words like let us invest. the CBO certification that they are fringed. Let us remember that. We are not appropriating enough re- protecting Social Security, they con- f sources. What they are saying is we are veniently forget to mention the foot- not spending enough Social Security STOPPING THE RAID ON SOCIAL note that says that the estimate in- money. SECURITY cludes, ‘‘reductions applied to CBO’s We are saying, let us not spend So- estimates for congressional score- (Mr. THUNE asked and was given cial Security money. Let us keep our keeping purposes.’’ In other words, the permission to address the House for 1 promise to the American people. Let us Republican leadership had to tell CBO minute.) stop being disingenuous. When one to change their estimates to reduce the Mr. THUNE. Mr. Speaker, being a hears people come before one and say estimates of spending to make their leader means making some tough something, watch what they do. When numbers work. They use these esti- choices. This year we have an historic they accuse Republicans of spending mates when they are convenient; but opportunity to lock away 100 percent of Social Security money, watch how when they do not like it, they use the Social Security surplus and put an they vote. other estimates. It is time for respon- end to the practice of raiding the So- f sible budgeting. cial Security Trust Fund. It means we f have to make a tough choice between THE JOURNAL TIGHTEN BELT TO SAVE SOCIAL Social Security and funding some other The SPEAKER pro tempore (Mr. goals, like the President’s desire to in- SECURITY OSE). Pursuant to clause 8 of rule XX, crease foreign aid spending by 30 per- (Mr. KINGSTON asked and was given the pending business is the question of cent. agreeing to the Speaker’s approval of permission to address the House for 1 The question is not whether we want minute and to revise and extend his re- the Journal of the last day’s pro- to spend more on foreign aid or other ceedings. marks.) government programs, the question is Mr. KINGSTON. Mr. Speaker, let me The question is on the Speaker’s ap- whether we want to spend more on say this to the gentleman from Texas proval of the Journal. these programs if it comes at the ex- (Mr. SANDLIN), the previous speaker, it The question was taken; and the pense of Social Security. is not about inside Washington ac- Speaker pro tempore announced that Mr. Speaker, Republicans have al- counting mumbo jumbo, it is about the ayes appeared to have it. ready made our choice. We have chosen grandmother’s retirement check, and I Mr. MCNULTY. Mr. Speaker, I object to say no to more government spending am going to do everything I can as a to the vote on the ground that a and yes to stopping the raid on Social Republican to protect it. quorum is not present and make the Security. The American people agree Now, I do know this, that in January, point of order that a quorum is not with us. They would rather protect So- the President of the United States said present. cial Security and Medicare and cut let us preserve only 60 percent of the The SPEAKER pro tempore. Evi- spending across the board for all other Social Security surplus. The Repub- dently a quorum is not present. programs than raid Social Security lican position has been, let us preserve The Sergeant at Arms will notify ab- again. 100 percent. Let us balance the budget, sent Members. There is only one question that has not through spending Social Security The vote was taken by electronic de- not been answered, Mr. Speaker, and on non-Social Security means, but let vice, and there were—yeas 346, nays 65, that is: Where does the President stand us do it by just good old-fashioned belt not voting 22, as follows: tightening. and where do our friend’s on the other side stand? Will they block this legisla- [Roll No. 563] Now, imagine some little roly-poly YEAS—346 fat kid at the banquet table on his tion and insist on more government spending or will they join us in a bipar- Abercrombie Bryant Delahunt third piece of apple pie saying I want Ackerman Burton DeLauro more. All we are saying is, look, we tisan effort to end the raid on Social Andrews Buyer DeLay want you to slim it down, push back 1 Security once and for all. For the sake Archer Callahan DeMint cent on the dollar, tighten that belt of our future, I hope they will choose Armey Calvert Deutsch the latter. Bachus Camp Diaz-Balart just a little bit, about a half a notch. Baker Campbell Dicks Then if you will do that, we do not f Baldacci Canady Dingell have to get even close to Social Secu- Baldwin Cannon Dixon TELL THE TRUTH, THE WHOLE Ballenger Capps Doggett rity money. TRUTH, AND NOTHING BUT THE Barr Capuano Dooley That is what the Republican Party is TRUTH Barrett (NE) Cardin Doolittle trying to get the Democrats to do. I Barrett (WI) Carson Dreier hope that they will join us. (Mr. GARY MILLER of California Bartlett Castle Duncan Barton Chabot Dunn f asked and was given permission to address the House for 1 minute.) Bass Chambliss Edwards Bateman Clayton Ehlers REMEMBER THAT SECOND AMEND- Mr. GARY MILLER of California. Mr. Becerra Clement Ehrlich MENT IS RIGHT TO BEAR ARMS Speaker, is there any reason or wonder Bentsen Clyburn Engel (Mr. METCALF asked and was given that the American people are confused? Berkley Coble Eshoo Berman Coburn Etheridge permission to address the House for 1 I wish, prior to us being allowed to Biggert Collins Everett minute.) come here and talk to the American Bilirakis Combest Ewing Mr. METCALF. Mr. Speaker, let us people, that we had to raise our hand Bishop Condit Farr and say, I swear to tell the truth, the Blagojevich Conyers Fletcher go back to the founding of our Nation. Bliley Cook Foley Why were the British soldiers march- whole truth, and nothing but the truth, Blumenauer Cox Forbes ing toward Lexington and Concord in so help me God. Blunt Coyne Ford the darkness of April 18, 1775? Because All we have heard today and past Boehlert Cramer Fossella Boehner Crowley Fowler they had heard correctly that the colo- days is the Republicans are spending Bonilla Cubin Frank (MA) nists were stockpiling guns and ammu- Social Security monies. But actions Bonior Cummings Franks (NJ) nition. speak louder than words. My friends on Bono Cunningham Frelinghuysen The colonists had been trying to the other side of the aisle continue to Boswell Danner Frost Boucher Davis (IL) Gallegly work out their problems with the king. vote no on appropriations bills. The Boyd Davis (VA) Ganske But when the British moved to take President continues to veto appropria- Brady (TX) Deal Gejdenson away their guns, they went to war. tions bills. Why? Because we are not Brown (FL) DeGette Gekas

VerDate 29-OCT-99 01:55 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00006 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.016 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11489 Gephardt Maloney (CT) Ryan (WI) Taylor (MS) Udall (NM) Weller tional Association of Elementary School Gilchrest Maloney (NY) Ryun (KS) Thompson (CA) Visclosky Wicker Principals, National School Boards Associa- Gillmor Manzullo Salmon Thompson (MS) Waters Wu tion, National Parent Teachers Association, Gilman Martinez Sanchez and National Education Association have Gonzalez Mascara Sanders NOT VOTING—22 agreed that well sequenced systematic Goode Matsui Sandlin Bereuter Kanjorski Rahall Goodlatte McCarthy (MO) Sanford Burr Kasich Scarborough phonics instruction is beneficial for all chil- Goodling McCarthy (NY) Sawyer Cooksey Larson Sessions dren; Gordon McCollum Saxton Davis (FL) Meek (FL) Watkins Whereas more than 50 years of cognitive Goss McCrery Schakowsky Doyle Mollohan Wise science, neuroscience, and applied linguistics Graham McGovern Scott Emerson Murtha Young (AK) have confirmed that learning to read is a Granger McHugh Sensenbrenner Hulshof Myrick skill that must be taught in a direct, sys- Serrano Green (TX) McInnis Hunter Payne tematic way; Greenwood McIntosh Shadegg Gutierrez McIntyre Shaw b 1103 Whereas phonics instruction is the teach- Hall (OH) McKeon Shays ing of a body of knowledge consisting of 26 Hall (TX) McKinney Sherman Ms. MCCARTHY of Missouri and Mr. letters of the alphabet, 44 English speech Hansen Meehan Sherwood GEORGE MILLER of California sounds they represent, and 70 most common Hastings (FL) Menendez Shimkus changed their vote from ‘‘nay’’ to spellings for those speech sounds; Hastings (WA) Metcalf Shows ‘‘yea.’’ Whereas reading scores continue to decline Hayes Mica Shuster or remain stagnant, even though Congress Simpson So the Journal was approved. Hayworth Millender- has spent more than $120,000,000,000 over the Herger McDonald Sisisky The result of the vote was announced past 30 years for title I programs (of the Ele- Hill (IN) Miller (FL) Skeen as above recorded. Hinchey Miller, Gary Skelton mentary and Secondary Education Act of Hinojosa Miller, George Smith (MI) f 1965 (20 U.S.C. 6301 et seq.)) with the primary Smith (NJ) Hobson Minge ANNOUNCEMENT BY THE SPEAKER purpose of improving reading skills; Hoeffel Mink Smith (TX) Whereas the 1998 National Assessment for Hoekstra Moakley Smith (WA) PRO TEMPORE Educational Progress (NAEP) found that 69 Holden Moran (KS) Snyder percent of 4th grade students are reading Holt Moran (VA) Souder The SPEAKER pro tempore (Mr. Hooley Morella Spence BARRETT of Nebraska). Pursuant to below the proficient level; Horn Nadler Spratt clause 8 of rule XX, the Chair an- Whereas the 1998 NAEP found that minority students on average continue to lag far Hostettler Napolitano Stabenow nounces that he will postpone further Houghton Neal Stearns behind their non-minority counterparts in Hoyer Nethercutt Stenholm proceedings today on each motion to reading proficiency, many of whom are in Hyde Ney Stump suspend the rules on which a recorded title I programs (of the Elementary and Sec- Inslee Northup Sununu vote or the yeas and nays are ordered, ondary Education Act of 1965 (20 U.S.C. 6301 Isakson Norwood Sweeney et seq.)); Istook Nussle Talent or on which the vote is objected to Jackson (IL) Obey Tanner under clause 6 of rule XX. Whereas the 1998 NAEP also found that, 90 Jefferson Olver Tauscher Any record votes on postponed ques- percent of African American, 86 percent of Hispanic, 63 percent of Asian, and 61 percent Jenkins Ortiz Tauzin tions will be taken after debate has John Ose Taylor (NC) of white 4th grade students were reading Johnson (CT) Owens Terry concluded on all motions to suspend below proficient levels, many of whom were Johnson, Sam Oxley Thomas the rules. in title I programs (of the Elementary and Jones (NC) Packard Thornberry f Secondary Education Act of 1965 (20 U.S.C. Jones (OH) Pascrell Thune 6301 et seq.)); Kaptur Paul Thurman SENSE OF CONGRESS THAT Kelly Pease Tiahrt Whereas more than half of the students Kennedy Pelosi Tierney SCHOOLS SHOULD USE PHONICS being placed in the special learning disabilities category of Special Education have not Kildee Peterson (PA) Toomey Mr. MCINTOSH. Mr. Speaker, I move Kilpatrick Petri Towns learned to read; Kind (WI) Pickering Traficant to suspend the rules and agree to the Whereas the cost of Special Education, at King (NY) Pitts Turner concurrent resolution (H. Con. Res. 214) the Federal, State, and local levels exceeds Kingston Pombo Udall (CO) expressing the sense of Congress that $60,000,000,000 each year; Upton Kleczka Pomeroy direct systematic phonics instruction Whereas reading instruction in far too Knollenberg Porter Velazquez Kolbe Portman Vento should be used in all schools, as amend- many schools is still based on the whole lan- Kuykendall Price (NC) Vitter ed. guage philosophy, to the exclusion of all oth- LaFalce Pryce (OH) Walden The Clerk read as follows: ers and often to the detriment of the stu- LaHood Quinn Walsh dents; Lampson Radanovich Wamp H. CON RES. 214 Whereas the ability to read is the corner- Lantos Rangel Watt (NC) Whereas the ability to read the English stone of academic success, and most colleges Largent Regula Watts (OK) language with fluency and comprehension is of education do not offer prospective reading Waxman LaTourette Reyes essential if individuals are to reach their full Lazio Reynolds Weiner teachers instruction in the structure of spo- Leach Rivers Weldon (FL) potential; ken and written English, and the scientif- Lee Rodriguez Weldon (PA) Whereas it is an indisputable fact that ically valid principles of effective reading in- Levin Roemer Wexler written English is based on the alphabetic struction: Now, therefore, be it Lewis (CA) Rogers Weygand principle, and is, in fact a phonetic language; Resolved by the House of Representatives (the Lewis (KY) Rohrabacher Whitfield Whereas the National Institute of Child Senate concurring), That it is the sense of Linder Ros-Lehtinen Wilson Health and Human Development (NICHD) Congress that— Wolf Lofgren Rothman has conducted extensive scientific research (1) phonemic awareness and direct system- Lowey Roukema Woolsey Lucas (KY) Roybal-Allard Wynn on reading for more than 34 years, at a cost atic phonics instruction should be used in all Lucas (OK) Royce Young (FL) of more than $200,000,000; schools as a first and essential step in teach- Luther Rush Whereas the NICHD findings on reading in- ing a student to read; struction conclude that phonemic awareness, (2) pre-service professional development of NAYS—65 direct systematic phonics instruction in reading teachers should include direct sys- Aderholt Gibbons McNulty sound-spelling correspondences, including tematic phonics instruction; and Allen Green (WI) Meeks (NY) blending of sound-spellings into words, read- (3) all Federal programs with a strong Baird Gutknecht Moore ing comprehension, and regular exposure to reading component should use instructional Barcia Hefley Oberstar interesting books are essential components practices that are based on scientific re- Berry Hill (MT) Pallone of any reading program based on scientific search in reading. Bilbray Hilleary Pastor research; Borski Hilliard Peterson (MN) The SPEAKER pro tempore. Pursu- Brady (PA) Hutchinson Phelps Whereas a consensus has developed around ant to the rule, the gentleman from In- scientific research findings in reading in- Brown (OH) Jackson-Lee Pickett diana (Mr. MCINTOSH) and the gen- struction, as presented in the 1998 report of Chenoweth-Hage (TX) Ramstad tleman from Missouri (Mr. CLAY) each Clay Johnson, E. B. Riley the National Research Council, Preventing Costello Klink Rogan Reading Difficulties in Young Children; will control 20 minutes. Crane Kucinich Sabo Whereas the Learning First Alliance com- The Chair recognizes the gentleman DeFazio Latham Schaffer posed of national organizations such as the from Indiana (Mr. MCINTOSH). Dickey Lewis (GA) Slaughter Mr. MCINTOSH. Mr. Speaker, I yield English Lipinski Stark American Colleges for Teacher Education, Evans LoBiondo Strickland American Association of School Administra- myself such time as I may consume. Fattah Markey Stupak tors, the American Federation of Teachers, Mr. Speaker, House Concurrent Reso- Filner McDermott Tancredo Council of Chief State School Officers, Na- lution 214 expresses the importance of

VerDate 29-OCT-99 01:55 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00007 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.002 pfrm02 PsN: H04PT1 H11490 CONGRESSIONAL RECORD — HOUSE November 4, 1999 using proven, scientifically based read- read science in order to understand Mr. Speaker, according to the Amer- ing instruction in the classroom, in their other classes. No wonder they be- ican Federation of Teachers, ‘‘Pho- preservice teacher training and in Fed- come frustrated, no wonder they dis- nemic awareness instruction, when eral education programs. rupt the class, no wonder they drop out linked to systematic decoding and Mr. Speaker, I yield 1 minute to the of school. spelling, is the key to preventing read- gentleman from Pennsylvania (Mr. At least half of the students being ing failure in children who come to GOODLING). Although he could not at- placed in the special learning disability school without these prerequisite tend when this was discussed in com- category of special education have not school.’’ That is, those children who mittee, the gentleman has given his learned to read. The cost of special have not learned to read at home.’’ full support for this. education, Federal, State and local, is The NEA states, ‘‘Mastering basic Mr. GOODLING. Mr. Speaker, I exceeding $60 billion a year. If only a skills is important. Children need to thank the gentleman for yielding me quarter of those students are there be- know their phonics.’’ They are right. this time. What the resolution says ba- cause they cannot read, it represents It not surprising that support for this sically is a concurrent resolution ex- more than $15 billion of effort at local approach is becoming widespread in the pressing the sense of Congress that di- schools. Just think how many schools education community, from the Na- rect systematic phonics instruction is could be built or computers purchased tional Education Association to the one of the necessary components of an or books bought or teachers paid if American Federation of Teachers, the effective reading program. these students were taught to read in National Parent Teacher Association, I think all of you who are here prob- the first grade. the Council for Chief School Officers ably have been taught using many The cost to those who never learn to and numerous other education groups methods, including, I imagine every- read adequately is much higher than which form the Learning First Alli- one, phonics. My wife is a first grade that. Job prospects for those who can- ance. They have concluded that well teacher of 43 years. If she were told not read are few. Americans who can- sequenced systematic phonics instruc- that she could only teach phonics, she not read are cut off from the rich option is beneficial for all children. Phonics is now being promoted by would probably tell them where to go. portunities of this Nation. The tragedy the scientific and some in the edu- If she was told she could not teach is that students who cannot read often cation community as an essential com- phonics, she would tell them where to end up in juvenile hall, or on the ponent of effective reading instruction. go. If she was told she had to teach streets, susceptible to gangs and drugs, whole language, she would tell them On a personnel level, I will share or as school dropouts. with my colleagues in the House, I where to go and how to get there. If she But the good news is that this is a was told she could not use whole lan- have heard so much from parents and problem we can fix. According to Dr. teachers about the success experienced guage with all of her other methods of Benita Blachman, one of the leading teaching reading, she would tell them by their children who have received ex- researchers in reading instruction, ‘‘di- plicit systematic phonics training. I where to go and how to get there. But rect, systematic instruction about the have got with me today several state- the important thing is, it is one of the alphabetic code, phonics, is not rou- ments by Title I teachers, one in Indi- important components in the teaching tinely provided in kindergarten and anapolis, on the effectiveness of of reading. I think everyone here would first grade, despite the fact that, given phonics instruction in teaching chil- agree with that, because that is prob- what we know at the moment, this dren to read. ably the method that was used, and it might be the most powerful weapon in Mrs. Linda Jones, who teaches learn- is scientifically based. the fight against illiteracy.’’ ing disabled children in 6th, 7th and 8th Mr. MCINTOSH. Mr. Speaker, I yield b grade says, ‘‘Since I’ve been using the myself such time as I may consume. 1115 Direct Approach,’’ phonics, ‘‘my chil- I want to thank the gentleman from As she said, this is perhaps the most dren are very excited about learning. Pennsylvania for his support and his powerful weapon in the fight against il- One of my major problem students has willingness to discharge this bill from literacy. In fact, the evidence is so become the best student in the class. committee and commend him for his strong for systematic phonics instruc- Now everyone enjoys coming up to the help in getting it to the floor today. I tion that if the subject being discussed board. We pull words out of reading also want to express my appreciation was, say, treatment of mumps, there comprehension exercises. Now we are to him and his staff for focusing on would be no discussion. We would take pulling words such as ‘hyposensitize’ quality, research-proven techniques in care of it, we would have a plan and the out of the dictionary,’’ states teacher teaching reading in the Student Re- children would be saved. The solution Stuart Wood. sults Act, title I of the Elementary and is to teach children to read the first I also have a letter from a teacher at Secondary Education Act which passed time around. Allisonville Elementary School in Indi- recently; and also in the Reading Ex- According to the National Institute anapolis. She tells me how her student cellence Act which passed last year. of Child Health and Human Develop- from Africa, a little boy that I actually The need for this resolution is clear: ment, the ability to read depends on had a chance to meet, who knew no American students are not reading as one’s understanding of the relationship English when he came to that class, his well as they should and some are not between letters and speech sounds that name was Filimon Adhanom, and able to read at all. The 1998 National they represent. Systematic instruction Filimon did not know how to read, did Assessment of Education Progress, the on phonics teaches this skill, 26 letters not know how to write, did not know NAEP test, has found that 69 percent of used to symbolize about 44 speech how to speak English, and he learned fourth grade students are reading sounds and the most common way they those skills in her classroom with below the proficiency level. Let me re- are spelled. phonics instruction. peat that. Sixty-nine percent of fourth The research in reading makes it In this letter, a summer school graders in America are not reading up clear that all students can benefit from teacher in the same district tells how to standard. Minority children have phonics instruction and that about her school kids were behind in reading, been particularly hard hit by reading one-third of all students need explicit and they caught up after just 15 days, difficulties. According to the NAEP training in phonics if they are to learn with just 25 minutes a day of phonics test, 90 percent of African-Americans, to read at all. That means one-third of instruction. 86 percent of Hispanic Americans, and our young people today, if they do not In this letter a parent says, ‘‘I am 63 percent of Asian students were read- get instruction in phonics, will never writing because I know the pain of a ing below the proficiency level. That is be able to read. That is something that child that attends school every day and unacceptable, Mr. Speaker. What we we cannot afford to leave unaddressed cannot read. I am writing to you, Mr. need to do is make sure that we focus in this House. Congressman, because 10 years later I on doing the best we can to teach those For children who do not receive read- see the joy of independence in that children how to read. What that means ing instruction or even reading expo- same child who can now read.’’ is that they cannot read history, they sure at home, phonics instruction is es- I could go on and on. I have a lot of cannot read literature, they cannot sential if they are to learn to read. these letters, and they all tell the same

VerDate 29-OCT-99 01:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00008 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.020 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11491 story. And it just is not in my district demeaning step of placing Congress in teacher training must be dramatically or just in Indiana. This story is being the classroom by dictating a particular redesigned. Nowhere is that redesign repeated in every community across curriculum choice, regardless of the more needed than in the area of read- America. view of our teachers, principals and suing, the essential foundation for all That is why I introduced this resolu- perintendents at the local level. Is this learning. Furthermore, ensuring that tion. It is my hope that it will encour- what Republicans mean when they say every teacher possesses a strong age the use of this successful technique Washington knows what is best for grounding in phonics must be at heart in classrooms across America. local communities? of our redesign in reading. Believe it or not, despite the wealth Mr. Speaker, when our committee ‘‘Being most grateful for your out- of scientific evidence supporting sys- considered the President’s America standing work on behalf of Colorado tematic phonics, despite the anecdotal Reads legislation during the last Con- children, I remain sincerely yours, Wil- evidence that I talked about today, gress, we learned from witness after liam J. Maloney, Colorado Commis- there are in fact children today in witness that a solely phonics-based sioner of Education.’’ America who are not receiving this curriculum or solely whole language I would submit there is one more ex- type of instruction, teachers who do based curriculum is not effective in pert that should be considered, and this not have the benefit of this learning teaching children to read. expert is like many throughout the tool. There are schools in my own state Last year, reading instruction ex- country, this is a grandmother who which are having to use their scarce perts testified before our committee sent me an e-mail on this very bill. funds to instruct newly hired teachers that a balanced approach, using Here is what she says. how to teach phonics because they phonics and whole language, is the ‘‘I would like to go on record that I have not been taught in college or in most effective and proven way to teach have six grandchildren in Larimer and their teacher training courses. children to read. Weld Counties in Colorado, and I must This resolution is aimed at getting What is most objectionable about tell you that the two that are in Weld the word out, getting the word out this resolution is its forcible intrusion County (Eaton School District), are ex- about the need for phonics instruction, into the classroom through a Federal cellent readers, which teaches phonics. the need for our children of all back- endorsement of what should be locally The four here in Larimer County (Ft. grounds to have this instruction so determined curriculum. Collins schools) are terrible readers, Why does the Congress need to make they can have the ability to learn and not taught phonics. Thank you.’’ an affirmative statement that phonics to read. Many students will not get a That letter is from B. Bessert of Fort and phonics solely should be utilized in second chance. Collins. schools? I say that anyone who votes Andrea Neal, a very gifted writer for Mr. CLAY. Mr. Speaker, I yield 3 for this resolution dictating how teach- the Indianapolis Star, put it this way: minutes to the gentleman from Indiana ers and local school boards should ‘‘It is reasonable and necessary to re- (Mr. ROEMER) teach reading should never again speak quire elementary teachers be trained in Mr. ROEMER. Mr. Speaker, I thank of local control of our schools. the ranking member from the State of the most effective phonetic programs. Mr. Speaker, I urge Members to op- To do otherwise is to commit edu- Missouri for yielding me time. pose this resolution. Mr. Speaker, I rise to articulate some cational malpractice on our children.’’ Mr. Speaker, I reserve the balance of deep reservations and concerns about We need to start teaching kids to my time. this resolution. Certainly, as a parent read. Phonics is the way to make sure Mr. MCINTOSH. Mr. Speaker I yield 2 that happens. As the gentleman from minutes to the gentleman from Colo- of three children, I want my children Pennsylvania (Mr. GOODLING) said, it is rado (Mr. SCHAFFER). to be able to read; as a member of the one of the ways in which teachers need Mr. SCHAFFER. Mr. Speaker, I Committee on Education and the to be able to teach. would remind the previous speaker and Workforce I want the scientific com- So while Concurrent Resolution 214 others who are considering this matter munity to be able to make rec- contains no mandate, I hope it will that the resolution before us is a sense ommendations to our local school convey an important message to of Congress resolution and in no way boards and to our teachers on what schools and teachers and children and represents any sort of mandate or dic- method works best; and as a Member of their parents all across this Nation. tate or requirement at the Federal Congress, we certainly want to share Mr. Speaker, I reserve the balance of level, merely a statement of opinion with the American people some of our my time. based on some simple observations ideas on this. Mr. CLAY. Mr. Speaker, I yield my- from the scientific community and the But as a Member of Congress, I am self such time as I may consume. academic community that phonics very hesitant to say that I am the ex- Mr. Speaker, once again I am befud- works and should be preferred. pert on reading here in Washington, dled, bewildered, but mostly amazed by Let me give you a perfect example of D.C., and our local school boards the explanation given by the chairman an expert who speaks forcefully on the should prioritize and use this as the of the Committee on Education and the matter. This is a letter that I received first method of teaching our children Workforce of what this resolution does. from the Colorado Commissioner of in Indiana, in Nebraska, in Georgia, in He says it is only one of many meth- Education. New Jersey and throughout the coun- ods that can be used to teach reading. ‘‘I am writing in response to your re- try, as to what we should be telling our But I am reading the resolution itself, cent inquiry,’’ which was about this first grade and second grade teachers and it says ‘‘direct systematic phonics bill. ‘‘I strongly support the need to re- we think this is the priority, that we instruction should be used in all dress the balance in American reading think this is the first way you should schools as a first and essential step in instruction. Sadly, over time, that bal- do this; we think this is our preferred teaching a student to read.’’ ance has tilted against phonics, which method, so you should do it in all 50 Mr. Speaker, this resolution states throughout our history has been a states. I do not think that is our role, that phonics-based instruction should foundation of solid reading skills. quite frankly. be used by all schools in their efforts to ‘‘The proper interaction between the Now, if the resolution read, as it does teach children to read and should be in- 44 sounds, or phonemes, and the 26 let- in the third resolved clause, ‘‘all Fed- cluded in pre-service teaching require- ters of the English language is some- eral programs with a strong reading ments. thing that must be well understood by component should use structural prac- What other insulting gimmicks will all who would aspire to teach our tices that are based on scientific re- the Republican leadership think of young children. Tragically, by their search in reading,’’ period, I think we next? This resolution ignores the vol- own testimony, our reading teachers in could all agree to that. But the first re- umes of research on reading instruc- overwhelming proportion have not resolved clause, probably the most im- tion that shows the need for a balance ceived this training in anywhere near portant resolved clause, says ‘‘Direct between phonics and whole language the measures needed. systematic phonics instruction should instructional techniques. This resolu- ‘‘Today, at the national and state be used in all schools as a first and es- tion also takes the unprecedented and levels, there is broad consensus that sential step in teaching a student to

VerDate 29-OCT-99 01:57 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00009 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.024 pfrm02 PsN: H04PT1 H11492 CONGRESSIONAL RECORD — HOUSE November 4, 1999 read.’’ All schools, the first and essen- we realize that this individual was not Mr. UNDERWOOD. Mr. Speaker, I tial step. only an outstanding teacher, she was thank my colleague for yielding me the b 1130 also becoming an entrepreneur. With time. her limited funds she started buying Mr. Speaker, I rise to express my dis- I am here to stand up for my local houses. She gave $2 million to the Isa- may and disappointment that this school boards and my local teachers bel Patterson Child Development Cen- House is taking up an entirely unneces- and my local parents and say, you guys ter at California State University, sary resolution endorsing phonics in- should figure this out. I am not sure we Long Beach. struction and criticizing whole lan- should be telling them the preferred Mr. CLAY. Mr. Speaker, I yield 2 guage reading instruction. way, the priority. minutes to the gentleman from New As a former dean of a school of edu- Additionally, the National Academy Jersey (Mr. ANDREWS). cation and a teacher trainer who in- of Sciences study issued last year rec- (Mr. ANDREWS asked and was given cluded a discussion of the fundamental ommends a combination of methods, permission to revise and extend his re- underpinnings of various teaching that phonics and whole language marks.) strategies in several courses that I should be blended for our young people. Mr. ANDREWS. Mr. Speaker, I thank taught for nearly two decades, this Now, could we say that? I am not even my friend, the gentleman from Mis- really does take the cake. This is one sure we should say they should be souri, for yielding time to me. of the most preposterous resolutions I blended. Mr. Speaker, in a couple of days I have ever seen about a teaching strat- I think that the third resolve clause, egy. saying that all Federal programs with have one of the most important meetings on my schedule for the next couple Different teaching strategies work a strong reading component should use for different people for different rea- instructional practices that are based of months. It is with a person named Ms. Jordano. Ms. Jordano is my daugh- sons. Teaching strategies have a psy- on scientific research in reading, and chology base and a philosophical base not dictate to our local schools what ter Jacqueline’s first grade teacher. My wife and I are going to the parent- which is continually tested and tem- should be taught first, what should be pered by practice and by classroom taught in all schools, what should be teacher conference. When we go to the patient-teacher conference, we are trial and error, by experience in unique priorities, what should be preferred, I and diverse communities around the think that goes a bit too far for our going to listen to what she has to say, because we respect her ability after country. local school boards and our local par- To quote something that is fre- years in the classroom to know about ents. quently said on the other side, ‘‘The how to teach a first grader how to read. Let us continue to give them the best decisions about education are left choices and the discretion, so I have Today I find myself in a different to individual communities, to indi- reservations and caveats about this role. We are giving unsolicited advice vidual teachers in classrooms, to the resolution. to the reading teachers of America as local situation,’’ of course, except when Mr. MCINTOSH. Mr. Speaker, I yield to how they ought to teach reading. We it comes to phonics versus whole lan- 2 minutes to the gentleman from Cali- certainly are entitled to our own opin- guage. fornia (Mr. HORN). ion, but I think to offer that opinion as I cannot imagine why a national leg- Mr. HORN. Mr. Speaker, I thank the an institution is an abrogation and islative body would spend its time on gentleman for yielding time to me. overstepping of our authority as the this issue, which is hotly debated and Mr. Speaker, we have experts who Congress of the United States. should be hotly discussed in classrooms will tell us one thing and then another, I would consider voting for this reso- and in schools of education around the and that is not the test. The test is ex- lution on one condition. If we are going country, but a subject for congres- perience: what happens when we teach to take responsibility for determining sional thinking? Neuroscience, applied phonics? reading curriculum for the teachers of linguistics, phonemes, phonics, California went through this for the America, let us give the teachers of morphemes, syntax, grammatical rules last 50 years in K through 12 education. America responsibility for determining which are psychologically real in our In the thirties in Pasadena and other other questions about education. Let minds, to speech events, understanding ‘‘progressive’’ schools they banned us let them decide whether to fully speech events, how many people here phonics. In one of the major cities in fund the IDEA. Let us let them decide are equipped to understand the mean- Los Angeles County in the fifties they whether to put 100,000 qualified teaching of these terms and debate them had banned phonics. ers in classrooms across America. Let with comfort and assurance? A friend of mine who was a fifth us let them decide whether to fix the What is next, a resolution on new grade teacher kept two erasers in her crumbling school buildings that exist math, a resolution on creationism, a hand. One was when the principal came in communities across America, and resolution on the role of lab work in through the door, to wipe out the build new schools. Let us let the teach- science courses, a resolution on direct phonics she had put on the blackboard. ers of America decide whether we instruction, a resolution on our favor- That went on for a year or so. At the should make a true national commit- ite surgical technique in medicine, on end of that year, achievement tests ment to pre-kindergarten education, our favorite offense to be used by foot- were given. The principal said to her, which we do not presently have. Let us ball teams around the country, a reso- ‘‘Mrs. Patterson,’’ her name was Isabel let them decide whether we should in- lution on the superiority of walking Patterson, ‘‘Mrs. Patterson, you just crease Title I funding, as many of us over running in exercise? have a very unusual, unique class. In advocated on this floor just a few The best way to teach reading is an this whole city of 350,000 people, your weeks ago. issue which belongs in research institu- class has been 25 to 50 percent ahead of I suspect if we yielded that authority tions. It is a matter which is best left every single other class in this school to them, that they would vote in favor up to classroom professionals and for system.’’ of all those things for education. I sus- communities to sort out. Mrs. Patterson just smiled and said, pect the majority will not want to do This resolution, as my colleague, the ‘‘Thank you, Principal.’’ He praised her that. For that reason, we should get gentleman from Missouri (Mr. CLAY) teaching and all that. He did not know back in our proper role, defeat this su- pointed out, is so absurd, it is the one she was teaching phonics. She was the perfluous amendment, and pass real time that perhaps I really wish I could only one in the whole city who was education legislation to improve Amer- vote on this floor so I could vote teaching phonics. That is why her stu- ica’s schools. against it. dents were way ahead of every student Mr. CLAY. Mr. Speaker, I yield 3 Written English is a crazy language in that city. minutes to the gentleman from Guam in written form. The companion meas- That school district now has adopted (Mr. UNDERWOOD). ure to this should be to go back to that phonics, and so have most districts in (Mr. UNDERWOOD asked and was earlier movement in the earlier part of California. They are through with what given permission to revise and extend this century when we tried to make went on in the thirties. I think when his remarks.) English totally phonetic. That would

VerDate 29-OCT-99 02:14 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00010 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.026 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11493 really facilitate phonics, and then we Mr. MCINTOSH. Mr. Speaker I yield COMMONLY ASKED QUESTIONS ABOUT READING would have to spell phonics F-O-N-I-K- myself the balance of my time. INSTRUCTION S. Mr. Speaker, in closing, I would urge (By Dr. Patrick Groff, NRRF Board Member Mr. MCINTOSH. Mr. Speaker, I yield my colleagues to support this resolu- & Senior Advisor) 2 minutes to the gentleman from Geor- tion, and would like to share with Q: What Do Children Need To Learn In gia (Mr. ISAKSON), a member of the them some of the materials I have put Order To Read Well? committee. into the RECORD. A: Four main things: (1) phonics informa- Mr. ISAKSON. Mr. Speaker, I rise for The first is a statement from Indiana tion and how to apply it to recognize words; (2) familiarity with the meanings of words; a couple of reasons. The gentleman State Senator Teresa Lubbers, who is (3) the literal comprehension of what authors from Indiana (Mr. ROEMER) made some an expert on education, having been a intended to convey; and (4) a critical atti- very great statements, and he referred teacher herself and worked mightily in tude toward what is read. to the resolve clauses, but he neglected that area in our State Senate. She has Q: What Is Phonics Information? to refer to the amendment which ap- worked to improve the performance of A: The relationship or correspondences be- pears at the end of that page which, in Hoosier students, and she is absolutely tween how we speak and spell words. The in- my judgment is effective, as one who is convinced that our success depends on dividual speech sounds in our oral language a big advocate for children, because it our ability to produce competent generally are represented regularly by certain letters, e.g., the spoken word—rat—is amends the whole code, which says teachers. spelled r-a-t. that phonics is one of the necessary She goes on to say, one ingredient of Q: What Is A Phonics Rule? components. that is, ‘‘I am also convinced that A: The rule that a speech sound is spelled The truth of the matter for any of us phonics awareness is the preferred and frequently by a certain letter (or cluster of who have been in education, this de- proven way to teach reading. We do our letters), and in no other way. For example, bate today is like many debates that children a disservice when we allow the speech sounds /r/-/a/-/t/, in this order, are go on in America between whole lan- them to move ahead without a mastery spelled r-a-t over 96 percent of the time. guage advocates and phonics advo- of reading, which ensures frustration Children apply phonics rules to gain the ap- proximate pronunciations of written words. cates. I will tell the Members, both of and failure throughout their school After this, they usually can infer the normal them are right. Both of them should be years.’’ pronunciations. included. This says our teachers do Mr. Speaker, I would mention again A: How Does The Application Of Phonics have the choice, and it is very impor- the statistic I said in my opening Information Work? tant. statement: 67 percent of our fourth A: The child first perceives the individual I rise today because I want to pay graders in America are below standard letters in a word, e.g., rat. He or she than tribute to the United States Depart- in reading. That is unacceptable. This ‘‘sounds out’’ this word by saying its three ment of Education for providing us in resolution says, let us do everything speech sounds, /r/-/a/-/t/. As children’s skills grow in phonics application, they can quick- Georgia with a Goals 2000 grant which possible to make that work for them. ly recognize frequently occurring letter clus- allowed us to develop the phonics-based Phonics is one of the ways in which ters such as at (as in fat, cat, mat, etc.). Reading First program in Georgia teachers can do that. Q: How Is Phonics Information Best under Dr. Cindy Cupp, which enabled A second statement that I would like Taught? our Title I schools, after its implemen- to enter into the RECORD would be from A: In a direct, systematic, and intensive tation, to raise our children across the Linda Wight Harmon, who is a parent. fashion. Here both teacher and pupil know board by higher than the 25th per- She talks about her eldest daughter, precisely what are the instructional goals, centile in each and every category. Catherine, who uses the skills of read- and the skills to be learned are arranged into Phonics is one, but not the only one. ing in the second grade, where she a hierarchy of difficulty, and adequate practice for learning to mastery is provided. It should be included and not excluded. learned phonics from a private tutor in Q: What About Children Who Can Recog- With the amendment, this resolution a computerized language program. nize Individual Words, But Whose Reading ensures that we recognize it as a meth- Another is a list of several success Comprehension Is Relatively Poor? odology, it is not a curriculum, and we stories from teachers in our public A: These children are lacking in one or all encourage schools to use all the best schools in Indiana. of the following: (1) background knowledge methods to teach our children. The letter that I mentioned earlier in the topics they attempt to read; (2) knowl- I commend the gentleman from Indi- from an elementary schoolteacher in edge of the meanings of words in these topics; (3) ability to make inferences about the ana (Mr. MCINTOSH). Most importantly grade one, Ms. Kristi Trapp, who content being read; and (4) ability to follow of all, I commend this Congress for fo- talked about her student from Africa, the organization or structure of the text that cusing on America’s number one prob- the young man who was not able to is pursued. Teaching for these children lem in public education. That is, the read at all but was able to learn in her should concentrate on these matters. poor reading performance of our chil- school; then also another teacher from Q: What Is The Relationship Of Knowledge dren as they leave the third grade. that same school, Mrs. Karin Jacob. Of Phonics Information and Reading Com- We should give our teachers every re- Finally, we have several other things prehension? source to meet the needs of every child, from parents. One of them is from A: Nothing develops the quick and accu- whether it be whole language or wheth- Diane and Bill Walters, who talk about rate (automatic) recognition of written words better than does proper phonics in- er it be phonics-based. the never-ending story of trying to get struction. Then, nothing relates more close- Mr. CLAY. Mr. Speaker, I yield my- Justin, their son, to be able to read, ly to reading comprehension than does auto- self 30 seconds. and several statements that were pre- matic word recognition. The ability to recog- Mr. Speaker, I would respond to the pared for the interim study committee nize words automatically allows children to gentleman from Georgia, who said that in the Indiana State Senate, one from direct their mental energy when reading to- the amendment to this bill corrected Ms. Diane Badgley, another came from ward the comprehension of written material. what the problem was. It does not. Peggy Schafir, another from Susan Q: My School Tells Me That My Child Has An amendment that amends the Warner. Been Taught To Apply Phonics Information. title, and that is what this amendment All of these parents and teachers talk But He/She Still Has Difficulty Recognizing Words. What Is The Problem? or footnote at the end of this resolu- about the success of phonics for their A: It is highly probable that your school tion says, is ‘‘concurrent resolution ex- children. That is what we are talking actually teaches phonics information in only pressing the sense of Congress that di- about today, is the children of America an indirect, unsystematic, and non-intensive rect, systematic phonics instruction is and how we can help them learn to manner. Since many of today’s schools do one of the necessary components of an read. not teach phonics skills sufficiently nor suit- effective reading program.’’ Finally, I include for the RECORD a ably, home instruction often becomes nec- That is just in the title, it is not in list of commonly asked questions essary. the body of this resolution. It has no about reading instruction that was pre- Q: Isn’t The Spelling Of English Too Un- predictable Or Irregular For The Application effect whatsoever on what is in this pared by Dr. Patrick Groff, who is a Of Phonics Information To Work Well? resolution. board member and senior adviser to the A: No. True, there are notable exceptions Mr. Speaker, I yield back the balance NRRF. to some phonics rules, e.g., the pronuncia- of my time. The material referred to is as follows: tion and spelling of tough. Nonetheless, the

VerDate 29-OCT-99 01:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00011 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.029 pfrm02 PsN: H04PT1 H11494 CONGRESSIONAL RECORD — HOUSE November 4, 1999 notable successes of direct and systematic A: False. The use of context cues is a rel- teaching of phonics is necessary. It is impor- phonics programs disprove the above charge. atively immature and crude means of word tant to note that there is no experimental Q: My Child Reads Slowly, But Accurately, recognition, utilized extensively only by be- research evidence to support this view of At The Same Speed Both Orally And Si- ginning readers. Able, mature readers gen- phonics instruction. lently. Is This A Matter Of Concern. erally recognize words automatically, not Q: What Is The Whole Language Theory A: Accuracy in reading almost always is a through the use of context cues. Regarding Reading Comprehension? more important goal than rate of reading, Q: Won’t The Intensive Teaching Of A: The Whole Language (WL) approach especially with beginning readers. Very high Phonics Information Cause Reading Com- urges children to omit, substitute, and add rates of speed in reading, in fact, are illu- prehension To Be Largely Ignored Or De-em- words—at will—in the materials they read. sionary. They inevitable are simply scanning phasized In Schools? It also encourages children to ‘‘construct’’ or skimming, rather than true reading. Even A: This is an unverified apprehension. In- idiosyncratic versions of the meanings that the average university student actually tensive phonics instruction simply develops authors intended to communicate. It is a reads around the same speed, orally and si- a necessary tool for the expeditious realiza- ‘‘pernicious’’ practice to expect children to lently. tion of the ultimate goal of reading: to com- give ‘‘right’’ answers regarding word identi- Q: Isn’t It True That Many Children Can- prehend literally, critically analyze, and ties and the meanings of written text, a lead- not Learn Phonics Information? enjoy and appreciate written material. In er of the Whole Language movement admon- A: To the contrary, rarely is this so. Only fact, intensive phonics teaching is the most the small number of children with genuine ishes teachers. As with their views on felicitous and quickest way to create inde- central nervous system dysfunctions experi- phonics instruction, the proponents of Whole pendent readers, i.e., children who can read- ence significant difficulty learning properly Language offer no empirical verification for ily comprehend any written topic about taught phonics information. their opinions about how reading comprehen- Q: My Child’s Teacher Says That ‘‘Sight’’ which they can talk or think. sion should be developed. The most unfortu- Q: Does Teaching Children To Syllabicate Words, Recognized As ‘‘Wholes,’’ Must Be nate consequence of Whole Language teach- Long Words Help Them To Recognize These Learned Before Phonics Instruction Is ing is that children are not made ready by it Words? Begun. Is She Correct? to read critically. Since children in Whole A; No. The Assumption that children rec- A: Yes, with proper teaching. Children Language classes are not always expected to ognize words by ‘‘sight,’’ that is, without readily can identify the number of syllables gain the exact meanings that authors in- using their letters as cues to their recogni- in a spoken word. Thus, they correctly will tended to impart, they are not prepared to tion, is not substantiated by the experi- say there are four syllables in interesting. examine them critically. mental research. Individual letters are the Teaching dictionary syllabication of words Q: Shouldn’t Children Who Speak Non- cues all readers use to recognize words. For to help children read them is not the most standard English (e.g., ‘‘I Ain’t Got No Pen- example, we know cat and rat are different productive practice, however. A better proce- cil. They be Having’ My Pencil.’’) Learn words because we see that their first letters dure is to teach children to first identify the Standard English Before Being Taught To are not the same. ‘‘Sight’’ word advocates vowel letters in long words, and then to at- Read? never answer the question: ‘‘If children rec- tach the consonant letters that follow. The A: While mastery of standard English is re- ognize words as wholes, how are the wholes syllabication of interesting thus becomes quired in many jobs, it is not expedient to recognized? int-er-est-ing. Manipulate becomes man-ipul- wait until children who speak nonstandard Q: What Is A Reasonable Time Schedule ate. English learn the standard dialect before For Children To Develop The Ability To Rec- Q: Books Called ‘‘Basal Readers’’ Are Wide- teaching them to read. Moreover, there have ognize Words Independently, Without Some- ly Used in Schools. Are They The Best Means been successful reading programs with non- one Else’s Help? By Which To Teach Phonics Information? standard speakers, who usually are children A: These books, given grade-level designa- A: With proper phonics teaching it is jus- from low-income families. Taking time out tions, are accompanied by instructional tifiable to expect the normal child to reach of reading programs to deliberately try to manuals for teachers. Unfortunately, they this state by the end of grade two. More apt change children’s dialects neither is an eco- generally do not teach phonics information pupils can become self-sufficient in reading nomical use of this time, nor particularly ef- adequately. With rare exceptions, they do at even an earlier age. Reading independ- fective in developing reading skills. Learning not teach enough phonics information to ently means the ability of children to read to read standard English, fortunately, does prepare children to recognize quickly and ac- without help any topic they normally can have the desirable side effect of teaching curately the words they present in their sto- talk about or otherwise understand. children how to speak standard English. ries. It has been found that almost any basal Q: I Have Heard About The ‘‘Look/Say’’ Q: Some Schools Say They Are Teaching reader system is improved by the addition of Method Of Teaching Reading—Is This A ‘‘Metacognition’’ In Their Reading Pro- Valid Approach? intensive phonics teaching. Q: Many Schools Now Tell Children To Use grams. Is This A Necessary Or Valuable A: No. ‘‘Look-Say’’ methodology assumes Practice? that if children are given enough repeated ‘‘Invented Spelling.’’ Are There Any Dangers In This Practice A: Metacognition refers in part to chil- exposures to words as ‘‘wholes,’’ they will dren’s conscious awareness of how well they learn to identify them as ‘‘sight’’ words. A: Yes. To avoid frustrating these young pupils, they should be provided words to read are progressing, during the actual time they Phonics teaching is de-emphasized and de- are reading. For example, children would ask layed. ‘‘Look-Say’’ suffers the same basic that their phonics training has prepared them to recognize. Also, long and convoluted themselves, ‘‘Does what I am reading make weakness as any other ‘‘sight’’ word method. sense to me? If not, why not?’’ Schools that Q: What Are the Best Ways To Test My sentences should be avoided. As children’s emphasize this overt self-examination by Child’s Reading Abilities? reading abilities grow, these controls can be A: First, listen to him or her read aloud. If relaxed progressively. children of their reading and performances he or she guesses at words, some additional Q: It Is Said That Literacy Instruction find that pupils learn to comprehend reading direct and systematic phonics instruction is Should Be ‘‘Integrated.’’ What Does This material better than otherwise is possible. called for. Then, jot down critically impor- Mean? Q: What Is an Effective Way For Parents tant parts of the story your child reads A: Literacy consists of writing as well as And Other Interested Parties To Find Out If aloud. Have him or her retell the story. How reading ability. It greatly reinforces a Their Schools Are Teaching Reading Prop- many consequential points were omitted? If child’s ability to recognize a word if he or erly? this is more than 20 percent, discuss ahead of she learns to spell and handwrite it imme- A: The first question to ask of schools is, time with your child the topic and the spe- diately after learning to identify it. Urging ‘‘Have you adopted the Whole Language ap- cial words of the next story he or she reads. children to write this word at this time in proach to reading development?’’ If so, de- Unfamiliar words and topics are the greatest original sentences has the same desirable ef- scribe how it is conducted.’’ If the answer is handicaps to reading comprehension. fect. yes, it usually will be the case that pupils Q: Is The ‘‘Language Experience’’ Method Q: My School District Has Adopted The are not being given proper instruction in Effective For Reading Development? ‘‘Whole Language’’ Approach To Reading De- word recognition nor reading comprehension. A: In this approach children dictate sen- velopment. What Are Its Views On Phonics Then, ask to see the syllabus for teaching tences to teachers, who transcribe them on Teaching? phonics information that teachers are re- large sheets of paper as children watch. It is A: Whole Language advocates insist that quired to follow. Determine if phonics infor- theorized here that anything children can so reading instruction must not be broken down mation is being taught directly, systemati- ‘‘write’’ they also easily can read. Since and taught as a sequence of subskills, rang- cally, and intensively. Calculate how ade- most LE programs do not teach phonics di- ing from the least to the most difficult for quately children are prepared, through rectly, systematically, and intensively, they children to learn. They assert that all read- phonics lessons, to recognize the words in do not prove to be a superior way to teach ing skills of every kind must be learned co- the stories they are given to read. children to read. instantaneously. Therefore, whatever Q: I Have Discovered That My School Q: I have Heard That Children’s Guessing phonics information individual children may Teaches Reading Improperly. Now What Do I At Words, Using Sentence Contexts As Cues need to know they easily will infer on their Do? To Word Identities, Can Substitute For The own as they read ‘‘real books.’’ Since chil- A: The policies for reading instruction or- Application Of Phonics Information. True Or dren supposedly best learn to read simply dinarily are set by the central office staff of False? ‘‘by reading,’’ no direct and systematic the school district. It is delegated to do so by

VerDate 29-OCT-99 01:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00012 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.004 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11495 the school board. Ask these officials to de- stand the letters on a page can be sounded ondary teachers and parents. We now know fend in writing the defective reading pro- out to make words. This seemed impossible it will take a whole community to teach gram they have sanctioned for use by teach- and painful for all of us including the school. ALL children. ers. Particularly, request citations of the ex- As a result of daily embarrassment and the How well one reads sets the foundation for perimental research on which this unsound need to fit in, Kyle was able to memorize future success in school, work and relation- reading program is based. If you have found some books, so it appeared he was reading. ships. Because our family was financially that the unsatisfactory reading program is However, after testing, the Public School able to help Kyle build that foundation, he is the Whole Language approach, you will re- recommended Special Education placement. ready to face the future. Our hope is that all ceive no such list of experimental research Kyle was removed from his second grade Indiana children will have the same choices. studies, since the empirical research does class and placed in a smaller class with chil- not support Whole Language. In this event, dren with all different emotional and phys- TESTIMONY OF SUSAN L. WARNER demand that your school board make a pub- ical special needs and with a teacher who Good Afternoon. I’m Susan Warner, and I lic policy statement as to whether the dis- thought she knew how to help him. This is want to thank you for taking the time to trict’s reading programs must be based on when emotional struggles started for Kyle. have this important discussion about read- experimental research evidence. Few, if any, In his world he was not only failing ing. I title this humble effort ‘‘Bill’s Story.’’ school boards will say otherwise. Then, re- academicly but also socially. I assured Kyle My six year journey to learn about the mind the board that it logically cannot con- the placement was temporary, because he teaching of reading began when our son tinue to authorize the use of the Whole Lan- would be taught to read in this class and showed difficulties in speech. We took three guage scheme. Your appearances at board then be able to rejoin his friends. year old Bill to his school for speech testing. But, in third grade he was still not reading. meetings, and letters to the media will give This coincided with the pre-school teacher When Kyle was invited to sleep overs at a you added opportunities to convey this mes- noticing that Bill didn’t always ‘‘hear’’ her. friend’s house, he refused for fear he would sage. Bill did have chronic ear infections as a tod- have to play games that required reading dler, so we had his hearing tested. In both (Monopoly, Clue, Charades), or take a turn APRIL 13, 1999. sets of tests, he was pronounced, ‘‘just fine,’’ reading jokes out of a joke book, or read a To Whom It May Concern: and we were temporarily relieved. In kinder- scary story at midnight. Once, Kyle tried Filimon Adhanom is a student in my room garten he passed all of his ‘‘sounds’’ of the going to a sleep over. He hadn’t been there who came from a remote area in Africa. The alphabet test. I taught him ‘‘hooked on long when we got a call asking us to pick language he speaks we can not find an inter- phonics’’ in hopes that it would help him him up. He was behaving badly. You see, preter for. He came to me this year with no learn to read, but nothing worked. I was be- Kyle would much rather be seen as a bully English background and no school experience ginning to learn about the difference be- than a dummy. at all. tween ‘‘phonics’’ and ‘‘phonemic awareness.’’ Each day in my classroom, we would work Kyle was promoted each year. Each year, By this time Bill’s happy disposition was on the sounds on the ‘‘Smart Chart’’ as a he struggled with reading and with his peers, gone, and it was a huge undertaking just to whole group. Each day Filimon would sit and they teased him, they couldn’t believe he get him to the bus stop because he hated listen. During our ‘‘Smart Chart’’ time each couldn’t read. He was passed on year after school. day I would allow the children to come up year because of Special Ed. Accommodations First grade testing revealed that Bill test- and say the sounds of a certain row. Then and adaptations—books on tape, an aide to ed ‘‘borderline’’ by state guidelines. He did one day I happened to call on Filimon just to write his essay tests, reduced spelling list, not qualify for an IEP, because the results of see if he was catching on and to my amaze- untimed test—and working through recess testing did not show a two year grade deficit ment he could say the whole column of and lunch to get all the work done. But still in learning yet. Private testing confirmed sounds. He earned a star for his effort and not reading enough to be independent. I kept that although Bill possessed an IQ of 109, he before long he knew all the sounds on the thinking what year will they focus on the had difficulty processing auditory informa- ‘‘Smart Chart’’. reading? Soon after this Filimon starting sounding One day when he was in fifth grade, I found tion. We still wonder why the state guide- out words he really didn’t know the mean- Kyle’s older sister reading him a note from a lines are structured to allow children to fail. ing, but because of the sounds he had learned girl in his grade. That was when I realized, Again, on our own, we found a program from the chart he now can read, sound out ‘‘This is all wrong. He will never fit in unless called Fast Forward which Bill completed most words, spell, write, and even spell big I find a way to teach him to read. He needs the summer before second grade. The second daddy words that have three syllables. The to be out playing during recess, eating lunch grade teacher was confident that with inten- ‘‘Direct Approach’’ to phonics gave Filimon with other kids. Playing games at sleep sive phonics he would make progress. It the key to unlocking the world of English overs, playing on the computer, reading and didn’t take long to see that Bill was still and how it works. writing his own love notes.’’ failing and frustrated, and needed help. I feel that the Direct Approach to Phonics My husband, Keith, is a director of a de- Through a friend, we hired Linda Mood Bell is a necessary tool to helping not only ESL partment for a plastics company in Rich- clinicians. It was no surprise that Bill now students, but all students high or low. It has mond, Indiana. Keith admitted to me that at age 8, was reading far below his ability. been one of the most encouraging programs the would never hire Kyle—his own son—un- It is difficult to express what the Linda I have seen for years. I wish every child less he learned to read. Even in a mainte- Mood Bell program has done for our son. could have the opportunity to work with the nance position, Kyle would be a safety haz- After eight weeks he was finally reading. ‘‘Smart Chart’’. It gives each child a key to ard in the work place. The LMB tutors were my son’s lifeline. With- unlock the world of letters, sounds, and read- I realized then, as Kyle’s mother, I had out them, Bill would have failed school at ing. nothing to loose. I signed a home schooling second grade. Bill made gains in every area. Sincerely, form and enrolled Kyle in a private reading When his principal and teacher came to ob- MS. KARIN JACOB. clinic. The clinics reading instruction is serve, they could not believe his progress. Bill started to be his funny self. I knew that The following statements were given by based on the 30 years of NICHD (National In- stitute of Child Health and Human Develop- we were making progress, when he went from Hoosier parents before the Interim Study ment) research. Kyle learned how to break saying that tutoring made him want to say Committee of the Indiana State Senate. apart words into sounds. For him, this was the ‘‘CH—’’ word, to after 8 weeks saying TESTIMONY FROM DIANE BADGLEY the key that unlocked the door. He went that he wanted to say the ‘‘SH—’’ word. Un- I’m writing because I know the pain of a every day with homework on weekends. It fortunately, the rebuilding of his self-esteem child that attends school everyday and can was intensive, bit it was like magic. Kyle will probably take years. not read. I’m writing because 10 years later wanted to go! He was reading on grade level Last week Bill earned his first ‘‘spelling I see the joy of independence in the same in 6 months! star.’’ We are using the tools that the LMB child who can now read and has been given a This experience taught me that Kyle did program has taught us. Unfortunately, he is choice to his future. I have learned, children not fail reading all those years, the system still behind after spending over $25,000.00 in don’t fail, adults fail children. failed Kyle. I am not asking public schools to testing and remediation, and we have a long Kyle started preschool at age 3, I helped in teach all children Physics X, we are talking road ahead of us. Instead of working to pay the school, we were fortunate enough to not about reading. We know now because of the this off, my days are spent driving back and have me away at work. This allowed for a lot NIH research all children can learn to read, forth for the purpose of expensive remedi- of time for one on one interactions and read- it is our responsibility to teach them. ation. However, it is a small price to pay being. I was always told that if I read to my Since Kyle’s success, I have attempted to cause our son no longer looks at the pictures children every day they would become read- help other parents and schools with their in a book to figure our a word. What happens ers. It worked well for Kyle’s older sister children. Kyle is in High School now, and is to children who don’t have Pat and Susan Jodie. She was reading before she entered still reading on grade level and is on the aca- Warner for parents? the first grade. demic track. I have been unable to stop tell- I am so proud of Bill. He has persevered Throughout preschool, kindergarten and ing my story and have started ‘Parents’ Coa- through things that no child should have to first grade Kyle struggled with knowing the lition for Literacy. My board is made up of experience. From the humiliation in front of names of all the letters in the alphabet. In businessmen, an attorney, a pediatrician, his peers, to some thinking that he was just second grade we tried to get him to under- college department heads, primary and sec- lazy, and everyone telling him that he could

VerDate 29-OCT-99 01:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00013 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.006 pfrm02 PsN: H04PT1 H11496 CONGRESSIONAL RECORD — HOUSE November 4, 1999 learn to read, when he could not. He will be his age. He was a great kid. One thing still After about a month of school, we decided tested yet again this month to see if he stood out, he could not read the books he that we needed to help, and save our son. We qualifies for an IEP. brought home. His father and I took turns enrolled Justin in a newly opened private The good news is that in PHM, we TOPA reading his school books for him, Justin con- school. He needed quality teachers who tested all of our kindergarteners in the tinued to listen and remember what we read. would give him a quality education. We be- spring. We have identified children who have Justin was fortunate enough at this time lieved that the I.E.P. was just a bad fitting a lack of phonemic awareness. They will get to have a substitute teacher. To our surprise Band-Aid. It helped him to cope but did not Earobics, and some will get Fast Forward. she stopped me in the hall at school one vol- deal with his real issues. We did not have We are looking to incorporate Structures of unteer day. Asking me if I had noticed that much time in Justin’s educational life to Intellect into our gym curriculum. Our Justin was having trouble reading, perhaps save him. teachers are being trained in programs such he had a reading disability. This was the Justin had a great year. The school tai- as Linda Mood Bell, Language, and Wilson. first time that a teacher had come to me, lored better to Justin’s way of learning. He This type of early intervention will make a this was the first time anyone had said the had wonderful caring teachers. Justin’s self- difference. word disability! Was this why he could not esteem rose. He saw that he could learn. But, As an elected school board member, I will ‘‘Catch On’’? This substitute suggested that Justin still was not reading anywhere close continue to support programs for early inter- the school have Justin tested. With her help to grade level. We were still trying to keep we were able to go through the channels to vention. The new accountability legislation up with all his reading at home. This school have Justin tested. The tests showed that demands results. I hope the state will help lasted only for one short year, but while still Justin did have more than a two year lag in pay for results. I intend to be accountable, open, in the spring the school offered space reading, while being average and above in but schools need your support. to a language program called ‘‘Linda Mood the others subjects. We were told that he Recently, I leafed through the contents, Bell’’. must have a reading disability, but, when We decided to have Justin tested, the re- and indexes of text books pertaining to the asked what, these teachers and experts could sults told us Justin was in the eighth grade teaching of reading at a local college. I found not tell us. Justin could be given a I.E.P. In- trying to cope at a First Grade reading level. little to support the current research about dividual Educational Plan, and put into a No wonder Justin could not take notes, read teaching reading. I returned Monday to government paid program, ‘‘Chapter One’’. his school books, or even write verbal in- check, and found two books that did explain This class was for forty-five minutes with phonemic awareness. Unfortunately these twelve or fifteen other students. The teacher structions down. This program was a intense were masters degree texts. It should be no was a aid said to have taught reading in New phonemic awareness program, after re- surprise, that many children don’t learn to York State. We were also told that we should searching this method we learned that there read. It is a crime. be very happy for these accommodations. We had been great success with teaching a non I will continue to channel my energy into were hopeful that this was the solution for reader with this program. We planned to improving the way we teach children. It is Justin, these were ‘‘trained educated’’ people begin as soon as possible. To Justin’s misfor- how I avoid being consumed by what has in charge of our sons education. tune, the school after one year lost its sup- happened to my son, by a state system, that By Justin’s fourth and fifth grades years port and funding. It closed and with it we should protect children. I urge this com- the school corporation sent a part time lost the reading program, before he was able mittee to please take steps to show us that Learning Disability teacher out to our to begin. you support improvement too. Thank you. school. Justin received 45 min. daily reading Justin returned to the public school sys- help. This same teacher would also read tem, again with a I.E.P. In his ninth grade TESTIMONY OF DIANA, BILL AND JUSTIN Justin’s tests for him and work sheets. When year, he still read between first and a fourth WALTERS asked how he was doing, she said that Justin grade level, trying to again ‘‘keep up’’. In November of that year, we and Justin, There is a popular childs book, titled, ‘‘The had some kind of reading disability but was not sure what. When asked about Justin’s decided that he could not cope any longer. Never Ending Story’’. Well, this is our sons lack of phonics and his inability to sound Justin had to read that was the bottom line. never ending story. out words, she said that he was fine in that We, along with other parents from this Today Justin is sixteen, his story began area. area having the same problems with the over nine years ago. Justin comes from a two Justin was now going into the Middle schools reading or non reading programs, de- parent home he has a older sister, a dog of School. His L.D. teacher was concerned that cided we needed to take drastic measures. his own and a pony. Justins parents are both he would not make it in a regular class with- After doing our own research we continued college graduates. He has had a well rounded out modifications. She was scared that he to read over and over that a non-reader family life and social life. We believe we did would get lost. So, it was suggested that he would greatly benefit in a phonemic aware- ‘‘all the right things’’, we began reading to be put into direct services for all his classes. ness program. Sharing the expense of air Justin and his sister daily at a very early Justin’s first day was a nightmare. He flight, room and board, local transportation, age. Nursery school with French class, came home in tears, asking ‘‘what had he plus a hourly fee we parents brought teach- music, and art began at age three. We waited done so wrong as to be put in that room’’ he ers from the Linda Mood Bell program back. the extra year to begin our son in school. described the classroom as kids who did not With the agreement of our school system Justin began his first year at age six. His care, they stood on tables and sat under Justin would attend a four hour daily inten- class had 60 students all in one huge room. them, they yelled and some cursed. He was sive reading program. Every morning he Two teachers one aid. We parents volun- scared. Justin was not in the L.D. program would go to the one on one program, working teered weekly to help. Even at this young for a behavior problem or a attention prob- with the Linda Mood Bell instructors. At age his teacher chose to put Justin in the lem. He just could not read to his grade noon we would drive him back to High lower reading group. Why? He had not even level. Within minutes of Justin’s arrival School for his required classes. Justin did begun to read yet. I was a twice a week vol- home his new teacher called. She asked the this for four months; at the end of this time unteer I saw the other students picking up same question, ‘‘why was Justin in her Justin was tested again. He tested at eighth books and just read. Was our son not doing room’’ it was clear he did not belong there. grade reading level with a fifth grade spell- the same? I was told not to worry, some She suggested that he go back into the reg- ing level. In some tests he even tested high- catch on sooner than others just go home ular class room but that he could go to her er. He was able to read! He was able to see a and work on the alphabet and read to him. for help. When he could find her and when new word and break it down and sound it Allow him to enjoy reading. she had time. She has twenty-one or more out. He felt good about himself, he really Justin began first grade at Madison in the other students. Justin was also given 45 could be taught to read. He was not a failure. Penn Harris Madison school district. We no- min., daily direct reading time with a un- That summer he attend summer school ticed at once that Justin is not able or did trained aid. He was told to read to her, and catching up on missed required classes. He not respond to reading his first grade books if he tried hard enough that he would read then went to one to two hour sessions daily out loud to us. He preferred that we read better. He read, she corrected his misread with a Linda Mood Bell teacher that I them to him. He enjoyed the stories but he words. This went on for sixth and seventh brought back for the month of June. had no knowledge of how to sound the words grades. During this time we had continued Things are not perfect yet, he still needs out. We were told after questioning the trouble with the teachers of Justin’s classes encouragement, Justin continues working teacher not to worry that he understood the even taking time to read his I.E.P. We were with a tutor out of the school system, so he concept, just to keep reading to him, and told by one that they had too many to read may receive the correct reading program point to the words, he would ‘‘catch on.’’ We and she for one did not have time to read suited to give him the optimal help. He has did this every night after school, we believed them. Justin struggled and tried to cope. We continued to increase his reading skills. We that the educated teacher knew how to teach continue to question and to seek help. feel Justin has been a victim of our school reading. By Justin’s eighth grade year he had lost system. He was not to blame but he is the By the third grade we grew even more fran- his friends, he believed that they were em- one person suffering the consequences. tic. Justin was doing well in most classes, barrassed to have a friend who could not He has not given up, he continues to meet keeping up, even doing better than average read. His best friend of eight years stopped teachers with little understanding of a per- in Math, Science, History. He had great calling, stopped coming over. Justin would son who learns differently. This year, friends and the teachers thought that he was sneak into the L.D. room for help, hoping Justin’s Sophomore year of High School, a wonderful kid. He was very intelligent for that none of his friends would see him. Justin’s father and I met a teacher at Open

VerDate 29-OCT-99 02:22 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00014 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.014 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11497 House she made comments intended, we be- FIRST GRADE TEST RESULTS—Continued Each Monday, the class writes their spell- lieve, to compliment Justin. Her words were, ing words phonetically. As I put the marks ‘‘never would have known Justin was a L.D. Pretest (percent) Posttest on the words on the board, the kids are tell- student, he does not look like one.’’ When (percent) ing me what marks to make. They have she realized our surprise at her words she 45 ...... 93 learned the chart so well, that if I forget a stuttered, ‘‘But he works so well with the 51 ...... 80 mark, they give about half a second before other students’’. I did not know whether to 29 ...... 76 saying, ‘‘Mr. Schwitzer! You forgot the 44 ...... 85 laugh or cry. We have done a lot of the latter (missing mark)!’’ It’s incredible! The first so this time we will do the first. I have seen a dramatic improvement in week of November, half the class got 100% on Since the first few days of school we have where my kids are this year using the pho- their spelling tests. painfully watched Justin read and take and netic approach compared to last year with- —Lou Schwitzer, Grade 4, IPS #44 retake his drivers test. Three times, with out it. I gave the first theme test for our I teach 7th grade Title I Reading. After a only one over the minimum missed, on the reading series and was shocked to find al- slow start, when my students felt the third try he was so nervous he could not most all of my students in the ‘‘A’’ range. phonics tape was a little too ‘‘first grade’’ drive to the testing site. He knew if he The students have more confidence in their for them—I gave them several multiple syl- missed it again he would have to wait a independent reading and writing skills. I lable words. The students struggled with the month to retake the test, and not be able to spoke at a PTO meeting recently about my larger words, so we began at the inter- drive without a adult. Justin chose to have reaction, my students reaction, and their mediate level. Now everyone enjoys coming the test read to him this time, in the license parents reaction to using the Phonetic Ap- up to the board. We pull words out of reading branch in front of everyone, he passed 100 proach. The parents at the meeting seemed comprehension exercises. Now we’re pulling percent. to all be in favor of this approach after hear- words such as ‘‘hyposensitize’’ out of the dic- We will continue to fight for and give Jus- ing the difference it is making. Several par- tionary! (It means reduce sensitivity to al- tin love and support. It will be a ‘‘Never End- ents during conferences shared that ‘‘their lergens, etc.!) ing Story’’. kids knew so much more than their older —Stuart Wood, Longfellow Middle Justin now reads notes left by us, and he School #28 leaves us notes written by him with cor- kids did at this age because of the strong phonetic foundation we are providing’’. That Second grade students are decoding three rectly spelled words. I save every, ‘‘Mom and four syllable words! After decoding, they took lunch money. Please call for hair cut.’’ made me feel so proud of what we are doing. One parent told me that her fifth grade are able to spell the words without looking. What sweet words for a parent to see and Our spelling grades have improved greatly. read. daughter was struggling with spelling and that she might have her first grader help We have had four weeks where we had everyone with 100%! Children get extremely ex- TESTIMONY OF KRISTI TRAPP mark the spelling words for her sister. A first grader helping a fifth grader that is un- cited and almost fight to come to the chalk- I used a phonetic approach (Smart Chart) board to mark and spell words! When we use with all of the first grade students that at- believable isn’t it? Hopefully we will receive the funding so that grades 1–5 will be able to the Phonics Pad worksheets, we do the top tended summer school. A test was created to part as a class. They call out how to mark allow students to demonstrate knowledge of use the Smart Chart. My students are so enthuastic about using the Smart Chart that the words! They get so excited, they have phonemic awareness. Students verbally dis- trouble sitting still! Each child does the bot- played knowledge of long and short vowels, they often break into chanting the sounds on the chart. tom part for review. I’m seeing such im- vowel teams, blends, and diagraphs. It also provement! provided a means of evaluating their use of USING PHONICS THROUGHOUT THE CURRICULUM —Ruth Esther Vawter, IPS 107, Grade 2 phonetic rules. Decoding and word attack I use phonics all day long. It is not an iso- Since I’ve been using the Direct Approach, skills were evaluated too. lated activity. We use phonics in reading, my children are very excited about learning! Almost every student had mastered the en- spelling, math, social studies, science, and One of my major problems has become my tire chart by the end of summer school. health. When we are learning about a new best student. We use the smart chart to These results reflect using a phonetic ap- subject and big words are involved we need mark and sound out any word that we don’t proach for 15 days, twenty-five minutes each to know what they mean and be able to read know. We can now sound out long words and day. The phonetic approach is called ‘‘Direct them. We used word attack sills on the more they’re asking for longer words. Comprehen- Approach’’. difficult words before we actually read in sion skills are improving because we mark Pretest Average—50 percent. subject area. That way the kids will know and decode unknown words before reading Posttest Average—89 percent. the difficult words in advance and be able to paragraphs! comprehend the story much better. —Linda Jones, 6, 7, 8 L.D. FIRST GRADE TEST RESULTS So far, we’re doing 1 or 2 words we call DIRECT APPROACH—SUCCESS STORIES ‘‘challenge words’’ or ‘‘third grade words.’’ If Posttest Pretest (percent) (percent) I incorporate vocabulary words from con- I don’t have one on the board, they ask tent area subjects. We talk about analyzing where their word is. I call them ‘‘Detective 56 ...... 95 Smith’’ (their last names) as they ‘‘decode’’ 12 ...... 62 words by dividing them into syllables, mark- 64 ...... 91 ing the letter sounds and using our chin and words! 69 ...... 87 hand to count syllables. It’s very exciting! —Reta Cunningham, IPS #109, Second 30 ...... 89 grade 93 ...... 100 —Mary Lyon, Longfellow Middle School, 29 ...... 82 6th Grade Title I Reading I teach 8th grade boys. The very worst 14 ...... 69 I teach Math to 6th graders, but I work reader in my room loves to use the yard 58 ...... 78 stick to lead the smart chart drill. (He some- 85 ...... 100 with the Reading teacher to pull out words 58 ...... 91 from the Math book. (ex: data, information). times balances on his chin to point!) The 87 ...... 100 I help students decode so they can then do boys try to ‘‘beat’’ the ‘‘lady on the tape!’’ 76 ...... 93 Marking their spelling words really helps 55 ...... 87 the Math. 27 ...... 93 —Burnedia B. McBride-Williams, IPS them focus on each sound. 58 ...... 87 #28, 6th Grade Math —Public School Teacher, Middle School 56 ...... 96 An easy game to play for reinforcing the 6 ...... 67 Before reading a comprehension page, we 37 ...... 78 scan and pull out any words which may be sounds on the smart chart is called ‘‘Make 28 ...... 78 ‘‘stumbling blocks’’. We mark them on the these letters grow’’. I write lame on the 75 ...... 98 chalkboard. The children create word fami- 45 ...... 96 board and use them in sentences. Then we 40 ...... 93 are better prepared to read for meaning. lies such as blame, came, fame, etc. Phonics 69 ...... 98 —Dorothy Mason, Title I Reading, IPS works!!! 44 ...... 98 —Shirley J. DeNoon, IPS #57 62 ...... 87 #44 33 ...... 93 When my son was in first grade, he used to My students love to use the words ‘‘ma- 56 ...... 95 say, ‘‘I hate school, how old do you have to cron’’ and ‘‘breve’’. 85 ...... 98 —Janet Johnston, IPS #109, Grade 1 23 ...... 76 be to quit?’’ He was so frustrated because he 38 ...... 85 couldn’t read. The school did not ‘‘believe’’ 30 ...... 93 in phonics. When my son learned The Direct READING FAILURE 36 ...... 75 40 ...... 75 Approach, he got the ‘‘tools’’ he needed to My name is Linda Wight Harmon. I’m a 36 ...... 89 read. The logical approach made sense to product of Indiana public schools and to this 27 ...... 89 him. He started reading on his own instead day I make my living using reading and writ- 64 ...... 95 82 ...... 98 of me reading to him. With only one year of ing skills I learned in first grade and analyt- 65 ...... 89 the smart chart, in second grade, he scored ical skills I learned as a college business 65 ...... 93 4th grade reading equivalency on the Stan- major. My husband is Tim Harmon, the man- 40 ...... 85 69 ...... 91 ford Achievement test! Pretty amazing! aging editor of the South Bend Tribune. To 87 ...... 98 —A happy mom! this day, he uses skills he learned in the first

VerDate 29-OCT-99 02:14 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00015 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.017 pfrm02 PsN: H04PT1 H11498 CONGRESSIONAL RECORD — HOUSE November 4, 1999 grade and later the Indian University School heard of. Catherine has spent six weeks in a put educators in the position where they can of Journalism. computer therapy program that trained her and do teach all our children to read . . . on Our eldest daughter is Catherine. Today, brain to distinguish sounds—phonemic time. she uses skills she learned in SECOND grade awareness—then 120 hours with Lindamood LINDA WIGHT HARMON. from private tutors andd computerized lan- tutors who taught her the 44 sounds in the guage programs. She is now a self-sufficient, English language and how to link them to ‘‘As an Indiana State Senator who has very motivated fourth grader inher Montes- letters. worked for many years to improve the per- sori classroom. She has an average IQ, a At the end of the fourth week, the tutors formance of Hoosier students, I am abso- whopper vocabulary, an inquisitive mind, said, ‘‘Can you get Catherine some books? lutely convinced that our sources depends on naturally curly hair, books in her She’s read all we have.’’ At the end of the our ability to produce competent readers. backpacks, the best reading comprehension eighth week, she tested at second grade, sec- The world opens to the child who can read in her class, notebooks scribbled with stories ond month. and, unfortunately, leaves behind those who .. . and a well-developed fear of failure from The money I’ve lost track of—but we’ve cannot. Our obligation is to make certain first grade. spent well over $30,000 finding her deficits, that every child is given the best oppor- That was the year that no one at a Na- undoing what the Blue Ribbon school did tunity to become a reader. I am also con- tional Blue Ribon school could teach an edi- wrong, remediating her issues and getting vinced that phonemic awareness is the pre- tor’s daughter to read. the job done right. ferred and proven way to teach reading. We She started out eager, but quickly lost her And we’re not alone. Lindamood has do our children a disservice when we allow spirit when her first spelling list—words like taught roughly two dozen children to read in them to move ahead without a mastery of watermelon, apple, red, green—was a com- South Bend in the last 18 months. But the reading, which ensures frustration and fail- plete mystery. She had no idea that letter thing is—all of this could have been done in ure throughout their school years. Anything linked to sounds, something her Kinder- Kindergarten and first grade. Our daughter— we can do to prevent this from happening is garten teacher warned us about in our pre- and many, many other children—could have worth our effort. After all, they don’t get a vious town. Even then, she couldn’t tie her been assessed in the beginning in Kinder- second chance to get this right.’’ shoes, couldn’t tell left from right, couldn’t garten, taught with other children who need- INDIANA STATE SENATOR TERESA LUBBERS. count to 30. Twice she’d had hearing tests be- ed multi-sensory, systematic approaches and cause she didn’t hear everything we said to they all could have learned the right way in TESTIMONY BEFORE STUDY COMMITTEE— her. the beginning, in groups, with a properly INDIANA But the principal at the new school calmed trained teacher, in a regular classroom. Thank you for this opportunity to speak. our fears. She assured us her teachers knew These approaches have been around a long My name is Peggy Schafir, and I’m a parent what to do. They put Catherine in a special time. They aren’t revolutionary. They don’t from Richmond, Indiana. I’m here to tell you ‘‘Discover intensive Phonics’’ class. It went make people Republicans or Democrats—but about the enormous struggle and ultimate right over her head. By Christmas, she could I can guarantee they do create the founda- success my child encountered in learning to not tell the difference between the words tion for a literate voter. read. Our experience has been very painful, ‘‘as’’ andd ‘‘apple.’’ Next, the teachers put But what keeps me up at night—and should and my purpose for speaking is to prevent her on an early intervention list, which you also—is the six kids in Catherine’s first other children and families from having to meant she was observed for three of the four grade who were in the same boat, and the live through that same pain and failure. remaining months while the teachers did two dozen who didn’t read that well even I have two children. Ben, who is 16, learned nothing. She grew increasingly frustrated. with the phonics. Then there are the chil- to read as if by magic. Matt is 14, and has She couldn’t write. She couldn’t read and the dren in inner city schools—one out of four in struggled with reading most of his life. children in her class pointed that out to her. the South Bend Community school system is Before they started kindergarten, we pre- The teachers gave her easier work. Nightly, classified as Special Ed. There are thousands pared our boys the best we knew how. We she cried herself to sleep, dreading the next of Catherines in this world, but the incidence read to them daily. We made sure they saw day of failure. of reading failure is MUCH higher than the us reading for business or pleasure. We tried That summer, we took her to a incidence of LD. With or without Title 1 to give them rich experiences—both by ex- neuropsychologist in Indianapolis. In 45 min- funding, with or without literate parents, ploring new places and things in person, and utes, he told us our daughter had a profound with or without upscale suburban tax bases, by discovering them in books. We tried to learning disability. In three hours, he had with or without breakfast, our children are create a home rich in language and lit- pinpointed her deficit as a lack of phonemic not learning to read because their teachers erature. awareness, a common, easily-detected prob- do not have enough tools and the teachers For Ben, it was enough. For Matt, it lem in non-readers. he found her reading aren’t accountable anyway. wasn’t. level to be ‘‘Kindergarten-9th month’’ and Today, if it weren’t for the research from At the end of one year of kindergarten, that, unless she was properly instructed, she the National Institutes of Health, Rutgers Matt was still struggling with matching would and, I quote, ‘‘Never really read.’’ University and Lindamood-Bell, I would be sounds to letters. His teacher recommended He told us the approach that would best writing to you as the parent of an illiterate that we have him repeat kindergarten. We address her deficits was Lindamood-Bell, a child. Instead, I’m here to beg you to stop did, and it appeared to work. When he start- multi-sensory, structured approach that fo- what I found at one of Indiana’s best schools: ed first grade, Matt knew all of his sounds cused on auditory processing, but he doubted Ignorance. My daughter’s teachers didn’t and letters. He seemed ready to learn to we could find it or, for that matter, any know the early warning signs of reading dis- read. other method to teach dyslexics to read. He orders—I’ve told you five of them in the past Imagine our disappointment when he did told us: ‘‘You need to get Catherine some few pages, more than they knew after earn- not. At the end of first grade, Matt was not hobbies.’’ ing master’s degrees in reading from major reading. We worked with him diligently over Armed with an IEP, she went back to the state universities. the summer, following all the advice we Blue Ribbon school for second grade. She sat As a parent and as a voter, I do believe could gather. In second grade, Matt received alone in the hall and listened to tapes of a that the United States should have the high- extra support at school. teacher as she followed along with her finest literacy rate in the world. It is to our In a sense, it appeared that Matt could ger. She was seated next to a smart girl who shame that we do not. It is also due to our read. If we read a book to him, he could read was assigned to read work-sheets to Cath- short-sightedness that we don’t do every- it back to us word for word. But if we took erine and spell the answers. She went to the thing possible to teach all children to read in a word out of the book—one he had read eas- resource room for a half hour a day. She felt Kindergarten and first grade so they can ily—and wrote it on a piece of paper, he had stupid. She cried herself to sleep. She begged read their own textbooks, learn in class- no idea what it was. What is more, he seemed not to go to school. Tim and I more than rooms for the next eleven years and graduate to have no idea how to go about figuring out once carried her into class in our pajamas, from high school. Instead, we brush the non- what it was. leaving her sobbing in her seat. And it got readers and poor-readers aside and muddle By the time Matt reached third grade, we worse. She talked about hating her life and through, cheating them and their regular- began to experience real behavior problems. wanting to die. Then one morning, waiting learning classmates out of a first-class edu- We tried everything we could think of. At for bus and sobbing, she threw up her break- cation and spending increasing amounts each one point, Matt was seeing a child psycholo- fast . . . into my hands. year helping students who read their own gist, an optometrist (who gave him exercises It was then that I saw how clearly this textbooks. to improve his visual tracking), and a speech Blue Ribbon school was teaching my daugh- Educators do not heed the educational re- pathologist. But the behavior told us we ter pre-bulimia skills, not pre-reading skills. search from the National Institutes of were still not doing enough. We decided to Catherine has never been back to a public Health, yet we would sue a family physician have Matt tested by a private reading tutor school. who failed to act on half the early warning in our community. My mother, my husband and I have spent signs of cancer as established by that same In third grade, Matt knew four sight words. hundreds of hours researching the right way research body. If the education community In third grade, Matt became frustrated try- to teach this child to read, using the pre- can’t force itself to do the job, then legisla- ing to read pre-primer books. scription of the National Institutes of Health tors simply must protect the children of this In third grade, Matt was basically a non- research, something her teachers had never country from needless reading failure and reader.

VerDate 29-OCT-99 01:32 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00016 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.009 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11499 We learned from the testing that Matt had My husband and I were fortunate to be able (H.R. 1693) to amend the Fair Labor very poor phonemic awareness. In other to do that for Matt. I am here today because Standards Act of 1938 to clarify the words, he could not separate word ‘‘dog’’ into I hope that every child in Indiana can get overtime exemption for employees en- its component sounds /d/ /o/ /g/ or blend the that same attention. gaged in fire protection activities. Matt’s first need was phonemic awareness. sounds /k/ /a/ /t/ to say ‘‘cat’’. All his hard The Clerk read as follows: work learning to match the sounds and let- In that, Matt was not alone. Poor phonemic ters was important, but he needed more in- awareness is the single most common factor H.R. 1693 formation before letters could convey worlds among people who do not read. Please, as Be it enacted by the Senate and House of Rep- to him. Matt needed to learn how to hear, you consider policies about reading, remem- resentatives of the United States of America in order, segment, and blend sounds. ber children like Matt. Think of the Matt Congress assembled, Working with the reading tutor two hours that might have been, what the future holds SECTION 1. DEFINITION OF FIRE PROTECTION a week, Matt began at last to make progress. for him now, and share with me the dream ACTIVITIES. By the beginning of fourth grade, he was that all children will enter the world of lit- Section 3 of the Fair Labor Standards Act reading at second grade level. A personal tri- eracy. of 1938 (29 U.S.C. 203) is amended by adding at umph—but still enough of a discrepancy for Thank you. I’ll be glad to answer any ques- the end the following: him to be tested for learning disabilities. We tions I can. ‘‘(y) ‘Employee in fire protection activities’ means an employee, including a fire- were told that reading was a ‘‘high expecta- b tion’’ for Matt. He would always need accom- 1145 fighter, paramedic, emergency medical tech- modations. He had to be placed in the ‘‘least Mr. Speaker, let me just close and nician, rescue worker, ambulance personnel, restrictive environment’’. say this does not need to be controver- or hazardous materials worker, who— ‘‘(1) is trained in fire suppression, has the After our first case conference, my hus- sial. It simply says one method that we band took Matt to Earlham College for a soc- legal authority and responsibility to engage cer practice. He was in a hurry, so he think is important for our teachers to in fire suppression, and is employed by a fire drooped Matt off at the parking lot. ‘‘You’ve teach is the use of phonics. They will department of a municipality, county, fire been here before,’’ he said. ‘‘Just find the have complete discretion in their class- district, or State, and sign for the Athletic Building, then find the room about how they teach, but let us ‘‘(2) is engaged in the prevention, control, sign for the Coach’s Office’’. Oh, no. Matt recognize the fact that when 67 percent and extinguishment of fires or response to would have to read. He looked at his father of our fourth graders are below stand- emergency situations where life, property, or through the car window and said, ‘‘Dad, I ard on reading something is des- the environment is at risk.’’. can’t.’’ That evening, my husband said, SEC. 2. CONSTRUCTION. ‘‘Peggy, we have to fix this. It’s going to be perately wrong. We have to use what The amendment made by section 1 shall up to us.’’ the scientific studies say work, that is not be construed to reduce or substitute for That began a journey which has taken a phonics, and this Congress should go on compensation standards (1) contained in any lot of our time, our energy, and our savings. record today as being in favor of teach- existing or future agreement or memo- It is a journey which has been worth every ers using this as one method in their randum of understanding reached through step. classroom. collective bargaining by a bona fide rep- First, we took Matt out of school (using a Finally, I would address the Congress resentative of employees in accordance with home schooling form) and enrolled him in a the laws of a State or political subdivision of very intensive reading clinic in Nashville, in saying this is not a mandate. This a State, and (2) which result in compensation Tennessee. (I don’t want to mislead you is, at its core, a sense of Congress reso- greater than the compensation available to about Matt’s enthusiasm for this—on the lution, that this issue is so important employees under the overtime exemption way, he kept kicking the dashboard and that the body wants to go on record under section 7(k) of the Fair Labor Stand- screaming, ‘‘I am not going to Nashville!’’) urging our teachers to use phonics, ards Act of 1938. At the clinic, Matt continued to work on his urging our teaching training schools to The SPEAKER pro tempore. Pursu- phonemic awareness, and on how to use let- teach phonics as one method among ant to the rule, the gentleman from ters to get information about sounds. The in- Ohio (Mr. BOEHNER) and the gentleman struction was systematic, explicit, and very many that they will use to teach our intense—Matt worked four hours a day one- children to read. from Missouri (Mr. CLAY) each will on-one with his tutors. Yes, the environment Mr. Speaker, I yield back the balance control 20 minutes. was restrictive, but only for a short time. of my time. The Chair recognizes the gentleman Matt was at the clinic for six weeks. The al- The SPEAKER pro tempore (Mr. from Ohio (Mr. BOEHNER). ternative of remaining in the world of illit- BARRETT of Nebraska). The question is Mr. BOEHNER. Mr. Speaker, I yield eracy would have restricted him for the rest on the motion offered by the gen- myself such time as I may consume. of his life. tleman from Indiana (Mr. MCINTOSH) Mr. Speaker, H.R. 1693 is a simple In those six weeks, Matt progressed from a that the House suspend the rules and and noncontroversial bill, introduced second grade reading level to a fifth grade by our friend from Maryland (Mr. EHR- reading level. He returned to school, and we agree to the concurrent resolution, H. LICH), that would amend the Fair Labor monitored him very carefully. Occasionally, Con. Res. 214, as amended. he slipped, and we enrolled him again in a The question was taken. Standards Act to clarify the existing variety of clinics until he could solidify his Mr. CLAY. Mr. Speaker, on that I de- overtime exemption for firefighters. new skills. mand the yeas and nays. The Committee on Education and the In total, Matt received 720 hours of remedi- The yeas and nays were ordered. Workforce reported the bill yesterday ation. He is now an 8th grader, reading at The SPEAKER pro tempore. Pursu- without amendment and by voice vote. grade level with 90% accuracy. His reading ant to clause 8 of rule XX and the The bill has major bipartisan support speed improves daily. Last year. on one of in the House and it is supported by our many car trips to and from clinics, Matt Chair’s prior announcement, further turned to me and said, ‘‘Mom, this is the best proceedings on this motion will be both labor and management, who year of my life. I’m finally getting my dys- postponed. would be affected by the change under lexia fixed.’’ f the bill. We have our son back. He is happy and In addition, the National Association confident again. College is a very real option GENERAL LEAVE of Counties, the National Association in his future. I want to be honest with you. Mr. MCINTOSH. Mr. Speaker, I ask of Towns and Townships, the U.S. Con- We have lived through a very severe case of unanimous consent that all Members ference of Mayors and the National dyslexia. Even so, if we had caught Matt’s League of Cities are supporters of this delay in developing phonemic awareness may have 5 legislative days within back when he was in kindergarten, all of our which to revise and extend their re- bill. lives would have been very different. Waiting marks on House Concurrent Resolution Generally, under the Fair Labor until fourth grade to accommodate and re- 214. Standards Act, workers are entitled to mediate was very expensive, and I don’t The SPEAKER pro tempore. Is there overtime compensation for hours mean just in terms of dollars. This expense objection to the request of the gen- worked in excess of 40 within a week. can be avoided. tleman from Indiana? The act contains unlimited exemption This is what I have learned as a parent: There was no objection. for overtime, under Section 7(k), for Reading is an incredibly complex process, employees of public agencies who are which can break down at any stage. To help f our children master this process, we must engaged in fire protection activities. CLARIFYING OVERTIME The firefighter exemption allows em- know where they are breaking down as soon EXEMPTION FOR FIREFIGHTERS as possible. We must know how to address ployees engaged in fire protection ac- our children’s needs, and be prepared to de- Mr. BOEHNER. Mr. Speaker, I move tivities additional scheduling flexi- liver what they need in the amount needed. to suspend the rules and pass the bill bility in recognition of the extended

VerDate 29-OCT-99 01:32 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00017 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.011 pfrm02 PsN: H04PT1 H11500 CONGRESSIONAL RECORD — HOUSE November 4, 1999 periods that firefighters are often on where firefighters are cross-trained and taxpayers are liable for $3.5 million duty. Employees who are covered by are expected to perform both fire- under a recent FLSA case. Section 7(k) may work up to 212 hours fighting and emergency medical serv- The potential consequences of these within a period of 28 consecutive days ices, they will be treated as firefighters cases are serious and far-reaching and before triggering the overtime pay re- for the purpose of overtime. However, could ultimately result in a dramatic quirement. where emergency medical technicians increase in the local costs of fire pro- The Department of Labor’s regula- are not cross-trained as firefighters, tection to taxpayers nationwide. tions specify that rescue and ambu- they will remain outside the purview of This bipartisan bill is supported by lance service workers, sometimes re- 7(k) and will be entitled to overtime the International Association of Fire- ferred to as emergency medical serv- after 40 hours a week, even if the emer- fighters, the International Association ices personnel, may be eligible for the gency medical services are placed with- of Fire Chiefs, the National Associa- firefighter exemption if they perform in the fire department. tion of Counties. Labor and Manage- duties that are an integral part of the This bill is supported by both man- ment support this bill as a remedy, as agency’s fire protection activities, but agement and labor. The policy it re- the remedy, for an increasingly serious an employee may not perform activi- flects ensures that unreasonable bur- situation. ties unrelated to fire protection for dens are not placed upon fire depart- Keep in mind, Mr. Speaker, H.R. 1693 more than 20 percent of the employee’s ments in accounting for hours worked. only affects those who are trained, pre- total hours worked. I commend the sponsor, the gen- pared and have the legal authority to Many State and local governments tleman from Maryland (Mr. EHRLICH), engage in fire suppression, but also employ EMS personnel who receive for his efforts to produce consensus leg- work to save lives in so many other training and work schedules and main- islation, and the chairman of our com- ways. This bill clarifies the law by tain levels of preparedness which is mittee, the gentleman from Pennsyl- more precisely defining those duties very similar to that of firefighters. In vania (Mr. GOODLING), for bringing this that should qualify for the firefighter the past, these types of employees fit bill to the floor. Mr. Speaker, I urge a exemption, thereby preserving the in- within the 7(k) overtime exemption. yes vote on H.R. 1693. tended flexibility afforded to cities and In recent years, however, some Mr. Speaker, I reserve the balance of fire departments under the original courts have narrowly interpreted the my time. Fair Labor Standards Act. 7(k) exemption and held that emer- Mr. BOEHNER. Mr. Speaker, I yield 3 On a point of personal privilege, Mr. gency medical services personnel do minutes to the gentleman from Mary- Speaker, I would like to thank the gen- not come within the exemption because land (Mr. EHRLICH), the sponsor of this tleman from Ohio (Mr. BOEHNER) for the bulk of their time is spent engaged legislation. managing the bill on the floor, the gen- in nonfire protection activities. These Mr. EHRLICH. Mr. Speaker, I thank tleman from Pennsylvania (Mr. GOOD- lawsuits have resulted in State and my friend, the gentleman from Ohio LING), the chairman of the full com- local governments being liable for mil- (Mr. BOEHNER) for yielding me this mittee, the gentleman from Pennsyl- lions of dollars in back pay, attorneys time. vania (Mr. WELDON), the gentleman fees and court costs. Mr. Speaker, from its inception, the from New Jersey (Mr. ANDREWS), the So there is a real need to modernize Fair Labor Standards Act has exempt- cochairs of the Congressional Fire Cau- this area of the Fair Labor Standards ed fire protection employees from the cus. Act and to clearly specify who can be traditional 40-hour workweek. Histori- Mr. CLAY. Mr. Speaker, I have no considered a fire protection employee cally, any emergency responder paid by further requests for time, and I yield for purposes of the exemption. a fire department was considered to be back the balance of my time. H.R. 1693 clarifies the law by speci- a fire protection employee. However, Mr. BOEHNER. Mr. Speaker, I have fying the duties of employees who recent court interpretations of Federal no requests for time, and I yield back would be eligible for the limited over- labor statutes have rendered this defi- the balance of my time. time exemption. The bill would ensure nition unclear. The SPEAKER pro tempore. The that firefighters who are cross-trained Mr. Speaker, H.R. 1693 seeks to clar- question is on the motion offered by as emergency medical technicians, ify the definition of a fire protection the gentleman from Ohio (Mr. HAZMAT responders and search and employee. The bill reflects the range of BOEHNER) that the House suspend the rescue specialists would be covered by lifesaving activities engaged in by to- rules and pass the bill, H.R. 1693. the exemption even though they may day’s fire service, built upon its long The question was taken; and (two- not spend all of their time performing tradition of responding to all in need of thirds having voted in favor thereof) activities directly related to fire pro- help. Specifically, today’s firefighter, the rules were suspended and the bill tection. in addition to fire suppression, may was passed. Finally, the bill would clear up the also be expected to respond to medical A motion to reconsider was laid on confusion that employers face in trying emergencies, hazardous materials the table. to interpret the law. A misinterpreta- events, or even to possible incidents f tion of the law could needlessly expose created by weapons of mass destruc- local governments to significant finan- tion. GENERAL LEAVE cial liability and dramatically increase The issue addressed by H.R. 1693, Mr. Mr. BOEHNER. Mr. Speaker, I ask the cost of providing adequate fire pro- Speaker, concerns fire department unanimous consent that all Members tection services. paramedics trained to fight fires who may have 5 legislative days within H.R. 1693 is a narrow bill, but one have prevailed in several civil suits for which to revise and extend their re- that is important in helping State and overtime compensation under the marks on H.R. 1693. local governments provide fire protec- FLSA. The paramedics successfully ar- The SPEAKER pro tempore. Is there tion and emergency medical services in gued they were not fire protection em- objection to the request of the gen- a most effective and efficient way pos- ployees covered by the FLSA exemp- tleman from Ohio? sible. I would urge my colleagues to tion since more than 20 percent of their There was no objection. support this clarification. normal shift time was spent engaged in f Mr. Speaker, I reserve the balance of emergency responses rather than fire- my time. fighting, such as emergency medical SENSE OF CONGRESS THAT Mr. CLAY. Mr. Speaker, I yield my- calls. SCHOOLS SHOULD USE PHONICS self such time as I may consume. The U.S. Supreme Court has declined The SPEAKER pro tempore. The Mr. Speaker, I support this bill. to consider these cases, thus exposing pending business is the question of sus- Under the 1985 amendments to the Fair city and county governments to com- pending the rules and agreeing to the Labor Standards Act, the 7(k) exemp- pensation liability for unpaid overtime concurrent resolution, H. Con. Res. 214, tion was intended to apply to all fire- into the millions of dollars. For exam- as amended. fighters who perform normal fire- ple, one subdivision I am privileged to The Clerk read the title of the con- fighting duties. H.R. 1693 provides that represent, Anne Arundel, Maryland, current resolution.

VerDate 29-OCT-99 01:32 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00018 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.034 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11501 The SPEAKER pro tempore. The Bentsen Hall (TX) Olver The SPEAKER pro tempore (Mr. Berkley Hastings (FL) Ortiz question is on the motion offered by Berman Hill (IN) Owens BARRETT of Nebraska). Is there objec- the gentleman from Indiana (Mr. Berry Hilliard Pallone tion to the request of the gentleman MCINTOSH) that the House suspend the Blagojevich Hinojosa Pascrell from California? rules and agree to concurrent resolu- Blumenauer Hoeffel Pastor There was no objection. Boehlert Hoekstra Paul tion, H. Con. Res. 214, as amended, on Bonior Holt Pelosi f which the yeas and the nays are or- Boucher Hooley Pickett FURTHER CONTINUING APPRO- dered. Boyd Hoyer Pomeroy Brady (PA) Inslee Price (NC) PRIATIONS, FISCAL YEAR 2000 The vote was taken by electronic de- Brown (FL) Jackson (IL) Ramstad vice, and there were—yeas 224, nays Brown (OH) Jackson-Lee Rangel Mr. YOUNG of Florida. Mr. Speaker, 193, answered ‘‘present’’ 2, not voting Capps (TX) Reyes pursuant to the previous order of the 14, as follows: Capuano Jefferson Reynolds House, I call up the joint resolution Cardin Johnson, E. B. Rivers (H.J. Res. 75) making further con- [Roll No. 564] Carson Jones (OH) Rodriguez Clay Kennedy Roemer tinuing appropriations for the fiscal YEAS—224 Clayton Kildee Rothman year 2000, and for other purposes, and Aderholt Goodling Petri Clement Kilpatrick Roybal-Allard ask for its immediate consideration. Archer Goss Phelps Clyburn Kind (WI) Rush The Clerk read the title of the joint Armey Graham Pickering Condit Kleczka Sabo Baker Granger Pitts Conyers Klink Sanchez resolution. Ballenger Green (TX) Pombo Coyne Kucinich Sanders The text of House Joint Resolution 75 Barr Green (WI) Porter Cramer LaFalce Sandlin is as follows: Barrett (NE) Greenwood Portman Crowley Lampson Sawyer H.J. RES. 75 Bartlett Hansen Pryce (OH) Cummings Lantos Schakowsky Barton Hastings (WA) Quinn Danner Lee Scott Resolved by the Senate and House of Rep- Bass Hayes Radanovich Davis (FL) Levin Serrano resentatives of the United States of America in Davis (IL) Lewis (GA) Sherman Bateman Hayworth Rahall Congress assembled, That Public Law 106–62 is Biggert Hefley Regula DeFazio LoBiondo Sisisky DeGette Lofgren Skelton further amended by striking ‘‘November 5, Bilbray Herger Riley 1999’’ in section 106(c) and inserting in lieu Bilirakis Hill (MT) Rogan Delahunt Lowey Slaughter Bliley Hilleary Rogers DeLauro Lucas (KY) Smith (WA) thereof ‘‘November 10, 1999’’. Public Law 106– Blunt Hinchey Rohrabacher Deutsch Luther Snyder 46 is amended by striking ‘‘November 5, 1999’’ Boehner Hobson Ros-Lehtinen Dicks Maloney (NY) Spratt and inserting in lieu thereof ‘‘November 10, Bonilla Holden Roukema Dingell Markey Stabenow 1999’’. Bono Horn Royce Dixon Martinez Stark Borski Hostettler Ryan (WI) Doggett Mascara Strickland The SPEAKER pro tempore (Mr. Boswell Hulshof Ryun (KS) Dooley Matsui Stupak HANSEN). Pursuant to the order of the Brady (TX) Hunter Salmon Doyle McCarthy (MO) Tanner House of today, the gentleman from Bryant Hutchinson Sanford Edwards McCarthy (NY) Tauscher Florida (Mr. YOUNG) and the gentleman Burr Hyde Saxton Engel McDermott Thompson (CA) Burton Isakson Schaffer Eshoo McGovern Thompson (MS) from Wisconsin (Mr. OBEY) each will Buyer Istook Sensenbrenner Etheridge McKinney Thurman control 30 minutes. Evans McNulty Tierney Callahan Jenkins Shadegg The Chair recognizes the gentleman Calvert John Shaw Farr Meehan Toomey Camp Johnson (CT) Shays Fattah Meeks (NY) Towns from Florida (Mr. YOUNG). Filner Menendez Turner Campbell Johnson, Sam Sherwood GENERAL LEAVE Ford Millender- Udall (CO) Canady Jones (NC) Shimkus Mr. YOUNG of Florida. Mr. Speaker, Cannon Kaptur Shows Frank (MA) McDonald Udall (NM) Castle Kasich Shuster Franks (NJ) Miller, George Velazquez I ask unanimous consent that all Mem- Chabot Kelly Simpson Frelinghuysen Minge Vento bers may have 5 legislative days in Frost Mink Visclosky Chambliss King (NY) Skeen which to revise and extend their re- Chenoweth-Hage Kingston Smith (MI) Gejdenson Moakley Waters Coble Knollenberg Smith (NJ) Gephardt Moore Watt (NC) marks on H. J. Res. 75, and that I may Coburn Kolbe Smith (TX) Gilman Moran (VA) Weiner include tabular and extraneous mate- Collins Kuykendall Souder Gonzalez Murtha Wexler Gordon Nadler Weygand rial. Combest LaHood Spence The SPEAKER pro tempore (Mr. Cook Largent Stearns Gutierrez Napolitano Woolsey Cooksey Latham Stenholm Gutknecht Neal Wu HANSEN). Is there objection to the re- Costello LaTourette Stump Hall (OH) Oberstar Wynn quest of the gentleman from Florida? Cox Lazio Sununu ANSWERED ‘‘PRESENT’’—2 There was no objection. Crane Lewis (CA) Sweeney Cubin Lewis (KY) Talent Abercrombie Obey Mr. YOUNG of Florida. Mr. Speaker, I yield myself such time as I may con- Cunningham Lipinski Tancredo NOT VOTING—14 Davis (VA) Lucas (OK) Tauzin sume. Deal Maloney (CT) Taylor (MS) Bachus Kanjorski Oxley Mr. Speaker, the current continuing DeLay Manzullo Taylor (NC) Bereuter Larson Payne DeMint McCollum Terry Bishop Leach Scarborough resolution, under which the agencies Diaz-Balart McCrery Thomas Ehlers Linder Sessions that are funded in the five remaining Dickey McHugh Thornberry Houghton Meek (FL) uncompleted appropriations bills ex- Doolittle McInnis Thune Dreier McIntosh Tiahrt b 1219 pires tomorrow night. Negotiations on Duncan McIntyre Traficant these remaining bills are ongoing. Dunn McKeon Upton Messrs. RAMSTAD, DOGGETT, GIL- However, I must say that while we are Ehrlich Metcalf Vitter MAN, BALDACCI, PASTOR and making some progress in our negotia- Emerson Mica Walden FRELINGHUYSEN changed their vote English Miller (FL) Walsh tions with the administration, they are Everett Miller, Gary Wamp from ‘‘yea’’ to ‘‘nay.’’ going slow but sure. So it appears we Ewing Mollohan Watkins So (two-thirds not having voted in will not be able to complete our agree- Fletcher Moran (KS) Watts (OK) favor thereof) the motion was rejected. ments on these remaining bills for the Foley Morella Waxman The result of the vote was announced Forbes Myrick Weldon (FL) next several days. Fossella Nethercutt Weldon (PA) as above recorded. As the CR that we are operating Fowler Ney Weller A motion to reconsider was laid on under presently expires at midnight to- Gallegly Northup Whitfield the table. Ganske Norwood Wicker morrow night, the joint resolution be- Gekas Nussle Wilson f fore the House would extend the provi- Gibbons Ose Wise sions of the current CR until November Gilchrest Packard Wolf REMOVAL OF NAME OF MEMBER 10. I would have preferred that we Gillmor Pease Young (AK) AS COSPONSOR OF H.R. 2528 Goode Peterson (MN) Young (FL) would have been able to have com- Goodlatte Peterson (PA) Mr. BECERRA. Mr. Speaker, I ask pleted our work by tomorrow night, NAYS—193 unanimous consent to have my name but the issues involved require addi- removed as a cosponsor of H.R. 2528, tional time to work out. In light of this Ackerman Baird Barcia Allen Baldacci Barrett (WI) the Immigration Reorganization and situation, I urge all Members to sup- Andrews Baldwin Becerra Reform Act of 1999. port this extension.

VerDate 29-OCT-99 01:59 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00019 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.036 pfrm02 PsN: H04PT1 H11502 CONGRESSIONAL RECORD — HOUSE November 4, 1999 I would say again that we have been long, going through these same mo- serious-minded people to sit down, rec- spending early mornings, long days, tions, that we forget some of the very ognize that compromises need to be and late nights in negotiation with the basic things that we are supposed to be made. A reasonable compromise was representatives from the President’s doing when we are here. put on the table last night, but there office, and we are making progress. The Now, what we ought to be doing, if was no one home to deal with it. So I meetings are and have been construc- we do not meet any other responsi- guess we will continue to drift along. I tive, and we do hope that we can finish bility, is we ought to be meeting our regret that. our business sooner rather than later. I main responsibility, which is to finish I know if the gentleman from Florida would also point out that this House the action necessary to complete a (Mr. YOUNG) had his way, we would not has done a very good job of getting its budget. This Congress has done vir- be stuck in this inertia. But we are. I appropriations matters considered. tually nothing except focus on that simply hope that sometime between This will be the 32nd appropriations question and the tax question for al- now and Thanksgiving the powers that measure to be voted on in the House in most a year, and yet we are still here, be in this institution recognize that preparing for fiscal year 2000. stuck on second base, with no prospect this is a deadend route and we need to Mr. Speaker, I reserve the balance of of being driven home. come to conclusion on these issues and my time. I ask why? And as I think about it, I go home. Mr. OBEY. Mr. Speaker, I yield my- think the reason is that the majority Mr. YOUNG of Florida. Mr. Speaker, self 7 minutes. party in this House apparently believes I have only one remaining speaker to Mr. Speaker, why are we here? I have that the main action that is necessary close the debate, and so I reserve the been trying to answer that question in order to complete action on a budget balance of my time. every time we bring a new continuing is to reach a consensus within their Mr. OBEY. Mr. Speaker, I yield 4 resolution to the floor. Yesterday it own party in the House on the question minutes to the distinguished gen- dawned on me. Yesterday my watch as to what kind of budget that ought to tleman from Massachusetts (Mr. quit running for about the fourth time, be. Now, it is important for any party OLVER). and so I finally gave up on it and went to know who it is and what it is; it is Mr. OLVER. Mr. Speaker, I thank and bought a new one, and that important for any party to have a the gentleman for yielding me the brought into clear focus what we are sense of self and to be able to commu- time. doing here. nicate that to the country. But after Mr. Speaker, I, too, would say that, Every 7 days we are bringing a con- that is done, it is also necessary for us as my ranking member the gentleman tinuing resolution to the floor. We to recognize that the House is one of from Wisconsin (Mr. OBEY) has said, wind up the clock for another 7 days, only three branches of government that I think that he is right that we but it is a clock that does not run. And that deals with the budget, the other would not be here if the gentleman so we keep coming back here every 7 two being the Senate and the Presi- from Florida (Mr. YOUNG) and the gen- days, winding up the good old clock, dent. tleman from Wisconsin (Mr. OBEY) but the hands never move, time does It is not enough for one-half of this were given some freedom to work out not pass, and we repeat the same argu- House to reach an internal consensus what is going on here. But that is not ments over and over again the fol- about what has to be done if that con- where we are. lowing week. Sooner or later I would sensus leads to no way of reaching It is now five weeks past the begin- think people would get a little tired of agreement with the other two major ning of the fiscal year, and the Con- that, but I guess not tired enough yet players in the system that our Found- gress simply has not done its work. to do something about it. ing Fathers designed and placed into One week ago we adopted our third We are here now, we have passed the Constitution. continuing resolution, and here we are three continuing resolutions, we are b 1230 with one more continuing resolution about to pass a fourth, and we had a And so, we are not stuck here be- being proposed. This one adds only 3 meeting last night which took us on a cause the gentleman from Florida (Mr. more working days, not even a full short route to nowhere. And, unfortu- YOUNG) has not done his job. We are week, only 3 more working days to the nately, if that meeting is any indica- not stuck here because the Committee time to do the work. tion, we are going to be here for a lot on Appropriations has not tried to do Well, what has been accomplished in more 7-day periods, and Members are its job. They have tried mightily. We the week under the third continuing not going to be able to go home and are stuck here because somehow the resolution? We are still short of com- enjoy a Thanksgiving. The 23 Senators impression has developed that the only pleting the budget. As a matter of fact, who are set to take trips abroad are thing we have to do to get a budget is not one of the five budgets that is still not going to be able to climb on their to develop a unanimous point of view in conference that had not been signed airplanes and we are going to be back in the majority party caucus. by the end of the first continuing reso- here grinding the same fine powder Now, the Democrats ran this House lution 2 weeks ago, not one of those into dust. long enough for me to realize that it is five budgets has been negotiated, which I think the reason we are here is sim- almost impossible for a party to ever is, it seems to me, about the only way ply this: This is a Congress that has, achieve a unanimous view on any sub- for differences of opinion and in policy for the past year, at the insistence of ject. And so, on most truly important and dollars between the executive the majority party, spent almost its questions, it is, therefore, important to branch and the legislative branch entire effort in trying to pretend that achieve a bipartisan consensus so that under our process to be resolved. we were going to have big enough sur- even if we do not have a hundred per- Now, if the Republican leadership pluses that we could afford to pass a cent of votes for something in the ma- were tending to other business of the giant tax bill that gave 70 percent of jority party, but if we put together American people that they overwhelm- the benefits to the wealthiest people in what we are trying to do with a major- ingly want done, that would be one this country. And that got in the way ity of the other side, we could have a thing. But take campaign finance re- of this Congress’ doing anything about pretty healthy product that will with- form. No, that has been killed for 1999, Social Security, it got in the way of stand criticism from all sides. almost certainly for the year 2000, as our doing anything about Medicare, it That is what we ought to be doing. well. Take the patients’ bill of rights. got in the way of being able to reach But instead, we are still thrashing No, the Speaker of the House just reasonable compromises on education. around dealing with ego problems and named a conference committee that ex- We stand here in a House that has dealing with ideological problems cludes the major proponents from his not been able to complete action on a while we are continuing to come back own Republican Party, the proponents meaningful Patients’ Bill of Rights nor and winding up that old, dead clock of the bipartisan bill that passed the has it been willing to pass a minimum every 7 days. In the end, the only thing House just a couple of weeks ago; and wage bill. And it reminds me of that that is going to move is our wrists. that conference committee is carefully old gospel song ‘‘Drifting Too Far So it seems to me that we ought to chosen so that it will defy the will of From the Shore.’’ We have been here so cut through that. What we need is for this House.

VerDate 29-OCT-99 01:59 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00020 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.040 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11503

Take a prescription drug benefit pro- from Wisconsin (Mr. OBEY) and others not going to do that before they want gram within Medicare to help the hun- with expertise and experience in this tax cuts for the very wealthy in this dreds of thousands of senior citizens field the ability to get the work of this country. who cannot afford to pay for prescrip- Nation done. Having lost that battle, the Repub- tion drugs on which their very lives de- The side-bar tragedy to all of this is licans are now here telling us that we pend. No, this Republican leadership that, while 435 of us remain in town, after a trillion dollars that they appar- has simply refused to bring that bill while a couple of dozen committees re- ently said that they had room for, out for debate because the drug compa- main in town, while the floor is in ses- given the deficit, given the long-term nies that oppose it make a very great sion periodically from time to time debt, given the Social Security prob- deal of money selling drugs to senior waiting for the Committee on Appro- lem, a trillion dollars, they now come citizens whose lives depend upon it. priations, the Republican leadership back and say we do not have a dime for Take providing in the budget for re- will not let the rest of the people’s prescription drug benefits, we do not ducing class size so our kindergarten business go forward. So we are not able have a dime to improve our education and elementary schoolchildren, which to have the consideration of a prescrip- system, we do not have a dime to try is where all the professional educators tion drug benefit for our elderly popu- and help people out in the Social Secu- of all political ideologies attest that lation. rity system, we do not have a dime to we could make a great positive dif- Many of us now know what our try to help people with minimum wage. ference in education, requires both grandparents and our parents struggle In fact, minimum wage, designed to more teachers and more classrooms to with in terms of pain for the prescrip- help people who are the working poor, accomplish reducing the class size in tion medicines they need. We know people who get up and go to work every our schools. No, they refuse to fund that we need to provide them some ad- day of the year and at the end of the that in the budget for education. ditional financial help. The President year they end up poor, rather than do Take extending Social Security so has made that proposal. But we cannot that, they want to load up the min- that Americans over 30 can be sure get consideration of that on the floor. imum wage with 90 to 100 billion dol- that Social Security will be there when Many of us know that we need to ex- lars in tax cuts, 75 or 80 percent of they need it as it is for those who are tend the fiscal solvency of Social Secu- which goes to the top one percent of over 50. No, they have done absolutely rity, but nothing is before this Con- people in this country. nothing that would extend the lifetime gress that would extend that solvency So while we are trying to help what of Social Security by so much as a sin- by a single day. And so, we do not at- are low-income workers with increas- gle day. tend to that business, the needs of the ing the minimum wage, they say the This is a strange record for a legisla- elderly, the needs of future generations price of that is we have got to lather tive body. Usually legislative bodies at to know that Social Security will both up the top one percent of this country least try to respond to the collective be secure and financially solvent when with $100 billion in tax benefits. will of their constituents, to the peo- they need it. The fact of the matter is that this ple’s collective will. We are going to We passed HMO legislation, and then continuing resolution will do nothing vote this 3 working days additional we see just a brutal force act of ap- to get the people’s business done in continuing resolution, but we are going pointing conferees that are not in- this House of Representatives because to be back here next Wednesday voting clined to support that legislation, that the Republicans refuse to address this additional continuing resolutions. are not inclined to support progressive legislation. They refuse to do what Mr. YOUNG of Florida. Mr. Speaker, managed care protections for families America needs to have done, what I reserve the balance of my time. that are denied care in many cases by American families wants, the edu- Mr. OBEY. Mr. Speaker, I yield 6 HMO bureaucrats, by managed care cation of the children, the protection minutes to the gentleman from Cali- employees, that have no medical exper- of their elderly members, the protec- fornia (Mr. GEORGE MILLER). tise, that interfere with the doctor-pation of wages. Mr. GEORGE MILLER of California. tient relationship. POINT OF ORDER Mr. Speaker, I thank the gentleman for So that HMO legislation will not Mr. YOUNG of Florida. Mr. Speaker, yielding me the time. come forward in a form that it will point of order. Mr. Speaker, I have supported the help American families meet the med- The SPEAKER pro tempore (Mr. previous three continuing resolutions ical needs of their children and of their HANSEN). The gentleman will state his that we have previously approved to family members. point of order. try and give time for the Committee on Why did they do that? Apparently, Mr. YOUNG of Florida. Mr. Speaker, Appropriations to end their negotia- they could not stand to have two hon- I have been pretty patient about all of tions. est brokers on this committee so they these appropriations bills. Unfortunately, I do not belief that could not appoint the gentleman from The gentleman from California (Mr. the negotiations are now done at the Georgia (Mr. NORWOOD) or the gen- GEORGE MILLER) is speaking out of Committee on Appropriations level. I tleman from Iowa (Mr. GANSKE) who order. He is not speaking to the issue believe they are being orchestrated by are proven to be honest brokers on be- before us. I think the gentleman should the Republican leadership in this half of real and sensible HMO reform. be compelled to constrain his remarks House, and I think the Republican While we spent the first 9 months of to the issue before us, and that is the leadership has proven itself to be dys- this legislative year while the Repub- continuing resolution. functional with respect to those nego- licans tried to sell to the American Mr. GEORGE MILLER of California. tiations and with respect to doing the public a trillion-dollar tax bill, the The issue before us, Mr. Speaker, is people’s business. So now we are called vast majority of benefits that went for whether or not we are going to be given upon to approve our fifth continuing very large corporations and very, very another 7 days to fail. They have resolution, a continuing resolution wealthy individuals in this country, a failed. They have been given 5 weeks, that does not assure that the work will tax bill and a tax cut that was repudi- and they have failed. get done. ated by the American public over- The SPEAKER pro tempore. The gen- There is no evidence from approving whelmingly, especially when they com- tleman from California (Mr. GEORGE the past three continuing resolutions pared it to their other priorities of pro- MILLER) will suspend. that the work of this Nation has been tecting Social Security, making Social Mr. GEORGE MILLER of California. done by this body. For that reason, I Security secure, improving the edu- That is the issue before us, Mr. Speak- find myself very inclined to oppose this cational system of their children, reer, is the failure of the Republicans continuing resolution. forming the HMO system, providing for with the five continuing resolutions; Maybe we should stay in over the a prescription benefit, America said and that is what I am speaking to. weekend. Maybe the people ought to they would like us to address those The SPEAKER pro tempore. The gen- work all night. Maybe the leadership issues before they start addressing tax tleman from California will suspend. ought to give the gentleman from Flor- cuts for the wealthy, they would like The gentleman will confine his re- ida (Mr. YOUNG) and the gentleman to see us pay down the deficit if we are marks to the pending legislation.

VerDate 29-OCT-99 01:32 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00021 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.080 pfrm02 PsN: H04PT1 H11504 CONGRESSIONAL RECORD — HOUSE November 4, 1999 Mr. GEORGE MILLER of California. Mr. Speaker, I yield such time as he for an entire year, putting at risk sci- Mr. Speaker, the gentleman will be may consume to the gentleman from entific research teams all over the more than happy to talk about the Kentucky (Mr. ROGERS), the chairman country. The majority party has re- pending legislation and the failure the of the Appropriations Subcommittee fused to do that. And now we are told, last three times that we have had this on Commerce, Justice, State, and Judi- Oh, gee, we should not talk about that kind of legislation before us of the Re- ciary. because that is not the subject at publicans either to move and reach a Mr. ROGERS. Mr. Speaker, I thank hand.’’ The subject at hand is getting budget agreement so this Nation will the gentleman for yielding me this the permission of the Congress for the know where we stand with respect to time. He who is without sin, let him government to continue for another 7 Social Security, the debt and our obli- cast the first stone. days without shutting down. That is gations, both domestic and foreign, the The gentleman who just spoke on the the subject at hand. What the gen- failure of the Republicans to do that other side complains that we are not tleman from California was talking under this legislation the previous able to produce final results at this about is simply his assessment of why three times. early date. When the gentleman’s party we are in this fix. I think the gen- I think it opens a legitimate ques- was in charge of this body, I recollect tleman was on point. tion: Why are we now doing this for an- being here on Christmas Eve one year, With respect to the two myths that other 7 days? Why are we not staying after having passed maybe eight or 10 were just peddled about the adminis- here working over the weekend or continuing resolutions and they were tration’s refusal to negotiate, that is a whatever is necessary? unable to deliver, and they had a huge joke and everyone in this Chamber, in- majority in this body at that time. cluding the press watching, knows it is b 1245 Now, the administration is refusing a joke. We have seen headlines for the These conference committees have at this point to negotiate on any of past 6 months coming out of your lead- been meeting time and again. But these bills except the Foreign Oper- ership’s office saying, ‘‘No, we are not every time they sit down to meet, ations bill. I am chairman of the State, going to negotiate directly from the somebody walks into the room and Commerce, Justice bill that the Presi- President because he stole our socks in hands somebody a piece of paper and dent vetoed. The bill would be law if he negotiations last year.’’ ‘‘We have got the negotiations are off. If you are had signed it. We did our part, sent it a little sisters of the poor complex. going to ask the American people to be down there and the President vetoed Every time we think about negotiating patient for another 7 days, they have the bill and now refuses to negotiate on with the President, we are afraid he is been patient for 5 weeks, while we have any of these bills except foreign aid. going to outnegotiate us.’’ And so the not had a budget. They ought to know All they want apparently is to give leadership has already declared pub- that in fact there is going to be some money to foreign countries, do not licly its lack of confidence in its own chance, some chance of success that we worry about the FBI or law enforce- negotiating ability and they say, ‘‘No, will have a budget that meets the ment or the drug war or the courts. we’re not going to get into the box and needs of this country and that while we ‘‘Let them fend for what they may, all negotiate with the President, we’re are here, the other 430 Members of Con- we want,’’ apparently the White House only going to do this at a lower level.’’ gress that are not engaged in these ne- is saying, ‘‘is foreign aid.’’ Give it Last night a conversation took place gotiations, maybe we could get on with away. between the President and your leader- the rest of the people’s business, the I say if you are really serious on that ship, and, as you know, the President people’s concerns about their education side about getting out of here, getting offered again to send his chief of staff, system, their Social Security system, our business done, cooperate, have Mr. Podesta, down here to negotiate di- the HMO system, the minimum wage your White House cooperate, let them rectly with your leadership. And again that workers need in this country to come up here and talk with us and let he was told by your leadership, ‘‘No, we try to provide for their families. That us work out the details. We are ready. don’t want to get in the same room is why people ought to think long and We could have my bill finished in 4 or with you, so instead, why don’t you hard before they just give carte 5 hours maximum. We have offered and have the appropriators meet.’’ Well, blanche again to another 7 days when pled even with the Office of Manage- the appropriators did meet, for a while we have failed in the past 5 weeks to do ment and Budget in the White House, at least some of us, and after an hour, the business of this country, the busi- ‘‘Let’s talk.’’ They say, ‘‘Not until we there were only two Republicans left in ness of America’s families, the business get our foreign aid.’’ the room. Everybody else had gone of America’s elderly, the business of So, Mr. Speaker, there is the crux. home. We were there, the White House America’s children. The White House only wants at this was there, and the White House made Mr. YOUNG of Florida. Mr. Speaker, point in time to give the taxpayers’ two compromise offers in a row, both of I yield myself one minute just to say money of this country away to foreign which were rejected by the other side. that it is that kind of political poison countries and be damned to what hap- So it is silly to suggest that the that has caused the problem that we pens here at home. White House has not been offering to have in the House in trying to move Mr. OBEY. Mr. Speaker, I yield my- negotiate. They have been in the room appropriations legislation. This type of self 5 minutes. every time there has been a meeting. I poison is passed on to the administra- Mr. Speaker, I am amused. We were just suggest, I think we should stop the tion, and then they last week refused just urged by the gentleman from Flor- hyperbole and I think we ought to get to even come to meetings to negotiate. ida to avoid inflammatory remarks and on with the business of government, We have finally gotten them to meet- then we hear the kind of ridiculous but I think it is fair to observe that the ings and we are negotiating. But this statement that was just made, sug- President has a reason for wanting to kind of political diatribe does not real- gesting that the President lusts after see this bill negotiated along with the ly add to getting the job done, which is only one thing, and that is to send others, because the majority party has what we are trying to do. money abroad. The last time I looked, a long record of dragging its feet in I would point out to that gentleman the President had a long list of re- meeting its international responsibil- that this House has passed every appro- quests of this Congress. He is asking us ities. For a year and a half, in the mid- priations bill, every conference report, to provide 100,000 new teachers which dle of the Asian debt crisis which and we are dealing with the vetoes that the majority party has refused to do. threatened to swamp our own economy the President sent to us. The President He is asking us to provide 50,000 new and swamp our own currency, the ma- is finally, finally, sending a representa- policemen which the majority party jority party refused to provide the IMF tive down here to negotiate with us. has refused doing. He is asking that we funding that was necessary. It has The gentleman is really offbase. He is actually make available to the Na- dragged its feet on paying our dues at making his usual political speech, but tional Institutes of Health for medical the United Nations for 2 years and, as all we are trying to do is get this con- research all of the money that we pre- I said, on the domestic side, the major- tinuing resolution passed which I tend we are making available rather ity party has steadfastly refused to thought we had agreed to do. than delaying virtually all new grants agree to the President’s request for

VerDate 29-OCT-99 02:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00022 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.047 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11505 100,000 new teachers or for 50,000 new is so arcane. The other issue that to people in this town is when you cops on the beat, among other things. sometimes people do not understand come to believe your own baloney, and Mr. Speaker, I regret that we have when we talk about it back home is a the fact is that I think we have a lot of gotten into this kind of a tit-for-tat ar- motion to recommit, because that is that going on. And I do not think, gument, but I guess it is inevitable kind of arcane, too. But it really is de- frankly, that the country is paying given the fact that this Congress is unsigned to protect our democratic exper- much attention to what we say. They able to do anything but. I hope things iment here. We have our plan, the ma- are more interested in what we do, and change. I think the best way to change jority offers its plan, and then the mi- what they see so far is that we have is to get off the floor and get back into nority’s rights are protected because been doing nothing. the negotiating room on the foreign op- they always have a right to recommit, So I would suggest we stop doing erations bill that I thought was so to make a motion to recommit with in- nothing, come to an agreement on close to an agreement last night. Ev- structions. these four remaining bills and get out eryone understands that that is the Last week on the Labor-HHS bill of town. But it is going to take a deter- logjam which is holding this place up. when they had their chance to put mination on the part of the majority And so if you want to go home, I their plan on the table, they could have party to negotiate with the President, would suggest you act like it and get said, ‘‘We like your plan but we want rather than laying down ultimatums down to doing some serious negoti- to put more money into education.’’ about what is on or off the table. This ating. They did not do that. When they had happened last night. When that Mr. YOUNG of Florida. Mr. Speaker, their chance to say, ‘‘We like your plan mindset changes, we may begin to see I yield 2 minutes to the distinguished but we would have rearranged the pri- some progress around here. gentleman from Ohio (Mr. TRAFICANT). orities and we would have put more Mr. Speaker, I yield back the balance (Mr. TRAFICANT asked and was money into veterans benefits,’’ they of my time. given permission to revise and extend did not do that, either. Mr. YOUNG of Florida. Mr. Speaker, his remarks.) Looking at the record, and it is a I yield myself the balance of my time. Mr. TRAFICANT. Mr. Speaker, I matter of public record, when they had Mr. Speaker, this has been somewhat have great respect for our ranking their chance to reflect what their pri- of a spirited conversation over a meas- member the gentleman from Wisconsin orities were on the Labor-HHS bill, ure that we thought was going to move (Mr. OBEY). I think he is a great leader their motion to recommit with instruc- fairly quickly. I would join the gen- and a great Congressman. And, too, I tions included basically our bill except tleman from Wisconsin (Mr. OBEY) in have great respect for our new chair- they included the full congressional wishing we had completed this business man. But I think it is time for some pay raise. 20 minutes ago, because it is important perspective here and it is time to put That is how political this business that we get this measure passed the politics aside, folks. There is too has become. I think my colleague from through the House. many politics being played now with Ohio is exactly right. We are only a few But it is difficult to sit here and lis- the budget of the American people. I billion dollars apart with the White ten to some of the political accusations can remember one year as a Democrat House. Despite all of the political pos- that we have heard on almost every ap- in a Democrat majority being here turing that is going on right now, we propriations bill that has come before until December 23 with continuing res- have all agreed on some simple, basic the House this year. It is difficult to sit olution after continuing resolution facts. We are not going to close down here and listen to that and not feel in- after continuing resolution. This is not the government, we are not going to clined to respond. But I am not going unusual. In fact, there have been great raid Social Security, we are not going to yield to that temptation. I am not strides. Every appropriation bill has to raise taxes, everything else is nego- going to respond to all of the political been passed. Now, maybe we do not tiable. I think with a few hours’ of attacks that were made here. agree with all of them, but it is time to good faith bargaining on the part of But I do want to say that the attacks say something that has to be said: the White House and congressional that some Members of the other side These bills have been subject to too leaders, we could have a bargain, we like to make at our majority leader- much political chicanery. Even the fine could have a deal, we could put this ship, the Speaker of the House, the ma- Defense appropriation bill was almost budget together for the good of the jority leader, the majority whip, are held hostage with a veto threat for American people, for the good of every- unfounded. They are unfair, because more foreign aid. As a Democrat, I sup- body here, we could all be done by next these gentlemen have worked hard to port the stance that this majority Monday at probably midnight. I hope try to accomplish the work of this party has taken on spending overseas we can all get together and get that House. and looking at the domestic side. done. We have passed every appropriations Now, I think we are very close and I Mr. OBEY. Mr. Speaker, I yield my- bill in the House and in the Senate, we think it is time for the leaders that we self 2 minutes. have passed every conference report in have, more than competent, to sit Mr. Speaker, after this continuing the House and in the Senate, and we down, close the doors, turn up the heat, resolution is passed and sent to the are now dealing in that final phase have some chili and some baked beans Senate, we will have two choices: We where the President of the United and not leave until you get it done. I can continue this once-a-week rewind States has decided to veto certain bills. know they can do it. operation, or we can decide this after- So we are at a point where we are nego- Mr. YOUNG of Florida. Mr. Speaker, noon that we are going to sit down and tiating with the President to try to re- I yield 2 minutes to the gentleman come to closure on the agreement that solve our differences so that we can get from Minnesota (Mr. GUTKNECHT). I thought we were within an hour of new bills to him in a form that he will Mr. GUTKNECHT. Mr. Speaker, after achieving last night on the Foreign Op- sign, because unless he signs them or that speech by our colleague from erations bill. If that can be achieved, unless we have the votes to override Ohio, I am somewhat hesitant to talk then we can move to try to deal with his vetoes, we have to reach an agree- politically. But I do want to mention the issues that still divide us on the ment and accommodation. That means and remind people of what happened issue of education, on the issue of both sides have to give a little. last week when we had the Labor-HHS crime, and on the issue of paying our Our leadership met with the Presi- bill. U.N. dues. dent just a few days ago, and they All of these arguments about who is talked with him on the phone even b taking money from Social Security, we 1300 more recently, and he agreed to this: have a letter from the Congressional I would like to think we could con- That we would negotiate; that any ad- Budget Office, they have letters, it is clude that in a reasonable time and get ditional funding that he requested that all based on what assumptions you give out of here. I do not think, frankly, we would agree to that he would offer the Congressional Budget Office, you that either party is scoring any points offsets to pay for it. get different answers. Most people, on these issues. I have said many times Now, the negotiations began, and their eyes start to glaze over because it that the worst thing that can happen they began in earnest, and I would

VerDate 29-OCT-99 02:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00023 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.051 pfrm02 PsN: H04PT1 H11506 CONGRESSIONAL RECORD — HOUSE November 4, 1999 compliment Jack Lew, the Director of to negotiate with this House and the The question is on the engrossment the Office of Management and Budget. leaders of this House on anything else and third reading of the joint resolu- He is a tough negotiator. When he tells until the foreign aid bill is settled and tion. you something, that is the way it is. decided. The joint resolution was ordered to Unfortunately, some of the things he Now, we are willing to go along with be engrossed and read a third time, and told us we did not like because they that, and that is why we wanted to get was read the third time. were different than what the President this measure off the floor early so we The SPEAKER pro tempore. The told us. could get back to those negotiations question is on the passage of the joint The President told us as we went and try to have that package wrapped resolution. along with spending or agreeing to up by today. The question was taken; and the Mr. Speaker, there is something else spending the money that he requested Speaker pro tempore announced that that I would like to mention. The gen- that he would then offer offsets. Last the ayes appeared to have it. night, several times at one of our tleman from Wisconsin (Mr. OBEY) said that we start to believe our own balo- Mr. OBEY. Mr. Speaker, I object to lengthy meetings, I asked Mr. Lew the vote on the ground that a quorum what are the offsets? Mr. Lew refused ney. We have seen some baloney on the floor today. Most of it I did not believe, is not present and make the point of to talk about the offsets, and to this order that a quorum is not present. minute in my presence has refused to Mr. Speaker. Anyway, let us pass this continuing The SPEAKER pro tempore. Evi- talk about offsets; in other words, how dently a quorum is not present. do we pay for this additional spending resolution, and let us not be offended The Sergeant at Arms will notify ab- in foreign aid. by the fact that it is a continuing reso- Mr. OBEY. Mr. Speaker, will the gen- lution, especially coming from the sent Members. tleman yield? Democrats who ran this House for 40 The vote was taken by electronic de- Mr. YOUNG of Florida. I yield to the years. Let me repeat something the vice, and there were—yeas 417, nays 6, gentleman from Wisconsin. gentleman from Wisconsin (Mr. OBEY) not voting 10, as follows: Mr. OBEY. Mr. Speaker, I would like said: We repeat our speeches too often. [Roll No. 565] to point out that the gentleman left But in view of some of the accusations YEAS—417 made today, let me just go back a few the room for over an hour, and while Abercrombie Clement Gekas the gentleman was out of the room, years. Ackerman Clyburn Gephardt Mr. Lew did specifically refer to three In fiscal year 1990 the Democrats con- Aderholt Coble Gibbons trolled this House and they had a con- Allen Coburn Gilchrest different ways that offsets could be Andrews Collins Gillmor handled. tinuing resolution for 51 days. Fiscal year 1991, they had a CR for 36 days. Archer Combest Gilman Mr. YOUNG of Florida. Mr. Speaker, Armey Condit Gonzalez reclaiming my time, I thank the gen- Fiscal year 1992, they had a CR for 57 Bachus Conyers Goode tleman for reminding me that it was days. They did better in 1993, they only Baird Cook Goodlatte had 5 days. But in fiscal year 1994 they Baker Cooksey Goodling important to have an additional meet- Baldacci Costello Gordon ing with representatives from the Sen- had 41 days. So for the Democrats to Baldwin Cox Goss come on the floor now and accuse the ate and from the House in order to try Ballenger Coyne Graham Republicans of using CRs to finish the Barcia Cramer Granger to finalize or come to agreement on business is a little hollow. Barr Crane Green (TX) what we were trying to do, and, despite Now, the gentleman from Wisconsin Barrett (NE) Crowley Green (WI) the gentleman’s insinuation, it is very Barrett (WI) Cubin Greenwood (Mr. OBEY) would like me to say the Bartlett Cummings Gutierrez difficult to be in two places at the year he was chairman, for fiscal year Barton Cunningham Gutknecht same time. That is why I emphasized in 1995, we did not have any CRs, and he Bass Danner Hall (OH) Bateman Davis (FL) Hall (TX) my presence Mr. Lew was unwilling to is right, and I applaud him for that. provide the offsets. Becerra Davis (IL) Hansen Let me tell you what else he had: He Berkley Davis (VA) Hastings (WA) But now we are working through had 81 more Democrats than there were Berman Deal Hayes that. If we can keep the atmosphere Republicans in the House. He could do Berry DeGette Hayworth fairly civil, I think we can do that. I Biggert Delahunt Hefley most anything he wanted. Bilbray DeLauro Herger did not see a lot of stability coming We have a small majority. We only Bilirakis DeLay Hill (IN) our direction from that side of the aisle have 10 more Republicans this year Bishop DeMint Hill (MT) today, and I really am offended by that than the gentleman from Wisconsin Blagojevich Deutsch Hilleary lack, and I am offended by the political Bliley Diaz-Balart Hilliard (Mr. OBEY) had. He had 81. But in that Blumenauer Dicks Hinchey speeches. year that the gentleman from Wis- Blunt Dingell Hinojosa The gentleman from Wisconsin (Mr. consin (Mr. OBEY) had 81 more Demo- Boehlert Dixon Hobson Boehner Doggett Hoeffel OBEY) said earlier that there are too crats than Republicans, he spent $60 many speeches. He is right, especially Bonilla Dooley Hoekstra billion out of the Social Security trust Bonior Doolittle Holden when they are all the same and they fund. We are not doing that. We are Bono Doyle Holt say the same thing. I have memorized balancing the budget. We are not rais- Borski Dreier Hooley the speech of my friend the gentleman Boswell Duncan Horn ing taxes. We are not taking any Boucher Dunn Hostettler from Wisconsin (Mr. OBEY) because he money out of the Social Security trust Boyd Edwards Houghton has made it every time we had an ap- fund. There is a big difference. We have Brady (PA) Ehrlich Hoyer Brady (TX) Emerson Hulshof propriations bill. So I can make his accomplished some things that people speech for him. Although I disagree Brown (FL) Engel Hunter did not believe could be accomplished, Brown (OH) English Hutchinson with it, I can make his speech for him. and we have done it with a very, very Bryant Eshoo Hyde Now, we have other things to nego- small majority and a Democrat in the Burr Etheridge Inslee tiate, but the President is not willing Burton Evans Isakson White House. Buyer Everett Istook to negotiate anything on the other re- Mr. Speaker, let us pass this con- Callahan Ewing Jackson (IL) maining bills until we have an agree- tinuing resolution and get down to the Calvert Farr Jackson-Lee ment on foreign aid. In other words, his real business of finishing the negotia- Camp Fattah (TX) primary interest is how much money Campbell Filner Jefferson tions on the remaining bills. Canady Fletcher Jenkins are we going to give him to spend Mr. Speaker, I yield back the balance Cannon Foley John around the world. of my time. Capps Ford Johnson (CT) Well, we are willing to work with The SPEAKER pro tempore (Mr. Capuano Fossella Johnson, E. B. Cardin Fowler Johnson, Sam him on that. We are willing to do HANSEN). All time for debate has ex- Carson Frank (MA) Jones (NC) things he wants to do, because we un- pired. Castle Franks (NJ) Jones (OH) derstand that he is the President, but The joint resolution is considered Chabot Frelinghuysen Kaptur we have to understand that one reason Chambliss Frost Kasich read for amendment. Chenoweth-Hage Gallegly Kelly we are being delayed on the other bills Pursuant to the order of the House of Clay Ganske Kennedy is because the administration refuses today, the previous question is ordered. Clayton Gejdenson Kildee

VerDate 29-OCT-99 02:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00024 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.056 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11507 Kilpatrick Neal Shuster Mr. BENTSEN. Mr. Speaker, on roll- There was no objection. Kind (WI) Nethercutt Simpson The SPEAKER pro tempore. The King (NY) Ney Sisisky call No. 565, I was unavoidably de- Kingston Northup Skeen tained. question is on the motion offered by Kleczka Nussle Skelton Had I been present, I would have the gentleman from Florida (Mr. Klink Obey Slaughter noted ‘‘yea.’’ YOUNG). Knollenberg Olver Smith (MI) The motion was agreed to. Kolbe Ortiz Smith (NJ) f Kucinich Ose Smith (TX) A motion to reconsider was laid on Kuykendall Owens Smith (WA) PERSONAL EXPLANATION the table. LaFalce Oxley Snyder Mr. EHLERS. Mr. Speaker, on rollcall Nos. The SPEAKER pro tempore. Without LaHood Packard Souder objection, the Chair appoints the fol- Lampson Pallone Spence 564 and 565, I missed the votes due to my Lantos Pascrell Spratt participation in an important meeting and in lowing conferees: Messrs. YOUNG of Largent Pastor Stabenow the Marine Corps ceremony. Had I been Florida, LEWIS of California, and OBEY. Latham Pease Stark present, I would have voted ``yes'' on both. There was no objection. LaTourette Pelosi Stearns f Lazio Peterson (MN) Stenholm f Leach Peterson (PA) Strickland b PERSONAL EXPLANATION Lee Petri Stump 1330 Levin Phelps Stupak APPOINTMENT OF CONFEREES ON Ms. JACKSON-LEE of Texas. Mr. Lewis (CA) Pickering Sununu Speaker, on November 1, 1999, this body H.R. 3194, DISTRICT OF COLUMBIA Lewis (GA) Pickett Sweeney held three rollcall votes on bills con- Lewis (KY) Pitts Talent APPROPRIATIONS ACT, 2000 Linder Pombo Tancredo sidered under suspension on the floor of Lipinski Pomeroy Tanner Mr. YOUNG of Florida. Mr. Speaker, the House. Because of a family medical LoBiondo Porter Tauscher pursuant to the previous order of the matter, I missed the following votes, Lofgren Portman Taylor (MS) House, I move to take from the Speak- Mr. Speaker: Lowey Price (NC) Taylor (NC) Lucas (KY) Pryce (OH) Terry er’s table the bill (H.R. 3194) making On rollcall No. 550, H.R. 348, I would Lucas (OK) Quinn Thomas appropriations for the government of have voted ‘‘aye’’; rollcall No. 551, H.R. Luther Radanovich Thompson (CA) the District of Columbia and other ac- 2337, I would have voted ‘‘aye’’; rollcall Maloney (CT) Rahall Thompson (MS) tivities chargeable in whole or in part No. 552, H.R. 1714, I would have voted Maloney (NY) Ramstad Thornberry Manzullo Rangel Thune against revenues of said District for ‘‘no.’’ Markey Regula Thurman the fiscal year ending September 30, On November 3, Mr. Speaker, due to Martinez Reyes Tiahrt 2000, and for other purposes, with a a family medical matter, I was unable Mascara Reynolds Tierney to participate on two votes. Had I been Matsui Riley Toomey Senate amendment thereto, disagree to McCarthy (MO) Rivers Towns the amendment of the Senate, and in attendance on rollcall No. 557, on McCarthy (NY) Rodriguez Traficant agree to the conference asked by the agreeing to the Journal, I would have McCollum Roemer Turner Senate. voted ‘‘aye’’; and on rollcall No. 558, McCrery Rogan Udall (CO) McDermott Rogers Udall (NM) The SPEAKER pro tempore (Mr. H.R. 2290, the Quality Care for the Un- McGovern Rohrabacher Upton HANSEN). Is there objection to the re- insured Act, I would have voted ‘‘aye.’’ McHugh Ros-Lehtinen Velazquez quest of the gentleman from Florida? f McInnis Rothman Vento There was no objection. McIntosh Roukema Visclosky The SPEAKER pro tempore (Mr. PRIVILEGES OF THE HOUSE— McIntyre Roybal-Allard Vitter CALLING ON PRESIDENT TO AB- McKeon Royce Walden HANSEN). The gentleman from Florida STAIN FROM RENEGOTIATING McKinney Rush Walsh (Mr. YOUNG) is recognized for 1 hour. McNulty Ryan (WI) Wamp Mr. YOUNG of Florida. Mr. Speaker, INTERNATIONAL AGREEMENTS Meehan Ryun (KS) Waters I yield 30 minutes of that hour to the GOVERNING ANTIDUMPING LAWS Meek (FL) Sabo Watkins AND COUNTERVAILING MEAS- Meeks (NY) Salmon Watt (NC) gentleman from Wisconsin (Mr. OBEY), Menendez Sanchez Watts (OK) my distinguished friend and colleague, URES Metcalf Sanders Waxman Mr. VISCLOSKY. Mr. Speaker, pur- Mica Sandlin Weiner for the purpose of debate only. Millender- Sanford Weldon (FL) Mr. Speaker, I yield myself such time suant to rule IX, I rise to a question of McDonald Sawyer Weldon (PA) as I may consume. the privileges of the House, and offer a Miller (FL) Saxton Weller Mr. Speaker, the issue before us privileged resolution that I noticed to Miller, Gary Schaffer Wexler the House on Tuesday, November 2, and Minge Schakowsky Weygand today is the Senate amendment to the Mink Scott Whitfield District of Columbia appropriations ask for its immediate consideration. Moakley Sensenbrenner Wicker bill. It struck language that the House The SPEAKER pro tempore. The Mollohan Serrano Wilson had included relative to the issuance of Clerk will report the resolution. Moore Sessions Wise The Clerk read as follows: Moran (KS) Shadegg Wolf needles in the needle exchange pro- Moran (VA) Shaw Woolsey gram. RESOLUTION CALLING ON THE PRESIDENT TO Morella Shays Wu Personally, I object to the Senate ABSTAIN FROM RENEGOTIATING INTER- Murtha Sherman Wynn NATIONAL AGREEMENTS GOVERNING ANTI- Myrick Sherwood Young (AK) amendment. However, in order to move DUMPING AND COUNTERVAILING MEASURES Nadler Shimkus Young (FL) this bill and get it to conference, I do Napolitano Shows move to take the bill from the table, Whereas under Art. I, Section 8 of the Con- disagree to the amendment and agree stitution, the Congress has power and re- NAYS—6 sponsibility with regard to foreign commerce DeFazio Forbes Miller, George to the conference. and the conduct of international trade nego- Dickey Hastings (FL) Paul Mr. Speaker, I reserve the balance of tiations; my time. NOT VOTING—10 Whereas the House of Representatives is Mr. OBEY. Mr. Speaker, I yield my- deeply concerned that, in connection with Bentsen Larson Scarborough self 1 minute. the World Trade Organization (‘‘WTO’’) Min- Bereuter Norwood Tauzin isterial meeting to be held in Seattle, Wash- Ehlers Oberstar Mr. Speaker, I was trying to decide Kanjorski Payne whether I should yield 30 minutes to ington, and the multilateral trade negotia- the distinguished gentleman from Cali- tions expected to follow, a few countries are b 1329 seeking to circumvent the agreed list of ne- fornia (Mr. GEORGE MILLER), or wheth- gotiation topics and reopen debate over the Mr. DICKEY changed his vote from er I should yield back the balance of WTO’s antidumping and antisubsidy rules; ‘‘yea’’ to ‘‘nay.’’ my time. I suspected the majority Whereas strong antidumping and Mr. VISCLOSKY changed his vote would prefer that I yield back the bal- antisubsidy rules are a cornerstone of the from ‘‘nay’’ to ‘‘yea.’’ ance of my time so in the interest of liberal trade policy of the United States and So the joint resolution was passed. comity, that is exactly what I will do. are essential to the health of the manufac- The result of the vote was announced Mr. YOUNG of Florida. Mr. Speaker, turing and farm sectors in the United States; Whereas it has long been and remains the as above recorded. I yield back the balance of my time. policy of the United States to support its A motion to reconsider was laid on The SPEAKER pro tempore. Without antidumping and antisubsidy laws and to de- the table. objection, the previous question is or- fend those laws in international negotia- Stated for: dered on the motion. tions;

VerDate 29-OCT-99 02:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00025 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.020 pfrm02 PsN: H04PT1 H11508 CONGRESSIONAL RECORD — HOUSE November 4, 1999 Whereas the current absence of official ne- calls upon the President to address a Chenoweth-Hage Hulshof Ramstad gotiating objectives on the statute books trade imbalance in the area of steel im- Coble Hunter Regula must not be allowed to undermine the Con- Coburn Hutchinson Reynolds ports. Specifically, the resolution calls Riley gress’ constitutional role in charting the di- Collins Hyde upon the President to refrain from par- Combest Isakson Rogan rection of United States trade policy; ticipation in certain international ne- Cook Istook Rogers Whereas, under present circumstances, Cooksey Jenkins Rohrabacher launching a negotiation that includes anti- gotiations, to refrain from submitting Cox Johnson (CT) Ros-Lehtinen dumping and antisubsidy issues would affect certain agreements to the Congress and Crane Johnson, Sam Roukema the rights of the House and the integrity of to vigorously enforce the trade laws. Cubin Jones (NC) Royce its proceedings; As the Chair ruled on October 10, Cunningham Kasich Ryan (WI) Whereas opening these rules to renegoti- Davis (VA) Kelly Ryun (KS) 1998, a similar resolution expressing Deal King (NY) Salmon ation could only lead to weakening them, the legislative sentiment that the DeLay Kingston Sanford which would in turn lead to even greater President should take specified action DeMint Knollenberg Saxton abuse of the world’s open markets, particu- Diaz-Balart Kolbe Schaffer larly that of the United States; to achieve a desired public policy on Dickey Kuykendall Sensenbrenner Whereas, conversely, avoiding another di- trade does not present a question af- Doolittle LaHood Sessions visive fight over these rules is the best way fecting the rights of the House, collec- Dreier Largent Shadegg to promote progress on the other, far more Duncan Latham Shaw tively, its safety, dignity or the integ- Shays important, issues facing WTO members; and Dunn LaTourette rity of its proceedings within the Ehlers Lazio Sherwood Whereas it is therefore essential that nego- meaning of rule IX. In the opinion of Ehrlich Leach Shimkus tiations on these antidumping and the Chair, the resolution offered by the Emerson Lewis (CA) Shuster antisubsidy matters not be reopened under English Lewis (KY) Simpson the auspices of the WTO or otherwise: Now, gentleman from Indiana (Mr. VIS- Everett Linder Skeen therefore, be it CLOSKY) is purely a legislative propo- Ewing LoBiondo Smith (MI) Resolved, That the House of Representa- sition properly initiated by introduc- Fletcher Lucas (OK) Smith (NJ) tives calls upon the President— Foley Manzullo Smith (TX) tion through the hopper under clause 7 Souder (1) not to participate in any international Fossella McCollum of rule XII. Fowler McCrery Spence negotiation in which antidumping or Accordingly, the resolution offered Franks (NJ) McHugh Stearns antisubsidy rules are part of the negotiating by the gentleman from Indiana (Mr. Frelinghuysen McInnis Stump agenda; Gallegly McIntosh Sununu (2) to refrain from submitting for congres- VISCLOSKY) does not constitute a ques- Ganske McKeon Sweeney sional approval agreements that require tion of the privileges of the House Gekas Metcalf Talent changes to the current antidumping and under rule IX and may not be consid- Gibbons Mica Tancredo Tauzin countervailing duty laws and enforcement Gilchrest Miller (FL) ered at this time. Gillmor Miller, Gary Taylor (NC) policies of the United States; and Mr. VISCLOSKY. Mr. Speaker, could Gilman Moran (KS) Terry (3) to enforce the antidumping and coun- I be heard to remark on one comment Goodlatte Moran (VA) Thomas tervailing duty laws vigorously in all pend- that the Chair raised in its ruling? Goodling Morella Thornberry ing and future cases. Goss Myrick Thune The SPEAKER pro tempore. The Graham Nethercutt Tiahrt The SPEAKER pro tempore. The Chair has rendered the decision to the Granger Ney Toomey Chair will entertain argument as to gentleman from Indiana (Mr. VIS- Green (WI) Northup Upton Greenwood Nussle Vitter whether the resolution constitutes a CLOSKY). question of privilege. Gutknecht Ose Walden Mr. VISCLOSKY. Mr. Speaker, I Hall (TX) Oxley Walsh The Chair recognizes the gentleman would appeal the ruling of the Chair. Hansen Packard Wamp from Indiana (Mr. VISCLOSKY). The SPEAKER pro tempore. The Hastings (WA) Paul Watkins Hayes Pease Watts (OK) Mr. VISCLOSKY. Mr. Speaker, I ap- question is: Shall the decision of the preciate the opportunity and would Hayworth Peterson (PA) Weldon (FL) Chair stand as the judgment of the Hefley Petri Weldon (PA) point out, as was stated in the resolu- House? Herger Pickering Weller tion, we have a responsibility under Hill (MT) Pitts Whitfield Article I, Section 8, as far as the con- MOTION TO TABLE OFFERED BY MR. LA HOOD Hilleary Pombo Wicker Mr. LAHOOD. Mr. Speaker, I move to Hobson Porter Wilson duct of trade policy. In the 103rd Con- Hoekstra Portman Wolf gress, the United States Congress did lay the appeal on the table. Horn Pryce (OH) Young (AK) act and the President signed into law The SPEAKER pro tempore. The Hostettler Quinn Young (FL) what the agenda of the WTO Seattle question is on the motion offered by Houghton Radanovich the gentleman from Illinois (Mr. round of negotiations should be. NAYS—204 It is clear that our trading partners LAHOOD) to lay on the table the appeal of the ruling of the Chair. Abercrombie Coyne Green (TX) now want to usurp the position we have Ackerman Cramer Gutierrez taken in statutory language in the The question was taken; and the Allen Crowley Hall (OH) United States of America by debating Speaker pro tempore announced that Andrews Cummings Hastings (FL) whether or not we are to eliminate or the ayes appeared to have it. Baird Danner Hill (IN) Mr. VISCLOSKY. Mr. Speaker, I ob- Baldacci Davis (FL) Hilliard weaken our anti-dumping and anti-sub- Baldwin Davis (IL) Hinchey sidy duties. That is contrary to the an- ject to the vote on the ground that a Barcia DeFazio Hinojosa nounced policy and statutory policy of quorum is not present and make the Barrett (WI) DeGette Hoeffel point of order that a quorum is not Becerra Delahunt Holden the United States of America. Bentsen DeLauro Holt This is not a trivial matter. In 1947, present. Berkley Deutsch Hooley under the Bretton Woods negotiations, The SPEAKER pro tempore. Evi- Berman Dicks Hoyer the GATT condemned anti-dumping dently, a quorum is not present. Berry Dingell Inslee The Sergeant at Arms will notify ab- Bishop Dixon Jackson (IL) and anti-subsidy activities. Blagojevich Doggett Jackson-Lee I am very concerned that if a resolu- sent Members. Blumenauer Dooley (TX) tion is not brought forth to a vote on The vote was taken by electronic de- Borski Doyle Jefferson vice, and there were—yeas 218, nays Boswell Edwards John this floor, our constitutional preroga- Boucher Engel Johnson, E. B. tives will be usurped, and I would ask 204, not voting 11, as follows: Boyd Eshoo Jones (OH) that the Chair rule in my favor. [Roll No. 566] Brady (PA) Etheridge Kaptur The SPEAKER pro tempore. Are Brown (FL) Evans Kennedy YEAS—218 Brown (OH) Farr Kildee there other Members that wish to be Aderholt Biggert Burton Capps Fattah Kind (WI) heard? Archer Bilbray Buyer Capuano Filner Kleczka If not, the Chair is prepared to rule Armey Bilirakis Callahan Cardin Forbes Klink Bachus Bliley Calvert Carson Ford Kucinich on whether the resolution offered by Baker Blunt Camp Clay Frank (MA) LaFalce the gentleman from Indiana (Mr. VIS- Ballenger Boehlert Campbell Clayton Frost Lampson CLOSKY) presents a question of the Barr Boehner Canady Clement Gejdenson Lantos privileges of the House under rule IX. Barrett (NE) Bonilla Cannon Clyburn Gephardt Lee Bartlett Bono Castle Condit Gonzalez Levin The resolution offered by the gen- Bass Bryant Chabot Conyers Goode Lewis (GA) tleman from Indiana (Mr. VISCLOSKY) Bateman Burr Chambliss Costello Gordon Lipinski

VerDate 29-OCT-99 02:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00026 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.026 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11509 Lofgren Obey Slaughter Whereas strong antidumping and to circumvent the agreed list of negoti- Lowey Olver Smith (WA) antisubsidy rules are a cornerstone of the ating topics and open debate over the Lucas (KY) Ortiz Snyder liberal trade policy of the United States and Luther Owens Spratt WTO’s antidumping and antisubsidy are essential to the health of the manufac- Maloney (CT) Pallone Stabenow rules, most notably applied to steel in turing and farm sectors in the United States; Maloney (NY) Pascrell Stenholm the past few months. The Congress has Markey Pastor Strickland Whereas it has long been and remains the Martinez Pelosi Stupak policy of the United States to support its not approved new negotiations on Mascara Peterson (MN) Tanner antidumping and antisubsidy laws and to de- these—— Matsui Phelps Tauscher fend those laws in international negotia- PARLIAMENTARY INQUIRY McCarthy (MO) Pickett Taylor (MS) tions; Mr. KOLBE. Parliamentary inquiry, McCarthy (NY) Pomeroy Thompson (CA) Whereas, under present circumstances, McDermott Price (NC) Thompson (MS) launching a negotiation that includes anti- Mr. Speaker. Is it in order for the gen- McGovern Rahall Thurman tleman to speak beyond the matter of McIntyre Rangel Tierney dumping and antisubsidy issues would affect McKinney Reyes Towns the rights of the House and the integrity of whether or not this is a matter of per- McNulty Rivers Traficant its proceedings; sonal privilege? Meehan Rodriguez Turner Wheereas the WTO antidumping and Mr. WISE. The Chair asked for argu- Meek (FL) Roemer Udall (CO) antisubsidy rules concluded in the Uruguay ments, and I am responding to the Meeks (NY) Rothman Udall (NM) Round have scarcely been tested since they Menendez Roybal-Allard Velazquez Chair. entered into effect and certainly have not The SPEAKER pro tempore. The de- Millender- Rush Vento proved defective; McDonald Sabo Visclosky Whereas opening these rules to renegoti- bate should be confined to whether or Miller, George Sanchez Waters not this constitutes a question of privi- Minge Sanders Watt (NC) ation could only lead to weakening them, Mink Sandlin Waxman which would in turn lead to even greater lege under rule IX. Moakley Sawyer Weiner abuse of the world’s open markets, particu- Mr. WISE. Then I will happily deal Mollohan Schakowsky Wexler larly that of the United States; directly with the gentleman’s response. Moore Scott Weygand Whereas conversely, avoiding another divi- Incidentally, the 10,000 steelworkers Murtha Serrano Wise sive fight over these rules is the best way to who have been laid off in this country Nadler Sherman Woolsey promote progress on the other, far more im- Napolitano Shows Wu would like to have this matter brought portant, issues facing WTO members; and Neal Sisisky Wynn up, but I will deal with the narrow ap- Oberstar Skelton Whereas it is therefore essential that negotiations on these antidumping and proach that the gentleman requests. NOT VOTING—11 antisubsidy matters not be reopened under Section 702 of House rule IX, entitled Barton Kanjorski Payne the auspices of the WTO or otherwise: Now, ‘‘General Principles,’’ concludes that Bereuter Kilpatrick Scarborough therefore, be it certain matters of business arising Bonior Larson Stark Resolved, That the House of Representa- under the Constitution, mandatory in Brady (TX) Norwood tives calls upon the President— nature, have been held to have a privi- b 1403 (1) not to participate in any international negotiation in which antidumping or lege which supersedes the rules estab- Messrs. SAXTON, HEFLEY, SMITH antisubsidy rules are part of the negotiating lishing the order of business. And, Mr. of Texas, and SOUDER changed their agenda; Speaker, before I was interrupted, I vote from ‘‘nay’’ to ‘‘yea.’’ (2) to refrain from submitting for congres- was making those points about those So the motion to table was agreed to. sional approval agreements that require rules which cannot be superseded. The result of the vote was announced changes to the current antidumping and This is a question of the House’s con- countervailing duty laws and enforcement stitutional authority and is, therefore, as above recorded. policies of the United States; and A motion to reconsider was laid on (3) to enforce the antidumping and coun- privileged in nature. The WTO anti- the table. tervailing duty laws vigorously in all pend- dumping and antisubsidy rules con- f ing and future cases. cluded in the Uruguay Round have The SPEAKER pro tempore (Mr. scarcely been tested since they have PRIVILEGES OF THE HOUSE— HANSEN). The Chair will entertain brief been entered into effect and have cer- CALLING ON PRESIDENT TO AB- argument as to whether the resolution tainly not been proven effective. Open- STAIN FROM RENEGOTIATING constitutes a question of privilege. ing these rules to negotiation only INTERNATIONAL AGREEMENTS The Chair recognizes the gentleman leads to weakening them, which in GOVERNING ANTIDUMPING AND from West Virginia (Mr. WISE). turn leads to even greater abuse of the COUNTERVAILING MEASURES Mr. WISE. Mr. Speaker, this resolu- world’s markets. Mr. WISE. Mr. Speaker, I rise to a tion I attempt to bring up calls on the There is precedent for bringing H. question of the privileges of the House, President to abstain from renegoti- Res. 298 out of committee and to the and I offer a privileged resolution, that ating international agreements gov- House floor immediately. For instance, I noticed pursuant to rule IX, and ask erning antidumping and countervailing H. Con. Res. 190 was brought to the for its immediate consideration. measures. floor on October 26 under suspension of The SPEAKER pro tempore. The The arguments I make are very sim- the rules because it concerned the up- Clerk will report the resolution. ple. According to article I, section 8 of coming Seattle Round, and this meas- The Clerk read as follows: the Constitution, the Congress has the ure only had 13 cosponsors, while our RESOLUTION CALLING ON THE PRESIDENT TO power and the responsibility relating comeasure has 228 cosponsors. The ma- ABSTAIN FROM RENEGOTIATING INTER- to foreign commerce and the conduct jority of this House should be heard. NATIONAL AGREEMENTS GOVERNING ANTI- of international trade negotiations. An And, as I point out, thousands of DUMPING AND COUNTERVAILING MEASURES important part of Congress’ participa- steelworkers from Weirton to Wheeling Whereas under Art. I, Section 8 of the Con- tion in the formulation of trade policy to Follensbee, who have been laid off stitution, the Congress has power and re- is the enactment of official negotiating during the course of these antidumping sponsibility with regard to foreign commerce objectives against which completed and antisubsidy rules not being effec- and the conduct of international trade nego- agreements can be measured when pre- tively applied, are saying now to the tiations; Whereas the House of Representatives is sented for ratification. President, please do not step back and deeply concerned that, in connection with This Congress, in 1994, ratified an please do not weaken them any fur- the World Trade Organization (‘‘WTO’’) Min- agenda for the Seattle World Trade Or- ther. Stand up for workers in this isterial meeting to be held in Seattle, Wash- ganization Ministerial Conference that country. That is the grounds upon ington, and the multilateral trade negotia- is about to take place, and that agenda which I assert the privilege. tions expected to follow, a few countries are included only agricultural trade serv- The SPEAKER pro tempore. Are seeking to circumvent the agreed list of ne- ices, trade, and intellectual property there any other Members that want to gotiation topics and reopen debate over the protection. The agenda, specifically en- be heard on this point? WTO’s antidumping and antisubsidy rules; If not, the Chair is prepared to rule Whereas the Congress has not approved acted into Federal law as Public Law new negotiations on antidumping or 103–465, did not include antidumping or on whether the resolution offered by antisubsidy rules and has clearly, but so far antisubsidy rules. the gentleman from West Virginia (Mr. informally, signaled its opposition to such What Congress is concerned about WISE) is a question of the privileges of negotiations; here is that a few countries are seeking the House under rule IX.

VerDate 29-OCT-99 05:09 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00027 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.022 pfrm02 PsN: H04PT1 H11510 CONGRESSIONAL RECORD — HOUSE November 4, 1999 The resolution offered by the gen- Fossella LaTourette Royce Olver Sanchez Thompson (MS) Fowler Lazio Ryan (WI) Ortiz Sanders Thurman tleman from West Virginia calls upon Franks (NJ) Leach Ryun (KS) Owens Sandlin Tierney the President to address a trade imbal- Frelinghuysen Lewis (CA) Salmon Pallone Sawyer Towns ance in the area of imports. Specifi- Gallegly Lewis (KY) Sanford Pascrell Schakowsky Traficant cally, the resolution calls upon the Ganske Linder Saxton Pastor Scott Turner Gekas LoBiondo Schaffer Pelosi Serrano Udall (CO) President to refrain from participation Gibbons Lofgren Sensenbrenner Peterson (MN) Sherman Udall (NM) in certain international negotiations, Gilchrest Lucas (OK) Sessions Phelps Shows Velazquez to refrain from submitting certain Gillmor Manzullo Shadegg Pickett Sisisky Vento agreements to the Congress, and to vig- Gilman McCollum Shaw Pomeroy Skelton Visclosky Goodlatte McCrery Sherwood Price (NC) Slaughter Waters orously enforce the trade laws. Goodling McHugh Shimkus Rahall Smith (WA) Watt (NC) As the Chair stated on October 10, Goss McInnis Shuster Rangel Snyder Waxman 1998, and earlier today, a resolution ex- Graham McIntosh Simpson Reyes Spratt Weiner Granger McKeon Skeen Rivers Stabenow Wexler pressing the legislative sentiment that Green (WI) Metcalf Smith (MI) Rodriguez Stenholm Weygand the President should take specific ac- Greenwood Mica Smith (NJ) Roemer Strickland Wise tion to achieve a desired public policy Gutknecht Miller (FL) Smith (TX) Rothman Tanner Woolsey Hall (TX) Miller, Gary Souder Roybal-Allard Tauscher Wu end does not present a question affect- Hansen Moran (KS) Spence Rush Taylor (MS) Wynn ing the rights of the House, collec- Hastings (WA) Moran (VA) Stearns Sabo Thompson (CA) Stump tively, its safety, dignity, or the integ- Hayes Morella NOT VOTING—16 rity of its proceeding within the mean- Hayworth Myrick Sununu Hefley Nethercutt Sweeney Bereuter Larson Scarborough ings of rule IX. In the opinion of the Herger Ney Talent Chenoweth-Hage Maloney (CT) Shays Chair, the resolution offered by the Hill (MT) Northup Tancredo Conyers Meek (FL) Stark gentleman from West Virginia is pure- Hilleary Nussle Tauzin Istook Norwood Stupak Hobson Ose Taylor (NC) Kanjorski Payne ly a legislative proposition properly Hoekstra Oxley Terry Kasich Porter initiated by introduction through the Horn Packard Thomas b hopper under clause 7, rule XII, to be Hostettler Paul Thornberry 1432 subsequently considered under the nor- Houghton Pease Thune So the motion to table was agreed to. Hulshof Peterson (PA) Tiahrt mal rules of the House. Hunter Petri Toomey The result of the vote was announced Accordingly, the resolution offered Hutchinson Pickering Upton as above recorded. by the gentleman from West Virginia Hyde Pitts Vitter A motion to reconsider was laid on Isakson Pombo Walden the table. does not constitute a question of the Jenkins Portman Walsh privileges of the House under rule IX, Johnson (CT) Pryce (OH) Wamp f and may not be considered at this Johnson, Sam Quinn Watkins PRIVILEGES OF THE HOUSE— time. Jones (NC) Radanovich Watts (OK) Kelly Ramstad Weldon (FL) CALLING ON PRESIDENT TO AB- Mr. WISE. Mr. Speaker, I appeal the King (NY) Regula Weldon (PA) STAIN FROM RENEGOTIATING ruling of the Chair, and ask to be heard Kingston Reynolds Weller INTERNATIONAL AGREEMENTS on the ruling. Knollenberg Riley Whitfield Kolbe Rogan Wicker GOVERNING ANTIDUMPING LAWS The SPEAKER pro tempore. The Kuykendall Rogers Wilson AND COUNTERVAILING MEAS- question is, Shall the decision of the LaHood Rohrabacher Wolf URES Chair stand as the judgment of the Largent Ros-Lehtinen Young (AK) Mr. KUCINICH. Mr. Speaker, I rise to House? Latham Roukema Young (FL) a question of the privileges of the MOTION TO TABLE OFFERED BY MR. KOLBE NOES—201 House and offer a privileged resolution Mr. KOLBE. Mr. Speaker, I move to Abercrombie Deutsch Kennedy that I noticed pursuant to rule IX and lay the appeal on the table. Ackerman Dicks Kildee ask for its immediate consideration. The SPEAKER pro tempore. The Allen Dingell Kilpatrick Andrews Dixon Kind (WI) The SPEAKER pro tempore. The question is on the motion offered by Baird Doggett Kleczka Clerk will report the resolution. the gentleman from Arizona (Mr. Baldacci Dooley Klink The Clerk read as follows: KOLBE) to lay on the table the appeal Baldwin Doyle Kucinich RESOLUTION CALLING ON THE PRESIDENT TO Barcia Edwards LaFalce of the ruling of the Chair. ABSTAIN FROM RENEGOTIATING INTER- Barrett (WI) Engel Lampson The question was taken; and the Becerra Eshoo Lantos NATIONAL AGREEMENTS GOVERNING ANTI- Speaker pro tempore announced that Bentsen Etheridge Lee DUMPING AND COUNTERVAILING MEASURES the ayes appeared to have it. Berkley Evans Levin Whereas under Art. I, Section 8 of the Con- Berman Farr Lewis (GA) stitution, the Congress has power and re- RECORDED VOTE Berry Fattah Lipinski sponsibility with regard to foreign commerce Mr. WISE. Mr. Speaker, I demand a Bishop Filner Lowey and the conduct of international trade nego- recorded vote. Blagojevich Forbes Lucas (KY) Blumenauer Ford Luther tiations; A recorded vote was ordered. Bonior Frank (MA) Maloney (NY) Whereas the House of Representatives is The vote was taken by electronic de- Borski Frost Markey deeply concerned that, in connection with vice, and there were—ayes 216, noes 201, Boswell Gejdenson Martinez the World Trade Organization, (‘‘WTO’’) Min- Boucher Gephardt Mascara not voting 16, as follows: isterial meeting to be held in Seattle, Wash- Boyd Gonzalez Matsui ington, and the multilateral trade negotia- [Roll No. 567] Brady (PA) Goode McCarthy (MO) tions expected to follow, a few countries are Brown (FL) Gordon McCarthy (NY) AYES—216 Brown (OH) Green (TX) McDermott seeking to circumvent the agreed list of ne- Aderholt Brady (TX) Crane Capps Gutierrez McGovern gotiation topics and reopen debate over the Archer Bryant Cubin Capuano Hall (OH) McIntyre WTO’s antidumping and antisubsidy rules; Armey Burr Cunningham Cardin Hastings (FL) McKinney Whereas the built-in agenda for future Bachus Burton Davis (VA) Carson Hill (IN) McNulty WTO negotiations, which was set out in the Baker Buyer Deal Clay Hilliard Meehan Uruguay Round package ratified by Congress Ballenger Callahan DeLay Clayton Hinchey Meeks (NY) in 1994, includes agriculture trade, services Barr Calvert DeMint Clement Hinojosa Menendez trade, and intellectual property protection Barrett (NE) Camp Diaz-Balart Clyburn Hoeffel Millender- Bartlett Campbell Dickey Condit Holden McDonald but does not include antidumping or Barton Canady Doolittle Costello Holt Miller, George antisubsidy rules; Bass Cannon Dreier Coyne Hooley Minge Whereas the Congress has not approved Bateman Castle Duncan Cramer Hoyer Mink new negotiations or antidumping or Biggert Chabot Dunn Crowley Inslee Moakley antisubsidy rules and has clearly, but so far Bilbray Chambliss Ehlers Cummings Jackson (IL) Mollohan informally, signaled its opposition to such Bilirakis Coble Ehrlich Danner Jackson-Lee Moore negotiations; Bliley Coburn Emerson Davis (FL) (TX) Murtha Whereas strong antidumping and Blunt Collins English Davis (IL) Jefferson Nadler Boehlert Combest Everett DeFazio John Napolitano antisubsidy rules are a cornerstone of the Boehner Cook Ewing DeGette Johnson, E. B. Neal liberal trade policy of the United States and Bonilla Cooksey Fletcher Delahunt Jones (OH) Oberstar are essential to the health of the manufac- Bono Cox Foley DeLauro Kaptur Obey turing and farm sectors in the United States;

VerDate 29-OCT-99 06:01 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00028 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.071 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11511 Whereas it has long been and remains the ness arising under the Constitution, There are 228 Members of this institu- policy of the United States to support its mandatory in nature, have been held to tion that want to be allowed to be antidumping and antisubsidy laws and to de- have a privilege which superseded the given voice and this resolution brought fend those laws in international negotia- rules establishing the order of business. to the floor. I rise in strong support of tions; Whereas an important part of Congress’ This is a question of the House’s con- the resolution. participation in the formulation of trade pol- stitutional authority and is therefore The SPEAKER pro tempore. The icy is the enactment of official negotiating privileged in nature. The WTO anti- Chair recognizes the gentleman from objectives against which completed agree- dumping and antisubsidy rules con- Pennsylvania (Mr. DOYLE). ments can be measured when presented for cluded in the Uruguay Round have Mr. DOYLE. Mr. Speaker, I also have ratification; scarcely been tested since they entered a privileged resolution which I will not Whereas the current absence of official ne- into effect and certainly have not offer and will not ask for a vote on, but gotiating objectives on the statute books I do want to speak in support of the must not be allowed to undermine the Con- proved effective. Opening these rules to renegotiation could only lead to weak- resolution. gress’ constitutional role in charting the di- Mr. Speaker, denying a vote on this rection of United States trade policy. ening them which in turn leads to even Whereas the WTO antidumping and greater abuse of the world’s open mar- resolution denies the will of the major- antisubsidy rules concluded in the Uruguay kets, particularly that of the United ity of this House. A majority of Mem- Round have scarcely been tested since they States. bers on both side of the aisle, 228, are entered into effect and certainly have not There is a precedent, Mr. Speaker, cosponsors of this legislation. This res- proved defective; for bringing H. Res. 298 out of com- olution is intended to respond to a ne- Whereas opening these rules to renegoti- mittee and onto the House floor imme- gotiating ploy by Japan and a few ation could only lead to weakening them, other countries. These countries are which would in turn lead to even greater diately. For instance, H .Con. Res. 190 abuse of the world’s open markets, particu- was brought to the floor on October 26 trying to jump-start negotiations on larly that of the United States; under suspension of the rules because the antidumping and countervailing Whereas conversely, avoiding another divi- it concerned the upcoming Seattle duty laws mostly as a negotiating tac- sive fight over these rules is the best way to Round. This measure had only 13 co- tic. promote progress on the other, far more im- sponsors, while H. Res. 298 has 228 co- b 1445 portant, issues facing WTO members; and sponsors. The majority of the House Whereas it is therefore essential that re- Japan would like the world to forget should be heard. negotiations on these antidumping and about their closed telecommuni- The SPEAKER pro tempore. The antisubsidy matters not be reopened under cations, financial services and agricul- Chair recognizes the gentleman from the auspicies of the WTO or otherwise: Now, tural markets by raising false issues Ohio (Mr. TRAFICANT). therefore, be it about unfair trade remedies. Failing to Resolved, That the House of Representa- Mr. TRAFICANT. Mr. Speaker, I, pass this resolution supports the trade tives calls upon the President— too, have a privileged motion. I will (1) not to participate in any international not be offering mine nor asking for a objectives of Japan and not the trade negotiation in which antidumping or vote. But I want to take 30 seconds objectives of the United States. Mr. Speaker, I am in strong support antisubsidy rules are part of the negotiating with the Congress. The Congress is al- of this privileged resolution, and ask agenda; lowing trade practices to endanger (2) to refrain from submitting for congres- that we be allowed to have a vote on it. sional approval agreements that require America. Illegal trade cannot be toler- The SPEAKER pro tempore (Mr. ated, and the purpose of these exercises changes to the current antidumping and HANSEN). Does the gentleman from is to make sure the administration and countervailing duty laws and enforcement Pennsylvania (Mr. KLINK) wish to be policies of the United States; and Congress looks at those. heard on this issue? (3) to enforce the antidumping and coun- The SPEAKER pro tempore. The Mr. KLINK. Yes, Mr. Speaker, I do. tervailing duty laws vigorously in all pend- Chair recognizes the gentlewoman from ing and future cases. The SPEAKER pro tempore. The gen- Ohio (Ms. KAPTUR). tleman is recognized. The SPEAKER pro tempore (Mr. Ms. KAPTUR. Mr. Speaker, I would Mr. KLINK. Mr. Speaker, I also have HANSEN). The Chair will entertain a like to rise in support of the resolution a privileged resolution, which I will not brief argument as to whether the reso- and to say that I would merely beg the insist on calling up, instead speaking lution constitutes a question of privi- leadership to allow this vote to occur, on behalf of this resolution instead. lege. Let me caution the Members, de- because over 228 of our Members have Mr. Speaker, I would recommend to bate should be limited to the question asked for it. I think to bottle this up the Members the rules of the House of of order, and may not go to the merits and not allow a vote is truly not in the Representatives, which says the privi- of the proposition being considered. best spirit of this House when in fact leges of the House as distinguished The Chair recognizes the gentleman the Constitution provides that trade- from that of the individual Member in- from Ohio (Mr. KUCINICH). making authority rests in the House, clude questions relating to its con- Mr. KUCINICH. Mr. Speaker, this in the Congress, and all revenue meas- stitutional prerogatives in respect to resolution has privilege because only ures begin here in the House. With revenue legislation and appropriations, the House has the authority to alter what is going to happen at the end of and it goes on to other sorts of things. existing revenue provisions. Allowing the month in Seattle and the beginning Furthermore, in Section 664 of rule the administration to negotiate anti- of December, we want to send a strong IX, entitled ‘‘General Principles,’’ as to dumping and countervailing duty laws message to our trade negotiators, we the precedent of question of privilege, would further diminish the loss of the do not want them opening up the anti- it states ‘‘as the business of the House constitutional power the House has dumping and countervailing duty pro- began to increase, it was found nec- suffered over time. Under article 1, sec- visions of our trade laws. essary to give certain important mat- tion 7 of the Constitution, the House of No industry in this country has suf- ters a precedent by rule. Such matters Representatives has the authority to fered more than the steel industry and were called privileged questions.’’ originate revenue provisions, not the been forced to restructure. It has the Section 664 goes on saying, ‘‘certain Senate, the administration or the U.S. most modern production in the world. matters of business arising under the trade representative. By not giving the Yet we continue to lose thousands and constitutional mandatory in nature administration the clear message that thousands of jobs, even over this last have been held to have privilege, which Congress has antidumping and counter- year. It is absolutely essential that our has superseded the rules established in vailing duty laws, that those laws are negotiators hear this, and it is not the the regular order of business.’’ not to be placed on the table for nego- executive branch’s responsibility, it is I would say, Mr. Speaker, if you read tiations, we are essentially allowing our responsibility to enforce the laws the Constitution, under article I, sec- the administration to act on authority that we pass. And so we ask and beg of tion 7, all bills for raising revenues it does not have. the leadership of this institution, shall originate in the House of Rep- Furthermore, section 702 of House please allow us to bring up this resolu- resentatives, but the Senate may pro- rule IX entitled General Principles tion which allows us to instruct our ne- pose or concur with amendments as on concludes that certain matters of busi- gotiators as the Constitution intended. other bills.

VerDate 29-OCT-99 06:01 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00029 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.028 pfrm02 PsN: H04PT1 H11512 CONGRESSIONAL RECORD — HOUSE November 4, 1999 Clearly what we are talking about If not, the Chair is prepared to rule. Portman Shaw Thornberry Pryce (OH) Shays Thune with this trade and the countervailing Because the arguments raised here Quinn Sherwood Tiahrt duties and the antidumping is that were addressed in the Chair’s ruling of Ramstad Shimkus Toomey there are tariffs that are levied. That is October 10, 1998, for the reasons stated Regula Shuster Upton the raising of revenue. That is the in the Chair’s previous rulings, the res- Reynolds Simpson Vitter Riley Skeen Walden privilege of the House of Representa- olution offered by the gentleman from Rogan Smith (MI) Walsh tives, not of the Senate, not of the ad- Ohio (Mr. KUCINICH) does not constitute Rogers Smith (NJ) Wamp ministration, not of the trade ambas- a question of the privileges of the Rohrabacher Smith (TX) Watkins sador; but it is the privilege of this Ros-Lehtinen Souder Watts (OK) House under rule IX and may not be Roukema Spence Weldon (FL) House of Representatives. considered at this time. Royce Stearns Weldon (PA) When these dump products are levied, Mr. KUCINICH. Mr. Speaker, I appeal Ryan (WI) Stump Weller a tariff is put on them, those tariffs are the ruling of the Chair, and ask to be Ryun (KS) Sununu Whitfield revenue raisers, they are paid directly Salmon Sweeney Wicker heard on the appeal. Sanford Talent Wilson to the U.S. Treasury; and by us allow- The SPEAKER pro tempore. The Saxton Tancredo Wolf ing negotiations to be weakened and question is, Shall the decision of the Schaffer Tauzin Young (AK) Sensenbrenner Taylor (NC) Young (FL) our trade laws weakened to let in more Chair stand as the judgment of the dump product, the House would be Sessions Terry House? Shadegg Thomas turning over the power to the execu- MOTION TO TABLE OFFERED BY MR. KOLBE tive branch given exclusively to us NOES—204 Mr. KOLBE. Mr. Speaker, I move to under the Constitution. Abercrombie Green (TX) Neal Now, this resolution has privilege be- lay the appeal on the table. Ackerman Gutierrez Oberstar cause only the House has the authority The SPEAKER pro tempore. The Allen Hall (OH) Obey to alter existing revenue provisions. question is on the motion of the gen- Andrews Hastings (FL) Olver Baird Hill (IN) Ortiz Allowing the administration to nego- tleman from Arizona (Mr. KOLBE) to Baldacci Hilliard Owens tiate these issues is the House giving lay on the table the appeal of the rul- Baldwin Hinchey Pallone that constitutional duty up. ing of the Chair. Barcia Hinojosa Pascrell In addition, I would recommend as Barrett (WI) Hoeffel Pastor The question was taken; and the Becerra Holden Pelosi great reading to the Members article I, Speaker pro tempore announced that Bentsen Holt Peterson (MN) section 8 of the Constitution. ‘‘The the ayes appeared to have it. Berkley Hooley Phelps Berman Hoyer Pickett Congress shall have power to lay and RECORDED VOTE collect taxes, duties, imposts and ex- Berry Inslee Pomeroy Mr. KUCINICH. Mr. Speaker, I de- Bishop Jackson (IL) Price (NC) cises to pay the debts and provide for mand a recorded vote. Blagojevich Jackson-Lee Rahall the common defense and general wel- Blumenauer (TX) Rangel fare of the United States; but all du- A recorded vote was ordered. Bonior Jefferson Reyes ties, imposes and excises shall be uni- The vote was taken by electronic de- Borski John Rivers vice, and there were—ayes 214, noes 204, Boswell Johnson, E. B. Rodriguez form throughout the Nation. The Con- Boyd Jones (OH) Roemer gress also shall regulate commerce not voting 15, as follows: Brady (PA) Kaptur Rothman with foreign nations and among the [Roll No. 568] Brown (FL) Kennedy Roybal-Allard Brown (OH) Kildee Rush several states and with the Indian AYES—214 Capps Kilpatrick Sanchez tribes.’’ Aderholt Dickey Jenkins Capuano Kind (WI) Sanders What we are talking about here is Archer Doolittle Johnson (CT) Cardin Kleczka Sandlin not only the revenue that is taken, but Armey Dreier Johnson, Sam Carson Klink Sawyer Bachus Duncan Jones (NC) Clay Kucinich Schakowsky it is trade policy. An important part of Baker Dunn Kasich Clayton LaFalce Scott Congress’ participation in the formula- Ballenger Ehlers Kelly Clement Lampson Serrano tion of trade policy is the enactment of Barr Ehrlich King (NY) Clyburn Lantos Sherman official negotiating objectives against Bartlett Emerson Kingston Condit Lee Shows Barton English Knollenberg Conyers Levin Sisisky which completed agreements can then Bass Everett Kolbe Costello Lewis (GA) Skelton be measured for their ratification. Bateman Ewing Kuykendall Coyne Lipinski Slaughter Congress exercised that power back Biggert Fletcher LaHood Cramer Lofgren Smith (WA) in 1994 when we ratified the agenda for Bilbray Foley Largent Crowley Lowey Snyder Bilirakis Fossella Latham Cummings Lucas (KY) Spratt the Seattle WTO Ministerial, which in- Bliley Fowler LaTourette Danner Luther Stabenow cluded agricultural trade; it included Blunt Franks (NJ) Lazio Davis (FL) Maloney (CT) Stark services trade and intellectual prop- Boehlert Frelinghuysen Leach Davis (IL) Maloney (NY) Stenholm erty protection. The agenda, specifi- Boehner Gallegly Lewis (CA) DeFazio Markey Strickland Bonilla Ganske Lewis (KY) DeGette Martinez Stupak cally enacted into Federal law as Pub- Bono Gekas Linder Delahunt Mascara Tanner lic Law 103–465, did not include anti- Brady (TX) Gibbons LoBiondo DeLauro Matsui Tauscher dumping or antisubsidy rules. Bryant Gilchrest Lucas (OK) Deutsch McCarthy (MO) Taylor (MS) Congress is concerned that a few Burr Gillmor Manzullo Dicks McCarthy (NY) Thompson (CA) Burton Gilman McCollum Dingell McDermott Thompson (MS) countries are seeking to circumvent Buyer Goodlatte McCrery Doggett McGovern Thurman the agreed list of negotiated topics and Callahan Goodling McHugh Dooley McIntyre Tierney reopen debate over the WTO’s anti- Calvert Graham McInnis Doyle McKinney Towns dumping and antisubsidy rules. The Camp Granger McIntosh Edwards McNulty Traficant Campbell Green (WI) McKeon Engel Meehan Turner current absence of official negotiating Canady Greenwood Mica Eshoo Meek (FL) Udall (NM) objectives on the statute books must Cannon Gutknecht Miller (FL) Etheridge Meeks (NY) Velazquez not be allowed to undermine what is Castle Hall (TX) Miller, Gary Evans Menendez Vento Chabot Hansen Moran (KS) Farr Millender- Visclosky the House of Representatives’ constitu- Chambliss Hastings (WA) Morella Fattah McDonald Waters tional district. We have a constitu- Chenoweth-Hage Hayes Myrick Filner Miller, George Watt (NC) tional role, and it is, under the rules of Coble Hayworth Nethercutt Forbes Minge Waxman this House, our extraordinary power to Coburn Hefley Ney Ford Mink Weiner Collins Herger Northup Frank (MA) Moakley Wexler step in and make sure that is not taken Combest Hill (MT) Nussle Frost Mollohan Weygand away from us by the administration, Cook Hilleary Ose Gejdenson Moore Wise by the trade representatives, or by Cooksey Hobson Oxley Gephardt Moran (VA) Woolsey anyone else. Cox Hoekstra Packard Gonzalez Murtha Wu Crane Horn Paul Goode Nadler Wynn Mr. Speaker, if that is not a point of Cubin Hostettler Pease Gordon Napolitano privilege of this House, then none ex- Cunningham Houghton Peterson (PA) ists. Davis (VA) Hulshof Petri NOT VOTING—15 Deal Hutchinson Pickering The SPEAKER pro tempore. Does Barrett (NE) Dixon Kanjorski DeLay Hyde Pitts Bereuter Goss Larson anyone else wish to be heard on this DeMint Isakson Pombo Boucher Hunter Metcalf issue? Diaz-Balart Istook Porter

VerDate 29-OCT-99 06:01 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00030 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.076 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11513 Norwood Radanovich Scarborough COMMUNICATION FROM THE The Clerk read the resolution, as fol- Payne Sabo Udall (CO) CLERK OF THE HOUSE lows: b 1510 The SPEAKER pro tempore laid be- H. RES. 355 So the motion to table was agreed to. fore the House the following commu- Resolved, That upon adoption of this reso- The result of the vote was announced nication from the Clerk of the House of lution it shall be in order to consider the as above recorded. Representatives: conference report to accompany the bill (S. 900) to enhance competition in the financial HOUSE OF REPRESENTATIVES, A motion to reconsider was laid on services industry by providing a prudential Washington, DC, November 4, 1999. the table. framework for the affiliation of banks, secu- Hon. J. DENNIS HASTERT, rities firms, insurance companies, and other f The Speaker, House of Representatives, financial service providers, and for other Washington, DC. purposes. All points of order against the con- PERSONAL EXPLANATION DEAR MR. SPEAKER: Pursuant to the per- ference report and against its consideration mission granted to Clause 2(h) of Rule II of Ms. KILPATRICK. Mr. Speaker, due are waived. The conference report shall be the Rules of the U.S. House of Representa- to official business in my district yes- considered as read. terday, I missed four votes. tives, the Clerk received the following message from the Secretary of the Senate on No- The SPEAKER pro tempore. The gen- Had I been available and here yester- vember 4, 1999 at 5:50 p.m. tleman from Texas (Mr. SESSIONS) is day, I would have voted aye on roll call That the Senate passed without amend- recognized for 1 hour. 559, no on roll call 560, no on roll call ment H.J. Res. 75. 561, and no on roll call 562. With best wishes, I am Sincerely, b 1945 f JEFF TRANDAHL, Mr. SESSIONS. Madam Speaker, for LAYING ON TABLE HOUSE RESO- Clerk of the House. the purpose of debate only, I yield the LUTION 358 AND HOUSE RESOLU- f customary 30 minutes to the gen- TION 360 ANNOUNCEMENT BY COMMITTEE tleman from Massachusetts (Mr. The SPEAKER pro tempore (Mr. ON RULES REGARDING AMEND- MOAKLEY), the ranking member of the HANSEN). Without objection, House MENT PROCESS FOR H.R. 3073, Committee on Rules, pending which I Resolutions 358 and 360 are laid upon FATHERS COUNT ACT OF 1999 yield myself such time as I may consume. During consideration of this res- the table. Mr. SESSIONS. Madam Speaker, a olution, all time yielded is for the pur- There was no objection. dear colleague letter will be delivered pose of debate only. to each Member’s office today noti- f Madam Speaker, the legislation be- fying them of the Committee on Rules fore us is the rule providing for consid- RECESS plan to meet the week of November 8 eration of the conference report S. 900, to grant a rule which may limit the The SPEAKER pro tempore. Pursu- the Financial Services Act of 1999. S. amendment process on H.R. 3073, the ant to clause 12 of rule I, the Chair de- 900 is better known to Members of the ‘‘Fathers Count Act of 1999.’’ clares the House in recess subject to House as H.R. 10, which was passed on Any Member who wishes to offer an the call of the Chair. July 1 of this year by a margin of 343 to amendment should submit 55 copies Accordingly (at 3 o’clock and 11 min- 86. and a brief explanation of the amend- utes p.m.), the House stood in recess Should the House pass this rule, it subject to the call of the Chair. ment by 3 p.m., on Monday, November 8, to the Committee on Rules, in room would hold its place in history as being f H–312 in the Capitol. Amendments one of the final steps in the long and hard-fought effort to repeal Depression b 1940 should be drafted to an amendment in the nature of a substitute offered by era rules that govern our Nation’s AFTER RECESS the gentlewoman from Connecticut modern financial services industry. (Mrs. JOHNSON) which will be printed in The rule before us waives all points The recess having expired, the House of order against the conference report was called to order by the Speaker pro today’s CONGRESSIONAL RECORD and numbered 1. The text of the amend- and its consideration. The rule also tempore (Mrs. EMERSON) at 7 o’clock provides that the conference report and 40 minutes p.m. ment will also be available on the website of the Committee on Education shall be considered as read. f and the Workforce, as well as the Madam Speaker, this rule deserves strong bipartisan support. The House MESSAGE FROM THE SENATE website of the Committee on Ways and Means. passed the underlying legislation with A message from the Senate by Mr. This amendment in the nature of a broad support from both parties. The Lundregan, one of its clerks, an- substitute combines the Welfare to Financial Services Act was only made nounced that the Senate agrees to the Work provisions reported by the Edu- better in the conference to reconcile report of the committee of conference cation and Workforce Committee with differences between the Senate and the on the disagreeing votes of the two H.R. 3073. It is the intention of the House versions. Houses on the amendments of the Committee on Rules to make in order Madam Speaker, 65 years ago, on the House to the bill (S. 900) ‘‘An Act to en- the amendment by the gentlewoman heels of the Great Depression, the hance competition in the financial from Connecticut (Mrs. JOHNSON) as Glass-Steagall Act was passed prohib- services industry by providing a pru- the base text for the purpose of further iting affiliation between commercial dential framework for the affiliation of amendment. banking, insurance and securities. banks, securities firms, insurance com- Members should use the Office of However, merely 2 years after the pas- panies, and other financial service pro- Legislative Counsel to ensure that sage, the first attempt at repealing viders, and for other purposes.’’. their amendments are properly drafted Glass-Steagall was instituted by Sen- The message also announced that the and should check with the Office of the ator Carter Glass, one of the original Senate has passed a bill of the fol- Parliamentarian to be certain that sponsors of the legislation. He recog- lowing title in which concurrence of their amendments comply with the nized then that changes in the world the House is requested: rules of the House. and in the marketplace called for more S. 976. An act to amend title V of the Pub- f effective legislation. lic Health Service Act to focus the authority Two generations later the need to of the Substance Abuse and Mental Health CONFERENCE REPORT ON S. 900, modernize our financial laws is more Services Administration on community- GRAMM-LEACH-BLILEY ACT apparent than ever. based services for children and adolescents, to enhance flexibility and accountability, to Mr. SESSIONS. Madam Speaker, by There is no doubt about it. Reexam- establish programs for youth treatment, and direction of the Committee on Rules, I ination of regulations in the financial to respond to crises, especially those related call up House Resolution 355 and ask services industry in America is a com- to children and violence. for its immediate consideration. plicated matter. Congress recognizes

VerDate 29-OCT-99 06:01 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00031 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.029 pfrm02 PsN: H04PT1 H11514 CONGRESSIONAL RECORD — HOUSE November 4, 1999 that busy American families have lit- Mr. MOAKLEY. Madam Speaker, I really is an exciting time for a lot of tle time to consider complicated bank- yield myself such time as I may con- us. ing laws, but Congress is working to resume. I am looking at the distinguished peal Glass-Steagall with exactly these Madam Speaker, I thank my dear ranking minority member of the Com- hard-working Americans in mind. friend from Texas for yielding me the mittee on Banking and Financial Serv- This legislation is designed to give customary one-half hour. ices, and I think back to 1987 and a all Americans the benefit of one-stop Madam Speaker, after 66 years, Con- piece of legislation that was known as shopping for all of their financial serv- gress has finally updated our Depres- the Financial Services Holding Com- ices needs. New companies will offer a sion era banking laws to modernize the pany Act. I know that the gentleman broad array of financial services prod- way American banks, securities firms from New York (Mr. LAFALCE) remem- ucts under one roof, providing conven- and insurance companies do business. bers that, and I think of names of peo- ience and encouraging competition. For the first time since 1933, Congress ple who no longer serve here, people More products will be offered to more is replacing the Glass-Steagall Act, from the other side of the aisle like, people at a lower price. which was passed to separate banking Doug Bernard, the gentleman from Massachusetts (Mr. MOAKLEY) remem- As a result of this legislation, Ameri- from commerce during the Great De- bers him, and Steve Neal; and people cans will have more time to spend with pression. who spent time with us on this side of their families and more money to This bill will modernize and stream- the aisle who are no longer here, like spend on their children or to save safe- line our financial industry, and it will Jack Hiler from Indiana, and Steve ly for their future. In fact, as it was allow American financial companies to work more efficiently. Madam Speak- Bartlett from Texas, and Governor pointed out yesterday by Treasury Sec- Tom Ridge from Pennsylvania. retary Summers, Americans spend er, in doing so, it will give consumers greater choice at lower cost; and in the In the latter part of the last decade more than $350 billion per year on fees we spent a great deal of time down- and commissions for brokerage, insur- long run, people will find it easier to access capital, and American financial stairs having dinners, talking about ance, and banking services. If increased the need for us to move towards finan- competition yielded savings to con- firms will be able to stay competitive in our increasingly global economy. cial modernization; and we finally have sumers of just 5 percent, consumers gotten to the point where we are doing would save over $18 billion a year. Madam Speaker, the bill’s benefits are not just limited to large financial that. In fact, one of my staff members Americans deserve the most efficient quipped to me when I said, ‘‘Well, we borrowing and investment choices. institutions. It will benefit small banks by giving them access to the Federal are finally doing it,’’ and he said, Americans deserve the freedom to pur- ‘‘Well, you know, this is a really good sue financial options without being Home Loan Bank window. That way they will have access to more capital, bill for 1987,’’ which is when we first in- charged three different commissions by troduced it. which they can in turn lend to smaller three different agents. That is why I described this bill, I communities and smaller businesses. This legislation is designed to in- think, very appropriately as a first Madam Speaker, it is a good bill, but crease market forces in an already very step, because it is a first step that is a there are a couple of areas that could competitive marketplace to drive down very bold one. It takes us beyond the be improved and improved greatly. costs and broaden the number of poten- 1933 Glass-Steagall Act. In fact, we de- First, this bill does not go far enough tial customers for securities and other scribe this as moving us from what I to protect people’s privacy. Secondly, products for savings and investment. really believe was the curse of Glass- this bill does not go far enough in Steagall, and I think that it also moves Madam Speaker, this legislation also strengthening the Community Rein- contains the strongest pro-consumer us slightly beyond by amending the vestment Act. If we are able to amend 1956 Bank Holding Company Act. But it privacy language ever considered by this bill at this point, Madam Speaker, the Congress. Many of my constituents is designed with really one very simple I would certainly support an amend- basic thing in mind: it is to provide have contacted me with their concerns ment to expand the Community Rein- regarding the dissemination of their consumers with a wider range of vestment Act, as well as the amend- choices, while maintaining safety and private financial information. I am ment of the gentleman from Massachu- pleased that this legislation provides soundness at the lowest possible price. setts (Mr. MARKEY), to help keep peo- That is clearly the wave of the future. increased privacy protections for all ple’s private lives private. Unfortu- Americans and imposes civil penalties I want to commend the gentleman nately, amendments are not an option from Iowa (Mr. LEACH) and the gen- on those who would violate our finan- at this point, and we must decide cial privacy. tleman from New York (Mr. LAFALCE), whether or not this bill is an improve- whom I have mentioned, the gentleman Madam Speaker, Congress must not ment over our current situation. permit America’s financial services in- from Virginia (Mr. BLILEY), and, of Madam Speaker, I believe this bill is course, from the Committee on Rules, dustry to enter the new millennium op- a great improvement. It is a good bill. the gentleman from Texas (Mr. FROST), erating under laws that were out of It is long overdue. It will spawn new fi- who was just here, who worked with date shortly after they were passed in nancial services, promote competition the gentlewoman from Ohio (Ms. the 1930s. This legislation before us and lower costs. Overall, I believe it PRYCE) on this very important privacy represents a carefully balanced ap- will be good for the country and we issue. proach to reform. After years, in fact, should support it. We know that in this legislation we even decades of work, Congress has I urge my colleagues to support this have the toughest privacy component only now successfully drafted a bill rule and support the bill. that we have ever seen in any legisla- that is supported by most of the af- Madam Speaker, I reserve the bal- tion considered here. I think it is im- fected industries, banking, insurance ance of my time. portant to underscore that once again, and securities, as well as a broad bipar- Mr. SESSIONS. Madam Speaker, I because there are a lot of people who tisan coalition of Members of Congress. yield such time as he may consume to have been critical of it, and I believe It was passed by the Senate just hours the gentleman from California (Mr. this clearly is the toughest privacy ago with 90 votes. DREIER), the chairman of the Com- language that we have ever had. We Madam Speaker, the rule before us is mittee on Rules. are, by way of doing this, providing the the standard rule under which con- (Mr. DREIER asked and was given consumer with a wider range of ference reports are considered. I urge permission to revise and extend his re- choices. my colleagues to support this rule, and marks.) This is a measure which could not thereby enable the House to take the Mr. DREIER. Madam Speaker, I have gotten here were it not for an historic step of modernizing the 66- thank my friend for yielding me time. awful lot of people. I look back at the year-old laws that govern the financial Madam Speaker, it is almost per- gentleman from Louisiana (Mr. BAKER), services industry. verse to think one could get excited with whom I worked closely on this Madam Speaker, I reserve the bal- about the prospect of financial mod- issue for years, and I think that this is ance of my time. ernization, but I will tell you that this time for a great, great celebration.

VerDate 29-OCT-99 06:01 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00032 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.086 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11515 Now, where is it that we go from way. In fact, CRA compliance is highly of privacy. We will continue to probe here? Last night in the Committee on relevant to banks in the new regu- this complex subject next year. Rules we were talking about this, and I latory scheme that will be created by Aside from some of the other con- believe that we need to look at the this landmark bill. I know that I for sumer protections, the ATM fee disclo- Internet. We need to look at the fact one will monitor the activities of sure, for which I would like to take that the wave of the future there is in banks to ensure that they live up to credit before my colleagues here to- electronic banking. I think that, frank- and perhaps go beyond the require- night, consumers have a right to know ly, on the Internet, we are going to see ments of CRA in this new world of fi- and a right to cancel that transaction, a strengthening of privacy, because nancial services. that is here in this bill. that is a priority that is regularly be- I want to go on record as strongly en- Madam Speaker, I want to point out fore us for people who spend time on couraging financial institutions to the most essential part of this bill, the Internet. So I am anxious and I was make sure that the benefits of this law which is the fact that the Treasury De- pleased when the gentleman from Min- will be felt in every neighborhood in partment and the Federal Reserve have nesota (Mr. VENTO) told us in the Com- our country. reached the core issue in the bill with mittee on Rules that the Committee on Madam Speaker, I urge Members to the consensus portion of it that will Banking and Financial Services is support this bill. It represents a great really protect the safety and soundness moving ahead with hearings that will step forward into the new century. It is issues that we love to talk about. It is take us even further. worthy of our support. essential to protect against conflicts of So I consider this a first step. It is a Mr. SESSIONS. Madam Speaker, I interest and corruption of the regu- first step which is a very, very impor- yield 3 minutes to the gentlewoman latory process. tant step towards getting us to where from Ridgewood, New Jersey (Mrs. It took them many years, or I am many of us have been trying to move ROUKEMA), chairman of the Sub- sorry, many months to come to this, for virtually a decade and a half. committee on Financial Services and but with their great integrity and their Madam Speaker, I am very pleased to Consumer Credit. great knowledge of financial institu- support the rule, and I believe that the Mrs. ROUKEMA. Madam Speaker, I tions and understanding about the sav- conference report should get an over- thank the gentleman for yielding time. ings and loan debacle that we have al- whelming number of votes. We had 343 Madam Speaker, I really do rise in ready been through and the Great De- votes on the bill itself, and it is my strong support of this bill. This is truly pression of the thirties, they put their hope that we will even exceed that on historic, landmark legislation. In some heads together and they formed the this conference report. respects, this is really long overdue. In core of this bill that will protect safety I thank my friend for yielding, and I fact, the marketplace, the regulators, and soundness, and give us the advan- thank him for his leadership in car- and the courts have been transforming tages of financial modernization. rying this on behalf of the Committee on an ad hoc basis financial institu- I have a lot more I could say. I do on Rules. tions for a number of years. Our obliga- want to congratulate everyone who has Mr. MOAKLEY. Madam Speaker, I tion here tonight is to perform our worked on this bill. We must support it yield 2 minutes to the gentleman from statutory responsibility under the Con- with a strong, overwhelming vote. Texas (Mr. FROST). stitution to construct this regulated Madam Speaker, I rise in strong support of Mr. FROST. Madam Speaker, I rise system to serve the consumers, the the Conference Report on S. 900, the Gramm- in support of the conference report on businesses, and the marketplace. Leach-Bliley Financial Modernization Act. S. 900, the Financial Services Mod- Again, it is truly historic. Tech- This is truly historic, landmark legislation. ernization Act. Over the years, this nology and market forces have broken And in some respects is long overdue. In fact, legislation has slowly and sometimes down the barriers between insurance, the marketplace, the Regulators and the painfully inched its way toward today. securities and banking. This law is a Courts have been transforming financial insti- In the process, the concept of financial very good piece of legislation, and it tutions. Our obligation here today is to perform services modernization has shifted and will permit us in the U.S. to maintain our statutory responsibility under the Constitu- changed. But in the end, the legislation our preeminence in the field of finan- tion to construct this regulated system to serve before us today is the product of a de- cial services on a global basis, both the consumers, businesses and the market- liberate process that will serve our now and in the future, in that new place. economy and consumers well. millenium that we love to talk about. As others have discussed, this bill repeals I think we can all agree that S. 900 is This legislation is also historic be- the Glass-Steagall Act and the other Depres- not a perfect bill; but, Madam Speaker, cause of its privacy provisions. I am sion era banking and securities laws to permit legislation of such magnitude as this, very proud to have sponsored, along the affiliation of banks, securities firms and in- legislation which will usher in a new with the gentleman from Ohio (Mr. surance companies. As Chairwomen of the Fi- era of commerce in this century, could OXLEY) and the gentlewoman from nancial Institutions and Consumer Credit Sub- never hope to satisfy all parties. That Ohio (Ms. PRYCE) in the original committee, I have long been an advocate for being said, S. 900 represents historic amendment here in the House, but the passing financial modernization legislation. change, change I believe that will par- gentleman from Ohio (Mr. OXLEY) and I Technology and market forces have broken ticularly benefit the economy of this were able to get good privacy provi- down the barriers between insurance, securi- country, which will, in turn, benefit all sions that even go beyond what we ties and banking. This lawÐwhich is an ex- Americans. adopted in the House in this final prod- tremely good productÐwill permit the U.S. to uct. maintain its preeminence in the field of finan- b 2000 I think that we have got to recog- cial services. That is essential to maintaining Madam Speaker, I would like to take nize, although some people have ques- U.S. prominence in the global financial world a moment to reiterate my longstanding tioned the privacy provisions, we have both now and in the new Millennium. support for the Community Reinvest- to recognize that there are newer and This legislation is also historic because of its ment Act. There are some who believe stronger privacy protections in this privacy provisions. I am very proud to have that this bill does harm to CRA. I legislation than Americans have ever sponsoredÐalong with Mr. OXLEYÐthe pri- could not support S. 900 if I believed had. I know some of my colleagues will vacy provisions we find in this bill today. He that to be true. I have seen firsthand say it does not go far enough. Maybe I and I, along with Ms. PRYCE, offered the Pri- the value and benefits CRA has would agree with them. But it is more vacy Amendment which the House adopted by brought to low- and moderate-income than just a good start, it is a firm foun- 427±1 when H.R. 10 was passed back in July. neighborhoods in my own congres- dation upon which we can and will In Conference, Mr. OXLEY and I offered the sional district in Texas. I know that build either next year or in the next House text with some provisions which there is still much work to be done. Congress, in future Congresses. ``strengthened'' privacy. Other improvements Madam Speaker, S. 900 does not di- Indeed, my subcommittee, the Sub- were accepted by the Conference, including minish the efficacy of CRA. It does not committee on Financial Institutions Senator SARBANES' amendment which protects change the existing CRA obligations on and Consumer Credit, has already had stronger State privacy laws from preemption. insured depository institutions in any two essential hearings on this subject In other words, the Conference Report we are

VerDate 29-OCT-99 05:09 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00033 Fmt 7634 Sfmt 9920 E:\CR\FM\K04NO7.088 pfrm02 PsN: H04PT1 H11516 CONGRESSIONAL RECORD — HOUSE November 4, 1999 considering today has better, stronger privacy soundness issue. It is essential to protect Section 241Ðwhich passed the House by a provisions that what passed the House 427±1. against conflicts of interest and corruption of vote of 407±20Ðis extremely important and is Think about the new Privacy Protections in the regulatory process. We need to explicitly a ``good government'' provision. It requires the this Bill: protect against another savings and loan de- SEC to consult and coordinate with the Fed- 1. Financial Institutions for the first time are bacle or a financial collapse that brought on eral Banking agencies prior to taking any ac- required to have written privacy policies which the Great Depression of the 1930's. tion with respect to an insured depository insti- must be disclosed to their customers. The decision of the Conference was to tution's loan loss reserves. 2. Financial Institutions for the first time are adopt, and endorse, the operating subsidiary I am not going to go into detail regarding required to give customers the right to `òpt compromise reached by the Treasury Depart- the SEC's actions with respect to SunTrust out'' of sharing their information with 3rd par- ment and the Federal Reserve. This ``com- Bank and the FASB Viewpoints Article. Let me ties. promise'' places several significant restrictions just say that over a period of 9 months the 3. Stricter State privacy laws are not pre- on the financial subsidiaries of national banks. SEC created significant confusion in the bank- empted. For instance, financial subsidiaries may not ing industry, the accounting profession and the 4. Telemarketers are prohibited from receiv- engage in (1) insurance or annuity under- Federal Banking agencies on what the ac- ing deposit account numbers, credit card num- writing, (2) real estate investment or develop- counting rules are for bank loan loss reserves. bers and other information from financial insti- ment and (3) merchant banking, for at least 5 Their failure to adequately consult and coordi- tutions. years and then only if the Federal Reserve nate with the Federal banking agencies on this 5. It is now a ``crime'' for a person to ``pre- and Treasury jointly agree. Further, there is an issue is well known. text'' call a financial institution and get your overall or `àggregate'' investment cap which Under Section 241 we expect the SEC to personal financial information. limits the size of financial subsidiaries of na- establish an informal process with the Federal These are all new, stronger privacy protec- tional banks as well as other additional ``fire- Banking agencies for consultation and coordi- tions that Americans don't have under current walls'' and safety and soundness provisions. nation on individual loan loss cases. The SEC law. I support the FED/Treasury compromise. I has suggested that the consultation and co- I know some of my colleagues will say we believe we have struck the right balance on ordination requirement will slow the review didn't go far enough. Quite frankly, I agree. the operating subsidiary. During the Con- process and penalize banks and bank holding But this is more than just a good startÐit is a ference I proposed dropping merchant banking companies. It is not our intention that the con- strong ``foundation'' upon which we can, and and imposing an aggregate investment limit to sultation and coordination process should will, build next year and in future Congresses. address safety and soundness concerns. I am delay SEC processing of securities filings. My Subcommittee has already had two hear- happy that the FED/Treasury compromise in- Rather, the process which the SEC estab- ings on these issues and will continue to corporates my suggestions. lishes should be designed to expedite resolu- probe this complex subject next year. While I would have preferred a flat out pro- tion of SEC staff questions. The informal proc- I, for one, was disappointed that we did not hibition on merchant banking in the operating ess we envision should involve telephone con- ``fix'' the medical records privacy provisions subsidiary, the 5 year minimum waiting period ferences, the faxing of relevant information be- which were authored by Dr. GANSKE. Unfortu- with joint agreement between the Treasury tween staffs, as well as other methods of com- nately, the Administration, most medical and the Federal Reserve is acceptable. munication which could expedite as quickly as groups and many of my Democratic col- I am more concerned, however, about the possible the resolution of individual loan loss leagues weren't interested in ``fixing'' this im- aggregate investment limits. In my opinion the reserve cases. portant area. They demanded that we remove limits are too large. I proposed a $100 million the medical records privacy provisions and limit on equity investment in all operating sub- In closing, Madam Speaker, I want to make ``wait'' for the comprehensive medical records sidiaries controlled by a national bank. The it clear that I support Gramm-Leach-Bliley privacy legislation. This was a huge mistake, FED/Treasury compromise ``limits'' the aggre- strongly. It is a very good bill. It deserves our a missed opportunity to do something for all gate size of all operating subsidiaries con- support. I encourage you to vote for the Con- Americans. I don't want to hear anyone who trolled by a national bank to 45 percent of ag- ference Report. demanded the medical records provisions gregate assets of the parent bank or $550 bil- Mr. MOAKLEY. Madam Speaker, I come out try to complain now that medical lion, whichever is less. This may, in fact, be yield 1 minute to the gentleman from records privacy is not in S. 900. no limit at all. Ohio (Mr. KUCINICH). I want to say that I am pleased that Gramm- The aggregate investment limit is intended (Mr. KUCINICH asked and was given Leach-Bliley includes my ATM Fee Disclosure to make sure that the financial subsidiaries do permission to revise and extend his re- proposal. Under this bill ATM Fee surcharges not pose a safety and soundness risk to the marks.) are prohibited unless the customers are told parent bankÐwhich may not be the case Mr. KUCINICH. Madam Speaker, pur- what the fee is before being committed to here. As one who was in Congress during the suit of happiness is an inalienable right enter into the transaction. Consumers are enti- savings and loan crisis, I would encourage the which supercedes the banking industry, tled to know what fees, if any, are going to be OCC and Treasury to take a ``go slow'' ap- the securities industry, and the insur- charged for using a foreign ATM. This is both proach in the financial subsidiary area in terms ance industry. common sense disclosure and pro consumer. of both new activities and `àggregate'' size. In a democratic society, the right to The consumer has a right to know and a right Another issue which is central to this bill is privacy facilitates the pursuit of happi- to cancel the transaction. the unitary thrift holding company and whether ness. It is the right to be left alone by Madam Speaker, I would also like to ad- the mixing of banking and commerce is appro- powerful government, by powerful cor- dress briefly the issues central to sound legis- priate. Fortunately the Federal Reserve and porations. The growth of databases relation, namely, the split of regulatory jurisdic- Treasury Department were united on this quires government to be a vigilant tion over the holding companyÐand its affili- issue. Both supportedÐalong with consumer watchdog to protect the right to pri- atesÐand the national bank operating sub- groupsÐclosing the unitary thrift holding com- vacy. S. 900 puts the watchdog to sleep. sidy. pany ``loophole'' and prohibiting the transfer of If we look under title V, where it One of the most contentious issues during grandfather unitary thrift holding companies to says ‘‘Exceptions,’’ the Financial Modernization debate was the commercial entities because of concentration This subsection shall not prevent a finan- National Bank operating subsidiary. The of economic power as well as safety and cial institution from providing non-public TreasuryÐand AdministrationÐmade it clear soundness concerns. Those were my con- personal information to a non-affiliated that they would veto any bill which did not pro- cernsÐalong with making sure we have a third party to perform services for or func- vide the OCC and National Banks with new, consistent policy and level playing field be- tions on behalf of the financial institution, expanded financial powers. At the same time, tween bank and thrift holding companiesÐas including marketing of the financial institu- the Federal Reserve Board expressed strong well. The Gramm-Leach-Bliley bill closes the tion’s own products or services, or financial reservations about such new authority on both ``loophole'' and prohibits transfer of grand- products or services offered pursuant to joint safety and soundness and government sub- agreement between two or more financial in- fathered unitaries to commercial entities. It stitutions. sidy grounds. was the right thing to do. Many observers said this was merely a reg- And for the record, I must mention the loan So much for the right of privacy. ulatory ``turf'' battle between the Treasury De- loss provision. Madam Speaker, I include for the partment and the Federal Reserve. I strongly I would also like to briefly mention the loan RECORD a copy of an article by Robert and pointedly disagree. This is a safety and loss provision in this Bill which I authored. Scheer from the L.A. Times:

VerDate 29-OCT-99 05:34 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00034 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.038 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11517 YOUR PRIVACY COULD BEA THING OF THE consumers versus big business,’’ Shelby said. through the Community Reinvestment PAST He added, ‘‘This is an issue that won’t go Act. CRA standards are maintained (By Robert Scheer) away. We won’t let it go away. People are while giving some relief to small banks going to be raising hell about it more and Do you really want your insurance agent, more and more.’’ with excellent community lending bank loan advisor or stockbroker to have a It is a shame that Shelby’s is such a lonely records. list of the movies you’ve rented, the medical voice of alarm. But there is still time for tests you’ve taken, the gifts you purchased It is time for the financial services voters to demand to know where their legis- and the minute details of your credit history laws of our country to catch up with lators in Congress stand on this surrender of and net worth? That’s what can happen if the basic right to privacy. It also is not too the needs of the American people. This this Congress and president get their way late to pressure the White House to veto this legislation will benefit every American with landmark legislation permitting insur- bill if it does not contain the Shelby privacy seeking to improve his or her family’s ance companies, banks and stockbrokers to amendment. affiliate and thus merge their massive com- financial security by saving and invest- The leading presidential candidates in both puterized data bases. This will permit sur- ing more. parties—Democrats Al Gore and Bill Bradley veillance of your personal habits on a scale and Republican George W. Bush—all have ob- Let us move our Nation into the next unimaginable even by any secret police tained massive contributions from the finan- century. I urge passage of the rule and agency in human history. cial industry. This issue is the best litmus Your life will be an open book, to be the conference report. test of whether any of them can muster the plumbed and exploited for profit, thanks to gumption to bite the hand that feeds them. Madam Speaker, I rise in strong support of financial industry deregulation about to be If they can’t, when it comes to the most de- the conference report on S. 900, the Gramm, passed with massive congressional support cisive consumer issues, it doesn’t really mat- Leach, Bliley Financial Services Modernization and the blessing of President Clinton. Lobbyists for the financial oligarchs deter which one becomes president. Act of 1999. This is the long-awaited final step feated a crucial amendment to this legisla- Mr. SESSIONS. Madam Speaker, I in the decades-long effort to update our finan- tion proposed by Sen. Richard C. Shelby (R– yield 2 minutes to the gentleman from cial services laws. I urge my colleagues to Ala.) that would have required bankers, Delaware (Mr. CASTLE). seize the opportunity to pass this historic leg- stockbrokers and insurance agents to get (Mr. CASTLE asked and was given islation which will benefit individual Americans consumers’ permission before sharing what permission to revise and extend his re- and help keep our economy strong. should be personal information about you. Any congressional representative who marks.) As we have heard many times, Congress votes for this bill thus is denying you your Mr. CASTLE. Madam Speaker, I has been trying to update the Glass-Steagall basic right to privacy and ensuring that the thank the gentleman for yielding time Act since the 1930's and the Bank Holding most intimate details of your life can be to me. Company Act since the 1950's. Previous at- freely bandied about throughout our wired Madam Speaker, I also rise in strong tempts to pass financial services reform often world for gossip if not solely for profit. support of the rule and the conference failed because one financial industry or an- When it comes to serving the interests of report on S. 900, the Gramm-Leach-Bli- other felt that past bills put them at a dis- the banks, insurance companies and stock- ley Financial Institutions Moderniza- brokers that represent the most important advantage. I have seen several of those at- tion Act of 1999. This is a long-awaited source of campaign money for Republicans tempts fail in the six and a half years I have final step in a decades-long effort to and Democrats alike—$145 million in the last been in Congress. That struggle is finally over. update our financial services laws. I two years—there is but one political party. The banking industry, the securities industry That’s the bipartisan party of political greed urge my colleagues to seize the oppor- and the insurance industry agree that we must representing corporate conglomerates, and it tunity to pass this historic legislation, has no qualms about skewering the ordinary which will benefit individual Ameri- modernize these laws to improve competition consumer. cans and help keep our economy and meet the changing needs of consumers. Once again, everyone who mattered—ex- strong. Madam Speaker, this legislation accom- cept consumers—was taken care of when the big congressional deal was cut last week in a This legislation accomplishes a num- plishes a number of important goals that will closed back-room conference committee ber of important goals that will pro- provide better financial services for millions of meeting. The scam brokered at 2 a.m. elimi- vide better financial services for mil- Americans and make American businesses in nates the firewall what has existed for 66 lions of Americans and make the the financial services industry more competi- years between your bank, your insurance American financial services industry tive. company and those who trade your securi- more competitive. ties. The newly formed conglomerates han- First, it will eliminate outdated regulations First, it will eliminate outdated reg- that hinder competition. Banks, insurance dling everything from credit card bills to ulations that hinder competition. More medical records would be allowed by this leg- companies and securities firms will be able to competition will give consumers more islation to freely exchange the details of affiliate and offer new banking, investment and choices to save and earn money on your personal profile, accurate or not, and insurance products to American consumers. their investments. without your permission. Competition will enable consumers to choose Second, the bill will provide sound Given the immense databases of informa- new ways to save and earn money on their in- tion that now can be rapidly searched and regulation, balance, and flexibility for vestments that go beyond the products that exchanged, no detail of your personal life businesses. Banks will be able to are available today. The Treasury Department will be off limits to those who snoop for prof- choose the type of structure that is has estimated that this new competition could it. That cross-referencing to all aspects of best for them. This will allow compa- your life is what the lobbyists paid for. save Americans billions of dollars. These new nies to do so but in a cost-effective ‘‘I would say it’s probably the most heavily business affiliations will be regulated in a lobbied, most expensive issue’’ that Congress manner and way, and produce the new product at lower cost that we want for streamlined manner to protect American con- ever has dealt with, said Ed Yingling, the sumers and taxpayers. chief lobbyist for the American Bankers the financial security of our citizens. Assn. Yingling told the New York Times, Third, the bill allows new competi- Second, the bill will provide sound regula- ‘‘This was our top issue for a long, long time. tion without endangering small banks. tion with flexibility for businesses. Banks will The resources devoted to it were huge, and A big commercial company will not be be able to choose the type of structure that is we fought [for] it tooth and nail.’’ able to buy a savings and loan and en- best for how they want to do business, but ac- Yingling isn’t kidding about those resources, $163 million on financial industry gage in unfair competition against a tivities such as real estate development, insur- lobbying in the past two years, much of it to small, local bank. ance underwriting and merchant banking will the major congressional players. Christopher Fourth, this legislation contains im- have to be conducted in a separate affiliate to Dodd of Connecticut, the top Democrat on portant new standards to protect the insure complete financial safety and sound- the Senate Banking Committee, received financial privacy of American con- ness. There will be balanced regulation of $325,124 between 1993 and 1998 from the insur- sumers. Financial services providers these businesses by the Federal Reserve and ance industry, which gave the committee’s will have to protect consumer informa- the Department of the Treasury. This will allow chairman, Phil Gramm (R–Texas), even tion and inform consumers about how companies to do business in a cost-effective more—$496,610. Gramm also got $760,404 from the securities industry and $407,956 from the this information is used. manner and help produce the new products at bankers. Finally, this legislation continues lower cost that we want for the financial secu- The bipartisan toadying to the industry the commitment for banks to meet the rity of every American who wants to purchase lobbyists is a disgrace. ‘‘I’d say this is about needs of low-income Americans them.

VerDate 29-OCT-99 05:34 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00035 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.032 pfrm02 PsN: H04PT1 H11518 CONGRESSIONAL RECORD — HOUSE November 4, 1999 Third, the bill allows new competition with- vering through tough negotiations on the myr- and increasing consumer choice. I urge out endangering small institutions. We are pro- iad of issues in this bill and to our colleague my colleagues to support the con- tecting small banks from potential unfair com- Senator GRAMM for pushing this bill to comple- ference report to S. 900, and I want to petition by ending a loophole that allows com- tion in the Senate. This bill also has a true bi- congratulate, on our side of the aisle, mercial firms to own a savings and loan insti- partisan imprint and the contributions of Con- the gentleman from New York (Mr. LA- tution. This compromise on the unitary thrift gressmen LAFALCE and DINGELL should be FALCE) and the gentleman from Min- charter issue will allow commercial companies recognized. nesota (Mr. VENTO) for all of their hard which now own a savings and loan to retain The time is now to bring American financial work. them, but in the future, only financial compa- services into the twenty-first century. This leg- Mr. SESSIONS. Madam Speaker, I nies will be permitted to purchase these insti- islation achieves that goal and I urge the yield 2 minutes to the gentleman from tutions. In other words, a big commercial com- house to take the final step by passing this Rocky Ridge, Alabama (Mr. BACHUS), pany will not be able to come into a small conference report today. the chairman of the Subcommittee on town by buying a savings and loan and en- Mr. MOAKLEY. Madam Speaker, I Domestic and International Monetary gage in unfair competition against a small yield 2 minutes to the gentleman from Policy. local bank. This will help prevent possible con- New Jersey (Mr. MENENDEZ), the vice (Mr. BACHUS asked and was given flicts of interest and potential unfair competi- chairman of the Democratic Caucus. permission to revise and extend his re- tion. Mr. MENENDEZ. Madam Speaker, I marks.) Fourth, this legislation contains important thank the distinguished gentleman for Mr. BACHUS. Madam Speaker, if new standards to protect the financial privacy yielding time to me. Members do not know where Rocky of American consumers. Financial service pro- Madam Speaker, with all the rhetoric Ridge is, it is at the end of Rocky viders will have to protect consumer informa- out there, there may be people listen- Ridge Road. We used to tell people, if tion; they will have to clearly tell their cusing to this debate who do not know you could find it, you can have it. Not tomers what their privacy policies are; and, what difference this bill can make in many people took us up on the chal- consumers will have the right to choose not to their daily lives. I think they deserve lenge. have any information shared with unaffiliated to. In 1933, Glass-Steagall. In 1933, if we third parties. Also, this legislation will not re- In a word, it is about choice. It is wanted to travel across the United place any additional privacy protections in any about consumers having more choices. States, we had to do so on gravel U.S. state. It will also make it a federal crime for If they do their banking at a small roads, U.S. highways, or dirt top U.S. unethical individuals to attempt to gain private community bank and buy their insur- highways, dirt roads. If we wanted to financial information through deceptive tactics. ance from a local independent agent, travel on an airplane, there were three- These standards are an important step in pro- they can continue doing that. Nothing engine Ford tri-motor airplanes, bi- tecting the basic financial privacy of all con- in this bill changes that, but it will planes. They are in the Smithsonian sumers. open the doors to new innovations for today. And finally, this legislation continues the people who might want them. Our railroads, we had steam engines commitment for banks and new financial serv- With this bill, it is likely we will be on our railroads. If we want to see a ice holding companies to meet the needs of able to dramatically reduce the fees steam engine today, we have to go to everyone in the community through the Com- and prices we pay for financial services China. They are mothballing their last munity Reinvestment Act. CRA standards are when we choose to do business with a few steam engines. maintained without increasing the regulatory single company that offers banking, in- Today we still have Glass-Steagall. burden, particularly for small banks. Repub- surance, stock and mutual fund needs, Now, imagine traveling across the Na- licans and Democrats alike should be proud all under one roof. tion on gravel U.S. highways. Imagine we are continuing this commitment in a man- Credit cards with permanently-fixed how time-consuming that would be. ner that is fair to communities and financial low interest rates may be offered, Imagine how inefficient steam engines services businesses. along with these unified accounts. We would be if they pulled our freight It is time for the financial services laws of may see new generation ATM machines trains. Imagine flying home on the our country to catch up with the needs of the where on the way home from work we weekends in a biplane. That is what American people. Our constituents have been can view our mutual fund, checking our banks and financial institutions looking for new and affordable products to and savings account, pay all our bills, are attempting to do every day with a give their families financial security. We are from whichever account we decide, and law that was passed in 1933. long past the days when people were satisfied then withdraw some cash for dinner, 1933 was the year that Albert Ein- with a simple savings account or life insurance all in one stop. stein emigrated to America. He became policy. Most Americans want to maximize their In fact, with this bill, consumers will famous and now he has died, but we earnings and to find products that will give see a whole new range of options to cut still have Glass-Steagall, until we pass them the best return. their costs and make their lives more The financial services marketplace has been this bill. Glass-Steagall will mean $15 struggling to meet consumers needs within a convenient. billion worth of savings to the Amer- It is also true that with these options regulatory structure that was created sixty ican people each year. Not only will comes legitimate concerns about pri- years ago. they save money through convenience The changes in this legislation will ultimately vacy. That is why this bill statutorily and competition, they will save time. benefit every American seeking to improve his bans the sale of our account informa- Time is money. It will be much more or her family's financial security by saving and tion to third-party telemarketers. That convenient. investing more. This legislation will help them is why we give consumers the right to It is time that we turned American achieve that goal by making more savings and decide whether or not their informa- ingenuity loose. investment products available in one-stop tion can be shared with any unaffili- Madam Speaker, this legislation, in addition shopping at competitive prices. ated party. to making historic reforms to the structure of As a member of the banking committee, I There are, in fact, a whole host of our financial services industry creates new have often been frustrated by the long days provisions in this bill that will protect protections for consumers, including a prohibi- and seemingly endless hours of negotiation consumer privacy. Those against this tion on a financial institution disclosing non- that have gone into this legislation, but I bill want different privacy provisions, public personal information inappropriately. In strongly believe that those long hours of work an opt-in, an opt-out, a broader ban. creating this new regime, I thought it important have produced a piece of legislation that will We can debate that all day, but remem- that we understand that the realities of day-to- help carry our nation's economy into the next ber, without this bill, consumers will day business for certain financial institutions century. It will help produce good products, continue to have no privacy protec- necessarily involves the disclosure of such in- more choices and hopefully lower prices for tions and will have no access to these formation and to make clear that we did not Americans, and it will help our nation's finan- lower-priced services. intend to interfere with such legitimate actions. cial services business grow and compete suc- That is why a vote against this bill is Companies chartered by Congress to oper- cessfully into the future. in my mind a vote against progress. A ate in the secondary mortgage market are one Madam Speaker, we owe Chairmen JIM vote for this rule and for this bill is a such example. Because these companies do LEACH and TOM BLILEY our thanks for perse- vote for protecting consumers’ privacy not engage in mortgage transactions directly

VerDate 29-OCT-99 05:34 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00036 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.034 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11519 with the consumer, they are not in a position in this bill for consumers, for commu- this bill authorizes, with a variety of regulatory to provide the notices and disclosures that we nities, and for our financial services and consumer protections, already have oc- call for in Title V. Sweeping them within Title system if the bill is enacted. curred, and will continue to occur, under cur- V's purview would have created burdens and If this bill is not enacted, there rent law and court interpretation if this legisla- uncertainty without furthering the Title's con- would be clear losses. Without this bill, tion is not enacted. But they will occur without sumer protection objectives. Therefore, the banks will continue to expand, as they adequate regulatory oversight and without the Conference Report contains language I au- have been, into the securities and into consumer protections built into this bill. In thored that exempts these institutions from the insurance business. They have done large part, then, this bill rationalizes existing Title V's definition as long as they do not sell this for many, many years, on thou- practices. or transfer non-public personal information to sands of occasions. They would con- Privacy. In the financial services context, non-affiliated third parties. The Conferees in- tinue to do so if this bill does not be- federal law now offers consumers no protec- tend to provide the FTC with regulatory and come law, but without the broader ap- tion of their personal financial information, and enforcement authority over secondary market plication of CRA that this bill man- regulators have no authority to impose any. institutions only to the extent that such institu- dates. They would continue to do so, We are creating federal privacy protections, tions engage in activities outside the provi- but without any privacy protections for the first time. No financial services bill in sions of Section 502. whatsoever for consumers, privacy pro- decades has gone to the floor with stronger Let me make clear that the types of ``trans- tections that this bill mandates. privacy protectionsÐindeed, with any privacy fers'' that would pull these institutions back b 2015 protections. A vote for this bill is the strongest within Title V's scope are transfers other than They would continue to do so, but pro-privacy vote that any Member of this those contemplated by Sections 502(b)(2) or without the consumer protections in- House has ever been able to cast. It is a vote 502(e). For institutions covered by Title V, we cluded in this bill that ensure con- for consumer privacy protection. The provi- recognize that the uses of non-public, per- sumers know the risks associated with sions in this bill are now stronger than the pri- sonal information that Sections 502(b)(2) or products they purchase and know vacy provisions of the House product, which 502(e) contemplate are legitimate. This same whether or not they are insured. They passed 427±1. standard applies to the secondary market in- would continue to do so if this bill is Community Reinvestment Act (CRA). This stitutions covered by Section 509(3)(D). To the not passed, but without the increased bill does not change existing CRA obligations extent that these companies go beyond these regulatory oversight provided by this on insured depository institutions in any way. parameters, I expect that they will be generally bill. Members should embrace this bill It, in fact, substantially enhances CRA. Banks subject to Title V. for consumers, for communities and for can now engage in securities and insurance Finally, I am offended at the seemingly in- the future of the financial services in- activity without satisfactory CRA performance tentional misrepresentation by certain mort- dustry of the United States. being a factor at all. For the very first time, the gage insurance and mortgage lending groups Madam Speaker. I rise in support of the conference report applies CRA to banks and of my amendment's effect. My objective in of- Rule and of the Conference Report on S. 900. their holding companies in the context of ex- fering this amendment and securing its inclu- In July, the House passed its version of fi- pansion into activities such as securities, in- sion in the Conference Report was to exempt nancial modernization (H.R. 10), with a broad surance underwriting and merchant banking. those operating in the secondary mortgage bipartisan vote of 343±86. The Senate passed The conference report also deletes Senator market from Title V to the extent that they en- a partisan product by a narrow margin of 54± GRAMM's CRA exemption for small or rural gage in uses of information that Title V ac- 44. The White House clearly indicated it would banks. It deletes Senator GRAMM's ``CRA safe cepts as appropriate and as creating no addi- veto the Senate version because of its nega- harbor'' that would have blocked community tional obligation on the part of those institu- tive impact on the national bank charter, highly comments on most banks' CRA applications tions. In this manner, I wanted to ensure that problematic provisions on CRA and its non- and shifted the burden of proof unfairly to these companies remain able to fulfill the im- existent privacy protections. community groups. For small banks, it targets portant purposes that Congress chartered The conference report necessarily rep- CRA regulatory resources on banks with the them to serve. Consumers in communities resents a compromise between the two poorest CRA records, creating an incentive for throughout the country benefit from the liquid- versions. But it is a good and balanced com- better community reinvestment performance. It ity and the access to affordable housing fi- promise that effectively modernizes our finan- ensures that the regulators have complete au- nance that these institutions provide; indis- cial services industry under strong regulatory thority to examine banks regarding their CRA criminately subjecting secondary mortgage controls, but also includes strong protections performances as frequently as they believe market entities would have made consumers for consumers and communities consistent necessary. no better offÐand perhaps worse off. with the original House bipartisan product. As The conference report also provides for dis- Mr. MOAKLEY. Madam Speaker, I a result, the administration strongly supports closure of a limited set of CRA agreements. yield 2 minutes to the gentleman from the conference report. New York (Mr. LAFALCE), the ranking I support this bill for very simple and funda- But it substantially narrows the overbroad pro- member. mental reasons. There are clear gains for con- visions of the Senate bill and attempts to mini- (Mr. LAFALCE asked and was given sumers, for communities and for our financial mize the reporting burden on community permission to revise and extend his re- services system if this bill is enacted. There groups. Community groups are bringing new marks.) are clear losses if it is not. capital and new financial services into low in- Mr. LAFALCE. Madam Speaker, I Without this bill, banks will continue to ex- come communities through these agreements. thank the gentleman for yielding time pand into the securities and insurance busi- We, and they, have every reason to be proud to me. ness as they have been doing on thousands of that record. This disclosure provision, to the Madam Speaker, I rise in support of of occasions for many years under current very limited degree it applies, can only make the rule and of the conference report law. However, they would continue to do so: that proud record apparent to everyone. on S. 900 and H.R. 10. In July the House Without the broader application of CRA this I would be remiss if I did not note that these passed its version of financial mod- bill authorizes; without any privacy protections legislative efforts have a human face. First of ernization, H.R. 10, with a very broad whatsoever for consumers; without the con- all, I want to thank Chairman LEACH who kept bipartisan vote, 343 to 86. The Senate sumer protections included in this bill that en- this a fair and bipartisan process despite often passed a partisan product by a very sure consumers know the risks associated heavy and unfortunate pressure to do other- narrow margin of 54 to 44. with products they purchase and know wheth- wise. I would also like to thank the chairman's The Senate version was a bill that er or not they're insured; without the increased staffÐTony Cole, who we all hope is the administration said they would regulatory oversight provided by this bill; and recuperating well, Gary Parker, and Laurie veto. Today we bring basically the with artificial structural limitations that will Schaffer, and Legislative Counsels Jim Wert House bill, a bill that the administra- place the U.S. financial services industry at a and Steve Cope. I want to especially thank the tion says they can strongly support, clear competitive disadvantage. Democratic Committee staff, especially that I strongly support, that the con- However Members choose to vote on this Jeanne Roslanowick and Tricia Haisten, with- sumers of America should strongly sup- bill, they should vote based on the facts. The out whose tireless and effective efforts we port. facts are as follows. would not have gotten to this point, and also Why? There are some simple, funda- Financial modernization. Many of the new Dean Sagar, Patty Lord, Jaime Lizarraga, mental reasons. There are clear gains activities, acquisitions, affiliations and mergers Kirsten Johnson-Obey.

VerDate 29-OCT-99 06:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00037 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.036 pfrm02 PsN: H04PT1 H11520 CONGRESSIONAL RECORD — HOUSE November 4, 1999 This is a good bill which Democrats can be Included in Title VI of the bill before us are from Massachusetts (Mr. MOAKLEY), proud to support. I urge your support of the complex changes in the structure of the Fed- the ranking member, who have been conference report on S. 900. eral Home Loan Bank (FHLBank) System. I able helpers in the process, we could Mr. SESSIONS. Madam Speaker, I believe these changes will enhance the ability not be here today without the help that yield 2 minutes to the gentleman from of the System to help member institutions they have offered in terms of melding Fullerton, California (Mr. ROYCE), a serve their communities, though there is enor- together the bills in the House and for member of the Committee on Banking mous work yet to be done to implement these their help and assistance in bringing and Financial Services. initiatives. Consequently, at the risk of redun- this bill to the floor yesterday and (Mr. ROYCE asked and was given per- dancy, it is important to reiterate the view ex- today. mission to revise and extend his re- pressed in the conference regarding related This is a must-pass bill. We need to marks.) regulatory actions. build the type of economic foundation Mr. ROYCE. Madam Speaker, the his- As noted in the committee report, the con- that will continue the economic toric legislation that we are consid- ferees acknowledged and supported with- progress that we have experienced in ering today is a win for consumers, a drawal of the Financial Management and Mis- our economy. The fact of the matter is win for the U.S. economy and a win for sion Achievement (FMMA) rule proposed ear- that our financial system in this coun- America’s international competitive lier this year by the Federal Housing Finance try, in terms of banks, insurance, secu- position abroad. Board (FHFB), the FHL Bank System regu- rities, are dysfunctional today. American consumers will benefit lator. The FMMA would have made dramatic In this bill, led by the gentleman from increased access, from better changes in such areas as mission, invest- from Iowa (Chairman LEACH) in the services, from greater convenience and ments, liquidity, capital, access to advances House, we have been able to bring to from lower costs. They will be offered and director/senior officer responsibilities. Be- the table the insurance interests and the convenience of handling their cause of serious concerns over the FMMA's the security interests and banking in- banking insurance and securities ac- impact on FHLBank earnings, its effect on terests and literally make them come tivities at one location. to an agreement; and the same is true, More importantly, with the effi- safety and soundness and its legal basis, the of course, with the regulators, bringing ciencies that could be realized from in- proposal has been intensely controversial together Chairman Greenspan and Sec- creased competition among banks, in- among the FHLBanks' membership, with over retary Rubin and now Secretary Sum- surance and securities providers under 20 national and state bank and thrift trade as- mers, and others, and provide the type this proposal, consumers could ulti- sociations calling for a legislated delay on of functional regulation that would mately save an estimated $18 billion in FMMA. satisfy the tough questions and prob- the estimates of our U.S. Treasury De- Many conferees not only shared these con- lems. So, too, in terms of consumer partment. This reduction in the cost of cerns but also felt strongly that the FMMA issues which are so important to all of financial services is, in turn, a big win should not be pursued while the FHLBank us to build the type of efficiencies and for the U.S. economy. System is responding to the statutory changes Finally, this legislation is a win for in this bill. There was great sympathy for a provide the type of safeguards that the America’s international competitive moratorium blocking the FMMA, but prior to people deserve. Now, I checked with the counsel for position, as it will allow U.S. compa- the matter coming to a vote, Chairman Morri- the House and the counsel for the Sen- nies to compete more effectively with son of the FHFB sent a letter to Chairmen ate and not a single consumer law is foreign firms for business around the GRAMM and LEACH agreeing to withdraw the repealed in this bill. Quite the con- world. proposal, which I want to make sure is part of In urging swift passage, Federal Re- the RECORD. He also promised to consult with trary. In fact, CRA is strengthened by serve Chairman Alan Greenspan said, the Banking Committees regarding the content applying it to new activities and appli- we cannot afford to be complacent re- of the capital rules and any rules dealing with cations. In fact, privacy, this is one of garding the future of the U.S. banking investments or advances. The FHFB's com- the most pervasive privacy provisions industry. mitment not to act precipitously in promul- ever written into Federal law and ap- This legislation is 30 years overdue, gating regulations in these areas creates the plies to all financial entities. Madam Speaker, and I urge my col- proper framework for effective and timely im- Yet some today choose to build a fa- leagues not to delay its passage any plementation of the reforms that Congress is cade of problems rather than dealing longer. Let us support the rule and let seeking to put in place. with the reality and passing this im- us support the bill. The regulatory standstill to which the FHFB portant legislation. We have the over- Madam Speaker, the historic legislation that has committed should apply to any final rules whelming support now in the Senate, we are considering today, is a win for the con- or policies applicable to investments, and the overwhelming support of the House, sumer, a win for the U.S. economy and a win FHFB should maintain the current $9 billion with nearly 350 Members that voted for for America's international competitive position ceiling on member mortgage asset pilot pro- this in the initial instance and almost abroad. grams or similar activities. In the context of the same bill is being presented to American consumers will benefit from in- dramatic impending changes in the capital today, and, of course, the support of creased access, better services, greater con- structure of the FHLBanks, I believes it is nec- the administration. venience and lower costs. They will be offered essary for the FHFB to refrain from any effort I say it is time to pass this bill to the convenience of handling their banking, in- otherwise to rearrange the FHLBanks' invest- provide the type of financial effi- surance and securities activities at one loca- ment framework, liquidity structure and bal- ciencies and consumer benefits that are tion. More importantly, with the efficiencies ance sheets. inherent in a modern financial system that could be realized from increased competi- It is my understanding that credit enhance- that is necessary for America’s engine tion among banks, insurance, and securities ment done through the underwriting and rein- of economic growth. providers under this proposal, consumers surance of the mortgage guaranty insurance Madam Speaker, I rise in support of this could ultimately save an estimated $18 billion after a loan has been closed are secondary rule that will bring before the House in an ex- annually. market transactions included in the exemption pedited fashion the conference report on S. This reduction in the cost of financial serv- for secondary market transactions in section 900, the Financial Services Modernization Act. ices, is in turn, a big win for the U.S. econ- 502(e)(1)(c) of the S. 900 conference report. This act, otherwise known as the Gramm- omy. Mr. MOAKLEY. Madam Speaker, I Leach-Bliley act, is the culmination of many Finally, this legislation is a win for America's yield 2 minutes to the gentleman from many years of effort to bring the financial insti- international competitive position, as it will Minnesota (Mr. VENTO). tutions and regulatory law in line with the reali- allow U.S. companies to compete more effec- (Mr. VENTO asked and was given ties of today's marketplace. tively with foreign firms for business around permission to revise and extend his re- Modernization of our financial services will the world. marks.) finally be achieved with the enactment of this This legislation is 30 years overdue Mr. Mr. VENTO. Madam Speaker, I rise key bill. With passage of this conference re- Speaker, and I urge my colleagues not to in strong support of this rule. The port, Congress will enhance consumer protec- delay its passage a day longer. Committee on Rules, under the chair- tions in important ways, putting forward the At this time, I would like to make a few clari- manship of the gentleman from Cali- strongest financial privacy protection provi- fying remarks. fornia (Mr. DREIER) and the gentleman sions ever to be written into Federal law and

VerDate 29-OCT-99 05:34 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00038 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.052 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11521 maintaining and reinvigorating the Community resentatives and the Congress that has world today because of our dynamic Reinvestment Act's relevance in the new fi- done something that is great for con- market economy and strong regulatory nancial world. sumers. regime. Yet as the financial markets This is a good compromise that reflects It is hard work. We are hearing about mature they have been restrained by much of the House-passed bill in content if not it tonight. Just another example of the Glass-Steagall law that requires fi- wholly in form. We repeal Glass-Steagall and what great work this Congress has nancial companies to separate their allow the affiliations with securities firms, in- done. various entities. surance companies and banks. The commer- Madam Speaker, I yield 2 minutes to By repealing Glass-Steagall, Con- cial ownership loophole is closed for unitary the gentleman from Allentown, Penn- gress will bring new competition to fi- thrift holding companies. We enhance the sylvania (Mr. TOOMEY), a member of nancial services so that consumers can Federal Home Loan Bank System. We estab- the Committee on Banking and Finan- purchase products more efficiently and lish consumer protections in law for the sales cial Services. more cheaply. The net effect will be to of non-deposit products by banks. The finan- Mr. TOOMEY. Madam Speaker, I rise promote more competition, create cial privacy and CRA provisions are sub- in support of this rule and the legisla- more products at lower prices and bet- stantive, substantial Federal policy advances. tion under consideration today. The ter protect American consumers. Importantly, the bill enhances the viability of Gramm–Leach-Bliley Financial Serv- While the bill does not create the smaller community banks and financial entities ices Modernization Act is probably the ideal financial holding company model vital to extending services and credit through most important financial legislation to or charter, it does repeal portions of our greater economy: rural and urban. come before Congress since the Glass- existing regulatory constraints dating With regard to privacy, I well understand Steagall Act mandated a separation be- back to the Great Depression commen- some sought greater consumer privacy provi- tween banking and the securities in- surate with a market that has matured sions. But the perfect should not be the dustry back in 1933. greatly through market disinterme- Today there is virtually unanimous enemy of the good. This conference agree- diation brought on by broader con- agreement among economists, aca- ment lays a solid foundation of financial pri- sumer wealth, sophistication and ac- demics, policymakers and most impor- vacy set into our regulated financial market- cess to information. tantly the men and women actually place which affects all consumers doing busi- This bill does not provide for the creating and providing financial serv- ness with all banks, S&L's, insurance compa- mixing of banking and commerce but ices across America today. The repeal does address it in a prudent way nies, securities firms and credit unions and in of Glass-Steagall is necessary so that through a new complimentary to bank- fact, all entities financial in nature: such as consumers can get the products and ing approach that should meet the con- credit card companies and finance offices. The services they desire and American fi- cerns of not limiting banking and fi- broad basis for this provision is only beginning nancial firms can compete in the glob- nance as it expands. to be appreciated and this privacy law is very al marketplace. It does allow for banks to enter the much needed on that broad basis. Madam Speaker, I would like to high- insurance and securities brokerage With regard to CRA, the conference suc- light just one small part of this sweep- business while protecting functional cessfully eliminated the harmful ``safe harbor'' ing legislation. I am particularly regulation and maintaining the Securi- and ``small bank exemption'' provisions from pleased that this bill includes an im- ties and Exchange Act and McCarran- the Senate bill. We accepted a modified dis- portant provision regarding certain de- Ferguson. closure and reporting system. While I strongly rivative transactions, especially credit Finally, I would like to say that this disagreed with the burdensome, so-called and equity swaps. These somewhat ob- bill in many respects strengthens the ``sunshine'' and reporting provisions in the scure products are actually very impor- Community Reinvestment Act. It has Senate bill that raised the specter of harass- tant tools used by businesses, including for the first time the ‘‘have and main- ment of pro-CRA groups, very few would op- financial service firms, to manage a va- tain’’ clause which says that any bank pose openness. Certainly, the disclosure of in- riety of risks that they face. This bill that wants to get into any line of busi- formation can spell out the effectiveness of reaffirms that swap contracts are le- nesses must have and maintain a satis- these groups working so hard in our commu- gitimate bank products that can be ex- factory CRA rating. nities and the effectiveness of the CRA itself. ecuted and booked in banks and are Additionally, it protects CRA for I believe the reporting requirements, al- adequately regulated by and will con- smaller banks. It in no way excludes or though improved, are an extraordinarily dif- tinue to be regulated by banking super- exempts smaller banks from CRA, ficult policy as structured in this measure. It no visors. which some members in the other body doubt will be more of a burden to community I would also like to congratulate the tried to do. groups and banks who currently do not file re- many Members of this Chamber who I think this is really a win/win, and ports. However, we were able to streamline have worked very hard, some for many in terms of privacy, as other speakers the reporting requirements and to limit who years, on financial modernization. In have said, this codifies new law as it should file a report even as we gave the regu- particular, I would like to salute the relates to privacy. If we do not pass lators substantial authority to properly oversee gentleman from Iowa (Chairman this bill, consumers will be worse off as such provisions. We should be mindful of the LEACH) and the ranking member, the it relates to privacy and I would en- administration's and regulators' expressions of gentleman from New York (Mr. LA- courage my colleagues to pass it. good will to take a common sense approach FALCE) for the outstanding work they Mr. SESSIONS. Madam Speaker, I with regards to its implementation. Hopefully have done to see this legislation yield 2 minutes to the gentleman from they can help make these disclosure and re- through to completion, and I urge my Palm Bay, Florida (Mr. WELDON), a porting requirements more workable. Con- colleagues to support the rule and pas- member of the Committee on Banking gress will certainly have to closely monitor the sage of this historic bill. and Financial Services. implementation of these provisions and their Mr. MOAKLEY. Madam Speaker, I Mr. WELDON of Florida. Madam effects. yield 2 minutes to the gentleman from Speaker, I thank the gentleman from With that, Madam Speaker, I urge an ``aye'' Houston, Texas (Mr. BENTSEN). Texas (Mr. SESSIONS) for yielding me vote on the rule so that we can positively con- Mr. BENTSEN. Madam Speaker, as a this time. sider one of the key financial services bills of member of the committee and the con- Madam Speaker, when I was first our century, the conference report on S. 900, ference committee, I strongly support elected to Congress and later appointed the Financial Services Modernization Act. this legislation and the rule and urge to serve on the Committee on Banking Mr. SESSIONS. Madam Speaker, I my colleagues to support it. I believe and Financial Services I was very sur- yield myself such time as I may con- that this comprehensive banking re- prised to learn that the laws governing sume. form legislation will bring new benefits the financial service sector of our econ- Madam Speaker, as we can tell from to consumers by encouraging competi- omy were relics of the Depression, that the comments that have been made on tion among the banking securities and the Glass-Steagall Act was passed in the floor tonight, this legislation is not insurance industries in creating one- 1933 and that for years the Congress only historic but has required a great stop shopping for consumers. had been unable to pass important and deal of work, a bipartisan work, and I The United States’ financial industry badly needed new legislation to mod- am very proud of the House of Rep- is the strongest and soundest in the ernize the laws governing the banking,

VerDate 29-OCT-99 06:13 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00039 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.054 pfrm02 PsN: H04PT1 H11522 CONGRESSIONAL RECORD — HOUSE November 4, 1999 insurance and securities industries in How kind of them to look out for pro- ical that we update the laws which deal the United States. tecting the wife. with every aspect of the financial mat- Well, tonight we are finally getting It is past time that these outdated ters of the people of our country, but that job done and modernizing those themes are addressed and discrimina- there is a fatal flaw in the heart of this laws. This may not be a perfect bill but tory financial practices are brought bill. it is a good bill. It is a good bill be- out in the open as we move forward to The financial institutions say that cause it will make it easier and less ex- modernize the rest of the financial they need synergies of being able to pensive for the public to access bank- services industry, and it is my personal provide brokerage and banking and in- ing and financial services. hope that this bill includes no bail-out surance services to every American. As Our international competitors in Eu- provisions should some of this go a result, they can be giving the Amer- rope and Asia long ago adopted more wrong in the future. ican people no privacy protections. modernized changes to the laws gov- Mr. SESSIONS. Madam Speaker, I What the American people say is give erning their financial service sectors. yield 2 minutes to the gentleman from us the synergies, but take the ‘‘sin’’ We now in the U.S. will have modern- Des Moines, Iowa (Mr. GANSKE). out of those synergies. Do not com- ized ours, and in doing so we will im- b 2030 promise our privacy. If one has had prove the competitiveness of the Amer- one’s checks in the same bank from the ican economy and allow it to continue Mr. GANSKE. Madam Speaker, I rise last 25 years, all of those checks can its place as the most competitive econ- in support of the rule and the bill. I am now be shared with all the insurance omy on the globe. particularly pleased that the unitary agents inside of this new financial serv- Much credit goes to the gentleman thrift loophole which allows commer- ices institution, with all of the brokers from Iowa (Chairman LEACH) and the cial firms to control savings and loans inside of this financial institution, ranking member, the gentleman from charters has been closed in this bill. with the telemarketing affiliates of New York (Mr. LAFALCE) for this bill, Both Treasury Secretary Rubin and this financial services institution to do as well as all of the others who had sig- Federal Chairman Greenspan testified a financial profile of one for their mar- nificant input in this effort, to include in support of the provision to restrict keting purposes. If this financial serv- the Treasury Department and the Fed- unitaries. In his Senate testimony, ices company creates a joint agree- eral Reserve, particularly Chairman Greenspan stated, ‘‘The Board supports ment with another financial services Greenspan. I encourage all of my col- the elimination of the unitary thrift company, one cannot protect that in- leagues on both sides of the aisle to loophole, which currently allows any formation either. vote yes on the rule and vote yes on type of commercial firm to control a This is all one gets, Madam Speaker, final passage of this legislation. federally insured depository institu- from one’s new, huge, bank holding Mr. MOAKLEY. Madam Speaker, I tion. Failure to close this loophole company: Notice. Notice is all one gets. yield 11⁄2 minutes to the gentlewoman would allow the conflicts inherent in What is the notice? The notice is one from Rochester, New York (Ms. banking and commerce combinations has no privacy rights. That is the no- SLAUGHTER). to further develop in our economy and Ms. SLAUGHTER. Madam Speaker, I tice. None. Because it interfere with complicate efforts to create a fair and their ability to make money at the ex- thank the gentleman from Massachu- level playing field for all financial setts (Mr. MOAKLEY) for yielding me pense of one’s family’s secrets. services providers.’’ time. No one should vote for this bill. It is What would be the result if Microsoft Madam Speaker, I have some strong a fatally flawed bill. We should be able purchased Washington Mutual with its concerns about the conference report, to deal with this issue simultaneously but I do want to thank the conferees 2,000 branches and $165 billion in as- with letting the big boys get all they for including Section 733 entitled Fair sets? It certainly would have raised the need. We should take care of what ordi- Treatment for Women by Financial Ad- specter of too big to fail. nary people need for their families as visors. This short but important sec- But, Madam Speaker, I especially well. tion, based on an amendment I brought want to commend the gentleman from Mr. SESSIONS. Madam Speaker, I to the floor, reads, it is the sense of Iowa (Mr. LEACH) for his patience and yield myself such time as I may con- Congress that individuals offering fi- endurance in brokering this agreement sume. nancial advice and products should between members of the conference Madam Speaker, thank goodness we offer such services and products in a committee and in balancing the inter- have an open debate here tonight nondiscriminatory, nongender specific est of everyone, from small community where we are able to talk about the manner. banks and large international insur- need for privacy rules and regulation, The language is in response to estate ance firms, to consumers and investors. the most comprehensive ever in the documents that keep women from con- The challenge was to find equi- marketplace. trolling their inherited financial as- librium between maintaining safety Madam Speaker, I yield 3 minutes to sets. Some estate planning publica- and soundness in the Nation’s banking the gentleman from Brightwaters, New tions and sales literature for trusts use system and providing for a fair and ef- York (Mr. LAZIO), to help explain this a three themes. One is that women ficient competition in the financial little bit further, a member of the should be relieved of the burden of services marketplace. Committee on Banking and Financial managing money because they cannot There are many who deserve a lot of Services and the Committee on Com- learn. Second, if they have money on credit for this bill. But at the top in merce. their hands they will be vulnerable to my book is the gentleman from Iowa Mr. LAZIO. Madam Speaker, let me, shysters and, third, they might re- (Chairman LEACH). Iowans should be first of all, begin by complimenting the marry and hand the man’s hard-earned very proud of the gentleman from Iowa gentleman from Iowa (Mr. LEACH), the money over to somebody else. (Chairman LEACH) for the work on this chairman of the Committee on Bank- Now, this is not an old problem. In a bill. ing and Financial Services; the gen- 1998 estate planning guidebook it in- Mr. MOAKLEY. Madam Speaker, I tleman from New York (Mr. LAFALCE), structs its benefactor to consider the yield 2 minutes to the gentleman from the ranking Democratic member; the question if, quote, a man should sub- Malden, Massachusetts (Mr. MARKEY). gentleman from Ohio (Mr. OXLEY), ject his wife to the bewildering details Mr. MARKEY. Madam Speaker, I chairman of the Subcommittee on Fi- which administration of property often thank the gentleman from South Bos- nance and Hazardous Materiels; and involves if she has had no experience ton, Massachusetts, for yielding me the gentlewoman from New Jersey with it. this time. (Mrs. ROUKEMA); and the gentleman It goes on to state that if she has had Madam Speaker, I rise in opposition from Virginia (Mr. BLILEY) for their no previous experience she may not be to this bill. I support the moderniza- outstanding leadership in getting this prepared to handle large sums of tion of the financial services industry bill to the floor. money. If this is true, she herself would in the United States. For 25 years, we have been working not want to be burdened with adminis- Because of global competition and on this effort. Today we are on the tration of property. rapid technological change, it is crit- verge of making it a reality. For the

VerDate 29-OCT-99 05:34 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00040 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.101 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11523 first time in history, we are going to leagues are going to try to set up one- discourage them from being activists. require a financial institution to actu- stop shopping services for financial If they get investigated and they fall ally have a privacy policy and to put it services. But returning 1999 to 1929 is short of the expectations, they will not in plain English. not reform in my book. be able to be involved in this work for Madam Speaker, for years, we have The proponents says they are making 10 years. been hearing about the trend of global advances by providing privacy protec- They know what they are doing. markets. Today globalization is the re- tions. But the fact is the consumers are They want to get people out of the ality. Geographic borders no longer going to be faced with the new business of challenging the banks. This block the flow of capital, creating a megamerged world. Insurance compa- is a one-man vendetta that took place whole new world of economic oppor- nies, banks, and investment companies on the conference committee. tunity. The question is: Are we poised, are all going to be owned by the same We should never have negotiated are we prepared to take advantage of people. with them, but the negotiations took this opportunity? Are we willing to em- Supporters brag about consumer pri- place in the back room, not in public. brace the future? That is the question vacy rights that they are protecting, Those who say that CRA has not been that is posed today. That is what the and they are careful to say that they weakened are wrong. It has been weak- Financial Services Modernization Act are providing protection in the case of ened. is designed to do. all unaffiliated third parties. That is Well, in addition to what has been Madam Speaker, rather, this bill will true, but big deal. done to CRA, the privacy provision remove the red tape that threatens to What they do not tell you is that should cause one to hesitate on this strangle our financial institutions as they are giving away the privacy store bill. One’s information will be given to they enter the new global marketplace. in terms of all affiliated parties. Be- third parties. Do my colleagues know Americans believe deeply in competi- cause one is going to have the same what they are? They are boiler rooms tion. They trust the free market. Why? people owning one’s banks, owning where they hire people off the street to Because, year after year, competition one’s insurance company, owning one’s come in and do telemarketing who are brings more services, more choice, stock brokerages. That means they are dialing to sell one something. lower prices, and more wealth. going to share one’s banking informa- They are going to have all of one’s Many financial conglomerates are al- tion with every single affiliate, and information. They are going to have ready responding to their customers’ they are going to be able to contract one’s bank account. They are going to needs, offering a full menu of financial with the telemarketers and spread that have one’s tax returns. They are going products and services. But that does same information around. to have everything. Privacy, CRA, fair not mean that, when Glass-Steagall Sometimes this House makes me housing, and the people got nothing. barriers are torn down, every bank will sick, and this is one of those nights. I tried to get lifeline banking. I said, be a broker or that every broker will be Mr. SESSIONS. Madam Speaker, let us have a study on the escalating an insurer. may I inquire as to the time remaining fees that banks are charging. I said, let Customers will gravitate to the best for both sides. us do something about surcharging at managed, lowest price financial serv- The SPEAKER pro tempore (Mrs. ATMs. The consumers got nothing. We ices provider. This legislation will give EMERSON). The gentleman from Texas were voted down on every attempt to American companies the freedom that (Mr. SESSIONS) has 3 minutes remain- do something for consumers. This is they need to meet this challenge. It ing. The gentleman from Massachu- the big boys’ bill. This is the big bank- will give the freedom to remain the setts (Mr. MOAKLEY) has 111⁄2 minutes ing bill. This is nothing for the people. world leading financial institution. remaining. Mr. MOAKLEY. Madam Speaker, I Madam Speaker, while I support this Mr. SESSIONS. Madam Speaker, I re- yield 2 minutes to the gentlewoman legislation strongly, I must point out serve the balance of my time. from Florida (Mrs. MEEK). that it falls short in one important Mr. MOAKLEY. Madam Speaker, I (Mrs. MEEK of Florida asked and was area. It does not provide for a full two- yield 2 minutes to the gentlewoman given permission to revise and extend way street for the securities industry from California (Ms. WATERS). her remarks.) to engage in banking and so-called Ms. WATERS. Madam Speaker, I Mrs. MEEK of Florida. Madam woofie provision. Woofies would have have spent hours on this bill. I served Speaker, I am sure that those of my allowed firms with institutional and on the conference committee. I am the colleagues who have come to the floor corporate clients to provide those cus- ranking member of the Subcommittee and applauded this bill have tunnel vi- tomers with a full range of financial on Domestic and International Mone- sion, and their vision is directed to- services without any additional risk to tary Policy of the Committee on Bank- ward the large banking institutions. the Federal Deposit Insurance System. ing and Financial Services. Because their blindness does not let I am disappointed they were cut out of I have spent hours on this bill, and I them see to the right and left of them, the conference report at the last sec- am absolutely surprised that the Mem- they do not really see the people that ond. bers of this House can support a bill are being affected by this bill most. Nevertheless, Madam Speaker, I that would do what this bill is about to I am opposed to this bill, that this strongly support this bill. It will en- do to working people and poor people. bill brings in a strong element of discourage competition in the financial We have something called CRA, Com- crimination, particularly in fair hous- services industry both here and abroad. munity Reinvestment Act. It is an act ing. Fair housing is an area I have It will spur the creation of new finan- that basically forces the banks to put fought for since the 1960s. We finally cial instruments and new markets to something back into the communities got a bit of fair housing. the benefit of consumers and busi- where they get deposits. Now, they come in and say to these nesses alike. Now, there are those who have never big conglomerates they are going to let With that, I want to urge all of my liked CRA. They have winnowed away the insurance companies come in now; colleagues to vote for this bill. Let us at CRA every year. They have tried to and they can do redlining, and they do make sure that American banking is dismantle it. The President did away not care, because it is not within the ready for the 21st century. with all of the paperwork, because they big prospectus of the bill. Mr. MOAKLEY. Madam Speaker, I said it was too much paperwork. But But now it is going to be even harder yield 2 minutes to the gentleman from that is not enough. They came back for people to get a house. If one cannot Wisconsin (Mr. OBEY), the ranking this time with something called ‘‘sun- get insurance, I repeat, one cannot get member of the Committee on Appro- shine.’’ a house. So what is that other than dis- priations. Well, what they are doing is they are crimination? Mr. OBEY. Madam Speaker, this bill intimidating the activists. They are in- The CRA language in this bill may is consumer fraud masquerading as fi- timidating them by making them do have been worked on to some extent. nancial reform. There is nothing wrong something called disclosure and ac- But my colleagues were not able to see with modernizing financial institu- countability and reporting. They are the forest through the trees. Then they tions. It is nice to see that my col- doing it in such a way that they will limited it, and they thought they were

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00041 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.103 pfrm02 PsN: H04PT1 H11524 CONGRESSIONAL RECORD — HOUSE November 4, 1999 expanding it; but they limited it by conference report language in fundamentally ment, running the frozen food depart- protecting the banks. flawed. The conference report eliminates the ment, and, yes, running your local Now, do not let anybody fool you, the requirement that financial holding companies bank, vote against this bill. Because banks have made a lot of money. They maintain compliance with the CRA. It limits there is a loophole that has been shut have gone into these neighborhoods, CRA oversight of banks and thrifts by severely down that would allow Wal-Mart com- and they have been able to help in reducing the frequency of CRA exams for ing soon to your hometown to run your those neighborhoods. But what my col- most urban and rural banks with assets of bank. leagues are doing now is they are let- under $250 million. It imposes unnecessary Small bank? Consumer? This bill is ting other players into this ball game. and highly burdensome reporting requirements it. I cannot imagine what my col- These other players may or may not on community groups that are parties to CRA leagues are thinking. have the kind of outlook on these prob- agreements with banks and imposes severe Mr. MOAKLEY. Madam Speaker, I lems as banks do. penalties on the community groups for non- yield 2 minutes to the gentlewoman So they are saying that is okay be- compliance. from Ohio (Ms. KAPTUR). cause it does not involve us. But it The bill significantly extends the time be- Ms. KAPTUR. Madam Speaker, I rise does involve you in that, if you do not tween CRA exams for small banks, allowing in opposition to the rule and in opposi- expand it, you are not going to be able such banks to take full advantage of all of the tion, strong opposition, to the bill. to capitalize on the gains you have new powers under the banking bill even if their This bill is pro megabank and it is been made through the community re- performance in low-income areas declines against consumers. And I would say to enactment. dramatically during this period. It also fails to the people listening tonight, Are you Now, I know my colleagues do not protect customers of banks owned by insur- tired of calling banks and getting lost like CRA. I have come from neighbor- ance companies from illegal discrimination. in the automated phone system, never hoods where CRA is sort of like a bad Under the bill, insurance companies found locating a breathing human being? word, like some kind of plague on us. guilty of violating the Fair Housing Act are not This bill will make it worse. But my colleagues must go back to the prohibited from affiliating with banks, even Are you fed up with rising ATM fees fight they are supporting and putting though their insurance agents may become and service fees that now average over severe penalties on these groups, make the salespeople for these new bank affiliates. $200 a year per account holder? This it hard for them to fill out the paper- Madam Speaker, as we seek to modernize bill will make it worse. work, do not punish the banks, make it the financial services industry, we must not Are you skeptical about banks that hard for these poor little community- miss this unique opportunity to modernize the used to be dedicated to safety and based groups to fill them out, then Community Reinvestment Act. We need a bill soundness and savings but are now bang them over the head with some big that creates a financial system that works for switching to pushing stocks and insur- propensity for the Federal Government all Americans. For main street, not just wall ance and debt? This bill will make it to come in on it. street. For these reasons, I oppose the Con- worse. You are talking about keeping the ference Report. Are you tired of the megafinancial Federal Government off your backs. Mr. SESSIONS. Madam Speaker, I conglomerates and mergers that have You put it on the backs of poor people. yield 1 minute to the gentleman from made your community a branch econ- Shame on you. Louisiana (Mr. BAKER). omy of financial centers located far Madam Speaker, I rise in opposition to the away, whose officers you never know, b 2045 Conference Report because it weakens the who never come to your community? Community Reinvestment Act when we should Mr. BAKER. Madam Speaker, I This bill will make it worse. be strengthening and expanding it. Clearly, thank the gentleman for yielding me Punitive reporting requirements in there is a need to modernize and update this this time. this bill are aimed at disabling commu- nation's banking and financial services laws. I think some folks have really missed nity groups that are the only groups in Nonetheless, because the CRA provisions are the boat tonight. If my colleagues do this country that hold these institu- flawed and have gotten worse since leaving not want privacy restrictions, then tions accountable for the depositors’ the House, I cannot support this bill. vote against this bill. The first Federal money. It is going to make them a tar- Madam Speaker, the CRA has brought eco- privacy statute ever. Who does it apply get of Federal reporting requirements. nomic development, hope, and opportunity to to? Banks, insurance agents, securities So why do community groups oppose low and moderate income communities in companies. this bill, like the Lutheran Office for urban and rural areas across the country. The Does it apply to Wal-Mart? Does it Governmental Affairs, the Fair Hous- CRA has been the primary vehicle to expand apply to General Motors? Does it apply ing Alliance, the National Low-Income access to capital and credit in my District and to anyone else in the world? No. For Housing Coalition, the Coalition of in other low income and minority communities the first time it applies to financial in- Community Development Financial In- throughout the country. stitutions and financial in nature only. stitutions, Consumers Union, the Vol- CRA was created to combat discrimination They cannot sell an individuals’ pri- unteers of America? Sounds like the by encouraging federally insured financial in- vate information, without that individ- folks that live in my neighborhood, my stitutions to meet the credit needs of the com- ual’s permission, to a third party. colleagues. munities they serve. CRA requires federally in- Some people wanted to go further. I would say this is one of the worst- sured banks to seek business opportunities in They wanted to really shut it down. conceived bills ever to come before this poor areas. They wanted to make sure credit body, simply because it does not pay Since its enactment in 1977, financial insti- unions could not do their work behind attention to the majority of the Amer- tutions have made more than $1 trillion in the counter by contracting with third ican people who have, on average, less loans in low income communities, more than parties to handle their check-clearing than $2,000 in any financial institution 90% of them in the past seven years. As a re- processes. If my colleagues want to go in this country. sult, neighborhoods have improved as more further, fine, deal with the credit To anyone listening tonight I say, residents have been able to buy homes and unions and small banks of this country Put your money in the credit unions. more small businesses have succeeded. The and tell them they cannot do their They are owned by you and they will CRA has been an enormous success. business any longer. take care of you. Vote against this bill. We should be expanding the reach of the I think some people have missed it. ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE CRA, not restricting it. Unfortunately, the Con- Big bank bill? This bill, for the first The SPEAKER pro tempore (Mrs. ference Report moves in the wrong direction time, provides 15-year fixed rate inter- EMERSON). The Chair must remind on CRA. It fails to adequately protect and pro- est rate loans for small businesses, Members that under the rules of the mote access to capital and credit and fails to rural, and agricultural communities House, remarks in debate should be di- capitalize on our opportunity to expand the through small hometown banks. Small rected to the Chair and not to others, CRA. banks shut down Wal-Mart. If my col- outside the chamber, in the second per- While the CRA language in the Conference leagues want to make sure Wal-Mart in son. Report clearly is an improvement over the lan- your town soon, running the hardware Mr. SESSIONS. Madam Speaker, I guage in the bill passed by the Senate, the department, running the tire depart- yield 1 minute to the gentleman from

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Salt Lake City, Utah (Mr. COOK), a enough privacy protection for con- Ms. JACKSON-LEE of Texas. Madam member of the Committee on Banking sumers, and I would like to address Speaker, I thank the gentleman from and Financial Services. some of those concerns. Current law, Massachusetts for yielding me this Mr. COOK. I thank my colleague today, current law provides no protec- time, and I rise to support the rule and from Texas for yielding the time, and I tion for consumers’ financial privacy. to support this bill. want to say, Madam Speaker, that I None. Zero. Zip. A bank under current This is not the best bill that we could rise in support of this bill and thank law can sell personal financial informa- have had. There are many problems the Committee on Rules, the Com- tion to whomever they want, whenever with this bill. But this bill has been mittee on Commerce, and my chair- they want, and however they want. long in coming. And I want to thank man, the gentleman from Iowa (Mr. They can even sell a customer’s ac- those who fought hard and fought long LEACH), along with my other Com- count number. There is nothing a cus- for some of the provisions covering the mittee on Banking and Financial Serv- tomer can do. Community Reinvestment Act provi- ices colleagues for their tireless efforts With the enactment of this legisla- sions. to create a rational and balanced struction, for the first time ever, companies CRA, the Community Reinvestment ture to bring our country’s financial will be required to fully disclose how Act, works in my community. The services finally into the 21st century. customer information will be used; and Tejano Center for Community Con- I commend the conference committee for the first time ever, companies will cerns was able to build some 15 homes for their agreement on the delicate have to allow consumers to say no to and build a school for high school drop- compromise, ensuring adequate con- the sharing of personal information outs. But we have not gone far enough. sumer privacy protections and rein- with third parties. I believe we should come back to the Could we have done better? Abso- forcing important CRA provisions. The floor of the House and deal with the lutely. But this is a step in the right enormous benefits to the economy and sunshine provisions and, yes, I believe direction. Today, we have the oppor- consumers of financial services will be that the reporting provisions dealing seen for years to come. tunity to enact a bill with new privacy protections. with smaller banks should be addressed This legislation is long overdue and again as well. quite historic. Modernizing the regula- Madam Speaker, I would also like to thank the ranking member, the gen- I think the President of the United tion of the U.S. financial services in- States needs to join this Congress in dustry is a landmark opportunity for tleman from New York (Mr. LAFALCE), and the chairman, the gentleman from the need for a privacy bill and he this Congress to prove that we are should sign a freestanding privacy bill. dedicated to providing individuals and Iowa (Mr. LEACH) for the wonderful leadership they have shown, and I urge Because, although we have a study businesses with lower costs and greater that determines whether or not a con- convenience, ensuring that the U.S. re- support of this rule and the bill. Mr. MOAKLEY. Madam Speaker I sumer’s privacy will be violated, we do mains the economic global leader. need a freestanding privacy bill to en- I urge my colleagues to join me in yield 1 minute to the gentleman from sure that the privacy of Americans will support of the rule and final passage. Washington (Mr. INSLEE). Mr. MOAKLEY. Madam Speaker, I (Mr. INSLEE asked and was given truly be protected. But I am pleased that there is no dis- yield 1 minute to the gentlewoman permission to revise and extend his remarks.) crimination against those who have from New York (Mrs. MALONEY). Mrs. MALONEY of New York. Madam Mr. INSLEE. Madam Speaker, I too suffered domestic violence if they seek Speaker, I rise in support of the rule want to compliment the gentleman credit opportunities and I am further from New York (Mr. LAFALCE) and the and the bill. After 66 years, it is time pleased that there is protection for gentleman from Iowa (Mr. LEACH) for for Congress to retire Glass-Steagall. women who are seeking access to cred- their work on this bill. They both The markets already have. it sources; and I also am delighted to Today’s current confused state of fi- showed courtesy and professionalism. see that there is a provision that deals But I must speak against this bill, nancial services law is not the result of with defermining whether there is a because the way this bill is written to- any policy decision by Congress, rather malicious securing of the financial night it is a clear and present danger records of consumers thereby violating it is the result of chipping away at to the existing privacy rights of Amer- Glass-Steagall by unelected regulators a consumer’s privacy. It is not a per- ica. This bill is the single greatest fect bill, but it is a bill that we should and court decisions. threat to Americans’ basic and funda- The legislation before us will bring vote for and create new opportunities mental privacy interests of any legisla- for all Americans. order to the law, to reflect the reality tion, considered by any legislative of today’s financial markets. Advances Mr. MOAKLEY. Madam Speaker, will body in America, ever. the Chair inform us of the remaining in technology are presenting financial The reason is, and I want my col- companies with new opportunities to time for both sides? leagues to imagine this, because this is The SPEAKER pro tempore. The gen- better serve their customers here at what is going to happen if this bill be- tleman from Massachusetts (Mr. MOAK- home and to compete for business comes law. When these mega-affiliates LEY) has 11⁄2 minutes remaining, and around the world. Without congres- are allowed to exist, what is going to the gentleman from Texas (Mr. SES- sional action establishing a consistent happen is our bank accounts, the first SIONS) has 1 minute remaining. legal framework in the United States, time we happen to get $5,000 cash in Mr. MOAKLEY. Madam Speaker, I we risk losing international opportuni- our bank accounts, a computer will yield the balance of my time to the ties to other nations. spit that information out to the affili- While on the whole I believe the ated stock broker who will call us at 7 gentleman from New York (Mr. HIN- Gramm-Leach-Bliley act promotes o’clock at night and try to sell us CHEY). needed legal consistency and makes hotstock.com stock. And the second Mr. HINCHEY. Madam Speaker, one United States companies more com- thing that will happen is every single thing about this rule is, it is consistent petitive, it could have been improved check we have written is going to go to with the bill. I will have an oppor- in several areas. the affiliated life insurance company tunity to speak against the bill short- I supported stronger CRA and pri- so they can profile our life-style to de- ly, but the rule itself is totally con- vacy provisions than those in the bill cide whether to sell us life insurance. sistent with the bill. The rule is unfair before us; but, overall, I support this We are going backwards on privacy. as the bill is unfair. bill and I urge a ‘‘yes’’ vote. We are creating a new organism. These We have 1 hour to debate the most Mr. MOAKLEY. Madam Speaker, I affiliates will threaten our privacy. We comprehensive change in financial yield 1 minute to the gentlewoman should reject this bill. services legislation in the Nation in from Oregon (Ms. HOOLEY). Mr. MOAKLEY. Madam Speaker, I the last 65 years. This is one of the Ms. HOOLEY of Oregon. Madam yield 1 minute to the gentlewoman most important bills to come before Speaker, I rise in support of the rule from Texas (Ms. JACKSON-LEE). this Congress in decades, and we are and the bill. (Ms. JACKSON-LEE of Texas asked going to spend 1 hour this evening de- Many of my colleagues are concerned and was given permission to revise and bating here on the floor of the House of that this bill does not enact strong extend her remarks.) Representatives.

VerDate 29-OCT-99 06:43 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00043 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.111 pfrm02 PsN: H04PT1 H11526 CONGRESSIONAL RECORD — HOUSE November 4, 1999 And that 1 hour is divided thusly: The previous question was ordered. Pitts Sessions Thomas Pombo Shadegg Thompson (CA) two-thirds of that hour go to the peo- The SPEAKER pro tempore. The Pomeroy Shaw Thompson (MS) ple who are for the bill; only one-third question is on the resolution. Porter Shays Thornberry of the hour goes to the people who are The question was taken; and the Portman Sherman Thune opposed to it. That is wholly consistent Price (NC) Sherwood Tiahrt Speaker pro tempore announced that Pryce (OH) Shimkus Toomey with the objectivity and fairness con- the noes appeared to have it. Quinn Shows Towns tained within the bill itself. RECORDED VOTE Radanovich Simpson Traficant This is a farce, it is a mistake, it is Rahall Sisisky Turner Mr. SESSIONS. Madam Speaker, I a day that we will rue. We are con- Ramstad Skeen Upton demand a recorded vote. Rangel Skelton Velazquez structing here an apparatus that will A recorded vote was ordered. Regula Smith (MI) Vento come back and bite us severely. Reyes Smith (NJ) Vitter The vote was taken by electronic de- b Reynolds Smith (TX) Walden 2100 vice, and there were—ayes 335, noes 79, Riley Smith (WA) Walsh This country will suffer from it. Un- not voting 20, as follows: Rodriguez Snyder Wamp Roemer Souder Watkins told millions of our citizens will suffer [Roll No. 569] Rogers Spence Watts (OK) from the contents of this bill. We will AYES—335 Rohrabacher Spratt Weiner look back on the way we debated it, Ros-Lehtinen Stabenow Weldon (FL) Aderholt Dooley Johnson, Sam the short shrift we gave to the consid- Rothman Stenholm Weldon (PA) Allen Doolittle Jones (NC) Roukema Strickland Weller eration of all the momentous con- Archer Doyle Kasich Royce Stump Wexler sequences of this bill and the unfair- Armey Dreier Kelly Ryan (WI) Stupak Weygand ness with which we allocated the time Bachus Duncan Kind (WI) Ryun (KS) Sununu Whitfield Baird Dunn King (NY) Sabo Sweeney Wicker and we will regret it. We will regret it, Baker Ehlers Kingston Sandlin Talent Wilson the public policy point of view and po- Baldacci Ehrlich Kleczka Sanford Tancredo Wise litically. This is a big, serious mistake. Ballenger Emerson Klink Sawyer Tanner Wolf Mr. SESSIONS. Madam Speaker, I Barcia Engel Knollenberg Saxton Tauscher Wynn Barr English Kolbe Schaffer Tauzin Young (AK) yield 1 minute to the gentleman from Barrett (NE) Eshoo Kuykendall Sensenbrenner Terry Young (FL) Henderson, Tennessee (Mr. BRYANT). Bartlett Etheridge LaFalce Mr. BRYANT. Madam Speaker, I Barton Everett LaHood NOES—79 Bass Ewing Lampson thank the gentleman from Texas for Abercrombie Filner Mink Bateman Fletcher Largent Ackerman Gejdenson Oberstar yielding me the time. Bentsen Foley Latham Andrews Gutierrez Obey Madam Speaker, I rise in strong sup- Berkley Forbes LaTourette Baldwin Hastings (FL) Owens port of this rule and S. 900, which Berman Ford Lazio Barrett (WI) Hinchey Payne Berry Fossella Leach passed the other body today by a vote Becerra Inslee Pelosi Biggert Fowler Levin Blagojevich Jackson (IL) Phelps of 90–8. Bilbray Franks (NJ) Lewis (CA) Brady (PA) Jefferson Rivers Although this legislation addresses Bilirakis Frelinghuysen Lewis (KY) Brown (FL) Jones (OH) Roybal-Allard the needs of the financial community, Bishop Frost Linder Capuano Kaptur Rush Bliley Gallegly LoBiondo consumers are the big winners. If we Carson Kildee Sanchez Blumenauer Ganske Lowey Clay Kilpatrick Sanders pass this conference report, consumers Blunt Gekas Lucas (KY) Condit Kucinich Schakowsky will be able to open a checking ac- Boehlert Gibbons Lucas (OK) Conyers Lantos Scott Boehner Gilchrest Maloney (CT) Costello Lee Serrano count, secure a retirement plan, pur- Bonilla Gillmor Maloney (NY) chase an insurance policy, and make Coyne Lewis (GA) Slaughter Bonior Gilman Manzullo Cummings Lipinski Taylor (MS) investments all with one company Bono Gonzalez Martinez Danner Lofgren Thurman without having to go to several dif- Borski Goode Mascara Davis (IL) Luther Tierney Boswell Goodlatte Matsui ferent financial services companies. DeFazio Markey Udall (NM) Boucher Goodling McCarthy (MO) Delahunt McDermott Visclosky Our rural communities will benefit Boyd Gordon McCarthy (NY) Dingell McKinney Waters from the provisions to reform the Fed- Brady (TX) Goss McCollum Dixon Meek (FL) Watt (NC) eral Home Loan Bank. This provision Brown (OH) Graham McCrery Edwards Meeks (NY) Waxman Bryant Granger McGovern gives small banks greater access to Evans Millender- Woolsey Burr Green (TX) McHugh Farr McDonald Wu funds for making loans to small busi- Burton Green (WI) McIntosh Fattah Miller, George nesses and small farmers while estab- Buyer Greenwood McIntyre Callahan Gutknecht McKeon NOT VOTING—20 lishing an improved capital structure Calvert Hall (OH) McNulty Bereuter Larson Scarborough for the system. Camp Hall (TX) Meehan Crane McInnis Shuster Campbell Hansen Menendez I urge my colleagues to join together Dickey Mollohan Stark Canady Hastert Metcalf to vote for this bill and this conference Frank (MA) Norwood Stearns Cannon Hastings (WA) Mica Gephardt Paul Taylor (NC) report to move the financial services Capps Hayes Miller (FL) Kanjorski Rogan Udall (CO) industry forward and give our con- Cardin Hayworth Miller, Gary Kennedy Salmon sumers the choices they need in to- Castle Hefley Minge day’s world. Chabot Herger Moakley b 2125 Chambliss Hill (IN) Moore GENERAL LEAVE Chenoweth-Hage Hill (MT) Moran (KS) Mr. GEJDENSON and Mr. FATTAH Mr. SESSIONS. Madam Speaker, I Clayton Hilleary Moran (VA) changed their vote from ‘‘aye’’ to ‘‘no.’’ ask unanimous consent that all Mem- Clement Hilliard Morella Mr. HILLIARD changed his vote from Clyburn Hinojosa Murtha bers may have 5 legislative days within Coble Hobson Myrick ‘‘no’’ to ‘‘aye.’’ which to revise and extend their re- Coburn Hoeffel Nadler So the resolution was agreed to. marks and to include extraneous mate- Collins Hoekstra Napolitano The result of the vote was announced Combest Holden Neal as above recorded. rial on H. Res. 355. Cook Holt Nethercutt The SPEAKER pro tempore (Mrs. Cooksey Hooley Ney A motion to reconsider was laid on EMERSON). Is there objection to the re- Cox Horn Northup the table. Cramer Hostettler Nussle quest of the gentleman from Texas? b 2130 There was no objection. Crowley Houghton Olver Cubin Hoyer Ortiz Mr. LEACH. Madam Speaker, pursu- Mr. SESSIONS. Madam Speaker, I Cunningham Hulshof Ose yield myself such time as I may con- Davis (FL) Hunter Oxley ant to House Resolution 355, I call up sume. Davis (VA) Hutchinson Packard the conference report to accompany Madam Speaker, I urge support of Deal Hyde Pallone the Senate bill (S. 900) to enhance com- DeGette Isakson Pascrell this fair rule for the hard work that DeLauro Istook Pastor petition in the financial services indus- has taken place during this year of the DeLay Jackson-Lee Pease try by providing a prudential frame- 106th Congress. DeMint (TX) Peterson (MN) work for the affiliation of banks, secu- Madam Speaker, I yield back the bal- Deutsch Jenkins Peterson (PA) rities firms, insurance companies, and Diaz-Balart John Petri ance of my time, and I move the pre- Dicks Johnson (CT) Pickering for other financial service providers, vious question on the resolution. Doggett Johnson, E. B. Pickett and for other purposes.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00044 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.114 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11527 The Clerk read the title of the Senate in many ways. The particular approach Counsel’s office Jim Wert and Steve bill. taken by the committees of jurisdic- Cope. The SPEAKER pro tempore (Mrs. tion is one based upon the following I would also like to express apprecia- EMERSON). Pursuant to House Resolu- premises: 1, that no parts of America, tion for the contributions of Virgil tion 355, the conference report is con- whether an inner city or rural hamlet, Mattingly of the Federal Reserve, Har- sidered as having been read. should be denied access to credit; 2, vey Goldschmidt of the SEC, Undersec- (For conference report and state- that in a free market economy, expand- retary Gensler of the Treasury, Jerry ment, see proceedings of the House of ing competition and finance should in- Hawke, our comptroller, and Donna Tuesday, November 2, 1999, at page crease consumer access to a wider vari- Tanoue, chair of the FDIC. H11255.) ety of products at the most affordable Let me also make a comment about The SPEAKER pro tempore (Mrs. prices; 3, that while competition should process. This bill has been led in the EMERSON). The gentleman from Iowa be opened up in finance, the American Senate by an extraordinarily strong (Mr. LEACH) and the gentleman from model of separating commerce from chairman, PHIL GRAMM of Texas. While New York (Mr. LAFALCE) each will con- banking should be maintained; 4, the the House approach has differed some- trol 30 minutes. privacy protections of American con- what with that of the Senate, the big Mr. DINGELL. I rise to inquire, sumers should be expanded in unprece- picture is that the Senate acted deci- Madam Speaker, if my good friend, the dented ways; 5, that the public protec- sively in a timely manner in legisla- gentleman from New York (Mr. LA- tions contained in the prudential regu- tion, the framework for which has been FALCE) or the gentleman from Min- latory regime should be rationalized close to and is now identical with that nesota (Mr. VENTO), who is claiming and made stronger; 6, that the inter- offered this evening to the House. Each time in opposition to the bill is in fact national competitiveness of American side has moved to the other, and the opposed to the bill. firms should be bolstered. end product is overwhelmingly in the The SPEAKER pro tempore. Is the These are the premises and the ef- public interest. gentleman from New York (Mr. LA- fects of this legislation. If there is an It has been my view from the begin- FALCE) in favor of the conference re- institutional tilt to the balanced ap- ning of consideration of financial report? proach taken in this bill, it is to and form several Congresses back that few Mr. LAFALCE. I am strongly in favor for smaller institutions. In a David and legislative efforts require more bipar- of the conference report. Goliath competitive world, this legisla- tisan and biinstitutional cooperation The SPEAKER pro tempore. For that tion is the community bankers’ and than this one. The need for a coopera- reason, pursuant to clause 8(d)(2) of independent insurance agents’ sling- tive approach has become more self- rule XXII, the gentleman from Iowa shot. They and the customers they evident as issues of the day have be- (Mr. LEACH), the gentleman from New serve will be empowered to a greater come more personalized and partisan. York (Mr. LAFALCE), and the gen- extent than under the status quo or In this light, I would like to thank tleman from Michigan (Mr. DINGELL) any alternative modernization ap- the minority as well as the majority each will control 20 minutes. proach. leadership of the House, Secretary Mr. DINGELL. Madam Speaker, I Madam Speaker, I would simply con- Summers as well as Chairman Green- rise to claim time in opposition to the clude by expressing gratitude to all the span and Chairman Levitt, for their legislation. participants in this process, particu- The SPEAKER pro tempore. The profound contributions to this legisla- larly my friends, the gentleman from Chair will recognize the gentleman tion. It is truly bipartisan, supported New York (Mr. LAFALCE) and the gen- by the executive branch and the Fed- from Michigan (Mr. DINGELL) for 20 tleman from Minnesota (Mr. VENTO), minutes as part of the debate. eral Reserve. The Chair recognizes the gentleman their Senate counterpart, PAUL SAR- Madam Speaker, the legislation before the BANES; the gentleman from Virginia from Iowa (Mr. LEACH). House is historic win-win-win legislation, up- Mr. LEACH. Madam Speaker, I ask (Mr. BLILEY) and the gentleman from dating America's financial services system for unanimous consent to divide the time Ohio (Mr. OXLEY) for their leadership the 21st Century. that I have been authorized in half and in the Committee on Commerce, and It's a win for consumers who will benefit share it with the gentleman from Vir- the gentleman from Michigan (Mr. DIN- from more convenient and less expensive fi- GELL ginia (Mr. BLILEY), the distinguished ) and the gentleman from Massa- nancial services, from major consumer protec- chairman of the Committee on Com- chusetts (Mr. MARKEY) for their con- tion provisions and from the strongest privacy merce. structive dissent. protections ever considered by the Congress. The SPEAKER pro tempore. Is there In the Committee on Banking and Fi- It's a win for the American economy by objection to the request of the gen- nancial Services, I am particularly modernizing the financial services industry and tleman from Iowa? grateful for the patience of so many saving an estimated $18 billion annually in un- There was no objection. Members, but I am obligated to cite in necessary costs. (Mr. LEACH asked and was given per- particular the wisdom and choice coun- And, it's a win for America's competitive po- mission to revise and extend his re- sel of the vice chairman, the gen- sition internationally by allowing U.S. compa- marks.) tleman from Florida (Mr. MCCOLLUM), nies to compete more effectively for business Mr. LEACH. Madam Speaker, I yield and an exceptionally strong team of around the world and create more financial myself such time as I may consume. advice the gentleman from Louisiana services jobs for Americans. Madam Speaker, yes, this is a his- (Chairman BAKER), the gentlewoman It would be an understatement to say that toric day. If the House follows the Sen- from New Jersey (Mrs. ROUKEMA), the this has not been an easy, nor a quickly-pro- ate lead where on a 90 to 8 vote this gentleman from Alabama (Mr. BACH- duced piece of legislation to bring before the conference report was adopted earlier US), the gentlemen from New York (Mr. House. today, the landscape for delivery of fi- LAZIO and Mr. KING). To them I express For many of the 66 years since the Con- nancial services will shift. American great personal gratitude for help, and gress enacted the Glass-Steagall Act in 1933 commerce will be made more competi- profound apologies where I have dif- to separate commercial banking from invest- tive, and the American consumer will fered or could not help them. ment banking, there have been proposals to be better served. As only Members understand, Con- repeal the act. The Senate has thrice passed Under current law, financial institu- gress has many dimensions, and this repeal legislation and last year the House ap- tions, banks, insurance companies, se- bill would not have been made possible proved the 105th Congress version of H.R. 10. curities firms, are constrained in mar- without the input of a thoroughly pro- The bill before us today is the result of ket niches. Under the new legislative fessional staff. At the risk of oversight, months and months of tough negotiation and framework, each industry will be al- let me thank on behalf of the House compromise: among different congressional lowed to compete head to head with a Tony Cole, Gary Parker, Laurie Schaf- committees, different political parties, different complete range of products and serv- fer, Jim Clinger, John Butler, John industrial groupings and different regulators. ices. Land, Natalie Nguyen, Alison Watson, No single individual or group got allÐor even Over the decades, modernization ap- David Cavicke, Jeanne Roslanowick, mostÐof what it wanted. Equity and the public proaches have been offered many times and our counsels at the Legislative interest have prevailed.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00045 Fmt 7634 Sfmt 9920 E:\CR\FM\K04NO7.122 pfrm02 PsN: H04PT1 H11528 CONGRESSIONAL RECORD — HOUSE November 4, 1999 It should be remembered that while the 4. Directs relevant Federal and State regu- The reason this restriction on commerce work of Congress inevitably involves adjudi- lators to establish comprehensive standards and banking is being expanded is several fold. cating regulatory turf battles or refereeing infor ensuring the security and confidentiality of First, savings associations that once were ex- dustrial groups fighting for their piece of the consumers' personal information maintained clusively devoted to providing housing loans, pie, the principal work of Congress is the work by financial institutions, and to protect against have become more like banks, devoting more of the peopleÐto ensure that citizens have ac- unauthorized access to or use of such infor- of their assets to consumer and commercial cess to the widest range of products at the mation. loans. Hence, the appropriateness for com- lowest possible price; that taxpayers are not 5. Accords supremacy to State laws that parability between the commercial bank and put at risk; that large institutions are able to give consumers greater privacy protections thrift charter is self-evident. compete against their larger international ri- than the provisions in the Act. Second, this provision must be viewed in vals; and that small institutions can compete 6. Makes it a federal crime, punishable by light of the history of past legislative efforts af- effectively against big ones. up to five years in prison, to obtain or attempt fecting the banking and thrift industries. The We address this legislation in the shadow of to obtain private customer financial information S&L industry has tapped the U.S Treasury for major, ongoing changes in the financial serv- through fraudulent or deceptive means. Such $140 billion to clean up the 1980s S&L crisis. ices sector, largely the result of technological means could include misrepresenting the iden- In 1996, savings associations received a multi- innovations and decisions by the courts and tity of the person requesting the information or billion dollar tax break to facilitate their conver- regulators, who have stepped forward in place otherwise tricking an institution or customer sion to a bank charter. Also, in 1996, the of Congress. Many of us have concern about into making unwitting disclosures of such infor- S&Ls tapped the banking industry for $6 to $7 certain trends in finance. Whether one likes or mation. billion to help pay over the next 30 years for dislikes what is happening in the marketplace, In terms of enforcement, the Act subjects fi- their FICO obligations, that part or the S&L bailout costs that remained with the thrift in- the key is to ensure that there is fair competi- nancial institutions that violate the new con- dustry. tion among industry groups and protection for sumer privacy protections to a wide range of possible sanctions, including: Termination of During this time period, Congress has liber- consumers. In this regard, this bill provides for alized the qualified thrift lender test and the re- functional regulation with state and federal FDIC insurance; implementation of Cease and Desist Orders barring policies or practices strictions on the Federal savings association bank regulators overseeing banking activities, deemed violations of the Act's privacy provi- charter. These legislative changes are in addi- state and federal securities regulators gov- sions; removal of institution-affiliated parties, tion to the numerous advantages that the in- erning securities activities and the state insur- including bank directors and officers, from dustry has historically enjoyed, such as the ance commissioners looking over the oper- their positions, and permanent exclusion of broad preemption rights over state laws and ations of insurance companies and sales. such parties from further employment in the more liberal branching laws. The benefits to consumers in this bill cannot banking industry; and civil money penalties of The conference report continues the Con- be stressed more. First, they will gain in im- up to $1,000,000 for an individual or the lesser gressional grant of benefits to the thrift indus- proved convenience. This bill allows for one- of $1,000,000 or 1% of the total assets of the try by repealing the SAIF special reserve, pro- stop shopping for financial services with bank- financial institution. viding voluntary membership by Federal saving, insurance and securities activities being The other major beneficiaries of this legisla- ings associations in the Federal Home Loan available under one roof. tion are America's small community financial Bank System, allowing state thrifts to keep the Second, consumers will benefit from in- institutions. In this regard, I'd like to empha- term ``Federal'' in their names, and allowing creased competition and the price advantages size the philosophic underpinnings of this leg- mutual S&L holding companies to engage in that competition produces. islation. Americans have long held concerns the same activities as stock S&L holding com- Third, there are increased protections on in- about bigness in the economy. As we have panies. surance and securities sales and a required seen in other countries, concentration of eco- Opponents of this provision correctly argue disclosure on ATM machines and screens of nomic power does not automatically lead to in- that commercial companies that have acquired bank fees. creased competition, innovation or customer thrifts (so-called unitary thrift holding compa- Fourth, the Federal Home Loan Bank reform service. nies) before and after the S&L debacles of the provisions expand the availability of credit to But the solution to the problem of con- 1980s have not, for the most part, caused tax- farmers and small businesses. centration of economic power is to empower payer losses. However, the Federal deposit in- Fifth, the bill also contains important con- our smaller financial institutions to compete surance fund that was bailed out by the tax- sumer privacy protections. against large institutions, combining the new payers covered the entire thrift industry includ- Among other things, the bill: powers granted in this legislation with their ing the unitary thrift holding companies, and 1. Bars financial institutionsÐincluding personal service and local knowledge in order the $6 to $7 billion of thrift industry liabilities banks, savings and loans, credit unions, secu- to maintain and increase their market share. that were transferred to the commercial bank- rities firms and insurance companiesÐfrom For many communities, retaining their local, ing industry benefited unitaries as well as disclosing customer account numbers or ac- independent bank depends upon granting that other S&Ls. The transfer was made with the cess codes to unaffiliated third parties for tele- bank the power to compete against mega-gi- understanding that sharing liabilities would be marketing or other direct marketing purposes. ants which are being formed under the current matched by ending special provisions for the 2. Enables customers of financial institu- regulatory and legal framework. S&L industry and that comparable regulation tions, for the first time, to ``opt out'' of having The conference report provides community would ensue. their personal financial information shared with banks with the tools to compete, not only The bill benefits smaller, community banks unaffiliated third parties, subject to certain ex- against large mega-banks but also against and the customers they serve in the following ceptions related largely to the processing of new technologies such as Internet banking. additional ways: customer transactions. A financial institution Banks which stick with offering the same old 1. Federal Home Loan Bank System re- would be permitted to share information with accounts and services in the same old ways forms. The FHLB charter is broadened to an unaffiliated third party to perform services will find their viability threatened. Those that allow community banks to borrow for small or functions on behalf of the financial institu- innovate and adapt under the provisions of business and family farm lending. The implica- tion and to enter into certain joint marketing this bill will be extraordinarily well positioned to tions of this FHL 8 mission expansion are ex- arrangements for financial products or serv- grow and serve their customer base. traordinary. In rural areas, it allows, for the ices, as long as the institution fully discloses Large financial institutions can already offer first time, community banks to have access to such activity to its customers and enters into a variety of services. But community banks long-term capital comparable to the Farm a contractual agreement requiring the third are usually not large enough to utilize legal Credit System, which like the Federal Home party to maintain the confidentiality of any loopholes like Section 20 affiliates or the cre- Loan Bank System is empowered as a Gov- such information. ation of a unitary thrift holding company to ernment Sponsored Enterprise to tap national 3. Requires all financial institutions to dis- which large financial institutionsÐcommercial credit markets at near Treasury rates. The bill close annually to all customers, in clear and as well as financialÐhave turned. thus creates greater competitive equity be- conspicuous terms, its policies and procedures One of the most controversial provisions tween community banks and the Farm Credit for protecting customers' nonpublic personal prohibits commercial entities from establishing System and greater credit cost savings for information, including its policies and practices thrifts in the future and allows for those com- farmers. With regard to the small business regarding the disclosure of information to both mercially owned thrifts currently in existence to provision, the same principle applies. If larger non-affiliated third parties and affiliated enti- be sold only within the financial community, financial institutions choose to emphasize rela- ties. the same rules which apply to banks. tionships with larger corporate and individual

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00046 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.090 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11529 customers, the ability of community banks to tions on equal terms or growth and economic ing only if the company has a securities affil- pledge small business loans as collateral for stability in rural America will be jeopardized. iate, or a registered investment adviser that FHLB System advances will allow them to Several other sections of the legislation also performs these functions for an affiliate insur- serve comprehensively a small business and deserve comment: ance company. In addition, the Act allows a fi- middle class family market niche. Most impor- COMPLEMENTARY ACTIVITIES nancial holdings company to retain a merchant tantly, if the present trend continues of Amer- The Act permits the Federal Reserve Board banking investment for a period of time to en- ican savers putting less money in banks and to allow financial holding companies to engage able the sale or disposition on a reasonable more in non-insured deposit accounts, such as in activities that, while not financial in nature basis and generally prohibits the company money-market mutual funds, this FHLB reform or incidental to financial activities, are com- from routinely managing or operating a non- assures community banks the liquidityÐat plementary to financial activities. The Act pro- financial company held as a merchant banking competitive costsÐthey will need for genera- vides that this authority be exercised on a investment. tions to come. case-by-case basis under the application pro- Importantly, the Act also gives the Federal 2. Additional Powers. In recent years, so- cedure currently applicable under the Bank Reserve and the Treasury the authority to phisticated money-center banks have devel- Holding Company Act to nonbanking pro- jointly develop implementing regulations on oped powers, under Federal Reserve and posals by bank holding companies. This pro- merchant banking activities that they deem ap- OCC rulings, that have allowed them to offer cedure requires the Board to consider whether propriate to further the purposes and prevent products which community banks in many the public benefits of allowing the financial evasions of the Act and the Bank Holding states are frequently precluded from offering. holding company to conduct the proposed Company Act. Under the authority, the Federal Reserve and Treasury may define relevant This bill allows community banks all the pow- complementary activity outweigh potential ad- terms and impose such limitations as they ers as a matter of right that larger institutions verse effects. This would require the Board to deem appropriate to ensure that this new au- have accumulated on an ad hoc basis. In ad- consider whether the proposal is consistent thority does not foster conflicts of interest or dition, community banks for the first time are with the purposes of the Bank Holding Com- undermine the safety and soundness of de- authorized to underwrite municipal revenue pany Act. It is expected that complementary pository institutions or the Act's general prohi- bonds. activities would not be significant relative to bitions on the mixing of banking and com- 3. Regulatory relief. The legislation provides the overall financial activities of the organiza- merce. modest regulatory relief for banks with assets tion. under $250 million. Those with an ``out- SECURITIES ACTIVITIES OF FINANCIAL HOLDING FOREIGN BANKS standing'' Community Reinvestment Act rating COMPANIES For foreign banks that wish to be treated as will be examined for compliance only every Currently, bank holding companies are gen- financial holding companies, Section 103 re- five years, while those with a ``satisfactory'' erally prohibited from acquiring more than five quires that the Federal Reserve Board estab- rating will be reviewed every four years. percent of the voting stock or any company 4. Special provisions. For a bill of this mag- lish capital and management standards com- that conducts activities that are not closely re- nitude, there are surprisingly few special inter- parable to those required for U.S. organiza- lated to banking. I would like to make clear est provisions. The Congress held the line to tions, giving due regard to national treatment that by permitting financial holding companies assure that breaches of imprudent regulation and equality of competitive opportunity. The to engage in underwriting, dealing and market were not provided to specific institutions, purpose of the provision is to ensure that for- making. Congress intends that the five-percent therefore protecting the deposit insurance eign banks continue to be provided national limitation no longer applies to bona fide securi- fund, to which community banks disproportion- treatment, receiving neither advantages nor ties underwriting, dealing and market-making ately provide resources, and the public, which disadvantages as compared with U.S. organi- activities. In addition, voting securities held by is the last contingency backup. zations. Accordingly, foreign banks that meet a securities affiliate of a financial holding com- 5. Prohibition on deposit production offices. comparable standards are entitled to the full pany in any underwriting, dealing or market- The legislation expands the prohibition on de- benefits of the Act. making capacity would not need to be aggre- posit production offices contained in the The Act eliminates the application process gated with any shares that may be held by Reigle-Neal Interstate bill to include all for financial holding companies that meet the other affiliates of the financial holding com- branches of an out-of-state bank holding com- new criteria relating to capital and manage- pany. This is necessary to allow bank-affiliated pany. This prohibition ensures that large multi- ment. This is an important provision; it en- securities firms to conduct securities activities state bank holding companies do not take de- hances efficiency and reduces regulatory bur- in the same manner and to the same extent posits from communities without making loans den but it also has certain consequences. One as their nonbank affiliated competitors, which within them. is that the Federal Reserve Board no longer is one of the principal objectives of this legisla- 6. Competition. The powers under the Act has an application process through which to tion. I would also like to make clear that the will provide community banks a credible basis determine adherence by foreign banks to cap- elimination of the five-percent restriction is in- to compete with financial institutions of any ital and management standards. Foreign tended to apply to bona fide securities under- size or any specialty and, in addition, to offer, banks operate in different home country regu- writing, dealing and market-making activities in similar ways, services that new entrants into latory environments, with differing accounting and not to permit financial holding companies financial markets, such as Internet or com- and reporting standards. In the past, the and their affiliates to control non-financial firms puter software companies, may originate. Board has used the applications process to in ways that are otherwise impermissible In a competitive world in which consolidation assess the capital levels of individual banks under this Act. has been the hallmark of the past decade, the seeking to expand their operations in the EFFECTIVE DATE FOR ENGAGING IN NEW ACTIVITIES framework of this bill assures that community United States to ensure the equivalency of New Section 4(k)(4) of the Bank Holding banks have the tools to remain competitive. If their capital to that required to U.S. banking Company Act, as added by Section 103 of the larger institutional arrangements ever become organizations. Section 103 is intended to give bill, explicitly authorizes bank holding compa- consumer-unfriendly or geographically-con- the Board the ability to set comparable stand- nies that file the necessary certifications to en- centrated in their product offerings, the powers ards and establish a process for determining a gage in a laundry list of financial activities. reserved for community banks will ensure their foreign bank's adherence to those standards These activities are permissible upon the ef- competitive viability and, where needed, before the bank may take advantage of the fective date of the Act without further action by incentivize the establishment of new commu- Act's provisions. Such a determination could the regulators. However, refinements in rule- nity-based institutions. be accomplished in a pre-clearance evaluation making may be necessary and desirable going What the new flexibility provided community conducted in connection with the foreign forward. For example, the Federal Reserve banks means is that consumers and small bank's certification to be treated as a financial Board and the Treasury Department are spe- businesses in the most rural parts of America holding company and thereby attain the bene- cifically authorized to jointly issue rules on will be provided access to the most up-to-date, fits of the new powers. merchant banking activities. If the regulators sophisticated financial products in the world, MERCHANT BANKING determine that any such rulemaking is nec- delivered by people they know and trust. With- One important provision of the Act is that it essary, they should act expeditiously. out financial modernization legislation, the would authorize financial holding companies to In closing, while the financial modernization trend towards commerce and banking, as well engage in merchant banking activities but sub- legislation provides for increased competition as more faceless interstate banking, will be ject to a number of prudential limitations. For in the delivery of financial products, it repudi- unstoppable. Community based institutions example, the Act would permit a financial ates the Japanese industrial model and fore- need to be able to compete with larger institu- holding company to engage in merchant bank- stalls trends toward mixing commerce and

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00047 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.094 pfrm02 PsN: H04PT1 H11530 CONGRESSIONAL RECORD — HOUSE November 4, 1999 banking. The signal breach of banking and Let us not kid ourselves, a lot of spin It does not reform deposit insurance commerce that exists in current law is is being put on what has gone on. But or antitrust implementation and en- plugged, which has the effect of both stopping this is largely the House product that forcement. Woe to the American people the potential ``keiretzuing'' of the American we are witnessing today in the con- when they have to pick up the tag for economy and protecting the viability, and ference report, because the conference one of the failures that is going to therefore the value, of community bank char- report, like the initial House bill, occur when competition disappears and ters. At many stages in consideration of bank strengthens the national bank charter, prices shoot up and misbehavior or un- modernization legislation, powerful interest contains strong CRA and privacy provi- wise behavior takes place. groups attempted to introduce legislative lan- sions, and that is why the administra- It also authorizes banks’ direct oper- guage which would have allowed large banks tion is able to strongly endorse and ating subsidiaries to engage in risky to merge with large industrial concernsÐi.e., support this bill. new principle activities, like securities to provide that Chase could merge with Gen- Like the House product, the con- underwriting, and in 5 years, merchant eral Motors or Bank of America with Amoco. ference report before us ensures that banking. The flimsy limitations and Instead, this bill precludes this prospect and, banks have a choice of corporate gov- firewalls here will not hold back the indeed, blocks America's largest retail com- ernance. For the first time, we prohibit contagion and misfortune that follows pany from owning a federally insured institu- a depository institution from engaging the foolishness in not reforming de- tion, for which an application is pending. in nonbank activities unless it has and posit insurance, thus creating enor- To summarize, tonight this Congress will maintains on an ongoing basis at least mous risk to taxpayers and depositors. pass a bank modernization bill true to Amer- a satisfactory CRA rating. The Senate Second, the privacy provisions in S. ica's fundamental economic values: excessive bill had no such provision. The Senate 900 are at best a sham. The gentleman conglomeration is deterred, consumer protec- bill had no such provision with respect from Massachusetts (Mr. MARKEY) and tions are enhanced, consumer choices are ex- to corporate choice. other colleagues will set forth at panded, privacy protections are created for the We include the strong privacy provi- length the points that need to be made first time under federal law, and the safety and sions that passed this House 427 to 1, on this matter. I associate myself with soundness of the nation's financial system are except we strengthen those provisions their remarks. maintained. by expanding the disclosure require- It should be noted, as a third point, Madam Speaker, I reserve the bal- ments and ensuring that stronger that this bill undermines the Commu- ance of my time. State privacy laws are protected. The nity Reinvestment Act. Many of my Mr. LAFALCE. Madam Speaker, I Senate bill had no privacy provisions. colleagues will speak to this point yield myself 3 minutes. The House bill that passed the previous more eloquently than I. I wish to asso- (Mr. LAFALCE asked and was given Congress, with a number of those indi- ciate myself with their remarks. permission to revise and extend his re- Fourth, it undermines the separation marks.) viduals dissenting from today’s bill, of banking and commerce. Title IV Mr. LAFALCE. Madam Speaker, I they voted for the last Congress’ bill closes the unitary thrift loophole by rise in strong support of the conference with no privacy protections whatso- report on S. 900 and H.R. 10. ever. barring future ownership of thrifts by Before I begin, let me simply say The conference report before us does commercial concerns, but some 800 that I would like to associate myself not contain a small bank exemption firms are grandfathered and can engage with each and every remark of the dis- from CRA at all. The Senate bill did. in any commercial activity, even if tinguished chairman of the Committee We got them to cave on that. they are not so engaged on the grand- on Banking and Financial Services, the I could go on and on and on, but my father date. gentleman from Iowa (Mr. LEACH). He time has expired. Later, Madam Speak- Moreover, Title I allows new finan- gave thanks to a great many individ- er, I would like to engage in a colloquy cial holding companies, which incor- uals. I want to especially join him in with the gentleman. porate commercial banks, to engage in giving thanks to those same individ- Mr. DINGELL. Madam Speaker, I any complementary activities to finan- uals. yield myself 3 minutes. cial activities determined by the Fed- There are a few other individuals, (Mr. DINGELL asked and was given eral Reserve. Any S&L holding com- though, that I should mention, and permission to revise and extend his re- pany, whether or not grandfathered, that is, the fine staff, not only Jeanne marks.) can engage in activities determined to Roslanowick but Tricia Haisten and GENERAL LEAVE be complementary for financial holding Dean Sagar and Jaime Lizarraga, Mr. DINGELL. Madam Speaker, I ask companies. Patty Lord, Kirsten Johnson-Obey, and unanimous consent that all Members S. 900 clearly ignores the warning the fine Senate staff of Senator SAR- may have 5 legislative days within that Secretary Rubin gave to Congress BANES, most especially Steve Harris which to revise and extend their rein May: ‘‘We have serious concerns and Marty Gruenberg and Patience marks on this measure. about mixing banking and commercial Singleton. The SPEAKER pro tempore. Is there activities under any circumstances, Also, I want to single out, this has objection to the request of the gen- and these concerns are heightened as been a bipartisan effort from within tleman from Michigan? we reflect on the financial crisis that the Committee on Banking and Finan- There was no objection. has affected so many countries around cial Services. The gentleman from Mr. DINGELL. Madam Speaker, I the world for the past 2 years.’’ Iowa (Mr. LEACH) the gentlewoman rise in strong opposition to this bill. It Fifth, the conference agreement from New Jersey (Mrs. ROUKEMA), the recognizes technological and regu- would let banks evaluate and process gentleman from Minnesota (Mr. latory changes that have blurred the health and other insurance claims VENTO), myself, we would not have got- lines between industries and products. without having to comply with State ten here unless, when I was working However, it fails to recognize that consumer protections. This means with the administration and intro- human nature has not changed. banks, of all people, will make impor- ducing a bill to the administration, It also fails to recognize something tant medical benefit decisions that pa- who said they could support H.R. 665, else. The technology that has changed tients and doctors should make. two Republicans had not joined with has made it much easier to take money According to the National Associa- me immediately in support of the ad- from the innocent and from the tion of Insurance Commissioners, S. 900 ministration’s effort. That is the chair- unsuspecting. It relaxes protection for would prevent up to 1,781 State insur- man of the Committee on Rules, the investors, taxpayers, depositors, and ance protection laws and regulations gentleman from California (Mr. consumers. from being applied to banks that con- DREIER) and the chairman of the Sub- Let us talk about what is wrong with duct insurance activities. committee on Capital Markets, Securi- the legislation. First, it facilitates af- Sixth, it contains provisions with re- ties and Government Sponsored Enter- filiations between banks, brokerages, gard to the redomestication of mutual prises, the gentleman from Louisiana and insurance companies, and facili- insurers that will have a devastating (Mr. BAKER). They helped make this tates the creation of institutions too effect upon State regulation and upon truly a bipartisan product. big to fail. the investors and insurance customers.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00048 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.097 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11531 Madam Speaker, I include for the any practical effect. Due to the bank regu- gain access to credit. We also appreciate RECORD the following documents: lators’ rampant grade inflation, none of the your Administration’s commitment to fight- largest holding companies that would most ing off the most anti-CRA aspects of the Sen- NATIONAL COMMUNITY likely be affected by this clause have any de- ate version of financial modernization. REINVESTMENT COALITION, pository institutions with a less than Satis- We believe the Gramm-Leach-Bliley bill as November 1, 1999. factory CRA rating. Satisfactory CRA rat- proposed will undermine progress in rein- DEAR MEMBER OF CONGRESS: On behalf of ings have become so automatic that recently vestment and misses a vital opportunity to our 700 member community organizations, the OCC granted a ‘‘Satisfactory’’ rating to a greatly expand access to credit and capital the National Community Reinvestment Coa- Mississippi institution and the Federal re- to America’s traditionally undeserved com- lition (NCRC) urges you to vote against the serve approved a major merger of that insti- munities. NCRC thought that the financial Gramm-Leach-Bliley Financial Services tution at the same time that the Depart- modernization bill offered an ideal oppor- Modernization Act of 1999. NCRC believes the ment of Justice was in the process of finding tunity for this Administration to put its Gramm-Leach-Bliley bill will undermine that the bank was in violation of the na- stamp on the evolution of the financial serv- progress in neighborhood revitalization by tion’s fair lending laws. ices industry by updating and modernizing chipping away at major provisions of CRA Meanwhile, the most important issues con- CRA so that it would continue to be relevant (Community Reinvestment Act). It also fronting the continued progress of reinvest- to the evolving financial services industry in misses a vital opportunity to greatly expand ment are not addressed by this legislation. the 21st century. Unfortunately, the bill that access to credit and capital to America’s Because of the current link of CRA to deposi- is about to be passed fails to do that in any working class and minority communities by tory institutions, some holding companies significant way, while at the same time chip- modernizing CRA as Congress modernizes whose depository institutions are covered by ping away major provisions of the current the financial services industry. law. During the 1990’s, a strengthened Commu- CRA are simultaneously engaging in predatory, subprime lending through affiliates not NCRC understands the symbolic impor- nity Reinvestment Act (CRA) has played a tance of the ‘‘have and maintain’’ CRA rat- major role in increasing access to loans and covered by CRA. Other non-depository affiliates that will be making considerable num- ing clause in this bill. We believe that the reinvestments for working class and minority quirement that financial holding companies communities. Federal Reserve Governor Ed- ber of loans will simply overlook low- and moderate-income communities. The finan- have at least a ‘‘Satisfactory’’ CRA rating in ward Gramlich recently estimated that CRA- order to merge or engage in new activities is related home, small business, and economic cial modernization bill misses an important opportunity to extend CRA and fair lending useful because it will give the industry even development loans total $117 billion annu- more incentive to avoid failing CRA ratings. ally. laws to non-depository affiliates of holding companies that make significant amounts of On a practical level, however, this so-called Contrary to what is being said, this bill ‘‘extension of CRA’’ is largely illusory. By will have a negative impact on CRA and the loans. The explosion of internet banking is mud- not requiring applications and public com- considerable progress of lending to low- and ment periods when financial holding compa- moderate-income communities made by our dling the significance of what are called ‘‘service areas’’ in the Community Reinvest- nies merge or engage in these new activities, nation. By stretching out small bank CRA this bill eliminates the most effective tool exams to five years for an ‘‘Outstanding’’ ment Act. A large institution which takes deposits and makes loans throughout the na- communities have to insure the account- rating and four years for a ‘‘Satisfactory’’ ability of financial institutions to their com- rating, this bill will reduce the effectiveness tion can nonetheless restrict its ‘‘service area’’ to one small locale if it operates with- munity. of CRA as a tool in rural and small town We also hasten to point out that the ‘‘have out the traditional bricks and mortar branch America. Small banks (under $250 million in and maintain’’ provision is unlikely to have structure. These and other fundamental assets) will become adept at gaming the CRA any practical effect. Due to the bank regu- issues relating to the updating and modern- process. They will relax their CRA lending in lators’ rampant grade inflation, none of the izing of CRA should have been dealt with in underserved communities for three or four largest holding companies that would most years, and then hustle to make loans the last a financial modernization bill and were not. Finally, we want to be sure that you are likely be affected by this clause have any de- year before a ‘‘twice in a decade’’ CRA exam. pository institutions with a less than Satis- clearly aware that the vast majority of com- The current practice of CRA exams occur- factory CRA rating. Satisfactory CRA rat- munity groups do not support this bill dering once every two years keeps small banks ings have become so automatic that recently spite claims to the contrary. While we know on their toes since they know that the next the OCC granted a ‘‘Satisfactory’’ rating to a of one high profile group that has endorsed exam is just around the corner. Mississippi institution and the Federal Re- this bill, we are unaware of any others. Al- In addition, NCRC objects to the so-called serve approved a major merger of that insti- most all of our members, who represent the ‘‘sunshine’’ provision of this legislation. tution at the same time that the Depart- heart of the community reinvestment indus- While no one can argue with the concept of ment of Justice was in the process of finding try in this country, have been expressing sunshine, the provisions in this bill provide that the bank was in violation of the na- their profound disappointment in this legis- no real sunshine and are aimed instead at tion’s fair lending laws. chilling the First Amendment rights of advo- lation. Also we would note that contrary to what cates. By requiring special reporting require- Millions of low- and moderate-income and is being said, this bill does have a negative ments only of those groups which comment minority individuals and families have be- impact on current CRA law. By stretching on applications and the CRA records of come homeowners and small business owners out small bank CRA ratings to five years for banks, this bill provides a disincentive for because of a strong Community Reinvest- an ‘‘Outstanding’’ rating and four years for a community groups to particpate in the CRA ment Act. We urge you to vote against this ‘‘Satisfactory’’ rating this bill will reduce process. Additionally this bill prevents bank- bill because of its failure to adequately up- the effectiveness of CRA as a tool in rural ing agencies from monitoring the level of date and protect CRA. Attached please find a America. Earlier in your Administration, loans and investments made under CRA list of NCRC’s 700 community organization these institutions were already given a agreements during CRA exams and merger and local public agency members organized greatly simplified CRA evaluation system applications. These provisions are bad public by state. that addressed the regulatory relief concerns policy designed solely to restrict the ability Sincerely, of small banks. The extension of the exam- of communities to demand accountability JOHN TAYLOR, ination cycle only serves to make CRA more and continue reinvestment from their finan- President and CEO. difficult to enforce for small banks cial institutions. We also object to the so-called ‘‘sunshine’’ NCRC understands the symbolic impor- NATIONAL COMMUNITY provisions of this law. While no one can tance of the ‘‘have and maintain’’ CRA rat- REINVESTMENT COALITION, argue with the concept of sunshine, the pro- ing clause in this bill. We believe that the re- October 29, 1999. visions in this bill provide no real sunshine quirement that financial holding companies Hon. WILLIAM JEFFERSON CLINTON, and are aimed instead at chilling the First have at least a ‘‘Satisfactory’’ CRA rating in President of the United States of America, Amendment rights of advocates. By requir- order to merge or engage in new non-banking The White House, Washington, DC. ing special reporting requirements only of financial activities is useful because it will DEAR MR. PRESIDENT: On behalf of our 700 those groups which comment on applications give the industry even more incentive to member community organizations, the Na- and the CRA records of banks, this bill pro- avoid failing CRA ratings. On a practical tional Community Reinvestment Coalition vides a disincentive for community groups to level, however, this so-called ‘‘extension of (NCRC) respectfully urges you to veto the participate in the CRA process. Additionally CRA’’ is largely illusory. By not requiring Gramm-Leach-Bliley Financial Services this bill prevents banking agencies from applications and public comment periods Modernization Act of 1999 when it comes be- monitoring the level of loans and invest- when financial holding companies merge or fore you. We appreciate this Administra- ments made under CRA agreements during engage in the new insurance, securities, and tion’s strong commitment to the Community CRA exams and merger applications. These other non-banking activities, this bill elimi- Reinvestment Act. The development of the provisions are bad public policy designed nates the most effective tool communities new CRA regulations early in your Adminis- solely to restrict the ability of communities have to insure the accountability of finan- tration and the Department of Justice’s to demand accountability from their financial holding companies to their community. focus on fair lending issues has made a sig- cial institutions. We also hasten to point out that the ‘‘have nificant difference in the ability of residents Meanwhile the most important issues fac- and maintain’’ provision is unlikely to have of low- and moderate-income communities to ing the reinvestment community remain un-

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00049 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.125 pfrm02 PsN: H04PT1 H11532 CONGRESSIONAL RECORD — HOUSE November 4, 1999 addressed by this legislation. Because of the legislative determination. It would allow Number of Policyholder equity/equity current link of CRA to depository institu- mutual insurers to move simply because a State policies in per policy tions, some holding companies whose deposi- state, through its duly elected legislative State tory institutions are covered by CRA are si- branch of government, has determined that Kansas ...... 269,657 $470,714,158/$1,746 multaneously engaging in predatory, formation of mutual holding companies is Kentucky ...... 277,135 $480,640,500/$1,734 subprime lending through affiliates not cov- not in the best interest of the state or its Louisiana ...... 316,315 $591,448,499/$1,870 Maine ...... 111,933 $192,199,433/$1,717 ered by CRA. Other non-depository affiliates mutual insurance policyholders who are, Maryland ...... 636,883 $1,082,119,697/$1,699 that will be making considerable number of after all, the owners of the company. Massachusetts ...... 1,981,266 $3,261,185,133/$1,646 loans will simply overlook low- and mod- Gramm-Leach-Bliley will preempt the anti- Michigan ...... 1,110,156 $1,860,412,511/$1,676 Minnesota ...... 588,441 $1,111,376,308/$1,889 erate-income communities. The financial demutualization laws in 30 states: Alabama, Mississippi ...... 139,868 $254,615,010/$1,820 modernization bill missed an important op- Alaska, Arizona, Arkansas, Colorado, Con- Missouri ...... 577,461 $1,095,410,874/$1,897 portunity to extend CRA and fair lending necticut, Delaware, Georgia, Hawaii, Idaho, Montana ...... 56,782 $115,774,249/$2,039 Nebraska ...... 264,216 $699,369,591/$2,647 laws to non-depository affiliates of holding Illinois, Maine, Maryland, Michigan, Mon- Nevada ...... 111,221 $214,805,432/$1,931 companies that make significant amounts of tana, Nevada, New Hampshire, New Jersey, New Hampshire ...... 278,240 $489,566,776/$1,760 loans. New Mexico, New York, North Carolina, New Jersey ...... 1,699,347 $2,728,633,207/$1,606 The explosion of internet banking is mud- New Mexico ...... 95,171 $174,583,939/$1,834 Oklahoma, South Dakota, Tennessee, Utah, New York ...... 5,880,112 $9,266,505,199/$1,576 dling the significance of what are called Virginia, Washington, West Virginia, and North Carolina ...... 794,164 $1,444,262,155/$1,819 ‘‘services areas’’ in the Community Rein- Wyoming. North Dakota ...... 59,880 $101,470,302/$1,695 vestment Act. A large institution which Ohio ...... 1,211,900 $2,003,778,838/$1,653 We support the overall intent of S. 900/H.R. Oklahoma ...... 207,112 $388,637,200/$1,876 takes deposits and makes loans throughout 10, which is to modernize financial services Oregon ...... 221,649 $469,571,008/$2,119 the nation can nonetheless restrict its ‘‘serv- regulation and to make the U.S. financial Pennsylvania ...... 1,718,176 $2,833,890,186/$1,649 ice area’’ to one small locale if it operates Rhode Island ...... 155,127 $247,360,868/$1,595 services industry competitive with its over- South Carolina ...... 299,696 $512,172,351/$1,709 without the traditional bricks and mortar seas counterparts. However, not one sup- South Dakota ...... 76,699 $140,116,016/$1,827 branch structure. These and other funda- porter of redomestication has come forward Tennessee ...... 435,647 $780,407,441/$1,791 mental issues relating to the updating and Texas ...... 1,364,196 $2,349,322,551/$1,722 to prove that the Subtitle B is indeed vital Utah ...... 127,730 $244,256,886/$1,912 modernization of CRA should have been to financial services modernization or even Vermont ...... 90,174 $139,448,870/$1,546 dealt with in a financial modernization bill to defend its inclusion in the legislation. Virginia ...... 621,314 $1,229,173,697/$1,978 and were not. Washington ...... 371,381 $755,995,423/$2,036 There were no hearings on this Subtitle by West Virginia ...... 136,532 $243,900,505/$1,786 Finally we want to be sure that you are any of the House or Senate Committees. Wisconsin ...... 635,856 $1,194,889,155/$1,879 clearly aware that the vast majority of com- Subtitle B was added to H.R. 19 by attaching Wyoming ...... 30,643 $63,201,358/$2,062 munity groups do not support this bill for it to an amendment on domestic violence be- Note: This list is only for Life Mutuals, additional equity at risk for Health the reasons we have outlined above. We have cause such an onerous provision could not Mutuals and Property/Casualty Mutuals. Center for Insurance Research—617 heard some members of this Administration stand-alone. 367–1040. making the claim that ‘‘community groups The National Conference of State Legisla- The list above includes some states that support this bill.’’ While we know of two tures is the bipartisan national organization may have passed demutualization legisla- high profile groups that have endorsed this representing every state legislator and the tion. However, the laws of the state of domi- bill, we are unaware of any others. Almost National Conference of Insurance Legislators cile of the mutual insurer apply to policy- all of our members, who represent the heart is the national conference of state legisla- holders even in those states that have de- of the community reinvestment industry in tors who are involved in the regulation of cided to permit demutualization. this country, have been expressing their dis- the business of insurance within their re- appointment in this bill. spective states. Both of our organizations b 2145 Millions of low- and moderate-income and have unanimously adopted resolutions op- minority individuals and families have be- Mr. BLILEY. Madam Speaker, I yield posing Subtitle B and supporting its deletion come homeowners because of the strong myself such time as I may consume. from any financial services modernization economy and because of your Administra- Madam Speaker, since 1994 when the legislation. tion’s commitment to improving the access On behalf of our colleagues across the Republicans took control of Congress, to credit and capital for Americans of mod- country and especially our millions of con- we have passed telecommunications re- est means. We urge you to continue to stituents who will wonder why Congress gave form, securities litigation reform, strengthen that commitment by vetoing this away their hard-earned equity, we respect- Medicare reform, the Safe Drinking bill because of its failure to adequately fully ask you vote NO on Gramm-Leach-Bli- Water Act amendments of 1996, the strengthen and protect CRA. As always we ley. stand ready to work with you to continue to Food Quality Protection Act of 1996, We thank you for your consideration. the Health Insurance Portability and improve the Community Reinvestment Act. Very truly yours, Sincerely, Accountability Act, welfare reform, DAVID COUNTS, JOHN TAYLOR, Texas, NCOIL Presi- the Balanced Budget Act of 1997, Food President and CEO. dent. and Drug Administration Moderniza- JOANNE EMMONS, tion Act of 1997, and numerous other NATIONAL CONFERENCE OF STATE Michigan, Chair, reform and modernization bills on be- LEGISLATURES, NATIONAL CON- NCSL Commerce & FERENCE OF INSURANCE LEGISLA- half of the American people. These are Communications TORS, just a few of the unprecedented number Committee. October 28, 1999. of pro-consumer, bipartisan laws that DEAR REPRESENTATIVES: We write today to To see how policyholders in your State my committee worked on. express our opposition to the Conference would fare if the Gramm-Leach-Bliley Fi- We now stand poised to add another Committee Report on the Gramm-Leach-Bli- nancial Modernization Act is approved with subtitle B of title III, Redomestication of significant reform to the top of the ley Financial Modernization Act. We are dis- list. mayed at the inclusion in the legislation of Mutual Insurers, included look below: Subtitle B, the Redomestication of Mutual According to the Center for Insurance Re- Today we are about to achieve some- Insurers. We submit that Subtitle B is not in search, if all the major mutual life insurers thing that no Congress before us in the the public interest, rather it is anti-con- took advantage of the provisions in Subtitle last 65 years has been able to accom- sumer. This provision would circumvent B of Gramm-Leach the equity loss to con- plish, agreeing to comprehensive finan- well-designed and thought-out state policy sumers in each state: cial services modernization. For 65 regarding the redomestication of mutual in- years, beginning with the efforts of a surance companies. Subtitle B has little to Number of Policyholder equity/equity State policies in per policy gentleman from Virginia, Representa- do with financial services modernization. State tive Carter Glass, Congress has strug- Rather it serves to undermine state law, Alabama ...... 247,666 $449,895,848/$1,817 gled to reform and modernize the regu- which seeks to protect our constituents for Alaska ...... 48,208 $98,061,387/$2,034 the benefit of a few. Gramm-Leach-Bliley Arizona ...... 48,208 $98,061,387/$2,034 lation of our financial services indus- could place as many as 35 million policy- Arkansas ...... 116,906 $207,701,616/$1,777 try. Mr. Glass was unsuccessful, but his California ...... 2,713,352 $4,960,251,308/$1,828 holders, many of your constituents, at risk Colorado ...... 758,110 $1,307,009,088/$1,724 legacy continues. of losing $94.7 billion in equity. Should this Connecticut ...... 739,154 $1,176,333,479/$1,591 Last term, we were told by every in- occur, it would amount to a Congressionally Delaware ...... 326,315 $549,292,374/$1,683 District of Columbia ...... 239,447 $408,029,322/$1,704 dustry lobbyist and Washington trade approved takings of consumers’ personal Florida ...... 1,164,719 $2,121,274,692/$1,821 associations that this bill was dead; property. Georgia ...... 636,580 $1,179,107,023/$1,852 that it could not be done; that Con- Subtitle B would allow mutual insurers Hawaii ...... 96,275 $169,195,580/$1,757 domiciled in states whose legislatures have Idaho ...... 100,587 $193,715,897/$1,926 gress had neither the will nor the vi- Illinois ...... 2,397,312 $3,960,690,446/$1,652 elected not to allow mutual insurers to form Indiana ...... 541,558 $962,599,522/$1,777 sion to overcome the special interests mutual holding companies to escape that Iowa ...... 431,090 $1,338,632,792/$3,105 opposed to this legislation.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00050 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.100 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11533 Whether out of ignorance or gives them the right to stop informa- service modernization effort, we are fi- hardheadedness we continued to push tion from being sold to unaffiliated nally fulfilling his vision for the Amer- forward, suffering the opposition at third parties and the knowledge to ican people. I urge support of the various points of almost every industry make a choice about where they want Gramm-Leach-Bliley Act and look for- faction and interest, but we prevailed. to do business. ward to adding this legislation to the Two years ago our committee These protections are all improve- many achievements of this Congress. breathed life into this legislation by ments over current law and represent a Madam Speaker, I reserve the bal- putting consumers first. Until then huge first step towards improving the ance of my time. every special interest group had agreed privacy rights of consumers. To let this Mr. LEACH. Madam Speaker, I yield in concept to a level playing field, but opportunity slip through our fingers 30 seconds to the gentleman from Flor- just with a slight tilt toward their in- would be doing a grave disservice to ida (Mr. MCCOLLUM). dustry. the American people. (Mr. MCCOLLUM asked and was The bill was full of regulatory arbi- This bill also sets forth a framework given permission to revise and extend trage, allowing companies to shift for new consumer protections for insur- his remarks.) money and activities to the place of ance, securities and banking functional Mr. McCOLLUM. Madam Speaker, I least regulation and fewest consumer regulation. For too long we have al- rise in support of this most significant protections. lowed unelected bureaucrats to fight legislation. It will modernize and Our committee said no to these spe- over regulatory turf, losing sight of the strengthen our banking system and as- cial interest lobbyists. We laid down consumer in the process. We have put sure the viability and availability of the law that activities should be regu- an end to these turf battles and put the retail banking into the next century. It lated with the same strong consumer consumer back at the forefront of our will provide consumer privacy in bank- protections and safeguards no matter agency’s agenda. We also provide for ing for the first time ever. It will make where the activity takes place. flexible but comprehensive oversight of it easier for consumers to handle their This is called functional regulation, the financial services industry by a co- banking and insurance and security and functional regulation means that ordinated body of independent and ad- matters and it will lower the cost to everyone gets the same oversight, the ministrative agencies. consumers for banking, insurance and same rules, with no special advantage We watched the global meltdown of securities products and services. towards any party. The lobbyists do the international financial markets It is truly the most significant bank- not like it but it is common sense, and and we heard the worries of the Amer- ing legislation of all the years I have it is right. We then looked at the bar- ican people about strengthening our served on the Committee on Banking riers and red tape that prevented com- local markets against outside attacks. and Financial Services. I strongly sup- panies from offering and competing in We cannot afford to have one single port it. I urge its adoption. I am proud a wide variety of products for con- American left behind or put at risk be- to have worked with the gentleman sumers. American jobs were being lost cause Congress did not have the cour- from Iowa (Mr. LEACH) and the others and consumers were paying too much age to bring our financial services in- to craft it and I hope it is adopted to- for their financial services, because dustry together under a modern regu- night. government was still imposing 65-year- latory system. Mr. LAFALCE. Madam Speaker, I old burdens and bureaucracy, created This bill does that, and I believe that yield myself such time as I may con- long before computers became com- this Congress does have the courage to sume to engage in a colloquy with the make these reforms. We found the solu- monplace and anyone even dreamed of chairman of the Committee on Bank- tions to bring people together and we the Information Age. ing and Financial Services, the gen- now stand ready to reinvigorate our fi- This bill removes those antiquated tleman from Iowa (Mr. LEACH). barriers and eliminates the bureau- nancial services industry to give the Am I correct in stating that it is the cratic red tape. It gets government off American people the best financial intent of the conferees that the disclo- services and protections in the world. the back of business and enables them sure and reporting requirements con- I want to commend my fellow chair- to compete for consumers worldwide in tained in section 11 be interpreted nar- men, Chairman GRAMM and the gen- the markets of the 21st century. This is rowly so as to reduce the burden on tleman from Iowa (Mr. LEACH); thanks critical to keep our economy and to my good friend, the gentleman from parties regarding these disclosure and American job opportunities the best in reporting requirements? Ohio (Mr. BOEHNER), whose good work the world. last Congress put us on the green with- Mr. LEACH. Madam Speaker, will We then stood shoulder to shoulder in putting distance, and most espe- the gentleman yield? Mr. LAFALCE. I yield to the gen- together with our Democratic col- cially I want to thank and commend leagues to demand that this bill must tleman from Iowa. the gentleman from Ohio (Mr. OXLEY), Mr. LEACH. Yes. There are two sub- establish strong consumer protection the subcommittee chairman. for companies wishing to engage in new The gentleman from Ohio (Mr. sections that should be read together. competitive opportunities. We estab- OXLEY), who never gave up, who kept One that calls for a listing of expenses lished strict antidiscrimination provi- his shoulder to the wheel throughout and the other that stipulates regula- sions, requirements for banks to rein- this entire process, he never let us suc- tions promulgated under this provision vest in their local communities, pro- cumb to the petty vagaries of politics. not establish undue regulatory bur- tections for victims of domestic vio- We would not have a bill without the dens. While tensions exist between lence and full protection of antitrust gentleman from Ohio (Mr. OXLEY). So I these two sections, the clear intent is laws to ensure the safety and sound- again commend and thank him. for regulatory discretion in imple- ness of our monetary system. I want to thank all the staff that was menting the reporting requirements. These are critical protections for involved in this effort. I especially For instance, meal expenses and taxi- consumers that have waited far too thank my own staff, all five and a half cab receipts are not contemplated as long for congressional action. of them, David Cavicke, Brian having to be reported under this new Let us stop for a moment and think McCullough, Robert Gordon, Robert section. In addition, it is clear, as indi- about the reforms that this Gramm- Simison and, of course, Linda Rich, cated in the conference report, that in Leach-Bliley Act would achieve. We with the help of little Peter MacGregor the vast majority of cases groups may are creating the first-ever general fi- Rich. comply with the disclosure and report- nancial privacy laws to protect the pri- I think the Members of this con- ing requirements through the filing of vacy of consumers’ information. Cur- ference should be proud. We have audited statements or tax returns. rent law provides almost no protection shown the will to overcome every ob- Mr. LAFALCE. Well, that is very im- for the individual consumer to know stacle thrown in our way and to stand portant. It is my understanding that how their private information is being on the brink of accomplishing some- the reporting requirement related to shared or how to stop confidential in- thing great for our country. what information is to be included is formation from being sold. This bill Sixty-five years after Carter Glass intended to allow compliance by the gives consumers privacy protections. It from Virginia started the financial filing of an annual financial statement

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00051 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.126 pfrm02 PsN: H04PT1 H11534 CONGRESSIONAL RECORD — HOUSE November 4, 1999 or Federal income tax return. It is not the chairman of the Subcommittee on activities, which is the bedrock of this the intent that this provision require a Commerce, Justice, State and Judici- legislation, this functional regulation. reporting of any particular expense but ary. I am proud that this bill does that. rather a listing of the categories of ex- The SPEAKER pro tempore (Mrs. This bill makes our system work, and penses, if any, required to be reported. EMERSON). The gentleman from Ohio it makes our financial system strong Is that also the understanding of the (Mr. OXLEY) has up to 3 minutes. and safe and the envy of world. gentleman? (Mr. OXLEY asked and was given I want to congratulate all of those Mr. LEACH. Yes, it is my under- permission to revise and extend his re- who were involved in this effort, par- standing, and I understand as well that marks.) ticularly the gentleman from Iowa the gentleman may be inserting for the Mr. OXLEY. Madam Speaker, I rise (Chairman LEACH), the gentleman from RECORD a further elaboration of this in support of this historic legislation. Virginia (Chairman BLILEY) for their issue which reflects our mutual under- We are replacing Glass-Steagall fi- strong efforts in this regard. standing of how this section is to be nally, after 65 years, with Gramm- Madam Speaker, I would be remiss at treated. Leach-Bliley, and everybody partici- this time in not mentioning the hard Mr. DINGELL. Madam Speaker, I pated in this effort. There is a great work and dedication of a young man yield 2 minutes to the distinguished deal of credit for a job well done. We named Greg Koczanski, who was senior gentlewoman from California (Ms. WA- have had the heart and the courage. A vice president of Citigroup, and many TERS), a member of the Committee on lot of people have doubted us because it of my colleagues knew him, as we dis- Banking and Financial Services. took us a long time but we are here to- cuss this legislation that was so impor- Ms. WATERS. Madam Speaker, serv- night to pass this bill. tant to Greg. ing on the Committee on Banking and It sets a standard, a strong standard, As many of my colleagues know, Financial Services I understand and I for consumer safeguards and estab- Greg died in a tragic hiking accident understood for a long time that one lishes a strong regulatory foundation earlier this year in Colorado. He was a day we would have a bill that would for financial services. devoted family man, an avid sports- allow these entities to come together, Let me mention a few highlights. man, and true professional in every banking and commercial interests, and This year in our committee I intro- sense. merge. I knew that would happen, but duced the first ever comprehensive fi- I salute Greg for the time and energy I always knew that we could protect nancial privacy protections for con- he committed to the process of moving the consumers if we wanted to do that. sumers. It was adopted by the full this bill forward. S. 900 bears the im- What I am surprised about is the mean- House and stronger provisions with the print of his hard work. spirited way in which we have under- work of the gentlewoman from New Madam Speaker, the gentleman from mined the Community Reinvestment Jersey (Mrs. ROUKEMA) and others in Massachusetts (Mr. MARKEY), a good Act. the House-Senate conference com- friend of mine, always likened this bill There was no need to have CRA on mittee. Under current law, consumers to Sisyphus rolling that boulder up the the table except for one person, who have no ability whatsoever to find out hill, and he was doomed, doomed to does not like CRA, came into the con- how their personal financial informa- have that boulder roll back on him and ference committee, determined that he tion is being shared. This bill, for the time and time again, doomed for eter- was going to weaken it and he did. first time, gives them that ability. nity. I say to the gentleman from Mas- These reporting requirements are un- If we want strong consumer protec- sachusetts, no longer, no longer do I necessary. They are simply there to in- tions, particularly a right to privacy, have to hear that speech in the Com- timidate. What other situation do we vote for this legislation because to mittee on Commerce or on the floor. have where two private entities, with keep the status quo is to have no pri- For that reason and that reason alone, an agreement, have to report on it? No vacy protection whatsoever. It protects it is important that we pass this bill place, no place else but with CRA. I do account numbers and access codes. It tonight. not care what they say the intent is. protects strong State privacy laws Mr. LEACH. Madam Speaker, I yield CRA has been weakened. from being overridden, and that is 1 minute to the gentlewoman from New The rural communities and the inner very, very important. Jersey (Mrs. ROUKEMA), the distin- cities will feel the impact of it because I find it interesting that some Mem- guished chairman of the Subcommittee the activists will go away. They will bers, while recognizing that everything on Financial Institutions and Con- not be able to comply with these rein this bill is an improvement over cur- sumer Credit. quirements. But that is not what is rent law, still argue that we should not Mrs. ROUKEMA. Madam Speaker, I going to undo what we do here tonight. enact any protections, nothing at all, if want to clarify the questions regarding The poor people do not have the power. we cannot load up the bill with every the privacy title. The activists could not stand up bell and whistle that they want. This is Section 503 requires financial institu- against the big banks. I knew that partly why this bill has been sabotaged tions to provide customers with a copy CitiCorps and Travelers would not in every effort in the last 65 years until of the financial institution’s privacy undo their relationship. They would this Congress demonstrated the leader- policies and practices. These docu- have had to undo it in two years if we ship to move it forward. ments must be provided to customers did not have this law tonight because The Gramm-Leach-Bliley Act affords at the time the customer establishes a they acted on their own to come to- real protections and safeguards for relationship with the financial institu- gether and merge, but I knew they Americans that become law, not just tion and not less than annually during would win. Too big to fail. empty words and political posturing. the continuation of that relationship. What is going to undo what we do The privacy protections are only some What about single-event trans- here tonight is the invasion of privacy of the many pro-consumer entitle- actions, as they are known, with a fi- of American citizens. What has been ments in the bill. Under current law, nancial institution? What does section done is the opportunity has opened up individual consumers have no statu- 503 require of financial institutions if for one conglomerate to know every- tory protections governing bank sales the relationship with the customer is thing there is to be known about an in- of insurance. This bill provides that single-event transactions, like the pur- dividual and their family, everything protection. chase of teller’s checks, money orders, from their medical, financial records, or remote bill payments at businesses b everything. We will pay a price for 2200 that do not have an ongoing relation- this. We have paid a price for mistakes Domestic violence. Protection ship? in the past as we dealt with the S&Ls. against domestic violence discrimina- Madam Speaker, what would we do if This will be another one that we will tion. State insurance regulators now these bill payments are done at busi- regret. have equal standing to protect con- nesses that do not have an ongoing re- Mr. BLILEY. Madam Speaker, I yield sumers when regulating. In fact, this lationship? as much time as he may consume to bill establishes the consumers’ right to Mr. OXLEY. Madam Speaker, will the gentleman from Ohio (Mr. OXLEY), functional regulation of all financial the gentlewoman yield?

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Mrs. ROUKEMA. Yes, I will be MARKEY), a member of the Committee our financial services laws and brings pleased to yield to the gentleman from on Commerce. our laws into the 21st century. Ohio. Mr. MARKEY. Madam Speaker, we The true winner in this effort is the Mr. OXLEY. Madam Speaker, as we are told how difficult it is, how com- consumer. They win on two fronts: first discussed, in single-event transactions plex it is to deal with all of these pri- with savings, and second through the such as the ones the gentlewoman from vacy issues. But when Citigroup is greatest expansion of financial privacy. New Jersey mentioned, financial insti- doing business in Germany, and the Two provisions are especially note- tutions must disclose to the customer German laws say that every German worthy and will save consumers their privacy policies and practices at citizen has the right to protect all money. The NARAB provision will the time the transaction is entered their information, has the right to say, solve a difficult and costly multistate into. A customer relationship is cre- no, they do not want it shared, insurance licensing issue by creating a ated, but it is over in an extremely Citigroup gives every German citizen a single higher national standard. short amount of time. In these types of contract protecting their information. Another provision will allow banking transactions, no continuing relation- Now, they do not want to give that firms to sell mutual funds to their cus- ship between the financial institution same contract to American citizens in tomers without having to go through and the customer is created. For this their own country. Citigroup says no, third-party distributors that do not reason, the financial institution is not we cannot do it in America. It is too provide any added value to the bank or required to provide its privacy policies complex. customers. to such customers annually. That was Now, the American laws have figured This legislation is a true win-win for clearly our intent. out how to ensure one’s tax returns do the American people, and I urge my Mrs. ROUKEMA. Madam Speaker, I not get shared, how one’s driver’s li- colleagues on both sides of the aisle to appreciate that. cense information does not get shared, join me in favor of the passage of this Mr. LEACH. Madam Speaker, if the one’s video cassette rentals, one’s cable historic legislation. gentlewoman will yield, I agree with TV viewing habits, one’s telephone call This legislation has been decades in the the interpretation just expressed. records, the location of where one is making and I am pleased to have been part of Mrs. ROUKEMA. Madam Speaker, I when one is using one’s cell phone. the effort to make this legislation a reality. Of think this is very important for us to Yes, we can pass laws for that. But course, this would not have been possible have on the Record the interpretation the financial services industry says, it without the excellent work of my chairman and of this legislation. would really ruin our synergies if you his top notch staff who set the best example Mr. LAFALCE. Madam Speaker, I made it necessary for us to protect we can all strive for. yield 1 minute to the gentleman from your private information, your checks. As for privacy, this legislation represents the Texas (Mr. BENTSEN). If one wrote a check for one’s child’s greatest expansion of personal financial pri- (Mr. BENTSEN asked and was given psychiatrist, for one’s prostate cancer, vacy in the history of American finance. Con- permission to revise and extend his re- for one’s wife’s breast cancer, no, one sumers will benefit from the mandatory disclo- marks.) cannot protect that information. It is sure by financial institutions of privacy policies Mr. BENTSEN. Madam Speaker, let our product to sell to market. and the consumer opt-out choices to prevent me first say I support this legislation, There is only one thing that really the sale of confidential information to unaffili- and I want to commend the chairman exists here, Madam Speaker. One gets ated third parties. This represents only two of and the ranking member of the Com- one notice, and one gets one notice the many positive privacy provisions. mittee on Banking and Financial Serv- only from these banks. Here is what I want to go into greater detail on the provi- ices for the work they have done and one is going to get: Notice, you have no sions of this legislation that will create the staff for the work they have done. privacy. NARABÐthe National Association of Reg- Besides the financial and monetary They are going to be legally required istered Agents and Brokers. This subtitle, policy reasons for doing this bill, I to tell one one has no privacy. Com- which I authored, will streamline the insurance think there are some important facts merce without a conscience. Profit be- agent and broker licensing process. we have to understand. I concur with fore privacy. Can we not have a balance Allow me to read something that dem- the gentlewoman from California (Ms. in this country? onstrates both the desire of state regulators to WATERS) that CRA should not have William Shakespeare, 5 centuries achieve the goal of establishing uniform or re- been part of this legislation, but we ago: ‘‘Who steals my purse steals trash; ciprocal licensing standards goal and the great have to understand the facts of it. It ’tis something, nothing.’’ impediments to its attainment: was part of the legislation. Because of ‘‘’Twas mine, ’tis his, and has been The Commissioners are now fully prepared this legislation, we have the stronger slave to thousands.’’ to go before their various legislative com- CRA language for businesses that want But ‘‘he that filches from me my mittees with recommendations for a system to get into other financial businesses. good name robs me of that which not of insurance law which shall be the same in That is not in the current law. enriches him, and makes me poor in- all States—not reciprocal, but identical; not We also have a stronger law as it re- deed.’’ retaliatory, but uniform. lates to smaller institutions because, Here, Madam Speaker, one’s good This statement expressing the desire for a even though they get a longer interval name enriches the financial services more uniform insurance regulatory system was before they have a CRA review, the bill industry and will make each family made by George W. Miller, the New York In- is written in such a way that allows poor, indeed, as it is robbed, stolen, surance Commissioner who founded the Na- the regulator to go in if there is a ma- filched, and capitalized upon by the fi- tional Association of Insurance Commissioner, terial change. So I think CRA actually nancial services industry in this coun- at the close of the very first meeting of the came out better. try. Vote no on this bad bill. NAIC in 1871. The NAIC has been working for The sunshine may be somewhat of a Mr. LEACH. Madam Speaker, I yield almost 130 years to achieve some level of nuisance, but it was very narrowly tai- 45 seconds to the distinguished gentle- regulatory uniformity; NARAB will simply assist lored in the final stages of this bill. woman from New York (Mrs. KELLY). them in achieving what has proved to be a With respect to privacy, the point (Mrs. KELLY asked and was given very elusive objective. has been made, and it cannot be denied, permission to revise and extend her re- As advocated by the state insurance com- that the provisions in this bill would marks.) missioners, state insurance regulation is pre- not exist without this bill. Consumers Mrs. KELLY. Madam Speaker, I served in this legislation. What NARAB does, are better off by enacting these provi- thank the distinguished gentleman though, is address one of the shortcomings of sions. We will have to revisit privacy. from Iowa for yielding me the time. state regulation. Licensing laws are not only Everyone knows it. But if we fail to Madam Speaker, I rise today in unnecessarily redundant; they all too often are pass this bill, consumers will be worse strong support for the passage of the protecionistÐdesigned to protect in-state off as it relates to privacy. Gramm-Leach-Bliley Financial Serv- agents and brokers from out-of-state competi- Mr. DINGELL. Madam Speaker, I ices Act of 1999. This conference report tion. The NARAB designed to protect in-state yield 2 minutes to the distinguished truly bridges the disagreements that agents and brokers from out-of-state competi- gentleman from Massachusetts (Mr. have torn apart past efforts to update tion. The NARAB subtitle creates the incentive

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00053 Fmt 7634 Sfmt 9920 E:\CR\FM\K04NO7.132 pfrm02 PsN: H04PT1 H11536 CONGRESSIONAL RECORD — HOUSE November 4, 1999 for states to change those out-of-date laws voted a good part of their congres- marketing agreement with unaffiliated and regulations. sional careers to making this bill a re- third parties. Now that this legislation stands at the brink ality. This means that if my bank has an of enactment, state insurance regulators must As a freshman member of the Com- agreement with a telemarketer down recognize that NARAB is the tool they need to mittee on Banking and Financial Serv- the street, the bank can share my in- make licensing less of a burden, and less of ices, I was privileged to work with formation and the information of all an add-on cost to consumers. Throughout the them this year to provide a bipartisan Americans with whichever financial in- three-year debate on this provision, some bill that will modernize our Nation’s stitution. That should be shameful, state insurance commissioners argued that banking, insurance, and security indus- Madam Speaker. they're getting the job done on their own, and tries. Mr. LAFALCE. Madam Speaker, I NARAB is unnecessary. Unfortunately, they've Two decades in the making, this bill yield 2 minutes to the gentlewoman been saying that for 130 years. With NARAB's will allow our Nation’s financial insti- from Oregon (Ms. HOOLEY). enactment into federal law, there is no choice tutions, security companies, and insur- Ms. HOOLEY of Oregon. Madam but for state licensing laws to move into align- ance industries to successfully compete Speaker, I want to thank the chairman ment with the broader modernization goals of in the global market. of the Committee on Banking and Fi- this legislation. I commend the House and the Senate nancial Services and the ranking mem- Madam Speaker, it is an embarrassment conferees as well as the administration ber for the hard work they did on this that the separate nations of Europe have done who were able to work together to ap- bill and moving it through the process more to harmonize their insurance licensing prove this legislation. While it may be and never forgetting that the consumer laws, compared to the separate states of long overdue, I believe it will be well came first. America. NARAB will help change that. worth the wait. Madam Speaker, with all the heated The Gramm-Leach-Bliley Act is good for I congratulate the gentleman from debate around the details of this bill, I business and consumers in many ways. It's Iowa (Chairman LEACH), the gentleman fear that we have lost sight of what we important to note, though, that many of the from Virginia (Chairman BLILEY), and are trying to do. We are, as the Wash- provisions of this legislation only bring the reg- the gentleman from New York (Mr. LA- ington Post recently pointed out, try- ulatory scheme into line with what's already FALCE), the ranking member. ing to reregulate the financial services happening in the marketplace. NARAB stands I ask all my colleagues to vote for industry today, not deregulate it. out as one of the key elements of this legisla- this historic measure, and I urge the Banks already use loopholes and regu- tion that represent true modernization. I was President to sign it into law. latory waivers to get their hands into pleased to author this element of the bill, and Mr. DINGELL. Madam Speaker, I new lines of businesses, supposedly am grateful for the wide support it has enjoyed yield 11⁄2 minutes to the distinguished barred by the old Glass-Steagall Act. throughout this process. gentleman from Illinois (Mr. GUTIER- While this bill gives banks, insurance Most of all, speaking as a moderate, I feel REZ). companies, and security companies honored to have played a role in the enact- Mr. GUTIERREZ. Madam Speaker, I new powers, it also creates a sound, ment of important legislation that has had true am a proponent of the Community Re- legal framework which addresses the bipartisan leadership. As it should be, this is a investment Act, which is why I am actual condition of today’s financial legislative product that should make us all going to vote against this conference services marketplace. proud. report. For those of my colleagues that are Mr. LAFALCE. Madam Speaker, I I am not pleased that S. 900 weakens concerned about consumer protection, yield 2 minutes to the gentleman from the Community Reinvestment Act understand that the most important North Carolina (Mr. WATT). while strengthening banks’ abilities to thing we can do to protect consumers Mr. WATT of North Carolina. Madam expand into insurance and securities is to create a strong regulatory system Speaker, I thank the gentleman from business. I am not pleased that S. 900 that oversees financial services as they New York for yielding me the time. sacrifices adequate consumer privacy are today, not as they were, and the Madam Speaker, for the last 4 years, for the sake of corporate interests. bill does that. there are probably few people in this S. 900 strays too far from acceptable Why else have we worked so hard to body who have spent more time on this CRA provisions originally in H.R. 10, create this bill? For four reasons: to issue and on this bill than I have. I which required banks to have a satis- create a more competitive financial have read every bill and every draft factory CRA rating in order to affiliate services sector, to build a stronger from front to back over and over again with insurance and securities firms, economy, to create new opportunities and studied the provisions. and this is important. To maintain for consumers, and to protect the con- There are some problems with the that affiliation, they must maintain sumer. bill that came out of the conference their satisfactory CRA rating. Unfortu- When this bill is passed, companies bill. In many respects, it is not as good nately, this maintenance provision has will be more internationally competi- a bill as the bill we passed out of the been stripped from the bill. tive, will operate more efficiently at House. But for every problem in the Sure, S. 900 requires banks to have a home, and will provide a broad array of bill, there are also some good things in satisfactory CRA rating to expand into new services and products to the con- the bill. So, on balance, I have decided lines of business, but under this bill, sumers, and provide for the first time that this is a bill that is worthy of sup- once a bank’s affiliating frenzy is over, privacy protection for the consumer. port. once it gets as big as it wants by merg- As a conferee and a supporter of S. We should continue to work on the ing with securities and insurance 900, I ask for my colleagues’ yes vote problems that exist with the bill. We firms, it is no longer required to main- today. should address those problems dealing tain a satisfactory CRA rating. Mr. DINGELL. Madam Speaker, how with privacy, reporting under the CRA On privacy, this bill gives banks the much time do we have remaining? requirements, and other provisions right to share all information about The SPEAKER pro tempore (Mrs. that I think are lacking. consumers with their affiliates. Per- EMERSON). The gentleman from Michi- But on balance, we should vote for sonally, I do not necessarily want my gan (Mr. DINGELL) has 111⁄2 minutes re- the bill, and, therefore, I rise in sup- bank information to be shared with maining, the gentleman from New port of the bill. anyone. York (Mr. LAFALCE) has 11 minutes re- Mr. LEACH. Madam Speaker, I yield maining, and the gentleman from Iowa b 2215 45 seconds to the gentlewoman from Il- (Mr. LEACH) has 2 minutes remaining. linois (Mrs. BIGGERT). While S. 900 does give consumers the Mr. DINGELL. Madam Speaker, I (Mrs. BIGGERT asked and was given option to opt out of a bank’s informa- yield 11⁄2 minutes to the gentleman permission to revise and extend her re- tion-sharing arrangement with unaf- from Minnesota (Mr. LUTHER). marks.) filiated third parties, a consumer, I Mr. LUTHER. Madam Speaker, ear- Mrs. BIGGERT. Madam Speaker, I want America to understand this clear- lier this year, Attorney General Mike rise in support of the conference rely, a consumer cannot opt out when the Hatch of the State of Minnesota port. Many of my colleagues have de- financial institution enters a joint brought a civil lawsuit against a large

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00054 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.088 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11537 national bank for sharing customers’ Mr. DINGELL. Madam Speaker, I greater choices, more innovative serv- personal information with a tele- yield 1 minute to the gentlewoman ices, and lower prices for financial marketing company. When this became from Illinois (Ms. SCHAKOWSKY), a products. known to the public, the people of Min- member of the Committee on Banking Under today’s financial moderniza- nesota were outraged. So what hap- and Financial Services. tion conference report, banks will still pened? The bank quickly agreed to Ms. SCHAKOWSKY. Madam Speaker, be required to have a good track record change its practices and to allow their as a member of the Committee on in community reinvestments as a con- customers to opt out; in other words, Banking and Financial Services, I rise dition for expanding into new busi- to say no to sharing any personal fi- in strong opposition to S. 900. nesses. And there is the first time that nancial information with either third Winners-Losers. In this bill it is pain- a bank’s rating under Community Re- parties or affiliates. fully clear. Banks, insurance compa- investment Act will be considered I ask all of my colleagues here to pay nies and securities firms. Big winners. when it expands outside of traditional attention to the Minnesota agreement, Losers? Working class communities banking activities. The financial mod- because that is what everyone agreed and consumers. ernization agreement will also apply to when the public truly found out This bill helps create corporations CRA to all banks, without exceptions, what was going on with the sharing of that can afford to ignore families and and it preserves existing procedures for their information. It is the minimum small businesses down the street due to public comments on banks. standard every bank in America ought a weakened Community Reinvestment A note on privacy. Under existing to adhere to. All it says is people have Act. CRA has brought literally a tril- law, information on everything from the right to say no. lion dollars’ worth of loans into starv- account balances to credit card trans- Now, this legislation has been going ing communities since its passage in actions can already now be shared by a on for 15 years, as has been mentioned 1977. But S. 900 lowers the requirements financial institution without a cus- here. I would ask why, after that much for CRA compliance and maliciously tomer’s knowledge. Under this bill, fi- time, could we not spend 15 minutes to burdens community-based groups that nancial institutions will, for the first draft a provision to protect the con- are fighting for investment in their time, be required to notify consumers sumers of America? And that is all we neighborhoods. when they intend to share such infor- are asking. For those of my colleagues Huge financial conglomerates get ac- mation with third parties and allows who suggest we could pass a separate cess to their customers’ most private consumers to opt out of any such infor- bill on the privacy issue, I ask, what information, which they can use with- mation sharing. are the chances of passage of that bill out permission. When a widow receives The privacy protections included in when this bill cannot have a real pri- the funds from her husband’s insurance this legislation are clearly an impor- vacy provision with all of the interest policy, the insurance company can tant step forward for America’s con- groups supporting this legislation? The share that information with its broker- sumers. I urge passage of the con- chances of that would be very slim. age firm which can then barrage the ference report. Madam Speaker, I will conclude by grieving woman with stock offerings. Mr. DINGELL. Madam Speaker, I just saying it is time to reject business The bank that gives us a loan for our yield 11⁄2 minutes to the gentleman as usual in Washington. We can stand child’s education can sell her address from Washington (Mr. INSLEE), a mem- up for the people and their right to pri- to a credit card company, which then ber of the Committee on Banking and vacy in America. We have a solemn re- entices her with a card at school. If we Financial Services. sponsibility to do that. I urge my col- have a bad day on the stock market, (Mr. INSLEE asked and was given leagues to reject this legislation. make a claim against our health insur- permission to revise and extend his re- Mr. LAFALCE. Madam Speaker, I ance, we can kiss that mortgage good- marks.) yield 1 minute to the gentlewoman by. Write checks to a psychiatrist or Mr. INSLEE. Madam Speaker, if we from California (Mrs. CAPPS). an oncologist and then just try to get are indeed steward of our constituents’ Mrs. CAPPS. Madam Speaker, I rise a new health insurance policy. privacy, why should we give banks the in support of this conference report. Why should we be for this? We should right to strip us of privacy? Why The laws governing our banking insur- not be for this. I urge my colleagues to should we give banks the ability to tell ance and securities industries are woe- vote ‘‘no.’’ everyone in the world who are their af- fully out of date. Congress has tried for Mr. LAFALCE. Madam Speaker, I filiates about our banking accounts years to update them and that goal is yield 2 minutes to the gentleman from and our checks? Why should we do finally now being achieved with this Connecticut (Mr. MALONEY). this? legislation. This bill will ensure that Mr. MALONEY of Connecticut. And who will come to this floor to- America remains the world’s leader in Madam Speaker, I rise in support of night and say to the American people financial services and, more impor- this legislation. For more than 20 that it is okay for banks to violate our tantly, it will bring consumers more years, Congress has attempted to over- privacy and to give our bank accounts choices at lower prices. haul the Nation’s banking laws while to their affiliates so they can tele- We all know, though, that a major the marketplace has moved leaps and market us? Who will come here tonight issue in this bill has been consumer bounds beyond the current law. Fi- and say that? No one. Because every privacy. The legislation before us takes nally, today, we have an historic op- single Member of this chamber, of both a step forward, but many challenges re- portunity, the opportunity to pass the parties and both genders, of all beliefs, main. I am pleased that the conference most important financial services leg- know that is wrong, and it ought to be report does not include the so-called islation in 60 years. outlawed. medical privacy provisions that were in Thanks to the work of the chairman, Why is this so important? Because the House-passed bill. But the con- the gentleman from Iowa (Mr. LEACH), this is a brave, new and threatening ference report remains deficient in pro- and the ranking member, the gen- world in the financial services indus- tections for consumers’ financial pri- tleman from New York (Mr. LAFALCE), try. This is not the little bank on the vacy. we have come together to craft a finan- corner any more. The little bank on As the gentleman from Michigan (Mr. cial modernization bill which benefits the corner did not have any incentive DINGELL) and the gentleman from Mas- everyone. Our economy will benefit to violate our privacy. They wanted to sachusetts (Mr. MARKEY) have pointed from passage of this bill by being sup- keep our privacy. But when we create out, the bill still does not allow con- plied with more access to capital, this new organism of banking, as sure sumers control over who has access to which will continue to fuel our eco- as God made little green apples, that their financial information. Therefore, nomic growth. To our financial institu- the affiliated insurance companies and Congress must revisit privacy protections, this bill means increased effi- the affiliated stockbrokers are going to tions. However, overall the conference ciency and increased competitiveness want the computer profiling of our ac- report remains a positive step forward in the global marketplace. And our counts so they can sell everything on for our economy, and I urge my col- consumers will benefit from increased this green Earth to us over the phone leagues to support it. competition, which translates into at 7 o’clock at night.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00055 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.138 pfrm02 PsN: H04PT1 H11538 CONGRESSIONAL RECORD — HOUSE November 4, 1999 Now, many of us are concerned about ference committee. Strong consumer that an individual voluntarily discloses to a life the financial forces at work trying to privacy provisions were rejected by the insurance company may then be forewarded pass this bill. I will just leave my col- conference committee. It is terrifying legally without an individual's assent to any of leagues with one thought. When con- to know that Big Brother is here to its affiliates and to any unrelated financial in- sideration of deregulation of the sav- stay as a result of this bill. Sharing the stitution that has entered into a joint agree- ings and loan industry came about, private financial information among fi- ment with that insurance company. only 26 Members of this chamber voted nancial institutions should really scare It is my hope that the 106th Congress and against it, and all 26 Members felt the us to death. the administration will return to this issue early same fear and concern we do. My anti-redlining, non-discrimina- next year in order to strengthen the privacy Vote to send this bill back for more tion amendment passed by the House safeguards. Only then will we be able to pro- work. Vote for privacy. Defeat this bill Committee on Banking and Financial vide American consumers innovation, conven- tonight. Services was blocked from consider- ience, and safety in financial services, as well Mr. LAFALCE. Madam Speaker, I ation by this House without even tak- as guaranteeing the privacy of their most per- yield 11⁄2 minutes to the gentlewoman ing a vote to block it. What does that sonal information. from New York (Mrs. MALONEY). say about our democracy? Mr. LAFALCE. Madam Speaker, I Mrs. MALONEY of New York. Madam With regard to the Community Rein- yield 1 minute to the distinguished Speaker, I rise in support of the vestment Act, punitive reporting re- gentleman from California (Mr. SHER- Gramm-Leach-Bliley Act. quired of community groups building MAN). To say that Glass-Steagall effec- affordable housing, for example, will (Mr. SHERMAN asked and was given tively separates banking and securities create unwarranted witch hunts. I permission to revise and extend his re- is to ignore the realities of the market- wanted to cast an aye vote for finan- marks.) place. Today, banks can buy securities cial modernization but only if con- Mr. SHERMAN. Madam Speaker, firms and banks can sell insurance. sumers, ordinary people, could also banks, insurance companies, and stock This bill provides legal and regulatory benefit from these megamergers. brokerage firms are combining today; clarity. Unfortunately, the bill went in the and the old walls and distinctions be- While on the whole, the act makes wrong direction. I urge a no vote. tween financial products that fit in one U.S. companies more competitive, I Mr. LAFALCE. Madam Speaker, I area and another are beginning to would like to have seen it improved in yield such time as he may consume to break down. several areas. With regard to privacy, the gentleman from Maryland (Mr. The question is not whether we will the bill establishes the principle of CARDIN). have the perfect bill but whether we Federal regulation of consumer privacy (Mr. CARDIN asked and was given will have a bill at all. This bill requires for the first time. I would have liked to permission to revise and extend his re- that consumers are given disclosure have seen stronger language. In the marks.) when they go into a bank that a par- conference, numerous amendments Mr. CARDIN. Madam Speaker, I rise ticular product is not FDIC insured. toughening the privacy language were in support of the conference report, They have no such protection now. offered and defeated on largely party with reservations. It prevents the combination of finan- lines. I look forward to returning to Congress has been working for many years cial and commercial enterprises in a this issue next year. to reform the Nation's outdated financial serv- way that could endanger our entire fi- b 2230 ices laws. After several attempts at crafting nancial system. It provides modest pri- comprehensive legislation, I am pleased to I would also have liked to have seen vacy protections that we do not have see that the House, the Senate and the ad- stronger CRAs, a goal toward which under current statute. ministration have reached agreement on a bill We can wait for the perfect bill, turn the gentleman from New York (Mr. LA- that accomplishes this task, while preserving our back, and watch the combination FALCE), the ranking member, ably financial regulation along functional lines. After fought. Even so, I believe the positives of financial enterprises occur with 65 years, it is important that we modernize our far outweigh the negatives. nothing to ensure that the public inter- Perhaps most importantly, the con- financial services laws. This legislation does est is protected, or we can instead vote ference committee upheld the strict provide the necessary legislative framework to for an admittedly imperfect bill. separation of banking and commerce, a allow financial institutions to compete fairly in This is a major step forward in pro- goal which the gentleman from Iowa the market. That is in the best interest of my tecting the public interest. constituents and I shall support the conference Mr. DINGELL. Madam Speaker, I (Chairman LEACH) has long cham- pioned. report. yield 1 minute to the distinguished Madam Speaker, the markets have However, I must express my disappointment gentleman from Illinois (Mr. DAVIS). already overwhelmed the Glass- that the conference report does not provide (Mr. DAVIS of Illinois asked and was Steagall wall. Gramm-Leach-Bliley customers the opportunity to prevent the dis- given permission to revise and extend will provide new modern rules allowing closure of information to affiliated companies. his remarks.) U.S. companies to move forward and It does allow them to opt-out of disclosures to Mr. DAVIS of Illinois. Madam Speak- compete globally in the new Internet companies with whom their financial institu- er, we have heard a great deal all economy. tions have no affiliation, except when the insti- evening about how good this bill is. I I urge a yes vote. tutions have entered into a joint agreement. agree, it is good. It is good for the Mr. DINGELL. Madam Speaker, I This may result in the free exchange of per- banks, good for the corporations, good yield 11⁄2 minutes to the distinguished sonal information, such as bank balances, for business, good for small banks who gentlewoman from California (Ms. LEE) credit card transactions, and check receipts, want to be practically exempt from a member of the Committee on Bank- between life insurance companies, mortgage CRA. But it is not good for consumers. ing and Financial Services. issuers, stockbrokers and other commercial It is not good for consumers who de- Ms. LEE. Madam Speaker, I thank entities without the consumer's knowledge or sire privacy protection. It is not good my colleague for yielding me the time. consent. for disadvantaged and distressed com- Madam Speaker, I rise in strong op- This situation is particularly troubling be- munities that have been redlined, disposition to S. 900. There is no question cause Congress has not yet passed medical criminated against, raped, and aban- that we need to update 1930’s laws on privacy legislation. It is important to recognize doned. It is not good for consumer ac- financial services. I joined with many that the HHS Secretary's proposed medical tivists who generated CRA in the first colleagues to try to craft a bill so that privacy regulations, set to take effect next place. And so, it is a good bill, but it is it would also, however, protect con- February, are restricted in scope to health pro- not good enough to protect CRA. It is sumers. Financial services are making viders, health insurers, and health information a good bill, but not good enough. big gains with this bill, and consumers clearinghouses. Limited by legislative authority I urge that we vote to protect CRA. should be included. Unfortunately, granted in HIPAA, these rules cannot limit the Vote against it. they have been left out. secondary release of information beyond Madam Speaker: we have heard from many For example, pro-consumer amend- these specific entities. Therefore, once this fi- quarters that this is a good bill and in many ments offered were rejected by the con- nancial services bill becomes law, information ways it is. However, in several instances it

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00056 Fmt 7634 Sfmt 9920 E:\CR\FM\K04NO7.141 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11539 does not do what some suggest that it does. of all, because many have raised this across this country and that will keep our fi- The so-called privacy protection of customers great facade, but 2 years ago when a nancial services sector competitive in the being given an opportunity to ``opt-out'' clearly bill was up here and some of the advo- world economy. demonstrates the corporate benefits this bill cates to it would have allowed us with We have a new law that will remove the intends. If this bill will benefit consumers, let regards to being against this bill be- rusted chains of Glass-Steagall and that will the corporations sell themselves by mandating cause it does not have enough privacy help insure that consumers receive quality fi- that consumers must ``opt-in'' to have informa- protections in this found it in their nancial services and new protections. The tion on themselves shared or sold. Financial wisdom and hearts to vote for a bill measure removes the barriers preventing affili- literacy is already faced with a plethora of that had none in it. ation between banks, insurance and securities challenges let alone teaching consumers how In Minnesota we talk about pro- entities and provides financial services firms to search for obscure fine print to protect pri- tecting that one bank because they the choice of conducting certain financial ac- vacy. One key lost opportunity is the failure to trespassed or were thought to have tivities in bank holding company affiliates or in insist that expanded financial powers be ac- trespassed had to, of course, deal with subsidiaries of bank structures on a safe and companied by an appropriate expansion of a CRA agreement or with regards to a sound basis. The agreement will not under- CRA. privacy agreement. I am concerned mine the national bank charter vis a vis state The proposed small bank exam schedule about that one bank, but I was con- banks, foreign banks, or the activities of U.S. borders on an outright exemption given the cerned about the other 549 banks in banks that have subsidiaries abroad with rel- ``twice a decade'' schedule proposed. I am Minnesota that did not have any law ative powers. also afraid that some of the report language that would govern their particular pri- The conference agreement brought resolu- will discourage communities from commenting vacy. tion to the differences over traditional bank se- or even contacting a financial institution re- This covers all the banks in the Na- curities powers. We have successfully shut down the commercial loophole by prohibiting garding their communities credit needs. tion and all the insurance firms in the This bill will not further community reinvest- Nation and all the security firms in the the sale of unitary thrifts to commercial enti- ment; therefore, notwithstanding its other posi- Nation and all the entities that are fi- ties. Functional regulation has been estab- tive feature, I cannot support it. nancial in nature are covered under lished on matter from insurance sales to anti- Mr. LAFALCE. Madam Speaker, I this particular bill in terms of a pri- trust/anti-concentration law enforcement. Im- portantly, the bill enhances the viability of yield 31⁄2 minutes to the distinguished vacy policy. gentleman from Minnesota (Mr. Now, even though it has taken 6 smaller community banks and financial entities VENTO), the ranking member of the years to pass this, guess what? Next vital to extending services and credit through Subcommittee on Financial Institu- year we are going to have to do some our greater economy; rural and urban. We do not have complete parity for affili- tions and Consumer Credit. more work. I hope that my colleagues Mr. VENTO. Madam Speaker, I rise, realize we have not worked ourselves ation between banks and insurance and securities firms with regard to commercial activities of course, in strong support of this. I quite out of a job here yet. We may because of the 15 year grandfather provisions. certainly admire the passion and the have some imperfections in this legis- We could have merged the bank and thrift intensity of our colleagues that have lation, as there is in others. And I will charters and merged the two deposit insur- presented arguments tonight in voicing gladly confess that to my colleagues ance funds that remain separate in law today. their concerns. that we are going to have to come back I would have also hoped that we could have I think once we get through some of and do additional work in this par- included fair housing compliance on insurance the rhetoric and hyperbole we might ticular area. But we have a solid foun- affiliates, low-cost banking accounts and appli- get down to some of the facts. I think dation. cation of Community Reinvestment Act-like re- their arguments would seem to steal The principal provisions of this bill quirements on products that are similar to defeat from the jaws of victory in which have recognized the rusting and bank products, such as mortgages. There are, terms of this is a pro-CRA bill. It ex- weakened and rotten chains of Glass- however, no perfect bills produced through the pands CRA. It does so, I think, in a Steagall are finally recognized, and Congressional process with 535 views in the way; and that was an absolutely funda- Congress is getting out in front and mix with the Administration's phalanx of regu- mental demand by the President. rationalizing and putting a policy in lators and policy works. I respect the fact that the gentleman place in which our financial founda- The focus of the lengthy and public debate from Iowa (Chairman LEACH) and the tion, a dysfunctional system, can work. over this legislation has been the opening of ranking member fought like lionesses That is what this is really all about. I the financial services marketplace to new over their cubs trying to protect this think in the process of doing so, we competition and the reduction of barriers be- and recognizing the necessity of doing have advanced and improved consumer tween financial services providers. It is equally it. This was the last thing that we provisions in this bill. We should be important that this bill is a positive step for our dealt with. It was tough. We have dis- proud to vote for it and proud to work constituents and the communities in which closure in here. There are provisions for the results, not simply polarization they live, as well. with regard to reporting which I think that this Congress I think too often has In general, there are inherent benefits of are onerous, but they are workable and reflected. This year let us do some- being able to provide streamlined, one-stop we expand CRA. thing positive, let us vote for this bill. shopping with comprehensive services choices Thousands of applications and thou- Madam Speaker, I rise in support of this for consumers. According to the Treasury De- sands of other activities that went on conference report. This agreement, reached in partment, financial services modernization that did not need CRA will and every a difficult and wrangling 66 Member con- could mean as much as $15 billion annually in part and every branch of that holding ference between the two bodies with very dif- savings to consumers. Hopefully, some of company will have to have a positive ferent products, is a historic bill. these dollars will materialize. We also have CRA rating in order to accomplish it. The conference report on S. 900 is a bal- achieved other policy victories for consumers In this bill, we put teeth back in the ance. It is a balance between the House- across the country. Fair Credit Reporting Act which had passed bill and the Senate-passed bill. It is a We have modernized the Community Rein- been extracted several years ago. That balance between competing industries. It is a vestment Act (CRA) in a positive manner. The is an important consumer gain. balance between bigger banks and smaller CRA was enacted by Congress in 1977 to We have the Prime Act in here that banks. It is a balance between business and combat discrimination. The CRA encourages the gentleman from Illinois (Mr. RUSH) consumer needs. It is a bill that does not allow federally-insured financial institutions to help and Senator KENNEDY sponsored which us to continue to stick our heads in the sand meet the credit needs of their entire commu- is so important to our local commu- with regard to the state of the financial serv- nities by providing credit and deposit services nities. There are a lot of good things in ices industry and instead brings the law up to in the communities they serve on a safe and this bill. The activity of the gentle- date. sound basisÐa basic reaffirmation of the pur- woman from Colorado (Ms. DEGETTE) I worked upon and signed this conference pose of insured depository institutions. Accord- with regards to spousal abuse is in this report on S. 900, the Financial Services Mod- ing to the National Community Reinvestment particular bill. ernization Act, in an effort to pave a path for Coalition, the law has helped bring more than But beyond that, of course, the pri- the future that will provide financial opportuni- $1 trillion in commitments to these commu- vacy issue is the most interesting issue ties for American consumers and communities nities since its enactment. Across this great

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00057 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.060 pfrm02 PsN: H04PT1 H11540 CONGRESSIONAL RECORD — HOUSE November 4, 1999 nation, organizations, belonging to NCRC, those loads or actions that qualify under the ity to detect and enforce any violations of ACORN, LISC, Enterprise, Neighborhood CRA reporting provisions of section 711 of the credit reporting and consumer privacy, rees- Housing Services, and others, have engaged Act. tablishing regulatory provisions and the related CRA to work with their local financial institu- Other positive consumer provisions include enforcement powers essential to the same. tions to make their communities better places the requirement that institutions ensure that For the purposes like servicing accounts, or- to live. consumers are not confused about new finan- dering checks, selling loans to the secondary Importantly, the conference agreement will cial products, along with strong anti-tying and market, giving consumers frequent flyer miles continue to ensure that CRA will remain es- anti-coercion provisions governing the mar- and complying with federal laws, the agree- sential and relevant in a changing financial keting of financial products. A new program to ment sets out exceptions. In crafting regula- marketplace. It is not everything I wanted or provide technical assistance to low income tions to implement this law, the regulators supported during the several amendments micro-entrepreneurs, known as the PRIME should do nothing to further any sharing of ac- process. It does, however, further the goals of act, will be created with enactment of this count numbers or encrypted access codes the Community Reinvestment Act by requiring Conference Report. ATM fees will have to be which is not expressly conveyed through `òpt- that all of a holding company's subsidiary de- fully disclosed to consumers, not only on the in'' permission from consumers prior to any pository institutions have at least a ``satisfac- computer screen, but, also on the ATM ma- activity that would share such numbers. Fur- tory'' CRA rating in order to affiliate as a Fi- chine itself. ther, the regulators should not make any ex- nancial Holding Company or to engage in any I am disappointed that the conference com- emptions that would make it possible for con- of the new financial activities authorized under mittee rejected provisions I initiated which en- sumers to opt in over the phone to a tele- this Act. This strengthens and modernizes the couraged public meetings in the case of marketer regarding the sharing of their ac- reel of CRA in that current law does not have mega-mergers between banks which both count number. Condoning such a practice a CRA satisfactory requirement for non-bank have more than $1 billion in assets where would simply reaffirm the status quo with re- activities in which banks now seek to engage. there may be a substantial public impact be- gard to those bad actors who would take ad- The Federal Reserve Board has informed us cause of the larger merger. This would have vantage of the practice and avoid the clear in- that thousands of applications have been ap- provided our constituents with the important tent of the law. As the regulators begin to shape appro- proved without any CRA test that this bill will opportunity to express their views regarding priate exceptions in regulation, I entreat them apply. Further, according to the Treasury De- mega mergers and their impact in our commu- to look carefully at the statute and to the clear partment, if a bank were to proceed without nities. intent to limit exceptions. Sharing with third having a satisfactory CRA, the regulators have As my colleagues are aware, this con- parties outside of the scope of these limited strong enforcement authority, including mone- ference report contains landmark financial pri- exceptions should not be allowed. The legisla- tary penalties, cease and desist and divesture, vacy protections for consumers. Today, there tion does attempt to provide some competitive that they could apply. is no federal law to protect your privacy or to equality to smaller institutions vis a vis larger The Conference rightly rejected the other stop the sale or sharing of your financial affiliated structures without providing loopholes body's proposed small bank exemption and records with third party companies. As many which would invade consumers financial pri- safe harbor provisions for CRA. We did ac- in my home state of Minnesota learned this vacy. The regulators should not provide except, however, a modified disclosure and re- year, not even credit card numbers are safe ceptions merely to make something easier for porting system. I strongly disagreed with the from telemarketers unless we act in the con- financial institutions when it comes at the ex- burdensome, so-called ``sunshine'' and report- ference report to put in place substantive law. pense of the knowledge and benefit of con- ing provisions in the Senate bill. They certainly With enactment of this agreement, Con- sumers. raise the specter of harassment of pro-CRA gress will give consumers real choices to pro- Some have suggested that these major new groups. However, very few would oppose tect their financial privacy. This conference re- privacy protections be jettisoned because they openness and public disclosure. Certainly, the port will provide some of the strongest privacy do not go far enough. Rejection would make disclosure of information could spell out the ef- provisions to ever be enacted into any federal these unprecedented good privacy protections fectiveness of these groups working so hard in law. This agreement, based upon the strong the enemy of a skewed version of what is our communities and the effectiveness of the House provisions that I helped draft, has an best. To reverse the major strides made by CRA itself. affirmative mandate upon all financial entities, this legislation is to steal defeat from the jaws I believe the reporting requirements, al- whether federal or state, so that all banks, of victory. If Congress says ``no'' to these new though improved, remain an extraordinarily dif- brokers, insurance companies, credit unions, privacy provisions, the result would be busi- ficult policy as structured in this measure. It no credit card companies, and many others must ness as usual. Tacitly agreeing to sell your doubt will be more of a burden to community protect your personal financial information. credit card numbers to telemarketers and per- groups and banks who currently do not file Furthermore, consumers will have an impor- mitting your financial data to float around the such status reports. However, we were able to tant choice of `òpting-out'' of most information open market like the latest trade item on eBay streamline the reporting requirements and to sharing with unaffiliated third parties. Financial would be a set back for privacy. limit who should file a report even as we gave institutions will no longer be able to share your Madam Speaker, what is clear is that a law the regulators substantial authority to properly customer account numbers or access codes that requires consumer action is appropriate oversee such provisions. We should be mind- with unaffiliated third parties for the purpose of but third party and affiliate `òpt-out'' is hardly ful of the Administration's and regulators' ex- telemarketing. When you open an account and the first and last word in consumer rights. We pressions of good will to take a common each year thereafter, you will receive a full dis- can do more and can do better. The fact is sense approach with regards to its implemen- closure of the privacy policies of your bank, that a number of consumers have such a right tation. Hopefully they will help make these dis- credit union, securities firm, mutual funds or of `òpt-out'' today under Fair Credit Reporting closure and reporting requirements more insurance companies. If the policy is not Act or through voluntary institution policies. workable. Congress certainly must closely strong enough, this gives you the choice to Even with that opportunity in law and practice, monitor the implementation of these provisions choose a new company or to communicate only a small fraction of individuals, less than 1 and their effects. your concerns to that financial enterprise. percent, exercise that option. Consumer The conference report also contains two Importantly, this conference agreement pro- choice may give us a positive feeling of con- studies: one evaluating business lines associ- vides that financial institutions have an affirm- trol and remedy but what does it really accom- ated with CRA and another looking at the im- ative responsibility to protect and respect your plishÐwhat is the bottom line? Does it provide pact of the changes or impact of this law on financial privacy. Federal regulators are given results if only a fraction of 1% respond to the CRA. I am concerned about the short turn- the authority to set standards which guide the celebrated `òpt-out''? around time of the report required of the Fed- regulated and which will protect the security I do want to note something on the medical eral Reserve Board. I would hope that this im- and confidentiality of a customer's personal in- privacy provisions that were deleted from the portant study of the default and profitability of formation. House-passed bill, H.R. 10, in this conference CRA loans will not be rushed to the point of We were successful in improving upon the report. Mindful of the deep concerns raised by not doing an adequate or fair job solely to House provisions by agreeing to allow states our colleagues on the Commerce Committee meet an arbitrary deadline. Further, this study to give even more privacy protection to con- and many other outside the Congress, we fi- should be inclusive and identify all loans (indi- sumers at their discretion. Stronger state laws nally deleted these admittedly less than per- vidual, commercial or other) or activities that will not be preempted by this federal law. The fect provisions in the bill in lieu of improving would qualify or be given as credit to financial agreement also strengthens the Fair Credit them. The House approved a convoluted mo- institutions for CRAÐand certainly not just to Reporting Act, giving bank regulators the abil- tion to instruct the conferees to do as much.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00058 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.070 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11541 I had and still have concerns about the leap The SPEAKER pro tempore. The cial institutions but treats the people of faith that this actionÐdeleting the provi- Chair would like to announce that the who are trying very hard to preserve sionsÐrequired. I hope that we will not be dis- gentleman from Iowa (Mr. LEACH) has 2 some equity and some social justice as appointed a I note the recriminations that have minutes remaining, the gentleman children who would misbehave. We already been voiced by some. from New York (Mr. LAFALCE) has 2 should do better and we should reject I am pleased that the President has recently minutes remaining, and the gentleman this bill and try it. proposed comprehensive privacy provisions as from Michigan (Mr. DINGELL) has 4 Madam Speaker, I ask that the very a result of the Health Insurance Portability and minutes remaining. thoughtful letter explaining how this Accountability Act of 1996 (HIPAA) law and Mr. DINGELL. Madam Speaker, I bill weakens the Community Reinvest- hope that they will provide the protection we yield 2 minutes to the distinguished ment Act be printed here. sought to assure and that there are no loop- gentleman from Massachusetts (Mr. NOVEMBER 4, 1999. holes for medical privacy with regard to finan- FRANK). Congressman BARNEY FRANK, cial institutions. Consumers should not be (Mr. FRANK of Massachusetts asked House of Representatives, Rayburn House Office forced to disclose and make public private and was given permission to revise and Building, Washington, DC. medical data just to get insurance coverage. extend his remarks, and include extra- DEAR CONGRESSMAN FRANK: Having tracked Although this legislation creates a new affili- neous material.) the so-called ‘‘financial modernization’’ leg- ated bank holding company structure that al- Mr. FRANK of Massachusetts. islation currently pending before you lows insurance, banking and securities firms to Madam Speaker, this is half a bill, and through both the House and Senate over the it is not enough. It does a very good job last two years, we are writing to strongly join, that must not translate into misuse and urge you to vote against the passage of this abuse of medical records by insurance com- of creating the conditions in which the bill. panies and affiliates. No one should be able to capitalist institutions can flourish, and This legislation stands to dramatically share private medical or genetic information to that is a good thing. We want capital alter the nation’s financial services industry base credit upon or for other unrelated pur- to move freely. We give the financial by allowing cross affiliation and redistrib- poses. institutions everything they have uting powers among banks, securities, and Madam Speaker, we have been in the asked for. insurance companies. Despite serious mis- trenches on this bill for the last five years, fol- Having done that, it is especially in- givings regarding the impact this bill would lowing more than 20 years of debate on finan- appropriate that this bill treats Com- have on low and moderate-income commu- cial modernization. We are at the goal line. I munity Reinvestment Act institutions, nities and communities of color, we might volunteers, lower-income people, peo- have been willing to accept these changes if again want to express my appreciation to Congress simultaneously agreed to mod- Chairman LEACH, Ranking Member LAFALCE, ple concerned about equity, as if they ernize the Community Reinvestment Act of Chairwoman, ROUKEMA, our counterparts in were suspect. Now, the ranking mem- 1977 (CRA). Currently applicable only to the Senate, and all the respective staff, espe- bers of the committees in the House banks, the CRA might have been strength- cially my personal staff, Larry J. Romans, and the Senate, the gentleman from ened by extending this obligation to securi- Kirsten Johnson-Obey, and Erin Sermeus for New York (Mr. LAFALCE) and Senator ties and insurance companies as well as their outstanding work, cooperation and pa- SARBANES, tried to prevent this from newly authorized Wholesale Financial Insti- tience on this important legislation. We worked happening, but they were not success- tutions. This would have allowed commu- hard together to create a bipartisan product ful given the odds that they faced. nities like the ones we represent to build on This bill is a very significant expan- the success of the bank. CRA that has helped that has gained the support of the Administra- to generate critically needed dollars for tion and that overcame the polarized Senate- sion of financial institution activity, home mortgages, rental housing, and compassed measure. The Financial Services Mod- and it is a grudging recognition of mercial/industrial real estate development. ernization Act of 1999 is a tremendous CRA. Indeed, as the banks are deregu- We recognize that, throughout this debate, achievement, if bittersweet from some reasons lated and give more freedom, low-in- supportive legislators—including members of mentioned. It is a solid foundation to build our come volunteers who put effort into the Massachusetts delegation—worked to economy upon as we move into the next cen- trying to preserve some social fairness support CRA and to limit the damaging tury. I urge my colleagues to support the con- in their communities are burdened changes demanded by Senator Phil Gramm with excessive regulation. (R-Texas) and other opponents. We therefore ference report. very carefully reviewed the complicated Mr. DINGELL. Madam Speaker, I It is entirely unfair for us in this piece of legislation to express changes that were finally adopted in the con- yield 1 minute to the distinguished ference committee report. Unfortunately, we gentleman from New York (Mr. HIN- unbounded confidence in the ability of have reached the conclusion that they do not CHEY). the financial institutions to make our adequately serve the needs of the low and Mr. HINCHEY. Madam Speaker, it lives better and at the same time ex- moderate-income families and individuals occurs to me that the one salutary as- press suspicion of community invest- who live in the communities we serve. pect of this bill is that it may finally ment groups. Because that is what this Specifically, the current bill would hurt provide the momentum to move us to bill does. It treats them, over the ob- these communities by: change the way we finance political jections of many, but, nonetheless, it —allowing cross affiliation between finan- campaigns. treats them as if they were suspect. It cial service companies without giving the public opportunities to provide input This bill, if nothing else, is a bril- deregulates the banks and over-regu- through an application process. The House liant billboard for campaign finance relates people whose only crime was to version that passed earlier this year would form. Seldom before has so much offend powerful political interests be- have required public hearings for cross in- money been spent by so few to the det- cause they cared about equity. dustry mergers and very large bank mergers. riment of so many. If we just look at It is a paradigm of a mistake we This language is no longer included in the the aspects of privacy alone, we see make too often here. Yes, we should bill. what is going to happen to people in create the conditions in which cap- —allow cross affiliation without extending this country. This bill creates huge italism can grow and enrich us all. But CRA requirements beyond banks. It is there- conglomerates, enormous financial we should know by now that capitalism fore possible for critical and substantial lines of businesses to be shifted away from trusts, and it allows those financial alone, the movement of capital, banks and away from any CRA responsi- trusts and conglomerates to manipu- unbounded will create wealth but it bility. late information back and forth inside will create inequities, it will create so- —requiring no effective penalty for banks of those conglomerates and outside cial problems. that cross affiliate and do not maintain a with unaffiliated entities as well with And we must always be careful to ac- Satisfactory or higher CRA rating. Language whom they share marketing agree- company that, it is a lesson we should previously included in the conference comments. have remembered from Franklin Roo- mittee report allowed federal regulators to People will be reduced to objects sevelt, we should accompany that by require divestiture for failure to maintain a locked in amber, to be examined mi- measures which empowers those who minimum Satisfactory CRA rating. This language has been removed. Even if effective nutely and manipulated carefully and are trying to offset some of the ill ef- penalties were included, the provision re- intricately to deprive them of their fi- fects, who are trying to preserve some quiring bank affiliates to maintain a Satis- nancial resources. It is a mass move- social justice. factory CRA rating is of limited use—98% of ment of money from one class to an- This bill does not do this. It gives a all banks meet this standard because the other. It is a bad bill. complete Christmas list to the finan- regulations require minimal CRA activities

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00059 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.072 pfrm02 PsN: H04PT1 H11542 CONGRESSIONAL RECORD — HOUSE November 4, 1999 comparable to a bank’s competitors. Often, bail them out also at the taxpayers’ ex- date in this bill, without the privacy banks can achieve such a rating despite an pense. But it did not show. protections that we create for the first obvious lack of adequate performance and a Having said that, what we are cre- time under Federal law in this bill. failure to substantially invest in low and ating now is a group of institutions Horror stories have been presented. moderate-income and minority commu- Those horror stories exist under nities. which are too big to fail. present law. We change that in consid- —damaging the current CRA at its founda- b 2345 tion by extending the examination cycle for erable part. We do not go as far as the all small banks. Federal examinations al- Not only are they going to be big gentleman from Michigan (Mr. DIN- ready lag behind the current schedules, often banks, but they are going to be big ev- GELL), the gentleman from Massachu- by 18 or more months. Small banks, particu- erything, because they are going to be setts (Mr. MARKEY) and I would like to larly in rural areas, often need the most en- in securities and insurance, in issuance go, but I am not going to let our desire couragement through a public input process of stocks and bonds and underwriting, to go much further preclude us from a to help identify and meet the needs of the and they are also going to be in banks. reality, the reality that we go farther low and moderate income communities. —damaging the core of the CRA by signifi- And under this legislation, the whole of today in protecting privacy than we cantly discouraging public input into a the regulatory structure is so obfus- ever have before, and it goes signifi- bank’s future CRA activities. Because of the cated and so confused that liability in cantly. broad scope of the so-called ‘‘sunshine’’ pro- one area is going to fall over into li- With respect to CRA, a Senate staffer vision, anyone who even raises the issue of ability in the next. Taxpayers are walked out of the final conference de- CRA with a bank and subsequently succeeds going to be called upon to cure the fail- liberations, the Senate staffer who opin developing a cooperative and meaningful ures we are creating tonight, and it is posed the nomination of Jerry Hawke, (i.e., more than $10,000 value) CRA agree- going to cost a lot of money, and it is because he was not strong enough on ment with that bank will be subject to bur- CRA, as the present Democratic Comp- densome reporting requirements under se- coming. Just be prepared for those vere penalties. Federal regulatory agencies events. troller of the Currency, and he said the that often cite the lack of CRA comments in You are going to find that they are Senate caved on everything. They a bank’s public file may soon be hard pressed too big to fail, so the Fed is going to be would have repealed CRA for small to find even a handful from those organiza- in and other Federal agencies are going banks; they caved on that. They would tions who risk the cost of scrutiny. This will to be in to bail them out. Just expect have created a safe harbor provision; lead to less information generated, particu- that. they caved on that. They would have larly from small grassroots organizations, With regard to the privacy, let us created intimidation and harassment and possibly even more inflated CRA ratings. with respect to their disclosure and re- —providing no regulatory monitoring or take a look at it. We are told about all enforcement of CRA commitments by banks the protections for privacy that you porting requirements; they caved on even if they are cited as a reason for ap- have here. If you want to have a good that. They would have said you could proval for applications by the regulatory laugh, laugh at it, because here is the not examine banks. We insisted upon agency. For example, in a recent case the joke: The only thing the banks are full, total, regulatory discretion to ex- Federal Reserve cited Fleet Bank and going to be required to say with regard amine any bank whenever there is rea- BankBoston’s $14 billion CRA commitment to what they are going to do with re- sonable cause to do so. The Senate as a reason to approve their merger. Yet, the gard to your privacy, and this is every- caved on that. Fed would have no meaningful ability to thing, from your health to your finan- This is a victory for the consumer, oversee this commitment and to encourage for communities, and for the mod- compliance. cial situation, to everything else, is In summary, while this legislation may ‘‘we are going to stick it to you.’’ The ernization of our financial services in- not sound the death knell for CRA, it does privacy that you are going to have dustry. weaken its future health so substantially under this legislation is absolutely Mr. LEACH. Madam Speaker, I yield that we must urge you to oppose its passage. nothing. And what is going to drive myself the balance of my time. The SPEAKER pro tempore (Mrs. Sincerely, that is going to be a simple fact, and MARC D. DRAISEN, EMERSON) The gentleman from Iowa is that is that the banks are all going to President/CEO, Massa- recognized for 2 minutes. chusetts Association be competing with the most diligence, Mr. LEACH. Madam Speaker, with of CDCs. and the result will be that those pro- change there are always doubts, but TOM CALLAHAN, tections are going to be manifested in what is the truth about this bill? Let Executive Director, a race to the bottom. me affirm what the gentleman from Massachusetts Af- Consumers, investors and the Amer- fordable Housing Al- New York (Mr. LAFALCE) and the gen- ican public will have no protection to tleman from Minnesota (Mr. VENTO) liance. their privacy whatsoever under this AARON GORNSTEIN, have just noted. This bill solidifies, Executive Director, bill. The only thing the banks have to rather than weakens, CRA. No bank is Citizens Housing say and the other institutions have to exempted from community reinvest- and Planning Asso- say is ‘‘we are going to stick it to ment responsibilities. No bank may ciation. you.’’ take on any new powers without a sat- Mr. DINGELL. Madam Speaker, I Vote against the conference report. isfactory CRA rating. All banks must yield myself the remaining time for Mr. LAFALCE. Madam Speaker, I maintain a continuing CRA obligation. purposes of closing. yield myself such time as I may con- If not, if any fall out of compliance, no Madam Speaker and my colleagues, I sume. new activities or acquisitions will be think we ought to look at what we are Madam Speaker, first of all, we are allowed. doing here tonight. We are passing a about to vote on a bill, a bill voted on Regarding privacy, let me say that bill which is going to have very little earlier today and passed by the Senate seldom has this body heard such doubt- consideration, written in the dark of 90 to 8. Insofar as my Democratic col- ful hyperbole. This bill, for the first night, without any real awareness on leagues are concerned, 38 Democratic time, bars financial institutions from the part of most of what it contains. Senators voted yes, 7 voted no. disclosing customer account numbers I just want to remind my colleagues There seems to be unanimity of opin- or access codes to unaffiliated third about what happened the last time the ion that we should repeal Glass- parties for telemarketing purposes. Committee on Banking brought a bill Steagall. There is a difference of opin- This bill, for the first time, enables on the floor which deregulated the sav- ion though about certain other provi- customers of financial institutions to ings and loans. It wound up imposing sions. opt out of having their personal finan- upon the taxpayers of this Nation Let me try to point out something cial information shared with unaffili- about a $500 billion liability. That is quite clearly: This phenomenon of ated third parties. This bill, for the what it cost to clean up that mess. merger and acquisition is taking place first time, makes it a Federal crime Now, at the same time, the banks by today thousands and thousands of punishable by up to 5 years in prison to engaging in questionable practices times, but without the consumer pro- obtain or attempt to obtain private wound up in a situation where the Fed tections that we have in this bill, with- customer financial information and the Treasury Department had to out the extension of CRA that we man- through fraudulent or deceptive means.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00060 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.087 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11543 These provisions apply to banks, se- purchase loans to African-Americans soared Lastly some of the other provisions of this curities companies and insurance 62 percent; Hispanics saw an increase of 58 conference report that I support are the do- firms. They also apply to mortgage percent, Asian-Americans nearly 30 percent; mestic violence discrimination prohibition companies, finance companies, travel and loans to Native Americans increased by which states that the status of an applicant or agencies and credit card companies. 25 percent. Since 1993, the number of home insured as a victim shall not be considered as As far as enforcement, the act sub- mortgages extended to low- and moderate-in- criterion in any decision with regard to insur- jects financial institutions to punish- come borrowers has risen to low- and mod- ance underwriting; the privacy protection for ments that include termination of ern-income borrowers has risen by 38 percent. customers information of financial institutions FDIC insurance, removal of officers Indeed, in my District, Hispanic students from provision; the study of information sharing and civil penalties up to $1 million or 1 the East End District of Houston historically among financial affiliates; and the fair treat- percent of the assets of the institu- have had a high dropout rate. Using funds ment of women by financial advisers. Both our tions. These provisions are powerful. made available by the CRA, the Tejano Cen- financial service laws and consumer protection The penalties are severe. ter for Community Concerns built the Raul laws need to be modernized. On balance, the To vote against this legislation is to Yzaguirre School for Success to meet the spe- measure, is a positive step in the right direc- vote against the most powerful privacy cial needs of students from low-income fami- tion to achieve this goal. I urge my colleagues provisions ever brought before this lies in this inner-city neighborhood. This to join with me in supporting this bill. school has performed outstandingly in its 3 floor. This is a balanced, pro-consumer, Mr. LEVIN. Madam Speaker, today, we are years in existence. In fact, over the past 2 pro-privacy bill, and I urge its adop- considering a measure which is long overdue. years, the school's students average Texas tion. The Financial Services Modernization Act will assessment of academic skills scores in- Ms. JACKSON-LEE of Texas. Madam help keep the American finance industry com- creased 18 to 20 percent. Speaker, today I rise in support of H.R. 10, petitive and at the same time provide one-stop the Financial Services Competition Act of Madam Speaker, while I am happy with the protections granted to CRA by this Financial shopping for consumers. I recognize that the 1999 and S. 900 the Financial Services Mod- bill the House is debating today is the product ernization Conference Report. I would addi- Modernization Conference Report I also have serious concerns. This bill does not contain a of nearly 20 years of effort and compromise. tionally like to acknowledge the hard work of It is a good bill, but it is not a perfect bill. the Banking and Commerce Committees, as CRA sunshine provision, which is the most troublesome part of the bill for many commu- In particular, I want to comment on two key well as the House-Senate conferees. How- sections of this bill. The provisions of this bill ever, I would be remiss if I did not mention nity groups. This may have a profoundly chilling effect on community groups' efforts to dealing with the Community Reinvestment Act some of the important concerns that I also forge partnerships with banks in their local (CRA) ensure the continuation of this vital pro- have with this legislation. First, let me mention communities. This bill also falls short of in- gram, but they could have been stronger. some of the positive aspects of the bill. I sup- creasing protections to CRA by rewriting the Under this agreement, the Community Rein- port the idea of updating the rules that our Na- rules for the financial services industry, thus, vestment Act will continue to apply to all tion's financial institutions operate under to creating a new creature called a financial hold- banks. Further, for the first time a bank's rat- bring their activity in line with the realities of ing company, with tremendous new powers. I ing under CRA will be considered when it life in today's America. hope that this new entity will meet the financial seeks to expand into new financial activities. Today's report represents groundbreaking fi- service needs of low and moderate income However, I would have liked to see more nancial services legislation that would dis- and minority Americans. This bill also falls banks covered under the CRA. The $250 mil- mantle many of the Depression era laws cur- short in adequately protecting customers of lion asset threshold in the conference report rently hindering the financial services industry banks affiliated with insurance companies that has the effect of giving too many banks a 5- from engaging in a modern global market- have a track record of illegal discrimination year ``safe harbor'' from CRA examinations. place. This measure would further permit under the Fair Housing Act. The conferees would have done better to hold streamlining of the financial service industry Additionally, the conference report does not to the more reasonable $100 million threshold thereby creating one-stop shopping with com- extend the CRA to non-banking financial com- included in the House-passed bill. prehensive services choices for consumers. panies that affiliate with banks. Specifically, I am also concerned about the privacy pro- This streamlining of financial services will not the conference report does not require securi- only mean increased consumer confidence, it tections contained in this legislation. In a word, ties companies, insurance companies, real es- these protections are inadequate. Consumers would also mean increased savings for con- tate companies and commercial and industrial sumers. The Treasury Department estimates should have the right to control who has ac- affiliates engaging in lending or offering bank- cess to their personal financial information. that financial services modernization could ing products to meet the credit, investment mean as much as $15 billion annually in sav- The privacy provisions contained in this legis- and consumer needs of the local communities lation are an improvement over current law, ings to consumers. they serve. The exclusion of nonbank affili- Many provisions of the Community Rein- but they don't go far enough. It is vital that ates' banking and lending products from the Congress take additional steps to address this vestment Act (CRA) remain in the conference CRA is significant because businesses such report. The CRA, enacted in 1977 to combat concern and I look forward to working with my as car makers and credit card companies, se- colleagues on this. discrimination in lending practices, encourages curities firms and insurers are increasingly be- Despite these concerns, I want to com- federally insured financial institutions to help having like banks by offering products such as pliment the extraordinary effort that went into meet the credit needs of their entire commu- FDIC-insured depository services, consumer crafting this compromise. I urge my colleagues nities by providing credit and deposit services loans, as well as debit and commercial loans. to support the Conference Report on Financial in the communities they serve. Indeed, in Additionally, private investment capital is de- Services Modernization. many respects, the conference report creasingly covered by CRA requirements. strengthens the CRA. Under this measure, Making it more difficult for underserved rural Mr. WAXMAN. Madam Speaker, the ``State- CRA would be extended to the newly created and urban communities to access badly need- ment of Managers'' on the financial services wholesale financial institutions, which are insti- ed capital for housing, economic development modernization bill, S. 900, contains an inac- tutions that could only accept deposits above and infrastructure. curate description of the medical records pro- $100,000 and are not FDIC-insured. Addition- Madam Speaker, I am also troubled by the vision that was in the House version of the bill, ally, the conference report, provides consumer fact that the conference report did not address H.R. 10, but not in S. 900. The statement protection provisions that require institutions to key concerns by Democrats to address issues claims that the provision ``requires insurance ensure that consumers are not confused about such as redlining, stronger financial and med- companies and their affiliates to protect the new financial products along with strong anti- ical record privacy safeguards and community confidentiality of individually identifiable cus- tying and anti-coercion provisions governing lending. There is a study however, included in tomer health and medical and genetic informa- the marketing of financial products. Further, the conference report that calls for the Treas- tion.'' In fact, the medical records language in the bill requires that all of a holding company's ury Department of look at the extent to which H.R. 10 represented a major invasion of the subsidiary depository institutions have at least services have been provided to low-income privacy of millions of Americans. a ``satisfactory'' CRA rating in order to affiliate communities as a result of CRA. This study The language would have allowed health in- as a financial holding company and in order to will be due 2 years after the enactment of this surers to disclose health records without the maintain that affiliation. bill. If this study shows that this bill has had consent or knowledge of the affected indi- Madam Speaker, CRA is a success story. a negative impact on low income communities vidual for a broad range of purposes, none of Between 1993 and 1997, the number of home I will revise my position for this bill. which were defined in the bill. These purposes

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00061 Fmt 7634 Sfmt 9920 E:\CR\FM\K04NO7.149 pfrm02 PsN: H04PT1 H11544 CONGRESSIONAL RECORD — HOUSE November 4, 1999 included ``insurance underwriting,'' ``partici- precedented, extensive safeguards. I sup- this bill. For the first time, all financial in- pating in research projects,'' and ``risk control,'' ported H.R. 10 when it passed the House in stitutions will have an ‘‘affirmative and con- among a long list of others. July, and I strongly support the conference re- tinuing obligation’’ to respect the privacy of Under H.R. 10, any health insurer could their customers, and the security and con- port today. fidentiality of their personal information. have sold or disclosed the records of its pa- This conference report is good news for Additionally, when a customer first opens an tients to any health, life, disability, or other in- consumers. It would expand the Community account—and at least annually thereafter— surance company without the individual's Reinvestment Act and ensure that new, ex- financial institutions must clearly and con- knowledge or consent. The provision also al- panded institutions are held to the high stand- spicuously disclose their privacy policies and lowed health insurers to sell or disclose pa- ard of CRA. In addition, it would protect con- practices. tient records for any ``research project,'' sumer privacy as never before. The bill additionally protects and im- whether it was research into credit ratings of The Financial services conference report is proves our community development laws. the patients or research of mental health serv- supported by big and small banks alike as well The legislation specifically states that ‘‘[n]othing in this Act shall be construed to ices to Members of Congress. as by the securities and insurance industries repeal any provision of the Community Rein- The medical records language in H.R. 10 because it would overhaul depression-era law vestment Act of 1977.’’ Moreover, as a result also excluded essential privacy protections. that only increase costs for consumers, inhibit of this soon-to-be law, banks will only be For example, the provision failed to place any competition, and stifle innovation. This bill will able to enter into new activities or merge if restrictions on law enforcement access to ensure that consumers can reap the benefits they are well capitalized, well managed, and health records; provide individuals the right to of the changing financial services marketplace. in compliance with CRA. access or inspect their health records; provide Perhaps the most significant victory for con- Finally, the legislation includes a number individuals the ability to seek redress when sumers contained in this legislation is an un- of other important consumer protections such as prohibitions against coercive sales their privacy rights are violated; or prevent en- precedented level of privacy protections. practices, and mandatory disclosures abut tities that obtained health information under When this conference report is passed, these the potential risks and the uninsured status the bill from redisclosing the information to provisions will represent the most comprehen- of investment products and insurance poli- third parties, including to employers, to news- sive federal privacy protections ever enacted cies. Banks must also make full disclosures papers, or for marketing purposes. by Congress. Moreover, this bill allows pre- of ATM fees. Because of the serious flaws with H.R. 10's emption of state laws in the event their privacy Each of these changes to current law is im- medical records provision, groups representing protections are even stronger. portant, and Congress should pass this legis- millions of individuals across the country op- Without its passage, banks will continue to lation to enact them. posed the language. Physicians, nurses, pa- expand their operations without statutory pri- FEDERAL HOME LOAN BANK SYSTEM REFORM tients, consumers, psychiatrists, other profes- vacy protections and without enhanced com- During the deliberations over this legislation, sional mental health counselors, and employ- munity reinvestment provisions. A vote for this I also sought to ensure that every community ees groups, as well as privacy advocates, and bill is vote for consumer privacy and commu- shared in the rewards of financial moderniza- organizations representing individuals with dis- nity development alike. The benefits to con- tion. As a result, this bill helps to guarantee abilities, individuals with rare diseases, individ- sumers and to the American economy will be that community banks will not be crowded out uals with AIDS, and senior citizens, among enormous, and I urge my colleagues to pass of the financial marketplace of tomorrow. The others, all opposed this language. These this landmark legislation. report before us grants community banks the groups included the American Medical Asso- Mr. KANJORSKI. Madam Speaker, I rise to same powers and rights that larger financial ciation, the American Psychiatric Association, support and speak about the financial services institutions have accumulated through regu- the American Nurses Association, the Chris- modernization conference report pending be- latory orders, and allows them to organize in tian Coalition, the American Federation of fore us. a manner that best fits an institution's busi- State, County and Municipal Employees, the In general, because the financial services ness plans. Additionally, I assiduously worked American Association of Retired Persons, and industry is undergoing sweeping changesÐ to ensure that this legislation would not place the Consumers Coalition for Health Privacy, driven in part by domestic market forces, inter- small financial institutions at a competitive dis- among scores of others. national competition, regulatory judgments, advantage. Further, 21 State attorneys general stated and technological advancesÐwe need to up- Another way that the bill helps small banks that the medical records provisions would per- date our federal laws. The compromise legis- to compete and small communities to thrive is mit ``widespread use and disclosure of sen- lation that we are considering represents a found in Title VI. I am especially pleased that sitive information without the individual's reasoned, middle ground that strikes an ap- this compromise agreement makes significant knowledge or consent, while providing only propriate balance by treating all segments of strides in updating the Federal Home Loan limited remedies for violations and no appar- the financial services industryÐbanking, secu- Bank (FHL.Bank) system. The bill ensures a ent limitations on re-disclosure.'' Editorial rities, and insuranceÐfairly and equitably. vibrant system able to meet the challenges of boards at newspapers including the Los Ange- Among other things, this bill should increase the next century with modern rules and state- les Times, The Washington Post, The Chicago competition, promote innovation, lower con- of-the-art financial products. America's home- Tribune, and USA Today also opposed H.R. sumer costs, and allow the United States to buyers, small business owners, small farmers, 10's medical records language. maintain its world leadership in the financial and small communities will benefit from a rein- I am pleased that S. 900 does not contain services industry. From my perspective, this vigorated FHL.Bank system. the anti-privacy medical records language that legislation also benefits consumers and pro- Specifically, the legislation establishes vol- was in H.R. 10. However, while the omission tects them pragmatically, although not per- untary membership on equal terms and condi- of this provision prevents damage to peoples' fectly. tions for all eligible institutions. The bill also privacy rights, there remains a need to ad- The bill that we are voting on today contains expands access to FHL.Bank advances for dress the lack of comprehensive privacy pro- a number of important elements that should community financial institutions, which are tection for Americans' health records. be enacted into law. banks and thrifts with less than $500 million in The medical privacy regulations proposed First, the legislation takes prudent steps assets. The changes in allowable collateral for by the Administration last week mark a step to prevent the indiscriminate mixing of FHL.Bank advances for community financial forward in establishing meaningful Federal banking and commerce. As a result, we will institutions pave the way for enhanced tar- medical privacy protections. The regulations, prevent the development of the cozy rela- geted economic development lending. tionships between financial firms and com- There was much need for this reform. Even however, are limited by statutory constraints. mercial companies that helped lead to the Congress can and must act to build on the disruption of the Japanese banking system though Congress authorized economic devel- foundation established by the proposed regu- earlier this decade. opment lending in 1989 and the Federal Hous- lations to ensure comprehensive medical pri- Additionally, the legislation preserves the ing Finance Board (Finance Board) wrote per- vacy protection. I will continue to work to viability of the national bank charter and missive rules to encourage it, the system's achieve that goal. the role of the Treasury Department in regu- collateral laws severely restricted such effects. Mr. SANDLIN. Madam Speaker, today lating our financial system. It was as if we were simultaneously saying, marks a historical day in the world of financial The bill further establishes functional ``go make these loans, but they are illegal to lines of financial regulation. As a result, reg- services. Passage of the S. 900/H.R. 10 con- ulators who know the financial activities use as collateral.'' Now, as a result of this bill, ference report will allow consumers to benefit best will oversee them. a framework is in place for community finan- from improvements in the financial services Consumers will also receive new protec- cial institutions to offer safe, sound, and fully system while protecting their privacy with un- tions for their financial privacy as a result of collateralized economic development loans. I

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00062 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.058 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11545 expect the FHL.Ba÷nks and the Finance cessful Affordable Housing Program, has merit porations to amass detailed information in Board to prioritize the system's economic de- and could finally allow the FHLBanks to do for electronic files and share these data with oth- velopment efforts. economic development lending as they did for ers. While such databases may help busi- Additionally, the legislation creates a flexible housing finance. I will therefore continue to nesses to better serve their customers, they capital structure that is based on the actual pursue the issue of creating an EDP for the can also result in a loss of confidentiality. risk of the system and not on antiquated sub- FHLBanks after we pass this bill into law Even though the conference agreement con- scription capital rules. This new, more perma- today. tains new federal rules allowing consumers to nent, capital system features two classes of In sum, the Federal Home Loan Bank Sys- op-out of sharing their information with third stock, a revised leverage ratio, and the param- tem Modernization Act of 1999 contained in parties, we must take further action once we eters for establishing a risk-based capital the bill takes some important and positive standard. In short, these changesÐwhich steps in modernizing the laws and rules gov- understand this electronic revolution more come as a result of a true bipartisan effortÐ erning the FHLBanks. There remains, how- completely. reflect the House-passed product, which called ever, a need for some additional refinements, Although we may be completing our work for the creation of a modern capital system as and I will work diligently with other Members today, it is important for us to remain vigilant opposed to another study of capital plans by of Congress to enact them into law in the fu- in each of these areas. I, for one, plan to con- the General Accounting Office. ture. tinue to closely monitor and carefully examine The modernization of the capital structure LONG-TERM CONCERNS each of these issues. will be important as the FHLBank system fos- A sweeping, industry-wide regulatory reform ters increased competition among lenders and bill like this one rarely comes along. Just as CLOSING assists well-capitalized community banks in was the case after we enacted the Tele- Madam Speaker, in closing, I wish to thank obtaining stable and attractive sources of communications Act of 1996, unintended con- Chairman LEACH and Ranking Member LA- funding. These increases in liquidity will also sequences will occur. Among my concerns are FALCE for their strong leadership and bipar- translate into increased support for community the consequences of an ever-evolving global and economic development lending within tisan efforts to shepherd this complex bill financial system, the effects of the bill on mar- through the legislative process. I also want to America's rural and urban neighborhoods. Ad- ket concentration, and the insufficiency of pri- thank my colleague RICHARD BAKER, who ditionally, the capital modifications will alleviate vacy protections. serves as the Chairman of the Subcommittee some of the pressure to arbitrage excess cap- Our financial services marketplaces are in- ital to earn competitive returns for member increasingly global. If managed effectively, on Capital Markets, Securities, and Govern- stitutions. Americans ought to benefit from the new comment Sponsored Enterprises on which I am The bill additionally modifies the formula petitive companies created by this legislation the Ranking member. Congressman BAKER used to allocate the $300 million per year in by receiving more and better goods and serv- and I have worked for more than five years to the Resolution Funding Corporation ices at a lower cost. Although this legislation enact legislation to modernize the Federal (REFCorp) obligations of the FHLBank sys- promotes competition in our domestic markets, Home Loan Bank system, and I am grateful tem. In crafting the legislation, we sought to it does little to respond to the potential dan- for his advice and counsel in achieving this find a fair and equitable way to allocate the gers resulting from economic globalization. goal. Our success in seeing this issue through obligation, without increasing or decreasing Jeffrey Garten, a former Clinton Administration demonstrates the positive results one can the FHLBanks' overall contribution to resolving Under Secretary of Commerce for Internal achieve when Democrats and Republicans put the savings and loan crisis. While switching to Trade, recently published an opinion piece in politics aside and work cooperatively to a flat percentage of net income is an improve- the New York Times on this point. In it he achieve a public policy goal. ment, the 20 percent figure ultimately adopted ponders how a sovereign nation responds ef- by the conference is not budget neutral and fectively to problems when politics are national This conference report is the culmination of will significantly increase the FHLBanks' an- and business is global. Now that we have more than 20 years of work on the part of nual payments. For example, under current passed this bill, Congress needs to spend Congress, several Administrations, and federal estimates, next year the FHLBanks will pay 33 more time strengthening the ability of the financial regulators to create a more rational percent more toward their REFCorp obligation worldwide financial system. and balanced structure to sustain our nation's than in 1999. This was not the intended pur- A wave of acquisitions and mergers in the financial services sector. While I may have pose of the change. The intended purpose financial services industry will also result from concerns about market concentration, was to promote stability for the FHLBanks. this bill. Consequently, I am worried about the globalization, and privacy, overall this is a Title VI also addresses governance issues. concentration of wealth and power in the good package that effectively modernizes our The bill delegates to the FHLBanks a number hands of a few powerful individuals and com- domestic financial system, while ensuring of day-to-day management issues such as panies. Moreover, such concentrations could strong protections for consumers and commu- setting dividends, establishing requirements result in new risks. In a recent speech, Fed- nities. I support this bill. for advances, and determining employee com- eral Reserve Board Chairman Alan Greenspan pensation. As the FHLBank system modern- said that megabanks are becoming ``complex Mr. CAPUANO. Madam Speaker, I rise in izes, these prudent measures will allow the Fi- entities that create the potential for unusually opposition to the conference report for S. 900, nance Board to focus its attention more in- large systemic risks in the national and inter- the Gramm-Leach-Bliley Financial Services tensely on safety and soundness concerns. national economy should they fail.'' In short, Modernization Act. While I do believe that our More regional control is still proper and should we need to attentively watch our changing fi- financial regulatory structure needs to be be sought for the FHLBanks regarding various nancial marketplace in order to protect con- adapted to respond to the rapidly changing management decisions, such as determining a sumers from potential abuses of corporate global marketplace, we should not abandon director's compensation. The conference com- power and guard taxpayers against another several core principles. Unfortunately, I believe mittee also went too far in decentralizing some bailout like the savings and loan crisis of the this bill falls short in several important areas. governance functions. For example, the legis- 1980s. In particular, the bill fails to adequately mod- lation now allows for the direct election of the Finally, although this bill contains the strong- ernize the Community Reinvestment Act to Chair and Vice Chair by each FHLBank's est federal privacy protections ever enacted keep up with the changing financial landscape. Board of Directors. The continued appointment into law, I have reservations. The passage of of the Chair and Vice Chair by the Finance this legislation does not diminish the need for The bill does make the CRA a condition of Board would help to ensure that the govern- Congress to develop and enact comprehen- new affiliations, and requires a satisfactory or ment-sponsored enterprise focuses on its pub- sive legislation in this area in the future. Dra- better CRA rating for banks that are offering lic mission. matic transformations in the financial services new financial products. However, the bill does Although I would have preferred that the industry suggest that the flow of information is not subject insurance companies, investment legislation include an Economic Development no longer limited to notes penned on an appli- firms, or other financial services companies Program (EDP) for FHLBanks, the conference cation, paper compiled in a folder, or com- that take deposits and make loans subject to ultimately decided not to include one at this ments entered into a passbook. The rise of the CRA. This will greatly lessen the impact of time. An EDP, modeled after the highly suc- computerized financial networks allows cor- CRA as more and more individuals do their

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00063 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.074 pfrm02 PsN: H04PT1 H11546 CONGRESSIONAL RECORD — HOUSE November 4, 1999 ``banking'' through financial services conglom- fidence to the American people by establishing bank account or credit card numbers to unaf- erates. high standards to protect the privacy of finan- filiated third parties for telemarketing, direct The bill also includes an onerous CRA cial records and information. In the Commerce mail marketing or electronic mail purposes. ``Sunshine'' provisions that will subject com- Committee, we unanimously adopted a provi- And finally, this legislation bans, with minor munity groups to burdensome new regula- sion that would have given Americans the safety exceptions, the despicable practice tions. I agree that there should be account- right to say no to the sale or transfer of their known as pretext calling. This blatantly crimi- ability on CRA agreements. Unfortunately, the most personal financial information. nal activity in which an individual impersonates bill mandates substantial reporting require- Unfortunately, the privacy provisions in this another in order to trick an institution into pro- ments for community groups and penalties for conference Report are very different. The bill viding confidential information, would be pun- non-compliance, but offers the regulators no allows banks to create huge financial struc- ishable by both imprisonment and fines. authority to enforce the CRA agreement itself. tures that include everything from insurance I applaud the hard work and dedication of We should be punishing the bad actors, but companies to marketing and travel agencies, the Conferees from the House and the Sen- most community groups are doing their best to among which private customer information can ate, as well as the Department of the Treas- provide much-needed resources to low- and be freely shared. ury, the Federal Reserve and the White moderate-income communities throughout the Moreover, the bill allows banks to sell pri- House. Without this cooperation, we would not country. They deserve our continued support. vate information to any entity, whether it's a be here today voting on S. 900. I encourage There has been considerable discussion re- part of the financial structure or not, as long my colleagues to join with me and vote for the garding this legislation's impact on the per- as they enter into a ``joint agreement to per- Financial Services Modernization bill, S. 900. sonal privacy of Americans. I believe that we form services or functions on behalf of the Mr. BEREUTER. Madam Speaker, this have a fundamental right to privacy of our per- bank.'' This includes marketing and the con- Member rises today to express his enthusi- sonal financial information. While the bill does sumer does not have the right to say no. astic support for the S. 900 Conference Re- take some small steps to protect that right, fi- I'm concerned that the privacy provisions in port, which he signed as a conferee. Today nancial services companies will still be able to the Financial Services bill threaten to take us marks the near-end of the two decade journey share this information between affiliates. At down a path where our bank managers know toward financial modernization. the very least, Americans, should be given the as much about us as our doctors and tele- At the outset, this Member would like to opportunity of `òpting out'' of having their per- marketers know as much about us as our thank and commend the distinguished chair- sonal information shared between financial mortgage companies. The American consumer man of the Banking Committee and the Chair- services firms. Not all customers will exercise should have the right to opt out of their private man of the S. 900 Conference Committee for that right. However for those who believe their financial information being sold or transferred Iowa [Mr. LEACH], for his successful, con- information should not be shared under any to outside third parties and affiliates without sensus-building leadership role in guiding fi- circumstances, this simple choice should be their knowledge or permission. Thus, I urge nancial modernization through a maze of com- available. the banks and financial services industry to go plexities to the consideration of the S. 900 The bill also does not include an important beyond what is required of them in this legisla- Conference Report today. In addition, the amendment that we passed in the House tion and to enact policies that will provide ranking member from New York [Mr. LAFALCE] Banking Committee. This amendment, spon- comprehensive and meaningful protection of also deserves to be commended for his role in sored by my colleague from California, Con- their customers' private records. the S. 900 Conference Report. Moreover, the gresswoman LEE, would have prohibited insur- Mr. ACKERMAN. Madam Speaker, I rise leadership of the House Commerce Com- ance firms that were in violation of the Fair today in support of S. 900, the Financial Serv- mittee and also the Senate Banking Com- Housing Act from affiliating with other financial ices Modernization Bill. This is indeed a mo- mittee should be applauded for their collective services companies. This simple amendment mentous day as we prepare to pass this his- role in the joint effort of financial moderniza- would require that these firms abide by the toric legislation. tion. laws of this nation before they were allowed to S. 900 achieves many goals in financial While there are many reasons to support expand. Unfortunately, this provision was re- modernization to better serve consumers and the S. 900 Conference Report, this Member moved without a vote before the bill came to businesses. The measure creates one-step will enumerate eight reasons. First, this meas- the floor of the House. shopping for bank accounts, insurance policies ure illustrates that a Federal statutory change This legislation makes sweeping changes to and securities transactions, requires banks to in financial law is imperative. Second, the S. the way financial services are delivered and disclose bank surcharges on ATM machines 900 Conference Report has provisions which regulated in this country. I will continue to and on the screens of ATM machines before will be of greater importance to rural, commu- work for these simple protections for con- a transaction is made, and ensures that banks nity banks, which there are many in this Mem- sumers and our communities, and I urge my lend to all segments of their communities with ber's congressional district. Third, this meas- colleagues to vote against this measure until the continued applicability of the Community ure will allow financial companies, to offer a these concerns are addressed. Reinvestment Act. diverse number of financial products to their Ms. ESHOO. Madam Speaker, I plan to I was particularly proud to be a conferee on customers. Fourth, this conference report will vote for the Financial Service Modernization the financial privacy section of this bill. After have a distinct, positive effect on consumers. Act Conference Report because I think there months of negotiations, we have crafted, what Fifth, this legislation will provide the first, Fed- are some very important things for the Amer- I believe, is a strong provision which will en- eral consumer financial privacy legislation. ican people. The new financial structure that hance the privacy that consumers want and Sixth, this legislation allows for no mixing of the bill creates will provide consumers greater deserve. Four provisions in particular evidence banking and commerce through a commercial choice and efficiency. However, I also wish to the achievements in the bill. basket. Seventh, this measure balances the state my deep concerns with the privacy provi- The first provision addresses disclosure re- interest of a state in regulating insurance with sions in the bill. quirements. Currently, financial institutions do that of an ability of a national bank to sell in- Every American cherishes their personal pri- not have to disclose their financial privacy pro- surance. Finally, the S. 900 Conference Re- vacy. Whether in our homes, shopping with visions to their customers. Consumers have a port is necessary to keep the United States in our credit cards, or surfing the web, we expect right to know what the policy is, and S. 900 its preeminent position in the world, financial to be able to control who has access to our will require these institutions to inform all new marketplace. private lives. customers of their policy and to update exist- 1. First, a Federal statutory change in finan- A 1978 study by the Center for Social and ing customers at least once a year. cial law is imperative because Congress must Legal Research found that 64 percent of Second, the bill allows in most instances for call a halt to the recent trend of financial mod- Americans were ``very concerned'' about consumers to `òpt-out'' of their financial insti- ernization through regulatory fiat and judicial threats to their privacy. By 1998, those con- tution's information sharing agreements with consent, instead we need to modernize the cerned had risen to 88 percent. In a recent unaffiliated third parties. This arrangement nation's banking laws through statute. AARP study, 78% of respondents said they strikes a balance between protecting con- As a matter of fact, on the first day of Bank- believe that current federal and state laws are sumer privacy and facilitating regular financial ing Committee consideration of financial mod- not strong enough to protect their privacy from activities. ernization legislation in 1998, during the 105th businesses that collect information about con- Third, the measure expressly prohibits finan- Congress, this Member stated: `Ònce more, sumers. cial institutions including banks, savings and we start an effort to modernize our financial in- We had an opportunity in the Financial loans, credit unions, securities firms and insur- stitutions structure. It is an effort we have tried Services Modernization Act to restore con- ance companies, from disclosing a customer's before and must begin someplace. It should

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00064 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.077 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11547 begin in the House, and so I commend you, modernization will help ensure that the finan- essary to keep the United States in its pre- Chairman LEACH, for launching this effort. We cial sector keeps pace with the ever-changing, eminent position in the world financial market- need to do this. We need to face up to our re- needs and desires of the all-important con- place. U.S. financial institutions are among the sponsibilities as a legislative body. There is no sumer. most competitive providers of financial prod- doubt about that.'' In addition, the Conference Report will also ucts in the world. However, the financial mar- 2. This Member supports the S. 900 Con- allow financial institutions to provide more af- ketplace is currently undergoing three changes ference Report as it will provide great benefits fordable services to the consumer. Financial which are altering the financial landscape of to rural, community banks. Three particular modernization will result in additional competi- the world. provisions demonstrate this. tion and in efficiency which in turn should re- The first of those changes involves a tech- A. The unitary thrift charter is of significant sult in lower prices for financial services to the nological revolution including the internet concern to Nebraska community banks. One consumer. through electronic banking. Technology is blur- of the reasons this Member is unequivocally 5. Fifth, this Member supports the S. 900 ring the distinction between financial products. opposed to the existence of this unitary thrift Conference Report as it provides the first, The other two changes include innovations in charter is because of its mixing of thrift activi- Federal consumer privacy legislation for Amer- capital markets, and the globalization of the fi- ties with commercial ventures. However, this ican financial institutions. These privacy provi- nancial services industry. is not he sole reasonÐit also results in an ex- sions are a pioneering, landmark advance for- This Member would like to note Section tremely powerful variety of financial institu- ward by Congress in ensuring that consumer's 502(e)(1)(C) of the S. 900 Conference Report. tions. Fortunately, the conference report personal information is protected from un- It is this Member's understanding that credit closes the unitary thrift loophole. It allows no wanted disclosures by financial institutions. enhancement done through the underwriting new unitary thrifts to be chartered as well as The privacy provisions in the conference re- and reinsurance of mortgage guaranty insur- allowing those in existence to not be sold to port include the following: ance after a loan has been closed are sec- commercial firms. A. Prohibiting financial institutionsÐincluding ondary market transactions included within the B. Community banks will benefit from the banks, savings and loans, credit unions, secu- exemption in Section 502(e)(1)(C) of the S. Federal Home Loan Bank (FHLB) charter rities firms and insurance companiesÐfrom 900 Conference Report. being expanded to allow community banks to disclosing customer account numbers or ac- Financial modernization is the proper, ap- borrow from the FHLB for family farm and cess codes to third parties for telemarketing or propriate step in this ever-changing financial small business lending. For the first time, in other direct marketing purposes; marketplace. Consequently, in order to main- B. Requiring all financial institutions to dis- rural areas such as in Nebraska, it will give tain America's financial institution's competitive close annually to all customers its privacy poli- community banks access to the FHLB. In light and innovative position abroad, the S. 900 cies and procedures; Conference Report needs to be enacted into of the agriculture situation today, this in- C. Enabling customers of financial institu- law. In the absence of this bill, the American creased community bank liquidity will have tions, for the first time, the ability to ``opt-out'' banking system could suffer irreparable harm beneficial implications on in particular the fam- of having their personal financial information ily farm. from being shared with third parties; in the world market as we will allow our for- C. The S. 900 Conference Report provides D. Making it a Federal crime, punishable by eign competitors to overtake U.S. financial in- some regulatory relief for banks under $250 up to five years in prison, to obtain or attempt stitutions in terms of innovative products and million in assets. Those banks with an ``out- to obtain private customer financial information services. We must simply not allow this to standing'' Community Reinvestment Act rating through fraudulent or deceptive means; and happen. will be examined for compliance only every E. Allowing states to adopt greater privacy Therefore, for all these reasons, and many five years and those banks with a ``satisfac- protections than is in Federal law. more that have been addressed today by this tory'' rating will be reviewed every four years. 6. Sixth, this Member has been a fervent Member's colleagues, we must, and will, pass 3. The S. 900 Conference Report will allow advocate of keeping banking and commerce the S. 900 Conference Report. This Member financial companies to offer a diverse number separate. In fact, this Member is quite pleased urges his colleagues to support the S. 900 of financial services to the consumer. This bill that the S. 900 Conference Report does not Conference Report, the Financial Moderniza- removes the legislative barriers within the contain a ``commercial market basket'' which tion bill. Glass-Steagall Act of 1933 and the 1956 Bank would have allowed the mix of commerce and Mr. GILLMOR. Madam Speaker, this bill Holding Company Act. As a result, the con- bankingÐequity positions by commercial makes the most important changes in the ference report will allow financial companies to banks. structure of financial institutions and services offer a broad spectrum of financial services to An amendment was initially filed, but not of- in over six decades. The financial combina- their customers, including banking, insurance, fered, in the House Banking Committee in the tions authorized by this bill can result in sub- securities, and other financial products through 106th Congress which would have allowed for stantial savings in the delivery of financial either a financial holding company or through the mixing of banking and commerce in a five services. However, as institutions are com- an operating subsidiary. Banks, securities percent market basket. However, this Member bined, and as they become larger, it is essen- firms, and insurance companies will be able to believes in large part because of expressed tial that there be safeguards for safety and affiliate with one another through this financial strong opposition, including vocal and effective soundness to protect both consumers and tax- holding company model. opposition of this Member, this amendment payers. The bill for the most part contains In order for banks to be able to engage in was withdrawn for consideration in the Com- those safeguards. the new financial activities, the banks affiliated mittee. While there was much discussion about under the holding company or through an op- 7. Seventh, this Member supports the S. each industry group wanting a level playing erating subsidiary have to be well-capitalized, 900 Conference Report because, it balances field tilted in their favor, the federal and state well-managed, and have at least a ``satisfac- the interest of a state in regulating insurance regulators also had their share of turf battles tory'' Community Reinvestment Act rating. with that of the interests of a national bank to over regulatory authority. In fact, it was not 4. Fourth, this Member supports the S. 900 sell insurance. At the outset, this Member until Treasury and the Fed finally reached a Conference Report because it is very pro-con- notes that he has a distinguished record of compromise on the operating subsidiaryÐaffil- sumer. It will increase choices for the con- supporting states rights, especially in the area iate issue that this bill was able to move sumer in the financial services marketplace by of insurance regulation. through the conference committee. It was just creating an environment of greater competi- It is important to note that this conference this kind of authority grabbing by regulators tion. As a result, financial modernization will report preserves state rights by providing that that required a provision to prevent the federal allow consumers to be able to choose from a the state insurance regulator is the appropriate regulators from over regulating and intruding variety of services from the same, convenient, functional regulator of insurance sales. Wheth- into financial services functions in which they financial institution. Financial modernization er insurance is sold by an independent agent have no expertise. will give consumers more options. or through a national bank, the state, and only While the Federal Reserve serves an um- Whether it be in rural Nebraska, or in New the state, is the functional regulator of insur- brella regulator over Financial Holding Compa- York City, consumers of financial products all ance in both instances. Moreover, this con- nies, I was concerned about the Fed getting across the United States deserve additional ference report also does not unduly burden into the jurisdiction of the already effective in- competitive options. Moreover, under the cur- the ability of national banks to be able to sell surance and securities regulators. Consumers rent setting, many rural communities are insurance. do not derive any benefit from additional lay- under-served in regards to their access to a 8. Lastly, this Member supports the S. 900 ers of regulation that can only intrude into the broad array of financial services. Financial Conference Report as its passage is nec- marketplace.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00065 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.080 pfrm02 PsN: H04PT1 H11548 CONGRESSIONAL RECORD — HOUSE November 4, 1999 My amendment in the Commerce Com- cial needs, from checking and savings ac- ucts, benefiting consumers and the economy. mittee two years ago, which was included in counts to mortgages and financial planning. It's true that some may benefit from these the current bill, created the functional regu- The increased competition will also give un- changes more than others. But fostering com- latory framework for financial holding compa- derserved communities, entrepreneurs, and petition between financial institutions will ulti- nies. The purpose of this ``Fed Lite'' frame- small business owners expanded access to a mately ensure consumers have greater work is to parallel the financial services affil- full range of financial services. choices at lower cost. iate structure envisioned under this legislation. Equally important, the conference report in- Madam Speaker, the simple fact is, these This parallel regulatory structure eliminates the corporates an historic agreement maintaining banking reforms are long overdue. The anti-af- duplicative and burdensome regulations on the obligation of insured financial institutions to filiation provisions of the Glass-Steagall Act businesses not engaged in banking activities, meet the requirements of the Community Re- are sorely outdated and have increasingly im- and importantly, preserves the role of the Fed- investment Act to serve the credit needs of peded the United States' ability to compete in eral Reserve as the prudential supervisor over low- and moderate-income residents of their the new world economy. businesses that have access to taxpayer guar- community. It also provides consumers with To illustrate the changes in the financial antees and the federal safety net. the most extensive safeguards yet enacted to services sector, consider the following fact. In The Information Revolution, like the Indus- protect the privacy of their financial informa- 1933, when the Glass-Steagall Act was signed trial Revolution, has made information much tion. into law, upwards of 60 percent of the nation's more widely available at a lower cost and in Passage of this legislation is vital to main- assets were deposited in banks and thrifts. less time. Technology and innovation have al- taining the preeminent status of the U.S. finan- Today, banks and thrifts control 37 percent of tered and expanded the processes by which cial services industry in the global economy. the nation's assets. we use financial products and services. Banks, securities firms, and insurance compa- In recognition of this changing climate, we But the increase in the availability and trans- nies will now be able to compete with over- have seen the prohibition on the mixing of mission of information has not altered the seas financial juggernauts that have not been banking and securities substantially reduced need for consumers to transact with financial constrained by U.S. regulation. And New York, by sympathetic regulators, favorable court de- institutions to take care of their financial re- as the world's leading financial center, is well cisions, and large mergers. And today, we quirements. People will need banking, insur- positioned to compete in the arena for global have come together to consider this landmark ance and securities options. But they want business as foreign banks and securities firms bill. I want to thank Chairman JIM LEACH of the these options in greater speed and conven- seek to establish or expand their U.S. oper- Banking and Financial Services Committee ience. Customers expect a financial relation- ations. and Chairman TOM BLILEY of the Commerce ship with their financial service provider that With its concentration of financial services Committee for shepherding S. 900 through its will benefit them with enhanced benefits and organizations, New York's economy stands to final, difficult stages and urge the adoption of lower costs. benefit tremendously from passage of this leg- There is legitimate concern about the mis- this conference report. islation. A vigorous, healthy, competitive finan- Ms. ROYBAL-ALLARD. Madam Speaker, I use of information. The tremendous human cial services sector means more jobs, higher rise in opposition to S. 900, the Financial benefits that have come from these advances real earnings growth, and more tax revenues. Services Modernization Conference Report. also carry with them unprecedented new Indeed, the finance sector accounted for half I would be happy to support a financial threats to personal privacy. Personal privacy of the $2.7 billion growth in personal income, modernization bill that improves choice, ac- needs reasonable protections, because per- general corporation, and unincorporated busi- cess and affordability for all Americans. Unfor- sonal privacy is an important part of individual ness taxes between 1992 and 1998. tunately S. 900 fails on all accounts. While I freedom. This bill for the first time put in place Madam Speaker, the Gramm-Leach-Bliley understand the need to update our antiquated strong privacy provisions for the financial serv- Financial Modernization Act of 1999 is a great banking laws and bring our country's financial ices industry. step forward in improving our nation's financial system into the 21st century, I am unwilling to With enactment of this legislation, con- services system for the benefit of investors, do this at the expense of our consumers. It is sumers can go to a financial services provider consumers, community groups, financial serv- unacceptable that we give the green light for that is able to complete globally, is subjected ices providers, and our nation's economy. I the unprecedented conglomeration of banks, to streamlined regulation and must prevention strongly support passage of the conference re- securities firms, and insurance companies your financial information from falling into the port on S. 900. while we ignore the most modest provisions to hands of unaffiliated organizations and tele- Mr. SHAYS. Madam Speaker, I rise in protect our consumers. marketers if you instruct it to do so. I urge the strong support of the conference report for the Earlier this year, I joined many of my col- adoption of the conference report. Financial Services Act. This bill is a wonderful leagues in opposing the House's financial Mr. TOWNS. Madam Speaker, I rise today testament to the important things we can ac- modernization bill, H.R. 10. I opposed the bill in strong support of the conference report on complish when we set aside partisan dif- because it failed to protect consumers in re- the Gramm-Leach-Bliley Financial Moderniza- ferences and work together on the nation's gards to community reinvestment and privacy. tion Act of 1999. For the first time in more business. Unfortunately, this conference report is no im- than two decades, Congress, the Administra- The historic bill, which has been 20 years in provement. tion, financial regulators, and all sectors of the the making, has the support of a majority of First, S. 900 fails to adequately protect the financial services industry have reached a Congressional Republicans and Democrats, Community Reinvestment Act (CRA), which consensus on legislation to modernize the fi- as well as the Administration. has been instrumental in leveraging billions of nancial marketplace. For far too long, our na- S. 900 replaces outdated, Depression-era dollars of investment into communities such as tion's financial services firms have labored laws that separate banking from other financial mine, where unemployment and poverty levels under outdated banking laws that have im- services with a new system to enhance com- are still well above the national average. Spe- paired their global competitiveness, limited the petition and increase consumer choice. The cifically, S. 900 fails to require that banks range of services that consumers can obtain bill repeals the anti-affiliation provisions of the maintain a ``satisfactory'' CRA rating after they from one financial institution, and driven up 1933 Glass-Steagall Act, as well as the 1956 have expanded across industry lines to take costs. Bank Holding Company Act. In doing so, fi- advantage of the newly authorized activities With the passage of this conference report, nancial companiesÐeither through a financial under this bill. Moreover, S. 900 reduces the consumers and investors will be able to holding company or through operating subsidi- frequency of CRA examinations for small choose from a wider array of products and ariesÐwill be allowed to offer a broad array of banks. Lastly, S. 900, under the guise of ``sun- services offered in a more competitive market- financial products to their customers, including shine disclosures'', targets community groups place. Securities firms, insurance companies, banking, insurance and securities. with onerous and burdensome reporting re- and banks will be able to freely affiliate with To be permitted to engage in the new finan- quirements in their community agreements each other through a holding company. Each cial activities authorized under the bill, banks with banks. Rather than promoting greater ac- subsidiary financial institution within the hold- affiliated under a holding company would have countability, this sunshine provision will have a ing company will be functionally regulated, to be well-managed, well-capitalized, and have chilling effect on these community agree- thereby ensuring tough, consistent investor a satisfactory Community Reinvestment Act ments, which have been so effective in open- protections and fair competition. ConsumersÐ rating, thus ensuring that banks continue to ing up access to credit in low income and mi- who will save an estimated $15 billion over lend to inner-city and minority communities. nority communities. three yearsÐwill be the beneficiaries of one- Encouraging greater competition will lower Second, S. 900 fails to provide strong finan- stop shopping to meet a broad range of finan- prices for financial services and improve prod- cial and medical privacy protections. If we're

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00066 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.083 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11549 going to allow for the creation of mega one- prohibiting insurance discrimination against Under current law, bank mergers are re- stop centers with access to information about survivors of domestic violence. viewed under special bank merger statutes, millions of customers, consumers should have Another important provision in this legisla- and they do not go through the Hart-Scott-Ro- the right to say ``no'' to the distribution of their tion is the inclusion of the ``PRIME'' bill, a new dino merger review process that covers most personal information to third parties and affili- program that will provide new grants to micro- other mergers. Now banks will be able to get ates. Instead of giving consumers control over entrepreneurs. This program will help provide into other businesses which they have not the use of their confidential customer informa- training and technical assistance to low-in- been able to do before. tion, the bill allows banks to share or sell it. come and disadvantaged entrepreneurs inter- The principle that we have followed is that As I previously stated when I voted against ested in starting or expanding their own busi- when mergers occur, the bank part of that the financial modernization bill earlier this ness. My home state has been a leader in the merger will be judged under the current bank year, I am not willing to trade the so-called microcredit movement and these new grants merger statutes, and we do not intend any perks of financial modernizationÐefficiency, will be a real boon to microentrepreneurs in change in that process or in any of the agen- choice, convenience, one-stop-shoppingÐfor my district and throughout Colorado. cies' respective jurisdictions. The non-bank the decimation of privacy rights and commu- It is rare that a flawless bill comes to the part of that merger will be subject to the nor- nity reinvestment. S. 900 leaves our con- floor of the House and this legislation is no ex- mal Hart-Scott-Rodino merger review by either sumers even worse off than before. ception. This is a good bill, but it is not per- the Justice Department or the Federal Trade I urge my colleagues to oppose this bill. fect. While the goals of this legislation are too Commission. Mr. DOOLITTLE. Madam Speaker, I support important to delay any longer, I do believe that This is, in all likelihood, the result that would the passage of the S. 900 conference report the privacy language should be stronger. This have been obtained anyway. Hybrid trans- because I believe it is a fair and balanced bill bill establishes privacy laws where none cur- actions involving complex corporate entitiesÐ which will spur competition within the financial rently exist and ensures that stronger state pri- some parts of which are in industries subject services industry, reinforce functional regula- vacy laws will not be preempted. However, I to merger review by specialized regulatory tion and protect consumers. think Congress needs to continue to explore agencies and other parts of which are notÐ This legislation is by no means perfect, but the issues of financial and other types of per- have occurred in the past. In those cases, the it does represent a reasonable compromise sonal privacy that will become increasingly various parts of the consolidation were consid- between the House and Senate versions of fi- more important to consumers as marketplaces ered according to agency jurisdiction over their nancial services modernization legislation. The change and technology advances continue. respective parts, so that normal Hart-Scott-Ro- issue of modernizing this country's financial Mr. HYDE. Madam Speaker, I rise in sup- dino Act requirements applied to those parts laws has been debated in Congress for over port of S. 900, the Gramm-Leach-Bliley Act. that did not fall within the specialized agency's two decades and has not come to a resolution For many years, we have been trying to re- specific authority. See, e.g., 16 C.F.R. § 802.6. peal the outdated restrictions that keep banks, until now. The financial services industry has I think the precedents would have already dic- securities firms, and insurance companies undergone dramatic changes in the past few tated the desired result here. decades and regulations have been formu- from getting into one another's businesses. The clarification for the new financial holding lated in a piecemeal fashion through regu- After all the debate, I think we have finally company structure contained in § 133(c) is latory decisions and court rulings. This has re- come up with something in this bill that will consistent with, and in no way disturbs, those sulted in an uneven and often inequitable reg- open up a whole new world of competition. existing precedents. Even so, this is a big Financial services are becoming increas- ulatory framework that is badly in need of an change we are making in our banking laws, ingly globalized, increasingly computerized, overhaul in today's rapidly changing economy. and I thought it would be most helpful to clar- and increasingly seamless. Banking laws It is long past time to modernize our finan- ify this point with respect to financial holding passed during the Depression simply will not cial system in order to reflect the reality of the do in the 21st century. I wish that we could companies in the statute. I think we have marketplace. In doing so we need to make maintain a world where everyone knew their achieved that clarification with the language in sure there are rules in place to protect the banker on a first name basis and loans were § 133(c) of the Conference Report. Similar lan- American public without layering bureaucratic made on a handshake, and I think in the new guage was a part of the House bill, and I ap- regulations. I believe the bill before us accom- world some banks will provide that kind of preciate the Senate conferees' accepting this plishes this goal. The point of passing financial service to those who demand it. But we need clarification. services reform is to update and streamline As the shape of the new activities in which not have laws that limit us to that kind of serv- the rules and ensure that all entities are fairly ice, as desirable as it may seem. Everyone is banks were going to be permitted to engage and consistently regulated by the appropriate better off if the market decides what kinds of through operating subsidiaries became clear in entity. I believe S. 900 strikes a balance be- services financial firms will offer. conference, the conferees ideally would have tween fostering free market competition and Just think about the progress we have made further revised the House language to make a protecting the interests of the general public. in the past ten years. When I was a child, only similar clarification, regarding consolidations of As a strong supporter of the Community Re- the wealthy owned stocks. Now, with the non-banking entities that are operating sub- investment Act (CRA), I believe this Con- growth of the mutual fund industry and self-di- sidiaries of merging banks. But the operating ference Report is a significant improvement rected retirement funds, millions and millions subsidiary situations so closely parallels the over the Senate-passed bill, which contained of average Americans not only own stocks, precedents I have mentioned that a clarifica- onerous provisions that I believe would have but make their own investment decisions. tion for that situation was probably unneces- seriously undermined CRA. This bill not only These developments create wealth, increase sary. steadfastly maintains the application of CRA to people's incentive to produce, and relieve Of course, whatever aspect of a banking all insured depository institutions, but also re- some of the entitlement burden of govern- merger is not subject to normal Hart-Scott-Ro- quires that these banks have at least a ``satis- ment. I believe that this bill will bring more dino premerger review will be subject to the factory'' CRA rating they can offer any new fi- such positive developments. alternative procedures set forth in the Bank nancial services. Without the passage of this I want to say a word about my friends JIM Merger Act and the Bank Holding Company bill, banks will continue to expand into new LEACH, chairman of the Banking Committee, Act, including the automatic stay. So one way areas of financial services, as they are already TOM BLILEY, chairman of the Commerce Com- or another, there will be some avenue for ef- doing, without clear CRA requirements. mittee, and PHIL GRAMM, chairman of the Sen- fective premerger review by the antitrust en- S. 900 also contains a small but very impor- ate Banking Committee. They have done an forcement agencies. These alternative proce- tant provision that I have personally worked on excellent job of putting this package together. dures would be in some ways more potentially for the past three years. The language I have I commend them for their work in bringing this disruptive to the merging banking entities, par- included will prevent certain financial institu- bill to the floor in a very difficult and conten- ticularly when the antitrust concern involves tions from discriminating against victims of do- tious environment. non-banking entities. But it is our intent that mestic violence in the underwriting, pricing, I especially want to commend them for the precedents will be followed. sale or renewal of any insurance product and working with me on the antitrust and bank- In short, under this bill and the precedents, in the settlement of any claim. This provision ruptcy provisions of the bill. These provisions no bank is treated differently than it otherwise specifically applies to banks, which is impor- were especially important to me as chairman would be because it has some other business tant because this legislation will allow banks to of the Judiciary Committee, which has jurisdic- within its corporate family. Likewise, no other sell and underwrite insurance on a large scale tion over these areas of the law. Let me briefly business is treated differently than it otherwise for the first time. When this is signed into law, explain our intent with respect to these provi- would be because it has a bank within its cor- it will be the first federal legislation of its kind sions. porate family.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00067 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.061 pfrm02 PsN: H04PT1 H11550 CONGRESSIONAL RECORD — HOUSE November 4, 1999 The conference report also includes con- Furthermore, section 210 of Title II I would like to commend my colleagues in forming language found in § 133(a) to clarify states that ‘‘Nothing in this Act shall both the House and Senate who served on that the Federal Trade Commission's authority supersede, affect, or otherwise limit the conference committee. Through their hard in the non-banking sphere is preserved. We the scope and applicability of the Com- work, we have before us today a well bal- though these provisions were advisable in light modity Exchange Act.’’ This section anced and thoughtful conference report that, of the fact that the FTC's enforcement author- recognizes that transactions which are after over two decades of trying, finally re- ity specifically excludes banks and savings as- futures contracts or commodity op- forms our antiquated, Depression-era financial sociations, but does not and should not ex- tions under the exclusive jurisdiction services laws to benefit consumers, busi- clude the non-banking entities that will be of the CFTC pursuant to the Com- nesses and the economy. brought into the banking picture as a result of modity Exchange Act do not receive an I supported the House Banking version be- the new law. We have clarified that the exist- exemption or exclusion from the Com- cause financial modernization is desperately ing exemption is limited to the bank or savings modity Exchange Act because of any- needed to address changes that are currently association itself and that the FTC retains ju- thing in the Gramm-Leach-Bliley Act. taking place in the global marketplace. Today, risdiction over nonbank entities despite any No financial instrument described in America's financial services industry is the corporate connections they may have with this act, be it a swap agreement, new most effective and competitive in the world. banks or savings associations. This clarifica- hybrid product, or identified banking The banking system and other associated fi- tion applies to the FTC's jurisdiction over non- product, is exempted or excluded from nancial services institutions are the oil that banking firms under the FTC Act, and accord- the jurisdiction of the CFTC solely by prime the pump to our economy. The indus- ingly under any statute that may provide for virtue of anything contained in the try's ability to adapt to the swift and vast struc- enforcement under the Act like the consumer Gramm-Leach-Bliley Act. The CFTC’s tural and technological changes in the market- credit laws and the Telemarketing and Con- traditional exclusive authority is unaf- place have accounted for the record bank sumer Fraud and Abuse Prevention Act. For fected by this legislation. profits and the largest peacetime expansion example, the FTC would continue to have ju- The Privacy Title, Title V of the since World War II. These achievements of our financial serv- risdiction over a telemarketer of financial serv- Gramm-Leach-Bliley Act, explicitly ices industry, however, are at riskÐrisk to ices, even if it is a subsidiary or affiliate of a excludes persons and entities subject to the jurisdiction of the CFTC, and the both consumers and the system itselfÐif we bank. The FTC's authority would not be ex- continue to rely on ad hoc adaptations without panded or extended to any new statute that Federal Agricultural Mortgage Cor- poration and persons and entities char- establishing a meaningful and prudent frame- may not be enforced under the FTC Act. work in which this system, undergoing such tered and operating under the Farm These provisions were also included in the rapid changes, can thrive and prosper. This Credit Act of 1971, from the provisions House bill, and again, I appreciate the Senate conference report establishes such a respon- of this Title. The purpose of sections conferees' accepting them in the final con- sible framework, with an eye allowing the in- 509(3)(B) and (C) and 527(4)(D), exclud- ference report. dustry to thrive and prosper, while providing Again, no bank is treated differently than it ing the above mentioned persons and the most progressive consumer protection entities from the definition of ‘‘finan- otherwise would be because it has some other safeguards ever enacted into law. business within its corporate family. Likewise, cial institution,’’ is to make it clear Among the many benefits of this landmark no other business is treated differently than it that no provision of Title V will apply legislation, three are critically important: otherwise would be because it has a bank to farm credit system institutions nor S. 900 permits the creation of new financial within its corporate family. to CFTC regulatees. holding companies, which can offer banking, Let me again commend my friends JIM Mr. PACKARD. Madam Speaker, I would insurance, securities, and other financial prod- LEACH, TOM BLILEY, and PHIL GRAMM, and ev- like to urge my colleagues to support S. 900, ucts. These new structures will allow American eryone else who has worked on this legisla- the Financial Services Modernization Act Con- financial firms to take advantage of greater option, and I ask my colleagues to support it. ference Report, when it is considered on the erating efficiencies and spur competition. This Mr. COMBEST. Madam Speaker, S. floor today. These improvements are long new competitive spirit will create better access 900, the Gramm-Leach-Bliley Act, is an overdue for the benefit of investors, con- to capital that will continue to promote our important step in revamping and mod- sumers, community groups, financial service growing economy, greater choices, innovative ernizing America’s financial system. providers, and our nation's economy. services, and lower prices for consumers. In- While there are both pluses and perils This legislation will modernize America's fi- deed, the efficiencies created with this bill are to the approach contained within this nancial services industry to better serve con- estimated to save consumers over $15 billion. act, today I wish to highlight several sumersÐindividuals, small businesses and S. 900 benefits our local communities by portions of the bill which are of par- large corporations. It will increase convenience preserving and strengthening community in- ticular importance to the Committee for financial service consumers by creating vestment. This conference report requires that on Agriculture, and which were very one-step shopping for bank accounts, insur- banks have a good track record of community much in the minds of the Managers and ance policies, and securities transactions. S. reinvestment as a condition for taking advan- staff while drafting this conference re- 900 will also greatly increase the international tage of the bill's newly authorized business ac- port. competitiveness of American financial firms. tivities and, for the first time, requires that a S. 900 contains several provisions re- S. 900 provides meaningful consumer pro- bank's performance on community reinvest- lating to the treatment of certain fi- tection rules for disclosure requirements and ment be considered when it expands outside nancial instruments for various pur- damage recovery protections and establishes of traditional banking activities. In addition to poses under this country’s securities consumer grievance procedures. The bill also these protections, this conference report cre- laws. In particular, a bank is explicitly promotes consumer privacy by barring finan- ates a new program designed specifically to not required to register as a broker- cial institutions from disclosing customer ac- help small, low-income entrepreneurs start dealer under the ’34 Act for partici- count numbers for telemarketing or other di- and expand their businesses in underserved pating in certain hybrid and swap rect marketing purposes. areas. transactions. Madam Speaker, S. 900 will provide the S. 900 provide important new consumer These provisions, contained in Title most extensive safeguards yet enacted to pro- protections including mandatory prohibitions II of the bill, are not a finding that all tect the privacy of consumer financial informa- on coercive sales practices, disclosure of ATM swaps are securities. Furthermore, in tion. I urge my colleagues to support this fees, and for the first time, protections for the case of both swaps and hybrids, it much needed, historic legislation. Americans' financial privacy. These new is important to note that the classi- Mr. MOORE. Madam Speaker, I rise today standards are a significant improvement over fication of a particular type of instru- in support of S. 900, the conference report for current law, where no standards exist. The ment for purposes of the Gramm- the Financial Services Modernization Act of conference report requires financial institutions Leach-Bliley Act does not preclude 1999. As a member of the Banking and Finan- to notify consumers and provide them with the that instrument or transaction from cial Services Committee, I supported this ability to opt-out of the disclosure of personal falling under the jurisdiction of the measure when it passed our committee on financial information to unaffiliated third par- Commodity Futures Trading Commis- March 23 by a 51±8 margin. I supported this ties; prohibits third parties from sharing or sell- sion under the Commodity Exchange measure again, when it overwhelmingly ing a consumer's personal financial informa- Act. This result is made clear in sec- passed the full House of Representatives on tion; provides strengthened and expanded reg- tion 206(c) of Title II of the bill. July 1, 1999, on a vote of 343±86. ulatory authority to detect and enforce privacy

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00068 Fmt 7634 Sfmt 9920 E:\CR\FM\A04NO7.064 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11551 violations; and prevents the preemption of Gekas Lowey Sabo Mica Roybal-Allard Taylor (MS) Gephardt Lucas (KY) Salmon Miller, George Rush Thurman stronger state consumer protection laws. Gibbons Lucas (OK) Sanchez Obey Sanders Tierney Madam Speaker, this conference report rep- Gilchrest Maloney (CT) Sandlin Phelps Sanford Waters resents a balanced compromise between the Gillmor Maloney (NY) Sawyer Rivers Schakowsky Waxman House and the Senate versions of financial Gilman Manzullo Saxton Rodriguez Serrano Woolsey Gonzalez Mascara Schaffer services modernization. Congress has spent Goode Matsui Scott NOT VOTING—15 several decades considering many of the com- Goodlatte McCarthy (MO) Sensenbrenner Bereuter McInnis Radanovich plicated and extremely important issues ad- Goodling McCarthy (NY) Sessions Dickey Mollohan Scarborough Gordon McCollum Shadegg Kanjorski Ney Shuster dressed in this compromiseÐa compromise Goss McCrery Shaw Larson Norwood Stark that represents a landmark legislative achieve- Graham McGovern Shays Martinez Paul Taylor (NC) ment in modernizing our nation's financial Granger McHugh Sherman b services industries. It establishes a rational Green (TX) McIntosh Sherwood 2317 Green (WI) McIntyre Shimkus framework in which our financial services in- Greenwood McKeon Shows Mr. SANFORD changed his vote from dustries may offer a wide range of services Gutknecht McNulty Simpson ‘‘yea’’ to ‘‘nay.’’ that will benefit consumers. It creates, in most Hall (OH) Meehan Sisisky So the conference report was agreed Hall (TX) Meeks (NY) Skeen cases, prudential consumer safeguards. And, Hansen Menendez Skelton to. it levels the playing field in a manner that will Hastert Metcalf Slaughter The result of the vote was announced allow our financial institutions to compete in Hastings (WA) Millender- Smith (MI) as above recorded. the 21st Century. I congratulate and commend Hayes McDonald Smith (NJ) A motion to reconsider was laid on Hayworth Miller (FL) Smith (TX) my colleagues in both the House and the Sen- Herger Miller, Gary Smith (WA) the table. ate who served on the conference committee Hill (IN) Minge Snyder Stated for: and urge swift passage of this report. Hill (MT) Mink Souder Mr. KANJORSKI. Mr. Speaker, on rollcall Hilleary Moakley Spence The SPEAKER pro tempore. All time Hilliard Moore Spratt No. 570, the final passage of the conference for debate has expired. Hinojosa Moran (KS) Stabenow report on S. 900 the Gramm-Leach-Bliley Fi- Without objection, the previous ques- Hobson Moran (VA) Stearns nancial Services Modernization Act of 1999, I Hoeffel Morella Stenholm tion is ordered on this conference re- Hoekstra Murtha Strickland was away from Washington on official busi- port. Holden Myrick Stump ness. Had I been present, I would have voted There was no objection. Holt Nadler Stupak ``yea.'' The SPEAKER pro tempore. The Hooley Napolitano Sununu Mr. BEREUTER. Mr. Speaker, this Member Horn Neal Sweeney question is on the conference report. Hostettler Nethercutt Talent was not recorded on rollcall vote No. 570, on The question was taken; and the Houghton Northup Tancredo passage of the conference report on S. 900, Speaker pro tempore announced that Hoyer Nussle Tanner the Gramm-Leach-Bliley Act. Had he been Hulshof Oberstar Tauscher the ayes appeared to have it. Hunter Olver Tauzin present, he would have voted ``aye.'' Mr. DINGELL. Mr. Speaker, I object Hutchinson Ortiz Terry f to the vote on the ground that a Hyde Ose Thomas Isakson Owens Thompson (CA) b 2320 quorum is not present and make the Istook Oxley Thompson (MS) point of order that a quorum is not Jackson-Lee Packard Thornberry SPECIAL ORDERS present. (TX) Pallone Thune The SPEAKER pro tempore (Mr. The SPEAKER pro tempore. Evi- Jefferson Pascrell Tiahrt Jenkins Pastor Toomey ISAKSON). Under the Speaker’s an- dently a quorum is not present. John Payne Towns nounced policy of January 6, 1999, and The Sergeant at Arms will notify ab- Johnson (CT) Pease Traficant under a previous order of the House, sent Members. Johnson, E. B. Pelosi Turner Johnson, Sam Peterson (MN) Udall (CO) the following Members will be recog- The vote was taken by electronic de- Jones (NC) Peterson (PA) Udall (NM) nized for 5 minutes each. vice, and there were—yeas 362, nays 57, Jones (OH) Petri Upton not voting 15, as follows: Kasich Pickering Velazquez f Kelly Pickett Vento The SPEAKER pro tempore. Under a [Roll No. 570] Kennedy Pitts Visclosky previous order of the House, the gen- YEAS—362 Kilpatrick Pombo Vitter Kind (WI) Pomeroy Walden tleman from Florida (Mr. DIAZ- Abercrombie Boucher Davis (FL) King (NY) Porter Walsh BALART) is recognized for 5 minutes. Ackerman Boyd Davis (VA) Kingston Portman Wamp Aderholt Brady (TX) Deal Kleczka Price (NC) Watkins (Mr. DIAZ-BALART addressed the Allen Brown (FL) DeGette Klink Pryce (OH) Watt (NC) House. His remarks will appear here- Andrews Brown (OH) Delahunt Knollenberg Quinn Watts (OK) after in the Extensions of Remarks.) Archer Bryant DeLay Kolbe Rahall Weiner Armey Burr DeMint Kuykendall Ramstad Weldon (FL) f Bachus Burton Deutsch LaFalce Rangel Weldon (PA) The SPEAKER pro tempore. Under a Baird Buyer Diaz-Balart LaHood Regula Weller Baker Callahan Dicks Lampson Reyes Wexler previous order of the House, the gen- Baldacci Calvert Doggett Lantos Reynolds Weygand tleman from California (Mr. FILNER) is Ballenger Camp Dooley Largent Riley Whitfield recognized for 5 minutes. Barcia Canady Doolittle Latham Roemer Wicker (Mr. FILNER addressed the House. Barr Cannon Doyle LaTourette Rogan Wilson Barrett (NE) Capps Dreier Lazio Rogers Wise His remarks will appear hereafter in Bartlett Cardin Duncan Leach Rohrabacher Wolf the Extensions of Remarks.) Bass Carson Dunn Wu Levin Ros-Lehtinen f Bateman Castle Ehlers Lewis (CA) Rothman Wynn Becerra Chabot Ehrlich Lewis (KY) Roukema Young (AK) The SPEAKER pro tempore. Under a Bentsen Chambliss Emerson Linder Royce Young (FL) previous order of the House, the gen- Berkley Chenoweth-Hage Engel LoBiondo Ryan (WI) Berman Clayton English Lofgren Ryun (KS) tleman from Florida (Mr. GOSS) is rec- Berry Clement Eshoo ognized for 5 minutes. Biggert Clyburn Etheridge NAYS—57 Bilbray Coble Everett (Mr. GOSS addressed the House. His Bilirakis Coburn Ewing Baldwin DeLauro Inslee remarks will appear hereafter in the Bishop Collins Farr Barrett (WI) Dingell Jackson (IL) Extensions of Remarks.) Blagojevich Combest Fletcher Barton Dixon Kaptur Bliley Cook Foley Brady (PA) Edwards Kildee f Blumenauer Cooksey Forbes Campbell Evans Kucinich The SPEAKER pro tempore. Under a Blunt Cox Ford Capuano Fattah Lee Boehlert Cramer Fossella Clay Filner Lewis (GA) previous order of the House, the gentle- Boehner Crane Fowler Condit Frank (MA) Lipinski woman from Ohio (Ms. KAPTUR) is rec- Bonilla Crowley Franks (NJ) Conyers Gejdenson Luther ognized for 5 minutes. Bonior Cubin Frelinghuysen Costello Gutierrez Markey (Ms. KAPTUR addressed the House. Bono Cummings Frost Coyne Hastings (FL) McDermott Borski Cunningham Gallegly Davis (IL) Hefley McKinney Her remarks will appear hereafter in Boswell Danner Ganske DeFazio Hinchey Meek (FL) the Extensions of Remarks.)

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00069 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.067 pfrm02 PsN: H04PT1 H11552 CONGRESSIONAL RECORD — HOUSE November 4, 1999 The SPEAKER pro tempore. Under a ‘‘If you have a stomach ulcer and Now, that may not seem like much to previous order of the House, the gen- your doctor says, ‘you need to be on some of the folks in this room, but let tleman from Michigan (Mr. EHLERS) is Prilosec,’ you would probably pay me tell my colleagues, if one is living recognized for 5 minutes. about $99.95 for a 30-day supply in the on a fixed income of $10,000, we are be- (Mr. EHLERS addressed the House. Twin Cities. But if you were vaca- ginning to talk real money. His remarks will appear hereafter in tioning in Canada and decided to fill It is time for us to say loudly and the Extensions of Remarks.) your prescription there, you would pay clearly that we will not allow the FDA f only $50.88. to stand between our consumers and The SPEAKER pro tempore. Under a ‘‘Or, even better, if you were looking our seniors in particular. We will not previous order of the House, the gen- for a little warmer weather south of allow the FDA to stand between our tleman from Ohio (Mr. BROWN) is rec- the border in Mexico, the same 30-day consumers and lower drug prices. ognized for 5 minutes. supply would cost you only $17.50. It is a simple bill. I would hope that (Mr. BROWN of Ohio addressed the ‘‘That’s for the same dose, made by my colleagues would contact my office House. His remarks will appear here- the same manufacturer. because we want to make this a broad- after in the Extensions of Remarks.) ‘‘If we could get only half the price based bipartisan coalition to support f break that Canadians get, our plan this bill. We hope to introduce it in the The SPEAKER pro tempore. Under a alone’’, he is talking about one HMO in next day or two. Please take a look at previous order of the House, the gen- Minnesota, he says, ‘‘our plan alone this legislation. We would like to have tleman from Indiana (Mr. BURTON) is could have saved our members nearly my colleagues join us on it. recognized for 5 minutes. $35 million last year.’’ f (Mr. BURTON of Indiana addressed Imagine what we are talking about throughout the entire country. He goes STOP STALLING ON GUN SAFETY the House. His remarks will appear LEGISLATION hereafter in the Extensions of Re- on to say, ‘‘When the North American marks.) Free Trade Act (NAFTA) was passed by The SPEAKER pro tempore. Under a f Congress to allow free trade between us previous order of the House, the gentle- and our neighboring countries, woman from Texas (Ms. JACKSON-LEE) The SPEAKER pro tempore. Under a HealthPartners decided to follow the is recognized for 5 minutes. previous order of the House, the gentle- lead of in Minnesota Senior Federation Ms. JACKSON-LEE of Texas. Mr. woman from California (Ms. WATERS) is and buy drugs in Canada at Canadian Speaker, we finished one major piece of recognized for 5 minutes. legislation, and I noted that many of (Ms. WATERS addressed the House. prices. We were disappointed to learn the Members of this House were ap- Her remarks will appear hereafter in of the rules and processes that kept us plauding the success of passing a finan- the Extensions of Remarks.) from succeeding. There is no free trade in prescription drugs. We need to do cial services reform bill. I think there f something about this.’’ are many people in America that will PRESCRIPTION DRUG BILL Well, I tell Mr. Halvorson, we intend appreciate that we have made that The SPEAKER pro tempore. Under a to do something about it. But before giant step. previous order of the House, the gen- we do something, one has got to under- But in the shadow of passing a bill tleman from Minnesota (Mr. GUT- stand what the problem is. It all comes that deals with numbers, statistics, KNECHT) is recognized for 5 minutes. down to section 381 of U.S. Code, Title and pieces of paper, and computers, we Mr. GUTKNECHT. Mr. Speaker, to- XXI, section 381. are still stalled on a real gun safety re- night I would like to talk about an Let me just read for my colleagues form legislation and juvenile justice. issue that is becoming increasingly of what this section basically says. ‘‘The What a tragedy that, in about 5 days, concern to the American citizens, and Secretary of Treasury shall deliver to more than 100 hours from now, this that is the high prices that Americans the Secretary of Health and Human House may come to a conclusion for in general and seniors in particular are Services, upon his request, samples of 1999. We will do so in the shadow of being required to pay for prescription food, drugs, devices, and cosmetics seven deaths in Hawaii, two deaths in drugs. which are being imported or offered for Seattle in the last 48 hours by individ- A number of stories have appeared import into the United States.’’ The uals obviously deranged and using guns recently. A number of national news operative expression is ‘‘giving notice to kill people. publications, MSNBC, the New York thereof to the owner or cosignee’’. We will do it, likewise, in the shadow Times, a number of stories, the Wash- It goes on to basically say that peo- of four murders of teenagers this past ington Post, a Minneapolis paper re- ple can bring drugs into the country as weekend in Washington, D.C., in the cently did stories about what is hap- long as they are legal drugs and they shadow of a closing of a Cleveland high pening in America relative to the high have a prescription. But if there is a school where it is alleged that about cost of prescription drugs. challenge to them, the burden of proof four students have threatened to kill Now, it has a tremendous impact on falls upon the FDA. many, many students in that high all Americans, but of particularly high But, unfortunately, Mr. Speaker, school; or do it in the shadow of con- impact on senior citizens where many that is not what is happening. What is versations we had just a few weeks ago of the people in my district, and I sus- happening today is, when seniors try to that noted that many students that go pect this is not unusual to my district, bring drugs, and particularly if they do to high school in America are fearful it happens all over the country, seniors it through mail order, back into the for their lives, are afraid of violence, are paying two, three, four, in fact I United States, the FDA puts the bur- have seen guns, have been bullied, have talked to one couple that is paying den of proof on the seniors to prove experienced prejudice. over $1,000 a month for prescription that they are legal drugs and were Yet, the conference that is supposed drugs. It is a serious problem. It is here manufactured in an FDA-approved fa- to be on gun safety and juvenile justice now. Every one has an opinion. cility. idles away its time, refusing to concede But let me just talk about what I What I am going to be doing here in to the National Rifle Association, re- think is one part of the problem that the next day or two is introducing leg- fusing to provide real gun safety for we could do something very serious islation to clarify that Americans will America. about solving very quickly. be able, going through their local phar- What are the issues that we are dis- But before I do, I would like to read macy, to order drugs over the Internet cussing in that conference? Are they so excerpts from a letter to the commu- or by web or through faxes with cor- threatening to those of us who have nity from George Halvorson. George respondent pharmacies in Canada or in taken an oath of office to do what is Halvorson is the president and CEO of Mexico as long as they are legal drugs best for the American people that we HealthPartners in Minneapolis. produced in an FDA-approved facility would not want to do it? Let me just read, ‘‘The cost of pre- to allow them to do that. Does it make any sense that we con- scription drugs varies to an amazing We are talking about savings for tinue to allow guns to get in the hands degree between countries. some seniors of $300 or $400 per month. of criminals and children? Does it

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00070 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.155 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11553 make any sense that gun shows pro- been asking that we move forward. I former colleagues who have been nomi- liferate themselves around this Nation hope that we will hear from the other nated to high office by the President of with the concept of unlicensed gun body that has been dragging their feet. the United States and to extend them dealers being able to randomly sell The hours are tick, tick, ticking the courtesy of prompt hearings, in ac- guns to anybody who walks through away. Thirteen children are dying, Mr. cord with their constitutional respon- the door? Speaker, every single day. What a sibilities to advise and consent. Only Just recently in California, one of shame on this House. What a shame on six former Senators have been turned the largest gun shows in America was America. down for nomination this century, all able to be held because the ordinance f for Cabinet or Supreme Court posi- and law that had been passed by local The SPEAKER pro tempore (Mr. tions. A Senator has not been rejected officials who came together and said ISAKSON). Under a previous order of the for an ambassadorial appointment we do not want any more gun shows in House, the gentleman from Washington since 1835. our community after the tragedy of the (Mr. METCALF) is recognized for 5 min- Up to this point, Senator Moseley- Jewish Community Center was thwart- utes. Braun’s nomination has been blocked ed by a court. (Mr. METCALF addressed the House. by the chairman of the Senate Com- I believe in the democratic process, His remarks will appear hereafter in mittee on Foreign Relations, who, ac- the process of the judiciary, but there the Extensions of Remarks.) cording to news reports, has demanded they were selling guns, selling guns by f an apology for a speech Senator unlicensed dealers, and who knows how Moseley-Braun made criticizing the many criminals and possibly children IN SUPPORT OF SENATOR CAROL use of the Confederate flag. had access to the guns. MOSELEY-BRAUN’S AMBAS- A study by the Alliance for Justice This conference will provide opportu- SADORSHIP TO NEW ZEALAND determined that the nomination of an nities to close the loopholes for gun The SPEAKER pro tempore. Under a average nonwhite candidate took 60 shows so that unlicensed dealers could previous order of the House, the gen- days longer than that of a white cannot get up or get where they could sell tleman from Illinois (Mr. DAVIS) is rec- didate. Couple these two facts and we guns to criminals and children. ognized for 5 minutes. have a profound malfunction in our de- It provides for trigger locks. It will Mr. DAVIS of Illinois. Mr. Speaker, I mocracy. Senator Carol Moseley-Braun will do eliminate the ammunition clips of fast take this opportunity to express strong just fine in whatever direction life guns that we really do not need for support for the confirmation of Sen- takes her. She will be a success as an sports and other recreational Activi- ator Carol Moseley-Braun to the am- ambassador if she is confirmed; she ties. bassadorship of New Zealand. I have known Carol Moseley-Braun both per- will be a success in some other endeav- b 2330 sonally and professionally for many or if she is denied. But democracy in And I would offer an amendment to years and look forward to her service the United States faces a bleaker ensure that children are accompanied in this position. choice. Mr. Speaker, make no mistake, by adults when they go into these gun Senator Moseley-Braun is an extraor- our democracy is being weighed in the shows if, because of the laws of this dinary woman who has led an extraor- balance in the coming days. If fairness land, these gun shows continue to pro- dinary life, a life of breaking stereo- does not prevail, if Senator Carol liferate. types, a life of shattering glass ceil- Moseley-Braun is denied confirmation, Do my colleagues know that in many ings, a life of public service. She earned then those responsible will have offered States, unlike movies, where we are her law degree from the University of up proof, proof to the American people, looking to curb the violence and we re- Chicago in 1972 and served as an assist- proof to the world, that fairness and quire children to be accompanied by an ant United States attorney from 1973 to justice are still wanted in America five generations after the end of the Civil adult depending on the rating of the 1977. In 1978, she was elected to the Illi- War. I find that possibility abhorrent, movie, they can walk in randomly in nois House of Representatives where detestable, and obscene. many States into these gun shows she became the first female assistant looking at weapons of war, fast ammu- So I add my voice to those urging the majority leader. In 1988, Senator Senate to bring the nomination of Sen- nition clips, or guns with automatic Moseley-Braun was elected Cook Coun- clips to them? They are looking at ator Moseley-Braun to a quick vote ty Recorder of Deeds, racking up sev- and to approve the nomination by the these. They are seeing these weapons of eral more firsts. In 1992, she was elect- largest vote possible. I hope that on to- violence with no one attending to ed to the United States Senate, becom- morrow the Senate Committee on For- them. ing the first African American woman eign Relations will move promptly to So, Mr. Speaker, I think that it is a to serve in that honorable body. approve the nomination of Carol tragedy that in these waning hours we Sometime ago, President Clinton Moseley-Braun as our next ambassador will watch more children die, maybe nominated Senator Moseley-Braun to to New Zealand and America will be the tragedy of more workplace vio- become our ambassador to New Zea- well served. lence, more criminals getting guns ille- land. As ambassador, Carol Moseley- f gally; yet we are sitting by as the Braun would be the highest ranking hours are tick, tick, ticking away diplomatic official accredited to rep- WHEN WILL ADMINISTRATION ASK doing absolutely nothing. I think this resent our interests in that Pacific YELTSIN FOR LOCATIONS OF is a shame on this Nation. I think it is Rim nation. I can testify from personal BURIED WEAPONS IN U.S.? a shame on this Congress. knowledge that Senator Moseley-Braun The SPEAKER pro tempore. Under a I would ask Members in these waning is well qualified to undertake those previous order of the House, the gen- hours to lift their voices and ask the solemn responsibilities. tleman from Pennsylvania (Mr. collective leadership why, why we have Throughout her career in public life, WELDON) is recognized for 5 minutes. not met in conference to talk about Senator Moseley-Braun has displayed Mr. WELDON of Pennsylvania. Mr. gun safety in America. When will we tremendous ability, insight, and per- Speaker, when will we ask the ques- raise up our voices but, at the same ceptivity on the great issues of the tion? When will this administration time, lift ourselves to act and to ensure day. She is a woman of great personal formally ask Russia to provide the de- that children are protected? charm who has been blessed with a re- tails contained in secret KGB docu- I hope that we will hear from some- markable talent to interact with peo- ments that define the significant num- one in the near future. I hope we will ple, to engage them in dialogue, and to ber of locations throughout America hear from the Speaker of the House, I represent her position to them with where, during the Soviet era, military hope we will hear from the majority logic, clarity, and persuasiveness. In equipment, hardware, and possibly leader, I hope we will hear from the short, she would represent us well to even material for weapons of mass de- majority whip, I hope we will work in the people of New Zealand. struction was stored in buried sites? a bipartisan manner with the leader- Mr. Speaker, it is the long-standing Mr. Speaker, 2 years ago the highest ship in the Democratic caucus that has tradition of the Senate to welcome ranking foreign intelligence officer

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00071 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.160 pfrm02 PsN: H04PT1 H11554 CONGRESSIONAL RECORD — HOUSE November 4, 1999 ever to defect from the Soviet Union, House, the gentleman from Colorado Obviously, this is not the case. Once Stanislav Lunev testified before my (Mr. TANCREDO) is recognized for 5 min- again, it is the Government-knows-best subcommittee and said that one of his utes. attitude, an attitude that many Fed- jobs when he worked at the embassy Mr. TANCREDO. Mr. Speaker, a eral bureaucrats have unfortunately. It here in Washington undercover as a short time ago I received a commu- is an outrage and it should be stopped. Tass correspondent was to locate sites nication from an individual in my dis- In August, the House passed H.R. 987, where the Soviets could drop equip- trict, a gentleman who owns a number the Workplace Preservation Act, which ment that could be stored in the soil of of small businesses. He is head of some- prohibits OSHA from implementing the America. thing called The Bailey Company in ergonomics regulation until the acad- Last Wednesday, again before my Golden, Colorado. It is an Arby’s fran- emy completes its ongoing study slated subcommittee, Oleg Gordiefsky, the chise. to be released mid-2001. This is a com- highest ranking ever internal KGB in- He writes: ‘‘Our company opened its mon-sense step and one which Members telligence officer, who now lives in first Arby’s restaurant in 1968 at the of the House and the other body should Britain, testified that the KGB files, as corner of York and Colfax in Denver. support. documented by Mitrokhin, contained Today we own and operate 63 Arby’s in a new book just released last month restaurants in Colorado, Florida, f called The KGB Files, are in fact true. Idaho, Wyoming, including all of the ANNOUNCEMENT OF MEASURE TO Those files document significant num- Arby’s in the Metro-Denver area.’’ bers of cases around the world, in Eu- He goes on to explain what happened BE CONSIDERED UNDER SUSPEN- rope and in North America, where dur- in his business a short time ago, and SION OF THE RULES ON TOMOR- ing the Soviet era the KGB arranged this I want to bring to the attention of ROW for the storage of military material the House and our colleagues in order Mr. TANCREDO. Mr. Speaker, pursu- and hardware on the soil of this Na- to explain the problems we are going to ant to House Resolution 353, I an- tion. face and we do face in small businesses nounce the following measure to be Mr. Speaker, we have known this for throughout the United States. And taken up under suspension of the rules: at least 6 years. The FBI has told me these problems will become exacer- H.R. 3075, Medicare Addbacks. and the Pentagon has said publicly we bated by the actions of OSHA as they have not yet asked the Russians for the f specific sites. have been many times in the past. I This past weekend I spoke at an want to refer specifically to an event RECESS international terrorism conference in that occurred in Mr. Eagleton’s business. The SPEAKER pro tempore. Pursu- Europe, where I had a chance to meet ant to clause 12 of rule I, the Chair de- one of the highest-ranking intelligence ‘‘As an employer of approximately 1,500 people, we are concerned about clares the House in recess subject to officials from Belgium. I was told by the call of the Chair. that official that in the last 2 months, the proposed OSHA repetitive motion Accordingly (at 11 o’clock and 44 Belgium has uncovered three sites regulations. An employee, Mary, minutes p.m.), the House stood in re- where these materials were stored by worked at an Arby’s restaurant in Jef- cess subject to the call of the Chair. the Soviet Union without the knowl- ferson County, Colorado, in 1998. On edge of the Belgium government. Swit- her first day of work, after 3 hours of f zerland has also identified one site that light duty wrapping sandwiches in foil, was booby-trapped where materials she complained that her wrists hurt. b 0053 were stored. An employee of the Bailey Company Mr. Speaker, when is this adminis- filled out a first report of injury and AFTER RECESS tration going to ask the Yeltsin gov- sent her to our designated treatment The recess having expired, the House ernment to give us the KGB documents facility. Mary was diagnosed with re- was called to order by the Speaker pro that identify the sites in California, in petitive motion injuries. The ensuing tempore (Mr. SESSIONS) at 12 o’clock Montana, in Minnesota, in New York, series of treatments evolved in a and 53 minutes a.m. in Texas, and across this Nation where $100,000 Worker’s Compensation claim. specific caches of arms and military ‘‘The medical community is split on f hardware and equipment were the legitimacy and causality of these prepositioned during the Cold War? injuries. For instance, athletes do re- REPORT ON RESOLUTION PRO- VIDING FOR CONSIDERATION OF b 2340 petitive exercises to strengthen their muscles; yet repetitive motion does not H.R. 3196, FOREIGN OPERATIONS, It is absolutely a national disgrace harm them. How does repetitive mo- EXPORT FINANCING AND RE- that this administration, having tion in other circumstances differ in LATED PROGRAMS APPROPRIA- known about this prepositioning of the view of the courts? TIONS ACT, 2000 equipment for at least 6 years, has not ‘‘Our position is that the proposed yet seen fit to ask that question of the Mr. DIAZ-BALART, from the Com- OSHA repetitive motion regulations Yeltsin government. mittee on Rules, submitted a privi- This body needs a demand that this should not be funded until definitive leged report (Rept. No. 106–450) on the administration take action. Because, scientific studies are concluded.’’ resolution (H. Res. 362) providing for Mr. Speaker, the safety of the people of ‘‘J. Mark Eagleton, Senior Manager/ consideration of the bill (H.R. 3196) America are in question as long as Director of Training and Personnel for making appropriations for foreign op- those materials have not been identi- The Bailey Company.’’ erations, export financing, and related fied and have not been removed by our Mr. Speaker, even though what we programs for the fiscal year ending Government. have just heard here is replicated, un- September 30, 2000, and for other pur- In four instances, one in Switzerland fortunately, far too many times poses, which was referred to the House and three in Belgium, sites have been throughout the country, OSHA is none- Calendar and ordered to be printed. found and they have been dug up. It is theless pushing ahead with its ergo- f about time this administration asked nomic study. Even though the Bureau of Labor Statistics reports that repet- the question of the Russian leadership LEAVE OF ABSENCE where those sites are in America. We itive stress injuries are on a decline should demand no less from our Gov- and have dropped 17 percent over the By unanimous consent, leave of ab- ernment. last 3 years, should we not at least sence was granted to: f have as much information as possible Mr. LARSON (at the request of Mr. when developing Government policy? GEPHARDT) for today, on account of of- PROPOSED OSHA REPETITIVE Should we not require Government ficial business. MOTION REGULATIONS agencies to use sound scientific infor- Mr. KANJORSKI (at the request of Mr. The SPEAKER pro tempore (Mr. mation when reaching decisions that GEPHARDT) for today, on account of of- ISAKSON). Under a previous order of the will affect our lives? ficial business.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00072 Fmt 7634 Sfmt 0634 E:\CR\FM\K04NO7.164 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11555 SPECIAL ORDERS GRANTED 5176. A letter from the Acting Executive 1, 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to By unanimous consent, permission to Director, Commodity Futures Trading Com- the Committee on Transportation and Infra- mission, transmitting the Commission’s structure. address the House, following the legis- final rule—Order Granting the London Clear- 5187. A letter from the Program Analyust, lative program and any special orders ing House’s Petition for an Exemption Pur- FAA, Department of Transportation, trans- heretofore entered, was granted to: suant to Section 4(c) of the Commodity Ex- mitting the Department’s final rule—Air- (The following Members (at the re- change Act—received November 3, 1999, pur- worthiness Directives; British Aerospace quest of Mr. MENENDEZ) to revise and suant to 5 U.S.C. 801(a)(1)(A); to the Com- Model BAe 146 and Avro 146–RJ Series Air- extend their remarks and include ex- mittee on Agriculture. planes [Docket No. 99–NM–27–AD; Amend- traneous material:) 5177. A letter from the Acting Executive ment 39–11389; AD 99–22–11] (RIN: 2120–AA64) Mr. FILNER, for 5 minutes, today. Director, Commodity Futures Trading Com- received November 1, 1999, pursuant to 5 Ms. KAPTUR, for 5 minutes, today. mission, transmitting the Commission’s U.S.C. 801(a)(1)(A); to the Committee on Mr. BROWN of Ohio, for 5 minutes, final rule—Foreign Futures and Options Transportation and Infrastructure. today. Transactions—received November 3, 1999, 5188. A letter from the Program Analyst, pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- FAA, Department of Transportation, trans- Ms. WATERS, for 5 minutes, today. mittee on Agriculture. mitting the Department’s final rule—Air- Ms. JACKSON-LEE of Texas, for 5 min- 5178. A letter from the Assistant General worthiness Directives; Bell Helicopter Tex- utes, today. Counsel, Office of Student Financial Assist- tron Canada (BHTC) Model 407 Helicopters Mr. DAVIS of Illinois, for 5 minutes, ance, Department of Education, transmit- [Docket No. 99–SW–07–AD; Amendment 39– today. ting the Department’s final rule—Student 11391; AD 99–22–12] (RIN: 2120–AA64) received (The following Members (at the re- Assistance General Provisions (RIN: 1845– November 1, 1999, pursuant to 5 U.S.C. quest of Mr. WELDON of Pennsylvania) AA07) received November 3, 1999, pursuant to 801(a)(1)(A); to the Committee on Transpor- to revise and extend their remarks and 5 U.S.C. 801(a)(1)(A); to the Committee on tation and Infrastructure. include extraneous material:) Education and the Workforce. 5189. A letter from the Program Analyst, Mr. GUTKNECHT, for 5 minutes, today. 5179. A letter from the Associate Chief, FAA, Department of Transportation, trans- Mr. SIMPSON, for 5 minutes, on No- Wireless Telecommunications Bureau, Fed- mitting the Department’s final rule—Air- vember 8. eral Communications Commission, transmit- worthiness Directives; Pratt & Whitney ting the Commission’s final rule—Revision Mr. METCALF, for 5 minutes, today. JT8D–200 Series Turbofan Engines [Docket of the Commission’s Rules To Ensure Com- Mr. WELDON of Pennsylvania, for 5 No. 92–ANE–15; Amendment 39–11392; AD 99– patibility with Enhanced 911 Emergency minutes, today. 22–14] (RIN: 2120–AA64) received November 1, Calling Systems [CC Docket No. 94–102 RM– 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the f 8143] received November 3, 1999, pursuant to Committee on Transportation and Infra- SENATE BILLS REFERRED 5 U.S.C. 801(a)(1)(A); to the Committee on structure. Commerce. 5190. A letter from the Program Analyst, Bills of the Senate of the following 5180. A letter from the Assistant Legal Ad- FAA, Department of Transportation, trans- titles were taken from the Speaker’s viser for Treaty Affairs, Department of mitting the Department’s final rule—Revi- table and, under the rule, referred as State, transmitting Copies of international sion of Class E Airspace; Beaumont, TX [Air- follows: agreements, other than treaties, entered into space Docket No. 99–ASW–25] received No- S. 185. An act to establish a Chief Agricul- by the United States, pursuant to 1 U.S.C. vember 1, 1999, pursuant to 5 U.S.C. tural Negotiator in the Office of the United 112b(a); to the Committee on International 801(a)(1)(A); to the Committee on Transpor- States Trade Representative; to the Com- Relations. tation and Infrastructure. 5181. A letter from the Assistant Secretary mittee on Ways and Means. 5191. A letter from the Program Analyst, S. 976. An act to amend title V of the Pub- For Legislative Affairs, Department of FAA, Department of Transportation, trans- lic Health Service Act to focus the authority State, transmitting the ‘‘Initial Report of mitting the Department’s final rule—Revi- of the Substance Abuse and Mental Health the United States of America to the UN sion of Class E Airspace; Hebbronville, TX Services Administration on community- Committee Against Torture’’; to the Com- [Airspace Docket No. 99–ASW–24] received based services for children and adolescents, mittee on International Relations. November 1, 1999, pursuant to 5 U.S.C. 5182. A letter from the Administrator, Gen- to enhance flexibility and accountability, to 801(a)(1)(A); to the Committee on Transpor- eral Services Administration, transmitting establish programs for youth treatment, and tation and Infrastructure. the ‘‘1999 Fair Act Inventory of the General to respond to crises, especially those related 5192. A letter from the Deputy Executive Services Administration’’; to the Committee to children and violence; to the Committee Secretary to the Department, Department of on Government Reform. on Commerce. Health and Human Services, transmitting 5183. A letter from the Director, Office of the Department’s final rule—Medicare Pro- f Surface Mining, Department of the Interior, gram; Revisions to Payment Policies Under transmitting the Department’s final rule— ENROLLED BILL AND JOINT the Physician Fee Schedule for Calendar North Dakota Regulatory Program [ND–038– RESOLUTION SIGNED Year 2000 [HCFA–1065–FC] (RIN: 0938–AJ61) FOR, Amendment No. XXVII] received No- received November 3, 1999, pursuant to 5 Mr. THOMAS, from the Committee vember 3, 1999, pursuant to 5 U.S.C. U.S.C. 801(a)(1)(A); jointly to the Committees on House Administration, reported 801(a)(1)(A); to the Committee on Resources. that that committee had examined and 5184. A letter from the Deputy Assistant on Ways and Means and Commerce. found truly enrolled a bill and a joint Administrator For Fisheries, National Ma- f resolution of the House of the following rine Fisheries Service, National Oceanic and Atmospheric Administration, transmitting REPORTS OF COMMITTEES ON titles, which were thereupon signed by PUBLIC BILLS AND RESOLUTIONS the Speaker: the Administration’s final rule—Fisheries of the Exclusive Economic Zone Off Alaska; Re- Under clause 2 of rule XIII, reports of H.R. 609. An act to amend the Export Apple visions to Recordkeeping and Reporting Re- and Pear Act to limit the applicability of the committees were delivered to the Clerk quirements [Docket No. 981224323–9226–02; for printing and reference to the proper Act to apples. I.D. 120198B] (RIN: 0648–AL23) received No- H.J. Res. 75. Joint resolution making fur- vember 3, 1999, pursuant to 5 U.S.C. calendar, as follows: ther continuing appropriations for the fiscal 801(a)(1)(A); to the Committee on Resources. Mr. YOUNG of Alaska: Committee on Re- year 2000, and for other purposes. 5185. A letter from the Acting Director, Of- sources. H.R. 1725. A bill to provide for the f fice of Sustainable Fisheries, National Oce- conveyance by the Bureau of Land Manage- ADJOURNMENT anic and Atmospheric Administration, trans- ment to Douglas County, Oregon, of a county mitting the Administration’s final rule— park and certain adjacent land (Rept. 106– Mr. DIAZ-BALART. Mr. Speaker, I Fisheries of the Exclusive Economic Zone 446). Referred to the Committee of the Whole move that the House do now adjourn. Off Alaska; Pollock by Vessels Catching Pol- House on the State of the Union. The motion was agreed to; accord- lock for Processing by the Inshore Compo- Mr. YOUNG of Alaska: Committee on Re- ingly (at 12 o’clock and 54 minutes nent in the Bering Sea Subarea [Docket No. sources. H.R. 2541. A bill to adjust the bound- a.m.), the House adjourned until today, 990304063–9063–01; I.D. 102699D] received No- aries of the Gulf Islands National Seashore Friday, November 5, 1999, at 9 a.m. vember 3, 1999, pursuant to 5 U.S.C. to include Cat Island, Mississippi; with an 801(a)(1)(A); to the Committee on Resources. amendment (Rept. 106–447). Referred to the f 5186. A letter from the Program Analyst, Committee of the Whole House on the State EXECUTIVE COMMUNICATIONS, FAA, Department of Transportation, trans- of the Union. ETC. mitting the Department’s final rule—Air- Mr. YOUNG of Alaska: Committee on Re- worthiness Directives; Eurocopter France sources. H.R. 2879. A bill to provide for the Under clause 8 of rule XII, executive Model AS332C, L, and L1 Helicopters [Docket placement at the Lincoln Memorial of a communications were taken from the No. 98–SW–59–AD; Amendment 39–11390; AD plaque commemorating the speech of Martin Speaker’s table and referred as follows: 99–22–12] (RIN: 2120–AA64) received November Luther King, Jr., known as the ‘‘I Have A

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Dream’’ speech (Rept. 106–448). Referred to Mr. BONIOR, Mr. GEORGE MILLER of prescription drugs and medical supplies dis- the Committee of the Whole House on the California, Mr. TOOMEY, Ms. pensed by Department of Veterans Affairs State of the Union. DELAURO, Mr. SANFORD, Mr. COYNE, pharmacies from otherwise applicable inter- Mr. BLILEY: Committee on Commerce. Ms. PELOSI, Mr. STARK, Mr. KUCINICH, est charges and administrative cost charges H.R. 1832. A bill to reform unfair and anti- Mr. ANDREWS, Mr. ACKERMAN, Mrs. imposed on indebtedness to the United competitive practices in the professional LOWEY, Mr. BRADY of Pennsylvania, States resulting from the provision of med- boxing industry; with an amendment (Rept. Mr. TIERNEY, Mr. FATTAH, Mr. STU- ical care or services by the Department of 106–449 Pt. 1). PAK, Mr. CAPUANO, Mr. HOLT, Mr. WU, Veterans Affairs; to the Committee on Vet- Mr. DIAZ-BALART: Committee on Rules. Mr. TRAFICANT, and Mr. SANDERS): erans’ Affairs. House Resolution 362. Resolution providing H.R. 3221. A bill to review, reform, and ter- By Mr. MORAN of Virginia (for him- for consideration of the bill (H.R. 3196) mak- minate unnecessary and inequitable Federal self, Mr. WOLF, Mr. SISISKY, Mr. ing appropriations for foreign operations, ex- payments, benefits, services, and tax advan- DAVIS of Virginia, Mr. WEYGAND, and port financing, and related programs for the tages; to the Committee on Government Re- Mr. KENNEDY of Rhode Island): fiscal year ending September 30, 2000, and for form, and in addition to the Committees on H.R. 3228. A bill to name the building at other purposes (Rept. 106–450). Referred to Ways and Means, Rules, and the Budget, for 8725 John J. Kingman Road, Fort Belvoir, the House Calendar. a period to be subsequently determined by Virginia, as the ‘‘Andrew T. McNamara the Speaker, in each case for consideration Building’’; to the Committee on Armed Serv- DISCHARGE OF COMMITTEE of such provisions as fall within the jurisdic- Pursuant to clause 5 of rule X, the ices. tion of the committee concerned. By Mr. SANDERS: Committee on Education and the By Mr. GOODLING (for himself, Mr. H.R. 3229. A bill to amend the Electronic Workforce discharged H.R. 1832 referred WATTS of Oklahoma, Mr. PETRI, Mr. Fund Transfer Act to prohibit the imposition to the Committee of the Whole House CASTLE, Mr. GREENWOOD, Mr. of certain additional fees on consumers in on the State of the Union, and ordered GRAHAM, Mr. DEAL of Georgia, Mr. connection with any electronic fund transfer EHLERS, Mr. FLETCHER, Mr. ISAKSON, which is initiated by the consumer from an to be printed. Mr. CHAMBLISS, Mr. ENGLISH, Mr. electronic terminal operated by a person f KILDEE, Mr. MARTINEZ, Mr. ROEMER, other than the financial institution holding Mr. ROMERO-BARCELO´ , Mr. KIND, Ms. the consumer’s account and which utilizes a PUBLIC BILLS AND RESOLUTIONS SANCHEZ, Mr. ACKERMAN, Mr. SAW- national or regional communication net- YER, Ms. WOOLSEY, Mr. WU, Mr. Under clause 2 of rule XII, public work; to the Committee on Banking and Fi- TIERNEY, Mr. FORD, and Mr. CLAY): bills and resolutions were introduced nancial Services. H.R. 3222. A bill to amend the Elementary and severally referred, as follows: and Secondary Education Act of 1965 to im- By Mr. STUPAK: By Mr. BALDACCI: prove literacy through family literacy H.R. 3230. A bill to amend title 38, United H.R. 3217. A bill to assist the efforts of projects; to the Committee on Education and States Code, to provide that a disease that is farmers and cooperatives seeking to engage the Workforce. incurred or aggravated by a member of a rein value-added processing of agricultural By Mr. FATTAH (for himself, Mrs. serve component in the performance of duty while performing inactive duty training goods; to the Committee on Agriculture. CHRISTENSEN, Mr. CONYERS, Mr. shall be considered to be service-connected By Mr. CALVERT (for himself, Mr. HASTINGS of Florida, Ms. NORTON, Mr. for purposes of benefits under laws adminis- SHIMKUS, Mr. GREEN of Wisconsin, CUMMINGS, Mr. FROST, Mr. ROMERO- tered by the Secretary of Veterans Affairs; Mr. ACKERMAN, Mr. PAUL, Mr. HIN- BARCELO, Ms. LEE, Mrs. JONES of to the Committee on Veterans’ Affairs. CHEY, Mr. NETHERCUTT, Mr. GEORGE Ohio, Mr. JEFFERSON, Mr. MCGOVERN, By Mr. CRANE: MILLER of California, Ms. HOOLEY of Mrs. NAPOLITANO, Mr. MARKEY, Mr. H.R. 3231. A bill to authorize the transfer Oregon, Mrs. EMERSON, Mr. SANDLIN, HINOJOSA, Mr. PASTOR, Ms. BALDWIN, to the Republic of Panama of certain prop- Ms. LOFGREN, Ms. LEE, Mr. SENSEN- Mr. CLAY, Mr. OWENS, Mr. MARTINEZ, erties of the United States as set forth in the BRENNER, Mr. ROHRABACHER, Mr. Mrs. CLAYTON, Mr. RUSH, Mr. RAN- Panama Canal Treaties; to the Committee TIAHRT, Mr. CUNNINGHAM, Mr. PAYNE, GEL, Mr. BARRETT of Wisconsin, and on Armed Services. Mrs. BIGGERT, Mr. DOOLITTLE, Mr. Ms. SCHAKOWSKY): ENGLISH, Mr. BILBRAY, Mr. HILL of H.R. 3223. A bill to assist institutions of By Mr. DAVIS of Virginia (for himself Montana, Mr. SHOWS, Mr. GARY MIL- higher education help at-risk students stay and Mr. ROHRABACHER): H. Con. Res. 220. Concurrent resolution ex- LER of California, Mr. HOLDEN, Mr. in school and complete their 4-year postsec- pressing the sense of the Congress that a CAMPBELL, Mrs. MORELLA, Mr. NEY, ondary academic programs; to the Com- postage stamp should be issued recognizing Mr. EHRLICH, Mr. BAKER, Mr. SCHAF- mittee on Education and the Workforce. the Islamic holy month of Ramadan; to the FER, and Mr. KUYKENDALL): By Mrs. KELLY (for herself, Mrs. H.R. 3218. A bill to amend title 31, United THURMAN, Ms. DELAURO, Mr. SAND- Committee on Government Reform. States Code, to prohibit the appearance of ERS, Mr. GILMAN, Mr. SANDLIN, Mr. By Mr. BILIRAKIS (for himself, Mrs. Social Security account numbers on or COOK, Mr. BRADY of Pennsylvania, MALONEY of New York, and Mr. through unopened mailings of checks or Mr. HINCHEY, Mr. FILNER, Mr. MCIN- MENENDEZ): other drafts issued on public money in the TYRE, Mr. MATSUI, Ms. KILPATRICK, H. Res. 361. A resolution urging the Presi- Treasury; to the Committee on Government Ms. LOFGREN, Mrs. EMERSON, Mr. AN- dent to condition discussions about Turkey’s Reform. DREWS, Mr. ROEMER, Mr. FROST, Mr. foreign military finances on resolution of By Mr. COBLE: KIND, Mr. MCHUGH, Mr. NADLER, Mr. that nation’s hostile occupation of the Re- H.R. 3219. A bill to amend title 49, United KLECZKA, Ms. JACKSON-LEE of Texas, public of Cyprus; to the Committee on Inter- States Code, to permit an individual to oper- and Mr. WALSH): national Relations. ate a commercial motor vehicle for the H.R. 3224. A bill to amend the Internal Rev- f enue Code of 1986 to require group health transportation of certain property solely MEMORIALS within the borders of a State if the indi- plans to provide coverage for reconstructive vidual has passed written and driving tests surgery following mastectomy, consistent Under clause 3 of rule XII, with the Women’s Health and Cancer Rights to operate the vehicle that meet such min- 278. The SPEAKER presented a memorial imum standards as may be prescribed by the Act of 1998; to the Committee on Ways and Means. of the Legislature of the State of California, State, and for other purposes; to the Com- relative to Assembly Joint Resolution No. 33 By Mr. MCCRERY (for himself and Mr. mittee on Transportation and Infrastruc- memorializing the President and Congress of ture. JEFFERSON): H.R. 3225. A bill to revitalize the inter- the United States to support specified fed- By Mr. GEPHARDT (for himself, Mr. national competitiveness of the United eral legislation to classify spaceports as ex- DINGELL, and Mr. CONYERS): States-flag maritime industry through tax empt facilities and enable state and local en- H.R. 3220. A bill to regulate interstate relief; to the Committee on Ways and Means. tities to sell bonds for private or public de- commerce by electronic means by permit- By Mr. METCALF: velopment of spaceport infrastructure; to the ting and encouraging the continued expan- H.R. 3226. A bill to amend title 49, United Committee on Ways and Means. sion of electronic commerce through the op- States Code, to improve pipeline safety; to f eration of free market forces, and for other the Committee on Transportation and Infra- purposes; to the Committee on Commerce, structure, and in addition to the Committee ADDITIONAL SPONSORS and in addition to the Committee on Govern- on Commerce, for a period to be subse- Under clause 7 of rule XII, sponsors ment Reform, for a period to be subsequently quently determined by the Speaker, in each were added to public bills and resolu- determined by the Speaker, in each case for case for consideration of such provisions as consideration of such provisions as fall with- fall within the jurisdiction of the committee tions as follows: in the jurisdiction of the committee con- concerned. H.R. 82: Mr. PALLONE and Mr. YOUNG of cerned. By Mrs. MINK of Hawaii: Florida. By Mr. HOEFFEL (for himself, Mr. H.R. 3227. A bill to amend title 38, United H.R. 274: Mr. SPENCE and Mr. THOMPSON of CAMPBELL, Mr. WAXMAN, Mr. KASICH, States Code, to exempt amounts owed for Mississippi.

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H.R. 403: Mr. BLUMENAUER. H.R. 3136: Ms. BERKLEY, Mr. LIPINSKI, Ms. TITLE II—FATHERHOOD PROJECTS OF H.R. 405: Mr. THOMPSON of California. BALDWIN, and Mr. BAIRD. NATIONAL SIGNIFICANCE H.R. 534: Ms. BERKLEY. H.R. 3138: Mr. HUTCHINSON. Sec. 201. Fatherhood projects of national H.R. 571: Mr. TERRY. H.R. 3144: Ms. NORTON, Mr. MARTINEZ, Mr. significance. H.R. 617: Mr. DELAHUNT. GEORGE MILLER of California, Mr. ROMERO- TITLE III—WELFARE-TO-WORK H.R. 721: Mr. MCINTOSH and Mr. MEEHAN. ´ BARCELO, and Mr. PAYNE. PROGRAM ELIGIBILITY H.R. 728: Mr. COOKSEY, Mr. FROST, and Mr. H.R. 3159: Mr. PHELPS. Sec. 301. Flexibility in eligibility for par- LATHAM. H.R. 3180: Mr. KING, Mr. GRAHAM, and Mr. ticipation in welfare-to-work program. H.R. 750: Mr. KLINK. OWENS. Sec. 302. Limited vocational educational H.R. 845: Ms. ROYBAL-ALLARD. H.R. 3185: Mr. WYNN. and job training included as allowable H.R. 860: Mrs. LOWEY. H.R. 3197: Mr. DEFAZIO, Mr. FROST, Mr. activity. H.R. 864: Mr. JACKSON of Illinois and Mr. GEJDENSON, Mr. MCNULTY, and Mr. DAVIS of Sec. 303. Certain grantees authorized to NUSSLE. Florida. provide employment services directly. H.R. 865: Mr. NETHERCUTT and Mr. GORDON. H.R. 3212: Mr. CUNNINGHAM and Mr. DUN- PENCE HOMPSON Sec. 304. Simplification and coordination H.R. 997: Mr. S and Mr. T of CAN. of reporting requirements. Mississippi. H. Con. Res. 51: Ms. CARSON. H.R. 1044: Mr. HASTINGS of Washington and Sec. 305. Use of State information to aid H. Con. Res. 77: Mr. CUNNINGHAM, Mr. Mr. GORDON. administration of welfare-to-work for- PAYNE, Mr. TURNER, Mrs. WILSON, and Mr. H.R. 1102: Mr. TURNER. mula grant funds. WYNN. H.R. 1111: Ms. HOOLEY of Oregon. H. Con. Res. 89: Mr. MCCOLLUM. TITLE IV—ALTERNATIVE PENALTY PRO- H.R. 1115: Mr. ISAKSON. H. Con. Res. 165: Mr. BEREUTER. CEDURE RELATING TO STATE DIS- H.R. 1248: Mr. OLVER. H. Con. Res. 177: Mr. NADLER, Mr. ABER- BURSEMENT UNITS H.R. 1303: Mr. NEAL of Massachusetts. CROMBIE, Mr. DOGGETT, Mr. FILNER, Mr. BAR- Sec. 401. Alternative penalty procedure re- H.R. 1322: Mr. SCHAFFER. RETT of Wisconsin, Mr. FARR of California, lating to State disbursement units. H.R. 1329: Mrs. EMERSON. Mr. VENTO, Mr. PALLONE, Mr. JACKSON of Illi- TITLE V—FINANCING PROVISIONS H.R. 1452: Ms. LEE and Mr. PHELPS. nois, Mr. SAWYER, Mr. CROWLEY, Mr. H.R. 1485: Mrs. MCCARTHY of New York. Sec. 501. Use of new hire information to SERRANO, Mr. LEVIN, and Mr. BLAGOJEVICH. H.R. 1511: Mr. PAUL. assist in collection of defaulted student USSLE H.R. 1592: Ms. CARSON. H. Con. Res. 185: Mr. N . loans and grants. H.R. 1606: Mr. DELAHUNT. H. Con. Res. 204: Ms. MCKINNEY. Sec. 502. Elimination of set-aside of por- H.R. 1686: Mr. KUYKENDALL. H. Con. Res. 212: Mr. JONES of North Caro- tion of welfare-to-work funds for suc- H.R. 1693: Mr. ANDREWS. lina, Mr. KASICH, Mr. THORNBERRY, Mr. SCAR- cessful performance bonus. H.R. 1775: Mr. PASTOR, Mr. KILDEE, Mr. BOROUGH, Mr. BONILLA, and Mr. WATTS of TITLE VI—MISCELLANEOUS Oklahoma. MATSUI, Mr. GEORGE MILLER of California, Sec. 601. Change dates for evaluation. Mr. BALDACCI, Mr. UPTON, Mr. HOUGHTON, H. Con. Res. 217: Mr. WEXLER. H. Con. Res. 218: Mr. EHRLICH, Mr. MENEN- Sec. 602. Report on undistributed child Mr. RAMSTAD, Mr. BAKER, Mr. LEWIS of Ken- support payments. DEZ, and Mr. SABO. tucky, and Mr. TRAFICANT. Sec. 603. Sense of the Congress. H. Res. 238: Ms. DEGETTE, Mr. PAYNE, Mr. H.R. 1816: Mrs. SCHAKOWSKY and Mrs. Sec. 604. Additional funding for welfare BISHOP, Mr. PAUL, and Mr. TANCREDO. MALONEY of New York. evaluation study. H. Res. 298: Mr. BALLENGER and Mr. TAU- H.R. 1885: Mr. CONYERS. Sec. 605. Training in child abuse and ne- ZIN. H.R. 1954: Mr. STEARNS. glect proceedings. H.R. 1967: Mr. DEFAZIO and Mr. MARTINEZ. H. Res. 325: Mr. BONIOR and Mr. PRICE of North Carolina. Sec. 606. Use of new hire information to H.R. 2087: Mr. ARMEY and Mr. HASTINGS of assist in administration of unemploy- H. Res. 343: Mr. SMITH of New Jersey, Mr. Washington. ment compensation programs. ISTOOK, Mr. METCALF, and Mr. GANSKE. H.R. 2120: Mr. DEUTSCH. Sec. 607. Immigration provisions. H.R. 2200: Ms. LEE. H. Res. 347: Mr. MASCARA, Mr. FROST, Mr. TITLE I—FATHERHOOD GRANT PROGRAM H.R. 2244: Mr. BRYANT LOBIONDO, Mr. RANGEL, Mr. WEYGAND, Mr. H.R. 2273: Mr. PICKETT. WEXLER, and Mrs. KELLY. SEC. 101. FATHERHOOD GRANTS. H.R. 2298: Mr. RANGEL. H. Res. 350: Mr. SCHAFFER, Mr. BARTLETT of (a) IN GENERAL.—Part A of title IV of the H.R. 2373: Mr. MOORE and Mr. UDALL of Maryland, Mr. HOEKSTRA, Mr. HALL of Ohio, Social Security Act (42 U.S.C. 601–679b) is New Mexico. Mr. SHOWS, Mr. DEMINT, Mr. FLETCHER, Mr. amended by inserting after section 403 the H.R. 2381: Mr. HOSTETTLER. HEFLEY, Mr. HERGER, Mr. HYDE, Mr. following: H.R. 2457: Mr. SISISKY. LARGENT, Mr. GARY MILLER of California, ‘‘SEC. 403A. FATHERHOOD PROGRAMS. H.R. 2503: Ms. ROYBAL-ALLARD. Mr. SANFORD, Mr. SIMPSON, Mr. TERRY, Mr. ‘‘(a) PURPOSE.—The purpose of this section H.R. 2538: Mr. LARSON, Mr. ROGERS, Mr. WAMP, Mr. MCINTOSH, Mr. ADERHOLT, Mr. is to make grants available to public and pri- TERRY, Mr. KENNEDY of Rhode Island, Mr. BURTON of Indiana, Mr. KING, Mr. DICKEY, vate entities for projects designed to— CASTLE, and Mr. SCHAFFER. Mr. BACHUS, and Mr. RAHALL. ‘‘(1) promote marriage through counseling, H.R. 2550: Mr. PICKETT. f mentoring, disseminating information about H.R. 2635: Mr. WOLF. the advantages of marriage, enhancing rela- H.R. 2640: Mr. BOSWELL. DELETIONS OF SPONSORS FROM tionship skills, teaching how to control ag- H.R. 2655: Mrs. CHENOWETH-HAGE. PUBLIC BILLS AND RESOLUTIONS gressive behavior, and other methods; H.R. 2697: Mr. GORDON and Mr. TERRY. ‘‘(2) promote successful parenting through Under clause 7 of rule XII, sponsors H.R. 2720: Ms. DUNN. counseling, mentoring, disseminating infor- H.R. 2733: Mr. DICKEY, Ms. DEGETTE, Mr. were deleted from public bills and reso- mation about good parenting practices in- BISHOP, and Mr. TANCREDO. lutions as follows: cluding family planning, training parents in H.R. 2738: Mr. BONIOR, Mr. GEORGE MILLER H.R. 2528: Mr. BECERRA. money management, encouraging child sup- of California, Mr. KENNEDY of Rhode Island, f port payments, encouraging regular visita- and Mr. KLINK. tion between fathers and their children, and H.R. 2749: Ms. GRANGER. AMENDMENTS other methods; and ‘‘(3) help fathers and their families avoid or H.R. 2776: Mrs. MALONEY of New York. Under clause 8 of rule XVIII, pro- H.R. 2789: Mr. PAYNE. leave cash welfare provided by the program H.R. 2859: Ms. SCHAKOWSKY, Ms. BALDWIN, posed amendments were submitted as under part A and improve their economic and Mr. WEINER. follows: status by providing work first services, job H.R. 2915: Mr. HOLT and Mr. INSLEE. H.R. 3073 search, job training, subsidized employment, H.R. 2966: Mr. BAKER, Mr. BARTLETT of career-advancing education, job retention, OFFERED BY: MRS. JOHNSON OF CONNECTICUT Maryland, Ms. BERKLEY, Mr. ENGLISH, Mr. job enhancement, and other methods. [Amendment in the Nature of a Substitute] GORDON, Mr. MCINTYRE, and Mr. WYNN. ‘‘(b) FATHERHOOD GRANTS.— H.R. 2980: Mr. ROTHMAN. AMENDMENT NO. 1: Strike all after the en- ‘‘(1) APPLICATIONS.—An entity desiring a H.R. 3058: Mr. FARR of California, Mr. DIAZ- acting clause and insert the following: grant to carry out a project described in sub- BALART, Mr. ROHRABACHER, Mrs. KELLY, and SECTION 1. SHORT TITLE; TABLE OF CONTENTS. section (a) may submit to the Secretary an Mr. MCHUGH. (a) SHORT TITLE.—This Act may be cited as application that contains the following: H.R. 3062: Mr. RANGEL. the ‘‘Fathers Count Act of 1999’’. ‘‘(A) A description of the project and how H.R. 3091: Mr. LOBIONDO, Mr. WISE, Mr. RA- (b) TABLE OF CONTENTS.—The table of con- the project will be carried out. HALL, Mr. LEWIS of Kentucky, Mr. EVANS, tents of this Act is as follows: ‘‘(B) A description of how the project will Mr. KILDEE, Mr. HOLDEN, Mr. FRANK of Mas- address all 3 of the purposes of this section. Sec. 1. Short title; table of contents. sachusetts, Mr. LUTHER, Ms. MCCARTHY of ‘‘(C) A written commitment by the entity Missouri, Mr. HOLT, and Mrs. EMERSON. TITLE I—FATHERHOOD GRANT that the project will allow an individual to H.R. 3100: Mr. COOK, Mr. UPTON, Mr. PROGRAM participate in the project only if the indi- KUYKENDALL, Ms. BERKLEY, and Mr. CASTLE. Sec. 101. Fatherhood grants. vidual is—

VerDate 29-OCT-99 07:03 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00075 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.044 pfrm02 PsN: H04PT1 H11558 CONGRESSIONAL RECORD — HOUSE November 4, 1999 ‘‘(i) a father of a child who is, or within the cordance with sections 5702 and 5703 of title cordance with sections 5702 and 5703 of title past 24 months has been, a recipient of as- 5, United States Code. 5, United States Code. sistance or services under a State program ‘‘(vii) MEETINGS.—The Panel shall meet as ‘‘(vii) MEETINGS.—The Panel shall meet as funded under this part; often as is necessary to complete the busi- often as is necessary to complete the busi- ‘‘(ii) a father, including an expectant or ness of the Panel. ness of the Panel. married father, whose income (net of court- ‘‘(viii) CHAIRPERSON.—The Chairperson of ‘‘(viii) CHAIRPERSON.—The Chairperson of ordered child support) is less than 150 per- the Panel shall be designated by the Sec- the Panel shall be designated by the Sec- cent of the poverty line (as defined in section retary at the time of appointment. retary at the time of appointment. 673(2) of the Omnibus Budget Reconciliation ‘‘(ix) STAFF OF FEDERAL AGENCIES.—The ‘‘(ix) STAFF OF FEDERAL AGENCIES.—The Act of 1981, including any revision required Secretary may detail any personnel of the Secretary may detail any personnel of the by such section, applicable to a family of the Department of Health and Human Services Department of Health and Human Services size involved); or and the Secretary of Labor may detail any and the Secretary of Labor may detail any ‘‘(iii) a parent referred to in paragraph personnel of the Department of Labor to the personnel of the Department of Labor to the (3)(A)(iii). Panel to assist the Panel in carrying out its Panel to assist the Panel in carrying out its ‘‘(D) A written commitment by the entity duties under this subparagraph. duties under this subparagraph. that the entity will provide for the project, ‘‘(x) OBTAINING OFFICIAL DATA.—The Panel ‘‘(x) OBTAINING OFFICIAL DATA.—The Panel from funds obtained from non-Federal may secure directly from any department or may secure directly from any department or sources, amounts (including in-kind con- agency of the United States information nec- agency of the United States information nec- tributions) equal in value to— essary to enable it to carry out this subpara- essary to enable it to carry out this subpara- ‘‘(i) 20 percent of the amount of any grant graph. On request of the Chairperson of the graph. On request of the Chairperson of the made to the entity under this subsection; or Panel, the head of the department or agency Panel, the head of the department or agency ‘‘(ii) such lesser percentage as the Sec- shall furnish that information to the Panel. shall furnish that information to the Panel. retary deems appropriate (which shall be not ‘‘(xi) MAILS.—The Panel may use the ‘‘(xi) MAILS.—The Panel may use the less than 10 percent) of such amount, if the United States mails in the same manner and United States mails in the same manner and application demonstrates that there are cir- under the same conditions as other depart- under the same conditions as other depart- cumstances that limit the ability of the enti- ments and agencies of the United States. ments and agencies of the United States. ty to raise funds or obtain resources. ‘‘(xii) TERMINATION.—The Panel shall ter- ‘‘(xii) TERMINATION.—The Panel shall ter- ‘‘(2) CONSIDERATION OF APPLICATIONS BY minate on September 1, 2000. minate on September 1, 2001. INTERAGENCY PANELS.— ‘‘(B) SECOND PANEL.— ‘‘(3) MATCHING GRANTS.— ‘‘(A) FIRST PANEL.— ‘‘(i) ESTABLISHMENT.—Effective January 1, ‘‘(A) GRANT AWARDS.— ‘‘(i) ESTABLISHMENT.—There is established 2001, there is established a panel to be known a panel to be known as the ‘Fatherhood as the ‘Fatherhood Grants Recommendations ‘‘(i) IN GENERAL.—The Secretary shall Grants Recommendations Panel’ (in this Panel’ (in this subparagraph referred to as award matching grants, on a competitive subparagraph referred to as the ‘Panel’). the ‘Panel’). basis, among entities submitting applica- ‘‘(ii) MEMBERSHIP.— ‘‘(ii) MEMBERSHIP.— tions therefor which meet the requirements ‘‘(I) IN GENERAL.—The Panel shall be com- ‘‘(I) IN GENERAL.—The Panel shall be com- of paragraph (1), in amounts that take into posed of 10 members, as follows: posed of 10 members, as follows: account the written commitments referred ‘‘(aa) 2 members of the Panel shall be ap- ‘‘(aa) 2 members of the Panel shall be ap- to in paragraph (1)(D). pointed by the Secretary. pointed by the Secretary. ‘‘(ii) TIMING.— ‘‘(bb) 2 members of the Panel shall be ap- ‘‘(bb) 2 members of the Panel shall be ap- ‘‘(I) FIRST ROUND.—On October 1, 2000, the pointed by the Secretary of Labor. pointed by the Secretary of Labor. Secretary shall award not more than ‘‘(cc) 2 members of the Panel shall be ap- ‘‘(cc) 2 members of the Panel shall be ap- $70,000,000 in matching grants after consid- pointed by the Chairman of the Committee pointed by the Chairman of the Committee ering the recommendations submitted pursu- on Ways and Means of the House of Rep- on Ways and Means of the House of Rep- ant to paragraph (2)(A)(iii)(I). resentatives. resentatives. ‘‘(II) SECOND ROUND.—On October 1, 2001, ‘‘(dd) 1 member of the Panel shall be ap- ‘‘(dd) 1 member of the Panel shall be ap- the Secretary shall award not more than pointed by the ranking minority member of pointed by the ranking minority member of $70,000,000 in matching grants after consid- the Committee on Ways and Means of the the Committee on Ways and Means of the ering the recommendations submitted pursu- House of Representatives. House of Representatives. ant to paragraph (2)(B)(iii)(I). ‘‘(ee) 2 members of the Panel shall be ap- ‘‘(ee) 2 members of the Panel shall be ap- ‘‘(iii) NONDISCRIMINATION.—The provisions pointed by the Chairman of the Committee pointed by the Chairman of the Committee of this section shall be applied and adminis- on Finance of the Senate. on Finance of the Senate. tered so as to ensure that mothers, expect- ‘‘(ff) 1 member of the Panel shall be ap- ‘‘(ff) 1 member of the Panel shall be ap- ant mothers, and married mothers are eligi- pointed by the ranking minority member of pointed by the ranking minority member of ble for benefits and services under projects the Committee on Finance of the Senate. the Committee on Finance of the Senate. awarded grants under this section on the ‘‘(II) CONFLICTS OF INTEREST.—An indi- ‘‘(II) CONFLICTS OF INTEREST.—An indi- same basis as fathers, expectant fathers, and vidual shall not be eligible to serve on the vidual shall not be eligible to serve on the married fathers. Panel if such service would pose a conflict of Panel if such service would pose a conflict of ‘‘(B) PREFERENCES.—In determining which interest for the individual. interest for the individual. entities to which to award grants under this ‘‘(III) TIMING OF APPOINTMENTS.—The ap- ‘‘(III) TIMING OF APPOINTMENTS.—The ap- subsection, the Secretary shall give pref- pointment of members to the Panel shall be pointment of members to the Panel shall be erence to an entity— completed not later than March 1, 2000. completed not later than March 1, 2001. ‘‘(i) to the extent that the application sub- ‘‘(iii) DUTIES.— ‘‘(iii) DUTIES.— mitted by the entity describes actions that ‘‘(I) REVIEW AND MAKE RECOMMENDATIONS ‘‘(I) REVIEW AND MAKE RECOMMENDATIONS the entity will take that are designed to en- ON PROJECT APPLICATIONS.—The Panel shall ON PROJECT APPLICATIONS.—The Panel shall courage or facilitate the payment of child review all applications submitted pursuant review all applications submitted pursuant support, including but not limited to— to paragraph (1), and make recommendations to paragraph (1), and make recommendations ‘‘(I) obtaining agreements with the State to the Secretary regarding which applicants to the Secretary regarding which applicants in which the project will be carried out should be awarded grants under this sub- should be awarded grants under this sub- under which the State will exercise its au- section, with due regard for the provisions of section, with due regard for the provisions of thority under the last sentence of section paragraph (3), but shall not recommend that paragraph (3), but shall not recommend that 457(a)(2)(B)(iv) in every case in which such a project be awarded such a grant if the ap- a project be awarded such a grant if the ap- authority may be exercised; plication describing the project does not at- plication describing the project does not at- ‘‘(II) obtaining a written commitment by tempt to meet the requirement of paragraph tempt to meet the requirement of paragraph the agency responsible for administering the (1)(B). (1)(B). State plan approved under part D for the ‘‘(II) TIMING.—The Panel shall make such ‘‘(II) TIMING.—The Panel shall make such State in which the project is to be carried recommendations not later than September recommendations not later than September out that the State will voluntarily cancel 1, 2000. 1, 2001. child support arrearages owed to the State ‘‘(iv) TERM OF OFFICE.—Each member ap- ‘‘(iv) TERM OF OFFICE.—Each member ap- by the father as a result of the father pro- pointed to the Panel shall serve for the life pointed to the Panel shall serve for the life viding various supports to the family such as of the Panel. of the Panel. maintaining a regular child support payment ‘‘(v) PROHIBITION ON COMPENSATION.—Mem- ‘‘(v) PROHIBITION ON COMPENSATION.—Mem- schedule or living with his children; and bers of the Panel may not receive pay, allow- bers of the Panel may not receive pay, allow- ‘‘(III) obtaining a written commitment by ances, or benefits by reason of their service ances, or benefits by reason of their service the entity that the entity will help partici- on the Panel. on the Panel. pating fathers who cooperate with the agen- ‘‘(vi) TRAVEL EXPENSES.—Each member of ‘‘(vi) TRAVEL EXPENSES.—Each member of cy in improving their credit rating; the Panel shall receive travel expenses, in- the Panel shall receive travel expenses, in- ‘‘(ii) to the extent that the application including per diem in lieu of subsistence, in ac- cluding per diem in lieu of subsistence, in ac- cludes written agreements of cooperation

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with other private and governmental agen- ‘‘(I) IN GENERAL.—Complaints alleging vio- gram funded under this part solely by reason cies, including the State or local program lations of clause (i) in a State may be of receipt of funds paid under this section. funded under this part, the local Workforce resolved— ‘‘(9) FUNDING.— Investment Board, the State or local pro- ‘‘(aa) if the State has established a griev- ‘‘(A) IN GENERAL.— gram funded under part D, and the State or ance procedure under section 403(a)(5)(J)(iv), ‘‘(i) INTERAGENCY PANELS.—Of the amounts local program funded under part E, which pursuant to the grievance procedure; or made available pursuant to section should include a description of the services ‘‘(bb) otherwise, pursuant to the grievance 403(a)(1)(E) to carry out this section for fis- each such agency will provide to fathers par- procedure established by the State under cal years 2000 and 2001, a total of $150,000 ticipating in the project described in the ap- section 407(f)(3). shall be made available for the interagency plication; ‘‘(II) FORFEITURE OF GRANT IF GRIEVANCE panels established by paragraph (2) of this ‘‘(iii) to the extent that the application de- PROCEDURE NOT AVAILABLE.—If a complaint subsection. scribes a project that will enroll a high per- referred to in subclause (I) is made against ‘‘(ii) GRANTS.—Of the amounts made avail- an entity to which a grant has been made centage of project participants within 6 able pursuant to section 403(a)(1)(E) to carry under this section with respect to a project, months before or after the birth of the child; out this section, there shall be made avail- and the complaint cannot be brought to, or or able for grants under this subsection— cannot be resolved within 90 days after being ‘‘(I) $17,500,000 for fiscal year 2001; ‘‘(iv) to the extent that the application brought, by a grievance procedure referred to sets forth clear and practical methods by ‘‘(II) $35,000,000 for each of fiscal years 2002 in subclause (I), then the entity shall imme- through 2004; and which fathers will be recruited to participate diately return to the Secretary all funds pro- in the project. ‘‘(III) $17,500,000 for fiscal year 2005. vided to the entity under this section for the ‘‘(iii) EVALUATION.—Of the amounts made ‘‘(C) MINIMUM PERCENTAGE OF RECIPIENTS project, and the Secretary shall immediately available pursuant to section 403(a)(1)(E) to OF GRANT FUNDS TO BE NONGOVERNMENTAL (IN- rescind the grant. carry out this section for fiscal years 2000 CLUDING FAITH-BASED) ORGANIZATIONS.—Not ‘‘(C) RULE OF CONSTRUCTION.—This section through 2006, a total of $6,000,000 shall be less than 75 percent of the entities awarded shall not be construed to require the partici- made available for the evaluation required grants under this subsection in each fiscal pation of a father in a project funded under by paragraph (6) of this subsection. year (other than entities awarded such this section to be discontinued by the project ‘‘(B) AVAILABILITY.— grants pursuant to the preferences required on the basis of changed economic cir- ‘‘(i) GRANT FUNDS.—The amounts made by subparagraph (B)) shall be awarded to— cumstances of the father. available pursuant to subparagraph (A)(ii) ‘‘(i) nongovernmental (including faith- ‘‘(D) RULE OF CONSTRUCTION ON MARRIAGE.— shall remain available until the end of fiscal based) organizations; or This section shall not be construed to au- year 2005. ‘‘(ii) governmental organizations that pass thorize the Secretary to define marriage for ‘‘(ii) EVALUATION FUNDS.—The amounts through to organizations referred to in purposes of this section. made available pursuant to subparagraph clause (i) at least 50 percent of the amount of ‘‘(E) PENALTY FOR MISUSE OF GRANT (A)(iii) shall remain available until the end the grant. FUNDS.—If the Secretary determines that an of fiscal year 2007.’’. ‘‘(D) DIVERSITY OF PROJECTS.— entity to which a grant is made under this (b) FUNDING.—Section 403(a)(1)(E) of such ‘‘(i) IN GENERAL.—In determining which en- subsection has used any amount of the grant Act (42 U.S.C. 603(a)(1)(E)) is amended by in- tities to which to award grants under this in violation of subparagraph (A), the Sec- serting ‘‘, and for fiscal years 2000 through subsection, the Secretary shall attempt to retary shall require the entity to remit to 2006, such sums as are necessary to carry out achieve a balance among entities of differing the Secretary an amount equal to the section 403A’’ before the period. sizes, entities in differing geographic areas, amount so used, plus all remaining grant (c) AUTHORITY TO STATES TO PASS THROUGH entities in urban versus rural areas, and en- funds, and the entity shall thereafter be in- CHILD SUPPORT ARREARAGES COLLECTED tities employing differing methods of achiev- eligible for any grant under this subsection. THROUGH TAX REFUND INTERCEPT TO FAMI- ing the purposes of this section. ‘‘(F) REMITTANCE OF UNUSED GRANT LIES WHO HAVE CEASED TO RECEIVE CASH AS- ‘‘(ii) REPORT TO THE CONGRESS.—Within 90 FUNDS.—Each entity to which a grant is SISTANCE; FEDERAL REIMBURSEMENT OF days after each award of grants under sub- awarded under this subsection shall remit to STATE SHARE OF SUCH PASSED THROUGH AR- clause (I) or (II) of subparagraph (A)(ii), the the Secretary all funds paid under the grant REARAGES.—Section 457(a)(2)(B)(iv) of such Secretary shall submit to the Committee on that remain at the end of the 5th fiscal year Act (42 U.S.C. 657(a)(2)(B)(iv)) is amended— Ways and Means of the House of Representa- ending after the initial grant award. (1) by inserting ‘‘(except the last sentence tives and the Committee on Finance of the ‘‘(5) AUTHORITY OF AGENCIES TO EXCHANGE of this clause)’’ after ‘‘this section’’; and Senate a brief report on the diversity of INFORMATION.—Each agency administering a (2) by adding at the end the following: projectes selected to receive funds under the program funded under this part or a State ‘‘Notwithstanding the preceding sentences of plan approved under part D may share the grant program. The report shall include a this clause, if the amount is collected on be- name, address, telephone number, and identi- comparison of funding for projects located in half of a family that includes a child of a fying case number information in the State urban areas, projects located in suburban participant in a project funded under section program funded under this part, of fathers areas, and projects located in rural areas. 403A and that has ceased to receive cash pay- for purposes of assisting in determining the ‘‘(E) PAYMENT OF GRANT IN 4 EQUAL ANNUAL ments under a State program funded under eligibility of fathers to participate in INSTALLMENTS.—During the fiscal year in section 403, then the State may distribute projects receiving grants under this section, the amount collected pursuant to section 464 which a grant is awarded under this sub- and in contacting fathers potentially eligible section and each of the succeeding 3 fiscal to the family, and the aggregate of the to participate in the projects, subject to all amounts otherwise required by this section years, the Secretary shall provide to the en- applicable privacy laws. 1 to be paid by the State to the Federal gov- tity awarded the grant an amount equal to ⁄4 ‘‘(6) EVALUATION.—The Secretary, in con- of the amount of the grant. ernment shall be reduced by an amount sultation with the Secretary of Labor, shall, equal to the State share of the amount col- ‘‘(4) USE OF FUNDS.— directly or by grant, contract, or inter- lected pursuant to section 464 that would ‘‘(A) IN GENERAL.—Each entity to which a agency agreement, conduct an evaluation of otherwise be retained as reimbursement for grant is made under this subsection shall use projects funded under this section (other assistance paid to the family.’’. grant funds provided under this subsection in than under subsection (c)(1)). The evaluation (d) APPLICABILITY OF CHARITABLE CHOICE accordance with the application requesting shall assess, among other outcomes selected PROVISIONS OF WELFARE REFORM.—Section the grant, the requirements of this sub- by the Secretary, effects of the projects on 104 of the Personal Responsibility and Work section, and the regulations prescribed under marriage, parenting, employment, earnings, Opportunity Reconciliation Act of 1996 (42 this subsection, and may use the grant funds and payment of child support. In selecting U.S.C. 604a) is amended by adding at the end to support community-wide initiatives to ad- projects for the evaluation, the Secretary the following: dress the purposes of this section. should include projects that, in the Sec- ‘‘(l) Notwithstanding the preceding provi- ‘‘(B) NONDISPLACEMENT.— retary’s judgment, are most likely to impact sions of this section, this section shall apply ‘‘(i) IN GENERAL.—An adult in a work activ- the matters described in the purposes of this to any entity to which funds have been pro- ity described in section 407(d) which is fund- section. In conducting the evaluation, ran- vided under section 403A of the Social Secu- ed, in whole or in part, by funds provided dom assignment should be used wherever rity Act in the same manner in which this under this section shall not be employed or possible. section applies to States, and, for purposes of assigned— ‘‘(7) REGULATIONS.—The Secretary shall this section, any project for which such ‘‘(I) when any other individual is on layoff prescribe such regulations as may be nec- funds are so provided shall be considered a from the same or any substantially equiva- essary to carry out this subsection. program described in subsection (a)(2).’’. lent job; or ‘‘(8) LIMITATION ON APPLICABILITY OF OTHER TITLE II—FATHERHOOD PRO- ‘‘(II) if the employer has terminated the PROVISIONS OF THIS PART.—Sections 404 JECTS OF NATIONAL SIGNIFICANCE employment of any regular employee or oth- through 410 shall not apply to this section or SEC. 201. FATHERHOOD PROJECTS OF NATIONAL erwise caused an involuntary reduction of its to amounts paid under this section, and shall SIGNIFICANCE. workforce in order to fill the vacancy so cre- not be applied to an entity solely by reason Section 403A of the Social Security Act, as ated with such an adult. of receipt of funds pursuant to this section. added by title I of this Act, is amended by ‘‘(ii) GRIEVANCE PROCEDURE.— A project shall not be considered a State pro- adding at the end the following:

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‘‘(c) FATHERHOOD PROJECTS OF NATIONAL married couples to deliver program services ‘‘(dd) The minor child is eligible for, or is SIGNIFICANCE.— in the inner city. receiving, assistance under the Food Stamp ‘‘(1) NATIONAL CLEARINGHOUSE.—The Sec- ‘‘(3) PAYMENT OF GRANTS IN 4 EQUAL ANNUAL Act of 1977, benefits under the supplemental retary shall award a $5,000,000 grant to a na- INSTALLMENTS.—During each of fiscal years security income program under title XVI of tionally recognized, nonprofit fatherhood 2002 through 2005, the Secretary shall provide this Act, medical assistance under title XIX promotion organization with at least 4 years to each entity awarded a grant under this of this Act, or child health assistance under of experience in designing and disseminating subsection an amount equal to 1⁄4 of the title XXI of this Act. a national public education campaign, in- amount of the grant. ‘‘(III) In the case of a noncustodial parent cluding the production and successful place- ‘‘(4) FUNDING.— who becomes enrolled in the project on or ment of television, radio, and print public ‘‘(A) IN GENERAL.—Of the amounts made after the date of the enactment of this service announcements which promote the available pursuant to section 403(a)(1)(E) to clause, the noncustodial parent is in compli- importance of responsible fatherhood, and carry out this section, $3,750,000 shall be ance with the terms of an oral or written with at least 4 years experience providing made available for grants under this sub- personal responsibility contract entered into consultation and training to community- section for each of fiscal years 2002 through among the noncustodial parent, the entity, based organizations interested in imple- 2005. and (unless the entity demonstrates to the menting fatherhood outreach, support, or ‘‘(B) AVAILABILITY.—The amounts made Secretary that the entity is not capable of skill development programs with an empha- available pursuant to subparagraph (A) shall coordinating with such agency) the agency sis on promoting married fatherhood as the remain available until the end of fiscal year responsible for administering the State plan ideal, to— 2005.’’. under part D, which was developed taking ‘‘(A) develop, promote, and distribute to TITLE III—WELFARE-TO-WORK PROGRAM into account the employment and child sup- interested States, local governments, public ELIGIBILITY port status of the noncustodial parent, which agencies, and private nonprofit organiza- SEC. 301. FLEXIBILITY IN ELIGIBILITY FOR PAR- was entered into not later than 30 (or, at the tions, including charitable and religious or- TICIPATION IN WELFARE-TO-WORK option of the entity, not later than 90) days ganizations, a media campaign that encour- PROGRAM. after the noncustodial parent was enrolled in ages the appropriate involvement of both (a) IN GENERAL.—Section 403(a)(5)(C)(ii) of the project, and which, at a minimum, in- parents in the life of any child of the par- the Social Security Act (42 U.S.C. cludes the following: ents, and encourages such organizations to 603(a)(5)(C)(ii)) is amended to read as follows: ‘‘(aa) A commitment by the noncustodial develope or sponsor programs that specifi- ‘‘(ii) GENERAL ELIGIBILITY.—An entity that parent to cooperate, at the earliest oppor- cally address the issue of responsible father- operates a project with funds provided under tunity, in the establishment of the paternity hood and the advantages conferred on chil- this paragraph may expend funds provided to of the minor child, through voluntary ac- dren by marriage; the project for the benefit of recipients of as- knowledgement or other procedures, and in ‘‘(B) develop a national clearinghouse to sistance under the program funded under the establishment of a child support order. assist States, communities, and private enti- this part of the State in which the entity is ‘‘(bb) A commitment by the noncustodial ties in efforts to promote and support mar- located who— parent to cooperate in the payment of child riage and responsible fatherhood by col- ‘‘(I) has received assistance under the support for the minor child, which may in- lecting, evaluating, and making available State program funded under this part clude a modification of an existing support (through the Internet and by other means) to (whether in effect before or after the amend- order to take into account the ability of the all interested parties, information regarding ments made by section 103 of the Personal noncustodial parent to pay such support and media campaigns and fatherhood programs; Responsibility and Work Opportunity Rec- the participation of such parent in the ‘‘(C) develop and distribute materials that onciliation Act of 1996 first apply to the project. are for use by entities described in subpara- State) for at least 30 months (whether or not ‘‘(cc) A commitment by the noncustodial graph (A) or (B) and that help young adults consecutive); or parent to participate in employment or re- manage their money, develop the knowledge ‘‘(II) within 12 months, will become ineli- lated activities that will enable the non- and skills needed to promote successful mar- gible for assistance under the State program custodial parent to make regular child sup- riages, plan for future expenditures and in- funded under this part by reason of a port payments, and if the noncustodial par- vestments, and plan for retirement; durational limit on such assistance, without ent has not attained 20 years of age, such re- ‘‘(D) develop and distribute materials that regard to any exemption provided pursuant lated activities may include completion of are for use by entities described in subpara- to section 408(a)(7)(C) that may apply to the high school, a general equivalency degree, or graphs (A) and (B) and that list all the individual.’’. other education directly related to employ- sources of public support for education and (b) NONCUSTODIAL PARENTS.— ment. training that are available to young adults, (1) IN GENERAL.—Section 403(a)(5)(C) of ‘‘(dd) A description of the services to be including government spending programs as such Act (42 U.S.C. 603(a)(5)(C)) is amended— well as benefits under Federal and State tax (A) by redesignating clauses (iii) through provided under this paragraph, and a com- laws. (viii) as clauses (iv) through (ix), respec- mitment by the noncustodial parent to participate in such services, that are designed ‘‘(2) MULTICITY FATHERHOOD PROJECTS.— tively; and to assist the noncustodial parent obtain and ‘‘(A) IN GENERAL.—The Secretary shall (B) by inserting after clause (ii) the fol- award a $5,000,000 grant to each of 2 nation- lowing: retain employment, increase earnings, and ally recognized nonprofit fatherhood pro- ‘‘(iii) NONCUSTODIAL PARENTS.—An entity enhance the financial and emotional con- motion organizations which meet the re- that operates a project with funds provided tributions to the well-being of the minor quirements of subparagraph (B), at least 1 of under this paragraph may use the funds to child. which organizations meets the requirement provide services in a form described in clause In order to protect custodial parents and of subparagraph (C). (i) to noncustodial parents with respect to children who may be at risk of domestic vio- ‘‘(B) REQUIREMENTS.—The requirements of whom the requirements of the following sub- lence, the preceding provisions of this sub- this subparagraph are the following: clauses are met: clause shall not be construed to affect any ‘‘(i) The organization must have several ‘‘(I) The noncustodial parent is unem- other provision of law requiring a custodial years of experience in designing and con- ployed, underemployed, or having difficulty parent to cooperate in establishing the pa- ducting programs that meet the purposes de- in paying child support obligations. ternity of a child or establishing or enforcing scribed in paragraph (1). ‘‘(II) At least 1 of the following applies to a support order with respect to a child, or ‘‘(ii) The organization must have experi- a minor child of the noncustodial parent entitling a custodial parent to refuse, for ence in simultaneously conducting such pro- (with preference in the determination of the good cause, to provide such cooperation as a grams in more than 1 major metropolitan noncustodial parents to be provided services condition of assistance or benefit under any area and in coordinating such programs with under this paragraph to be provided by the program, shall not be construed to require local government agencies and private, non- entity to those noncustodial parents with such cooperation by the custodial parent as profit agencies, including State or local minor children who meet, or who have custo- a condition of participation of either parent agencies responsible for conducting the pro- dial parents who meet, the requirements of in the program authorized under this para- gram under part D and Workfore Investment item (aa)): graph, and shall not be construed to require Boards. ‘‘(aa) The minor child or the custodial par- a custodial parent to cooperate with or par- ‘‘(iii) The organization must submit to the ent of the minor child meets the require- ticipate in any activity under this clause. Secretary an application that meets all the ments of subclause (I) or (II) of clause (ii). The entity operating a project under this conditions applicable to the organization ‘‘(bb) The minor child is eligible for, or is clause with funds provided under this para- under this section and that provides for receiving, benefits under the program funded graph shall consult with domestic violence projects to be conducted in 3 major metro- under this part. prevention and intervention organizations in politan areas. ‘‘(cc) The minor child received benefits the development of the project.’’. ‘‘(C) USE OF MARRIED COUPLES TO DELIVER under the program funded under this part in (2) CONFORMING AMENDMENT.—Section SERVICES IN THE INNER CITY.—The require- the 12-month period preceding the date of 412(a)(3)(C)(ii) of such Act (42 U.S.C. ment of this subparagraph is that the organi- the determination but no longer receives 612(a)(3)(C)(ii)) is amended by striking ‘‘(vii)’’ zation has extensive experience in using such benefits. and inserting ‘‘(viii)’’.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00078 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.051 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11561

(c) RECIPIENTS WITH CHARACTERISTICS OF SEC. 305. USE OF STATE INFORMATION TO AID of this subsection for the fiscal year by the LONG-TERM DEPENDENCY; CHILDREN AGING ADMINISTRATION OF WELFARE-TO- penalty amount. WORK GRANT FUNDS. OUT OF FOSTER CARE.— ‘‘(ii) All failures of a State during a fiscal (a) AUTHORITY OF STATE AGENCIES TO DIS- (1) IN GENERAL.—Section 403(a)(5)(C)(iv) of year to comply with any of the requirements CLOSE TO PRIVATE INDUSTRY COUNCILS THE such Act (42 U.S.C. 603(a)(5)(C)(iv)), as so re- of section 454B shall be considered a single NAMES, ADDRESSESS, AND TELEPHONE NUM- designated by subsection (b)(1)(A) of this sec- failure of the State to comply with subpara- BERS OF POTENTIAL WELFARE-TO-WORK PRO- tion, is amended— graphs (A) and (B)(i) of section 454(27) during GRAM PARTICIPANTS.— (A) by striking ‘‘or’’ at the end of sub- the fiscal year for purposes of this para- (1) STATE IV-D AGENCIES.—Section 454A(f) of clause (I); and graph. (B) by striking subclause (II) and inserting the Social Security Act (42 U.S.C. 654a(f)) is the following: amended by adding at the end the following: ‘‘(B) In this paragraph: ‘‘(II) to children— ‘‘(5) PRIVATE INDUSTRY COUNCILS RECEIVING ‘‘(i) The term ‘penalty amount’ means, ‘‘(aa) who have attained 18 years of age but WELFARE-TO-WORK GRANTS.—Disclosing to a with respect to a failure of a State to comply not 25 years of age; and private industry council (as defined in sec- with subparagraphs (A) and (B)(i) of section ‘‘(bb) who, before attaining 18 years of age, tion 403(a)(5)(D)(ii)) to which funds are pro- 454(27)— were recipients of foster care maintenance vided under section 403(a)(5) the names, ad- ‘‘(I) 4 percent of the penalty base, in the payments (as defined in section 475(4)) under dresses, telephone numbers, and identifying case of the 1st fiscal year in which such a part E or were in foster care under the re- case number information in the State pro- failure by the State occurs (regardless of sponsibility of a State; gram funded under part A, of noncustodial whether a penalty is imposed in that fiscal ‘‘(III) to recipients of assistance under the parents residing in the service delivery area year under this paragraph with respect to State program funded under this part, deter- of the private industry council, for the pur- the failure), except as provided in subpara- mined to have significant barriers to self- pose of identifying and contacting noncusto- graph (C)(ii) of this paragraph; sufficiency, pursuant to criteria established dial parents regarding participation in the ‘‘(II) 8 percent of the penalty base, in the by the local private industry council; or program under section 403(a)(5).’’. case of the 2nd such fiscal year; ‘‘(IV) to custodial parents with incomes (2) STATE TANF AGENCIES.—Section 403(a)(5) ‘‘(III) 16 percent of the penalty base, in the below 100 percent of the poverty line (as de- of such Act (42 U.S.C. 603(a)(5)) is amended case of the 3rd such fiscal year; fined in section 673(2) of the Omnibus Budget by adding at the end the following: ‘‘(IV) 25 percent of the penalty base, in the Reconciliation Act of 1981, including any re- ‘‘(K) INFORMATION DISCLOSURE.—If a State case of the 4th such fiscal year; or vision required by such section, applicable to to which a grant is made under section 403 ‘‘(V) 30 percent of the penalty base, in the a family of the size involved).’’. establishes safeguards against the use or dis- case of the 5th or any subsequent such fiscal (2) CONFORMING AMENDMENTS.—Section closure of information about applicants or year. 403(a)(5)(C)(iv) of such Act (42 U.S.C. recipients of assistance under the State pro- ‘‘(ii) The term ‘penalty base’ means, with 603(a)(5)(C)(iv)), as so redesignated by sub- gram funded under this part, the safeguards respect to a failure of a State to comply with section (b)(1)(A) of this section, is amended— shall not prevent the State agency admin- subparagraphs (A) and (B)(i) of section 454(27) (A) in the heading by inserting ‘‘HARD TO istering the program from furnishing to a during a fiscal year, the amount otherwise EMPLOY’’ before ‘‘INDIVIDUALS’’; and private industry council the names, address- payable to the State under paragraph (1)(A) (B) in the last sentence by striking ‘‘clause es, telephone numbers, and identifying case of this subsection for the preceding fiscal (ii)’’ and inserting ‘‘clauses (ii) and (iii) and, number information in the State program year. as appropriate, clause (v)’’. funded under this part, of noncustodial par- ‘‘(C)(i) The Secretary shall waive all pen- (d) CONFORMING AMENDMENT.—Section ents residing in the service delivery area of alties imposed against a State under this 404(k)(1)(C)(iii) of such Act (42 U.S.C. the private industry council, for the purpose paragraph for any failure of the State to 604(k)(1)(C)(iii)) is amended by striking of identifying and contacting noncustodial ‘‘item (aa) or (bb) of section comply with subparagraphs (A) and (B)(i) of parents regarding participation in the pro- section 454(27) if the Secretary determines 403(a)(5)(C)(ii)(II)’’ and inserting ‘‘section gram under this paragraph.’’. 403(a)(5)(C)(iii)’’. that, before April 1, 2000, the State has (b) SAFEGUARDING OF INFORMATION DIS- achieved such compliance. SEC. 302. LIMITED VOCATIONAL EDUCATIONAL CLOSED TO PRIVATE INDUSTRY COUNCILS.— AND JOB TRAINING INCLUDED AS ‘‘(ii) If a State with respect to which a re- Section 403(a)(5)(A)(ii)(I) of such Act (42 ALLOWABLE ACTIVITIES. duction is required to be made under this U.S.C. 603(a)(5)(A)(ii)(I)) is amended— Section 403(a)(5)(C)(i) of the Social Secu- paragraph with respect to a failure to com- (1) by striking ‘‘and’’ at the end of item rity Act (42 U.S.C. 603(a)(5)(C)(i)) is amended ply with subparagraphs (A) and (B)(i) of sec- (dd); by inserting after subclause (VI) the fol- tion 454(27) achieves such compliance on or (2) by striking the period at the end of lowing: after April 1, 2000, and on or before Sep- item (ee) and inserting ‘‘; and’’; and ‘‘(VII) Not more than 6 months of voca- tember 30, 2000, then the penalty amount ap- (3) by adding at the end the following: tional educational or job training.’’. plicable to the State shall be 1 percent of the ‘‘(ff) describes how the State will ensure SEC. 303. CERTAIN GRANTEES AUTHORIZED TO penalty base with respect to the failure in- that a private industry council to which in- PROVIDE EMPLOYMENT SERVICES volved. DIRECTLY. formation is disclosed pursuant to section Section 403(a)(5)(C)(i)(IV) of the Social Se- 403(a)(5)(K) or 454A(f)(5) has procedures for ‘‘(D) The Secretary may not impose a pen- curity Act (42 U.S.C. 603(a)(5)(C)(i)(IV)) is safeguarding the information and for ensur- alty under this paragraph against a State for amended by inserting ‘‘, or if the entity is ing that the information is used solely for a fiscal year for which the amount otherwise not a private industry council or workforce the purpose described in that section.’’. payable to the State under paragraph (1)(A) of this subsection is reduced under paragraph investment board, the direct provision of TITLE IV—ALTERNATIVE PENALTY PRO- (4) of this subsection for failure to comply such services’’ before the period. CEDURE RELATING TO STATE DIS- with section 454(24)(A).’’. SEC. 304. SIMPLIFICATION AND COORDINATION BURSEMENT UNITS OF REPORTING REQUIREMENTS. (b) INAPPLICABILITY OF PENALTY UNDER (a) ELIMINATION OF CURRENT REQUIRE- SEC. 401. ALTERNATIVE PENALTY PROCEDURE RELATING TO STATE DISBURSE- TANF PROGRAM.—Section 409(a)(8)(A)(i)(III) MENTS.—Section 411(a)(1)(A) of the Social Se- MENT UNITS. of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is curity Act (42 U.S.C. 611(a)(1)(A)) is amended by striking ‘‘section 454(24)’’ and in- amended— (a) IN GENERAL.—Section 455(a) of the So- cial Security Act (42 U.S.C. 655(a)) is amend- serting ‘‘paragraph (24), or subparagraph (A) (1) in the matter preceding clause (i), by or (B)(i) of paragraph (27), of section 454’’. inserting ‘‘(except for information relating ed by adding at the end the following: to activities carried out under section ‘‘(5)(A)(i) If— (c) EFFECTIVE DATE.—The amendments 403(a)(5))’’ after ‘‘part’’; and ‘‘(I) the Secretary determines that a State made by this section shall take effect on Oc- (2) by striking clause (xviii). plan under section 454 would (in the absence tober 1, 1999. of this paragraph) be disapproved for the fail- (b) ESTABLISHMENT OF REPORTING REQUIRE- TITLE V—FINANCING PROVISIONS MENT.—Section 403(a)(5)(C) of the Social Se- ure of the State to comply with subpara- curity Act (42 U.S.C. 603(a)(5)(C)), as amend- graphs (A) and (B)(i) of section 454(27), and SEC. 501. USE OF NEW HIRE INFORMATION TO AS- ed by section 301(b)(1) of this Act, is amended that the State has made and is continuing to SIST IN COLLECTION OF DE- by adding at the end the following: make a good faith effort to so comply; and FAULTED STUDENT LOANS AND GRANTS. ‘‘(x) REPORTING REQUIREMENTS.—The Sec- ‘‘(II) the State has submitted to the Sec- retary of Labor, in consultation with the retary, not later than April 1, 2000, a correc- (a) IN GENERAL.—Section 453(j) of the So- Secretary of Health and Human Services, tive compliance plan that describes how, by cial Security Act (42 U.S.C. 653(j)) is amend- States, and organizations that represent when, and at what cost the State will ed by adding at the end the following: State or local governments, shall establish achieve such compliance, which has been ap- ‘‘(6) INFORMATION COMPARISONS AND DISCLO- requirements for the collection and mainte- proved by the Secretary, SURE FOR ENFORCEMENT OF OBLIGATIONS ON nance of financial and participant informa- then the Secretary shall not disapprove the HIGHER EDUCATION ACT LOANS AND GRANTS.— tion and the reporting of such information State plan under section 454, and the Sec- ‘‘(A) FURNISHING OF INFORMATION BY THE by entities carrying out activities under this retary shall reduce the amount otherwise SECRETARY OF EDUCATION.—The Secretary of paragraph.’’. payable to the State under paragraph (1)(A) Education shall furnish to the Secretary, on

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00079 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.051 pfrm02 PsN: H04PT1 H11562 CONGRESSIONAL RECORD — HOUSE November 4, 1999 Education shall furnish to the Secretary, on the Secretary in furnishing the information Secretary shall include in the report rec- a quarterly basis or at such less frequent in- requested under this subparagraph.’’. ommendations as to whether additional pro- tervals as may be determined by the Sec- (b) PENALTIES FOR MISUSE OF INFORMA- cedures should be established at the State or retary of Education, information in the cus- TION.—Section 402(a) of the Child Support Federal level to expedite the payment of un- tody of the Secretary of Education for com- Performance and Incentive Act of 1998 (112 distributed child support. Stat. 669) is amended in the matter added by parison with information in the National Di- SEC. 603. SENSE OF THE CONGRESS. rectory of New Hires, in order to obtain the paragraph (2) by inserting ‘‘or any other per- information in such directory with respect son’’ after ‘‘officer or employee of the United It is the sense of the Congress that the to individuals who— States’’. States may use funds provided under the pro- (c) EFFECTIVE DATE.—The amendments ‘‘(i) are borrowers of loans made under gram of block grants for temporary assist- made by this section shall become effective ance for needy families under part A of title title IV of the Higher Education Act of 1965 October 1, 1999. IV of the Social Security Act to promote fa- that are in default; or SEC. 502. ELIMINATION OF SET-ASIDE OF POR- therhood activities of the type described in ‘‘(ii) owe an obligation to refund an over- TION OF WELFARE-TO-WORK FUNDS section 403A of such Act, as added by this payment of a grant awarded under such title. FOR SUCCESSFUL PERFORMANCE Act. ‘‘(B) REQUIREMENT TO SEEK MINIMUM INFOR- BONUS. MATION NECESSARY.—The Secretary of Edu- (a) IN GENERAL.—Section 403(a)(5) of the SEC. 604. ADDITIONAL FUNDING FOR WELFARE cation shall seek information pursuant to Social Security Act (42 U.S.C. 603(a)(5)) is EVALUATION STUDY. this section only to the extent essential to amended by striking subparagraph (E) and Section 414(b) of the Social Security Act improving collection of the debt described in redesignating subparagraphs (F) through (K) (42 U.S.C. 614(b)) is amended by striking ‘‘ap- subparagraph (A). (as added by section 305(a)(2) of this Act) as propriated $10,000,000’’ and all that follows subparagraphs (E) through (J), respectively. ‘‘(C) DUTIES OF THE SECRETARY.— and inserting ‘‘appropriated— (b) CONFORMING AMENDMENTS.— ‘‘(i) INFORMATION COMPARISON; DISCLOSURE ‘‘(1) $10,000,000 for each of fiscal years 1996 (1) Section 403(a)(5)(A)(i) of such Act (42 through 1999; TO THE SECRETARY OF EDUCATION.—The Sec- U.S.C. 603(a)(5)(A)(i)) is amended by striking retary, in cooperation with the Secretary of ‘‘(2) $12,300,000 for fiscal year 2000; ‘‘subparagraph (I)’’ and inserting ‘‘subpara- ‘‘(3) $17,500,000 for fiscal year 2001; Education, shall compare information in the graph (H)’’. National Directory of New Hires with infor- ‘‘(4) $15,500,000 for fiscal year 2002; and (2) Subclause (I) of each of subparagraphs ‘‘(5) $4,000,000 for fiscal year 2003.’’. mation in the custody of the Secretary of (A)(iv) and (B)(v) of section 403(a)(5) of such Education, and disclose information in that Act (42 U.S.C. 603(a)(5)(A)(iv)(I) and (B)(v)(I)) SEC. 605. TRAINING IN CHILD ABUSE AND NE- Directory to the Secretary of Education, in is amended— GLECT PROCEEDINGS. accordance with this paragraph, for the pur- (A) in item (aa)— (a) IN GENERAL—Section 474(a)(3) of the So- poses specified in this paragraph. (i) by striking ‘‘(I)’’ and inserting ‘‘(H)’’; cial Security Act (42 U.S.C. 674(a)(3)) is ‘‘(ii) CONDITION ON DISCLOSURE.—The Sec- and amended— retary shall make disclosures in accordance (ii) by striking ‘‘(G), and (H)’’ and inserting (1) by redesignating subparagraphs (C), (D), with clause (i) only to the extent that the ‘‘and (G)’’; and and (E) as subparagraphs (D), (E), and (F), re- Secretary determines that such disclosures (B) in item (bb), by striking ‘‘(F)’’ and in- spectively; and do not interfere with the effective operation serting ‘‘(E)’’. (2) by inserting after subparagraph (B) the of the program under this part. Support col- (3) Section 403(a)(5)(B)(v) of such Act (42 following: lection under section 466(b) shall be given U.S.C. 603(a)(5)(B)) is amended in the matter ‘‘(C) 75 percent of so much of such expendi- priority over collection of any defaulted stu- preceding subclause (I) by striking ‘‘(I)’’ and tures as are for the short-term training (in- dent loan or grant overpayment against the inserting ‘‘(H)’’. cluding cross-training with personnel em- same income. (4) Subparagraphs (E) and (F) of section ployed by, or under contract with, the State ‘‘(D) USE OF INFORMATION BY THE SEC- 403(a)(5) of such Act (42 U.S.C. 603(a)(5)(F) or local agency administering the plan in the RETARY OF EDUCATION.—The Secretary of and (G)), as so redesignated by subsection (a) political subdivision, training on topics rel- Education may use information resulting of this section, are each amended by striking evant to the legal representation of clients from a data match pursuant to this para- ‘‘(I)’’ and inserting ‘‘(H)’’. in proceedings conducted by or under the su- graph only— (5) Section 412(a)(3)(A) of such Act (42 pervision of an abuse and neglect court, and ‘‘(i) for the purpose of collection of the U.S.C. 612(a)(3)(A)) is amended by striking training on related topics such as child de- debt described in subparagraph (A) owed by ‘‘403(a)(5)(I)’’ and inserting ‘‘403(a)(5)(H)’’. velopment and the importance of achieving an individual whose annualized wage level (c) FUNDING AMENDMENT.—Section safety, permanency, and well-being for a (determined by taking into consideration in- 403(a)(5)(H)(i) of such Act (42 U.S.C. child) of judges, judicial personnel, law en- formation from the National Directory of 603(a)(5)(H)(i)), as so redesignated by sub- forcement personnel, agency attorneys, at- New Hires) exceeds $16,000; and section (a) of this section, is amended by torneys representing a parent in proceedings ‘‘(ii) after removal of personal identifiers, striking ‘‘$1,500,000,000’’ and all that follows conducted by, or under the supervision of, an to conduct analyses of student loan defaults. and inserting ‘‘for grants under this abuse and neglect court, attorneys rep- ‘‘(E) DISCLOSURE OF INFORMATION BY THE paragraph— resenting a child in such proceedings, guard- SECRETARY OF EDUCATION.— ‘‘(I) $1,500,000,000 for fiscal year 1998; and ians ad litem, and volunteers who partici- ‘‘(i) DISCLOSURES PERMITTED.—The Sec- ‘‘(II) $1,400,000,000 for fiscal year 1999.’’. pate in court-appointed special advocate pro- retary of Education may disclose informa- TITLE VI—MISCELLANEOUS grams, to the extent the training is related tion resulting from a data match pursuant to SEC. 601. CHANGE DATES FOR EVALUATION. to the court’s role in expediting adoption this paragraph only to— (a) IN GENERAL.—Section 403(a)(5)(G)(iii) of procedures, implementing reasonable efforts, ‘‘(I) a guaranty agency holding a loan the Social Security Act (42 U.S.C. and providing for timely permanency plan- made under part B of title IV of the Higher 603(a)(5)(G)(iii)), as so redesignated by sec- ning and case reviews, except that any such Education Act of 1965 on which the indi- tion 502(a) of this Act, is amended by strik- training shall be offered by the State or local vidual is obligated; ing ‘‘2001’’ and inserting ‘‘2005’’. agency administering the plan, either di- ‘‘(II) a contractor or agent of the guaranty (b) INTERIM REPORT REQUIRED.—Section rectly or through contract, in collaboration agency described in subclause (I); 403(a)(5)(G) of such Act (42 U.S.C. with the appropriate judicial governing body ‘‘(III) a contractor or agent of the Sec- 603(a)(5)(G)), as so redesignated, is amended operating in the State,’’. retary; and by adding at the end the following: ‘‘(iv) INTERIM REPORT.—Not later than Jan- (b) DEFINITIONS.—Section 475 of such Act ‘‘(IV) the Attorney General. uary 1, 2002, the Secretary shall submit to (42 U.S.C. 675) is amended by adding at the ‘‘(ii) PURPOSE OF DISCLOSURE.—The Sec- the Congress a interim report on the evalua- end the following: retary of Education may make a disclosure tions referred to in clause (i).’’. ‘‘(8) The term ‘abuse and neglect courts’ under clause (i) only for the purpose of col- SEC. 602. REPORT ON UNDISTRIBUTED CHILD means the State and local courts that carry lection of the debts owed on defaulted stu- SUPPORT PAYMENTS. out State or local laws requiring proceedings dent loans, or overpayments of grants, made Not later than 6 months after the date of (conducted by or under the supervision of the under title IV of the Higher Education Act of the enactment of this Act, the Secretary of courts)— 1965. Health and Human Services shall submit to ‘‘(A) that implement part B or this part, ‘‘(iii) RESTRICTION ON REDISCLOSURE.—An the Committee on Ways and Means of the including preliminary disposition of such entity to which information is disclosed House of Representatives and the Committee proceedings; under clause (i) may use or disclose such in- on Finance of the Senate a report on the pro- ‘‘(B) that determine whether a child was formation only as needed for the purpose of cedures that the States use generally to lo- abused or neglected; collecting on defaulted student loans, or cate custodial parents for whom child sup- ‘‘(C) that determine the advisability or ap- overpayments of grants, made under title IV port has been collected but not yet distrib- propriateness of placement in a family foster of the Higher Education Act of 1965. uted due to a change in address. The report home, group home, or a special residential ‘‘(F) REIMBURSEMENT OF HHS COSTS.—The shall include an estimate of the total care facility; or Secretary of Education shall reimburse the amount of such undistributed child support ‘‘(D) that determine any other legal dis- Secretary, in accordance with subsection and the average length of time it takes for position of a child in the abuse and neglect (k)(3), for the additional costs incurred by such child support to be distributed. The court system.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00080 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.051 pfrm02 PsN: H04PT1 November 4, 1999 CONGRESSIONAL RECORD — HOUSE H11563

‘‘(9) The term ‘agency attorney’ means an ‘‘(A) IN GENERAL.—If a State agency re- 1225(d)) is amended by adding at the end the attorney or other individual, including any sponsible for the administration of an unem- following: government attorney, district attorney, at- ployment compensation program under Fed- ‘‘(5) AUTHORITY TO SERVE PROCESS IN CHILD torney general, State attorney, county at- eral or State law transmits to the Secretary SUPPORT CASES.— torney, city solicitor or attorney, corpora- the name and social security account num- ‘‘(A) IN GENERAL.—To the extent consistent tion counsel, or privately retained special ber of an individual, the Secretary shall, if with State law, immigration officers are au- prosecutor, who represents the State or local the information in the National Directory of thorized to serve on any alien who is an ap- agency administrating the programs under New Hires indicates that the individual may plicant for admission to the United States part B and this part in a proceeding con- be employed, disclose to the State agency legal process with respect to any action to ducted by, or under the supervision of, an the name and address of any putative em- enforce or establish a legal obligation of an abuse and neglect court, including a pro- ployer of the individual, subject to this para- individual to pay child support (as defined in ceeding for termination of parental rights. graph. section 459(i) of the Social Security Act). ‘‘(10) The term ‘attorney representing a ‘‘(B) CONDITION ON DISCLOSURE.—The Sec- ‘‘(B) DEFINITION.—For purposes of subpara- child’ means an attorney or a guardian ad retary shall make a disclosure under sub- graph (A), the term ‘legal process’ means any litem who represents a child in a proceeding paragraph (A) only to the extent that the writ, order, summons or other similar proc- conducted by, or under the supervision of, an Secretary determines that the disclosure ess, which is issued by— abuse and neglect court. would not interfere with the effective oper- ‘‘(i) a court or an administrative agency of ‘‘(11) The term ‘attorney representing a ation of the program under this part. competent jurisdiction in any State, terri- parent’ means an attorney who represents a ‘‘(C) USE OF INFORMATION.—A State agency tory, or possession of the United States; or parent who is an official party to a pro- may use information provided under this ‘‘(ii) an authorized official pursuant to an ceeding conducted by, or under the super- paragraph only for purposes of administering order of such a court or agency or pursuant vision of, an abuse and neglect court.’’. a program referred to in subparagraph (A).’’. to State or local law.’’. (c) CONFORMING AMENDMENTS— (b) EFFECTIVE DATE.—The amendment (2) EFFECTIVE DATE.—The amendment (1) Section 473(a)(6)(B) of such Act (42 made by subsection (a) shall take effect on made by this subsection shall apply to aliens U.S.C. 673(a)(6)(B)) is amended by striking October 1, 1999. applying for admission to the United States ‘‘474(a)(3)(E)’’ and inserting ‘‘474(a)(3)(F)’’. SEC. 607. IMMIGRATION PROVISIONS. on or after 180 days after the date of the en- (2) Section 474(a)(3)(E) of such Act (42 (a) NONIMMIGRANT ALIENS INELIGIBLE TO actment of this Act. U.S.C. 674(a)(3)(E)) (as so redesignated by RECEIVE VISAS AND EXCLUDED FROM ADMIS- (c) AUTHORIZATION TO SHARE CHILD SUPPORT subsection (a)(1)(A) of this section) is amend- SION FOR NONPAYMENT OF CHILD SUPPORT.— ENFORCEMENT INFORMATION TO ENFORCE IMMI- ed by striking ‘‘subparagraph (C)’’ and in- (1) IN GENERAL.—Section 212(a)(10) of the GRATION AND NATURALIZATION LAW.— serting ‘‘subparagraph (D)’’. Immigration and Nationality Act (8 U.S.C. (1) SECRETARIAL RESPONSIBILITY.—Section (3) Section 474(c) of such Act (42 U.S.C. 1182(a)(10)) is amended by adding at the end 452 of the Social Security Act (42 U.S.C. 652) 674(c)) is amended by striking ‘‘subsection the following: is amended by adding at the end the fol- (a)(3)(C)’’ and inserting ‘‘subsection ‘‘(F) NONPAYMENT OF CHILD SUPPORT.— lowing: (a)(3)(D)’’. ‘‘(i) IN GENERAL.—Any nonimmigrant alien ‘‘(m) If the Secretary receives a certifi- (d) SUNSET.—Effective on October 1, 2004— (1) section 474(a)(3) of the Social Security is inadmissible who is legally obligated cation by a State agency, in accordance with Act (42 U.S.C. 674(a)(3)) is amended by strik- under a judgment, decree, or order to pay section 454(32), that an individual who is a ing subparagraph (C) and redesignating sub- child support (as defined in section 459(i) of nonimmigrant alien (as defined in section paragraphs (D), (E), and (F) as subparagraphs the Social Security Act), and whose failure 101(a)(15) of the Immigration and Nationality (C), (D), and (E), respectively; to pay such child support has resulted in an Act) owes arrearages of child support in an (2) section 475 of such Act (42 U.S.C. 675) is arrearage exceeding $5,000, until child sup- amount exceeding $5,000, the Secretary may, amended by striking paragraphs (8) through port payments under the judgment, decree, at the request of the State agency, the Sec- (11); or order are satisfied or the nonimmigrant retary of State, or the Attorney General, or (3) section 473(a)(6)(B) of such Act (42 alien is in compliance with an approved pay- on the Secretary’s own initiative, provide U.S.C. 673(a)(6)(B)) is amended by striking ment agreement. such certification to the Secretary of State ‘‘474(a)(3)(F)’’ and inserting ‘‘474(a)(3)(E)’’. ‘‘(ii) WAIVER AUTHORIZED.—The Attorney and the Attorney General information in (4) section 474(a)(3)(E) of such Act (42 General may waive the application of clause order to enable them to carry out their re- U.S.C. 674(a)(3)(E)) (as so redesignated by (i) in the case of an alien, if the Attorney sponsibilities under sections 212(a)(10) and subsection (a)(1)(A) of this section) is amend- General— 235(d) of such Act.’’. ed by striking ‘‘subparagraph (D)’’ and in- ‘‘(I) has received a request for the waiver (2) STATE AGENCY RESPONSIBILITY.—Section serting ‘‘subparagraph (C)’’; and from the court or administrative agency 454 of the Social Security Act (42 U.S.C. 654) (5) section 474(c) of such Act (42 U.S.C. having jurisdiction over the judgment, de- is amended— 674(c)) is amended by striking ‘‘subsection cree, or order obligating the alien to pay (A) by striking ‘‘and’’ at the end of para- (a)(3)(D)’’ and inserting ‘‘subsection child support that is referred to in such graph (32); (a)(3)(C)’’. clause; or (B) by striking the period at the end of ‘‘(II) determines that there are prevailing paragraph (33) and inserting ‘‘; and’’; and SEC. 606. USE OF NEW HIRE INFORMATION TO AS- SIST IN ADMINISTRATION OF UNEM- humanitarian or public interest concerns.’’. (C) by inserting after paragraph (33) the PLOYMENT COMPENSATION PRO- (2) EFFECTIVE DATE.—The amendment following: GRAMS. made by this subsection shall take effect 180 ‘‘(34) provide that the State agency will (a) IN GENERAL.—Section 453(j) of the So- days after the date of the enactment of this have in effect a procedure for certifying to cial Security Act (42 U.S.C. 653(j)), as amend- Act. the Secretary, in such format and ed by section 501(a) of this Act, is further (b) AUTHORIZATION TO SERVE LEGAL PROC- accompained by such supporting documenta- amended by adding at the end the following: ESS IN CHILD SUPPORT CASES ON CERTAIN AR- tion as the Secretary may require, deter- ‘‘(7) INFORMATION COMPARISONS AND DISCLO- RIVING ALIENS.— minations for purposes of section 452(m) that SURE TO ASSIST IN ADMINISTRATION OF UNEM- (1) IN GENERAL.—Section 235(d) of the Im- nonimmigrant aliens owe arrearages of child PLOYMENT COMPENSATION PROGRAMS.— migration and Nationality Act (8 U.S.C. support in an amount exceeding $5,000.’’.

VerDate 29-OCT-99 05:47 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00081 Fmt 7634 Sfmt 0634 E:\CR\FM\A04NO7.051 pfrm02 PsN: H04PT1 E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION

Vol. 145 WASHINGTON, THURSDAY, NOVEMBER 4, 1999 No. 154 Senate The Senate met at 9:30 a.m. and was the financial services modernization The PRESIDING OFFICER. The Sen- called to order by the President pro bill. There are approximately 6 hours ator from Minnesota is recognized. tempore [Mr. THURMOND]. of debate remaining under the order. Mr. WELLSTONE. I thank the Chair. Therefore, Senators can expect a vote Mr. President, before I start, since PRAYER on adoption of the conference report my remarks will be critical and hard The Chaplain, Dr. Lloyd John this afternoon. hitting, and, I believe, will marshal Ogilvie, offered the following prayer: As a reminder, the newest Member of considerable evidence for my point of Dear God, take hold of us in this the Senate, LINCOLN CHAFEE, will be view about this financial moderniza- time of prayer. Force us to open the sworn in today at 11:30 a.m. in the Sen- tion act—and I rise to speak in strong icy grip that we have on our problems ate Chamber. The majority leader en- opposition to S. 900—I congratulate so that we may with open hands re- courages all of his colleagues to come Senator GRAMM for his political skill. I ceive Your plans. Help us to be willing to the floor to extend a warm welcome do not mean this in a cynical way. to receive Your guidance. Shake any to our new colleague from Rhode Is- Cynicism is not my style; it is not the complacency, disturb any pride, and land. way I approach public service. He has give us Your peace that passes under- For the remainder of the week, the been very skillful in his work, and as a standing. Senate will consider appropriations Senator, I pay my respects to his con- Reign as Sovereign Lord in this bills as they become available and may siderable ability. Chamber. Guide the deliberations, de- also consider the bankruptcy reform I rise in strong opposition to S. 900, bates, and decisions of this day. Help bill if an agreement can be reached. the Financial Services Modernization the Senators to listen to You before I thank my colleagues for their at- Act of 1999. S. 900 would aggravate a they speak so that Your truth and jus- tention. trend towards economic concentration tice may refine all that is spoken. In it The PRESIDENT pro tempore. The that endangers not only our economy, all, may they consider You first, the Senator from Minnesota is recognized. but also our democracy. Mr. WELLSTONE. I thank the Chair. good of the Nation second, party third, S. 900 would make it easier for banks, and personal success last of all. You f securities firms, and insurance compa- grant Your power to leaders with Your WELCOME TO LINCOLN CHAFEE nies to merge into gigantic new con- priorities so, dear Lord, confront, chal- glomerates that would dominate the Mr. WELLSTONE. Mr. President, U.S. financial industry and the U.S. lenge, and change us all so that we first of all, I join the Senator from may know and do Your will. You are economy. Idaho in welcoming Senator CHAFEE to Mr. President, this is the wrong kind our Lord and Savior. Amen. the Senate. His father was a very spe- f of modernization at the wrong time. cial Senator, and I don’t think any of Modernization of the existing con- PLEDGE OF ALLEGIANCE us will ever forget him. I hope that we fusing patchwork of laws, regulations, will always honor his memory. and regulatory authorities would be a The Honorable MIKE CRAPO, a Sen- f ator from the State of Idaho, led the good thing, but that’s not what this Pledge of Allegiance as follows: RESERVATION OF LEADER TIME legislation is about. S. 900 is really I pledge allegiance to the Flag of the The PRESIDING OFFICER (Mr. about accelerating the trend towards massive consolidation of the financial United States of America, and to the Repub- CRAPO). Under the previous order, lead- lic for which it stands, one nation under God, ership time is reserved. sector. indivisible, with liberty and justice for all. This is the wrong kind of moderniza- f f tion because it fails to put in place ade- FINANCIAL SERVICES MODERNIZA- quate regulatory safeguards for these RECOGNITION OF THE ACTING TION ACT OF 1999—CONFERENCE new financial giants the failure of MAJORITY LEADER REPORT which could jeopardize the entire econ- The PRESIDENT pro tempore. The The PRESIDING OFFICER. The Sen- omy. It’s the wrong kind of moderniza- Senator from Idaho is recognized. ate will now resume consideration of tion because taxpayers could be stuck f the conference report to accompany S. with the bill if these conglomerates become ‘‘too big to fail.’’ SCHEDULE 900 which the clerk will report. The bill clerk read as follows: This is the wrong kind of moderniza- Mr. CRAPO. Mr. President, today the Conference report to accompany S. 900, the tion because it fails to protect con- Senate will resume consideration of Financial Services Modernization Act of sumers. It allows banks, insurance the conference report to accompany 1990. companies and brokerage houses to

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

S13871

VerDate 29-OCT-99 05:18 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.000 pfrm12 PsN: S04PT1 S13872 CONGRESSIONAL RECORD — SENATE November 4, 1999 share personal information about con- to be on guard against a ‘‘sharp rever- tially increases their risk on the $2.8 sumers’ credit history, investments, sal of confidence’’ that could cause fi- trillion in federally insured deposits health treatments, and buying habits. nancial markets to ‘‘seize up’’; and if for which they are liable.’’ It weakens requirements for banks to the Fed Chairman is right that finan- And what about the lessons of the invest in their own communities. It cial consolidation creates the potential Asian crisis? Just recently, the finan- will result in higher fees for many cus- for unusually large ‘‘systemic risks’’ cial press was crowing about the inad- tomers and price gouging of the un- should these conglomerates fail; and if equacies of Asian banking systems. wary. And it will squeeze credit for Jeffrey Garten is right that their fail- Now we’re considering a bill that would small businesses and rural America. ure could bring the entire global finan- make our banking system more like Most importantly, this is the wrong cial system tumbling down; then it theirs. The much-maligned cozy rela- kind of modernization because it en- doesn’t seem to make a whole lot of tionships between Asian banks, bro- courages the concentration of more sense to increase those systemic risks kers, insurance companies and com- and more economic power in the hands by fostering even more concentration. mercial firms are precisely the kind of of fewer and fewer people. This con- Yet that is precisely what S. 900 does. ‘‘crony capitalism’’ that S. 900 would centration will wall off enormous areas The problem with S. 900 is that its promote. of economic decision-making from any regulatory reach does not match the If we want to locate the causes of the Asian crisis, I think we have to look at kind of democratic input or account- size of the new conglomerates. S. 900 the reckless liberalization of capital ability. does set up firewalls to protect banks markets that led to unbalanced devel- I don’t think there’s any doubt that from failures of their insurance and se- opment and made these economies so S. 900 will set in motion a tidal wave of curities affiliates. But even Alan vulnerable to investor panic in the first big-money mergers. That’s the whole Greenspan has admitted that these place. The IMF and other multilateral point of the bill, really. The Wash- firewalls would be weak. Earlier this financial institutions failed to under- ington Post quotes industry officials as year, economists Robert Auerbach and saying that ‘‘the point of reform is to stand how dangerous and destabilizing James Galbraith warned that ‘‘the fire- make it as easy as possible for finan- financial deregulation can be without walls may be little more than placing cial services companies to merge with first putting appropriate safeguards in potted plants between the desks of one another and share customer names, place. huge holding companies.’’ addresses, and account data.’’ World Bank Chief Economist Joseph S. 900 will prompt other banks to And as the Chairwoman of the FDIC Stiglitz wrote last year about the start courting insurance and securities has testified, ‘‘In times of stress, fire- Asian crisis: ‘‘The rapid growth and firms, and it will put increasing pres- walls tend to weaken.’’ Regulators will large influx of foreign investment cre- sure on banks of every size to find new have little desire to stop violations of ated economic strain. In addition, partners. According to the Post, ‘‘Ana- these firewalls if they think a holding heavy foreign investment combined lysts say it’s likely to set off a spate of company is ‘‘too big to fail.’’ In his with weak financial regulation to allow mergers over the next few years . . . New York Times article, former Under lenders in many Southeast Asian coun- and will cause consolidation of much of Secretary of Commerce Jeffrey Garten tries to rapidly expand credit, often to the industry into a handful of financial concluded, ‘‘The seesaw of private and risky borrowers, making the financial conglomerates.’’ public power is seriously unbalanced.’’ system more vulnerable. Inadequate Fed Chairman Alan Greenspan has We seem determined to unlearn the oversight, not over-regulation, caused acknowledged that this kind of consoli- lessons from our past mistakes. Scores these problems. Consequently, our em- dation poses dangers for the stability of banks failed in the Great Depression phasis should not be on deregulation, of our financial system. In a speech on as a result of unsound banking prac- but on finding the right regulatory re- October 11, 1999, Mr. Greenspan said, tices, and their failure only deepened gime to reestablish stability and con- ‘‘We face the reality that the the crisis. Glass-Steagall was intended fidence.’’ We claim to have learned our megabanks being formed by growth to protect our financial system by in- lessons from the crisis in Asia, but I’m and consolidation are increasingly sulating commercial banking from not so sure we have. complex entities that create the poten- other forms of risk. It was one of sev- So why on Earth are we doing this? tial for unusually large systemic risks eral stabilizers designed to keep a simi- And why now? For whose benefit is this in the national and international econ- lar tragedy from recurring. Now Con- legislation being passed? Financial omy should they fail.’’ gress is about to repeal that stabilizer services firms argue that consolidation Last week Jeffrey Garten, an invest- without putting any comparable safe- is necessary for their survival. They ment banker who served as Under Sec- guard in its place. claim they need to be as large and di- retary of Commerce in the Clinton ad- In a stinging attack on S. 900, con- versified as foreign firms in order to ministration, issued a similar warning servative columnist William Safire compete in the global marketplace. on the opinion page of the New York wrote earlier this week, But the U.S. financial industry is al- Times. ‘‘Megabanks like Citigroup or Global financiers are given the green light ready dominant across the globe, and the new Bank of America have become for ever-greater concentration of power. Few in recent years has been quite profit- too big to fail. Were they to falter, remember the reason for those firewalls: to able. I see no crisis of competitiveness. they could take the entire global finan- curtail the spread of the sort of panic from Financial firms also argue that con- cial system down with them.’’ one financial segment to another that helped solidation will produce efficiencies The question we have to ask, then, is lead to the Great Depression. But today’s that can be passed on to consumers. whether there’s any danger that these lust for global giantism has swept aside the But there is little evidence that big financial goliaths could actually falter. voices of prudence. mergers translate into more efficiency Well, if we listen to Alan Greenspan, And what about the lessons of the or better service. In fact, studies by the maybe there is. In an October 14 Savings and Loan Crisis? The Garn-St Federal Reserve indicate just the oppo- speech, the Fed Chairman warned that Germain Act of 1982 allowed thrifts to site: there’s no convincing evidence financial institutions may be under- expand their services beyond basic that mergers produce greater economic estimating the risk of a ‘‘sharp rever- home loans. Only seven years later tax- efficiencies. On the contrary, they sal of confidence’’ in the stock market. payers were tapped for a multibillion often lead to higher banking fees and Mr. Greenspan was talking about not dollar bailout. charges for small businesses, farmers, just a ‘‘correction’’ or a ‘‘bubble’’ in I’m afraid we’re running the same and other customers. the market, but a much deeper loss of kind of risks with S. 900. These finan- A recent Fed study showed that big- confidence like the one that occurred cial conglomerates may well be tempt- ger banks tend to charge higher fees last year after Russia defaulted on part ed to run greater risks, knowing that for ATM machines and other services. of its debt. The result could be ‘‘panic taxpayers will come to their rescue if Bigger banks offer fewer loans for reactions’’ that cause financial mar- things go bad. In a letter to me earlier small businesses, and other Fed studies kets to ‘‘seize up.’’ this week, Professor Bob Auerbach of have shown that the concentration of Something doesn’t add up here. If the LBJ School wrote, ‘‘Taxpayers banking squeezes out community bank- Alan Greenspan is right that we need should be notified that [S. 900] substan- ing.

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.003 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13873 In the long debate over passage of money, your habits, your assets, your dis- gressional campaigns and on lobbying this legislation, there has been a lot of eases, and your genetic makeup than your Capitol Hill. Last year, they shelled talk about the conflicting interests of spouse does, and probably more than you do. out more than $200 million on lobbying bankers, insurance companies, and bro- Law Professor Joel Reidenberg of activities, according to the Center for kers. There has been a lot of talk about Fordham University concludes: Responsive Politics, and they have the jurisdictional battles between the This is an astounding loss of privacy for made more than $150 million in cam- Federal Reserve and the Office of the the American citizens. paign contributions since 1996. Comptroller of the Currency, the OCC. I want to shout from the floor of the As William Safire wrote on November But there has been precious little dis- Senate that this is an astounding loss 1: cussion in this debate of the public in- of privacy for American citizens. Generous financial lobbies have persuaded terest. The impact of S. 900 on the Commu- our leaders that in enormous size there is What about the interests of ordinary nity Reinvestment Act, CRA, is an- strength. consumers? An earlier version of this other cause for real concern. When the Generous lobbies have been making legislation contained a provision to en- Senate considered S. 900 earlier this the same case in other industries as sure that people with lower incomes year, I argued that if we were serious well, with equal success. Similar con- have access to basic banking services. about modernizing the financial sector solidation is occurring in agriculture, The problem is that banking services of our country, we should be serious the media, entertainment, health care, are increasingly beyond the reach of about modernizing CRA along with it. airlines, telecommunications, you millions of Americans. According to There have been few financial tools name it. Teddy Roosevelt, where are U.S. PIRG, the average cost of a check- available to families and communities you when we need you? Who is going to ing account is $217 per year, a major that have been as effective and have take on these monopolies? obstacle for opening up a bank account had as great an impact—positive im- Who is going to call for some serious for lower-income families. These fami- pact—as CRA. An estimated $1 trillion antitrust action? When are we going to lies have to rely, instead, on usurious has been reinvested in our towns and be on the side of people and consumers? check cashing operations and money cities, thanks to this CRA legislation. In fact, we are witnessing the biggest order services. Nevertheless, this Under the S. 900 conference report, wave of mergers and economic con- ‘‘basic banking’’ provision was stripped communities, consumers, and public centration since the late 1800s. out of the bill. interest organizations will see their op- There were 4,728 reportable mergers I don’t see very much protection for portunities for public comment lim- in 1998, compared to 3,087 in 1993, 1,521 consumers in S. 900, either. Banks that ited. They will not have a chance to in 1991, and a mere 804 in 1980. have always offered safe, federally in- comment on mergers when banks that As Joel Klein, head of the Justice De- sured deposits will have every incen- have received a satisfactory CRA rat- partment’s Antitrust Division, pointed tive to lure their customers into ing are applying to become financial out, the value of last year’s mergers riskier investments. Last year, for ex- holding companies. To me, this looks equals the combined value of all merg- ample, NationsBank paid $7 million to more like a rollback than it does mod- ers from 1999 to 1996—put together. settle charges that it misled bank cus- ernization. What is in store for us if we allow tomers into investing in risky bonds Finally, under the S. 900 conference this trend to continue? Pretty soon we through a securities affiliate that it set report, smaller banks that receive a are going to have three financial serv- up with Morgan Stanley Dean Witter. satisfactory CRA rating will be re- ice firms in this country, four airlines, S. 900 makes nominal attempts to ad- viewed every 4 years instead of every 2. two media conglomerates, and five en- dress these problems, but in the end I Smaller banks that receive an excel- ergy giants. am afraid this legislation is an invita- lent CRA rating will be reviewed every Huge financial conglomerates the tion to fraud and abuse. 5 years. Since an estimated 97 percent size of Citigroup will truly be ‘‘too big One of the most objectionable aspects of all small banks currently receive a to fail.’’ Government officials and of S. 900 is the absence of protection for satisfactory or better CRA rating, S. Members of the Congress will be prone consumer privacy. The conference re- 900 will essentially remove the major- to confuse Citigroup’s interests with port will allow the various affiliates of ity of banks from the regular CRA re- the public interest, if they don’t al- a financial conglomerate to share sen- view process. There are a number of ready. sitive confidential information about reasons why banks must be reviewed What happens, for example, when one their customers. by regulators, but it is only with re- of these colossal conglomerates decides William Safire writes: gard to CRA that we are cutting back it might like to turn a profit by As for financial privacy, [S. 900] makes on the requirements for review. privatizing Social Security? Who is your bank account everyone’s business. In reality, S. 900 reflects the same going to stand in their way? That is a Without your consent, the private informa- priority of interests as financial con- trick question, of course, because we tion you write on your mortgage application, solidation itself. It offers a little some- already face that dilemma today. But I with your tax return attached, goes to your thing for everybody in the financial contend that the economic concentra- insurance company, which already has your services industry. It is a Santa’s wish tion resulting from the passage of S. health information, and its snoops can also list for the big banks. It gives enough 900 would only make that problem see your investment behavior and what you to securities firms and the insurance worse. have been buying with your credit card. industry to keep them on board. But it The bigger these financial conglom- Under [S. 900], giant financial conglomerates, using other surveillance to protect basically has nothing to offer for low- erates get, the more influence they against fraud, will know more about your income families, nothing for rural and have over public policy choices. The money, your habits, your assets, your dis- minority communities, and very little bigger they get, the more money they ease, and your genetic makeup than your for consumers. will have to spend on political cam- spouse does, and probably more than you do. This should not be surprising. I don’t paigns. The bigger they get, the more I will tell you something. It is a little think it is a mere coincidence that fi- lobbyists they will be able to amass on disconcerting to read columns such as nance, insurance, and real estate spend Capitol Hill. And the bigger they get, this about the real potential for abuse more than any other industries on con- the more weight they will carry in the and serious invasion of citizens’ pri- gressional campaigns and lobbying on media. vacy. We need to have much, much Capitol Hill. This is a reformer’s dream I am going to repeat that. more discussion about the implications issue. There is no one-to-one correla- The bigger these financial conglom- of this bill for citizens’ privacy in Min- tion, of course; their influence is felt at erates get, the more influence they are nesota and all across the country. a systemic level. And I have congratu- going to have over public policy I am going to repeat the last part of lated some of my colleagues on their choices. The bigger they get, the more this quote: political skill. But I do not think it is money they will have to spend on polit- Under S. 900, giant financial conglom- a coincidence that the finance, insur- ical campaigns. The bigger they get, erates, using other surveillance to protect ance, and real estate interests spend the more lobbyists they will have to against fraud, will know more about your more than any other industries on con- amass on Capitol Hill. And the bigger

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.004 pfrm13 PsN: S04PT1 S13874 CONGRESSIONAL RECORD — SENATE November 4, 1999 they get, the more weight they will of history because I believe this will want the decisionmaking to be in the carry with the media. become a front-burner issue in America communities. I appreciate that focus It is a vicious cycle. These financial politics. Many Americans deeply be- on local development, on more self-re- conglomerates used their political lieved that a free and democratic soci- liant, self-sufficient people and more clout to shape public policy that helped ety could not prosper with such con- self-reliant, self-sufficient commu- them grow so big in the first place. centration of power and inequalities of nities. Now their overwhelming size makes it wealth. As the great Supreme Court The people in the Town Talk Cafe in easier for them to dictate policies that Justice Louis Brandeis said, ‘‘We can Willmar, or any other cafe I have vis- will help them get even bigger. It is a have democracy in this country, or we ited, also have a very healthy skep- vicious cycle. can have wealth in the hands of a few. ticism, distrust, and—I don’t think this Jeffrey Garten’s remarkable October We can’t have both.’’ is too strong a term—dislike of the 26th column in the New York Times The idea that concentrations of concentration that is taking place in called attention to this problem. wealth, of economic power—which is the financial sector and other areas of ‘‘Many megacompanies may be beyond exactly what S. 900 is all about—and of the economy. They do not like the big the law,’’ Garten said. political power are unhealthy for our insurance companies. They do not like Their deep pockets can buy teams of law- democracy is a theme that runs these big telecommunication compa- yers that can stymie prosecutors for years. throughout American history, from nies. They are still waiting, since the And if they lose in court, they can afford to Thomas Jefferson to Andrew Jackson telecommunications bill passed in 1996 pay huge fines without damaging their oper- to the Progressive Era to the New and all of the mergers and acquisitions ations. Deal. Thomas Jefferson and Andrew since then, for cable rates to go down. Moreover, no one should be surprised that Jackson warned not only against con- They are still waiting for more diver- mega-companies navigate our scandalously centration of political power, but also sity of viewpoints to be offered in the porous campaign financing system to influ- media. Farmers do not like the big ence tax policy, environmental standards, against concentration of economic Social Security financing, and other issues power. meat packers. They don’t like the big of national policy. Yes, companies have al- We should not, Senators, let that de- grain companies. People certainly ways lobbied, but these huge corporations bate die out. That is why I come to the don’t like the big oil companies. With often have more pull. Because there are floor of the Senate today. That debate considerable justification, they cer- fewer of them, their influence can be more is a vital part of our democratic—with tainly don’t like the big banks. And focused and, in some cases, the country may a small ‘‘d’’—heritage. It is a heritage with considerable justification they be highly dependent on their survival. that teaches us that ordinary people have reached the conclusion that too For example, corporate giants can have much of the legislation we pass in Con- enormous leverage when they focus on Amer- should have more say about the eco- ica’s foreign and trade policy. Defense con- nomic decisions that affect their lives. gress works to the advantage of folks tractors like Lockheed Martin, itself a result Weakening CRA isn’t going to give who have the capital, who have the of a merger of two big firms, were able to them that. No amount of anti-govern- wealth, who have the access, and who exert extraordinarily powerful force to influ- ment rhetoric is going to give them have the influence. ence legislation that approved enlarging that. But enforcing some meaningful And they’ve reached the conclusion NATO, a move that opened up new markets consumer protections certainly would. that, as rural citizens or low-income for American weapons sales to Poland and So would protecting the privacy of sen- citizens or minority communities or the Czech Republic. sitive personal information. And so family farmers or just regular plain or- Companies like Boeing, which not long ago acquired McDonnell Douglas, have expanded would putting a stop to mergers that dinary citizens and consumers, they their already formidable influence on trade crowd out community banking, squeeze get the short end of the stick. policy toward countries like China. Boeing is credit for small businesses, and open S. 900 is legislation that goes in the now the only American commercial aircraft the door to higher fees and more direction of giving more power to the manufacturer. gouging of consumers. privileged few and giving ordinary citi- Corporations like Exxon-Mobil will nego- A lot of banks don’t like the CRA. A zens less say in the economic decisions tiate with oil-producing countries almost as lot of financial service firms don’t that affect their lives. S. 900 is bad for equals, conducting the most powerful private want to be bothered with regulations consumers, it is bad for low-income diplomacy since the 19th century, when the to protect individual privacy. They de- families, it is bad for rural commu- British East India Company wielded near- sovereign influence in Asia. nounce them as ‘‘big government’’ and nities, it creates potentially enormous As long as the economy remains strong, ‘‘overregulation.’’ But for most people, risks for the economy, and it exposes the rise of corporate power with inadequate which is the greater danger in these taxpayers—please remember the S&L public oversight will not be high on the na- situations—concentration of political debacle—to tremendous liability. tional agenda. But sooner or later—perhaps power in the Government, or con- I believe S. 900 is bad legislation that starting with the next serious economic centration of economic power? I don’t as a nation we will soon regret. downturn—the United States will have to think it is a close call. I yield the floor. confront one of the great challenges of our When I go to the Town Talk Cafe in The PRESIDING OFFICER. Who times: How does a sovereign nation govern yields time? itself effectively when politics are national Willmar, MN, or any cafe in MN, and I talk and listen to people over a cup of If no time is yielded, the time will be and business is global? reduced from the time of all Senators When the answers start coming, they could coffee or two, I find people have what I be as radical and as prolonged as the back- describe as a healthy distrust of big proportionately. Mr. GRAMM. Mr. President, it is my lash against unbridled corporate power that government, a healthy distrust of over- understanding that Senator WELL- took place during the first 40 years of this ly centralized and overly STONE has about 15 minutes remaining. century. bureaucratized public policy. The PRESIDING OFFICER. The Sen- Indeed, we’ve been through this be- I love it when people say, get us some ator from Minnesota has 20 minutes re- fore. At the end of the 19th century, in- capital, let us make things happen at maining. dustrial concentration accelerated at the neighborhood and community Mr. GRAMM. I have spoken to the an alarming pace. Various observers— level. I love the idea of homegrown Senator, and I ask unanimous consent including the columnist and author economies. I prefer that small business that time be divided between Senator E.J. Dionne, former House Speaker people living in the community be the SARBANES and myself. Newt Gingrich, and the philosopher Mi- ones who make the capital investment The PRESIDING OFFICER. Without chael Sandel—have noted the similar- decisions that determine whether or objection, it is so ordered. ities between that era and our own. not our communities are going to do Mr. GRAMM. I yield the floor. In the Gilded Age of the late 1800s well, rather than some multinational Mr. JOHNSON addressed the Chair. and the Progressive Era of the early financial services conglomerate folks The PRESIDING OFFICER. Who 1900s, the danger of concentrated eco- halfway across the world or halfway yields time to the Senator? nomic power was widely recognized and across the country making the capital Mr. JOHNSON. Mr. President, I yield hotly debated. And this speech on the investment decisions that determine myself 15 minutes or as much time as floor of the Senate I give with a sense whether our communities live or die. I I may consume.

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.006 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13875 The PRESIDING OFFICER. The Sen- Of course, the Glass-Steagall repeal Home Loan Bank System. This portion ator is recognized. and other components of this legisla- of the bill recognizes the importance of PRIVILEGE OF THE FLOOR tion will open a range of financial ac- small community banks and the role Mr. JOHNSON. Mr. President, I ask tivities to each other. However, the bill they plan in our towns and commu- unanimous consent fellows on my staff, is carefully structured to prevent the nities. With the massive shift of sav- Julie Roling and Erin Barry, be al- mixing of banking and commerce. This ings and investment to Wall Street and lowed the privilege of the floor during single loophole remains where banking other nontraditional vehicles, small the remainder of this week. and commerce can mix. The conference community banks are finding it more The PRESIDING OFFICER. Without report does not interfere with current difficult to attract deposits at reason- objection, it is so ordered. ownership of thrifts. Any commercial able rates, and lack ready access to Mr. JOHNSON. Mr. President, when I firms that currently own a unitary wholesale capital markets. first came to Congress in 1987, efforts thrift charter will be able to continue This bill will give them that access at financial services modernization had to own and operate their institutions by making it easier for small banks to already been undertaken and failed without restriction. Their current sta- join the Federal Home Loan Bank Sys- many times. Last year, we came as tus would be undisturbed. tem. That system gives small banks close as Congress has ever come to The only limitation this amendment greater access to cheaper funds achieving this critical goal. This year, would impose involves the transfer- through wholesale capital rates. That as a member of the conference com- ability of that charter. The charter access, in turn, will lead to more loans mittee, I am pleased to say, we will fi- would not be transferable to another at lower rates to our small businesses, nally accomplish this historic goal. commercial entity. Any bank, insur- ranchers and farmers. It makes run- That we are here is a testament to ance company or security firm that ning a farm or ranch, running a busi- the leadership of many, many partici- wanted to acquire the charter could do ness, expanding a business, buying a pants. Much credit goes to Chairman so. A new entity could be created to op- car, sending children to college—all of LEACH, who tirelessly shepared this bill erate the thrift. Included in title IV of these endeavors more affordable for all over his five years as chairman of the the bill before us are provisions prohib- South Dakotans, for all Americans. By House Banking Committee and chair- iting new unitary thrift holding com- enabling more affordable loans, this man of this conference. Senator pany applications filed after May 4, provision will help infuse the rural GRAMM, chairman of the Senate Bank- 1999, and prohibiting transfer of exist- economy with capital in particular. ing Committee relentlessly promoted ing unitaries to commercial firms. In This section of financial services mod- his agenda, yet was willing to com- the context of comprehensive financial ernization legislation is critical to promise on critical issues in a manner modernization legislation, these provi- keeping our community banks com- that resulted ultimately in bipartisan sions achieve the intent of this Con- petitive as we move to tear down tradi- support of this bill. gress to block the inappropriate mixing tional firewalls and create new finan- My ranking member on the Banking of banking and commerce, even in the cial services giants within the realm of Committee, Senator SARBANES, made limited scope authorized for the thrift the financial service industries. invaluable contributions to the proc- industry for the past several decades. I want to briefly address the issue of ess. His tenaciousness, in depth under- The provisions in title IV protect financial privacy. With the explosive standing of the many highly complex granfathered companies but do not growth of the Internet, we are finding issues, and ability to work within the allow existing unitary companies to be information can be accumulated and caucus made this success possible. Of acquired by commercial firms. By acquired with greater ease than pre- course, the ranking member on the adopting my amendment in this con- viously imaginable. We must address House Banking Committee, Represent- ference report, it is the intent of Con- this important consumer protection ative LAFALCE, and our friends from gress that the thrift regulator strictly issue of financial privacy. I joined my the House Commerce Committee, enforce this provision and related laws colleagues, Senators BRYAN and SHEL- Chairman BLILEY and Representative which carefully define which compa- BY, in supporting an ‘‘opt-out’’ provi- DINGELL, made critical contributions nies qualify as unitary holding compa- sion that would allow customers to to this process as well. Finally, I would nies and which companies are grand- prohibit their financial institutions note the active involvement of two fathered in this legislation. Only the from sharing their personal informa- Secretaries of the Treasury, Bob Rubin current, limited universe of legitimate tion. That effort failed and I am dis- and Larry Summers. Bob has moved on unitaries should be allowed to exercise appointed. We do add some new stand- to other things, but the role he forged powers granted them in the Home Own- ards, including mandated disclosure of in this process has been seamlessly ers Loan Act, and transfer of unitaries privacy policies and protection of cer- filled by Secretary Summers. to commercial firms will no longer tain critical information in the bill. I There are many highlights to this threaten American taxpayers. believe we can do better. I am pleased bill. By eliminating the Glass-Steagall This provision will further the goals that we allow states to enact tougher restrictions, we free our financial serv- of financial modernization by leveling privacy laws, establishing a minimum ices industry to maintain its place as the playing field between banks and federal standard of financial privacy, the world leader. The benefits of one- thrifts. It will also remove a dangerous but we can do better. Despite my dis- stop shopping will make financial serv- threat to further weakening of the appointment, I am pleased we took the ices more accessible to all Americans. walls between banking and commerce. first steps in addressing financial pri- These reasons alone are sufficient to This bipartisan effort had the support vacy, and I believe Congress will re- support this legislation. There are sev- of Secretary Summers and Chairman visit the privacy issue in the future. eral other provisions to this bill that Greenspan. It overwhelmingly passed It is critical as we move toward re- merit discussion, and they strengthen the full Senate. Representative peal of depression-era limitations that this legislation. First, the unitary LARGENT shepherded it through the we recognize the vital role of commu- thrift loophole is closed. I am pleased House Commerce Subcommittee on Fi- nity banks in rural areas. This legisla- to have offered this critical amend- nance and Hazardous Material. Our tion successfully frees our dominant ment which closes the loophole that joint efforts helped make this protec- providers to compete globally while permits a dangerous combination of tion part of the conference report. We strengthening the role of our commu- banking and commerce. While we tear also improve the Federal Home Loan nity banks directly responsive to our down firewalls within financial serv- Bank System, creating greater access small towns. It is that successful bal- ices, we strengthen them around finan- to wholesale capital markets for small ancing that prompted me to sign the cial services. banks and their customers. The im- conference report, and I urge my col- Under current law, commercial firms provements to the Home Loan Bank leagues to join us in passing this his- can own and operate unitary thrifts. System will directly help South Da- toric legislation. That is the only breach of the banking kota financial institutions and South I also want to take this opportunity and commerce firewalls currently al- Dakota consumers by making it easier to thank my staff, Paul Nash, for his lowed under our financial services law. for our institutions to join the Federal tireless work on this legislation. His

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.011 pfrm13 PsN: S04PT1 S13876 CONGRESSIONAL RECORD — SENATE November 4, 1999 dedication to this effort helped make in two significant ways. First, it will to the Federal Home Loan Bank Sys- the final product the balanced result lead to lower costs and higher savings tem, we will help ensure the viability which we will pass today. for consumers by allowing competition of the community bank and thrift. I yield back such time as may re- among banks, securities firms, and in- This legislation will help keep credit main. surance companies. flowing to small businesses, farmers, The PRESIDING OFFICER. Who In 1995, the Bureau of Economic and potential homeowners, and help yields time? Analysis estimated that if financial our local communities prosper as we The distinguished Senator from modernization were to reduce costs to enter the 21st century. This is espe- Texas is recognized. consumers by only 1 percent, that cially important to my State of Ne- Mr. GRAMM. Mr. President, I am would represent a savings of $3 billion braska where many rural communities very pleased to yield to Senator a year to consumers. That is real depend upon the local bank or thrift HAGEL—why don’t I yield him 10 min- money to real people. for their credit needs. utes. If he needs more time, I will yield These savings would come from in- The conferees worked hard to craft more. creased competition which, among oth- legislation that responds to the needs The PRESIDING OFFICER. The dis- ers things, would provide incentives for of all financial institutions, including tinguished Senator from Nebraska is firms to reduce fees. small financial institutions. recognized for 10 minutes. Second, this competition will Another topic important to average Mr. HAGEL. Mr. President, I thank strengthen our financial services firms Americans is financial privacy—how my colleague, the distinguished chair- which are integral to the health of the customers control the flow of their pri- man of the Senate Banking Com- national and international economy. vate financial information. mittee. As is true with manufactured goods For the first time, this bill sets up a I rise this morning in strong support and commodities, exports of financial framework for protecting the privacy of the conference report to accompany services have become increasingly im- of customers’ financial information. S. 900. This landmark legislation before portant to the growth of our Nation’s Customers will be able to prohibit the the Senate today is especially impor- economy. This month, the U.S. and its sharing of their financial information tant for the future, not only of our fi- trading partners will meet in Seattle with outside parties. Financial institu- nancial institutions’ competitiveness to begin a new round of WTO negotiations would be required to disclose and our consumer-based economy but tions. The financial services sector will their privacy policies to their cus- for many reasons. again be a major topic of discussion tomers on a timely basis. If customers I begin my remarks this morning by during these talks. In fact, our Trade do not believe adequate protections commending the chairman of the Sen- Representative, Ambassador exist at their institution, they can ate Banking Committee, Senator Barshefsky, appeared before the Senate take their business elsewhere. GRAMM, for his leadership and extraor- Banking Committee this week and Some wanted stronger privacy pro- dinary efforts to complete this legisla- talked in some detail about the finan- tections. In my opinion, to have gone tion, as well as our distinguished rank- cial services sector being top on the further at this time may well have in- ing member, Senator SARBANES from agenda for these WTO talks. vited the law of unintended con- Maryland. Both they and their staffs It is important that Congress help sequences. I believe some of the pri- and all who worked so hard in accom- tear down barriers to competition vacy protections that were proposed plishing this rather remarkable feat within our own domestic financial mar- and rejected during the conference deserve our thanks. kets as we work with our allies and would have been detrimental, not help- I also recognize, as did my friend and other nations to lower trade barriers in ful, to financial institutions and their colleague, the distinguished Senator the international financial markets. customers. Some of these limitations from South Dakota, the House leader- I will now briefly address how this would have led to fewer products and ship involved in this effort, as well as bill will affect small community banks. services being offered to customers. our current distinguished Secretary of Earlier this year, Senator BAYH and I I want to highlight a particular con- Treasury, Secretary Summers, and the introduced legislation to modernize the cern. The legislation contains a prohi- former Secretary of the Treasury, Bob Federal Home Loan Bank System. The bition on the sharing of customer ac- Rubin, for their leadership. major provisions of that legislation count numbers or credit card numbers This is truly a historic occasion. In were included in this financial mod- with third parties for the purposes of 1933, the United States was mired in ernization conference report. These marketing. This language could be a the Great Depression. The stock mar- provisions will strengthen local com- disadvantage to small banks and insur- ket had collapsed. Populist segments of munity banks that are vital to the eco- ance agencies that partner with third society blamed that collapse on com- nomic growth and viability of Amer- parties to market new products to cus- mercial banks’ involvement in securi- ica’s communities. tomers. ties underwriting. Responding to this The Federal Home Loan Bank provi- Equally important, a customer sentiment, Senator Carter Glass of Vir- sions will ensure that in an era of should have the option to decide ginia helped push through legislation banking megamergers, smaller banks whether this information can be or that created artificial barriers between are able to compete effectively and should be shared. This legislation banking and securities underwriting. continue to serve their customers’ should not take away that choice. Later, amendments included a separa- needs. The report language clarifies that tion of banking and insurance activi- Community banks are finding that, when regulations are written to imple- ties. for a variety of reasons, their funding ment S. 900, they may exempt the shar- One year later, in 1934, Senator Glass sources are shrinking. This makes it ing of encrypted credit card numbers realized he had gone too far and tried more difficult to fund the loan de- and account numbers only where the fi- to repeal parts of the Glass-Steagall mands of their communities. During nancial institution has received ex- Act, his own bill. Since 1934, many at- the 1980s in my State of Nebraska, and press permission from the customer. tempts have been made in Congress to especially in the case of the Presiding As vice chairman of the Banking repeal Glass-Steagall. For a variety of Officer’s State of Kansas, all across Committee’s Financial Institution reasons, these attempts have failed. America many community banks and Subcommittee, I intend to conduct This Congress is about to send the thrifts closed. As local credit dried up, oversight during the rulemaking proc- President a bill that accomplishes local economies stagnated. Small busi- ess implementing this legislation. what we have failed to achieve over nesses, our greatest engines of job The regulators should exercise this many years. However, it should be growth and innovation, were the first exemption authority. The conferees did noted that we have also built on these to feel the crunch. not intend to hurt legitimate business many years of efforts. The Federal Home Loan Bank provi- practices that safeguard customer in- I am proud to have served on the con- sions in this legislation will strengthen formation. ference committee for this legislation. community banks to help avoid a re- I end by again expressing my strong This legislation will benefit consumers peat of the 1980s. By broadening access support for this conference report. This

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.002 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13877 legislation, a well-balanced approach serve with him on the conference com- will allow consistent oversight by the to financial services modernization, is mittee. Fed, while also allowing the individual long overdue. It does not pick winners In regard to the conference report regulators to exercise their expertise in and losers. It provides important con- that is before the Senate, I think its the day-to-day operations of the affili- sumer protections while expanding the provisions will be good for consumers ates that they traditionally regulate. choices available to consumers. and good for businesses. In regard to The bill respects the rights of States The conferees worked hard to craft a the consumers, it provides increased through strong functional regulation bill that will guide our financial serv- competition in financial services. That and maintenance of non-discrimina- ices industries into the next century. is good. It will increase choice for con- tory State laws. This is a bill of which we can be proud, sumers. There is more convenience for Unitary thrifts prior to May 4, 1999, and I again congratulate Chairman consumers, and it will lower prices. are grandfathered in under this bill. GRAMM, Senator SARBANES, and all who Specific provisions in the bill also give Existing unitary thrift companies may provided leadership and hard work to consumers more information to better only be sold to financial companies. accomplish this rather significant ef- enable them to make educated choices. Privacy is important to many con- fort. The conference report, as I men- sumers, and the conference report I urge my colleagues to support the tioned, is also good for business. It re- takes important steps to protect the financial modernization conference re- writes the outdated laws that have privacy of Americans. Financial insti- port. governed the financial services indus- tutions must disclose to the consumer I yield the floor. try since the Depression. Gramm- their privacy policy regarding the shar- Mr. GRAMM. Will the Senator yield Leach-Bliley eliminates the barriers ing of non-public personal information to me for just a moment? between banks, insurance companies, with both affiliates and third parties. Mr. HAGEL. Yes. security firms, and other financial in- The disclosure will take place when a Mr. GRAMM. I thank our dear col- stitutions. This will increase effi- consumer initially opens an account league from Nebraska for his leader- ciency, reduce costs, and increase inno- and annually thereafter. This is an im- ship on this bill. We have dramatically vation. American financial institutions portant tool for consumers to make an changed the Federal Home Loan Bank will be better able to compete inter- informed decision as to which financial system in this bill, and no one has had nationally under the new structures institutions they wish to patronize. more to do with that dramatic change contained in the conference report. Just as some consumers choose a bank than the Senator from Nebraska. I per- Through the passage of this bill, Con- based on the hours they are open or the sonally thank him for the leadership he gress will rightly reclaim the authority branch locations, those consumers for provided on that and many other issues to govern the structure of the financial whom privacy is a key issue can make in this bill. services industry. For a number of an informed decision based on a bank’s Mr. HAGEL. Mr. President, I am years, various regulators have been privacy policy. grateful for the chairman’s generous easing the statutory restrictions be- Financial institutions cannot share account numbers or access numbers, comments. After the Texas A&M and tween banking and commerce through except as required for consumer report- Nebraska game on Saturday, I may regulation. By passing a comprehensive ing agencies, for example, credit bu- never hear another generous comment bill addressing the appropriate rela- reaus. Consumers will receive an oppor- from him. tionship among banking, insurance, tunity to opt-out of information shar- The PRESIDING OFFICER. Who and securities, Congress will ensure ing programs. This means that gen- yields time? that the entire financial services indus- erally consumers can prohibit a bank With no Senator yielding time, time try is updated in a safe—and I would from sharing their non-public personal will be taken from the time reserved by add that safe is very important to me information with non-affiliated third all Senators who have reserved time on and other members of the committee parties. If any State law or regulation a proportionate basis. —and a consistent manner as compared provides greater consumer privacy pro- Mr. GRAMM addressed the Chair. to a patchwork of regulations. tections, then it shall remain in effect The PRESIDING OFFICER. The Sen- Congress has struggled for many for that state. This is an important ator from Texas is recognized. years with the best way in which to up- Mr. GRAMM. Mr. President, I begin provision. date the laws governing the financial Changes to the Federal Home Loan by thanking Senator ALLARD for his services industry. One reason we are fi- Bank system will update their capital leadership on this bill, for his strong nally poised to modernize the financial structure and expand access for small support, in committee, on the floor, services laws is the spirit of com- banks. This will be particularly bene- and in conference. I think we have a promise and inclusiveness embodied in ficial to the many small banks in Colo- good, strong bill that is what it is ad- the conference report. Chairman rado and other States. vertised as being, that is a bill which GRAMM, and others, made a particular One of the most controversial aspects promotes competition and benefits effort to listen to the concerns of the of the bill has been the Community Re- consumers, in large part because of the many industries involved and worked investment Act, or CRA. The bill clear- support Senator ALLARD provided closely with the administration. The ly does not repeal any part of the exist- throughout the process and the leader- conference report does a good job of ing CRA law, in fact it explicitly states ship he provided. balancing the many interests involved. that fact in the conference report. I yield 10 minutes to him at this I will now talk briefly about the The sunshine provision will finally time. structure within the bill. bring some oversight to CRA agree- The PRESIDING OFFICER. The dis- The structure of the new financial ments. For the first time ever, CRA tinguished Senator from Colorado is services regime is based on a com- agreements will be made public. The recognized for 10 minutes. promise between the Federal Reserve parties to the CRA agreement will also Mr. ALLARD. I thank the Chair. and Treasury. Bank holding companies have to disclose annually what hap- Mr. President, I thank the chairman will be able to engage in activities that pened to the cash and other resources for his very gracious remarks. It has are financial in nature, including in- that were part of the CRA agreement. been a pleasure to work with him on surance and securities underwriting Congress decided that community rein- this particular issue. He is extremely and merchant banking. Well capital- vestment was a priority when it passed knowledgeable, and it is because of his ized and well maintained national the initial CRA laws. This provision knowledge and persistence on this par- banks and insured State banks will be takes the next logical step and ensures ticular issue that I think we will pass able to engage in certain financial ac- that the cash and resources received by such a good bill. I compliment the tivities. Provisions will be enacted to a nongovernmental person or entity chairman in a public manner for the ensure that the new activities are un- are in fact used for community rein- yeoman’s work he has done and the dertaken in a prudent manner. vestment. great leadership he has shown on this The Federal Reserve is established as The Gramm-Leach-Bliley bill makes particular issue. It has been a par- the umbrella regulator with strong several modifications to the CRA ex- ticular pleasure for me to be able to functional regulation in all areas. This amination schedule in order to provide

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.014 pfrm13 PsN: S04PT1 S13878 CONGRESSIONAL RECORD — SENATE November 4, 1999 regulatory relief for small banks. It is ment out to us that could have dra- bankers will spend less time doing Fed- important to note, though, that the matically changed, complicated, or eral paper work and more time lending banks must still meet the same CRA contradicted the basic logic of this bill, in their neighborhoods, both rural and standards—this only changes the exam- Senator BUNNING stood like a rock in urban. I would have liked to do more to ination schedule. A small bank that re- opposition to making those changes. reduce the CRA burden on small banks ceived an outstanding rating in its last With his help and leadership, we were but we did the best we could. We were CRA exam will not receive another successful. I yield Senator BUNNING 10 also able to ensure that we protected CRA exam for five years. A small bank minutes. the small-town insurance salesmen and that received a satisfactory rating will The PRESIDING OFFICER. The dis- stockbrokers. We make sure that they not receive another CRA exam for four tinguished Senator from Kentucky is have a level playing field and will be years. This relief is important for recognized for 10 minutes. able to offer their customers more small banks, as the cost of regulatory Mr. BUNNING. I thank Chairman services at better prices. And we also compliance is disproportionately high GRAMM. dealt with a new issue that emerged in for them. The relatively high cost to Mr. President, this is an historic oc- recent months—the issue of privacy. I small banks for CRA compliance actu- casion, and I am very happy to be a know some of my colleagues believe ally leaves them with fewer resources part of it. Today we are going to fi- this bill is inadequate as far as the pro- to invest in their communities. The ex- nally, at long last, pass financial mod- visions on financial privacy go. amination schedule also makes sense ernization legislation that brings the I certainly understand their concerns because it will allow CRA compliance financial industry into the 20th cen- but this bill does give consumers fed- officers to focus time and resources on tury and prepares it for the 21st cen- eral privacy protection that they have those banks with compliance problems, tury. When I first came to Congress not previously enjoyed. Under provi- rather than the banks that are already nearly 13 years ago, this was one of the sions of this bill, consumers will be doing a good job. first major issues I worked on. I served able to opt-out of disclosure of their fi- The conference report also contains a on the Banking Committee in the nancial information to third parties. provision important for small banks—a House back then, and in 1988, we passed This bill does not go as far as some GAO study on changes to the S Cor- out of committee a financial mod- would like,—but it is a start and it poration rules for small banks. Sub- ernization bill. But that bill never does recognize the importance of the chapter S corporations do not pay cor- made it to the House floor. So it has privacy issue. Overall, I believe we porate income taxes—earnings are been a long process getting to this came to an agreement on a balanced passed through to the shareholders point. bill that creates a level playing field where income taxes are paid, elimi- There have been many times when I and enhances competition for the fi- nating the double taxation of corpora- did not believe we would ever make it. nancial industries. It protects the safe- tions. Congress previously made small But I am very happy to see this day ty and soundness of our financial insti- banks eligible for S Corporation status, come, and I am very proud to be a part tutions and gives consumers better however, many of the current rules of it. Those of us who served on this products at lower prices. make it difficult for them to qualify. I Conference Committee have labored to It is crucial that we do pass this strongly support efforts to change the bring a good bill to the floor today— a measure as we prepare to enter the new laws so that small banks are better conference report that knocks down millennium. In this new age of the able to qualify for S Corporation sta- barriers, gives consumers more options global marketplace our financial firms tus. I am hopeful that this GAO study and cheaper services, protects the little must be able to compete. This bill will will highlight the need for such guys, and provides regulatory relief. go a long way toward allowing them to changes. We have achieved all these goals in this compete, but not at the expense of our I will continue to push for those measure. There has never been a ques- local bankers, brokers, agents, and cus- changes in future Congresses. I have in- tion about the need to modernize our tomers. I urge my colleagues to vote troduced legislation in that regard. depression-era financial laws. If we ex- for it—it is a good bill. This is not under the jurisdiction of pect our financial industries to be able Finally, I would like to commend the Banking Committee, but the Fi- to compete in the world market in the Chairman GRAMM and his fine staff for nance Committee. I think it will be a next century, modernization of our all of their hard work. We certainly key part in allowing small banks to laws is essential. I think everyone has would not have this bill without Chair- move forward with their modernization recognized that all along. It was simply man GRAMM’s tireless efforts. He and efforts, in addition to this particular a question of finding a suitable blue- his staff spent countless hours com- bill. print for the modernization process pleting this bill which I believe will be I stand in strong support of this con- that everyone could find acceptable, passed with overwhelming bipartisan ference report. I stand in support of the and I think we accomplished that with support and will be signed by the Presi- bill. I think it is going to be a key this measure. Admittedly, along the dent. piece of legislation passed in this par- way this year, we had some big dif- Chairman GRAMM did an outstanding ticular Congress. ferences to work out. For instances, I job, and I thank everybody else on the I thank the chairman for allowing me was very happy the Federal Reserve conference committee and in the Sen- to participate in the process as much and the Department of Treasury were ate. I urge support of this bill and its as he did. I congratulate him on a job able to work out a compromise on the passage today. well done and encourage Members of Op-sub issue. I believe this compromise I yield the floor. the Senate to vote for this conference was essential to getting an agreement The PRESIDING OFFICER (Mr. AL- report. on the final bill and allowing us to fi- LARD). The Senator from Texas is rec- The PRESIDING OFFICER. Who nally repeal Glass-Steagall. ognized. yields time? We also wrestled long and hard on Mr. GRAMM. Mr. President, I thank Mr. GRAMM. Mr. President, I thank the Community Reinvestment Act pro- Senator BUNNING for his kind com- Senator ALLARD for his leadership and visions. In this bill today we bring ments. I will soon yield to Senator his kind remarks. much-needed sunshine to the CRA ENZI. I thank him for his leadership, In recognizing Senator BUNNING, let process and ensure that the money for all he did in helping us put together me say that he has played a very big which banks are sending to groups for a good bill to begin with, for the work role in this bill. He, in another era and low-income housing development, goes he did in understanding the bill and another profession, understood the for just that, low-income housing. what we were trying to achieve. meaning of hard ball, when it came We also give some much-needed regu- I have always believed that convic- time to throw the hard ball and to latory relief to small banks on CRA. tion is born of knowledge. It is hard to stand fast. We had many of those mo- These banks are already involved in be committed to something that you ments with this bill. As I noted yester- their communities. If they did not lend don’t understand. I think one of the day, when the House, to satisfy almost in their neighborhoods, they would not reasons we held together so well in get- any constituency, threw an amend- survive. With this provision, small ting this bill through committee and to

VerDate 29-OCT-99 01:54 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.016 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13879 the floor—through conference and fi- Again, with the leadership of the We are at a point now where we have nally here today, as we reach the goal chairman, Senator GRAMM, there was this conference report. I am convinced line—is all of those endless meetings some definite action taken that broke that it will be overwhelmingly adopted. we had in January and February to the deadlock of daily, deadly, external, I appreciate all the people who have talk about what it was we wanted to do lengthy comment sessions that didn’t put time and effort into it. and why it was important. If there is resolve anything. After a few days of This bill breaks down the barriers be- any person who didn’t miss a single one that, he again took charge of the proc- tween banks, insurance, and securities of those meetings, it is MIKE ENZI. ess and said we were going to get a firms. It allows them to affiliate and MIKE ENZI is a real doer. When you small working group of three people, engage in each other’s activities. have a hard job to do, you want to give and we were going to put together a It is fitting that our financial system it to him. I like giving him jobs be- compromise bill. I particularly con- be allowed to modernize as we enter cause he always does them. gratulate him for the compromise that the next century. I yield the Senator from Wyoming 10 was put in at that point. There were a As I mentioned, for over 20 years minutes. lot of people who were nervous and Congress has attempted to repeal these The PRESIDING OFFICER. The Sen- tense about having the three Repub- statutory barriers. These barriers have ator from Wyoming is recognized. lican chairmen involved get together only limited the ability of financial in- Mr. ENZI. Mr. President, I thank the and put together a compromise. There stitutions to offer a variety of services chairman for his extra kind comments. was worry about how much com- that their customers demand. Finan- I do rise to speak in favor of the con- promise there would be. I think every- cial services modernization will allow ference report that accompanies S. 900, body was pleasantly surprised at the one-stop shopping for consumers want- the Financial Services Modernization way it came out of that rewrite, and ing a variety of financial services— Act of 1999, which is also called the that rewrite turned out to be a tremen- banking, insurance, and securities—a Gramm–Leach-Bliley Act. I think there dous key to the process. Without that, sort of shopping mall for financial is good reason for it being so titled. we would never be at this point. needs. This will increase efficiency and Senator GRAMM has certainly taken I have to say this is the first time in increase competition which translates the lead on this. He is one of the most over 20 years that the House and the into more choices and lower prices for focused individuals I have ever run into Senate passed a bill in the same ses- American consumers. in my lifetime. When it comes to work- sion. So it is the first real opportunity This isn’t a big deregulation. This is ing a problem, he has a tremendous that there has been to conference it. an opportunity for people to compete memory of not only the things he has Then we had this huge conference com- evenly on the playing field. been involved in but the things he has mittee. The deadlock on that com- Some opposed to the bill have said read and studied up on for it, and he mittee was broken by the chairman they don’t believe it goes far enough to can recall those almost instanta- taking the focus and arranging this ensure the privacy of a person’s indi- neously. He has provided tremendous group and being extremely careful to vidual financial information. I have to leadership. I am convinced that with- include the different views in it, and say this bill will provide the strongest out that leadership we would not be at then having a process where we could privacy protection ever for Americans. this point on this bill. debate from that standpoint, taking It requires the financial institution to The senior Senator from Texas, the things out and putting things back in; clearly disclose their privacy policies. chairman of the Banking Committee, and, again, there were more committee The disclosure will guarantee cus- certainly deserves that first spot for meetings, more amendments sug- tomers the ability to see clearly the his name at the successful completion gested, more decisions made than I privacy policies of the institutions al- of this bill. Some of that credit, of have ever seen in a conference com- lowing them to take their business to course, has to go to his very capable mittee. another financial institution if they staff as well. He did line up some ex- I also have to compliment the chair- don’t approve of the way that they perts who had some tremendous capa- man because I remember sometimes could be or have been treated. It allows bilities, knowledge, background, and where he was negotiating some critical the market to adapt to the demands of ability to express themselves, to ex- additional amendments to this thing, the consumers instead of the market plain to others, and the ability to sell and he would leave the room and go adapting to government regulations. the program to each of the staffs who work with people to get some changes The market allows for changes in were involved in it, too. Without their or to explain why changes should not consumer preferences and behavior, dedication and involvement, and the be made. That is a very important part while rigid government regulations can hours they spent on it also, we would of the process, too, because we were easily cause unintended consequences. not be at this point. still working on a critical amendment I have to say that in every com- Of course, we have been through the in the committee. He would be able to mittee in the Senate in which we are conference process. I have been in the come back in from that external nego- involved, privacy is the big issue now. Senate 3 years now, and this has been tiation, step right in, and debate the We are debating that in every one of the most complete conference process reasons we needed to deal with or them. I am on the health sub- that I have seen. Part of the reason for shouldn’t deal with the issue that was committee of Health, Education, that is probably because of the makeup still on the table. It is an incredible Labor, and Pensions. We have been try- of that conference. The bill on the challenge. He did it extremely well. He ing to resolve the privacy issues there. House side was assigned to two com- kept the debate focused and moving It is amazing how complicated and mittees, and those committees had a forward so that we are at a point where difficult that can be. There are things deep desire to be involved in the proc- we have this conference report. we as consumers anticipate others ess. So we went through the House hav- I am pleased that the White House working in that business or in a busi- ing, first, 42 conferees, plus the entire made the comments publicly about this ness that we think is part of the busi- Senate Banking Committee; and then bill and where it is because it shows ness will know about us to expedite the there was an imbalance that had to be their understanding of the process and work that we are expecting. corrected. I thank the House for cor- the dedication that was put into the Consumer choice is the key. The pri- recting that. They did that by appoint- bill as well. vacy provisions in this bill also require ing four more people to the conference. I congratulate Senator SARBANES. He that any bank that is considering shar- So we wound up with 66 people on the has a very quiet negotiating style, a ing your information with an outside conference. I came from the Wyoming very unique one. It forces people to do company—a third party—allows you State Legislature, and our whole House maybe a little bit more than what they the ability to say no to that activity. in Wyoming doesn’t have that many would have done if they really under- This opt-out provision also gives the people in it. When they do a conference stood where he was coming from. He consumer power and choice. committee, it is much smaller. Small has played a critical role in this bill as I want to tell you, this bill benefits committees get more done. So it was well. I appreciate all the effort he has the small community financial institu- an incredibly huge, impossible task. put into it. tions. Coming from Wyoming, I have a

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.018 pfrm13 PsN: S04PT1 S13880 CONGRESSIONAL RECORD — SENATE November 4, 1999 particular interest in that. We have I consider an expansion of CRA since nancial services. It is essential we pass small community financial institu- the sunshine provision has been in- this bill. tions that are the heart of our finan- cluded. Since some groups are using The first issue is jobs, plain and sim- cial industry. It protects them just as the name of a federal law, the Commu- ple, hundreds of thousands—yes, mil- it benefits the large financial institu- nity Reinvestment Act, to receive lions—of high-paying jobs. I need not tions. It grants small banks the same monies from insured financial institu- tell the Senate how important this bill expanded authority granted to the tions, it is only appropriate that the has been to the financial capital of the larger institutions. It requires the Fed- Congress is able to see how that law is world, New York. eral banking agencies to use plain lan- being used. In sum, I believe this an ac- Second, it is important to consumers. guage. This will be one of the biggest ceptable compromise at this time. The years have shown the more com- things in the bill in their rulemaking I am pleased to support this con- petition, the better. This bill allows used to implement the bill. ference report and congratulate all who more competition by allowing many This plain language provision was in- have participated in it and encourage more firms to compete over similar cluded to ensure that small banks will my other colleagues to do the same. product lines. When a bank decides to not have to hire several lawyers to in- I yield the floor. go into the securities industry or a se- terpret the new rules resulting from I reserve the remainder of any time. curities firm decides to sell insurance, this legislation. The PRESIDING OFFICER. The Sen- they are looking for a competitive The Gramm-Leach-Bliley Act allows ator from New York. edge. They may well find it, they may small banks to access advances from Mr. SCHUMER. Mr. President, I not. However, the ability to have more the Federal Home Loan Bank System. thank Chairman GRAMM, Senator SAR- competition—which this bill creates— These advances could be used for small BANES, Chairman LEACH, Representa- is vital to consumers. This is a business and small farm lending, in ad- tive BLILEY, and all of my colleagues proconsumer bill. It is proconsumer for dition to housing. This will enable who have worked so long and hard on the same reason our system has pre- small banks to serve their commu- this legislation, with particular thanks dominated over all the others—com- nities comprehensively and provides to Senators DODD and EDWARDS who petition. them the liquidity they need to remain worked with us in the late night hours Jobs are an important reason for this competitive. Another priority of small to come up with a compromise that bill; consumer interests and competi- banks that has been included in the re- eventually helped get this bill passed. tion are an important reason for this port is the prohibition on the char- Mr. President, this is a historic mo- bill. tering of new unitary thrifts for comment. We have been working towards it Third, we have to keep up with mercial firms. The bill even prohibits for 18 years. It has taken 18 years for changing markets. When Glass- commercial firms that do not currently Congress to pass this bill. Steagall was passed, commercial banks control a thrift from buying an exist- When I first came to Congress, the dominated the financial landscape with ing thrift. Additionally, S. 900 provides issue was a narrow one: revenue bonds. 57 percent of all financial assets. Today further regulatory relief of the Com- Could banks underwrite revenue bonds? they have less than 25 percent. To look munity Reinvestment Act of 1977 for With technological change and at the world through that antiquated small banks. Those small banks under globalization, the issue has expanded spyglass and say we must keep com- $250 million in assets with an out- far beyond revenue bonds to an issue mercial banks from other areas be- standing CRA rating will be examined where the future of America’s domi- cause they may dominate is to look at for compliance only every 5 years, nance as the financial center of the a world that is 50 years old. Many while those with a satisfactory rating world is at stake. argue commercial banks are among the will be examined every four years. This bill is vital for the future of our weakest competitors when they are put Most agree that CRA is more of a pa- country. If we don’t pass this bill, we against not only securities firms and perwork burden for small banks than it could find London or Frankfurt or, electronic firms but mutual funds and is for large banks. I believe that small years down the road, Shanghai becom- pension funds. The third issue: We have banks and thrifts, by their very nature, ing the financial capital of the world. to move this bill to keep up with must be responsive to the needs of the That has grave implications for all of changing markets. entire communities they serve or they America where financial services is one Finally, we had to do it because oth- will not remain in business. That is the of the areas where jobs are growing the erwise the regulators were going topsy- sole source of their customers. most quickly, where our technology is turvy. We all know it does not make I am also pleased that the bill does way ahead of everyone else, where our good policy to have individual regu- not dismantle the dual banking sys- capital dominates the world. It would latory decisions make policy. That has tem—the Federal system—that has be a shame if, because Congress had been what has happened. Because of served us so well over the years. This been unable to act, all those advan- the necessities of technology and competitive regulatory system has tages were frittered away, as they well globalization, because of the changes in many times created innovations which could be, in a global world by our fail- financial markets, individual compa- were later allowed by the national ure to realize the problems our existing nies were going to the regulators and banking regulators. Under the dual antiquated laws cause. asking for special permission to do A, banking system, state legislatures de- There are many reasons for this bill. B, and C, and regulators were granting termine the powers allowed to their First and foremost is to ensure that it. Now we have an overall fabric. We state institutions. These powers are U.S. financial firms remain competi- have a law that will treat all compa- tailored to meet the economic needs of tive. As their international competi- nies equally, that will allow businesses, the states. An empowered state bank- tors, U.S. firms will be able to offer fi- either new or existing, to plan for the ing system is elemental to state eco- nancial services to complement their future, and will create a level playing nomic development. Included in the business models. Had we not done this, field. bill is a clarification that the FDIC’s 3 years from now, with new technology, There are many reasons to pass this authority and the State bank regu- we could find major U.S. companies bill. My goal, which I stated at the out- lator’s authority with respect to oper- leaving the United States and locating set, was to modernize financial services ating subsidiary powers is not rolled in other countries that had laws allow- but not take one step backward on back. ing these things. CRA. We have done that. The CRA pro- I recognize that this report is a col- I don’t know what the marketplace visions in the bill do not move things lection of compromises. These com- will yield. Will people want to buy all forward, but they do not take a single promises have not been easily their financial services from one com- step backward. In fact, as I have ar- achieved. Some of these compromises pany? Will it be online or with individ- gued to the groups in my State, they relate to the Community Reinvestment uals? We don’t know. We do know that will benefit from this legislation be- Act of 1977 (CRA). I do have concerns to close off one avenue of competition cause their leverage in the CRA process about this compromise on CRA. How- is the death knell for the future of a has always been when there are new ever, I am more willing to accept what country in that area—in this case, fi- mergers or new products that a bank

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.020 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13881 decides to add. This is going to in- ahead of the rest of the world. This will ADMINISTRATION OF OATH OF crease 10, 20 times. Every time the help maintain our lead. And it is a his- OFFICE groups are interested in CRA—one of toric day for those who have argued The VICE PRESIDENT. The Senator the most successful banking laws we that we need to keep CRA strong and designate will present himself at the have passed—they will have that lever- keep consumer protections in the bill. desk and take the oath of office. age. Instead of two or three opportuni- From Glass-Steagall to Gramm- Mr. CHAFEE, escorted by Mr. REED, ties a year, they will probably have Leach, from the Great Depression to advanced to the desk of the Vice Presi- two or three a month. I argue CRA the Golden Age, from isolationist to dent; the oath prescribed by law was groups are going to be so busy with all internationalist, from underdogs to administered to him by the Vice Presi- the new mergers and all the new serv- champions, this bill is an American dent, and he subscribed to the oath in ices that they may not have time to success story for our economy, for our the Official Oath Book. keep up. financial institutions, for our commu- The VICE PRESIDENT. Congratula- We accomplished a great deal. I nities and consumers, and for my State tions, Senator. thank the Senator from Maryland as of New York. I was proud to have [Applause, Senators rising.] well as the administration for making played a role with so many others in The VICE PRESIDENT. The majority sure we did not take a single step back- ensuring its passage. leader. ward on CRA. The PRESIDING OFFICER. The Sen- Mr. LOTT. Mr. President, I officially Sunshine provisions are in the bill. It ator from Maryland. welcome the new junior Senator from is very hard to argue against them. If I Mr. SARBANES. Mr. President, I the State of Rhode Island, Senator LIN- am for sunshine for business and for COLN CHAFEE. political people, including myself, how commend the Senator from New York for his statement. I underscore the I suggest the absence of a quorum. can we not be for sunshine even for The VICE PRESIDENT. The clerk positive and constructive role he groups we support and believe in? I will call the roll. played with respect to this legislation have no problem with the sunshine pro- The legislative clerk proceeded to throughout, and thank him for his con- vision. call the roll. tribution to this effort. We succeeded in CRA. We also suc- Mr. GRAMM. Mr. President, I ask ceeded in helping the consumer in Mr. GRAMM. Mr. President, we have unanimous consent that the order for terms of protections. already started assembling for the the quorum call be rescinded. Regarding ATM fees, I am proud swearing in. I suggest we move off the The PRESIDING OFFICER (Mr. AL- banks will be required to disclose any bill now for that purpose. LARD). Without objection, it is so or- and all charges for using an ATM be- The PRESIDING OFFICER. Without dered. fore a customer makes a decision to objection, it is so ordered. Mr. WARNER. Mr. President, this is withdraw funds. I fought for years for Mr. LOTT. Mr. President, I observe a historic day for America, for the Sen- this provision, first in the House with the absence of a quorum, but we will ate, for the citizens of Rhode Island, Representative ROUKEMA, and now in proceed momentarily. and for the family of the late Senator the Senate. It is in the bill. In addition, The PRESIDING OFFICER. The John Chafee. I ask unanimous consent there are privacy protections in the clerk will call the roll. now—and I am joined in this unani- bill. The legislative clerk proceeded to mous-consent request by Senator LIN- Does the bill go as far as I wish on call the roll. COLN CHAFEE, who was just sworn in as privacy? No. But privacy is a large and United States Senator for the State of Mr. LOTT. Mr. President, I ask unan- complicated issue. We don’t know what Rhode Island—that remarks given at imous consent that the order for the the balance ought to be between the his funeral by Senator Chafee’s son, quorum call be rescinded. ability of businesses to share informa- Zechariah Chafee, entitled ‘‘The Serv- tion and the right of the consumer to The VICE PRESIDENT. Without ob- ice of Thanksgiving for the Life of protect his or her information. In the jection, it is so ordered. John Chafee,’’ October 30, 1999, be Senate, we did not have a single hear- printed in the RECORD. ing on privacy. To restructure all of f There being no objection, the mate- privacy with huge numbers of unknown rial was ordered to be printed in the consequences on this bill made no CERTIFICATE OF ELECTION AND RECORD, as follows: sense. My goal, again, was, can we CREDENTIALS REFLECTION OF ZECHARIAH CHAFEE move forward? We have. Not as far as I (A Service of Thanksgiving for the Life of prefer or many prefer but certainly not The VICE PRESIDENT. The Chair lays before the Senate the credentials John Hubbard Chafee, October 30th, 1999) enough to sink a bill that has so many What a man! What a life! of LINCOLN D. CHAFEE, appointed a Sen- necessities. Come with me. Let us look at how he lived, Finally, safety and soundness. The ator by the Governor of the State of and what he was made of. John Chafee said one thing that has dominated my Rhode Island on November 2, 1999, to at times that the great shapers of his life thinking in this area is that we not re- represent said State in the Senate of were his parents, the Boy Scouts, his wres- peat an S&L crisis, and we not allow the United States until the vacancy in tling, the United States Marine Corps, the insured deposits to be used for risky the term ending January 3, 2001, caused U.S. Senate, and above all, his own family. by the death of the Honorable John H. From his parents, an upright Yankee, a vi- activities. I am proud to say the com- vacious Scot, he without a doubt drew his promise between Treasury and the Fed- Chafee, is filled by election as provided by law. graciousness toward me, women and children eral Reserve in the structure of the bill of all walks of life. From them as well came makes sure that when insured dollars The clerk will read the certificate. his decency and keen sense of the difference are used for anything that might be The legislative clerk read as follows: between right and wrong. As for the scouts, not only was he an in- slightly risky, the capital require- STATE OF RHODE ISLAND—CERTIFICATE OF dustrious member of a Providence troop as a ments and firewalls will make vir- ELECTION FOR UNEXPIRED TERM boy, but it seems he kept a scout handbook tually certain we will not repeat the To the President of the Senate of the United in his Senate office! Examining Article 8 of kind of S&L crisis we have had in the States: the Scout law of his day, one finds this stric- past. This is to certify that, pursuant to the ture: A scout smiles and whistles under all In conclusion, this is a historic day. power vested in me by the Constitution of difficulties! Is this how he came by his trade- It is a historic day for my State of New the United States and the laws of the State mark good cheer? York, which I am proud to say is the fi- of Rhode Island and Providence Plantations, I must say though that his skeptical chil- nancial capital of the world and, with I, Lincoln C. Almond, the Governor of Rhode dren had some problem reconciling the cau- this bill, has a much greater likelihood Island, do hereby appoint Lincoln D. Chafee, tionary scout motto ‘‘be prepared,’’ with my a Senator from Rhode Island to represent it father’s brisk assertion. ‘‘It will all work of remaining so. It is a historic day for in the Senate of the United States until the out, stick with me—here we go!’’ modernizing one of the most important vacancy therein, caused by the death of Sen- But with him in charge, it usually did industries in America where we are ator John H. Chafee, is filled by election as work out—and even if it did not, it was still technologically and entrepreneurially provided by law. fun!

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.022 pfrm13 PsN: S04PT1 S13882 CONGRESSIONAL RECORD — SENATE November 4, 1999 At the Providence Country Day school, he I know he’ll hear it! At war’s end, my fa- Stand beside him in the crowd, at the fence began his wrestling career, which he ther completed his studies at Yale Law and of the horse show ring, as my sister Tribbie furthered at Yale when he captained the went off to Harvard Law. About that time, a canters in on her lovely pony, Puck. Girl and freshmen team. Wrestling called forth the cousin described for him, a trio of lovely sis- pony flow round the ring and ripple over the qualities, so many of you have come to ters from Long Island’s north shore. The jumps. They’ll take the state championship know. The tenacity, the willingness to give Coates girls! that day. it his all. ‘‘Save one for me,’’ he urged. Now see him at the helm of Windway as she The sheer love of the contest. The will to It took a bit of a chase, but in November of runs before a slight southwesterly off victory and the confidence that goes with it. 1950, Ginny Coates, in white veil and gown, Beavertail. He tosses a long line astern. His Remember, that on the wrestling mat, it’s stepped toward him down the church’s aisle. children dive and clutch it, shooting along one man’s struggle with another. There are She has been the beating heart of our family, behind the boat like mini torpedoes. no excuses. But just as important to note— the sustainer of her man and her children Have a seat now at the big dinner table at there was a team—and he was the captain. ever since. Stonecroft, his summer house on the coast of My father found legal practice in Provi- The man to who others looked—the inspirer, Maine. Listen, as he polls the table, ques- dence stifling. So in 1951 there came a tele- the leader. tioning one by one his happy guests on the gram from the Corps, recalling him to com- Following Yale, he went on to wrestle issues of the day. bat duty in Korea. He kicked his heels to- AAU. Now, some time when you’re riffling ‘‘What’s your position on the flag burning gether and whooped! It was as Commanding through your back issues of ‘‘Body Builder’’ Officer of Dog Company, 2nd Battalion, 7th amendment? Should we give up the magazine, circa 1948, you might look up his Marines that Chafee came into his own. Lt. Pananama Canal?’’ And more recently, citation as an All-American wrestler. And James Brady in his memoirs. The Coldest ‘‘what would you do with the budget sur- when you next pass through Stillwater, War, had this to say. plus?’’ Oklahoma, drop in at the National Wrestling ‘‘You learned from men like Chafee, a Doesn’t he make you think? Hall of Fame. You’ll find his picture on the Yalie with a law degree from Harvard, who It’s a summer morn’ in Maine. The day’s wall. came from money, a handsome, patrician still cool from the night before. There he is It has been said that as a boy, Johnny man, physically courageous and tireless. over by the flagpole, the banner in his hand. Chafee had a poster in his room featuring a From all that could have come arrogance, See that cluster of small children by his jut-jawed marine on the move, rifle in hand snobbery. He possessed neither of those side—some towheaded, some dark? His and bearing the legend ‘‘US Marines—First traits; he was only calm and vigorous, and grandchildren! Little hands reach up to tug to Fight.’’ efficient, usually cheerful, decent and hu- the line—little faces look aloft. It’s up! The December 7th, 1941 gave Chafee that mane, a good man, a fine officer.’’ Stars and Stripes float on the morning air! chance. He left Yale and headed for Parris Is- Following combat in Korea, Chafee jumped See him now on the summer deck of the land. As the new recruits arrived and stepped into Rhode Island politics and won a seat in two room cabin with the wood stove, where down a company street in the soft southern the Rhode Island legislature. Also in the he and mother live when they’re back in night, from the windows of the surrounding space of the next 10 years, he fathered six Rhode Island. barracks came the jeering call—‘‘You’ll be children. Now one might observe that for a It’s evening, the sun sweeps low over the sorry! You’ll be sorry!’’ Protestant with political hopes in the most meadows on the far side of the river. The air But he never was. heavily Catholic state in the country, it did is still, the tide is high. Egrets hunt along Look at a globe someday. Run your finger not hurt to ‘‘get with the program.’’ the marshy shallows. Ginny has brought northeast from the upper shoulder of Aus- In 1962, and at age 39, he pitched his hat in cheese and crackers to the table. A bourbon tralia in the Solomon Island chain and you’ll the ring for Governor, running as a Repub- glows amber in his glass. find the Island of Guadalcanal. lican in a state with the highest percentage They speak easily together, bound by the Here on August 7th, 1942, 19 year old pri- of Democrats in the nation. Now that’s opti- love of nearly fifty years. vate first class John Chafee waded to shore mism! In closing, as I look out on our President with the first marine division. It was Amer- See if you recognize some familiar quali- and upon John Chafee’s many Senate friends, ica’s first step on the long, lethal ladder that ties in the Providence Sunday Journal en- I recall a large color photograph on my fa- would lead to Tokyo. You recalled the story dorsement of John Chafee for governor 37 ther’s office wall. In it, Senator Dole, eyes of the battle—how the Navy fleet, supporting years ago. twinkling, cracks a joke as President Marines, weighed anchor and sailed over the ‘‘He has been demonstrating an awareness Reagan, John Chafee and Senator Alan horizon, leaving the division alone in far off that government belongs to the people—not Simpson bend an ear, amusement alight on hostile seas. the politicians. He has been modest in his their faces. The world watched an wondered about the claims. He has been careful and honest in After the event, my father obtained a copy fate of the Marines. The world need not have taking positions. He has brought fresh think- of the photo, and at a later meeting with the doubted, as my father once explained, ‘‘In ing to old problems. He has been unassuming President, slid it down the table towards him the foxholes at night, on the jungle patrols in his presentations, in that he neither hec- and asked him if he’d sign it. and in the roar of battle, what bound these tors nor lectures.’’ Without missing a beat, Reagan penned a men together—what drove them on, was not Some things never change. line and slid it back. patriotic zeal, but rather the confidence that If they missed anything, it was his cy- It read simply, ‘‘John—Some time it is fun, they were all Marines. That the man to the clonic energy and his political courage. isn’t it?’’ Those qualities would be quickly revealed. left, the man to the right was a U.S. Marine. Some time it is fun, isn’t it? Chafee would win his race by a mere 398 My father said that in that far perimeter, far Dad, when you were around, it sure was. votes out a total of 327,506 votes cast. Now, from any help, he had no doubt that the Ma- at the Duke of Wellington once confided Mr. WARNER. Mr. President, I want rines would prevail, come what may. That after the battle of Waterloo, ‘‘It was a damn to read the first paragraph of the state- was that famous ‘‘esprit de corps’’—and he close run thing.’’ ment given by Zechariah Chafee: would carry it with him for the rest of his John Chafee hit the Governor’s office with life. What a man. What a life. Come with me. the force of a gale. Let us look at how he lived and what he was He lived by the teachings of the Corps. He saw government as a way we work to- made of. John Chafee said at times that the Leadership by example. Self-discipline. The gether, to meet the needs and solve the prob- great shapers of his life were his parents, the knowledge that success often requires audac- lems of our common lives. And he was only Boy Scouts, his wrestling, the United States ity and risk. The conviction that when given too happy to lead the way. a mission—no matter how disagreeable—one In the many tributes of the last few days, Marine Corps, the United States Senate and, doesn’t complain or delay, but gets started you’ve read and heard of his achievements. above all, his own family. and presses on ’til the end. He loved the job and made it great fund for Mr. President, I yield the floor. There are other qualities as well. With those around him of all ages. He governed The PRESIDING OFFICER. The Sen- John Chafee the phrase ‘‘Gung-Ho’’ leaps to exuberantly. For instance, he delighted in di- ator from Rhode Island. mind. My dictionary defines this as ex- recting his pilot to give visiting school chil- Mr. REED. May I be recognized for 2 tremely enthusiastic and dedicated, but goes dren rides in the official state helicopter. minutes? on to note that this World War II Marine This lead to complaints by a scrooge in state Corps motto derives from a Chinese word government. There then appeared in the The PRESIDING OFFICER. Without meaning ‘‘work together’’. paper a cartoon, which hangs today on my objection, it is so ordered. Work together. parents wall at home. Mr. REED. Mr. President, I thank Wasn’t that motto a guiding light for my In it, the angry official shakes his hand and commend the Senator from Vir- father’s entire public service? skyward, where a helicopter buzzes merry ginia for his very thoughtful introduc- Once a Marine always a Marine. children hanging from skids and doors, and a tion of those remarks. Like so many in In a few minutes, as John Chafee’s mortal gleeful John Chafee—big chin magnified— our body, we were in that church. Zech remains are carried from this church, the happily manning the controls. organ will sound the triumphant cords of the Before we lay him to rest, I know my fa- Chafee’s words rang so true—the clar- Marine Corps Hymn. ther would love it if I just described a few ion call about his father, his service to From heaven . . . he will be listening. scenes from his family’s life together. this great Nation.

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.005 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13883

Also, I join Senator WARNER in saying the ranking member of the com- affect recently passed consumer pro- ing this is a very proud day for the mittee, Senator SARBANES of Mary- tection legislation in my home state of Chafee family. They are proud of the land, who was actively involved—I North Carolina. accomplishments of Senator John H. have to note, with a lot of appreciation North Carolina is a leading state in Chafee and proud of the commitment and gratitude, the tremendous leader- the financial services world on several to public service of Lincoln Chafee. I ship of the Senator from Texas. I don’t fronts. We are home to some of the am pleased and proud to join my col- think he can probably ever replicate largest banks in the country. We are league from Virginia in this request. I this effort again. So I think that at home to some of the strongest and yield the floor. this time we should express our appre- most innovative community develop- The PRESIDING OFFICER. The ma- ciation because it is a monumental ment groups in the country. We see, jority leader. achievement. every day, how well these players work f I yield the floor. with one another to provide convenient The PRESIDING OFFICER (Mr. FITZ- banking services to all North Caro- FINANCIAL SERVICES MODERNIZA- GERALD). The Senator from Texas. linians. TION ACT OF 1999—CONFERENCE Mr. GRAMM. Mr. President, I appre- North Carolina is also a leader in REPORT—Continued ciate that. I know it is going to cost consumer protections. Our state Gen- Mr. LOTT. Mr. President, let me just me something big, but I am very grate- eral Assembly recently passed two im- take a moment at this time, if the Sen- ful for it. As I said last night, one of portant pieces of consumer legislation ator would allow me. the reasons we were successful, one of that had broad support. First, the Gen- When the history is written of this the reasons this bill is as good as it is, eral Assembly passed legislation that will require Blue Cross/Blue Shield of session of Congress, it will probably is that I have had the very strong sup- North Carolina—a non-profit—to cre- identify this piece of legislation as the port of TRENT LOTT and our leadership. ate a public trust to help fund public single biggest achievement. I have Having their support is like having a health expenses in the event it con- heard this financial services mod- stone wall to your back in a gun fight: ernization issue discussed for my entire verts to for-profit status. Its rationale You can still get killed, but nobody is was simple. A company should not be career in the Congress, which is now up going to shoot you in the back. That to 27 years. It has been tried by Repub- able to use its not-for-profit status—a has been very beneficial. TRENT LOTT’s government granted exemption from licans, by Democrats in the Congress, willingness to say we are going to fol- taxation—to build market dominance House and Senate, administrations of low this path, whether it leads us to and then convert to for-profit status. both parties. It never quite occurred. success or failure, is really what has I think it is appropriate we commend In that situation, the not-for-profit led us to success. status would have acted as a govern- all of those who have been involved in I appreciate those kind comments ment subsidy, and conversion should this process for bringing us to this mo- and yield the floor. not be allowed without some form of ment. This legislation is going to pass Mr. SARBANES addressed the Chair. assessment for the subsidy. This legis- overwhelmingly. It is going to bring us The PRESIDING OFFICER. The Sen- lation had bipartisan support and was into the modern era of financial serv- ator from Maryland. agreed to by all parties. ices. It is going to allow us to be more Mr. SARBANES. Mr. President, are Throughout consideration of finan- equally competitive around the world. we back on the bill? cial modernization legislation, I have I think we should properly note what The PRESIDING OFFICER. We are steadfastly supported language that has happened. If today’s papers are any back on the bill. will protect this law from possible fed- indication, we passed major trade leg- Mr. SARBANES. I yield 10 minutes of eral preemption. The conference report islation yesterday and it didn’t even my time to the distinguished Senator accompanying the legislation indicates make the first section of one of the pa- from North Carolina. that this type of law is not of the sort pers in this city; it wound up in the The PRESIDING OFFICER. The Sen- for which federal preemption would business section. It was hardly noted, ator from North Carolina is recognized. come into play. Specifically, the report the effort that was put into passing Mr. EDWARDS. Mr. President, I rise noted that ‘‘[t]he House receded on its that major free trade legislation. I today in support of the Gramm-Leach- provision specifically addressing a hope that will not be the case with this Bliley Act. This legislation is of crit- North Carolina Blue Cross-Blue Shield major legislation. ical importance to America and will organization, as the State laws gov- So for all those involved—I won’t benefit our nation’s financial services erning those types of entities would begin at the top and go to the bottom— companies and American consumers. not be preempted so long as the State obviously Secretary Rubin was in- Quite simply, I believe it helps pave laws do not discriminate . . .’’. Because volved in earlier discussions; Alan the way to our continued economic the North Carolina law places a re- Greenspan was involved; Secretary prosperity. quirement on Blue Cross/Blue Shield of Summers has been involved. The ad- This legislation will ensure stronger North Carolina regardless of any pos- ministration did stay engaged when consumer protections in the rapidly sible affiliation, it treats identically they could have said we are not going changing and consolidating world of fi- all interested parties seeking to affil- to talk anymore. Leaders in both the nancial services. The legislation is im- iate or acquire. A bank that might House and the Senate, the elected lead- portant to consumers, because the in- want to acquire Blue Cross/Blue Shield ership, Democrats and Republicans on dustry is already changing dramati- must comply with the law in the same both sides of the aisle, on both sides of cally, but through regulatory way as a car dealership, or any other the Capitol worked to make this hap- backdoors and without much-needed potential acquirer, would. Therefore, it pen. consumer protections. Banks, securi- is impossible to argue that the law is Let me say for the record—I know, ties firms, and insurance companies— in any way discriminatory. because I watched it very carefully and historically separated from one an- The other critical piece of legislation had some meetings which, I think, other—have already started engaging is a recently passed law that prohibits helped give it some momentum, some in each others’ business, and there the financing of products like credit in- impetus—it would not be where it is have been no affirmative protections in surance in home mortgages. In recent today, it would not have been achieved, place for the nation’s consumers. This years, including credit insurance costs without the leadership of the senior law rectifies that situation. in the mortgage was a favorite tactic Senator from Texas, Mr. GRAMM. He I do have some concerns with certain of some predatory institutions—a tac- has done a masterful job. Many people sections regarding federal preemption tic that ultimately cost consumers said: It won’t happen. Many people of state laws that I hope to clarify. thousands of dollars. North Carolina is said: He will kill it. I kept saying: No; Throughout consideration of this legis- a leader in making sure its residents you wait. He will make this happen lation—S. 900, H.R. 10, and the chair- are protected from predatory lending through thick or thin. It will get done. men’s mark—I have worked with my and financing practice, predominant It is being done. To take nothing colleagues to make sure that the final over what may be weaker federal away from all those involved—includ- language of the bill does not adversely standards or laws.

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.065 pfrm13 PsN: S04PT1 S13884 CONGRESSIONAL RECORD — SENATE November 4, 1999 The State of North Carolina enacted We require financial institutions to cial information and ensure the contin- this law on July 22, 1999. The law, have a privacy policy—and we require ued application of the Community Re- among other things, regulates mort- that this policy is explained to all the investment Act. We have a good bill gage financing and what non-housing institution’s customers. We also in- here, and I strongly support it. products may be included. For exam- cluded an important provision that To elaborate, this is a bill that has ple, it bars the lump sum financing of makes it a Federal crime—punishable been long overdue. There are those who credit insurance premiums in consumer by up to 5 years in prison—to obtain have been toiling in the vineyards with home loans. The law was intended to customer information through fraudu- respect to this bill for a very long time. regulate mortgages and to prevent a lent or deceptive means. I myself Financial services modernization is potentially misleading form of home would have supported even more pri- well recognized throughout the Senate lending. It does not prevent credit in- vacy protection. I am confident that in as something that is desperately need- surance from being provided for home the next few years, we will be forced to ed. If done the right way, which I be- loans on a monthly basis, but merely deal with this problem more com- lieve this bill accomplished, it is help- cuts off financing the premiums up- prehensively. ful to consumers. It will provide a more front since the state General Assembly Finally, I would like to say a few competitive market, greater competi- determined that such financing is fun- things about the Community Reinvest- tion, and one-stop shopping for con- damentally unfair. Congress does not ment Act. I struggled long and hard sumers of financial services. It will intend to preempt this law in the with the CRA provisions included in also help provide a coherent legal Gramm-Leach-Bliley Act. this law, because CRA is so important framework for the operation of the fi- I believe that this North Carolina law to North Carolina and to me person- nancial services industry in this coun- regulates mortgage financing and does ally. I wanted to be able to support this try. not target the ability of an insured de- bill, but I would have refused to do so A lot of the things we are doing offi- pository to sell insurance products. if I believed that CRA was undermined. cially and legally through this bill The focus of my state’s legislature was I have seen first hand the amazing ben- have been done through the back door on mortgages and efforts to shoehorn efits—to banks and to consumers—that for years because of the fact that the other products into the cost of the have resulted from CRA. financial services industry has changed mortgage. The legislature would have North Carolina banks represent some so much in this country over the last 20 acted the same way if mortgage lenders of the biggest and best CRA success to 30 years. The one position we, on my had been attempting to include lump stories, and I know from talking to side, felt most strongly about was, sum financing of moving expenses or a bankers that they work well with com- while we believed in financial services new TV. However, if it were determined munity groups to make sure all neigh- modernization and supported it—and I that the law concerns insurance sales borhoods are served. I spoke with sev- wholeheartedly held that belief—it was activities, this Act still would not pre- eral North Carolina community group critical that we be able to maintain the empt the North Carolina provision. At leaders about the compromise we provisions of the Community Reinvest- most, the North Carolina law regulates worked out, and while I know it wasn’t ment Act, or CRA, because CRA has how credit insurance is sold—the prohi- their ideal, I believe that they recog- done so much good in this country. It bition on financing credit insurance nize how much effort went into pro- has done so much good in my home premiums cuts off one avenue of sale tecting CRA. Most importantly, I want State of North Carolina to help revi- while leaving all other avenues open. to make sure that everyone knows that talize chronically economically dis- As Section 104(d)(2) of the Act states, before a bank can even benefit from advantaged areas, turned neighbor- such laws are not preempted unless the new powers under this legislation, hoods around that were crime infested. they ‘‘prevent or significantly interfere it must have at least a ‘‘satisfactory’’ It has been an extraordinarily positive with the activities of depository insti- CRA record. And, if it doesn’t maintain thing, something the banks in my tutions or their affiliates.’’ The North at least a ‘‘satisfactory’’ rating, that State of North Carolina strongly sup- Carolina law does neither. Banks may bank can’t buy any other financial port, always have supported, and con- still sell credit insurance in connection firm until it gets its rating back up. tinue to support. with mortgages, only one sale tech- What this means for CRA, and for The one other issue is that of pri- nique is foreclosed. those who actively support its goals, is vacy. We made some positive steps In addition to the two consumer pro- that the commitments banks make to with respect to privacy. Since essen- tection matters I just mentioned, I serving their communities will con- tially there was very little regulation wanted to say a few words about the tinue to be of paramount importance of people’s personal privacy in existing privacy provisions in this legislation. A to their daily business. law, we made a positive step in that di- great deal of debate centered on per- However, I do worry about some of rection. But there is probably still ad- sonal financial information and the the reporting burdens being imposed on ditional work to do in that area. way banks, securities firms and insur- CRA groups by this measure. In the Let me talk, again, about the Com- ance companies may use that informa- last few days, these reporting require- munity Reinvestment Act, which is the tion. Privacy in financial services is an ments have been the subject of numer- foundation for us being able to get a extremely complex issue because what ous talks between committee members bill. The Community Reinvestment Act one person may view as an invasion of and the Treasury Department. Because has had such an extraordinarily posi- privacy, another might appreciate as a these requirements are a new idea—the tive impact on areas of our country timely and appropriate offering of a provision was added to S. 900 during that desperately needed financial sup- much-needed service. I think it is im- floor debate—we have been careful to port. The bedrock principle in our ne- portant to realize that the issue of pro- make sure that the language is clear gotiations on this legislation was that tecting personal privacy is not limited that the provision will not impose no bank should be allowed to take ad- to the financial services world. In our undue burdens on community groups. I vantage of the expanded services avail- meetings, we also spoke of privacy of fear that unless provisions of this bill able under this bill unless they had a medical information. The news is full are narrowly interpreted, they could satisfactory CRA rating. As a result of of stories of other companies—grocery provoke a kind of regulatory witch much discussion and negotiation be- stores, toy makers, appliance stores, hunt. But I am confident that the spir- tween the parties involved in this bill, telephone companies and others—that it of this bill is to diminish regulatory we have been able to accomplish that. are creating massive databases of cus- burdens and that all provisions in this I believe we have done what needed to tomer information to be used for mar- law must be interpreted in that light. be done to maintain the fundamental keting products and services. And so we find ourselves at a truly principle of CRA. In this legislation, we have given cus- historic moment. We are about to pass In addition, we have been able to pro- tomers the opportunity to decide legislation that will modernize our na- vide that no bank can acquire or merge whether or not they want to let their tion’s financial laws, increase competi- with another institution unless it has financial institution share their per- tion, increase options for consumers, at least a satisfactory CRA rating. We sonal information with a third party. decrease costs, protect personal finan- worked very hard to make sure that

VerDate 29-OCT-99 02:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.027 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13885 principle remained in place. After many who worked long and tirelessly will allow for one-stop shopping for much discussion and negotiation, after on this bill: First, Senator SARBANES, folks who want to go to one place and the bill passed the Senate over the ob- our ranking member, who has been one have all their financial services pro- jection of a number of us because we of my mentors in my 10 months here in vided, and it makes positive steps in believed it weakened CRA, in the con- the Senate, who is a remarkable leader; the area of privacy, although there is ference committee and in the discus- he has shown remarkable leadership still work left to be done. sions we were able to get this principle and guidance on this bill. Also, Senator Also, most fundamentally, it protects reinstated. We have done the most fun- SARBANES’ extraordinary staff, Steve the critical principles of the Commu- damental thing that had to be done in Harris and Marty Gruenberg, who are nity Reinvestment Act, which has been order to get a bill, which is to make both wonderful, have worked with us such a positive law in this country and sure CRA was in place, that it re- throughout this process. This could not has had such an extraordinarily posi- mained vibrant and strong, and that no have been done without their work and tive impact on my home State. I have bank could take advantage of the pro- guidance. Also, my friends, Senator seen neighborhoods that have literally visions of these expanded services DODD, Senator SCHUMER, and Senator been turned around by CRA, the Com- available under this bill unless they REID, who, along with Senator SAR- munity Reinvestment Act. Because of had a satisfactory CRA rating. BANES, were in that small room with the work and negotiation that went I believe in CRA. I think it is an ex- me late into the evening negotiating into this legislation, I believe we have traordinarily positive thing for the the provisions of the CRA, which even- satisfied the fundamental principles of country. The banks in my State believe tually were contained in this legisla- CRA. in it. They have done a wonderful job tion and without which there would be Mr. President, I urge colleagues to complying with the provisions of CRA. no bill. They all worked tirelessly— support and vote for this conference re- We have been able, through hard work Senators DODD, SCHUMER, REID, and port. It is the result of a lot of hard and negotiation, to maintain those SARBANES—late into the evening, and work by a lot of people and a lot of critical provisions of CRA in this bill. we were able, finally, to reach a rea- compromises. This bill also contains some positive sonable compromise. But it could not With that, I yield the floor. The PRESIDING OFFICER. The Sen- steps in the area of privacy. We had, as have been done without the leadership I indicated earlier, very little protec- ator from Maryland is recognized. of all of those Senators. Mr. SARBANES. Mr. President, be- tion for people’s personal financial Senators SHELBY and BRYAN worked fore yielding to the Senator from Con- records in banking and financial insti- very hard on the issue of privacy. necticut, I acknowledge and express tutions prior to the enactment of this Philosophically, and in my heart, I am bill. Assuming we are able to pass this my deep appreciation to the Senator with them on that issue. I think we from North Carolina for his very posi- conference report today, there will be have made positive steps in the area of some positive steps in that direction. tive and constructive contributions privacy. Senators SHELBY and BRYAN throughout the process of developing The reality is, though, there are a are fundamentally right that the number of us, myself included, who be- this legislation. He really made a very American people deserve and believe important difference in helping to get lieve we need to go further, that there they deserve the right to have their is more that needs to be done to pro- us through some satisfactory resolu- personal financial information pro- tions of some difficult questions. I am tect people’s privacy. tected. They showed great leadership Folks have a fundamental right to very appreciative to him. in that area. Senators JOHNSON, know what is happening with their per- Mr. President, I yield 15 minutes to KERREY, and BAYH, throughout this sonal financial information and to the Senator from Connecticut. process, have worked with us very long know it is not being used in inappro- The PRESIDING OFFICER. The Sen- and hard, and without their support priate ways. ator from Connecticut is recognized. This bill takes a positive step in that this legislation would not have been Mr. DODD. Mr. President, I thank direction. I think for that reason it possible. the Chair and I thank my colleague makes sense to support the bill. How- Finally, I mention our chairman, and ranking member of the Banking ever, I believe there is more work that Senator GRAMM, beside whom I had oc- Committee. needs to be done in this area. Many of casion to sit for many hours on that I rise today, as well, in strong sup- us on our side, including the ranking Thursday night and Friday morning port of this very historic conference re- when we were able to finally reach member, Senator SARBANES, believe port accompanying S. 900, which I be- there is more to be done in this area. agreement on this bill. Without his lieve will receive strong bipartisan sup- Financial modernization, as con- hard work and leadership and willing- port by Members of this body as well as tained in this bill, will also help ensure ness to compromise and negotiate, ulti- in the House and will be signed into continued economic growth in this mately, this bill would not exist. The law by President Clinton. country. The reason for that is that majority leader is right in that respect. Nearly 70 years ago, the Glass- now our banks, our financial institu- So I applaud him for his work on this Steagall Act, which provided the foun- tions in this country, will be able to bill, and I applaud him particularly for dation for separating domestic bank- compete in the global marketplace be- his willingness to compromise, to nego- ing, securities, and insurance activi- cause our financial institutions have tiate, and to have a back-and-forth dis- ties, was enacted into law. Advances in operated for many years now under cussion with those of us who had some- technology, the change in our Nation’s rules that were antiquated, which in what different views on issues such as capital markets, and the very fast- this environment and marketplace CRA privacy. growing globalization of financial serv- made no sense, and with which foreign Finally, to Chairmen LEACH and BLI- ices have demanded that we as a legis- competitors, who also do business in LEY and ranking members LAFALCE lative body examine and make some the United States, didn’t have to com- and DINGELL, who did great work changes to our financial laws to accom- ply. With continued prosperity and throughout this process, including that modate and to take into consideration growth so important in our country, it late-evening meeting that went to 2:30 these dramatic changes that have oc- was important that we be able to have or 3 o’clock in the morning; and Sec- curred. Making these changes has not modernization in the financial services retary Summers and members of the been easy. The task of creating a new industry. This bill accomplishes that. Treasury Department who were in that regulatory framework that strengthens It will be good, as I indicated, not room working tirelessly with us, par- consumer protections and, at the same only for domestic competition, to ticularly to iron out some of the de- time, fosters market efficiencies and allow banks to compete with one an- tails associated with the compromises industry innovations has been ex- other and, as a result, lower costs for that were reached that night. tremely difficult. Endless hours, days, consumers, but it also allows our banks I do believe this is a historic piece of weeks, and years of negotiations have to compete internationally, which is legislation. I think it is a piece of leg- been spent to craft legislation to allow critically important. islation that benefits consumers; it our Nation’s financial services indus- Finally, I thank those who worked so will increase competition in this countries to remain leaders in the global long and hard on this bill. There are try; it will lower prices. I believe it marketplace.

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.029 pfrm13 PsN: S04PT1 S13886 CONGRESSIONAL RECORD — SENATE November 4, 1999 I have been a member of the Senate literally millions of people here at With the rapid change in our finan- Banking Committee since the first day home. cial markets, this legislation ensures I was sworn into the Senate, almost 19 This legislation also provides signifi- that investors remain protected, which years ago. I think this effort dates to cant benefits and protections to inves- is fundamentally a critical area to all about 1967 or 1968, more than 30 years tors and financial services consumers of us. ago. This has been an ongoing debate who will not only benefit from the Another area that needs improve- and issue on the part of the Banking competition of these diversified firms, ment is the protection of consumer pri- Committees of the Senate and the but who will also benefit from stand- vacy. We did not go far enough, in my House, the Commerce Committee, and ardized and comprehensive protections view, in this bill in doing that. There numerous efforts at the executive for the sale of financial products. were some steps made that are cer- branch level. But certainly over the There are a number of aspects of this tainly an improvement over the status last 20 years, on numerous occasions, conference report that I would like to quo. But I believe far more action is this body has enacted reforms to finan- touch upon very briefly. necessary in this area than incor- cial services only to watch the legisla- Critical to my support—and I think porated in this bill. tion die either in conference or be un- many others—of any financial services This legislation contains some im- able to reach a final consideration on modernization legislation was ensuring portant privacy protections. For the the floor of the Senate. that banks continue to invest in the first time, financial institutions must So I speak today on behalf of a lot of communities in which they serve. disclose to consumers their intent to people who have come before us. I I have often stated that if the price share or sell personal financial infor- think of people such as Senator Don of modernizing our financial services mation to anyone. Although stronger Riegle of Michigan, who worked very industry would be to deny fair access of provisions which I have supported hard on this; Senator Jake Garn; Wil- credit to those who need it the most, I along with many others were not ap- was not willing to pay that price, nor liam Proxmire, the first chairman I proved by the conference, I believe that do I think many others would. served under on the Banking Com- we have sent a strong signal to the in- This legislation before us not only mittee. They all labored hard to try to preserves current investment in our dustry about the use of sensitive con- come up with a means by which we communities, but it actually strength- sumer information. I happen to believe might modernize these services. Cer- ens both the intent and the practical that consumers not only have the right tainly, those who predated those Mem- effect of the Community Reinvestment to know, but also have a right to say bers I mentioned worked diligently Act. no to the sharing of their personal fi- over the years to try to see if they Under this legislation, CRA will con- nancial information with anybody. could modernize these financial serv- tinue to apply to all banks regardless This erosion of the privacy of our most ices to accommodate the efficiencies of size or location, without exception. personal, sensitive financial informa- and demands of the end of the 20th cen- Additionally, this legislation will tion can and must be stopped. tury. We begin, in about 60 days, a new guarantee that no bank with an unsat- I hope the privacy provisions con- millennium, where already the ability isfactory CRA rating can engage in any tained in this bill will be an important to transact financial business on a new financial activities of insurance or first step to ensuring and addressing global basis can be done in nanoseconds securities. this critically important issue. around the globe—a far cry from where This is fundamentally an important I am a coauthor along with the rank- we were 3 years ago when this effort change. For the first time, a bank’s ing Democrat of this committee, Sen- first began to try to address some of CRA rating will be a consideration if it ator SARBANES, and others of the Fi- the realities that had overtaken the attempts to engage in new financial ac- nancial Information Privacy Act, S. Glass-Steagall Act, as sound a piece of tivities. That is a major triumph. 187, that was introduced in this Con- legislation as it was, which was adopt- Some legitimate concerns have been gress. We welcome further cosponsors ed so many years ago. raised over the potential burden on of this bill. This is a matter that peo- So today I speak not only on behalf community groups and banks imposed ple care about regardless of place in of the conference report that I think by reporting requirements. I have the country, ideology, or financial sta- accomplishes the task so many who worked hard, as have others, to make tus. came before us labored to achieve, but sure that no undue burden is placed on It is unsettling to people to know this landmark legislation dramatically community groups and that the appro- that when a merger or acquisition oc- modernizes our financial laws to allow priate Federal banking regulations will curs, while you shared certain financial banks, securities firms, and insurance have adequate discretion to ensure information with those with whom you companies to affiliate and provide a ra- that result. initially negotiated, all of a sudden tional process for these affiliations to We are going to need to watch this there is a new entity involved, and take place—not one done by court deci- and see to it that it doesn’t occur over somehow that information you shared sion or simply by regulation, but, as the coming weeks and months. But I with a company is going to become the the legislative body in this country, we am confident that with the provisions product of another industry that you have now authorized regulation in this bill any efforts to try to become didn’t anticipate when you shared the through the deliberate process of hear- punitive or overreaching when it comes initial information. ings, markup of bills, consideration on to regulations will be met with respon- Certainly, people are finding it unset- the floor of the Senate, and a con- sible regulatory action. So we will be tling. They know it goes on. The unso- ference report. While it is laborious, monitoring that action very carefully. licited inquiries they receive by tele- rather, to go through that, and dif- S. 900 reaffirms that the State regu- phone and mail certainly indicate that ficult, it is far better, in my view, to lation of insurance codified by financial services information that establish these laws on that basis than McCarran-Ferguson remains intact, a people thought was being held private to be relying strictly on the courts and very important provision. It further is becoming far too public. regulators to do so. provides an orderly process for resolv- This is an issue on which we have to I welcome this day as a day of suc- ing differences between States and spend more time. It needs to be ad- cess and triumph for the legislative Federal regulators on bank insurance dressed. I am aware of the concern of body exercising its responsibilities to activities. the industry. But consumer demands in put its strong imprint on how this This legislation reinforces further this area are not going to go away. process ought to work. the essential concept that investors Further, let me say it isn’t just a As we enter the 21st century, S. 900 need protection regardless of whether question of banks. Customers would be will help, in my view, to continue our they purchase securities from a broker, given, under this proposal, the impor- Nation’s financial services leadership bank, or other entity. tant opportunity to prevent banks and in the global marketplace—that is a S. 900 ensures that in creating this securities firms from disclosing or sell- critical issue—remaining competitive new financial structure the integrity of ing this information to affiliates before abroad but helping to continue to cre- our markets is maintained and that in- banks and security firms could disclose ate new jobs and new opportunities for vestor protections are enhanced. or sell information to a third party.

VerDate 29-OCT-99 01:11 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.031 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13887 They would be required to give notice chairman of the committee that I ad- Sperling, and others have played crit- to the consumer and obtain the express mired his stamina that night. He was ical roles during this process and were written permission of the consumer be- there pretty much taking arrows and very involved on Thursday night and fore making any such disclosure. glances from the Federal Reserve Friday morning working out the final I will continue to press for even Board, the Treasury, House Democrats, version of the bill. greater privacy protections than are and Senate Democrats. While we We should not forget that former presently included in this bill. fought hard, I admired his stamina, his Treasury Secretary Robert Rubin, who This is a good bill, as I said at the stick-to-itiveness, his willingness to pushed very hard for the legislation, outset. There are a lot of people who stay in the room to get the job done. did a terrific job on it and played a piv- can rightfully claim credit for having I begin by commending Senator otal role in drafting the legislation. been significant players in producing GRAMM for his fine work. Obviously, Larry Summers, his successor, deserves this product. No single individual was our ranking Democrat, Senator SAR- great credit for his contributions as responsible for this result. BANES, with whom I have sat next to on well, and the whole team at the Treas- As I mentioned, there are the people this committee for almost 20 years, ury—Alan Greenspan and his capable who are no longer in public life, some without his leadership I don’t believe staff; Arthur Levitt, Chairman of the of whom have even passed away, who we would have achieved the result we SEC, for his contribution to the finan- can literally be called inheritors of this have today. I commend him for his fine cial services modernization, particu- product and responsible in some ways work not only in this bill but over the larly the critical pieces that affect the for the success we are announcing years for the job he has done paying de- securities industry and investor protec- today. tailed attention to critical pieces of tions. This would not have been adopt- I mention the previous chairmen of legislation, a sense of patience when ed if not for his fine work. the Banking Committee in the Senate, others wanted to rush to a quick re- Lastly, of course, the members of our certainly previous banking chairs of sult. committee. JACK REED was there that the House side, former Secretaries of More often than not, when Senator night and did a terrific job. I want the the Treasury, and different administra- SARBANES suggests we slow down, it is record to reflect that the Boy Scouts of tions must feel some sense of accom- not for idle reasons. He is as knowl- America, particularly, owe JACK REED plishment today as we achieve this re- edgeable as any individual I know, and a debt of gratitude. He discovered what sult. They were a part of that historic he pays attention to the details. Too could have been a very significant journey which began so many years often we don’t pay careful enough at- loophole in this bill and used the exam- ago. tention to the details and they can ple that the Boy Scouts of America There were 66 conferees, an unwieldy come back to haunt Members of Con- could be adversely affected. While it is number. Twelve percent of the U.S. gress. I commend him for his terrific not so named in the bill, that provision Congress were members of this con- work. will be known by those in the room ference. Certainly, each and every one Also, I commend Congressman that night as the Jack Reed Boy Scout of them were involved to one degree or LEACH, the chairman of the House amendment. They got a good deal of another. Though the number was un- Banking Committee, JOHN LAFALCE, support on behalf of the Senator from wieldy, I think all of the members Chairman BLILEY, and Chairman DIN- Rhode Island. played an important and constructive GELL, all with whom I have served over JOHN EDWARDS and CHUCK SCHUMER, role from time to time. the years in the House. JOHN LAFALCE new members of the committee, were I commend Senator Al D’Amato, our and I were elected to Congress on the there, along with JACK REED, and did a former colleague from New York, who same day: 25 years ago Tuesday night terrific job as new members of the is no longer a member of this body but we were elected to Congress the first committee, wading right in and mak- was chairman of this committee last time. Today, he is the ranking Demo- ing a significant contribution; also, year. He crafted a good bill, H.R. 10. It crat on that committee. And JIM JOHN KERRY and DICK BRYAN, who wasn’t adopted into law. But a lot of LEACH, Chairman BLILEY, and JOHN cared so much about privacy issues and what we have in front of us today was DINGELL all did a very fine job in work- fought hard. We did not get all we part of that bill last year. He did a ing on this. needed, but we had a tremendous voice good job. While we are of different par- I thank the Banking Committee in those efforts. EVAN BAYH and TIM ties and different political persuasions staff, both the minority and the major- JOHNSON played critical roles, as well. on many matters, Al D’Amato is a ity, for the work they have done on I have often said over the years of friend of mine. I have always thought this legislation. I begin with Alex trying to achieve financial moderniza- of him to be such, and he deserves some Sternhell, who is my staff person who tion I am reminded of the mythical fig- recognition today as we talk about the has worked so hard on this legislation. ure Sisyphus who rolled the rock up accomplishments of this bill. Again, like Alex who has worked hard the hill only to have it roll back down Senator PHIL GRAMM of Texas, who I going back 19 years, it began with Ed the hill when he got near the top. I have served with on the Banking Com- Silverman of my office, who was on the have a painting of Sisyphus that I mittee now for many years—I have Banking Committee, along with a se- cherish. Today, I can report that the worked with him on numerous pieces of ries of terrific staff members who have rock is at the top of the hill and I legislation but nothing quite of the im- traveled this road on financial services think it will stay there. port of this bill—is a tough negotiator. modernization. Ed Silverman, Marti To all who have been involved in He is knowledgeable and he is smart. Cochran, Peter Kinzler, Michael Stein, this, my sincere thanks for their tre- He worked hard on this bill and de- Paul Hannah, Courtney Ward, and An- mendous efforts. The industry people serves credit as chairman of the com- drew Lowenthal should be commended and outside groups who make valuable mittee for the final result and for pull- for all of their help. Alex did a great contributions deserve recognition. ing the pieces together. job on this. I thank him. Steve Harris, I yield the floor. It has been mentioned by my good Marty Gruenberg and the wonderful job Mr. SARBANES. Mr. President, I friend, Senator JOHN EDWARDS of North of working so many years, Patience thank the able Senator from Con- Carolina. I see my colleague from Singleton, Dean Shahinian, and others necticut for his very fine remarks and Rhode Island, JACK REED, who was on the minority side have been integral also acknowledge the very positive and there that evening. ROD GRAMS, who is to this process, including Wayne Aber- constructive role he played throughout on the floor at this moment, was in the nathy, Linda Lord, Geoff Gray, Dina this process that helped the Senate get room. That was quite an evening. Ellis, and others have made tremen- a product that we can bring back and I suppose history books will expand dously valuable contributions. I want recommend to our colleagues in the the size of the number of people who the record to reflect my appreciation Senate, after having it initially in the were in that room that night as often- and admiration for their work. Senate on a very divided vote. There times happens. It wasn’t that big a The administration has remained were a number of very difficult issues room. There were not that many people firm in their commitment to passage of to work out and the Senator from Con- in the room. But I have said to the this legislation. John Podesta, Gene necticut was intimately involved with

VerDate 29-OCT-99 02:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.034 pfrm13 PsN: S04PT1 S13888 CONGRESSIONAL RECORD — SENATE November 4, 1999 all or most of those issues. We are very dations in the financial services indus- What we have done in this legislation appreciative of him for the instructive try. I think that is appropriate, and I is protect the fundamental essence of contribution that was made. look forward to the report of the Fed- what I think CRA should be about. We I yield 10 minutes to the Senator eral Reserve. Again, this is another have said that if any financial institu- from Rhode Island. issue of which we have to be terribly tion wants to partake of these new, en- The PRESIDING OFFICER. The sen- conscious because with this legislation hanced, expanded powers, they must by ior Senator from Rhode Island. we are allowing a huge concentration law have a satisfactory CRA rating. If Mr. REED. Mr. President, I thank across different functional areas of fi- they do not have a satisfactory CRA Senator DODD for his kind words and nancial activities in the United States. rating, they will not be able to take ad- his great leadership, along with Sen- Again, I believe it is justified and war- vantage of this legislation. ator SARBANES. ranted by the changing conditions of I believe the dynamics of the finan- I rise to support the conference re- our economy, but we should be careful cial industry are such that the oppor- port on S. 900, the Financial Services as we go forward. tunity to participate in these new pow- Modernization Act of 1999. We are on Another issue that has been men- ers will be a positive force, ensuring the verge of a historic transformation tioned several times before is the issue through competition in the market- of the financial services industry that of privacy. The legislation before us is place that CRA is not neglected, that will take it from the Depression-era taking a first step in protecting the fi- CRA is still a strong, vital part of any laws of Glass-Steagall and position it nancial information of the consumers financial institution. If that is not the to meet the challenges of the next cen- of America, but it is just a first step. case, then we have to be prepared to tury. There are many more steps we must act once again because we cannot aban- Some may argue this legislation is a and should take. They will be de- don the Community Reinvestment Act. ratification of what the market has al- manded of us by our constituents, the To do so would be to abandon scores ready done, but it is an important rati- consumers of financial services and scores of our fellow citizens. We fication because it will allow our finan- throughout the United States. With cannot do that. We should not do that. cial institutions to be more efficient the growth of computer technology and This legislation with respect to CRA and more effective. I think it will ac- the ability to store and disseminate has been improved immensely from the complish two fundamental and very large volumes of information instanta- Senate version. As you recall, the original provisions sent forward by important goals. First, it will provide neously, we will continue to wrestle Chairman GRAMM had potentially se- more efficient access to financial serv- with these issues of privacy, not just in vere effects on CRA. There was a total ices which will directly benefit con- financial services but in every area of endeavor throughout our economy. exemption of small banks from any sumers in terms of better service and We took a first step. We have in- CRA requirements. That would rep- lower cost. Second, it will make our fi- structed companies, if they wish to resent 38 percent of the banks in this nancial institutions much more com- share a customer’s private informa- country. They would be exempt totally petitive in a world of globalized finan- tion, they must give that customer the from any recognition of CRA responsi- cial transactions. These two goals have option to say no to that activity. We bility. That has been eliminated from been achieved in this legislation. I am have also tried to curtail some of the this conference report. proud to support the legislation. more egregious predatory activities we What we have done is allowed small It is also incumbent upon us to un- have witnessed in the last few years banks that have satisfactory or better derstand and underscore some of the with respect to the abuse of consumer CRA records to have a longer interval concerns that still remain after this information by financial institutions. between their inspections. But we have legislation is passed. Again, let me em- As I said before, we are moving ahead also required and provided that the phasize this legislation will increase with this first step. We must not only regulators at any time can conduct a the efficiency and effectiveness of our contemplate but also be prepared to CRA inspection if they have reasonable financial services industry and will take other steps in the future to pro- cause to believe the CRA program is benefit the American consumer. As we tect the privacy of the American peo- not being followed by that financial in- tear down the walls between banks and ple. This legislation has laid a founda- stitution. These are steps which have insurance companies and securities tion, but that foundation alone will not strengthened CRA, particularly in con- firms and open up many possibilities, protect the privacy of the American trast to the legislation we considered we also open many potential pitfalls. I people. on this floor several months ago. think we should be concerned about There is another issue I would like to There is another aspect I believe de- those, also. comment upon, which has been com- serves comment, and that is the issue As we celebrate passage today, we mented upon by my colleagues also, of functional regulation. I am very should also underscore and point out and that is the issue of the Community pleased that functional regulation has areas that bear close watching. Funda- Reinvestment Act. The Community Re- become the order of the day, that the mental changes as we are proposing investment Act is not just a device to Securities and Exchange Commission today include consequences which may allocate resources in poor neighbor- will look at securities activities, bank- have adverse effects if they are not an- hoods; it is a commitment by this Gov- ing regulators look at banking activi- ticipated and watched carefully. ernment, through the banking indus- ties, and the Federal Reserve will have Among those is the issue of the con- try, to ensure that all Americans have enhanced powers to look at financial solidation of our financial services in- a fair opportunity to participate in the holding companies and other major fi- dustry. We are witnessing the economy and do so in a way that they nancial institutions. But I believe we megamergers that are transforming can benefit themselves and their fami- have to recognize we are giving these our financial services industry from lies. regulatory authorities new powers, small multiple providers to large pro- Community Reinvestment has been a some of which are somewhat novel. viders that are very few in number. We powerful success over the decade since They have to have the capacity, both run the risk of the doctrine ‘‘too big to its passage because it has, for the first institutionally and financially, with fail;’’ that the financial institutions time, given many communities which resources, to be much more perceptive will become so large we will have to before were ignored, which before were and much more thorough in their regu- save them even if they are unwise and denied access to credit and financial latory process— again hearkening back foolish in their policies. We have seen services, those very financial services to the point of the huge potential con- this before. We have to be very careful and credit. As a result, not only did centration in these financial institu- about this. they get the money but they got some- tions. The legislation does not require any thing else: They got a feeling of par- We also understand with respect to market policing requirements with re- ticipation and connection to this econ- this legislation that, in this arena of gard to this issue. It does mandate the omy and to this country. That percep- functional regulation, there might be Federal Reserve, within 18 months of tion, that feeling, is just as important some potential stalemates. passage of this bill, will review the im- as any of the specific programs funded Mr. President, one of the potential pact of potential mergers and consoli- by CRA. roadblocks or stalemates is that State

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.038 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13889 insurance commissioners still play an The PRESIDING OFFICER. The Sen- before us and carried the ball across extremely important role. In some re- ator from Minnesota. the goal line. As Senator DODD men- spects, unless they are fully integrated Mr. SARBANES. Will the Senator tioned, former Senator Alfonse through this Federal financial regu- yield to me for a second? D’Amato should also be recognized for latory structure, we might in fact have Mr. GRAMS. I yield. the contributions he made over the problems. That is another issue that Mr. SARBANES. Mr. President, be- years. bears close watching. fore the Senator leaves the floor, I This has been a top priority for my- There is, I believe, something else we thank the Senator from Rhode Island self. I served on the Banking Com- should comment upon, and that is the for his extraordinary contributions mittee in the House for the one term I success we have had in allowing the fi- throughout the process of developing was there, and the No. 1 priority when nancial services industry to choose the this conference report. He has made an I reached the Senate was to be on the mode of operation which best suits extremely valuable contribution to a Banking Committee. I was never a their unique situation for an individual successful result. I am deeply appre- banker, but I have sat across the table company. What I am specifically refer- ciative. from many bankers. I thought it was ring to is the language with respect to Mr. GRAMS. Mr. President, I rise very important to add the voice of a operating subsidiaries. I know my col- this afternoon in strong support of this small businessman and an individual in league, Senator SHELBY of Alabama, very important legislation that bal- banking legislation. has worked long and hard on this. I, ances the interests of individual con- This legislation provides the appro- too, have worked long and hard on it. sumers with the needs of America’s fi- priate regulatory framework for an We now have a situation where na- nancial services industries. event already occurring throughout tional banks can choose to operate a I know names have been mentioned the regulatory fiat, and that is the af- certain limited spectrum of activities and accolades have gone out, and very filiation between commercial banks, in a subsidiary or in the holding com- well-deserved, to those who need to be securities firms, and insurance compa- pany. I believe this is sensible. It also thanked for their hard work. I start the nies. gives the Treasury Department a sig- list with Senator PHIL GRAMM who We protect consumers by estab- nificant role in the regulatory process worked very hard over this last year. lishing a system of functional regula- since they, too, will be able to regulate By the way, it was a year ago today tion whereby institutions will be over- some of these new activities. That is following the elections that we began seen by experts in their areas. In other important also. consideration of getting this bill back words, the securities operations will One last point I believe bears repeat- on the floor again. Also, of course, I continue to be supervised by security ing. We are entering in some respects, thank the ranking member, Senator experts, banks by banking experts and, a brave new world. The old walls have SARBANES, who worked very hard as of course, insurance by State insurance come down. We have new opportuni- well over these years, and especially commissioners. ties; new financial vistas have to be ex- over the last 12 months, in crafting In addition to ensuring a level playing field for business through con- plored. It behooves us to be very this bill and making sure of its success. watchful, very careful, and to insist on I also thank former Treasury Sec- sistent regulation, again, consumers and ensure that the regulators are retary Rubin and the latter contribu- also benefit because the institutions careful and also that they have the re- tions by Treasury Secretary Larry with which they are dealing will be regulated by the experts in those prod- sources to do this job. We will all rue Summers. Chairman Greenspan of the ucts. Thus, by authorizing properly the day, this day, if years from now or Federal Reserve and SEC Chairman Ar- regulated affiliations between financial months from now we discover that, be- thur Levitt, of course, were very in- companies, we ensure that our finan- cause of this new flexibility, there are strumental in this. I thank our col- cial services companies will be able to more complicated problems facing us. I leagues on the House side, Chairman think we should go forward but go for- compete worldwide and with appro- LEACH and Congressman BLILEY, for priate regulation at home, they will ward with the notion that we, in fact, their work and efforts. not be forced to move offshore to re- are going to regulate well and wisely I could go on. When one does this, these new powers we are giving finan- main competitive. they always run the risk of not men- Although the estimated $15 billion in cial institutions. tioning somebody. There were so many Let me conclude by saying this has cost savings will certainly benefit our hands in this. been the work of many hands. I thank consumers, the provision which most Alan Brubaker appears on the list to Chairman GRAMM for his persistent ef- immediately impacts the consumer, of be commended. Alan is on my staff, forts. Our ranking member, Senator course, is the establishment of a na- and I have to compliment him as well SARBANES, has done a remarkable job tional floor of privacy protections. on all the hours he has put in on this leading us carefully, thoroughly, and A lot of people do not realize that bill, working very hard staff to staff. thoughtfully. Senator DODD has been without this bill, we would go back to Alan has done a tremendous job, and I especially important in this process, almost zero, except for the fair credit compliment him on his efforts. bringing us together in moments when reporting bills. This brings a tremen- In testimony before the House Bank- we did not think we could come to- dous number of new protections in pri- ing Committee, then-Secretary of the gether for final resolution. Senator vacy to our consumers. It is a major Treasury, Robert Rubin, testified that SCHUMER, my colleague from New step forward in that area. the administration estimated enact- York, was very active throughout this The consensus contained in this bill ment of financial modernization legis- process; Senator EDWARDS, and many will now provide consumers with major others—all of the conferees played crit- lation will result in annual savings of areas of protection beyond current law. ical roles. In the other body, Chairman $15 billion. The important part of this Specifically, the conference agreement, is those savings will end up in the LEACH and ranking member LAFALCE, one, ensures consumers will have pockets of consumers because in a Chairman DINGELL and Chairman BLI- greater clarity of their financial insti- competitive world, people are going to LEY, all were very effective. tution’s privacy policies by requiring I reserve special words for two mem- find the cheapest way in an expanded the institution to disclose those poli- bers of the administration with whom I array of financial services. The con- cies on information sharing—to the af- have worked over the last several sumers, under this bill, are going to be filiates and third parties of both cur- years: Bob Rubin, the former Sec- the biggest benefactors—$15 billion in rent and former customers—at the retary, and John Hawke, the former annual savings in financial moderniza- time the institution establishes a rela- Comptroller of the Currency. tion. tionship with that customer, as well as Finally, on my staff, I thank Jona- This package of reforms has been reviewing those regulations or those than Berger and Kevin Davis for their under consideration, as we heard, in policies each and every year. The con- great work. one form or another for over two dec- sumer will have major privacy protec- I yield the floor. ades. I am proud to be a member of the tions. The PRESIDING OFFICER. The Sen- committee and the Senate that has Two, it provides consumers with the ator from Virginia. taken the handoff from those who came ability to take their names off the list,

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.041 pfrm13 PsN: S04PT1 S13890 CONGRESSIONAL RECORD — SENATE November 4, 1999 in other words, to opt out if they do affiliates, and international banking separated in three discrete and sepa- not want their personal information transactions, those are concepts which rate categories: If you wanted to have shared with a nonaffiliated third party. most of my constituents, and I daresay a banking transaction, you went to the Three, it criminalizes the actions of most of the constituents of all of my bank; if you wanted to get insurance bad actors who use false pretense or, in colleagues, see as having very little coverage, you went to an insurance other words, lie to obtain a consumer’s relevance to their lives. There are not company; if you wanted to dabble in personal financial information. too many people in the country whose the stock market or wanted to buy Four, it preserves all existing and all lives are intimately involved, on a day- stocks or bonds, you went to a stock- future State privacy protections above to-day basis, with affiliate sharing of broker. and beyond the national floor estab- information or involved in major finan- That is the way most Americans lished in this bill. It allows the States cial transactions. have historically dealt with the finan- to set their levels as well. Most of us have an insurance policy cial services industry. That was as a Five, it authorizes a study to review or two, and increasingly—about 50 per- result of legislation enacted after the whether further privacy measures are cent—American families now have great financial collapse of the Great needed. That is very important because stock ownership in some form or an- Depression to protect against this con- as we complete this bill—nobody has other. Most of us have bank accounts, solidation of power that many thought ever written a perfect bill, I do not and that is probably the extent of the was a contributing factor to the col- think, out of Washington, and it is average American family in terms of lapse of the financial industry in Amer- very important to review what we have financial information. So I think it ica in 1929. It is called Glass-Steagall. done and look at what else needs to be may be instructive if I put some con- So if that name comes up, that is what done. But this review is going to be text into this debate we are having. that means. very important as well in the area of We have experienced, in the decade of I think that reality and fairness privacy. the 1990s, an extraordinary rapidity of would dictate that the model which Although the central purpose of the change, if you will, in the way in which regulates those industries as three sep- bill is to remove decades-old barriers financial services—banking, insurance, arate and discrete industries has no to the integration of the financial serv- and stock securities—are handled in longer relevance in America today. ices industry, by recognizing that pri- this country. Whether it should, whether we wish vacy is both a very important issue to We have also seen an enormous num- that was still the case, in point of fact the consumer and a responsibility of ber of mergers across the board in several things have occurred. the financial institution, the bill puts American business. To some extent, it Court decisions, decisions by admin- in place the framework to ensure the is almost a sense of deja vu because at istrative agencies, have, in effect, torn consumer is protected and allows the the end of the last century, in the down those walls of separation. In- financial industry to expand services 1890s, we saw a tremendous consolida- creasingly, we are having a lot of those and products. tion of industry in the country. Many services, the banking and the insurance I recognize the debate over privacy will recall that was a period of time in and the securities functions, kind of has not been concluded with these which we had vast industrial cartels merged together. As a result of that, I changes. The enthusiasm these provi- and trusts. So there was an enormous think it is fair to say—and the advo- sions have garnered, as well as the ex- concentration of wealth and power in cates have made this point—the finan- pressions of support Congress has re- some of these large industrial concerns cial regulatory structure that emerged ceived for recent actions to prevent im- that were just taking shape in the lat- as a consequence of the Great Depres- plementation of the FDIC’s ‘‘Know ter part of the 19th century. sion, the Glass-Steagall Act, no longer Your Customer’’ rule and to restrict In a sense, as the 20th century is comports with the reality of the mar- the ability of States to sell driver’s li- coming to a close, that pace has quick- ketplace. That is fair and that is true. cense information, demonstrates the ened. The critics would say we are ex- So we need a new regulatory model, a public’s concern over these privacy periencing a sense of merger mania or new framework. This legislation has issues. merger frenzy. So many of the major much to commend it. And it provides I look forward to further debate on financial institutions in the country that regulatory framework. Essen- these issues following the comprehen- are participating in that. tially, we are saying in this legislation: sive hearings Chairman GRAMM has Just a couple of examples: Citibank Look, if you are providing an insurance pledged to hold after we have received and Travelers have come together; service, you ought to be regulated by the findings of the report called for in NationsBank and Bank of America— the same regulator, whether you are a this bill. After further study, we will and I could point out countless hun- small independent insurance office in all be better equipped to consider the dreds. Winnemucca, NV, or whether you are issue of privacy. In the meantime, I What impact does that have on the operating in the ionosphere of some of firmly believe we have provided strong- average citizen in this country? I think the major Wall Street concerns in the er protections for the consumer. it is fair to say, none of us really know. financial center of our country in New Mr. President, I thank all my col- The advocates for these mergers and York City. That is called functional leagues for all their hard work. I consolidations are saying: Look. We regulation. strongly urge them to support this con- will provide new convenience to the So that is the background. ference report. American public, we will have one-stop As I said, I had hoped to be able to I thank the Chair and yield the floor. shopping for insurance and banking support this legislation. I recognize it Mr. BRYAN addressed the Chair. and securities; that it will be less ex- has been worked on for many years. The PRESIDING OFFICER (Mr. pensive; that more options will be pro- The reality of this also has to be tem- BUNNING). The Senator from Nevada. vided. That may, in fact, be the case. I pered by another reality, and that is Mr. BRYAN. Mr. President, I believe think none of us know for sure. the right of privacy. For more than a the record will reflect that the Senator The critics raise the specter that this century, we have recognized in Amer- from Nevada, pursuant to a unanimous concentration of power, this enormous ica the right of privacy. That right of consent agreement, has 30 minutes to business combine that is taking place privacy, as we know it today, is threat- speak. If I am so informed, I would like across the whole range of financial ened and endangered. It is threatened to yield myself a part of the time at services, may not be good for the coun- and endangered by some of the mar- this point. try; that that kind of concentration of velous technologies of our time. The PRESIDING OFFICER. That is wealth, as we learned a century ago, Let’s talk about financial services for correct. may be bad for the public. I have not a moment in terms of that technology. Mr. BRYAN. I thank the Presiding reached a judgment on that. It was not too long ago that when you Officer. I was fully prepared to support this went to a bank, if you were going to Mr. President, and my colleagues, legislation because I recognize another make a bank deposit, you saw a teller, when we are talking about the finan- reality. Historically, from the 1930s, and he or she, by hand, posted, en- cial institutions and affiliates and non- banking, insurance, and securities were tered—there was kind of a carbon

VerDate 29-OCT-99 02:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.043 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13891 sheet—the deposit in the record. If you tion—sell customer account informa- filiate that is an insurance company or were applying for insurance, you manu- tion to marketing companies. Those a bank. ally filled out papers; your insurance are the lovely people who call you at So this information that you would agent compiled all of this, and he kind home during the dinner hour fre- think—and I thought, until I became a of kept a carbon copy. Twenty years quently or who inundate your mailbox member of this committee and became ago, when we got into Xerox capa- with some type of solicitation. more familiar with the laws dealing bility, he had duplication capability. The U.S. Comptroller of the Currency with financial companies—is confiden- The same thing was essentially true for says: Most large national banks sell tial is now going to be widely shared. securities. customer account information to mar- And there are big dollars in this. That What has changed all of that? Some keting companies, and the banks typi- is why the privacy concerns are height- very positive and powerful forces: Com- cally get 20 percent to 25 percent of the ened, that more of this information is puterization. As a result of some soft- revenue generated by marketers. Some going to be shared with more people, ware programs, it is possible to gather banks have generated millions of dol- the most personal and private kind of data and profile it, whether you are a lars in revenue by providing third par- stuff in your financial history, your bank depositor, whether you are an in- ties with information on millions of health record, as reflected by any individual who is an insurance customer, customers, including name and ad- formation on your bank account. or whether you are a stock and bond dress, Social Security number, credit Now, what is happening currently be- owner and you have your account with card numbers—all of this according to fore this new law? Let us talk about a a securities firm. Just a stroke of the a Ms. Julie Williams, chief counsel to couple of examples I think will prove key now can bring that data up. What the U.S. Comptroller of the Currency. to be particularly egregious. This is does that mean? This enormous amount of financial the kind of abuse that occurs. It means that if I am a marketer and information that is collected, which In one case, a 90-year-old woman who I want to get a profile of somebody you give your bank, your insurance had been a customer of a bank for more who, say, has an average bank account company, your security broker, is now than 50 years—that would be a trusted balance of $50,000, no longer would it be being freely shared. It is valuable, and relationship; I cannot imagine this necessary for some poor devil in a it is worth millions of dollars. That is woman would believe this information green eye shade laboring in some dimly the current law. would be shared with others, but it lit corner of some financial company to What about this piece of legislation was—was billed by a telemarketer for a go through and pull the records manu- makes the privacy concerns even more computer product. She didn’t even own ally. Today, a sophisticated software heightened? The advocates of this bill a computer. Before she died, it took program can simply, with a key stroke, will say there are no privacy restric- her 11 months to get the telemarketer bring up that information. That infor- tions now, and that is largely true. to remove the charges from her credit mation is very valuable. It is very com- Banks, insurance companies, security card account. Information which the prehensive. Today, most Americans houses are free to share this informa- bank had shared, her bank, a relation- have an enormous amount of their per- tion. So they say: Look, we have some ship of 50 years, one would have to sonal financial data, the kind of thing privacy provisions in there. We are think there was a trust relationship that is very personal—their bank ac- taking some important protections. that the depositor had with that bank, count, what checks they are writing I will comment on that in a moment. but this information was shared. and to whom, what kind of insurance But this bill tears down those walls of Let me point out, as has occurred coverages they have, their application separation between banking, between during the course of our discussion, a indicating any health problems they insurance, and between securities func- situation with respect to the San Fer- might have—as part of a database. It is tions, and it kind of merges them alto- nando Valley Bank. They sold a con- on a computer disk drive. What kind of gether. victed felon 90 percent of the credit stocks and bonds they have, what kind The advocates will say that is going card numbers that the convicted felon of certificates of deposit they may own to make it convenient for everyone. used to run up $45.7 million in bogus and when they may come up—that What it means is that a bank will now charges against those customers. The database is there. be able to own an affiliate, a sister bank sold that information to a tele- I think most of us have this vague company, an insurance company, and marketer. concept that when we are dealing with so that information from the bank and That is what is occurring now, today, our bank, when we are dealing with our its sister affiliate, an insurance com- without this exponential expansion of insurance company, when we are deal- pany or a security company, can now the sharing of information. Let me ing with our stockbroker, that stuff is be freely exchanged. talk about U.S. Bank. U.S. Bank was confidential. Isn’t it? Isn’t that similar We are talking about the large bro- involved in sharing some information, to talking with your lawyer about a kerage houses in America. We are talk- as well. That, too, posed some major legal problem or your doctor about a ing about the largest insurance compa- concerns because this information was medical problem or even sharing with nies in America. We are talking about being sold to a telemarketer that of- your local pastor, your rabbi, your the largest banks in America. In effect, fered such things as travel and health minister, your religious advisor? Isn’t that information the banks were sell- care products. The bank received near- there a privilege there? It is kind of ing and making substantial amounts of ly $4 million in commissions for selling confidential. Certainly you, as an indi- money on, as was pointed out by the this information to nearly a million vidual, think it is confidential. You Comptroller of the Currency that they customers. These things are occurring. certainly do not have the expectation were selling to marketers, now, as a re- Here is a typical example of what that that information is going to be sult of this legislation, which will en- this reflects. This is a deposit record. It shared. If that was your expectation, I courage the formation of these affiliate appears that the last deposit was regret to tell you that you are wrong or sister banking, sister insurance, sis- $109,451. What we know is that the lady because today that information, even ter securities relationships, will ex- who made this deposit, perhaps in an without this legislation—and I will pand exponentially. No question about off-guarded moment of candor, shares talk about that—is freely exchanged. that—cross-marketing, that is part of with the teller—she is banking the old- It is big money. It is big money in the intent. That is what drives this. fashioned way, sharing with the tell- the sense that individuals who share There are some realities of the mar- er—that she is not really sure what to that information—financial compa- ketplace we all acknowledge. So that do with this money. One can assume nies—share that information because information that is in your bank ac- that this money was recently acquired, they make substantial amounts of count now can move to an insurance through an inheritance or some change money as a result of that. company affiliate, can move to a secu- of circumstance in her life, and she had Let me give an indication in terms of rities affiliate, and the converse of that a good bit of money that came in, this what the U.S. Comptroller of the Cur- is true; it can move in the other direc- $109,000. She shares this information rency has said: Most large national tion. You have a stock account; that with the teller. The teller writes on the banks—this is without this legisla- information can be shared with an af- bottom: ‘‘She came in today and wasn’t

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.045 pfrm13 PsN: S04PT1 S13892 CONGRESSIONAL RECORD — SENATE November 4, 1999 sure what she could do with her USA Today. Los Angeles Times: ‘‘Pri- parent and illusory privacy provisions money.’’ Look up here. It says vacy? Don’t bank on it.’’ Los Angeles really provide much at all. They pro- ‘‘David.’’ He is one of these affiliates Times: ‘‘Your Privacy Could Be a vide virtually nothing, no protection at who is involved with a securities com- Thing of the Past.’’ all with respect to affiliate sharing. pany. It says: ‘‘David, see what you can Let’s talk about the bill because the I think the protection with respect to do. Thank you, teller 12’’—whoever bill provides minimal protection. First a transfer to a third party with those teller 12 is. That information is then of all, it tells you the banks are re- two gaping loopholes—gaping—any at- being shared with a securities com- quired to post a policy of what their torney who has taken a single course pany, and, undoubtedly, this lady re- privacy policy is. Here is an existing in any kind of securities would easily ceived a call. She has absolutely no web page with an existing bank in the be able to craft a loophole for his client idea that anybody other than perhaps country today: that would make that activity per- the closest members of her family Question 4: If I request to be excluded from fectly permissible. know she has just come into some affiliate sharing of information, what infor- The bottom line of all of this is that money and deposited $109,000. That is mation about me and my products and serv- those of us on the committee who of- the kind of stuff that is occurring now. ices with you will and will not be shared fered an amendment which would have The point I am trying to make is within your affiliated family of banks and simply said, look, you have to provide companies? that if those abuses are occurring every customer with the right to opt now—and that is only the tip of the That is the question. Here is the an- out; that is, to be notified that: Look, iceberg—imagine what is going to be swer: you have a right to opt out if you don’t happening with all of these fire walls Answer 4: Even if you request to be ex- want this to occur, we are told, no, having been taken down and the affili- cluded from affiliate sharing of information, that would destroy the dynamics, the we will share this other information about ates sharing information. you and your products and services with synergy of the marketplace; it could There is one thing I did not make each other to the extent permitted by law. not happen. Let me tell you, these very American clear. I did point out that banks will be This web page would be perfectly ap- companies—and they are premier com- able to assist their affiliate that is an propriate and legal under the new law. panies and wonderful companies and insurance or securities company, but All that is required is a posting of the successful, and as Americans we are vi- these affiliates also own other compa- policy. Now, if anybody in America cariously proud of them—do business nies, commercial firms that may sell a thinks that is an adequate protection in Europe. But in doing business in Eu- whole range of products, such as sport- for your privacy, I would like to talk rope, the European Union requires the ing goods, travel packages, vacation about a little piece of property I have opt-out provision. And the same com- homes, you name it. So that is part of in New York called the Brooklyn panies that say American citizens their business currently. With the af- Bridge, and we would like to talk about should not have that privacy, that it filiation sharing, all of that informa- you buying it from me. Utterly absurd. would destroy their opportunities in tion moves downstream within the sis- That is what is happening. ter affiliate, which is a major concern Now, there is absolutely no provi- the market and the synergies of the in terms of these marketing efforts. sion—none, zippo, nada, zero, nothing— marketplace to provide those same Now, let’s talk about what the bill that prevents the sharing of informa- protections that those of us in com- purports to do. I inquire, how much tion from affiliate to affiliate. No pri- mittee sought to add to the European time I have remaining? vacy at all. That is freely exchanged; it counterparts—you will recall the U.S. The PRESIDING OFFICER. The Sen- is freely exchanged. bank situation. The attorney general ator has 8 minutes remaining. With respect to the third party, the of Minnesota took them to task. Guess Mr. BRYAN. OK. We will try to do nonaffiliate, we are told, yes, there is what. As part of a settlement agree- this quickly. an opt-out provision; that is, you can ment that they entered into, they Let’s talk about the expectation of let people know you want that not to agreed as part of that settlement what people think in terms of their pri- be done. OK, that sounds fine, except agreement to do what? To inform cus- vacy. I think this is an interesting there are two major, glaring excep- tomers of the bank’s privacy policy and number. The Wall Street Journal did a tions. Those are marketing agreements to provide notice of customers’ rights poll on what our expectations are and and joint marketing in which those to opt out of the sharing of informa- what we fear will happen most. Which provisions simply do not apply. So if tion with bank affiliates. one or two concerns are you most con- the third party itself has a company Think about that. U.S. banks as part cerned about in the next century? Loss that is involved in telemarketing, of a settlement said they could do it of personal privacy, 29 percent. This is there is absolutely no prohibition and it would not compromise their not done by some do-gooder, against that information being shared. ability to take advantage of the dy- ultraliberal social think tank; this is So in point of fact—and the USA namics and the synergies of the mar- done by the Wall Street Journal, which Today, I think, has made a very telling ketplace. The largest and most success- is the voice of American business. And commentary on that by pointing out ful financial companies in America 29 percent fear loss of personal privacy. that these provisions simply provide that do business daily in Europe have When you ask people, ‘‘Would you very little. I quote the October 28 edi- agreed to be bound by those provisions, mind if a company you did business tion: but they will not be bound by the pro- with sold information about you to an- visions in this country. other company?’’ 92 percent say yes. A consumer’s right to opt out of data- swapping arrangements is severely re- So Americans have a very much de- Yes, they mind. The American people stricted. Consumers would not, for instance, preciated right of privacy compared to care very much about that. They may be able to stop banks from sharing informa- their counterparts in Europe. I would not know the difference between an option with third parties that market a bank’s simply say, Why? Why? I don’t know sub and an affiliate, or what a unitary own products; nor could we block data-shar- what the answer is. thrift is, what a ‘‘whoopie’’ is. Those ing deals that involve products sold under The PRESIDING OFFICER. The Sen- are all terms we have debated here. But joint agreements. ator’s time has expired. they sure know what privacy is about. Further, it goes on to point out there Mr. BRYAN. Will the Senator yield ‘‘In the future, insurance companies is no protection against banks sharing to me an additional 5 minutes? and investment firms may be able to information with financial or insur- Mr. SHELBY. Mr. President, I yield merge into a single company. If they ance companies they own. In fact, since to the Senator from Nevada an addi- do, would you support or oppose these the law would encourage such cross- tional 5 minutes. newly merged companies internally ownership, a consumer’s chance of The PRESIDING OFFICER. The Sen- sharing information?’’ That is what stopping widespread information shar- ator from Nevada. this bill permits. ing likely would be minimal. Mr. BRYAN. Mr. President, I will Eighty-one percent say no. I simply say for colleagues interested wind this up because the Senator from Here are some headlines across in privacy, receive no comfort, my Alabama has shared this fight with the America: ‘‘Banks Sell Your Secrets,’’ friends—none—that these very trans- Senator from Nevada in committee and

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.048 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13893 in conference. I thank him for his lead- Mr. President, I rise to voice my That is a very crucial ‘‘maintenance’’ ership and his support. stringent objection to the conference requirement, as we call it in this bill. The point I was trying to make is report of the financial services mod- Last year, the legislation gave the this is not an unreasonable request. If ernization bill. While I believe we need regulators the discretion to impose re- one of the largest banks in America, as to modernize the laws that govern this strictions for falling out of compliance part of a settlement with the attorney country’s financial system, I do not be- with CRA. This year, we have inserted general of Minnesota, can agree to the lieve we should do so at any price. a statutory prohibition of conducting opt-out provisions which a number of My colleagues in the Senate should new activities. us on the committee sought to add, know this legislation comes with a If the institution that was CRA-com- every bank can live with those provi- very high price to the American people. pliant when elected to become a finan- sions. In my judgment, the price is simply cial holding company then chooses to If the major banks in America that too high. Let me explain. engage in a new activity, the regulator do business in Europe every day of the First of all, I want to say that there could then use the enforcement author- week can live with those provisions, I are some very good things in this bill, ity in section 8 of the Federal Deposit think we have to ask ourselves why not the least of which is the repeal of Insurance Act to impose civil money would these companies not be prepared two sections of the Depression-era penalties on bank directors and offi- to provide the same kinds of privacy Glass-Steagall Act which allow banks, cers. I am opposed to the maintenance protections that either they have securities firms, and insurance compa- requirement today just as much as I agreed to in a consent decree when nies to affiliate. Congress has worked was opposed to the maintenance re- they have been taken to court by the on this for many years. quirement last year. My position has attorney general—in this case the at- Under Senator GRAMM’s leadership as not changed. torney general of Minnesota—not be chairman of our Committee on Bank- This expansion does not exist in cur- willing to provide the same kinds of ing, this much-needed change will soon rent law today. If you have a certain protections provided to Europeans to become reality. I think that is very bank charter, you can conduct all ac- people in America? positive in this bill. tivities permissible to that charter There was some debate in the com- That being said, I think it should be whether you have a CRA-satisfactory mittee. ‘‘We don’t want to impose upon perfectly clear that there remains De- record or not. I believe we are making a grave mis- the American economy the European pression-era laws on the books, and I take by expanding CRA. I am ex- model.’’ No; I don’t either. None of us hope Chairman GRAMM would be inter- tremely disappointed because I know did. The question is not do we want to ested in working with others on the we have reached the point of no return. impose the European model. The ques- Banking Committee to repeal those As conservatives, we will have no legs tion that has to be framed is, why laws as well. to stand on if and when we try to re- should Americans be entitled to less In particular, I am referring to the 1930s price control on business check- visit this issue. My friends, we are, in- protection as to their right to privacy deed, paying a very high price for this from the same company that is doing ing accounts. To the extent that we are modernizing this country’s financial legislation. business in Europe and providing those Privacy is very important to all laws, one would think we would elimi- protections to their European cus- Americans. I pose a question to my col- nate this price control and allow small tomers? leagues: Does anyone know what issue businesses across this country to re- I must say that it was because of brings together the American Civil ceive interest on their checking ac- these overarching concerns—we have Liberties Union, Consumers Union, and counts and enjoy the full benefits of fi- seen the examples; I believe they are Ralph Nader of Public Citizen to Phyl- nancial modernization. simply the iceberg of examples today— lis Schlafly of Eagle Forum and the Let me talk just a few minutes on the potential for abuse in terms of vio- Free Congress Foundation? It is the CRA expansion. lating your fundamental right of pri- bill before the Senate, the financial vacy and the most sensitive informa- I also feel compelled to set the record straight on the floor this afternoon on privacy provisions. All of these groups tion about your personal life will be have formed an unprecedented coali- widely shared and disseminated. I the Community Reinvestment Act provisions in this bill. Make no mistake tion to oppose this bill simply based on think if you look at it very carefully, the lack of privacy protections. That is there is no protection at all in the af- about it. This bill expands—yes, Mr. President, expands—the Community the price the American people are filiate area—none. A sister company going to pay—their privacy—if we pass can freely exchange that information Reinvestment Act. I know a great deal about this because I, along with Sen- this bill for only a few large financial with banks, insurance, stock conglomerates. ator GRAMM, killed this very bill last brokerages, and the companies which In an article entitled ‘‘Banks Sell year because we were both opposed to those affiliates own. Your Secrets,’’ USA Today reported: the dramatic expansion of CRA in the With respect to third parties, the so- Consumers across the USA have been called nonaffiliate, if you look at those bill at that time. shocked and upset to learn banks have been marketing and joint agreement excep- I don’t understand what is different selling their private financial data, from actions, I have to tell you there is not this year. I don’t understand why no count balances to Social Security numbers. much there. What you get, in fact, is one is willing to stand up and oppose Phyllis Schlafly of the Eagle Forum the whole of the doughnut. That is not the expansion of CRA when it is very is quoted: much protection. clear that this bill does, indeed, expand The checks you write and receive, the in- My able colleague from Alabama and CRA. Why else would the administra- voices you pay and the investments you I and others, the distinguished ranking tion support the bill? Why else would make reveal as much about you as a personal member of the committee, fought the Rev. Jesse Jackson support the bill? diary, but instead of banks keeping your in- good fight for this in the committee. We all know why. The bill expands formation under lock and key, it is being We just believe those protections are CRA. collected, repackaged and sold. inadequate. On page 15 of the bill, my colleagues In September of this year, the Los I thank my colleague for yielding me will see a provision entitled ‘‘CRA Re- Angeles Times reported that Charter the time. quirement.’’ This provision says that Pacific Bank of San Fernando Valley, I yield the floor. ‘‘the appropriate Federal banking CA, sold 3.7 million credit card num- The PRESIDING OFFICER. The Sen- agency shall prohibit a financial hold- bers to a felon who then allegedly ran ator from Alabama. ing company, or any insured depository up over $45 million worth of charges to Mr. SHELBY. Mr. President, how institution from’’ commencing any new the cardholders. It appears the felon much time do I have? activity or directly or indirectly ac- also billed customers for access to X- The PRESIDING OFFICER. Fifty- quiring control of a company engaged rated web sites the customers never five minutes. in any new activity, if the institution knew about. How do these people ex- Mr. SHELBY. I yield as much time as has a less than satisfactory CRA record plain that to their families, their I shall consume. on its most recent exam. neighbors, or their church members?

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.050 pfrm13 PsN: S04PT1 S13894 CONGRESSIONAL RECORD — SENATE November 4, 1999 The USA Today also ran an article public personal information with tele- Presidential commission or something on October 28, 1999, entitled ‘‘Congress marketers to market financial prod- such as that, or a study group, to study Passes Up Chance to Protect Your Fi- ucts or services offered under a so- the issue. That sounds nice. Too bad nancial Privacy.’’ Reporting on this called joint agreement. the President is not willing to make fi- specific bill before the Senate today, While the financial institution must nancial privacy a priority when it real- the article read: notify its customers about the sharing ly matters, right here and right now, Technology already has made it far easier of that information, it does not have to when we are giving financial institu- for disparate firms to collect, share and sell provide customers with the ability to tions the unprecedented ability to col- warehouses of sensitive data on individuals. opt out of such information sharing. lect, profile, share, and sell personal And the banking bill would encourage banks, Furthermore, under the joint agree- nonpublic financial information. insurance companies, and investment firms ment provision, the nonaffiliated third Critics claim that requiring a con- to link arms, making data swapping from a party could then share the nonpublic sumer to provide his affirmative con- wide range of sources much easier. personal information with its own affil- sent before sharing information would That, my friends, is the point. We are iate. As a result, the opt-out provision be a hindrance to the free flow of infor- about to pass this afternoon a financial provides no privacy protection at all. mation and basically unworkable. If modernization bill that represents in- For example, a financial institution this is the case, why did Citibank agree dustry interests in a big way. However, could endorse a for-profit investment to an opt-in requirement for non- we have forgotten the interests of the tip sheet service or stock day trading affiliated third parties to do business most crucial market participant of all service targeting senior citizens. The in Germany? You heard me right. The in America—the consumer, the Amer- financial institution could share con- biggest and most vocal proponent of ican citizen. Under this bill, the confidential information with that tip this bill signed an agreement with its sumer has little, if any, ability to pro- sheet service or day trading service German affiliates in 1995 that basically tect the transfer of his or her personal without affording the customer the required Citibank to obtain consent on nonpublic financial information. In- right to opt out of it. To be more spe- the application form before they could deed, the so-called privacy protections cific, the institution can give the tip share personal data to third parties. in this bill are a far cry from the pro- sheet or day trading service a list of Citibank agreed to give Germans more tection we give taxpayers on their tax wealthy senior citizens or, in the case privacy protections than we are giving returns. It is against the law for an un- of an insurance company, a list of re- our own citizens in the United States authorized inspection or disclosure of cent widows or widowers who recently today. an individual’s tax return. Violation of received a large insurance payment. Is Does that bother anybody else in this this law is punishable by fines, impris- this really what the Senate wants to Chamber besides me? It should. I think onment, or both. The Internal Revenue encourage and endorse? I hope not. this is a tragedy. I think it is absurd. Code even prescribes civil damages for The bill also allegedly includes an The banking industry has told us they the unauthorized inspection or disclo- all-out prohibition against the sharing would oppose this bill if we simply give sure and the notification to the tax- of customer account number informa- the consumer the ability to object to payer if an unauthorized inspection or tion for marketing purposes. What the sharing of nonpublic personal infor- disclosure has occurred. about sharing account numbers for the mation. First of all, I think it is hypo- I can assure Members these large fi- purposes of verifying customers’ credit critical of them to threaten us with nancial conglomerates will have more card accounts? The bill allows that. It that position, seeing as how Citigroup information on citizens than the IRS, is a way to get around it. Charter Pa- voluntarily agreed to provide con- but we have done virtually nothing to cific Bank in California claims they sumers the ability to opt out in Ger- protect the sharing of such nonpublic sell customer data files to merchants many. personal financial information for the for data verification purposes, not mar- Second, I believe Congress should not American people. keting purposes. Therefore, the privacy be dictated to by the financial industry Proponents of financial moderniza- provisions in the bill allow Charter Pa- or any other industry as to what provi- tion will say the bill includes the cific to sell the customer account in- sions we put in on behalf of the Amer- strongest privacy provisions ever en- formation to anyone, much less a felon, ican consumer. They should not write acted by Congress. While that sounds all over again. laws, ever. But Congress should. great, the reality is the provisions are As if that were not enough, all of a I have heard many Members talk porous and do not provide the con- sudden new language has appeared in about empowerment and how we must sumer with sufficient information to the conference report telling the regu- empower the individual. We spend a lot make an informed decision or the true lators to allow for the transfer of per- of time discussing empowerment zones. ability to opt out of information shar- sonal account numbers to nonaffiliated Why are we ignoring the empowerment ing. third party telemarketers if the infor- principle on this piece of legislation? First, the opt-out requirement does mation is encrypted. Nothing in this Why is Congress going to take a walk not apply to affiliate sharing. This is bill says financial institutions are pro- on this issue? Why is Congress not significant because the bill allows fi- hibited from giving the third party the going to stand up for the American nancial holding companies to affiliate key to unlock the encrypted informa- people and assure them the ability to with entities engaged in activities that tion. In fact, that is common practice. stop a financial institution from are ‘‘complementary,’’ to financial ac- This exception completely eviscerates profiling individuals based on their tivities, as well as grandfather com- the prohibition of third party tele- most personal behavioral patterns and mercial companies and those acquired marketers in the bill. This means U.S. then selling that information at will? from merchant banking. Bancorp in Minnesota could sell the ac- The American people clearly believe As a result, the holding company can count numbers to MemberWorks all this is too high a price to pay for this share a wealth of nonpublic personal fi- over again. This bill would not prevent bill. If we are going to allow the huge nancial information with affiliated it. financial conglomerates to affiliate to telemarketers selling nonfinancial I believe these privacy provisions are provide services—and we are—why products such as travel services, dental a sham. I have said it before. They are must we also give them the ability to plans, and so forth. Should an insur- a joke on the American people, and I sell, profit, and exploit an individual’s ance company be allowed to affiliate will not sit by and be a party to this. personal nonpublic profile? with a grocery store chain in order to When the American people, and they This is not a partisan issue. It does track an individual’s diet? Nothing in will, become aware of what Congress not matter if you are a Democrat or this bill prohibits this relationship or has done, it will be too late. This bill Republican, conservative, liberal, rich sharing of that information. lets the genie out of the bottle. I am or poor. An individual’s financial mat- Second, the bill includes an excep- sure, as soon as this bill passes, if not ters are very private to that individual. tion to the porous opt-out provision before, a lot of people will be running Families will not discuss how much that allows two or more financial insti- for cover and introducing privacy bills. money other family members make at tutions to share their customers’ non- I bet President Clinton will set up a the dinner table. It is too private. It is

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.053 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13895 too sensitive. They do not talk about it This legislation will repeal the Glass- supported its continued oversight of in- because they do not want to talk about Steagall Act, a Depression-era law that surance sales by banks and other finan- it and they are in control of what in- separates the banking, securities, and cial firms in my home state because of formation they share, even with their insurance industries. The Glass- the agency’s experience and expertise, loved ones. Steagall Act was originally adopted in and I agree. The bitter irony is that while the in- 1933 to stave off another Great Depres- I am also pleased that the conferees dividual is practicing discretion in sion. did not include the medical privacy America, Congress is belligerently aid- While it clearly served its purpose language included in the House-passed ing and abetting complete strangers in back then, the law regulating our fi- bill in the conference report. Senators accessing an individual’s most private nancial service industries is now sorely KENNEDY and JEFFORDS joined me in financial matters, including account out of date. sending a letter on July 20 to the balances, where they shop, and what The face of financial services has Chairman of the Senate Banking Com- they buy. We are aiding and abetting changed dramatically in recent years. mittee requesting that this section be the felon in California who bought a We are already witnessing a market- struck in conference. list of account numbers and charged up place at work that is producing new This language had been inserted in to $45 million. We are aiding and abet- services offered by financial institu- the House bill under the guise of pro- ting third party marketers such as tions of all shapes and sizes. But under viding medical privacy protections, but MemberWorks, who bought a list from current law, the financial firms are it would do no such thing. The lan- a bank and then automatically billed often forced to work around existing guage actually would have created a individuals’ accounts. prohibitions on the coupling of dif- laundry list of lawful uses of personally I have said it before and I will say it ferent services, often incurring unnec- identifiable health information with- again here, we are paying a very high essary costs to the ultimate detriment out any consent by the patient. price, a very dear price for this bill. of the consumer. Moreover, the House-passed language The American people are paying a very Modernizing current law will make would have wiped out the August dead- dear price for this bill, and they will the financial services industry more line for Congressional action included continue to pay it. It is very difficult competitive, both at home and abroad. in the Health Insurance Portability for me this afternoon to celebrate this This legislation will make it easier for and Accountability Act of 1996. I landmark achievement of financial banking, securities, and insurance strongly opposed this wrongheaded ap- modernization when I know we did so firms to consolidate their services, al- proach. I still have significant concerns at the expense of every American. lowing them to cut expenses and offer about how this bill may negatively im- I know this bill will pass with a lot of more products at a lower cost to busi- pact the privacy of individuals medical votes, but I urge my colleagues to vote nesses and consumers. records. However, I believe the recent against this bill mainly because of the The Treasury Department has esti- steps by the Clinton Administration to lack of privacy provisions. Ask your mated that increased competition in establish federal regulations governing mother, your father, your husband, or the securities, banking, and insurance some medical records of Americans is your wife about this. They will all tell industry could save consumers as much you that one-stop shopping is not an important step forward. as $15 billion annually. And I will reaffirm something I have worth giving up their financial privacy. I want to praise the Clinton Adminis- said over, and over again—this Con- The price is too high—too high. tration and the Senate and House congress must act on its own and pass a I yield the floor. ferees for reaching a fair and equitable Mr. President, I suggest the absence comprehensive federal law that will compromise regarding the application govern all medical records and all of a quorum. the Community Reinvestment Act The PRESIDING OFFICER. The those who could have access to them. (CRA). Since the enactment of the CRA Mr. President, I must also express clerk will call the roll. in 1977, financial institutions have The assistant legislative clerk pro- my deep disappointment with con- committed more than one trillion dol- ference report’s financial privacy proceeded to call the roll. lars to low and moderate income com- Mr. LEAHY. Mr. President, I ask visions. Congress has missed an his- munities. unanimous consent that the order for toric opportunity to provide funda- The continued strength of the CRA mental privacy of every American’s the quorum call be rescinded. means that hundreds of billions of dol- The PRESIDING OFFICER. Without personal financial information. lars worth of new home mortgage and objection, it is so ordered. Our right of privacy has become one Mr. LEAHY. Mr. President, what is small business loans will be made in of the most vulnerable rights in the In- the parliamentary situation? low- and moderate-income urban and formation Age. We must master new The PRESIDING OFFICER. The Sen- rural communities in the next century. threats to our individual privacy and ate is considering S. 900 under con- The compromise contained in the security, and in particular, to our abil- trolled time. conference report prevents a bank from ity to control the terms under which Mr. LEAHY. How much time is removing into a new line of business if it our personal information is acquired, maining for the proponents of the con- does not have a satisfactory lending disclosed and used. ference report? record under the CRA, while limiting But this conference report fails to The PRESIDING OFFICER. Senator the frequency of reviews under the give consumers the control over their GRAMM has 28 minutes; Senator SAR- CRA for small banks with a satisfac- personal financial information that BANES, 23 minutes; Senator SHELBY, 44 tory or excellent record. every American deserves. minutes; and Senator DORGAN, 19 min- I am pleased to report that in my After this conference report becomes utes. home state of Vermont, no banks, large law, new conglomerates in the finan- Mr. SARBANES. Mr. President, I or small, have received less than a sat- cial services industry will begin offer- yield the Senator 5 minutes off the isfactory CRA rating. It is my hope ing a widening variety of services, each time. that this legislation will encourage of which requires a customer to provide The PRESIDING OFFICER. Without banks in other states to improve their financial, medical or other personal in- objection, it is so ordered. community lending records. Enforce- formation. But nothing in the new law Mr. LEAHY. Mr. President, I rise ment of the CRA is a win-win situation will prevent these new subsidiaries or today to speak in support of the Con- for banks and neighborhoods across the affiliates of financial conglomerates ference Report on S. 900, the Financial country. from sharing this information for uses Modernization Act of 1999. As we pre- In addition, this legislation allows beyond those the customer thought he pare to enter the 21st century, it is states to continue to regulate insur- or she was providing it for. critical that our laws governing finan- ance sales by banks and other new fi- For example, the conference report cial services reflect the reality of the nancial entities, keeping this authority has no consumer consent requirements current marketplace and establish a where it properly belongs. The for these new financial subsidiaries or sound legal framework that will carry Vermont Department of Banking, In- affiliates to sell, share, or publish sav- us well into the new millennium. surance and Securities has strongly ings account balances, certificates of

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.055 pfrm13 PsN: S04PT1 S13896 CONGRESSIONAL RECORD — SENATE November 4, 1999 deposit maturity dates and balances, Act named after Senator Carter Glass be catastrophic to our economy and so, stock and mutual fund purchases and from Virginia, and Henry Steagall, a therefore, they cannot fail. sales, life insurance payouts or health Congressman from Alabama, the pri- The list of too big to fail banks has insurance claims. That is wrong. mary authors. It will allow banks and grown actually. Now it is 21 banks. I am an enthusiast when it comes to security underwriters to affiliate with There are 21 banks that are now too big the Internet and our burgeoning infor- one another. It also repeals similar to fail in this country. mation technologies. These are excit- provisions in other banking laws to We are also told by the Federal Re- ing times, and the digitalization of in- allow banks and insurance firms to serve Board that the largest formation and the explosion in the marry up. It will permit many new megabanks in this country, so-called growth of computing and electronic kinds of financial services to be con- LCBOs, the large complex banking or- networking offer tremendous potential ducted within a financial holding com- ganizations, need customized super- benefits to the way Americans live, pany or a national bank subsidiary. vision because their complexity and work, conduct commerce, and interact I want to describe why I think in size have reached a scale and diversity with their government. But we must many ways this effort is some legisla- that would threaten the stability of fi- make sure that information technology tive version of back to the future. I be- nancial markets around the world in remains our servant, instead of becom- lieve when this legislation is enacted— the event of failure. ing our master. and it is expected it will be—we will Let me read something from the Fed- Tuesday, I spoke with Treasury Sec- see immediately even a greater level of eral Reserve Bank president from Rich- retary Summers about the need for ad- concentration and merger activity in mond. This is a Fed regional bank ditional legislation to provide real fi- the financial services industries. president saying this: nancial privacy safeguards. In the next When there is this aggressive move Here’s the risk: when a bank’s balance session of the 106th Congress, I look toward even greater concentration— sheet has been weakened by financial losses, forward to working with him and Sen- and the concentration we have seen re- the safety net creates adverse incentives that economists usually refer to as a ‘‘moral ator SHELBY, Senator BRYAN, Senator cently ought to be alarming to all of us—but when this increased concentra- hazard.’’ Since the bank is insured, its de- SARBANES and others on the Senate positors will not necessarily rush to with- Banking Committee to enact com- tion occurs, we ought to ask the ques- draw deposits even if knowledge of the prehensive legislation to update our tion: Will this be good for the con- bank’s problems begin to spread. laws to provide fundamental privacy sumer, or will it hurt the consumer? Because the bank is too big to fail. We know it will probably be good for protections of the personal financial In these circumstances, the bank has an information of all Americans. those who are combining and merging. incentive to pursue relatively risky loans The need for financial privacy pro- They do that because it is in their in- and investments in hope that higher returns tection will not go away, and Congress terest. But will it be in the public’s in- will strengthen its balance sheets and ease should address it without further terest? Will the consumer be better the difficulty. If the gamble fails, the insur- delay. served by larger and larger companies? ance fund and ultimately taxpayers are left The PRESIDING OFFICER. The Sen- Bank mergers, in fact, last year held to absorb the losses. I am sure you remember ator from Texas. the top spot in the value of all mergers: that not very long ago, the S&L bailout Mr. GRAMM. Mr. President, Senator More than $250 billion in bank mergers bilked taxpayers for well over $100 billion. DORGAN is here to speak, and I will deals last year. That is $250 billion out Again, quoting the president of the yield the floor to allow him to speak, of $1.6 trillion in merger deals. Of the Richmond Federal Reserve Bank: but I want to make it clear to anyone banks in this country, 10 companies The point I want to make in the context of who has time that we are fast reaching hold about 30 percent of all domestic bank mergers is that the failure of a large, the magic moment where we are going deposits and are expected to hold more merged banking organization could be very to conclude the debate and vote. It is costly to resolve. Additionally, the existence than 40 percent of all domestic assets of such organizations could exacerbate the only fair that Senator SARBANES and I should the pending bank mergers that so-called too-big-to-fail problem and the as managers of the bill be allowed to now exist be approved. risks it prevents. Consequently, I believe the speak last. I ask unanimous consent After news that there was a com- current merger wave has intensified the need that we may hold our time until the promise on this financial services mod- for a fresh review of the safety net—specifi- end. ernization bill in the late hours, a com- cally the breadth of the deposit insurance The PRESIDING OFFICER. Without promise that there was going to be a coverage—with an eye towards reform. objection, it is so ordered. The Senator bill passed by Congress, I noted the This bill addresses a lot of issues. But from North Dakota. stock values of likely takeover targets it does nothing, for example, to deal Mr. DORGAN. Mr. President, I come jumped in some cases by more than $7 with megabanks engaged in risky de- to the floor in a circumstance where I a share. That ought to tell us what is rivatives trading. I do not know if will not support the legislation that is on the horizon. many know it, but we have something before the Senate today. Before I de- Clearly this legislation is not con- like $33 trillion in value of derivatives scribe the reasons for that, let me say cerned about the rapid rate of consoli- held by U.S. commercial banks in this I certainly admire the craftsmanship dation in our financial services indus- country. and the legislative skills of the Sen- tries. The conference report that is be- Federally-insured banks in this coun- ator from Texas and the Senator from fore us dropped even a minimal House try are trading in derivatives out of Maryland, the Senator from Con- bill provision that would have required their own proprietary accounts. You necticut, and so many others who have an annual General Accounting Office could just as well put a roulette wheel played a role in bringing this legisla- report to Congress on market con- in the bank lobby. That is what it is. I tion to the floor. Frankly, I did not centration in financial services over offered amendments on the floor of the think they were going to get it done, the next 5 years. Even that minimal Senate when this bill was originally but they did. step that was in the House bill was here to stop bank speculation in de- In the final hours of the Congress, dropped in this conference report. rivatives in their own proprietary ac- they bring a piece of legislation to the What does it mean if we have all this counts and also to take a look at some floor—it is called financial services concentration and merger activity? sensible regulation of risky hedge modernization. I know they feel pas- The bigger they are, the less likely this funds, but those amendments were re- sionately and strongly it is the right Government can allow them to fail. jected. You think there is not risk thing to do. For other reasons, I feel That is why we have a doctrine in this here? There is dramatic risk, and it is very strongly it is the wrong thing to country with some of our larger increasing. This piece of legislation do. I do not come to denigrate their banks—and that ‘‘some’’ is a growing acts as if it does not exist. It ignores it. work. We have a philosophical dis- list—of something called ‘‘too big to A philosopher and author once said: agreement about this legislation, and I fail.’’ A few years ago, we had only 11 Those who cannot remember the past want to describe why. banks in America that were considered are condemned to repeat it. We have a This legislation repeals some of the by our regulators so big they would not piece of legislation on the floor today major provisions of the Glass-Steagall be allowed to fail. Their failure would that I hope very much, for the sake of

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.058 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13897 not only those who vote for it and be- U.S. Government ended up owning non- I hear about fire walls and affiliates, lieve in it but for the American people performing junk bonds in the Taj all these issues. I probably know less who will eventually have to pick up the Mahal Casino in Atlantic City. How did about them than some others; I admit pieces—I hope this works. that happen? The savings and loans that. But I certainly know, having Fusing together of the idea of bank- were able to buy junk bonds. The sav- studied and read a great deal about the ing, which requires not just safety and ings and loans went belly up. The junk lessons of history, there are some soundness to be successful but the per- bonds were not performing. And the things that are not old-fashioned; there ception of safety and soundness, with U.S. Government ended up with those are some notions that represent tran- other inherently risky speculative ac- junk bonds. scendental truths. One of those, in my tivity is, in my judgment, unwise. Was that a perversion? Of course it judgment, is that we are, with this I do not usually quote William was. But it is an example of what has piece of legislation, moving towards Safire. I guess I have done it a couple happened when we decide, under a term greater risk. We are almost certainly times on the floor of the Senate. I sup- called modernization, to forget the les- moving towards substantial new con- pose we all look for things that are sons of the past, to forget there are centration and mergers in the financial comforting to our point of view. But certain things that are inherently services industry that are almost cer- William Safire wrote a piece 3 days ago risky, and they ought not be fused or tainly not in the interest of consumers. in the New York Times: merged with the enterprise of banking And we are deliberately and certainly, Americans are unaware that Congress and that requires the perception and, of with this legislation, moving towards the President have just agreed to put us all course, the reality—but especially the inheriting much greater risk in our fiat extraordinary financial and personal risk. perception—of safety and soundness. nancial services industries. Last year, we had a failure of a firm Then he talks about the risk. The I regret I cannot support the legisla- risk of allowing the coupling of inher- called LTCM, Long-Term Capital Man- agement. It was an organization run by tion. But let me end where I began be- ently risky enterprises with our bank- cause this is not one of those issues ing system, that requires the percep- some of the smartest people in the world, I guess, in the area of finance. where I don’t respect those who have a tion of safety and soundness, I person- different view. I said when I started—I ally think is unwise. I do not denigrate They had Nobel laureates helping run this place. They had some of the smart- say as I close—there was a great deal of those who believe otherwise. There is legislative skill exhibited on the part room for disagreement. I may be dead est people on Wall Street. They put together a lot of money. They had this of those who put this together. I didn’t wrong. think they were going to get this done, It may be that I am hopelessly old- hedge fund, unregulated hedge fund. They had invested more than $1 trillion frankly. I wish they hadn’t, but they fashioned. But I just do not think we did. That is a testament to their skill. should ignore the lessons learned in the in derivatives in this fund—more than I don’t know whether I am right or 1930s, when we had this galloping be- $1 trillion in derivatives value. Then, with all of the smartest folks wrong on this issue. I believe fervently havior by people who believed nothing around, and all this money, and an that 2 years, 5 years, 10 years from was ever going to go wrong and you enormous amount of leverage, when it now, we will look back at this moment could do banking and securities and all looked as if this firm was going to go and say: We modernized the financial this together—just kind of put it in a belly up, just flat out broke, guess services industry because the industry tossed salad; it would be just fine—and what happened. On a Sunday, Mr. did it itself and we needed to move then we saw, of course, massive fail- Greenspan and the Federal Reserve head and draw a ring around it and pro- ures across this country. And people Board decided to convene a meeting of vide some guidance, some rules and understood that we did something corresponding banks and others who regulations. I also think we will, in 10 wrong here: We allowed the financial had an interest in this, saying: You years time, look back and say: We institutions, and especially banks in have to save Long-Term Capital Man- should not have done that because we this country, to be involved in cir- agement. You have to save this hedge forgot the lessons of the past; those cumstances that were inherently risky. firm. If you don’t, there will be cata- lessons represent timeless truths that It was a dumb thing to do. strophic results in the economy. The were as true in the year 2000 or 2010 as The result was, we created barriers hit will be too big. they were in the year 1930 or 1935. saying: Let’s not let that happen again. You have this unregulated risky ac- Again, I cannot vote for this legisla- Let’s never let that happen again. And tivity out there in the economy, and those barriers are now being torn down tion. My hope is that history will prove you have one firm that has $1 trillion me wrong and that this will not pose with a bill called financial services in derivative values and enormous risk, modernization. the kind of difficulties and risks I fear and, with all their brains, it doesn’t it will for the American people. I remember a couple of circum- work. They are going to go belly up. stances that existed more recently. I One final point: With respect to the Who bears the burden of that? The Fed- regulation of risky hedge funds, and es- was not around during the bank fail- eral Government, the Federal Reserve ures of the 1930s. I was not around for pecially the issue dealing with the Board. value of derivatives in this country— the debate that persuaded a Congress We have the GAO doing an investiga- $33 trillion, a substantial amount of it to enact Glass-Steagall and a range of tion to find out the circumstances of held by the 25 largest banks in this other protections. But I was here when, all that. I am very interested in this country, a substantial amount being in the early 1980s, it was decided that no-fault capitalism that exists with re- we should expand the opportunities for spect to Long-Term Capital Manage- traded in proprietary accounts of those savings and loans to do certain things. ment. Who decides what kind of cap- banks—we must do something to ad- And they began to broker deposits and italism is no-fault capitalism? And dress those issues. That kind of risk they took off. They would take a when and how and is there a conflict of overhanging the financial institutions sleepy little savings and loan in some interest here? of this country one day, with a thud, town, and they would take off like a The reason I raise this point is, this will wake everyone up and lead them Roman candle. Pretty soon they would will be replicated again and again and to ask the question: Why didn’t we un- have a multibillion-dollar organiza- again, as long as we bring bills to the derstand that we had to do something tion, and they would decide they would floor that talk about financial services about that? How on Earth could we use that organization to park junk modernization and refuse to deal with have thought that would continue to bonds in. We had a savings and loan the issue of thoughtful and sensible exist without a massive problem for out in California that had over 50 per- regulation of things such as hedge the American people and for its finan- cent of its assets in risky junk bonds. funds and derivatives and as long as we cial system? Let me describe the ultimate perver- bring bills to the floor that say we can I yield the floor. sion, the hood ornament on stupidity. connect and couple, we can actually Mr. FEINGOLD. Mr. President, after The U.S. Government owned nonper- hitch up, inherently risky enterprises years of persistent lobbying and a flood forming junk bonds in the Taj Mahal with the core banking issues in this of political donations, three industries Casino. Let me say that again. The country. may soon have a lot to celebrate—the

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.060 pfrm13 PsN: S04PT1 S13898 CONGRESSIONAL RECORD — SENATE November 4, 1999 insurance, banking and securities in- in 1997 and 1998, was also a key part of That is a question I ask my col- dustries will have a huge victory if we the lobbying team on this issue. In fact leagues, and I think we all know the pass this conference report today. the Washington Post reported that the answer. I do want to note that some of those company’s chairman, along with sev- Mr. MIKULSKI. Mr. President, I rise Senators who helped to craft this legis- eral other corporate heads, made calls today to oppose the Financial Services lation are among the very best Mem- to White House officials the very night Modernization Conference Report. bers of the Senate. the conference hammered out an agree- While I oppose this legislation, I While I oppose this measure, I cer- ment on this bill. strongly commend the work of my sen- tainly commend them for their dedica- Lobbyists lined the halls outside the ior colleague Senator SARBANES. Be- tion and hard work on this bill. room where the conference met to rec- cause of his efforts, this bill is far bet- Nevertheless, with this legislation, oncile the House and Senate version of ter than previous versions. It does this Congress is declaring the ultimate the bill, and as we know, that is stand- more to help low and moderate income bank holiday—giving banks, insurance ard procedure on Capitol Hill. and minority Americans to have access companies and securities firms a per- As usual, corporate lobbyists lined to capital, credit and financial serv- manent vacation from the Glass- the halls, while the consumers who will ices. Senator SARBANES also improved Steagall Act and other Depression-era bear the impact—and consumer advo- the privacy provisions of this bill. banking law reforms. cates agree it will be an adverse im- Despite the significant improvements Advocates of this legislation will tell pact—of this bill, were left out in the Senator SARBANES fought so hard for, you that it is terrific for consumers, of- cold. there are still a number of what I call fering them one-stop shopping for all The banking industry was also there ‘‘yellow flashing lights’’ or warning their financial and insurance needs. that night, of course, since this legisla- signals that force me to oppose this But the reality is far more com- tion is a bonanza for them too, revolu- legislation. plicated and far less appealing—it is tionizing the kinds of services that First, I am concerned that if we relax likely to cause a merger-mania in the banks can offer. the laws about who can own and oper- industry that could severely limit con- Citigroup was there, and so was the ate financial institutions, an sumer choice and spur a rise in bank- presence of the more than $720,000 that unhealthy concentration of financial ing fees. Citigroup and its executives and sub- resources will be the inevitable result. This conference report also raises se- sidiaries gave in soft money to the po- The savings of the many will be con- rious issues about consumer privacy. litical parties in the 1998 election trolled by the few. If we relax banking Privacy advocates worry that it will cycle. regulations in this country, Americans give bankers, insurers and securities That is a huge sum, Mr. President, will know less about where their depos- firms virtually unlimited license to especially for an election cycle in its are kept and about how they are share account data and other sensitive which there was not even a presidential being used. information. election. Marylanders used to have savings ac- To top it all off, this legislation un- And in the current election cycle counts with local banks where the tell- dermines the Community Reinvest- Citigroup is off to a running start with er knew their name and their family. ment Act. $293,000 in soft money from Citigroup, We have already seen the trend toward Higher bank fees, reduced consumer its executives and subsidiaries. mega-mergers, accompanied by higher That is more than $1 million from choice and fewer protections for low- fees, a decline in service, and the loss Citigroup, it’s executives and subsidi- income loan assistance—these don’t of neighborhood financial institutions. sound very good to most consumers, aries in just two and a half years. The powerful banking interest This bill accelerates that trend. Mr. President. But they sound good to With a globalization of financial re- BankAmerica, its executives and sub- the industries that will benefit from sources, the local bank could be bought sidiaries also weighed in with more this legislation. This conference report by a holding company based in Thai- than $347,000 in soft money in the 1998 is music to the ears of the industries land. Instead of the friendly teller, con- election cycle, and more than $40,000 that have been lobbying for these sumers will be contacting a computer already in the current election cycle. changes for decades. And let’s not forget the insurance in- operator in a country half-way around And this lobbying campaign has left dustry. They have a massive stake in the globe through an 800 number. Their a trail of political contributions that is this legislation as well, an interest account will be subject to financial nothing short of stunning. A recent that is well-reflected by the size of the risks that have nothing to do with study by Common Cause put the polit- industry’s soft money contributions. their job, their community, or even the ical contributions of these special in- For instance, there is the Chubb Corp economy of the United States. I know terests at $187.2 million in the last ten and its subsidiaries, which gave nearly impersonalized globalization is not years. $220,000 in soft money contributions in what banking customers want when we That is why I am going to take this 1997 and 1998, and has given more than talk about modernization of the finan- opportunity to Call the Bankroll. This $60,000 already in 1999. cial services. lobbying effort for so-called financial Then there is the industry lobby Second, I am concerned that complex services modernization is truly breath- group, the American Council of Life In- financial and insurance products will taking, because it combines the clout surance, which also gave heavily to the now be sold in a cluttered market by of three industries that on their own parties with more than $315,000 in soft untrained individuals. Investment and are giants in the campaign finance sys- money contributions in 1997 and 1998, insurance planning for families is a tem, particularly the soft money sys- and more than $63,000 so far this year. very important process. These are tem. In the end, what do all these con- some of the most important decisions Together the power of their combined tributions add up to? They add up to that families make. They should be pocketbooks were a powerful force pro- tremendous access to legislators and made with the assistance of certified pelling this legislation through Con- broad influence over the process by professionals—whom the family can gress. which this legislation was crafted—ac- trust. By breaking down these fire One of these industries, the securities cess and influence that the average walls and allowing various companies and investment industry is a legendary consumer can’t even begin to imagine, to offer insurance and complex invest- soft money donor, and I will just high- let alone afford. ment products, we run the risk that light a few such firms that have lob- This is a serious problem, and I think consumers will be confused, defrauded, bied on behalf of this legislation. everyone in this Chamber knows it. and treated like market segments and Merrill Lynch has long called for The American people certainly know not individuals with unique needs and banking deregulation. The company, it. goals. its subsidiaries and executives gave They think our votes are on the auc- Third, I am concerned about the pri- more than $310,000 in soft money during tion block, and who can blame them. vacy provisions in this legislation. the 1998 election cycle. Who can blame them, and more than While the bill offers some privacy pro- Morgan Stanley Dean Witter, which that, who can show them why they tections for consumers, such as requir- gave more than $145,000 in soft money should think otherwise? ing financial institutions to provide

VerDate 29-OCT-99 01:20 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.066 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13899 customers with notice of its privacy are the kinds of things that could hap- account balance, payment history, policies, it does not go far enough. pen if this measure becomes law. even his account number and social se- There are several loopholes in the bill The measure does not even allow a curity number to their affiliates. And that will allow for the sharing of pri- customer to say No, I do not want any they can sell that information to third vate information among private insti- information picked up from my bank parties without even notifying the cus- tutions. Customers cannot object to account or from records with the insur- tomer whose information has been having that information shared in ance company which is a part of a larg- sold. those circumstances and there are no er financial institution to be shared by Given that banks already share and restrictions on the kind of detailed per- any other part of a financial institu- sell the personal information of their sonal information that can be shared. tion. If a customer wants information customers, why then do I oppose this Imagine the problems that could arise shared because that customer believes bill? I oppose it because I believe the if insurance providers could scrutinize that he or she would be helped by one bill will heighten the existing problem. your credit card purchases. Protecting stop shopping for financial activities, Mr. President, S. 900 will heighten personal information is one of the fine. Let that customer waive rights to the problem because, as noted by Rob- issues that matter most to the Amer- privacy by signing an appropriate ert Scheer in a November 2 Los Angeles ican people—and this bill does not form. But, the basic right to block in- Times editorial, ‘‘. . . [the bill] allows speak to their concerns. formation collected by a company from banks, insurance and brokerage firms Finally, the bill does not have the being shared by other parts of a com- to merge not only their equity but also safeguards we need against bank fail- pany is not in this bill. the vast accumulation of computerized ures. Banks will now be venturing out There is an ability to say that you do records on consumers’ buying habits, to engage in new and risky industries. not want the financial entity to simply health treatments, investments and If a bank fails during one of those ven- sell the information. But, I understand credit history.’’ tures, thousands of people and busi- that under this bill, your financial in- The tearing down of walls that now nesses who have worked hard and institution can share information they exist between banks, insurance firms, vested their money with that bank fail have acquired from your various ac- and securities firms, in this highly too. Let’s not forget about the tax- counts with other companies that they technological and computerized era, payers who will be left to pick up the have entered into certain types of mar- means the information now being pieces. These failures could set off a keting agreements. shared will expand exponentially. chain reaction and threaten the sta- Computers have great advantages. There will be more information to bility of our entire economy. They increase the efficiency of our share, more comprehensive informa- Mr. President, I am not opposed to a economy. But, they can store huge tion to share, and more people with necessary reform of our financial serv- amounts of information about a per- whom to share it and to whom to sell ices laws. But I believe the American son’s private habits and circumstances. it. Privacy rights are most vulnerable in people need greater protection before a In this age where we have an explosion the information age. And while I real- global financial plan is enacted. in the amount of information that is ize we cannot turn back the clock, I do Mr. HARKIN. Mr. President, I oppose collected about people, I believe it is believe we as policy makers can and this conference report. There are a essential that we erect strong barriers should provide some parameters for the number of important and positive ele- that prevent the passage of personal in- sharing and selling of personal infor- ments in the measure that provide for formation without a person’s permis- improvements in the regulation of fi- mation. Unfortunately, despite all of sion. the talk of self regulation, financial in- nancial institutions that will better I am also concerned about the weak- stitutions provide little if any privacy enable us to assure for the soundness of ness in the bill concerning the Commu- protections. The legislation before us our financial institutions. More could nity Reinvestment Act. We need to have been done in that area. But, there does nothing to improve this situation. keep the burdens of paperwork down, Finally, I understand that many fi- are clear improvements. There are pro- particularly for small banks. But, we nancial institutions have complained visions which help small banks and also need to provide for effective teeth that stronger privacy protections in small insurance companies acquire ad- in the requirement that banks provide the context of financial services mod- ditional resources that are important proper financial assistance to all parts ernization are unworkable, too costly to their ability to compete, to help of their service area. And, this bill falls to implement, and will, in part, defeat their customers and useful to economy short in that area. the purpose of allowing banks, insur- in their local areas. And, in a world Mrs. BOXER. Mr. President, al- ance companies, and brokerage firms marketplace, American institutions though I am a longstanding supporter to affiliate. I reject these arguments should have the resources needed to of financial services modernization, I for two specific reasons. compete in that marketplace. will vote against S. 900—the Financial First, at least one large U.S. finan- Unfortunately, these positive steps Services Modernization bill. I am con- cial institution offers its European cus- are outweighed by the negative impact cerned that this bill does far too little tomers the kinds of privacy protections the bill will have on the privacy rights to ensure the privacy of individuals. it contends it cannot offer its U.S. cus- of Americans. Under this legislation, Over the past three or four years we tomers. In 1995, that institution agreed banks, insurance firms, and credit card have seen an explosion of mergers in to allow their German customers to agencies that are owned by the same the financial services industry. ‘‘opt-in’’ to having their non-public fi- mega-corporation can share a con- Citibank and the Travelers Group nancial information shared with other sumer’s personal information. What merged. And in my home state, companies. kind of stock do you own? What infor- BankAmerica—California’s biggest Second, it is the current policy of mation can be acquired from your cred- bank—merged with NationsBank. All some U.S. financial institutions not it card statements? When do your CD’s of these mergers, in my home state and share their customers’ personal infor- mature? And, I fear, that information elsewhere, will undoubtedly have a mation without first getting the per- about a customer’s health might also major impact on consumers. And while mission of those customers or allowing become available to those in a com- we do not know what that impact will those customers to ‘‘opt-out’’ of such pany who might decide if a customer is ultimately be, I believe we do know it sharing. And those institutions, Amer- to get a loan or not get a loan. Do we will impact our privacy. Why? ican Express and U.S. Bancorp among want any possibility that a loan officer Although most Americans believe them, apparently have not found such might have access to information their financial data is private, they are policies overly burdensome or competi- about the medical condition and other wrong. In fact, current law allows tively disadvantageous. private medical matters of a loan ap- banks to do basically whatever they In closing, proponents of this legisla- plicant without the customer’s permis- want with the personal information tion suggest the privacy provisions in- sion? I believe that this bill should they collect from their customers in cluded in the bill are sufficient. Indeed, have clearly provided solid protections the course of doing business. Banks can some have suggested the privacy provi- in these areas. Unfortunately, these provide a consumer’s name, address, sions contained in this bill are historic.

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.095 pfrm13 PsN: S04PT1 S13900 CONGRESSIONAL RECORD — SENATE November 4, 1999 And although some small steps have of the things that many of the privacy SECURITIES TRANSACTIONS been made, like the notice provision advocates ignore is the reality of the Mr. LEVIN. Mr. President, I thank which requires financial institutions to marketplace. Having been a business- Senator SARBANES for entering into tell customers about their policies for man prior to coming to the Congress, I this colloquy with me during consider- disclosing nonpublic personal data and want to talk about that for a minute. ation of the conference report to the fi- the provision which prevents stronger The privacy advocates think Govern- nancial services modernization bill, S. state consumer privacy laws from ment must intervene on behalf of the 900. This is an important bill which being pre-empted, I believe the steps consumers against rapacious busi- will bring our nation’s regulatory are far too small. nesses that would somehow use the in- structure up to date with the many I wish I could support this bill. As I formation available to them in a way changes that have taken place over the said at the outset, I am a longstanding to do damage to those consumers. I past several decades regarding the ac- supporter of financial services mod- suppose there are some businesses that tivities of banks, securities firms, and ernization. I do not believe, however, might be so foolish as to do that, but insurance companies. the privacy of consumers should be, or the vast majority of businesses recog- Mr. SARBANES. I agree with my col- need be, sacrificed for such moderniza- nize that the only way they survive is league. The regulatory structure for tion. on repeat business, and the only way banks, securities firms, and insurance Mr. BENNETT addressed the Chair. they get repeat business is to keep companies has not kept apace of the The PRESIDING OFFICER (Mr. their customers happy. new activities in which these entities VOINOVICH). The Senator from Utah. I remember, during the hearings, have been able to take part. Mr. BENNETT. Are we in a quorum Congressman MARKEY raised some Mr. LEVIN. As I understand it, S. 900 call? specters and gave us examples of will, among other things, make The PRESIDING OFFICER. No, we abuses that banks had made of credit changes to the Glass-Steagall Act are not. card information of some of their cus- which separates banking and securities Mr. BENNETT. I seek recognition tomers. I made the comment there, and business so that banks and their affili- then. I will repeat it here: If a bank did to ates will be able to take part in securi- Mr. GRAMM. Mr. President, I yield 5 me what Congressman MARKEY accused ties transactions from which they were minutes to the distinguished Senator a bank of doing to one of its customers, previously prohibited. from Utah. I would change banks. I can solve the Mr. SARBANES. The Senator is cor- The PRESIDING OFFICER. The Sen- problem on my own very quickly. I rect. This is one of the fundamental as- ator from Utah. don’t need the Government to step in pects of this legislation. Mr. BENNETT. I thank the chairman in that situation to protect me. Mr. LEVIN. During Senate consider- of the committee. Furthermore, the bankers I deal ation of S. 900, I was concerned with I rise with my fellow members of the with, such as the retailers and others the ability of banks, securities firms, committee to express my delight at that want to sell me something, are and insurance companies to enter into this particular piece of legislation and very anxious not to offend me. They these new activities, and how these the fact that we have come to where we are very anxious to keep me happy. So new activities would be regulated and are. if they start using this information by whom. In particular, I was con- I take note of the work of Geoff that they have, as a result of the infor- cerned with how the securities activi- Gray, Linda Lord, Wayne Abernathy, mation age, in a way to service my ties of banks would be regulated. In the and other members of the committee needs better, they are going to keep me original version of S. 900 there were staff who have provided such tremen- happy. If Government interferes with loopholes which allowed the securities dous support for this. They have been their ability to do that, Government activities of banks to go unregulated available not only to the chairman but will get in the way. On the other hand, by the Securities and Exchange Com- to members of the committee as well if they—that is, the banks—use this in- mission. I felt that these loopholes in a way that has been tremendously formation in a way I don’t like, they should be closed. I believe that it helpful. I make that acknowledgment jeopardize our relationship, and they makes the most sense for the regu- of their contribution. jeopardize my business. lators who have the most experience in I will focus for just a moment on the We must understand here in the Con- securities transactions, namely the issues of privacy. Most of the other gress that customers are not the cap- SEC, to oversee these activities. issues relating to this bill have already tives of the business and banking orga- Mr. SARBANES. The Senator is cor- been aired and discussed. I don’t need nizations that depend upon them for rect. Under current law, banks are ex- to add to that. But I have paid a lot of revenue. Customers are the reason for empt from SEC regulation as brokers attention to the whole privacy issue their existence, and customers, con- and dealers. The original version of S. for the last 31⁄2, 4 years, primarily be- sequently, truly are king. That is an- 900 would have maintained this exemp- cause of my interest in medical con- other cliche that a lot of people who tion and would have allowed banks to fidentiality. I am the prime sponsor of haven’t been in business don’t under- conduct a large range of securities the bill relating to confidentiality of stand, but it is true. The customer is transactions outside SEC regulation. medical records and, frankly, have had king. If you do anything that violates Mr. LEVIN. It is for this reason that quite an education in the whole pri- your trust with the customer, you are I sponsored, with the support of Sen- vacy area as a result of that. going to pay for it, and you are going ator SCHUMER, an amendment to S. 900 We are in a new world. That has be- to pay for it in real dollars. which stated the following: ‘‘It is the come a cliche but, as with most cli- So I believe the balance that has intention of this Act subject to care- ches, it happens to be true. We are in a been struck in this bill to provide the fully defined exceptions which do not new world now where information is right amount of privacy protection is undermine the dominant principle of available at a level and a quantity that the correct balance, and I think we functional regulation to ensure that se- has never been the case before. Those must take some time and see how it curities transactions effected by a who complain about this and want to works out in the real world of real bank are regulated by securities regu- go back to the anonymity of the pre- commerce before we panic and say we lators, notwithstanding any other pro- electronic age are wishing for some- must pass further Federal regulations. vision of this Act.’’ This amendment thing that is simply not going to hap- With that, I record my approval of was agreed to during Senate consider- pen. Those who call themselves ‘‘pri- the work of the chairman and the ation of S. 900. Senator SARBANES, as vacy advocates,’’ who have attacked ranking member with respect to the ranking member of the Senate Banking certain portions of this bill, are wish- conference and all of the difficulties Committee, is it your understanding ing for a world that is long gone. connected therewith, and say this is a that the conference report upholds the The only question now with respect historic day that we are finally reach- approach which I sought in my amend- to the information that is available to ing after many, many years of wran- ment? us is not will it be available but, rath- gling on this subject. Mr. SARBANES. Yes, the conference er, how will it be responsibly used. One I yield the floor. report does uphold your approach.

VerDate 29-OCT-99 04:14 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.094 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13901 Mr. LEVIN. I thank the Senator. duplication of effort. The managers in- authorized under section 85 of the Na- Meaningful oversight by the SEC of se- tend that, in issuing regulations under tional Bank Act, as confirmed by the curities transactions by banks is crit- this section, the appropriate Federal United States Supreme Court case, ical to the financial health of our econ- supervisory agency may provide that Marquette National Bank v. First of omy. Functional regulation will help the nongovernmental entity or person Omaha Service Corp., 439 U.S. 299 (1978), to ensure that confidence in our finan- that is not an insured depository insti- to export the interest rates of the cial system continues. tution may, where appropriate and in State where their home office is lo- Mr. President, I have a copy of a let- keeping with the provisions of this sec- cated? ter from the Chairman of the Securi- tion, fulfill the requirements of sub- Mr. GRAMM. Mr. President, that is ties and Exchange Commission Arthur section (c) by the submission of its an- my understanding. I would add that na- Levitt to Senate Banking Chairman nual audited financial statement or its tional banks are also entitled to charge PHIL GRAMM in which Chairman Levitt Federal income tax return.’’ the rates of the host State of the inter- ‘‘enthusiastically support(s) the securi- Mr. GRAMM. The understanding of state branch, as authorized by inter- ties provisions contained in the (chair- the Senator from Connecticut is cor- pretations of the Comptroller of the man’s) Mark’’ which eventually be- rect. Currency, where there is some nexus came part of the conference report. I Mr. DODD. I thank the chairman for between the hose State and the loan. ask unanimous consent that a copy of his cooperation in this matter. SECTION 507 this letter be printed in the RECORD EFFECTIVE DATE OF TITLE I Mr. MACK. Mr. President, I rise to following this colloquy. Mr. DODD. Mr. President, I rise to engage in a colloquy with my good There being no objection, the letter engage in a colloquy with the chairman friend Senator GRAMM, chairman of the was ordered to be printed in the of the Banking Committee. Mr. Chair- Committee on Banking, on section 507 RECORD, as follows: man, the conference committee agreed of the Financial Services Moderniza- SECURITIES AND EXCHANGE COMMISSION, to make the effective date of imple- tion Act of 1999. I want to confirm that Washington, DC, October 14, 1999. mentation of title I, except for section section 507 is intended to apply only to Hon. PHIL GRAMM, 104, 120 days from the date of enact- the amendments made by subtitle A of Chairman, Committee on Banking, Housing and ment. We reached this decision to pro- title V of the bill, and that section 507 Urban Affairs, U.S. Senate, Dirksen Senate vide the regulators with an oppor- is not to be construed, under any cir- Office Building, Washington, DC. tunity to implement this legislation ef- cumstances, to apply to any provision DEAR SENATOR GRAMM: As you know, the fectively. Am I correct in stating that of law other than the provisions of sub- Securities and Exchange Commission has title A. For instance, subtitle A of title long supported financial modernization leg- it is the intent of the conferees that islation that provides the protections of the title I become effective 120 days after V relates only to disclosure of non- securities laws to all investors. I believe that enactment even if the agencies are not public personal information to non- the changes to the securities laws contained able to complete all of the rulemaking affiliated third parties. This means in the proposed amendments to the Chair- required under the act during that that section 507 of the bill does not su- men’s Mark that we agreed upon today will time. persede, alter, or affect laws on the dis- significantly strengthen the investor protec- Mr. GRAMM. Mr. President, the un- closure of information among affiliated tions of the bill. derstanding of the Senator from Con- entities. In particular, section 507 does With the approval of those amendments, necticut is correct. In addition, it not supersede, alter, or affect the pro- which I understand you are distributing now, I enthusiastically support the securities pro- should be noted that in some instances, visions of the Federal Fair Credit Re- visions contained in the Mark. no rule-writing is required. For exam- porting Act (or FCRA) regarding the I appreciate your willingness to work with ple, new section 4(k)(4) of the Bank communication of information among us on these provisions to protect investors. Holding Company Act, as added by sec- persons related by common ownership Sincerely, tion 103 of the bill, explicitly author- or affiliated by corporate control, nor ARTHUR LEVITT. izes bank holding companies which file does section 507 supersede, alter, or af- SECTION 711 the necessary certifications to engage fect the existing FCRA preemption of Mr. DODD. Mr. President, I rise to in a laundry list of financial activities. state laws with respect to the exchange engage in a colloquy with the chairman These activities are permissible upon of information among affiliated enti- of the Banking Committee. As the the effective date of the act without ties. I yield to my friend. Chairman is aware, some legitimate further action by the regulators. The Mr. GRAMM. Mr. President, the un- concerns have been raised over the po- conferees recognize, however, that re- derstanding of the Senator from Flor- tential burdens imposed by the report- finements in rulemaking may be nec- ida is correct. Section 507 is intended ing requirements contained in section essary and desirable going forward, and to apply only to subtitle A of title V of 711. for example, have specifically author- the bill, and is not to be construed to Am I correct in stating that section ized the Federal Reserve and the Treas- apply to any provision of law other 711(h)(2)(A) provides that Federal bank- ury Department to jointly issue rules than the provisions of the subtitle. ing regulators shall ‘‘ensure that the on merchant banking activities. If reg- Thus, section 507 does not affect the ex- regulations prescribed by the agency ulators determine that any such rule- isting FCRA provisions on that stat- do not impose any undue burden on the making is necessary, the conferees en- ute’s relationship to state laws. parties and the proprietary and con- courage them to act expeditiously. SECTION 502(b) fidential information is protected.’’ SECTION 731 Mr. CRAPO. Mr. President, I respect- Mr. GRAMM. Mr. President, the un- Mr. GRAMS. Mr. President, I ask fully request of the chairman that we derstanding of the Senator from Con- Senator GRAMM, in his capacity as engage in a colloquy regarding section necticut is correct. chairman of the Senate Banking Com- 502(b), which describes the opt-out no- Mr. DODD. Mr. President, I also in- mittee and one of the chief authors of tice required by subtitle A. quire of the chairman of the Banking the Gramm-Leach-Bliley Act that is I would like to clarify that a finan- Committee whether I am also correct before us today, to clarify a point cial institutions’ obligation to send an in stating that the statement of man- about section 731 of the act. Is it cor- opt-out notice under this subtitle is agers provides that ‘‘the Federal bank- rect that section 731 is not intended to satisfied when it has complied with no- ing agencies are directed, in imple- affect banks whose home office and au- tification requirements regarding pri- menting regulations under this provi- thorized branch offices are not located vacy policies and practices under sec- sion, to minimize the regulatory bur- in the State described? tion 503, and the consumer is further den on reporting parties. One way in Mr. GRAMM. Mr. President, that is given the right to direct that their which to accomplish this goal would be correct. non-public personal information not be wherever possible and appropriate with Mr. GRAMS. Mr. President, I also in- disclosed to non-affiliated third par- the purposes of this section, to make quire whether it is also Chairman ties. A separate opt-out notice need not use of existing reporting and auditing GRAMM’s understanding that, notwith- be provided for each third party disclo- requirements and practices of report- standing section 731, national banks sure, provided that the consumer re- ing parties, and thus avoid unnecessary with interstate offices are in all events ceives a prior clear and conspicuous

VerDate 29-OCT-99 04:14 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.010 pfrm13 PsN: S04PT1 S13902 CONGRESSIONAL RECORD — SENATE November 4, 1999 opt-out opportunity covering third thority of the state in which the insur- Mr. BENNETT. Mr. President, I also party disclosures generally. ance company is located. seek clarification of the chairman of Mr. GRAMM. Mr. President, the in- Mr. GRAMM. Mr. President, yes, the the Banking Committee that section terpretation of the Senator from Idaho Senator’s understanding is correct. 401 of the Gramm-Leach-Bliley Act is on this point is correct. The intent of Mr. BENNETT. Mr. President, I not intended to limit or otherwise af- section 502 is to assure that consumers thank the Chairman. fect the powers and authorities of receive clear and conspicuous notice of SECTION 502(d) grandfathered unitary thrift holding a financial institutions’ privacy poli- Mr. HAGEL. Mr. President, will the companies after such companies are ac- cies and practices, and to assure that chairman of the Banking committee quired by companies that, immediately consumers can direct that their non- yield for a few questions? prior to the acquisition, engage only in public information not be disclosed to Mr. GRAMM. Mr. President, I yield the activities permissible for financial third parties. So long as consumers re- to the vice chairman of the Financial holding companies. Is that correct? ceive a notice that gives them a clear Institutions Subcommittee. Mr. GRAMM. Mr. President, the un- choice about whether or not that non- Mr. HAGEL. Mr. President, I inquire derstanding of the gentleman from public personal information can be of the chairman with respect to the Utah is correct. transferred to non-affiliated third par- provision in section 502(d) that pro- Mr. GORTON. Mr. President, will the hibits the sharing of customer account ties, the opt-out choice need not be chairman yield to me for a question? numbers with non-affiliated third par- provided separately for each disclosure Mr. GRAMM. Mr. President, I would ties for marketing purposes, is it the of such information. be happy to do so. intent that the third party be able to Mr. GORTON. Mr. President, it is my INSURANCE COMPANY INVESTMENTS receive customer account number upon Mr. BENNETT. Mr. President, I rise understanding that, under section 401 approval by the customer? of the Gramm-Leach-Bliley Act, the to engage the distinguished chairman Mr. GRAMM. Mr. President, yes, that Office of Thrift Supervision has the au- of the Banking Committee in a col- is correct. loquy on the ability of insurance com- Mr. HAGEL. Mr. President, I also in- thority to prevent evasions of the uni- panies to make investments that are quire of the chairman whether, in fact, tary thrift holding company grand- treated as ‘‘financial in nature’’ under it is his expectation that the regu- father provisions of the act. Will the this legislation even though the invest- lators will use their broad exemptive chairman tell me if that is correct? ments are made in companies that are authority given in the legislation to Mr. GRAMM. Mr. President, that is not engaged in financial activities. allow for sharing encrypted account correct. Am I correct that overlap between numbers if the customer has given his Mr. GORTON. Mr. President, there is board members and officers of a finan- or her authorization? a long-standing body of law that ad- cial holding company and a portfolio Mr. GRAMM. Mr. President, yes, that dresses the issue of when an acquisi- company in which an insurance com- is true. tion or change in control of a savings pany has an investment is not intended Mr. BENNETT. Mr. President, would association or thrift holding company to result necessarily in a determina- the chairman please yield to me for a occurs. Is it intended that the Office of tion that the holding company rou- question? Thrift Supervision would apply to ex- tinely manages or operates the port- Mr. GRAMM. Mr. President, I would isting body of law to determine if an folio company? Or to state this inten- be happy to yield to the chairman of evasion has occurred? tion another way, the existence of rou- the financial Institutions Sub- Mr. GRAMM. Mr. President, in re- tine holding company management or committee. sponse to my colleague, let me state operation is to be based upon an assess- Mr. BENNETT. Mr. President, I in- that section 401 is intended to author- ment of actual holding company inquire of the distinguished chairman of ize the Office of Thrift Supervision to volvement in day-to-day management the Banking Committee whether the prevent evasions through actions that and operations of the portfolio com- managers felt so strongly that they are consistent with the statutory, reg- chose to highlight this exemption for pany, rather than board member or of- ulatory and interpretive provisions encrypted account numbers in report ficer overlaps. governing acquisitions or changes in Mr. GRAMM. Mr. President, the un- language. We would hope the regu- control of savings associations and derstanding of the Senator from Utah lators would use this exemptive au- thrift holding companies that were in thority. Isn’t that true? is correct. effect on the grandfather cut-off date, Mr. GRAMM. Mr. President, Yes. May 4, 1999. Mr. BENNETT. Mr. President, I also Mr. HAGEL. This commonsense ap- inquire of the distinguished chairman proach is consistent with consumer TITLE V Mr. ALLARD. Mr. President, I wish of the Banking Committee whether I choice and with the customer privacy. am also correct that the exception We expect the regulators to use their to engage my esteemed colleague, Sen- under which a holding company may exemptive authority to allow legiti- ator GRAMM, in a brief colloquy to clar- routinely manage or operate a port- mate business practices that safeguard ify two items pertaining to title V, folio company when necessary or re- customer financial information to con- subtitle A. First Mr. President, is it quired to obtain a reasonable return on tinue to operate and provide customers Chairman GRAMM’s understanding that investment is intended to apply to an with greater choices of products and the term ‘‘nonpublic personal informa- investment in a company that has been services. tion’’ as that term is defined in section generating a below average rate of re- SECTION 401 509(4) of title V, subtitle A, applies to turn on investment either at the time Mr. BENNETT. Mr. President, I rise information that describes an individ- the holding company becomes a bank to engage in a colloquy with the distin- ual’s financial condition obtained from holding company or that generates a guished chairman of the Banking Com- one of the three sources as set forth in below average rate of return at a subse- mittee. It is my understanding that the definition, and by example would quent time? section 401 of the Gramm-Leach-Bliley include experiences with the account Mr. GRAMM. Mr. President, the un- Act is intended to prohibit acquisitions established in the initial transaction or derstanding of the Senator from Utah of grandfathered unitary thrift holding other private financial information? is also correct. companies by commercial companies. Mr. GRAMM. Mr. President, that is Mr. BENNETT. Mr. President, fi- Section 401 is not intended to prohibit my understanding. nally, I would inquire whether I am acquisitions of grandfathered unitary Mr. ALLARD. The second item re- correct that, consistent with the prin- thrift holding companies by companies lates to an amendment to the Fair ciple of functional regulation applied that, immediately prior to the acquisi- Credit Reporting Act, ‘‘FCRA’’ in 506(b) throughout this legislation, the deter- tion, engage only in the activities per- of title V, subtitle A. Mr. President, it mination whether an investment made missible for financial holding compa- is my understanding that striking the by an insurance company is made in nies. Is that correct? FCRA’s outright prohibition on various the ordinary course of business in ac- Mr. GRAMM. Mr. President, the un- agencies drafting trade regulation cordance with relevant state law derstanding of the gentleman from rules or other regulations is intended should be made by the insurance au- Utah is correct. to allow for these agencies to fulfill

VerDate 29-OCT-99 04:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.013 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13903 their mandate under this title to issue sonal financial information. Financial while beneficial to the industry, should regulations. The deletion leaves the institutions share and sell social secu- not come at the expense of the con- law silent on the issue of agencies rity numbers, addresses, information sumer. Industry groups are opposed to issuing regulations outside of this about what stocks we own, what privacy provisions—and go so far as to title, and it should not be construed to checks we write, what we charge on say that privacy provisions could make mean that an agency now has a man- our credit cards and how much money it tougher for them to fight fraud. It’s date to issue any such regulations. Mr. we have in the bank. All of this with- no surprise they feel this way, consid- President, does the distinguished chair- out the knowledge or permission of ering banks typically get 20-to-25 per- man of the Banking Committee, Mr. their clients. I believe Americans cent of the revenue generated by the GRAMM, share this view of the provi- should have the opportunity to pro- marketer. But a handful of financial sion? hibit a financial institution from shar- companies already allow customers to Mr. GRAMM. Mr. President, I agree ing or selling this personal financial restrict the use of private informa- with Senator ALLARD’s assessments on information. tion—and it doesn’t seem to be hurting these points. The bottom line is simple: Bank cus- them. American Express sends cus- Mrs. FEINSTEIN. Mr. President, I tomers should have the final say in tomers a notice once a year, asking rise to support the Financial Services whether their bank sells or even shares customers if they want to receive prod- Modernization Act. I would like to ex- their personal financial information. uct offers from American Express or plain why I will vote in favor of this Regardless of whether that information outside merchants. Even if customers conference bill, but I also want to dis- is being shared with a financial institu- want the offers, the company never cuss one area where I feel this legislation within a bank’s shareholding com- gives detailed information about a tion falls significantly short—privacy. pany or with a third party. The con- transaction history. If American Ex- The financial modernization bill de- sumer should decide who has access to press can protect its customer’s pri- serves the support of this body for sev- this personal information. According vacy, why can’t all financial institu- eral reasons: to an October 21st USA Today article, tions? (1) First, it reforms our antiquated fi- U.S. Bancorp sold customer informa- The conference bill includes only a nancial services laws. By allowing a tion to a telemarketer membership weak privacy provision allowing customers to say no to their bank’s disclo- single organization to offer any type of program. U.S. Bancorp customers sure of information to third parties— financial product, the bill will stimu- began complaining that they were such as telemarketers. I think this is a late competition and innovation in the billed for marketing services they serious flaw in an otherwise very good banking, securities and insurance in- never agreed to. According to the law- bill. In fact, the language adopted by dustry. It will increase choice and re- suit against U.S. Bancorp, the bank’s the conference authorizes financial in- duce costs for consumers, communities customers say they were never even stitutions and third parties to enter and businesses. According to Secretary contacted by the marketing service be- into joint marketing agreements that Summers, Americans spend over $350 fore the charges appeared on their would allow them to skirt the opt-out billion per year for fees and commis- statements. requirement. And the bill intentionally sions for brokerage, insurance and In one case, the suit says, a 90-year- does not restrict the sharing of private banking services. If increased competi- old woman who had been a customer of financial information among a finan- tion yielded savings to consumers of U.S. Bancorp for more than 50 years cial institution’s affiliates. I hope my even 5 percent, they would save over was billed for a program that offers dis- colleagues will work with me in the fu- $18 billion per year. counts on computer products. The ture to see that Americans’ privacy is (2) By removing the barriers to com- woman didn’t own a computer. Before better protected. petition, the act will also enhance the she died, she tried for 11 months to get The Financial Services Moderniza- stability of our financial services sys- the telemarketing firm to remove the tion Act makes the most important tem. Financial institutions will be able charges from her credit card account. legislative changes to the structure of to diversify their product offerings— The legislation does not do enough to the U.S. financial system since the and therefore their sources of revenue. prevent this type of problem. In an- 1930s. I believe the bill is good for the They will also be better able to com- other example, the Los Angeles Times U.S. economy as well as our ability to pete in the global financial market- reports that a small San Fernando Val- compete in global financial markets. place, which is rapidly changing. ley bank unknowingly became the ac- Despite my reserves about the privacy Though U.S. banks still maintain some cessory to a huge credit card scam. The provisions in the bill, I support S. 900, of the highest numbers in assets, they bank sold 3.7 million credit card num- and urge its adoption by my col- no longer rank the highest among the bers to a felon, who then allegedly leagues. world’s top banks in profitability. The bilked cardholders out of millions of Mr. KERRY. Mr. President, I express financial services modernization bill dollars. my genuine appreciation to all the gives U.S. financial institutions the Under the act, people applying for a members of the Senate Banking Com- flexibility and expanded powers to stay mortgage will have no say over who mittee for their hard work, commit- competitive in the changing market. has access to their personal financial ment and dedication to resolving the (3) The conference bill benefits Amer- data. If a person has been treated for tough and contentious issues sur- icans communities by preserving the an illness and paid for their medical rounding the conference report that we Community Reinvestment Act. I am tests with their credit care or personal are considering today. It is no exag- pleased to see that the act requires checks, that individual’s bank and geration to suggest that this con- that banks maintain a good track mortgage company will share this in- ference report represents more than 15 record in community reinvestment as a formation, without the knowledge or years of hard work and perseverance in condition for expanding into newly au- consent of the client. Tax information, tackling one of the most important thorized businesses. This is the first insurance information, and records of issues in the new economy. time that a bank’s rating under the medical tests they have purchased will I support the conference report. How- CRA will be considered when it expands be fair game for financial institutions. ever, I do so with some reservations outside of traditional banking activi- This sensitive information should be about the way the final product was de- ties. I am also happy to see that the kept private—not shared between veloped and because it does not include act applies CRA to all banks without banks, insurance companies, and secu- a number of important consumer pro- exception. rities firms. tection provisions. For example, the Despite these merits, there is one For 66 years—since the Glass- legislation will pre-empt important issue of great concern to many Califor- Steagall Act was enacted after the De- state legislation prohibiting certain nians and many Americans—the lack pression—a boundary has existed be- predatory lending practices that result of privacy provisions in the legislation. tween banks, insurance companies, and in poor, vulnerable, elderly home- As my colleagues know, financial insti- securities firms. This bill breaks owners being bilked out of thousands of tutions are currently permitted to doc- through that wall, by allowing finan- dollars or, in some cases, losing their ument, profile, and sell our most per- cial entities to merge. This change, homes.

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.015 pfrm13 PsN: S04PT1 S13904 CONGRESSIONAL RECORD — SENATE November 4, 1999 However, I believe enactment of fi- nothing in Section 46(d) supersedes the dwarf the savings and loan payout. For nancial modernization is a critical first current authority of the FDIC over example, recently the Federal Reserve step toward breaking down barriers to bank subsidiary activities under Sec- Bank felt compelled to rescue the Long allow financial services companies to tion 24 of the Act. The provision recog- Term Capital, a hedge fund, even provide better services at lower costs nizes that, consistent with current and though it was not a federally insured to consumers and to help insure Amer- proposed rules of the FDIC, investment bank. ican dominance of global finance in the authorities of state-chartered bank That is why I strongly supported in- 21st Century. subsidiaries are not to be restricted to cluding a provision that would have re- As we all know, breaking down the any greater extent that those author- quired large banks to back some por- walls that separate commercial bank- ized for a state bank itself. More par- tion of their assets with subordinated ing from the insurance and securities ticularly, in several states, including debt. Holders of this type of debt would industries is of enormous importance Massachusetts, state banks have a long have a strong incentive to monitor to the future of the financial services history of exercising limited authority each financial institution’s level of industry, which has undergone an im- to invest in common stocks either di- risk to protect their investment. This mense transformation in recent years. rectly or through wholly-owned sub- approach could also serve as an early Dramatic changes in technology along sidiaries. The FDIC has acknowledged warning signal for regulators of banks with historic mergers, consolidations, and approved such investment author- that are engaged in risky activities. and acquisitions have reordered the ity through so-called investment sub- Unfortunately, this requirement was structure of the financial services in- sidiaries. It is my understanding that reduced to only a study. I will be work- dustry and made the statutory distinc- the newly added Section 46(d) acknowl- ing with my colleagues and with fed- tions that have existed in the law until edges and preserves that authority and eral regulators to address this problem today less and less relevant in the real does not contemplate imposition of ad- in the future. I am also very disappointed that the world. ditional regulatory requirements or conference report does not include ac- As a result of these changes, large impediments. ceptable language regarding mutual in- corporations have begun bypassing tra- I am also glad that the conference re- surance companies. Many States cur- ditional financial institutions and ac- port will permit financial institutions rently have laws that restrict the hos- cessing capital markets directly. Many to engage in merchant banking activi- tile take over of a mutual insurance large corporations now meet their ties. This will allow banks to invest in company that has recently converted funding needs by issuing commercial small companies for the purpose of ap- to a stock insurer. However, the con- paper, rather than by borrowing from preciating and ultimately reselling the ference report allows these state laws banks. Banks and thrifts are also expe- investment. The merchant banking to be preempted ‘‘so long as such re- riencing increased competition from provisions limit the day-to-day man- striction does not have the effect of agement of companies by financial in- non-banking institutions that offer a discriminating, intentionally or unin- stitutions and the duration of the in- range of financial products and serv- tentionally, against an insured deposi- vestment. I am hopeful that these new ices. During this time, commercial tory institution or an affiliate thereof powers will allow banks to provide banks have been unable to provide con- * * *.’’ I believe that this language, as more capital for small businesses, sumers with a number of important fi- currently written, would allow only which have been leading contributors nancial products and services. banks whose takeover attempts were The conference report that the Sen- to the economic growth of our country. denied by a state insurance commis- ate is considering today repeals the The conference report includes an sioner to litigate. The ability to liti- Glass-Steagall Act, which has sepa- important limitation on banking and gate would not be extended to any rated banks from securities firms since commerce which eliminates the ability other potential acquisitor. of commercial firms to form new uni- the 1930s. It also repeals a similar pro- This law means that any state retary thrifts unless they had owned or vision that has separated banking and striction of a banking organization’s insurance. It will permit the creation had applied to own a unitary thrift by attempts to takeover a demutualizing of new financial holding companies May 4, 1999. Under the conference reinsurance company could be construed that could offer banking, insurance, se- port, current unitary thrift holding by a court as discrimination against curities and other financial products. companies and their savings associa- the bank. I believe that this could lead I am very pleased that the Treasury tion subsidiaries would be able to con- to costly and time consuming litiga- Secretary Summers and Federal Re- tinue their normal activities. However, tion for every insurance company that serve Bank Chairman Alan Greenspan future sales of unitary thrift holding attempts demutualization. Further, if have come to an agreement on the op- companies would not be allowed to a court were to fail to interpret the erating subsidiary issue that was in- commercial firms. Sales would be lim- word ‘‘discrimination’’ narrowly, this cluded in the conference report. Banks ited only to financial holding compa- new language could essentially end the will now be able to choose the cor- nies. important state preemption provision porate structure under which to con- Building this fence around financial only in cases where a bank is the product new non-banking activities—ei- firms to keep them largely isolated posed acquisitor. It would not allow ther through an operating subsidiary from joint ownership with commerce other potential acquisitors to litigate. or through an affiliate. The bill would and industry is an extremely impor- I am also very concerned about the allow operating subsidiaries to engage tant safeguard in this legislation. My provision included in the conference rein merchant banking activities, but first priority as member of the Senate port that will allow mutual insurance only if the Federal Reserve and the Banking Committee is to maintain the companies to redomesticate to another Treasury jointly agree that the activ- safety and soundness of our financial state and reorganize into a mutual ity is permissible. A bank would have system to insure that American tax- holding companies or stock companies. to be well capitalized and well man- payer funds are not necessary to bail I believe that this provision will allow aged after deducting its equity invest- out our financial institutions. How- some mutual insurance companies to ment in an operating subsidiary from ever, we are now in an era in which move to states without adequate con- its capital in order to take advantage banks and other firms are becoming sumer protections and could endanger of these new activities. I believe that ‘‘too big to fail’’ where the government policyholders during a conversion from this compromise will let banks choose will intervene if its collapse would mutual to stock form. their own operating structure and will cause a major harm to the economy. I am pleased, however, that the con- help maintain safety and soundness in With the enactment of this legislation, ference report includes the PRIME Act, our financial system. banks, insurance and securities con- which will provide an opportunity to The operating subsidiary provisions glomerates will grow even larger and lend a helping hand to those in need of also include language that would re- more intertwined. The failure of any financial aid and technical assistance tain state authority over state char- one of these new conglomerates could so that they can fulfill their personal, tered bank subsidiaries. Section disrupt our financial system and risk a family, and community responsibil- 121(d)(1) of the final bill provides that taxpayer-funded bailout that would ities. Microenterprise development has

VerDate 29-OCT-99 04:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.078 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13905 given many a chance to break the cycle that would have given every customer regardless of the neighborhood they of poverty and welfare and move to- the right to see what financial infor- live in, regardless of their race or cir- ward individual responsibility and fi- mation would be shared with affiliates cumstances, have access to the bank nancial independence. or third parties. I also supported an loans that are needed to buy a home or Specifically, the PRIME Act author- opt-in standard for consumers whose fi- start a business. It is a law that izes funding for technical assistance to nancial institution provides their per- breathes life into the rhetoric we all give microentrepreneurs access to in- sonal financial information to unaffili- use extolling the virtues of equal op- formation on developing a business ated third parties. This provision was portunity. We cannot and must not re- plan, record-keeping, planning, financ- supported by 26 state Attorneys Gen- turn to the days of poverty and des- ing and marketing, which are crucial eral and many others. I will be working peration borne of bank redlining in too to small business development. with my distinguished colleagues in- many communities across the nation. For example, PRIME would augment cluding the Senator from Maryland Mr. This conference report is far from funds for valuable programs run by SARBANES, as well as Senators BRYAN, perfect, but few compromises ever are. Working Capital, located in Massachu- SHELBY and others to work on A product that represents more than 15 setts and a recipient of a Presidential strengthening safeguards to protect years of hard work and the debates of Award for Excellence in Microenter- the privacy of every American. literally hundreds of individuals and prise Development in 1997. Working All throughout the consideration of disparate constituencies could hardly Capital currently offers a number of this legislation, from the very first represent a perfect product to every valuable programs to its microenter- meetings of the Banking Committee, side. This report is no different. But I prise customers which could be aug- through floor consideration and the will tell you, and I think almost all of mented by additional funding under conference negotiations, Congressional us would agree that in the American system of free enterprise the interests PRIME such as providing business Democrats and the Administration of consumers and industry are best credit to microentrepreneurs and pro- have insisted that the Community Re- served if we permit competition as long viding business education and training investment Act must be allowed to on how to draw up business plans and as that competition is fair and does not grow and adapt to the new cir- prepare financial projections. These give any industry or player an advan- cumstances being created for the finan- programs instruct microentrepreneurs tage over another. I believe that this cial industry. Despite the most aggres- on how to use these tools in managing legislation is an important step in fa- sive, uninformed, and sustained attack their businesses. This type of assist- cilitating that competition and it on that important law I have ever wit- ance is crucial to the development of meets that test by allowing every nessed, I am happy to say that the new our low-income communities and American access to a broader group of law will reflect this important goal. financial services at a lower cost. We throughout the United States. The new law established that, as a I very much appreciate that the con- have a historic chance to provide precondition for any bank to exercise ference report includes a provision to meaningful financial services reform. I any of the new powers authorized by repeal the Savings Bank Provisions in will support the conference report and the Bank Holding Company Act. Sec- this legislation, either de novo or I urge my colleagues to support it as tion 3(f) was added to the Bank Holding through a merger or acquisition, a well. And, remembering as I think we Company Act in 1987 to provide a spe- bank must have a satisfactory CRA all should, that this legislation rep- cial grant of authority to savings rating. This test will be applied each resents not an endpoint but a starting banks, but court decisions and Federal time a bank seeks to take engage in a point, I would respectfully suggest that Reserve Board interpretations now new activity, so that a bank will have we all focus in the months and years make it restrictive for many Massa- to, as a practical matter, both have ahead on the potential role this Senate chusetts banks. Repeal of this provi- and maintain a satisfactory CRA rat- can play in helping to create the envision will bring the treatment of Massa- ing to take advantage of the new law. ronment in which financial services chusetts savings banks in line with Prior to this agreement, a bank could work to the best advantage of every that of other financial institutions. start up a securities affiliate without American. Our goal should be nothing Mr. President, I also want to empha- any regard to its CRA rating, so this less. size that although I strongly believe new law is clearly a step forward. That Mr. GORTON. Mr. President, I expect that we have to take this first step to is why Reverend Jesse Jackson and the the financial services modernization toward modernizing our banking indus- Local Initiatives Support Corporation conference report will pass both the try and although I will support this (LISC) support the CRA provisions in Senate and House with large majori- conference report, I remain committed the bill. ties. I certainly understand the strong to strengthening and improving con- I understand and share the concerns support for this sweeping legislation, sumer privacy protections and to en- of some of my colleagues who believe though I must register my strong discouraging greater community invest- that the conference report does not go pleasure and firm opposition to the pu- ment by financial institutions. far enough. Certainly, the alternative nitive unitary thrift charter provisions I believe that we can and must do that and my fellow Democrats sup- included in this measure. The language more to safeguard the financial privacy ported would have been more accept- approved by the conference committee of every American. Every American de- able. However, I believe that this legis- and favored by the Clinton-Gore ad- serves to control his or her personal fi- lation clearly meets the objective of ministration unfairly, unnecessarily nancial information. I am concerned ensuring that CRA remains a central and without compelling reason elimi- that the changes in technology and in part of every financial institution’s op- nates and restricts existing authorities the marketplace have diminished every erations into the next century. and powers of the unitary thrift char- American’s ability to safeguard his or The conference report would also re- ter. her personal financial privacy. The quire certain agreements between a I am proud to represent a state where conference report gives customers of fi- bank and community groups made in the thrift industry is thriving. Wash- nancial services companies only lim- connection with CRA to be fully dis- ington state thrifts manage over $200 ited control over their personal finan- closed and would reduce the frequency billion in assets. It may surprise some cial information. Customers will now of CRA compliance exams for certain to learn that the largest unitary thrift have the right to object to their insti- banks with less than $250 million in as- in the nation, Washington Mutual, is tutions’ sharing their financial data sets. headquartered in Washington state. with third parties and will require I am concerned that further attempts One does not expect a financial institu- these institutions to provide notice to to weaken the Community Reinvest- tion of this size to be based in Wash- customers when they disclose financial ment Act will occur during the 106th ington. Though, knowing this fact, one information within an affiliate. Fortu- Congress. Let me be absolutely clear: I should not be surprised to learn of my nately, the conference report does not will strongly oppose any attempts to significant interest in how this legisla- preempt stronger state privacy laws. weaken CRA in any manner whatso- tion affects my largest financial insti- I want to note for the RECORD that I ever. CRA is a fundamental tool to in- tution constituent and a major Wash- supported stronger privacy protections sure that all creditworthy Americans, ington state employer.

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.079 pfrm13 PsN: S04PT1 S13906 CONGRESSIONAL RECORD — SENATE November 4, 1999 I support virtually all of the con- backward and forward. We can see a came more clear, it was also apparent ference report’s modernization provi- past in which the country’s financial our existing banking code was outdated sions: eliminating the 1933 barrier to services industry led the world despite and in need of change. the affiliation of banks, insurance com- an archaic code recognized by everyone As part of the new economy, it is panies and securities firms that will to be insufficient. And we can look hard to overstate the impact of the allow consumers greater choice at re- ahead into a future that offers the technological revolution on the finan- duced costs; the compromise agree- American financial consumer: New and cial marketplace. Earlier this year, ment reached between the Federal Re- innovative products, better choices, in- during hearings on the bill before us, serve Board and Treasury Department formation and service, and workable Chairman Greenspan noted the finan- on the regulation of operating subsidi- regulations that allow our financial cial sector: aries; improving the Community Rein- firms to compete in the global market- . . . is undergoing major and fundamental vestment Act; expending Federal Home place to an even greater extent than change driven by a revolution in technology, Loan Bank provisions that will allow today. by dramatic innovations in the capital mar- greater access for small business and kets, and by the globalization of the finan- This much-needed legislation mod- cial markets and the financial services in- farm loans; and the inclusion of pri- ernizing our nation’s banking laws is dustry. vacy protections for consumers. happening none too soon. I want to Indeed, the financial marketplace is These provisions do contribute to the spend some time talking about the two modernization of our nation’s financial changing with lightning speed. In Sep- reasons I believe we’re here. The first tember, we held a high-technology services industry from the Great De- is the transformation of our economy pression era laws under which they summit at the Joint Economic Com- over the past 20 years, and by extension mittee. One of those who testified be- have been operating. These changes the remarkable changes in our finan- represent positive advances for the fu- fore our committee was a twenty-nine- cial services sector. And the second is year-old entrepreneur who created an ture. Such is not the case with the uni- the tremendous impact of the techno- tary thrift charter provisions. The uni- electronic stock trading network. Nine logical revolution on the banking in- of these electronic trading networks tary thrift language is regressive and dustry. punitive—a step backwards for finan- make up about twenty percent of the We are currently in the eighth year NASDAQ market and are posing a seri- cial modernization and a black-mark of the longest peacetime economic ex- on an otherwise favorable bill. I sin- ous challenge to more traditional stock pansion in our history. When you look exchanges and markets. Mortgages and cerely regret that delusional fears at the data, there is only one conclu- about the non-existent and impossible traditional banking services are avail- sion to draw: we are now reaping the able over the internet. And anybody mixing of banking and commerce under economic benefits of the hard decisions a unitary thrift charter have prevailed who watches television advertisements on economic fundamentals we made knows a new generation od web-based over fact and reason. Neither the FDIC back in the 1980s. Under the leadership or the primary regulator have identi- businesses are transforming the tradi- of President Reagan, we dramatically tional image—and, incidentally, the fee fied any safety and soundness concerns lowered marginal tax rates, began the during the three decade existence of structure—of stock brokers and stock rollback of burdensome and overlap- trading. These businesses and the unitary thrifts. Not one. ping regulations, promoted openness to It is clear that this legislation un- many others who have gone online to trade and investment around the fairly treats Washington Mutual and challenge the existing orthodoxy are world, lowered interest rates, and de- other unitary thrifts, and for this spe- prompting sweeping changes in the fi- feated the inflation menace that crip- cific reason I seriously considered vot- nancial marketplace. And they are cre- pled our economic competitiveness. In ing against the conference report to ating yet another imperative for this the 1990s, Congress finally completed protest the injustice of the unitary bill. thrift provisions. After listening to and the job by producing the first balanced As the American financial industry federal budgets in a generation. speaking with Chairman GRAMM to seized on technological advances to You cannot overestimate the impact clarify the impact of the unitary thrift lead the world into new financial mar- of these fundamental economic vic- charter provisions, however, I con- kets and new financial products, they tories on the prosperity the nation is cluded that I will support passage of awoke from their long slumber of lob- enjoying today. One of my biggest con- the conference report. The unitary bying wars and turf protection and re- cerns, as I think about the history of thrift provisions are completely con- alized it was in everybody’s best inter- this era, is people will be left with the tradictory to this legislation’s goal of est to pass this bill. If our financial modernization, yet I find the clarifying impression that President Clinton’s firms are to lead and compete in the 1993 tax increases created this eco- statements of Chairman GRAMM to be world marketplace, they must be able of sufficient reassurance that I will not nomic expansion. Nothing could be fur- to compete from a position of strength. vote against this conference report. ther from the truth. We must not for- And they must compete from the foun- Mr. MACK. Mr. President, I rise get the hard—and ultimately correct— dation of banking laws that reflect the today in strong support of the con- decisions made on fundamental ques- new realities of the world marketplace. ference report accompanying S. 900, the tions like taxes, regulation, interest The end game on this legislation was Gramm-Leach-Bliley Act of 1999. And I rates, and inflation in the 1980s that by no means easy. During the eleven want to begin my remarks today by freed up the marketplace and allowed months we spent writing this bill, we congratulating Senator GRAMM, my American businesses to capitalize on had to continually strike careful bal- friend and the chairman of the com- their inherent advantages. ances between the broad, over-arching mittee. We would not be here without The country’s financial sector has goals of the bill and the temptation to his hard work, dedication, and skillful certainly shared in this prosperity. We tinker with the marketplace and pre- negotiation and he deserves the lion’s have witnessed a revolution in the de- determine the shape of future financial share of credit for the fine bill we have livery of financial services during the products and services. The fast pace of before us today. 1990s as the traditional barriers be- change presents a difficult choice for We are making history here. It has tween banking, insurance and securi- policymakers. We are often too cum- been 66 years since Congress passed the ties began to come down. Freedom and bersome in the Congress to lead, we Glass-Steagall banking act in the our free enterprise system ensured that can be irrelevant if we follow, and some depths of the Great Depression. It has new financial products and alliance among us believe it could be risky to been at least twenty years since deter- emanated from America to service the get out of the way. In the face of this mined efforts began in the Congress to demands of the global economy. These dilemma, some of our colleagues want- repeal this outdated law and modernize products and alliance provide Amer- ed us to anticipate every possible side- the country’s banking code. Today—fi- ican businesses, investors, and con- effect of this financial transformation nally—we have come to the end of the sumers with the ability to secure more and write the laws accordingly. This is road. easily the capital they need to finance just not possible, and the resultant reg- As we stand on the verge of passing their hopes and dreams. As this new ulatory burdens would have stopped this bill, we have a great view both economic and financial dynamic be- this financial revolution in its tracks.

VerDate 29-OCT-99 04:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.027 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13907 In the bill before us today, we tried the outdated laws and regulations gov- legislation that provides for a historic to embrace the following principles: erning the financial services industry. modernization of our financial services First, banks, insurance companies It doesn’t make sense to me to slap a system. This legislation is the cul- and securities firms should be able to regulatory straight-jacket on Amer- mination of years of effort on the part enter one another’s business and create ican financial companies and drive up of several Congresses, several adminis- a financial dynamic for the next cen- costs for consumers while companies trations, and federal financial regu- tury; around the globe are able to compete lators. Passing this legislation will Second, new banking products should unhindered by unnecessary barriers. It eliminate inefficiencies and unneces- be regulated by the regulator that seems to me that you can’t compete in sary barriers in our economy that were knows them best. a 21st century global financial market created by the Glass-Steagall Act of Third, institutions should disclose to using a playbook that was written dur- 1933 and other laws passed generations customers what they are doing with ing the Great Depression. ago. their sensitive personal information— But I have also believed that finan- With this legislation, the Congress both within and outside the financial cial services modernization shouldn’t recognizes the significant trans- firm. And customers should be able to come at the expense of consumer and formations taking place in our econ- stop these companies from sharing community interests. In fact, back in omy and its financial services sector. their information with third parties. May, I voted against the Senate Through this Act, Congress makes the Next, new financial activities conversion of this bill, as did 43 of my col- necessary and critical leaps for our fi- ducted through subsidiaries of banks leagues here in the Senate, because it nancial services sector to catch up should be conducted so as to ensure would have devastated lending in rural with the realities of a marketplace and taxpayer guaranteed deposits are not and low income communities, and be- economy driven by an information threatened. cause it didn’t adequately address the technology revolution. The changes And finally, the burdensome regula- created through this legislation are in- tions on banks with respect to commu- issue of consumer financial privacy. Fortunately, this conference report evitable. They overhaul laws imple- nity lending should not be increased as is leaps and bounds better than the bill mented decades ago that have not a result of what we’re doing in this bill. that passed along party lines here in withstood the test of time and that There are sensible guidelines and I’m have increasingly been bypassed satisfied we’ve created the basis here the Senate several months ago. It won’t allow financial institutions to through more and more regulatory for a safe, sound and flexible financial loopholes. Passing the Financial Serv- participate in the new and improved fi- industry that will serve the interests of ices Modernization Act of 1999 will cre- nancial market unless they maintain a American consumers, investors and ate a rational financial structure in good community lending record. And, businesses well into the future. the U.S., the world’s largest economy, while far from perfect, it also begins to As I said at the beginning of my re- that will be competitive in the global address the issue of consumer financial marks, we are making history here. A economy. I strongly urge my col- privacy, which was virtually non-exist- hundred years from today, I believe the leagues to support this legislation. primary thing people will remember ent in the previous bill. By updating laws separating banks, This bill requires financial institu- about this Congress is that we finally securities firms, and insurance compa- did the right thing and passed this bill. tions to disclose their privacy and in- nies, this Act will result in a broader Mr. President, I would like to con- formation sharing policies to their cus- array of financial services and products clude my remarks on a personal note. tomers. And in some instances—but for consumers. It will spur innovation As I begin to recognize the reality that not enough—it allows consumers to in the financial services industry and my service in the United States Senate block these companies from sharing create a more competitive marketplace will end in slightly more than a year, I their private customer information where powerful new products come to find I am engaging in the occasional with other companies. This is an im- market more quickly and at a lower reflection. provement over the original Senate cost to consumers. It will lead to the During the last 12 years of my 18 bill, and even an improvement over creation of an array of new products years in the Congress, I served on the current law. for consumers and at the same time Senate Banking Committee—the com- This is a good start on financial pri- will help them to make their choices mittee responsible for writing and vacy, but it doesn’t close the deal. The more intelligently and efficiently by overseeing the laws of the land that privacy provisions in the conference re- allowing for one-stop shopping for a regulate the banking and financial in- port do not provide the level of protec- multitude of financial services. dustry. This has been special to me be- tion that the American people deserve. Specifically, by overriding sections cause I spent the first sixteen years of There is a long way to go with re- of the Glass-Steagall Act and other fed- my career in the banking business. It spect to protecting the financial pri- eral and state laws, this legislation was work I enjoyed as the years went vacy of all Americans. While I am dis- will allow banks, insurance companies, by. It was also work I found increas- appointed that the privacy protections and security firms to more easily ingly frustrating because of the stifling in the bill are not as strong as I would merge or otherwise enter one another’s regulatory burden placed on banks by like, I share the beliefs of several of my businesses. the federal government. It was for distinguished colleagues, such as Sen- While allowing the industry greater these and other reasons I left my posi- ator SARBANES and Senator LEAHY, flexibility to provide services, this leg- tion as President and LEO of my bank that these protections can be and must islation also protects consumer privacy in Cape Coral, Florida and ran for the be further strengthened by legislation by requiring financial institutions to Congress. next year, and I intend to work closely create privacy policies and spell them I will not stand here today and claim with my colleagues to make sure this out to consumers. Financial institu- the credit for the far-reaching and far- happens. tions will have to provide notice of how sighted bill before us today. My friend On balance, the conference report they share the financial information of and colleague Senator GRAMM deserves should be adopted, and I hope that the their customers and with certain ex- the credit on the Senate side. I none- same forces that worked so hard to ceptions they would be prohibited from theless feel a strong sense of pride and move legislative mountains and align disclosing personally identifiable fi- institutional accomplishment for the political stars to make this legislation nancial information to non-affiliated legacy we are leaving to the United possible will work equally as hard with third parties without first giving con- States in passing this bill. It will ben- me and other Senators next year to sumers the opportunity to ‘‘opt out’’. efit the people, the industry, and the give Americans the privacy protection The legislation gives regulatory agen- economy as a whole and it is truly a they demand and deserve. cies the authority to enforce those pri- document we can all be very proud of. Mr. LIEBERMAN. Mr. President, I vacy protections. I urge my colleagues to support the rise today to express my support for Importantly, this legislation also re- conference report the Financial Services Modernization tains key parts of the 1977 Community Mr. WYDEN. Mr. President, I have Act of 1999. The Financial Services Reinvestment Act. Any financial serv- always been supportive of modernizing Modernization Act of 1999 is landmark ices company that is out of compliance

VerDate 29-OCT-99 04:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.029 pfrm13 PsN: S04PT1 S13908 CONGRESSIONAL RECORD — SENATE November 4, 1999 with that Act would not be allowed to ally work to make it better for the peo- the very people we must trust to con- take advantage of mergers and other ple of my state. We deliberated, dis- duct our business. Technology must be benefits outlined under this legislation. cussed, and fought over the merits of tempered with caution. Efficiency can- It is right that the Administration and the legislation—not just parliamentary not be at the expense of personal pri- others held fast to keeping a strong tactics. This bill was scrutinized by vacy. Institutions should not have the CRA component in this legislation. The Senator SARBANES and Senator GRAMM license to exploit our information un- CRA has been critically important to and all of my colleagues on the Senate less they allow us to opt out. Individ- many communities and community- Banking Committee before it ever got uals should have the right to allow in- based organizations in Connecticut and to the floor. Before it was even put on stitutions to share their information across the country. The CRA, like the the calendar, it was subject to the by opting in. Customers should be Individual Development Accounts judgement and the intellect of these given sufficient notice and choice to (IDAs) that I strongly support, helps men, whose esteem I hold in the high- deny financial institutions from shar- more Americans to actively participate est regard. ing or selling their nonpublic, person- in our economy by providing them the After this bill came out of committee ally identifiable, sensitive financial inability to build assets and to access fi- and to the floor, we were able to offer formation. Americans must have the nancial services. and vote on amendments to adjust and ability to say ‘‘no.’’ This legislation is not perfect. Its im- strengthen the bill. I supported some This bill remembers the big financial plementation will need to be monitored amendments that passed, and I sup- institutions in this country, however, over time. I will be paying particular ported some that failed, but what is seems to forget the most important attention to how this legislation af- important is that my votes and the variable in the equation—the indi- fects both consumer privacy and CRA votes of my colleagues were registered vidual. This bill protects banks’ rights, implementation. However, this legisla- and the conferees were able to gauge but fails to consider an individual’s tion is good and long overdue. It pro- the Senate’s support for these provi- rights to privacy. We need to establish vides balanced and strong protections sions. This allowed for compromise, rules to protect the privacy of a cus- for consumers and communities with- Mr. President, and at the end of the tomer’s confidential information. No out diluting its intended financial serv- day it allowed for a bill that a majority longer should we rely upon or expect ices benefits. of the Senate can and, I predict, will the financial institutions themselves Finally, I would like to thank those support. to do this, as they are the very ones who have worked so tirelessly to do Mr. BURNS. Mr. President, I rise profiting from the sale of customer in- what so many others have tried and today to express my concern over the formation. We must find a balanced failed to do for the last 20 years. lack of adequate privacy protections in system that protects consumers. Through the hard work of the Senate the financial modernization bill under I assure my colleagues that we will Banking Committee members, includ- consideration. While I feel that the very soon be revisiting this issue and ing Senator DODD of Connecticut and current laws governing our financial that these deliberations will be Chairman GRAMM, their House counter- services industry are out-of-date and in prompted by constituents abused as a parts, in conjunction with the Admin- need of modernization, I do have strong result of the loopholes contained in istration, particularly Secretary Sum- concerns over the inadequate and weak this bill. Bottom line, financial institu- mers and his staff, the financial serv- privacy provisions included in this bill. tions should not be allowed to share ices industry, and those representing Paramount to our freedom is the and sell confidential, personal cus- the interests of consumers and commu- right to privacy; to be left alone and to tomer information without consent. nities, we now have legislation with be secure in the belief that our busi- Americans need provisions which truly compromise language that achieves a ness is just that, ours and no one else’s. protect their privacy. Americans de- broad public purpose. We are now able When we do share our personal busi- serve this right, no less. to achieve the improvements to our fi- ness information with others it is with Mr. LUGAR. Mr. President, I raise nancial services sector that have been the real and reasonable expectation today in support of passage of the Con- needed for decades and that will effec- that it remains our property. When ference Report to accompany S. 900, tively bring us into the next century. dealing with our doctor or lawyer we the Financial Services Modernization Mrs. LINCOLN. Mr. President, I rise know that the communication is privi- Act of 1999. today in support of the Financial Mod- leged. Traditionally, when providing ernization Bill. After decades of unsuc- information to our banker or insurance During my first term in the Senate, I cessful tries, it appears that financial agent or our stockbroker, we similarly served as a member of the Senate modernization legislation may finally believed that the information provided Banking Committee. It was a busy become a reality. As we move into the was specific to that transaction. time for the Committee: we passed the next millennium, I believe it is impor- We choose to compromise our privacy Foreign Corrupt Practices Act, per- tant that the financial service struc- to the extent necessary to conduct mitted for the first time interest bear- ture in this country is up to par with business and with the belief that the ing checking accounts, and agreed to the rest of the world so that American information is ours and does not be- the Community Reinvestment Act. finance can continue to lead inter- come the property of the person with During those years, the Committee nationally. whom we are dealing. No one has the also undertook the difficult tasks of re- The thing that impresses me the right and no one should have the right structuring the finances for New York most about this bill, Mr. President, is to market our personal information City and Chrysler Corporation. I am not the way it will strengthen Amer- without our prior approval. To do so proud of the work we did on the Com- ican financial markets and allow this violates our privacy and compromises mittee with these initiatives, and we important sector of our economy to the trust relationship that is vital to made sure that the American tax- grow with the technology of the age. commerce. payers did not have to foot the bill for It’s not even that we will close the Uni- Regrettably, we now know that those the restructuring of the debt. tary Thrift Loophole, or that we will we trusted with one of our most prized I am pleased that after all these maintain the Community Reinvest- possessions, our privacy, have violated years, we are on the verge of passing ment Act to ensure that low income that trust in the interests of profit. In comprehensive reform that has bipar- and minority communities in my home the course of deliberations of this bill, tisan and Administration support. This state of Arkansas will continue to have we have heard that the sharing of in- bill will finally break down inefficient access to the capital needed to create formation is essential to efficiency in barriers between insurance, banking, jobs and increase incomes. What im- the market place and to better provide and securities and allow United States presses me most, Mr. President, is the customer benefits and services. How- financial services corporations to com- way we are going about passing it. ever, the fact remains that these bene- pete on an even basis with their Euro- When I vote for this bill later today, I fits come at the expense of personal pean and Asian counterparts. feel like I will have weighed all the privacy and that creates an atmos- Over the years, through regulation, issues and had the opportunity to actu- phere of distrust and invites abuse by court cases, and the development of

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.093 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13909 new financial products, the line sepa- the assets held by the five largest Federal Reserve, a nonpolitical entity rating banking, insurance, and securi- banks in the United States now total also headed by a pretty good economic ties has been blurred. In recent years, $2.1 trillion. Five years ago, the top and financial mind in Alan Greenspan, banks have been selling insurance and five only had $753 billion in assets. to serve as the primary regulator in mutual funds; brokerage firms have In 1998, for the first time in many this new age. Regulation of our finan- been offering customers money market years, a U.S. bank is one of the top 10 cial system should not be subject to accounts with check writing privileges. largest in the world based on assets. the ups and downs of the political proc- The market was dictating that the From 1997 to 1998, U.S. banks in the top ess, as would be the case if a political laws needed to be rewritten. I have al- 100 in the world saw their assets grow appointee, in this case the Secretary of ways believed that the laws should be by 23 percent, their capital base grow the Treasury, had control. written by Congress, not bureaucrats. by 48 percent and their revenues in- I believe that this bill makes the It has taken time to fine tune these crease by 36 percent. The United States proper policy decision by designating changes and reach this bipartisan con- has 8 of the top 10 securities firms in the Federal Reserve as the umbrella sensus; but Congress has finally met the world and 4 of the top 20 insurance regulator of financial holding compa- this challenge. companies. nies. The bill provides a mechanism for Mr. President, over the course of the With all of this financial strength coordination between the Fed and the last five years, a lot of work and hun- consolidated in the United States, Treasury in approving new financial dreds of hours have gone into per- some may wonder why we need this activities for financial holding com- fecting this monumental legislation. I historic new law. With the advent of pany subsidiaries. The Treasury De- want to commend the Members of the the European Monetary Union, the partment, through the Office of the Conference Committee, representatives combined gross domestic product of the Comptroller of the Currency will main- from the Administration and the Fed- nations in the Union is already equal tain its functional regulatory author- eral Reserve, and the financial commu- to that of the United States. When the ity over the banking activities of affili- nity for crafting a consensus piece of U.K. joins the Union, the combined ates and subsidiaries of national banks. legislation. It will open competition, GDP will be 10 percent greater than the This is a good compromise and I salute while establishing proper safeguards to GDP of the United States. United the chairman for his work. protect consumer privacy and main- States firms need to be more flexible, Second, I commend the chairman for taining safety and soundness standards more efficient, and able to offer more his diligence in attempting to address for federally insured financial institu- products if they are to compete suc- the abusers related to the CRA. This tions. cessfully in these new markets. bill does not go as far as I know the In a free market society, competition Currently, European laws are much chairman would like, but it is a good lowers prices and raises the level of more flexible, allowing financial serv- start. And for those concerned commu- customer service. I believe consumers ices firms across the Atlantic to be bet- nity groups out there who have not will benefit from this landmark bill by ter integrated than United States abused the CRA, let there be no confu- giving them the choice of products and firms. Our laws need to keep pace. This sion: when this law is signed by the services offered by more market par- conference report will allow our var- President, there will still be a CRA and ticipants. I am pleased to have this op- ious banking, insurance and securities there will still be robust community portunity to speak in support of the firms to combine through financial lending across the United States. In passage of this long overdue legisla- holding companies so that they may be fact, the law itself states that nothing tion. even stronger competitors in the in- in the conference agreement repeals I yield the floor. creasingly international financial serv- any existing provision of the CRA. Mr. DOMENICI. Mr. President, I rise ices marketplace. What the bill does is provide regu- in strong support of the conference This enhanced efficiency is not only latory relief to small banks which dem- agreement before the Senate today. good for the United States’ competi- onstrate that they have achieved at There are few bills Congress has com- tiveness in the international market, it least a satisfactory CRA rating in their pleted in my time here which will have is good for consumers. The Treasury most recent audit. This will reduce the a more profound impact on our econ- Department estimates that every 1 per- burdens related to CRA exams for 82 omy than this legislation to modernize centage point decline in the cost of fi- percent of all banks. And for the larger and harmonize the various segments of nancial intermediation could save U.S. institutions in cities like Albuquerque, our financial services industry. consumers $3.5 billion a year. the CRA will continue to apply in the I think this historic legislation will This new law will allow consumers to same manner as it does today. That is result in lower costs of financial serv- enjoy cheaper access to capital and an eminently reasonable approach. ices for American consumers, and en- one-stop shopping at financial services Finally, the bill allows a little sun- hance the competitiveness of United superstores. Americans who want to light to be shed on all CRA agreements States companies in the global finan- borrow to buy a new car or a home, between banks and community groups. cial marketplace. purchase insurance to protect that car Over the next ten years, banks have At the outset, I want to congratulate or home, or invest in securities for the promised $350 billion in loans and pay- Chairman GRAMM and the members of future, will for the first time under ments to community groups under the the Senate Banking Committee for all this new law be able to do all of that at CRA. This law will require full public of their hard work on this issue. As one time, in one place and at a lower disclosure of those agreements, and an Chairman GRAMM knows, it has been no cost. annual accounting of how the money easy task to get the banking, securities I want to commend the chairman and and other resources promised in the and insurance industries, as well as the conferees for the way in which they agreement were utilized. The public Administration, the regulators and have resolved two major issues which has a right to examine the costs and community groups to agree on what concerned me when we debated this bill benefits associated with CRA agree- shape this law should take. It is a tes- in the Senate. Those issues are whether ments, and this will provide that public tament to Senator GRAMM’s tenacity the Federal Reserve or Treasury De- accountability. that he was able finally to hammer out partment should be the primary regu- Mr. President, I want to commend all this agreement. lator of the new financial holding com- of those who have worked so hard to fi- As we move into the 21st century, the panies, and what to do about abuses of nally get Congress to the point where United States continues to maintain the Community Reinvestment Act of this bill can become law. I am happy to capital markets which are the envy of CRA. support this bill, and look forward to the world. Bank consolidations and First, I have great respect for Treas- the President signing it into law. rapid expansion of new global markets ury Secretary Summers and his prede- Mr. MOYNIHAN. Mr. President, we have meant phenomenal growth in our cessor, Robert Rubin. They are two of have been debating the subject of bank- financial services sector in recent the finest economic and financial ing in the Senate since the 18th cen- years. The wave of bank mergers in the minds in the world. But I simply be- tury. We began to ask ourselves a ques- late 1990’s has led to a situation where lieve that it is more appropriate for the tion, could we have a national bank,

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.108 pfrm13 PsN: S04PT1 S13910 CONGRESSIONAL RECORD — SENATE November 4, 1999 which Mr. Hamilton, of New York, With this bill, we have the oppor- homeowners who are transforming neighbor- thought we could do and should do. We tunity to modernize our financial insti- hoods of transients into places where fami- created one. It had a very brief tenure. tutions and allow banks to do the lies have a stake in what happens. The ren- It went out of existence just in time things they ought to do, that they are aissance is due in part to the Federal Com- munity Reinvestment Act, which requires that the Federal Government had no fi- going to need to do, to survive and banks to reinvest actively in depressed and nancial resources for the War of 1812. grow. We must seize this opportunity, minority areas that were historically writ- So it was reinstituted, in 1816 for 20 pass this bill, and give our banks the ten off. Senator Phil Gramm of Texas now years, and went out of existence just in opportunity to compete in the world wants to weaken the reinvestment Act, en- time for the panic of 1837. We went economy. couraging a return to the bad old days, when through greenbacks. There must have Now to the second point. When this banks took everyone’s deposits but lent been a wampum period. We went to bill came up for a vote last May, I them only to the affluent. Sensible members gold coinage. Then a free coinage of sil- could not support it because the provi- of Congress need to keep the measure intact. sions concerning the Community Rein- The act was passed in 1977. Until then, pro- ver dominated our politics for almost spective home or business owners in many two decades, as farmers sought liquid- vestment Act were unacceptable. The communities had little chance of landing ity and availability of credit. Finally, CRA, enacted in 1977, has played a crit- loans even from banks where they keep at the end of the century of exhaustive ical role in revitalizing low-and-me- money on deposit. But according to the Na- debate, we more or less gave up and dium-income communities. New York tional Community reinvestment coalition, adopted what we now call the Federal has benefitted from this. A March 17, banks have committed more than $1 trillion Reserve System. 1999 New York Times editorial states: to once neglected neighborhoods since the To say we debated this matter for a In New York City’s South Bronx neighbor- act was passed, the vast majority of it in the century is certainly true. For the last hood, the money has turned burned-out areas last six years. In New York City’s south Bronx neighbor- quarter century, we have turned our into havens for affordable homes and a new middle class. The banks earn less on commu- hood, the money has turned burned-out areas focus to the nonbank bank. You are into havens for affordable homes and a new really reaching for obscurity when you nity-based loans than on corporate business. But the most civic-minded banks have ac- middle class. The banks earn less on commu- define an issue as we have done, and cepted this reduced revenue as a cost of nity-based loans than on corporate business. yet that seems to be the term with doing business—and as a reasonable sacrifice But the most civic-minded banks have ac- which we have to deal. for keeping the surrounding communities cepted this reduced revenue as a cost of The issue of the nonbank banks, were strong. doing business—and as a reasonably sacrifice for keeping the surrounding communities banks will be allowed to expand into I am told that an acceptable—albeit newly authorized businesses such as se- strong. not perfect—compromise has been Federal bank examiners can block mergers curities and insurance underwriting, worked out on this matter. With this or expansions for banks that fail to achieve could finally be resolved in the Senate agreement in hand, I can now support a satisfactory Community Reinvestment Act today. As we consider the conference the bill. However, I urge the regulators rating. The Senate proposal that Mr. Gramm report on financial modernization and to keep a close eye on the CRA provi- supports would exempt banks with assets of prepare to pass the most significant sion and make sure that banks make less than $100 million from their obligations piece of banking legislation since the loans where they are required to and under the act. That would include 65 percent 1933 Glass-Steagall Act, I would like to keep investing in those communities of all banks. The Senate bill would also dramatically curtail the community’s right to make two points, followed by a coda. that need it most. The first being that we need financial expose what it considers unfair practices. I conclude on the question of privacy. Without Federal pressure, however, the modernization, that Depression-era No small matter. Consumers, rightly amount of money flowing to poorer neigh- banking laws need to be repealed. A so, are concerned that their personal borhoods would drop substantially, under- May 4, 1999, Washington Post editorial information will be shared among the mining the urban recovery. reads: newly affiliated companies. The bill Mr. Gramm argues that community groups Since the Depression, Federal law has places no restrictions on the kinds of are ‘‘extorting’’ money from banks in return sought to keep banking, insurance and secu- detailed personal information—such as for approval, and describes the required pa- rities industries separate. The idea, in part, customer bank balances, credit card perwork as odious. But community organizations that build affordable housing in Mr. was to make sure that Federally insured account numbers, income and invest- bank deposits didn’t wind up somewhere Gramm’s home state heartily disagree. risky and unregulated. But in recent years, ments, insurance records, purchases Mayor Ron Kirk of Dallas disagrees as well, even without a change in the law, that sepa- made by check or credit card—that can and told the Dallas Morning News that he ration has eroded. Banks have found ways to be swapped among them. A November welcomed the opportunity to explain to Mr. offer mutual funds to their customers; in- 3, 1999, Times editorial addresses this Gramm that ‘‘there is no downside to invest- vestment firms function like deposit institu- matter: ing in all parts of our community.’’ tions; etc. It makes sense now to bring legis- In an electronic world where businesses In a perfect world, lending practices would lation—and regulation—in line with reality. can effortlessly collect, compile, and mine be fair and the reinvestment Act would be It strikes me as odd that most cor- personal data for marketing and other pur- unnecessary. But without Federal pressure the country would return to the era of red- porations are free to engage in any poses, consumers should have the right to control the spread of their financial informa- lining, when communities cut off from cap- lawful business. Banks, by contrast, ital withered and died. are limited to the business of banking. tion. Under current Federal law, consumers have almost no rights in this area. The bill [From the New York Times, Nov. 3, 1999] It is generally agreed that the Glass- adds some limited protections, but it does Steagall Act of 1933 and the Bank Hold- not go far enough, particularly since con- PRIVACY IN FINANCIAL DEALINGS ing Company Act of 1956 need to be glomeration will greatly accelerate the shar- The financial services bill that will over- amended. Banks, security firms, and ing of private information in the financial haul the nation’s banking laws is a good deal insurance companies should be allowed sector. for financial institutions but a bad deal for to offer each other’s services. They al- As we move ahead with this bill and consumer privacy. The bill would allow ready do by finding loopholes in the make substantial changes to the bank- banks, brokerage houses and insurance com- law. Congress must catch up, and pass panies to merge into financial conglom- ing laws, we must make sure that pri- erates, a long-overdue reform. The banking a law that condones this activity. Lon- vacy laws keep pace. this is much too industry stands to gain from the right to ex- don does it. Tokyo too. Why not New important of an issue to be overlooked. pand into other businesses, and consumers York, which, if I may say, is one of the I ask unanimous consent that the could benefit from the case of one-stop shop- world’s banking capitals? Times March 17th and November 3rd ping and the creation of new financial serv- This is a real problem for existing editorials, and the Post March 4th edi- ices. But protecting consumers’ financial banks, who find themselves under the torial be printed in the RECORD. privacy should also be central to financial serious constraints of Depression-era There being no objection, the edi- modernization. This bill is weak on that banking laws. Suddenly, they find that torials were ordered to be printed in score. In an electronic world where businesses their activities are encroached upon the RECORD, as follows: can effortlessly collect, compile and mine and they are not able to do things that [From the New York Times, Mar. 17, 1999] personal data for marketing and other pur- they ought to do—that they are going MISCHIEF FROM MR. GRAMM poses, consumers should have the right to to need to do—in order to survive in a Cities that were in drastic decline 20 years control the spread of their financial informa- competitive world economy. ago are experiencing rebirth, thanks to new tion. Under current federal law, consumers

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.018 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13911 have almost no rights in this area. The bill even without a change in the law, that sepa- promises necessary to get the bill adds some limited protection, but it does not ration has eroded. Banks have found ways to passed? Would he take a broader view go far enough, particularly since conglom- offer mutual funds to their customers; in- or be the captive of narrow parochial eration will greatly accelerate the sharing of vestment firms function like deposit institu- private information to the financial sector. tions; etc. It makes sense now to bring legis- interests? Would he be flexible? All The bill would require that a financial in- lation—and regulation—in line with reality. these questions, I am proud to say, stitution provide customers with general no- Congress has been trying to do so, and fail- have been answered in the affirmative. tice about its privacy and disclosure policy. ing, for more than a decade, and may again. I wish to salute my colleague, Sen- But the institution would remain free to But on the major issues, the administration, share a customer’s personal information the Federal Reserve and Congress have pret- ator GRAMM, for this historic accom- with affiliates of the company and with unaf- ty well agreed. They would let the financial plishment. Without his leadership, we filiated companies that sign marketing services industries meld while for the most would not be here today. It is a master- agreements, without the customer’s consent part keeping them out of other businesses, a ful bit of work. And I am proud of his and without giving the customer the right to wise decision. They’ve come up with fire accomplishment in this regard. object to having that information trans- walls and regulatory schemes that, while ferred. still not entirely agreed upon, have satisfied I also wish to salute my colleague, The bill places no restrictions on the kind most concerns about protecting federally in- Senator SARBANES. Also, we would not of detailed personal information—such as sured deposits. be here today without his leadership. customer bank balances, credit card account But there is no consensus yet on safe- He has proven to be a tireless advocate numbers,income and investments, insurance guarding the interests of underserved com- and effective spokesperson for those munities. Since 1977 federally insured banks records, purchases made by check or credit who are less fortunate. He has proven card—that can be swapped among affiliated have been subject to the Community Rein- companies. New regulations proposed by the vestment Act, requiring them to seek busi- to be a tireless worker in favor of the Clinton administration on medical privacy ness opportunities in poor areas as well as rights of privacy of America’s con- would prohibit a health insurance company middle-class and wealthy neighborhoods. The sumers. We would not have a bill before from disclosing medical records to a bank. law, a response originally to clear evidence the Senate today that could pass this But nothing in this bill would stop a bank or of bias in lending, has worked well. It doesn’t body, that the President would sign, life insurance company, for example, from force banks to make unprofitable loans, but or, frankly, one that enjoyed wide sup- sharing equally personal information about it encourages them to look beyond tradi- customers. tional customers, and it’s had a beneficial ef- port were it not for the tireless efforts The bill allows consumers to ‘‘opt out’’ of fect on home ownership and small-business of Senator SARBANES. I compliment disclosure of private information to unaffili- lending. him as well. He has been a copartner in ated companies. But that provision contains Sen. Phil Gramm, chairman of the Bank- this historic accomplishment which we a big loophole. It would not apply if a finan- ing Committee, now wants to scale the law recognize today. cial institution enters into a joint agreement way back. He argues that community groups with an unrelated financial institution to use it to extort money from banks; there’s This legislation is good for the Amer- market products or services. That means scant evidence for that. The real danger is ican economy. The era of global com- even corporate entities that have no business that, with financial modernization, banks petitiveness in the financial services relationship with a customer could get pri- will gradually escape their community obli- sector is unquestionably an area in vate information without the customer’s gations by transferring capital to affiliates which our Nation is preeminent. The consent. that aren’t covered by the law. The law world looks to the United States to Privacy advocates have argued that finan- should be extended and modernized to keep cial institutions should be required to get a pace with a changing industry. lead the way in areas such as banking, customer’s consent before they transfer or Consumer privacy also could be in danger insurance, securities, and investment sell personal information. But the banking as barriers among industries break down. An banking. example: Should your life insurance medical lobby contends that getting affirmative au- Financial services contribute annu- thorization is too costly. At the very least, records be shipped over, without your knowl- consumers who want to keep their records edge, to the loan officer considering your ally to a trade surplus for the United private should be allowed to opt out of hav- mortgage application? Sen. Paul Sarbanes of States of America at a time when our ing that information disclosed to others. Maryland and Rep. Ed Markey of Massachu- trade deficit is running into the hun- President Clinton has supported a strong setts, among others, would give consumers dreds of billions of dollars. But we can- opt-out provision, but in final negotiations more control over the sale and sharing of not take our current preeminence for in Congress the administration acceded to personal data. As the financial industry granted. I have had some experience in moves into a new era, privacy laws should the loopholes that narrow the opportunities this regard. to opt out. Most consumers do not want also keep pace. their banks to share or sell personal infor- Mr. SARBANES. Mr. President, I My colleagues may not know that In- mation to other businesses, whether under yield 10 minutes to the Senator from diana was one of the very last States to one corporate umbrella or not. Their con- Indiana. adopt not interstate banking but cerns about privacy will only grow as the across-State-line banking in the mid- new conglomerates begin to cross-market The PRESIDING OFFICER. The Sen- their products. If President Clinton signs the ator from Indiana is recognized. 1980s. As a result of the fact we didn’t bill, as expected, he must push for separate Mr. BAYH. Thank you, Mr. Presi- modernize our laws, once the walls privacy legislation that actually gives con- dent. I thank Senator SARBANES. came tumbling down, as they inevi- sumers the right to personal data. Mr. President, I rise to express my tably do, almost all of Indiana’s finan- strong support in favor of the Finan- cial institutions in the banking sector [From the Washington Post, May 4, 1998] cial Services Modernization Act. I do were gobbled up by institutions from BANKING ON REFORM so because of my heartfelt conviction other States. The Senate today is scheduled to begin that it will be good for the American If we were similarly to hamstring considering a bill that would remake the fi- economy, it will be good for the finan- America’s financial institutions— nancial services industry, allowing banks cial services sector of the economy, banking, insurance, and securities— and insurance companies and investment and it will also be good for consumers with antiquated laws that kept them banks and insurance companies and invest- and the American people for many ment firms to merge and compete. Similar from having the flexibility needed to years to come. legislation is making its way through the compete with our foreign competitors, I will begin by expressing my grati- House. The thrust of both bills is sound. But the day might not be too far removed tude and respect for the leaders who while the industries have lobbied hard to when those from Germany, Japan, have brought us here today after so shape a law satisfactory to them, the current Switzerland, and other nations would legislation doesn’t adequately protect low- many years. Senator GRAMM has per- be gobbling up our financial institu- income communities or consumers’ privacy. formed admirably in getting this actions because they were too weak or in- Financial modernization should apply to complished after so many years in the capable of competing. We shouldn’t let them, too. past it has failed. I salute him and Since the Depression, federal law has that happen to our country. sought to keep the banking, insurance and commend him for his efforts. securities industries separate. The idea, in Quite frankly, there were some ques- Hundreds of thousands of jobs across part, was to make sure that federally insured tions about the new chairman when he our country and tens of thousands of bank deposits didn’t wind up somewhere assumed this position: Would he be jobs in Indiana depend upon us getting risky and unregulated. But in recent years, willing to make reasonable com- this done. I am proud to say that we

VerDate 29-OCT-99 04:25 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.020 pfrm13 PsN: S04PT1 S13912 CONGRESSIONAL RECORD — SENATE November 4, 1999 will. It is good for America’s economy. ward to leading the way to ensuring licans on the committee started in It is also good for the broader econ- that. For the time being, I am pleased January a series of meetings to talk omy. with the provisions currently in the about why we wanted to modernize the Manufacturing, agriculture, and bill and am proud to say we are taking financial laws of the country, why we other sectors depend upon access to a a significant step forward. wanted to repeal Glass-Steagall, why vital growing financial services sector. In conclusion, for 20 years, we have we wanted to restructure the economy Access to capital is one of the key in- been laboring to modernize the law in terms of benefit, we set out a theory gredients for financial success today. that governs financial services that of financial services modernization and Because of this bill, greater efficiency was first enacted in the 1930s. A long we set out a plan to try to achieve it. in providing funds for expansion will string of people who have preceded us As I listened to all the talk about exist, leading to greater investment, in this body have attempted this and special interests, I remember Texas greater productivity, and a rising have not been successful. But thanks bankers and Texas insurance agents standard of living for America’s work- to the leadership of Senator GRAMM both sending a letter which arrived on ing men and women. Access to capital and the leadership of Senator SAR- the same day telling my constituents I is one of the key ingredients to success BANES, the ability of all involved to had betrayed their particular interests in the economy today. This legislation come together and compromise for the to the other. The insurance agents sent will ensure that the funds keep flowing well being of the American economy, out a letter saying I had sold out to the from America’s economy, making it the American consumer, and the future bankers; the bankers sent out a letter more productive and more efficient for of our country, today we celebrate the saying I had sold out to the insurance American workers and American share- historic accomplishment. agents. holders alike. I intend to vote for this legislation. I The bottom line is nobody was sold This legislation is good for con- urge my colleagues to do the same. out in this bill. We started a negotia- sumers. Not only will it be convenient, Again, I congratulate all who have tion to try to deal with a legitimate providing one-stop shopping for work- brought us to this important accom- concern. The concern was this: If some- ing men and women across our coun- plishment. one is going to a bank for a loan, try, where they go to a single place and Thank you. I yield the floor. should that bank, while they are in the meet their banking needs, insurance The PRESIDING OFFICER. The Sen- process of making that loan, have the needs, security investment needs, and ator from Texas. right to try to sell an individual insur- others, but it will also lead to greater Mr. GRAMM. Mr. President, Senator ance? We tried to sit down with every- efficiency, lower interest rates, and SARBANES and I have decided, giving body knowledgeable and come up with greater access to credit. It will also people an opportunity to get here, that a real solution. In the end, I am happy lead to greater innovation in the new I will speak, and then Senator SAR- to say, both of these interest groups marketplace with greater competition. BANES will speak. Then I will close out. concluded nobody had sold their inter- I foresee a day not too far removed Mr. SARBANES. Mr. President, will ests out and we had put together a when services that we can barely imag- the Senator yield for a moment? good bill. ine today will be provided more con- Mr. GRAMM. I am very happy to However, there is a simple test on veniently and efficiently to Americans yield. this bill. If anybody wants to set a across our country. Mr. SARBANES. Both sides have marker today to determine whether in Frankly, I approach this bill with tried very hard to canvas their mem- 20, 40, or 60 years from now we are some reservations as well. Some issues bers to see if anyone wishes to speak going to compare this bill to Glass- needed to be resolved or I would not be on this bill. At the moment, we have Steagall, whether this bill is a success, standing here today to express my reached the point where we don’t think there is a simple test. That test is, Will strong support for this legislation. there is anyone left to speak. The time this bill generate more diverse prod- Foremost among these was the Com- for voting has been set for reasons of ucts for the American consumer? Will munity Reinvestment Act, an act that people having been drawn to other re- those products better meet the needs of is necessary to guaranteeing access to sponsibilities. But if there is someone the American consumer? And will they capital for Americans of every walk of out there who wants a few minutes to be cheaper? If those things don’t hap- life, regardless of race, creed, or color. speak on this legislation, now is the pen, this bill fails. As I said when I previously took the time. Otherwise, it is going to be closed That is what this bill is about. There floor to speak on this issue, access to out. We have tried very hard to offer is nothing in this bill that sets out to capital today is as important as access all Members an opportunity to speak, benefit big banks in New York. I don’t to electricity was in the 1930s or access if they wish to do so, on this con- represent New York. I don’t have any to a telephone was in the 1950s or 1960s. ference report. huge banks in my State. Long ago, I recognize that issue has been posi- Mr. GRAMM. Mr. President, let me other people bought out the big banks tively resolved in the course of our ne- agree with my ranking member to say in my State. I have sought in this bill, gotiations. that we have waited 40 years for this and I believe the vast majority of all of Second, the emerging issue of privacy bill. We are not waiting any longer our Members, have sought to promote is very important. I share the concerns than 3:30. If someone wants to get over the interests of the consumer. of many Americans about what will here and speak, they had better do it. This bill is about people who go to happen to their most sensitive infor- It is always a little bit risky to try to work every day and who borrow money mation in the new global marketplace. sum up on a bill such as this that has on their homes. If someone can im- I am pleased to say that we have been in the making for 40 years, a bill prove on their mortgage rate and bring taken the first steps in this legislation that overturns a piece of legislation down the interest they pay by even to guarantee greater privacy for Amer- that Franklin Roosevelt said was the one-quarter of 1 percent, that means ican consumers by requiring clear and most important bill ever passed by an thousands of dollars in their pockets plain disclosure about what informa- American Congress. over a 30-year period. That is what this tion will be used within a company, Having listened to the debate, I have bill is about. This bill is about people and also allowing American consumers a few points in conclusion. First, there who want checking accounts and who the right to opt out and prohibit com- is often such a difference between re- want services, and they want those panies that they do business with from ality and perception. I listened to some services provided on a competitive sharing their financial information of my colleagues, especially those who basis where they are as cheap as can be with third parties. oppose the bill, talk about special in- produced and sold. That is what this This is an issue we have only begun terests and what this special interest bill is about. to recognize. We must continue to fol- or that special interest got in this bill. This bill is about people who want low it in the days to come. If it should In my period of service in Congress, I the ability to do their banking, their be the case that greater protections are have never participated in the writing insurance, their securities, their retire- necessary, I will be one of those who of a bill with less special interests in- ment on a competitive basis. It is will help to lead the way and look for- volved than this bill. When Repub- about bringing together those forces.

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.074 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13913 We have been living with a system er in every small town will have the tors are paid, and everything else is that was established during the Great ability to identify a good small busi- paid off. That subordinated debt is a Depression. I don’t think there is any ness and give them access to capital real live thermometer that is con- reason now to go back and rehash why that has never existed before in the stantly telling us how well this finan- it happened. But one can make a history of this country. That is a ben- cial institution is. It is constantly tell- strong case that the Depression was efit which will accrue to literally hun- ing us how safe and how sound these in- produced by a failure of the Federal dreds of thousands of small businesses stitutions are. It represents, in my Reserve. Milton Friedman made that over the decades to come as a result of opinion, the beginning of our effort to case in the ‘‘Monetary History of the this bill because we will vastly expand deal with a very real problem that Sen- United States’’ and won the Nobel prize the number of securities underwriters, ator SARBANES talked about, and that principally for that work. we will make every bank in every city problem is the problem of being too big Congress was frightened. They didn’t in America a potential underwriter for to fail. We don’t let banks do anything know what to do. It was an age of dem- small business. That is a dramatic and within the bank unless they have an agoguery. Probably the most dema- positive change in law. incredibly high rating on that subordi- gogic statement that has ever been We dominate the world’s financial nated debt; that is, that it be rated made in American history was made by markets, and we have done it with one AAA, AA, or A. the President of the United States, hand tied behind us, because we have There has been a lot of talk about Franklin Roosevelt, when during the the greatest economic system in the CRA. The bottom line is we have done debate on Glass-Steagall he said: history of the world. several very positive things. First, sun- The money changers have fled from the But we can untie that hand that we shine is the best disinfectant. How can high seats in the temple of our civilization. have had tied behind us, and we do it in people be held accountable if we don’t That statement is reminiscent of this bill by repealing Glass-Steagall. know what they have been given statements being made in Central Eu- This bill is going to make America money to do, how much money they rope at the same time. more competitive on the world market, have been given, and how they spend it. Congress didn’t know what caused and that is important because it means In this legislation, we have set out an the Depression. They were frightened. thousands of jobs, high-paying jobs— ironclad process to guarantee us that They didn’t know what to do so they not just on Wall Street in New York information. passed a bill that I think one can argue City, but for every business and every Second, there is a regulatory burden historically was as punitive as it was consumer in America. I believe we are problem. Small banks end up being prescriptive. It was aimed at one man, too quick to say something benefits heavily burdened by regulations that in some ways—J.P. Morgan—probably Wall Street instead of Main Street. The often have a relatively nominal effect the greatest American of the early 20th reality is, Wall Street is the foundation on big banks. We have dealt with that century. We don’t know a lot about on which Main Street is built. When by giving smaller banks some needed him because he never held public of- America is more competitive, every regulatory relief. In terms of privacy, fice, but he was probably the greatest American benefits. we have heard a lot of discussion, but American of the early part of this cen- There has been a lot of talk that we need to remember two things: No. 1, tury. what we are trying to do is already we require in this bill, in a provision In this era, we had a bill passed that happening to some degree. And it is be- that was adopted in the conference, of- basically forced an artificial separation cause almost immediately after the fered by Members of the Senate con- of the financial sector of our economy. passage of Glass-Steagall, we had an ef- ference, a disclosure in detail of what a That bill, despite the fact its author fort by regulators to begin to bore bank’s privacy policies are. That gives within a year had concluded it was a holes in these walls between insurance consumers the most powerful tool that mistake, has been the law of the land. and banking, and between securities exists in a free society in protecting In fact, Time magazine calls it the de- and banking. We have seen, through privacy, and that is if you do not like fining financial legislation of the 20th regulatory innovation, a successful ef- the bank’s policy, you can take your century. fort in some areas to get around the business somewhere else. We came here today to change the law. This has allowed some competi- Second, we give consumers the power defining legislation of the 20th century. tion to occur. The problem is, what to opt out. We came to bring logic back to the fi- regulators give, they can take back. So So these are important provisions. I nancial sector. We didn’t come here we have created a situation where we thought, as we waited to be sure every- today to bring it back to benefit banks have given virtual police power to reg- one is here for this vote, that these or to benefit insurance companies or to ulators because they have allowed points needed to be made. benefit securities companies. We came these innovations to occur and they I reserve the remainder of my time. to overturn the most significant finan- can take them back at any moment. The PRESIDING OFFICER (Mr. FITZ- cial legislation of the 20th century be- That creates too much power to be fo- GERALD). The Senator from Maryland. cause it is in the interests of the Amer- cused in the hands of a very small Mr. SARBANES. Mr. President, as we ican consumer that it be overturned. number of people. come to the closing moments of this Let me touch on areas that will be We change that by tearing down the discussion of the conference report, I much benefited by this that have had walls, and in the process taking that want to recapitulate a few points. no discussion. The first point, one of discretionary power away from the reg- First of all, I think it must be under- the biggest problems we have, is the in- ulators so people are guaranteed in law stood that changes are taking place in ability of small businesses to raise cap- the right to be engaged in these activi- the financial landscape at the moment. ital. Probably the most concentrated ties. They have been taking place over the part of the American financial sector is My dear colleague from Maryland last 20 years. In some respects, this leg- securities underwriting. mentioned yesterday the issue of ‘‘too islation is an effort to create a statu- If a little business in Mexia or Col- big to fail.’’ That is a real issue. In this tory framework which will encompass lege Station, TX, or Cambridge or Eas- bill we start the process of dealing with the changes that have been happening ton, MD, or any other of thousands of the issue of too big to fail. We establish and which it is reasonable to assume small or medium-sized towns across a principle, as part of the compromise will continue to happen, even if we do America, has a good idea, they will that was worked out between Treasury not have legislation. have a hard time raising capital be- and the Federal Reserve, which is not So many of the connections and the cause it is hard to get Wall Street in- well understood. It is a complicated relationships about which some have terested in a small business in a little kind of issue. But what it does is pro- expressed concern in the course of the town unless you have one of the great foundly important because for the first debate—because they see this legisla- ideas of the century—and even then it time in American financial law, we re- tion as permitting them—are hap- takes a long time to prove it. quire big banks to have subordinated pening right now and will continue to By letting banks participate in un- debt. That is debt that only gets paid happen. But they are happening with- derwriting securities now, every bank- once the depositors are paid, the credi- out a rational legislative framework,

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.076 pfrm13 PsN: S04PT1 S13914 CONGRESSIONAL RECORD — SENATE November 4, 1999 without the Congress, in effect, having Which, of course, has become an in- much more careful oversight. It is pref- made judgments as to what the struc- creasingly relevant consideration as we erable to have a framework developed ture of the system is going to be, with- consider our position vis-a-vis those of by the Congress, not on an ad hoc basis out the actors within the system know- financial institutions headquartered in by one regulator or another regulator, ing exactly what the rules are, and countries overseas. not in situations where some perceive having the security that comes from From the very beginning, many of us that regulators are being competitive knowing they are operating within a made it very clear there were impor- with one another in terms of how they defined environment. tant principles we thought had to be deal with the financial services sector. I stress that because some have addressed with respect to this legisla- If we can have a responsible statutory raised it in the course of the debate. tion if we were to support it. We had to framework established by the Congress Let me say in that respect I think we face questions, of course, of the safety which is contained in this legislation have had a very good debate on this and soundness of our financial system. that is now before us, it will contribute conference report, if I may say so. I We had important questions of CRA, to the safety and soundness of the fi- thank those of our colleagues who have important questions of consumer pro- nancial system. This legislation better spoken because of the depth of the per- tection, important questions of the line enables us to maintain the separation ceptions and understanding they have between banking and commerce, which of banking and commerce. brought to this debate. I think what has been an important principle in the There are important consumer pro- transpired last night and today has American system. tections, including some protections been in the better traditions of the In the end, we have been able to work about which the Securities and Ex- Senate. these issues in a way that we have ad- change Commission was concerned, and The marketplace in many respects dressed those concerns—not entirely in the legislation that has been developed has influenced the need for this legisla- some instances. has the very clear support of the Secu- tion. Securities firms have been offer- People have talked about privacy rities and Exchange Commission. ing bank-like products. Banks have today. It is my expectation that issue We have preserved the relevancy of been offering insurance-like products. will continue to remain on our agenda the Community Reinvestment Act, and Both have been engaged in significant because we have not yet fully disposed we have given banks the choice to con- securities activities. This has been tak- of it, although I do note this bill put in duct their expanded activities either ing place out in the marketplace but some privacy protections where none through a holding company or, to a without a statutory framework within now exists. People should bear that in limited extent, through a subsidiary. which it clearly functions. These devel- mind. Those who look at these provi- That was the issue that had the Fed- opments have now been going on for sions and say: We want more—and I am eral Reserve and the Treasury in deep more than two decades. We have been essentially with them; I introduced a discussions with one another, and in the end I believe they resolved that wrestling in the Congress for approxi- bill earlier in this session that had satisfactorily. mately that length of time to see how more such provisions, and I continue to Let me also observe that this ration- support those concepts—for those who to revise our laws concerning financial al legislative framework we are put- say they want more, they need to un- services in order to update them. We ting into place provides for the future are about to accomplish that today. derstand we have nothing at the mo- evolution of the financial services in- This will enable the regulators—and ment. The privacy provisions that are dustry. People will have the security of of course this bill is very strong on in this bill represent an important step knowing what the playing field is, functional regulation—to maintain ap- forward. something they do not know today propriate oversight as we deal with I also have indicated that the too- with assurance. Nowadays, they go to a this evolving marketplace. At the same big-to-fail issue—and the chairman has regulator and get permission to engage time, it will enable financial service also commented on that—is an impor- in an activity. The next thing they firms to respond to the needs of their tant matter that still remains before know, they are in court, and then the customers. Many assert the customers us. It is imperative this study the Fed- case has to wind its way through the will receive very significant savings. eral Reserve and the Treasury are to do court system. They may either be Others say, no, no, it is going to result jointly come back with recommenda- upheld or turned down. in greater costs. In a sense, we will tions that enable us to address that No one is quite sure what they are have to see how it plays out. issue. permitted to do and what they are not The administration sent a letter to This is a risk that is present in the permitted to do. People are constantly us from the Secretary of the Treasury. situation. We have confronted it in the testing the edges of this. The regu- I ask unanimous consent that letter be past with respect to various financial lators are in some confusion. In some printed in the RECORD at the conclu- institutions. We get the moral hazard instances we have overlap, and in other sion of my remarks. question: Institutions which assume instances we seem to have no overlap- The PRESIDING OFFICER. Without they have reached the size that they ping at all—in fact, a vacuum—in objection, it is so ordered. then become too big to fail have less of terms of overseeing these activities. (See Exhibit 1.) a constraint upon them in terms of With this conference report and this Mr. SARBANES. The administration their activities than smaller institu- legislation which represents a major says the following: tions because they begin to operate on change—there is no doubt about that— By allowing a single organization to offer the assumption that no one is going to these are far-reaching and difficult any type of financial product, the bill will require them to bear the consequences public policy issues. They have not stimulate competition, thereby increasing of their imprudence. choice and reducing costs for consumers, been solved for so long because they communities, and businesses. Americans There have been occasions, of course, are far-reaching and difficult. We have spend over $350 billion per year on fees and in the past when regulators have said had to address balancing the needs and commissions for brokerage, insurance and we simply cannot allow this institution concerns of the consumers—which, banking services. If increased competition to bear the full consequences of its bad after all, ought to be one of our prime yielded savings to consumers of even 5 per- judgments because if we do that, it will objectives—with a necessity of accom- cent, they would save over $18 billion per have an impact upon the financial sys- modating to new technology and new year. tem as an entirety; therefore, we need ways of doing business and the nature They go on to say: to work out ways in which we can ad- of the competition we are facing from Removal of barriers to competition will dress that question with respect to abroad. also enhance the stability of our financial these large financial mergers and ac- In the course of working through services system. Financial services firms quisitions which, of course, are going this, it has been an extremely inter- will be able to diversify their product offer- to happen under this legislation. Of esting process. I take considerable sat- ings and thus their sources of revenue. Financial firms will be able to diversify course, they were already happening. isfaction from the fact that in working their product offerings and thus their What the legislation does is put a with the chairman and with many oth- sources of revenue. They also will be better framework around this activity which ers, we have been able to go from a po- able to compete in global financial markets. will enable the regulators to exercise sition where we had a bill that, when it

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.082 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13915 left the Senate, was vehemently con- porate structure that best serves their cus- Although the Administration strongly sup- tested to where we now come back with tomers, and continue the traditional separa- ports S. 900, there are provisions of the bill a conference report that most of us, if tion of banking and commerce. As approved that concern us. The bill’s redomestication by the Conference Committee, S. 900 accom- provisions could allow mutual insurance not all, can join in supporting and com- plishes each of these goals. companies to avoid state law protecting pol- mending to our colleagues. With respect to CRA, S. 900 establishes an icyholders, enriching insiders at the expense I recognize some of the points that important, prospective principle: banking or- of consumers. The Administration intends to were made here by some who were ap- ganizations seeking to take advantage of monitor any redomestications and state law prehensive about the future. I think new, non-banking authority must dem- changes closely, and return to the Congress those are reasonable arguments. They onstrate a satisfactory record of meeting the if necessary. The bill’s Federal Home Loan are arguments we considered. They credit needs of all the communities they Bank provisions fail to focus the System were factors with which we had to serve, including low and moderate income more on lending to community banks and communities. Thus, S. 900 for the first time less on arbitrage activities short-term lend- wrestle. But I am hopeful that what we prohibits a bank or holding company from ing that do not advance its public purpose. are doing here will represent a very im- expanding into newly authorized businesses The Administration strongly supports portant step forward in the workings of such as securities and insurance under- S. 900, and urges its adoption by the Con- the financial services industry, in the writing unless all of its insured depository gress. protections for our consumers, in giv- institutions have a satisfactory or better Sincerely, ing us a rational statutory framework, CRA rating. Furthermore, CRA will continue LAWRENCE H. SUMMERS, and in enabling the regulators to do to apply to all banks, and existing proce- Secretary of the Treasury. dures for public comment on, and CRA re- their job. Mr. GRAMM. Mr. President, it would view of, any application to acquire or merge be my objective to speak and end by It sustains the relevancy of the Com- with a bank will be preserved. The bill offers munity Investment Act, which has further support for community development 3:30 and we would have the vote. been so important for some of the in the form of a new program to provide The PRESIDING OFFICER. The Sen- movement of capital into low- and technical help to low- and moderate-income ator from Texas. Mr. GRAMM. Mr. President, success moderate-income communities in this micro-entrepreneurs. is claimed by a thousand parents. And country. It has made such a difference. The bill includes other measures affecting CRA that have been narrowed significantly today there are a lot of people who can It is a very important first step, an im- from their earlier Senate form. The bill in- claim parenthood. I am very happy to portant first step on the privacy issue. cludes a limited extension of the CRA exam- have played a part in delivering the We have tried to safeguard the ability ination cycle for small banks with out- bill before the Senate today. of State regulators to participate. On standing or satisfactory CRA records, but ex- I think it represents the American privacy, States can continue to enact pressly preserves the ability of regulators to legislative process at its best. It has re- legislation of a higher standard than examine a bank any time for reasonable cause, and does not affect regulators ability sulted more from an effort to reach a the Federal standard. State insurance logical conclusion than to satisfy var- regulators will continue to play the to inquire in connection with an application. Finally, the bill includes a requirement for ious special interest groups. In that role they have traditionally played disclosure and reporting of CRA agreements. way, it is not unique but it is different. with respect to State regulation of in- We believe that the legislation and its legis- But the question is not how proud we surance. lative history have been constructed to pre- are of this bill today. The question is, So I think, all in all, we have put to- vent undue burdens from being imposed on How will it look 50 years from now gether a good and balanced package. I banks and those working to stimulate in- when it has gone from infancy to matu- commend it to my colleagues as we vestment in underserved communities. In May, the President stressed the impor- rity? move to final passage. I thank the Obviously, after setting out a dra- chairman of the committee. tance of adopting strong and enforceable privacy protections for consumers financial in- matic change in public policy, it is fair I yield the floor. formation. S. 900 provides protections for to set out a test for determining its EXHIBIT 1 consumers that extend far beyond existing success. How will people judge whether DEPARTMENT OF THE TREASURY, law. For the first time, consumers will have we were successful in passing this bill Washington, DC, November 3, 1999. an absolute right to know if their financial today? My test is, What are we trying Hon. TOM DASCHLE, institution intends to share or sell their per- to do in the bill? Are we trying to ben- U.S. Senate, sonal financial data, and will have the right efit banks or insurance companies or Washington, DC. to block sharing or sale outside the financial securities companies, or are we trying DEAR TOM: The Administration strongly institutions’ corporate family. Of equal im- supports passage of S. 900, the Gramm- portance, these restrictions have teeth. to benefit consumers and workers? The Leach-Bliley Act of 1999. This legislation S. 900 gives regulatory agencies full author- test that I believe we should use—the will modernize our financial services laws to ity to enforce privacy protections, as well as test I will use, the test I hope people better enable American companies to com- new rulemaking authority under the existing looking at this bill years in the future pete in the new economy. Fair Credit Reporting Act. The bill also ex- will use—is, Did it produce a greater The bill makes the most important legisla- pressly preserves the ability of states to pro- diversity of products and services for tive changes to the structure of the U.S. fi- vide stronger privacy protections. In addi- American consumers? Were those prod- nancial system since the 1930s. By allowing a tion, it establishes new safeguards to prevent ucts better? And did they sell at a single organization to offer any type of fi- pretext calling, by which unscrupulous oper- lower price? I think if the answer to nancial product, the bill will stimulate com- ators seek to discover the financial assets of petition, thereby increasing choice and re- consumers. In sum, we believe that this re- those three questions is yes, then this ducing costs for consumers, communities flects a real improvement over the status bill will have succeeded. and businesses. Americans spent over $350 quo; but, we will not rest. We will continue The world changes, and we have to billion per year on fees and commissions for to press for even greater protections—espe- change with it. Abraham Lincoln used brokerage, insurance, and banking services. cially effective choice about whether per- to tell the story about how Govern- If increased competition yielded savings to sonal financial information can be shared ment had to change all outmoded laws consumers of even 5 percent, they would with affiliates. because they did not fit anymore, have over $18 billion per year. We are pleased that the bill promotes inno- much as it would be unreasonable to Removal of barriers to competition will vation and competition in the financial sec- also enhance the stability of our financial tor, by allowing banks to choose whether to expect a man to wear the same clothes services system. Financial services firms conduct most new non-banking activities, in- he wore as a boy; that there is a nature will be able to diversify their product offer- cluding securities underwriting and dealing, to things and to society, and as they ings and thus their sources of revenue. They in either a financial subsidiary or an affil- change, Government has to change to also will be better able to compete in global iate of a bank. recognize the new reality. financial markets. The bill also promotes the safety and I believe today we are changing fi- The President has strongly supported the soundness of the financial system by enhanc- nancial services in America to reflect elimination of barriers to financial services ing the traditional separation of banking and that we do have a new century coming competition. He has made clear, however, commerce. The bill strictly limits the abil- that any financial modernization bill must ity of thrift institutions to affiliate with and we have an opportunity to domi- also preserve the vitality of the Community commercial companies, closing a gap in ex- nate that century the way America Reinvestment Act, enhance consumer pro- isting law. The bill also includes restrictions dominated the last century. tection in the privacy and other areas, allow on control of commercial companies through Ultimately, the final judge of the bill financial services firms to choose the cor- merchant banking. is history. Ultimately, as you look at

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.084 pfrm13 PsN: S04PT1 S13916 CONGRESSIONAL RECORD — SENATE November 4, 1999 the bill, you have to ask yourself, Will might have been a bit difficult, but I lation, we did not give up. We intro- people in the future be trying to repeal think it is an important provision. I duced an alternative bill that could it, as we are here today trying to re- like the provisions for community re- garner bipartisan support. And I am peal—and hopefully repealing—Glass- investment. I think it is a terrific com- proud to say that this conference Steagall? I think the answer will be no. promise. My small banks have been agreement embodies all of the prin- I think it will be no because we are asking for regulatory relief that pro- ciples that we advocated in our alter- doing something very different from vides it. I think the sunshine provi- native bill. Glass-Steagall. Glass-Steagall, in the sions are quite exciting. I look forward We do not need to surrender our be- midst of the Great Depression, thought to seeing where this money and how liefs to support of this bill, because it Government was the answer. In this pe- this money is being spent. adopts our positions on every major riod of economic growth and pros- On the issue of privacy, you have im- issue. Best of all, these victories mean perity, we believe freedom is the an- proved current privacy protections, that the President can sign this bill swer. better than what we have under exist- into a law, so it can improve the deliv- This is a deregulatory bill. I believe ing law. I must say, I had my own in- ery of financial services for many years that is going to be the wave of the fu- terest in privacy, and my concern to come. ture. Although this bill will be changed about privacy increased as a con- Our positions prevailed right down many times, and changed dramatically sequence of examining this bill. I hope the line. as we expand freedom and opportunity, to participate in a bipartisan effort to Our position prevailed on banking I do not believe it will be repealed. It give the American people the kind of and commerce: this bill strictly limits sets the foundation for the future, and privacy protections that American citi- the ability of thrifts to affiliate with that will be the test. zens both expect and deserve. commercial companies, closing a loop- So I am proud to have been part of Again, I congratulate and thank very hole in current law. Our position prevailed on operating this. I am proud to have worked with much the chairman and ranking mem- subsidiaries: the bill allows banks to everybody as part of the process. It has ber. It is a very important piece of leg- choose whether to conduct new activi- been interesting and Government at its islation. People were predicting you ties in either a financial subsidiary or best. I think one of the reasons we run were not going to be able to get the job an affiliate. They can choose whatever for public office is to get a chance to do done. I hope you enjoyed the pizza that form best suits their customers’ needs. things such as this. I am glad to have night when you stayed up very late to Our position prevailed on consumer had an opportunity to play a part and finish your work. I am grateful you protections: the SEC retains the abil- urge all of my colleagues to support went the extra mile. There is no doubt ity to protect consumers when banks this dramatic move into the future. in my mind there is going to be a posi- sell securities products, which was a Mr. KERREY addressed the Chair. tive cause and effect between this bill major concern of SEC Chairman The PRESIDING OFFICER. The Sen- being law and the health of the U.S. Levitt. The agreement also preserves ator from Nebraska. economy. important state consumer protection Mr. SARBANES. Mr. President, is Mr. DASCHLE. Mr. President, this laws governing insurance sales, and there time remaining? I yield the Sen- legislation has been a long time com- prohibits coercive sales practices. ator 2 minutes if there is. ing. Many, including this Senator, con- Our position prevailed on the Com- The PRESIDING OFFICER. There is sider it long overdue. It is historic in munity Reinvestment Act: CRA is pre- time until 3:30. magnitude. served under this bill. The agreement Mr. KERREY. Mr. President, I will be It has been described, appropriately, addresses our greatest concern by re- done by 3:30. as a new ‘‘Constitution’’ for financial quiring that banks have a good track I intend to vote for this legislation. I services for the 21st Century. Because record on lending within their own congratulate the parents of the bill: of its importance, it has been hard communities before they can expand Senator GRAMM, Senator SARBANES, fought. But we can be proud of the into newly authorized businesses. and others, who worked very hard. This final product. It will foster a continu- We can be proud of these achieve- was not easy to do. ation of the extraordinary economic ments, and proud to support this bill. I agree, it is Government at its best. growth this nation has seen in the last At the same time, we can be dis- I believe this is very much several years. appointed the bill does not go further proconsumer. There is nothing more Most importantly, it offers new op- to protect consumers’ financial pri- frustrating than trying to do a finan- portunities and benefits for American vacy. The bill does contains some im- cial transaction and being told: I would consumers. It allows for ‘‘one-stop portant provisions requiring financial like to be able to do it, but I can’t. We shopping’’ for an array of financial institutions to give customers notice have been limiting our individual ca- services. Americans will be able to con- about their privacy policies. But these pacity to develop our economy, to pur- duct their banking, insurance and in- companies retain extraordinary lati- sue the American dream, and do all vestment activities under one roof, tude in sharing a customer’s most sen- other sorts of things that make Amer- with all the convenience that entails. sitive, personal information without ica such a great country. By allowing a single company to the customer’s consent and without I appreciate very much the effort offer an array of financial products, even giving the customer the right to made to make certain there is still this bill will stimulate competition, object. We have to do better. This issue good regulatory oversight. I have no leading to greater choices and reduced is far from over, and we will have to re- doubt that safety and soundness con- fees for consumers and businesses visit it next year. siderations will be taken into account. alike. New companies will create inno- Despite these shortcomings, which I think the concerns that we are going vative new products for consumers. also exist in current law, this legisla- to have a meltdown such as we had in It is important to remember how far tion will benefit consumers, businesses 1929 are concerns that are dramatically we have come to reach this historic and the economy, and deserves our sup- overblown, given the strength both of moment. Congress has been trying to port. Through this bill, Congress is fi- the Treasury and the Federal Reserve pass a bill along these lines for 20 nally reforming our outdated financial in this legislation. years. We came extremely close in the services laws to recognize new realities So I appreciate very much the hard last Congress, but it fell apart in its in the marketplace. work and diligence of the chairman and waning moments over disagreements I would like to commend our many the ranking member because I believe about the Community Reinvestment colleagues, administration officials, our economy and our people will ben- Act. and outside institutions that have efit from it. Again in this Congress, the bill saw worked so long and so hard to bring us I am grateful as well—I do not know some tough moments. In the Senate, it to this point. We must especially rec- if the Senator from Texas is—that the passed by party-line votes both in com- ognize the leadership of the ranking unitary thrift provision is limited in mittee and on the floor. member of the Banking Committee, this legislation. The Johnson-Kerrey Because of the deep commitment of Senator SARBANES, for his dogged de- amendment that passed on the floor Democrats to enactment of this legis- termination to ensure that this final

VerDate 29-OCT-99 04:30 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.085 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13917 product upheld the public’s best inter- The PRESIDING OFFICER. The too afraid to change the status quo or ests. The Secretary of the Treasury, clerk will call the roll. to even question our own rhetoric? Are Larry Summers, and his predecessor, The bill clerk proceeded to call the we asking the right questions? Are we former Secretary Rubin, also played roll. really posing the right answers? key roles in ensuring that this legisla- Mr. SANTORUM. Mr. President, I I know it is in our spirit as Ameri- tion protected the interests of Amer- ask unanimous consent that the order cans to hope for the best and to believe ican consumers. for the quorum call be rescinded. things will get better. That is usually I must also commend the Chairman The PRESIDING OFFICER. Without the way it is. But how many shootings of the Banking Committee, Senator objection, it is so ordered. will it take before we realize things GRAMM, for his recognition of the need f aren’t getting better on their own? for compromise and bipartisanship in They are getting worse, and it is up to MORNING BUSINESS producing a bill that deserves the sig- us to take action. nature of the President of the United Mr. SANTORUM. I ask unanimous It seems to me we, as a nation, have States. consent there be a period of 30 minutes not dealt with the mentally ill. We Mr. President, this legislation de- for morning business, with the first 10 don’t want to pay for costly services. serves the support of an overwhelming minutes allocated to the Senator from But don’t we all end up paying later at bipartisan majority of our colleagues, Washington and the second 5 minutes a far higher cost? It seems to me, as a and I urge them to vote for it today. to the Senator from Mississippi. nation, we have not spoken out against The PRESIDING OFFICER. The hour Mr. GRAHAM. Mr. President, I ask violence in a strong and consistent of 3:30 having arrived, the question is unanimous consent the third period be manner. Can’t we find a way to speak on agreeing to the conference report. allocated to the Senator from Florida. out without violating our freedom of The yeas and nays have been ordered. Mr. SANTORUM. Fifteen minutes for speech? Can we have this conversation The clerk will call the roll. the Senator from Florida. without falling into the traps of the far The legislative clerk called the roll. The PRESIDING OFFICER. Without right and the far left? Mr. FITZGERALD (When his name objection, it is so ordered. Every time we turn on the news and was called). Present. f we are gripped by fear, guns are in- Mr. NICKLES. I announce that the WASHINGTON STATE TRAGEDY volved. What tragedy will it take be- Senator from Arizona (Mr. MCCAIN) is fore we act? How many people have to necessarily absent. Mrs. MURRAY. Mr. President, this is die? How many shootings is it going to The PRESIDING OFFICER (Mr. a difficult day for the people of my take? How close to home do they have GREGG). Are there any other Senators home State of Washington. I spent a to strike? in the Chamber desiring to vote? lot of time last night talking with my We had a shooting here in the Cap- The result was announced—yeas 90, neighbors, my family members, and itol, in the heart of democracy, and we nays 8, as follows: local officials in Seattle. Like me, they still have not acted. Can’t we make [Rollcall Vote No. 354 Leg.] are all trying to make sense out of commonsense rules about keeping guns YEAS—90 something that makes no sense—yes- away from those who shouldn’t have terday’s act of violence which killed Abraham Enzi Lott them? Akaka Feinstein Lugar two people, injured two more, and I personally am tired of the old rhet- Allard Frist Mack brought fear to my own neighborhood. oric. From the far left they say: Take Ashcroft Gorton McConnell I wasn’t sure if I should come to the Baucus Graham Moynihan all the guns away. From the far right Bayh Gramm Murkowski floor today because I kept asking my- they say: It is not the guns, it is lax Bennett Grams Murray self, What is there left to say? That law enforcement. Biden Grassley Nickles once again, Americans are mourning Give me a break. We are the greatest Bingaman Gregg Reed after yet another deadly shooting? Bond Hagel Reid nation in this world; can’t we come up Breaux Hatch Robb That once again, our families and our with some commonsense ideas about Brownback Helms Roberts neighbors are gripped with fear because how to protect our own people? I think Bunning Hollings Rockefeller someone with a gun has decided to act we can. Burns Hutchinson Roth Byrd Hutchison Santorum violently? That once again, these out- This Congress has failed miserably. Campbell Inhofe Sarbanes breaks of violence aren’t going away— Here we are, in the same year as the Chafee Inouye Schumer they are just becoming too common? Columbine tragedy, with no juvenile Cleland Jeffords Sessions I decided I should come to the floor Cochran Johnson Smith (NH) justice bill, no background checks for Collins Kennedy Smith (OR) to offer first my condolences to the guns sold at gun shows, no resources Conrad Kerrey Snowe families who have been involved and to for our communities to help those who Coverdell Kerry Specter talk to the people of my State and to are mentally ill, and no afterschool ac- Craig Kohl Stevens Crapo Kyl Thomas thank the law enforcement officials tivities for our kids. That is shameful. Daschle Landrieu Thompson who have responded and to talk to my I hope my colleagues will stop and DeWine Lautenberg Thurmond colleagues about what we can do. My think for a minute and realize this is Dodd Leahy Torricelli heart goes out to everyone who walks Domenici Levin Voinovich not happening to someone else. It is Durbin Lieberman Warner along the Burke-Gilman Trail, a trail I happening to all of us. It was Hawaii on Edwards Lincoln Wyden have walked on so many times. My Tuesday. It was Washington on NAYS—8 heart goes out to every child who was Wednesday. It could be your State held in school until they got home Boxer Feingold Shelby today. Those are just the mass shoot- Bryan Harkin Wellstone safely last night and into their parents’ ings that get a lot of media attention. Dorgan Mikulski arms. My heart goes out to everyone We should not forget, on the average, ANSWERED ‘‘PRESENT’’—1 who works and lives and knows this 12 children a day die from gunfire. neighborhood. On Tuesday, it was safe. Fitzgerald I say to my colleagues, I would love Today, it is gripped with fear. to work with anyone from either side NOT VOTING—1 Do we see what is happening? Or have of the aisle who wants to take the time McCain these crazy acts become so common to really talk about what our country The conference report was agreed to. that we think we just cannot do any- is facing. There are many factors. Peo- Mr. SARBANES. I move to recon- thing about them? Can’t we see it was ple are overstressed; violence is perva- sider the vote. someone else’s neighborhood yester- sive; weapons are easy to get. It is a Mr. BAUCUS. I move to lay that mo- day? It was my neighborhood today. flammable combination that has ex- tion on the table. Tomorrow it could be your neighbor- ploded too often. The motion to lay on the table was hood. What can we do? Why haven’t we Our country is looking for leaders agreed to. done something already? Are we too who will work together on this. I say it Mr. SANTORUM. I suggest the ab- gripped with partisanship? Are we too is time to try. I invite anyone who sence of a quorum. tied to special interests to act? Are we wants to work with me to let me know.

VerDate 29-OCT-99 04:30 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.087 pfrm13 PsN: S04PT1 S13918 CONGRESSIONAL RECORD — SENATE November 4, 1999 I certainly am one mom who has had One reality is the new ballistic mis- unsustainable. They deferred, and the enough. sile threat. The other is that the result was a tripling of the national I yield the floor. United States is going to respond to debt in less than a decade. Several Senators addressed the this threat and protect itself by de- We face the same choice today. Our Chair. ploying a missile defense system. The positive economic outlook creates a The PRESIDING OFFICER. The Sen- sooner the Russians understand our similar potential for the United States. ator from Mississippi. commitment to defend ourselves, the The budget surplus gives us the re- f more likely it is we can agree to sen- sources to convert a substantial part of NATIONAL MISSILE DEFENSE AND sible modifications of the ABM Treaty that potential to reality. THE ABM TREATY for our mutual benefit and safety. At the beginning of the year, the The PRESIDING OFFICER. The Sen- Congressional Budget Office estimated Mr. COCHRAN. Mr. President, recent ator from Florida is recognized for 15 we would have a non-Social Security comments by several Russian Govern- minutes. surplus of $21 billion. What have we ment officials about the Anti-Ballistic Mr. GRAHAM. Mr. President, I ask done in the last 10 months? The com- Missile Treaty and our plans to deploy unanimous consent for an additional 5 bination of excessive spending and the a national missile defense are very minutes in morning business. budget trickery designed to disguise troubling to me. For example, the Rus- The PRESIDING OFFICER. Without even greater spending have placed the sian Foreign Minister, Mr. Ivanov, was objection, it is so ordered. on-budget surplus in serious jeopardy quoted last week as saying: f and threatened to undermine the So- There . . . cannot be any bargaining with cial Security surplus. These actions— the Americans over the anti-ballistic missile SAVING THE SOCIAL SECURITY spend and then hide—have occurred in defense. SURPLUS waves throughout 1999. As with our This may be a clever negotiating tac- Mr. GRAHAM. Mr. President, the be- tic, but it is not a very productive one. coastline, no single wave erodes our ginning of this congressional session beaches. Rather, it is a succession of It unnecessarily pushes the United was filled with hope and promise. A States to make a choice between de- waves that erodes the sand. These strong economy and improvements in spending waves have eroded our sur- fending ourselves against limited bal- the Federal budget gave us a wonderful listic missile threats and withdrawing plus, eroded our opportunities, eroded opportunity to make important invest- our vision of what could be accom- from the Anti-Ballistic Missile Treaty. ments in our Nation’s future. A portion We have already decided, by the adop- plished. of these surpluses could be used to ex- In May of 1999, the Congress passed a tion of the National Missile Defense tend the solvency of the Social Secu- Act, that we will defend ourselves as supplemental appropriations bill which rity program. A portion of the surplus provided for $15 billion for everything soon as technologically feasible could be used to restore solvency to against limited ballistic missile at- from reconstruction aid for Central Medicare and to modernize its benefit tack. We should not be forced to with- America and the Caribbean to farm structure to reflect current medical draw from the treaty. loan assistance. Much of the May sup- The Russians should understand that practices. A portion of the surplus plemental bill was designated as an our system is directed at rogue threats could be used, as was urged in the full- emergency. No spending cuts or rev- and will not jeopardize their strategic page ad in the Washington Post of Oc- enue increases were enacted to offset deterrent force. We have an oppor- tober 28, ‘‘to use this opportunity to the emergency spending contained in tunity to work cooperatively to ensure preserve our parks and open spaces for- that May 1999 supplemental appropria- that we are protected, both Russia and ever.’’ This could be accomplished by tion. The consequence? A $15 billion re- the United States, against emerging such things as fully funding the Land duction in the non-Social Security sur- ballistic missile threats without under- and Water Conservation Fund, and a plus. mining strategic deterrence. portion of the surplus could be used to The May supplemental appropria- The ABM Treaty needs to be changed fund tax relief and economic stimula- tions lowered for 1999 the surplus by $4 to permit the deployment of defenses tion. billion. That was a significant number against limited ballistic missile Instead of devoting the surplus to because without that additional $4 bil- threats and to allow the parties to uti- these important matters, Congress is lion of unpaid-for spending, we would lize new defensive technologies. There dribbling away the surplus with a com- have actually ended 1999 with an on- should be no restrictions, for example, bination of get-out-of-town spending budget surplus. But because of it, we on the use of sensor capabilities such and budgetary trickery. Our actions— have ended 1999 with an on-budget def- as the space-based infrared system and emergency spending, scorekeeping ad- icit of $1 billion. cooperative engagement capability. We justments, administrative directives— The May supplemental will lower the should also be able to take advantage have one simple result: They are spend- current fiscal year 2000 on-budget sur- of new basing modes and advanced ing our surplus. Once current revenues plus by $7 billion. It will lower the next technologies such as the airborne laser. are spent, the non-Social Security sur- fiscal year 2001 by $2 billion; 2002 by $1 The ABM Treaty must be interpreted plus will be spent and the Social Secu- billion; and 2003 by $1 billion. to allow the parties to use the best rity surplus will be spent. If Congress By this action, we not only adversely technologies that are available in their continues on this gimmick-potholed affected the fiscal status of the year in own defense against rogue threats. The path, we will be harshly judged by the which the action was taken but for 4 strategic deterrent of each nation can American people for our shortsighted- years into the future. be preserved at the same time limited ness. This chart shows we started with a missile defenses are permitted and con- On October 4 of this year, the Wash- $21 billion on-budget surplus; as a re- sidered acceptable under the ABM ington Post ran an article on the 10- sult of that portion of the supple- Treaty. year anniversary of the reunification of mental appropriations which was ap- Another Russian Foreign Ministry Germany. In that article, Wolfgang plied to fiscal year 2000, we reduced it spokesman said last week: Schaeuble, the Christian Democratic by $7 billion. So now we only have a $14 Russia does not see as acceptable such an leader and Chancellor Kohl’s most billion on-budget surplus. ‘‘adaptation″ of this treaty. Russia will not trusted adviser, lamented the fact that The next wave hit in August of 1999, be a participant in destroying the ABM Trea- Germans had avoided making the the Agriculture Appropriations Act: $8 ty. tough political choices 10 years ago billion of emergency spending, again, The Russian Government’s conten- that would have made their country none of which was offset by reductions tion that adapting the ABM Treaty to stronger today. The spirit of reunifica- in spending elsewhere or increased rev- modern realities is akin to destroying tion created an atmosphere for reform. enues. So we have reduced the on-budg- it is unfortunate. In fact, the opposite The Germans could have used that et surplus by another $8 billion from is true. To refuse to adapt this treaty spirit to make fundamental changes to $14 billion to $6 billion. to the new realities is to guarantee its their overly generous social contract In October of 1999, the Defense appro- irrelevance. that all acknowledged was priations bill included more than $7

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.096 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13919 billion in emergency spending, of ministrative action. In an effort to we will dip into Social Security by which $5 billion reduces this year’s on- avoid paying for additional spending, about $20 billion. In the year 2001, we budget surplus. So our $6 billion on- congressional leaders have asked the will spend all the revenue we collect, budget surplus is now down to $1 bil- administration to make changes in the and at this rate, we have already spent lion. Medicare rules allowing for higher re- all but $3 billion of the on-budget sur- Also, in October of 1999, the Com- imbursement levels to Medicare health plus. merce-State-Justice appropriations bill care providers. These payments, antici- Why is this recounting of the reality designated $4.5 billion of spending for pated to be approximately $4.5 billion of our spendthrift year of 1999 impor- the emergency of the decadal census. over the next 5 years, will not show up tant? Some say it does not matter if we More than $4 billion of that amount in any action taken by Congress, but spend the Social Security surplus; we will come directly out of the 2000 on- they will certainly result in higher have done it for 30 years, so why not 1 budget surplus and, thus, as a result of spending and smaller surpluses. more year? Why stop the spend-and- that, we have exhausted our on-budget The analogy is to a family which borrow party today? Spending the So- surplus, and we have reduced the So- sends a son or daughter to college and cial Security surplus is stated to be cial Security surplus from $147 billion gives him or her a credit card to pay good for the economy. to $144 billion. for college expenses. The credit card I argue just the opposite, that pre- What have we done thus far? We have receipts may not be signed by the par- serving the Social Security surplus is initiated a series of waves of unfunded ents, but they are ultimately going to intricately linked to a strong Amer- spending which have gone through all be responsible. At the day of reck- ican economy. Most economists agree of our regular revenue for the year 2000 oning, they will have to pay for them that increasing national savings is im- and now have gone through all of the and reduce their bank account in so portant to maintaining a strong econ- on-budget surplus and have eaten into doing. omy. Greater savings results in greater the Social Security surplus by $3 bil- The threat to the on-budget and So- investment in plant and equipment, lion. cial Security surpluses are not con- which creates jobs and raises produc- That was not all. In addition to this fined to the current fiscal year. There tivity. Greater productivity translates spending, we have also had a series of are other waves that have yet to hit into a higher standard of living. The accounting tricks. In the summer of the beach but are forming on the surest way to increase national savings 1999, to give the appearance of meeting ocean’s horizon. is to reduce the Federal debt. the discretionary spending caps estab- As an example, we are proposing pay- The Finance Committee even has a lished as part of the Balanced Budget backs, additional reimbursement to subcommittee dedicated to this propo- Act of 1997, the Budget Committee di- Medicare providers for the current fis- sition. It has a subcommittee with the rected the Congressional Budget Office cal year of $1 billion; for the fiscal year title, Long-Term Growth and Debt Re- to alter its estimates of spending in- 2001, $5 billion; and over the next 10 duction. We have denominated one of cluded in several of the appropriations years, $15 billion. None of those are our very institutions to the proposition bills. These so-called scorekeeping ad- currently proposed to be offset by ei- of the relationship between economic justments which total $17 billion make ther spending reductions or revenue in- growth and debt reduction. Alan Greenspan, the Chairman of the it look as if we are spending less in the creases. In the House of Representa- current year than is actually the case. Federal Reserve Board, told the Senate tives, they are proposing to marry a The Budget Committee justifies Finance Committee earlier this year: minimum wage increase with tax cuts. these directions by claiming they are Those tax cuts over 10 years will total Increasing our national saving is critical. more in line with those used by the Of- The President’s approach to Social Security fice of Management and Budget. $95 billion. They are not proposed to be reform supports a large unified budget sur- What is happening is we are cherry offset by either spending cuts else- plus. This is a major step in the right direc- picking. For example, the Office of where or revenue increases. tion in that it would ensure that the current Management and Budget spending esti- Mr. President, $5 billion of the discre- rise in government’s positive contribution to mate for the year 2000 for the Depart- tionary spending authorized in the last national saving is sustained. ment of Defense is lower than the Con- few months will not occur in the cur- I would say that quotation is even gressional Budget Office. Therefore, rent fiscal year but, rather, have been more relevant today, as we have just the Budget Committee says: Use the pushed into 2001, and another $2 billion gotten the latest monthly report on Office of Management and Budget. But has even been pushed into the year the national personal savings rate and guess what. When we turn to the en- 2002. The spending limits of fiscal years it is virtually at an all-time low. It is, ergy and water appropriations bill 2001 and 2002 are even more restrictive in fact, the savings that are occurring where the reverse is true—that is than this year’s limit. The spending at the national governmental level where CBO’s spending is lower than the cap for 2000 was set in 1997 at $579 bil- that are providing most of the savings Office of Management and Budget— lion. We are probably going to spend in which are available in our economy. they said: Use the Congressional Budg- excess of $610 billion before this session Reducing the Federal debt frees cap- et Office estimate. concludes. We have blown through the ital for use in the private sector. Low- It is a case of trickery: Pick the low- spending cap for this year by some $31 ering the public debt reduces the Fed- est estimate of spending and force that billion. eral Government’s interest costs, free- lower estimate to be the one used to The problem gets worse because in ing scarce resources for other impor- assess whether or not we have eaten fiscal year 2001, we have set ourselves a tant public investments. into the Social Security surplus. The spending limit of $575 billion, $35 bil- The Office of Economic Policy re- analogy would be a business which used lion below what we are spending this ported in August that over the last 7 two sets of books. The difference is year. In the fiscal year 2002, the spend- years, because of the greater fiscal dis- that the business man or woman who ing cap is $569 billion, another $6 bil- cipline that has been practiced at the did that would go to jail. lion below current year spending. national level, we have saved for the No Halloween mask can hide our Given the fact that Congress cannot American taxpayer $189 billion in in- identities as we engage in these trick- pass spending bills within this year’s terest costs—$189 billion which is now or-treat charades. When these limit of $579 billion, it is wholly unreal- available for other constructive public scorekeeping adjustments are added to istic to believe Congress will have even uses, including financing tax relief for the emergency spending listed pre- greater success with the significantly American taxpayers. viously, Congress will have spent the lower—$35 billion next year and $41 bil- Reducing the Federal debt also has a entire amount of its current revenue, lion 2 years out—limits than we have positive effect on individual American the entire amount of its on-budget sur- today. Spending above those limits will families. When the Federal Govern- plus, and will have spent at least $20 further threaten the Social Security ment decreases its borrowing, it results billion of Social Security surplus for surplus. in greater availability of capital for all fiscal year 2000. In fiscal year 2000, we will spend all other borrowers. The same Office of The trickery does not end there. An- of the tax revenue we collect, we will Economic Policy estimates that a typ- other bit of trickery is directed at ad- spend all of the on-budget surplus, and ical American family with a $100,000

VerDate 29-OCT-99 03:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.098 pfrm13 PsN: S04PT1 S13920 CONGRESSIONAL RECORD — SENATE November 4, 1999 mortgage on their home will save cash obtained from redeeming those as- few days in an effort to win support for about $2,000 a year in mortgage pay- sets will be used to pay benefits when bipartisan legislation to secure pre- ments if interest rates are reduced 2 the baby boom generation retires. scription drug coverage for the Na- percent as a result of the Federal Gov- The Social Security surplus can tion’s older people. As part of that ef- ernment’s more austere fiscal policy. lower the debt held by the public by $2 fort, I have been urging seniors, as this So saving the Social Security surplus trillion if we do not waste it. That $2 poster says, to send in copies of their is important in the economic life of our trillion reduction in debt held by the prescription drug bills to each of us in Nation and for individual American public will serve as a critical cushion the Senate in Washington, DC. families today. It also will be a critical to meet our Social Security obliga- In addition to getting copies from factor in the challenge we are going to tions. seniors of their prescription drug bills, be faced with in the next two decades In summary, we are about to lose a I am now hearing from seniors who are as Social Security begins to meet the great opportunity to address the long- sending me copies of prescriptions they demands of the baby boom generation. term fiscal challenges facing our coun- cannot afford to get filled. This is a Demographic changes taking place in try. Instead of preserving both the on- prescription that was written for an our country will dramatically alter the budget and the Social Security sur- older gentleman at home in Beaverton, Social Security program. An aging pluses for uses in saving Social Secu- OR. He is using 21 prescriptions at this post-World War II generation, declin- rity, Medicare, investing in America, point. He has already spent almost ing birthrates among young- and mid- or returning it to the taxpayers in the $1,700 this year on his prescriptions. dle-aged adult Americans, and increas- form of tax relief, Congress is frittering Here we have three he cannot afford to ing life expectancies will quickly de- the money away. get filled: Glucophage is a drug that plete the assets which are currently ac- We have spent the fiscal year 2000 on- one takes to deal with diabetes; cumulating in the Social Security budget surplus, and we have spent at Tagamet; Prilosec—three very common trust fund. least $20 billion of this year’s Social prescriptions older people in our coun- By law, surpluses generated by Social Security surplus. The outlook for 2001 try need and use. This is an example of Security may only be invested in U.S. and 2002 is not any better. We should what he sent me, prescriptions his doc- Government or U.S. Government- stop these actions now, pay for the tor wrote out, and he can no longer af- backed securities. The Social Security spending we enact, and avoid the use of ford to actually get them filled. surpluses being generated today were accounting gimmicks. This is the kind of account I am planned as part of the changes made to We stand at a unique point in his- hearing from seniors across the coun- the program in 1977 and then in 1983. tory. Two months from now, we will try. We have asked them to send in The surpluses were created for the ex- move into a new century and, indeed, a copies of their prescription drug bills. I press purpose of prefunding the retire- new millennium. Instead of taking a have a whole sheaf of those, all kinds ment benefits of the baby boom genera- ‘‘get the appropriations bills done and of bills we are receiving in that area. tion. It is much like the biblical prin- get out of here approach,’’ we should But now we are actually hearing from ciple of saving during 7 good years to direct our sights to larger goals. We seniors and getting copies of their pre- prepare for 7 lean years. should be prepared to act boldly. We scriptions their physicians are writing Mr. President, I ask unanimous con- can seize upon this opportunity pro- for them that they cannot even take to sent for an additional 5 minutes to vided for us by a strong economy and a drugstore and get filled. complete my remarks. an improved financial state of affairs In the last 24 hours, we in the Senate The PRESIDING OFFICER. Is there and embark on a fiscal agenda that will have been watching the news reports objection? pay rich dividends for decades to come. about the dueling press conferences in- Without objection, it is so ordered. Our predecessors, at the beginning of volving prescriptions. There has been Mr. GRAHAM. I thank the Chair and the 19th and 20th centuries, faced simi- an awful lot of finger pointing one way my colleagues. lar opportunities and challenges. Each or another. Frankly, each one of them Under current projections, these sur- chose the bold approach. The Louisiana has some reasonable points to make. pluses will reverse in the year 2014 Purchase in 1803 and the building of the What is so frustrating is that instead when the baby boom generation begins Panama Canal in 1904 were emblematic of these dueling press conferences and to retire. Their demand for retirement of a proud, vigorous, bold new nation going back and forth, having all this benefits will outpace the revenue col- at the beginning of a new century. Al- finger pointing, the Senate ought to be lected from payroll taxes after the year though controversial in their day, the working on bipartisan legislation. 2014. These shortfalls will require that Louisiana Purchase and the building of There is one bipartisan bill now be- the assets, the Federal Government’s the Panama Canal are examples of cou- fore the Senate. It is the Snowe-Wyden securities which have been accumu- rageous endeavors that have stood the legislation. The Senator from Maine lated by the Social Security trust fund, test of time. and I have teamed up over the last few be redeemed. The question facing this Congress is months to put together a bipartisan In essence, the Social Security trust whether we will live up to the example bill to get prescription drugs covered fund, with a large pile of several tril- of the 19th century and the 20th cen- for older people on Medicare. We have lion dollars’ worth of Federal securi- tury as we commence the 21st century 54 Members of the Senate already on ties, will now be going to the Federal or whether we will squat in the narrow, record as voting for a specific plan to Treasury and saying: We are going to visionless box built for parliamentary fund this program. A majority of the turn these pieces of paper back to you, pygmies. Will we validate Proverbs Senate is now on record for a bipar- and we need the cash they represent in 19:18, wherein it says: ‘‘Where there is tisan proposal to pay for prescriptions. order to meet the current obligations no vision, the people perish’’? Here we are, with the session only to Social Security beneficiaries. Thank you, Mr. President. having a few more days to go, Sen- The most effective way to plan for Mr. WYDEN addressed the Chair. ators—I am sure I am not the only the demands that will be created by The PRESIDING OFFICER. The Sen- one—getting copies from seniors of pre- the baby boomers’ retirement is to uti- ator from Oregon. scriptions that they cannot actually lize the current Social Security sur- Mr. WYDEN. Mr. President, I ask afford to have filled. We have asked pluses in a very thoughtful and prudent unanimous consent to speak for up to them in recent days to send us copies manner, in a manner to reduce that 15 minutes as in morning business. of their prescription drug bills. They portion of the national debt which is The PRESIDING OFFICER. Without have been doing that. Now they are held by the public. objection, it is so ordered. sending us copies of prescriptions they Lowering our outstanding debt today f cannot afford to take to their neigh- will put the United States in a much borhood pharmacy and get covered. stronger financial position should we PRESCRIPTION DRUG COVERAGE It is so sad to see these dueling press need to borrow funds to redeem the FOR SENIORS conferences, and then we don’t have a U.S. Treasury securities currently held Mr. WYDEN. Mr. President, I have response, to have seniors telling us the by the Social Security trust fund. The been coming to the floor over the last sad and often tragic stories about how

VerDate 29-OCT-99 04:22 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.100 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13921 they can’t afford to take their medi- question of political will. Can we set We shared fond memories of our cine. Their doctor tells them to take aside some of the partisanship on this friend and spoke of his many contribu- three pills. They don’t do that. They health care issue, some of the bick- tions to transportation safety. Sec- start taking two. They start taking ering that has gone on back and forth? retary Slater worked closely with one. Eventually they get much sicker. I believe the Snowe-Wyden legisla- Chairman Chafee on transportation The Snowe-Wyden legislation is bition—a majority of the Senate has al- issues that came before the Committee partisan. It uses marketplace forces. ready voted for in terms of its funding on Environment and Public Works. We don’t have a Federal price control plan—is the way to go. But I know col- I ask unanimous consent to print in regime. We don’t have a one-size-fits- leagues have other ideas. the RECORD the remarks made last all health care policy. We have the What we ought to do is resolve to week by Transportation Secretary kind of approach that works for Mem- deal with this issue in a bipartisan Rodney Slater on the passing of our bers of Congress and their families. way. I hope seniors will continue to colleagues, Senator John Chafee. Our bill, called SPICE, the Senior send us copies of their prescription There being no objection, the mate- Prescription Insurance Coverage Eq- drug bills, as the poster says, to their rial was ordered to be printed in the uity Act, is a senior citizens version of Senator in Washington, DC. RECORD, as follows: the kind of health plan that Members I hope in the days ahead we won’t see STATEMENT OF U.S. TRANSPORTATION SEC- of Congress have. We incorporated rec- a whole lot more of these tragedies RETARY RODNEY E. SLATER ON THE PASSING ommendations from consumer groups. such as the one I have cited today. It is OF SENATOR JOHN CHAFEE Families USA, for example, has made one thing for a senior to send in their We are deeply saddened by the death of some excellent recommendations on bills and say, I am having difficulty Senator John Chafee. He served the people of consumer protections that older people paying for this; I hope you will cover Rhode Island and of this nation long and need. it. But it is quite another for a senior well, and leaves a legacy of accomplishment We have also listened to the insur- citizen to send me, as this older person that will endure for generations. ance sector and the pharmaceutical As chairman of the Senate Environment did from Beaverton, a copy of his pre- and Public Works Committee, Sen. Chafee sector, making sure there would be scriptions saying—it says it right down realized that the highway system is more adequate incentives for research and in the margin—‘‘can’t afford to get than concrete, asphalt and steel, and was an the initiatives that are underway to filled.’’ Prescriptions his doctor or- early champion of a safer, more balanced, help us find a cure for Alzheimer’s and dered, in effect the prescriptions go un- environmentally sensitive transportation all of the illnesses that are so tragic, filled. These are important medicines. system. As a key author of the ground- for which every Member of the Senate If you don’t take Glucophage and you breaking Intermodal Surface Transportation wants to see a cure. have diabetes, you can have some very Efficiency Act of 1991, he possessed a vision of how much better and stronger our surface I will keep coming to the floor. I serious health problems. want to cite a couple more examples transportation system could be. He then I am hopeful the Senate will look to worked tirelessly to preserve and build on before we wrap up. I know other col- get beyond the dueling press con- those gains in the 1998 Transportation Eq- leagues want to speak. ferences, look beyond some of the uity Act for the 21st Century. He cared deep- I heard recently from a senior citizen issues that have surrounded this dis- ly about health care, and fought hard for in Forest Grove that in recent months cussion in a partisan way and say: We critical highway safety improvements and she spent almost $1,500 on her prescrip- are going to come together and go to against drunk and drugged driving. tion drugs. Another older person from bat for seniors and their families. It is Sen. Chafee was responsible for the cre- the Portland metropolitan area re- time to do it. ation of the Congestion Mitigation and Air ported that in a few months, she spent Quality Improvement Program and transpor- I intend to keep coming back to the tation enhancement activities. He insisted over $600 for her medications. She is floor until we secure this coverage. It that the highway system not be looked at now taking more than seven medica- was important for seniors back in the alone, but rather as a comprehensive net- tions on an ongoing basis. days when I was director of the Gray work which includes trains, planes, buses, Very often the families have to go Panthers. It is even more important ferries, bicycles and pedestrain paths. out and try to find free samples to now because these drugs can help us to Sen. Chafee also was a protector of our ma- compensate for some of the drugs the save bigger health care bills down the rine environment, playing a major role in older people can’t afford. Families have road. I will be back on the floor contin- the passage of legislation to prevent oil spills and prohibit ocean dumping. He also to chip in when it is hard for them to ually calling for a bipartisan approach afford medicine. They are all asking, is was instrumental in the passage of the 1990 to this issue, one that uses market- Clean Air Act. He always worked in a bipar- the Senate going to just bicker about place forces to deal with the challenge tisan manner with President Clinton and this issue or is the Senate going to of health care costs. this administration in order to get things come together in a bipartisan way and I yield the floor. done. actually do something about these The PRESIDING OFFICER. The Sen- Here at the U.S. Department of Transpor- problems? We have more than 20 per- ator from Minnesota. tation, we will work to carry forward his leg- cent of the Nation’s older people spend- Mr. GRAMS. Mr. President, I ask acy as we continue to build the transpor- ing over $1,000 a year out of pocket on unanimous consent to speak for up to tation system of the next century. their medicine. 15 minutes as in morning business. f I am very often asked: Can this Na- The PRESIDING OFFICER. Without OMBUDSMAN REAUTHORIZATION tion afford to cover prescription drugs? objection, it is so ordered. ACT OF 1999 My response is, we cannot afford not to (The remarks of Mr. GRAMS per- cover these prescriptions. As I have taining to the introduction of S. 1860 Mr. ALLARD. Mr. President, in the cited several times during these pres- are located in today’s RECORD under Summer of 1998, I met with a group of entations, a lot of these drugs help us ‘‘Statements on Introduced Bills and concerned citizens from the Overland to hold down costs. They help us to Joint Resolutions.’’) Park neighborhood, which is located in deal with blood pressure and choles- f southwest Denver. The dozen or so resi- terol. The anticoagulant drugs are ab- dents had requested a meeting with me solutely key to preventing strokes. I REMARKS BY U.S. TRANSPOR- to discuss an issue that had taken up cited an example of one important TATION SECRETARY RODNEY more than six years of their lives and anticoagulant drug where for $1,000 a SLATER ON THE PASSING OF had driven them to distrust anything year, in terms of the cost to the senior, SENATOR JOHN CHAFEE the Environmental Protection Agency they are able to save $100,000 in ex- Mr. WARNER. Mr. President, today, had told them about a Superfund site penses that they would incur if they as we gather together to witness LIN- located in their neighborhood called suffered a debilitating stroke when COLN CHAFEE take the oath of office to Shattuck. they couldn’t get these medicines. serve as the Senator from Rhode Is- The story surrounding the Shattuck It is absolutely essential that we se- land, I am reminded of my conversa- Superfund site and what the EPA did cure this coverage for the Nation’s tion last week with Transportation to this community will have a lasting older people. It seems to me now a Secretary Rodney Slater. impact not only on the residents of the

VerDate 29-OCT-99 05:24 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.102 pfrm12 PsN: S04PT1 S13922 CONGRESSIONAL RECORD — SENATE November 4, 1999 Overland Park neighborhood, but on investigation brought integrity back demand for national action. For example, in each and everyone of us who look for into the process. the 60’s and early 70’s, many in our nation the EPA to be the guardian of our na- The EPA’s efforts to curtail the Om- were disturbed about the foul condition of tion’s environmental health and safety. our natural waters—our lakes, streams, and budsman’s independence is an attempt rivers—where fish could no longer survive For those who have not followed the to seek revenge for the on-going and filth was obvious to all who would look. Shattuck case, these are the facts that Shattuck investigation and to intimi- There were those who said a national re- have been uncovered thus far. In 1991, date citizens who dare question the an- sponse was required, but other demands on the local Region 8 EPA office and the swers they are given by the EPA. I the federal treasury took precedence. Until Colorado Department of Health began have recently introduced Senate Bill one day the Cuyahoga River in Cleveland, to look at possible remedies for the 1763, the ‘‘Ombudsman Reauthorization polluted with oil and grease, caught fire. cleanup of the old S.W. Shattuck That’s right—a river burst into flames in Act of 1999,’’ which will preserve the of- 1969. Chemical Company located on South fice of the National Ombudsman. The That was the final indignity—that was Bannock Street in Denver. Initially, it battle to enact this legislation could be what brought about the Clean Water Act of was determined that the safest and tougher than getting the EPA to admit 1972. This led to an eventual expenditure of most effective cleanup was removal of they made a mistake at Shattuck. $70 billion by the federal government for waste water treatment plants and an even the radioactive waste to a registered f storage facility in Utah. But following greater outlay by private industry and local a secret meeting between Shattuck’s THE VERY BAD DEBT BOXSCORE communities to comply with new discharge standards. attorneys, EPA and the Colorado De- Mr. HELMS. Mr. President, at the A desperate call for national action to pre- partment of Health the decision was close of business yesterday, Wednes- serve the historically and architecturally made to store the waste on-site. Resi- day, November 3, 1999, the Federal debt important buildings across our land was dents in the area were never told that stood at $5,654,990,773,682.18 (Five tril- heard in 1963. Out of a single event—the de- the remedy chosen by the EPA had lion, six hundred fifty-four billion, nine struction of magnificent Penn Station in New York City—arose a national outcry. never been used before anywhere in the hundred ninety million, seven hundred United States, and more importantly Modeled in part after the Baths of seventy-three thousand, six hundred Caracalla, Penn Station was an awe inspir- documents calling into question the re- eighty-two dollars and eighteen cents). ing building the likes of which will never liability of the remedy were kept from One year ago, November 3, 1998, the again be built. the public. In 1993, the EPA signed the Federal debt stood at $5,553,893,000,000 A line from an editorial in the New York Record of Decision (ROD) and the ra- (Five trillion, five hundred fifty-three Times, published soon after the commence- dioactive waste at the Shattuck Super- billion, eight hundred ninety-three ment of the station’s demolition, expressed the sentiment of the day. It read: fund site was entombed on-site. million). Over the next five years the citizens ‘‘We will probably be judged not by the Five years ago, November 3, 1994, the monuments we build but by those we have of Overland Park fought to get their Federal debt stood at $4,723,729,000,000 destroyed.’’ neighborhood back. They petitioned (Four trillion, seven hundred twenty- Fortunately, there was in existence an or- the EPA for a review of the decision three billion, seven hundred twenty- ganization—The National Trust for Historic and were denied. They attempted to nine million). Preservation—that was trying to sound the submit new information about the safe- alarm to our nation that we must save the Ten years ago, November 3, 1989, the Penn Stations and other grand buildings. ty of the remedy selected and were told Federal debt stood at $2,864,340,000,000 by the EPA the remedy was safe. Fi- And that organization is doing a superb job (Two trillion, eight hundred sixty-four and we are fortunate it exists on this, its nally, last summer the residents con- billion, three hundred forty million) 50th birthday. cerns were brought to my attention. which reflects a doubling of the debt— There are three points I’d like to leave After meeting with area residents and an increase of almost $3 trillion— with you today. They are: business owners, I determined their First, as supporters of the National Trust, $2,790,650,773,682.18 (Two trillion, seven you are engaged in extremely important questions deserved answers and to- hundred ninety billion, six hundred gether we began a journey to find the work for our country. fifty million, seven hundred seventy- Second, you are on the cutting edge of the truth about Shattuck. three thousand, six hundred eighty-two environmental movement. Last October, I asked the EPA to dollars and eighteen cents) during the Third, some suggestions I have that could meet with the community to answer past 10 years. make your efforts even more effective. their questions and was informed they Let me exemplify point one. You are en- would not conduct such a public meet- f gaged—as supporters of the National Trust for Historic Preservation—in work that is ing. Outraged by their answer, I exer- JOHN H. CHAFEE cised my right as a U.S. Senator to extremely important to our country. You are Mr. MOYNIHAN. Mr. President, on preserving what British novelist D.H. Law- hold up Senate confirmation of a key rence once referred to as the ‘‘spirit of EPA official. The move resulted in the the day that his son, LINCOLN, succeeds him in the Senate I would ask to have place.’’ Expressing his anxiety about the EPA agreeing to my request for an quiet exchange of quaint English hamlets for printed in the RECORD what I believe to independent investigation of Shattuck the faceless infrastructure of the industrial by the National Ombudsman. Earlier be John H. Chafee’s last formal ad- age, he wrote: this year he began his investigation dress. It was given at the National Ca- ‘‘Different places on the face of the earth and quickly determined the claims thedral on the occasion of the Fiftieth have different vital effluence, different vi- bration, different chemical exhalation, dif- made by residents were not only meri- Anniversary Celebration of the Na- tional Trust for Historic Preservation. ferent polarity with different stars: call it torious, but that EPA officials had en- what you like. But the spirit of place is a gaged in an effort to keep documents They reflect the great beauty of the man, who loved his country so, and great reality.’’ hidden from the public. All across our land, your actions are pre- In fact, the Ombudsman was so suc- gave so much to it. serving that spirit of place. cessful at uncovering the facts sur- I ask unanimous consent the address You are doing far more than trying to save rounding Shattuck, his investigation be printed in the RECORD. the Penn Stations of our land. You are fos- has resulted in EPA officials now look- There being no objection, the mate- tering an urban revitalization of whole sections of some of our older cities. By encour- ing at eliminating his office. A meeting rial was ordered to be printed in the RECORD, as follows: aging tax credits for rehabilitation of older was recently held among all ten EPA buildings, by promoting smart-growth initia- regional administrators and staff from REMARKS OF SENATOR JOHN H. CHAFEE FOR tives, and the conservation of open space, EPA Administrator Carol Browner’s of- FIFTIETH ANNIVERSARY CELEBRATION OF you are making whole sections of our older fice to discuss eliminating the Ombuds- THE NATIONAL TRUST FOR HISTORIC PRESER- cities more livable, more attractive to home VATION, OCTOBER 21, 1999 man position. This can not be allowed buyers. to happen! Nor will I allow it to hap- Thank you, Dick, for your generous intro- This all makes such sense. By promoting duction. Secretary Babbitt, Mayor Williams, city dwelling we reduce expenditures on pen. Without the Ombudsman’s inves- Commissioner Peck and friends, it is an brand new roads, sewer pipelines, gas, elec- tigation on Shattuck the residents of honor to join you today. tric, and phone lines, thus assisting our town Overland Park would have never Every so often there occurs an event so and country treasuries. For within historic learned the truth. The Ombudsman’s cataclysmic, so egregious, that it sparks a districts exists the needed infrastructure.

VerDate 29-OCT-99 05:07 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.104 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13923 None of it has to be built—it is already in Puerto Rico—a court house that had fallen veloped land. In addition, the city council in place because of the past exodus of residents. into disrepair. It was a shambles, and there Rockville, Maryland approved a six-month Washington, DC is typical of our older cities was a movement underway to abandon the development moratorium on single-use retail where the population has gone from 800,000 structure in favor of constructing a new one stores of 60,000 square feet or more. in 1950 to 540,000 today—a 32 percent drop. in the suburbs. But the building’s historic There are many ways that we can encour- And, there are tremendous economic bene- significance coupled with such architectural age historic preservation at the federal level. fits to what you are doing. Studies have flourishes as a beautiful two-story loggia But absent your cooperation, none of the shown that dollar for dollar, historic preser- overlooking the harbor, warranted its preser- preservation work would get done. So the vation is one of the highest job-generating vation. rest is up to all of you. And I trust that you economic development options available. In Thanks to the General Services Adminis- will carry out these initiatives with purpose other words, one million dollars spent on re- tration’s preservation efforts, and a $35 mil- and enthusiasm. Do what you can to recruit habilitation creates more permanent jobs, lion restoration, this beautiful courthouse others to join your ranks. does more for retail sales, and does more for has been saved and will be dedicated next Naysayers may ask: What difference does family incomes in a community than a like spring. saving one train station or post office truly amount spent on new construction. The restoration of the Courthouse should make in the future of America? My response Because of efforts of the members of the spur a renaissance in San Juan’s historic is this: preservation is not just about con- National Trust over the years, and the lead- quarter. Lawyers doing business at court serving brick and mortar, lintel and beam. It ership it has given, my state is a microcosm will frequent nearby restaurants and shops. is about the quality of life, and the possi- of what is taking place across our nation. Hotels and other businesses may spring up as bility of a bright future. Carl Sandburg ex- Many of our magnificent marble palaces in more people visit the area. pressed the danger of losing touch with our Newport were saved from being subdivided We can create incentives in the tax code to past when he said: into a series of apartments and instead were promote restoration. As many of you know, ‘‘If America forgets where she came from, preserved as originally built. Now, they are those who restore historic buildings for com- if people lose sight of what brought them by far the largest tourist attractions in our mercial purposes re already eligible for tax along, . . . then will begin the rot and dis- state, and extremely important to the econ- credits. Since these provisions have been in solution.’’ omy of Newport. place, $18 billion dollars have been generated Who could say it better! Likewise, historic districts are flourishing in private investment. You should be proud On behalf of the city of Providence and and home owners are eager to buy turn of of these numbers, for they didn’t happen of Rhode Island, we look forward to sharing our the century homes that were so soundly their own accord. They came about with the historic treasures with you during your 2001 built. constant inspiration and guidance from the conference. Keep up the good work. Thank This didn’t just happen. It came about National Trust. you. with the consent inspiration and guidance I have long hoped to extend these credits f from the National Trust. to homeowners through legislation called Let me move to point two. You are on the the Historic Homeownership Act. It would THE AFRICAN GROWTH AND cutting edge of the environmental move- allow homeowners who rehabilitate homes in OPPORTUNITY ACT ment. historic areas to take a tax credit equal to 20 Mr. LEAHY. Mr. President, yester- Why do I say that? If we can be successful percent of the project’s cost. This credit day the Senate voted on a modest in enticing a goodly portion of our citizens could be used toward one’s tax liability or in package of trade bills which included to live within our cities, we have helped the form of a mortgage credit certificate. Be- the African Growth and Opportunity stanch the flow of what we’ve come to know cause of this flexibility, these provisions as urban sprawl. We are losing our farmland would be attractive to low and middle in- Act and the Caribbean Basin Trade En- at a frightening rate—two acres every come homeowners, not just those in the top hancement Act. As a long time sup- minute of every day, according to estimates tax brackets. porter of expanding trade opportunities of the American Farmland Trust. There has been overwhelming support for for Vermonters and all Americans, as There is no question that every new home this legislation across the political spec- well as people in developing countries, that is built in our suburbs or every new trum. Earlier this year, we enacted a version I reluctantly cast my vote against this housing development that is created, affects of it as part of the tax bill approved by Con- bill. some creature’s habitat. I have long held gress. That was the bill the President subse- Exports are a key component of that if we give nature half a chance, it will quently vetoed. The prospects for enacting rebound. But we must give it that half a that homeownership tax credit bill this year Vermont’s economy. As a small state, chance. Regrettably, in too few areas are we are dim. Hopefully, next year we can do it. we must promote our products beyond doing that. The National Trust is at the fore- Before I go, I want to get this done! You can the Green Mountains. Vermonters are front of environmental action by making our help by pestering your Senators and Rep- reaping the benefits of more open mar- cities more attractive, thus reducing the resentatives to support the Historic Home- kets around the world and these mar- paving and development of our countryside. ownership Act. kets are creating new jobs here at Few environmental challenges equal that Another major way you can lend a hand is home. Not long ago, I led a Vermont of global warming, and the principal culprit by giving vocal support to efforts states, trade delegation to Ireland which has in that area is the automobile. If people re- counties, and towns are making to preserve main within cities, there are indeed fewer open spaces. If the land is going to be saved, one of the fastest growing economies in autos on the road, which means less pollu- then homes are not going to be built there. Europe. tion, less global warming. Clearly, open space conservation and his- Having said that, trade is about more Now for point three: some suggestions to toric preservation go hand in hand. In fact, than financial statistics. It is about make your efforts even more effective. Senator Joe Lieberman and I are pressing for more than increasing market opportu- Do all you can to make the federal govern- legislation that would accomplish both nities for American products, as impor- ment a leader in historic preservation. When goals. It is called the Natural Resources Re- tant and laudable a goal as that is. In we do something really good, cheer us on. investment Act. It would fully fund the His- our increasingly inter-connected world, For example, we can all be delighted and en- toric Preservation Fund at 150 million dol- couraged by the inclusion of large sums of lars per year and encourage states to set trade involves a broad range of issues money in transportation legislation for so- aside open space. While we may be address- and concerns. As the wealthiest nation, called enhancements. These substantial ing these concerns at the federal level, the we also have a responsibility to do moneys can be used, among other things, to time is ripe to promote ballot initiatives in what we can to ensure that the benefits restore historic buildings. Senator Pat Moy- your own towns and counties. of the global economy are enjoyed by nihan deserves the principal credit for the Last year, voters approved the vast major- people from every walk of life, here and Enhancement Program, which we first did in ity of the 200 ballot initiatives for open space abroad. And when we vote, we have a the 1991 Highway Bill and continued in the purchases to curb urban sprawl at state and responsibility to ensure that legisla- 1998 Transportation Bill known as TEA–21. local levels. This was a radical departure from previous With such wide-ranging support, evidently tion entitled the ‘‘African Growth and highway bills and Senator Moynihan de- these measures are not just the province of Opportunity Act’’, actually benefits Af- serves tremendous credit. the elite. No, the rich and poor alike support rican workers and protects their fami- We in the federal government can also lead them, because they benefit everyone. lies’ health and welfare, and the nat- by example by restoring post offices and One of the biggest successes occurred in ural environment. The bill that was courthouses rather than abandoning them New Jersey where voters, in 1998, set aside passed yesterday will not do that. and moving their activities to the suburbs. $98 million to buy open space. I have felt for some time that our re- Let me give you an example of a court- And, just last week, two local anti-sprawl house we managed to save that was histori- initiatives made news in the Washington lationship with Africa needs to change. cally and architecturally important. Almost area. In Montgomery County, planners pro- It cannot continue to be based almost a decade ago, I visited the traditional home posed to spend $100 million over the next dec- exclusively on aid, when the real en- of the federal judiciary in Old San Juan, ade to preserve historic properties and unde- gine of development, as we have seen

VerDate 29-OCT-99 05:24 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.034 pfrm12 PsN: S04PT1 S13924 CONGRESSIONAL RECORD — SENATE November 4, 1999 elsewhere in the world, is investment to redefine our relationship with Africa History will acknowledge him as the uni- and trade. However, in developing a from one of dependency to one which fier of the City of David—the Chief of Staff trade policy toward Africa—where pov- begins to promotes economic growth whose armies breached the barbed wire and erty is deeply rooted and protections and self-reliance. This is long overdue, removed the cinder blocks that has sundered the city of peace. for the environment and the rights of and the opportunity to address these History will honor him as the magnani- workers are virtually non-existent— issues is not likely to come again soon. mous leader of a brave people—brave enough precautions must be taken to ensure I had hoped that when the African to fight against daunting odds—perhaps even that it is a sound policy that responds Growth and Opportunity Act reached braver still to make peace. to Africa’s unique and urgent needs. the floor it would have provided for ex- History will remember him as the last of It used to be that workers’ rights and panded export opportunities for both the generation of founders—the intrepid chil- environmental concerns were treated Africans and Americans while pro- dren of a two thousand year dream. Almost separately from trade considerations, tecting African workers and the envi- certainly, the last Israeli Prime Minister to play a leading role in the War for Independ- or not at all. Fortunately, that has ronment. begun to change. One of the reasons I ence, he was also the first—and to this day Many of my concerns about the Afri- the only—Prime Minister to be born in the voted for NAFTA was because it con- can Growth and Opportunity Act, also Holy Land. tained side agreements on labor and hold true for the Caribbean Basin He is a proud son of Jerusalem. As a young environmental issues. Trade Enhancement Act. I fully sup- man he dreamed of a career as an engineer. However, while those agreements port efforts to expand U.S. trade with But destiny had other plans and he fought were a step forward, time has shown Caribbean Basin countries and to pro- and led for almost half a century so that his that they did not go far enough. Unfor- vide these countries with trade benefits people could live in peace and security. tunately, even the modest labor and that will help them compete in the Nobel Laureate, statesman, military hero, friend of our nation where he served with environmental agreements that we global economy. However, again, it is fought hard to include in NAFTA were distinction as an ambassador in this very vitally important that the trade bene- city, he honors us today by joining us in our not included in the African Growth and fits included in this Act actually ben- festivities—the Prime Minister of Israel, the Opportunity Act and virtually every efit those who often need them the Honorable Yitzhak Rabin. amendment to add similar provisions most—workers and their families. Vir- f was defeated. Such a step backward tually every amendment that would makes absolutely no sense. have required Caribbean companies to AMENDMENT TO REQUIRE A WTO The African Growth and Opportunity institute fair and enforceable labor MINISTERIAL REPORT Act’s provision on workers’ rights, standards before they could be eligible Mr. BYRD. Mr. President, I am which has been included in other trade for trade benefits under the Caribbean pleased that yesterday the Senate legislation, has routinely allowed coun- Basin Trade Enhancement Act was de- adopted my amendment to H.R. 434, tries notorious for abuses to escape feated, and crucial protections were the African and Caribbean trade legis- without penalty. Unions have rightly therefore not included. lation, regarding the upcoming World criticized this provision for being Mr. President, it is disappointing Trade Organization (WTO) Ministerial vague and unenforceable. It is an invi- that given the opportunity to simulta- Conference in Seattle, Washington, tation for exploitation of cheap African neously redefine our relationship with from November 30 to December 3, 1999. labor. Africa, re-examine our trade policy to- My amendment is straightforward. It The African Growth and Opportunity ward the Caribbean Basin and expand expresses the sense of the Congress on Act does not include a single provision international economic opportunities the importance of the new round of related to environmental concerns. for Americans, that the approach and international trade negotiations that Multinational corporations, especially the outcome was so flawed. will be launched at the WTO Ministe- mining and timber companies, have a f rial Conference, and would require the long history of taking advantage of Af- United States Trade Representative rica’s weak environmental laws and FOURTH ANNIVERSARY OF ISRAELI PRIME MINISTER (USTR) to submit a report to Congress contributing to pollution, deforest- regarding discussions at the Ministe- ation and the uprooting of people. If YITZHAK RABIN’S ASSASSINA- TION rial on antidumping and countervailing barriers to foreign investment are low- duty agreements. My amendment sends ered or eliminated—as the Act calls Mr. MOYNIHAN. Mr. President, a message from the Congress that these for—and meaningful, enforceable envi- Today is the fourth anniversary of the talks are significant and that we will ronmental protections are not put in assassination of Israeli Prime Minister be examining these discussions closely. place, these problems will only get Yitzhak Rabin. On October 25, 1995, ten Specifically, it sends a message to our worse. days before his assassination, Prime Like the NAFTA debate, however, trading partners that we have no inten- Minister Rabin spoke in the Rotunda of tion of allowing the antidumping and the rhetoric on both sides of this issue the capitol at a ceremony celebrating was overblown. The African Growth countervailing duty agreements to be the passage of the Jerusalem Embassy nonchalantly relinquished, and that we and Opportunity Act is not, as some of Act of 1995. The honor of introducing its supporters claimed, an historic step will be keeping an official record of him fell to me. I said, ‘‘History will any discussions on these topics. toward integrating Africa into the honor him as the magnanimous leader global economy. At best, this Act will I am strongly opposed to opening the of a brave people—brave enough to antidumping and countervailing duty have a modest impact. It simply offers fight daunting odds—perhaps even limited market access to African coun- agreements to negotiation, and, there- braver still to make peace.’’ Four years fore, I am very pleased that the Admin- tries under the Generalized System of later as Israel and the Palestinians pre- Preferences and establishes a U.S.-Afri- istration reports that it will put forth pare to begin final status negotiations, a U.S. trade agenda that reaffirms can trade and economic forum. I think it appropriate to remember the On the other hand, the African trade remedy laws, and, specifically, man who helped lead his people down U.S. rights to enforce antidumping and Growth and Opportunity Act will not, this road to peace. I ask unanimous as some of its opponents claimed, force countervailing duty measures. Never- consent to have printed in the RECORD African countries to cut spending on theless, we should expect that certain my remarks on that occasion. WTO member governments will at- education and health care, and to ad- There being no objection, the re- tempt to weaken the current anti- here to stringent International Mone- marks were ordered to be printed in dumping and countervailing rules dur- tary Fund conditions. It rewards Afri- the RECORD, as follows: can countries that are taking steps to- ing the next round of talks. Certain REMARKS OF SENATOR DANIEL PATRICK MOY- WTO member governments will likely ward economic and political reforms, NIHAN ON THE PASSAGE OF THE JERUSALEM as most African countries are already EMBASSY ACT OF 1995, UNITED STATES CAP- attempt to use the antidumping and doing, but it does not force them to do ITOL ROTUNDA, OCTOBER 25, 1995 countervailing rules as leverage anything. My pleasant and most appropriate task against other U.S. priority issues, thus, In all my time in the Senate, this is this afternoon is to introduce one of Jerusa- pitting U.S. industries against one an- the first attempt that has been made lem’s most illustrious sons. other.

VerDate 29-OCT-99 05:07 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.037 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13925 Without the antidumping and coun- to. We need to get agreements. In fact, Mr. LOTT. Mr. President, if I could tervailing duty agreements, I believe we must get an agreement on the FAA respond to the Senator from Louisiana, that many of our trading partners reauthorization bill. We are very close I apologize for not directing my atten- would not hesitate to flatly dismiss to getting an agreement on the sat- tion to her question. I was visiting their WTO obligations in order to ellite conference report. We are very with the Senator from Maryland with maximize their own profits. Anti- close on the work incentives con- respect to possible votes tomorrow. dumping and countervailing duty rules ference report. The Interior appropriations con- offset foreign countervailable subsidies There are three or four major conference report is being worked on while and below-cost pricing schemes inferences that are very close to being negotiations have been going forward tended to harm a U.S. industry. Pro- completed. When they are completed, on the foreign operations appropria- hibiting these unfair trade practices is we will take them up as soon as pos- tions conference report. I have infor- the essence of our most basic trade sible. mation that real progress has been agenda, and laws to thwart and penal- In addition, if agreements are made today on the foreign operations ize this behavior were enacted as early reached on appropriations bills, of appropriations report, but they will as 1897. As in 1897, antidumping and course, we would set everything aside not get to the point of wrapping up In- countervailing measures are a vital for that. It seems to me that District terior until the foreign operations bill tool to combat unfair trade. of Columbia and perhaps the foreign re- is done. My amendment would help the Ad- lations conference reports could be I know the Senator from Louisiana ministration put forth a U.S. trade ready as early as tomorrow. Certainly, has a real interest in that Interior bill, agenda at the Seattle talks that reaf- if they are, we will vote on them. particularly provisions that could af- firms U.S. rights to enforce anti- The Senate hopefully also will reach, fect coastal areas such as hers and dumping and countervailing duty in just a very few minutes, an agree- mine. Oil and gas revenues have been measures, and that protects these ment on how to proceed on the bank- going in the Land and Water Conserva- codes from any negotiation. Under- ruptcy bill. Senator DASCHLE and I tion Fund for years and to lands out mining the right of the U.S. to respond have been working on this for weeks west, which is well and good. However, to unfair trade practices will hinder actually. I think we are very close to we take the risks in our area and we the ability of many U.S. manufactur- having an agreement. We are exchang- have not been getting any money. I ers, including U.S. steel mills, to fight ing amendments so each side will know don’t think that is fair. We have beach against unfair trade. It would also un- what is in our amendments both to- erosion problems; we have estuary re- dermine a century of work to build a night and again tomorrow by noon. I plenishment with which we need to straightforward and responsive inter- hope Members who have relevant deal. I am very sympathetic to the con- national trade system. amendments on the underlying bank- cerns of the Senator from Louisiana. The PRESIDING OFFICER. The ma- ruptcy bill will come to the floor and No final agreement has been reached jority leader. offer them yet today. on Interior. The Senator still has time f We are in what I hope are the final to weigh in mightily with the Senators days of the session. Members must be involved, and the administration, and MAKING FURTHER CONTINUING willing to work into the night in order needs to talk to them. I know the Sen- APPROPRIATIONS FOR THE FIS- to complete this legislation. I know ator has Senator DASCHLE working fe- CAL YEAR 2000 there are some relevant amendments verishly in her behalf. Mr. LOTT. Mr. President, I ask unan- that are controversial and they will Ms. LANDRIEU. If I could respond, imous consent that the Senate now have second-degree amendments. Mem- both have been very helpful and sup- proceed to the consideration of H.J. bers should come to the floor and offer portive as we worked toward a bipar- Res. 75, the continuing resolution re- them. tisan compromise on some of these ceived from the House. I further ask Members could also expect votes dur- issues. unanimous consent that the joint reso- ing tomorrow’s session. One could I particularly thank the majority lution be read a third time, passed, and come with regard to appropriations. We leader for his efforts as a cosponsor of the motion to reconsider be laid upon could have votes on amendments with one particular piece of legislation, but the table. regard to the bankruptcy bill. there have been different versions filed. This has been cleared with the Demo- Members should expect that on Mon- However, there is a tremendous cratic leader. day there will be recorded votes begin- amount of interest. The PRESIDING OFFICER. Without ning at 5:30. Perhaps I should ask Senator GOR- objection, it is so ordered. Also, votes will be ordered on the TON—I said I will say this publicly—if The joint resolution (H.J. Res. 75) bankruptcy consent, calling for two tomorrow at his convenience, maybe was read the third time and passed. votes with respect to minimum wage through the majority leader or di- and business cost issues at 10:30 on f rectly, he can give Members some idea Tuesday morning. of some of the things that perhaps are ORDER OF BUSINESS I am announcing that we may have being discussed in terms of riders that Mr. LOTT. Mr. President, the Senate, to have votes tomorrow. We will have were very controversial when this bill then, has just passed the continuing votes at 5:30 Monday. We will have passed, as well as some of the specific resolution to the 10th of November. votes at 10:30 on Tuesday. ways we may be funding some of these We hope within the next few minutes Progress is being made every hour on projects. to be able to enter the agreement on the appropriations process—some hours We want to work out a bipartisan so- more than others. I hope Members will the bankruptcy bill. I yield the floor. lution that is reflective of what many continue being patient while the final Ms. LANDRIEU. Will the majority Members have worked on now for over must-do legislation is completed. leader yield? 2 years. Maybe there could be an appro- I want to say again that I think the The PRESIDING OFFICER. The priate time tomorrow for discussion. last 2 days have been phenomenal when Democratic leader. Senator DASCHLE may have something you stop and look at all the difficulty Mr. DASCHLE. Mr. President, I to add. that was involved—the fact that we defer. I certainly want to be supportive of passed major trade legislation by a Ms. LANDRIEU. Mr. President, does progress we are making on bankruptcy, vote of 75 or 76 to 23 last night, and the majority leader have any informa- but I think there are some other im- today we passed the biggest reform of tion regarding the Interior appropria- portant issues, too, that should be the banking and securities financial tions bill? That is one of the bills that dealt with in the next few days. services industry in several decades is continuing to be negotiated. Mr. DASCHLE. Mr. President, I with 90 votes. It is incredible. Maybe I should wait to get his atten- couldn’t agree more with the distin- We are going to continue to work to tion. guished Senator from Louisiana. This move vital legislation. We have other Will the majority leader yield for a is an important issue. While we need to conferences that we hope to get agreed moment? stay focused on the appropriations bill

VerDate 29-OCT-99 05:07 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.110 pfrm12 PsN: S04PT1 S13926 CONGRESSIONAL RECORD — SENATE November 4, 1999 and on bankruptcy, she has been work- YOUNG of Alaska and GEORGE MILLER of effort this year to fund, for 1 year, ing on this matter for a long, long time California, CHRIS JOHN from Louisiana, these programs that are currently al- and has made great progress. BILLY TAUZIN from Louisiana, a Demo- ready authorized, that have been in ex- I share the view expressed by the ma- crat and Republican respectfully, and istence for many years, to actually put jority leader that this is an issue that Representative UDALL in the House— some money where our mouth is—with- has great impact not only in her region who have worked very hard to come to in the budget caps and the balanced of the country but in regions through- some bipartisan agreements about a budget agreement we have reached—so out the country. I hope we can resolve new way to spend offshore oil and gas we could perhaps build on this year this satisfactorily and she can be satis- revenues in a way that is fair to all the and, over the next several years, fully fied with the final product. I will do all coastal States, particularly those fund the programs I have talked about. I can to work with the majority leader States including Louisiana, Mis- to see that happens in the remaining sissippi, Texas, and Alabama to a cer- I will ask to have printed in the days of this session. tain degree, that produce these off- RECORD today a letter I received from I commend the majority leader for shore oil and gas revenues. Without our 800 individuals and organizations sup- getting the Senate to this point. I States acting as a platform, this indus- porting this initiative. It is signed by think we are very close to reaching an try would not exist. 800 of some of the leading environ- agreement. As I understand, we have Many Members have worked on a bi- mentalists and activists in the country not yet had the opportunity to ex- partisan redirection of some of those today, groups representing all different change amendments, but we will be revenues to come back to the States aspects of the environmental commu- doing that shortly. He and I have both and local governments instead of going nity from the east coast to the west worked with our colleagues to ensure into the Federal Treasury as they do coast, from south to north. They have we can work through this agreement. I now, and as they have been since 1955, submitted a letter to us today sup- think this is a win-win. I think it is an redirecting those revenues back to help porting the efforts I have just articu- opportunity to finish an important the coastal restoration programs, to lated. piece of legislation, an opportunity to help restore our coastlines particularly I ask unanimous consent the letter, deal with some issues that both sides in Louisiana, which is so fragile, and dated November 1, 1999, as well as a think are important. I think it is a the Florida Everglades, which need a table of Federal offshore mineral rev- very appropriate vehicle with which to tremendous amount of help. enue collections for 1989–1999 and In addition, we have the idea these get our work done. I am hopeful we will projects for 1999–2000, be printed in the moneys could be permanently allo- get total cooperation procedurally to RECORD. allow the Senate the opportunity to cated to fully fund the Land and Water finish this work. Conservation Fund which has been There being no objection, the mate- I am fully expecting before the end of funded intermittently—hit and miss— rial was ordered to be printed in the the day we will have an agreement that through the decades. RECORD, as follows: will allow the Senate to go through the We think the American people should NOVEMBER 1, 1999. next couple of days in expectation of have something to count on, so they U.S. Senate/House of Representatives, Washington, DC. finishing this legislation. know every year their Federal Govern- I yield the floor. ment is going to take a very small por- DEAR SENATOR/REPRESENTATIVE: As the Mr. LOTT. I suggest the absence of a tion, but an important portion, of twentieth century draws to a close, Congress quorum. money for land purchases and acquisi- has a rare opportunity to pass landmark leg- tions and conservation easements to islation that would establish a permanent The PRESIDING OFFICER. The and significant source of conservation fund- help expand our park system, both at clerk will call the roll. ing. A number of promising legislative pro- The legislative assistant proceeded the Federal level and to improve our posals would take revenues from non-renew- to call the roll. park system, as well as giving Gov- able offshore oil and gas resources and rein- Ms. LANDRIEU. Mr. President, I ask ernors and mayors and county officials vest them in the protection of renewable re- unanimous consent that the order for the ability to create recreational op- sources such as our wildlife, public lands, the quorum call be rescinded. portunities. As a Governor, Mr. Presi- coasts, oceans, cultural treasures, and out- The PRESIDING OFFICER. Without dent, you know how important that is door recreation. Securing this funding would objection, it is so ordered. to the people of your State and my allow us to build upon the pioneering con- Ms. LANDRIEU. Mr. President, I ask State. They believe strongly in recre- servation tradition that Teddy Roosevelt ini- unanimous consent for 15 minutes to ation and access to the outdoors. tiated at the beginning of the century. speak in morning business. In addition, this bipartisan group be- The vast majority of Americans recognize The PRESIDING OFFICER. Without lieves it can also take a portion of the duty we have to protect and conserve our objection, it is so ordered. those moneys and expand the very suc- rich cultural and natural legacies for future generations. A diverse array of interests, in- f cessful Pittman-Robertson, which is one of the most successful Federal pro- cluding sportsmen and women, conservationists, historic preservationists, outdoor OFFSHORE OIL AND GAS grams, working in partnership with REVENUES recreationalists, the faith community, busi- local outdoors enthusiasts—hunters, ness interests, state and local governments, Ms. LANDRIEU. Mr. President, a few fishermen and women, conservationists and others, support conservation funding minutes ago I posed a few questions to in those areas—and to fully fund his- legislation because they recognize it is es- the majority leader about a very im- toric preservation and urban parks, to sential to fulfill this obligation. portant piece of legislation, an appro- name just a few. It is a very com- We call upon you and your colleagues to priations bill that is still pending. As prehensive approach. It is an innova- seize this unprecedented opportunity. Pass we know, there are several important tive approach. legislation that would make a substantial appropriations measures being debated Although we do not have a bill out of and reliable investment in the conservation and negotiated, and that is the process. either House yet, we do have a great of our nation’s wildlife, public lands, coastal Some of that happens, a lot of it, be- markup that I want to share with the and marine resources, historic and cultural hind closed doors, which is the way it Members, Chairman Young’s markup treasures, urban and rural parks, and open has worked for many, many years and that came out this morning. Their bill, space. Design a bill that provides significant will probably continue to work that which is reflective of some of the conservation benefits, is free of harmfull environmental impacts to our coastal and ocean re- way. things I have said, will be considered sources, and does not unduly hinder land acqui- However, there are some questions I next week. It would be a tremendous sition programs. want to raise or some points I want to accomplishment for this administra- bring up. There are a great number of tion and for this Congress to come to- An historic conservation funding bill is within our grasp. It will be an accomplish- Members—Senators from the South, gether in a bipartisan way to make at ment that all can celebrate. We look to Con- the East, the North, and the West, least a downpayment this year. If we gress to make this legislation a reality. Democrats and Republicans, a great cannot fully fund what I have generally Sincerely, group of House Members, led by DON just described, let us at least make an ——— ———

VerDate 29-OCT-99 05:03 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.112 pfrm07 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13927 Federal Offshore Mineral Revenue I ask unanimous consent those let- Glendening, Maryland; Gov. Howard Collections, Calendar Years 1989–1999 ters be printed in the RECORD. Dean, M.D., Vermont; Gov. Thomas R. There being no objection, the mate- Carper, Delaware; Gov. Christine Todd Year Amount rial was order to be printed in the Whitman, New Jersey; Gov. James B. Hunt, Jr., North Carolina; Gov. Roy E. RECORD, as follows: 1989 ...... $2,915,145,540 Barnes, Georgia; Gov. Jim Hodges, 1990 ...... 3,367,738,819 SEPTEMBER 21, 1999. South Carolina; Gov. Lincoln Almond, 1991 ...... 2,793,166,498 Hon. TRENT LOTT, Rhode Island; Gov. Angel S. King, Jr., 1992 ...... 2,561,405,652 Majority Leader, Maine; Gov. Gary Locke, Washington; 1993 ...... 2,856,913,823 U.S. Senate, Washington, DC. Gov. Argeo Paul Cellucci, Massachu- 1994 ...... 2,915,284,805 Hon. THOMAS DASCHLE, setts. 1995 ...... 2,723,753,949 Minority Leader, Gov. Cecil H. Underwood, West Virginia; 1996 ...... 4,253,641,347 U.S. Senate, Washington, DC. Gov. Marc Racicot, Montana; Gov. Don 1997 ...... 5,259,228,035 Siegelman, Alabama; Gov. Gray Davis, Hon. J. DENNIS HASTERT, 1998 ...... 4,322,637,332 California; Gov. Mel Carnahan, Mis- Speaker of the House, souri; Gov. Benjamin J. Cayetano, Ha- House of Representatives, Washington, DC. Average ...... 3,396,891,580 waii; Gov. Jane Dee Hull, Arizona; Gov. Hon. RICHARD GEPHARDT, Dirk Kempthorne, Idaho; Gov. Tony Projected Federal Offshore Mineral Minority Leader, Knowles, Alaska; Gov. George H. Ryan, Revenue Collections, FY 1999–2005 House of Representatives, Washington, DC. Illinois; Gov. James S. Gilmore III, DEAR SENATORS LOTT AND DASCHLE AND Virginia; Gov. Jeanne Shaheen, New Year Amount REPRESENTATIVES HASTERT AND GEPHARDT: Hampshire; Gov. Bill Graves, Kansas; The 106th Congress has an historic oppor- Gov. George E. Pataki, New York; Gov. 1999 ...... $2,946,000,000 tunity to end this century with a major com- Paul E. Patton, Kentucky; Gov. 2000 ...... 2,584,000,000 mitment to natural resource conservation Tommy G. Thompson, Wisconsin; Gov. 2001 ...... 2,812,000,000 that will benefit future generations. We en- Bill Owens, Colorado. 2002 ...... 2,827,000,000 courage you to approve legislation this year Gov. Mike Huckabee, Arkansas; Gov. 2003 ...... 2,669,000,000 that reinvests a meaningful portion of the Frank Keating, Oklahoma; Gov. Jim 2004 ...... 2,575,000,000 revenues from federal outer continental shelf Geringer, Wyoming; Gov. Edward T. 2005 ...... 2,489,000,000 (OCS) oil and gas development in coastal Schafer, North Dakota; Gov. Frank conservation and impact assistance, open O’Bannon, Indiana; Gov. Kirk Fordice, Average ...... 2,700,285,714 space and farmland preservation, federal, Mississippi; Gov. William J. Janklow, state and local parks and recreation, and Ms. LANDRIEU. Mr. President, basi- South Dakota. cally they are saying there is a way, a wildlife conservation, including endangered better way, to allocate these revenues species prevention, protection and recovery costs. CHAMBER OF COMMERCE OF THE from offshore oil and gas to fund a va- Since outer continental shelf revenues UNITED STATES OF AMERICA, riety of programs that are fair to all come from nonrenewable resources, it makes Washington, DC, September 24, 1999. the different parts of this Nation, one sense to permanently dedicate them to nat- Hon. MARY LANDRIEU, that is environmentally friendly, one ural resource conservation rather than dis- U.S. Senate, Hart Senate Office Building, that focuses on the needs of our coast- persing them for general government pur- Washington, DC. line and also recognizes the proper role poses. Around the nation, citizens have re- peatedly affirmed their support for conserva- DEAR SENATOR LANDRIEU: On behalf of the of Congress in authorizing the pur- U.S. Chamber of Commerce, I am writing in chases of land because that is some- tion through numerous ballot initiatives and state and local legislatioan. We applaud both support of S. 25, the Conservation and Rein- thing that should be done not only by the Senate Energy and Natural Resources vestment Act of 1999. The Chamber has long the administration, whoever the Presi- Committee and the House Resources Com- supported the concept that the federal gov- dent may be, Republican or Demo- mittee for conducting a bipartisan and inclu- ernment should share a portion of revenues crat—whether it is the current Presi- sive process that recognizes the unique role from Outer Continental Shelf (OCS) energy dent, who has been terrific in many of state and local governments in preserving production efforts with the coastal states ways on this issue—but it is something and protecting natural resources. that may be affected by these activities. that must be worked on in conjunction The legislation reported by the Commit- S. 25 recognizes the contribution that with the Members of Congress. tees should, to the maximum extent possible, states make to national fuel production and They have signed a letter that is permanently appropriate these new funds to reducing our nation’s dependence on foreign the states, to be used in partnership with oil. It would direct more monies from leasing going to be distributed. I will have it local governments and non-profit organiza- printed for the RECORD. In addition, I and production activities to those states and tions to implement these various conserva- communities that shoulder the responsi- would like the RECORD to reflect we re- tion initiatives. We urge the Congress to give ceived 2 weeks ago an endorsement bility for energy development along; their state and local governments maximum flexi- coastlines. It would provide local commu- from the National Chamber of Com- bility in determining how to invest these nities with impact assistance funds to ad- funds. In this way, federal funds can be tai- merce. They usually do not get into en- dress infrastructure problems and other pub- lored to complement state plans, priorities vironmental issues such as this, but lic service needs associated with federal off- and resources. State and local governments the Chamber of Commerce realizes, as shore activities. It is a bipartisan conserva- are in the best position to apply these funds businesspeople representing some of tion legislation that would help promote a to necessary and unique conservation efforts, lasting legacy of natural resource steward- the finest businesses in our country, such as preserving species, while providing ship for future generations. that a clean environment, access to for the economic needs of communities. The parks and recreation, improving the legislation should be neutral with regard to The U.S. Chamber of Commerce, the quality of life for Americans every- both existing OCS moratoria and future off- world’s largest business federation rep- where, is the Chamber’s business be- shore development, and should not come at resenting more than three million businesses cause we are about improving the qual- the expense of federally supported state proof every size, sector, and region, applauds ity of life, improving our economy. grams. your efforts to help remedy the disparity be- They see this as an important bill. We recognize that dedicating funds over a tween states and the federal government in It is not that usual to have the envi- number of years to any specific use is a dif- offshore development and looks forward to ficult budgetary decision. Nevertheless, we ronmental community and the business working with you to achieve this important believe that the time is right to make this goal. community together. This is one idea major commitment to conservation along Sincerely, they have both said is terrific; let’s the lines outlined in this letter. R. BRUCE JOSTEN, move forward. We look forward to working with you to Executive Vice President, Finally, for the RECORD, I want to retake advantage of this unique opportunity Government Affairs. submit a letter from 40 Governors—not and are available to help ensure that this 10, not 12, not Democratic Governors, commitment is fiscally responsible. Thank Ms. LANDRIEU. Mr. President, I not Republican Governors. Mr. Presi- you for your consideration of these legisla- come to the floor today to say, as we dent, you were a Governor at one time, tive principles as you proceed to enact this get down to the final days of these ne- important legislation. gotiations, even though we do not have and a great leader, so you know it is Gov. John A. Kitzhaber, M.D., Oregon; not easy to get 40 signatures from the Gov. Mike Leavitt, Utah; Gov. Tom a bill out of the Senate or out of the Governors’ Association of Democrats Ridge, Pennsylvania; Gov. Mike Fos- House, we do have a lot of language and Republicans who have said the ter, Louisiana; Gov. John G. Rowland, that helps to show there is bipartisan same thing. Connecticut; Gov. Parris N. support for this effort. I am hoping the

VerDate 29-OCT-99 05:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.031 pfrm13 PsN: S04PT1 S13928 CONGRESSIONAL RECORD — SENATE November 4, 1999 appropriators, who are at the negoti- program: Social Security has helped ship—has determined that spending ating table, will hear loudly and clear- cut the poverty rate of older Ameri- bills supported by the congressional ly from hundreds and thousands of in- cans by two-thirds. We must ensure majority have already tapped into the dividuals and groups that there is a this program will survive well into the Social Security surplus by at least $13 better way to spend this money. 21st century. billion. In belated recognition of this We realize we do not have all we The current dispute centers on which fact, House Republicans have proposed would like, but we would like the final party is more committed to preserva- a 1.4 percent across-the-board cut in product of this Interior bill to come tion of the Social Security program. I the operating budgets of Federal agen- out in a way that is reflective of the must say that I am personally pleased cies. As a member of the Senate Armed principles I have outlined—Federal/ to see this development, which reflects Services Committee, I am loath to State partnership, coastal impact as- the fact that Social Security is truly a take a step in the wrong direction just sistance, full funding for land and consensus issue among the American after we have recently provided—on a water, historic preservation, and wild- people. The current debate takes place bipartisan basis—the Department of life conservation, with current appro- in the confusing world of arcane budg- Defense with much-needed budget re- priated and authorized programs—not etary terminology and it is sometimes lief for both personnel and equipment anything new, just something a little difficult to sort out. However, in evalu- costs. better, a little different, a little im- ating the present-day claims and coun- But when we consider the impact of proved. terclaims, the historic record clearly recent congressional proposals on the As we are waiting for the final deci- shows that it is the Democratic Party future of Social Security we must look sions of today and how we are going to which has consistently fought to pro- back no further than August 1999 when proceed I wanted to take some time to tect the program since its inception in the Republican majority pushed have these documents printed in the the Social Security Act of 1935. And through Congress a tax cut that, at the RECORD and to thank my colleagues on though I could certainly be accused of time, I labeled a ‘‘convenient but fis- this side of the aisle, particularly my being biased on the question, I believe cally irresponsible measure.’’ This tax senior Senator from Louisiana, for his that a close look will reveal unmistak- bill would have consumed virtually all tireless work; particularly Chairman ably that Democratic proposals to save of the projected $1 trillion non-Social MURKOWSKI for his terrific work on this Social Security for future generations Security budget surplus over the next issue as chairman of our committee; greatly surpass the recent efforts of my 10 years, without setting aside any particularly the members of the com- friends across the aisle in laying claim funds for Medicare solvency. The direct mittee, Senator JOHNSON, Senator to be the protectors of Social Security. revenue loss was estimated at $792 billion over that period, and with the BAYH, Senator LINCOLN, and others; For example, let’s look at the com- sharply diminished surplus, higher in- Senator SESSIONS, who has been a ter- peting proposals to place a ‘‘lockbox’’ rific supporter. around Social Security and see which terest costs on the national debt would I thank them for their work on this one truly best protects the benefits of bring the total to $964 billion. And the bill and tell them we are moving for- tomorrow’s recipients. projected $1 trillion surplus itself is de- ward. We are building support and First, Democratic lockbox proposals pendent on large cuts in national de- building a bipartisan bill. Today was establish a Social Security and Medi- fense, education, and other priority programs. If one only assumes that good news when Chairman YOUNG and care lockbox that precludes any por- these programs are held at their cur- the ranking member, GEORGE MILLER, tion of the Social Security surplus or who had competing versions, came to- any portion of the surplus reserved for rent levels, plus inflation, the projected 10–year surplus falls from $1 tril- gether and signed an agreement that is Medicare to be used for any purpose lion to $46 billion. very reflective of what I think the other than to strengthen and preserve Clearly, enactment of this massive American public wants us to do in this these programs. Over the next 15 years, the Democratic lockbox would protect tax cut, which the President appro- Congress. priately vetoed, would have vastly We may not be able to get it all done 100 percent of the Social Security sur- compromised and complicated our abil- this year, but we could make an impor- plus each year, and one-third of any on-budget surplus for Medicare. ity to preserve Social Security and tant downpayment, a first step towards Medicare. No other action considered this historic conservation bill and On the other hand, the Republican lockbox proposal does not reserve any in this Congress comes even close to leave a real legacy for our children and having this large a negative impact on our grandchildren—not just a 1-year of the projected surpluses for Medicare, nor does it extend the life of the Social Social Security’s future. appropriation but a real legacy, as this We can continue to attempt to ‘‘one- Security trust fund, which, under their century ends, of which we can all be up’’ each other over who has the better proposals, will be insolvent in 2034. proud and all share credit for some- plan to protect the existing Social Se- Furthermore, in the absence of protec- thing well done. curity trust fund. In trying to set the tions for Medicare, this critical pro- I yield the floor and suggest the ab- record straight from my own view- gram is projected to be insolvent in sence of a quorum. point, I have spoken today from per- 2015. Perhaps most importantly, the The PRESIDING OFFICER. The haps a partisan perspective. However, clerk will call the roll. Republican proposals include language there is plenty of blame to go around The bill clerk proceeded to call the which creates a large potential loop- for our joint failure in this session of roll. hole for the lockbox protections. Spe- Congress to use the unique opportunity Mr. CLELAND. Mr. President, I ask cifically, if any legislation is des- afforded by the long-sought end to unanimous consent that the order for ignated as ‘‘Social Security reform massive Federal budget deficits to the quorum call be rescinded. provisions’’—regardless of whether enact true Social Security reform to The PRESIDING OFFICER. Without such provisions help or hurt the inter- protect the benefits of millions of fu- objection, it is so ordered. ests of beneficiaries—lockbox surpluses ture recipients. The millions of Ameri- f would not have to be used to pay bene- cans who depend on Social Security for fits and could be used for tax cuts. Fi- SOCIAL SECURITY themselves or their parents and grand- nally, the Republican lockbox proposal parents, now and in the future, deserve Mr. CLELAND. Mr. President, I come does not even require that such Social no less. before the Senate today to speak about Security ‘‘reform’’ legislation extend Mr. President, I suggest the absence a subject which has been the topic of the solvency of the Social Security of a quorum. much political rhetoric in recent days: program. Is this meaningful, long-term The PRESIDING OFFICER. The Social Security. While there was a protection for Social Security? clerk will call the roll. time when not all in Congress acknowl- Some on the other side have accused The bill clerk proceeded to call the edged this fact, Social Security’s long- Democrats of raiding Social Security roll. term solvency is crucial to today’s and surpluses, yet the bipartisan Congres- Mr. LOTT. Mr. President, I ask unan- tomorrow’s retirees. There has never sional Budget Office—whose head was imous consent that the order for the been a more successful Government appointed by the Republican leader- quorum call be rescinded.

VerDate 29-OCT-99 05:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.116 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13929

The PRESIDING OFFICER (Mr. BEN- ignee, regarding education, drugs, and Mr. LOTT. First, let me clarify one NETT). Without objection, it is so or- business costs. error I made. Staff informs me I did dered. I further ask consent that the 5 p.m. say: ‘‘If by 3 p.m. any Member objects.’’ f filing requirement apply to each of It should say: ‘‘If by 3 p.m. either lead- these nonrelevant amendments and er objects to the text of the amend- UNANIMOUS-CONSENT there be a time limit of 2 hours equally ments, this agreement be null and void AGREEMENT—S. 625 divided on each nonrelevant amend- and the bill be placed back on the cal- Mr. LOTT. Mr. President, I believe ment, with the exception of the agri- endar.’’ we have a unanimous-consent agree- culture and drug amendments on which Now, under the Senator’s reserva- ment now. I will read it carefully, and there will be 4 hours each for debate, tion, Mr. President, responding to his if there are any questions, Senator with no second-degree amendments in questions, obviously, on both sides— DASCHLE may point them out. I believe order to these six issues and no mo- there may be minor changes that you it will be fair in the way it is going to tions to commit or recommit in order. would want to make on your agri- be handled and will allow us to com- I further ask consent that at 3 p.m. culture amendment or East Timor, plete this important legislation hope- on Monday, November 8, the minority whatever; same thing on this side. I fully by Tuesday or not later than leader, or his designee, be recognized to think we have to continue to work in Wednesday of next week. It will allow offer the amendment relative to the good faith. If it goes to fundamental for, of course, relevant amendments issue of minimum wage, and following substance, and changes a major portion and second-degree amendments if any the debate the amendment be laid or the overall intent of the bill, I think will be in order to those, but it will aside, and the majority leader, or his that would be exceeding the bounds of limit the nonrelevant amendments to designee, be recognized to offer the reasonableness. But if it is some tech- three on each side with an agreed-to amendment relative to business costs, nical change or some minor change, we time. and that the votes occur in relation to will have to continue to work with Mr. DASCHLE. Will the majority the amendments at 10:30 a.m. on Tues- each other to get that done. I hope ev- leader yield on that point for a ques- day, November 9, with 1 hour equally erybody will continue to be as flexible tion? divided prior to the vote for concluding as they can be in that effort. But there Mr. LOTT. I will be glad to. debate. I further ask consent that the is no intent to come back now and Mr. DASCHLE. As I understand this first vote occur in relation to the mi- change the whole thrust of the bill. agreement—I went through it in de- nority amendment, to be followed by a And that would not be fair. tail—it will allow relevant second de- vote in relation to the majority amend- Mr. DASCHLE. Mr. President, I grees to relevant amendments. ment, with 4 minutes prior to each thank all of the Senators involved in Mr. LOTT. I ran into that hornet’s vote for explanation. this. We have consulted with virtually nest yesterday. There are a couple rel- I further ask consent that following every Member. While no one is ever evant amendments that are certainly the disposition of all of the above-de- completely satisfied with a complex worthwhile and actively supported, but scribed amendments, the bill be imme- agreement such as this, I think it gives they also are very much opposed by diately advanced to third reading, that us the best opportunity to address an others who want to second degree the Senate then proceed to the House important issue, bankruptcy, and to them. Clearly, that will be in order. companion bill, H.R. 833, that all after address some other issues about which I thank Senator DASCHLE for working the enacting clause be stricken, the both caucuses care a good deal. So I with me on this, since the middle of text of the Senate bill as amended be think this is a good agreement. I appre- October actually. I believe this bill can inserted, the bill be advanced to third ciate the work of the majority leader be considered and completed. Bank- reading, and a vote occur on passage of to get us to this point. ruptcy reform is something we cer- the bill, without any intervening ac- I have no objection. tainly want to do. I know the minority tion, motion or debate. The PRESIDING OFFICER. Without leader has indicated his desire to have Further, I ask consent that the Sen- objection, it is so ordered. three nongermane amendments in ate insist on its amendment, request a f order to the bill from Members of his conference with the House, and the side of the aisle. Those are relative to Senate bill be placed back on the cal- ORDER OF BUSINESS East Timor, agriculture, and minimum endar. Mr. LOTT. Mr. President, I hope now wage. I hope all Members would allow Finally, I ask consent that the ex- that Members will remain tonight to us to adopt this agreement in order for change of the amendments by the two do their opening statements. I see the the Senate to consider and approve this leaders on the two issues regarding distinguished chairman is here, Sen- very important bankruptcy reform bill. minimum wage and business costs ator GRASSLEY from Iowa, who has On our side, we will have three occur at noon on Friday. If by 3 p.m. probably asked me about this bill over amendments, also, that relate to edu- either Member objects to the text of 100 times this year. I apologize to him cation, drugs, and business costs. I will the amendments, this agreement be now for not having gotten it on the cal- specify that in a moment. null and void and the bill be placed endar and up for consideration before So I ask unanimous consent that the back on the calendar. now. But he has been dogged in his de- Senate now turn to consideration of The PRESIDING OFFICER. Is there termination to address this very im- Calendar No. 109, S. 625, the bank- objection? portant area. ruptcy bill, and following the reporting Mr. DASCHLE. Reserving the right I say right up front we would not be by the clerk, the committee amend- to object, and I shall not, Mr. Presi- having bankruptcy reform if it were ments be immediately agreed to and dent, for the information of our col- not for the diligent efforts and the pa- the motion to reconsider be laid upon leagues, we have exchanged some of the tience and the determination and the the table en bloc. amendments that have been referred to substantive involvement of the Senator I further ask consent that all first- in this unanimous-consent request. from Iowa. So I think it is to his cred- degree amendments must be filed at There may be minor alterations in it. the desk by 5 p.m. on the second day of these two amendments that have been Now we need to move forward and get the bill’s consideration and that all exchanged. We will not have any major this bill completed, get it into con- first-degree amendments must be rel- changes in our amendments. And I as- ference, and hopefully act on it very evant to the issue of bankruptcy, and/ sume that while there may be minor quickly out of conference. or truth in lending/credit card agree- alterations, we do not anticipate any But since we do have this agreement ments, with the exception of three consequential alterations in the now, and the manager is ready to go— amendments to be offered by the mi- amendments to be offered by the Re- and I presume the manager on the nority, or his designee, relative to agri- publicans. Democratic side is ready to go—I can culture, minimum wage/taxes, and East I ask the majority leader if that is announce now there will be no further Timor, and three amendments to be of- his understanding relating to edu- votes this evening. The Senate will re- fered by the majority leader, or his des- cation and drugs. sume the bankruptcy bill at 9:30 a.m.

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.117 pfrm12 PsN: S04PT1 S13930 CONGRESSIONAL RECORD — SENATE November 4, 1999 on Friday. All Senators should be TITLE II—ENHANCED CONSUMER Sec. 320. Prompt relief from stay in indi- aware that votes could occur with re- PROTECTION vidual cases. spect to the appropriations process or Subtitle A—Penalties for Abusive Creditor Sec. 321. Treatment of certain earnings of an amendments to the bankruptcy bill on Practices individual debtor who files a voluntary case under chapter 11. Friday. Sec. 201. Promotion of alternative dispute Several Senators have been asking resolution. TITLE IV—GENERAL AND SMALL Sec. 202. Effect of discharge. BUSINESS BANKRUPTCY PROVISIONS about exactly what we can expect to- Sec. 203. Violations of the automatic stay. morrow. I cannot say. If we have an ap- Subtitle A—General Business Bankruptcy Sec. 204. Discouraging abuse of reaffirma- Provisions propriations conference report that has tion practices. been cleared that we are ready to move Sec. 401. Rolling stock equipment. Subtitle B—Priority Child Support Sec. 402. Adequate protection for investors. on, we will try to do it on a voice vote; Sec. 211. Definition of domestic support obliga- Sec. 403. Meetings of creditors and equity se- but if we have to have a recorded tion. curity holders. voted, we just have to have a recorded Sec. ø211¿ 212. Priorities for claims for do- Sec. 404. Protection of refinance of security vote. If we are ever going to get to the mestic support obligations. interest. final days of the session, we have to be Sec. ø212¿ 213. Requirements to obtain con- Sec. 405. Executory contracts and unexpired firmation and discharge in prepared to vote on Fridays and Mon- leases. cases involving domestic sup- Sec. 406. Creditors and equity security hold- days, if that is necessary. So we cannot port obligations. give any assurance at this point that ers committees. Sec. ø213¿ 214. Exceptions to automatic stay Sec. 407. Amendment to section 546 of title there will not be votes tomorrow. in domestic support obligation 11, United States Code. There very well may be. proceedings. Sec. 408. Limitation. Sec. 214 . Nondischargeability of cer- Votes will occur at 5:30 Monday. And ø ¿ 215 Sec. 409. Amendment to section 330(a) of tain debts for alimony, mainte- under this agreement, at least two title 11, United States Code. nance, and support. Sec. 410. Postpetition disclosure and solici- votes will occur at 10:30 Tuesday. Sec. ø215¿ 216. Continued liability of prop- tation. Then, in conclusion, I wish to, again, erty. Sec. 411. Preferences. thank all our colleagues for their co- Sec. ø216¿ 217. Protection of domestic sup- operation this week. The fact that we port claims against preferential Sec. 412. Venue of certain proceedings. Sec. 413. Period for filing plan under chapter did overwhelmingly pass this very im- transfer motions. øSec. 217. Amendment to section 1325 of title 11. portant trade bill involving the Carib- Sec. 414. Fees arising from certain owner- bean Basin area, Central America, and 11, United States Code. øSec. 218. Definition of domestic support ob- ship interests. Africa, after a long period of time, is a ligation.¿ Sec. 415. Creditor representation at first significant and positive step for our Sec. 218. Disposable income defined. meeting of creditors. country, I believe, not to mention the Sec. 219. Collection of child support. øSec. 416. Elimination of certain fees pay- additional trading opportunities in Subtitle C—Other Consumer Protections able in chapter 11 bankruptcy cases.¿ other countries. And also to have com- øSec. 221. Definitions. Sec. ø417¿ 416. Definition of disinterested øSec. 222. Disclosures. pleted the conference report on the fi- person. nancial services modernization—the øSec. 223. Debtor’s bill of rights. øSec. 224. Enforcement.¿ Sec. ø418¿ 417. Factors for compensation of second monumental achievement this Sec. 221. Amendments to discourage abusive professional persons. week—I think the Senate, as a whole, bankruptcy filings. Sec. ø419¿ 418. Appointment of elected trust- can take a lot of pride. And now we are Sec. ø225¿ 222. Sense of Congress. ee. ready to begin a third one. I wish every Sec. ø226¿ 223. Additional amendments to Sec. 419. Utility service. week could be as productive. title 11, United States Code. Subtitle B—Small Business Bankruptcy With that, I yield the floor, Mr. Sec. 224. Protection of retirement savings in Provisions President. bankruptcy. Sec. 421. Flexible rules for disclosure state- TITLE III—DISCOURAGING BANKRUPTCY ment and plan. f ABUSE Sec. 422. Definitions; effect of discharge. Sec. 301. Reinforcement of the fresh start. Sec. 423. Standard form disclosure State- BANKING REFORM ACT OF 1999 Sec. 302. Discouraging bad faith repeat fil- ment and plan. ings. Sec. 424. Uniform national reporting re- The PRESIDING OFFICER. The Sec. 303. Curbing abusive filings. quirements. clerk will report the bill by title. Sec. 304. Debtor retention of personal prop- Sec. 425. Uniform reporting rules and forms The assistant legislative clerk read erty security. for small business cases. as follows: Sec. 305. Relief from the automatic stay Sec. 426. Duties in small business cases. when the debtor does not com- A bill (S. 625) to amend title 11, United Sec. 427. Plan filing and confirmation dead- plete intended surrender of con- States Code, and for other purposes. lines. sumer debt collateral. Sec. 428. Plan confirmation deadline. The Senate proceeded to consider the Sec. 306. Giving secured creditors fair treat- Sec. 429. Prohibition against extension of bill, which had been reported from the ment in chapter 13. time. Committee on the Judiciary, with Sec. 307. Exemptions. Sec. 430. Duties of the United States trustee. Sec. 308. Residency requirement for home- amendments; as follows: Sec. 431. Scheduling conferences. stead exemption. Sec. 432. Serial filer provisions. (The parts of the bill intended to be Sec. 309. Protecting secured creditors in Sec. 433. Expanded grounds for dismissal or stricken are shown in boldface brack- chapter 13 cases. conversion and appointment of ets and the parts of the bill intended to Sec. 310. Limitation on luxury goods. be inserted are shown in italic.) Sec. 311. Automatic stay. trustee. Sec. 434. Study of operation of title 11, S. 625 Sec. 312. Extension of period between bankruptcy discharges. United States Code, with re- Be it enacted by the Senate and House of Rep- Sec. 313. Definition of household goods and spect to small businesses. resentatives of the United States of America in antiques. Sec. 435. Payment of interest. Congress assembled, Sec. 314. Debt incurred to pay nondischarge- TITLE V—MUNICIPAL BANKRUPTCY SECTION 1. SHORT TITLE; TABLE OF CONTENTS. able debts. PROVISIONS (a) SHORT TITLE.—This Act may be cited as Sec. 315. Giving creditors fair notice in Sec. 501. Petition and proceedings related to the ‘‘Bankruptcy Reform Act of 1999’’. chapters 7 and 13 cases. petition. (b) TABLE OF CONTENTS.—The table of con- Sec. 316. Dismissal for failure to timely file Sec. 502. Applicability of other sections to tents of this Act is as follows: schedules or provide required chapter 9. Sec. 1. Short title; table of contents. information. Sec. 317. Adequate time to prepare for hear- TITLE VI—IMPROVED BANKRUPTCY TITLE I—NEEDS-BASED BANKRUPTCY ing on confirmation of the plan. STATISTICS AND DATA Sec. 101. Conversion. Sec. 318. Chapter 13 plans to have a 5-year Sec. 601. Audit procedures. Sec. 102. Dismissal or conversion. duration in certain cases. Sec. 602. Improved bankruptcy statistics. Sec. 103. Notice of alternatives. Sec. 319. Sense of the Congress regarding ex- Sec. 603. Uniform rules for the collection of Sec. 104. Debtor financial management pansion of rule 9011 of the Fed- bankruptcy data. training test program. eral Rules of Bankruptcy Pro- Sec. 604. Sense of Congress regarding avail- Sec. 105. Credit counseling. cedure. ability of bankruptcy data.

VerDate 29-OCT-99 05:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00060 Fmt 0624 Sfmt 0655 E:\CR\FM\G04NO6.119 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13931 TITLE VII—BANKRUPTCY TAX øSec. 1211. Exemptions.¿ ‘‘(II) 60. PROVISIONS Sec. ø1212¿ 1110. Exceptions to discharge. ‘‘(iv) The debtor’s expenses for payment of Sec. 701. Treatment of certain liens. Sec. ø1213¿ 1111. Effect of discharge. all priority claims (including priority child Sec. 702. Effective notice to government. Sec. ø1214¿ 1112. Protection against discrimi- support and alimony claims) shall be cal- Sec. 703. Notice of request for a determina- natory treatment. culated as— Sec. 1215 1113. Property of the estate. tion of taxes. ø ¿ ‘‘(I) the total amount of debts entitled to Sec. ø1216¿ 1114. Preferences. Sec. 704. Rate of interest on tax claims. priority; divided by Sec. ø1217¿ 1115. Postpetition transactions. ‘‘(II) 60. Sec. 705. Tolling of priority of tax claim Sec. ø1218¿ 1116. Disposition of property of time periods. ‘‘(B)(i) In any proceeding brought under the estate. this subsection, the presumption of abuse Sec. 706. Priority property taxes incurred. Sec. ø1219¿ 1117. General provisions. Sec. 707. Chapter 13 discharge of fraudulent may be rebutted by demonstrating special Sec. ø1220¿ 1118. Abandonment of railroad circumstances that justify additional ex- and other taxes. line. Sec. 708. Chapter 11 discharge of fraudulent penses or adjustments of current monthly Sec. ø1221¿ 1119. Contents of plan. total income. In order to establish special taxes. Sec. 1222 1120. Discharge under chapter 12. ø ¿ circumstances, the debtor shall be required Sec. 709. Stay of tax proceedings. Sec. ø1223¿ 1121. Bankruptcy cases and pro- to— Sec. 710. Periodic payment of taxes in chap- ceedings. ‘‘(I) itemize each additional expense or ad- ter 11 cases. Sec. ø1224¿ 1122. Knowing disregard of bank- Sec. 711. Avoidance of statutory tax liens ruptcy law or rule. justment of income; and prohibited. Sec. ø1225¿ 1123. Transfers made by non- ‘‘(II) provide— Sec. 712. Payment of taxes in the conduct of profit charitable corporations. ‘‘(aa) documentation for such expenses; business. Sec. ø1226¿ 1124. Protection of valid purchase and Sec. 713. Tardily filed priority tax claims. money security interests. ‘‘(bb) a detailed explanation of the special Sec. 714. Income tax returns prepared by tax Sec. ø1227¿ 1125. Extensions. circumstances that make such expenses nec- authorities. Sec. ø1228¿ 1126. Bankruptcy judgeships. essary and reasonable. ‘‘(ii) The debtor, and the attorney for the Sec. 715. Discharge of the estate’s liability TITLE øXIII¿ XII—GENERAL EFFECTIVE for unpaid taxes. DATE; APPLICATION OF AMENDMENTS debtor if the debtor has an attorney, shall Sec. 716. Requirement to file tax returns to attest under oath to the accuracy of any in- Sec. ø1301¿ 1201. Effective date; application formation provided to demonstrate that ad- confirm chapter 13 plans. of amendments. Sec. 717. Standards for tax disclosure. ditional expenses or adjustments to income TITLE I—NEEDS-BASED BANKRUPTCY Sec. 718. Setoff of tax refunds. are required. SEC. 101. CONVERSION. ‘‘(iii) The presumption of abuse may be re- TITLE VIII—ANCILLARY AND OTHER Section 706(c) of title 11, United States butted if the additional expenses or adjust- CROSS-BORDER CASES Code, is amended by inserting ‘‘or consents ments to income referred to in clause (i) Sec. 801. Amendment to add chapter 15 to to’’ after ‘‘requests’’. cause the product of the debtor’s current title 11, United States Code. SEC. 102. DISMISSAL OR CONVERSION. monthly income reduced by the amounts de- Sec. 802. Amendments to other chapters in (a) IN GENERAL.—Section 707 of title 11, termined under clauses (ii), (iii), and (iv) of title 11, United States Code. United States Code, is amended— subparagraph (A) multiplied by 60 to be less Sec. 803. Claims relating to insurance depos- (1) by striking the section heading and in- than the lesser of— its in cases ancillary to foreign serting the following: ‘‘(I) 25 percent of the debtor’s nonpriority proceedings. unsecured claims; or ‘‘§ 707. Dismissal of a case or conversion to a TITLE IX—FINANCIAL CONTRACT ‘‘(II) $15,000. case under chapter 13’’; PROVISIONS ‘‘(C)(i) As part of the schedule of current and Sec. 901. Bankruptcy Code amendments. income and expenditures required under sec- (2) in subsection (b)— Sec. 902. Damage measure. tion 521, the debtor shall include a statement (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; Sec. 903. Asset-backed securitizations. of the debtor’s current monthly income, and (B) in paragraph (1), as redesignated by Sec. 904. Effective date; application of the calculations that determine whether a subparagraph (A) of this paragraph— amendments. presumption arises under subparagraph (i) in the first sentence— (A)(i), that shows how each such amount is TITLE X—PROTECTION OF FAMILY (I) by striking ‘‘but not at the request or calculated. FARMERS suggestion’’ and inserting ‘‘, panel trustee ‘‘(ii) The Supreme Court shall promulgate Sec. 1001. Reenactment of chapter 12. or’’; rules under section 2075 of title 28, that pre- Sec. 1002. Debt limit increase. (II) by inserting ‘‘, or, with the debtor’s scribe a form for a statement under clause (i) Sec. 1003. Elimination of requirement that consent, convert such a case to a case under and may provide general rules on the con- family farmer and spouse re- chapter 13 of this title,’’ after ‘‘consumer tent of the statement. ceive over 50 percent of income debts’’; and ‘‘(3) In considering under paragraph (1) from farming operation in year (III) by striking ‘‘substantial abuse’’ and whether the granting of relief would be an prior to bankruptcy. inserting ‘‘abuse’’; and abuse of the provisions of this chapter in a Sec. 1004. Certain claims owed to govern- (ii) by striking the next to last sentence; case in which the presumption in subpara- mental units. and graph (A)(i) of such paragraph does not apply øTITLE XI—HEALTH CARE AND (C) by adding at the end the following: or has been rebutted, the court shall EMPLOYEE BENEFITS ‘‘(2)(A)(i) In considering under paragraph consider— (1) whether the granting of relief would be an ‘‘(A) whether the debtor filed the petition øSec. 1101. Definitions. abuse of the provisions of this chapter, the in bad faith; or øSec. 1102. Disposal of patient records. court shall presume abuse exists if the debt- ‘‘(B) the totality of the circumstances (in- øSec. 1103. Administrative expense claim for or’s current monthly income reduced by the cluding whether the debtor seeks to reject a costs of closing a health care amounts determined under clauses (ii), (iii), personal services contract and the financial business. and (iv), and multiplied by 60 is not less than need for such rejection as sought by the øSec. 1104. Appointment of ombudsman to the lesser of— debtor) of the debtor’s financial situation act as patient advocate. ‘‘(I) 25 percent of the debtor’s nonpriority demonstrates abuse.’’. øSec. 1105. Debtor in possession; duty of unsecured claims in the case; or (b) DEFINITION.—Title 11, United States trustee to transfer patients.¿ ‘‘(II) $15,000. Code, is amended— TITLE øXII¿ XI—TECHNICAL ‘‘(ii) The debtor’s monthly expenses shall (1) in section 101, by inserting after para- AMENDMENTS be the applicable monthly (excluding pay- graph (10) the following: Sec. ø1201¿ 1101. Definitions. ments for debts) expenses under standards ‘‘(10A) ‘current monthly income’— Sec. ø1202¿ 1102. Adjustment of dollar issued by the Internal Revenue Service for ‘‘(A) means the average monthly income amounts. the area in which the debtor resides, as in ef- from all sources which the debtor, or in a Sec. ø1203¿ 1103. Extension of time. fect on the date of the entry of the order for joint case, the debtor and the debtor’s Sec. ø1204¿ 1104. Technical amendments. relief, for the debtor, the dependents of the spouse, receive without regard to whether Sec. ø1205¿ 1105. Penalty for persons who debtor, and the spouse of the debtor in a the income is taxable income, derived during negligently or fraudulently pre- joint case, if the spouse is not otherwise a the 180-day period preceding the date of de- pare bankruptcy petitions. dependent. termination; and Sec. ø1206¿ 1106. Limitation on compensa- ‘‘(iii) The debtor’s average monthly pay- ‘‘(B) includes any amount paid by any enti- tion of professional persons. ments on account of secured debts shall be ty other than the debtor (or, in a joint case, Sec. ø1207¿ 1107. Special tax provisions. calculated as— the debtor and the debtor’s spouse), on a reg- Sec. ø1208¿ 1108. Effect of conversion. ‘‘(I) the total of all amounts scheduled as ular basis to the household expenses of the Sec. ø1209¿ 1109. Allowance of administrative contractually due to secured creditors in debtor or the debtor’s dependents (and, in a expenses. each month of the 60 months following the joint case, the debtor’s spouse if not other- øSec. 1210. Priorities. date of the petition; divided by wise a dependent);’’; and

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.096 pfrm12 PsN: S04PT1 S13932 CONGRESSIONAL RECORD — SENATE November 4, 1999 (2) in section 704— ‘‘(I) the position of the party that brought (B) a sample of existing consumer edu- (A) by inserting ‘‘(a)’’ before ‘‘The trustee the motion was not substantially justified; cation programs such as those described in shall—’’; and or the report of the National Bankruptcy Re- (B) by adding at the end the following: ‘‘(II) the party brought the motion solely view Commission issued on October 20, 1997, ‘‘(b)(1) With respect to an individual debtor for the purpose of coercing a debtor into that are representative of consumer edu- under this chapter— waiving a right guaranteed to the debtor cation programs carried out by— ‘‘(A) the United States trustee or bank- under this title. (i) the credit industry; ruptcy administrator shall review all mate- ‘‘(B) A party in interest that has a claim of (ii) trustees serving under chapter 13 of rials filed by the debtor and, not later than an aggregate amount less than $1,000 shall title 11, United States Code; and 10 days before the first meeting of creditors, not be subject to subparagraph (A). (iii) consumer counseling groups. file with the court a statement as to whether ‘‘(5) Only the judge, United States trustee, (2) REPORT.—Not later than 3 months after the debtor’s case would be presumed to be an bankruptcy administrator, or panel trustee concluding the evaluation under paragraph abuse under section 707(b); and may bring a motion under this section if the (1), the Director shall submit a report to the ‘‘(B) not later than 5 days after receiving a debtor and the debtor’s spouse combined, as Speaker of the House of Representatives and statement under subparagraph (A), the court of the date of the order for relief, have a the President pro tempore of the Senate, for shall provide a copy of the statement to all total current monthly income equal to or referral to the appropriate committees of creditors. less than the national or applicable State Congress, containing the findings of the Di- ‘‘(2) The United States trustee or bank- median family monthly income calculated rector regarding the effectiveness of such ruptcy administrator shall not later than 30 on a monthly basis for a family of equal curriculum, such materials, and such pro- days after receiving a statement filed under size.’’. grams. (c) CLERICAL AMENDMENT.—The table of paragraph (1) file a motion to dismiss or con- SEC. 105. CREDIT COUNSELING. sections for chapter 7 of title 11, United (a) WHO MAY BEA DEBTOR.—Section 109 of vert under section 707(b), or file a statement States Code, is amended by striking the item title 11, United States Code, is amended by setting forth the reasons the United States relating to section 707 and inserting the fol- adding at the end the following: trustee or bankruptcy administrator does lowing: not believe that such a motion would be øap- ‘‘(h)(1) Subject to paragraphs (2) and (3), ‘‘707. Dismissal of a case or conversion to a propriate. If,¿ appropriate, if based on the fil- and notwithstanding any other provision of ing of such statement with the court, the case under chapter 13.’’. this section, an individual may not be a United States trustee or bankruptcy admin- SEC. 103. NOTICE OF ALTERNATIVES. debtor under this title unless that individual istrator determines that the debtor’s case Section 342(b) of title 11, United States has, during the ø90-day period¿ 180-day period should be presumed to be an abuse under sec- Code, is amended to read as follows: preceding the date of filing of the petition of ‘‘(b)(1) Before the commencement of a case tion 707(b) and the product of the debtor’s that individual, received from an approved under this title by an individual whose debts current monthly income, multiplied by 12 is nonprofit credit counseling service described are primarily consumer debts, that indi- not less than— in section 111(a) an individual or group brief- vidual shall be given or obtain (as required ‘‘(A) the highest national or applicable ing that outlined the opportunities for avail- in section 521(a)(1), as part of the certifi- State median family income reported for a able credit counseling and assisted that indication process under subchapter I of chapter family of equal or lesser size, whichever is vidual in performing a related budget anal- 5) a written notice prescribed by the United greater; or ysis. States trustee for the district in which the ‘‘(B) in the case of a household of 1 person, ‘‘(2)(A) Paragraph (1) shall not apply with petition is filed under section 586 of title 28. respect to a debtor who resides in a district the national or applicable State median ‘‘(2) The notice shall contain the following: for which the United States trustee or bank- household income for 1 earner, whichever is ‘‘(A) A brief description of chapters 7, 11, ruptcy administrator of the bankruptcy greater. 12, and 13 and the general purpose, benefits, court of that district determines that the ap- ‘‘(3)(A) The court shall order the counsel and costs of proceeding under each of those proved nonprofit credit counseling services for the debtor to reimburse the panel trustee chapters. for that district are not reasonably able to for all reasonable costs in prosecuting a mo- ‘‘(B) A brief description of services that provide adequate services to the additional tion brought under section 707(b), including may be available to that individual from a individuals who would otherwise seek credit reasonable attorneys’ fees, if— credit counseling service that is approved by counseling from those programs by reason of ‘‘(i) a panel trustee appointed under sec- the United States trustee for that district.’’. the requirements of paragraph (1). tion 586(a)(1) of title 28 brings a motion for SEC. 104. DEBTOR FINANCIAL MANAGEMENT ‘‘(B) Each United States trustee or bank- dismissal or conversion under this sub- TRAINING TEST PROGRAM. ruptcy administrator that makes a deter- section; and (a) DEVELOPMENT OF FINANCIAL MANAGE- mination described in subparagraph (A) shall ‘‘(ii) the court— MENT AND TRAINING CURRICULUM AND MATE- review that determination not later than 1 ‘‘(I) grants that motion; and RIALS.—The Director of the Executive Office year after the date of that determination, ‘‘(II) finds that the action of the counsel for United States Trustees (in this section and not less frequently than every year for the debtor in filing under this chapter referred to as the ‘‘Director’’) shall— thereafter. was not substantially justified. (1) consult with a wide range of individuals ‘‘(3)(A) Subject to subparagraph (B), the re- ‘‘(B) If the court finds that the attorney for who are experts in the field of debtor edu- quirements of paragraph (1) shall not apply the debtor violated Rule 9011, at a minimum, cation, including trustees who are appointed with respect to a debtor who submits to the the court shall order— under chapter 13 of title 11, United States court a certification that— ‘‘(i) the assessment of an appropriate civil Code, and who operate financial manage- ‘‘(i) describes exigent circumstances that penalty against the counsel for the debtor; ment education programs for debtors; and merit a waiver of the requirements of para- and (2) develop a financial management train- graph (1); ‘‘(ii) the payment of the civil penalty to ing curriculum and materials that may be ‘‘(ii) states that the debtor requested cred- the panel trustee or the United States trust- used to educate individual debtors con- it counseling services from an approved non- ee. cerning how to better manage their finances. profit credit counseling service, but was un- ‘‘(C) In the case of a petition referred to in (b) TEST.— able to obtain the services referred to in subparagraph (B), the signature of an attor- (1) IN GENERAL.—The Director shall select 3 paragraph (1) during the 5-day period begin- ney shall constitute a certificate that the at- judicial districts of the United States in ning on the date on which the debtor made torney has— which to test the effectiveness of the finan- that request; and ‘‘(i) performed a reasonable investigation cial management training curriculum and ‘‘(iii) is satisfactory to the court. into the circumstances that gave rise to the materials developed under subsection (a). ‘‘(B) With respect to a debtor, an exemp- petition; and (2) AVAILABILITY OF CURRICULUM AND MATE- tion under subparagraph (A) shall cease to ‘‘(ii) determined that the petition— RIALS.—For a 1-year period beginning not apply to that debtor on the date on which ‘‘(I) is well grounded in fact; and later than 270 days after the date of enact- the debtor meets the requirements of para- ‘‘(II) is warranted by existing law or a good ment of this Act, the curriculum and mate- graph (1), but in no case may the exemption faith argument for the extension, modifica- rials referred to in paragraph (1) shall be apply to that debtor after the date that is 30 tion, or reversal of existing law and does not made available by the Director, directly or days after the debtor files a petition.’’. constitute an abuse under paragraph (1). indirectly, on request to individual debtors (b) CHAPTER 7 DISCHARGE.—Section 727(a) ‘‘(4)(A) Except as provided in subparagraph in cases filed during that 1-year period under of title 11, United States Code, is amended— (B) and subject to paragraph (5), the court chapter 7 or 13 of title 11, United States (1) in paragraph (9), by striking ‘‘or’’ at the may award a debtor all reasonable costs in Code. end; contesting a motion brought by a party in (c) EVALUATION.— (2) in paragraph (10), by striking the period interest (other than a panel trustee or (1) IN GENERAL.—During the 1-year period and inserting ‘‘; or’’; and United States trustee) under this subsection referred to in subsection (b), the Director (3) by adding at the end the following: (including reasonable attorneys’ fees) if— shall evaluate the effectiveness of— ‘‘(11) after the filing of the petition, the ‘‘(i) the court does not grant the motion; (A) the financial management training debtor failed to complete an instructional and curriculum and materials developed under course concerning personal financial man- ‘‘(ii) the court finds that— subsection (a); and agement described in section 111.’’.

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(c) CHAPTER 13 DISCHARGE.—Section 1328 of ‘‘(A) the claim was filed by a creditor who ‘‘(aa) the debtor shall appear in person; and title 11, United States Code, is amended by unreasonably refused to negotiate a reason- ‘‘(bb) the court shall decide whether the adding at the end the following: able alternative repayment schedule pro- agreement constitutes an undue hardship, is ‘‘(g) The court shall not grant a discharge posed by an approved credit counseling agen- not in the debtor’s best interest, or is not the under this section to a debtor, unless after cy acting on behalf of the debtor; result of a threat by the creditor to take an filing a petition the debtor has completed an ‘‘(B) the offer of the debtor under subpara- action that, at the time of the threat, øthat¿ instructional course concerning personal fi- graph (A)— the creditor may not legally take or does not nancial management described in section ‘‘(i) was made at least 60 days before the intend to take; and 111. filing of the petition; and ‘‘(II) if the debtor is represented by coun- ‘‘(h) Subsection (g) shall not apply with re- ‘‘(ii) provided for payment of at least 60 sel, the debtor may waive the debtor’s right spect to a debtor who resides in a district for percent of the amount of the debt over a pe- to a hearing under subclause (I) by signing a which the United States trustee or bank- riod not to exceed the repayment period of statement— ruptcy administrator of the bankruptcy the loan, or a reasonable extension thereof; ‘‘(aa) waiving the hearing; court of that district determines that the ap- and ‘‘(bb) stating that the debtor is represented proved instructional courses are not ade- ‘‘(C) no part of the debt under the alter- by counsel; and quate to service the additional individuals native repayment schedule is nondischarge- ‘‘(cc) identifying the counselø.¿ ;’’; øand¿ who would be required to complete the in- able. (B) in paragraph (6)(A)— structional course by reason of the require- ‘‘(2) The debtor shall have the burden of (i) in clause (i), by striking ‘‘and’’ at the ments of this section. proving, by clear and convincing evidence, end; ‘‘(i) Each United States trustee or bank- that— (ii) in clause (ii), by striking the period and ruptcy administrator that makes a deter- ‘‘(A) the creditor unreasonably refused to inserting ‘‘; and’’; and mination described in subsection (h) shall reconsider the debtor’s proposal; and (iii) by adding at the end the following: view that determination not later than 1 ‘‘(B) the proposed alternative repayment ‘‘(iii) not an agreement that the debtor en- year after the date of that determination, schedule was made in the 60-day period speci- tered into as a result of a threat by the cred- and not less frequently than every year fied in paragraph (1)(B)(i).’’. itor to take an action that, at the time of thereafter.’’. (b) LIMITATION ON AVOIDABILITY.—Section the threat, the creditor could not legally (d) DEBTOR’S DUTIES.—Section 521 of title 547 of title 11, United States Code, is amend- take or did not intend to takeø.¿; except 11, United States Code, is amended— ed by adding at the end the following: that’’; and (1) by inserting ‘‘(a)’’ before ‘‘The debtor ‘‘(h) The trustee may not avoid a transfer (C) in paragraph (6)(B), by striking ‘‘Sub- shall—’’; and if such transfer was made as a part of an al- paragraph’’ and inserting ‘‘subparagraph’’; and (2) by adding at the end the following: ternative repayment plan between the debtor (2) in subsection (d), in the third sentence, ‘‘(b) In addition to the requirements under and any creditor of the debtor created by an by inserting after ‘‘during the course of ne- subsection (a), an individual debtor shall file approved credit counseling agency.’’. gotiating an agreement’’ the following: ‘‘(or with the court— SEC. 202. EFFECT OF DISCHARGE. if the consideration by such agreement is ‘‘(1) a certificate from the credit coun- Section 524 of title 11, United States Code, based on a wholly secured consumer debt, seling service that provided the debtor serv- is amended by adding at the end the fol- and the debtor has not waived the right to a ices under section 109(h); and lowing: hearing under subsection (c)(2)(C))’’. ‘‘(2) a copy of the debt repayment plan, if ‘‘(i) The willful failure of a creditor to (b) LAW ENFORCEMENT.— any, developed under section 109(h) through credit payments received under a plan con- (1) IN GENERAL.—Chapter 9 of title 18, the credit counseling service referred to in firmed under this title (including a plan of United States Code, is amended by adding at paragraph (1).’’. reorganization confirmed under chapter 11 of the end the following: (e) GENERAL PROVISIONS.— this title) in the manner required by the plan (1) IN GENERAL.—Chapter 1 of title 11, ‘‘§ 158. Designation of United States attorneys United States Code, is amended by adding at (including crediting the amounts required and agents of the Federal Bureau of Inves- the end the following: under the plan) shall constitute a violation tigation to address abusive reaffirmations of an injunction under subsection (a)(2).’’. of debt ‘‘§ 111. Credit counseling services; financial management instructional courses SEC. 203. VIOLATIONS OF THE AUTOMATIC STAY. ‘‘(a) IN GENERAL.—The Attorney General of Section 362(a) of title 11, United States the United States shall designate the indi- ‘‘(a) The clerk of each district shall main- Code, is amended— viduals described in subsection (b) to have tain a list of credit counseling services that (1) in paragraph (7), by striking ‘‘and’’ at primary responsibility in carrying out en- provide 1 or more programs described in sec- the end; forcement activities in addressing violations tion 109(h) and a list of instructional courses (2) in paragraph (8), by striking the period of section 152 or 157 relating to abusive re- concerning personal financial management at the end and inserting ‘‘; and’’; and affirmations of debt. that have been approved by— (3) by adding at the end the following: ‘‘(b) UNITED STATES DISTRICT ATTORNEYS ‘‘(1) the United States trustee; or ‘‘(9) any communication (other than a reci- AND AGENTS OF THE FEDERAL BUREAU OF IN- ‘‘(2) the bankruptcy administrator for the tation of the creditor’s legal rights) threat- VESTIGATION—The individuals referred to in district.’’. ening a debtor (for the purpose of coercing subsection (a) are— (2) CLERICAL AMENDMENT.—The table of an agreement for the reaffirmation of debt), ‘‘(1) a United States attorney for each judi- sections for chapter 1 of title 11, United at any time after the commencement and be- cial district of the United States; and States Code, is amended by adding at the end fore the granting of a discharge in a case ‘‘(2) an agent of the Federal Bureau of In- the following: under this title, of an intention to— vestigation (within the meaning of section ‘‘111. Credit counseling services; financial ‘‘(A) file a motion to— 3107) for each field office of the Federal Bu- management instructional ‘‘(i) determine the dischargeability of a reau of Investigation. courses.’’. debt; or ‘‘(c) BANKRUPTCY INVESTIGATIONS.—Each (f) LIMITATION.—Section 362 of title 11, ‘‘(ii) under section 707(b), øto¿ dismiss or United States attorney designated under this United States Code, is amended by adding at convert a case; or section shall have primary responsibility for the end the following: ‘‘(B) repossess collateral from the debtor to carrying out the duties of a United States ‘‘(i) If a case commenced under chapter 7, which the stay applies.’’. attorney under section 3057.’’. 11, or 13 øof this title¿ is dismissed due to the SEC. 204. DISCOURAGING ABUSE OF REAFFIRMA- (2) CLERICAL AMENDMENT.—The analysis for creation of a debt repayment plan, for pur- TION PRACTICES. chapter 9 of title 18, United States Code, is poses of subsection (c)(3), any subsequent (a) IN GENERAL.—Section 524 of title 11, amended by adding at the end the following: case commenced by the debtor under any United States Code, as amended by section ‘‘158. Designation of United States attorneys such chapter shall not be presumed to be 202 of this Act, is amended— and agents of the Federal Bu- filed not in good faith.’’. (1) in subsection (c)— reau of Investigation to address TITLE II—ENHANCED CONSUMER (A) in paragraph (2)— abusive reaffirmations of PROTECTION (i) in subparagraph (A), by striking ‘‘and’’ debt.’’. Subtitle A—Penalties for Abusive Creditor at the end; (c) EXCEPTIONS TO DISCHARGE.—Section 523 Practices (ii) in subparagraph (B), by inserting ‘‘and’’ of title 11, United States Code, is amended by SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE at the end; and adding at the end the following: RESOLUTION. (iii) by adding at the end the following: ‘‘(f) Nothing in this section or in any other (a) REDUCTION OF CLAIM.—Section 502 of ‘‘(C)(i) the consideration for such agree- provision of this title shall preempt any title 11, United States Code, is amended by ment is based on a wholly unsecured con- State law relating to unfair trade practices adding at the end the following: sumer debt; and that imposes restrictions on creditor con- ‘‘(k)(1) The court, on the motion of the ‘‘(ii) such agreement contains a clear and duct that would give rise to liability— debtor and after a hearing, may reduce a conspicuous statement that advises the debt- ‘‘(1) under this section; or claim filed under this section based in whole or that— ‘‘(2) under section 524, for failure to comply on unsecured consumer debts by not more ‘‘(I) the debtor is entitled to a hearing be- with applicable requirements for seeking a than 20 percent of the claim, if— fore the court at which— reaffirmation of debt.

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‘‘(g) ACTIONS BY STATES.—The attorney parent or legal guardian of that child to a domestic support obligation, øthe debtor has general of a State, or an official or agency governmental unit or are owed directly to a paid¿ the plan provides for full payment of all designated by a State— governmental unit under applicable non- amounts payable under such order for such ‘‘(1) may bring an action on behalf of its bankruptcy law.’’. obligation that become payable after the residents to recover damages on their behalf SEC. ø212.¿ 213. REQUIREMENTS TO OBTAIN CON- date on which the petition is filed.’’; and under subsection (d) or section 524(c); and FIRMATION AND DISCHARGE IN ø(3)¿ (5) in section 1328(a), in the matter ‘‘(2) may bring an action in a State court CASES INVOLVING DOMESTIC SUP- preceding paragraph (1), by inserting ‘‘, and to enforce a State criminal law that is simi- PORT OBLIGATIONS. with respect to a debtor who is required by a lar to section 152 or 157 of title 18.’’. Title 11, United States Code, is amended— judicial or administrative order to pay a do- (1) in section 1129(a), by adding at the end Subtitle B—Priority Child Support ø mestic support obligation, and with respect to the following: whom the court certifies that all amounts SEC. 211. DEFINITION OF DOMESTIC SUPPORT ø‘‘(14) If the debtor is required by a judicial payable under such order or østatute that OBLIGATION. or administrative order or statute to pay a Section 101 of title 11, United States Code, is are due on or before the date¿ statute that ini- domestic support obligation, the debtor has tially became payable after the date on which amended— paid all amounts payable under such order or (1) by striking paragraph (12A); and the petition was filed through the date of the statute for such obligation that become pay- øcertification (including amounts due before (2) by inserting after paragraph (14) the fol- able after the date on which the petition is lowing: or after the petition was filed) have been filed.’’;¿ ‘‘(14A) ‘domestic support obligation’ means a paid’’ after ‘‘completion by the debtor of all (1) in section 1322(a)— payments under the plan’’.¿ certification have debt that accrues before or after the entry of an (A) in paragraph (2), by striking ‘‘and’’ at the order for relief under this title that is— been paid, after all amounts payable under that end; order that, as of the date of certification, are ‘‘(A) owed to or recoverable by— (B) in paragraph (3), by striking the period at ‘‘(i) a spouse, former spouse, or child of the owed directly to a spouse, former spouse, or the end and inserting ‘‘; and’’; and child of the debtor, or the parent or legal guard- debtor or such child’s parent or legal guardian; (C) by adding in the end the following: or ian of such child have been paid (unless the ‘‘(4) if the debtor is required by judicial or ad- holder of such claim agrees to a different treat- ‘‘(ii) a governmental unit; ministrative order or statute to pay a domestic ‘‘(B) in the nature of alimony, maintenance, ment of such claim),’’ after ‘‘completion by the support obligation, unless the holder of such debtor of all payments under the plan’’. or support (including assistance provided by a claim agrees to a different treatment of such SEC. ø213.¿ 214. EXCEPTIONS TO AUTOMATIC governmental unit) of such spouse, former claim, provide for the full payment of— spouse, or child of the debtor or such child’s STAY IN DOMESTIC SUPPORT OBLI- ‘‘(A) all amounts payable under such order or GATION PROCEEDINGS. parent or legal guardian, without regard to statute for such obligation that first become whether such debt is expressly so designated; Section 362(b) of title 11, United States payable after the date on which the petition is Code, is amended— ‘‘(C) established or subject to establishment filed; and before or after entry of an order for relief under (1) by striking paragraph (2) and inserting ‘‘(B) all amounts payable under such order the following: this title, by reason of applicable provisions of— before the date on which such petition was filed, ‘‘(i) a separation agreement, divorce decree, or ‘‘(2) under subsection (a)— if such amounts are owed directly to a spouse, ‘‘(A) of the commencement of an action or property settlement agreement; former spouse, child of the debtor, or a parent or ‘‘(ii) an order of a court of record; or proceeding for— legal guardian of such child.’’; ‘‘(i) the establishment of paternity øas a ‘‘(iii) a determination made in accordance (2) in section 1225(a)— with applicable nonbankruptcy law by a gov- part of an effort to collect domestic support (A) in paragraph (5), by striking ‘‘and’’ at the obligations¿; or ernmental unit; and end; ‘‘(D) not assigned to a nongovernmental enti- ‘‘(ii) the establishment or modification of (B) in paragraph (6), by striking the period at an order for domestic support obligations; or ty, unless that obligation is assigned voluntarily the end and inserting ‘‘; and’’; and by the spouse, former spouse, child, or parent or ‘‘(B) the collection of a domestic support (C) by adding at the end the following: obligation from property that is not prop- legal guardian of the child for the purpose of ‘‘(7) if the debtor is required by a judicial or collecting the debt.’’. erty of the estate;’’; administrative order or statute to pay a domestic ø(2) in paragraph (17), by striking ‘‘or’’ at SEC. ø211.¿ 212. PRIORITIES FOR CLAIMS FOR DO- support obligation, the plan provides for the full MESTIC SUPPORT OBLIGATIONS. the end; payment of all amounts payable under such ø(3) in paragraph (18), by striking the pe- Section 507(a) of title 11, United States order or statute for such obligation that initially Code, is amended— riod at the end and inserting a semicolon; become payable after the date on which the pe- and (1) by striking paragraph (7); tition is filed.’’; (2) by redesignating paragraphs (1) through ø(4) by inserting after paragraph (18) the (3) in section 1228(a)— following: (6) as paragraphs (2) through (7), respec- (A) by striking ‘‘(a) As soon as practicable’’ tively; ø‘‘(19) under subsection (a) with respect to and inserting ‘‘(a)(1) Subject to paragraph (2), the withholding of income under an order as (3) in paragraph (2), as redesignated, by as soon as practicable’’; striking ‘‘First’’ and inserting ‘‘Second’’; specified in section 466(b) of the Social Secu- (B) by striking ‘‘(1) provided’’ and inserting rity Act (42 U.S.C. 666(b)); or (4) in paragraph (3), as redesignated, by the following: ø‘‘(20) under subsection (a) with respect striking ‘‘Second’’ and inserting ‘‘Third’’; ‘‘(A) provided’’; (5) in paragraph (4), as redesignated, by to—¿ (C) by striking ‘‘(2) of the kind’’ and inserting (2) by inserting after paragraph (4) the fol- striking ‘‘Third’’ and inserting ‘‘Fourth’’; the following: lowing: (6) in paragraph (5), as redesignated, by ‘‘(B) of the kind’’; and ‘‘(5) under subsection (a) with respect to the striking ‘‘Fourth’’ and inserting ‘‘Fifth’’; (D) by adding at the end the following: withholding of income— (7) in paragraph (6), as redesignated, by ‘‘(2) With respect to a debtor who is required ‘‘(A) for payment of a domestic support obli- striking ‘‘Fifth’’ and inserting ‘‘Sixth’’; by a judicial or administrative order or statute gation for amounts that initially become pay- (8) in paragraph (7), as redesignated, by to pay a domestic support obligation, the court able after the date the petition was filed; and striking ‘‘Sixth’’ and inserting ‘‘Seventh’’; may not grant the debtor a discharge under ‘‘(B) for payment of a domestic support obli- and paragraph (1) until after the debtor certifies gation for amounts payable before the date the (9) by inserting before paragraph (2), as re- that— petition was filed, and owed directly to the designated, the following: ‘‘(A) all amounts payable under that order or spouse, former spouse, or child of the debtor, or ‘‘(1) First, allowed unsecured claims for do- statute that initially became payable after the the parent or guardian of such child;’’; mestic support obligations to be paid in the date on which the petition was filed (through (3) in paragraph (17), by striking ‘‘or’’ at the following order on the condition that funds the date of the certification) have been paid; end; received under this paragraph by a govern- and (4) in paragraph (18), by striking the period at mental unit in a case under this title be ap- ‘‘(B) all amounts payable under that order the end and inserting ‘‘; or’’; and plied and distributed in accordance with appli- that, as of the date of the certification, are owed (5) by inserting after paragraph (18) the fol- cable nonbankruptcy law: directly to a spouse, former spouse, or child of lowing: ‘‘(A) Claims that, as of the date of entry of the debtor, or the parent or legal guardian of ‘‘(19) under subsection (a) with respect to— the order for relief, are owed directly to a such child, have been paid, unless the holder of ‘‘(A) the withholding, suspension, or re- spouse, former spouse, or child of the debtor, such claim agrees to a different treatment of striction of drivers’ licenses, professional or the parent or legal guardian of such child, such claim.’’; and occupational licenses, and recreational without regard to whether the claim is filed ø(2)¿ (4) in section 1325(a)— licenses under State law, as specified in sec- by the spouse, former spouse, child, or øpar- (A) in paragraph (5), by striking ‘‘and’’ at tion 466(a)(16) of the Social Security Act (42 ent¿ such child’s parent or legal guardian, or is the end; U.S.C. 666(a)(16)) øor with respect¿; filed by a governmental unit on behalf of (B) in paragraph (6), by striking the period ‘‘(B) øto¿ the reporting of overdue support that person. at the end and inserting ‘‘; and’’; and owed by an absent parent to any consumer ‘‘(B) Claims that, as of the date of entry of (C) by adding at the end the following: reporting agency as specified in section the order for relief, are assigned by a spouse, ‘‘(7) if the debtor is required by a judicial 466(a)(7) of the Social Security Act (42 U.S.C. former spouse, child of the debtor, or the or administrative order or statute to pay a 666(a)(7));

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.096 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13935 ‘‘ø(B)¿ (C) the interception of tax refunds, ø‘‘(C) established or subject to establish- ‘‘(2)(A) If, after receiving a notice under as specified in sections 464 and 466(a)(3) of ment before or after entry of an order for re- paragraph (1)(B)(iii), a holder of a claim or a the Social Security Act (42 U.S.C. 664 and lief under this title, by reason of applicable State child support agency is unable to lo- 666(a)(3)), if such tax refund is payable directly provisions of— cate the debtor that is the subject of the no- to a spouse, former spouse, or child of the debt- ø‘‘(i) a separation agreement, divorce de- tice, that party may request from a creditor or, or the parent or legal guardian of such cree, or property settlement agreement; described in paragraph (1)(B)(iii)(III) (aa) or child; or ø‘‘(ii) an order of a court of record; or (bb) the last known address of the debtor. ‘‘ø(C)¿ (D) the enforcement of medical obli- ø‘‘(iii) a determination made in accordance ‘‘(B) Notwithstanding any other provision of gations as specified under title IV of the So- with applicable nonbankruptcy law by a gov- law, a creditor that makes a disclosure of a last cial Security Act (42 U.S.C. 601 et seq.).’’. ernmental unit; and known address of a debtor in connection with a SEC. ø214.¿ 215. NONDISCHARGEABILITY OF CER- ø‘‘(D) not assigned to a nongovernmental request made under subparagraph (A) shall not TAIN DEBTS FOR ALIMONY, MAINTE- entity, unless that obligation is assigned vol- be liable to the debtor or any other person by NANCE, AND SUPPORT. untarily by the spouse, former spouse, child, reason of making that disclosure.’’. Section 523 of title 11, United States Code, or parent solely for the purpose of collecting (b) DUTIES OF TRUSTEE UNDER CHAPTER 11.— is amended— the debt.’’.¿ Section 1106 of title 11, United States Code, is ø(1) in subsection (a), by striking para- SEC. 218. DISPOSABLE INCOME DEFINED. amended— graph (5) and inserting the following: (a) CONFIRMATION OF PLAN UNDER CHAPTER (1) in subsection (b)— ø‘‘(5) for a domestic support obligation;’’;¿ 12.—Section 1225(b)(2)(A) of title 11, United (A) in paragraph (5), by striking ‘‘and’’ at the (1) in subsection (a)— States Code, is amended by inserting ‘‘for a end; (A) by striking paragraph (5) and inserting child support, foster care, or disability payment (B) in paragraph (6), by striking the period the following: for a dependent child made in accordance with and inserting ‘‘; and’’; and ‘‘(5) for a domestic support obligation;’’; applicable nonbankruptcy law’’ after ‘‘depend- (C) by adding at the end the following: (B) in paragraph (15)— ‘‘(7) if, with respect to an individual debtor, (i) by inserting ‘‘or’’ after ‘‘court of record’’; ent of the debtor’’. (b) CONFIRMATION OF PLAN UNDER CHAPTER there is a claim for support of a child of the and debtor or a custodial parent or legal guardian of (ii) by striking ‘‘unless—’’ and all that follows 13.—Section 1325(b)(2)(A) of title 11, United States Code, is amended by inserting ‘‘or for a such child entitled to receive priority under sec- through the end of the paragraph and inserting tion 507(a)(1), provide the applicable notifica- a semicolon; and child support, foster care, or disability payment for a dependent child made in accordance with tion specified in subsection (c).’’; and (2) in subsection (c), by striking ‘‘(6), or (2) by adding at the end the following: (15)’’ and inserting ‘‘or (6)’’ø; and¿. applicable nonbankruptcy law’’ after ‘‘dependent of the debtor’’. ‘‘(c)(1) In any case described in subsection ø(3) in paragraph (15), by striking ‘‘govern- (b)(7), the trustee shall— mental unit’’ and all through the end of the SEC. 219. COLLECTION OF CHILD SUPPORT. ‘‘(A)(i) notify in writing the holder of the paragraph and inserting a semicolon.¿ (a) DUTIES OF TRUSTEE UNDER CHAPTER 7.— claim of the right of that holder to use the serv- SEC. ø215.¿ 216. CONTINUED LIABILITY OF PROP- Section 704 of title 11, United States Code, as ices of a State child support enforcement agency ERTY. amended by section 102(b) of this Act, is established under sections 464 and 466 of the So- Section 522 of title 11, United States Code, amended— cial Security Act (42 U.S.C. 664 and 666) for the is amended— (1) in subsection (a)— State in which the holder resides; and (1) in subsection (c), by striking paragraph (A) in paragraph (8), by striking ‘‘and’’ at ‘‘(ii) include in the notice under this para- (1) and inserting the following: the end; graph the address and telephone number of the ‘‘(1) a debt of a kind specified in paragraph (B) in paragraph (9), by striking the period child support enforcement agency; and (1) or (5) of section 523(a) (in which case, not- and inserting ‘‘; and’’; and ‘‘(B)(i) notify, in writing, the State child sup- withstanding any provision of applicable (C) by adding at the end the following: port agency (of the State in which the holder of nonbankruptcy law to the contrary, such ‘‘(10) if, with respect to an individual debt- the claim resides) of the claim; property shall be liable for a debt of a kind or, there is a claim for support of a child of ‘‘(ii) include in the notice under this para- specified in section 523(a)(5));’’; and the debtor or a custodial parent or legal graph the name, address, and telephone number (2) in subsection (f)(1)(A), by striking the guardian of such child entitled to receive pri- of the holder of the claim; and dash and all that follows through the end of ority under section 507(a)(1), provide the ap- ‘‘(iii) at such time as the debtor is granted a the subparagraph and inserting ‘‘of a kind plicable notification specified in subsection discharge under section 1141, notify the holder that is specified in section 523(a)(5); or’’. (c).’’; and of the claim and the State child support agency SEC. ø216.¿ 217. PROTECTION OF DOMESTIC SUP- (2) by adding at the end the following: of the State in which that holder resides of— PORT CLAIMS AGAINST PREF- ‘‘(c)(1) In any case described in subsection ‘‘(I) the granting of the discharge; ERENTIAL TRANSFER MOTIONS. (a)(10), the trustee shall— ‘‘(II) the last recent known address of the Section 547(c)(7) of title 11, United States ‘‘(A)(i) notify in writing the holder of the debtor; and Code, is amended to read as follows: claim of the right of that holder to use the ‘‘(III) with respect to the debtor’s case, the ‘‘(7) to the extent such transfer was a bona services of a State child support enforcement name of each creditor that holds a claim that— fide payment of a debt for a domestic sup- agency established under sections 464 and 466 ‘‘(aa) is not discharged under paragraph (2), port obligation; or’’. of the Social Security Act (42 U.S.C. ø654¿ 664 (4), or (14A) of section 523(a); or øSEC. 217. AMENDMENT TO SECTION 1325 OF and 666, respectively) for the State in which ‘‘(bb) was reaffirmed by the debtor under sec- TITLE 11, UNITED STATES CODE. the holder resides for assistance in collecting tion 524(c). øSection 1325(b)(2) of title 11, United States child support during and after the bankruptcy ‘‘(2)(A) If, after receiving a notice under para- Code, is amended by inserting ‘‘(other than procedures; øand¿ graph (1)(B)(iii), a holder of a claim or a State child support payments, foster care pay- ‘‘(ii) include in the notice under this para- child support agency is unable to locate the ments, or disability payments for a depend- graph the address and telephone number of debtor that is the subject of the notice, that ent child made in accordance with applicable the child support enforcement agency; and party may request from a creditor described in nonbankruptcy law and which is reasonably ‘‘(iii) include in the notice an explanation of paragraph (1)(B)(iii)(III) (aa) or (bb) the last necessary to be expended)’’ after ‘‘received the rights of the holder of the claim to payment known address of the debtor. by the debtor’’. of the claim under this chapter; and ‘‘(B) Notwithstanding any other provision of øSEC. 218. DEFINITION OF DOMESTIC SUPPORT ‘‘(B)(i) notify in writing the State child law, a creditor that makes a disclosure of a last OBLIGATION. support agency of the State in which the known address of a debtor in connection with a øSection 101 of title 11, United States Code, holder of the claim resides of the claim; request made under subparagraph (A) shall not is amended— ‘‘(ii) include in the notice under this para- be liable to the debtor or any other person by ø(1) by striking paragraph (12A); and graph the name, address, and telephone num- reason of making that disclosure.’’. ø(2) by inserting after paragraph (14) the ber of the holder of the claim; and (c) DUTIES OF TRUSTEE UNDER CHAPTER 12.— following: ‘‘(iii) at such time as the debtor is granted Section 1202 of title 11, United States Code, is ø‘‘(14A) ‘domestic support obligation’ a discharge under section 727, notify the amended— means a debt that accrues before or after the holder of that claim and the State child sup- (1) in subsection (b)— entry of an order for relief under this title port agency of the State in which that hold- (A) in paragraph (4), by striking ‘‘and’’ at the that is— er resides of— end; ø‘‘(A) owed to or recoverable by— ‘‘(I) the granting of the discharge; (B) in paragraph (5), by striking the period ø‘‘(i) a spouse, former spouse, or child of ‘‘(II) the last recent known address of the and inserting ‘‘; and’’; and the debtor or that child’s legal guardian; or debtor; and (C) by adding at the end the following: ø‘‘(ii) a governmental unit; ‘‘(III) with respect to the debtor’s case, the ‘‘(6) if, with respect to an individual debtor, ø‘‘(B) in the nature of alimony, mainte- name of each creditor that holds a claim there is a claim for support of a child of the nance, or support (including assistance pro- that— debtor or a custodial parent or legal guardian of vided by a governmental unit) of such ‘‘(aa) øthat¿ is not discharged under para- such child entitled to receive priority under sec- spouse, former spouse, or child, without re- graph (2), (4), or (14A) of section 523(a); or tion 507(a)(1), provide the applicable notifica- gard to whether such debt is expressly so ‘‘(bb) øthat¿ was reaffirmed by the debtor tion specified in subsection (c).’’; and designated; under section 524(c). (2) by adding at the end the following:

VerDate 29-OCT-99 06:10 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00065 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.096 pfrm12 PsN: S04PT1 S13936 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(c)(1) In any case described in subsection ‘‘(III) with respect to the debtor’s case, the later than 3 business days after the first date (b)(6), the trustee shall— name of each creditor that holds a claim on which a debt relief agency first offers to ‘‘(A)(i) notify in writing the holder of the that— provide any bankruptcy assistance services claim of the right of that holder to use the serv- ‘‘(aa) øthat¿ is not discharged under para- to an assisted person, a clear and con- ices of a State child support enforcement agency graph (2), (4), or (14A) of section 523(a); or spicuous written notice advising assisted established under sections 464 and 466 of the So- ‘‘(bb) øthat¿ was reaffirmed by the debtor persons that— cial Security Act (42 U.S.C. 664 and 666) for the under section 524(c). ø‘‘(A) all information the assisted person is State in which the holder resides; and ‘‘(2)(A) If, after receiving a notice under required to provide with a petition and ‘‘(ii) include in the notice under this para- paragraph (1)(B)(iii), a holder of a claim or a thereafter during a case under this title shall graph the address and telephone number of the State child support agency is unable to lo- be complete, accurate, and truthful; child support enforcement agency; and cate the debtor that is the subject of the no- ø‘‘(B) all assets and all liabilities shall be ‘‘(B)(i) notify, in writing, the State child sup- tice, that party may request from a creditor completely and accurately disclosed in the port agency (of the State in which the holder of described in paragraph (1)(B)(iii)(III) (aa) or documents filed to commence the case, and the claim resides) of the claim; (bb) the last known address of the debtor. the replacement value of each asset, as de- ‘‘(ii) include in the notice under this para- ‘‘(B) Notwithstanding any other provision fined in section 506, shall be stated in those graph the name, address, and telephone number of law, a creditor that makes a disclosure of documents if requested after reasonable in- of the holder of the claim; and a last known address of a debtor in connec- quiry to establish such value; ‘‘(iii) at such time as the debtor is granted a tion with a request made under subpara- ø‘‘(C) total current monthly income, pro- discharge under section 1228, notify the holder graph (A) shall not be liable to the debtor or jected monthly net income and, in a case of the claim and the State child support agency any other person by reason of making that under chapter 13, monthly net income shall of the State in which that holder resides of— disclosure.’’. be stated after reasonable inquiry; and ‘‘(I) the granting of the discharge; Subtitle C—Other Consumer Protections ø‘‘(D) information an assisted person pro- ‘‘(II) the last recent known address of the vides during the case of that person may be øSEC. 221. DEFINITIONS. debtor; and audited under this title and the failure to ‘‘(III) with respect to the debtor’s case, the (a) DEFINITIONS.—Section 101 of title 11, ø provide such information may result in dis- name of each creditor that holds a claim that— United States Code, is amended— missal of the proceeding under this title or ‘‘(aa) is not discharged under paragraph (2), (1) by inserting after paragraph (3) the fol- ø other sanction including, in some instances, (4), or (14A) of section 523(a); or lowing: criminal sanctions. ‘‘(bb) was reaffirmed by the debtor under sec- ø‘‘(3A) ‘assisted person’ means any person ø‘‘(b) A debt relief agency providing bank- tion 524(c). whose debts consist primarily of consumer ruptcy assistance to an assisted person shall ‘‘(2)(A) If, after receiving a notice under para- debts and whose nonexempt assets are less provide each assisted person at the same graph (1)(B)(iii), a holder of a claim or a State than $150,000;’’; time as the notices required under sub- child support agency is unable to locate the ø(2) by inserting after paragraph (4) the fol- section (a)(1) with the following statement, debtor that is the subject of the notice, that lowing: to the extent applicable, or a substantially party may request from a creditor described in ø‘‘(4A) ‘bankruptcy assistance’ means any similar statement. The statement shall be paragraph (1)(B)(iii)(III) (aa) or (bb) the last goods or services sold or otherwise provided clear and conspicuous and shall be in a single known address of the debtor. to an assisted person with the express or im- document separate from other documents or ‘‘(B) Notwithstanding any other provision of plied purpose of providing information, ad- notices provided to the assisted person: law, a creditor that makes a disclosure of a last vice, counsel, document preparation or fil- ø‘‘ ‘IMPORTANT INFORMATION ABOUT known address of a debtor in connection with a ing, or attendance at a creditors’ meeting or BANKRUPTCY ASSISTANCE SERVICES request made under subparagraph (A) shall not appearing in a proceeding on behalf of an- FROM AN ATTORNEY OR BANKRUPTCY be liable to the debtor or any other person by other or providing legal representation with PETITION PREPARER reason of making that disclosure.’’. respect to a proceeding under this title;’’; ø‘‘ ‘If you decide to seek bankruptcy relief, ø(b)¿ (d) DUTIES OF TRUSTEE UNDER CHAP- and you can represent yourself, you can hire an TER 13.—Section 1302 of title 11, United ø(3) by inserting after paragraph (12A) the attorney to represent you, or you can get States Code, øas amended by section 102(b) of following: help in some localities from a bankruptcy this Act,¿ is amended— ø‘‘(12B) ‘debt relief agency’ means any per- petition preparer who is not an attorney. (1) in subsection (b)— son who provides any bankruptcy assistance THE LAW REQUIRES AN ATTORNEY OR (A) in paragraph (4), by striking ‘‘and’’ at to an assisted person in return for the pay- BANKRUPTCY PETITION PREPARER TO the end; ment of money or other valuable consider- GIVE YOU A WRITTEN CONTRACT SPECI- (B) in paragraph (5), by striking the period ation, or who is a bankruptcy petition pre- FYING WHAT THE ATTORNEY OR BANK- and inserting ‘‘; and’’; and parer under section 110, but does not include RUPTCY PETITION PREPARER WILL DO (C) by adding at the end the following: any person that is any of the following or an FOR YOU AND HOW MUCH IT WILL COST. ‘‘(6) if, with respect to an individual debt- officer, director, employee, or agent Ask to see the contract before you hire any- or, there is a claim for support of a child of thereof— one. the debtor or a custodial parent or legal ø‘‘(A) any nonprofit organization which is ø‘‘ ‘The following information helps you guardian of such child entitled to receive pri- exempt from taxation under section 501(c)(3) understand what must be done in a routine ority under section 507(a)(1), provide the ap- of the Internal Revenue Code of 1986; bankruptcy case to help you evaluate how plicable notification specified in subsection ø‘‘(B) any creditor of the person to the ex- much service you need. Although bank- (d).’’; and tent the creditor is assisting the person to ruptcy can be complex, many cases are rou- ø(s)¿ (2) by adding at the end the following: restructure any debt owed by the person to tine. ‘‘(d)(1) In any case described in subsection the creditor; or ø‘‘ ‘Before filing a bankruptcy case, either (b)(6), the trustee shall— ø‘‘(C) any depository institution (as de- you or your attorney should analyze your ‘‘(A)(i) notify in writing the holder of the fined in section 3 of the Federal Deposit In- eligibility for different forms of debt relief claim of the right of that holder to use the surance Act (12 U.S.C. 1813)) or any Federal made available by the Bankruptcy Code and services of a State child support enforcement credit union or State credit union (as those which form of relief is most likely to be ben- agency established under sections 464 and 466 terms are defined in section 101 of the Fed- eficial for you. Be sure you understand the of the Social Security Act (42 U.S.C. 664 and eral Credit Union Act (12 U.S.C. 1751)), or any relief you can obtain and its limitations. To 666, respectively) for the State in which the affiliate or subsidiary of such a depository file a bankruptcy case, documents called a holder resides; and institution or credit union;’’. Petition, Schedules and Statement of Finan- ‘‘(ii) include in the notice under this para- ø(b) CONFORMING AMENDMENT.—Section cial Affairs, as well as in some cases a State- graph the address and telephone number of 104(b)(1) of title 11, United States Code, is ment of Intention need to be prepared cor- the child support enforcement agency; and amended by inserting ‘‘101(3),’’ after ‘‘sec- rectly and filed with the bankruptcy court. ‘‘(B)(i) notify in writing the State child tions’’. You will have to pay a filing fee to the bank- support agency of the State in which the øSEC. 222. DISCLOSURES. ruptcy court. Once your case starts, you will holder of the claim resides of the claim; ø(a) DISCLOSURES.—Subchapter II of chap- have to attend the required first meeting of øand¿ ter 5 of title 11, United States Code, is creditors where you may be questioned by a ‘‘(ii) include in the notice under this para- amended by adding at the end the following: court official called a ‘‘trustee’’ and by graph the name, address, and telephone num- creditors. ber of the holder of the claim; and ø‘‘§ 526. Disclosures ø‘‘ ‘If you choose to file a chapter 7 case, ‘‘(iii) at such time as the debtor is granted ø‘‘(a) A debt relief agency providing bank- you may be asked by a creditor to reaffirm a discharge under section 1328, notify the ruptcy assistance to an assisted person shall a debt. You may want help deciding whether holder of the claim and the State child sup- provide the following notices to the assisted to do so and a creditor is not permitted to port agency of the State in which that hold- person: coerce you into reaffirming your debts. er resides of— ø‘‘(1) The written notice required under ø‘‘ ‘If you choose to file a chapter 13 case in ‘‘(I) the granting of the discharge; section 342(b)(1). which you repay your creditors what you can ‘‘(II) the last recent known address of the ø‘‘(2) To the extent not covered in the writ- afford over 3 to 5 years, you may also want debtor; and ten notice described in paragraph (1) and not help with preparing your chapter 13 plan and

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.096 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13937 with the confirmation hearing on your plan agency. We help people file bankruptcy peti- 527 shall be treated as void and may not be which will be before a bankruptcy judge. tions to obtain relief under the Bankruptcy enforced by any Federal or State court or by ø‘‘ ‘If you select another type of relief Code.’ or a substantially similar statement; any other person. under the Bankruptcy Code other than chap- and ø‘‘(2) Any debt relief agency that has been ter 7 or chapter 13, you will want to find out ø‘‘(C) if an advertisement directed to the found, after notice and hearing, to have— what needs to be done from someone familiar general public indicates that the debt relief ø‘‘(A) negligently failed to comply with with that type of relief. agency provides assistance with respect to any provision of section 526 or 527 with re- ø‘‘ ‘Your bankruptcy case may also involve credit defaults, mortgage foreclosures, lease spect to a bankruptcy case or related pro- litigation. You are generally permitted to eviction proceedings, excessive debt, debt ceeding of an assisted person; represent yourself in litigation in bank- collection pressure, or inability to pay any ø‘‘(B) provided bankruptcy assistance to an ruptcy court, but only attorneys, not bank- consumer debt, disclose conspicuously in assisted person in a case or related pro- ruptcy petition preparers, can give you legal that advertisement that the assistance is ceeding which is dismissed or converted be- advice.’. with respect to or may involve proceedings cause the debt relief agency’s negligent fail- ø‘‘(c) Except to the extent the debt relief under this title, using the following state- ure to file bankruptcy papers, including pa- agency provides the required information ment: ‘We are a debt relief agency. We help pers specified in section 521; or itself after reasonably diligent inquiry of the people file bankruptcy petitions to obtain re- ø‘‘(C) negligently or intentionally dis- assisted person or others so as to obtain such lief under the Bankruptcy Code.’ or a sub- regarded the material requirements of this information reasonably accurately for inclu- stantially similar statement. title or the Federal Rules of Bankruptcy sion on the petition, schedules or statement ø‘‘(2) For purposes of paragraph (1)(B), an Procedure applicable to such debt relief of financial affairs, a debt relief agency pro- advertisement shall be of bankruptcy assist- agency shall be liable to the assisted person viding bankruptcy assistance to an assisted ance services if that advertisement describes in the amount of any fees and charges in person, to the extent permitted by nonbank- or offers bankruptcy assistance with a plan connection with providing bankruptcy as- ruptcy law, shall provide each assisted per- under chapter 12, without regard to whether sistance to such person that the debt relief son at the time required for the notice re- chapter 13 is specifically mentioned. A state- agency has already been paid on account of quired under subsection (a)(1) reasonably suf- ment such as ‘federally supervised repay- that proceeding. ficient information (which may be provided ment plan’ or ‘Federal debt restructuring ø‘‘(3) In addition to such other remedies as orally or in a clear and conspicuous writing) help’ or any other similar statement that are provided under State law, whenever the to the assisted person on how to provide all would lead a reasonable consumer to believe chief law enforcement officer of a State, or the information the assisted person is re- that help with debts is being offered when in an official or agency designated by a State, quired to provide under this title pursuant to fact in most cases the help available is bank- has reason to believe that any person has section 521, including— ruptcy assistance with a plan under chapter violated or is violating section 526 or 527, the ø‘‘(1) how to value assets at replacement 13 is a statement covered under the pre- State— value, determine total current monthly in- ceding sentence. ø‘‘(A) may bring an action to enjoin such come, projected monthly income and, in a ø‘‘(b) A debt relief agency shall not— violation; case under chapter 13, net monthly income, ø‘‘(1) fail to perform any service that the ø‘‘(B) may bring an action on behalf of its and related calculations; debt relief agency has told the assisted per- residents to recover the actual damages of ø‘‘(2) how to complete the list of creditors, son or prospective assisted person the agency assisted persons arising from such violation, including how to determine what amount is would provide that person in connection including any liability under paragraph (2); owed and what address for the creditor with the preparation for or activities during and should be shown; and a proceeding under this title; ø‘‘(C) in the case of any successful action ø‘‘(3) how to— ø‘‘(2) make any statement, or counsel or under subparagraph (A) or (B), shall be ø‘‘(A) determine what property is exempt; advise any assisted person to make any awarded the costs of the action and reason- and statement in any document filed in a pro- able attorney fees as determined by the ø‘‘(B) value exempt property at replace- ceeding under this title, that— court. ment value, as defined in section 506. ø‘‘(A) is untrue and misleading; or ø‘‘(4) The United States District Court for ø‘‘(d) A debt relief agency shall maintain a ø‘‘(B) upon the exercise of reasonable care, any district located in the State shall have copy of the notices required under subsection should be known by the debt relief agency to concurrent jurisdiction of any action under (a) of this section for a period of 2 years after be untrue or misleading; subparagraph (A) or (B) of paragraph (3). the latest date on which the notice is given ø‘‘(3) misrepresent to any assisted person ø‘‘(5) Notwithstanding any other provision the assisted person.’’. or prospective assisted person, directly or in- of Federal law, if the court, on its own mo- ø(b) CONFORMING AMENDMENT.—The table directly, affirmatively or by material omis- tion or on the motion of the United States of sections for chapter 5 of title 11, United sion, what services the debt relief agency trustee, finds that a person intentionally States Code, is amended by inserting after may reasonably expect to provide that per- violated section 526 or 527, or engaged in a the item relating to section 525 the fol- son, or the benefits an assisted person may clear and consistent pattern or practice of lowing: obtain or the difficulties the person may ex- violating section 526 or 527, the court may— ø‘‘526. Disclosures.’’. perience if the person seeks relief in a pro- ø‘‘(A) enjoin the violation of such section; øSEC. 223. DEBTOR’S BILL OF RIGHTS. ceeding under this title; or or ø(a) DEBTOR’S BILL OF RIGHTS.—Subchapter ø‘‘(4) advise an assisted person or prospec- ø‘‘(B) impose an appropriate civil penalty II of chapter 5 of title 11, United States Code, tive assisted person to incur more debt in against such person. as amended by section 222 of this Act, is contemplation of that person filing a pro- ø‘‘(c) This section and sections 526 and 527 amended by adding at the end the following: ceeding under this title or in order to pay an shall not annul, alter, affect, or exempt any ø‘‘§ 527. Debtor’s bill of rights attorney or bankruptcy petition preparer fee person subject to those sections from com- or charge for services performed as part of ø‘‘(a)(1) A debt relief agency shall— plying with any law of any State except to preparing for or representing a debtor in a ø‘‘(A) not later than 5 business days after the extent that such law is inconsistent with the first date on which a debt relief agency proceeding under this title.’’. those sections, and then only to the extent of ø(b) CONFORMING AMENDMENT.—The table of provides any bankruptcy assistance services the inconsistency.’’. sections for chapter 5 of title 11, United to an assisted person, but before that as- ø(b) CONFORMING AMENDMENT.—The table States Code, as amended by section 222 of sisted person’s petition under this title is of sections for chapter 5 of title 11, United this Act, is amended by inserting after the filed— States Code, as amended by section 223 of item relating to section 526 of title 11, ‘‘(i) execute a written contract with the this Act, is amended by inserting after the ø United States Code, the following: assisted person specifying clearly and con- item relating to section 527 of title 11, spicuously the services the agency will pro- ø‘‘527. Debtor’s bill of rights.’’. United States Code, the following: vide the assisted person and the basis on øSEC. 224. ENFORCEMENT. ø‘‘528. Debt relief agency enforcement.’’.¿ which fees or charges will be made for such ø(a) ENFORCEMENT.—Subchapter II of chap- SEC. 221. AMENDMENTS TO DISCOURAGE ABU- services and the terms of payment; and ter 5 of title 11, United States Code, as SIVE BANKRUPTCY FILINGS. ø‘‘(ii) give the assisted person a copy of the amended by section 223 of this Act, is amend- Section 110 of title 11, United States Code, is fully executed and completed contract in a ed by adding at the end the following: amended— form the person is able to retain; ø‘‘§ 528. Debt relief agency enforcement (1) in subsection (a)(1), by inserting ‘‘, under ø‘‘(B) disclose in any advertisement of ø‘‘(a) Any waiver by any assisted person of the direct supervision of an attorney,’’ after bankruptcy assistance services or of the ben- any protection or right provided by or under ‘‘who’’; efits of bankruptcy directed to the general section 526 or 527 shall be void and may not (2) in subsection (b)— public (whether in general media, seminars be enforced by any Federal or State court or (A) in paragraph (1), by adding at the end the or specific mailings, telephonic or electronic any other person. following: ‘‘If a bankruptcy petition preparer is messages, or otherwise) that the services or ø‘‘(b)(1) Any contract between a debt relief not an individual, then an officer, principal, re- benefits are with respect to proceedings agency and an assisted person for bank- sponsible person, or partner of the preparer under this title, clearly and conspicuously ruptcy assistance that does not comply with shall be required to— using the statement: ‘We are a debt relief the material requirements of section 526 or ‘‘(A) sign the document for filing; and

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00067 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.096 pfrm12 PsN: S04PT1 S13938 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(B) print on the document the name and ad- ‘‘(h)(1) The Supreme Court may promulgate ‘‘(2) The court shall triple the amount of a dress of that officer, principal, responsible per- rules under section 2075 of title 28, or the Judi- fine assessed under paragraph (1) in any case in son or partner.’’; cial Conference of the United States may pre- which the court finds that a bankruptcy peti- (B) by striking paragraph (2) and inserting scribe guidelines, for setting a maximum allow- tion preparer— the following: able fee chargeable by a bankruptcy petition ‘‘(A) advised the debtor to exclude assets or ‘‘(2)(A) Before preparing any document for fil- preparer. A bankruptcy petition preparer shall income that should have been included on appli- ing or accepting any fees from a debtor, the notify the debtor of any such maximum amount cable schedules; bankruptcy petition preparer shall provide to before preparing any document for filing for a ‘‘(B) advised the debtor to use a false Social the debtor a written notice to debtors concerning debtor or accepting any fee from the debtor.’’; Security account number; bankruptcy petition preparers, which shall be (C) in paragraph (2), as redesignated by sub- ‘‘(C) failed to inform the debtor that the debt- on an official form issued by the Judicial Con- paragraph (A) of this paragraph— or was filing for relief under this title; or ference of the United States. (i) by striking ‘‘Within 10 days after the date ‘‘(D) prepared a document for filing in a man- ‘‘(B) The notice under subparagraph (A)— of filing a petition, a bankruptcy petition pre- ner that failed to disclose the identity of the ‘‘(i) shall inform the debtor in simple language parer shall file a’’ and inserting ‘‘A’’; preparer. that a bankruptcy petition preparer is not an (ii) by inserting ‘‘by the bankruptcy petition ‘‘(3) The debtor, the trustee, a creditor, or the attorney and may not practice law or give legal preparer shall be filed together with the peti- United States trustee may file a motion for an advice; tion,’’ after ‘‘perjury’’; and order imposing a fine on the bankruptcy peti- ‘‘(ii) may contain a description of examples of (iii) by adding at the end the following: ‘‘If tion preparer for each violation of this section. legal advice that a bankruptcy petition preparer rules or guidelines setting a maximum fee for ‘‘(4) All fines imposed under this section shall is not authorized to give, in addition to any ad- services have been promulgated or prescribed be paid to the United States trustee, who shall vice that the preparer may not give by reason of under paragraph (1), the declaration under this deposit an amount equal to such fines in a spe- subsection (e)(2); and paragraph shall include a certification that the cial account of the United States Trustee System ‘‘(iii) shall— bankruptcy petition preparer complied with the Fund referred to in section 586(e)(2) of title 28. ‘‘(I) be signed by— notification requirement under paragraph (1).’’; Amounts deposited under this paragraph shall ‘‘(aa) the debtor; and (D) by striking paragraph (3), as redesignated be available to fund the enforcement of this sec- ‘‘(bb) the bankruptcy petition preparer, under by subparagraph (A) of this paragraph, and in- tion on a national basis.’’. penalty of perjury; and serting the following: SEC. ø225.¿ 222. SENSE OF CONGRESS. ‘‘(II) be filed with any document for filing.’’; ‘‘(3)(A) The court shall disallow and order the It is the sense of Congress that States (3) in subsection (c)— immediate turnover to the bankruptcy trustee should develop curricula relating to the sub- (A) in paragraph (2)— any fee referred to in paragraph (2) found to be ject of personal finance, designed for use in (i) by striking ‘‘(2) For purposes’’ and insert- in excess of the value of any services— elementary and secondary schools. ing ‘‘(2)(A) Subject to subparagraph (B), for ‘‘(i) rendered by the preparer during the 12- SEC. ø226.¿ 223. ADDITIONAL AMENDMENTS TO purposes’’; and month period immediately preceding the date of TITLE 11, UNITED STATES CODE. (ii) by adding at the end the following: filing of the petition; or (a) IN GENERAL.—Section 507(a) of title 11, ‘‘(B) If a bankruptcy petition preparer is not ‘‘(ii) found to be in violation of any rule or United States Code, as amended by section an individual, the identifying number of the guideline promulgated or prescribed under para- ø211¿ 212 of this Act, is amended by inserting bankruptcy petition preparer shall be the Social graph (1). after paragraph (9) the following: Security account number of the officer, prin- ‘‘(B) All fees charged by a bankruptcy peti- ‘‘(10) Tenth, allowed claims for death or cipal, responsible person, or partner of the pre- tion preparer may be forfeited in any case in personal injuries resulting from the oper- parer.’’; and which the bankruptcy petition preparer fails to ation of a motor vehicle or vessel if such op- (B) by striking paragraph (3); comply with this subsection or subsection (b), eration was unlawful because the debtor was (4) in subsection (d)— (c), (d), (e), (f), or (g). intoxicated from using alcohol, a drug, or (A) by striking ‘‘(d)(1)’’ and inserting ‘‘(d)’’; ‘‘(C) An individual may exempt any funds re- another substance.’’. and covered under this paragraph under section (b) VESSELS.—Section 523(a)(9) of title 11, (B) by striking paragraph (2); 522(b).’’; and United States Code, is amended by inserting (5) in subsection (e)— (E) in paragraph (4), as redesignated by sub- ‘‘or vessel’’ after ‘‘vehicle’’. (A) by striking paragraph (2); and paragraph (A) of this paragraph, by striking SEC. 224. PROTECTION OF RETIREMENT SAVINGS (B) by adding at the end the following: ‘‘or the United States trustee’’ and inserting IN BANKRUPTCY. ‘‘(2)(A) A bankruptcy petition preparer may ‘‘the United States trustee, or the court, on the (a) IN GENERAL.—Section 522 of title 11, not offer a potential bankruptcy debtor any initiative of the court,’’; United States Code, as amended by section 215 legal advice, including any legal advice de- (9) in subsection (i)(1), by striking the matter of this Act, is amended— scribed in subparagraph (B). preceding subparagraph (A) and inserting the (1) in subsection (b)— ‘‘(B) The legal advice referred to in subpara- following: (A) in paragraph (2)— graph (A) includes advising the debtor— ‘‘(i) If a bankruptcy petition preparer violates (i) by striking ‘‘(2)(A) any property’’ and in- ‘‘(i) whether— this section or commits any act that the court serting: ‘‘(I) to file a petition under this title; or finds to be fraudulent, unfair, or deceptive, on ‘‘(3) Property listed in this paragraph is— ‘‘(II) commencing a case under chapter 7, 11, motion of the debtor, trustee, or United States ‘‘(A) any property’’; (ii) in subparagraph (A), by striking ‘‘and’’ at 12, or 13 is appropriate; trustee, and after the court holds a hearing with ‘‘(ii) whether the debtor’s debts will be elimi- the end; respect to that violation or act, the court shall (iii) in subparagraph (B), by striking the pe- nated or discharged in a case under this title; order the bankruptcy petition preparer to pay to ‘‘(iii) whether the debtor will be able to retain riod at the end and inserting ‘‘; and’’; and the debtor—’’; (iv) by adding at the end the following: the debtor’s home, car, or other property after (10) in subsection (j)— ‘‘(C) retirement funds to the extent that those commencing a case under this title; (A) in paragraph (2)— funds are in a fund or account that is exempt ‘‘(iv) concerning— (i) in subparagraph (A)(i)(I), by striking ‘‘a from taxation under section 401, 403, 408, 408A, ‘‘(I) the tax consequences of a case brought violation of which subjects a person to criminal 414, 457, or 501(a) of the Internal Revenue Code under this title; or penalty’’; of 1986.’’; ‘‘(II) the dischargeability of tax claims; (ii) in subparagraph (B)— (B) by striking paragraph (1) and inserting: ‘‘(v) whether the debtor may or should prom- (I) by striking ‘‘or has not paid a penalty’’ ‘‘(2) Property listed in this paragraph is prop- ise to repay debts to a creditor or enter into a re- and inserting ‘‘has not paid a penalty’’; and erty that is specified under subsection (d), un- affirmation agreement with a creditor to reaf- (II) by inserting ‘‘or failed to disgorge all fees less the State law that is applicable to the debt- firm a debt; ordered by the court’’ after ‘‘a penalty imposed or under paragraph (3)(A) specifically does not ‘‘(vi) concerning how to characterize the na- under this section,’’; so authorize.’’; ture of the debtor’s interests in property or the (B) by redesignating paragraph (3) as para- (C) in the matter preceding paragraph (2)— debtor’s debts; or graph (4); and (i) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; ‘‘(vii) concerning bankruptcy procedures and (C) by inserting after paragraph (2) the fol- (ii) by striking ‘‘paragraph (2)’’ both places it rights.’’; lowing: appears and inserting ‘‘paragraph (3)’’; (6) in subsection (f)— ‘‘(3) The court, as part of its contempt power, (iii) by striking ‘‘paragraph (1)’’ each place it (A) by striking ‘‘(f)(1)’’ and inserting ‘‘(f)’’; may enjoin a bankruptcy petition preparer that appears and inserting ‘‘paragraph (2)’’; and and has failed to comply with a previous order (iv) by striking ‘‘Such property is—’’; and (B) by striking paragraph (2); issued under this section. The injunction under (D) by adding at the end of the subsection the (7) in subsection (g)— this paragraph may be issued upon motion of following: (A) by striking ‘‘(g)(1)’’ and inserting ‘‘(g)’’; the court, the trustee, or the United States trust- ‘‘(4) For purposes of paragraph (3)(C) and and ee.’’; subsection (d)(12), the following shall apply: (B) by striking paragraph (2); and ‘‘(A) If the retirement funds are in a retire- (8) in subsection (h)— (11) by adding at the end the following: ment fund that has received a favorable deter- (A) by redesignating paragraphs (1) through ‘‘(l)(1) A bankruptcy petition preparer who mination pursuant to section 7805 of the Inter- (4) as paragraphs (2) through (5), respectively; fails to comply with any provision of subsection nal Revenue Code of 1986, and that determina- (B) by inserting before paragraph (2), as so re- (b), (c), (d), (e), (f), (g), or (h) may be fined not tion is in effect as of the date of the commence- designated, the following: more than $500 for each such failure. ment of the case under section 301, 302, or 303 of

VerDate 29-OCT-99 06:10 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00068 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.097 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13939 this title, those funds shall be presumed to be mental plan under section 414(d), or a contract was a debtor was pending within the pre- exempt from the estate. or account under section 403(b), of the Internal ceding 1-year period; ‘‘(B) If the retirement funds are in a retire- Revenue Code of 1986 constitutes a claim or a ‘‘(II) a previous case under any of chapter ment fund that has not received a favorable de- debt under this title.’’. 7, 11, or 13 in which the individual was a termination pursuant to such section 7805, those (c) EXCEPTIONS TO DISCHARGE.—Section debtor was dismissed within such 1-year pe- funds are exempt from the estate if the debtor 523(a) of title 11, United States Code, is riod, after the debtor failed to— demonstrates that— amended— ‘‘(aa) file or amend the petition or other ‘‘(i) no prior determination to the contrary (1) by striking ‘‘or’’ at the end of paragraph documents as required by this title or the has been made by a court or the Internal Rev- (17); court without substantial excuse (but mere enue Service; and (2) by striking the period at the end of para- inadvertence or negligence shall not be a ‘‘(ii)(I) the retirement fund is in substantial graph (18) and inserting ‘‘; or’’; and substantial excuse unless the dismissal was compliance with the applicable requirements of (3) by adding at the end the following: ‘‘(19) owed to a pension, profit-sharing, stock caused by the negligence of the debtor’s at- the Internal Revenue Code of 1986; or torney); ‘‘(II) the retirement fund fails to be in sub- bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(c) of the In- ‘‘(bb) provide adequate protection as or- stantial compliance with the applicable require- dered by the court; or ments of the Internal Revenue Code of 1986 and ternal Revenue Code of 1986, pursuant to— ‘‘(A) a loan permitted under section 408(b)(1) ‘‘(cc) perform the terms of a plan con- the debtor is not materially responsible for that firmed by the court; or failure. of the Employee Retirement Income Security Act of 1974, or subject to section 72(p) of the Inter- ‘‘(III) there has not been a substantial ‘‘(C) A direct transfer of retirement funds from change in the financial or personal affairs of 1 fund or account that is exempt from taxation nal Revenue Code of 1986; or ‘‘(B) a loan from the thrift savings plan de- the debtor since the dismissal of the next under section 401, 403, 408, 408A, 414, 457, or scribed in subchapter III of title 5, that satisfies most previous case under chapter 7, 11, or 13 501(a) of the Internal Revenue Code of 1986, the requirements of section 8433(g) of such title. øof this title¿, or any other reason to con- pursuant to section 401(a)(31) of the Internal Nothing in paragraph (19) may be construed to clude that the later case will be concluded— Revenue Code of 1986, or otherwise, shall not provide that any loan made under a govern- ‘‘(aa) if a case under chapter 7 øof this cease to qualify for exemption under paragraph mental plan under section 414(d), or a contract title¿, with a discharge; or (3)(C) or subsection (d)(12) by reason of that di- or account under section 403(b), of the Internal ‘‘(bb) if a case under chapter 11 or 13 øof rect transfer. Revenue Code of 1986 constitutes a claim or a this title¿, with a confirmed plan which will ‘‘(D)(i) Any distribution that qualifies as an debt under this title.’’ be fully performed; and eligible rollover distribution within the meaning (d) PLAN CONTENTS.—Section 1322 of title 11, ‘‘(ii) as to any creditor that commenced an of section 402(c) of the Internal Revenue Code of United States Code, is amended by adding at the action under subsection (d) in a previous 1986 or that is described in clause (ii) shall not end the following: case in which the individual was a debtor if, cease to qualify for exemption under paragraph ‘‘(f) A plan may not materially alter the terms as of the date of dismissal of such case, that (3)(C) or subsection (d)(12) by reason of that dis- of a loan described in section 362(b)(20).’’. action was still pending or had been resolved tribution. TITLE III—DISCOURAGING BANKRUPTCY by terminating, conditioning, or limiting the ‘‘(ii) A distribution described in this clause is ABUSE stay as to actions of such creditor; and an amount that— ‘‘(4)(A)(i) if a single or joint case is filed by ‘‘(I) has been distributed from a fund or ac- SEC. 301. REINFORCEMENT OF THE FRESH or against an individual debtor under this count that is exempt from taxation under sec- START. title, and if 2 or more single or joint cases of tion 401, 403, 408, 408A, 414, 457, or 501(a) of the Section 523(a)(17) of title 11, United States the debtor were pending within the previous Internal Revenue Code of 1986; and Code, is amended— ‘‘(II) to the extent allowed by law, is deposited (1) by striking ‘‘by a court’’ and inserting year but were dismissed, other than a case in such a fund or account not later than 60 days ‘‘on a prisoner by any court’’, refiled under section 707(b), the stay under after the distribution of that amount.’’; and (2) by striking ‘‘section 1915(b) or (f)’’ and subsection (a) shall not go into effect upon (2) in subsection (d)— inserting ‘‘subsection (b) or (f)(2) of section the filing of the later case; and (A) in the matter preceding paragraph (1), by 1915’’, and ‘‘(ii) on request of a party in interest, the striking ‘‘subsection (b)(1)’’ and inserting ‘‘sub- (3) by inserting ‘‘(or a similar non-Federal court shall promptly enter an order con- section (b)(2)’’; and law)’’ after ‘‘title 28’’ each place it appears. firming that no stay is in effect; (B) by adding at the end the following: SEC. 302. DISCOURAGING BAD FAITH REPEAT ‘‘(B) if, within 30 days after the filing of ‘‘(12) Retirement funds to the extent that FILINGS. the later case, a party in interest requests those funds are in a fund or account that is ex- Section 362(c) of title 11, United States the court may order the stay to take effect empt from taxation under section 401, 403, 408, Code, is amended— in the case as to any or all creditors (subject 408A, 414, 457, or 501(a) of the Internal Revenue (1) in paragraph (1), by striking ‘‘and’’ at to such conditions or limitations as the Code of 1986.’’. the end; court may impose), after notice and hearing, (b) AUTOMATIC STAY.—Section 362(b) of title (2) in paragraph (2), by striking the period only if the party in interest demonstrates 11, United States Code, as amended by section at the end and inserting a semicolon; and that the filing of the later case is in good 214 of this Act, is amended— (3) by adding at the end the following: faith as to the creditors to be stayed; (1) in paragraph (18), by striking ‘‘or’’ at the ‘‘(3) if a single or joint case is filed by or ‘‘(C) a stay imposed under subparagraph end; against an individual debtor under chapter 7, (B) shall be effective on the date of entry of (2) in paragraph (19), by striking the period 11, or 13, and if a single or joint case of the the order allowing the stay to go into effect; and inserting ‘‘; or’’; debtor was pending within the preceding 1- and (3) by inserting after paragraph (19) the fol- year period but was dismissed, other than a ‘‘(D) for purposes of subparagraph (B), a lowing: case refiled under a chapter other than chap- case is presumptively not filed in good faith ‘‘(20) under subsection (a), of withholding of ter 7 after dismissal under section 707(b)— (but such presumption may be rebutted by income from a debtor’s wages and collection of ‘‘(A) the stay under subsection (a) with re- clear and convincing evidence to the con- amounts withheld, pursuant to the debtor’s spect to any action taken with respect to a trary)— agreement authorizing that withholding and debt or property securing such debt or with ‘‘(i) as to all creditors if— collection for the benefit of a pension, profit- respect to any lease will terminate with re- ‘‘(I) 2 or more previous cases under this sharing, stock bonus, or other plan established spect to the debtor on the 30th day after the title in which the individual was a debtor under section 401, 403, 408, 408A, 414, 457, or filing of the later case; were pending within the 1-year period; 501(a) of the Internal Revenue Code of 1986 that ‘‘(B) upon motion by a party in interest for ‘‘(II) a previous case under this title in is sponsored by the employer of the debtor, or an continuation of the automatic stay and upon which the individual was a debtor was dis- affiliate, successor, or predecessor of such notice and a hearing, the court may extend missed within the time period stated in this employer— the stay in particular cases as to any or all paragraph after the debtor failed to file or ‘‘(A) to the extent that the amounts withheld creditors (subject to such conditions or limi- amend the petition or other documents as re- and collected are used solely for payments relat- tations as the court may then impose) after quired by this title or the court without sub- ing to a loan from a plan that satisfies the re- notice and a hearing completed before the stantial excuse (but mere inadvertence or quirements of section 408(b)(1) of the Employee expiration of the 30-day period only if the negligence shall not be substantial excuse Retirement Income Security Act of 1974 or is party in interest demonstrates that the fil- unless the dismissal was caused by the neg- subject to section 72(p) of the Internal Revenue ing of the later case is in good faith as to the ligence of the debtor’s attorney), failed to Code of 1986; or creditors to be stayed; and pay adequate protection as ordered by the ‘‘(B) in the case of a loan from a thrift sav- ‘‘(C) for purposes of subparagraph (B), a court, or failed to perform the terms of a ings plan described in subchapter III of title 5, case is presumptively filed not in good faith plan confirmed by the court; or that satisfies the requirements of section 8433(g) (but such presumption may be rebutted by ‘‘(III) there has not been a substantial of such title;’’; and clear and convincing evidence to the con- change in the financial or personal affairs of (4) by adding at the end of the flush material trary)— the debtor since the dismissal of the next at the end of the subsection, the following: ‘‘(i) as to all creditors, if— most previous case under this title, or any ‘‘Nothing in paragraph (20) may be construed to ‘‘(I) more than 1 previous case under any of other reason to conclude that the later case provide that any loan made under a govern- chapter 7, 11, or 13 in which the individual will not be concluded, if a case under chapter

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.097 pfrm12 PsN: S04PT1 S13940 CONGRESSIONAL RECORD — SENATE November 4, 1999 7, with a discharge, and if a case under chap- in whole or in part by an interest in that per- ‘‘(c) If the debtor fails timely to take the ter 11 or 13, with a confirmed plan that will sonal property unless, in the case of an indi- action specified in subsection (a)(6), or in be fully performed; or vidual debtor, the debtor within 45 days after paragraph (1) or (2) of section 362(h), with re- ‘‘(ii) as to any creditor that commenced an the first meeting of creditors under section spect to property which a lessor or bailor action under subsection (d) in a previous 341(a)— owns and has leased, rented, or bailed to the case in which the individual was a debtor if, ‘‘(A) enters into an agreement with the debtor or as to which a creditor holds a secu- as of the date of dismissal of such case, such creditor under section 524(c) with respect to rity interest not otherwise voidable under action was still pending or had been resolved the claim secured by such property; or section 522(f), 544, 545, 547, 548, or 549, nothing by terminating, conditioning, or limiting the ‘‘(B) redeems such property from the secu- in this title shall prevent or limit the oper- stay as to action of such creditor.’’. rity interest under section 722.’’; and ation of a provision in the underlying lease SEC. 303. CURBING ABUSIVE FILINGS. (C) by adding at the end the following: or agreement that has the effect of placing (a) IN GENERAL.—Section 362(d) of title 11, ‘‘(b) øIf the debtor¿ For purposes of sub- the debtor in default under that lease or United States Code, is amended— section (a)(6), if the debtor fails to so act with- agreement by reason of the occurrence, pend- (1) in paragraph (2), by striking ‘‘or’’ at the in the 45-day period specified in subsection ency, or existence of a proceeding under this end; (a)(6), the personal property affected shall no title or the insolvency of the debtor. Nothing (2) in paragraph (3), by striking the period longer be property of the estate, and the in this subsection shall be deemed to justify at the end and inserting ‘‘; or’’; and creditor may take whatever action as to limiting such a provision in any other cir- (3) by adding at the end the following: such property as is permitted by applicable cumstance.’’. ‘‘(4) with respect to a stay of an act against nonbankruptcy law, unless the court deter- SEC. 306. GIVING SECURED CREDITORS FAIR real property under subsection (a), by a cred- mines on the motion of the trustee, and after TREATMENT IN CHAPTER 13. itor whose claim is secured by an interest in notice and a hearing, that such property is of (a) IN GENERAL.—Section 1325(a)(5)(B)(i) of such real estate, if the court finds that the consequential value or benefit to the es- title 11, United States Code, is amended to filing of the bankruptcy petition was part of tate.’’; and read as follows: a scheme to delay, hinder, and defraud credi- (2) in section 722, by inserting ‘‘in full at ‘‘(i) the plan provides that— tors that involved either— the time of redemption’’ before the period at ‘‘(I) the holder of such claim retain the lien ‘‘(A) transfer of all or part ownership of, or the end. securing such claim until the earlier of— other interest in, the real property without SEC. 305. RELIEF FROM THE AUTOMATIC STAY ‘‘(aa) the payment of the underlying debt the consent of the secured creditor or court WHEN THE DEBTOR DOES NOT COM- determined under nonbankruptcy law; or PLETE INTENDED SURRENDER OF ‘‘(bb) discharge under section 1328; and approval; or CONSUMER DEBT COLLATERAL. ‘‘(B) multiple bankruptcy filings affecting Title 11, United States Code, is amended— ‘‘(II) if the case under this chapter is dis- the real property. (1) in section 362— missed or converted without completion of If recorded in compliance with applicable (A) in subsection (c), by striking ‘‘(e), and the plan, such lien shall also be retained by State laws governing notices of interests or (f)’’ and inserting ‘‘(e), (f), and (h)’’; and such holder to the extent recognized by ap- liens in real property, an order entered under (B) by redesignating subsection (h), as plicable nonbankruptcy law; and’’. this subsection shall be binding in any other amended by section 227 of this Act, as sub- (b) RESTORING THE FOUNDATION FOR SE- case under this title purporting to affect the section (j) and by inserting after subsection CURED CREDIT.—Section 1325(a) of title 11, real property filed not later than 2 years (g) the following: United States Code, is amended by adding at after that recording, except that a debtor in ‘‘(h)(1) Subject to paragraph (2), in an indi- the end the following flush sentence: a subsequent case may move for relief from vidual case under chapter 7, 11, or 13 the stay ‘‘For purposes of paragraph (5), section 506 such order based upon changed cir- provided by subsection (a) is terminated with shall not apply to a claim described in that cumstances or for good cause shown, after respect to property of the estate securing in paragraph if the debt that is the subject of notice and a hearing.’’. whole or in part a claim, or subject to an un- the claim was incurred within the 5-year pe- (b) AUTOMATIC STAY.—Section 362(b) of expired lease, if the debtor fails within the riod preceding the filing of the petition and title 11, United States Code, as amended by applicable period of time set by section the collateral for that debt consists of a section ø213¿ 224 of this Act, is amended— 521(a)(2) to— motor vehicle (as defined in section 30102 of (1) in paragraph (19), by striking ‘‘or’’ at ‘‘(A) file timely any statement of intention title 49) acquired for the personal use of the the end; required under section 521(a)(2) with respect debtor, or if collateral for that debt consists (2) in paragraph (20), by striking the period to that property or to indicate therein that of any other thing of value, if the debt was at the end; and the debtor— incurred during the 6-month period pre- (3) by inserting after paragraph (20) the fol- ‘‘(i) will either surrender the property or ceding that filing.’’. lowing: retain the property; and (c) DEFINITIONS.—Section 101 of title 11, ‘‘(21) under subsection (a), of any act to en- ‘‘(ii) if retaining the property, will, as United States Code, as amended by section force any lien against or security interest in applicable— ø221¿ 211 of this Act, is amended— real property following the entry of an order ‘‘(I) redeem the property under section 722; (1) by inserting after paragraph (13) the fol- under section 362(d)(4) as to that property in ‘‘(II) reaffirm the debt the property secures lowing: any prior bankruptcy case for a period of 2 under section 524(c); or ‘‘(13A) ‘debtor’s principal residence’— years after entry of such an order, except ‘‘(III) assume the unexpired lease under ‘‘(A) means a residential structure, includ- that the debtor, in a subsequent case, may section 365(p) if the trustee does not do so; or ing incidental property, without regard to move the court for relief from such order ‘‘(B) take timely the action specified in whether that structure is attached to real based upon changed circumstances or for that statement of intention, as the state- property; and other good cause shown, after notice and a ment may be amended before expiration of ‘‘(B) includes an individual condominium hearing; or the period for taking action, unless the or cooperative unit;’’; and ‘‘(22) under subsection (a), of any act to en- statement of intention specifies reaffirma- (2) by inserting after paragraph (27), the force any lien against or security interest in tion and the creditor refuses to reaffirm on following: real property— the original contract terms. ‘‘(27A) ‘incidental property’ means, with ‘‘(A) if the debtor is ineligible under sec- ‘‘(2) Paragraph (1) shall not apply if the respect to a debtor’s principal residence— tion 109(g) to be a debtor in a bankruptcy court determines on the motion of the trust- ‘‘(A) property commonly conveyed with a case; or ee, and after notice and a hearing, that such principal residence in the area where the real ‘‘(B) if the bankruptcy case was filed in property is of consequential value or benefit estate is located; violation of a bankruptcy court order in a to the estate.’’; and ‘‘(B) all easements, rights, appurtenances, prior bankruptcy case prohibiting the debtor (2) in section 521, as amended by section 304 fixtures, rents, royalties, mineral rights, oil from being a debtor in another bankruptcy of this Act— or gas rights or profits, water rights, escrow case.’’. (A) in subsection (a)(2), as redesignated by funds, or insurance proceeds; and SEC. 304. DEBTOR RETENTION OF PERSONAL section 105(d) of this Act— ‘‘(C) all replacements or additions;’’. PROPERTY SECURITY. (i) by striking ‘‘consumer’’; SEC. 307. EXEMPTIONS. Title 11, United States Code, is amended— (ii) in subparagraph (B)— Section ø522(b)(2)(A)¿ 522(b)(3)(A) of title (1) in section 521(a), as so redesignated by (I) by striking ‘‘forty-five days after the 11, United States Code, as so designated by section 105(d) of this Act— filing of a notice of intent under this sec- section 224 of this Act, is amended— (A) in paragraph (4), by striking ‘‘and’’ at tion’’ and inserting ‘‘30 days after the first (1) by striking ‘‘180’’ and inserting ‘‘730’’; the end; date set for the meeting of creditors under and (B) in paragraph (5), by striking the period section 341(a)’’; and (2) by striking ‘‘, or for a longer portion of at the end and inserting ‘‘; and’’; and (II) by striking ‘‘forty-five day period’’ and such 180-day period than in any other place’’. (C) by adding at the end the following: inserting ‘‘30-day period’’; and SEC. 308. RESIDENCY REQUIREMENT FOR HOME- ‘‘(6) in an individual case under chapter 7 (iii) in subparagraph (C), by inserting ‘‘ex- STEAD EXEMPTION. øof this title¿, not retain possession of per- cept as provided in section 362(h)’’ before the Section 522 of title 11, United States Code, sonal property as to which a creditor has an semicolon; and as amended by section 307 of this Act, is allowed claim for the purchase price secured (B) by adding at the end the following: amended—

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.097 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13941 (1) in subsection ø(b)(2)(A)¿ (b)(3)(A), by in- violated by notification of the debtor and ne- do so for so long as the debtor retains posses- serting ‘‘subject to subsection (n),’’ before gotiation of cure under this subsection. sion of such property.’’. ‘‘any property’’; and ‘‘(3) In a case under chapter 11 øof this ø(2) CLERICAL AMENDMENT.—The table of (2) by adding at the end the following: title¿ in which the debtor is an individual sections for chapter 13 of title 11, United ‘‘(n) For purposes of subsection ø(b)(2)(A)¿ and in a case under chapter 13 øof this title¿, States Code, is amended, in the matter relat- (b)(3)(A), and notwithstanding subsection (a), if the debtor is the lessee with respect to per- ing to subchapter I, by inserting after the the value of an interest in— sonal property and the lease is not assumed item relating to section 1307 the following: ‘‘(1) real or personal property that the in the plan confirmed by the court, the lease ø‘‘1308. Adequate protection in chapter 13 debtor or a dependent of the debtor uses as a is deemed rejected as of the conclusion of the cases.’’.¿ residence; hearing on confirmation. If the lease is re- (1) CONFIRMATION OF PLAN.—Section ‘‘(2) a cooperative that owns property that jected, the stay under section 362 and any 1325(a)(5)(B) of title 11, United States Code, is the debtor or a dependent of the debtor uses stay under section 1301 is automatically ter- amended— as a residence; or minated with respect to the property subject (A) in clause (i), by striking ‘‘and’’ at the end; ‘‘(3) a burial plot for the debtor or a de- to the lease.’’. (B) in clause (ii), by striking ‘‘or’’ at the end pendent of the debtor; (c) ADEQUATE PROTECTION OF LESSORS AND and inserting ‘‘and’’; and shall be reduced to the extent such value is PURCHASE MONEY SECURED CREDITORS.— (C) by adding at the end the following: attributable to any portion of any property ø(1) IN GENERAL.—Subchapter I of chapter ‘‘(iii) if— ‘‘(I) property to be distributed pursuant to that the debtor disposed of in the 730-day pe- 13 of title 11, United States Code, is amended this subsection is in the form of periodic pay- riod ending on the date of the filing of the by inserting after section 1307 the following: ments, such payments shall be in equal monthly petition, with the intent to hinder, delay, or ø‘‘§ 1308. Adequate protection in chapter 13 amounts; and defraud a creditor and that the debtor could cases ‘‘(II) the holder of the claim is secured by per- not exempt, or that portion that the debtor ø‘‘(a)(1)(A) On or before the date that is 30 sonal property the amount of such payments could not exempt, under subsection (b) if on days after the filing of a case under this shall not be less than an amount sufficient to such date the debtor had held the property so chapter, the debtor shall make cash pay- provide to the holder of such claim adequate disposed of.’’. ments in an amount determined under para- protection during the period of the plan; or’’. SEC. 309. PROTECTING SECURED CREDITORS IN graph (2), to— (2) PAYMENTS.—Section 1326(a) of title 11, CHAPTER 13 CASES. ø‘‘(i) any lessor of personal property; and United States Code, is amended to read as fol- (a) STOPPING ABUSIVE CONVERSIONS FROM ø‘‘(ii) any creditor holding a claim secured lows: CHAPTER 13.—Section 348(f)(1) of title 11, by personal property to the extent that the ‘‘(a)(1) Unless the court orders otherwise, the United States Code, is amended— claim is attributable to the purchase of that debtor shall— (1) in subparagraph (A), by striking ‘‘and’’ property by the debtor. ‘‘(A) commence making the payments pro- at the end; ø‘‘(B) The debtor or the plan shall continue posed by a plan within 30 days after the plan is (2) in subparagraph (B)— making the adequate protection payments filed; or (A) by striking ‘‘in the converted case, until the earlier of the date on which— ‘‘(B) if no plan is filed then as specified in the with allowed secured claims’’ and inserting ø‘‘(i) the creditor begins to receive actual proof of claim, within 30 days after the order for ‘‘only in a case converted to chapter 11 or 12 payments under the plan; or relief or within 15 days after the plan is filed, but not in a case converted to chapter 7, with ø‘‘(ii) the debtor relinquishes possession of whichever is earlier. allowed secured claims in cases under chap- the property referred to in subparagraph (A) ‘‘(2) A payment made under this section shall ters 11 and 12’’; and to— be retained by the trustee until confirmation, (B) by striking the period and inserting ‘‘; ø‘‘(I) the lessor or creditor; or denial of confirmation, or paid by the trustee as and’’; and ø‘‘(II) any third party acting under claim adequate protection payments in accordance (3) by adding at the end the following: of right. with paragraph (3). If a plan is confirmed, the ‘‘(C) with respect to cases converted from ø‘‘(2) The payments referred to in para- trustee shall distribute any such payment in ac- chapter 13— graph (1)(A) shall be the contract amount. cordance with the plan as soon as is practicable. ‘‘(i) the claim of any creditor holding secu- ø‘‘(b)(1) Subject to the limitations under If a plan is not confirmed, the trustee shall re- rity as of the date of the petition shall con- paragraph (2), the court may, after notice turn any such payments not previously paid to tinue to be secured by that security unless and hearing, change the amount, and timing creditors pursuant to paragraph (3) to the debt- the full amount of such claim determined of the dates of payment, of payments made or, after deducting any unpaid claim allowed under applicable nonbankruptcy law has under subsection (a). under section 503(b). been paid in full as of the date of conversion, ø‘‘(2)(A) The payments referred to in para- ‘‘(3)(A) As soon as is practicable, and not notwithstanding any valuation or deter- graph (1) shall be payable not less frequently later than 40 days after the filing of the case, mination of the amount of an allowed se- than monthly. the trustee shall— cured claim made for the purposes of the ø‘‘(B) The amount of payments referred to ‘‘(i) pay from payments made under this sec- chapter 13 proceeding; and in paragraph (1) shall not be less than the tion the adequate protection payments proposed ‘‘(ii) unless a prebankruptcy default has amount of any weekly, biweekly, monthly, in the plan; or been fully cured under the plan at the time or other periodic payment schedules as pay- ‘‘(ii) if no plan is filed then, according to the of conversion, in any proceeding under this able under the contract between the debtor terms of the proof of claim. title or otherwise, the default shall have the and creditor. ‘‘(B) The court may, upon notice and a hear- effect given under applicable nonbankruptcy ø‘‘(c) Notwithstanding section 1326(b), the ing, modify, increase, or reduce the payments law.’’. payments referred to in subsection (a)(1)(A) required under this paragraph pending con- (b) GIVING DEBTORS THE ABILITY TO KEEP shall be continued in addition to plan pay- firmation of a plan.’’. LEASED PERSONAL PROPERTY BY ASSUMP- ments under a confirmed plan until actual SEC. 310. LIMITATION ON LUXURY GOODS. TION.—Section 365 of title 11, United States payments to the creditor begin under that Section 523(a)(2)(C) of title 11, United Code, is amended by adding at the end the plan, if the confirmed plan provides for— States Code, is amended to read as follows: following: ø‘‘(1) payments to a creditor or lessor de- ‘‘(C)(i) for purposes of subparagraph (A)— ‘‘(p)(1) If a lease of personal property is re- scribed in subsection (a)(1); and ‘‘(I) consumer debts owed to a single cred- jected or not timely assumed by the trustee ø‘‘(2) the deferral of payments to such creditor and aggregating more than $250 for lux- under subsection (d), the leased property is itor or lessor under the plan until the pay- ury goods or services incurred by an indi- no longer property of the estate and the stay ment of amounts described in section 1326(b). vidual debtor on or within 90 days before the under section 362(a) is automatically termi- ø‘‘(d) Notwithstanding sections 362, 542, order for relief under this title are presumed nated. and 543, a lessor or creditor described in sub- to be nondischargeable; and ‘‘(2)(A) In the case of an individual under section (a) may retain possession of property ‘‘(II) cash advances aggregating more than chapter 7, the debtor may notify the creditor described in that subsection that was ob- $750 that are extensions of consumer credit in writing that the debtor desires to assume tained in accordance with applicable law be- under an open end credit plan obtained by an the lease. Upon being so notified, the cred- fore the date of filing of the petition until individual debtor on or within 70 days before itor may, at its option, notify the debtor the first payment under subsection (a)(1)(A) the order for relief under this title, are pre- that it is willing to have the lease assumed is received by the lessor or creditor. sumed to be nondischargeable; and by the debtor and may condition such as- ø‘‘(e) On or before the date that is 60 days ‘‘(ii) for purposes of this subparagraph— sumption on cure of any outstanding default after the filing of a case under this chapter, ‘‘(I) the term ‘extension of credit under an on terms set by the contract. a debtor retaining possession of personal open end credit plan’ means an extension of ‘‘(B) If within 30 days after notice is pro- property subject to a lease or securing a credit under an open end credit plan, within vided under subparagraph (A), the debtor no- claim attributable in whole or in part to the the meaning of the Consumer Credit Protec- tifies the lessor in writing that the lease is purchase price of such property shall provide tion Act (15 U.S.C. 1601 et seq.); assumed, the liability under the lease will be each creditor or lessor reasonable evidence ‘‘(II) the term ‘open end credit plan’ has assumed by the debtor and not by the estate. of the maintenance of any required insur- the meaning given that term under section ‘‘(C) The stay under section 362 and the in- ance coverage with respect to the use or 103 of Consumer Credit Protection Act (15 junction under section 524(a)(2) shall not be ownership of such property and continue to U.S.C. 1602); and

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.097 pfrm12 PsN: S04PT1 S13942 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(III) the term ‘luxury goods or services’ cluding a tractor or lawn tractor), boat, or a section 362(a) or failure to comply with sec- does not include goods or services reasonably motorized recreational device, conveyance, tion 542 or 543 may be imposed on any action necessary for the support or maintenance of vehicle, watercraft, or aircraft.’’. of the creditor unless the action takes place the debtor or a dependent of the debtor.’’. SEC. 314. DEBT INCURRED TO PAY NON- after the creditor has received notice of the SEC. 311. AUTOMATIC STAY. DISCHARGEABLE DEBTS. commencement of the case effective under Section 362(b) of title 11, United States Section 523(a) of title 11, United States this section.’’. Code, as amended by section 303(b) of this Code, is amended by inserting after para- (b) DEBTOR’S DUTIES.—Section 521 of title Act, is amended— graph (14) the following: 11, United States Code, as amended by section 305 of this Act, is amended— (1) in paragraph (21), by striking ‘‘or’’ at ‘‘(14A)(A) incurred to pay a debt that is (1) in subsection (a), by striking paragraph the end; nondischargeable by reason of section 727, (1) and inserting the following: (2) in paragraph (22), by striking the period 1141, 1228(a), 1228(b), or 1328(b), or any other ‘‘(1) file— at the end and inserting a semicolon; and provision of this subsection, if the debtor in- ‘‘(A) a list of creditors; and (3) by inserting after paragraph (22) the fol- curred the debt to pay such a nondischarge- ‘‘(B) unless the court orders otherwise— lowing: able debt with the intent to discharge in ‘‘(i) a schedule of assets and liabilities; ‘‘(23) under subsection (a)(3), of the con- bankruptcy the newly created debt; except ‘‘(ii) a schedule of current income and cur- tinuation of any eviction, unlawful detainer that rent expenditures; ‘‘(B) except that all debts incurred to action, or similar proceeding by a lessor ø ¿ ‘‘(iii) a statement of the debtor’s financial pay nondischargeable debts shall be pre- against a debtor involving residential real affairs and, if applicable, a certificate— sumed to be nondischargeable debts if in- property in which the debtor resides as a ‘‘(I) of an attorney whose name is on the curred within 70 days before the filing of the tenant under a rental agreement; petition as the attorney for the debtor or ‘‘(24) under subsection (a)(3), of the competition (except that, in any case in which any bankruptcy petition preparer signing mencement of any eviction, unlawful de- there is an allowed claim under section 502 the petition under section 110(b)(1) indi- tainer action, or similar proceeding by a les- for child support or spousal support entitled cating that such attorney or bankruptcy pe- sor against a debtor involving residential to priority under section 507(a)(1) and that tition preparer delivered to the debtor any real property in which the debtor resides as was filed in a timely manner, debts that notice required by section 342(b); or a tenant under a rental agreement that has would otherwise be presumed to be non- ‘‘(II) if no attorney for the debtor is indi- terminated under the lease agreement or ap- dischargeable debts by reason of this sub- cated and no bankruptcy petition preparer plicable State law; or paragraph shall be treated as dischargeable signed the petition, of the debtor that such ‘‘(25) under subsection (a)(3), of eviction ac- debts);’’. notice was obtained and read by the debtor; tions based on endangerment to property or (b) DISCHARGE UNDER CHAPTER 13. ‘‘(iv) copies of any Federal tax returns, in- person or the use of illegal drugs.’’. Section 1328(a) of title 11, United States cluding any schedules or attachments, filed SEC. 312. EXTENSION OF PERIOD BETWEEN Code, is amended by striking paragraphs (1) by the debtor for the 3-year period preceding BANKRUPTCY DISCHARGES. through (3) and inserting the following: the order for relief; Title 11, United States Code, is amended— ‘‘(1) provided for under section 1322(b)(5); ‘‘(v) copies of all payment advices or other (1) in section 727(a)(8), by striking ‘‘six’’ ‘‘(2) of the kind specified in paragraph (2), evidence of payment, if any, received by the and inserting ‘‘8’’; and (4), (3)(B), (5), (8), or (9) of section 523(a); debtor from any employer of the debtor in (2) in section 1328, by adding at the end the ‘‘(3) for restitution, or a criminal fine, in- the period 60 days before the filing of the pe- following: cluded in a sentence on the debtor’s convic- tition; ‘‘(f) Notwithstanding subsections (a) and tion of a crime; or ‘‘(vi) a statement of the amount of pro- (b), the court shall not grant a discharge of ‘‘(4) for restitution, or damages, awarded in jected monthly net income, itemized to show all debts provided for by the plan or dis- a civil action against the debtor as a result how the amount is calculated; and allowed under section 502 if the debtor has of willful or malicious injury by the debtor ‘‘(vii) a statement disclosing any reason- received a discharge in any case filed under that caused personal injury to an individual ably anticipated increase in income or ex- this title within 5 years before the order for or the death of an individual.’’. penditures over the 12-month period fol- relief under this chapter.’’. SEC. 315. GIVING CREDITORS FAIR NOTICE IN lowing the date of filing;’’; and SEC. 313. DEFINITION OF HOUSEHOLD GOODS CHAPTERS 7 AND 13 CASES. (2) by adding at the end the following: AND ANTIQUES. (a) NOTICE.—Section 342 of title 11, United ‘‘(d)(1) At any time, a creditor, in the case Section 522(f) of title 11, United States States Code, is amended— of an individual under chapter 7 or 13, may Code, is amended by adding at the end the (1) in subsection (c)— file with the court notice that the creditor following: (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and requests the petition, schedules, and a state- ‘‘(4)(A) Subject to subparagraph (B), for (B) by striking ‘‘, but the failure of such ment of affairs filed by the debtor in the case purposes of paragraph (1)(B), the term notice to contain such information shall not and the court shall make those documents ‘household goods’ means— invalidate the legal effect of such notice’’; available to the creditor who requests those ‘‘(i) clothing; and documents. ‘‘(ii) furniture; (2) by adding at the end the following: ‘‘(2)(A) At any time, a creditor in a case ‘‘(iii) appliances; ‘‘(d) At any time, a creditor, in a case of an under chapter 13 may file with the court no- ‘‘(iv) 1 radio; individual debtor under chapter 7 or 13, may tice that the creditor requests the plan filed by the debtor in the case. ‘‘(v) 1 television; file with the court and serve on the debtor a ‘‘(B) The court shall make such plan avail- ‘‘(vi) 1 VCR; notice of the address to be used to notify the able to the creditor who requests such plan— ‘‘(vii) linens; creditor in that case. Five days after receipt ‘‘(i) at a reasonable cost; and ‘‘(viii) china; of such notice, if the court or the debtor is ‘‘(ii) not later than 5 days after such re- ‘‘(ix) crockery; required to give the creditor notice, such no- quest. ‘‘(x) kitchenware; tice shall be given at that address. ‘‘(e) An individual debtor in a case under ‘‘(xi) educational materials and edu- ‘‘(e) An entity may file with the court a chapter 7 or 13 shall file with the court— cational equipment primarily for the use of notice stating its address for notice in cases ‘‘(1) at the time filed with the taxing au- minor dependent children of the debtor, but under chapters 7 and 13. After 30 days fol- thority, all tax returns, including any sched- only 1 personal computer only if used pri- lowing the filing of such notice, any notice ules or attachments, with respect to the pe- marily for the education or entertainment of in any case filed under chapter 7 or 13 given riod from the commencement of the case such minor children; by the court shall be to that address unless until such time as the case is closed; ‘‘(xii) medical equipment and supplies; specific notice is given under subsection (d) ‘‘(2) at the time filed with the taxing au- ‘‘(xiii) furniture exclusively for the use of with respect to a particular case. thority, all tax returns, including any sched- minor children, or elderly or disabled de- ‘‘(f)(1) Notice given to a creditor other ules or attachments, that were not filed with pendents of the debtor; and than as provided in this section shall not be the taxing authority when the schedules ‘‘(xiv) personal effects (including wedding effective notice until that notice has been under subsection (a)(1) were filed with re- rings and the toys and hobby equipment of brought to the attention of the creditor. If spect to the period that is 3 years before the minor dependent children) of the debtor and the creditor designates a person or depart- order for relief; the dependents of the debtor. ment to be responsible for receiving notices ‘‘(3) any amendments to any of the tax re- ‘‘(B) The term ‘household goods’ does not concerning bankruptcy cases and establishes turns, including schedules or attachments, include— reasonable procedures so that bankruptcy described in paragraph (1) or (2); and ‘‘(i) works of art (unless by or of the debtor notices received by the creditor are to be de- ‘‘(4) in a case under chapter 13, a statement or the dependents of the debtor); livered to such department or person, notice subject to the penalties of perjury by the ‘‘(ii) electronic entertainment equipment shall not be considered to have been brought debtor of the debtor’s income and expendi- (except 1 television, 1 radio, and 1 VCR); to the attention of the creditor until re- tures in the preceding tax year and monthly ‘‘(iii) items acquired as antiques; ceived by such person or department. income, that shows how the amounts are ‘‘(iv) jewelry (except wedding rings); and ‘‘(2) No sanction under section 362(h) or calculated— ‘‘(v) a computer (except as otherwise pro- any other sanction that a court may impose ‘‘(A) beginning on the date that is the later vided for in this section), motor vehicle (in- on account of violations of the stay under of 90 days after the close of the debtor’s tax

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.097 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13943 year or 1 year after the order for relief, un- SEC. 317. ADEQUATE TIME TO PREPARE FOR SEC. 321. TREATMENT OF CERTAIN EARNINGS OF less a plan has been confirmed; and HEARING ON CONFIRMATION OF AN INDIVIDUAL DEBTOR WHO FILES ‘‘(B) thereafter, on or before the date that THE PLAN. A VOLUNTARY CASE UNDER CHAP- TER 11. is 45 days before each anniversary of the con- (a) HEARING.—Section 1324 of title 11, Section 541(a)(6) of title 11, United States firmation of the plan until the case is closed. United States Code, is amended— Code, is amended by inserting ‘‘(other than an ‘‘(f)(1) A statement referred to in sub- (1) by striking ‘‘After’’ and inserting the following: individual debtor who, in accordance with sec- section (e)(4) shall disclose— tion 301, files a petition to commence a vol- ‘‘(A) the amount and sources of income of ‘‘(a) Except as provided in subsection (b) and after’’; and untary case under chapter 11)’’ after ‘‘indi- the debtor; vidual debtor’’. ‘‘(B) the identity of any person responsible (2) by adding at the end the following: TITLE IV—GENERAL AND SMALL with the debtor for the support of any de- ‘‘(b) The hearing on confirmation of the BUSINESS BANKRUPTCY PROVISIONS pendent of the debtor; and plan may be held not later than 45 days after ‘‘(C) the identity of any person who con- the meeting of creditors under section Subtitle A—General Business Bankruptcy tributed, and the amount contributed, to the 341(a).’’. Provisions household in which the debtor resides. (b) FILING OF PLAN.—Section 1321 of title SEC. 401. ROLLING STOCK EQUIPMENT. 11, United States Code, is amended to read as ‘‘(2) The tax returns, amendments, and (a) IN GENERAL.—Section 1168 of title 11, follows: statement of income and expenditures de- United States Code, is amended to read as scribed in paragraph (1) shall be available to ‘‘§ 1321. Filing of plan follows: the United States trustee, any bankruptcy ‘‘Not later than 90 days after the order for ‘‘§ 1168. Rolling stock equipment administrator, any trustee, and any party in relief under this chapter, the debtor shall file ‘‘(a)(1) The right of a secured party with a interest for inspection and copying, subject a plan, except that the court may extend security interest in or of a lessor or condi- to the requirements of subsection ø(f)¿ (g). such period if the need for an extension is at- tional vendor of equipment described in ‘‘(g)(1) Not later than 30 days after the date tributable to circumstances for which the paragraph (2) to take possession of such of enactment of the Bankruptcy Reform Act debtor should not justly be held account- equipment in compliance with an equipment of 1999, the Director of the Administrative able.’’. security agreement, lease, or conditional Office of the United States Courts shall es- SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR sale contract, and to enforce any of its other tablish procedures for safeguarding the con- DURATION IN CERTAIN CASES. rights or remedies under such security agree- fidentiality of any tax information required Section 1322(d) of title 11, United States ment, lease, or conditional sale contract, to to be provided under this section. Code, is amended to read as follows: sell, lease, or otherwise retain or dispose of such equipment, is not limited or otherwise ‘‘(2) The procedures under paragraph (1) ‘‘(d)(1) Except as provided in paragraph (2), the plan may not provide for payments over affected by any other provision of this title shall include restrictions on creditor access or by any power of the court, except that the to tax information that is required to be pro- a period that is longer than 3 years. ‘‘(2) The plan may provide for payments right to take possession and enforce those vided under this section. other rights and remedies shall be subject to over a period that is longer than 3 years if— ‘‘(3) Not later than 1 year after the date of section 362, if— ‘‘(A) the plan is for a case that was con- enactment of the Bankruptcy Reform Act of ‘‘(A) before the date that is 60 days after verted to a case under this chapter from a 1999, the Director of the Administrative Of- the date of commencement of a case under case under chapter 7, or the plan is for a debt- fice of the United States Courts shall prepare this chapter, the trustee, subject to the or who has been dismissed from chapter 7 by and submit to Congress a report that— court’s approval, agrees to perform all obli- reason of section 707(b), in which case the plan ‘‘(A) assesses the effectiveness of the proce- gations of the debtor under such security shall provide for payments over a period of 5 dures under paragraph (1); and agreement, lease, or conditional sale con- years; or ‘‘(B) if appropriate, includes proposed leg- tract; and ‘‘(B) the plan is for a case that is not de- islation to— ‘‘(B) any default, other than a default of a scribed in subparagraph (A), and the court, ‘‘(i) further protect the confidentiality of kind described in section 365(b)(2), under for cause, approves a period longer than 3 tax information; and such security agreement, lease, or condi- years, but not to exceed 5 years.’’. ‘‘(ii) provide penalties for the improper use tional sale contract that— by any person of the tax information re- SEC. 319. SENSE OF THE CONGRESS REGARDING ‘‘(i) occurs before the date of commence- quired to be provided under this section. EXPANSION OF RULE 9011 OF THE FEDERAL RULES OF BANKRUPTCY ment of the case and is an event of default ‘‘(h) If requested by the United States PROCEDURE. therewith is cured before the expiration of trustee or a trustee serving in the case, the It is the sense of Congress that Rule 9011 of such 60-day period; debtor shall provide— the Federal Rules of Bankruptcy Procedure ‘‘(ii) occurs or becomes an event of default ‘‘(1) a document that establishes the iden- (11 U.S.C. App.) should be modified to include after the date of commencement of the case tity of the debtor, including a driver’s li- a requirement that all documents (including and before the expiration of such 60-day pe- cense, passport, or other document that con- schedules), signed and unsigned, submitted riod is cured before the later of— tains a photograph of the debtor; and to the court or to a trustee by debtors who ‘‘(I) the date that is 30 days after the date ‘‘(2) such other personal identifying infor- represent themselves and debtors who are of the default or event of the default; or mation relating to the debtor that estab- represented by an attorney be submitted ‘‘(II) the expiration of such 60-day period; lishes the identity of the debtor.’’. only after the debtor or the debtor’s attor- and SEC. 316. DISMISSAL FOR FAILURE TO TIMELY ney has made reasonable inquiry to verify ‘‘(iii) occurs on or after the expiration of FILE SCHEDULES OR PROVIDE RE- that the information contained in such docu- such 60-day period is cured in accordance QUIRED INFORMATION. ments is— with the terms of such security agreement, Section 521 of title 11, United States Code, (1) well grounded in fact; and lease, or conditional sale contract, if cure is as amended by section 315 of this Act, is (2) warranted by existing law or a good- permitted under that agreement, lease, or amended by adding at the end the following: faith argument for the extension, modifica- conditional sale contract. ‘‘(2) The equipment described in this ‘‘(i)(1) Notwithstanding section 707(a), and tion, or reversal of existing law. subject to paragraph (2), if an individual paragraph— SEC. 320. PROMPT RELIEF FROM STAY IN INDI- ‘‘(A) is rolling stock equipment or acces- debtor in a voluntary case under chapter 7 or VIDUAL CASES. sories used on rolling stock equipment, in- 13 fails to file all of the information required Section 362(e) of title 11, United States under subsection (a)(1) within 45 days after cluding superstructures or racks, that is sub- Code, is amended— ject to a security interest granted by, leased the filing of the petition commencing the (1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and case, the case shall be automatically dis- to, or conditionally sold to a debtor; and (2) by adding at the end the following: ‘‘(B) includes all records and documents re- missed effective on the 46th day after the fil- ‘‘(2) Notwithstanding paragraph (1), in the ing of the petition. lating to such equipment that are required, case of an individual filing under chapter 7, under the terms of the security agreement, ‘‘(2) With respect to a case described in 11, or 13, the stay under subsection (a) shall lease, or conditional sale contract, to be sur- paragraph (1), any party in interest may re- terminate on the date that is 60 days after a rendered or returned by the debtor in con- quest the court to enter an order dismissing request is made by a party in interest under nection with the surrender or return of such the case. If requested, the court shall enter subsection (d), unless— equipment. an order of dismissal not later than 5 days ‘‘(A) a final decision is rendered by the ‘‘(3) Paragraph (1) applies to a secured after such request. court during the 60-day period beginning on party, lessor, or conditional vendor acting in ‘‘(3) Upon request of the debtor made with- the date of the request; or its own behalf or acting as trustee or other- in 45 days after the filing of the petition ‘‘(B) that 60-day period is extended— wise in behalf of another party. commencing a case described in paragraph ‘‘(i) by agreement of all parties in interest; ‘‘(b) The trustee and the secured party, les- (1), the court may allow the debtor an addi- or sor, or conditional vendor whose right to tional period of not to exceed 45 days to file ‘‘(ii) by the court for such specific period of take possession is protected under sub- the information required under subsection time as the court finds is required for good section (a) may agree, subject to the court’s (a)(1) if the court finds justification for ex- cause, as described in findings made by the approval, to extend the 60-day period speci- tending the period for the filing.’’. court.’’. fied in subsection (a)(1).

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.097 pfrm12 PsN: S04PT1 S13944 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(c)(1) In any case under this chapter, the ‘‘(3) The equipment described in this (1) in paragraph (24), by striking ‘‘or’’ at trustee shall immediately surrender and re- paragraph— the end; turn to a secured party, lessor, or condi- ‘‘(A) is— (2) in paragraph (25), by striking the period tional vendor, described in subsection (a)(1), ‘‘(i) an aircraft, aircraft engine, propeller, at the end and inserting ‘‘; or’’; and equipment described in subsection (a)(2), if appliance, or spare part (as defined in section (3) by inserting after paragraph (25) the fol- at any time after the date of commencement 40102 of title 49) that is subject to a security lowing: of the case under this chapter such secured interest granted by, leased to, or condi- ‘‘(26) under subsection (a), of— party, lessor, or conditional vendor is enti- tionally sold to a debtor that, at the time ‘‘(A) the commencement or continuation of tled under subsection (a)(1) to take posses- such transaction is entered into, holds an air an investigation or action by a securities self sion of such equipment and makes a written carrier operating certificate issued under regulatory organization to enforce such or- demand for such possession of the trustee. chapter 447 of title 49 for aircraft capable of ganization’s regulatory power; ‘‘(2) At such time as the trustee is required carrying 10 or more individuals or 6,000 ‘‘(B) the enforcement of an order or deci- under paragraph (1) to surrender and return pounds or more of cargo; or sion, other than for monetary sanctions, ob- equipment described in subsection (a)(2), any ‘‘(ii) a documented vessel (as defined in tained in an action by the securities self reg- lease of such equipment, and any security section 30101(1) of title 46) that is subject to ulatory organization to enforce such organi- agreement or conditional sale contract relat- a security interest granted by, leased to, or zation’s regulatory power; or ing to such equipment, if such security conditionally sold to a debtor that is a water ‘‘(C) any act taken by the securities self agreement or conditional sale contract is an carrier that, at the time such transaction is regulatory organization to delist, delete, or executory contract, shall be deemed re- entered into, holds a certificate of public refuse to permit quotation of any stock that jected. convenience and necessity or permit issued does not meet applicable regulatory require- ‘‘(d) With respect to equipment first placed by the Department of Transportation; and ments.’’. in service on or before October 22, 1994, for ‘‘(B) includes all records and documents re- purposes of this section— SEC. 403. MEETINGS OF CREDITORS AND EQUITY lating to such equipment that are required, SECURITY HOLDERS. ‘‘(1) the term ‘lease’ includes any written under the terms of the security agreement, agreement with respect to which the lessor Section 341 of title 11, United States Code, lease, or conditional sale contract, to be sur- is amended by adding at the end the fol- and the debtor, as lessee, have expressed in rendered or returned by the debtor in con- the agreement or in a substantially contem- lowing: nection with the surrender or return of such ‘‘(e) Notwithstanding subsections (a) and poraneous writing that the agreement is to equipment. be treated as a lease for Federal income tax (b), the court, on the request of a party in in- ‘‘(4) Paragraph (1) applies to a secured terest and after notice and a hearing, for purposes; and party, lessor, or conditional vendor acting in ‘‘(2) the term ‘security interest’ means a cause may order that the United States its own behalf or acting as trustee or other- trustee not convene a meeting of creditors or purchase-money equipment security inter- wise in behalf of another party. equity security holders if the debtor has filed est. ‘‘(b) The trustee and the secured party, les- ‘‘(e) With respect to equipment first placed sor, or conditional vendor whose right to a plan as to which the debtor solicited ac- in service after October 22, 1994, for purposes take possession is protected under sub- ceptances prior to the commencement of the of this section, the term ‘rolling stock equip- section (a) may agree, subject to the ap- case.’’. ment’ includes rolling stock equipment that proval of the court, to extend the 60-day pe- SEC. 404. PROTECTION OF REFINANCE OF SECU- is substantially rebuilt and accessories used riod specified in subsection (a)(1). RITY INTEREST. on such equipment.’’. ‘‘(c)(1) In any case under this chapter, the Subparagraphs (A), (B), and (C) of section (b) AIRCRAFT EQUIPMENT AND VESSELS.— trustee shall immediately surrender and re- 547(e)(2) of title 11, United States Code, are Section 1110 of title 11, United States Code, turn to a secured party, lessor, or condi- each amended by striking ‘‘10’’ each place it is amended to read as follows: tional vendor, described in subsection (a)(1), appears and inserting ‘‘30’’. ‘‘§ 1110. Aircraft equipment and vessels equipment described in subsection (a)(3), if SEC. 405. EXECUTORY CONTRACTS AND UNEX- ‘‘(a)(1) Except as provided in paragraph (2) at any time after the date of the order for re- PIRED LEASES. and subject to subsection (b), the right of a lief under this chapter such secured party, Section 365(d)(4) of title 11, United States secured party with a security interest in lessor, or conditional vendor is entitled Code, is amended to read as follows: equipment described in paragraph (3), or of a under subsection (a)(1) to take possession of ‘‘(4)(A) Subject to subparagraph (B), in any lessor or conditional vendor of such equip- such equipment and makes a written demand case under any chapter of this title, an unex- ment, to take possession of such equipment for such possession to the trustee. pired lease of nonresidential real property ‘‘(2) At such time as the trustee is required in compliance with a security agreement, under which the debtor is the lessee shall be under paragraph (1) to surrender and return lease, or conditional sale contract, and to en- deemed rejected and the trustee shall imme- equipment described in subsection (a)(3), any force any of its other rights or remedies, diately surrender that nonresidential real lease of such equipment, and any security property to the lessor if the trustee does not under such security agreement, lease, or con- agreement or conditional sale contract relat- ditional sale contract, to sell, lease, or oth- assume or reject the unexpired lease by the ing to such equipment, if such security earlier of— erwise retain or dispose of such equipment, agreement or conditional sale contract is an is not limited or otherwise affected by any ‘‘(i) the date that is 120 days after the date executory contract, shall be deemed re- of the order for relief; or other provision of this title or by any power jected. ‘‘(ii) the date of the entry of an order con- of the court. ‘‘(d) With respect to equipment first placed ‘‘(2) The right to take possession and to en- in service on or before October 22, 1994, for firming a plan. force the other rights and remedies described purposes of this section— ‘‘(B) The court may extend the period de- in paragraph (1) shall be subject to section ‘‘(1) the term ‘lease’ includes any written termined under subparagraph (A) only upon 362 if— agreement with respect to which the lessor a motion of the lessor.’’. ‘‘(A) before the date that is 60 days after and the debtor, as lessee, have expressed in SEC. 406. CREDITORS AND EQUITY SECURITY the date of the order for relief under this the agreement or in a substantially contem- HOLDERS COMMITTEES. chapter, the trustee, subject to the approval poraneous writing that the agreement is to Section 1102(a)(2) of title 11, United States of the court, agrees to perform all obliga- be treated as a lease for Federal income tax Code, is amended by inserting before the tions of the debtor under such security purposes; and first sentence the following: ‘‘On its own mo- agreement, lease, or conditional sale con- ‘‘(2) the term ‘security interest’ means a tion or on request of a party in interest, and tract; and purchase-money equipment security inter- after notice and hearing, the court may ‘‘(B) any default, other than a default of a est.’’. order a change in the membership of a committee appointed under this subsection, if kind specified in section 365(b)(2), under such SEC. 402. ADEQUATE PROTECTION FOR INVES- security agreement, lease, or conditional TORS. the court determines that the change is nec- sale contract that occurs— (a) DEFINITION.—Section 101 of title 11, essary to ensure adequate representation of ‘‘(i) before the date of the order is cured be- United States Code, as amended by section creditors or equity security holders.’’. fore the expiration of such 60-day period; 306(c) of this Act, is amended by inserting SEC. 407. AMENDMENT TO SECTION 546 OF TITLE ‘‘(ii) after the date of the order and before after paragraph (48) the following: 11, UNITED STATES CODE. the expiration of such 60-day period is cured ‘‘(48A) ‘securities self regulatory organiza- Section 546 of title 11, United States Code, before the later of— tion’ means either a securities association is amended— ‘‘(I) the date that is 30 days after the date registered with the Securities and Exchange (1) by redesignating the second subsection of the default; or Commission under section 15A of the Securi- designated as subsection (g) (as added by sec- ‘‘(II) the expiration of such 60-day period; ties Exchange Act of 1934 (15 U.S.C. 78o–3) or tion 222(a) of Public Law 103–394) as sub- and a national securities exchange registered section (i); and ‘‘(iii) on or after the expiration of such 60- with the Securities and Exchange Commis- (2) by adding at the end the following: day period is cured in compliance with the sion under section 6 of the Securities Ex- ‘‘(j)(1) Notwithstanding section 545 (2) and terms of such security agreement, lease, or change Act of 1934 (15 U.S.C. 78f);’’. (3), the trustee may not avoid a conditional sale contract, if a cure is per- (b) AUTOMATIC STAY.—Section 362(b) of warehouseman’s lien for storage, transpor- mitted under that agreement, lease, or con- title 11, United States Code, as amended by tation or other costs incidental to the stor- tract. section 311 of this Act, is amended— age and handling of goods.

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.097 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13945 ‘‘(2) The prohibition under paragraph (1) (1) by striking ‘‘dwelling’’ the first place it (3) by inserting after øsubparagraph (D)¿ shall be applied in a manner consistent with appears; clause (iv) the following: any applicable State statute that is similar (2) by striking ‘‘ownership or’’ and insert- ‘‘ø(E)¿ (v) with respect to a professional to section 7–209 of the Uniform Commercial ing ‘‘ownership,’’; person, whether the person is board certified Code.’’. (3) by striking ‘‘housing’’ the first place it or otherwise has demonstrated skill and ex- SEC. 408. LIMITATION. appears; and perience in the bankruptcy field;’’. Section 546(c)(1)(B) of title 11, United (4) by striking ‘‘but only’’ and all that fol- SEC. ø419.¿ 418. APPOINTMENT OF ELECTED States Code, is amended by striking ‘‘20’’ and lows through ‘‘but nothing in this para- TRUSTEE. inserting ‘‘45’’. graph’’ and inserting ‘‘or a lot in a home- Section 1104(b) of title 11, United States SEC. 409. AMENDMENT TO SECTION 330(a) OF owners association, for as long as the debtor Code, is amended— TITLE 11, UNITED STATES CODE. or the trustee has a legal, equitable, or (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and Section 330(a)(3) of title 11, United States possessory ownership interest in such unit, (2) by adding at the end the following: Code, is amended— such corporation, or such lot, and until such ‘‘(2)(A) If an eligible, disinterested trustee (1) by striking ‘‘(A) the; and inserting ‘‘(i) time as the debtor or trustee has surrendered is elected at a meeting of creditors under the’’; any legal, equitable or possessory interest in paragraph (1), the United States trustee (2) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’; such unit, such corporation, or such lot, but shall file a report certifying that election. (3) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’; nothing in this paragraph’’. ‘‘(B) Upon the filing of a report under sub- (4) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’; SEC. 415. CREDITOR REPRESENTATION AT FIRST paragraph (A)— (5) by striking ‘‘(E)’’ and inserting ‘‘(v)’’; MEETING OF CREDITORS. ‘‘(i) the trustee elected under paragraph (1) (6) in subparagraph (A), by inserting ‘‘to an Section 341(c) of title 11, United States shall be considered to have been selected and examiner, trustee under chapter 11, or pro- Code, is amended by inserting after the first appointed for purposes of this section; and fessional person’’ after ‘‘awarded’’; and sentence the following: ‘‘Notwithstanding ‘‘(ii) the service of any trustee appointed (7) by adding at the end the following: any local court rule, provision of a State under subsection (d) shall terminate. ‘‘(B) In determining the amount of reason- constitution, any other Federal or State law ‘‘(C) In the case of any dispute arising out able compensation to be awarded a trustee, of an election described in subparagraph (A), the court shall treat such compensation as a that is not a bankruptcy law, or other re- the court shall resolve the dispute.’’. commission based on the results achieved.’’. quirement that representation at the meeting of creditors under subsection (a) be by an SEC. 419. UTILITY SERVICE. SEC. 410. POSTPETITION DISCLOSURE AND SO- LICITATION. attorney, a creditor holding a consumer debt Section 366 of title 11, United States Code, is Section 1125 of title 11, United States Code, or any representative of the creditor (which amended— is amended by adding at the end the fol- may include an entity or an employee of an (1) in subsection (a), by striking ‘‘subsection lowing: entity and may be a representative for more (b)’’ and inserting ‘‘subsections (b) and (c)’’; ‘‘(g) Notwithstanding subsection (b), an ac- than 1 creditor) shall be permitted to appear and ceptance or rejection of the plan may be so- at and participate in the meeting of credi- (2) by adding at the end the following: licited from a holder of a claim or interest if tors in a case under chapter 7 or 13, either ‘‘(c)(1)(A) For purposes of this subsection, the such solicitation complies with applicable alone or in conjunction with an attorney for term ‘assurance of payment’ means— nonbankruptcy law and if such holder was the creditor. Nothing in this subsection shall ‘‘(i) a cash deposit; solicited before the commencement of the be construed to require any creditor to be ‘‘(ii) a letter of credit; case in a manner complying with applicable represented by an attorney at any meeting ‘‘(iii) a certificate of deposit; nonbankruptcy law.’’. of creditors.’’. ‘‘(iv) a surety bond; SEC. 411. PREFERENCES. øSEC. 416. ELIMINATION OF CERTAIN FEES PAY- ‘‘(v) a prepayment of utility consumption; or Section 547(c) of title 11, United States ABLE IN CHAPTER 11 BANKRUPTCY ‘‘(vi) another form of security that is mutually Code, is amended— CASES. agreed on between the utility and the debtor or (1) by striking paragraph (2) and inserting ø(a) AMENDMENTS.—Section 1930(a)(6) of the trustee. the following: title 28, United States Code, is amended— ‘‘(B) For purposes of this subsection an ad- ‘‘(2) to the extent that such transfer was in ø(1) in the first sentence by striking ‘‘until ministrative expense priority shall not constitute payment of a debt incurred by the debtor in the case is converted or dismissed, whichever an assurance of payment. the ordinary course of business or financial occurs first’’; and ‘‘(2) Subject to paragraphs (3) through (5), affairs of the debtor and the transferee, and ø(2) in the second sentence— with respect to a case filed under chapter 11, a such transfer was— ø(A) by striking ‘‘The’’ and inserting utility referred to in subsection (a) may alter, ‘‘(A) made in the ordinary course of busi- ‘‘Until the plan is confirmed or the case is refuse, or discontinue utility service, if during ness or financial affairs of the debtor and the converted (whichever occurs first) the’’; and the 20-day period beginning on the date of filing transferee; or ø(B) by striking ‘‘less than $300,000;’’ and of the petition, the utility does not receive from ‘‘(B) made according to ordinary business inserting ‘‘less than $300,000. Until the case is the debtor or the trustee adequate assurance of terms;’’; converted, dismissed, or closed (whichever payment for utility service that is satisfactory to (2) in paragraph (7) by striking ‘‘or’’ at the occurs first and without regard to confirma- the utility. end; tion of the plan) the fee shall be’’. ‘‘(3)(A) On request of a party in interest and (3) in paragraph (8) by striking the period ø(b) DELAYED EFFECTIVE DATE.—The after notice and a hearing, the court may order at the end and inserting ‘‘; or’’; and amendments made by subsection (a) shall modification of the amount of an assurance of (4) by adding at the end the following: take effect on October 1, 1999. payment under paragraph (2). ‘‘(9) if, in a case filed by a debtor whose SEC. ø417.¿ 416. DEFINITION OF DISINTERESTED ‘‘(B) In making a determination under this debts are not primarily consumer debts, the PERSON. paragraph whether an assurance of payment is aggregate value of all property that con- Section 101(14) of title 11, United States adequate, the court may not consider— stitutes or is affected by such transfer is less Code, is amended to read as follows: ‘‘(i) the absence of security before the date of than $5,000.’’. ‘‘(14) ‘disinterested person’ means a person filing of the petition; SEC. 412. VENUE OF CERTAIN PROCEEDINGS. that— ‘‘(ii) the payment by the debtor of charges for Section 1409(b) of title 28, United States ‘‘(A) is not a creditor, an equity security utility service in a timely manner before the date Code, is amended by inserting ‘‘, or a non- holder, or an insider; of filing of the petition; or consumer debt against a noninsider of less ‘‘(B) is not and was not, within 2 years be- ‘‘(iii) the availability of an administrative ex- than $10,000,’’ after ‘‘$5,000’’. fore the date of the filing of the petition, a pense priority. SEC. 413. PERIOD FOR FILING PLAN UNDER director, officer, or employee of the debtor; ‘‘(4) Notwithstanding any other provision of CHAPTER 11. and law, with respect to a case subject to this sub- Section 1121(d) of title 11, United States ‘‘(C) does not have an interest materially section, a utility may recover or set off against Code, is amended— adverse to the interest of the estate or of a security deposit provided to the utility by the (1) by striking ‘‘On’’ and inserting ‘‘(1) any class of creditors or equity security debtor before the date of filing of the petition Subject to paragraph (1), on’’; and holders, by reason of any direct or indirect without notice or order of the court.’’. (2) by adding at the end the following: relationship to, connection with, or interest Subtitle B—Small Business Bankruptcy ‘‘(2)(A) The 120-day period specified in Provisions paragraph (1) may not be extended beyond a in, the debtor, or for any other reason;’’. date that is 18 months after the date of the SEC. ø418.¿ 417. FACTORS FOR COMPENSATION OF SEC. 421. FLEXIBLE RULES FOR DISCLOSURE order for relief under this chapter. PROFESSIONAL PERSONS. STATEMENT AND PLAN. ‘‘(B) The 180-day period specified in para- Section 330(a)(3)(A) of title 11, United Section 1125 of title 11, United States Code, graph (1) may not be extended beyond a date States Code, as amended by section 409 of this is amended by striking subsection (f) and in- that is 20 months after the date of the order Act, is amended— serting the following: for relief under this chapter.’’. (1) in øsubparagraph (D)¿ clause (i), by ‘‘(f) Notwithstanding subsection (b), in a SEC. 414. FEES ARISING FROM CERTAIN OWNER- striking ‘‘and’’ at the end; small business case— SHIP INTERESTS. (2) by redesignating øsubparagraph (E)¿ ‘‘(1) in determining whether a disclosure Section 523(a)(16) of title 11, United States clause (v) as øsubparagraph (F)¿ clause (vi); statement provides adequate information, Code, is amended— and the court shall consider the complexity of

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 pfrm13 PsN: S04PT1 S13946 CONGRESSIONAL RECORD — SENATE November 4, 1999 the case, the benefit of additional informa- (1) the reasonable needs of the courts, the to understand the small business debtor’s fi- tion to creditors and other parties in inter- United States trustee, creditors, and other nancial condition and plan the small busi- est, and the cost of providing additional in- parties in interest for reasonably complete ness debtor’s future. formation; information; and SEC. 426. DUTIES IN SMALL BUSINESS CASES. ‘‘(2) the court may determine that the plan (2) economy and simplicity for debtors. (a) DUTIES IN CHAPTER 11 CASES.—Title 11, itself provides adequate information and SEC. 424. UNIFORM NATIONAL REPORTING RE- United States Code, is amended by inserting that a separate disclosure statement is not QUIREMENTS. after section 1114 the following: necessary; (a) REPORTING REQUIRED.— ‘‘(3) the court may approve a disclosure (1) IN GENERAL.—Chapter 3 of title 11, ‘‘§ 1115. Duties of trustee or debtor in posses- statement submitted on standard forms ap- United States Code, is amended by inserting sion in small business cases after section 307 the following: proved by the court or adopted under section ‘‘In a small business case, a trustee or the 2075 of title 28; and ‘‘§ 308. Debtor reporting requirements debtor in possession, in addition to the du- ‘‘(4)(A) the court may conditionally ap- ‘‘(1) For purposes of this section, the term ties provided in this title and as otherwise prove a disclosure statement subject to final ‘profitability’ means, with respect to a debt- required by law, shall— approval after notice and a hearing; or, the amount of money that the debtor has ‘‘(1) append to the voluntary petition or, in ‘‘(B) acceptances and rejections of a plan earned or lost during current and recent fis- an involuntary case, file within 3 days after may be solicited based on a conditionally ap- cal periods. the date of the order for relief— proved disclosure statement if the debtor ‘‘(2) A small business debtor shall file peri- ‘‘(A) its most recent balance sheet, state- provides adequate information to each hold- odic financial and other reports containing ment of operations, cash-flow statement, er of a claim or interest that is solicited, but information including— Federal income tax return; or a conditionally approved disclosure state- ‘‘(A) the debtor’s profitability; ‘‘(B) a statement made under penalty of ment shall be mailed not later than 20 days ‘‘(B) reasonable approximations of the perjury that no balance sheet, statement of before the date of the hearing on confirma- debtor’s projected cash receipts and cash dis- operations, or cash-flow statement has been tion of the plan; and bursements over a reasonable period; prepared and no Federal tax return has been ‘‘(C) the hearing on the disclosure state- ‘‘(C) comparisons of actual cash receipts filed; ment may be combined with the hearing on and disbursements with projections in prior ‘‘(2) attend, through its senior manage- confirmation of a plan.’’. reports; ment personnel and counsel, meetings sched- SEC. 422. DEFINITIONS; EFFECT OF DISCHARGE. ‘‘(D)(i) whether the debtor is— uled by the court or the United States trust- (a) DEFINITIONS.—Section 101 of title 11, ‘‘(I) in compliance in all material respects ee, including initial debtor interviews, United States Code, as amended by section 402 with postpetition requirements imposed by scheduling conferences, and meetings of of this Act, is amended by striking paragraph this title and the Federal Rules of Bank- creditors convened under section 341 unless (51C) and inserting the following: ruptcy Procedure; and the court waives that requirement after no- ‘‘(51C) ‘small business case’ means a case ‘‘(II) timely filing tax returns and paying tice and hearing, upon a finding of extraor- filed under chapter 11 of this title in which taxes and other administrative claims when dinary and compelling circumstances; the debtor is a small business debtor; due; and ‘‘(3) timely file all schedules and state- ‘‘(51D) ‘small business debtor’— ‘‘(ii) if the debtor is not in compliance with ments of financial affairs, unless the court, ‘‘(A) subject to subparagraph (B), means a the requirements referred to in clause (i)(I) after notice and a hearing, grants an exten- person (including any affiliate of such person or filing tax returns and making the pay- sion, which shall not extend such time period that is also a debtor under this title) that ments referred to in clause (i)(II), what the to a date later than 30 days after the date of has aggregate noncontingent, liquidated se- failures are and how, at what cost, and when the order for relief, absent extraordinary and cured and unsecured debts as of the date of the debtor intends to remedy such failures; compelling circumstances; the petition or the order for relief in an and ‘‘(4) file all postpetition financial and amount not more than $4,000,000 (excluding ‘‘(iii) such other matters as are in the best other reports required by the Federal Rules debts owed to 1 or more affiliates or insiders) interests of the debtor and creditors, and in of Bankruptcy Procedure or by local rule of for a case in which the United States trustee the public interest in fair and efficient pro- the district court; has appointed under section 1102(a)(1) a com- cedures under chapter 11 of this title.’’. ‘‘(5) subject to section 363(c)(2), maintain mittee of unsecured creditors that the court (2) CLERICAL AMENDMENT.—The table of insurance customary and appropriate to the has determined is sufficiently active and rep- sections for chapter 3 of title 11, United industry; resentative to provide effective oversight of States Code, is amended by inserting after ‘‘(6)(A) timely file tax returns; the debtor; and the item relating to section 307 the fol- ‘‘(B) subject to section 363(c)(2), timely pay ‘‘(B) does not include any member of a lowing: all administrative expense tax claims, except group of affiliated debtors that has aggre- ‘‘308. Debtor reporting requirements.’’. those being contested by appropriate pro- gate noncontingent liquidated secured and (b) EFFECTIVE DATE.—The amendments ceedings being diligently prosecuted; and unsecured debts in an amount greater than made by subsection (a) shall take effect 60 ‘‘(C) subject to section 363(c)(2), establish 1 $4,000,000 (excluding debt owed to 1 or more days after the date on which rules are pre- or more separate deposit accounts not later affiliates or insiders);’’. scribed under section 2075 of title 28, United than 10 business days after the date of order ø(b) EFFECT OF DISCHARGE.—Section 524 of States Code, to establish forms to be used to for relief (or as soon thereafter as possible if comply with section 308 of title 11, United title 11, United States Code, as amended by all banks contacted decline the business) and States Code, as added by subsection (a). section 204 of this Act, is amended by adding deposit therein, not later than 1 business day at the end the following: SEC. 425. UNIFORM REPORTING RULES AND after receipt thereof, all taxes payable for ø‘‘(j)(1) An individual who is injured by the FORMS FOR SMALL BUSINESS periods beginning after the date the case is willful failure of a creditor to substantially CASES. commenced that are collected or withheld by comply with the requirements specified in (a) PROPOSAL OF RULES AND FORMS.—The subsections (c) and (d), or by any willful vio- Advisory Committee on Bankruptcy Rules of the debtor for governmental units, unless lation of the injunction operating under sub- the Judicial Conference of the United States the court waives that requirement after no- section (a)(2), shall be entitled to recover— shall propose for adoption amended Federal tice and hearing, upon a finding of extraordinary and compelling circumstances; and ø‘‘(A) the greater of— Rules of Bankruptcy Procedure and Official ‘‘(7) allow the United States trustee, or a ø‘‘(i) the amount of actual damages; or Bankruptcy Forms to be used by small busi- designated representative of the United ø‘‘(ii) $1,000; and ness debtors to file periodic financial and States trustee, to inspect the debtor’s busi- ø‘‘(B) costs and attorneys’ fees. other reports containing information, in- ø‘‘(2) An action to recover for a violation cluding information relating to— ness premises, books, and records at reason- specified in paragraph (1) may not be (1) the debtor’s profitability; able times, after reasonable prior written no- brought as a class action.’’. (2) the debtor’s cash receipts and disburse- tice, unless notice is waived by the debtor.’’. ø(c)¿ (b) CONFORMING AMENDMENT.—Section ments; and (b) TECHNICAL AMENDMENT.—The table of 1102(a)(3) of title 11, United States Code, is (3) whether the debtor is timely filing tax sections for chapter 11, United States Code, amended by inserting ‘‘debtor’’ after ‘‘small returns and paying taxes and other adminis- is amended by inserting after the item relat- business’’. trative claims when due. ing to section 1114 the following: SEC. 423. STANDARD FORM DISCLOSURE STATE- (b) PURPOSE.—The rules and forms pro- ‘‘1115. Duties of trustee or debtor in posses- posed under subsection (a) shall be designed MENT AND PLAN. sion in small business cases.’’. Within a reasonable period of time after to achieve a practical balance among— the date of the enactment of this Act, the (1) the reasonable needs of the bankruptcy SEC. 427. PLAN FILING AND CONFIRMATION Advisory Committee on Bankruptcy Rules of court, the United States trustee, creditors, DEADLINES. the Judicial Conference of the United States and other parties in interest for reasonably Section 1121 of title 11, United States Code, shall propose for adoption standard form dis- complete information; is amended by striking subsection (e) and in- closure statements and plans of reorganiza- (2) the small business debtor’s interest serting the following: tion for small business debtors (as defined in that required reports be easy and inexpen- ‘‘(e) In a small business case— section 101 of title 11, United States Code, as sive to complete; and ‘‘(1) only the debtor may file a plan until amended by this Act), designed to achieve a (3) the interest of all parties that the re- after 90 days after the date of the order for practical balance between— quired reports help the small business debtor relief, unless that period is —

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13947 ‘‘(A) shortened on request of a party in in- verify that the debtor has filed its tax re- tice and a hearing, the court shall convert a terest made during the 90-day period; turns; and case under this chapter to a case under chap- ‘‘(B) extended as provided by this sub- ‘‘(C) review and monitor diligently the ter 7 or dismiss a case under this chapter, section, after notice and hearing; or debtor’s activities, to identify as promptly whichever is in the best interest of creditors ‘‘(C) the court, for cause, orders otherwise; as possible whether the debtor will be unable and the estate, if the movant establishes ‘‘(2) the plan, and any necessary disclosure to confirm a plan; and cause. statement, shall be filed not later than 90 ‘‘(8) in any case in which the United States ‘‘(2) The relief provided in paragraph (1) days after the date of the order for relief; trustee finds material grounds for any relief shall not be granted if the debtor or another and under section 1112 of title 11, the United party in interest objects and establishes by a ‘‘(3) the time periods specified in para- States trustee shall apply promptly after preponderance of the evidence that— graphs (1) and (2), and the time fixed in sec- making that finding to the court for relief.’’. ‘‘(A) it is more likely than not that a plan tion 1129(e), within which the plan shall be SEC. 431. SCHEDULING CONFERENCES. will be confirmed within— confirmed, may be extended only if— Section 105(d) of title 11, United States ‘‘(i) a period of time fixed under this title ‘‘(A) the debtor, after providing notice to Code, as amended by section 429 of this Act, or by order of the court entered under sec- parties in interest (including the United is amended— tion 1121(e)(3); or States trustee), demonstrates by a prepon- (1) in the matter preceding paragraph (1), ‘‘(ii) a reasonable period of time if no pe- derance of the evidence that it is more likely by striking riod of time has been fixed; and than not that the court will confirm a plan ‘‘, may’’; ‘‘(B) if the reason is an act or omission of within a reasonable period of time; (2) by striking paragraph (1) and inserting the debtor that— ‘‘(B) a new deadline is imposed at the time the following: ‘‘(i) there exists a reasonable justification the extension is granted; and ‘‘(1) shall hold such status conferences as for the act or omission; and ‘‘(C) the order extending time is signed be- are necessary to further the expeditious and ‘‘(ii)(I) the act or omission will be cured fore the existing deadline has expired.’’. economical resolution of the case; and’’; and within a reasonable period of time fixed by SEC. 428. PLAN CONFIRMATION DEADLINE. (3) in paragraph (2), by striking ‘‘unless in- the court, but not to exceed 30 days after the Section 1129 of title 11, United States Code, consistent with another provision of this court decides the motion, unless the movant is amended by adding at the end the fol- title or with applicable Federal Rules of expressly consents to a continuance for a specific period of time; or lowing: Bankruptcy Procedure,’’ øand inserting ‘‘(II) compelling circumstances beyond the ‘‘(e) In a small business case, the plan shall ‘‘may’’¿. be confirmed not later than 150 days after control of the debtor justify an extension. SEC. 432. SERIAL FILER PROVISIONS. ‘‘(3) The court shall commence the hearing the date of the order for relief, unless such Section 362 of title 11, United States Code, on any motion under this subsection not 150-day period is extended as provided in sec- is amended— later than 30 days after filing of the motion, tion 1121(e)(3).’’. (1) in subsection (j), as redesignated by sec- and shall decide the motion within 15 days SEC. 429. PROHIBITION AGAINST EXTENSION OF tion 305(1) of this Act— after commencement of the hearing, unless TIME. (A) by striking ‘‘An’’ and inserting ‘‘(1) Ex- the movant expressly consents to a continu- Section 105(d) of title 11, United States cept as provided in paragraph (2), an’’; and ance for a specific period of time or compel- Code, is amended— (B) by adding at the end the following: ling circumstances prevent the court from (1) in paragraph (1), by striking ‘‘and’’ at ‘‘(2) If such violation is based on an action meeting the time limits established by this the end; taken by an entity in the good faith belief paragraph. (2) in paragraph (2)ø(B)(vi)¿, by striking that subsection (h) applies to the debtor, the ‘‘(4) For purposes of this subsection, cause the period at the end and inserting ‘‘; and’’; recovery under paragraph (1) against such includes— and entity shall be limited to actual damages.’’; ‘‘(A) substantial or continuing loss to or (3) by adding at the end the following: and diminution of the estate; ‘‘(3) in a small business case, not extend (2) by inserting after subsection (j)ø, as ‘‘(B) gross mismanagement of the estate; the time periods specified in sections 1121(e) added by section 419 of this Act,¿ the fol- ‘‘(C) failure to maintain appropriate insur- and 1129(e), except as provided in section lowing: ance; 1121(e)(3).’’. ‘‘(k)(1) Except as provided in paragraph (2), ‘‘(D) unauthorized use of cash collateral SEC. 430. DUTIES OF THE UNITED STATES TRUST- the filing of a petition under chapter 11 øof harmful to 1 or more creditors; EE. this title¿ operates as a stay of the acts de- ‘‘(E) failure to comply with an order of the Section 586(a) of title 28, United States scribed in subsection (a) only in an involun- court; Code, is amended— tary case involving no collusion by the debt- ‘‘(F) failure timely to satisfy any filing or (1) in paragraph (3)— or with creditors and in which the debtor— reporting requirement established by this (A) in subparagraph (G), by striking ‘‘and’’ ‘‘(A) is a debtor in a small business case title or by any rule applicable to a case at the end; pending at the time the petition is filed; under this chapter; (B) by redesignating subparagraph (H) as ‘‘(B) was a debtor in a small business case ‘‘(G) failure to attend the meeting of credi- subparagraph (I); and that was dismissed for any reason by an tors convened under section 341(a) or an ex- (C) by inserting after subparagraph (G) the order that became final in the 2-year period amination ordered under Rule 2004 of the following: ending on the date of the order for relief en- Federal Rules of Bankruptcy Procedure; ‘‘(H) in small business cases (as defined in tered with respect to the petition; ‘‘(H) failure timely to provide information section 101 of title 11), performing the addi- ‘‘(C) was a debtor in a small business case or attend meetings reasonably requested by tional duties specified in title 11 pertaining in which a plan was confirmed in the 2-year the United States trustee; to such cases;’’; period ending on the date of the order for re- ‘‘(I) failure timely to pay taxes due after (2) in paragraph (5), by striking ‘‘and’’ at lief entered with respect to the petition; or the date of the order for relief or to file tax the end; ‘‘(D) is an entity that has succeeded to sub- returns due after the order for relief; (3) in paragraph (6), by striking the period stantially all of the assets or business of a ‘‘(J) failure to file a disclosure statement, at the end and inserting ‘‘; and’’; and small business debtor described in subpara- or to file or confirm a plan, within the time (4) by inserting after paragraph (6) the fol- graph (A), (B), or (C). fixed by this title or by order of the court; lowing: ‘‘(2) Paragraph (1) does not apply to the fil- ‘‘(K) failure to pay any fees or charges re- ‘‘(7) in each of such small business cases— ing of a petition if the debtor proves by a quired under chapter 123 of title 28; ‘‘(A) conduct an initial debtor interview as preponderance of the evidence that— ‘‘(L) revocation of an order of confirmation soon as practicable after the entry of order ‘‘(A) the filing of that petition resulted under section 1144; for relief but before the first meeting sched- from circumstances beyond the control of ‘‘(M) inability to effectuate substantial uled under section 341(a) of title 11, at which the debtor not foreseeable at the time the consummation of a confirmed plan; time the United States trustee shall— case then pending was filed; and ‘‘(N) material default by the debtor with ‘‘(i) begin to investigate the debtor’s via- ‘‘(B) it is more likely than not that the respect to a confirmed plan; and bility; court will confirm a feasible plan, but not a ‘‘(O) termination of a plan by reason of the ‘‘(ii) inquire about the debtor’s business liquidating plan, within a reasonable period occurrence of a condition specified in the plan; of time.’’. plan. ‘‘(iii) explain the debtor’s obligations to SEC. 433. EXPANDED GROUNDS FOR DISMISSAL ‘‘(5) The court shall commence the hearing file monthly operating reports and other re- OR CONVERSION AND APPOINT- on any motion under this subsection not quired reports; MENT OF TRUSTEE. later than 30 days after filing of the motion, ‘‘(iv) attempt to develop an agreed sched- (a) EXPANDED GROUNDS FOR DISMISSAL OR and shall decide the motion within 15 days uling order; and CONVERSION.—Section 1112 of title 11, United after commencement of the hearing, unless ‘‘(v) inform the debtor of other obligations; States Code, is amended by striking sub- the movant expressly consents to a continu- ‘‘(B) if determined to be appropriate and section (b) and inserting the following: ance for a specific period of time or compel- advisable, visit the appropriate business ‘‘(b)(1) Except as provided in paragraph (2), ling circumstances prevent the court from premises of the debtor and ascertain the in subsection (c), and section 1104(a)(3), on meeting the time limits established by this state of the debtor’s books and records and request of a party in interest, and after no- paragraph.’’.

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 pfrm13 PsN: S04PT1 S13948 CONGRESSIONAL RECORD — SENATE November 4, 1999

(b) ADDITIONAL GROUNDS FOR APPOINTMENT (2) by inserting ‘‘559, 560,’’ after ‘‘557,’’. (3) by adding at the end the following: OF TRUSTEE.—Section 1104(a) of title 11, TITLE VI—IMPROVED BANKRUPTCY ‘‘(4) the debtor has failed to explain United States Code, is amended— STATISTICS AND DATA satisfactorily— (1) in paragraph (1), by striking ‘‘or’’ at the ‘‘(A) a material misstatement in an audit SEC. 601. AUDIT PROCEDURES. end; performed under section 586(f) of title 28; or (a) AMENDMENTS.—Section 586 of title 28, (2) in paragraph (2), by striking the period ‘‘(B) a failure to make available for inspec- United States Code, is amended— at the end and inserting ‘‘; or’’; and tion all necessary accounts, papers, docu- (1) in subsection (a), by striking paragraph (3) by adding at the end the following: ments, financial records, files, and any other (6) and inserting the following: ‘‘(3) if grounds exist to convert or dismiss papers, things, or property belonging to the ‘‘(6) make such reports as the Attorney the case under section 1112, but the court de- debtor that are requested for an audit con- General directs, including the results of au- termines that the appointment of a trustee ducted under section 586(f).’’. dits performed under subsection (f); and’’; is in the best interests of creditors and the (d) EFFECTIVE DATE.—The amendments and estate.’’. made by this section shall take effect 18 (2) by adding at the end the following: months after the date of enactment of this SEC. 434. STUDY OF OPERATION OF TITLE 11, ‘‘(f)(1)(A) The Attorney General shall es- UNITED STATES CODE, WITH RE- Act. SPECT TO SMALL BUSINESSES. tablish procedures to determine the accu- SEC. 602. IMPROVED BANKRUPTCY STATISTICS. Not later than 2 years after the date of the racy, veracity, and completeness of peti- (a) AMENDMENT.—Chapter 6 of title 28, enactment of this Act, the Administrator of tions, schedules, and other information United States Code, is amended by adding at the Small Business Administration, in con- which the debtor is required to provide under the end the following: sultation with the Attorney General of the sections 521 and 1322 of title 11, and, if appli- ‘‘§ 159. Bankruptcy statistics cable, section 111 of title 11, in individual United States, the Director of the Adminis- ‘‘(a) The clerk of each district court shall cases filed under chapter 7 or 13 of such title. trative Office of United States Trustees, and compile statistics regarding individual debt- ‘‘(B) Those procedures shall— the Director of the Administrative Office of ors with primarily consumer debts seeking ‘‘(i) establish a method of selecting appro- the United States Courts, shall— relief under chapters 7, 11, and 13 of title 11. priate qualified persons to contract to per- (1) conduct a study to determine— Those statistics shall be in a form prescribed (A) the internal and external factors that form those audits; by the Director of the Administrative Office cause small businesses, especially sole pro- ‘‘(ii) establish a method of randomly se- of the United States Courts (referred to in prietorships, to become debtors in cases lecting cases to be audited, except that not this section as the ‘Office’). under title 11, United States Code, and that less than 1 out of every 250 cases in each Fed- ‘‘(b) The Director shall— cause certain small businesses to success- eral judicial district shall be selected for ‘‘(1) compile the statistics referred to in fully complete cases under chapter 11 of such audit; subsection (a); title; and ‘‘(iii) require audits for schedules of in- ‘‘(2) make the statistics available to the (B) how Federal laws relating to bank- come and expenses which reflect greater public; and ruptcy may be made more effective and effi- than average variances from the statistical ‘‘(3) not later than October 31, 1999, and an- cient in assisting small businesses to remain norm of the district in which the schedules nually thereafter, prepare, and submit to viable; and were filed if those variances occur by reason Congress a report concerning the informa- (2) submit to the President pro tempore of of higher income or higher expenses than the tion collected under subsection (a) that con- the Senate and the Speaker of the House of statistical norm of the ødisctrict¿ district in tains an analysis of the information. Representatives a report summarizing that which the schedules were filed; and ‘‘(c) The compilation required under sub- study. ‘‘(iv) include procedures for providing, not section (b) shall— less frequently than annually, public infor- ‘‘(1) be itemized, by chapter, with respect SEC. 435. PAYMENT OF INTEREST. mation concerning the aggregate results of to title 11; Section 362(d)(3) of title 11, United States the audits referred to in this subparagraph, ‘‘(2) be presented in the aggregate and for Code, is amended— including the percentage of cases, by dis- each district; and (1) by inserting ‘‘or 30 days after the court trict, in which a material misstatement of ‘‘(3) include information concerning— determines that the debtor is subject to this income or expenditures is reported. ‘‘(A) the total assets and total liabilities of paragraph, whichever is later’’ after ‘‘90-day ‘‘(2) The United States trustee for each dis- the debtors described in subsection (a), and period)’’; and trict may contract with auditors to perform in each category of assets and liabilities, as (2) by striking subparagraph (B) and insert- audits in cases designated by the United reported in the schedules prescribed under ing the following: States trustee according to the procedures section 2075 and filed by those debtors; ‘‘(B) the debtor has commenced monthly established under paragraph (1). ‘‘(B) the total current monthly income, payments that— ‘‘(3)(A) The report of each audit conducted projected monthly net income, and average ‘‘(i) may, in the debtor’s sole discretion, under this subsection shall be filed with the income, and average expenses of those debt- notwithstanding section 363(c)(2), be made court and transmitted to the United States ors as reported on the schedules and state- from rents or other income generated before trustee. Each report shall clearly and con- ments that each such debtor files under sec- or after the commencement of the case by or spicuously specify any material tions 111, 521, and 1322 of title 11; from the property to each creditor whose misstatement of income or expenditures or ‘‘(C) the aggregate amount of debt dis- claim is secured by such real estate (other of assets identified by the person performing charged in the reporting period, determined than a claim secured by a judgment lien or the audit. In any case where a material as the difference between the total amount by an unmatured statutory lien); and misstatement of income or expenditures or of debt and obligations of a debtor reported ‘‘(ii) are in an amount equal to interest at of assets has been reported, the clerk of the on the schedules and the amount of such the then applicable nondefault contract rate bankruptcy court shall give notice of the debt reported in categories which are pre- of interest on the value of the creditor’s in- misstatement to the creditors in the case. dominantly nondischargeable; terest in the real estate; or’’. ‘‘(B) If a material misstatement of income ‘‘(D) the average period of time between TITLE V—MUNICIPAL BANKRUPTCY or expenditures or of assets is reported, the the filing of the petition and the closing of PROVISIONS United States trustee shall— the case; SEC. 501. PETITION AND PROCEEDINGS RELATED ‘‘(i) report the material misstatement, if ‘‘(E) for the reporting period— TO PETITION. appropriate, to the United States Attorney ‘‘(i) the number of cases in which a reaffir- (a) TECHNICAL AMENDMENT RELATING TO under section 3057 of title 18; and mation was filed; and MUNICIPALITIES.—Section 921(d) of title 11, ‘‘(ii) if advisable, take appropriate action, ‘‘(ii)(I) the total number of reaffirmations United States Code, is amended by inserting including commencing an adversary pro- filed; ‘‘, notwithstanding section 301(b)’’ before the ceeding to revoke the debtor’s discharge ‘‘(II) of those cases in which a reaffirma- period at the end. under section 727(d) of title 11.’’. tion was filed, the number in which the debt- (b) CONFORMING AMENDMENT.—Section 301 (b) AMENDMENTS TO SECTION 521 OF TITLE or was not represented by an attorney; and of title 11, United States Code, is amended— 11, UNITED STATES CODE.—Paragraphs (3) and ‘‘(III) of the cases under each of subclauses (1) by inserting ‘‘(a)’’ before ‘‘A vol- (4) of section 521(a) of title 11, United States (I) and (II), the number of cases in which the untary’’; øand¿ Code, as amended by section 315 of this Act, reaffirmation was approved by the court; (2) by striking the last sentence; and øin- are each amended by inserting ‘‘or an audi- ‘‘(F) with respect to cases filed under chap- serting the following:¿ tor appointed under section 586 of title 28’’ ter 13 of title 11, for the reporting period— (3) by adding at the end the following: after ‘‘serving in the case’’ each place that ‘‘(i)(I) the number of cases in which a final ‘‘(b) The commencement of a voluntary term appears. order was entered determining the value of case under a chapter of this title constitutes (c) AMENDMENTS TO SECTION 727 OF TITLE property securing a claim in an amount less an order for relief under such chapter.’’. 11, UNITED STATES CODE.—Section 727(d) of than the amount of the claim; and SEC. 502. APPLICABILITY OF OTHER SECTIONS title 11, United States Code, is amended— ‘‘(II) the number of final orders deter- TO CHAPTER 9. (1) in paragraph (2), by striking ‘‘or’’ at the mining the value of property securing a Section ø901¿ 901(a) of title 11, United end; claim issued; States Code, is amended— (2) in paragraph (3), by striking the period ‘‘(ii) the number of cases dismissed for fail- (1) by inserting ‘‘555, 556,’’ after ‘‘553,’’; and at the end and inserting ‘‘; or’’; and ure to make payments under the plan; and

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13949 ‘‘(iii) the number of cases in which the ‘‘(3) The information described in para- (2) in subsection (b)(2), by inserting ‘‘(ex- debtor filed another case during the 6-year graphs (1) and (2) shall be in addition to such cept that such expenses, other than claims period preceding the date of filing; other matters as are required by law for a for wages, salaries, or commissions which ‘‘(G) the number of cases in which credi- final report or as the Attorney General, in arise after the filing of a petition, shall be tors were fined for misconduct and any the discretion of the Attorney General, may limited to expenses incurred under chapter 7 amount of punitive damages awarded by the propose for a final report. of this title and shall not include expenses court for creditor misconduct; and ‘‘(e)(1) Periodic reports proposed for adop- incurred under chapter 11 of this title)’’ after ‘‘(H) the number of cases in which sanction by trustees or debtors in possession ‘‘507(a)(1)’’; and tions under Rule 9011 of the Federal Rules of under chapter 11 of title 11 shall include— (3) by adding at the end the following: Bankruptcy Procedure were imposed against ‘‘(A) information about the standard indus- ‘‘(e) Before subordinating a tax lien on real debtor’s counsel and damages awarded under try classification, published by the Depart- or personal property of the estate, the trust- such rule.’’. ment of Commerce, for the businesses con- ee shall— (b) CLERICAL AMENDMENT.—The table of ducted by the debtor; ‘‘(1) exhaust the unencumbered assets of sections for chapter 6 of title 28, United ‘‘(B) the length of time the case has been the estate; and States Code, is amended by adding at the end pending; ‘‘(2) in a manner consistent with section the following: ‘‘(C) the number of full-time employees— 506(c), recover from property securing an al- ‘‘159. Bankruptcy statistics.’’. ‘‘(i) as of the date of the order for relief; lowed secured claim the reasonable, nec- and (c) EFFECTIVE DATE.—The amendments essary costs, and expenses of preserving or ‘‘(ii) at the end of each reporting period made by this section shall take effect 18 disposing of that property. since the case was filed; months after the date of enactment of this ‘‘(f) Notwithstanding the exclusion of ad ‘‘(D) cash receipts, cash disbursements, and Act. valorem tax liens under this section and sub- profitability of the debtor for the most reject to the requirements of subsection (e), SEC. 603. UNIFORM RULES FOR THE COLLECTION cent period and cumulatively since the date OF BANKRUPTCY DATA. the following may be paid from property of of the order for relief; (a) AMENDMENT.—Chapter 39 of title 28, the estate which secures a tax lien, or the ‘‘(E) compliance with title 11, whether or United States Code, is amended by inserting proceeds of such property: not tax returns and tax payments since the after section 589a the following: ‘‘(1) Claims for wages, salaries, and com- date of the order for relief have been timely missions that are entitled to priority under ‘‘§ 589b. Bankruptcy data filed and made; section 507(a)(3). ‘‘(a) Within a reasonable period of time ‘‘(F) all professional fees approved by the ‘‘(2) Claims for contributions to an em- after the effective date of this section, the court in the case for the most recent period ployee benefit plan entitled to priority under Attorney General of the United States shall and cumulatively since the date of the order section 507(a)(4).’’. issue rules requiring uniform forms for (and for relief (separately reported, for the profes- from time to time thereafter to appro- sional fees incurred by or on behalf of the (b) DETERMINATION OF TAX LIABILITY.—Sec- priately modify and approve)— debtor, between those that would have been tion 505(a)(2) of title 11, United States Code, ‘‘(1) final reports by trustees in cases under incurred absent a bankruptcy case and those is amended— chapters 7, 12, and 13 of title 11; and that would not have been so incurred); and (1) in subparagraph (A), by striking ‘‘or’’ at ‘‘(2) periodic reports by debtors in posses- ‘‘(G) plans of reorganization filed and con- the end; sion or trustees, as the case may be, in cases firmed and, with respect thereto, by class, (2) in subparagraph (B), by striking the pe- under chapter 11 of title 11. the recoveries of the holders, expressed in riod at the end and inserting ‘‘; or’’; and ‘‘(b) Each report referred to in subsection aggregate dollar values and, in the case of (3) by adding at the end the following: (a) shall be designed (and the requirements claims, as a percentage of total claims of the ‘‘(C) the amount or legality of any amount as to place and manner of filing shall be es- class allowed. arising in connection with an ad valorem tax tablished) so as to facilitate compilation of ‘‘(2) The information described in para- on real or personal property of the estate, if data and maximum practicable access of the graph (1) shall be in addition to such other the applicable period for contesting or rede- public, by— matters as are required by law for a periodic termining that amount under any law (other ‘‘(1) physical inspection at 1 or more cen- report or as the Attorney General, in the dis- than a bankruptcy law) has expired.’’. tral filing locations; and cretion of the Attorney General, may pro- SEC. 702. EFFECTIVE NOTICE TO GOVERNMENT. ‘‘(2) electronic access through the Internet pose for a periodic report.’’. (a) EFFECTIVE NOTICE TO GOVERNMENTAL or other appropriate media. (b) TECHNICAL AMENDMENT.—The table of UNITS.—Section 342 of title 11, United States ‘‘(c)(1) The information required to be filed sections for chapter 39 of title 28, United Code, as amended by section 315(a) of this in the reports referred to in subsection (b) States Code, is amended by adding at the end Act, is amended by adding at the end the fol- shall be information that is— the following: lowing: ‘‘(A) in the best interests of debtors and ‘‘589b. Bankruptcy data.’’. ‘‘(g)(1) If a debtor lists a governmental unit creditors, and in the public interest; and SEC. 604. SENSE OF CONGRESS REGARDING as a creditor in a list or schedule, any notice ‘‘(B) reasonable and adequate information AVAILABILITY OF BANKRUPTCY required to be given by the debtor under this to evaluate the efficiency and practicality of DATA. title, applicable rule, other provision of law, the Federal bankruptcy system. It is the sense of Congress that— ‘‘(2) In issuing rules proposing the forms or order of the court, shall identify the de- (1) it should be the national policy of the partment, agency, or instrumentality referred to in subsection (a), the Attorney United States that all data held by bank- General shall strike the best achievable through which the debtor is indebted. ruptcy clerks in electronic form, to the ex- ‘‘(2) The debtor shall identify (with infor- practical balance between— tent such data reflects only public records ‘‘(A) the reasonable needs of the public for mation such as a taxpayer identification (as defined in section 107 of title 11, United number, loan, account or contract number, information about the operational results of States Code), should be released in a usable the Federal bankruptcy system; and or real estate parcel number, if applicable), electronic form in bulk to the public subject and describe the underlying basis for the ‘‘(B) economy, simplicity, and lack of to such appropriate privacy concerns and undue burden on persons with a duty to file claim of the governmental unit. safeguards as the Judicial Conference of the ‘‘(3) If the liability of the debtor to a gov- reports. United States may determine; and ‘‘(d)(1) Final reports proposed for adoption ernmental unit arises from a debt or obliga- (2) there should be established a bank- by trustees under chapters 7, 12, and 13 of tion owed or incurred by another individual, title 11 shall include with respect to a case ruptcy data system in which— entity, or organization, or under a different under such title, by appropriate category— (A) a single set of data definitions and name, the debtor shall identify that indi- ‘‘(A) information about the length of time forms are used to collect data nationwide; vidual, entity, organization, or name. the case was pending; and ‘‘(h) The clerk shall keep and update on a ‘‘(B) assets abandoned; (B) data for any particular bankruptcy quarterly basis, in such form and manner as ‘‘(C) assets exempted; case are aggregated in the same electronic the Director of the Administrative Office of ‘‘(D) receipts and disbursements of the es- record. the United States Courts prescribes, a reg- tate; TITLE VII—BANKRUPTCY TAX ister in which a governmental unit may des- ‘‘(E) expenses of administration; PROVISIONS ignate or redesignate a mailing address for ‘‘(F) claims asserted; SEC. 701. TREATMENT OF CERTAIN LIENS. service of notice in cases pending in the dis- ‘‘(G) claims allowed; and (a) TREATMENT OF CERTAIN LIENS.—Section trict. The clerk shall make such register ‘‘(H) distributions to claimants and claims 724 of title 11, United States Code, is available to debtors.’’. discharged without payment. amended— (b) ADOPTION OF RULES PROVIDING NO- ‘‘(2) In cases under chapters 12 and 13 of (1) in subsection (b), in the matter pre- TICE.— title 11, final reports proposed for adoption ceding paragraph (1), by inserting ‘‘(other (1) IN GENERAL.—Within a reasonable pe- by trustees shall include— than to the extent that there is a properly riod of time after the date of enactment of ‘‘(A) the date of confirmation of the plan; perfected unavoidable tax lien arising in con- this Act, the Advisory Committee on Bank- ‘‘(B) each modification to the plan; and nection with an ad valorem tax on real or ruptcy Rules of the Judicial Conference shall ‘‘(C) defaults by the debtor in performance personal property of the estate)’’ after propose for adoption enhanced rules for pro- under the plan. ‘‘under this title’’; viding notice to Federal, State, and local

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 pfrm13 PsN: S04PT1 S13950 CONGRESSIONAL RECORD — SENATE November 4, 1999 government units that have regulatory au- minimum rate of interest shall be a percent- (1) in subparagraph (C), by striking ‘‘or’’ at thority over the debtor or that may be credi- age equal to the sum of— the end; tors in the debtor’s case. ‘‘(i) 3; plus (2) in subparagraph (D), by striking the pe- (2) PERSONS NOTIFIED.—The rules proposed ‘‘(ii) the Federal short-term rate rounded riod at the end and inserting ‘‘; or’’; and under paragraph (1) shall be reasonably cal- to the nearest full percent, determined under (3) by adding at the end the following: culated to ensure that notice will reach the section 1274(d) of the Internal Revenue Code ‘‘(E) the appeal of a decision by a court or representatives of the governmental unit (or of 1986. administrative tribunal which determines a subdivision thereof) who will be the appro- ‘‘(B) In the case of any claim for Federal tax liability of the debtor (without regard to priate persons authorized to act upon the no- income taxes, the minimum rate of interest whether such determination was made tice. shall be subject to any adjustment that may prepetition or postpetition).’’. (3) RULES REQUIRED.—At a minimum, the be required under section 6621(d) of the Inter- SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAP- rules under paragraph (1) should require that nal Revenue Code of 1986. TER 11 CASES. the debtor— ‘‘(C) In the case of taxes paid under a con- Section 1129(a)(9) of title 11, United States (A) identify in the schedules and the no- firmed plan or reorganization under this Code, is amended— tice, the subdivision, agency, or entity with title, the minimum rate of interest shall be (1) in subparagraph (B), by striking ‘‘and’’ respect to which such notice should be re- determined as of the calendar month in at the end; and ceived; which the plan is confirmed.’’. (2) in subparagraph (C), by striking ‘‘de- (B) provide sufficient information (such as (b) CLERICAL AMENDMENT.—The table of ferred cash payments, over a period not ex- case captions, permit numbers, taxpayer sections for chapter 5 of title 11, United ceeding six years after the date of assess- identification numbers, or similar identi- States Code, is amended by inserting after ment of such claim,’’ and all that follows fying information) to permit the govern- the item relating to section 510 the fol- through the end of the subparagraph, and in- mental unit (or subdivision thereof) entitled lowing: serting ‘‘regular installment payments— to receive such notice to identify the debtor ‘‘511. Rate of interest on tax claims.’’. ‘‘(i) of a total value, as of the effective date or the person or entity on behalf of which of the claim, equal to the allowed amount of the debtor is providing notice in any case in SEC. 705. TOLLING OF PRIORITY OF TAX CLAIM TIME PERIODS. such claim in cash, but in no case with a bal- which— Section 507(a)(8)(A) of title 11, United loon payment; and (i) the debtor may be a successor in inter- States Code, øas redesignated by section 212 ‘‘(ii) beginning not later than the effective est; or of this Act,¿ is amended— date of the plan and ending on the earlier (ii) may not be the same entity as the enti- (1) in clause (i), by inserting before the of— ty that incurred the debt or obligation; and semicolon at the end, the following: ‘‘, plus ‘‘(I) the date that is 5 years after the date (C) identify, in appropriate schedules, any time during which the stay of proof the filing of the petition; or served together with the notice— ceedings was in effect in a prior case under ‘‘(II) the last date payments are to be made (i) the property with respect to which the this title, plus 6 months’’; and under the plan to unsecured creditors; and’’; claim or regulatory obligation may have (2) by striking clause (ii) and inserting the and arisen, if applicable; following: (3) by adding at the end the following: (ii) the nature of such claim or regulatory ‘‘(ii) assessed within 240 days before the ‘‘(D) with respect to a secured claim which obligation; and date of the filing of the petition, exclusive would otherwise meet the description on an (iii) the purpose for which notice is being of— unsecured claim of a governmental unit given. ‘‘(I) any time during which an offer in com- under section 507(a)(8), but for the secured (c) EFFECT OF FAILURE OF NOTICE.—Section 342 of title 11, United States Code, as amend- promise with respect to that tax, was pend- status of that claim, the holder of that claim ed by subsection (a), is amended by adding at ing or in effect during that 240-day period, will receive on account of that claim, cash the end the following: plus 30 days; payments, in the same manner and over the ‘‘(i) A notice that does not comply with ‘‘(II) the lesser of— same period, as prescribed in subparagraph subsections (d) and (e) shall not be effective ‘‘(aa) any time during which an install- (C).’’. unless the debtor demonstrates by clear and ment agreement with respect to that tax was SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS convincing evidence that— pending or in effect during that 240-day pe- PROHIBITED. ‘‘(1) timely notice was given in a manner riod, plus 30 days; or Section 545(2) of title 11, United States reasonably calculated to satisfy the require- ‘‘(bb) 1 year; and Code, is amended by striking the semicolon ments of this section; and ‘‘(III) any time during which a stay of pro- at the end and inserting ‘‘, except in any ‘‘(2) either— ceedings against collections was in effect in case in which a purchaser is a purchaser de- ‘‘(A) the notice was timely sent to the ad- a prior case under this title during that 240- scribed in section 6323 of the Internal Rev- dress provided in the register maintained by day period; plus 6 months.’’. enue Code of 1986, or in any other similar the clerk of the district in which the case SEC. 706. PRIORITY PROPERTY TAXES INCURRED. provision of State or local law;’’. was pending for such purposes; or Section 507(a)(9)(B) of title 11, United SEC. 712. PAYMENT OF TAXES IN THE CONDUCT ‘‘(B) no address was provided in such list States Code, øas redesignated by section 221 OF BUSINESS. for the governmental unit and that an officer of this Act,¿ is amended by striking ‘‘as- (a) PAYMENT OF TAXES REQUIRED.—Section of the governmental unit who is responsible sessed’’ and inserting ‘‘incurred’’. 960 of title 28, United States Code, is for the matter or claim had actual knowl- SEC. 707. CHAPTER 13 DISCHARGE OF FRAUDU- amended— edge of the case in sufficient time to act.’’. LENT AND OTHER TAXES. (1) by inserting ‘‘(a)’’ before ‘‘Any’’; and SEC. 703. NOTICE OF REQUEST FOR A DETER- Section 1328(a)(2) of title 11, United States (2) by adding at the end the following: MINATION OF TAXES. Code, as amended by section ø228¿ 314 of this ‘‘(b) A tax under subsection (a) shall be The second sentence of section 505(b) of Act, is amended by inserting ‘‘(1),’’ after paid when due in the conduct of business title 11, United States Code, is amended by ‘‘paragraph’’. unless— striking ‘‘Unless’’ and inserting ‘‘If the re- SEC. 708. CHAPTER 11 DISCHARGE OF FRAUDU- ‘‘(1) the tax is a property tax secured by a quest is made substantially in the manner LENT TAXES. lien against property that is abandoned designated by the governmental unit and un- Section 1141(d) of title 11, United States within a reasonable period of time after the less’’. Code, is amended by adding at the end the lien attaches, by the trustee of a bankruptcy SEC. 704. RATE OF INTEREST ON TAX CLAIMS. following: estate, under section 554 of title 11; or (a) IN GENERAL.—Subchapter I of chapter 5 ‘‘(5) Notwithstanding paragraph (1), the ‘‘(2) payment of the tax is excused under a of title 11, United States Code, is amended by confirmation of a plan does not discharge a specific provision of title 11. adding at the end the following: debtor that is a corporation from any debt ‘‘(c) In a case pending under chapter 7 of ‘‘§ 511. Rate of interest on tax claims for a tax or customs duty with respect to title 11, payment of a tax may be deferred ‘‘If any provision of this title requires the which the debtor— until final distribution is made under section payment of interest on a tax claim or the ‘‘(A) made a fraudulent return; or 726 of title 11, if— payment of interest to enable a creditor to ‘‘(B) willfully attempted in any manner to ‘‘(1) the tax was not incurred by a trustee receive the present value of the allowed evade or defeat that tax or duty.’’. duly appointed under chapter 7 of title 11; or amount of a tax claim, the rate of interest SEC. 709. STAY OF TAX PROCEEDINGS. ‘‘(2) before the due date of the tax, the shall be as follows: (a) SECTION 362 STAY LIMITED TO court makes a finding of probable insuffi- ‘‘(1) In the case of secured tax claims, unse- PREPETITION TAXES.—Section 362(a)(8) of ciency of funds of the estate to pay in full cured ad valorem tax claims, other unse- title 11, United States Code, is amended by the administrative expenses allowed under cured tax claims in which interest is re- inserting before the semicolon at the end the section 503(b) of title 11 that have the same quired to be paid under section 726(a)(5), and following: ‘‘, with respect to a tax liability priority in distribution under section 726(b) administrative tax claims paid under section for a taxable period ending before the order of title 11 as the priority of that tax.’’. 503(b)(1), the rate shall be determined under for relief under section 301, 302, or 303’’. (b) PAYMENT OF AD VALOREM TAXES RE- applicable nonbankruptcy law. (b) APPEAL OF TAX COURT DECISIONS PER- QUIRED.—Section 503(b)(1)(B)(i) of title 11, ‘‘(2)(A) In the case of any tax claim other MITTED.—Section 362(b)(9) of title 11, United United States Code, is amended by inserting than a claim described in paragraph (1), the States Code, is amended— ‘‘whether secured or unsecured, including

VerDate 29-OCT-99 06:23 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13951

property taxes for which liability is in rem, (b) ADDITIONAL TIME PERMITTED FOR FILING (e) RULES FOR OBJECTIONS TO CLAIMS AND in personam, or both,’’ before ‘‘except’’. TAX RETURNS.— TO CONFIRMATION.—It is the sense of Con- (c) REQUEST FOR PAYMENT OF ADMINISTRA- (1) IN GENERAL.—Chapter 13 of title 11, gress that the Advisory Committee on Bank- TIVE EXPENSE TAXES ELIMINATED.—Section United States Code, as amended by section ruptcy Rules of the Judicial Conference 503(b)(1) of title 11, United States Code, is 309(c) of this Act, is amended by adding at should, within a reasonable period of time amended— the end the following: after the date of enactment of this Act, pro- (1) in subparagraph (B), by striking ‘‘and’’ ‘‘§ 1309. Filing of prepetition tax returns pose for adoption amended Federal Rules of at the end; ‘‘(a) Not later than the day before the day Bankruptcy Procedure which provide that— (2) in subparagraph (C), by adding ‘‘and’’ at on which the first meeting of the creditors is (1) notwithstanding the provisions of Rule the end; and convened under section 341(a), the debtor 3015(f), in cases under chapter 13 of title 11, (3) by adding at the end the following: shall file with appropriate tax authorities all United States Code, a governmental unit ‘‘(D) notwithstanding the requirements of tax returns for all taxable periods ending may object to the confirmation of a plan on subsection (a), a governmental unit shall not during the 3-year period ending on the date or before the date that is 60 days after the be required to file a request for the payment of the filing of the petition. date on which the debtor files all tax returns of a claim described in subparagraph (B) or ‘‘(b)(1) Subject to paragraph (2), if the tax required under sections 1309 and 1325(a)(7) of (C);’’. returns required by subsection (a) have not title 11, United States Code; and (d) PAYMENT OF TAXES AND FEES AS SE- been filed by the date on which the first (2) in addition to the provisions of Rule CURED CLAIMS.—Section 506 of title 11, meeting of creditors is convened under sec- 3007, in a case under chapter 13 of title 11, United States Code, is amended— tion 341(a), the trustee may continue that United States Code, no objection to a tax (1) in subsection (b), by inserting ‘‘or State meeting for a reasonable period of time to with respect to which a return is required to statute’’ after ‘‘agreement’’; and allow the debtor an additional period of time be filed under section 1309 of title 11, United (2) in subsection (c), by inserting ‘‘, includ- to file any unfiled returns, but such addi- States Code, shall be filed until such return ing the payment of all ad valorem property tional period of time shall not extend has been filed as required. taxes with respect to the property’’ before beyond— the period at the end. SEC. 717. STANDARDS FOR TAX DISCLOSURE. ‘‘(A) for any return that is past due as of Section 1125(a)(1) of title 11, United States SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS. the date of the filing of the petition, the date Code, is amended— Section 726(a)(1) of title 11, United States that is 120 days after the date of that first Code, is amended by striking ‘‘before the (1) by inserting ‘‘including a full discussion meeting; or of the potential material, Federal, State, and date on which the trustee commences dis- ‘‘(B) for any return that is not past due as tribution under this section;’’ and inserting local tax consequences of the plan to the of the date of the filing of the petition, the the following: ‘‘on or before the earlier of— debtor, any successor to the debtor, and a later of— ‘‘(A) the date that is 10 days after the mail- hypothetical investor domiciled in the State ‘‘(i) the date that is 120 days after the date ing to creditors of the summary of the trust- in which the debtor resides or has its prin- of that first meeting; or ee’s final report; or cipal place of business typical of the holders ‘‘(ii) the date on which the return is due ‘‘(B) the date on which the trustee com- of claims or interests in the case,’’ after under the last automatic extension of time mences final distribution under this sec- ‘‘records’’; and for filing that return to which the debtor is tion;’’. (2) by striking ‘‘a hypothetical reasonable entitled, and for which request has been SEC. 714. INCOME TAX RETURNS PREPARED BY investor typical of holders of claims or inter- TAX AUTHORITIES. timely made, according to applicable non- ests’’ and inserting ‘‘such a hypothetical in- Section 523(a) of title 11, United States bankruptcy law. vestor’’. ‘‘(2) Upon notice and hearing, and order en- Code, is amended— SEC. 718. SETOFF OF TAX REFUNDS. tered before the tolling of any applicable fil- (1) in paragraph (1)(B)— Section 362(b) of title 11, United States ing period determined under this subsection, (A) by inserting ‘‘or equivalent report or Code, as amended by section 402 of this Act, if the debtor demonstrates by clear and con- notice,’’ after ‘‘a return,’’; is amended— vincing evidence that the failure to file a re- (B) in clause (i)— (1) in paragraph (25), by striking ‘‘or’’ at turn as required under this subsection is at- (i) by inserting ‘‘or given’’ after ‘‘filed’’; the end; tributable to circumstances beyond the con- and (2) in paragraph (26), by striking the period trol of the debtor, the court may extend the (ii) by striking ‘‘or’’ at the end; and at the end and inserting ‘‘; or’’; and filing period established by the trustee under (C) in clause (ii)— (3) by inserting after paragraph (26) the fol- this subsection for— (i) by inserting ‘‘or given’’ after ‘‘filed’’; lowing: ‘‘(A) a period of not more than 30 days for and ‘‘(27) under subsection (a), of the setoff of returns described in paragraph (1); and (ii) by inserting ‘‘, report, or notice’’ after an income tax refund, by a governmental ‘‘(B) a period not to extend after the appli- ‘‘return’’; and unit, with respect to a taxable period that cable extended due date for a return de- (2) by adding at the end the following flush ended before the order for relief against an scribed in paragraph (2). sentences: income tax liability for a taxable period that ‘‘(c) For purposes of this section, the term ‘‘For purposes of this subsection, the term also ended before the order for relief, ‘return’ means a return that satisfies the re- ‘return’ includes a return prepared pursuant to section 6020 (a) or (b) of the Internal Rev- unless— quirements of applicable nonbankruptcy law ‘‘(A) before that setoff, an action to deter- (including applicable filing requirements). enue Code of 1986, or a similar State or local law, or written stipulation to a judgment en- mine the amount or legality of that tax li- Such term includes a return prepared pursu- ability under section 505(a) was commenced; ant to section 6020(a) of the Internal Revenue tered by a nonbankruptcy tribunal.’’. (2) CONFORMING AMENDMENT.—The table of or Code of 1986, or similar State or local law, or ‘‘(B) in any case in which the setoff of an a written stipulation to a judgment entered sections for chapter 13 of title 11, United States Code, is amended by inserting after income tax refund is not permitted because by a nonbankruptcy tribunal, but does not of a pending action to determine the amount include a return made pursuant to section the item relating to section 1308 the following: or legality of a tax liability, in which case 6020(b) of the Internal Revenue Code of 1986, the governmental unit may hold the refund or a similar State or local law.’’. ‘‘1309. Filing of prepetition tax returns.’’. pending the resolution of the action.’’. SEC. 715. DISCHARGE OF THE ESTATE’S LIABIL- (c) DISMISSAL OR CONVERSION ON FAILURE ITY FOR UNPAID TAXES. TO COMPLY.—Section 1307 of title 11, United TITLE VIII—ANCILLARY AND OTHER The second sentence of section 505(b) of States Code, is amended— CROSS-BORDER CASES title 11, United States Code, as amended by (1) by redesignating subsections (e) and (f) SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO section 703 of this Act, is amended by insert- as subsections (f) and (g), respectively; and TITLE 11, UNITED STATES CODE. ing ‘‘the estate,’’ after ‘‘misrepresentation,’’. (2) by inserting after subsection (d), the (a) IN GENERAL.—Title 11, United States SEC. 716. REQUIREMENT TO FILE TAX RETURNS following: Code, is amended by inserting after chapter TO CONFIRM CHAPTER 13 PLANS. ‘‘(e) Upon the failure of the debtor to file a 13 the following: (a) FILING OF PREPETITION TAX RETURNS tax return under section 1309, on request of a ‘‘CHAPTER 15—ANCILLARY AND OTHER REQUIRED FOR PLAN CONFIRMATION.—Section party in interest or the United States trust- CROSS-BORDER CASES 1325(a) of title 11, United States Code, as ee and after notice and a hearing, the court ‘‘Sec. amended by section ø212¿ 213 and 306 of this shall dismiss the case.’’. ‘‘1501. Purpose and scope of application. Act, is amended— (d) TIMELY FILED CLAIMS.—Section 502(b)(9) ‘‘SUBCHAPTER I—GENERAL PROVISIONS (1) in paragraph (6), by striking ‘‘and’’ at of title 11, United States Code, is amended by ‘‘1502. Definitions. the end; inserting before the period at the end the fol- ‘‘1503. International obligations of the (2) in paragraph (7), by striking the period lowing ‘‘, and except that in a case under United States. at the end and inserting ‘‘; and’’; and chapter 13 øof this title¿, a claim of a gov- ‘‘1504. Commencement of ancillary case. (3) by øadding at the end the following:¿ in- ernmental unit for a tax with respect to a re- ‘‘1505. Authorization to act in a foreign serting after paragraph (7) the following: turn filed under section 1309 shall be timely country. ‘‘(8) if the debtor has filed all applicable if the claim is filed on or before the date that ‘‘1506. Public policy exception. Federal, State, and local tax returns as re- is 60 days after that return was filed in ac- ‘‘1507. Additional assistance. quired by section 1309.’’. cordance with applicable requirements’’. ‘‘1508. Interpretation.

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00081 Fmt 0624 Sfmt 0655 E:\CR\FM\A04NO6.099 pfrm12 PsN: S04PT1 S13952 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘SUBCHAPTER II—ACCESS OF FOREIGN ‘‘(b) This chapter applies if— any way permitted by the applicable foreign REPRESENTATIVES AND CREDITORS TO ‘‘(1) assistance is sought in the United law. THE COURT States by a foreign court or a foreign rep- ‘‘§ 1506. Public policy exception ‘‘1509. Right of direct access. resentative in connection with a foreign pro- ‘‘Nothing in this chapter prevents the ‘‘1510. Limited jurisdiction. ceeding; court from refusing to take an action gov- ‘‘1511. Commencement of case under section ‘‘(2) assistance is sought in a foreign coun- erned by this chapter if the action would be 301 or 303. try in connection with a case under this manifestly contrary to the public policy of ‘‘1512. Participation of a foreign representa- title; the United States. ‘‘(3) a foreign proceeding and a case under tive in a case under this title. ‘‘§ 1507. Additional assistance ‘‘1513. Access of foreign creditors to a case this title with respect to the same debtor are ‘‘(a) Subject to the specific limitations under this title. taking place concurrently; or under other provisions of this chapter, the ‘‘1514. Notification to foreign creditors con- ‘‘(4) creditors or other interested persons court, upon recognition of a foreign pro- cerning a case under this title. in a foreign country have an interest in requesting the commencement of, or partici- ceeding, may provide additional assistance ‘‘SUBCHAPTER III—RECOGNITION OF A pating in, a case or proceeding under this to a foreign representative under this title or FOREIGN PROCEEDING AND RELIEF title. under other laws of the United States. ‘‘1515. Application for recognition of a for- ‘‘(c) This chapter does not apply to— ‘‘(b) In determining whether to provide ad- eign proceeding. ‘‘(1) a proceeding concerning an entity ditional assistance under this title or under ‘‘1516. Presumptions concerning recognition. identified by exclusion in subsection 109(b); other laws of the United States, the court ‘‘1517. Order recognizing a foreign pro- ‘‘(2) an individual, or to an individual and shall consider whether such additional as- ceeding. such individual’s spouse, who have debts sistance, consistent with the principles of ‘‘1518. Subsequent information. within the limits specified in section 109(e) comity, will reasonably assure— ‘‘1519. Relief that may be granted upon peti- and who are citizens of the United States or ‘‘(1) just treatment of all holders of claims tion for recognition of a foreign aliens lawfully admitted for permanent resi- against or interests in the debtor’s property; proceeding. dence in the United States; or ‘‘(2) protection of claim holders in the ‘‘1520. Effects of recognition of a foreign ‘‘(3) an entity subject to a proceeding United States against prejudice and incon- main proceeding. under the Securities Investor Protection Act venience in the processing of claims in such ‘‘1521. Relief that may be granted upon rec- of 1970 (84 Stat. 1636 et seq.), a stockbroker foreign proceeding; ognition of a foreign pro- subject to subchapter III of chapter 7 of this ‘‘(3) prevention of preferential or fraudu- ceeding. title, or a commodity broker subject to sub- lent dispositions of property of the debtor; ‘‘1522. Protection of creditors and other in- chapter IV of chapter 7 of this title. ‘‘(4) distribution of proceeds of the debtor’s terested persons. property substantially in accordance with ‘‘SUBCHAPTER I—GENERAL PROVISIONS ‘‘1523. Actions to avoid acts detrimental to the order prescribed by this title; and creditors. ‘‘§ 1502. Definitions ‘‘(5) if appropriate, the provision of an op- ‘‘1524. Intervention by a foreign representa- ‘‘For the purposes of this chapter, the portunity for a fresh start for the individual tive. term— that such foreign proceeding concerns. ‘‘SUBCHAPTER IV—COOPERATION WITH ‘‘(1) ‘debtor’ means an entity that is the ‘‘§ 1508. Interpretation FOREIGN COURTS AND FOREIGN REP- subject of a foreign proceeding; ‘‘In interpreting this chapter, the court RESENTATIVES ‘‘(2) ‘establishment’ means any place of op- shall consider its international origin, and erations where the debtor carries out a non- ‘‘1525. Cooperation and direct communica- the need to promote an application of this transitory economic activity; tion between the court and for- chapter that is consistent with the applica- ‘‘(3) ‘foreign court’ means a judicial or eign courts or foreign rep- tion of similar statutes adopted by foreign other authority competent to control or su- resentatives. jurisdictions. pervise a foreign proceeding; ‘‘1526. Cooperation and direct communica- ‘‘SUBCHAPTER II—ACCESS OF FOREIGN ‘‘(4) ‘foreign main proceeding’ means a for- tion between the trustee and REPRESENTATIVES AND CREDITORS eign proceeding taking place in the country foreign courts or foreign rep- TO THE COURT where the debtor has the center of its main resentatives. interests; ‘‘§ 1509. Right of direct access ‘‘1527. Forms of cooperation. ‘‘(5) ‘foreign nonmain proceeding’ means a ‘‘(a) A foreign representative is entitled to ‘‘SUBCHAPTER V—CONCURRENT foreign proceeding, other than a foreign commence a case under section 1504 by filing PROCEEDINGS main proceeding, taking place in a country a petition for recognition under section 1515, ‘‘1528. Commencement of a case under this where the debtor has an establishment; and upon recognition, to apply directly to title after recognition of a for- ‘‘(6) ‘trustee’ includes a trustee, a debtor in other Federal and State courts for appro- eign main proceeding. possession in a case under any chapter of priate relief in those courts. ‘‘1529. Coordination of a case under this title this title, or a debtor under chapter 9 of this ‘‘(b) Upon recognition, and subject to sec- and a foreign proceeding. title; and tion 1510, a foreign representative shall have ‘‘1530. Coordination of more than 1 foreign ‘‘(7) ‘within the territorial jurisdiction of the capacity to sue and be sued, and shall be proceeding. the United States’ when used with reference subject to the laws of the United States of ‘‘1531. Presumption of insolvency based on to property of a debtor refers to tangible general applicability. recognition of a foreign main property located within the territory of the ‘‘(c) Subject to section 1510, a foreign rep- proceeding. United States and intangible property resentative is subject to laws of general ap- ‘‘1532. Rule of payment in concurrent pro- deemed under applicable nonbankruptcy law plication. ceedings. to be located within that territory, including ‘‘(d) Recognition under this chapter is prerequisite to the granting of comity or co- ‘‘§ 1501. Purpose and scope of application any property subject to attachment or gar- nishment that may properly be seized or gar- operation to a foreign representative in any ‘‘(a) The purpose of this chapter is to in- nished by an action in a Federal or State Federal or State court in the United States. corporate the Model Law on Cross-Border In- court in the United States. Any request for comity or cooperation by a solvency so as to provide effective mecha- foreign representative in any court shall be ‘‘§ 1503. International obligations of the nisms for dealing with cases of cross-border accompanied by a sworn statement setting United States insolvency with the objectives of— forth whether recognition under section 1515 ‘‘(1) cooperation between— ‘‘To the extent that this chapter conflicts has been sought and the status of any such ‘‘(A) United States courts, United States with an obligation of the United States aris- petition. Trustees, trustees, examiners, debtors, and ing out of any treaty or other form of agree- ‘‘(e) Upon denial of recognition under this debtors in possession; and ment to which it is a party with 1 or more chapter, the court may issue appropriate or- ‘‘(B) the courts and other competent au- other countries, the requirements of the ders necessary to prevent an attempt to ob- thorities of foreign countries involved in treaty or agreement prevail. tain comity or cooperation from courts in cross-border insolvency cases; ‘‘§ 1504. Commencement of ancillary case the United States without such recognition. ‘‘(2) greater legal certainty for trade and ‘‘A case under this chapter is commenced ‘‘§ 1510. Limited jurisdiction investment; by the filing of a petition for recognition of ‘‘(3) fair and efficient administration of ‘‘The sole fact that a foreign representa- a foreign proceeding under section 1515. cross-border insolvencies that protects the tive files a petition under section 1515 does interests of all creditors, and other inter- ‘‘§ 1505. Authorization to act in a foreign not subject the foreign representative to the ested entities, including the debtor; country jurisdiction of any court in the United ‘‘(4) protection and maximization of the ‘‘A trustee or another entity, including an States for any other purpose. value of the debtor’s assets; and examiner, may be authorized by the court to ‘‘§ 1511. Commencement of case under section ‘‘(5) facilitation of the rescue of financially act in a foreign country on behalf of an es- 301 or 303 troubled businesses, thereby protecting in- tate created under section 541. An entity au- ‘‘(a) Upon recognition, a foreign represent- vestment and preserving employment. thorized to act under this section may act in ative may commence—

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.099 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13953 ‘‘(1) an involuntary case under section 303; ‘‘SUBCHAPTER III—RECOGNITION OF A the manner prescribed for a case under sec- or FOREIGN PROCEEDING AND RELIEF tion 350. ‘‘(2) a voluntary case under section 301 or ‘‘§ 1515. Application for recognition of a for- ‘‘§ 1518. Subsequent information 302, if the foreign proceeding is a foreign eign proceeding ‘‘After øthe¿ the petition for recognition of main proceeding. ‘‘(a) A foreign representative applies to the the foreign proceeding is filed, the foreign ‘‘(b) The petition commencing a case under court for recognition of the foreign pro- representative shall file with the court subsection (a) must be accompanied by a ceeding in which the foreign representative promptly a notice of change of status statement describing the petition for rec- has been appointed by filing a petition for concerning— ognition and its current status. The court recognition. ‘‘(1) any substantial change in the status of where the petition for recognition has been ‘‘(b) A petition for recognition shall be ac- the foreign proceeding or the status of the filed must be advised of the foreign rep- companied by— foreign representative’s appointment; and resentative’s intent to commence a case ‘‘(1) a certified copy of the decision com- ‘‘(2) any other foreign proceeding regarding under subsection (a) prior to such commencing the foreign proceeding and appoint- the debtor that becomes known to the for- mencement. ing the foreign representative; eign representative. ‘‘§ 1512. Participation of a foreign representa- ‘‘(2) a certificate from the foreign court af- ‘‘§ 1519. Relief that may be granted upon petitive in a case under this title firming the existence of the foreign pro- tion for recognition of a foreign proceeding ceeding and of the appointment of the for- ‘‘(a) Beginning on the date on which a peti- ‘‘Upon recognition of a foreign proceeding, eign representative; or tion for recognition is filed and ending on the foreign representative in that proceeding ‘‘(3) in the absence of evidence referred to the date on which the petition is decided is entitled to participate as a party in inter- in paragraphs (1) and (2), any other evidence upon, the court may, at the request of the est in a case regarding the debtor under this acceptable to the court of the existence of foreign representative, where relief is ur- title. the foreign proceeding and of the appoint- gently needed to protect the assets of the ment of the foreign representative. ‘‘§ 1513. Access of foreign creditors to a case debtor or the interests of the creditors, grant ‘‘(c) A petition for recognition shall also be under this title relief of a provisional nature, including— accompanied by a statement identifying all ‘‘(1) staying execution against the debtor’s ‘‘(a) Foreign creditors have the same rights foreign proceedings with respect to the debt- assets; regarding the commencement of, and partici- or that are known to the foreign representa- ‘‘(2) entrusting the administration or real- pation in, a case under this title as domestic tive. ization of all or part of the debtor’s assets lo- creditors. ‘‘(d) The documents referred to in para- cated in the United States to the foreign rep- ‘‘(b)(1) Subsection (a) does not change or graphs (1) and (2) of subsection (b) must be resentative or another person authorized by codify law in effect on the date of enactment translated into English. The court may re- the court, including an examiner, in order to of this chapter as to the priority of claims quire a translation into English of additional protect and preserve the value of assets that, under section 507 or 726, except that the documents. by their nature or because of other cir- claim of a foreign creditor under section 507 ‘‘§ 1516. Presumptions concerning recognition or 726 shall not be given a lower priority cumstances, are perishable, susceptible to than that of general unsecured claims with- ‘‘(a) If the decision or certificate referred devaluation, or otherwise in jeopardy; and out priority solely because the holder of such to in section 1515(b) indicates that the for- ‘‘(3) any relief referred to in paragraph (3), claim is a foreign creditor. eign proceeding is a foreign proceeding as de- (4), or (7) of section 1521(a). fined in section 101 and that the person or ‘‘(b) Unless extended under section ‘‘(2)(A) Subsection (a) and paragraph (1) do body is a foreign representative as defined in 1521(a)(6), the relief granted under this sec- not change or codify law in effect on the date section 101, the court is entitled to so pre- tion terminates when the petition for rec- of enactment of this chapter as to the allow- sume. ognition is decided upon. ability of foreign revenue claims or other ‘‘(b) The court is entitled to presume that ‘‘(c) It is a ground for denial of relief under foreign public law claims in a proceeding documents submitted in support of the peti- this section that such relief would interfere under this title. tion for recognition are authentic, whether with the administration of a foreign main ‘‘(B) Allowance and priority as to a foreign or not they have been legalized. proceeding. tax claim or other foreign public law claim ‘‘(c) In the absence of evidence to the con- ‘‘(d) The court may not enjoin a police or shall be governed by any applicable tax trea- trary, the debtor’s registered office, or habit- regulatory act of a governmental unit, in- ty of the United States, under the conditions ual residence in the case of an individual, is cluding a criminal action or proceeding, and circumstances specified therein. presumed to be the center of the debtor’s under this section. ‘‘§ 1514. Notification to foreign creditors con- main interests. ‘‘(e) The standards, procedures, and limita- cerning a case under this title ‘‘§ 1517. Order recognizing a foreign pro- tions applicable to an injunction shall apply ceeding to relief under this section. ‘‘(a) Whenever in a case under this title no- ‘‘§ 1520. Effects of recognition of a foreign tice is to be given to creditors generally or ‘‘(a) Subject to section 1506, after notice main proceeding to any class or category of creditors, such and a hearing an order recognizing a foreign notice shall also be given to the known proceeding shall be entered if— ‘‘(a) Upon recognition of a foreign pro- creditors generally, or to creditors in the no- ‘‘(1) the foreign proceeding is a foreign ceeding that is a foreign main proceeding— tified class or category, that do not have ad- main proceeding or foreign nonmain pro- ‘‘(1) section 362 applies with respect to the dresses in the United States. The court may ceeding within the meaning of section 1502; debtor and that property of the debtor that order that appropriate steps be taken with a ‘‘(2) the foreign representative applying for is within the territorial jurisdiction of the view to notifying any creditor whose address recognition is a person or body as defined in United States; is not yet known. section 101; and ‘‘(2) a transfer, an encumbrance, or any ‘‘(3) the petition meets the requirements of other disposition of an interest of the debtor ‘‘(b) Such notification to creditors with section 1515. in property within the territorial jurisdic- foreign addresses described in subsection (a) ‘‘(b) The foreign proceeding shall be tion of the United States is restrained as and shall be given individually, unless the court recognized— to the extent that is provided for property of considers that, under the circumstances, ‘‘(1) as a foreign main proceeding if it is an estate under sections 363, 549, and 552; and some other form of notification would be taking place in the country where the debtor ‘‘(3) unless the court orders otherwise, the more appropriate. No letters rogatory or has the center of its main interests; or foreign representative may operate the debt- other similar formality is required. ‘‘(2) as a foreign nonmain proceeding if the or’s business and may exercise the powers of ‘‘(c) When a notification of commencement debtor has an establishment within the a trustee under section 549, subject to sec- of a case is to be given to foreign creditors, meaning of section 1502 in the foreign coun- tions 363 and 552. the notification shall— try where the proceeding is pending. ‘‘(b) The scope, and the modification or ‘‘(1) indicate the time period for filing ‘‘(c) A petition for recognition of a foreign termination, of the stay and restraints re- proofs of claim and specify the place for proceeding shall be decided upon at the ear- ferred to in subsection (a) are subject to the their filing; liest possible time. Entry of an order recog- exceptions and limitations provided in sub- ‘‘(2) indicate whether secured creditors nizing a foreign proceeding shall constitute sections (b), (c), and (d) of section 362, sub- need to file their proofs of claim; and recognition under this chapter. sections (b) and (c) of section 363, and sec- ‘‘(3) contain any other information re- ‘‘(d) The provisions of this subchapter do tions 552, 555 through 557, 559, and 560. quired to be included in such a notification not prevent modification or termination of ‘‘(c) Subsection (a) does not affect the to creditors pursuant to this title and the or- recognition if it is shown that the grounds right to commence individual actions or pro- ders of the court. for granting it were fully or partially lack- ceedings in a foreign country to the extent ‘‘(d) Any rule of procedure or order of the ing or have ceased to exist, but in consid- necessary to preserve a claim against the court as to notice or the filing of a claim ering such action the court shall give due debtor. shall provide such additional time to credi- weight to possible prejudice to parties that ‘‘(d) Subsection (a) does not affect the tors with foreign addresses as is reasonable have relied upon the granting of recognition. right of a foreign representative or an entity under the circumstances. The case under this chapter may be closed in to file a petition commencing a case under

VerDate 29-OCT-99 05:46 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00083 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.099 pfrm13 PsN: S04PT1 S13954 CONGRESSIONAL RECORD — SENATE November 4, 1999 this title or the right of any party to file ter. Any examiner shall comply with the and coordination under sections 1525, 1526, claims or take other proper actions in such qualification requirements imposed on a and 1527, to other assets of the debtor that a case. trustee by section 322. are within the jurisdiction of the court under ‘‘§ 1521. Relief that may be granted upon rec- ‘‘§ 1523. Actions to avoid acts detrimental to sections 541(a), and 1334(e) of title 28, to the ognition of a foreign proceeding creditors extent that such other assets are not subject to the jurisdiction and control of a foreign ‘‘(a) Upon recognition of a foreign pro- ‘‘(a) Upon recognition of a foreign pro- proceeding that has been recognized under ceeding, whether main or nonmain, where ceeding, the foreign representative has this chapter. necessary to effectuate the purpose of this standing in a case concerning the debtor chapter and to protect the assets of the debt- pending under another chapter of this title ‘‘§ 1529. Coordination of a case under this or or the interests of the creditors, the court to initiate actions under sections 522, 544, title and a foreign proceeding may, at the request of the foreign represent- 545, 547, 548, 550, and 724(a). ‘‘In any case in which a foreign proceeding ative, grant any appropriate relief, ‘‘(b) In any case in which the foreign pro- and a case under another chapter of this title including— ceeding is a foreign nonmain proceeding, the are taking place concurrently regarding the ‘‘(1) staying the commencement or con- court must be satisfied that an action under same debtor, the court shall seek coopera- tinuation of individual actions or individual subsection (a) relates to assets that, under tion and coordination under sections 1525, proceedings concerning the debtor’s assets, United States law, should be administered in 1526, and 1527, and the following shall apply: rights, obligations or liabilities to the extent the foreign nonmain proceeding. ‘‘(1) If the case in the United States is tak- the actions or proceedings have not been ing place at the time the petition for rec- stayed under section 1520(a); ‘‘§ 1524. Intervention by a foreign representative ognition of the foreign proceeding is filed— ‘‘(2) staying execution against the debtor’s ‘‘(A) any relief granted under sections 1519 ‘‘Upon recognition of a foreign proceeding, assets to the extent the execution has not or 1521 must be consistent with the relief the foreign representative may intervene in been stayed under section 1520(a); granted in the case in the United States; and any proceedings in a State or Federal court ‘‘(3) suspending the right to transfer, en- ‘‘(B) even if the foreign proceeding is rec- in the United States in which the debtor is a cumber or otherwise dispose of any assets of ognized as a foreign main proceeding, section party. the debtor to the extent that right has not 1520 does not apply. been suspended under section 1520(a); ‘‘SUBCHAPTER IV—COOPERATION WITH ‘‘(2) If a case in the United States under ‘‘(4) providing for the examination of wit- FOREIGN COURTS AND FOREIGN REP- this title commences after recognition, or nesses, the taking of evidence or the delivery RESENTATIVES after the filing of the petition for recogni- of information concerning the debtor’s as- ‘‘§ 1525. Cooperation and direct communication, of the foreign proceeding— sets, affairs, rights, obligations or liabilities; tion between the court and foreign courts ‘‘(A) any relief in effect under sections 1519 ‘‘(5) entrusting the administration or real- or foreign representatives or 1521 shall be reviewed by the court and ization of all or part of the debtor’s assets ‘‘(a) Consistent with section 1501, the court shall be modified or terminated if incon- within the territorial jurisdiction of the shall cooperate to the maximum extent pos- sistent with the case in the United States; United States to the foreign representative sible with foreign courts or foreign rep- and or another person, including an examiner, resentatives, either directly or through the ‘‘(B) if the foreign proceeding is a foreign authorized by the court; trustee. main proceeding, the stay and suspension re- ‘‘(6) extending relief granted under section ‘‘(b) The court is entitled to communicate ferred to in section 1520(a) shall be modified 1519(a); and directly with, or to request information or or terminated if inconsistent with the relief ‘‘(7) granting any additional relief that assistance directly from, foreign courts or granted in the case in the United States. may be available to a trustee, except for re- foreign representatives, subject to the rights ‘‘(3) In granting, extending, or modifying lief available under sections 522, 544, 545, 547, of parties in interest to notice and participa- relief granted to a representative of a foreign 548, 550, and 724(a). tion. nonmain proceeding, the court must be satis- ‘‘(b) Upon recognition of a foreign pro- fied that the relief relates to assets that, ‘‘§ 1526. Cooperation and direct communica- ceeding, whether main or nonmain, the court under the law of the United States, should be tion between the trustee and foreign courts may, at the request of the foreign represent- administered in the foreign nonmain pro- ative, entrust the distribution of all or part or foreign representatives ceeding or concerns information required in of the debtor’s assets located in the United ‘‘(a) Consistent with section 1501, the trust- that proceeding. States to the foreign representative or an- ee or other person, including an examiner, ‘‘(4) In achieving cooperation and coordina- other person, including an examiner, author- authorized by the court, shall, subject to the tion under sections 1528 and 1529, the court ized by the court, if the court is satisfied supervision of the court, cooperate to the may grant any of the relief authorized under that the interests of creditors in the United maximum extent possible with foreign section 305. States are sufficiently protected. courts or foreign representatives. ‘‘(c) In granting relief under this section to ‘‘(b) The trustee or other person, including ‘‘§ 1530. Coordination of more than 1 foreign a representative of a foreign nonmain pro- an examiner, authorized by the court is enti- proceeding ceeding, the court must be satisfied that the tled, subject to the supervision of the court, ‘‘In matters referred to in section 1501, relief relates to assets that, under the law of to communicate directly with foreign courts with respect to more than 1 foreign pro- the United States, should be administered in or foreign representatives. ceeding regarding the debtor, the court shall the foreign nonmain proceeding or concerns seek cooperation and coordination under sec- ‘‘§ 1527. Forms of cooperation information required in that proceeding. tions 1525, 1526, and 1527, and the following ‘‘(d) The court may not enjoin a police or ‘‘Cooperation referred to in sections 1525 shall apply: regulatory act of a governmental unit, in- and 1526 may be implemented by any appro- ‘‘(1) Any relief granted under section 1519 cluding a criminal action or proceeding, priate means, including— or 1521 to a representative of a foreign under this section. ‘‘(1) appointment of a person or body, in- nonmain proceeding after recognition of a ‘‘(e) The standards, procedures, and limita- cluding an examiner, to act at the direction foreign main proceeding must be consistent tions applicable to an injunction shall apply of the court; with the foreign main proceeding. to relief under paragraphs (1), (2), (3), and (6) ‘‘(2) communication of information by any ‘‘(2) If a foreign main proceeding is recog- of subsection (a). means considered appropriate by the court; nized after recognition, or after the filing of ‘‘§ 1522. Protection of creditors and other in- ‘‘(3) coordination of the administration and a petition for recognition, of a foreign terested persons supervision of the debtor’s assets and affairs; nonmain proceeding, any relief in effect ‘‘(a) The court may grant relief under sec- ‘‘(4) approval or implementation of agree- under section 1519 or 1521 shall be reviewed tion 1519 or 1521, or may modify or terminate ments concerning the coordination of pro- by the court and shall be modified or termi- relief under subsection (c), only if the inter- ceedings; and nated if inconsistent with the foreign main ests of the creditors and other interested en- ‘‘(5) coordination of concurrent pro- proceeding. tities, including the debtor, are sufficiently ceedings regarding the same debtor. ‘‘(3) If, after recognition of a foreign protected. ‘‘SUBCHAPTER V—CONCURRENT nonmain proceeding, another foreign ‘‘(b) The court may subject relief granted PROCEEDINGS nonmain proceeding is recognized, the court under section 1519 or 1521, or the operation of ‘‘§ 1528. Commencement of a case under this shall grant, modify, or terminate relief for the debtor’s business under section 1520(a)(2), title after recognition of a foreign main the purpose of facilitating coordination of to conditions that the court considers to be proceeding the proceedings. appropriate, including the giving of security or the filing of a bond. ‘‘After recognition of a foreign main pro- ‘‘§ 1531. Presumption of insolvency based on ‘‘(c) The court may, at the request of the ceeding, a case under another chapter of this recognition of a foreign main proceeding foreign representative or an entity affected title may be commenced only if the debtor ‘‘In the absence of evidence to the con- by relief granted under section 1519 or 1521, has assets in the United States. The effects trary, recognition of a foreign main pro- or at its own motion, modify or terminate of such case shall be restricted to the assets ceeding is for the purpose of commencing a the relief referred to in subsection (b). of the debtor that are within the territorial proceeding under section 303, proof that the ‘‘(d) Section 1104(d) shall apply to the ap- jurisdiction of the United States and, to the debtor is generally not paying its debts as pointment of an examiner under this chap- extent necessary to implement cooperation such debts become due.

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.099 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13955 ‘‘§ 1532. Rule of payment in concurrent pro- ‘‘(3) the term ‘United States claimant’ against the transfer of funds by the trans- ceedings means a beneficiary of any deposit referred feree of such certificate of deposit, eligible ‘‘Without prejudice to secured claims or to in subsection (b) or any multibeneficiary bankers’ acceptance, security, loan, or inter- rights in rem, a creditor who has received trust referred to in subsection (b); est; payment with respect to its claim in a for- ‘‘(4) the term ‘United States creditor’ with a simultaneous agreement by such eign proceeding pursuant to a law relating to means, with respect to a foreign insurance transferee to transfer to the transferor insolvency may not receive a payment for company— thereof a certificate of deposit, eligible the same claim in a case under any other ‘‘(i) a United States claimant; or bankers’ acceptance, security, loan, or inter- chapter of this title regarding the debtor, so ‘‘(ii) any business entity that operates in est of the kind described in subclause (I) or long as the payment to other creditors of the the United States and that is a creditor; and (II), at a date certain that is not later than same class is proportionately less than the ‘‘(5) the term ‘United States policyholder’ 1 year after the date of the transferor’s payment the creditor has already received.’’. means a holder of an insurance policy issued transfer or on demand, against the transfer (b) CLERICAL AMENDMENT.—The table of in the United States. of funds; chapters for title 11, United States Code, is ‘‘(b) The court may not grant relief under ‘‘(ii) a combination of agreements or trans- amended by inserting after the item relating chapter 15 of this title with respect to any actions referred to in clauses (i) and (iii); to chapter 13 the following: deposit, escrow, trust fund, or other security ‘‘(iii) an option to enter into an agreement ‘‘15. Ancillary and Other Cross-Border required or permitted under any applicable or transaction referred to in clause (i) or (ii); Cases ...... 1501’’. State insurance law or regulation for the or SEC. 802. AMENDMENTS TO OTHER CHAPTERS IN benefit of claim holders in the United ‘‘(iv) a master netting agreement that pro- TITLE 11, UNITED STATES CODE. States.’’. vides for an agreement or transaction re- (a) APPLICABILITY OF CHAPTERS.—Section TITLE IX—FINANCIAL CONTRACT ferred to in clause (i), (ii), or (iii), together 103 of title 11, United States Code, is PROVISIONS with all supplements to such master netting amended— agreement, without regard to whether such SEC. 901. BANKRUPTCY CODE AMENDMENTS. (1) in subsection (a), by inserting before master netting agreement provides for an (a) DEFINITIONS OF FORWARD CONTRACT, RE- the period the following: ‘‘, and this chapter, agreement or transaction that is not a repur- PURCHASE AGREEMENT, SECURITIES CLEARING sections 307, 304, 555 through 557, 559, and 560 chase agreement under this subparagraph, AGENCY, SWAP AGREEMENT, COMMODITY CON- apply in a case under chapter 15’’; and except that such master netting agreement TRACT, AND SECURITIES CONTRACT.—Title 11, (2) by adding at the end the following: shall be considered to be a repurchase agree- ‘‘(j) Chapter 15 applies only in a case under United States Code, is amended— ment under this subparagraph only with re- such chapter, except that— (1) in section 101— spect to each agreement or transaction ‘‘(1) sections 1513 and 1514 apply in all cases (A) in paragraph (25)— under such master netting agreement that is under this title; and (i) by striking ‘‘means a contract’’ and in- referred to in clause (i), (ii), or (iii); or ‘‘(2) section 1505 applies to trustees and to serting ‘‘means— ‘‘(v) a security agreement or arrangement, any other entity (including an examiner) au- ‘‘(A) a contract’’; or other credit enhancement, directly per- thorized by the court under chapter 7, 11, or (ii) by striking ‘‘, or any combination taining to a contract referred to in clause (i), 12, to debtors in possession under chapter 11 thereof or option thereon;’’ and inserting ‘‘, (ii), (iii), or (iv), but not to exceed the actual or 12, and to debtors under chapter 9 who are or any other similar agreement;’’; and value of such contract on the date of the fil- authorized to act under section 1505.’’. (iii) by adding at the end the following: ing of the petition; and (b) DEFINITIONS.—Paragraphs (23) and (24) ‘‘(B) a combination of agreements or trans- ‘‘(B) do not include a repurchase obligation of section 101 of title 11, United States Code, actions referred to in subparagraphs (A) and under a participation in a commercial mort- are amended to read as follows: (C); gage loan;’’; ‘‘(23) ‘foreign proceeding’ means a collec- ‘‘(C) an option to enter into an agreement (C) in paragraph (48) by inserting ‘‘, or ex- tive judicial or administrative proceeding in or transaction referred to in subparagraph empt from such registration under such sec- a foreign country, including an interim pro- (A) or (B); tion pursuant to an order of the Securities ceeding, pursuant to a law relating to insol- ‘‘(D) a master netting agreement that pro- and Exchange Commission’’ after ‘‘1934’’; and vency in which proceeding the assets and af- vides for an agreement or transaction re- (D) by striking paragraph (53B) and insert- fairs of the debtor are subject to control or ferred to in subparagraph (A), (B), or (C), to- ing the following: supervision by a foreign court, for the pur- gether with all supplements to such master ‘‘(53B) ‘swap agreement’— pose of reorganization or liquidation; netting agreement, without regard to wheth- ‘‘(A) means— ‘‘(24) ‘foreign representative’ means a per- er such master netting agreement provides ‘‘(i) an agreement, including the terms and son or body, including a person or body ap- for an agreement or transaction that is not conditions incorporated by reference in such pointed on an interim basis, authorized in a a forward contract under this paragraph, ex- agreement, that is— foreign proceeding to administer the reorga- cept that such master netting agreement ‘‘(I) an interest rate swap, option, future, nization or the liquidation of the debtor’s as- shall be considered to be a forward contract or forward agreement, including a rate floor, sets or affairs or to act as a representative of under this paragraph only with respect to rate cap, rate collar, cross-currency rate the foreign proceeding;’’. each agreement or transaction under such swap, and basis swap; (c) AMENDMENTS TO TITLE 28, UNITED master netting agreement that is referred to ‘‘(II) a spot, same day-tomorrow, tomor- STATES CODE.— in subparagraph (A), (B) or (C); or row-next, forward, or other foreign exchange (1) PROCEDURES.—Section 157(b)(2) of title ‘‘(E) a security agreement or arrangement, or precious metals agreement; 28, United States Code, is amended— or other credit enhancement, directly per- ‘‘(III) a currency swap, option, future, or (A) in subparagraph (N), by striking ‘‘and’’ taining to a contract, option, agreement, or forward agreement; at the end; transaction referred to in subparagraph (A), ‘‘(IV) an equity index or an equity swap, (B) in subparagraph (O), by striking the pe- (B), (C), or (D), but not to exceed the actual option, future, or forward agreement; riod at the end and inserting ‘‘; and’’; and value of such contract, option, agreement, or ‘‘(V) a debt index or a debt swap, option, (C) by adding at the end the following: transaction on the date of the filing of the future, or forward agreement; ‘‘(P) recognition of foreign proceedings and petition;’’; ‘‘(VI) a credit spread or a credit swap, op- other matters under chapter 15 of title 11.’’. (B) by striking paragraph (47) and inserting tion, future, or forward agreement; or (2) BANKRUPTCY CASES AND PROCEEDINGS.— the following: ‘‘(VII) a commodity index or a commodity Section 1334(c)(1) of title 28, United States ‘‘(47) ‘repurchase agreement’ and ‘reverse swap, option, future, or forward agreement; Code, is amended by striking ‘‘Nothing in’’ repurchase agreement’— ‘‘(ii) an agreement or transaction that is and inserting ‘‘Except with respect to a case ‘‘(A) mean— similar to an agreement or transaction re- under chapter 15 of title 11, nothing in’’. ‘‘(i) an agreement, including related terms, ferred to in clause (i) that— (3) DUTIES OF TRUSTEES.—Section 586(a)(3) which provides for the transfer of— ‘‘(I) is currently, or in the future becomes, of title 28, United States Code, is amended by ‘‘(I) a certificate of deposit, mortgage re- regularly entered into in the swap market inserting ‘‘15,’’ after ‘‘chapter’’. lated security (as defined in section 3 of the (including terms and conditions incorporated SEC. 803. CLAIMS RELATING TO INSURANCE DE- Securities Exchange Act of 1934), mortgage by reference therein); and POSITS IN CASES ANCILLARY TO loan, interest in a mortgage related security ‘‘(II) is a forward, swap, future, or option FOREIGN PROCEEDINGS. or mortgage loan, eligible bankers’ accept- on a rate, currency, commodity, equity secu- Section 304 of title 11, United States Code, ance, or qualified foreign government security, or other equity instrument, on a debt is amended to read as follows: rity (defined for purposes of this paragraph security or other debt instrument, or on an ‘‘§ 304. Cases ancillary to foreign proceedings to mean a security that is a direct obligation economic index or measure of economic risk ‘‘(a) For purposes of this section— of, or that is fully guaranteed by, the central or value; ‘‘(1) the term ‘domestic insurance com- government of a member of the Organization ‘‘(iii) a combination of agreements or pany’ means a domestic insurance company, for Economic Cooperation and Develop- transactions referred to in clauses (i) and as such term is used in section 109(b)(2); ment); or (ii); ‘‘(2) the term ‘foreign insurance company’ ‘‘(II) a security that is a direct obligation ‘‘(iv) an option to enter into an agreement means a foreign insurance company, as such of, or that is fully guaranteed by, the United or transaction referred to in this subpara- term is used in section 109(b)(3); States or an agency of the United States graph;

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.099 pfrm12 PsN: S04PT1 S13956 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(v) a master netting agreement that pro- ø(B) in subparagraph (E), by striking the States Code, as amended by subsection (b) of vides for an agreement or transaction re- period at the end and inserting ‘‘; and’’; and this section, is amended by inserting after ferred to in clause (i), (ii), (iii), or (iv), to- ø(C)¿ (B) by adding at the end the fol- paragraph (38) the following new paragraphs: gether with all supplements to such master lowing: ‘‘(38A) the term ‘master netting netting agreement and without regard to ‘‘(F) any other agreement or transaction agreement’— whether such master netting agreement con- that is similar to an agreement or trans- ‘‘(A) means an agreement providing for the tains an agreement or transaction described action referred to in this paragraph; exercise of rights, including rights of net- in any such clause, but only with respect to ‘‘(G) a combination of the agreements or ting, setoff, liquidation, termination, accel- each agreement or transaction referred to in transactions referred to in this paragraph; eration, or closeout, under or in connection any such clause that is under such master ‘‘(H) an option to enter into an agreement with 1 or more contracts that are described netting agreement; except that or transaction referred to in this paragraph; in any 1 or more of paragraphs (1) through (5) ‘‘(B) the definition under subparagraph (A) ‘‘(I) a master netting agreement that pro- is applicable for purposes of this title only, vides for an agreement or transaction re- of section 561(a), or any security agreement and shall not be construed or applied so as to ferred to in subparagraph (A), (B), (C), (D), or arrangement or other credit enhancement challenge or affect the characterization, def- (E), (F), (G), or (H), together with all supple- related to 1 or more of the foregoing; except inition, or treatment of any swap agreement ments to such master netting agreement, that under any other statute, regulation, or rule, without regard to whether such master net- ‘‘(B) if a master netting agreement con- including the Securities Act of 1933, the Se- ting agreement provides for an agreement or tains provisions relating to agreements or curities Exchange Act of 1934, the Public transaction that is not a commodity con- transactions that are not contracts described Utility Holding Company Act of 1935, the tract under this paragraph, except that such in paragraphs (1) through (5) of section Trust Indenture Act of 1939, the Investment master netting agreement shall be consid- 561(a), the master netting agreement shall be Company Act of 1940, the Investment Advis- ered to be a commodity contract under this deemed to be a master netting agreement ers Act of 1940, the Securities Investor Pro- paragraph only with respect to each agree- only with respect to those agreements or tection Act of 1970, the Commodity Exchange ment or transaction under such master net- transactions that are described in any 1 or Act, and the regulations prescribed by the ting agreement that is referred to in sub- more of the paragraphs (1) through (5) of sec- Securities and Exchange Commission or the paragraph (A), (B), (C), (D), (E), (F), (G), or tion 561(a); Commodity Futures Trading Commission.’’; (H); or ‘‘(38B) the term ‘master netting agreement (2) in section 741, by striking paragraph (7) ‘‘(J) a security agreement or arrangement, participant’ means an entity that, at any and inserting the following: or other credit enhancement, directly per- time before the filing of the petition, is a ‘‘(7) ‘securities contract’— taining to a contract referred to in this para- party to an outstanding master netting ‘‘(A) means— graph, but not to exceed the actual value of agreement with the debtor;’’. ‘‘(i) a contract for the purchase, sale, or such contract on the date of the filing of the loan of a security, a mortgage loan or an in- petition.’’. (d) SWAP AGREEMENTS, SECURITIES CON- terest in a mortgage loan, a group or index (b) DEFINITIONS OF FINANCIAL INSTITUTION, TRACTS, COMMODITY CONTRACTS, FORWARD of securities, or mortgage loans or interests FINANCIAL PARTICIPANT, AND FORWARD CON- CONTRACTS, REPURCHASE AGREEMENTS, AND therein (including an interest therein or TRACT MERCHANT.—Section 101 of title 11, MASTER NETTING AGREEMENTS UNDER THE based on the value thereof), or option on any United States Code, as amended by section AUTOMATIC STAY.— of the foregoing, including an option to pur- 802(b) of this Act, is amended— (1) IN GENERAL.—Section 362(b) of title 11, chase or sell any of the foregoing; (1) by striking paragraph (22) and inserting United States Code, as amended by section ‘‘(ii) an option entered into on a national the following: 718 of this Act, is amended— securities exchange relating to foreign cur- ‘‘(22) ‘financial institution’ means— (A) in paragraph (6), by inserting ‘‘, rencies; ‘‘(A)(i) a Federal reserve bank, or an entity pledged to, and under the control of,’’ after ‘‘(iii) the guarantee by or to a securities that is a commercial or savings bank, indus- ‘‘held by’’; clearing agency of a settlement of cash, se- trial savings bank, savings and loan associa- (B) in paragraph (7), by inserting ‘‘, pledged curities, mortgage loans or interests therein, tion, trust company, or receiver or conser- to, and under the control of,’’ after ‘‘held group or index of securities, or mortgage vator for such entity; and by’’; loans or interests therein (including any in- ‘‘(ii) if such Federal reserve bank, receiver, (C) by striking paragraph (17) and inserting terest therein or based on the value thereof), or conservator or entity is acting as agent or the following: or option on any of the foregoing, including custodian for a customer in connection with ‘‘(17) under subsection (a), of the setoff by an option to purchase or sell any of the fore- a securities contract, as defined in section a swap participant of a mutual debt and going; 741, such customer; or claim under or in connection with a swap ‘‘(iv) a margin loan; ‘‘(B) in connection with a securities con- agreement that constitutes the setoff of a ‘‘(v) any other agreement or transaction tract, as defined in section 741 of this title, claim against the debtor for a payment or that is similar to an agreement or trans- an investment company registered under the transfer due from the debtor under or in con- action referred to in this subparagraph; Investment Company Act of 1940;’’; nection with a swap agreement against a ‘‘(vi) a combination of the agreements or (2) by inserting after paragraph (22) the fol- payment due to the debtor from the swap transactions referred to in this subpara- lowing: participant under or in connection with a graph; ‘‘(22A) ‘financial participant’ means an en- swap agreement or against cash, securities, ‘‘(vii) an option to enter into an agreement tity that is a party to a securities contract, or other property held by, pledged to, and or transaction referred to in this subpara- commodity contract or forward contract, or under the control of, or due from such swap graph; on the date of the filing of the petition, has participant to guarantee, secure, or settle a ‘‘(viii) a master netting agreement that a commodity contract (as defined in section swap agreement;’’; provides for an agreement or transaction re- 761) with the debtor or any other entity (D) in paragraph (26), by striking ‘‘or’’ at ferred to in clause (i), (ii), (iii), (iv), (v), (vi), (other than an affiliate) of a total gross dol- the end; or (vii), together with all supplements to lar value of not less than $1,000,000,000 in no- such master netting agreement, without re- tional or actual principal amount out- (E) in paragraph (27), by striking the pe- gard to whether such master netting agree- standing on any day during the previous 15- riod at the end and inserting ‘‘; or’’; and ment provides for an agreement or trans- month period, or has gross mark-to-market (F) by inserting after paragraph (27) the action that is not a securities contract under positions of not less than $100,000,000 (aggre- following: this subparagraph, except that such master gated across counterparties) in any such ‘‘(28) under subsection (a), of the setoff by netting agreement shall be considered to be agreement or transaction with the debtor or a master netting agreement participant of a a securities contract under this subpara- any other entity (other than an affiliate) on mutual debt and claim under or in connec- graph only with respect to each agreement any day during the previous 15-month pe- tion with 1 or more master netting agree- or transaction under such master netting riod;’’; and ments or any contract or agreement subject agreement that is referred to in clause (i), (3) by striking paragraph (26) and inserting to such agreements that constitutes the (ii), (iii), (iv), (v), (vi), or (vii); or the following: setoff of a claim against the debtor for any ‘‘(ix) a security agreement or arrangement, ‘‘(26) ‘forward contract merchant’ means a payment or other transfer of property due or other credit enhancement, directly per- Federal reserve bank, or an entity, the busi- from the debtor under or in connection with taining to a contract referred to in this sub- ness of which consists in whole or in part of such agreements or any contract or agree- paragraph, but not to exceed the actual entering into forward contracts as or with ment subject to such agreements against any value of such contract on the date of the fil- merchants or in a commodity, as defined or payment due to the debtor from such master ing of the petition; and in section 761, or any similar good, article, netting agreement participant under or in ‘‘(B) does not include a purchase, sale, or service, right, or interest that is presently or connection with such agreements or any con- repurchase obligation under a participation in the future becomes the subject of dealing tract or agreement subject to such agree- in a commercial mortgage loan;’’; and or in the forward contract trade;’’. ments or against cash, securities, or other (3) in section 761(4)— (c) DEFINITION OF MASTER NETTING AGREE- property held by, pledged or and under the (A) by striking ‘‘or’’ at the end of subpara- MENT AND MASTER NETTING AGREEMENT PAR- control of, or due from such master netting graph (D); and TICIPANT.—Section 101 of title 11, United agreement participant to margin, guarantee,

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00086 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13957

secure, or settle such agreements or any con- (i) TERMINATION OR ACCELERATION OF RE- ‘‘(c) As used in this section, the term ‘contract or agreement subject to such agree- PURCHASE AGREEMENTS.—Section 559 of title tractual right’ includes a right set forth in a ments, to the extent such participant is eli- 11, United States Code, is amended— rule or bylaw of a national securities ex- gible to exercise such offset rights under (1) by striking the section heading and in- change, a national securities association, or paragraph (6), (7), or (17) for each individual serting the following: a securities clearing agency, a right set forth contract covered by the master netting ‘‘§ 559. Contractual right to liquidate, termi- in a bylaw of a clearing organization or con- agreement in issue.’’. nate, or accelerate a repurchase agree- tract market or in a resolution of the gov- (2) LIMITATION.—Section 362 of title 11, ment’’; erning board thereof, and a right, whether or United States Code, as amended by section not evidenced in writing, arising under com- and 432(2) of this Act, is amended by adding at mon law, under law merchant, or by reason (2) in the first sentence, by striking ‘‘liq- the end the following: of normal business practice.’’. uidation’’ and inserting ‘‘liquidation, termi- ‘‘(l) LIMITATION.—The exercise of rights not NCILLARY PROCEEDINGS.—Section 304 of nation, or acceleration’’. (l) A subject to the stay arising under subsection title 11, United States Code, is amended by (j) LIQUIDATION, TERMINATION, OR ACCEL- (a) pursuant to paragraph (6), (7), or (17) of adding at the end the following: ERATION OF SWAP AGREEMENTS.—Section 560 subsection (b) shall not be stayed by an order of title 11, United States Code, is amended— ‘‘(d) Any provisions of this title relating to of a court or administrative agency in any (1) by striking the section heading and in- securities contracts, commodity contracts, proceeding under this title.’’. serting following: forward contracts, repurchase agreements, (e) LIMITATION OF AVOIDANCE POWERS swap agreements, or master netting agree- UNDER MASTER NETTING AGREEMENT.—Sec- ‘‘§ 560. Contractual right to liquidate, termi- ments shall apply in a case ancillary to a tion 546 of title 11, United States Code, is nate, or accelerate a swap agreement’’; foreign proceeding under this section or any amended— (2) in the first sentence, by striking ‘‘ter- other section of this title, so that enforce- (1) in subsection (g) (as added by section mination of a swap agreement’’ and inserting ment of contractual provisions of such con- 103 of Public Law 101–311 (104 Stat. 267 et ‘‘liquidation, termination, or acceleration of tracts and agreements in accordance with seq.))— a swap agreement’’; and their terms— (A) by striking ‘‘under a swap agreement’’; (3) by striking ‘‘in connection with any ‘‘(1) shall not be stayed or otherwise lim- and swap agreement’’ and inserting ‘‘in connec- ited by— (B) by striking ‘‘in connection with a swap tion with the termination, liquidation, or ac- ‘‘(A) operation of any provision of this agreement’’ and inserting ‘‘under or in con- celeration of a swap agreement’’. title; or nection with any swap agreement’’; and (k) LIQUIDATION, TERMINATION, ACCELERA- ‘‘(B) order of a court in any case under this (2) by inserting before subsection (i) (as re- TION, OR OFFSET UNDER A MASTER NETTING title; designated by section 407 of this Act) the fol- AGREEMENT AND ACROSS CONTRACTS.—Title ‘‘(2) shall limit avoidance powers to the lowing new subsection: 11, United States Code, is amended by insert- same extent as in a proceeding under chapter ‘‘(h) Notwithstanding sections 544, 545, 547, ing after section 560 the following ønew sec- 7 or 11; and 548(a)(2)(B), and 548(b), the trustee may not tion¿: ‘‘(3) shall not be limited based on the pres- avoid a transfer made by or to a master net- ‘‘§ 561. Contractual right to terminate, liq- ence or absence of assets of the debtor in the ting agreement participant under or in con- uidate, accelerate, or offset under a master United States.’’. nection with any master netting agreement netting agreement and across contracts (m) COMMODITY BROKER LIQUIDATIONS.— or any individual contract covered thereby ‘‘(a) Subject to subsection (b), the exercise Title 11, United States Code, is amended by that is made before the commencement of inserting after section 766 the following: the case, and except to the extent that the of any contractual right, because of a condi- trustee could otherwise avoid such a transfer tion of the kind specified in section 365(e)(1), ‘‘§ 767. Commodity broker liquidation and for- made under an individual contract covered to cause the termination, liquidation, or ac- ward contract merchants, commodity bro- by such master netting agreement (except celeration of or to offset or net termination kers, stockbrokers, financial institutions, under section 548(a)(1)(A)).’’. values, payment amounts or other transfer securities clearing agencies, swap partici- (f) FRAUDULENT TRANSFERS OF MASTER obligations arising under or in connection pants, repo participants, and master net- NETTING AGREEMENTS.—Section 548(d)(2) of with 1 or more (or the termination, liquidating agreement participants title 11, United States Code, is amended— tion, or acceleration of 1 or more)— ‘‘Notwithstanding any other provision of (1) in subparagraph (C), by striking ‘‘and’’; ‘‘(1) securities contracts, as defined in sec- this title, the exercise of rights by a forward (2) in subparagraph (D), by striking the pe- tion 741(7); contract merchant, commodity broker, riod at the end and inserting ‘‘; and’’; and ‘‘(2) commodity contracts, as defined in stockbroker, financial institution, securities (3) by adding at the end the following new section 761(4); clearing agency, swap participant, repo par- subparagraph: ‘‘(3) forward contracts; ticipant, or master netting agreement par- ‘‘(E) a master netting agreement partici- ‘‘(4) repurchase agreements; ticipant under this title shall not affect the pant that receives a transfer in connection ‘‘(5) swap agreements; or priority of any unsecured claim it may have with a master netting agreement or any in- ‘‘(6) master netting agreements, after the exercise of such rights.’’. dividual contract covered thereby takes for shall not be stayed, avoided, or otherwise (n) STOCKBROKER LIQUIDATIONS.—Title 11, value to the extent of such transfer, except, limited by operation of any provision of this United States Code, is amended by inserting with respect to a transfer under any indi- title or by any order of a court or adminis- after section 752 the following: trative agency in any proceeding under this vidual contract covered thereby, to the ex- ‘‘§ 753. Stockbroker liquidation and forward tent that such master netting agreement title. ‘‘(b)(1) A party may exercise a contractual contract merchants, commodity brokers, participant otherwise did not take (or is oth- stockbrokers, financial institutions, securi- erwise not deemed to have taken) such trans- right described in subsection (a) to terminate, liquidate, or accelerate only to the ex- ties clearing agencies, swap participants, fer for value.’’. repo participants, and master netting (g) TERMINATION OR ACCELERATION OF SECU- tent that such party could exercise such a agreement participants RITIES CONTRACTS.—Section 555 of title 11, right under section 555, 556, 559, or 560 for United States Code, is amended— each individual contract covered by the mas- ‘‘Notwithstanding any other provision of (1) by striking the section heading and inter netting agreement in issue. this title, the exercise of rights by a forward serting the following: ‘‘(2) If a debtor is a commodity broker sub- contract merchant, commodity broker, ject to subchapter IV of chapter 7 of this stockbroker, financial institution, securities ‘‘§ 555. Contractual right to liquidate, termi- ø title — clearing agency, swap participant, repo par- nate, or accelerate a securities contract’’; ¿ ‘‘(A) a party may not net or offset an obli- ticipant, financial participant, or master and gation to the debtor arising under, or in con- netting agreement participant under this (2) in the first sentence, by striking ‘‘liq- nection with, a commodity contract against title shall not affect the priority of any un- uidation’’ and inserting ‘‘liquidation, termi- any claim arising under, or in connection secured claim it may have after the exercise nation, or acceleration’’. with, other instruments, contracts, or agree- of such rights.’’. (h) TERMINATION OR ACCELERATION OF COM- ments listed in subsection (a), except to the (o) SETOFF.—Section 553 of title 11, United MODITIES OR FORWARD CONTRACTS.—Section extent that the party has øno¿ positive net States Code, is amended— 556 of title 11, United States Code, is equity in the commodity accounts at the (1) in subsection (a)(3)(C), by inserting amended— debtor, as calculated under such subchapter ‘‘(except for a setoff of a kind described in (1) by striking the section heading and in- IV; and section 362(b)(6), 362(b)(7), 362(b)(17), serting the following: ‘‘(B) another commodity broker may not 362(b)ø(19)¿ (28), 555, 556, 559, or 560)’’ before ‘‘§ 556. Contractual right to liquidate, termi- net or offset an obligation to the debtor aris- the period; and nate, or accelerate a commodities contract ing under, or in connection with, a com- (2) in subsection (b)(1), by striking or forward contract’’; modity contract entered into or held on be- ‘‘362(b)(14),’’ and inserting ‘‘362(b)(17), and half of a customer of the debtor against any ø362(b)(19)¿ 362(b)(28), 555, 556, 559, 560,’’. (2) in the first sentence, by striking ‘‘liq- claim arising under, or in connection with, (p) SECURITIES CONTRACTS, COMMODITY CON- uidation’’ and inserting ‘‘liquidation, termi- other instruments, contracts, or agreements TRACTS, AND FORWARD CONTRACTS.—Title 11, nation, or acceleration’’. referred to in subsection (a). United States Code, is amended—

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 pfrm12 PsN: S04PT1 S13958 CONGRESSIONAL RECORD — SENATE November 4, 1999 (1) in section 362(b)(6), by striking ‘‘finan- ment, or master netting agreement under rities backed by eligible assets, and taking cial institutions,’’ each place such term ap- section 365(a), or if a forward contract mer- actions ancillary thereto. pears and inserting ‘‘financial institution, fi- chant, stockbroker, financial institution, se- ‘‘(5) The term ‘transferred’ means the debt- nancial participant’’; curities clearing agency, repo participant, fi- or, under a written agreement, represented (2) in section 546(e), by inserting ‘‘financial nancial participant, master netting agree- and warranted that eligible assets were sold, participant’’ after ‘‘financial institution,’’; ment participant, or swap participant contributed, or otherwise conveyed with the (3) in section 548(d)(2)(B), by inserting ‘‘fi- liquidates, terminates, or accelerates such intention of removing them from the estate nancial participant’’ after ‘‘financial institu- contract or agreement, damages shall be of the debtor pursuant to subsection (b)(5), tion,’’; measured as of the earlier of— irrespective, without limitation of— (4) in section 555— ‘‘(1) the date of such rejection; or ‘‘(A) whether the debtor directly or indi- (A) by inserting ‘‘financial participant’’ ‘‘(2) the date of such liquidation, termi- rectly obtained or held an interest in the after ‘‘financial institution,’’; and nation, or acceleration.’’; and issuer or in any securities issued by the (B) by inserting before the period ‘‘, a right (2) in the table of sections for chapter 5 by issuer; set forth in a bylaw of a clearing organiza- inserting after the item relating to section ‘‘(B) whether the debtor had an obligation tion or contract market or in a resolution of 561 the following: to repurchase or to service or supervise the the governing board thereof, and a right, ‘‘562. Damage measure in connection with servicing of all or any portion of such eligi- whether or not in writing, arising under swap agreements, securities ble assets; or common law, under law merchant, or by rea- contracts, forward contracts, ‘‘(C) the characterization of such sale, con- son of normal business practice’’; and commodity contracts, repur- tribution, or other conveyance for tax, ac- (5) in section 556, by inserting ‘‘, financial chase agreements, or master counting, regulatory reporting, or other pur- participant’’ after ‘‘commodity broker’’. netting agreements.’’. poses.’’. (q) CONFORMING AMENDMENTS.—Title 11 øof (b) CLAIMS ARISING FROM REJECTION.—Sec- SEC. 904. EFFECTIVE DATE; APPLICATION OF the United States Code¿, United States Code, tion 502(g) of title 11, United States Code, is AMENDMENTS. is amended— amended— (a) EFFECTIVE DATE.—This title shall take (1) in the table of sections for chapter 5— (1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and effect on the date of enactment of this Act. (A) by striking the items relating to sec- (2) by adding at the end the following: (b) APPLICATION OF AMENDMENTS.—The tions 555 and 556 and inserting the following: ‘‘(2) A claim for damages calculated in ac- amendments made by this title shall apply ‘‘555. Contractual right to liquidate, termi- cordance with section 561 shall be allowed with respect to cases commenced or appoint- nate, or accelerate a securities under subsection (a), (b), or (c) of this sec- ments made under any Federal or State law contract. tion, or disallowed under subsection (d) or (e) after the date of enactment of this Act, but ‘‘556. Contractual right to liquidate, termi- of this section, as if such claim had arisen shall not apply with respect to cases com- nate, or accelerate a commod- before the date of the filing of the petition.’’. menced or appointments made under any ities contract or forward con- Federal or State law before the date of en- SEC. 903. ASSET-BACKED SECURITIZATIONS. actment of this Act. tract.’’; Section 541 of title 11, United States Code, (B) by striking the items relating to sec- is amended— TITLE X—PROTECTION OF FAMILY tions 559 and 560 and inserting the following: (1) in subsection (b), by striking ‘‘or’’ at FARMERS ‘‘559. Contractual right to liquidate, termi- the end of paragraph (4); SEC. 1001. REENACTMENT OF CHAPTER 12. nate, or accelerate a repurchase (2) by redesignating paragraph (5) of sub- (a) REENACTMENT.— agreement. section (b) as paragraph (6); (1) IN GENERAL.—Chapter 12 of title 11, ‘‘560. Contractual right to liquidate, termi- (3) by inserting after paragraph (4) of sub- United States Code, as reenacted by section nate, or accelerate a swap section (b) the following new paragraph: 149 of division C of the Omnibus Consolidated agreement.’’; ‘‘(5) any eligible asset (or proceeds there- and Emergency Supplemental Appropria- and of), to the extent that such eligible asset was tions Act, 1999 (Public Law 105–277), and (C) by adding after the item relating to transferred by the debtor, before the date of amended by this Act, is reenacted. section 560 the following: commencement of the case, to an eligible en- (2) EFFECTIVE DATE.—Subsection (a) shall ‘‘561. Contractual right to terminate, liq- tity in connection with an asset-backed take effect on øApril 1, 1999¿ October 1, 1999. (b) CONFORMING AMENDMENT.—Section 302 uidate, accelerate, or offset securitization, except to the extent that of the Bankruptcy, Judges, United States under a master netting agree- such asset (or proceeds or value thereof) may Trustees, and Family Farmer Bankruptcy ment and across contracts.’’; be recovered by the trustee under section 550 Act of 1986 (28 U.S.C. 581 note) is amended by and by virtue of avoidance under section 548(a); striking subsection (f). (2) in the table of sections for chapter 7— or’’; and (A) by inserting after the item relating to (4) by adding at the end the following ønew SEC. 1002. DEBT LIMIT INCREASE. Section 104(b) of title 11, United States section 766 the following: subsection¿: Code, is amended by adding at the end the ‘‘767. Commodity broker liquidation and for- ‘‘(e) For purposes of this section, the following definitions shall apply: following: ward contract merchants, com- ‘‘(4) The dollar amount in section 101(18) ‘‘(1) The term ‘asset-backed securitization’ modity brokers, stockbrokers, shall be adjusted at the same times and in means a transaction in which eligible assets financial institutions, securi- the same manner as the dollar amounts in transferred to an eligible entity are used as ties clearing agencies, swap paragraph (1) of this subsection, beginning the source of payment on securities, the participants, repo participants, with the adjustment to be made on April 1, most senior of which are rated investment and master netting agreement 2001.’’. participants.’’; grade by 1 or more nationally recognized securities rating organizations, issued by an SEC. 1003. ELIMINATION OF REQUIREMENT THAT and FAMILY FARMER AND SPOUSE RE- (B) by inserting after the item relating to issuer. CEIVE OVER 50 PERCENT OF IN- section 752 the following: ‘‘(2) The term ‘eligible asset’ means— COME FROM FARMING OPERATION ‘‘(A) financial assets (including interests ‘‘753. Stockbroker liquidation and forward IN YEAR PRIOR TO BANKRUPTCY. therein and proceeds thereof), either fixed or contract merchants, com- Section 101(18)(A) of title 11, United States revolving, including residential and commer- modity brokers, stockbrokers, Code, is amended by striking ‘‘the taxable cial mortgage loans, consumer receivables, financial institutions, securi- year preceding the taxable year’’ and insert- trade receivables, and lease receivables, ties clearing agencies, swap ing ‘‘at least 1 of the 3 calendar years pre- that, by their terms, convert into cash with- participants, repo participants, ceding the year’’. in a finite time period, plus any rights or and master netting agreement SEC. 1004. CERTAIN CLAIMS OWED TO GOVERN- other assets designed to assure the servicing MENTAL UNITS. participants.’’. or timely distribution of proceeds to security (a) CONTENTS OF PLAN.—Section 1222(a)(2) SEC. 902. DAMAGE MEASURE. holders; of title 11, United States Code, is amended to (a) IN GENERAL.—Title 11, United States ‘‘(B) cash; and read as follows: Code, is amended— ‘‘(C) securities. ‘‘(2) provide for the full payment, in de- (1) by inserting after section 561 the fol- ‘‘(3) The term ‘eligible entity’ means— ferred cash payments, of all claims entitled lowing: ‘‘(A) an issuer; or to priority under section 507, unless— ‘‘§ 562. Damage measure in connection with ‘‘(B) a trust, corporation, partnership, or ‘‘(A) the claim is a claim owed to a govern- swap agreements, securities contracts, for- other entity engaged exclusively in the busi- mental unit that arises as a result of the ward contracts, commodity contracts, re- ness of acquiring and transferring eligible as- sale, transfer, exchange, or other disposition purchase agreements, or master netting sets directly or indirectly to an issuer and of any farm asset used in the debtor’s farm- agreements taking actions ancillary thereto. ing operation, in which case the claim shall ‘‘If the trustee rejects a swap agreement, ‘‘(4) The term ‘issuer’ means a trust, cor- be treated as an unsecured claim that is not securities contract (as defined in section poration, partnership, or other entity en- entitled to priority under section 507, but the 741), forward contract, commodity contract gaged exclusively in the business of acquir- debt shall be treated in such manner only if (as defined in section 761) repurchase agreeing and holding eligible assets, issuing secu- the debtor receives a discharge; or

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13959 ‘‘(B) the holder of a particular claim agrees section (c), is amended by inserting after øSEC. 1104. APPOINTMENT OF OMBUDSMAN TO to a different treatment of that claim; and’’. paragraph (40A) the following: ACT AS PATIENT ADVOCATE. (b) SPECIAL NOTICE PROVISIONS.—Section ø‘‘(40B) ‘patient records’ means any writ- ø(a) IN GENERAL.— 1231(d) of title 11, United States Code, is ten document relating to a patient or record ø(1) APPOINTMENT OF OMBUDSMAN.—Sub- amended by striking ‘‘a State or local gov- recorded in a magnetic, optical, or other chapter II of chapter 3 of title 11, United ernmental unit’’ and inserting ‘‘any govern- form of electronic medium;’’. States Code, is amended by inserting after mental unit’’. øSEC. 1102. DISPOSAL OF PATIENT RECORDS. section 331 the following: øTITLE XI—HEALTH CARE AND EMPLOYEE ø(a) IN GENERAL.—Subchapter III of chap- ø‘‘§ 332. Appointment of ombudsman BENEFITS ter 3 of title 11, United States Code, is ø‘‘(a) Not later than 30 days after a case is øSEC. 1101. DEFINITIONS. amended by adding at the end the following: commenced by a health care business under ø(a) HEALTH CARE BUSINESS DEFINED.—Sec- ø‘‘§ 351. Disposal of patient records chapter 7, 9, or 11, the court shall appoint an tion 101 of title 11, United States Code, as ø‘‘If a health care business commences a ombudsman to represent the interests of the amended by section 1004(a) of this Act, is case under chapter 7, 9, or 11, and the trustee patients of the health care business. amended— does not have a sufficient amount of funds to ø‘‘(b) An ombudsman appointed under sub- ø(1) by redesignating paragraph (27A) as pay for the storage of patient records in the section (a) shall— paragraph (27C); and manner required under applicable Federal or ø‘‘(1) monitor the quality of patient care, ø(2) inserting after paragraph (27) the fol- State law, the following requirements shall to the extent necessary under the cir- lowing: apply: cumstances, including reviewing records and ‘‘(27A) ‘health care business’— ø ø‘‘(1) The trustee shall mail, by certified interviewing patients and physicians; ø‘‘(A) means any public or private entity mail, a written request to each appropriate ø‘‘(2) not later than 60 days after the date (without regard to whether that entity is or- Federal or State agency to request permis- of appointment, and not less frequently than ganized for profit or not for profit) that is sion from that agency to deposit the patient every 60 days thereafter, report to the court, primarily engaged in offering to the general records with that agency. at a hearing or in writing, regarding the public facilities and services for— ø‘‘(2) If no appropriate Federal or State quality of patient care at the health care ‘‘(i) the diagnosis or treatment of injury, ø agency agrees to permit the deposit of pa- business involved; and deformity, or disease; and tient records referred to in paragraph (1) by ø‘‘(3) if the ombudsman determines that ‘‘(ii) surgical, drug treatment, psychiatric ø the date that is 60 days after the trustee the quality of patient care is declining sig- or obstetric care; and mails a written request under that para- nificantly or is otherwise being materially ø‘‘(B) includes— graph, the trustee shall— compromised, notify the court by motion or ø‘‘(i) any— ø‘‘(A) publish notice, in 1 or more appro- written report, with notice to appropriate ø‘‘(I) general or specialized hospital; priate newspapers, that if those patient parties in interest, immediately upon mak- ø‘‘(II) ancillary ambulatory, emergency, or ing that determination. surgical treatment facility; records are not claimed by the patient or an insurance provider (if applicable law permits ø‘‘(c) An ombudsman shall maintain any ø‘‘(III) hospice; the insurance provider to make that claim) information obtained by the ombudsman ø‘‘(IV) health maintenance organization; by the date that is 60 days after the date of under this section that relates to patients ø‘‘(V) home health agency; and that notification, the trustee will destroy (including information relating to patient ø‘‘(VI) other health care institution that is similar to an entity referred to in subclause the patient records; and records) as confidential information.’’. LERICAL AMENDMENT.—The chapter (I), (II), (III), (IV), or (V); and ø‘‘(B) during the 60-day period described in ø(2) C subparagraph (A), the trustee shall attempt analysis for chapter 3 of title 11, United ø‘‘(ii) any long-term care facility, includ- States Code, is amended by inserting after ing any— to notify directly each patient that is the subject of the patient records concerning the the item relating to section 331 the fol- ø‘‘(I) skilled nursing facility; patient records by mailing to the last known lowing: ø‘‘(II) intermediate care facility; address of that patient an appropriate notice ø‘‘(III) assisted living facility; ø‘‘332. Appointment of ombudsman.’’. regarding the claiming or disposing of pa- ø‘‘(IV) home for the aged; ø(b) COMPENSATION OF OMBUDSMAN.—Sec- tient records. ø‘‘(V) domicilary care facility; and tion 330(a)(1) of title 11, United States Code, ‘‘(3) If, after providing the notification ø‘‘(VI) health care institution that is re- ø is amended— lated to a facility referred to in subclause under paragraph (2), patient records are not ø(1) in the matter proceeding subparagraph (I), (II), (III), (IV), or (V), if that institution claimed during the 60-day period described in (A), by inserting ‘‘an ombudsman appointed is primarily engaged in offering room, board, paragraph (2)(A) or in any case in which a under section 331, or’’ before ‘‘a professional laundry, or personal assistance with activi- notice is mailed under paragraph (2)(B), dur- person’’; and ties of daily living and incidentals to activi- ing the 90-day period beginning on the date ø(2) in subparagraph (A), by inserting ‘‘om- ties of daily living;’’. on which the notice is mailed, by a patient budsman,’’ before ‘‘professional person’’. ø(b) HEALTH MAINTENANCE ORGANIZATION or insurance provider in accordance with øSEC. 1105. DEBTOR IN POSSESSION; DUTY OF DEFINED.—Section 101 of title 11, United that paragraph, the trustee shall destroy TRUSTEE TO TRANSFER PATIENTS. States Code, as amended by subsection (a), is those records by— ø(a) IN GENERAL.—Section 704(a) of title 11, amended by inserting after paragraph (27A) ø‘‘(A) if the records are written, shredding United States Code, as amended by section the following: or burning the records; or 219 of this Act, is amended— ø‘‘(27B) ‘health maintenance organization’ ø‘‘(B) if the records are magnetic, optical, ø(1) in paragraph (9), by striking ‘‘and’’ at means any person that undertakes to provide or other electronic records, by otherwise de- the end; or arrange for basic health care services stroying those records so that those records ø(2) in paragraph (10), by striking the pe- through an organized system that— cannot be retrieved.’’. riod and inserting ‘‘; and’’; and ø‘‘(A)(i) combines the delivery and financ- ø(b) CLERICAL AMENDMENT.—The chapter ø(3) by adding at the end the following: ing of health care to enrollees; and analysis for chapter 3 of title 11, United ø‘‘(11) use all reasonable and best efforts to ø‘‘(ii)(I) provides— States Code, is amended by inserting after transfer patients from a health care business ø‘‘(aa) physician services directly through the item relating to section 350 the fol- that is in the process of being closed to an physicians or 1 or more groups of physicians; lowing: appropriate health care business that— and ø‘‘351. Disposal of patient records.’’. ø‘‘(A) is in the vicinity of the health care ø‘‘(bb) basic health care services directly øSEC. 1103. ADMINISTRATIVE EXPENSE CLAIM business that is closing; or under a contractual arrangement; and FOR COSTS OF CLOSING A HEALTH ø‘‘(B) provides the patient with services ø‘‘(II) if reasonable and appropriate, pro- CARE BUSINESS. that are substantially similar to those provides physician services and basic health øSection 503(b) of title 11, United States vided by the health care business that is in care services through arrangements other Code, is amended— the process of being closed; and (1) in paragraph (5), by striking ‘‘and’’ at than the arrangements referred to in clause ø ø‘‘(C) maintains a reasonable quality of (i); and the end; care.’’. (2) in paragraph (6), by striking the period ø‘‘(B) includes any organization described ø ø(b) CONFORMING AMENDMENT.—Section in subparagraph (A) that provides, or ar- at the end and inserting ‘‘; and’’; and 1106(a)(1) of title 11, United States Code, is ranges for, health care services on a prepay- ø(3) by adding at the end the following: amended by striking ‘‘and 704(9)’’ and insert- ment or other financial basis;’’. ø‘‘(7) the actual, necessary costs and ex- ing ‘‘704(9), and 704(10)’’.¿ (c) PATIENT.—Section 101 of title 11, penses of closing a health care business in- ø TITLE øXII¿ XI—TECHNICAL United States Code, as amended by sub- curred by a trustee, including any cost or ex- AMENDMENTS section (b), is amended by inserting after pense incurred— paragraph (40) the following: ø‘‘(A) in disposing of patient records in ac- SEC. ø1201.¿ 1101. DEFINITIONS. ø‘‘(40A) ‘patient’ means any person who ob- cordance with section 351; or Section 101 of title 11, United States Code, tains or receives services from a health care ø‘‘(B) in connection with transferring pa- as amended by section ø1101¿ 1003 of this Act, business;’’. tients from the health care business that is is amended— ø(d) PATIENT RECORDS.—Section 101 of title in the process of being closed to another (1) by striking ‘‘In this title—’’ and insert- 11, United States Code, as amended by sub- health care business.’’. ing ‘‘In this title:’’;

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00089 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 pfrm12 PsN: S04PT1 S13960 CONGRESSIONAL RECORD — SENATE November 4, 1999 (2) in each paragraph, by inserting ‘‘The øSEC. 1210. PRIORITIES. (3) by striking ‘‘the interest’’ and inserting term’’ after the paragraph designation; øSection 507(a) of title 11, United States ‘‘such interest’’. (3) in paragraph (35)(B), by striking ‘‘para- Code, as amended by sections 211 and 229 of SEC. ø1218.¿ 1116. DISPOSITION OF PROPERTY OF graphs (21B) and (33)(A)’’ and inserting this Act, is amended— THE ESTATE. ‘‘paragraphs (23) and (35)’’; ø(1) in paragraph (4)(B), by striking the Section 726(b) of title 11, United States (4) in each of paragraphs (35A) and (38), by semicolon at the end and inserting a period; Code, is amended by striking ‘‘1009,’’. striking ‘‘; and’’ at the end and inserting a and SEC. ø1219.¿ 1117. GENERAL PROVISIONS. period; ø(2) in paragraph (8), by inserting ‘‘unse- Section 901(a) of title 11, United States (5) in paragraph (51B)— cured’’ after ‘‘allowed’’. Code, as amended by section ø901(k)¿ 502 of (A) by inserting ‘‘who is not a family farm- øSEC. 1211. EXEMPTIONS. this Act, is amended by inserting ‘‘1123(d),’’ er’’ after ‘‘debtor’’ the first place it appears; øSection 522(g)(2) of title 11, United States after ‘‘1123(b),’’. and Code, as amended by section 311 of this Act, SEC. ø1220.¿ 1118. ABANDONMENT OF RAILROAD (B) by striking ‘‘thereto having aggregate’’ is amended by striking ‘‘subsection (f)(2)’’ LINE. and all that follows through the end of the and inserting ‘‘subsection (f)(1)(B)’’.¿ Section 1170(e)(1) of title 11, United States paragraph; SEC. ø1212.¿ 1110. EXCEPTIONS TO DISCHARGE. Code, is amended by striking ‘‘section 11347’’ (6) by striking paragraph (54) and inserting Section 523 of title 11, United States Code, and inserting ‘‘section 11326(a)’’. the following: as amended by section ø229¿ 714 of this Act, SEC. ø1221.¿ 1119. CONTENTS OF PLAN. ‘‘(54) The term ‘transfer’ means— is amended— Section 1172(c)(1) of title 11, United States ‘‘(A) the creation of a lien; (1) as amended by section 304(e) of Public Code, is amended by striking ‘‘section 11347’’ ‘‘(B) the retention of title as a security in- Law 103–394 (108 Stat. 4133), in paragraph (15), and inserting ‘‘section 11326(a)’’. terest; by transferring such paragraph so as to in- SEC. ø1222.¿ 1120. DISCHARGE UNDER CHAPTER ‘‘(C) the foreclosure of a debtor’s equity of sert øit¿ such paragraph after paragraph (14) 12. redemption; or of subsection (a); Subsections (a) and (c) of section 1228 of ‘‘(D) each mode, direct or indirect, abso- ø(2) in subsection (a)— title 11, United States Code, are amended by lute or conditional, voluntary or involun- ø(A) in paragraph (3), by striking ‘‘or (6)’’ striking ‘‘1222(b)(10)’’ each place it appears tary, of disposing of or parting with— each place it appears and inserting ‘‘(6), or and inserting ‘‘1222(b)(9)’’. ‘‘(i) property; or (15)’’; SEC. ø1223.¿ 1121. BANKRUPTCY CASES AND PRO- ‘‘(ii) an interest in property;’’; ø(B) in paragraph (9), by striking ‘‘motor CEEDINGS. (7) in each of paragraphs (1) through (35), in vehicle or vessel’’ and inserting ‘‘motor vehi- Section 1334(d) of title 28, United States each of paragraphs (36) and (37), and in each cle, vessel, or aircraft’’; and Code, is amended— of paragraphs (40) through (55) (including ø(C) in paragraph (15), as so redesignated (1) by striking ‘‘made under this subparagraph (54), as amended by paragraph (6) by paragraph (1) of this subsection, by in- section’’ and inserting ‘‘made under sub- of this section), by striking the semicolon at serting ‘‘to a spouse, former spouse, or child section (c)’’; and the end and inserting a period; and of the debtor and’’ after ‘‘(15)’’; and¿ (2) by striking ‘‘This subsection’’ and in- (8) by redesignating paragraphs (4) through (2) in subsection (a)(9), by striking ‘‘motor ve- serting ‘‘Subsection (c) and this subsection’’. (55), including paragraph (54), as amended by hicle or vessel’’ and inserting ‘‘motor vehicle, SEC. ø1224.¿ 1122. KNOWING DISREGARD OF paragraph (6) of this section, in entirely nu- vessel, or aircraft’’; and BANKRUPTCY LAW OR RULE. merical sequence. (3) in subsection (e), by striking ‘‘a in- Section 156(a) of title 18, United States SEC. ø1202.¿ 1102. ADJUSTMENT OF DOLLAR sured’’ and inserting ‘‘an insured’’. Code, is amended— AMOUNTS. SEC. ø1213.¿ 1111. EFFECT OF DISCHARGE. (1) in the first undesignated paragraph— Section 104 of title 11, United States Code, Section 524(a)(3) of title 11, United States (A) by inserting ‘‘(1) the term’’ before is amended by inserting ‘‘522(f)(3), Code, is amended by striking ‘‘section 523’’ ‘‘ ‘bankruptcy’’; and ø707(b)(5),¿’’ after ‘‘522(d),’’ each place it ap- and all that follows through ‘‘or that’’ and (B) by striking the period at the end and pears. inserting ‘‘section 523, 1228(a)(1), or 1328(a)(1), inserting ‘‘; and’’; and SEC. ø1203.¿ 1103. EXTENSION OF TIME. or that’’. (2) in the second undesignated paragraph— Section 108(c)(2) of title 11, United States SEC. ø1214.¿ 1112. PROTECTION AGAINST DIS- (A) by inserting ‘‘(2) the term’’ before CRIMINATORY TREATMENT. Code, is amended by striking ‘‘922’’ and all ‘‘ ‘document’’; and Section 525(c) of title 11, United States that follows through ‘‘or’’, and inserting (B) by striking ‘‘this title’’ and inserting Code, is amended— ‘‘922, 1201, or’’. ‘‘title 11’’. (1) in paragraph (1), by inserting ‘‘student’’ SEC. ø1204.¿ 1104. TECHNICAL AMENDMENTS. SEC. ø1225.¿ 1123. TRANSFERS MADE BY NON- before ‘‘grant’’ the second place it appears; PROFIT CHARITABLE CORPORA- Title 11, øof the¿ United States Code, is and TIONS. amended— (2) in paragraph (2), by striking ‘‘the pro- (a) SALE OF PROPERTY OF ESTATE.—Section (1) in section 109(b)(2), by striking ‘‘sub- gram operated under part B, D, or E of’’ and 363(d) of title 11, United States Code, is section (c) or (d) of’’; and inserting ‘‘any program operated under’’. amended by striking ‘‘only’’ and all that fol- ø(2) in section 541(b)(4), by adding ‘‘or’’ at SEC. ø1215.¿ 1113. PROPERTY OF THE ESTATE. lows through the end of the subsection and the end; and Section 541(b)(4)(B)(ii) of title 11, United inserting ‘‘only— ø(3)¿ (2) in section 552(b)(1), by striking States Code, is amended by inserting ‘‘365 ‘‘(1) in accordance with applicable non- ‘‘product’’ each place it appears and insert- or’’ before ‘‘542’’. bankruptcy law that governs the transfer of ing ‘‘products’’. SEC. ø1216.¿ 1114. PREFERENCES. property by a corporation or trust that is SEC. ø1205.¿ 1105. PENALTY FOR PERSONS WHO (a) IN GENERAL.—Section 547 of title 11, not a moneyed, business, or commercial cor- NEGLIGENTLY OR FRAUDULENTLY United States Code, as amended by section poration or trust; and PREPARE BANKRUPTCY PETITIONS. 201(b) of this Act, is amended— ‘‘(2) to the extent not inconsistent with Section 110(j)(3) of title 11, United States (1) in subsection (b), by striking ‘‘sub- any relief granted under subsection (c), (d), Code, is amended by striking ‘‘attorney’s’’ section (c)’’ and inserting ‘‘subsections (c) (e), or (f) of section 362.’’. and inserting ‘‘attorneys’ ’’. and (i)’’; and (b) CONFIRMATION OF PLAN FOR REORGA- SEC. ø1206.¿ 1106. LIMITATION ON COMPENSA- (2) by adding at the end the following: NIZATION.—Section 1129(a) of title 11, United TION OF PROFESSIONAL PERSONS. ‘‘(i) If the trustee avoids under subsection States Code, as amended by section 212 of Section 328(a) of title 11, United States (b) a security interest given between 90 days this Act, is amended by adding at the end Code, is amended by inserting ‘‘on a fixed or and 1 year before the date of the filing of the the following: percentage fee basis,’’ after ‘‘hourly basis,’’. petition, by the debtor to an entity that is ‘‘(15) All transfers of property of the plan SEC. ø1207.¿ 1107. SPECIAL TAX PROVISIONS. not an insider for the benefit of a creditor shall be made in accordance with any appli- that is an insider, such security interest Section 346(g)(1)(C) of title 11, United cable provisions of nonbankruptcy law that shall be considered to be avoided under this States Code, is amended by striking ‘‘, ex- govern the transfer of property by a corpora- section only with respect to the creditor cept’’ and all that follows through ‘‘1986’’. tion or trust that is not a moneyed, business, that is an insider.’’. or commercial corporation or trust.’’. SEC. ø1208.¿ 1108. EFFECT OF CONVERSION. (b) APPLICABILITY.—The amendments made (c) TRANSFER OF PROPERTY.—Section 541 of Section 348(f)(2) of title 11, United States by this section shall apply to any case that title 11, United States Code, is amended by Code, is amended by inserting ‘‘of the es- pending or commenced on or after the date adding at the end the following: tate’’ after ‘‘property’’ the first place it ap- of enactment of this Act. ‘‘(f) Notwithstanding any other provision pears. SEC. ø1217.¿ 1115. POSTPETITION TRANSACTIONS. of this title, property that is held by a debt- SEC. ø1209.¿ 1109. ALLOWANCE OF ADMINISTRA- Section 549(c) of title 11, United States or that is a corporation described in section TIVE EXPENSES. Code, is amended— 501(c)(3) of the Internal Revenue Code of 1986 Section 503(b)(4) of title 11, United States (1) by inserting ‘‘an interest in’’ after and exempt from tax under section 501(a) of Code, is amended by inserting ‘‘subparagraph ‘‘transfer of’’; such Code may be transferred to an entity (A), (B), (C), (D), or (E) of’’ before ‘‘paragraph (2) by striking ‘‘such property’’ and insert- that is not such a corporation, but only (3)’’. ing ‘‘such real property’’; and under the same conditions as would apply if

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00090 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13961

the debtor had not filed a case under this (2) VACANCIES.—The first vacancy occur- travel expense identified under clause (i), title.’’. ring in the office of a bankruptcy judge in with the name of the bankruptcy judge to (d) APPLICABILITY.—The amendments made each of the judicial districts set forth in whom the travel applies; and by this section shall apply to a case pending paragraph (1) that— ‘‘(iii) the number of days of each travel de- under title 11, United States Code, on the (A) results from the death, retirement, res- scribed under clause (ii), with the name of date of enactment of this Act, except that ignation, or removal of a bankruptcy judge; the bankruptcy judge to whom the travel ap- the court shall not confirm a plan under and plies. chapter 11 of this title without considering (B) occurs 5 years or more after the ap- ‘‘(4)(A) The Director of the Administrative whether this section would substantially af- pointment date of a bankruptcy judge ap- Office of the United States Courts shall— fect the rights of a party in interest who pointed under paragraph (1); ‘‘(i) consolidate the reports submitted first acquired rights with respect to the shall not be filled. under paragraph (3) into a single report; and debtor after the date of the petition. The (c) EXTENSIONS.— ‘‘(ii) annually submit such consolidated re- parties who may appear and be heard in a (1) IN GENERAL.—The temporary bank- port to Congress. proceeding under this section include the at- ruptcy judgeship positions authorized for the ‘‘(B) The consolidated report submitted torney general of the State in which the northern district of Alabama, the district of under this paragraph shall include the spe- debtor is incorporated, was formed, or does Delaware, the district of Puerto Rico, the cific information required under paragraph business. (3)(B), including the name of each bank- (e) RULE OF CONSTRUCTION.—Nothing in district of South Carolina, and the eastern district of Tennessee under section 3(a) (1), ruptcy judge with respect to clauses (i), (ii), this section shall be construed to require the and (iii) of paragraph (3)(B).’’. court in which a case under chapter 11 is (3), (7), (8), and (9) of the Bankruptcy Judge- pending to remand or refer any proceeding, ship Act of 1992 (28 U.S.C. 152 note) are ex- TITLE øXIII¿ XII—GENERAL EFFECTIVE issue, or controversy to any other court or to tended until the first vacancy occurring in DATE; APPLICATION OF AMENDMENTS require the approval of any other court for the office of a bankruptcy judge in the appli- SEC. ø1301.¿ 1201. EFFECTIVE DATE; APPLICATION the transfer of property. cable district resulting from the death, re- OF AMENDMENTS. SEC. ø1226.¿ 1124. PROTECTION OF VALID PUR- tirement, resignation, or removal of a bank- (a) EFFECTIVE DATE.—Except as provided CHASE MONEY SECURITY INTER- ruptcy judge and occurring— otherwise in this Act, this Act and the ESTS. (A) 8 years or more after November 8, 1993, amendments made by this Act shall take ef- Section 547(c)(3)(B) of title 11, United with respect to the northern district of Ala- fect 180 days after the date of enactment of States Code, is amended by striking ‘‘20’’ and bama; this Act. inserting ‘‘30’’. (B) 10 years or more after October 28, 1993, (b) APPLICATION OF AMENDMENTS.—The SEC. ø1227.¿ 1125. EXTENSIONS. with respect to the district of Delaware; amendments made by this Act shall not Section 302(d)(3) of the Bankruptcy, (C) 8 years or more after August 29, 1994, apply with respect to cases commenced Judges, United States Trustees, and Family with respect to the district of Puerto Rico; under title 11, United States Code, before the Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 (D) 8 years or more after June 27, 1994, with effective date of this Act. note) is amended— respect to the district of South Carolina; and The committee amendments were (1) in subparagraph (A), in the matter fol- (E) 8 years or more after November 23, 1993, agreed to. lowing clause (ii), by striking ‘‘or October 1, with respect to the eastern district of Ten- Mr. GRASSLEY addressed the Chair. nessee. 2002, whichever occurs first’’; and The PRESIDING OFFICER. The Sen- (2) in subparagraph (F)— (2) APPLICABILITY OF OTHER PROVISIONS.— (A) in clause (i)— All other provisions of section 3 of the Bank- ator from Iowa. (i) in subclause (II), by striking ‘‘or Octo- ruptcy Judgeship Act of 1992 remain applica- Mr. GRASSLEY. Mr. President, be- ber 1, 2002, whichever occurs first’’; and ble to such temporary judgeship positions. fore we start this very important bank- (ii) in the matter following subclause (II), (d) TECHNICAL AMENDMENT.—The first sen- ruptcy reform legislation, first, thanks by striking ‘‘October 1, 2003, or’’; and tence of section 152(a)(1) of title 28, United for working out the necessary par- (B) in clause (ii), in the matter following States Code, is amended to read as follows: liamentary arrangements for bringing subclause (II)— ‘‘Each bankruptcy judge to be appointed for this bill up are owed to our majority a judicial district as provided in paragraph (i) by striking ‘‘before October 1, 2003, or’’; leader, the Senator from Mississippi, and (2) shall be appointed by the United States (ii) by striking ‘‘, whichever occurs first’’. court of appeals for the circuit in which such and our minority leader, the Demo- SEC. ø1228.¿ 1126. BANKRUPTCY JUDGESHIPS. district is located.’’. cratic leader, the Senator from South (a) SHORT TITLE.—This section may be (e) TRAVEL EXPENSES OF BANKRUPTCY Dakota. So I thank them very much. cited as the ‘‘Bankruptcy Judgeship Act of JUDGES.—Section 156 of title 28, United Then secondly, not only because this 1999’’. States Code, is amended by adding at the end bill is up now on the floor of the Senate (b) TEMPORARY JUDGESHIPS.— the following: but also for the process of getting it (1) APPOINTMENTS.—The following judge- ‘‘(g)(1) In this subsection, the term ‘travel through the Judiciary Committee, we, ship positions shall be filled in the manner expenses’— obviously, thank the Senator from prescribed in section 152(a)(1) of title 28, ‘‘(A) means the expenses incurred by a United States Code, for the appointment of bankruptcy judge for travel that is not di- Utah, the chairman of the Judiciary bankruptcy judges provided for in section rectly related to any case assigned to such Committee, Mr. HATCH, for his leader- 152(a)(2) of such title: bankruptcy judge; and ship at the level of the committee and (A) One additional bankruptcy judgeship ‘‘(B) shall not include the travel expenses for a lot of things that had to be for the eastern district of California. of a bankruptcy judge if— worked out to get us to the floor. And (B) Four additional bankruptcy judgeships ‘‘(i) the payment for the travel expenses is also thanks to the Senator from for the central district of California. paid by such bankruptcy judge from the per- Vermont, the ranking Democratic (C) One additional bankruptcy judgeship sonal funds of such bankruptcy judge; and member of the Judiciary Committee, for the southern district of Florida. ‘‘(ii) such bankruptcy judge does not re- (D) Two additional bankruptcy judgeships ceive funds (including reimbursement) from for his cooperation. for the district of Maryland. the United States or any other person or en- Since the beginning of the year, I (E) One additional bankruptcy judgeship tity for the payment of such travel expenses. have had the opportunity to work with for the eastern district of Michigan. ‘‘(2) Each bankruptcy judge shall annually the ranking minority member of our (F) One additional bankruptcy judgeship submit the information required under para- subcommittee that I chair, the Sub- for the southern district of Mississippi. graph (3) to the chief bankruptcy judge for committee on Administrative Over- (G) One additional bankruptcy judgeship the district in which the bankruptcy judge is sight and the Courts, the Senator from for the district of New Jersey. assigned. New Jersey, Mr. TORRICELLI. Working (H) One additional bankruptcy judgeship ‘‘(3)(A) Each chief bankruptcy judge shall for the eastern district of New York. submit an annual report to the Director of with him has been a real treat, always (I) One additional bankruptcy judgeship for the Administrative Office of the United with efforts to reach agreement. And the northern district of New York. States Courts on the travel expenses of each for people throughout this country who (J) One additional bankruptcy judgeship bankruptcy judge assigned to the applicable have a tendency to be cynical about for the southern district of New York. district (including the travel expenses of the Washington, because of the lack of co- (K) One additional bankruptcy judgeship chief bankruptcy judge of such district). operation between the Democratic for the eastern district of Pennsylvania. ‘‘(B) The annual report under this para- Party and the Republican Party, I wish (L) One additional bankruptcy judgeship graph shall include— they could feel the working relation- for the middle district of Pennsylvania. ‘‘(i) the travel expenses of each bankruptcy (M) One additional bankruptcy judgeship judge, with the name of the bankruptcy ship Senator TORRICELLI, a Democrat, for the western district of Tennessee. judge to whom the travel expenses apply; and I have had working on this legisla- (N) One additional bankruptcy judgeship ‘‘(ii) a description of the subject matter tion from its original introduction, for the eastern district of Virginia. and purpose of the travel relating to each with his not agreeing to everything I

VerDate 29-OCT-99 06:37 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 pfrm12 PsN: S04PT1 S13962 CONGRESSIONAL RECORD — SENATE November 4, 1999 introduced—he was a cosponsor—but harder for people who can repay their cal discipline initiated by Congress, with a spirit that throughout this proc- debts to wipe them away. It seems like and the hard work of the American ess, which has gone on since January common sense to require people who people, we have the first balanced to this point of bringing the bill up on can repay their debts to pull their own budget in a generation. Unemployment the floor of the Senate, that we would weight. But under our current bank- is low, we have a burgeoning stock work cooperatively and in a spirit of ruptcy laws, someone can get full debt market and most Americans are opti- cooperation to reach further com- cancellation in chapter 7 with no ques- mistic about the future. But in the promises. I hope that brings us to a tions asked. If we pass S. 625, bank- midst of such prosperity, about one and point where we do not have a lot of ruptcy judges and trustees will start a half million Americans declared controversial amendments on the floor asking questions about ability to bankruptcy just in 1998. Based on fil- of the Senate, at least as they relate to repay. And, if someone seeking bank- ings for the first two quarters of 1999, it the bankruptcy subject, the relevant ruptcy can repay, they will be chan- looks like there will be just under 1.4 amendments. neled into Chapter 13 of the Bank- million bankruptcy filings for this There will be a lot of amendments ruptcy Code, which requires people to year. To put this in some historical that have been in this bipartisan unan- repay some portion of their debts as a context, since 1990 the rate of personal imous-consent agreement that are con- pre-condition for limited debt cancella- bankruptcy filings has increased al- sidered nongermane amendments, tion. Of course, people who can’t repay most 100 percent. Now, I don’t think which will be brought up, that are con- can still use the bankruptcy system as that anyone knows all the reasons un- troversial. We expected that to be part they would have before. But, for people derlying the bankruptcy crisis. But I of the process. But for the amendments with higher incomes who can repay think I can talk about what’s not at we have that relate to bankruptcy, I their debts, the free ride will be over. the root of the bankruptcy crisis. I think there will be a lot fewer amend- The basic bankruptcy policy question have a chart here that shows the dra- ments because of the cooperation Sen- the Senate has to answer is this: matic increase in bankruptcies since ator TORRICELLI has shown in this com- Should people with means be required 1993. During the same timeframe, as promise. to pay at least some of their debts the chart shows, unemployment has de- For the second time in 2 years, the under Chapter 13 or not? Right now, clined just as dramatically and real Senate is considering fundamental the current bankruptcy system is ob- wages have risen to an all-time high. bankruptcy reform. Last year, we livious to the financial condition of The economic numbers tell us that passed a bankruptcy reform bill but someone asking to be excused from the bankruptcy crisis isn’t the result of the Senate was prevented from consid- paying his debts. The richest captain of people who can’t get jobs. And the jobs ering the final conference report at the industry could walk into a Bankruptcy that people do have are paying more very end of the 105th Congress. This Court tomorrow and walk out with his than ever. So, the bankruptcy crisis year, we have the chance to finish this debts erased. And, as I described ear- isn’t about desperate people con- important work. We’ve been waiting lier, the rest of America will pay high- fronting layoffs and underemployment. for some time to get this bill up on the er prices for goods and services as a re- With the economy doing so well, and floor, and now that we’re here, I’m anx- sult. with so many Americans with high- ious to begin the debate. I would ask my colleagues to think quality, good-paying jobs, we have to Bankruptcy is one of the most com- about that for a second. If we had no look deep into the eroding moral val- plicated subjects we will consider this bankruptcy system at all, and we were ues of some to find out what’s driving year. So, at the outset, Mr. President, starting from scratch, would we design the bankruptcy crisis. Some people flat I think it’s important for me as the a system that lets the rich walk away out don’t want to honor their obliga- chairman of the subcommittee with ju- from their debts and shift the costs to tions and are looking for an easy way risdiction over bankruptcy to take a society at large, including the poor and out. In the opinion of this Senator, a few minutes to describe what bank- the middle class? I don’t think that significant part of the bankruptcy cri- ruptcy reform is really all about in any of us here would design such a sys- sis is basically a moral crisis. Some commonsense terms that we can all un- tem. But somehow, that’s exactly the people just don’t have a sense of per- derstand. Simply put, bankruptcy is a system we have now. I could easily sonal responsibility. court proceeding where people get their imagine the fiery rhetoric from our It seems clear to me that our lax debts wiped away. Every time a debt is more liberal friends if we on the Repub- bankruptcy system must bear some of wiped away through bankruptcy some- lican side were to even suggest that the the blame for the bankruptcy crisis. body loses money. That’s plain and Senate create a bankruptcy system Just as the welfare system we used to simple common sense. Of course, when that lets the wealthy and the well-to- have encouraged people not to get jobs somebody who extends credit has their do walk away from their debts and and encouraged people not to even obligation wiped away in bankruptcy, stick working Americans with the tab. think about pulling their own weight, they are forced to make a decision. But we have just such a system in our lax bankruptcy system doesn’t Should this loss simply be swallowed as place today. even ask people to consider paying a cost of business? Or do you raise Mr. President, if Senators ask them- what they owe. Such a system obvi- prices for other customers to make up selves the question ‘‘Who wins and who ously contributes to the fraying of the for your losses? loses under current law, and who will moral fiber of our Nation. Why pay When bankruptcy losses are rare or win and who will lose if we pass S. 625,’’ your bills when you can walk away infrequent, lenders can just swallow then I think that the importance of with no questions asked? Why honor the loss. But when bankruptcies are bankruptcy reform becomes pretty ob- your obligations when you can take frequent and common, lenders have to vious. If you believe President Clin- the easy way out through bankruptcy? raise their prices to offset losses. For ton’s own Treasury Secretary, society If we don’t tighten the bankruptcy sys- this reason, Treasury Secretary Larry at large loses under the current system tem, this moral erosion will certainly Summers testified at his confirmation when bankruptcies drive up interest continue. hearing before the Senate Finance rates. Of course, it’s the deadbeats who Mr. President, the polls are very Committee that bankruptcies tend to walk away from their debts who win clear that the American people want drive up interest rates. Mr. President, under the current system. If we pass the bankruptcy system tightened up. if you believe Secretary Summers, this bill, then the American people will In my home State of Iowa, 78 percent bankruptcies are everyone’s problem. win as upward pressure on interest of Iowans surveyed favor bankruptcy Regular hardworking Americans have rates and prices is removed. And people reform. And the picture is the same na- to pay higher prices for goods and serv- who look at bankruptcy as a conven- tionally. According to the PBS pro- ices as a result of bankruptcies. The ient financial planning tool will lose. gram ‘‘Techno-Politics,’’ almost 70 per- bankruptcy bill we’re considering will Mr. President, I think our situation cent of Americans support bankruptcy discourage bankruptcies, and therefore is urgent. Our bankruptcy system is reform. The American people seem to lessen upward pressure on interest spiraling out of control. These are good sense that the bankruptcy crisis is fun- rates and higher prices by making it times in our Nation. Thanks to the fis- damentally a moral crisis. According

VerDate 29-OCT-99 06:37 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.121 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13963 to a poll conducted by the Democratic debtors into paying debts which could support claims in a post-bankruptcy polling firm of Penn & Schoen on per- be wiped away once they are in bank- environment. This is an important ceptions of bankruptcy, 84 percent of ruptcy. The bill also requires the Jus- point that I think everyone should re- Americans think that bankruptcy is tice Department to concentrate law en- alize. Under the Senate bill, child sup- more socially acceptable today than a forcement resources on enforcing con- port will never compete with private few years ago. Of course, Penn & sumer protection laws against abusive creditors after bankruptcy. This is a Schoen is a Democratic polling firm debt collection practices, and allows unique feature of this year’s Senate used by President Clinton. So, I think State law enforcement to enforce State bill, so many Members may not be that this number is very telling given consumer protections in bankruptcy aware of it. I would ask Senators inter- that it was produced by a liberal poll- court. The committee report lists these ested in child support and bankruptcy ing firm. modifications in greater detail and to study section 314 of the bill. In my State of Iowa, the editorial summarizes the major changes from S. 625 also makes Chapter 12 of the page of the Des Moines Register has last year’s conference report. Mr. Bankruptcy Code permanent. This summed up the problem we have with President, when all of these many means that America’s family farms are the bankruptcy system by stating that changes are considered in a fair and guaranteed the ability to reorganize as bankruptcy ‘‘was never intended as the reasonable way, I believe that it will be our farm economy continues to be one-stop, no-questions-asked solution clear that a great majority of Senators weak. As we all know from our recent to irresponsibility.’’ I totally agree. So, can support S. 625 as it is right now. debate on emergency farm aid, while let’s look at the situation we face But there’s more. The Grassley- prices have rebounded somewhat re- today. We have a bankruptcy system Torricelli amendment contains even cently, farmers in my home State of which fosters irresponsibility and more changes to ensure that lower in- Iowa and across the Nation are getting which operates as a regressive system come Americans are not disadvantaged some of the lowest prices ever for pork, for redistributing economic resources by this reform. A provision to impose corn and soybeans. Clearly, this bill is from America’s working families to the personal liability on debtor attorneys— an important step in preserving the in- wealthy. In effect, blue collar factory which I strongly suppport—has been re- tegrity of our farming economy and workers are paying the tab for well- moved. And the Grassley-Torricelli preserving the family farm. compensated professionals to live high amendment contains numerous S. 625 contains changes to deal with on the hog. changes to the small business title of the complex problem of international Mr. President, as we move forward to the bankruptcy bill to add new flexi- bankruptcies. S. 625 will speed up the debate bankruptcy reform, I believe bility. Chapter 11 process for small businesses that we must keep in mind the fact Shortly, I will cosponsor an amend- and will reduce the risk of domino-like that the bankruptcy crisis is both an ment with Senator TORRICELLI to re- failures in financial markets. economic problem and moral problem. quire credit card companies to give In Conclusion, S. 625 is good for fam- If we pass meaningful bankruptcy re- consumers meaningful information ily farmers, good for small businesses, form this year, as I hope and expect about minimum payments on credit good for single parents who depend on that we will, the Senate can remove a cards. Consumers will be warned child support and good for consumers. drag on the economy and at the same against making only minimum pay- If you care about making people in time contribute the rebuilding of our ments, and there will be an example to string financial shape pull their own Nation’s moral foundations. drive this point home. Finally, con- weight, you should vote for this bill. If Mr. President, over 30 years ago, Sen- sumers will be given a toll-free phone you care about the lax morality associ- ator Albert Gore, Sr.—the father of the number to call where they can get in- ated with letting people who have the Vice-President—introduced a bill to formation about how long it will take clear ability to pay walk away from means-test Chapter 7 debtors. In his in- to pay off their own credit card bal- their debts with no question asked, you troductory statement, in words that ances if they make only the minimum should vote for this bill. When the time still ring true today, he described the payments. This new information will comes, I’m sure that common sense similarities between special tax loop- truly educate consumers. This new in- will reign and the Senate will pass S. holes and lax bankruptcy laws. Senator formation will improve the financial 625, with strong support. Gore said that bankruptcy is like a literacy of American consumers. The PRESIDING OFFICER. The Sen- special interest tax loophole in that In the Judiciary Committee, S. 625 ator from Utah. someone gets out of paying his fair was passed on a strong, bipartisan vote Mr. HATCH. Mr. President, I am share at the expense of hardworking of 14–4. All Republicans and half of the pleased we are finally considering the Americans who play by the rules. I Democrats voted for the bill. So, we Bankruptcy Reform Act of 1999. I think that Senator Gore had it exactly have a good bill and one that most would like to express my personal ap- right all the way back then. Members of the Senate should be able preciation to Senator LOTT for his ef- In the last Congress we almost closed to support at the end of the day. With forts, along with those of Senator the Chapter 7 loophole. The Senate and so many consumer protections and dis- DASCHLE, which resulted in this oppor- House both passed good bills, and we closures, I’m confident that the Senate tunity for floor consideration of the made them both better in a conference will pass S. 625 with strong support. bill. Also, I am grateful for the hard report that received overwhelming bi- In addition to benefitting society at work of Senator GRASSLEY, the chair- partisan support in the other body. But large, lessening upward pressures on man of the Judiciary Committee’s Sub- we ran out of time in the Senate. I’ve interest rates, S. 625 makes a number committee on Administrative Over- made every effort to be fair and bipar- of changes which I believe will be very sight and the Courts, along with Sen- tisan throughout this process. When beneficial to especially vulnerable seg- ator TORRICELLI, the ranking Member Senator TORRICELLI became my rank- ments of our society. Child support of the subcommittee, for their tireless ing member at the beginning of this claimants have been given the highest efforts in working out this bipartisan year, I went to him and asked him to priority when the assets of a bank- bill. I also thank Senators SESSIONS, work with me on a new bankruptcy ruptcy estate are distributed to credi- BIDEN, and others for their dedication bill. Senator TORRICELLI asked for sev- tors. Bankruptcy trustees and credi- and hard work on this bankruptcy re- eral modifications to last year’s bank- tors of bankrupts are required to give form bill. ruptcy bill to respond to concerns information about the location of dead- As I have said before, I remain con- raised by Members on his side of the beat parents who owe child support, fident that given the opportunity to aisle. I agree to make many of these turning our bankruptcy courts into a consider the merits of this legislation, changes. The means-test is much more low cost locator service for custodial the Senate will pass this bill with over- flexible in this year’s bill, giving parents. And finally, under S. 625 par- whelming, bipartisan support. As we judges greater discretion to consider ents owning child support can erase a consider S. 625, I am hopeful that we the individual circumstances of each wider array of debts than is typically will keep in mind the broad support for debtor. The bill contains much tougher the case, thereby preventing private the substance of this important legisla- penalties for using threats to coerce creditors from competing with child tion. I hope we will see quick passage

VerDate 29-OCT-99 06:37 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00093 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.049 pfrm12 PsN: S04PT1 S13964 CONGRESSIONAL RECORD — SENATE November 4, 1999 of these much needed reforms to the cally. Instead of bankruptcy being a them in bankruptcy when it may not bankruptcy system, because the reform safety net, it has become for some a be in their best interest. The legisla- proposals have been studied by Con- convenient financial management tool. tion also imposes penalties on bank- gress at length, they are bipartisan, I find it unacceptable and inherently ruptcy petition preparers who mislead and they are fair. unfair that those who pay their bills debtors. First, the reforms proposed in this have to foot the bill for those who are Importantly, S. 625 makes major bill have been deliberated at length. In- able to pay, but choose not to. It has strides in trying to break the cycle of deed, Congress has been engaged in the been conservatively estimated that indebtedness. It educates debtors with consideration of this issue for several personal bankruptcies cost every regard to the alternatives available to years, and the Subcommittee on Ad- household $400 per year, and it takes them, sets up a financial management ministrative Oversight and the Courts, fifteen responsible borrowers to cover education pilot program for debtors, which is chaired by Senator GRASSLEY, the cost of one bankruptcy of conven- and requires credit counseling for debt- has held numerous hearings on the ience. ors. issue of bankruptcy reform. The sub- The goal of our bankruptcy system I am particularly proud that the bill committee heard extensive testimony has always been to protect those who makes extensive reform of the bank- from literally dozens of witnesses on need protecting—to provide those who ruptcy laws in order to protect our this subject. experience genuine and serious finan- children. I have authored provisions to Second, this bill is truly bipartisan. cial hardship the opportunity to wipe ensure that bankruptcy cannot be used During our consideration of this bill at the slate clean. We must return our by deadbeat dads to avoid paying child both the subcommittee and full Judici- system back to its original mission. support and alimony. Under my provi- ary Committee levels, numerous Bankruptcy reform is not a Repub- sions, the obligation to pay child sup- changes suggested by the minority lican or a Democratic issue—it is a port and alimony is moved to a first were included in the bill. We have been consumer issue. According to a recent priority status, as opposed to its cur- able to reach a number of compromises poll, 76 percent of Americans believe rent place at seventh in line behind at- on this legislation in order to respond that individuals should not be allowed torneys fees and other special inter- to the concern of both parties. I would to erase all their debts in bankruptcy if ests. My measures also ensure the col- like to take this opportunity to once they are able to repay a portion of lection of child support and alimony again thank Senators GRASSLEY and what they owe. This survey merely re- payments by, among other things, ex- TORRICELLI for their bipartisan efforts flects the American public’s belief that empting state child support collection to create this balanced bill. individuals should be responsible for authorities from the ‘‘automatic stay’’ Finally, this bill is fair. One of the their own actions. S. 625 helps remedy that otherwise prevents collection of principles that guided the authors of the glaring problems of today’s bank- debts after a debtor files for bank- our country’s original bankruptcy ruptcy system be creating a needs- ruptcy, and by exempting from dis- laws, and which is guiding us as we based system to determine the chapter charge virtually all obligations one ex- overhaul these laws today, is the con- under which a person should file for spouse owes another. cept of a fresh start. The bankruptcy bankruptcy. S. 625 also includes a provision to system was designed to provide a fresh Mr. President, the House bankruptcy create new legal protections for a large start to people in serious financial dif- reform bill passed by an overwhelming class of retirement savings in bank- ficulty, who have no other way out of margin of 313 to 108. Half of the House ruptcy. This measure has widespread their predicament. Mr. President, S. Democratic Caucus joined with every support from a long list of groups, 625 does just that. It ensures that peo- House Republican to support a bill ranging from the American Association ple in the most serious financial dif- with more stringent measures than of Retired Persons, to the Small Busi- ficulty will continue to have access to those we are considering in the Senate. ness Council of America and the Na- the debt relief they need. At the same S. 625 contains new measures to pro- tional Council on Teacher Retirement. time, this legislation ensures that tect against fraud in bankruptcy, such Let me take this opportunity also to more of the people who have the capac- as a requirement that debtors supply point out that the assets of some pen- ity to repay their debts are required to income tax return sand pay stubs, au- sion plans already are protected from do so. dits of bankruptcy cases, and limits on bankruptcy proceedings. The United Depending on what study you be- repeat bankruptcy filings. It elimi- States Supreme Court has ruled in Pat- lieve, anywhere from 6 to 15 percent of nates a number of loopholes, such as terson v. Shumate, reported at 504 U.S. bankruptcy filers are using bankruptcy the one that allows debtors to transfer 753 (1992), that assets of pension plans as a financial planning tool, running up their interest in real property soothers which have, and are required by law to debts and erasing them under laws that who then file for bankruptcy relief and have, anti-alienation provisions, are consider income irrelevant—all with- invoke the automatic stay. And, it excluded from bankruptcy estates. Let out any noticeable impact on their life- puts some controls on the ability of me be clear that my amendment is in- style. I would doubt that any of my debtors get large case advances on tended to expand the protection of re- colleagues feel that these are the sort their credit cards and to pay luxury tirement savings to protect assets that of filers who need a fresh start. What goods on the eve of filing for bank- were not previously protected. My they need is a lesson in personal re- ruptcy. amendment is not intended in any way sponsibility. At the same time, s. 625 provides to diminish the protections offered I believe that S.625 accomplishes many unprecedented new consumer under existing law and under the both goals. The bill continues to make protections. It imposes penalties upon United States Supreme Court’s deci- bankruptcy an accessible option for creditors who refuse to negotiate in sion in Patterson v. Shumate, but, rath- those who truly need it. But, it makes good faith with debtors prior to declar- er, is intended to provide protection to it more difficult for spendthrifts—those ing bankruptcy. Also, it imposes pen- other retirement plans and accounts people who have no desire to change alties on creditors who wilfullly fail to not currently protected. their excessive lifestyles and see bank- properly credit payments made by the I am proud to propose several en- ruptcy as a convenient way to erase debtor in a chapter 13 plan, and for hancements to the bill that primarily their debts. creditors who threaten to file motions are designed to protect consumers and It is no secret that the current bank- in order to coerce a reaffirmation with- further provide incentives for con- ruptcy system is broken and that Con- out justification. Moreover, the bill sumers to take personal responsibility gress must fix it to preserve the oppor- imposes new measures to discourage in dealing with debt management. tunity for those individuals in finan- abusive reaffirmation practices. In the area of domestic support, as I cial straits to obtain a ‘‘fresh start.’’ It also addresses the problem of indicated earlier, Senator TORRICELLI Despite this country’s strong econ- bankruptcy mills, firms that aggres- and I intend to build upon the new omy—unemployment is down and infla- sively promote bankruptcy as a finan- legal protections we have created, as tion is low—the rate of personal bank- cial planning tool, and often end up part of the underlying bill, for ex- ruptcy filings has increased dramati- hurting unwitting debtors by putting spouses and children who are owed

VerDate 29-OCT-99 06:37 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00094 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.128 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13965 child support and alimony. The In addition, I intend to offer an be financially devastated by one ‘‘bank- changes will further strengthen the amendment that is designed to curb ruptcy of convenience’’. Additionally, frivo- ability of ex-spouses and children to fraud in bankruptcy filings. This lous bankruptcy filings force businesses to collect the payments they are owed, amendment puts in place new proce- charge more for goods and services. This is and will make changes to a number of why small business owners throughout the dures and provides new resources to en- country are calling on Congress to repair our existing provisions in the bill to clarify hance of bankruptcy fraud laws. It will fundamentally flawed bankruptcy system— that they will not directly or indi- require (1) that bankruptcy courts de- they’ve waited long enough. rectly undermine the collection of velop procedures for referring sus- In closing, let me say I hope we can child support or alimony payments. pected fraud to the FBI and the U.S. I must highlight just a few of these move through this bill in a timely and Attorney’s Office for investigation and orderly fashion. I hope Members who important enhancements: our amend- prosecution and (2) that the Attorney ment prevents bankruptcy from hold- intend to offer amendments do so soon- General designate one Assistant U.S. er rather than later, so we may con- ing up child custody and domestic vio- Attorney and one FBI agent in each ju- lence cases. It facilitates wage with- sider as many amendments as we can dicial district as having primary re- and hopefully finish consideration of holding to collect child support from sponsibility for investigating and pros- deadbeat parents. In addition, our this bill by early next week. I look for- ecuting fraud in bankruptcy. ward to doing what I can to help Sen- amendment helps avoid administrative I also plan to offer an amendment roadblocks to get kids the support they ators GRASSLEY and TORRICELLI move that allows the victim of a crime of vi- this process along. need. It makes staying current on child olence or drug trafficking offense to support a condition of discharge in I do not think this is going to be dif- move the bankruptcy court to dismiss bankruptcy. Also, our amendment ficult given the many compromises al- a voluntary petition filed by a debtor makes the payment of child support ar- ready reached in this legislation. This who was convicted of the crime of vio- rears a condition of plan confirmation. bill is fair, balanced, and long overdue. lence or drug trafficking offense. To Finally, it allows for the payment of PRIVILEGE OF THE FLOOR child support with interest by those protect women and children who may be owed payments by such a debtor, Mr. HATCH. Mr. President, I ask with means. unanimous consent during consider- In the area of debtor education, I however, the amendment still allows the bankruptcy petition to continue if ation of S. 625, the following staffers be have developed an amendment that extended the privilege of the floor: will protect from creditors contribu- the debtor can show that the filing of the petition is necessary to ensure his Rene Augustine, Makan Delrahim, tions made to education IRAs and Kolan Davis, John McMickle, Kyle qualified state tuition savings pro- ability to meet domestic support obligations. Bankruptcy is not an entitle- Sampson, and Leah Belaire. grams for educational expenses. This is The PRESIDING OFFICER. Without a significant protection for those who ment—it is a process by which certain qualifying individuals with substantial objection, it is so ordered. honestly put money away for the ben- Mr. HATCH. Mr. President, I again efit of their children and grand- debts may cancel their debts and ob- commend Senators GRASSLEY and children’s future schooling. The poten- tain a ‘‘fresh start.’’ Under this amend- TORRICELLI for the great work they tial that education savings accounts ment, violent criminals and drug traf- have done and all members on the Sen- will be abused in bankruptcy is ad- fickers—individuals who have chosen ate Judiciary Committee for having dressed by the amendment’s require- to engage in serious, criminal con- worked so hard to get this bill ready ment that only contributions made duct—would be precluded from availing for presentation today. I hope we can more than a year prior to bankruptcy themselves of the benefits of bank- pass it quickly. With that, I end my re- are protected. I believe that protecting ruptcy protection. marks and turn the time over to Sen- educational savings accounts is par- Mr. President, if we do not take the ticularly important because college opportunity to reform our bankruptcy ator SESSIONS. savings accounts encourage families to system, every family in my own State The PRESIDING OFFICER (Mr. save for college, thereby increasing ac- of Utah and throughout the Country, GRASSLEY). The Senator from Alabama cess to higher education. Nationwide, many of whom struggle to make ends is recognized. there are more than a million edu- meet, will continue to bear the finan- Mr. SESSIONS. Mr. President, I cational savings accounts, meaning cial burden of those who take advan- thank Senator HATCH, who made very there are more than a million children tage of the system. Last year alone, ap- impressive remarks on this subject, for who could potentially benefit from this proximately $45 billion in consumer his leadership as chairman of the Judi- amendment. As much as I believe that debt was erased in personal bank- ciary Committee. I particularly wish to bankruptcy laws need to be reformed ruptcies. Losses of this magnitude are express my appreciation to the Pre- to prevent abuse and to ensure debtors passed on the American families at an siding Officer who has led this effort take personal responsibility, the abil- estimated cost—if we use low esti- since I have been in the Senate to re- ity to use dedicated funds to pay the mates—of $400 for every household in form our bankruptcy court system. educational costs of children should American every year. Make no mistake about it, we are talk- not be jeopardized by the bankruptcy Rampant banckruptcy filings are a ing about a Federal court system that of their parents or grandparents. big problem. In 1998, 1.4 million Ameri- provides the ability for individual I developed a debt counseling incen- cans filed for bankruptcy. That was Americans, who legitimately owe debts tive provision, which builds on the more Americans than graduated from to people not to pay their debts and to credit counseling provisions currently college. That was also more Americans wipe those debts out. in S. 625. It removes any disincentive than were on active military duty. This is a historic American principle. for debtors to use credit counseling Not long ago, I received a letter from We have had bankruptcy courts. They services by prohibiting credit coun- a long list of organizations, ranging are referred to in the Constitution of seling services from reporting to credit from the U.S. Chamber of Commerce to the United States. They are uniquely reporting agencies that an individual the National Ski and Snowboard Re- and totally a Federal court procedure. has received debt management or cred- tailers Association, the American I think it is appropriate for us to it counseling, and establishes a penalty Sheep Industry Association, the Na- make timely changes as the nature of for credit counseling services that do. tional Cattlemen’s Beef Association our times in court change. We review Debt management education is vital to and the National Multi-Housing Coun- what is happening and make sure our reducing the number of Americans cil. In the letter, they drove home the law is effective to accomplish the best who, because of poor financial planning importance of this legislation to small and highest ideals of the American peo- skills, are forced to declare bank- businesses. I would like to read a quote ple. ruptcy. Providing credit counseling— from that letter: We last passed historic bankruptcy instruction regarding personal finan- Delay of this will . . . hurt America’s reform in 1978. We have not since that cial management—to current and po- small businesses—the heart and soul of this time confronted the issue squarely and tential bankruptcy filers will help curb nation. These hard-working entrepreneurs, fundamentally and comprehensively to bankruptcy filings. trying to live out their American dream, can see what is happening and see what we

VerDate 29-OCT-99 06:39 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.046 pfrm12 PsN: S04PT1 S13966 CONGRESSIONAL RECORD — SENATE November 4, 1999 can do about it. Any Federal court sys- them to do that? Why should we say to easy thing to do is file chapter 7; I will tem must be fair, it must be coherent an honest person who struggles to pay file your bankruptcy for $700, $1,000, and logical, it must be common- the hospital bill: You are just a chump; and you will not have to pay any more sensical, and it must help us further you are the clever guy, you went and debts. You have to put everything you our economic growth and vitality as a got a lawyer, paid him $1,000, and he is have on your credit card for the next 3 nation. going to wipe out your $3,000 debt to months. Do not pay any bills; do not At the same time, any legal system the hospital. If a person cannot pay pay any of your payments on any of we establish, as the Chair so eloquently their hospital bill, if they cannot pay your notes; take that money and give said, has a moral component. We need their other bills, if their income will it to me; set aside the rest of it; we will to make sure as a nation that our not support it, then bankruptcy is for file bankruptcy and just wipe it all out. bankruptcy laws encourage the highest them. But there are abuses, I assure That is what is happening in America and best ideals of the American people. you, and they are quite common—too today. People are induced to do that. In fact, all laws should do that; par- common, I suggest. I thought about it: Do they know? ticularly, I suggest, bankruptcy laws. There is a strange tendency in the People get depressed and get panicky. We believe, as Americans, that people filings, whether you file under chapter They do not know what to do. People who get hopelessly in debt ought to be 13 or chapter 7—as you know, when you are suing them and threatening them. able to start over and not have their file in chapter 7, you simply offer up They go to their lawyer and ask for ad- lives forever burdened by debts they your assets, wipe out all your debts and vice. I am of the opinion that at least could never repay. That is the historic walk away, never to have to pay any of a significant minority of those individ- principle. We should not retreat from those debts again. If you file under uals want to pay their debts, but for that, and certainly this bill reflects no chapter 13, the court will work with various reasons they are in trouble and retreat from that. you and your attorney and develop a unable. But it is never a good thing to go repayment plan for all or a portion of I visited in my hometown of Mobile into bankruptcy. It is an unfortunate that debt. They will stay the interest an outstanding institution, a nonprofit event, when people reach a point in that is accruing on the debts. They will credit counseling agency. That agency their lives when they are unable to pay say how much ought to be paid to each meets with families who are in finan- a just debt they incurred because they creditor. They will keep those creditors cial trouble. The people at this agency got some benefit from that debt. They from suing or filing any harassment ac- sit down with these families and help borrowed money to buy a TV set; they tion against the person paying them off them work out a budget. It helps the borrowed money to buy a car; they bor- until the debts are paid. family members understand the con- rowed money to take a trip. Somebody In my home State of Alabama, in sequences of spending. It helps them to loaned them that money. The purpose Birmingham, which is where chapter 13 set priorities on which debt to pay of that loan was to have it repaid, and payments began quite a number of first. It helps them to set up a savings most people believe they ought to years ago, over half, maybe more than plan. Sometimes they will even receive repay that debt. If ever in this country 60 percent of the individual citizens, for the check and pay certain debts that we believe that we do not have to pay some reason—for various reasons—have are required and give the family a cer- debts, because it is inconvenient or dif- chosen to file under chapter 13 and pay tain amount of cash to use for their ficult, we have a real problem because back all or a portion of their debts. But weekly or monthly bills. the ability of honest and hard-working in some of the larger urban areas of Normally, they call the credit card people to obtain loans is going to be this country, that figure is even under companies, the banks, and other people much more difficult. 10 percent. Routinely, the lawyers who have claims against the family An individual citizen should pay his come in and advise their clients to file and negotiate a lower interest rate. or her debt. It is possible—and we made under chapter 7. They file under chap- They are able to do that. Companies great progress, Mr. President, under ter 7 and wipe out all their debts when will do it. And the families can pay off your leadership—to create a system many of those could easily pay them those debts in that fashion. It is highly that does allow people to start over. back. successful. But at the same time, it does not re- There are some good reasons why One of the main reasons for divorce ward those who lightly walk away from people would want to file under chapter in America today is financial dif- debts they have every ability to repay 13 and pay back a lot of the debts they ficulty. That is a known fact. As a either in whole or in part. Fundamen- owe. They will be able to have more matter of fact, it is the main reason. tally, the way this system works is self respect as individuals if they pay These nonprofit agencies encourage very unusual, in many respects. If a off their debts. It stops the creditors people to undergo marital counseling. person makes a salary of $80,000 and if from suing them, the phone calls, and A lot of people are in financial trouble that person has a debt of $50,000 and the harassment that might come when because of alcoholism. Credit coun- that is the only debt they have, it may you owe many different debts. You seling or nonprofit agencies care about strike you they could easily pay it off have a better credit rating when you the people who come before them and in 2 or 3 years without a great deal of have paid off your debts, and you are help them get alcoholism treatment or strain, perhaps. It may strike Ameri- able to keep certain items you might help them get into AA. cans as strange to realize, regardless of not be able to keep otherwise. There Many gamblers are in financial trou- their ability to pay it off in relatively are other advantages to filing chapter ble. One member of the family gambles short order, they could walk into bank- 13. and has lost the money. This is a ruptcy court, file under chapter 7, and If a court were to decide, as they known fact. They get people into Gam- wipe out that debt and not ever have to could under our new law, that you have blers Anonymous and help save their pay it. Some people do that and abuse the ability to pay back and you are family. the system. shifted to chapter 13, it is not all bad. Maybe they need mental health I heard recently of an individual who There are many reasons why a careful treatment. They can oftentimes get made $35,000 a year, had a $1,500 debt, lawyer representing a client would sug- them into those treatment facilities. and filed for bankruptcy because he did gest chapter 13 is a good way to go. That kind of thing is healthy. not want to pay that debt. That kind of So we have a system today that is One of the things I suggested, something happens in our court. That is an very enticing to the irresponsible. We thing with which the chairman, Sen- extreme example, but there are less ex- have a system today that is driven by ator GRASSLEY, and others on the com- treme examples of it on a routine basis. a lot of different factors. One factor is mittee agreed, is before you file for If a person is able to pay back a part of the advertisements we see on television bankruptcy, you have to contact a their debt, why should they not? describing how to avoid your debts. credit counseling agency and discuss You say, well, it was for a hospital. People see those advertisements and with them the possibility of choosing Why should the hospital not get paid if then go to the attorneys who specialize an alternative to filing for bankruptcy. he can pay some of his legitimate hos- in bankruptcy. The attorneys tell The truth is, most people want to pay pital bills? Why would we not want them: You have these debts, and the their debts. They just do not know how

VerDate 29-OCT-99 05:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00096 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.129 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13967 to do it in a way that will be OK in tem, could do that. That is very com- lands managed by the Bureau of Land Man- light of the creditors pressing on them. mon in America. agement for use by the counties for the ben- We believe that can be a significant Many of these problems are being ad- efit of public schools, roads, and other pur- step forward in helping people in debt. dressed. I know the chairman believes poses. They can be counseled by experts in strongly that creditors ought not have At 2:59 p.m., a message from the money management on how to handle lawyers go down to court all the time. House of Representatives, delivered by their money and get out of debt on The bill allows you to represent your- Ms. Niland, one of its reading clerks, their own, how to maintain their self- self, if you choose, in bankruptcy court announced that the House has passed respect and pride, and to actually pay under many circumstances. the following joint resolution, in which off the debts. This legislation will improve the sys- it requests the concurrence of the Sen- If you get a loan from your brother- tem of law in Federal courts. It will ate: in-law or if you borrow money from the have a more just result. It will stop in- H.J. Res. 75. Joint resolution making fur- bank, you ought to pay it back if you dividuals who are able to pay back all ther continuing appropriations for the fiscal can. This bill encourages that. or a portion of their debts from walk- year 2000, and for other purposes. There are people with high incomes ing into court and wiping out their The message also announced that the who are filing for bankruptcy today. debts. This bill will stop that. House disagrees to the amendment of We have heard the stories of young For people in serious debt who fall the Senate to the bill (H.R. 3194) mak- lawyers and young professionals who below the median income of America, ing appropriations for the government get a new car, have student loans and they will be able to choose chapter 7 or of the District of Columbia and other $5,000 or $6,000 in credit card bills, and 13. But for those with higher incomes, activities chargeable in whole or in the creditors are calling. They do not if they have the ability to pay the part against revenues of said District really want to slow down. They can debts, we think this bill will make for the fiscal year ending September 30, just file for bankruptcy and wipe out them do so, or at least a portion of 2000, and for other purposes, and agrees these debts. That is not right. We will what they owe, if the judge so orders. to the conference asked by the Senate be focusing on that. It is a step in the right direction. on the disagreeing votes of the two It will not burden poor people. Credit I am proud to serve on the sub- Houses thereon; and appoints Mr. counselors will have to be approved by committee which Senator GRASSLEY YOUNG of Florida, Mr. LEWIS of Cali- the bankruptcy court. They will be chairs. This bill is a step forward for fornia, and Mr. OBEY as the managers nonprofit individuals who will be au- our courts. I hope as we move forward of the conference on the part of the dited on a regular basis. These are the we will have the support we had pre- House. steps I believe will encourge people to viously. It passed in this body last year ENROLLED JOINT RESOLUTION SIGNED avoid filing bankruptcy. with 94 out of 100 votes. It is essen- A message from the House of Rep- This bill will be a major step forward tially the same bill. It passed in our resentatives, received on today, an- for families who are entitled to child committee by a vote of 14–4. It passed nounced that the Speaker has signed support and alimony. They will be the House with 303 votes to 100. It is a the following enrolled joint resolution: moved to the top of the priority list. It popular bill. It has broad bipartisan H.J. Res. 75. Joint resolution making fur- will be a great step forward for them. support. It has dragged on for far too ther continuing appropriations for the fiscal Child support and alimony will be im- long. It is time for us to see it to con- year 2000, and for other purposes. proved. clusion. f A bankruptcy system for farmers I thank the chairman for his leader- that is adjusted to their unique prob- ship, determination, and persistence in EXECUTIVE AND OTHER lems will be enhanced and made perma- driving this bill to a successful conclu- COMMUNICATIONS nent by this legislation. Senator sion. The following communications were GRASSLEY has been a champion of I yield the floor and suggest the ab- laid before the Senate, together with those issues for many years, and he has sence of a quorum. accompanying papers, reports, and doc- achieved that again in this bill. We will The PRESIDING OFFICER. The uments, which were referred as indi- make it permanent with this bill. clerk will call the roll. cated: I respect the work the Senator from The legislative clerk proceeded to Iowa is doing. This is a good piece of EC–6014. A communication from the Assist- call the roll. ant Secretary, Legislative Affairs, Depart- legislation. It calls on individuals to Mr. GRASSLEY. Mr. President, I ask ment of State, transmitting, pursuant to the pay what they can. It allows judges to unanimous consent that the order for Arms Export Control Act, a report relative consider the circumstances involved the quorum call be rescinded. to certification of a proposed license for the before an order is given. It will improve The PRESIDING OFFICER (Mr. SES- export of defense articles or defense services sold commercially under a contract in the the respect businesses and Americans SIONS). Without objection, it is so or- have for bankruptcy if they know it is amount of $50,000,000 or more to Brazil; to dered. the Committee on Foreign Relations. not being abused as it is today. We can f stop it, and we can do better. This bill EC–6015. A communication from the Assist- MORNING BUSINESS ant Secretary, Legislative Affairs, Depart- will do that. ment of State, transmitting, pursuant to the There are loopholes that good law- Mr. GRASSLEY. Mr. President, I now Arms Export Control Act, a report relative yers have learned to exploit. I do not ask unanimous consent that there be a to certification of a proposed license for the blame the lawyers for it. If we have it period for the transaction of morning export of defense articles or defense services in the law of Congress that says this is business with Senators permitted to sold commercially under a contract in the appropriate, they are going to use it to speak for up to 10 minutes each. amount of $50,000,000 or more to Israel; to the the benefit of their clients. Committee on Foreign Relations. The PRESIDING OFFICER. Without EC–6016. A communication from the Assist- We had a circumstance in which a objection, it is so ordered. tenant’s 1-year lease had expired. He ant Secretary, Legislative Affairs, Depart- f ment of State, transmitting, pursuant to the had not paid his debts. The landlord Arms Export Control Act, a report relative wanted to evict him. He filed for bank- MESSAGES FROM THE HOUSE to certification of a proposed license for the ruptcy. People are filing all over Amer- At 1:29 p.m., a message from the export of defense articles or defense services ica and getting a stay of legal action, House of Representatives, delivered by sold commercially under a contract in the causing the landlord to hire a lawyer Mr. Barry, one of its reading clerks, amount of $50,000,000 or more to the United and wait several more months before announced that the House has passed Arab Emirates; to the Committee on Foreign Relations. he can get the person removed from the the following bill, in which it requests premises. Maybe he never intended to EC–6017. A communication from the Assist- the concurrence of the Senate: ant Secretary, Legislative Affairs, Depart- lease it for more than 1 year anyway. H.R. 2389. An act to restore stability and ment of State, transmitting, pursuant to the Maybe he had another tenant to take predictability to the annual payments made Arms Export Control Act, a report relative the place after 12 months. That person, to States and counties containing National to certification of a proposed license for the through abuse of the bankruptcy sys- Forest System lands and public domain export of defense articles or defense services

VerDate 29-OCT-99 06:42 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00097 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.132 pfrm13 PsN: S04PT1 S13968 CONGRESSIONAL RECORD — SENATE November 4, 1999 sold commercially under a contract in the EC–6030. A communication from the Acting H. Con. Res. 141. A concurrent resolution amount of $50,000,000 or more to Japan; to Director of Communications and Legislative celebrating One America. the Committee on Foreign Relations. Affairs, Equal Employment Opportunity S. Res. 118. A resolution designating De- EC–6018. A communication from the Assist- Commission, transmitting, pursuant to law, cember 12, 1999, as ‘‘National Children’s Me- ant Secretary, Legislative Affairs, Depart- a report relative to its commercial activities morial Day’’. ment of State, transmitting, pursuant to the inventory; to the Committee on Govern- By Mr. HATCH, from the Committee on Arms Export Control Act, a report relative mental Affairs. the Judiciary, with an amendment in the na- to certification of a proposed license for the EC–6031. A communication from the Chair- ture of a substitute and an amendment to export of defense articles or defense services man, Defense Nuclear Facilities Safety the title: sold commercially under a contract in the Board, transmitting, pursuant to law, a re- S. 276. A bill for the relief of Sergio amount of $50,000,000 or more to Thailand; to port relative to its commercial activities in- Lozano, Faurico Lozano and Ana Lozano. the Committee on Foreign Relations. ventory; to the Committee on Governmental By Mr. HATCH, from the Committee on EC–6019. A communication from the Assist- Affairs. the Judiciary, without amendment: ant Secretary, Legislative Affairs, Depart- EC–6032. A communication from the Chair- S. 302. A bill for the relief of Kerantha ment of State, transmitting, pursuant to the man, National Labor Relations Board, trans- Poole-Christian. Arms Export Control Act, a report relative mitting, pursuant to law, a report relative to S. 1019. A bill for the relief of Regine to certification of a proposed license for the its commercial activities inventory; to the Beatie Edwards. export of defense articles or defense services Committee on Governmental Affairs. By Mr. THOMPSON, from the Committee sold commercially under a contract in the EC–6033. A communication from the Direc- on Governmental Affairs, without amend- amount of $50,000,000 or more to Japan; to tor, Office of Personnel Management, trans- ment: the Committee on Foreign Relations. mitting, pursuant to law, a report relative to S. 1295. A bill to designate the United EC–6020. A communication from the Assist- its commercial activities inventory; to the States Post Office located at 3813 Main ant Secretary, Legislative Affairs, Depart- Committee on Governmental Affairs. Street in East Chicago, Indiana, as the EC–6034. A communication from the Direc- ment of State, transmitting, pursuant to the ‘‘Lance Corporal Harold Gomez Post Office’’. tor, Office of Resource Management, Federal Arms Export Control Act, a report relative By Mr. HATCH, from the Committee on Housing Finance Board, transmitting, pursu- to certification of a proposed license for the the Judiciary, without amendment: ant to law, a report relative to its commer- export of defense articles or defense services S. 1418. A bill to provide for the holding of cial activities inventory; to the Committee sold commercially under a contract in the court at Natchez, Mississippi in the same on Governmental Affairs. manner as court is held at Vicksburg, Mis- amount of $50,000,000 or more to NATO; to EC–6035. A communication from the Budg- sissippi, and for other purposes. the Committee on Foreign Relations. et and Fiscal Officer, the Woodrow Wilson By Mr. JEFFORDS, from the Committee EC–6021. A communication from the Assist- Center, transmitting, pursuant to law, a re- on Health, Education, Labor, and Pensions, ant Secretary, Legislative Affairs, Depart- port relative to its commercial activities in- with an amendment in the nature of a sub- ment of State, transmitting, pursuant to the ventory; to the Committee on Governmental stitute: Arms Export Control Act, a report relative Affairs. to certification of a proposed Manufacturing EC–6036. A communication from the Execu- S. 1809. A bill to improve service systems License Agreement with the United King- tive Director, Advisory Council on Historic for individuals with developmental disabil- dom; to the Committee on Foreign Rela- Preservation, transmitting, pursuant to law, ities, and for other purposes. tions. a report relative to its commercial activities f EC–6022. A communication from the Assist- inventory; to the Committee on Govern- EXECUTIVE REPORTS OF ant Secretary, Legislative Affairs, Depart- mental Affairs. ment of State, transmitting, pursuant to the COMMITTEES f Arms Export Control Act, a report relative The following executive reports of to certification of a proposed Manufacturing REPORTS OF COMMITTEES committees were submitted on Novem- License Agreement with Turkey; to the The following reports of committees Committee on Foreign Relations. ber 3, 1999: EC–6023. A communication from the Assist- were submitted: By Mr. HELMS for the Committee on For- ant Legal Adviser for Treaty Affairs, Depart- By Mr. THOMPSON, from the Committee eign Relations: ment of State, transmitting, pursuant to on Governmental Affairs, without amend- David H. Kaeuper, of the District of Colum- law, the report of the texts and background ment: bia, a Career Member of the Senior Foreign statements of international agreements, H.R. 100. A bill to establish designations Service, Class of Counselor, to be Ambas- other than treaties; to the Committee on for United States Postal Service buildings in sador Extraordinary and Plenipotentiary of Foreign Relations. Philadelphia, Pennsylvania. the United States of America to the Republic EC–6024. A communication from the Assist- H.R. 197. A bill to designate the facility of of Congo. ant Secretary of Defense for Health Affairs, the United States Postal Service at 410 Nominee: David H. Kaeuper. transmitting, pursuant to law, a report rel- North 6th Street in Garden City, Kansas, as Post: Republic of Congo. ative to the TRICARE Program for fiscal the ‘‘Clifford R. Hope Post Office’’. The following is a list of all members of H.R. 915. A bill to authorize a cost of living year 1999; to the Committee on Armed Serv- my immediate family and their spouses. I adjustment in the pay of administrative law ices. have asked each of these persons to inform EC–6025. A communication from the Acting judges. me of the pertinent contributions made by H.R. 1191. A bill to designate certain facili- Executive Director, Commodity Futures them. To the best of my knowledge, the in- ties of the United States Postal Service in Trading Commission, transmitting, pursuant formation contained in this report is com- Chicago, Illinois. to law, a report relative to its commercial H.R. 1251. A bill to designate the United plete and accurate. activities inventory; to the Committee on States Postal Service building located at Contributions, amount, date, and donee: Governmental Affairs. 8850 South 700 East, Sandy, Utah, as the 1. Self: none. 2. Spouse: none. EC–6026. A communication from the In- ‘‘Noal Cushing Bateman Post Office Build- 3. Children and Spouses: none. spector General, Nuclear Regulatory Com- ing’’. mission, transmitting, pursuant to law, a re- H.R. 1327. A bill to designate the United 4. Parents: none. port relative to its commercial activities in- States Postal Service building located at 5. Grandparents: none. 6. Brothers and Spouses: none. ventory; to the Committee on Governmental 34480 Highway 101 South in Cloverdale, Or- 7. Sisters and Spouses: Miriam (sister) and Affairs. egon, as the ‘‘Maurine B. Neuberger United Alan Rosar, 250.00, 10/98, Rep. David EC–6027. A communication from the Execu- States Post Office’’. tive Secretary, Harry Truman Scholarship By Mr. THOMPSON, from the Committee McIntosh; 250.00, 10/96, Rep. David McIntosh; Foundation, transmitting, pursuant to law, a on Governmental Affairs, with an amend- 100.00, 10/94, Rep. David McIntosh; 100.00, —/ report relative to its commercial activities ment in the nature of a substitute and an 94, Sen. Richard Lugar. inventory; to the Committee on Govern- amendment to the title: mental Affairs. H.R. 1377. A bill to designate the facility of James B. Cunningham, of Pennsylvania, to EC–6028. A communication from the Senior the United States Postal Service at 13234 be a Representative of the United States of Liaison Officer, Office of Government Liai- South Baltimore Avenue in Chicago, Illinois, America to the Sessions of the General As- son, the John F. Kennedy Center for the Per- as the ‘‘John J. Buchanan Post Office Build- sembly of the United Nations during his ten- forming Arts, transmitting, pursuant to law, ing’’. ure of service as Deputy Representative of a report relative to its commercial activities By Mr. HATCH, from the Committee on the United States of America to the United inventory; to the Committee on Govern- the Judiciary, without amendment: Nations. mental Affairs. H.J. Res. 54. A joint resolution granting John E. Lange, of Wisconsin, a Career EC–6029. A communication from the Staff the consent of Congress to the Missouri-Ne- Member of the Senior Foreign Service, Class Director, Commission on Civil Rights, trans- braska Boundary Compact. of Counselor, to be Ambassador Extraor- mitting, pursuant to law, a report relative to By Mr. HATCH, from the Committee on dinary and Plenipotentiary of the United its commercial activities inventory; to the the Judiciary, without amendment and with States of America to the Republic of Bot- Committee on Governmental Affairs. a preamble: swana.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.082 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13969 Nominee: John E. Lange. Post: Mali. 6. Brothers and Spouses: Dennis P. John- Post: U.S. Ambassador to Botswana. Nominated: June 28, 1999. son, none; Pauline Johnson, none. Nominated: June 9, 1999. The following is a list of all members of 7. Sisters and Spouses: no sisters, none. The following is a list of all members of my immediate family and their spouses. I my immediate family and their spouses. I have asked each of these persons to inform Jimmy J. Kolker, of Missouri, a Career have asked each of these persons to inform me of the pertinent contributions made by Member of the Senior Foreign Service, Class me of the pertinent contributions made by them. To the best of my knowledge, the in- of Counselor, to be Ambassador Extraor- them. To the best of my knowledge, the information contained in this report is com- dinary and Plenipotentiary of the United formation contained in this report is complete and accurate. States of America to Burkina Faso. plete and accurate. Contributions, amount, date and donee: Nominee: Jimmy Kolker. Contributions, amount, date, and donee: 1. Self: none. Post: Ambassador to Burkina Faso. 1. Self: none. 2. Spouse: none. Nominated: July 1, 1999. 2. Spouse: Alejandra M. Lange, none. 3. Children and Spouses: none. The following is a list of all members of 3. Children and Spouses: Julia A. Lange, 4. Parents: Edward Ranneberger, none. my immediate family and their spouses. I none. 5. Grandparents: deceased. have asked each of these persons to inform 4. Parents: Edward W. Lange, deceased; 6. Brothers and Spouses: Robert me of the pertinent contributions made by Marion E. Lange, none. Ranneberger, none. them. To the best of my knowledge, the in- 5. Grandparents: Paul and Delia Lange, de- 7. Sisters and Spouses: none. formation contained in this report is com- ceased; George and Katherine Bosch, de- plete and accurate. Harriet L. Elam, of Massachusetts, a Ca- ceased. Contributions, amount, date, and donee: 6. Brothers and Spouses: (No brothers). reer Member of the Senior Foreign Service, 1. Self: $650, 1998, Rush Holt For Congress; 7. Sisters and Spouses: Cynthia and Dale Class of Minister-Counselor, to be Ambas- $200, 1996, Rush Holt For Congress. Bennett, none; Barbara and David Wentland, sador Extraordinary and Plenipotentiary of 2. Spouse: Britt-Marie Forslund, none. none. the United States of America to the Republic 3. Children: Anne and Eva Kolker: none. of Senegal. 4. Parents: Leon Kolker, Harriette Coret, Delano Eugene Lewis, Sr., of New Mexico, Nominee: Harriet L. Elam. none. to be Ambassador Extraordinary and Pleni- Post: U.S. Amb. to the Republic of Sen- 5. Grandparents: Max and Rose Kolker, de- potentiary of the United States of America egal: ceased; Fannie and Joe Buckner, deceased. Nominated: July 1, 1999. to the Republic of South Africa. 6. Brothers and spouses: Danny Kolker and The following is a list of all members of Nominee: Delano E. Lewis. Annette Fromm: $400, 1996, Rush Holt For my immediate family and their spouses. I Post: The Republic of South Africa. Congress; $100, 1996, Democratic National have asked each of these persons to inform Nominated: June 9, 1999. Ctte; $25, 1994, John Selph for Congress. The following is a list of all members of me of the pertinent contributions made by them. To the best of my knowledge, the in- my immediate family and their spouses. I Joseph W. Prueher, of Tennessee, to be formation contained in this report is com- have asked each of these persons to inform Ambassador Extraordinary and Pleni- plete and accurate. me of the pertinent contributions made by potentiary of the United States of America them. To the best of my knowledge, the in- Contributions, amount, date and donee: 1. Self: $50.00, 1995, Sen. John Kerry, (D) to the People’s Republic of China. formation contained in this report is com- MA; $125.00, 1998, Cong. Jesse Jackson, Jr. Nominee: Joseph W. Prueher. plete and accurate. Post: People’s Republic of China. Contributions, amount, date, and donee: (D) IL. 2. Spouse: N/A, I am single. Nominated: September 8, 1999. 1. Self: Delano E. Lewis, Sr., $200.00, 1996, 3. Children and Spouses: None. The following is a list of all members of Dem. Natl. Comm.; $200.00, 1994, Dem. Natl. 4. Parents: Robert H. and Blanche D. Elam my immediate family and their spouses. I Comm.; $100.00, 1996, Loretta Sanchez, H.R. (deceased since 1974); neither of them made have asked each of these persons to inform Calif; $100.00, 1996, Connie Morella, H.R. MD; campaign contributions. me of the pertinent contributions made by $100.00, 1994, Connie Morella, H.R. MD; 5. Grandparents: Henrietta Lee and Sher- them. To the best of my knowledge, the in- $100.00, 1998, Kevin Chavous, DC Mayor. man Justin Lee (deceased); since both were formation contained in this report is com- 2. Spouse: Gayle Lewis, NA. deceased before I was born, I cannot complete and accurate. 3. Children and Spouses: a. Delano E. ment on the question posed. Contributions, amounts, date, and donee: Lewis, Jr. and Jacqueline Lewis; NA; b. Geof- 6. Brothers and Spouses: Judge Harry J. 1. Myself: none. frey Paul Lewis, Sr., $100.00, 9/94, Ron Mag- Elam and Mrs. Barbara C. Elam (no con- 2. Spouse: Suzanne P. Prueher, none. nus, DC City Council; and Lisa Lewis, NA. c. tributions); Charles H. Elam (deceased 1997— 3. Children and Spouse: Anne B. Prueher, Brian Patrick Lewis, NA; d. Phill Lewis and none); Clarence R. Elam (deceased 1985— none; Joshua W. and Elizabeth F. Prueher Megan Lewis—jointly, $500.00 7/98, Barbara none). (wife), none. Boxer, U.S. Senate. 7. Sisters and Spouses: Annetta H. 4. Parents: Bertram J. Prueher, deceased. 4. Raymond E. Lewis, father, NA; Enna Capdeville (sister, currently in a nursing Jean F. Prueher, $25.00, 1996 and 1997, Sen. Lewis, mother, deceased before reporting pe- home with Alzheimers, no campaign con- Bill Frist. riod, NA. tributions); Andrew L. Capdeville (brother in 5. Grandparents: deceased. 5. Grandparents: deceased before reporting law, is blind, and has made no campaign con- 6. Sisters and Spouses: Elizabeth A. and period, a. Matilda Lewis Goss and Ernest tributions). Daniel Thornton, none; Martha B. Lewis, b. Martha Wordlow and Ned Wordlow. Conzelman and James G. Conzelman, Jr., 6. Brothers and Spouses: none. Gregory Lee Johnson, of Washington, a Ca- none. 7. Sisters and Spouses: none. reer Member of the Senior Foreign Service, Class of Minister-Counselor, to be Ambas- Mary Carlin Yates, of Washington, a Ca- Avis Thayer Bohlen, of the District of Co- sador Extraordinary and Plenipotentiary of reer Member of the Senior Foreign Service, lumbia, a Career Member of the Senior For- the United States of America to the King- Class of Counselor, to be Ambassador Ex- eign Service, Class of Minister-Counselor, to dom of Swaziland. traordinary and Plenipotentiary of the be an Assistant Secretary of State (Arms Nominee: Gregory Lee Johnson. United States of America to the Republic of Control). (New Position) Post: Kingdom of Swaziland. Burundi. Donald Stuart Hays, of Virginia, a Career Nominated: July 1, 1999. Nominee: Mary Carlin Yates. Member of the Senior Foreign Service, Class The following is a list of all members of Post: Burundi. of Minister-Counselor, to be Representative my immediate family and their spouses. I Nominated: September 22, 1999. of the United States of America to the have asked each of these persons to inform The following is a list of all members of United Nations for U.N. Management and me of the pertinent contributions made by my immediate family and their spouses. I Reform, with the rank of Ambassador. them. To the best of my knowledge, the in- have asked each of these persons to inform Donald Stuart Hays, of Virginia, to be an formation contained in this report is com- me of the pertinent contributions made by Alternate Representative of the United plete and accurate. them. To the best of my knowledge, the in- States of America to the Sessions of the Contributions, amount, date, and donee: formation contained in this report is com- General Assembly of the United Nations dur- 1. Self: none. plete and accurate. ing his tenure of service as Representative of 2. Spouse: Lyla J. Johnson, none. Contributions, amount, date, and donee: the United States of America to the United 3. Children and Spouses: Carter K. Johnson 1. Self: Mary Carlin Yates, none. Nations for U.N. Management and Reform. (son), none; Kimberly A. Johnson (daughter), 2. Spouse: John M. Yates, none. Michael Edward Ranneberger, of Virginia, none. 3. Children and spouses: Catherine, John, a Career Member of the Senior Foreign Serv- 4. Parents: Edith Johnson (mother), none; Maureen, Paul, Greg Yates, none. ice, Class of Counselor, to be Ambassador Ex- Orville L. Johnson (father/deceased), none. 4. Parents: Barbara and Edward T. Carlin, traordinary and Plenipotentiary of the 5. Grandparents: Mamie (Evans) Robertson deceased. United States of America to the Republic of (deceased), none; William Robertson (de- 5. Grandparents: deceased. Mali. ceased), none; Viola Brown (deceased), none; 6. Brothers and spouses: Ted Carlin, Jr., Nominee: Michael E. Ranneberger. Buford Johnson (deceased), none. and Phyllis Carlin, none.

VerDate 29-OCT-99 06:42 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.130 pfrm13 PsN: S04PT1 S13970 CONGRESSIONAL RECORD — SENATE November 4, 1999 7. Sisters and spouses: Patty Carlin Rick Weiland for Congress—10/15/96–$300 4. Parents: Mary and John Indyk, none. Fabrikant and Murvin Fabrikant, none. Luther for Congress Volunteer Committee— 5. Grandparents: Deceased. 10/4/96–$250 6. Brothers: Ivor Indyk, none. Charles Taylor Manatt, of the District of Doggett for US Congress—10/9/96–$250 7. Sisters: Shelley Indyk, none. Columbia, to be Ambassador Extraordinary Golden State PAC (Manatt, Phelps & Phil- and Plenipotentiary of the United States of lips)—8/23/96–$1,178 Anthony Stephen Harrington, of Maryland, America to the Dominican Republic. Friends of Mark Warner—10/9/96–$500 to be Ambassador Extraordinary and Pleni- Nominee: Charles Taylor Manatt. Steve Owens for Congress—10/29/96–$250 potentiary of the United States of America Post: Ambassador to the Dominican Re- Ken Bentsen for Congress—11/23/96–$250 to the Federative Republic of Brazil. public. Friends of Bob Graham—7/10/96–$1,000 Nominee: Anthony S. Harrington. Nominated September 28, 1999. Citizens Committee for Ernest F. Hollings— Post: Ambassador to Brazil. The following is a list of all members of (for 1998—Primary) 7/96—$1,000 my immediate family and their spouses. I Daniel C. Manatt (son): DNC Services Corp/ The following is a list of all members of have asked each of these persons to inform DNC—5/14/96–$250 my immediate family and their spouses. I me of the pertinent contributions made by Kathleen K. Manatt (wife): Citizens for Har- have asked each of these persons to inform them. To the best of my knowledge, the in- kin—7/26/96–$1,000 me of the pertinent contributions made by formation contained in this report is com- Michele A. Manatt (daughter): them. To the best of my knowledge, the in- plete and accurate. DNC Services Corp/DNC—5/28/96–$250 formation contained in this report is com- Contributions, amount, date, and donee: Clinton/Gore ’96 Gen Election Legal & Ac- plete and accurate. 1. Self: see attached. counting Compliance—$1,000 Contributions, amount, date, and donee: 2. Spouse: see attached. Federal Contributions 1997–1998 1. Self: (see attached schedule). 3. Children and spouses: Timothy T. Charles T. Manatt: 2. Spouse: Hope R. Harrington (see at- Manatt, none; Michele Manatt Anders, see Gephardt in Congress—5/15/97–$1,000 tached schedule). attached; Wolfram Anders, none; Daniel C. Friends of Chris Dodd—6/12/97–$1,000 3. Children: Adam R. and Michael A. Har- Manatt, see attached. Friends of Byron Dorgan—4/17/97–$1,000 rington, none. 4. Parents: William Price Manatt, de- Citizens Committee for Ernest F. Hollings 4. Parents: Atwell L. and Louise Har- ceased; Lucille Helen Taylor Manatt, de- (for 1998 General)—10/31/97–$1,000 rington, deceased. ceased. Mary Landrieu for Senate—7/2/97–$250 5. Grandparents: Smith Harrington and 5. Grandparents: John R. and Nonie Ferraro for Senate—3/19/98–$1,000 Callie Chapman, deceased. Manatt, deceased; Charles and Gertie Taylor, Rush for Congress—1/10/98–$500 6. Brothers: Not applicable. deceased. Boswell for Congress—5/5/98–$500 7. Sisters: Not applicable. 6. Brothers and spouses: Names Richard P. Boswell for Congress—9/9/97–$500 Manatt and Jackie Manatt, none. FEDERAL CAMPAIGN CONTRIBUTION REPORT— COMSAT PAC—5/11/98–$1,000 SCHEDULE 7. Sisters and spouses, none. Friends for Harry Reid—10/12/98–$1,000 Federal Contributions 1995–1996 Friends of Blanch Lincoln—10/8/98–$1,000 Donor, amount, date, donee: Charles T. Manatt: Nancy Pelosi for Congress—6/17/97–$500 Self: $525, 3/13/95, Hogan & Hartson PAC DNC Services Corp, DNC—4/19/95—$10,000 Citizens for Joe Kennedy—6/19/97–$250 Spouse: $100, 9/11/95, Kerrey Committee Clinton/Gore ’96 Primary Committee— Luther for Congress—6/7/97–$250 Self: $100, 2/21/96, Kerrey Committee 5/26/95—$1,000 Leahy for US Senator—4/2/97–$250 Self: $1,125, 3/14/96, Hogan & Hartson PAC DNC Services Corp, DNC—12/22/95—$10,000 A lot of People Supporting Tom Daschle 3/21/ Self: $250, 3/26/96, Price for Congress DNC Services Corp, DNC—2/23/96—$250 97–$1,000 Self: $200, 6/26/96, Friends of Mark Warner Karen McCarthy for Congress—3/24/96—$250 Golden State PAC (Manatt, Phelps) 6/25/97– Self: $100, 6/26/96, Stuber for Congress Krogmeier for Congress—3/14/96—$350 $1,422 Self: $100, 10/26/96, Eastaugh for Congress Beshear for US Senate—5/28/96—$500 Julian C. Dixon—Democrat for Congress 9/23/ Self: $1,125, 6/12/97, Hogan & Hartson PAC Friends of Max Cleland for the US Senate 97–$1,000 Self: $250, 7/24/97, Friends of Byron Dorgan Inc—6/4/96—$500 Friends of Barbara Boxer—11/13/97–$1,000 Self: $1,300, 3/18/98, Hogan & Hartson PAC Coffin for Congress—6/28/96—$250 Evan Bayh Committee—11/4/97–$500 Spouse: $100, 3/26/98, Pinder for Congress Reed Committee—4/24/96—$1,000 Ken Bentsen for Congress—10/2/97–$500 Self: $250, 4/25/98, Friends of Chris Dodd Friends of Senator Carl Levin—6/14/96—$250 Friends of Jane Harman—7/14/97–$1,000 Spouse: $100, 6/11/98, Pinder for Congress Julian C. Dixon Democrat for Congress— Baesler for Senate—3/17/98–$500 Self: $400, 6/15/98, Leahy for Congress 5/29/96—$500 Evan Bayh Committee—2/23/98–$500 Self: $200, 7/19/98, David Price for Congress Toricelli for US Senate—6/25/96—$1,000 Sherman for Congress—4/13/98–$250 Self: $50, 10/17/98, Pinder for Congress Friends of Tom Strickland—7/12/96—$500 Steve Owens for Congress—6/20/98–$250 Self: $1,250, 3/11/99, Hogan & Hartson PAC Kerrey for US Senate—2/16/96—$1,000 Baesler for Senate Committee—10/8/98–$1,000 Self: $1,000, 6/22/99, Ciizens for Sarbanes Clinton/Gore ’96 Gen Election Legal/Acctg Golden State PAC—10/9/98–$1,329 Self: $1,000, 7/4/99, Gore 2000 Compliance—9/26/96—$1,000 Nagle for US Senate—1/5/97–$500 Spouse: $1,000, 7/4/99, Gore 2000 Boswell for Congress—10/4/96—$500 Kathleen K. Manatt: Spouse: $1,000, 8/28/99, H.R. Clinton Explor- Docking for US Senate—10/7/96—$400 Friends of Chris Dodd—6/12/97–$1,000 atory Committee Karpan for Wyoming—10/17/96—$250 DNC Services Corp/DNC—4/29/97–$1,000 Self: $1,000, 8/28/99, H.R. Clinton Exploratory Swett for Senate—10/23/96—$250 Friends of Jane Harman—7/24/97–$1,000 Committee Coopersmith for Congress 10/31/96—$500 DNC Services Corp/DNC—6/8/98–$1,000 Craig Gordon Dunkerley, of Massachusetts, Democratic Congressional Campaign Com- Kerry Committee—6/23/98–$1,000 a Career Member of the Senior Foreign Serv- mittee—3/30/95—$1,000 Baesler for Senate—10/8/98–$1,000 ice, Class of Minister-Counselor, for the Golden State PAC (Manatt, Phelps & Phil- Leadership ’98 (FKA Friends of Albert Gore, Rank of Ambassador during his tenure of lips)—4/27/95—$1,181 Jr., Inc)—10/27/98–$1,000 Service as Special Envoy for Conventional Bill Bradley for US Senate—6/9/95—$1,000 Forces in Europe. Friends of Max Baucus—4/19/95—$500 Gary L. Ackerman, of New York, to be a Alan Phillip Larson, of Iowa, to be Under Kerry Committee—6/20/95—$500 Representative of the United States of Amer- Secretary of State (Economic, Business and Kerry Committee—6/23/95—$250 ica to the Fifty-fourth Session of the Gen- Agricultural Affairs). Kerry Committee—6/16/95—$1,000 eral Assembly of the United Nations. Robert J. Einhorn, of the District of Co- Martin S. Indyk, of the District of Colum- Wyden for Senate—12/8/95—$500 lumbia, to be an Assistant Secretary of bia, to be Ambassador Extraordinary and Fazio for Congress—11/22/95—$500 State (Non-proliferation). (New Position) Plenipotentiary of the United States of Friends of Jane Harman—12/29/95—$1,000 Lawrence H. Summers, of Maryland, to be America to Israel. Leahy for US Senator Committee—8/7/95— United States Governor of the International Nominee: Indyk, Martin Sean. $250 Post: Tel Aviv, Israel. Monetary Fund for a term of five years; Murray for Congress—2/28/96—$500 The following is a list of all members of United States Governor of the International Blumenauer for Congress—3/25/96—$500 my immediate family and their spouses. I Bank for Reconstruction and Development Price for Congress—3/27/96—$500 have asked each of these persons to inform for a term of five years; United States Gov- Friends of Mark Warner—5/13/96—$500 me of the pertinent contributions made by ernor of the Inter-American Development Friends of Jane Harman—5/7/96—$1,000 them. To the best of my knowledge, the in- Bank for a term of five years; United States Friends of Senator Rockefeller—6/17/96— formation contained in this report is com- Governor of the African Development Bank $1,000 plete and accurate. for a term of five years; United States Gov- Kerry Committee—6/4/96—$250 Contributions, amount, date, and donee: ernor of the Asian Development Bank; Glen D. Johnson for Congress Committee— 1. Self: None. United States Governor of the African Devel- 9/30/96—$300 2. Spouse: Jill Indyk, none. opment Fund; United States Governor of the Citizens for Harkin—7/26/96–$1000 3. Children and spouses: Sarah and Jacob, European Bank for Reconstruction and De- Spike Wilson for Congress—10/9/96–$200 none. velopment.

VerDate 29-OCT-99 06:42 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.133 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13971 James B. Cunningham, of Pennsylvania, a EXECUTIVE REPORTS OF To be brigadier general, medical corps Career Member of the Senior Foreign Serv- COMMITTEES Col. Lester Martinez-Lopez, 1323 ice, Class of Minister-Counselor, to be Dep- The following named officers for appoint- uty Representative of the United States of The following executive reports of ment in the Reserve of the Army to the America to the United Nations, with the committees were submitted on Novem- grades indicated under title 10, U.S.C., sec- rank and status of Ambassador Extraor- ber 4, 1999: tion 12203: dinary and Plenipotentiary. By Mr. HATCH for the Committee on the Norman A. Wulf, of Virginia, a Career Judiciary: To be major general Member of the Senior Executive Service, to Ann Claire Williams, of Illinois, to be Celia L. Adolphi, 1255 be a Special Representative of the President, United States Circuit Judge for the Seventh James W. Comstock, 5456 with the rank of Ambassador. Circuit; Robert M. Kimmitt, 0719 Willene A. Johnson, of New York, to be Virginia A. Phillips, of California, to be Paul E. Lima, 5295 United States Director of the African Devel- United States District Judge for the Central Thomas J. Matthews, 5463 opment Bank for a term of five years. District of California; Jon R. Root, 3255 Edward S. Walker, Jr., of Maryland, a Ca- Faith S. Hochberg, of New Jersey, to be Joseph L. Thompson, III, 2211 reer Member of the Senior Foreign Service, United States District Judge for the District John R. Tindall, Jr., 1967 Class of Career Minister, to be an Assistant of New Jersey; Gary C. Wattnem, 0832 Secretary of State (Near Eastern Affairs). Daniel J. French, of New York, to be To be brigadier general United States Attorney for the Northern Dis- James D. Bindenagel, of California, a Ca- Alan D. Bell, 4514 trict of New York for the term of four years; reer Member of the Senior Foreign Service, Kristine K. Campbell, 7499 and Class of Minister-Counselor, for the rank of Wayne M. Erck, 5508 Donna A. Bucella, of Florida, to be United Ambassador during tenure of service as Spe- Stephen T. Gonczy, 6064 States Attorney for the Middle District of cial Envoy and Representative of the Sec- Robert L. Heine, 0778 Florida for the term of four years. retary of State for Holocaust Issues. Paul H. Hill, 7335 William B. Bader, of Virginia, to be an As- (The above nominations were re- Rodney M. Kobayashi, 6985 sistant Secretary of State (Educational and ported with the recommendation that Thomas P. Maney, 4820 Cultural Affairs). (New Position) they be confirmed.) Ronald S. Mangum, 2280 Peter T. King, of New York, to be a Rep- By Ms. SNOWE for Mr. WARNER, for the Randall L. Mason, 7302 resentative of the United States of America Committee on Armed Services: Paul E. Mock, 9132 to the Fifty-fourth Session of the General John K. Veroneau, of Virginia, to be an As- Collis N. Phillips, 1258 Assembly of the United Nations. sistant Secretary of Defense. Michael W. Symanski, 1020 J. Stapleton Roy, of Pennsylvania, a Ca- By Mr. WARNER, for the Committee on Theodore D. Szakmary, 7249 reer Member of the Senior Foreign Service Armed Services: David A. VanKleeck, 9555 with the Personal Rank of Career Ambas- Cornelius P. O’Leary, of Connecticut, to be George H. Walker, Jr., 7542 sador, to be an Assistant Secretary of State a Member of the National Security Edu- William K. Wedge, 9145 (Intelligence and Research). cation Board for a term of four years; and (The above nominations were re- Joseph R. Crapa, of Virginia, to be an As- Alphonso Maldon, Jr., of Virginia, to be an ported with the recommendation that sistant Administrator of the United States Assistant Secretary of Defense. they be confirmed) Agency for International Development. (The above nominations were re- Mr. WARNER. Mr. President, for the (The above nominations were reported with the recommendation that Committee on Armed Services, I report ported with the recommendation that they be confirmed, subject to the nomi- favorably nomination lists which were they be confirmed, subject to the nominees’ commitment to respond to re- printed in the RECORDS on the dates in- nees’ commitment to respond to requests to appear and testify before any dicated, and ask unanimous consent, to quests to appear and testify before any duly constituted committee of the Sen- save the expense of reprinting on the duly constituted committee of the Sen- ate.) Executive Calendar, that these nomi- ate.) The following named officer for appoint- nations lie at the Secretary’s desk for Mr. HELMS. Mr. President, for the ment in the United States Air Force to the the information of Senators. Committee on Foreign Relations, I re- grade indicated while assigned to a position The PRESIDING OFFICER. Without port favorably nomination lists which of importance and responsibility under title 10, U.S.C., section 601: objection, it is so ordered. were printed in the RECORDS of Feb- To be general Navy 15 nominations beginning George R. ruary 23, 1999, and September 8, 1999, Arnold, and ending Todd S. Weeks, which and ask unanimous consent, to save Gen. John P. Jumper, 7457 nominations were received by the Senate and the expense of reprinting on the Execu- The following named officer for appoint- appeared in the CONGRESSIONAL RECORD of tive Calendar, that these nominations ment in the United States Air Force to the October 18, 1999 grade indicated while assigned to a position Air Force 507 nominations beginning Jo- lie at the Secretary’s desk for the in- of importance and responsibility under title formation of Senators. seph A. Abbott, and ending Thomas J. 10, U.S.C., section 601: Zuzack, which nominations were received by The PRESIDING OFFICER. Without To be general the Senate and appeared in the CONGRES- objection, it is so ordered. Lt. Gen. Gregory S. Martin, 6337 SIONAL RECORD of October 27, 1999. Army 1 nomination of Joel R. Rhoades, Foreign Service nominations beginning The following named officer for appoint- which was received by the Senate and ap- Samuel Anthony Rubino, and ending Chris- ment in the United States Air Force to the peared in the CONGRESSIONAL RECORD of Oc- topher Lee Stillman, which nominations grade indicated while assigned to a position tober 27, 1999. were received by Senate and appeared in of importance and responsibility under title CONGRESSIONAL RECORD of February 23, 1999. 10, U.S.C., section 601: f Foreign Service nominations beginning To be lieutenant general George Carner, and ending Steven G. INTRODUCTION OF BILLS AND Wisecarver, which nominations were re- Maj. Gen. Bruce A. Carlson, 4082 JOINT RESOLUTIONS ceived by the Senate and appeared in the The following named officer for appoint- The following bills and joint resolu- CONGRESSIONAL RECORD of September 8, 1999. ment in the United States Air Force to the Foreign Service nominations beginning grade indicated while assigned to a position tions were introduced, read the first Johnnie Carson, and ending Susan H. Swart, of importance and responsibility under Title and second time by unanimous con- which nominations were received by the Sen- 10, U.S.C., section 601: sent, and referred as indicated: ate and appeared in the CONGRESSIONAL To be lieutenant general By Mr. CAMPBELL: RECORD of September 8, 1999. Maj. Gen. Stephen B. Plummer, 9541 S. 1851. A bill to amend the Elementary Foreign Service nominations beginning The following Army National Guard of the and Secondary Education Act of 1965 to en- Rueben Michael Rafferty, and ending Ste- United States officer for appointment in the sure that seniors are given an opportunity to phen R. Kelly, which nominations were re- Reserve of the Army to the grade indicated serve as mentors, tutors, and volunteers for ceived by the Senate and appeared in the under title 10, U.S.C., section 12203: certain programs; to the Committee on CONGRESSIONAL RECORD of September 8, 1999. Health, Education, Labor, and Pensions. To be brigadier general Foreign Service nominations beginning C. By Mr. BENNETT: Miller Crouch, and Gary B. Pergl, which Col. William F. Smith, III, 2744 S. 1852. A bill to authorize the Secretary of nominations were received by the Senate and The following named officer for appoint- the Interior to enter into contracts with the appeared in the CONGRESSIONAL RECORD of ment in the United States Army to the grade Weber Basin Water Conservancy District, September 8, 1999. indicated under title 10, U.S.C., section 624: Utah, to use Weber Basin Project facilities

VerDate 29-OCT-99 06:15 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.110 pfrm13 PsN: S04PT1 S13972 CONGRESSIONAL RECORD — SENATE November 4, 1999 for the impounding, storage, and carriage of HUTCHISON, Mr. MOYNIHAN, Mr. LAU- rather it suggests another allowable nonproject water for domestic, municipal, TENBERG, Mr. GRAHAM, Mr. use of funds already allocated. The dis- industrial, and other beneficial purposes; to LIEBERMAN, Mrs. BOXER, Mr. WYDEN, cretion whether to take advantage of the Committee on Energy and Natural Re- Ms. SNOWE, Ms. COLLINS, Mr. REED, this new resource continues to remain sources. Mr. DODD, Mr. KENNEDY, Mr. KERRY, solely with the school systems. By Ms. COLLINS (for herself and Ms. Mr. LEAHY, Mr. JEFFORDS, and Mr. Studies show that consistent guid- SNOWE): GREGG): S. 1853. A bill to authorize the Secretary of S. 1866. A bill to redesignate the Coastal ance by a mentor or caring adult can Transportation to issue a certificate of docu- Barrier Resources System as the ‘‘John J. help reduce teenage pregnancy, sub- mentation with appropriate endorsement for Chafee Coastal Barrier Resources System’’; stance abuse and youth violence. Evi- employment in the coastwise trade for the considered and passed. dence also shows that the presence of vessel FRITHA; to the Committee on Com- By Mr. SMITH of New Hampshire: adults on playgrounds, and in hallways merce, Science, and Transportation. S.J. Res. 37. A joint resolution urging the and study halls, stabilizes the learning By Mr. HATCH (for himself, Mr. KOHL, President to negotiate a new base rights environment. And recently, the Colo- and Mr. DEWINE): agreement with the Government of Panama rado School Safety Summit, convened S. 1854. A bill to reform the Hart-Scott-Ro- in order for United States Armed Forces to dino Antitrust Improvements Act of 1976; to be stationed in Panama after December 31, by Governor Bill Owens, recommended the Committee on the Judiciary. 1999; read the first time. connecting each child to a caring adult By Mr. MURKOWSKI: f as a way to reduce youth violence. S. 1855. A bill to establish age limitations Our country is in the midst of an age for airmen; to the Committee on Commerce, SUBMISSION OF CONCURRENT AND revolution. There are twice as many Science, and Transportation. SENATE RESOLUTIONS older adults today as there were 30 By Mr. SCHUMER (for himself and Mr. years ago. America now possesses not TORRICELLI): The following concurrent resolutions S. 1856. A bill to amend title 28 of the and Senate resolutions were read, and only the largest, but also the health- United States Code to authorize Federal dis- referred (or acted upon), as indicated: iest, best-educated, and most vigorous group of seniors in history. trict courts to hear civil actions to recover By Mr. INHOFE (for himself, Mr. WAR- In the years ahead, an increasing damages or secure relief for certain injuries NER, Mr. ROBERTS, and Mr. LOTT): to persons and property under or resulting S. Res. 220. A resolution expressing the number of us will be living decades from the Nazi government of Germany; to sense of the Senate regarding the February longer than our own parents and grand- the Committee on the Judiciary. 2000 deployment of the U.S.S. Eisenhower parents. We need to think of those By Mr. DOMENICI: Battle Group and the 24th Marine Expedi- extra years of life as a resource. I be- S. 1857. A bill to provide for conveyance of tionary Unit to an area of potential hos- lieve seniors can be role models and certain Navajo Nation lands located in tilities and the essential requirements that northwestern New Mexico and to resolve share the wisdom, experience, and the battle group and expeditionary unit have skills they have acquired over a life- conflicts among the members of such Nation received the essential training needed to cer- who hold interests in allotments on such tify the warfighting proficiency of the forces time of learning. lands; to the Committee on Indian Affairs. comprising the battle group and expedi- I know firsthand of the importance of By Mr. BREAUX: tionary unit; to the Committee on Armed mentoring based on my own experi- S. 1858. A bill to revitalize the inter- Services. ences as a teacher. A mentor can have national competitiveness of the United f a profound positive impact on a child’s States-flag maritime industry through tax life. relief; to the Committee on Finance. STATEMENTS OF INTRODUCED What better way to expand the num- By Mr. GRAMS: BILLS AND JOINT RESOLUTIONS S. 1859. A bill to amend the Internal Rev- ber of mentors than to invite our sen- enue Code of 1986 to provide a tax credit to By Mr. CAMPBELL: iors/elders to volunteer in schools? taxpayers investing in economically dis- S. 1851. A bill to amend the Elemen- What better way to make our schools tressed rural communities, and for other tary and Secondary Education Act of safer for our children than to have purposes; to the Committee on Finance. 1965 to ensure that seniors are given an more adults visibly involved? By Mr. GRAMS: opportunity to serve as mentors, tu- I do not expect this legislation to S. 1860. A bill to amend the Internal Rev- tors, and volunteers for certain pro- solve all the problems confronting our enue Code of 1986 to expand income aver- schools today. But, I see it as a prac- aging to small agriculture-related busi- grams; to the Committee on Health, nesses; to the Committee on Finance. Education, Labor, and Pensions. tical way to help make our schools S. 1861. A bill to amend the Internal Rev- THE SENIORS AS VOLUNTEERS IN OUR SCHOOLS safer, more caring places for our chil- enue Code of 1986 to provide comprehensive ACT OF 1999 dren. If our institutions create oppor- tax relief for small family farmers, and for Mr. CAMPBELL. Mr. President, tunities that allow them to make a other purposes; to the Committee on Fi- genuine contribution, I believe Amer- nance. today I introduce the ‘‘Seniors As Vol- unteers in Our Schools Act of 1999,’’ a ica’s growing senior population can By Mr. JEFFORDS: play an important role in supporting S. 1862. A bill entitled ‘‘Vermont Infra- bill which will be an important step in structure Bank Program’’; to the Committee ensuring that our schools provide a our nations’ schools. And, older adults on Environment and Public Works. safe and caring place for our children have what the working-age population By Mr. BAUCUS: to learn and grow. This bill will help lacks: time. S. 1863. A bill to amend the Internal Rev- build lasting partnerships between our I urge my colleagues to support pas- enue Code of 1986 to provide an incentive to local school systems, our children and sage of this legislation. small businesses to establish and maintain I ask unanimous consent that the bill our country’s growing number of senior qualified pension plans by allowing a credit be printed in the RECORD. against income taxes for contributions to, citizens. There being no objection, the bill was Under the bill, school administrators and start-up costs of, the plan; to the Com- ordered to be printed in the RECORD, as mittee on Finance. and teachers are encouraged to use follows: By Mr. BURNS: qualified seniors as volunteers in feder- S. 1851 S. 1864. A bill to amend the Internal Rev- ally funded programs and activities au- Be it enacted by the Senate and House of Rep- enue Code of 1986 to provide a tax credit to thorized by the Elementary and Sec- primary health providers who establish prac- resentatives of the United States of America in tices in health professional shortage areas; ondary Education Act (ESEA.) It spe- Congress assembled, to the Committee on Finance. cifically encourages the use of seniors SECTION 1. SHORT TITLE. By Mr. DEWINE (for himself and Mr. as volunteers in the safe and drug free This Act may be cited as the ‘‘Seniors as DOMENICI): schools programs, Indian education Volunteers in Our Schools Act’’. S. 1865. A bill to provide grants to establish programs, the 21st Century Community SEC. 2. REFERENCES. demonstration mental health courts; to the before- and after-school programs and Except as otherwise specifically provided, Committee on the Judiciary. gifted and talented programs. I believe whenever in this Act an amendment or re- By Mr. SMITH of New Hampshire (for the best way to get older Americans to peal is expressed in terms of an amendment himself, Mr. BAUCUS, Mr. CRAPO, Mr. to, or a repeal of, a section or other provi- REID, Mr. CHAFEE, Mr. LOTT, Mr. serve as volunteers is to ask them. My sion, the reference shall be considered to be DASCHLE, Mr. WARNER, Mr. INHOFE, bill does just that. made to a section or other provision of the Mr. THOMAS, Mr. BOND, Mr. The Seniors as Volunteers in Our Elementary and Secondary Education Act of VOINOVICH, Mr. BENNETT, Mrs. Schools Act creates no new programs; 1965 (20 U.S.C. 6301 et seq.).

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.084 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13973 SEC. 3. GOVERNOR’S PROGRAMS. (1) by redesignating subparagraph (K) as feet of federal Weber Basin project Section 4114(c) (20 U.S.C. 7114(c)) is subparagraph (L); water to the Snyderville Basin area of amended— (2) in subparagraph (J), by striking ‘‘or’’ Summit County, Utah and to Park (1) in paragraph (11), by striking ‘‘and’’ after the semicolon; and City, Utah. after the semicolon; (3) by inserting after subparagraph (J) the (2) by redesignating paragraph (12) as para- following: In 1996, the Weber Basin Water Con- graph (13); and ‘‘(K) activities that recognize and support servancy District entered into a Memo- (3) by inserting after paragraph (11) the fol- the unique cultural and educational needs of randum of Understanding and Agree- lowing: Indian children, and incorporate appro- ment to deliver this water approxi- ‘‘(12) drug and violence prevention activi- priately qualified tribal elders and seniors; mately 14 miles from Weber Basin ties that use the services of appropriately or’’. Weber River sources within a certain qualified seniors for activities that include SEC. 10. PROFESSIONAL DEVELOPMENT. time frame and dependent upon the mentoring, tutoring, and volunteering; and’’. Section 9122(d)(1) (20 U.S.C. 7832(d)(1)) is execution of an Interlocal Agreement SEC. 4. LOCAL DRUG AND VIOLENCE PREVEN- amended by striking the period the second with Park City and Summit County. TION PROGRAMS. place it appears and inserting ‘‘, and may in- Section 4116(b) (20 U.S.C. 7116(b)) is clude programs designed to train tribal el- The Warren Act requires that legisla- amended— ders and seniors.’’. tion be enacted to enable the District (1) in paragraph (2), by inserting ‘‘(includ- SEC. 11. NATIVE HAWAIIAN COMMUNITY-BASED to move ahead with this agreement ing mentoring by appropriately qualified EDUCATION LEARNING CENTERS. with Summit County and Park City to seniors)’’ after ‘‘mentoring’’; Section 9210(b) (20 U.S.C. 7910(b)) is deliver the water utilizing built Weber (2) in paragraph (2)(C)— amended— Basin Project facilities built by the Bu- (A) in clause (ii), by striking ‘‘and’’ after (1) by redesignating paragraph (3) as para- reau of Reclamation. the semicolon; graph (4); There is an immediate need for the (B) in clause (iii), by inserting ‘‘and’’ after (2) in paragraph (2), by striking ‘‘and’’; and the semicolon; and (3) by inserting after paragraph (2) the fol- delivery of water to this area. The (C) by adding after clause (iii) the following: Utah State Engineer halted the ap- lowing: ‘‘(3) programs that recognize and support proval of new groundwater develop- ‘‘(iv) drug and violence prevention activi- the unique cultural and educational needs of ments in the area last year. At the ties that use the services of appropriately Native Hawaiian children, and incorporate same time, Summit county is experi- qualified seniors for such activities as men- appropriately qualified Native Hawaiian el- encing tremendous growth; in fact it is toring, tutoring, and volunteering;’’; ders and seniors; and’’. one of the highest growth areas in the (3) in paragraph (4)(C), by inserting ‘‘(in- SEC. 12. ALASKA NATIVE STUDENT ENRICHMENT state. The areas to be served are within cluding mentoring by appropriately qualified PROGRAMS. seniors) after ‘‘mentoring programs’’; and Section 9306(b) (20 U.S.C. 7935(b)) is the area taxed by the Weber Basin Dis- (4) in paragraph (8), by inserting ‘‘and amended— trict, and there is a definite need for a which may involve appropriately qualified (1) by redesignating paragraphs (3) and (4) public entity to build a project to sup- seniors working with students’’ after ‘‘set- as paragraphs (4) and (5), respectively; and ply an adequate, reliable, and cost ef- tings’’. (2) by inserting after paragraph (2) the fol- fective water delivery project to meet SEC. 5. NATIONAL PROGRAMS. lowing: the future demands of this area. Section 4121(a) (20 U.S.C. 7131(a)) is ‘‘(3) activities that recognize and support Since there is precedent allowing the amended— the unique cultural and educational needs of Alaskan Native children, and incorporate ap- wheeling of non-federal water through (1) in paragraph (10), by inserting ‘‘, includ- federal facilities, my colleagues should ing projects and activities that promote the propriately qualified Alaskan Native elders interaction of youth and appropriately quali- and seniors;’’. realize that this is a non-controversial fied seniors’’ after ‘‘responsibility’’; and piece of legislation. Therefore, I hope (2) in paragraph (13), by inserting ‘‘, includ- By Mr. BENNETT: that Congress will move quickly to ing activities that integrate appropriately S. 1852. A bill to authorize the Sec- pass this legislation next session and I qualified seniors in activities, such as men- retary of the Interior to enter into con- look forward to working closely with toring, tutoring, and volunteering’’ after tracts with the Weber Basin Water my colleagues on the Energy Com- ‘‘title’’. Conservancy District, Utah, to use mittee to move it quickly.∑ SEC. 6. GIFTED AND TALENTED CHILDREN. Weber Basin Project facilities for the Section 10204(b)(3) (20 U.S.C. 8034(b)(3)) is impounding, storage, and carriage of By Mr. HATCH (for himself, Mr. amended by striking ‘‘and parents’’ and in- nonproject water for domestic, munic- KOHL, and Mr. DEWINE): serting ‘‘, parents, and appropriately quali- S. 1854. A bill to reform the Hart- fied senior volunteers’’. ipal, industrial, and other beneficial Scott-Rodino Antitrust Improvements SEC. 7. 21ST CENTURY COMMUNITY LEARNING purposes; to the Committee on Energy CENTERS. and Natural Resources. Act of 1976; to the Committee on the Section 10904(a)(3) (20 U.S.C. 8244(a)(3)) is THE USE OF WEBER BASIN PROJECT FACILITIES Judiciary. amended— FOR NONPROJECT WATER THE HART-SCOTT-RODINO ANTITRUST (1) in subparagraph (D), by striking ‘‘and’’ ∑ Mr. BENNETT. Mr. President, I am IMPROVEMENTS ACT OF 1999 after the semicolon; pleased to take a step in addressing the Mr. HATCH. Mr. President, I am (2) by redesignating subparagraph (E) as long-term water needs of Summit pleased to introduce today the Hart- subparagraph (F); and County, Utah. The bill I am intro- Scott-Rodino Antitrust Improvements (3) by inserting after subparagraph (D) the following: ducing today authorizes the Secretary Act of 1999. I also am pleased to note ‘‘(E) a description of how the school or con- of the Interior to enter into contracts that joining with me in sponsoring this sortium will encourage and use appro- with the Weber Basin Water Conser- important bipartisan legislation are priately qualified seniors as volunteers in ac- vancy District. This legislation would Senators DEWINE and KOHL the chair- tivities identified under section 10905; and’’. permit non-federal water intended for man and ranking member of the Anti- SEC. 8. AUTHORIZED SERVICES AND ACTIVITIES. domestic, municipal, industrial, and trust, Business Rights and Competition Section 9115(b) (20 U.S.C. 7815(b)) is other uses to utilize federal facilities of Subcommittee of the Committee on amended— the original Weber Basin Project for the Judiciary. I thank my colleagues (1) in paragraph (6), by striking ‘‘and’’ various purposes such as storage and on both sides of the aisle for their ef- after the semicolon; (2) in paragraph (7), by striking the period transportation. forts and cooperation in working to and inserting ‘‘; and’’; and In this case, the Smith Morehouse craft this balanced reform measure (3) by inserting after paragraph (7) the fol- Dam and Reservoir was constructed by which is long overdue. lowing: the Weber Basin Water Conservancy The Hart-Scott-Rodino Antitrust Im- ‘‘(8) activities that recognize and support District in the early 1980’s using local provements Act of 1976 requires compa- the unique cultural and educational needs of funding resources in order to create a nies contemplating a merger of acqui- Indian children, and incorporate appro- supply of non-federal project water. sition to file a premerger notification priately qualified tribal elders and seniors.’’. However, it has been determined that with the Antitrust Division of the De- SEC. 9. IMPROVEMENTS OF EDUCATIONAL OP- there is currently a need to deliver ap- partment of Justice or the Federal PORTUNITIES FOR INDIAN CHIL- DREN. proximately 5,000 acre feet of this non- Trade Commission if the size of the Section 9121(c) (20 U.S.C. 7831(c)) is federal Smith Morehouse water in con- companies and the size of the proposed amended— junction with approximately 5,000 acre transaction are greater than certain

VerDate 29-OCT-99 06:16 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.101 pfrm13 PsN: S04PT1 S13974 CONGRESSIONAL RECORD — SENATE November 4, 1999 monetary thresholds. These monetary data, do not pose any competitive con- Mr. President, the bill that I am in- thresholds have not been changed— cerns. Such mergers make up at least troducing today sets forth reforms to even for inflation—since the legislation one-third of transactions reported in the Hart-Scott-Rodino Act that are was originally enacted in 1976, over 23 1999. Therefore, this modest legislation long overdue. It provides significant years ago. When the statute was first provides significant regulatory and fi- regulatory and financial relief for busi- enacted, Congress intended to limit the nancial relief for small- and medium- nesses, while ensuring that trans- scope of the Hart-Scott-Rodino Act to sized companies. In addition, the legis- actions that truly deserve antitrust very large companies involved in very lation indexes the threshold for infla- scrutiny will continue to be reviewed. large transactions. At that time, the tion, so that the problem of an expand- As this bill moves through the legisla- House Judiciary Committee reported ing economy outgrowing the statute’s tive process, I remain willing to ad- that the statute would apply ‘‘only to monetary threshold will not recur. dress any concerns any of my col- the largest 150 mergers annually: These In addition to providing regulatory leagues may have, and look forward to are the most likely to ‘substantially and financial relief for companies, an- working with the Administration to lessen competition’—the legal standard other purpose of this legislation is to see that this proposed legislation be- of the Clayton act.’’ However, because ensure that the Antitrust Division and comes law, thereby providing relief for the monetary thresholds in the statute the FTC efficiently allocate their finite small business that is long overdue. I have never been updated, nearly 5,000 resources to those transactions that urge my colleagues to support the transactions were reported. truly deserve antitrust scrutiny. To en- Hart-Scott-Rodino Antitrust Improve- Because these monetary thresholds sure budget neutrality, the legislation ments Act of 1999. have not been kept current, companies adjusts the amount of the filing fee Mr. KOHL. Mr. President, I rise frequently are required to notify the that parties must submit with their today to co-sponsor the Hart-Scott-Ro- Antitrust Division and the FTC of pro- notification: For transactions valued dino Antitrust Improvements Act of posed transactions that do not raise between $35 million and $100 million, 1999 and to commend Chairman HATCH competitive issues. As a result, the the filing fee remains unchanged at for his efforts on this legislation. This agencies are required to expend valu- $45,000; for transactions valued at more measure would amend the Hart-Scott- able resources performing needless re- than $100 million, the filing fee is in- Rodino Act and make several changes views of transactions that were never creased to $100,000. I have worked with to enhance the merger review process intended to be reviewed. In short, cur- the business community to ensure that undertaken by the Antitrust Division rent law unnecessarily imposes a cost- this filing fee adjustment is fair by im- of the Department of Justice and the ly regulatory and financial burden posing a higher fee on transactions Federal Trade Commission. We believe upon companies, particularly upon which likely will require more of the that reforms to this statute are long small businesses, as well as a sizable agencies’ resources to review. Although overdue—the threshold hasn’t been drain on the resources of the agencies. I would prefer that the filing fees be changed since the statute’s enactment Because of the unnecessarily low mone- eliminated completely, in the interest in 1976—but we also view the proposals tary thresholds, the current Act simply of seeing the reforms in this bill be- in this legislation as a starting point, fails to reflect the true economic im- come law, this legislation does not in- and not necessarily the last word on pact of mergers and acquisitions in to- clude such a measure. this subject. day’s economy. Second, this legislation reforms the The Hart-Scott-Rodino Act is crucial In addition, after a premerger notifi- second request process by limiting the to the enforcement of competition pol- cation is filed, the Hart-Scott-Rodino scope of the information and docu- icy in today’s economy—it ensure that Act imposes a 30-day waiting period ments that the agencies may require the antitrust agencies have sufficient during which the proposed transaction transacting companies to produce. time to review mergers and acquisi- may not close and the Antitrust Divi- Under this legislation, second requests tions prior to their completion. The sion or the FTC conducts an antitrust must be limited to information that (1) statute requires that, prior to consum- investigation. Prior to the expiration is not unreasonably cumulative or du- mating a merger or acquisition of a of this waiting period, the agency in- plicative and (2) does not impose a cost certain minimum size, the companies vestigating the transaction may make or burden on the transacting parties involved must formally notify the anti- a ‘‘second request’’—a demand for addi- that substantially outweighs any ben- trust agencies and must provide cer- tional information or documentary ma- efit to the agencies in conducting their tain information regarding the pro- terial that is relevant to the proposed antitrust review. If a company believes posed transaction. For those trans- transaction. Unfortunately, many sec- that the second request does not meet actions covered by the Act, the parties ond requests require the production of this standard, then that company may to a merger or acquisition may not an enormous volume of materials, petition a United States magistrate close their transaction until the expi- many of which are unnecessary for judge for review of the second request. ration of a thirty day waiting period even the most comprehensive merger Similarly, if the company produces in- after making their Hart-Scott-Rodino review. Complying with such second re- formation and documents pursuant to Act filing. This waiting period may be quests has become very burdensome, a second request, but the agency deter- extended by the antitrust agencies re- often costing companies in excess of $1 mines that the company has not ‘‘sub- questing additional information from million to comply. Second requests stantially compiled’’ with the request, the parties to the transaction in which also extend the waiting period for an then the company also may petition case, under current law, the parties additional 20 days, a period of time the magistrate judge for a determina- may not complete the deal until twen- which does not begin to run until the tion on substantial compliance. To en- ty days after supplying the government agencies have determined that the sure that proposed transactions are not with the requested information. transacting companies have ‘‘substan- unreasonably delayed, the bill provides While this statute has a very laud- tially complied’’ with the second re- deadlines by which the agency must able purpose, especially with the tre- quest. This procedure results in many notify a company of its failure to com- mendous numbers of mergers and ac- lawful transactions being unneces- ply with a second request and also im- quisitions taking place in recent years, sarily delayed for extended periods of poses certain controls, so that the some of its provisions are in need of re- time. process is not tied up in litigation by vision. Most importantly, while infla- Mr. President, the legislation that I either the transacting party or the tion has caused the value of a dollar to am introducing today will correct government. drop by more than a half in the past 25 these problems with the Hart-Scott- Finally, this legislation requires that years, the monetary test that subjects Rodino Act. First, the legislation in- the Antitrust Division and the FTC a transaction to the provisions of the creases the size-of-transaction thresh- jointly report to Congress annually re- statute has not been revised since the old from $15 million to $35 million, ef- garding the second request process and law’s enactment in 1976. As a result, fectively exempting from the Act’s no- jointly publish guidelines on how com- many transactions that are of a rel- tification requirement mergers and ac- panies can comply with second re- atively small size and pose little anti- quisitions that, based on the FTC’s quests. trust concerns are nevertheless swept

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00104 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.090 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13975 into the ambit of the Hart-Scott-Ro- cludes provisions to amend the statute However, 44 countries worldwide have dino review process. This legislation to add a right of appeal to a U.S. Mag- relaxed then age 60 rule within the last would raise the size of transaction cov- istrate Judge to adjudicate disputes re- ten years primarily because the pilot ered by the Hart-Scott-Rodino Act garding the propriety of government shortage is a worldwide phenomenon. from $15 million to $35 million. This requests for additional information. We Many of these air carriers currently fly will both lessen the agencies’ burden of have not reached any final conclusions into U.S. airspace. reviewing small transactions unlikely regarding the wisdom of these provi- One of the ways carriers are attempt- to seriously affect competition and en- sions; they are certainly worth ‘‘float- ing to adapt to the shortage is to lower able the agencies to allocate their re- ing’’ as ideas, and the process will de- their flight time requirements. In my sources to properly focus on those termine if they should be included as view, this is a risk factor the FAA transactions most worthy of scrutiny. part of a final product. Further, we should be concerned about. Further, exempting smaller trans- should keep in mind that if this right How did this shortage occur? The actions from the Hart-Scott-Rodino of appeal provision is enacted it will reason is simple: There has been an ex- process will significantly lessen regu- impose significant additional litigation plosive growth of the major airlines latory burdens and expenses imposed burdens on the antitrust agencies worldwide, and there’s a shortage of on small businesses. The parties to which might require a corresponding military pilots who used to feed the these smaller transactions will no increase in funding for these agencies. system. In addition, there is an aging longer need to pay the $45,000 filing Our goal, again, is to improve the func- pilot pool that must retire at age 60. fee—or face the often even more oner- tioning of the pre-merger review sys- Add to this domino effect the decline ous legal fees and other expenses typi- tem which is so vital to antitrust en- in the number of people learning to fly, cally incurred in preparing a Hart- forcement and, in that context, this due primarily to the cost, and the pool Scott-Rodino filing—for mergers and provision deserves at least a supportive of available pilots has shrunk. acquisitions that usually don’t pose ‘‘look.’’ The shortage acutely affects my any competitive concerns. Mr. President, let me make one addi- home state of Alaska because we de- In exempting this class of trans- tional point. We recognize that all will pend on air transport far more than actions from Hart-Scott-Rodino re- not agree with the necessity or efficacy any other state. Rural residents in view, however, it is important that we of all of these reform proposals. We are, Alaska have no way out other than by not cause the antitrust agencies to lose of course, willing to consider any modi- air service. There are no rural routes, the funding they need to carry out fication to this legislation that will ad- state or interstate highways serving their increasingly demanding mission vance our goals of a more efficient most rural residents in Alaska and the of enforcing the nation’s antitrust merger review process. But virtually airplane for many of them is their life- laws. Therefore, we have attempted to everyone agrees that Hart-Scott-Ro- line to the outside world. ensure that our measure is revenue- dino needs to be updated and we’re The pilot shortage has left Alaskan neutral—indeed, it would raise filing pleased that this measure moves us for- carriers scrambling for pilots. Alaska’s fees for transactions valued at over ward. carriers must hire from the available $100,000,000, which makes sense because pilot pool in the lower 48. Many of By Mr. MURKOWSKI: these transactions require more scru- S. 1855. A bill to establish age limita- these pilots view flying in Alaska as a tiny. In considering this legislation, of tions for airmen; to the Committee on stepping stone that allows them to course, we will need to carefully study Commerce, Science, and Transpor- build up flight time. Although they get the budgetary implications of this re- tation. great flying experience in my home form to ensure that our goal of rev- state, in nearly all instances when a THE AIRLINE PILOT RETIREMENT AGE enue-neutrality has been met. As this Mr. MURKOWSKI. Mr. President, I pilot gets a higher-pay job offer with a measure moves forward, however, we rise to introduce legislation that at- larger carrier in the lower 48, he leaves ought to consider whether bigger deals tempts to diminish the scope of a prob- Alaska. of, say, $1 billion or $10 billion and over lem that is facing our air transport in- According to the Alaska Air Carriers should require higher fees. dustry, namely a critical shortage of Association, raising the retirement age This legislation makes other changes pilots. The pilot shortage is starting to to 65 will help alleviate the shortage designed to enhance the efficiency of have effects in many rural states. and keep experienced pilots flying and the pre-merger review process. The In response to this problem. I am serving rural Alaskans. waiting period has been extended from today introducing a bill that would re- Mr. President, I would note that twenty to thirty days after the parties’ peal the Federal Aviation Administra- what is happening across the country compliance with the government’s re- tion (FAA) rule which now requires pi- is that the major carriers are luring pi- quest for additional information, a lots who fly under Part 121 to retire at lots from commuter airlines, who in more realistic waiting period in this ago 60. Under my legislation, pilots in turn recruit from the air charter and era of increasingly complex mergers excellent health would be allowed to corporate industry, who in turn hire generating enormous amounts of rel- continue to pilot commercial airliners flight instructors, agriculture pilots, evant information and documents. As until their 65th birthday. etc. Which leaves rural carriers in the Federal Rules of Civil Proce- The Age 60 rule was instituted 40 strapped. The big fish are feeding off dure, when a deadline for action occurs years ago when commercial jets were the little ones. on a weekend or holiday, the deadline first entering service. The rule was es- Small carriers simply cannot com- is extended to the next business day. tablished without the benefit of med- pete with the salaries, benefits and This simple provision will eliminate ical or scientific studies or public com- training costs of the major carriers. gamesmanship by parties who cur- ment. The most recent study, the re- They simply do not have the financial rently may time their compliance so sults of which were released in 1993, ex- resources. that the waiting period ends on a week- amined the correlation between age According to figures provided by the end or holiday, effectively shortening and accident rate as pilots approach 60. Federal Aviation Administration, there the waiting period to the previous busi- That study found no increase in acci- were 694,000 pilots in 1988 and 616,342 in ness day. dents. 1997. Within that number, private pilot Mr. President, some have expressed The FAA contends that although certificates fell from approximately concerns regarding the difficulties and science does not dictate retirement at 300,000 in 1988 to 247,604 in 1997. Com- expense imposed on business in com- the age of 60, it is the age range when mercial certificates, like air taxi and plying with allegedly overly burden- sharp increases in disease mortality small commuter pilots, fell from 143,000 some or duplicative government re- and morbidity occur. In FAA’s view it in 1988 to 125,300 in 1997. The number of quests for additional information. So is too risky to allow older pilots to fly total pilots in Alaska fell from more we believe that it is reasonable to con- the largest aircraft, carrying the great- than 10,000 in 1988 to approximately sider methods to prevent abuse of this est number of passengers over the long- 8,700 in 1997. process by overbroad or unreasonable est non-stop distances, in the highest However, light is beginning to show requests. Therefore, this legislation in- density traffic. at the end of the tunnel.

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00105 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.092 pfrm13 PsN: S04PT1 S13976 CONGRESSIONAL RECORD — SENATE November 4, 1999 Organizations such as the Aircraft ∑ Mr. DOMENICI. Mr. President, I am THE NATIONAL SECURITY SEALIFT Owners and Pilots Association (AOPA) pleased today to be introducing the ENHANCEMENT ACT OF 1999 and the General Aviation Manufactur- Bisti PRLA Dispute Resolution Act, Mr. BREAUX. Mr. President, I am ers Association (GAMA) have been which will resolve a conflict regarding pleased today to introduce tax reform monitoring this shortage for some time coal mining leases in New Mexico. A legislation that is long overdue in the and have stepped up to the plate to get coal company and the Navajo Nation effort to revitalize the nation’s fourth people interested in flying. AOPA has have been deadlocked within the De- arm of defense, the United States flag started a pilot mentoring program in partment of Interior appeals process merchant marine. My bill, the National 1994 and approximately 30,000 have en- regarding preference right lease appli- Security Sealift Enhancement Act of tered the program. GAMA’s ‘‘Be a cations (PRLAs) in the Bisti region of 1999, would provide targeted tax relief Pilot’’ program is starting to bring northwestern New Mexico. When en- to enable the United States-flag ocean- more potential pilots into flight train- acted, this legislation will resolve a going commercial fleet to better coming. complex set of issues arising from legal pete with foreign-flag commercial Even the Air Force is starting to in- rights the Arch Coal Company acquired fleets registered in nations that have exempted companies from taxes. stitute new programs to keep pilots. in federal lands, which are now situ- Currently, United States companies In Alaska, as a result of a precedent- ated among lands which constitute operating U.S.-flag vessels, and for- setting program involving Yute Air, tribal property and the allotments of members of the Navajo Nation. Both eign-flag vessels operating under the the Association of Village Council application of national laws such as Presidents, the University of Alaska, the company and the Nation support this legislation to resolve the situa- Japan or France, are forced to compete Anchorage, Aero Tech Flight Service, against companies that operate vessels Inc., and the FAA, a program was de- tion. There are many reasons the solution under flag-of-convenience registries. veloped to train rural Alaska Natives Flag-of-convenience shipping registries to fly. Seven are on their way to pilot embodied in this bill achieves broad benefits to the interested parties and operate under the legal authority of careers. nations such as Panama, Liberia, Also, the number of students working the public. It will allow the Navajo Na- tion to complete the land selections Vanuatu, or the Marshall Islands, and on pilot licenses at the University’s attract shipping companies because of Flight Technology program has almost that were made in 1981 to promote tribal member resettlement following the the deminimus regulatory costs they doubled in two years. impose on companies operating under It is my hope that the shortage has partition of lands in Arizona. It also guarantees that Arch Coal, Inc. will be their flag. All of these nations exempt hit rock bottom. But even so, it will companies from taxes on income, and take years before a cadre of qualified compensated for the economic value of its coal reserves. An independent panel employees operating on the vessels do pilots is ready to take to the friendly not pay tax on income they earn work- skies. will make recommendations to the Secretary of Interior regarding the fair ing aboard. The owners can employ for- Mr. President, the time has come for eign laborers, usually from third world Congress to wrestle with this problem. market value of the coal reserves, gives the company bidding rights, protects a nations, for very little pay, often work- As long as a pilot can pass the rigorous ing in unacceptable conditions. Addi- medical exam, he or she should be al- state’s financial interest in its share of federal Mineral Leasing Act payments, tionally, the vessel operations are not lowed to fly. Air service is critical to and allows the Navajo Nation full fee required to comply with rigorous keep commerce alive, especially in ownership in their lands. United States Coast Guard safety and rural states. The Secretary of Interior will issue a environmental standards, and these op- I ask unanimous consent that the certificate of bidding rights to Arch erators use private companies to in- text of the bill be printed in the Coal upon relinquishment of its inter- spect their vessels to ensure that they RECORD. ests in the PLRAs. The amount of that are in compliance with international There being no objection, the bill was certificate will equal the fair market safety laws. ordered to be printed in the RECORD, as value of the coal reserves as defined by Mr. President, we are all well aware follows: the Department of Interior’s regula- of the critical role played by the Amer- S. 1855 tions. A panel consisting of representa- ican maritime industry in the economy Be it enacted by the Senate and House of Rep- tives of the Department of Interior, of Louisiana and our nation. In my resentatives of the United States of America in Arch Coal, and the Governors of Wyo- home state alone, the total economic Congress assembled, ming and New Mexico will help deter- impact of that industry was estimated SECTION 1. AGE AND OTHER LIMITATIONS. mine fair market value. While the Inte- in 1997 to be over $28 billion, supporting (a) GENERAL.—Notwithstanding any other rior Department is authorized to ex- approximately 230,000 jobs throughout provision of law, beginning on the date that change PRLAs for bidding rights, the Louisiana. That economic impact con- is 30 days after the date of enactment of this stitutes almost 30 percent of the total Act— Department has not done so, largely because of the difficulty it perceives in gross state product for Louisiana. Lou- (1) section 121.383(c) of title 14, Code of Fed- isiana companies were among the first eral Regulations, shall not apply; determining the fair market value of (2) no certificate holder may use the serv- the coal reserves. The panel method in to respond to the nation’s call to pro- ices of any person as a pilot on an airplane this legislation will promote the objec- vide for the rapid transport of critical engaged in operations under part 121 of title tivity of that process. equipment, munitions, and supplies to 14, Code of Federal Regulations, if that per- Upon the relinquishment of the the Persian Gulf in those critical days son is 65 years of age or older; and PRLAs and the issuance of a certificate following the 1990 Iraqi invasion of Ku- (3) no person may serve as a pilot on an of bidding rights, the Department of wait. However, the very existence of airplane engaged in operations under part 121 the American flag fleet, and thus the of title 14, Code of Federal Regulations, if Interior will execute patents to the Navajo Nation of the selected lands en- related economic and national defense that person is 65 years of age or older. benefits that flow from that fleet, are (b) CERTIFICATE HOLDER.—For purposes of compassed by the PRLAs. This is a this section, the term ‘‘certificate holder’’ win-win situation for all parties in- severely threatened by U.S. tax rules means a holder of a certificate to operate as volved; is endorsed by the affected par- that unfairly hamper and restrict an air carrier or commercial operator issued ties, and is a fair resolution to this on- American shipping. by the Federal Aviation Administration. going problem. I hope for prompt ac- I have worked from the first days of tion on this legislation early next my arrival in the Congress to strength- By Mr. DOMENICI: year.∑ en the U.S.-flag maritime industry and S. 1857. A bill to provide for convey- level the playing field in international ance of certain Navajo Nation lands lo- By Mr. BREAUX: shipping. Despite the well-intentioned cated in northwestern New Mexico and S. 1858. A bill to revitalize the inter- efforts of the Congress, the Maritime to resolve conflicts among the mem- national competitiveness of the United Administration and other federal agen- bers of such Nation who hold interests States-flag maritime industry through cies to support the U.S.-flag commer- in allotments on such lands; to the tax relief; to the Committee on Fi- cial fleet, unfavorable and clearly non- Committee on Indian Affairs. nance. competitive U.S. tax policies have led

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.103 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13977 to the continuing decline of that fleet. plies overseas quickly and effectively U.S. income taxes. Rather, I have de- In fact, according to statistics main- is critical to its national security. The veloped a comprehensive yet narrowly tained by the Maritime Administra- United States cannot rely on foreign focused bill that provides the necessary tion, the commercial fleet of the allies to achieve our national security relief to alleviate the tax burden on the United States has fallen into 11th place objectives. We must be able to act deci- U.S.-flag fleet. This legislation is de- internationally, in total carrying ca- sively, and to act unilaterally, when signed to provide a tax environment for pacity, ranking behind those fleets of our strategic interests are jeopardized. U.S.-flag carriers that more closely ap- Panama, Liberia, Malta, the Bahamas, To ensure the maritime industry’s abil- proaches the favorable tax treatment and other nations who offer significant ity to accomplish this crucial task, the provided by other maritime nations to economic and tax advantages to their military utilizes privately-owned U.S.- their own merchant fleets. The Act in- commercial vessels and crews. flagged commercial vessels to supple- cludes the following provisions: These same issues have also plagued ment the military’s own transpor- Capital Construction Fund (CCF) Re- other industrialized nations that oper- tation systems in both times of war form. Title I of the Act would expand ate shipping under the application of and peace. Without such capability, the the CCF to allow deposits of earnings national laws and policies. For in- military would have to build and oper- from U.S. flag, foreign-built ships to be stance, between the period of 1975 and ate, at a significantly greater expense contributed to a CCF for the construc- 1992, the national flag fleet operations to the government and ultimately the tion of vessels in the United States. in terms of deadweight carrying capac- U.S. taxpayers, many more military Qualified withdrawals from a CCF ity decreased by 94% in the United transport vessels to ensure it can effec- would continue to apply only to U.S. Kingdom, 98% in Norway, 73% in tively respond to military contin- built vessels and would be expanded to France, 53% in Germany, 73% in Swe- gencies in a timely manner. include vessels that operate between den, 98% in Denmark, and 47% in As General Colin Powell so accu- coastwise points of the United States. Japan. rately observed following the Persian Contributions to a CCF would no In order to combat decreases in the Gulf War in 1991: longer be treated as preference items operation of shipping under national Our [nation’s] strategy requires us to be under the corporate Alternative Min- registries, nations have taken steps to able to project power quickly and effectively imum Tax, and owners of U.S. flag provide direct subsidies or indirect sup- across the oceans to deal with the crisis we ships would also be allowed to deposit couldn’t avoid or predict. Sealift will be crit- port schemes that help owners offset into a CCF the duty arising from for- ical to fulfilling this strategic requirement. eign ship repairs. the higher costs of operating under na- . . . [The military] also acknowledges that tional laws. Other nations, such as Election to Expense U.S. Flag Ves- the merchant marine and our maritime in- sels. Significantly, for the majority of Denmark and Norway, have created dustry will be vital to our national security what are called international reg- for many years to come . . . the foreign flag commercial fleet, there istries, or open registries, and have re- We simply cannot stand idly by while is no applicable depreciation schedule duced taxes and societal costs to help this vital national security asset is unfor commercial vessels because those vessels and their corporate owners and offset the costs as compared to flag-of dercut through counter productive tax operators are totally exempt from inconvenience vessels. Out of the eleven policies that do not allow the U.S.-flag come taxation. Other maritime nations largest shipping registries, by carrying commercial fleet to operate competi- that impose income taxes on commer- capacity, seven operate as flag-of-con- tively, in the most competitive of all cial vessel operations still have depre- venience registries or open registries. markets—that of international ship- ciation schedules far more lenient than The other four nations are Greece, ping. the anti-competitive 10-year schedule Japan, the People’s Republic of China Mr. President, to preserve that vital applicable to U.S.-flagged vessels. (which operates it’s fleet as a govern- national security asset, I believe it is Therefore, in order to be internation- mentally controlled entity), and the essential to provide a tax environment for U.S.-flag carriers that more closely ally competitive, Title II of the Act United States. would enable the owner of any U.S. flag Mr. President, what is even more as- approaches the favorable tax treatment vessel engaged in the international tounding is that the percentage of car- provided by other maritime nations to trade of the U.S. to fully deduct that goes carried by U.S.-flag vessels in the their own merchant fleets, while also vessel in the year in which the vessel is foreign trades has also declined pre- creating incentives for the construc- acquired and documented under the cipitously. At the end of World War II, tion of new vessels in U.S. shipyards. U.S. flag. after we had been forced to rebuild our Foreign tax incentives have significantly undermined the ability of the Seaman’s Wage Exclusion. Consistent shipping fleet in order to satisfy our with the current policies and objectives defense logistic needs, almost 60 per- U.S. to retain a viable commercial fleet for defense purposes and to en- of Section 911 of the Internal Revenue cent of the U.S. oceanborne commerce hance the balance of trade. By way of Code, Title III of the Act would extend in international trade was carried example, U.S.-flag commercial vessel the foreign earned income exclusion to aboard U.S.-flag vessels. Today, that operators must pay a 34 percent tax on American merchant mariners by figure is a mere 3 percent. To state this corporate income and a 50 percent duty changing the definition of ‘‘foreign another way, 97 out of every 100 tons of on vessel repairs made in foreign coun- country’’ to include a principal place of cargo imported into or exported from tries; they are subject to far more re- employment aboard a commercial ves- the United States is carried aboard for- strictive (and expensive) Coast Guard sel operating outside the United eign-flagged ships. Through a wide va- and other federal operational and safe- States, and amending the foreign resi- riety of favorable tax incentives, in- ty requirements; and their crew- dence test to include work aboard a cluding in most cases a total exemp- members engaged in the foreign trade vessel. tion from taxation, many foreign juris- do not share in the tax relief otherwise Alternative Minimum Tax Relief. In dictions have succeeded in developing provided to U.S. citizens working order to be internationally competi- commercial maritime fleets that far abroad. On the other hand, owners of tive, Title IV of the Act repeals the Al- exceed the capacity of that in the U.S. foreign-flagged vessels of the Bahamas, ternative Minimum Tax (AMT) with re- What truly concerns me is that the Liberia, Malta, Panama and many spect to shipping income. No such tax United States is rapidly undermining other countries are totally exempt exists on commercial vessels of any its very national security through its from any taxation. Therefore, it is not other foreign country, and the changes failure to enable the U.S.-flag commer- surprising to see that the Bahamas, Li- proposed elsewhere in this Act will es- cial fleet to compete on an equal foot- beria, Malta, and Panama have four of sentially be meaningless if the AMT ing with foreign-flagged shipping. I rec- the top five commercial fleets in the continues to apply to shipping income. ognize the strategic importance of the world, and that vessel owners from Deduction of Expenses. The existing U.S.-flag merchant marine and Amer- around the world regularly register tax provision which permits the deduc- ican merchant mariners, and share the their ships with these countries to tion of expenses with respect to con- views of other senior political and mili- avoid taxation. ventions, seminars or other meetings tary leaders that the ability of the U.S. Mr. President, I am not proposing to on U.S.-flag cruise vessels traveling be- to move its military personnel and sup- exempt U.S.-flag vessel owners from tween U.S. ports would be expanded by

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00107 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.124 pfrm13 PsN: S04PT1 S13978 CONGRESSIONAL RECORD — SENATE November 4, 1999 Title V of the Act to include U.S.-flag ing after subparagraph (C) the following new and (6) as paragraphs (4) and (5), respec- cruises between the United States and subparagraph: tively. foreign ports. ‘‘(D) the payments of amounts which re- (3) Subparagraph (A) of section 7518(g)(5) of such Code, as redesignated by paragraph (2), Mr. President, absent the tax reforms duce the principal amount (as determined under regulations) of a qualified lease of a is amended by striking ‘‘paragraph (5)’’ and in the attached proposal, U.S.-flag car- qualified vessel or container which is part of inserting ‘‘paragraph (4)’’. riers in Louisiana and elsewhere will the complement of an eligible vessel.’’. (f) OTHER CHANGES.— continue to face a formidable tax cost (2) Paragraph (4) of section 7518(f) of such (1) Paragraph (2) of section 7518(b) of such disadvantage against foreign flag car- Code is amended by inserting ‘‘or to reduce Code is amended by striking ‘‘interest-bear- riers, who pay little or no tax to their the principal amount of any qualified lease’’ ing securities approved by the Secretary’’ after ‘‘indebtedness’’. and inserting ‘‘interest-bearing securities home countries. This cost differential and other income-producing assets (includ- impedes the ability of U.S.-flag car- (b) AUTHORITY TO MAKE DEPOSITS UNDER THE TARIFF ACT OF 1930.— ing accounts receivable) approved by the riers to compete in the global market- (1) Paragraph (1) of section 7518(a) of such Secretary’’. place, as evidenced by the ever growing Code is amended by striking ‘‘and’’ at the (2) The last sentence of paragraph (1) of share of non-U.S. flag carriers cur- end of subparagraph (C), by striking the pe- section 7518(e) of such Code is amended by rently carrying this nation’s imports riod at the end of subparagraph (D) and in- striking ‘‘and containers’’ each place it ap- serting ‘‘, and’’, and by adding at the end the pears. and exports. It is universally recog- (3) Subparagraph (B) of section 543(a)(1) of following new subparagraph: nized that key components of a strong such Code is amended to read as follows: national economy are a strong national ‘‘(E) the amount elected for deposit under ‘‘(B) interest on amounts set aside in a merchant marine and shipyard indus- subsection (i) of section 466 of the Tariff Act capital construction fund under section 607 of 1930 (19 U.S.C. 1466).’’. of the Merchant Marine Act, 1936 (46 App. trial base, and it is now appropriate to (2) Subparagraph (A) of section 7518(d)(2) of alleviate the tax burden on the U.S.- U.S.C. 1177), or in a construction reserve such Code is amended to read as follows: fund under section 511 of such Act (46 App. flag fleet and simultaneously promote ‘‘(A) amounts referred to in subsections U.S.C. 1161),’’. construction in U.S. shipyards. I urge (a)(1)(B) and (E).’’. (4) Subsection (c) of section 56 of such Code my colleagues to strongly support this (c) AUTHORITY TO MAKE DEPOSITS FOR is amended by striking paragraph (2) and by legislation for the good of our Amer- PRIOR YEARS BASED ON AUDIT ADJUST- redesignating paragraph (3) as paragraph (2). ican flag fleet and the security of our MENTS.—Subsection (a) of section 7518 of (5) Section 7518(e) is amended by adding at such Code is amended by adding at the end nation. the end the following new paragraph: thereof the following new paragraph: ‘‘(3) QUALIFIED WITHDRAWAL.—In the case of I ask unanimous consent that the ‘‘(4) DEPOSITS FOR PRIOR YEARS.—To the ex- amounts in any fund as of the date of the en- text of this bill be printed in the tent permitted by joint regulations, deposits actment of this paragraph, and any earnings RECORD. may be made in excess of the limitation de- thereon, for purposes of this subsection, the There being no objection, the bill was scribed in paragraph (1) (and any limitation term ‘qualified withdrawal’ has the meaning ordered to be printed in the RECORD, as specified in the agreement) for the taxable given such term by applying subsection (i)(2) follows: year if, by reason of a change in taxable in- as of such date.’’ come for a period taxable year that has be- ‘‘(g) DEFINITIONS.—Subsection (i) of Sec- S. 1858 come final pursuant to a closing agreement tion 7518 of such Code is amended to read as Be it enacted by the Senate and House of Rep- or other similar agreement entered into dur- follows: resentatives of the United States of America in ing the taxable year, the amount of the de- ‘‘(i) DEFINITIONS.— Congress assembled, posit could have been made for such prior ‘‘(1) IN GENERAL.—Except as provided in SECTION 1. SHORT TITLE. taxable year.’’. paragraph (2), terms used in this section This Act may be cited as the ‘‘National Se- (d) TREATMENT OF CAPITAL GAINS AND shall have the same meaning as in section curity Sealift Enhancement Act of 1999’’. LOSSES.— 607(k) of the Merchant Marine Act, 1936. ‘‘(2) OTHER DEFINITIONS.—For the purposes SEC. 2. TABLE OF CONTENTS. (1) Paragraph (3) of section 7518(d) of such Code is amended to read as follows: of this section— The table of contents for this Act is as fol- ‘‘(A) The term ‘eligible vessel’ means any lows: ‘‘(3) CAPITAL GAIN ACCOUNT.—The capital gain account shall consist of— vessel— Sec. 1. Short title. ‘‘(i) documented under the laws of the ‘‘(A) amounts representing long-term cap- Sec. 2. Table of contents. United States, and TITLE I—CAPITAL CONSTRUCTION FUND ital gains (as defined in section 1222) on as- ‘‘(ii) operated in the foreign or domestic sets held in the fund, reduced by Sec. 101. Amendments of Internal Revenue commerce of the United States or in the fish- ‘‘(B) amounts representing long-term cap- eries of the United States. Code of 1986. ital losses (as defined in such section) on as- Sec. 102. Amendment to the Tariff Act of ‘‘(B) QUALIFIED VESSEL.—The term ‘quali- sets held in the fund.’’. fied vessel’ means any vessel— 1930. (2) Subparagraph (B) of section 7518(d)(4) of Sec. 103. Effective date. ‘‘(i) constructed in the United States and, such Code is amended to read as follows: if reconstructed, reconstructed in the United TITLE II—ELECTION TO EXPENSE ‘‘(B)(i) amounts representing short-term States, UNITED STATES FLAG VESSELS capital gains (as defined in section 1222) on ‘‘(ii) documented under the laws of the Sec. 201. Election to expense certain United assets held in the fund, reduced by United States, and States flag vessels. ‘‘(ii) amounts representing short-term cap- ‘‘(iii) which the person maintaining the TITLE III—INCOME EXCLUSION FOR ital losses (as defined in such section) on as- fund agrees with the Secretary will be oper- MERCHANT SEAMEN sets held in the fund,’’. ated in the fisheries of the United States, or (3) Subparagraph (B) of section 7518(g)(3) of Sec. 301. Income of merchant seaman exclud- in the United States foreign, Great Lakes, such Code is amended by striking ‘‘gain’’ and able from gross income as for- noncontiguous domestic trade, or other all that follows and inserting ‘‘long-term eign earned income. oceangoing domestic trade between two capital gain (as defined in section 1222), coastal points in the United States or in sup- TITLE IV—EXEMPTION FROM and’’. port of operations conducted on the Outer ALTERNATIVE MINIMUM TAX (4) The last sentence of subparagraph (A) of Continental shelf. Sec. 401. Exemption from alternative min- section 7518(g)(6) of such Code is amended by ‘‘(C) VESSEL.—The term ‘vessel’ includes imum tax for corporations that striking ‘‘20 percent (34 percent in the case of containers or trailers intended for use as operate United States flag ves- a corporation)’’ and inserting ‘‘the rate ap- part of the complement of one or more eligi- sels. plicable to net capital gain under such sec- ble vessels and cargo handling equipment TITLE V—CONVENTIONS OF UNITED tion 1(h)(1)(C) or 1201(a), as the case may be’’. which the Secretary determines is intended STATES-FLAG CRUISE SHIPS (e) COMPUTATION OF INTEREST WITH RE- for use primarily on the vessel. The term SPECT TO NONQUALIFIED WITHDRAWALS.— Sec. 501. Conventions on United States-flag ‘vessel’ also includes an ocean-going towing (1) Subparagraph (C) of section 7518(g)(3) of cruise ships. vessel or an ocean-going barge or comparable such Code is amended— towing vessel or barge operated on the Great TITLE I—CAPITAL CONSTRUCTION FUND (A) by striking clause (i) and inserting the Lakes. SEC. 101. AMENDMENTS OF INTERNAL REVENUE following new clause: ‘‘(D) FOREIGN COMMERCE.—The terms ‘for- CODE OF 1986. ‘‘(i) no addition to the tax shall be payable eign commerce’ and ‘foreign trade’ have the (a) TREATMENT OF CERTAIN LEASE PAY- under section 6651, and’’, and meanings given such terms in section 905 of MENTS.— (B) by striking ‘‘paid at the applicable rate the Merchant Marine Act, 1936, except that (1) Paragraph (1) of section 7518(e) of the (as defined in paragraph (4))’’ in clause (ii) these terms should include commerce or Internal Revenue Code of 1986 is amended by and inserting ‘‘paid in accordance with sec- trade between foreign ports. striking ‘‘or’’ at the end of subparagraph (B), tion 6601’’. ‘‘(E) QUALIFIED LEASE.—The term ‘qualified by striking the period at the end of subpara- (2) Subsection (g) of section 7518 of such lease’ means any lease with a term of at graph (C) and inserting ‘‘, or’’, and by insert- Code is amended by striking paragraph (5) least 5 years.’’

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00108 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.125 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13979 SEC. 102. AMENDMENT TO THE TARIFF ACT OF (1) Paragraph (1) of section 263(a) of such vessel’ means a United States flag vessel 1930. Code is amended by striking ‘‘or’’ at the end having a deadweight tonnage of not less than Section 466 of the Tariff Act of 1930 (19 of subparagraph (G), by striking the period 10,000 deadweight tons that is operated ex- U.S.C. 1466) is amended by adding at the end at the end of subparagraph (H) and inserting clusively in the foreign trade of the United the following new subsection: ‘‘; or’’, and by adding at the end the fol- States during each of the 360 days imme- ‘‘(i) ELECTION TO DEPOSIT DUTY INTO A CAP- lowing new subparagraph: diately preceding the last day of the taxable ITAL CONSTRUCTION FUND IN LIEU OF PAYMENT ‘‘(I) expenditures for which a deduction is year. Days during which the vessel is TO THE SECRETARY OF THE TREASURY.—At the allowed under section 179B.’’. drydocked, surveyed, inspected, or repaired election of the owner or master of any vessel (2) Subparagraph (B) of section 312(k)(3) of shall be considered days of operation for pur- referred to in subsection (a) of this section such Code is amended by striking ‘‘or 179A’’ poses of this subsection. which is an eligible vessel (as defined in sec- each place it appears and inserting ‘‘, 179A, ‘‘(C) FOREIGN TRADE.—The term ‘foreign tion 7518(i)(2) of the Internal Revenue Code or 179B’’. trade’ has the meaning given to such term of 1986), the portion of any duty imposed by (3) Subparagraph (C) of section 1245(a)(2) of by section 7518(i)(2).’’ subsection (a) which is deposited in a fund such Code is amended by inserting ‘‘179B,’’ b. EFFECTIVE DATE.—The amendment made established under section 607 of the Mer- after ‘‘179A,’’. by this section shall apply to taxable years chant Marine Act, 1936 shall be treated as (4) The table of sections for part VI of sub- ending after the date of the enactment of paid to the Secretary of the Treasury in sat- chapter B of chapter 1 of such Code is amend- this Act. isfaction of the liability for such duty.’’ ed by inserting after the item relating to TITLE V—CONVENTIONS ON UNITED SEC. 103. EFFECTIVE DATE. section 179A the following new item: STATES-FLAG CRUISE SHIPS (A) IN GENERAL.—Except as otherwise pro- ‘‘Sec. 179B. Deduction for United States flag vessels.’’ SEC. 501. CONVENTIONS ON UNITED STATES- vided in this section, the amendments made FLAG CRUISE SHIPS. (c) EFFECTIVE DATE.—The amendments by this title shall apply to taxable years end- (a) IN GENERAL.—Section 274(h)(2) of the made by this section shall apply to taxable ing after the date of the enactment of this Internal Revenue Code of 1986 (relating to years ending after the date of the enactment Act. conventions on cruise ships) is amended by of this Act. (b) CHANGES IN COMPUTATION OF INTER- striking ‘‘that—’’ and all that follows EST.—The amendments made by section TITLE III—INCOME EXCLUSION FOR through ‘‘possessions of the United States.’’ 101(e) shall apply to withdrawals made after MERCHANT SEAMEN and inserting ‘‘that the cruise ship is a ves- December 31, 1998, including for purposes of SEC. 301. INCOME OF MERCHANT SEAMAN EX- sel registered in the United States.’’ computing interest on such a withdrawal for CLUDABLE FROM GROSS INCOME AS (b) EFFECTIVE DATE.—The amendment periods on or before such date. FOREIGN EARNED INCOME. made by subsection (a) shall apply to taxable (c) QUALIFIED LEASES.—The amendments (a) SECTION 911 EXCLUSION.—Section 911(d) years ending after the date of the enactment made by section 101(a) shall apply to leases of the Internal Revenue Code of 1986 (relat- of this Act. in effect on, or entered into after, December ing to citizens or residents of the United 31, 1998. States living abroad) is amended by redesig- By Mr. GRAMS: (d) AMENDMENT TO THE TARIFF ACT OF nating paragraph (9) as paragraph (10) and by S. 1859. A bill to amend the Internal 1930.—The amendment made by section 102 inserting after paragraph (8) the following: Revenue Code of 1986 to provide a tax ‘‘(9) APPLICATION TO CERTAIN MERCHANT MA- shall apply with respect to entries not yet credit to taxpayers investing in eco- liquidated by December 31, 1998, and to en- RINE CREWS.—In applying this section to an tries made on or after such date. individual who is a citizen or resident of the nomically distressed rural communities, and for other purposes; to the TITLE II—ELECTION TO EXPENSE United States and who is employed for a UNITED STATES FLAG VESSELS minimum of 90 days during a taxable year as Committee on Finance. a regular member of the crew of a vessel or RURAL REVITALIZATION ACT OF 1999 SEC. 201. ELECTION TO EXPENSE CERTAIN vessels owned, operated, or chartered by a S. 1860. A bill to amend the Internal UNITED STATES FLAG VESSELS. United States citizen— (a) IN GENERAL.—Part VI of subchapter B ‘‘(A) the individual shall be treated as a Revenue Code of 1986 to expand income of chapter 1 of the Internal Revenue Code of qualified individual without regard to the re- averaging to small agriculture-related 1986 is amended by inserting after section quirements of paragraph (1); and businesses; to the Committee on Fi- 179A the following new section: ‘‘(B) any earned income attributable to nance. ‘‘SEC. 179B. DEDUCTION FOR UNITED STATES services performed by that individual so em- INCOME AVERAGING LEGISLATION FLAG VESSELS. ployed on such vessel while it is engaged in S. 1861. A bill to amend the Internal ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer transportation between the United States may elect to treat the cost of any vessel that and a foreign country or possession of the Revenue Code of 1986 to provide com- is a qualified United States flag vessel as an United States shall be treated (except as pro- prehensive tax relief for small family expense which is not chargeable to its cap- vided by subsection (b)(1)(B)) as foreign farmers, and for other purposes; to the ital account. earned income regardless of where payments Committee on Finance. ‘‘(b) YEAR IN WHICH DEDUCTION ALLOWED. of such income are made.’’ FARMER TAX RELIEF ACT OF 1999 The deduction under subsection (a) shall be (b) EFFECTIVE DATE.—The amendment Mr. GRAMS. Mr. President, I rise allowed for the taxable year in which the made by this section shall apply to taxable today to offer a multi-faceted package vessel first becomes a qualified United years ending after the date of the enactment States flag vessel. of this Act. of tax cuts and federal program ‘‘(c) DEFINITIONS.— TITLE IV—EXEMPTION FROM changes to help our nation’s farmers ‘‘(1) QUALIFIED UNITED STATES FLAG VES- ALTERNATIVE MINIMUM TAX weather this period of low commodity SEL.—For purposes of this section, the term prices. I will first note that this bill is ‘qualified United States flag vessel’’ means a SEC. 401. EXEMPTION FROM ALTERNATIVE MIN- IMUM TAX FOR CORPORATIONS obviously not a cure-all for the farm- United States flag vessel that is operated ex- THAT OPERATE UNITED STATES ers’ plight, but significant tax reform clusively in the foreign trade of the United FLAG VESSELS. States. is an essential component of creating (a) IN GENERAL.—Section 55 of the Internal an environment where farmers can ‘‘(2) COST.—For purposes of this section, Revenue Code of 1986 is amended by adding the term ‘cost’ means an amount equal to at the end the following new subsection: thrive. Regulatory reform, crop insur- the lesser of— ‘‘(f) EXEMPTION FOR CORPORATIONS THAT ance reform, and improvements in our ‘‘(A) the purchase price of the vessel, or OPERATE UNITED STATES FLAG VESSELS.— agriculture trade policies are also crit- ‘‘(B) the adjusted basis of the vessel, deter- ‘‘(1) IN GENERAL.—The tentative minimum ical elements of boosting farm income. mined under section 1011, at the time that tax of a corporation shall be zero for any The bill I introduce is a collection of the vessel becomes a qualified United States taxable year in which the corporation is a tax reform concepts that have been flag vessel. qualified corporation. considered individually, but not as a ‘‘(d) BASIS REDUCTION.— ‘‘(2) DEFINITIONS.—For purposes of this (1) IN GENERAL.—For purposes of this title, subsection— package of comprehensive relief to the basis of any property shall be reduced by ‘‘(A) QUALIFIED CORPORATION.—The term farmers. Some were in the congres- the portion of the cost of such property ‘qualified corporation’ means any domestic sional tax cut package that the Presi- taken into account under subsection (a). corporation if— dent summarily vetoed, denying relief (2) ORDINARY INCOME RECAPTURE.—For pur- ‘‘(i) substantially all of the assets of such to farmers, middle class workers, and poses of section 1245, the amount of the de- corporation are related to the maritime small business owners. All of the provi- duction allowable under subsection (a) with transportation business, and sions of this bill would benefit the farm respect to any property which is of a char- ‘‘(ii) such corporation owns or demise character subject to the allowance for deprecia- ters a fleet of 4 or more qualified United community, and should not be tossed tion shall be treated as a deduction allowed States flag vessels. aside due to partisan posturing as was for depreciation under section 167.’’ ‘‘(B) QUALIFIED UNITED STATES FLAG VES- the case with this past summer’s tax (b) CONFORMING AMENDMENTS.— SEL.—The term ‘qualified United States flag relief bill. By offering this multi-part

VerDate 29-OCT-99 06:37 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00109 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.116 pfrm13 PsN: S04PT1 S13980 CONGRESSIONAL RECORD — SENATE November 4, 1999 legislation, I hope to provide a vehicle necessities of government, not to ment that USDA, when approving ap- to move comprehensive tax relief for transfer wealth from one segment of plications for loans and grants under an important sector in the American the population to another. And even if the Consolidated Farm and Rural De- economy and culture that has not you believe that such wealth transfer velopment Act, places a high priority shared in the prosperity of recent is a legitimate function of tax policy, on projects that encourage the creation years. can we at least agree that family farms of farmer-owner facilities that process The first provision in this legislation should be shielded from the takings? value-added agricultural products; an is the Farm and Ranch Risk Manage- The estate tax can be as high as 55%, amendment to the Federal Agriculture ment Accounts, which were also a part which is unfair, threatening the con- Improvement and Reform Act to give of the recent tax cut bill that the tinuity of family-owned businesses. USDA discretion to use funds for rural President vetoed. This provision would The next provision amends the tax development technical assistance; an allow producers to put up to 20% of net code to treat lands which are contig- amendment to the Rural Development farm income in a tax deferred account uous to a principal residence and which Act to emphasize market development where the funds could be held in re- were farmed for five years before the education and technical assistance for serve for up to five years for financial principal residence as part of such resi- operators of small- and medium-sized emergencies. Farmers operate in a dence, allowing it to be part of the ex- farms, in addition to production assist- volatile market, and they need all the clusion of gain from the sale of the ance. The amendment also requires risk management tools we can provide. principal residence. This allows older USDA to explore new marketing ave- When farmers earn a profit they usu- farmers to sell their property without nues such as direct farm to consumer ally invest in additional farm assets, facing extraordinary capital gains markets, local value-added processing, and this would give them a tax incen- taxes as a consequence. and farmer-owned cooperatives. tive and opportunity to instead save The legislation also acknowledges We need a renaissance of new think- more income as a buffer during down that farm income can fluctuate signifi- ing and new marketing opportunities cycles. cantly from year to year, and that for our farmers. I want to ensure that existing programs are focused on help- The second provision of my tax bill farmers need a break when income goes ing farmers receive a larger share of would accelerate the 100% deduct- does significantly after several good the value of their products. As I have ibility of health insurance premiums years. The bill thus includes a provi- said before, I’ve always been struck by for the self-employed to make them sion to reach back into a previous tax immediately effective, rather than the how we have a Department of Housing year and pull income from good years and Urban Development and a Depart- full phase-in by 2003. I will note again into a current down year. Farmers ment of Agriculture, but no real gov- that this was one of the critical provi- would then be recompensed for tax ernment emphasis on rural develop- sions in the tax cut bill that was ve- overpayments from previous years. ment. I hope that these provisions can toed by the President, and is also in- Current law permits farmers to lower help rebuild our rural economies. cluded in my health care legislation. their tax burdens in good years by The next two components of the bill Farmers should not receive the same averaging in income from less profit- restore a tax-exemption for value- tax considerations on health benefits able past periods, but it does not allow added farmer-owned cooperatives that as everyone else who obtains insurance previous good years to be averaged in was taken away by a recent IRS ruling, through their employment, so that to current low income levels. This pro- and extends declaratory judgment re- they do not have to choose between de- vision would provide this assistance to lief for the cooperatives affected by cent health care and other necessities struggling farmers, again, giving them this ruling. of life. This provision equalizes the tax some tools to work within a very vola- Finally, the bill also includes a pro- treatment for these farmers. tile market. vision that increases the threshold The third provision would raise the The bill also includes a provision to amount that triggers when a farmer effective exemption from estate taxes exempt from the alternative minimum and employed farm worker would have to $5 million and raise the gift tax ex- tax certain income from unincor- to pay payroll taxes. The current emption to $25,000. According to USDA porated farms. Thanks to initiatives to threshold is $150, and this bill would figures, farmers are six times more provide tax credits to working fami- raise it to $3,000. Farmers need the likely to face inheritance taxes than lies, many farm families would be able flexibility to be able to hire part-time other Americans. Farmers must farm to reduce their tax burden if they were workers, such as other nearby farmers more and more acres now to just eke not bumping up against the alternative or teenagers during the summer. We out a humble income. Thus, they accu- minimum tax. This correction is need- should free them from the burden and mulate large capital investments ed because the alternative minimum paperwork of having to pay payroll through the years that provide them a tax also does not always permit farm- taxes on a minimal amount of expendi- modest living, but when they die their ers to take advantage of current laws tures on employees. This $150 figure in estate is treated as if they were very concerning farmer income averaging. current law obviously does not reflect rich, and many have never even had a My legislation contains a provision current realities on the farm, and Con- new pickup. Many of these families to exclude from gross income up to gress should make this much needed want to leave their property to their $350,000 of capital gain from the trans- adjustment in the threshold figure. children, so that they can continue the fer of property in complete or partial Again, I believe that it is important heritage of farming the land. However, satisfaction of qualified farm indebted- to emphasize that major tax relief for the estate tax can reach such prohibi- ness of a taxpayer, subject to means farmers is a critical component of tive levels that sometimes the property testing. This would exclude capital making Freedom to Farm work, and must be sold to satisfy the insatiable gains taxes from the forced liquida- that’s why I’m introducing this bill. I tax revenue appetite of the federal gov- tions of farm property. hope that hearings will be held next ernment. The bill also ensures that farm land- year on Freedom to Farm, and some At the present time, the average age lords are treated the same as small adjustments my need to be made to of farmers is 58 years old. We are just business people and other commercial current law. In fact, I have my own bill a few years from a period of significant landlords, and removes the require- pending that would extend the term for transfers of real property from one gen- ment that they pay self-employment producers’ marketing loans from nine eration to another. With all the obsta- tax on cash rent income. This item cor- months up to thirty-six months, to cles to success that producers cur- rects an IRS technical advice memo- give farmers more flexibility, and thus rently face, why is the federal govern- randum to ensure that farmers, like more market power, in determining ment adding to their burdens by jeop- other real estate owners, do not have when to put their grain on the market. ardizing the time honored tradition of to pay self-employment taxes on in- No one on this side of the aisle argues passing the family farm down from come from cash rent. that Freedom to Farm is perfect, but generation to generation, when it only The measure also amends current law there are fundamental concepts in the generates one percent of federal taxes? to emphasis certain beneficial farm bill that farmers requested and I be- Taxes should be gathered to pay for the program goals. They include a require- lieve still want, such as the freedom to

VerDate 29-OCT-99 06:51 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00110 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.105 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13981 make their own decisions on what and them to continue serving farmers and the 21st Century (TEA–21) all 50 states how much to plant. I believe farmers rural communities. It also is consistent were qualified for SIB revolving funds. want to plant for the market, not the with the approach Congress took in the These funds are capitalized with fed- government. past regarding income averaging. Un- eral and state contributions and used This bill reflects my commitment to like the permanent income averaging to provide loans and other sorts of non- try to deliver on the promises to farm- for farmers, my legislation would sun- grant aid to transportation projects. ers that were made when Freedom to set income averaging for agriculture- TEA–21 expanded the SIB program to Farm was passed, such as trade expan- related businesses in three years. In ad- California, Florida, Missouri, and sion, fast track authority, regulatory dition, it only covers small businesses, Rhode Island. With this bill, I am pro- reform, and crop insurance reform. not big corporations. posing to add Vermont as a participant Of course, if the administration was Mr. President, the third tax bill I will in the SIB program. truly attempting to be accommodating introduce today is the Rural Revital- The SIB program functions to au- the needs of the farm community, ization Tax Credit (RRTC) Act. This thorize loans to public or private orga- there would be less need for the regu- bill fits into my overall goal of making nizations to cover the whole or partial latory reform bills currently pending. I rural America a better place to live. costs of an approved project, and to know American farmers can complete The objective is to attract business make allowances for the planning and worldwide, but we cannot drag our feet investment to rural areas to provide development of funding streams for re- on creating a climate in which they jobs for those who value life in the payment, which would not begin until can succeed. I believe this farmer tax small towns of rural America. These five years after the completion of the relief bill is a critical piece of the puz- jobs can also be invaluable for farm project. Also, there is a provision in zle. families suffering hard times through the TEA–21 for the creation of a Mr. President, the second tax relief low commodity prices, crop diseases or multistate infrastructure bank system measure I am introducing today would weather disasters. Full or part time among the pilot states. In this system, expand income averaging to small agri- jobs can often help farmers help their states are encouraged to share both culture-related businesses. family farms in down cycles. funds and ideas for curbing pollution Before 1986, American farmers, agri- This legislation is designed to en- and traffic problems and encouraging cultural-related businesses and others courage business investment in high other forms of transportation. could apply income averaging for tax poverty rural communities. It would It is my feeling that Vermont can be purposes. But the Tax Reform Act of create rural revitalization tax credits a national model on the efficiency of 1986 entirely eliminated income aver- which include a development credit meeting clean air standards and managing. Congress acted primarily on the that is provided to any company locat- aging sprawl while promoting eco- assumption that tax reduction would ing in high poverty rural communities. nomic growth. Under the SIB program substantially reduce the number of A company would receive a 6 percent the Vermont Agency of Transportation taxpayers whose fluctuating incomes tax credit annually of the amount of (VAOT) will collaborate with other could subject them to higher progres- the investment, which amounts to state agencies and local organizations sive rates and there was no need for in- about 25 percent of the value of the such as the Chittenden County Metro- come average. While it was understand- original investment over 7 years. politan Planning Organization able that Congress took such action at It also creates a wage tax credit (CCMPO) in order to reduce traffic, pol- that time, I believe it was clearly a which allows employers in high pov- lution, and growth problems that arise. mistake because Congress completely erty rural communities to receive up In order to fulfill these goals through ignored the nature of agriculture and to $3,000 per employee hired in that creative, cutting-edge projects, VAOT our rural communities. community. In addition, qualified busi- will require sufficient funds. To secure Today, low commodity prices have nesses are allowed to write off up to these funds, the legislation that I am made the income of American farmers $37,500 as an expense the cost of depre- introducing today would extend the and agriculture-related businesses fluc- ciable, tangible personal property. This SIB program to include Vermont. This tuate more wildly than that of any proposal is similar to urban empower- program will be an invaluable resource other group of taxpayers. In my own ment zone proposals introduced in the in the funding of projects that will pre- state of Minnesota, income in farm Congress. We want to apply it to rural vent our beautiful state from moving communities had decreased dramati- America as well. in the direction of gridlock and conges- cally in recent years. Mr. President, this measure will not tion. In response to this critical situation, solve all the problems that farmers and Vermont can be a model for the na- Congress reinstated income averaging people in rural areas are facing, but I tion—an example for other states fac- for individual farmers temporarily in believe it is one way to create more ing similar issues of finding a balance the Taxpayer Relief Act of 1997, and economic opportunities in our rural between growth and livability. last year Congress made it permanent communities to preserve and improve Vermont’s participation in the SIB for farmers. This was good change and the excellent quality of life in these program would provide more options to I was pleased to join Senator BURNS areas. find the solutions that will permit this and others in passing this important I send the three bills to the desk and proper balance to be attained. legislation. In my package of tax relief ask that they be assigned to the appro- I ask unanimous consent that the bill for farmers just discussed, I have added priate committees. be printed in the RECORD. new flexibility for farmers to use in- The PRESIDING OFFICER. The bills There being no objection, the bill was come averaging to their benefit. will be received and appropriately reordered to be printed in the RECORD, as Unfortunately, Congress unintention- ferred. follows: ally left one important group out of Mr. GRAMS. I thank the President. I S. 1862 last year’s relief legislation. American yield the floor. Be it enacted by the Senate and House of Rep- small agriculture-related businesses, resentatives of the United States of America in those who work hard to provide seeds, By Mr. JEFFORDS: Congress assembled, fertilizer, farming equipment and other S. 1862. A bill entitled ‘‘Vermont In- SECTION 1. STATE INFRASTRUCTURE BANK farm products for farmers, whose infrastructure Bank Program’’; to the PILOT PROGRAM. come depends on farmers’ income, are Committee on Environment and Public Section 1511(b)(1)(A) of the Transportation Works. Equity Act for the 21st Century (23 U.S.C. 181 not included in current law providing note; 112 Stat. 251) is amended by inserting income averaging. As a result, these VERMONT INFRASTRUCTURE BANK PROGRAM ‘‘Vermont,’’ after ‘‘Florida’’. small businesses are facing hardship Mr. JEFFORDS. Mr. President, I rise and need this relief as well. today to introduce legislation to per- By Mr. BAUCUS: Expanding income averaging to small mit my home state of Vermont to S. 1863. A bill to amend the Internal agriculture-related businesses would enter the State Infrastructure Bank Revenue Code of 1986 to provide an in- provide modest, but much needed, as- (SIB) program. Before the enactment centive to small businesses to establish sistance to these businesses and allow of the Transportation Equity Act for and maintain qualified pension plans

VerDate 29-OCT-99 06:51 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00111 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.108 pfrm13 PsN: S04PT1 S13982 CONGRESSIONAL RECORD — SENATE November 4, 1999 by allowing a credit against income tionately high for businesses with few lated credits) is amended by adding at the taxes for contributions to, and start-up employees, as are the costs associated end the following new section: costs of, the plan; to the Committee on with meeting all of the regulatory re- ‘‘SEC. 45D. SMALL EMPLOYER PENSION PLAN Finance. quirements that can apply to pension CREDIT. SMALL EMPLOYER PENSION START-UP plans. And their employees, who fre- ‘‘(a) GENERAL RULE.—For purposes of sec- INCENTIVE ACT quently earn minimum wage and don’t tion 38, in the case of an eligible employer, Mr. BAUCUS. Mr. President, I rise to have access to health insurance either, the small employer pension plan credit de- introduce a bill I believe will provide couldn’t afford to set money aside for termined under this section for any taxable important benefits for our country’s their retirement even if their employ- year is an amount equal to the sum of— small businesses and the millions of ‘‘(1) 50 percent of the qualified employer ers offered pension plans. contributions of the taxpayer for the taxable people who work for them. The Small The bill I am introducing today will year, and Employer Pension Start-up Incentive help reverse this trend. The Small Em- ‘‘(2) the qualified start-up costs paid or in- Act (SEPSI) will provide help to small ployer Pension Start-up Incentive Act curred by the taxpayer during the taxable businesses who want to help their em- will provide two new tax credits to year. ployees save for their retirement. small businesses that are providing ‘‘(b) LIMITATIONS.— Congress has spent a great deal of pension plans to their employees for ‘‘(1) LIMITS ON CONTRIBUTIONS.—For pur- time recently exploring the impact on the first time. The first credit will help poses of subsection (a)(1)— our country of the impending wave of defray the administrative costs that ‘‘(A) qualified employer contributions may baby boomer retirements. Much of this accompany starting a new pension only be taken into account for each of the debate has centered around strength- plan. It will provide up to $500 per year first 5 taxable years ending after the date ening the Social Security Trust Fund, the employer establishes the qualified em- in tax relief for small businesses to ployer plan to which the contribution is so we can keep the promise we made to compensate for the administrative made, and all working Americans that Social Se- costs they incur in providing a new ‘‘(B) the amount of the qualified employer curity will be there for them when they plan. The credit would be available for contributions taken into account with re- retire. During this debate, however, we three years, for employers with up to spect to any qualified employee for any such have all but neglected the important 100 workers. taxable year shall not exceed 3 percent of the role the private pension system plays The second credit goes right to the compensation (as defined in section 414(s)) of in American’s retirement security. heart of the pension problem—it helps the qualified employee for such taxable year. Social Security was never intended subsidize the contributions employers ‘‘(2) LIMITS ON START-UP COSTS.—The to provide the sole source of income for amount of the credit determined under sub- make into a new plan on behalf of their section (a)(2) for any taxable year shall not our retirees. Despite that, however, it employees. Studies have shown that exceed— is the only source of retirement income pension participation increases dra- ‘‘(A) $500 for each of the first, second, and for 16% of elderly Americans. And it is matically when employers offer to third taxable years ending after the date the the primary source of income for two- match employee savings. But in far too employer established the qualified employer thirds of all retirees. Unless we can many small businesses, neither the em- plan to which such costs relate, and change this disturbing trend, pre- ployer nor the employee can afford to ‘‘(B) zero for each taxable year thereafter. serving Social Security for the 21th set aside the money. My bill will pro- ‘‘(c) DEFINITIONS.—For purposes of this Century will not be enough—there will vide a 50% tax credit for any employer section— still be far too many Americans who contributions into a new pension plan ‘‘(1) ELIGIBLE EMPLOYER.— will spend their retirement years one ‘‘(A) IN GENERAL.—The term ‘eligible em- on behalf of their lower paid employ- ployer’’ means, with respect to any year, an step away from poverty. ees, up to a maximum of 3% of the sal- employer which has no more than— In addition to preserving Social Se- aries of these workers. The credit will ‘‘(i) for purposes of subsection (a)(1), 50 em- curity, we must help Americans better be available for the first 5 years of any ployees, and prepare for their retirement years. new qualified pension plan offered by a ‘‘(ii) for purposes of subsection (a)(2), 100 When the President submitted this small business employing up to 50 employees, budget this year, he proposed dedi- workers. who received at least $5,000 of compensation cating most of our projected surpluses I believe that enactment of the Small from the employer for the preceding year. to create Universal Savings Accounts Employer Pension Start-up Incentive ‘‘(B) 2-YEAR GRACE PERIOD.—An eligible employer who establishes and maintains a for all Americans. I strongly believe Act will help dramatically increase the qualified employer plan for 1 or more years the concept behind the USA proposal number of Americans working for and who fails to be an eligible employer for was a good one. If our projected sur- small businesses that can begin saving any subsequent year shall be treated as an pluses actually materialize, we have an for their retirement. Providing these eligible employer for the 2 years following unprecedented opportunity to plan for tax credits to small businesses, along the last year the employer was an eligible our nation’s future, to make the kinds with the other pension reform pro- employer. of investments that will pay off for posals that are included in S. 741, the ‘‘(C) REQUIREMENT FOR NEW QUALIFIED EM- ourselves and for our children. Helping Pension Coverage and Portability Act I PLOYER PLANS.—Such term shall not include an employer if the employer (or any prede- strengthen our private pension system introduced with Senators GRAHAM and cessor employer) established or maintained a is one of those key investments we GRASSLEY, will go a long way toward qualified employer plan with respect to should be making now, before the wave helping Americans plan for a secure re- which contributions were made, or benefits of retirements begins. tirement in the 21st century. were accrued, for service in the 3 taxable An important place to start is with Mr. President, I ask unanimous con- years ending prior to the first taxable year our small businesses and their employ- sent that the bill be printed in the in which the credit under this section is al- ees. Over 38 million workers in this RECORD. lowed. country work for small businesses, There being no objection, the bill was ‘‘(2) QUALIFIED EMPLOYER CONTRIBUTIONS.— ‘‘(A) IN GENERAL.—The term ‘qualified em- that is, companies with less than 100 ordered to be printed in the RECORD, as ployer contributions’ means, with respect to employees each. And even though al- follows: any taxable year, any employer contribu- most everyone employed by a large S. 1863 tions made on behalf of a qualified employee company has access to a pension plan Be it enacted by the Senate and House of Rep- to a qualified employer plan for a plan year through their employer, only 20% of resentatives of the United States of America in ending with or within the taxable year. small business employees have pension Congress assembled, ‘‘(B) EMPLOYER CONTRIBUTIONS.—The term plans available where they work. This SECTION 1. SHORT TITLE. ‘employer contributions’ shall not include means 31 million working Americans This Act may be cited as the ‘‘Small Em- any elective deferral (within the meaning of have no opportunity to save for their ployer Pension Start-up Incentive Act’’. section 402(g)(3)). ‘‘(3) QUALIFIED EMPLOYEE.—The term retirement through their employers. SEC. 2. CREDIT FOR SMALL EMPLOYER PENSION PLAN CONTRIBUTIONS AND START- ‘qualified employee’ means an individual Small business owners don’t offer UP COSTS. who— plans, not because they don’t want to, (a) IN GENERAL.—Subpart D of part IV of ‘‘(A) is eligible to participate in the quali- but because they simply can’t afford subchapter A of chapter 1 of the Internal fied employer plan to which the employer to. Administrative costs are dispropor- Revenue Code of 1986 (relating to business re- contributions are made, and

VerDate 29-OCT-99 06:51 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00112 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.121 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13983 ‘‘(B) is not a highly compensated employee nities. The $1,000 per month tax credit grams last year. That’s the highest (within the meaning of section 414(q)) for the will allow health care workers to enjoy percentage in the country. year for which the contribution is made. the advantages of rural life without Far too many of our nation’s men- ‘‘(4) QUALIFIED START-UP COSTS.—The term drastic financial sacrifices. But the tally ill persons have ended up in our ‘qualified start-up costs’ means any ordinary prisons and jails. In fact, today, the and necessary expenses of an eligible em- real winners in this bill are the thou- ployer which are paid or incurred in connec- sands of Americans whose access to Los Angeles County Jail is the largest tion with— health care is almost impossible due to mental health care institution in our ‘‘(A) the establishment or maintenance of a lack of doctors and dentists in small country. It treats 3,200 seriously men- a qualified employer plan in which qualified town America. tally ill people every day. The impact employees are eligible to participate, and There are nine counties in the great on law enforcement has been signifi- ‘‘(B) providing educational information to state of Montana which do not have cant. Institutions and agencies de- employees regarding participation in such even one doctor. In these rural set- signed to fight crime have had to spend plan and the benefits of establishing an invaluable time and scarce resources pro- vestment plan. tings, agriculture is often the only em- ‘‘(5) QUALIFIED EMPLOYER PLAN.—The term ployer. Farming and ranching is hard, viding mental health services to pris- ‘qualified employer plan’ has the meaning dangerous work. Serious injuries can oners. In Ohio, nearly 1 in 5 prisoners given such term in section 4972(d). happen in an instant. And while Mon- need special psychiatric services or ac- ‘‘(d) SPECIAL RULES.— tanans have always been known as a commodations. ‘‘(1) AGGREGATION RULES.—All persons heartier breed of people, we get sick Tragically, many mentally ill in- treated as a single employer under sub- too. It is unreasonable to expect the mates could have received proper section (a) or (b) of section 52, or subsection farmer who has had a run-in with an treatment from a variety of private (n) or (o) of section 414, shall be treated as and public sources before they ended up one person. All qualified employer plans of auger or the elderly rancher’s widow to an employer shall be treated as 1 qualified drive two hours or more to get stitched in the prison system. Part of the prob- employer plan. up or to have a crown on a tooth re- lem is a serious lack of coordination ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de- placed. As doctors, dentists, physicians between our local law enforcement and duction shall be allowable under this chapter assistants, mental health providers, social service systems. The interaction for any qualified start-up costs or qualified and nurse practitioners are attracted within law enforcement—between our employer contributions for which a credit is to under-served areas, Montanans and courts and prisons—is even worse. All determined under subsection (a). others in isolated communities will fi- too often, the mentally ill act out their ‘‘(3) ELECTION NOT TO CLAIM CREDIT.—This symptoms on the streets. They are ar- section shall not apply to a taxpayer for any nally enjoy the medical treatment they taxable year if such taxpayer elects to have deserve. rested for minor offenses and wind up this section not apply for such taxable Mr. President, everyone wins with in jail, where appropriate treatment year.’’. this legislation. Rural Montana, rural simply does not exist. They serve their (b) CREDIT ALLOWED AS PART OF GENERAL America, and providers all benefit from sentences or are paroled, but find BUSINESS CREDIT.—Section 38(b) of the Inter- increased access, service and a better themselves right back in the system nal Revenue Code of 1986 (defining current quality of life. I look forward to this after committing further crimes—often year business credit) is amended by striking legislation’s quick passage.∑ more serious—only a short time later. ‘‘plus’’ at the end of paragraph (11), by strik- The Justice Department has found ing the period at the end of paragraph (12) By Mr. DEWINE (for himself and and inserting ‘‘, plus’’, and by adding at the that over 75 percent of mentally ill in- end the following new paragraph: Mr. DOMENICI): mates are repeat offenders. In some ‘‘(13) in the case of an eligible employer (as S. 1865. A bill to provide grants to es- States, the problem is even worse. Cali- defined in section 45D(c)), the small em- tablish demonstration mental health fornia’s Department of Corrections, for ployer pension plan credit determined under courts; to the Committee on the Judi- example, recently reported that 94 per- section 45D(a).’’. ciary. cent of mentally ill parolees returned (c) CONFORMING AMENDMENT.—The table of AMERICA’S LAW ENFORCEMENT AND MENTAL to prison within two years, versus 57 sections for subpart D of part IV of sub- HEALTH PROJECT ACT OF 1999 chapter A of chapter 1 of the Internal Rev- percent of the parolee population at Mr. DEWINE. Mr. President, I rise enue Code of 1986 is amended by adding at ∑ large. the end the following new item: today to introduce ‘‘America’s Law En- Throughout this destructive cycle, forcement and Mental Health Project. law enforcement and corrections spend ‘‘Sec. 45D. Small employer pension plan This bill is designed to address the im- credit.’’. time and money trying to cope with pact that the increased deinstitu- the unique problems posed by these in- (d) EFFECTIVE DATE.—The amendments tionalization of America’s mentally ill dividuals. Certainly, some mentally ill made by this section shall apply to costs has had on our criminal justice system. paid or incurred or contributions made in offenders must be incarcerated because connection with qualified employer plans es- This is a serious problem affecting both of the severity of their crimes. Many tablished after December 31, 1999. the health and safety of our Nation. others who commit very minor offenses Essentially, the situation we have could receive appropriate care early By Mr. BURNS: today in our prisons and jails is the re- on, reducing recidivism and unneces- S. 1864. A bill to amend the Internal sult of over thirty years of cuts in the sary burdens on our police and correc- Revenue Code of 1986 to provide a tax budgets of mental health institutions, tions officials, as well as many men- credit to primary health providers who as well as the outlawing of involuntary tally ill offenders, themselves. establish practices in health profes- commitments. Faced with fewer dol- That’s why, Mr. President, I am in- sional shortage areas; to the Com- lars and greater legal requirements, troducing America’s Law Enforcement mittee on Finance. these mental health care facilities and Mental Health Project (LAMP), to THE HEALTH CARE ACCESS IMPROVEMENT ACT began de-institutionalizing America’s begin to identify—early—those who are ∑ Mr. BURNS. Mr. President, I rise mentally ill in record numbers. Ac- mentally ill within our justice system today to introduce a bill which will cording to one estimate, the number of and to use the power of the court to as- dramatically expand rural America’s persons finding treatment in mental sist them in obtaining the treatment access to modern health care. health facilities plummeted from they need. This will be a step toward The Health Care Access Improvement 560,000 in 1955 to just 100,000 in 1989. making some of the changes necessary Act creates a significant tax incentive, A recent Justice Department study to effectively address the issues sur- which encourages doctors, dentists, revealed that 16 percent of all inmates rounding the mentally ill in our justice physician assistants, licensed mental in America’s State prisons and local system. health providers, and nurse practi- jails today are mentally ill. The Amer- This bill would establish a federal tioners to establish practices in under- ican Jails Association estimates that grant program to help states and local- served areas. Until now, rural areas 600,000 to 700,000 seriously mentally ill ities develop ‘‘Mental Health Courts’’ have not been able to compete with the persons each year are being booked in their jurisdictions. These courts financial draw of urban settings and into local jails alone. In my own home would be specialized courts with sepa- therefore have had trouble attracting State of Ohio, 18 percent of all prison rate dockets. They would hear cases medical professionals to their commu- inmates were in mental health pro- exclusively involving nonviolent of-

VerDate 29-OCT-99 06:58 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00113 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.104 pfrm13 PsN: S04PT1 S13984 CONGRESSIONAL RECORD — SENATE November 4, 1999 fenses committed by mentally ill or re- model and have established their own sure that women and their doctors re- tarded individuals. Fundamentally, Mental Health Courts or seek to do so, ceive accurate information about such Mental Health Courts would enable such as Butler County in my state of implants. state and local courts to offer alter- Ohio. King County, Washington, also S. 1187 native sentences or alternatives to has developed a more expansive Mental At the request of Mr. DORGAN, the prosecution for those offenders who Health Court this past year. Our na- names of the Senator from Texas (Mr. could be served best by mental health tion’s communities are trying des- GRAMM) and the Senator from Illinois services. perately to find the best way to cope (Mr. FITZGERALD) were added as co- To deal with the separate needs of with the problems associated with sponsors of S. 1187, a bill to require the mentally ill offenders, these Mental mental illness. Law enforcement agen- Secretary of the Treasury to mint Health Courts would be staffed by a cies and correctional facilities simply coins in commemoration of the bicen- core group of specialized professionals, do not have the means, nor the exper- tennial of the Lewis and Clark Expedi- including a dedicated judge, pros- tise, to properly treat mentally ill in- tion, and for other purposes. ecutor, public defender and court liai- mates in general. Mental Health Courts S. 1264 son to the mental health service com- offer an alternative. At the request of Mr. KENNEDY, the munity. The courts would promote effi- Mr. President, I urge my colleagues name of the Senator from Connecticut ciency and consistency by centrally to join in support of this legislation.∑ (Mr. DODD) was added as a cosponsor of managing all outstanding cases involv- f S. 1264, a bill to amend the Elementary ing a mentally ill defendant admitted and Secondary Education Act of 1965 to the Mental Health Court. ADDITIONAL COSPONSORS and the National Education Statistics The Mental Health Court judge ulti- S. 115 Act of 1994 to ensure that elementary mately would decide whether or not to At the request of Ms. SNOWE, the and secondary schools prepare girls to hear each case referred to the court. name of the Senator from South Da- compete in the 21st century, and for The Mental Health Court would not kota (Mr. JOHNSON) was added as a co- other purposes. deal with defendants unless they are sponsor of S. 115, a bill to require that S. 1384 deemed mentally ill by a qualified health plans provide coverage for a At the request of Mr. ABRAHAM, the mental professional or the mental minimum hospital stay for names of the Senator from Virginia health court judge. Similarly, partici- mastectomies and lymph node dissec- (Mr. WARNER), the Senator from Penn- pation in the court by the mentally ill tion for the treatment of breast cancer sylvania (Mr. SANTORUM), and the Sen- would be completely voluntary. Once and coverage for secondary consulta- ator from South Dakota (Mr. DASCHLE) the defendant volunteers for the Men- tions. were added as cosponsors of S. 1384, a tal Health Court, however, he or she S. 345 bill to amend the Public Health Serv- would be expected to follow the deci- ice Act to provide for a national folic sion of the court. For instance, in any At the request of Mr. ALLARD, the name of the Senator from Maine (Ms. acid education program to prevent given case, the Mental Health Court birth defects, and for other purposes. judge, attorneys, and health services li- SNOWE) was added as a cosponsor of S. S. 1394 aison may all agree on a plan of treat- 345, a bill to amend the Animal Welfare At the request of Mr. TORRICELLI, the ment as an alternative sentence or in Act to remove the limitation that per- name of the Senator from Iowa (Mr. lieu of prosecution. The defendant mits interstate movement of live birds, HARKIN) was added as a cosponsor of S. must adhere strictly to this court-im- for the purpose of fighting, to States in 1394, a bill to require the Secretary of posed treatment plan. The court must which animal fighting is lawful. the Treasury to mint coins in com- then provide supervision with periodic S. 405 memoration of the U.S.S. New Jersey, review. This way, the court could At the request of Mr. HOLLINGS, the and for other purposes. quickly deal with any failure of the de- name of the Senator from Oklahoma S. 1436 fendant to fulfill the treatment plan (Mr. INHOFE) was added as a cosponsor At the request of Mr. CONRAD, the obligations. In this sense, the Mental of S. 405, a bill to prohibit the oper- name of the Senator from North Da- Heath Court would function similar to ation of civil supersonic transport air- kota (Mr. DORGAN) was added as a co- drug courts. craft to or from airports in the United Mr. President, the idea of Mental States under certain circumstances. sponsor of S. 1436, a bill to amend the Agricultural Marketing Transition Act Health Courts is innovative, but not S. 486 to provide support for United States untested. Broward County, Florida, es- At the request of Mr. GRAMS, his agricultural producers that is equal to tablished the nation’s first Mental name was added as a cosponsor of S. the support provided agricultural pro- Health Court almost two years ago. 486, a bill to provide for the punish- ducers by the European Union, and for This court hears an average of 69 cases ment of methoamphetamine laboratory other purposes. per month. Remarkably, Broward’s operators, provide additional resources Mental Health Court has been able to to combat methamphetamine produc- S. 1516 link over one-third of all its defendants tion, trafficking, and abuse in the At the request of Mr. THOMPSON, the with community health care providers United States, and for other purposes. names of the Senator from Hawaii (Mr. AKAKA), the Senator from Maine (Ms. or private psychiatric help. Notably, S. 514 less than ten percent of all defendants COLLINS), the Senator from Georgia At the request of Mr. COCHRAN, the (Mr. CLELAND), the Senator from Illi- were deemed inappropriate for mental name of the Senator from North Caro- health court and only eight percent re- nois (Mr. DURBIN), the Senator from lina (Mr. EDWARDS) was added as a co- New Jersey (Mr. TORRICELLI), the Sen- fused community health services. sponsor of S. 514, a bill to improve the Although a voluntary system, ator from Ohio (Mr. VOINOVICH), and National Writing Project. Broward has found that many mentally the Senator from North Carolina (Mr. ill persons do choose to have their S. 791 EDWARDS) were added as cosponsors of cases heard in the Mental Health At the request of Mr. ROBB, his name S. 1516, a bill to amend title III of the Court. These defendants don’t always was added as a cosponsor of S. 791, a Stewart B. McKinney Homeless Assist- know what treatment options are bill to amend the Small Business Act ance Act (42 U.S.C. 11331 et seq.) to re- available to them before they fall into with respect to the women’s business authorize the Federal Emergency Man- the hands of the criminal justice sys- center program. agement Food and Shelter Program, tem. A judicial program offering the S. 1075 and for other purposes. possibility of effective treatment— At the request of Mrs. BOXER, the S. 1539 rather than jail time—gives a measure name of the Senator from Utah (Mr. At the request of Mr. DODD, the of hope and a chance for rehabilitation BENNETT) was added as a cosponsor of names of the Senator from Maine (Ms. to defendants. S. 1075, a bill to promote research to SNOWE) and the Senator from Massa- Other jurisdictions across America identify and evaluate the health effects chusetts (Mr. KERRY) were added as co- have studied the Broward County of silicone breast implants, and to in- sponsors of S. 1539, a bill to provide for

VerDate 29-OCT-99 06:58 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00114 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.123 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13985 the acquisition, construction, and im- S. 1825 United States, makes the final decision to provement of child care facilities or At the request of Mr. ROCKEFELLER, order a deployment of those forces into equipment, and for other purposes. the name of the Senator from South harm’s way; Whereas the President, in making that de- Carolina (Mr. HOLLINGS) was added as a S. 1608 cision, relies upon the recommendations of At the request of Mr. CRAIG, the cosponsor of S. 1825, a bill to empower the civilian and military leaders tasked by name of the Senator from Texas (Mrs. telephone consumers, and for other law with the responsibility of training those HUTCHISON) was added as a cosponsor of purposes. forces, including the Commander of the Sec- S. 1608, a bill to provide annual pay- SENATE CONCURRENT RESOLUTION 60 ond Fleet of the Navy and the Commander of ments to the States and counties from At the request of Mr. FEINGOLD, the the Marine Forces in the Atlantic; National Forest System lands managed name of the Senator from Iowa (Mr. Whereas the Atlantic Fleet Weapons Train- ing Facility has been since World War II, and by the Forest Service, and the revested HARKIN) was added as a cosponsor of continues to be, an essential part of the Oregon and California Railroad and re- Senate Concurrent Resolution 60, a training infrastructure that is necessary to conveyed Coos Bay Wagon Road grant concurrent resolution expressing the ensure that maritime forces deploying from lands managed predominately by the sense of Congress that a commemora- the east coast of the United States are pre- Bureau of Land Management, for use tive postage stamp should be issued in pared and ready to execute their assigned by the counties in which the lands are honor of the U.S.S. Wisconsin and all missions; situated for the benefit of the public those who served aboard her. Whereas, according to the testimony of the Chairman of the Joint Chiefs of Staff, the schools, roads, emergency and other SENATE RESOLUTION 118 Chief of Naval Operations, and the Com- public purposes; to encourage and pro- At the request of Mr. REID, the name mandant of the Marine Corps, the Island of vide new mechanism for cooperation of the Senator from Maryland (Mr. Vieques is a vital part of the Atlantic Fleet between counties and the Forest Serv- SARBANES) was added as a cosponsor of Weapons Training Facility and makes an es- ice and the Bureau of Land Manage- Senate Resolution 118, a resolution des- sential contribution to the national security ment to make necessary investments ignating December 12, 1999, as ‘‘Na- of the United States by providing integrated in federal lands, and reaffirm the posi- live-fire combined arms training opportuni- tional Children’s Memorial Day.’’ ties to Navy and Marine Corps forces deploy- tive connection between Federal Lands SENATE RESOLUTION 128 ing from the east coast of the United States; counties and Federal Lands; and for At the request of Mr. COCHRAN, the Whereas, according to testimony before other purposes. names of the Senator from Delaware the Committee on Armed Services of the S. 1710 (Mr. BIDEN) and the Senator from Illi- Senate and the report of the Special Panel on Military Operations on Vieques, a suit- At the request of Mr. HARKIN, the nois (Mr. DURBIN) were added as co- name of the Senator from South Da- able alternative to Vieques cannot now be sponsors of Senate Resolution 128, a identified; kota (Mr. DASCHLE) was added as a co- resolution designating March 2000, as Whereas, during the course of its hearings sponsor of S. 1710, a bill to require the ‘‘Arts Education Month.’’ on September 22 and October 19, 1999, the Secretary of the Treasury to mint SENATE RESOLUTION 204 Committee on Armed Services of the Senate coins in conjunction with the minting At the request of Mr. HATCH, the acknowledged and expressed its sympathy of coins by the Republic of Iceland in name of the Senator from Iowa (Mr. for the tragic death and injuries that re- commemoration of the millennium of sulted from the training accident that oc- GRASSLEY) was added as a cosponsor of curred at Vieques in April 1999; the discovery of the New World by Leif Senate Resolution 204, a resolution des- Ericson. Whereas the Navy has failed to take those ignating the week beginning November actions necessary to develop sound relations S. 1776 21, 1999, and the week beginning on No- with the people of Puerto Rico; At the request of Mr. CRAIG, the vember 19, 2000, as ‘‘National Family Whereas the Navy should implement fully name of the Senator from Idaho (Mr. Week’’, and for other purposes. the terms of the 1983 Memorandum of Under- standing between the Navy and the Common- CRAPO) was added as a cosponsor of S. SENATE RESOLUTION 217 1776, a bill to amend the Energy Policy wealth of Puerto Rico regarding Vieques and At the request of Mr. HUTCHINSON, Act of 1992 to revise the energy policies work to increase its efforts to improve the the name of the Senator from Maine economic conditions for and the safety of the of the United States in order to reduce (Ms. COLLINS) was added as a cosponsor people on Vieques; greenhouse gas emissions, advance of Senate Resolution 217, a resolution Whereas in February 2000, the U.S.S. Ei- global climate science, promote tech- relating to the freedom of belief, ex- senhower Battle Group and the 24th Marine nology development, and increase cit- pression, and association in the Peo- Expeditionary Unit are scheduled to deploy izen awareness, and for other purposes. ple’s Republic of China. to the Mediterranean Sea and the Persian S. 1777 Gulf where the battle group and expedi- f tionary unit will face the possibility of com- At the request of Mr. CRAIG, the SENATE RESOLUTION 220—EX- bat, as experienced by predecessor deploying name of the Senator from Idaho (Mr. units, during operations over Iraq and during CRAPO) was added as a cosponsor of S. PRESSING THE SENSE OF THE other unexpected contingencies; 1777, a bill to amend the Internal Rev- SENATE REGARDING THE FEB- Whereas in a September 22, 1999, letter to enue Code of 1986 to provide incentives RUARY 2000 DEPLOYMENT OF the Committee on Armed Services of the for the voluntary reduction of green- THE U.S.S. EISENHOWER BATTLE Senate, the President stated that the rig- house gas emissions and to advance GROUP AND THE 24TH MARINE orous, realistic training undergone by mili- global climate science and technology EXPEDITIONARY UNIT TO AN tary forces ‘‘is essential for success in com- development. AREA OF POTENTIAL HOS- bat and for protecting our national secu- TILITIES AND THE ESSENTIAL rity’’; S. 1795 Whereas in that letter the President also At the request of Mr. CRAPO, the REQUIREMENTS THAT THE BAT- stated that he would not permit Navy or Ma- name of the Senator from Arkansas TLE GROUP AND EXPEDI- rine Corps forces to deploy ‘‘unless they are (Mr. HUTCHINSON) was added as a co- TIONARY UNIT HAVE RECEIVED at a satisfactory level of combat readiness’’; sponsor of S. 1795, a bill to require that THE ESSENTIAL TRAINING Whereas Richard Danzig, the Secretary of before issuing an order, the President NEEDED TO CERTIFY THE the Navy, recently testified before the Com- shall cite the authority for the order, WARFIGHTING PROFICIENCY OF mittee on Armed Services of the Senate that ‘‘only by providing this preparation can we conduct a cost benefit analysis, provide THE FORCES COMPRISING THE BATTLE GROUP AND EXPEDI- fairly ask our service members to put their for public comment, and for other pur- lives at risk’’; poses. TIONARY UNIT Whereas according to the testimony of the S. 1796 Mr. INHOFE (for himself, Mr. WAR- Chairman of the Joint Chiefs of Staff, the At the request of Mr. MACK, the NER, Mr. ROBERTS, and Mr. LOTT) sub- Chief of Naval Operations, and the Com- names of the Senator from Idaho (Mr. mitted the following resolution; which mandant of the Marine Corps, Vieques provides integrated live-fire training ‘‘critical CRAIG) and the Senator from Louisiana was referred to the Committee on Armed Services: to our readiness’’, and the failure to provide (Mr. BREAUX) were added as cosponsors for adequate live-fire training for our naval of S. 1796, a bill to modify the enforce- S. RES. 220 forces before deployment will place those ment of certain anti-terrorism judge- Whereas the President, as Commander-in- forces at unacceptably high risk during de- ments, and for other purposes. Chief of all of the Armed Forces of the ployment;

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00115 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.112 pfrm13 PsN: S04PT1 S13986 CONGRESSIONAL RECORD — SENATE November 4, 1999 Whereas Admiral Johnson, the Chief of insert a period, quotation marks, and a sec- plies effectively are necessary to the devel- Naval Operations, and General Jones, the ond period. opment of a viable Reservation economy and Commandant of the Marine Corps, recently On page 31, strike lines 1 through 8. to implementation of the Chippewa Cree- testified before the Committee on Armed On page 33, line 13, insert ‘‘and’’ after the Montana Water Rights Compact; Services of the Senate that without the abil- semicolon. (6) the Rocky Boy’s Reservation is located ity to train on Vieques, the U.S.S. Eisen- On page 33, line 15, strike ‘‘; and’’ and in- in a water-short area of Montana and it is hower Battle Group and the 24th Marine Ex- sert a period, quotation marks, and a second appropriate that the Act provide funding for peditionary Unit scheduled for deployment period. the development of additional water sup- in February 2000 would not be ready for such On page 33, strike lines 16 through 20. plies, including domestic water, to meet the deployment ‘‘without greatly increasing the Beginning on page 38, line 22, strike ‘‘or re- needs of the Chippewa Cree Tribe; risk to those men and women who we ask to quire’’ and all that follows through ‘‘trans- (7) proceedings to determine the full extent go in harm’s way’’; ferred’’ on line 2 of page 39. of the water rights of the Chippewa Cree Whereas Vice Admiral Murphy, Com- On page 39, line 13, after the period, insert Tribe are currently pending before the Mon- mander of the Sixth Fleet of the Navy, re- ending quotation marks and a final period. tana Water Court as a part of In the Matter cently testified before the Committee on Beginning on page 39, strike line 14 and all of the Adjudication of All Rights to the Use of Armed Services of the Senate that the loss of that follows through line 20 on page 40. Water, Both Surface and Underground, within training on Vieques would ‘‘cost American On page 42, line 5, after ‘‘denaturalize’’, in- the State of Montana; lives’’; sert ‘‘(as otherwise authorized by law)’’. (8) recognizing that final resolution of the Whereas the Navy is currently prevented f general stream adjudication will take many as a consequence of unrestrained civil dis- years and entail great expense to all parties, obedience from using the training facilities NATIVE AMERICAN HOUSING AS- prolong uncertainty as to the availability of on Vieques which are required to accomplish SISTANCE AND SELF-DETER- water supplies, and seriously impair the the training necessary to achieve a satisfac- MINATION AMENDMENTS OF 1999 long-term economic planning and develop- tory level of combat readiness; and ment of all parties, the Chippewa Cree Tribe Whereas while the Department of Defense and the State of Montana entered into the is trying to work with the Government of INOUYE AMENDMENT NO. 2511 Compact on April 14, 1997; and Puerto Rico on a permanent solution to re- (9) the allocation of water resources from Mr. GRASSLEY (for Mr. INOUYE) pro- solve the current training crisis, the Depart- the Tiber Reservoir to the Chippewa Cree ment of the Navy has an immediate require- posed an amendment to the bill (S. 225) Tribe under this Act is uniquely suited to ment to gain access to these facilities for 13 to provide housing assistance to Native the geographic, social, and economic charac- days in December to accomplish the critical Hawaiians; as follows: teristics of the area and situation involved. integrated training necessary to achieve a On page 98, strike line 23 and all that fol- SEC. 3. PURPOSES. satisfactory level of combat readiness for the lows through page 99, line 8. The purposes of this Act are as follows: U.S.S. Eisenhower Battle Group and the 24th On page 118, line 20, strike ‘‘1999’’ and in- (1) To achieve a fair, equitable, and final Marine Expeditionary Unit: Now, therefore, sert ‘‘2000’’. settlement of all claims to water rights in be it On page 118, line 23, strike ‘‘October 1, the State of Montana for— Resolved, That it is the sense of the Senate 1999’’ and insert ‘‘the date of enactment of (A) the Chippewa Cree Tribe; and that— the Native American Housing Assistance and (B) the United States for the benefit of the (1) the Secretary of the Navy should con- Self-Determination Amendments of 1999’’. Chippewa Cree Tribe. (2) To approve, ratify, and confirm, as duct the 13 days of pre-deployment training f which is required to be performed on the Is- modified in this Act, the Chippewa Cree- land of Vieques to ensure the U.S.S. Eisen- CHIPPEWA CREE TRIBE OF THE Montana Water Rights Compact entered into hower Battle Group and the 24th Marine Ex- ROCKY BOY’S RESERVATION IN- by the Chippewa Cree Tribe of the Rocky peditionary Unit are free of serious defi- Boy’s Reservation and the State of Montana DIAN RESERVED WATER RIGHTS on April 14, 1997, and to provide funding and ciencies in major warfare areas, thereby re- SETTLEMENT ACT OF 1999 ducing the risk to those men and women who other authorization necessary for the imple- we ask to go in harm’s way; and mentation of the Compact. (3) To authorize the Secretary of the Inte- (2) the President should not deploy the BURNS (AND BAUCUS) U.S.S. Eisenhower Battle Group or the 24th rior to execute and implement the Compact AMENDMENT NO. 2512 referred to in paragraph (2) and to take such Marine Expeditionary Unit until— other actions as are necessary to implement (A) the President, in consultation with the Mr. GRASSLEY (for Mr. BURNS and the Compact in a manner consistent with Secretary of Defense, the Secretary of the Mr. BAUCUS) proposed an amendment this Act. Navy, the Chief of Naval Operations, and the to the bill (S. 438) to provide for the (4) To authorize Federal feasibility studies Commandant of the Marine Corps, reviews settlement of the water rights claims designed to identify and analyze potential the certifications regarding the readiness of of the Chippewa Cree Tribe of the mechanisms to enhance, through conserva- the battle group and the expeditionary unit tion or otherwise, water supplies in North made by the Commander of the Second Fleet Rocky Boy’s Reservation, and for other Central Montana, including mechanisms to of the Navy and the Commander of the Ma- purposes; as follows: import domestic water supplies for the fu- Strike all after the enacting clause and in- rine Forces in the Atlantic, as the case may ture growth of the Rocky Boy’s Indian Res- sert the following: be; and ervation. (B) the President determines and so noti- SECTION. 1. SHORT TITLE. (5) To authorize certain projects on the fies Congress that the battle group and the This Act may be cited as the ‘‘Chippewa Rocky Boy’s Indian Reservation, Montana, expeditionary unit are free of serious defi- Cree Tribe of The Rocky Boy’s Reservation in order to implement the Compact. ciencies in major warfare areas. Indian Reserved Water Rights Settlement (6) To authorize certain modifications to f and Water Supply Enhancement Act of 1999’’. the purposes and operation of the Bureau of AMENDMENTS SUBMITTED SEC. 2. FINDINGS. Reclamation’s Tiber Dam and Lake Elwell Congress finds that— on the Marias River in Montana in order to (1) in fulfillment of its trust responsibility provide the Tribe with an allocation of water DENYING SAFE HAVENS TO INTER- to Indian tribes and to promote tribal sov- from Tiber Reservoir. ereignty and economic self-sufficiency, it is (7) To authorize the appropriation of funds NATIONAL AND WAR CRIMINALS the policy of the United States to settle the necessary for the implementation of the ACT OF 1999 water rights claims of the tribes without Compact. lengthy and costly litigation; SEC. 4. DEFINITIONS. (2) the Rocky Boy’s Reservation was estab- In this Act: LEAHY (AND HATCH) AMENDMENT lished as a homeland for the Chippewa Cree (1) ACT.—The term ‘‘Act’’ means the ‘‘Chip- NO. 2510 Tribe; pewa Cree Tribe of The Rocky Boy’s Res- Mr. GRASSLEY (for Mr. LEAHY (for (3) adequate water for the Chippewa Cree ervation Indian Reserved Water Rights Set- Tribe of the Rocky Boy’s Reservation is im- tlement and Water Supply Enhancement Act himself and Mr. HATCH)) proposed an portant to a permanent, sustainable, and of 1999’’. amendment to the bill (S. 1754) entitled sovereign homeland for the Tribe and its (2) COMPACT.—The term ‘‘Compact’’ means the ‘‘Denying Safe Havens to members; the water rights compact between the Chip- Internatinoal and War Criminals Act of (4) the sovereignty of the Chippewa Cree pewa Cree Tribe of the Rocky Boy’s Reserva- 1999’’; as follows: Tribe and the economy of the Reservation tion and the State of Montana contained in On page 30, lines 20 and 21, strike ‘‘WITH RE- depend on the development of the water re- section 85–20–601 of the Montana Code Anno- SPECT TO IMMIGRATION LAWS’’. sources of the Reservation; tated (1997). On page 30, lines 24 and 25, strike ‘‘or pro- (5) the planning, design, and construction (3) FINAL.—The term ‘‘final’’ with ref- ceedings under the immigration laws.’’ and of the facilities needed to utilize water sup- erence to approval of the decree in section

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00116 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.124 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13987 101(b) means completion of any direct appeal (a), (b), and (c) of section 208 of the Depart- TITLE I—CHIPPEWA CREE TRIBE OF THE to the Montana Supreme Court of a final de- ment of Justice Appropriation Act, 1953 (43 ROCKY BOY’S RESERVATION INDIAN RE- cree by the Water Court pursuant to section U.S.C. 666), nothing in this Act may be con- SERVED WATER RIGHTS SETTLEMENT 85–2–235 of the Montana Code Annotated strued to waive the sovereign immunity of SEC. 101. RATIFICATION OF COMPACT AND (1997), or to the Federal Court of Appeals, in- the United States. ENTRY OF DECREE. cluding the expiration of the time in which a (c) TRIBAL RELEASE OF CLAIMS AGAINST THE (a) WATER RIGHTS COMPACT APPROVED.— petition for certiorari may be filed in the UNITED STATES.— Except as modified by this Act, and to the United States Supreme Court, denial of such (1) IN GENERAL.—Pursuant to Tribal Reso- extent the Compact does not conflict with a petition, or the issuance of the Supreme lution No. 40–98, and in exchange for benefits this Act— Court’s mandate, whichever occurs last. under this Act, the Tribe shall, on the date (1) the Compact, entered into by the Chip- (4) FUND.—The term ‘‘Fund’’ means the of enactment of this Act, execute a waiver pewa Cree Tribe of the Rocky Boy’s Reserva- Chippewa Cree Indian Reserved Water Rights and release of the claims described in para- tion and the State of Montana on April 14, Settlement Fund established under section graph (2) against the United States, the va- 1997, is hereby approved, ratified, and con- 104. lidity of which are not recognized by the firmed; and (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ United States, except that— (2) the Secretary shall— has the meaning given that term in section (A) the waiver and release of claims shall (A) execute and implement the Compact 101(2) of the Federally Recognized Indian not become effective until the appropriation together with any amendments agreed to by Tribe List Act of 1994 (25 U.S.C. 479a(2)). of the funds authorized in section 105, the the parties or necessary to bring the Com- (6) MR&I FEASIBILITY STUDY.—The term water allocation in section 201, and the ap- pact into conformity with this Act; and ‘‘MR&I feasibility study’’ means a munic- propriation of funds for the MR&I feasibility (B) take such other actions as are nec- ipal, rural, and industrial, domestic, and in- study authorized in section 204 have been essary to implement the Compact. cidental drought relief feasibility study de- completed and the decree has become final in (b) APPROVAL OF DECREE.— scribed in section 202. accordance with the requirements of section (1) IN GENERAL.—Not later than 180 days (7) MISSOURI RIVER SYSTEM.—The term 101(b); and after the date of enactment of this Act, the ‘‘Missouri River System’’ means the (B) in the event that the approval, ratifica- United States, the Tribe, or the State of mainstem of the Missouri River and its trib- tion, and confirmation of the Compact by Montana shall petition the Montana Water utaries, including the Marias River. the United States becomes null and void Court, individually or jointly, to enter and (8) RECLAMATION LAW.—The term ‘‘Rec- under section 101(b), the waiver and release approve the decree agreed to by the United lamation Law’’ has the meaning given the of claims shall become null and void. States, the Tribe, and the State of Montana term ‘‘reclamation law’’ in section 4 of the (2) CLAIMS DESCRIBED.—The claims referred attached as Appendix 1 to the Compact, or Act of December 5, 1924 (43 Stat. 701, chapter to in paragraph (1) are as follows: 4; 43 U.S.C. 371). any amended version thereof agreed to by (A) Any and all claims to water rights (in- the United States, the Tribe, and the State (9) ROCKY BOY’S RESERVATION; RESERVA- cluding water rights in surface water, ground of Montana. TION.—The term ‘‘Rocky Boy’s Reservation’’ water, and effluent), claims for injuries to or ‘‘Reservation’’ means the Rocky Boy’s (2) RESORT TO THE FEDERAL DISTRICT water rights, claims for loss or deprivation COURT.—Under the circumstances set forth in Reservation of the Chippewa Cree Tribe in of use of water rights, and claims for failure Montana. Article VII.B.4 of the Compact, 1 or more to acquire or develop water rights for lands parties may file an appropriate motion (as (10) SECRETARY.—The term ‘‘Secretary’’ of the Tribe from time immemorial to the provided in that article) in the United States means the Secretary of the Interior, or his or date of ratification of the Compact by Con- her duly authorized representative. district court of appropriate jurisdiction. gress. (3) EFFECT OF FAILURE OF APPROVAL TO BE- (11) TOWE PONDS.—The term ‘‘Towe Ponds’’ (B) Any and all claims arising out of the COME FINAL.—In the event the approval by means the reservoir or reservoirs referred to negotiation of the Compact and the settle- as ‘‘Stoneman Reservoir’’ in the Compact. the appropriate court, including any direct ment authorized by this Act. appeal, does not become final within 3 years (12) TRIBAL COMPACT ADMINISTRATION.—The (3) SETOFFS.—In the event the waiver and after the filing of the decree, or the decree is term ‘‘Tribal Compact Administration’’ release do not become effective as set forth means the activities assumed by the Tribe approved but is subsequently set aside by the in paragraph (1)— appropriate court— for implementation of the Compact as set (A) the United States shall be entitled to forth in Article IV of the Compact. (A) the approval, ratification, and con- setoff against any claim for damages as- firmation of the Compact by the United (13) TRIBAL WATER CODE.—The term ‘‘tribal serted by the Tribe against the United States shall be null and void; and water code’’ means a water code adopted by States, any funds transferred to the Tribe the Tribe, as provided in the Compact. (B) except as provided in subsections (a) pursuant to section 104, and any interest ac- and (c)(3) of section 5 and section 105(e)(1), (14) TRIBAL WATER RIGHT.— crued thereon up to the date of setoff; and this Act shall be of no further force and ef- (A) IN GENERAL.—The term ‘‘Tribal Water (B) the United States shall retain any fect. Right’’ means the water right set forth in other claims or defenses not waived in this section 85–20–601 of the Montana Code Anno- SEC. 102. USE AND TRANSFER OF THE TRIBAL Act or in the Compact as modified by this WATER RIGHT. tated (1997) and includes the water allocation Act. (a) ADMINISTRATION AND ENFORCEMENT.—As set forth in Title II of this Act. (d) OTHER TRIBES NOT ADVERSELY AF- provided in the Compact, until the adoption (B) RULE OF CONSTRUCTION.—The definition FECTED.—Nothing in this Act shall be con- of the term ‘‘Tribal Water Right’’ under this strued to quantify or otherwise adversely af- and approval of a tribal water code by the paragraph and the treatment of that right fect the land and water rights, or claims or Tribe, the Secretary shall administer and en- under this Act shall not be construed or in- entitlements to land or water of an Indian force the Tribal Water Right. terpreted as a precedent for the litigation of tribe other than the Chippewa Cree Tribe. (b) TRIBAL MEMBER ENTITLEMENT.— reserved water rights or the interpretation (e) ENVIRONMENTAL COMPLIANCE.—In imple- (1) IN GENERAL.—Any entitlement to Fed- or administration of future compacts be- menting the Compact, the Secretary shall eral Indian reserved water of any tribal tween the United States and the State of comply with all aspects of the National En- member shall be satisfied solely from the Montana or any other State. vironmental Policy Act of 1969 (42 U.S.C. 4321 water secured to the Tribe by the Compact (15) TRIBE.—The term ‘‘Tribe’’ means the et seq.), the Endangered Species Act of 1973 and shall be governed by the terms and con- Chippewa Cree Tribe of the Rocky Boy’s Res- (16 U.S.C. 1531 et seq.), and all other applica- ditions of the Compact. ervation and all officers, agents, and depart- ble environmental Acts and regulations. (2) ADMINISTRATION.—An entitlement de- ments thereof. (f) EXECUTION OF COMPACT.—The execution scribed in paragraph (1) shall be adminis- (16) WATER DEVELOPMENT.—The term of the Compact by the Secretary as provided tered by the Tribe pursuant to a tribal water ‘‘water development’’ includes all activities for in this Act shall not constitute a major code developed and adopted pursuant to Arti- that involve the use of water or modification Federal action under the National Environ- cle IV.A.2 of the Compact, or by the Sec- of water courses or water bodies in any way. mental Policy Act (42 U.S.C. 4321 et seq.). retary pending the adoption and approval of SEC. 5. MISCELLANEOUS PROVISIONS. The Secretary is directed to carry out all the tribal water code. (c) TEMPORARY TRANSFER OF TRIBAL WATER (a) NONEXERCISE OF TRIBE’S RIGHTS.—Pur- necessary environmental compliance re- suant to Tribal Resolution No. 40–98, and in quired by Federal law in implementing the RIGHT.—The Tribe may, with the approval of exchange for benefits under this Act, the Compact. the Secretary and the approval of the State Tribe shall not exercise the rights set forth (g) CONGRESSIONAL INTENT.—Nothing in of Montana pursuant to Article IV.A.4 of the in Article VII.A.3 of the Compact, except this Act shall be construed to prohibit the Compact, transfer any portion of the Tribal that in the event that the approval, ratifica- Tribe from seeking additional authorization water right for use off the Reservation by tion, and confirmation of the Compact by or appropriation of funds for tribal programs service contract, lease, exchange, or other the United States becomes null and void or purposes. agreement. No service contract, lease, ex- under section 101(b), the Tribe shall have the (h) ACT NOT PRECEDENTIAL.—Nothing in change, or other agreement entered into right to exercise the rights set forth in Arti- this Act shall be construed or interpreted as under this subsection may permanently al- cle VII.A.3 of the Compact. a precedent for the litigation of reserved ienate any portion of the Tribal water right. (b) WAIVER OF SOVEREIGN IMMUNITY.—Ex- water rights or the interpretation or admin- The enactment of this subsection shall concept to the extent provided in subsections istration of future water settlement Acts. stitute a plenary exercise of the powers set

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00117 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.127 pfrm13 PsN: S04PT1 S13988 CONGRESSIONAL RECORD — SENATE November 4, 1999 forth in Article I, section 8(3) of the United Fund and deposit it in a mutually agreed United States for Indian tribes’’, approved States Constitution and is statutory law of upon private financial institution. That February 12, 1929 (25 U.S.C. 161a); and the United States within the meaning of Ar- withdrawal shall be made pursuant to the (iii) the first section of the Act entitled ticle IV.A.4.b.(3) of the Compact. American Indian Trust Fund Management ‘‘An Act to authorize the deposit and invest- SEC. 103. ON-RESERVATION WATER RESOURCES Reform Act of 1994 (25 U.S.C. 4001 et seq.). ment of Indian funds’’, approved June 24, 1938 DEVELOPMENT. (5) ACCOUNTS.—The Secretary of the Inte- (25 U.S.C.162a). (a) WATER DEVELOPMENT PROJECTS.—The rior shall establish the following accounts in (B) CREDITING OF AMOUNTS TO THE FUND.— Secretary, acting through the Bureau of Rec- the Fund and shall allocate appropriations The interest on, and the proceeds from the lamation, is authorized and directed to plan, to the various accounts as required in this sale or redemption of, any obligations of the design, and construct, or to provide, pursu- Act: United States held in the Fund shall be cred- ant to subsection (b), for the planning, de- (A) The Tribal Compact Administration ited to and form part of the Fund. The Sec- sign, and construction of the following water Account. retary of the Treasury shall credit to each of development projects on the Rocky Boy’s (B) The Economic Development Account. the accounts contained in the Fund a propor- Reservation: (C) The Future Water Supply Facilities Ac- tionate amount of that interest and pro- (1) Bonneau Dam and Reservoir Enlarge- count. ceeds. ment. (b) FUND MANAGEMENT.— (2) CERTAIN WITHDRAWN FUNDS.— (2) East Fork of Beaver Creek Dam Repair (1) IN GENERAL.— (A) IN GENERAL.—Amounts withdrawn from and Enlargement. (A) AMOUNTS IN FUND.—The Fund shall con- the Fund and deposited in a private financial (3) Brown’s Dam Enlargement. sist of such amounts as are appropriated to institution pursuant to a withdrawal plan (4) Towe Ponds’ Enlargement. the Fund and allocated to the accounts of approved by the Secretary under the Amer- (5) Such other water development projects the Fund by the Secretary as provided for in ican Indian Trust Fund Management Reform as the Tribe shall from time to time consider this Act and in accordance with the author- Act of 1994 (25 U.S.C. 4001 et seq.) shall be inappropriate. izations for appropriations in paragraphs (1), vested by an appropriate official under that (b) IMPLEMENTATION AGREEMENT.—The Sec- (2), and (3) of section 105(a), together with all plan. interest that accrues in the Fund. retary, at the request of the Tribe, shall (B) DEPOSIT OF INTEREST AND PROCEEDS.— enter into an agreement, or, if appropriate, (B) MANAGEMENT BY SECRETARY.—The Sec- The interest on, and the proceeds from the renegotiate an existing agreement, with the retary shall manage the Fund, make invest- sale or redemption of, any obligations held Tribe to implement the provisions of this ments from the Fund, and make available under this paragraph shall be deposited in funds from the Fund for distribution to the Act through the Tribe’s annual funding the private financial institution referred to Tribe in a manner consistent with the Amer- agreement entered into under the self-gov- in subparagraph (A) in the fund established ican Indian Trust Fund Management Reform ernance program under title IV of the Indian pursuant to the withdrawal plan referred to Act of 1994 (25 U.S.C. 4001 et seq.). Self-Determination and Education Assist- in that subparagraph. The appropriate offi- (2) TRIBAL MANAGEMENT.— ance Act (25 U.S.C. 458aa et seq.) by which cial shall credit to each of the accounts con- (A) IN GENERAL.—If the Tribe exercises its the Tribe shall plan, design, and construct tained in that fund a proportionate amount any or all of the projects authorized by this right pursuant to subsection (a)(4) to with- of that interest and proceeds. section. draw the Fund and deposit it in a private fi- (e) AGREEMENT REGARDING FUND EXPENDI- (c) BUREAU OF RECLAMATION PROJECT AD- nancial institution, except as provided in the TURES.—If the Tribe does not exercise its MINISTRATION.— withdrawal plan, neither the Secretary nor right under subsection (a)(4) to withdraw the (1) IN GENERAL.—Congress finds that the the Secretary of the Treasury shall retain funds in the Fund and transfer those funds to Secretary, through the Bureau of Reclama- any oversight over or liability for the ac- a private financial institution, the Secretary tion, has entered into an agreement with the counting, disbursement, or investment of the shall enter into an agreement with the Tribe Tribe, pursuant to title IV of the Indian Self- funds. providing for appropriate terms and condi- Determination and Education Assistance Act (B) WITHDRAWAL PLAN.—The withdrawal tions, if any, on expenditures from the Fund (25 U.S.C. 458aa et seq.)— plan referred to in subparagraph (A) shall in addition to the plans set forth in para- (A) defining and limiting the role of the provide for— graphs (2) and (3) of subsection (c). Bureau of Reclamation in its administration (i) the creation of accounts and allocation (f) PER CAPITA DISTRIBUTIONS PROHIB- of the projects authorized in subsection (a); to accounts in a fund established under the ITED.—No part of the Fund shall be distrib- (B) establishing the standards upon which plan in a manner consistent with subsection uted on a per capita basis to members of the the projects will be constructed; and (a); and Tribe. (C) for other purposes necessary to imple- (ii) the appropriate terms and conditions, ment this section. if any, on expenditures from the fund (in ad- SEC. 105. AUTHORIZATION OF APPROPRIATIONS. (2) AGREEMENT.—The agreement referred to dition to the requirements of the plans set (a) CHIPPEWA CREE FUND.—There is author- in paragraph (1) shall become effective when forth in paragraphs (2) and (3) of subsection ized to be appropriated for the Fund, the Tribe exercises its right under subsection (c)). $21,000,000 to be allocated by the Secretary as (b). (c) USE OF FUND.—The Tribe shall use the follows: SEC. 104. CHIPPEWA CREE INDIAN RESERVED Fund to fulfill the purposes of this Act, sub- (1) TRIBAL COMPACT ADMINISTRATION AC- WATER RIGHTS SETTLEMENT TRUST ject to the following restrictions on expendi- COUNT.—For Tribal Compact Administration FUND. tures: assumed by the Tribe under the Compact and (a) ESTABLISHMENT OF TRUST FUND.— (1) Except for $400,000 necessary for capital this Act, $3,000,000 is authorized to be appro- (1) IN GENERAL.— expenditures in connection with Tribal Com- priated for fiscal year 2000. (A) ESTABLISHMENT.—There is hereby es- pact Administration, only interest accrued (2) ECONOMIC DEVELOPMENT ACCOUNT.—For tablished in the Treasury of the United on the Tribal Compact Administration Ac- tribal economic development, $3,000,000 is au- States a trust fund for the Chippewa Cree count referred to in subsection (a)(5)(A) shall thorized to be appropriated for fiscal year Tribe of the Rocky Boy’s Reservation to be be available to satisfy the Tribe’s obliga- 2000. known as the ‘‘Chippewa Cree Indian Re- tions for Tribal Compact Administration (3) FUTURE WATER SUPPLY FACILITIES AC- served Water Rights Settlement Trust under the provisions of the Compact. COUNT.—For the total Federal contribution Fund’’. (2) Both principal and accrued interest on to the planning, design, construction, oper- (B) AVAILABILITY OF AMOUNTS IN FUND.— the Economic Development Account referred ation, maintenance, and rehabilitation of a (i) IN GENERAL.—Amounts in the Fund to in subsection (a)(5)(B) shall be available future water supply system for the Reserva- shall be available to the Secretary for man- to the Tribe for expenditure pursuant to an tion, there are authorized to be agement and investment on behalf of the economic development plan approved by the appropriated— Tribe and distribution to the Tribe in ac- Secretary. (A) $2,000,000 for fiscal year 2000; cordance with this Act. (3) Both principal and accrued interest on (B) $8,000,000 for fiscal year 2001; and (ii) AVAILABILITY.—Funds made available the Future Water Supply Facilities Account (C) $5,000,000 for fiscal year 2002. from the Fund under this section shall be referred to in subsection (a)(5)(C) shall be (b) ON-RESERVATION WATER DEVELOP- available without fiscal year limitation. available to the Tribe for expenditure pursu- MENT.— (2) MANAGEMENT OF FUND.—The Secretary ant to a water supply plan approved by the (1) IN GENERAL.—There are authorized to be shall deposit and manage the principal and Secretary. appropriated to the Department of the Inte- interest in the Fund in a manner consistent (d) INVESTMENT OF FUND.— rior, for the Bureau of Reclamation, for the with subsection (b) and other applicable pro- (1) IN GENERAL.— construction of the on-Reservation water de- visions of this Act. (A) APPLICABLE LAWS.—The Secretary shall velopment projects authorized by section (3) CONTENTS OF FUND.—The Fund shall invest amounts in the Fund in accordance 103— consist of the amounts authorized to be ap- with— (A) $13,000,000 for fiscal year 2000, for the propriated to the Fund under section 105(a) (i) the Act of April 1, 1880 (21 Stat. 70, chap- planning, design, and construction of the and such other amounts as may be trans- ter 41; 25 U.S.C. 161); Bonneau Dam Enlargement, for the develop- ferred or credited to the Fund. (ii) the first section of the Act entitled ment of additional capacity in Bonneau Res- (4) WITHDRAWAL.—The Tribe, with the ap- ‘‘An Act to authorize the payment of inter- ervoir for storage of water secured to the proval of the Secretary, may withdraw the est of certain funds held in trust by the Tribe under the Compact;

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00118 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.127 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13989

(B) $8,000,000 for fiscal year 2001, for the gram under title IV of the Indian Self-Deter- (c) REMAINING STORAGE.—The United planning, design, and construction of the mination and Education Assistance Act (25 States shall retain the right to use for any East Fork Dam and Reservoir enlargement, U.S.C. 458aa et seq.), withdrawal plans, with- authorized purpose, any and all storage re- of the Brown’s Dam and Reservoir enlarge- drawal agreements, or any other agreements maining in Lake Elwell after the allocation ment, and of the Towe Ponds enlargement of for withdrawal or transfer of the funds to the made to the Tribe in subsection (a). which— Tribe or a private financial institution under (d) WATER TRANSPORT OBLIGATION; DEVEL- (i) $4,000,000 shall be used for the East Fork this Act. OPMENT AND DELIVERY COSTS.—The United Dam and Reservoir enlargement; (f) WITHOUT FISCAL YEAR LIMITATION.—All States shall have no responsibility or obliga- (ii) $2,000,000 shall be used for the Brown’s money appropriated pursuant to authorization to provide any facility for the transport Dam and Reservoir enlargement; and tions under this title shall be available with- of the water allocated by this section to the (iii) $2,000,000 shall be used for the Towe out fiscal year limitation. Rocky Boy’s Reservation or to any other lo- Ponds enlargement; and SEC. 106. STATE CONTRIBUTIONS TO SETTLE- cation. Except for the contribution set forth (C) $3,000,000 for fiscal year 2002, for the MENT. in section 105(a)(3), the cost of developing planning, design, and construction of such Consistent with Articles VI.C.2 and C.3 of and delivering the water allocated by this other water resource developments as the the Compact, the State contribution to set- title or any other supplemental water to the Tribe, with the approval of the Secretary, tlement shall be as follows: Rocky Boy’s Reservation shall not be borne from time to time may consider appropriate (1) The contribution of $150,000 appro- by the United States. or for the completion of the 4 projects enu- priated by Montana House Bill 6 of the 55th (e) SECTION NOT PRECEDENTIAL.—The provi- merated in subparagraphs (A) and (B) of Legislative Session (1997) shall be used for sions of this section regarding the allocation paragraph (1). the following purposes: of water resources from the Tiber Reservoir to the Tribe shall not be construed as prece- (2) UNEXPENDED BALANCES.—Any unex- (A) Water quality discharge monitoring pended balance in the funds authorized to be wells and monitoring program. dent in the litigation or settlement of any appropriated under subparagraph (A) or (B) (B) A diversion structure on Big Sandy other Indian water right claims. of paragraph (1), after substantial comple- Creek. SEC. 202. MUNICIPAL, RURAL, AND INDUSTRIAL tion of all of the projects enumerated in (C) A conveyance structure on Box Elder FEASIBILITY STUDY. (a) AUTHORIZATION.— paragraphs (1) through (4) of section 103(a)— Creek. (1) IN GENERAL.— (A) shall be available to the Tribe first for (D) The purchase of contract water from (A) STUDY.—The Secretary, acting through completion of the enumerated projects; and Lower Beaver Creek Reservoir. the Bureau of Reclamation, shall perform an (B) then for other water resource develop- (2) Subject to the availability of funds, the MR&I feasibility study of water and related ment projects on the Reservation. State shall provide services valued at $400,000 resources in North Central Montana to (c) ADMINISTRATION COSTS.—There is au- for administration required by the Compact thorized to be appropriated to the Depart- and for water quality sampling required by evaluate alternatives for a municipal, rural, ment of the Interior, for the Bureau of Rec- the Compact. and industrial supply for the Rocky Boy’s Reservation. lamation, $1,000,000 for fiscal year 2000, for TITLE II—TIBER RESERVOIR ALLOCATION (B) USE OF FUNDS MADE AVAILABLE FOR FIS- the costs of administration of the Bureau of AND FEASIBILITY STUDIES AUTHORIZA- CAL YEAR 1999.—The authority under subpara- Reclamation under this Act, except that— TION. (1) if those costs exceed $1,000,000, the Bu- graph (A) shall be deemed to apply to MR&I SEC. 201. TIBER RESERVOIR. feasibility study activities for which funds reau of Reclamation may use funds author- (a) ALLOCATION OF WATER TO THE TRIBE.— ized for appropriation under subsection (b) were made available by appropriations for (1) IN GENERAL.—The Secretary shall per- fiscal year 1999. for costs; and manently allocate to the Tribe, without cost (2) the Bureau of Reclamation shall exer- (2) CONTENTS OF STUDY.—The MR&I feasi- to the Tribe, 10,000 acre-feet per year of bility study shall include the feasibility of cise its best efforts to minimize those costs stored water from the water right of the Bu- releasing the Tribe’s Tiber allocation as pro- to avoid expenditures for the costs of admin- reau of Reclamation in Lake Elwell, Lower vided for in section 201 into the Missouri istration under this Act that exceed a total Marias Unit, Upper Missouri Division, Pick- River System for later diversion to a treat- of $1,000,000. Sloan Missouri Basin Program, Montana, ment and delivery system for the Rocky (d) AVAILABILITY OF FUNDS.— measured at the outlet works of the dam or Boy’s Reservation. (1) IN GENERAL.—The amounts authorized at the diversion point from the reservoir. (3) UTILIZATION OF EXISTING STUDIES.—The to be appropriated to the Fund and allocated The allocation shall become effective when to its accounts pursuant to subsection (a) MR&I feasibility study shall include utiliza- the decree referred to in section 101(b) has tion of existing Federal and non-Federal shall be deposited into the Fund and allo- become final in accordance with that sec- studies and shall be planned and conducted cated immediately on appropriation. tion. The allocation shall be part of the Trib- in consultation with other Federal agencies, (2) INVESTMENTS.—Investments may be al Water Right and subject to the terms of the State of Montana, and the Chippewa Cree made from the Fund pursuant to section this Act. Tribe. 104(d). (2) AGREEMENT.—The Secretary shall enter (b) ACCEPTANCE OR PARTICIPATION IN IDEN- (3) AVAILABILITY OF CERTAIN MONEYS.—The into an agreement with the Tribe setting TIFIED OFF-RESERVATION SYSTEM.—The amounts authorized to be appropriated in forth the terms of the allocation and pro- United States, the Chippewa Cree Tribe of subsection (a)(1) shall be available for use viding for the Tribe’s use or temporary the Rocky Boy’s Reservation, and the State immediately upon appropriation in accord- transfer of water stored in Lake Elwell, sub- of Montana shall not be obligated to accept ance with subsection 104(c)(1). ject to the terms and conditions of the Com- or participate in any potential off-Reserva- (4) LIMITATION.—Those moneys allocated pact and this Act. tion water supply system identified in the by the Secretary to accounts in the Fund or (3) PRIOR RESERVED WATER RIGHTS.—The al- MR&I feasibility study authorized in sub- in a fund established under section 104(a)(4) location provided in this section shall be section (a). shall draw interest consistent with section subject to the prior reserved water rights, if SEC. 203. REGIONAL FEASIBILITY STUDY— 104(d), but the moneys authorized to be ap- any, of any Indian tribe, or person claiming (a) IN GENERAL.— propriated under subsection (b) and para- water through any Indian tribe. (1) STUDY.—The Secretary, acting through graphs (2) and (3) of subsection (a) shall not (b) USE AND TEMPORARY TRANSFER OF AL- the Bureau of Reclamation, shall conduct, be available for expenditure until the re- LOCATION.— pursuant to Reclamation Law, a regional quirements of section 101(b) have been met (1) IN GENERAL.—Subject to the limitations feasibility study (referred to in this sub- so that the decree has become final and the and conditions set forth in the Compact and section as the ‘‘regional feasibility study’’) Tribe has executed the waiver and release re- this Act, the Tribe shall have the right to de- to evaluate water and related resources in quired under section 5(c). vote the water allocated by this section to North-Central Montana in order to deter- (e) RETURN OF FUNDS TO THE TREASURY.— any use, including agricultural, municipal, mine the limitations of those resources and (1) IN GENERAL.—In the event that the ap- commercial, industrial, mining, or rec- how those resources can best be managed proval, ratification, and confirmation of the reational uses, within or outside the Rocky and developed to serve the needs of the citi- Compact by the United States becomes null Boy’s Reservation. zens of Montana. and void under section 101(b), all unexpended (2) CONTRACTS AND AGREEMENTS.—Notwith- (2) USE OF FUNDS MADE AVAILABLE FOR FIS- funds appropriated under the authority of standing any other provision of statutory or CAL YEAR 1999.—The authority under para- this Act together with all interest earned on common law, the Tribe may, with the ap- graph (1) shall be deemed to apply to re- such funds, notwithstanding whether the proval of the Secretary and subject to the gional feasibility study activities for which funds are held by the Tribe, a private insti- limitations and conditions set forth in the funds were made available by appropriations tution, or the Secretary, shall revert to the Compact, enter into a service contract, for fiscal year 1999. general fund of the Treasury 12 months after lease, exchange, or other agreement pro- (b) CONTENTS OF STUDY.—The regional fea- the expiration of the deadline established in viding for the temporary delivery, use, or sibility study shall— section 101(b). transfer of the water allocated by this sec- (1) evaluate existing and potential water (2) INCLUSION IN AGREEMENTS AND PLAN.— tion, except that no such service contract, supplies, uses, and management; The requirements in paragraph (1) shall be lease, exchange, or other agreement may (2) identify major water-related issues, in- included in all annual funding agreements permanently alienate any portion of the cluding environmental, water supply, and entered into under the self-governance pro- tribal allocation. economic issues;

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00119 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.127 pfrm13 PsN: S04PT1 S13990 CONGRESSIONAL RECORD — SENATE November 4, 1999 (3) evaluate opportunities to resolve the (2) the Rural Utilities Service; Corporation and the Risk Management Agen- issues referred to in paragraph (2); and (3) the Rural Housing Service; cy shall complete implementation of the (4) evaluate options for implementation of (4) the Rural Business-Cooperative Service; plan submitted under subsection (a). resolutions to the issues. and SEC. 5. CONFIDENTIALITY. (c) REQUIREMENTS.—Because of the re- (5) the Natural Resources Conservation In carrying out this Act, the Secretary— gional and international impact of the re- Service. (1) may not make available any informa- gional feasibility study, the study may not (c) IMPLEMENTATION.—In carrying out sub- tion over the Internet that would otherwise be segmented. The regional study shall— section (a), the Secretary shall— not be available for release under section 552 (1) utilize, to the maximum extent pos- (1) provide a method by which agricultural or 552a of title 5, United States Code; and sible, existing information; and producers may— (2) shall ensure, to the maximum extent (2) be planned and conducted in consulta- (A) download forms from the Internet; and practicable, that the confidentiality of per- tion with all affected interests, including in- (B) submit completed forms via electronic sons is maintained. facsimile, mail, or similar means; terests in Canada. f SEC. 204. AUTHORIZATION OF APPROPRIATIONS (2) redesign forms of the agencies of the FOR FEASIBILITY STUDIES. Department of Agriculture by incorporating AUTHORITY FOR COMMITTEES TO (a) FISCAL YEAR 1999 APPROPRIATIONS.—Of into the forms user-friendly formats and self- MEET the amounts made available by appropria- help guidance materials. (d) PROGRESS REPORTS.—Not later than 180 COMMITTEE ON ARMED SERVICES tions for fiscal year 1999 for the Bureau of days after the date of enactment of this Act, Reclamation, $1,000,000 shall be used for the Mr. GRAMM. Mr. President, I ask the Secretary shall submit to Congress a re- purpose of commencing the MR&I feasibility unanimous consent that the Com- port that describes the progress made toward study under section 202 and the regional mittee on Armed Services be author- implementing the Internet-based system re- study under section 203, of which— quired under this section. ized to meet at 9:30 a.m. on Thursday, (1) $500,000 shall be used for the MR&I SEC. 3. ACCESSING INFORMATION AND FILING November 4, 1999, in open session, to study under section 202; and OVER THE INTERNET. consider the nominations of Mr. (2) $500,000 shall be used for the regional (a) IN GENERAL.—Not later than 2 years Alphonso Maldon, Jr. to be assistant study under section 203. after the date of enactment of this Act, in Secretary of Defense, Force Manage- (b) FEASIBILITY STUDIES.—There is author- accordance with subsection (b), the Sec- ized to be appropriated to the Department of ment Policy, and Mr. John Veroneau to retary shall expand implementation of the be Assistant Secretary of Defense, Leg- the Interior, for the Bureau of Reclamation, Internet-based system established under sec- for the purpose of conducting the MR&I fea- tion 2 by enabling agricultural producers to islative Affairs. sibility study under section 202 and the re- access and file all forms and, at the option of The PRESIDING OFFICER. Without gional study under section 203, $3,000,000 for the Secretary, selected records and informa- objection, it is so ordered. fiscal year 2000, of which— tion of the agencies of the Department speci- COMMITTEE ON COMMERCE, SCIENCE, AND (1) $500,000 shall be used for the MR&I fea- fied in section 2(b). TRANSPORTATION sibility study under section 202; and (b) IMPLEMENTATION.—In carrying out sub- Mr. GRAMM. Mr. President, I ask (2) $2,500,000 shall be used for the regional section (a), the Secretary shall ensure that study under section 203. an agricultural producer is able— unanimous consent that the Senate (c) WITHOUT FISCAL YEAR LIMITATION.—All (1) to file electronically or in paper form, Committee on Commerce, Science, and money appropriated pursuant to authoriza- at the option of the agricultural producer, Transportation be authorized to meet tions under this title shall be available with- all forms required by agencies of the Depart- during the session of the Senate on out fiscal year limitation. ment specified in section 2(b); Thursday, November 4, 1999, at 9:30 (d) AVAILABILITY OF CERTAIN MONEYS.—The (2) to file electronically or in paper form, a.m. on local competition in the voice amounts made available for use under sub- at the option of the agricultural producer, and data marketplaces. section (a) shall be deemed to have been all documentation required by agencies of The PRESIDING OFFICER. Without the Department specified in section 2(b) and available for use as of the date on which objection, it is so ordered. those funds were appropriated. The amounts determined appropriate by the Secretary; authorized to be appropriated in subsection and COMMITTEE ON FOREIGN RELATIONS (b) shall be available for use immediately (3) to access information concerning farm Mr. GRAMM. Mr. President, I ask upon appropriation. programs, quarterly trade, economic, and unanimous consent that the Com- f production reports, and other similar pro- mittee on Foreign Relations be author- duction agriculture information that is read- ized to meet during the session of the FREEDOM TO E-FILE ACT ily available to the public in paper form. Senate on Wednesday, November 4, SEC. 4. FEDERAL CROP INSURANCE CORPORA- TION AND RISK MANAGEMENT 1999, at 10 a.m. and 2:30 p.m. to hold FITZGERALD AMENDMENT NO. 2513 AGENCY. two hearings. (a) IN GENERAL.—Not later than December The PRESIDING OFFICER. Without Mr. GRASSLEY (for Mr. FITZGERALD) 1, 2000, the Federal Crop Insurance Corpora- objection, it is so ordered. proposed an amendment to the bill (S. tion and the Risk Management Agency shall COMMITTEE ON INDIAN AFFAIRS 777) to require the Department of Agri- submit to the Committee on Agriculture of Mr. GRAMM. Mr. President, I ask, culture to establish an electronic filing the House of Representatives and the Com- unanimous consent that the Senate and retrieval system to enable the pub- mittee on Agriculture, Nutrition, and For- Committee on Indian Affairs be author- lic to file all required paperwork elec- estry of the Senate a plan, that is consistent with this Act, to allow agricultural pro- ized to meet during the session of the tronically with the Department and to ducers to— Senate on Thursday, November 4, 1999, have access to public information on (1) obtain, over the Internet, from ap- at 9:30 a.m. to conduct a joint hearing farm programs, quarterly trade, eco- proved insurance providers all forms and with the House Committee on Re- nomic, and production reports, and other information concerning the program sources on S. 1586, the Indian Land other similar information; as follows: under the jurisdiction of the Corporation and Agency in which the agricultural producer is Consolidation Act Amendments of 1999; Strike all after the enacting clause and in- and S. 1315, to permit the leasing of oil sert the following: a participant; and (2) file electronically all paperwork re- and gas rights on Navajo allotted SECTION 1. SHORT TITLE. quired for participation in the program. lands. This Act may be cited as the ‘‘Freedom to (b) ADMINISTRATION.—The plan shall— E-File Act’’. The hearing will be held in room 106, (1) conform to sections 2(c) and 3(b); and Dirksen Senate Building. SEC. 2. ELECTRONIC FILING AND RETRIEVAL. (2) prescribe— The PRESIDING OFFICER. Without (a) IN GENERAL.—Not later than 180 days (A) the location and type of data to be after the date of enactment of this Act, in made available to agricultural producers; objection, it is so ordered. accordance with subsection (c), the Sec- (B) the location where agricultural pro- COMMITTEE ON THE JUDICIARY retary of Agriculture (referred to in this Act ducers can electronically file their paper- Mr. GRAMM. Mr. President, I ask as the ‘‘Secretary’’) shall, to the maximum work; and unanimous consent that the Senate extent practicable, establish an Internet- (C) the responsibilities of the applicable Committee on the Judiciary be author- based system that enables agricultural pro- parties, including agricultural producers, the ized to meet during the session of the ducers to access all forms of the agencies of Risk Management Agency, the Federal Crop Senate on Thursday, November 4, 1999, the Department of Agriculture specified in Insurance Corporation, approved insurance subsection (b). providers, crop insurance agents, and bro- at 10 a.m., in Dirksen Room 226, to con- (b) APPLICABILITY.—The agencies referred kers. duct a markup. to in subsection (a) are— (c) IMPLEMENTATION.—Not later than De- The PRESIDING OFFICER. Without (1) the Farm Service Agency; cember 1, 2001, the Federal Crop Insurance objection, it is so ordered.

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00120 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.127 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13991 COMMITTEE ON THE JUDICIARY For example, this conference report Mr. President, each year the con- Mr. GRAMM. Mr. President, I ask includes an extra $22 million in des- ferees utilize the appropriations proc- unanimous consent that the Senate ignated ‘‘emergency’’ funding for cer- ess to tack on legislative riders that ei- Committee on the Judiciary be author- tain areas in the State of Alaska. This ther were not considered through a leg- ized to meet during the session of the funding was not considered in either islative process or added with the in- Senate on Thursday, November 4, 1999, the Senate or House bills, but added tension to delay important policy and at 11 a.m., in Dirsken Room 226, to con- during last-minute negotiations. regulatory changes. Many environ- duct a hearing. Again, I certainly understand economic mental and land management laws can- The PRESIDING OFFICER. Without hardships facing rural Alaskans, but not be updated or reviewed when legis- objection, it is so ordered. why is funding economic projects such lative riders are included that prohibit SPECIAL COMMITTEE ON AGING as building a regional shipyard, a larg- any action by federal agencies to pro- Mr. GRAMM. Mr. President, I ask er fishing dock, as well as converting a ceed with a fair and comprehensive re- unanimous consent that the Special pulp mill to a Coca Cola bottling plant, view of impacts on our natural re- Committee on Aging be authorized to of higher priority than addressing im- sources. A few of the these riders in- meet on November 4, 1999, from 10 a.m. portant land and resources manage- clude: to 12 p.m., in Dirksen 562 for the pur- ment issues that are intended to be A delay in promulgating rules to up- pose of conducting a hearing. paid for through the Interior appro- date oil valuation royalty assessments The PRESIDING OFFICER. Without priations bill? This added ‘‘emergency’’ for oil drilled on federal lands; objection, it is so ordered. spending, despite that fact that it will A two-year exemption for certain f purportedly not count against budget mining companies who utilize public ADDITIONAL STATEMENTS cap restrictions, will still be paid for lands for purposes of storing mine by the taxpayers. waste; Also added in this conference report A year-long delay for surface man- CONFERENCE REPORT FOR INTE- is an entirely new title that includes agement regulations governing RIOR APPROPRIATIONS FOR FY legislation, the ‘‘Mississippi National hardrock mining; and, 2000 Forest Improvement Act of 1999,’’ A continuing moratorium on Indian which had not previously considered in ∑ Mr. MCCAIN. Mr. President, the Sen- tribal P.L. 93–638 Indian Self-Deter- ate passed the conference agreement the previous Senate or House bills. mination Contracts that allow direct for the Interior appropriations bill on Furthermore, emergency funding of $68 management and funding for tribally October 21, 1999. Although this con- million is provided for the ‘‘United operated programs. ference report was approved by unani- Mine Workers of America’’ benefit I support an open and fair review of mous consent, I wanted to express my fund, also not previously included in ei- our laws that govern public lands and objections to the amount of excessive ther the Senate or House versions of resources, but we cannot fully evaluate pork-barrel spending and extraneous the Interior appropriations bills. the fairness and appropriateness of pro- legislative riders included in this final The conferees have targeted funding posed changes when legislative riders agreement. for projects that provide little detail as such as these put a halt to our congres- In late September, the Senate passed to their overall national priority or sional review. an Interior bill that included $217 mil- merit. For example, $300,000 that was Mr. President, there is no doubt that lion in wasteful and unnecessary spend- originally dedicated for a Forest Serv- important land, forest and Native ing. This new conference agreement ice regional office is instead directed to American programs will continue to be has taken pork-barrel spending to be earmarked for heating, ventilation, supported through this annual funding higher proportions by adding an addi- and air conditioning systems at the bill. Unfortunately, many communities tional $140 million in earmarks that ei- Forest Products Labs in Wisconsin. across this country will not receive the ther were not included in the Senate or Language is included to provide for critical resources they need because of House bill, or increased funding levels specific acquisition of a high band the continuing and unfair practice of for certain projects at levels far above radio system for the Monongahela Na- pork-barrel spending. This year, our the requested amounts. tional Forest in West Virginia. While American taxpayers will pay the tab I am constantly amazed by tactics these maintenance improvements may for $357 million in parochial and low- used by my colleagues to attach ear- very well be necessary, is this the type priority spending.∑ marks for parochial projects that have of projects that deserve funding above f not been authorized or that circumvent other important land, forest and wild- a fair and merit-review process. The life priorities? RESPECT MONTH conferees have even included report Much of this wasteful spending could ∑ Mr. LEVIN. Mr. President, both the language that directs federal agencies be directed toward other priorities and State of Michigan and the City of De- to fund targeted earmarks included in programs that allow states and local troit have proclaimed the month of Oc- the conference report prior to distrib- communities to prioritize their own tober ‘‘Respect Month’’ for the past uting general allocated funds to the needs at the local level, such as the decade and October 30th ‘‘Respect Your rest of the country. State-side program of the Land and Neighborhood Day’’. These designa- In my review of the final conference Water Conservation Fund. I, along with tions give us the opportunity to recog- report, I have identified numerous ear- several of my colleagues, have sup- nize and celebrate the many daily acts marks and riders that are included in a ported prioritizing the State-side proof service, that sometimes go unno- list of objectionable provisions that is gram of the Land and Water Conserva- ticed, but are so vital to binding our available on my Senate webpage. I re- tion Fund as a program that provides communities and nation together with mind my colleagues that I do not ob- federal resources for projects that are harmony and unity. Over the last ject to these projects based on their considered fairly and competitively. month, organizations and schools in merit nor do I intend to belittle the The conferees agreed to provide $20 Michigan took the opportunity to give importance of specific projects to local million to the State-side program for young people a greater acceptance of communities. My objections are based the first time in many years, but this the similarities and differences of oth- on issues of fairness and following es- level is less than the $30 million ap- ers. tablished procedures to consider budg- proved by the Senate and far below The principle of respect is especially etary items as well as a undergoing a what is necessary to address locally important in the aftermath of last separate legislative process for policy identified needs. Unfortunately, the school year’s shootings. While our na- and statutory changes to our federal State-side program, and many other tion is focused on creating an atmos- laws. Unfortunately, the conferees programs that fund projects based on phere free from fear and violence, it is have been able to side-step our estab- merit and national priority, are penal- important to pause and reflect on our lished budget and legislative rules by ized due to other low-priority and spe- respect for one another. Respect is a utilizing deceptive wording and budget cial interest spending as part of this valuable lesson for the schools who are gimmickry. conference report. struggling to repair the damage these

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00121 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.129 pfrm13 PsN: S04PT1 S13992 CONGRESSIONAL RECORD — SENATE November 4, 1999 horrific acts of violence have caused. portant is that he did so by adapting unique mixture of energy, innovation, pa- In fact, in the last few weeks I have re- rigorous accounting or ‘‘Yellow Book’’ tience, and perseverance in being responsive ported several incidences of gun vio- Government Auditing Standards. In to the Congress; ensuring the application of lence which have devastated families fact, when it comes to the Yellow the standards of our profession; and preparing executives in all branches of govern- and school communities, leaving many Book, Elmer Staats literally wrote the ment to understand, address, and resolve the people wondering what we, as a nation, book. Finally, Elmer Staats set the problems that GAO uncovers. can do to prevent these tragedies, and pace for GAO to be a leader in the fight Elmer, your legacy is with us in every new how we can reinforce the rule of re- against waste, fraud, and abuse. As step and renewed effort at GAO. On behalf of spect. Stephen Barr reported in The Wash- the staff here at the General Accounting Of- I believe there are many things that ington Post on Thursday, October 28, fice, and my fellow INTOSAL colleagues we can do to make a difference. I have 1999, ‘‘For fiscal 1999, the GAO expects throughout the world, I extend the very best stated many times that one of the first its recommendations to produce budget to you and your family on this joyous occa- savings and financial benefits worth sion. things Congress can do is limit the Sincerely, more than $20 billion. That follows sev- easy access to firearms by our young DAVID M. WALKER, people. I will continue to speak out eral years in which the GAO’s auditing about the need for strengthening our and investigative work has led to an- Comptroller General of the United States.∑ gun laws, but I also believe that there nual savings of between $16 billion and f are other critical components of the $21 billion.’’ LYNDON A. WADE complex puzzle of youth violence and I applaud ASPA’s decision to honor one of them is respect. Devoting a Elmer Staats to highlight its own 60 ∑ Mr. CLELAND. Mr. President, I once month to respect provides an excellent years of service to our nation, and I ex- heard Marian Wright Edelman, Presi- avenue by which our young people can tend my personal congratulations to dent of the Children’s Defense Fund, focus on the importance of honor, ac- Elmer Staats for receiving such a high say that ‘‘Service is the rent each of us ceptance, and values. honor. I ask unanimous consent that a pays for living—the very purpose of life While this is not expected to end all congratulatory letter from the current and not something you do in your spare violence, it is my hope that by con- Comptroller General, David M. Walker, time or after you have reached your tinuing to implement the lessons of re- be entered into the RECORD at this personal goals.’’ I can think of no spect in our daily lives, we can, in fact, point. greater example of that philosophy make a positive impact in neighbor- There being no objection, the mate- than Mr. Lyndon A. Wade. hoods, not only across Michigan, but rial was ordered to be printed in the Lyndon A. Wade has served as Presi- across the country as well.∑ RECORD, as follows: dent of the Atlanta Urban League for f GAO, over 30 years. Since 1968, under his U.S. GENERAL ACCOUNTING OFFICE, leadership, this broad-based commu- THE HONORABLE ELMER B. Washington, DC, October 28, 1999. nity and social service agency has af- STAATS, COMPTROLLER GEN- The Honorable Elmer B. Staats, fected major decisions and brought ERAL OF THE UNITED STATES, 5011 Overlook Road, NW., about changes in among other things, 1966–1981 Washington, DC 20016. Dear Elmer: It is with enormous pride and land and transportation planning, ∑ Mr. THOMPSON. Mr. President, privilege that I join your many colleagues equal employment opportunities and today the American Society for Public and friends in honoring you on this 60th an- minority employment in building and Administration (ASPA) will be cele- niversary of the American Society of Public construction trades. brating its 60th Anniversary by hon- Administration. I regret that I cannot be Currently, the League operates pro- oring Elmer B. Staats, who served as there to share in the celebration due to a grams of service in the areas of em- previous family commitment. ployment, housing, education and Comptroller General of the United In the worlds of public accounting and pub- States from 1966–1981. The Comptroller lic administration, we are the beneficiaries youth services. The agency provides so- General of the United States has enor- of your good name and myriad good works. cial services to over 3,000 people annu- mous responsibility as head of the U.S. It is both an honor and a responsibility to ally and is affiliated with the United General Accounting Office (GAO). follow in your footsteps as Comptroller Gen- Way Agency and also receives funding Much of what we take for granted eral of the United States. I would not begin from city, county, state, and federal about GAO’s successes in the area of to attempt to summarize the dollars saved, governments, foundations, and cor- government accountability results the federal programs strengthened, and the porations. citizens’ lives improved as a result of your Mr. Wade is a native Atlantan and a from the leadership of each Comp- many years of public service. I refer not only troller General. The commitment re- to your accomplishments as Comptroller product of the Atlanta public schools. quired to fulfill the responsibilities of General, but to your continued association He received his BA form Morehouse this important position are equally with GAO and a multitude of public and pri- College and his Masters degree in So- balanced by the excellence we have vate sector organizations since your social work from Atlanta University. He seen in the occupants of the job. called ‘‘retirement’’ from federal service. began his career as an assistant pro- That said, Elmer Staats occupies a I want to take this opportunity to high- fessor in Emory University’s Depart- special place not only in GAO’s his- light a few well-known parts of your cele- ment of Psychiatry, a position he occu- brated record, which include: development of pied from 1963 to 1968. tory, but for establishing the founda- the ‘‘Yellow Book’’ of government auditing tion of improved government account- Standards, expansion of GAO’s work in pro- Between 1971 and 1975, while serving ability and fiscal responsibility so im- gram evaluation, the effectiveness of your as President of the Atlanta Urban portant to the sound functioning of our personal diplomacy on Capitol Hill, the reor- League, Mr. Wade was appointed by government. As Chairman of the Sen- ganization of GAO into issue areas, estab- Federal Judge Frank Hooper to chair ate Committee on Governmental Af- lishment of GAO’s job planning processes, the bi-racial Advisory Committee to fairs I can attest to the importance of the revitalization of the Joint Financial the Atlanta Board of Education. This Mr. Staats’ contributions, because they Management Improvement Program, and group was successful in forging the At- GAO’s participation and leadership of the lanta Compromise which ended 15 years have crucially shaped the effectiveness International Organization of Supreme Audit of GAO over the years and have been of Institutions (INTOSAI). Your work made be- of protracted court struggle sur- enormous assistance to the Committee lievers out of many in GAO, the Congress, rounding the desegregation of Atlan- and to the Congress as a whole. andother accountability professionals ta’s public schools. Elmer Staats increased GAO’s visi- throughout the world who continue to recog- From 1971 until 1985, Mr. Wade served bility and services to the Congress dra- nize today that GAO’s core values of ac- on the Board of Directors of the Metro- matically. Elmer Staats expanded countability, integrity, and reliability are politan Atlanta Rapid Transit Author- GAO’s work beyond the mere consider- the very foundation of public trust and con- ity where he held the posts of Sec- fidence. ation of the legality of expenditures The changes you effected during your 15- retary, Chairman of the Development and agency administrative activities, year tenure as Comptroller General allowed Committee and Vice-Chairman. He was and began examining the effectiveness GAO’s institutional role in government to one of the major architects of Marta’s of government programs. What is im- expand and improve. You demonstrated a Affirmative Action Program which has

VerDate 29-OCT-99 06:26 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00122 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.091 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13993 resulted in hundreds of jobs for minori- equipment, employs 575 workers and is healthcare needs with critical, life sav- ties and females as well as producing one of the most advanced production ing initiatives and community out- approximately $3 billion in contracts plants of its kind. This company’s suc- reach activities all designed to create a for minority and female entrepreneurs cess is founded upon management-em- healthier Macomb County. since the beginning of the system. ployee partnerships, its highly skilled The accomplishments this group has During the early 1970’s, the Atlanta workforce and a strong commitment to made in the past 100 years are to be Urban League, under Wade’s leader- workplace safety. Scroll Technologies commended. St. Joseph’s Mercy has ship, paved the way for minorities and can also be proud of its sound environ- made a hospital much more than four women to gain admission to the build- mental record. walls filled with medical equipment. ing trades elite crafts. Working with Eaton Corporation’s Aeroquip Global They have taken their guiding spirit Arthur Fletcher and the U.S. Depart- Hose Division opened for business in and reached out to the community de- ment of Labor a federal employment 1975 and now employs 285 workers in livering a century of caring and char- plan was developed for the construc- Northwest Arkansas. Eaton-Aeroquip ity. tion industry in Metropolitan Atlanta. manufactures hydraulic hoses used in It is my hope that the St. Joseph’s This plan served as a monitoring guide large trucks and tractors. This com- Mercy of Macomb will continue to pro- for hiring and utilization of minority pany has succeeded by abandoning the vide excellent healthcare that knows and female workers. traditional, hierarchical manufac- no bounds.∑ Over his long and distinguished ca- turing process and adopting an organi- f reer, Mr. Wade has received numerous zational structure based on 50 em- GEORGETOWN-RIDGE FARM HIGH citations and honors including: Fulton ployee teams. Team members are en- SCHOOL WINS ODYSSEY WORLD County Medical Society’s Distin- couraged to give candid feedback about TITLE guished Service Award; Social Worker all aspects of the plant’s operations of the Year 1971 by the North Georgia and are rewarded with performance ∑ Mr. DURBIN. Mr. President, I rise Chapter of the National Association of based bonuses. today to recognize six students at Social Workers; and the Distinguished I have always said that Arkansas’ Georgetown-Ridge Farm High School Service Award by the Atlanta More- greatest asset is its people. I am glad who captured the Environmental Chal- house Alumni Club. that Scroll Technologies and Eaton- lenge division title at the Odyssey of He is a member of the Academy of Aeroquip have taken advantage of this the Mind’s world competition in Knox- Social Workers, the Atlanta Action resource and become valuable cor- ville, Tennessee. These Georgetown- Forum, the Atlanta Committee for porate-citizens in my state. I am proud Ridge Farm High School students, Public Education, Organizing Com- to honor their achievements in the under the tutelage of their coach, mittee for Gilda’s Club, Channel 36’s U.S. Senate today. I hope their well- Jeannine Patterson, beat out 54 teams ‘‘Quest’’ Advisory Board, the Associa- earned success sends a signal to other representing other states and countries tion of United Way executive com- companies in Arkansas and the nation to win first place. mittee, the Urban Insurance Task that Arkansas is a good place for in- While this is the third consecutive Force, and District Attorney Paul dustry to do business.∑ year in which a Georgetown-Ridge Howard’s Transition Team as well as a f Farm High School team has advanced a 1970 Graduate of leadership Atlanta. team to the world competition, stu- From September 1958 to July 1962, ST. JOSEPH’S MERCY OF MACOMB dents Ryan Frohock, Lynsey Hart, Mr. Wade served in the United States 100TH ANNIVERSARY Manda Paige, Derek Galyen, Chelsey Military and received an honorable dis- ∑ Mr. ABRAHAM. Mr. President I rise Spurlock, and James Chandler are the charge with the rank of First Lieuten- today to honor and congratulate St. first to win the world competition, ant. He is married and the father of Joseph’s Mercy of Macomb Hospital as which consists of a long-term problem four children. He is also a life-long they gather in celebration of their and a spontaneous problem. member of the Central Methodist 100th Anniversary. Mr. President, we often heap praise Church in Atlanta. St. Joseph’s Mercy of Macomb has upon athletes who demonstrate a spe- I thank Mr. Wade for the wonderful set a pioneering tradition in health cial ability to throw a ball, catch a work he has done on behalf of Atlanta care since it was founded in 1899. One pass, or run extremely fast. Intellec- and its residents and I wish the very year after its beginning, the hospital tual accomplishments, such as the one best for him and his family in his much opened a 50 bed facility for treatment achieved by these six Georgetown- deserved retirement.∑ of the acutely ill. With its healing wa- Ridge Farm students, however, are f ters and mineral baths it attracted pa- rarely acknowledged. But capturing a tients world wide. St. Joseph’s Mercy world title in a competition that in- CONGRATULATING TWO OUT- continued to take great strides in volves both creativity and intellect STANDING ARKANSAS EMPLOY- healthcare by establishing a disabled clearly merits the highest commenda- ERS children’s clinic, physical therapy de- tion we can bestow upon these stu- ∑ Mrs. LINCOLN. Mr. President, I rise partment and the area’s first alco- dents. It is important that this today to recognize two outstanding holism treatment center which was one achievement receive its due recogni- companies in Arkansas that were of the first to recognize mental illness tion, and I congratulate the six stu- named last month as two of America’s as a disease. Continuing to provide the dents at Georgetown-Ridge High 10 best manufacturing plants in North best quality of healthcare for the peo- School who won the Environmental America by Industry Week magazine. ple of Macomb County, in 1990 St. Jo- Challenge world title at the Odyssey of This dual achievement is impressive seph’s became partners with Mercy the Mind’s world competition, as well and stands as a testament to the strong Health systems and Henry Ford Health as their teachers, parents, and friends, work ethic and pride in workmanship System. all of whom played a role in their vic- that exists among Arkansas workers. What is truly remarkable about the tory in Knoxville, Tennessee.∑ Scroll Technologies of Arkadelphia people involved in St. Joseph’s Mercy f and Eaton Corporation’s Aeroquip is the commitment they have to re- Global Hose Division in Mountain moving barriers to better health and TRIBUTE TO SERGEANT STEVE Home were selected from over 400 making services available close to REEVES AND OFFICER STEPHEN plants that were considered for this home for people of all ages. St. Jo- GILNER award. Applicants were judged on pro- seph’s Mercy has become a strong force ∑ Mr. CLELAND. Mr. President, it has ductivity, workplace safety, commu- in the community—working with par- been said that ‘‘Poor is a nation which nity involvement, customer and sup- ishes and schools to create healthcare has no heroes. Poorer still is the nation plier relations, product quality and in- teams and reaching out with HomeCare which has them, but forgets them.’’ I novation in technology. and neighborhood based healthcare rise today before my colleagues to pay Scroll Technologies, which manufac- centers. St. Joseph’s Mercy is working tribute to two fallen heroes, Sergeant tures air conditioning and refrigeration hard to plan for the future of Steve Reeves and Officer Stephen

VerDate 29-OCT-99 06:48 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00123 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.036 pfrm12 PsN: S04PT1 S13994 CONGRESSIONAL RECORD — SENATE November 4, 1999 Gilner. These policemen were two of What is most exceptional about Dan Sec. 202. Grants for the benefit of homeless Cobb County’s, and indeed America’s, is that he genuinely cares about all individuals. finest. Unfortunately, in a tragic inci- people and their well being. After the Sec. 203. Projects for assistance in transi- dent earlier this year, they were killed devastating tornados which struck tion from homelessness. in the line of duty. Oklahoma last May, Dan instigated Sec. 204. Community mental health services These men dutifully served and pro- performance partnership block and helped organize a trip to aid in the grant. tected the great citizens of Georgia up disaster clean-up. Dan’s leadership was Sec. 205. Determination of allotment. until the last moments of their lives, also apparent when he taught fellow when on July 23, 1999, these heroes Sec. 206. Protection and Advocacy for Men- Boy Scouts how to operate a Ham tally Ill Individuals Act of 1986. were struck down by gunfire. Radio and assisted them in getting cer- Sec. 207. Requirement relating to the rights Colleagues described Stephen Gilner tified in Ham Radio operations in case of residents of certain facilities. as a wonderful human being who had of a disaster. never been happier than when, after TITLE III—PROVISIONS RELATING TO Dan is described as a quiet and re- SUBSTANCE ABUSE seven years in the Marine Corps, he served person who enjoys doing his Sec. 301. Priority substance abuse treatment was handed his police uniform and good deeds in secret and throughout could make a career out of helping peo- needs of regional and national his life he has continually put others’ significance. ple. In 1999, Officer Gilner was nomi- needs before his own. Daniel Miller is nated for the Officer of the Year award Sec. 302. Priority substance abuse preven- an exemplary person, Boy Scout and tion needs of regional and na- after saving a man from a burning van. citizen. Time and time again his devo- tional significance. He died last summer trying to save the tion and good will have blessed the Sec. 303. Substance abuse prevention and life of a fellow officer. Officer Gilner lives of numerous people. It is my hope treatment performance part- leaves behind his wife Elisa and their that many more people follow the path nership block grant. daughter Nicole. that Dan has set himself on and con- Sec. 304. Determination of allotments. Sergeant Reeves had been with the tinue to make the state of Michigan Sec. 305. Nondiscrimination and institu- Cobb County Police Department for and our nation a better place. tional safeguards for religious fourteen years. Fellow officers remem- providers. I would also like to take this oppor- ber Reeves for his sense of humor and Sec. 306. Alcohol and drug prevention or tunity to commend the Boy Scouts of his ability to remain calm under pres- treatment services for Indians sure. Just two months before the tragic America for their dedication to teach- and Native Alaskans. ing young people the skills they need shooting claimed his life, Steve Reeves TITLE IV—PROVISIONS RELATING TO had been promoted to Sergeant. The to assist in life-saving situations. The FLEXIBILITY AND ACCOUNTABILITY beloved hero was twice decorated— Boy Scout leaders who so unselfishly give of their time to help young men Sec. 401. General authorities and peer re- once for saving the life of a fellow offi- view. could never understand the far reaches cer during a struggle with an armed Sec. 402. Advisory councils. of their work. Daniel Miller gives us suspect and again for rescuing a family Sec. 403. General provisions for the perform- from their burning house while he was one incredible example of the impor- ance partnership block grants. off-duty. Sergeant Reeves is survived tance of the training young men get Sec. 404. Data infrastructure projects. by his wife, Beth, and two sons, Clint through the Boy Scouts of America.∑ Sec. 405. Repeal of obsolete addict referral and Chris. f provisions. The selfless bravery and public serv- Sec. 406. Individuals with co-occurring dis- ice displayed by these heroes are in the YOUTH DRUG AND MENTAL orders. finest tradition of the United States. I HEALTH SERVICES ACT Sec. 407. Services for individuals with co-oc- am sure my colleagues in the Senate On November 3, 1999, the Senate curring disorders. will join me as I extend my thoughts passed S. 976, as follows: TITLE I—PROVISIONS RELATING TO SERV- and prayers to Elisa, Nicole, Beth, S. 976 ICES FOR CHILDREN AND ADOLES- Clint and Chris. This tragic incident is Be it enacted by the Senate and House of Rep- CENTS the first of its kind in more than thirty resentatives of the United States of America in SEC. 101. CHILDREN AND VIOLENCE. five years where two police officers Congress assembled, Title V of the Public Health Service Act were killed in the same incident in the SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (42 U.S.C. 290aa et seq.) is amended by adding Atlanta Metro area. Our prayers are (a) SHORT TITLE.—This Act may be cited as at the end the following: sent up to these men in heaven who the ‘‘Youth Drug and Mental Health Services ‘‘PART G—PROJECTS FOR CHILDREN AND made the ultimate sacrifice for their Act’’. VIOLENCE fellow citizens.∑ (b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: ‘‘SEC. 581. CHILDREN AND VIOLENCE. f Sec. 1. Short title; table of contents. ‘‘(a) IN GENERAL.—The Secretary, in consultation with the Secretary of Education TRIBUTE TO DANIEL JACOB TITLE I—PROVISIONS RELATING TO and the Attorney General, shall carry out di- MILLER SERVICES FOR CHILDREN AND ADO- rectly or through grants, contracts or coop- LESCENTS ∑ Mr. ABRAHAM. Mr. President, I rise erative agreements with public entities a today to show appreciation and honor Sec. 101. Children and violence. program to assist local communities in de- to Daniel Jacob Miller as he receives Sec. 102. Emergency response. veloping ways to assist children in dealing Sec. 103. High risk youth reauthorization. the Heroism Award presented by the with violence. Sec. 104. Substance abuse treatment serv- ‘‘(b) ACTIVITIES.—Under the program under Boy Scouts of America. Daniel is a true ices for children and adoles- hero, good Samaritan and model cit- subsection (a), the Secretary may— cents. ‘‘(1) provide financial support to enable izen. On December 31, 1998, there was a Sec. 105. Comprehensive community services local communities to implement programs tragic and massive automobile pile-up for children with serious emo- to foster the health and development of chil- in Northern Michigan. The lone police tional disturbance. dren; officer on the scene needed help and Sec. 106. Services for children of substance ‘‘(2) provide technical assistance to local that is when Dan stepped up. The offi- abusers. communities with respect to the develop- Sec. 107. Services for youth offenders. cer asked if anyone had medical train- ment of programs described in paragraph (1); Sec. 108. Grants for strengthening families ing and Dan, who had learned first aid ‘‘(3) provide assistance to local commu- through community partner- nities in the development of policies to ad- training through the Boy Scouts, im- ships. mediately offered his assistance. Dan’s dress violence when and if it occurs; and Sec. 109. General provisions. ‘‘(4) assist in the creation of community unselfish acts, putting his own life at TITLE II—PROVISIONS RELATING TO partnerships among law enforcement, edu- risk helped save the lives of a mother MENTAL HEALTH cation systems and mental health and sub- and her children and enabled the police Sec. 201. Priority mental health needs of re- stance abuse service systems. officer to tend to the many other seri- gional and national signifi- ‘‘(c) REQUIREMENTS.—An application for a ously injured motorists. cance. grant, contract or cooperative agreement

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under subsection (a) shall demonstrate or agreement, including both process and ‘‘(b) PRIORITY.—In awarding grants, con- that— outcomes evaluation, and the submission of tracts, or cooperative agreements under sub- ‘‘(1) the applicant will use amounts re- an evaluation at the end of the project pe- section (a), the Secretary shall give priority ceived to create a partnership described in riod. to applicants who propose to— subsection (b)(4) to address issues of violence ‘‘(e) DURATION OF AWARDS.—With respect ‘‘(1) apply evidenced-based and cost effec- in schools; to a grant, contract or cooperative agree- tive methods for the treatment of substance ‘‘(2) the activities carried out by the appli- ment under subsection (a), the period during abuse among children and adolescents; cant will provide a comprehensive method which payments under such an award will be ‘‘(2) coordinate the provision of treatment for addressing violence, that will include— made to the recipient may not exceed 5 services with other social service agencies in ‘‘(A) security; years. Such grants, contracts or agreements the community, including educational, juve- ‘‘(B) educational reform; may be renewed. nile justice, child welfare, and mental health ‘‘(C) the review and updating of school ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— agencies; policies; There is authorized to be appropriated to ‘‘(3) provide a continuum of integrated ‘‘(D) alcohol and drug abuse prevention and carry out this section, $50,000,000 for fiscal treatment services, including case manage- early intervention services; year 2000, and such sums as may be necessary ment, for children and adolescents with sub- ‘‘(E) mental health prevention and treat- for each of fiscal years 2001 and 2002.’’. stance abuse disorders and their families; ment services; and SEC. 102. EMERGENCY RESPONSE. ‘‘(4) provide treatment that is gender-spe- ‘‘(F) early childhood development and psy- Section 501 of the Public Health Service cific and culturally appropriate; chosocial services; and Act (42 U.S.C. 290aa) is amended— ‘‘(5) involve and work with families of chil- ‘‘(3) the applicant will use amounts re- (1) by redesignating subsection (m) as sub- dren and adolescents receiving treatment; ceived only for the services described in subsection (o); ‘‘(6) provide aftercare services for children paragraphs (D), (E), and (F) of paragraph (2). (2) by inserting after subsection (l) the fol- and adolescents and their families after com- ‘‘(d) GEOGRAPHICAL DISTRIBUTION.—The lowing: pletion of substance abuse treatment; and Secretary shall ensure that grants, contracts ‘‘(m) EMERGENCY RESPONSE.— ‘‘(7) address the relationship between sub- or cooperative agreements under subsection ‘‘(1) IN GENERAL.—Notwithstanding section stance abuse and violence. (a) will be distributed equitably among the 504 and except as provided in paragraph (2), ‘‘(c) DURATION OF GRANTS.—The Secretary regions of the country and among urban and the Secretary may use not to exceed 3 per- shall award grants, contracts, or cooperative rural areas. cent of all amounts appropriated under this agreements under subsection (a) for periods ‘‘(e) DURATION OF AWARDS.—With respect title for a fiscal year to make noncompeti- not to exceed 5 fiscal years. to a grant, contract or cooperative agree- tive grants, contracts or cooperative agree- ‘‘(d) APPLICATION.—An entity desiring a ment under subsection (a), the period during ments to public entities to enable such enti- grant, contract, or cooperative agreement which payments under such an award will be ties to address emergency substance abuse or under subsection (a) shall submit an applica- made to the recipient may not exceed 5 mental health needs in local communities. tion to the Secretary at such time, in such years. ‘‘(2) EXCEPTIONS.—Amounts appropriated manner, and accompanied by such informa- ‘‘(f) EVALUATION.—The Secretary shall con- under part C shall not be subject to para- tion as the Secretary may reasonably re- duct an evaluation of each project carried graph (1). quire. out under this section and shall disseminate ‘‘(3) EMERGENCIES.—The Secretary shall es- ‘‘(e) EVALUATION.—An entity that receives the results of such evaluations to appro- tablish criteria for determining that a sub- a grant, contract, or cooperative agreement priate public and private entities. stance abuse or mental health emergency ex- under subsection (a) shall submit, in the ap- ‘‘(g) INFORMATION AND EDUCATION.—The ists and publish such criteria in the Federal plication for such grant, contract, or cooper- Secretary shall establish comprehensive in- Register prior to providing funds under this ative agreement, a plan for the evaluation of formation and education programs to dis- subsection. any project undertaken with funds provided seminate the findings of the knowledge de- ‘‘(n) LIMITATION ON THE USE OF CERTAIN IN- under this section. Such entity shall provide velopment and application under this section FORMATION.—No information, if an establish- the Secretary with periodic evaluations of to the general public and to health care pro- ment or person supplying the information or the progress of such project and such evalua- fessionals. described in it is identifiable, obtained in the tion at the completion of such project as the ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— course of activities undertaken or supported Secretary determines to be appropriate. There is authorized to be appropriated to under this title may be used for any purpose ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— carry out this section, $100,000,000 for fiscal other than the purpose for which it was sup- There are authorized to be appropriated to year 2000, and such sums as may be necessary plied unless such establishment or person carry out this section, $40,000,000 for fiscal for each of fiscal years 2001 and 2002. has consented (as determined under regula- year 2000, and such sums as may be necessary ‘‘SEC. 582. GRANTS TO ADDRESS THE PROBLEMS tions of the Secretary) to its use for such for fiscal years 2001 and 2002. OF PERSONS WHO EXPERIENCE VIO- other purpose. Such information may not be ‘‘SEC. 514A. EARLY INTERVENTION SERVICES FOR LENCE RELATED STRESS. published or released in other form if the CHILDREN AND ADOLESCENTS. ‘‘(a) IN GENERAL.—The Secretary shall person who supplied the information or who ‘‘(a) IN GENERAL.—The Secretary shall award grants, contracts or cooperative is described in it is identifiable unless such award grants, contracts, or cooperative agreements to public and nonprofit private person has consented (as determined under agreements to public and private nonprofit entities, as well as to Indian tribes and tribal regulations of the Secretary) to its publica- entities, including local educational agencies organizations, for the purpose of establishing tion or release in other form.’’; and (as defined in section 14101 of the Elementary a national and regional centers of excellence (3) in subsection (o) (as so redesignated), by and Secondary Education Act of 1965 (20 on psychological trauma response and for de- striking ‘‘1993’’ and all that follows through U.S.C. 8801)), for the purpose of providing veloping knowledge with regard to evidence- the period and inserting ‘‘2000, and such sums early intervention substance abuse services based practices for treating psychiatric disas may be necessary for each of the fiscal for children and adolescents. orders resulting from witnessing or experi- years 2001 and 2002.’’. ‘‘(b) PRIORITY.—In awarding grants, con- encing such stress. SEC. 103. HIGH RISK YOUTH REAUTHORIZATION. tracts, or cooperative agreements under sub- ‘‘(b) PRIORITIES.—In awarding grants, con- Section 517(h) of the Public Health Service section (a), the Secretary shall give priority tracts or cooperative agreements under sub- Act (42 U.S.C. 290bb–23(h)) is amended by to applicants who demonstrate an ability section (a) related to the development of striking ‘‘$70,000,000’’ and all that follows to— knowledge on evidence-based practices for through ‘‘1994’’ and inserting ‘‘such sums as ‘‘(1) screen for and assess substance use treating disorders associated with psycho- may be necessary for each of the fiscal years and abuse by children and adolescents; logical trauma, the Secretary shall give pri- 2000 through 2002’’. ‘‘(2) make appropriate referrals for chil- ority to programs that work with children, SEC. 104. SUBSTANCE ABUSE TREATMENT SERV- dren and adolescents who are in need of adolescents, adults, and families who are ICES FOR CHILDREN AND ADOLES- treatment for substance abuse; survivors and witnesses of domestic, school CENTS. ‘‘(3) provide early intervention services, in- and community violence and terrorism. Subpart 1 of part B of title V of the Public cluding counseling and ancillary services, ‘‘(c) GEOGRAPHICAL DISTRIBUTION.—The Health Service Act (42 U.S.C. 290bb et seq.) is that are designed to meet the developmental Secretary shall ensure that grants, contracts amended by adding at the end the following: needs of children and adolescents who are at or cooperative agreements under subsection ‘‘SEC. 514. SUBSTANCE ABUSE TREATMENT SERV- risk for substance abuse; and (a) with respect to centers of excellence are ICES FOR CHILDREN AND ADOLES- ‘‘(4) develop networks with the edu- distributed equitably among the regions of CENTS. cational, juvenile justice, social services, the country and among urban and rural ‘‘(a) IN GENERAL.—The Secretary shall and other agencies and organizations in the areas. award grants, contracts, or cooperative State or local community involved that will ‘‘(d) EVALUATION.—The Secretary, as part agreements to public and private nonprofit work to identify children and adolescents of the application process, shall require that entities, including Native Alaskan entities who are in need of substance abuse treat- each applicant for a grant, contract or coop- and Indian tribes and tribal organizations, ment services. erative agreement under subsection (a) sub- for the purpose of providing substance abuse ‘‘(c) CONDITION.—In awarding grants, con- mit a plan for the rigorous evaluation of the treatment services for children and adoles- tracts, or cooperative agreements under sub- activities funded under the grant, contract cents. section (a), the Secretary shall ensure that

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00125 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.053 pfrm12 PsN: S04PT1 S13996 CONGRESSIONAL RECORD — SENATE November 4, 1999 such grants, contracts, or cooperative agree- ernmental officials to enhance the capacity amphetamine or inhalant abuse and addic- ments are allocated, subject to the avail- of such officials to provide appropriate serv- tion and the development of appropriate ability of qualified applicants, among the ices relating to mental health or substance strategies for disseminating information principal geographic regions of the United abuse. about and implementing these programs. States, to Indian tribes and tribal organiza- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(2) ANNUAL REPORTS.—The Director shall tions, and to urban and rural areas. For the purpose of carrying out this section, submit to the Committee on Health, Edu- ‘‘(d) DURATION OF GRANTS.—The Secretary there is authorized to be appropriated cation, Labor, and Pensions and the Com- shall award grants, contracts, or cooperative $4,000,000 for fiscal year 2000, and such sums mittee on Appropriations of the Senate and agreements under subsection (a) for periods as may be necessary for fiscal years 2001 and the Committee on Commerce and Committee not to exceed 5 fiscal years. 2002. on Appropriations of the House of Represent- ‘‘(e) APPLICATION.—An entity desiring a ‘‘SEC. 514C. PREVENTION OF METHAMPHET- atives, an annual report with the results of grant, contract, or cooperative agreement AMINE AND INHALANT ABUSE AND the analyses and evaluation under paragraph under subsection (a) shall submit an applica- ADDICTION. (1). tion to the Secretary at such time, in such ‘‘(a) GRANTS.—The Director of the Center ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— manner, and accompanied by such informa- for Substance Abuse Prevention (referred to There is authorized to be appropriated to tion as the Secretary may reasonably rein this section as the ‘Director’) may make carry out subsection (a), $10,000,000 for fiscal quire. grants to and enter into contracts and coop- year 2000, and such sums as may be necessary ‘‘(f) EVALUATION.—An entity that receives erative agreements with public and nonprofit for each of fiscal years 2001 and 2002.’’. a grant, contract, or cooperative agreement private entities to enable such entities— SEC. 105. COMPREHENSIVE COMMUNITY SERV- under subsection (a) shall submit, in the ap- ‘‘(1) to carry out school-based programs ICES FOR CHILDREN WITH SERIOUS plication for such grant, contract, or cooper- concerning the dangers of methamphetamine EMOTIONAL DISTURBANCE. ative agreement, a plan for the evaluation of or inhalant abuse and addiction, using meth- (a) MATCHING FUNDS.—Section 561(c)(1)(D) any project undertaken with funds provided ods that are effective and evidence-based, in- of the Public Health Service Act (42 U.S.C. under this section. Such entity shall provide cluding initiatives that give students the re- 290ff(c)(1)(D)) is amended by striking ‘‘fifth’’ the Secretary with periodic evaluations of sponsibility to create their own anti-drug and inserting ‘‘fifth and sixth’’. the progress of such project and such evalua- abuse education programs for their schools; (b) FLEXIBILITY FOR INDIAN TRIBES AND tion at the completion of such project as the and TERRITORIES.—Section 562 of the Public Health Service Act (42 U.S.C. 290ff–1) is Secretary determines to be appropriate. ‘‘(2) to carry out community-based meth- amended by adding at the end the following: ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— amphetamine or inhalant abuse and addic- ‘‘(g) WAIVERS.—The Secretary may waive 1 There are authorized to be appropriated to tion prevention programs that are effective or more of the requirements of subsection (c) carry out this section, $20,000,000 for fiscal and evidence-based. for a public entity that is an Indian Tribe or year 2000, and such sums as may be necessary ‘‘(b) USE OF FUNDS.—Amounts made avail- tribal organization, or American Samoa, for fiscal years 2001 and 2002. able under a grant, contract or cooperative agreement under subsection (a) shall be used Guam, the Marshall Islands, the Federated ‘‘SEC. 514B. YOUTH INTERAGENCY RESEARCH, States of Micronesia, the Commonwealth of for planning, establishing, or administering TRAINING, AND TECHNICAL ASSIST- the Northern Mariana Islands, the Republic ANCE CENTERS. methamphetamine or inhalant prevention of Palau, or the United States Virgin Islands ‘‘(a) PROGRAM AUTHORIZED.—The Sec- programs in accordance with subsection (c). if the Secretary determines, after peer re- retary, acting through the Administrator of ‘‘(c) PREVENTION PROGRAMS AND ACTIVI- view, that the system of care is family-cen- the Substance Abuse and Mental Health TIES.— tered and uses the least restrictive environ- ‘‘(1) IN GENERAL.—Amounts provided under Services Administration, and in consultation ment that is clinically appropriate.’’. this section may be used— with the Administrator of the Office of Juve- (c) DURATION OF GRANTS.—Section 565(a) of nile Justice and Delinquency Prevention, the ‘‘(A) to carry out school-based programs the Public Health Service Act (42 U.S.C. Director of the Bureau of Justice Assistance that are focused on those districts with high 290ff–4(a)) is amended by striking ‘‘5 fiscal’’ and the Director of the National Institutes or increasing rates of methamphetamine or and inserting ‘‘6 fiscal’’. of Health, shall award grants or contracts to inhalant abuse and addiction and targeted at (d) AUTHORIZATION OF APPROPRIATIONS.— public or nonprofit private entities to estab- populations which are most at risk to start Section 565(f)(1) of the Public Health Service lish not more than 4 research, training, and methamphetamine or inhalant abuse; Act (42 U.S.C. 290ff–4(f)(1)) is amended by technical assistance centers to carry out the ‘‘(B) to carry out community-based preven- striking ‘‘1993’’ and all that follows and in- activities described in subsection (c). tion programs that are focused on those pop- serting ‘‘2000, and such sums as may be nec- ‘‘(b) APPLICATION.—A public or private non- ulations within the community that are essary for each of the fiscal years 2001 and profit entity desiring a grant or contract most at-risk for methamphetamine or inhal- 2002.’’. under subsection (a) shall prepare and sub- ant abuse and addiction; (e) CURRENT GRANTEES.— mit an application to the Secretary at such ‘‘(C) to assist local government entities to (1) IN GENERAL.—Entities with active time, in such manner, and containing such conduct appropriate methamphetamine or grants under section 561 of the Public Health information as the Secretary may require. inhalant prevention activities; Service Act (42 U.S.C. 290ff) on the date of ‘‘(c) AUTHORIZED ACTIVITIES.—A center es- ‘‘(D) to train and educate State and local enactment of this Act shall be eligible to re- tablished under a grant or contract under law enforcement officials, prevention and ceive a 6th year of funding under the grant subsection (a) shall— education officials, members of community in an amount not to exceed the amount that ‘‘(1) provide training with respect to state- anti-drug coalitions and parents on the signs such grantee received in the 5th year of fund- of-the-art mental health and justice-related of methamphetamine or inhalant abuse and ing under such grant. Such 6th year may be services and successful mental health and addiction and the options for treatment and funded without requiring peer and Advisory substance abuse-justice collaborations that prevention; Council review as required under section 504 focus on children and adolescents, to public ‘‘(E) for planning, administration, and edu- of such Act (42 U.S.C. 290aa–3). policymakers, law enforcement administra- cational activities related to the prevention (2) LIMITATION.—Paragraph (1) shall apply tors, public defenders, police, probation offi- of methamphetamine or inhalant abuse and with respect to a grantee only if the grantee cers, judges, parole officials, jail administra- addiction; agrees to comply with the provisions of sectors and mental health and substance abuse ‘‘(F) for the monitoring and evaluation of tion 561 as amended by subsection (a). providers and administrators; methamphetamine or inhalant prevention SEC. 106. SERVICES FOR CHILDREN OF SUB- ‘‘(2) engage in research and evaluations activities, and reporting and disseminating STANCE ABUSERS. concerning State and local justice and men- resulting information to the public; and (a) ADMINISTRATION AND ACTIVITIES.— tal health systems, including system rede- ‘‘(G) for targeted pilot programs with eval- (1) ADMINISTRATION.—Section 399D(a) of the sign initiatives, and disseminate information uation components to encourage innovation Public Health Service Act (42 U.S.C. concerning the results of such evaluations; and experimentation with new methodolo- 280d(a)(1)) is amended— ‘‘(3) provide direct technical assistance, in- gies. (A) in paragraph (1), by striking ‘‘Adminis- cluding assistance provided through toll-free ‘‘(2) PRIORITY.—The Director shall give pri- trator’’ and all that follows through ‘‘Ad- telephone numbers, concerning issues such ority in making grants under this section to ministration’’ and insert ‘‘Administrator of as how to accommodate individuals who are rural and urban areas that are experiencing the Substance Abuse and Mental Health being processed through the courts under the a high rate or rapid increases in meth- Services Administration’’; and Americans with Disabilities Act of 1990 (42 amphetamine or inhalant abuse and addic- (B) in paragraph (2), by striking ‘‘Adminis- U.S.C. 12101 et seq.), what types of mental tion. trator of the Substance Abuse and Mental health or substance abuse service approaches ‘‘(d) ANALYSES AND EVALUATION.— Health Services Administration’’ and insert- are effective within the judicial system, and ‘‘(1) IN GENERAL.—Up to $500,000 of the ing ‘‘Administrator of the Health Resources how community-based mental health or sub- amount available in each fiscal year to carry and Services Administration’’. stance abuse services can be more effective, out this section shall be made available to (2) ACTIVITIES.—Section 399D(a)(1) of the including relevant regional, ethnic, and gen- the Director, acting in consultation with Public Health Service Act (42 U.S.C. der-related considerations; and other Federal agencies, to support and con- 280d(a)(1)) is amended— ‘‘(4) provide information, training, and duct periodic analyses and evaluations of ef- (A) in subparagraph (B), by striking ‘‘and’’ technical assistance to State and local gov- fective prevention programs for meth- at the end;

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00126 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.053 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13997 (B) in subparagraph (C), by striking the pe- nosis, detoxification, individual, group and 280d(n)) is amended by adding at the end the riod and inserting the following: ‘‘through family counseling, relapse prevention, following: ‘‘The periodic report shall include youth service agencies, family social serv- pharmacotherapy treatment, after-care serv- a quantitative estimate of the prevalence of ices, child care providers, Head Start, ices, and case management.’’; alcohol and drug problems in families in- schools and after-school programs, early (B) in subparagraph (C), by striking ‘‘, involved in the child welfare system, the bar- childhood development programs, commu- cluding educational and career planning’’ riers to treatment and prevention services nity-based family resource and support cen- and inserting ‘‘and counseling on the human facing these families, and policy rec- ters, the criminal justice system, health, immunodeficiency virus and acquired im- ommendations for removing the identified substance abuse and mental health providers mune deficiency syndrome’’; barriers, including training for child welfare through screenings conducted during regular (C) in subparagraph (D), by striking ‘‘con- workers.’’. childhood examinations and other examina- flict and’’; and (j) DEFINITION.—Section 399D(o)(2)(B) of the tions, self and family member referrals, sub- (D) in subparagraph (E), by striking ‘‘Re- Public Health Service Act (42 U.S.C. stance abuse treatment services, and other medial’’ and inserting ‘‘Career planning 280d(o)(2)(B)) is amended by striking ‘‘dan- providers of services to children and fami- and’’; and gerous’’. lies; and’’; and (3) in paragraph (3)(D), by inserting ‘‘which (k) AUTHORIZATION OF APPROPRIATIONS.— (C) by adding at the end the following: include child abuse and neglect prevention Section 399D(p) of the Public Health Service ‘‘(D) to provide education and training to techniques’’ before the period. Act (42 U.S.C. 280d(p)) is amended to read as health, substance abuse and mental health (d) ELIGIBLE ENTITIES.—Section 399D(d) of follows: professionals, and other providers of services the Public Health Service Act (42 U.S.C. ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.— to children and families through youth serv- 280d(d)) is amended— For the purpose of carrying out this section, ice agencies, family social services, child (1) by striking the matter preceding para- there are authorized to be appropriated care, Head Start, schools and after-school graph (1) and inserting: $50,000,000 for fiscal year 2000, and such sums programs, early childhood development pro- ‘‘(d) ELIGIBLE ENTITIES.—The Secretary as may be necessary for each of fiscal years grams, community-based family resource shall distribute the grants through the fol- 2001 and 2002.’’. and support centers, the criminal justice sys- lowing types of entities:’’; (l) GRANTS FOR TRAINING AND CONFORMING tem, and other providers of services to chil- (2) in paragraph (1), by striking ‘‘drug AMENDMENTS.—Section 399D of the Public dren and families.’’. treatment’’ and inserting ‘‘drug early inter- Health Service Act (42 U.S.C. 280d) is (3) IDENTIFICATION OF CERTAIN CHILDREN.— vention, prevention or treatment; and amended— Section 399D(a)(3)(A) of the Public Health (3) in paragraph (2)— (1) by striking subsection (f); Service Act (42 U.S.C. 280d(a)(3)(A)) is (A) in subparagraph (A), by striking ‘‘; (2) by striking subsection (k); amended— and’’ and inserting ‘‘; or’’; and (3) by redesignating subsections (d), (e), (A) in clause (i), by striking ‘‘(i) the enti- (B) in subparagraph (B), by inserting ‘‘or (g), (h), (i), (j), (l), (m), (n), (o), and (p) as sub- ty’’ and inserting ‘‘(i)(I) the entity’’; pediatric health or mental health providers sections (e) through (o), respectively; (B) in clause (ii)— and family mental health providers’’ before (4) by inserting after subsection (c), the (i) by striking ‘‘(ii) the entity’’ and insert- the period. following: ing ‘‘(II) the entity’’; and (e) SUBMISSION OF INFORMATION.—Section ‘‘(d) TRAINING FOR PROVIDERS OF SERVICES (ii) by striking the period and inserting ‘‘; 399D(h) of the Public Health Service Act (42 TO CHILDREN AND FAMILIES.—The Secretary and’’; and U.S.C. 280d(h)) is amended— may make a grant under subsection (a) for (1) in paragraph (2)— (C) by adding at the end the following: the training of health, substance abuse and (A) by inserting ‘‘including maternal and ‘‘(ii) the entity will identify children who mental health professionals and other pro- child health’’ before ‘‘mental’’; may be eligible for medical assistance under viders of services to children and families (B) by striking ‘‘treatment programs’’; and a State program under title XIX or XXI of through youth service agencies, family so- (C) by striking ‘‘and the State agency re- the Social Security Act.’’. cial services, child care providers, Head sponsible for administering public maternal (b) SERVICES FOR CHILDREN.—Section Start, schools and after-school programs, 399D(b) of the Public Health Service Act (42 and child health services’’ and inserting ‘‘, early childhood development programs, com- U.S.C. 280d(b)) is amended— the State agency responsible for admin- munity-based family resource centers, the (1) in paragraph (1), by inserting ‘‘alcohol istering alcohol and drug programs, the criminal justice system, and other providers and drug,’’ after ‘‘psychological,’’; State lead agency, and the State Interagency of services to children and families. Such (2) by striking paragraph (5) and inserting Coordinating Council under part H of the In- training shall be to assist professionals in the following: dividuals with Disabilities Education Act; recognizing the drug and alcohol problems of ‘‘(5) Developmentally and age-appropriate and’’; and their clients and to enhance their skills in (2) by striking paragraph (3) and redesig- drug and alcohol early intervention, treat- identifying and understanding the nature of nating paragraph (4) as paragraph (3). ment and prevention services.’’; and substance abuse, and obtaining substance (f) REPORTS TO THE SECRETARY.—Section abuse early intervention, prevention and (3) by inserting after paragraph (8), the fol- 399D(i)(6) of the Public Health Service Act treatment resources.’’; lowing: (42 U.S.C. 280d(i)(6)) is amended— (5) in subsection (k)(2) (as so redesignated), ‘‘Services shall be provided under paragraphs (1) in subparagraph (B), by adding ‘‘and’’ at by striking ‘‘(h)’’ and inserting ‘‘(i)’’; and (2) through (8) by a public health nurse, so- the end; and (6) in paragraphs (3)(E) and (5) of sub- cial worker, or similar professional, or by a (2) by striking subparagraphs (C), (D), and section (m) (as so redesignated), by striking trained worker from the community who is (E) and inserting the following: ‘‘(d)’’ and inserting ‘‘(e)’’. supervised by a professional, or by an entity, ‘‘(C) the number of case workers or other (m) TRANSFER AND REDESIGNATION.—Sec- where the professional or entity provides as- professionals trained to identify and address tion 399D of the Public Health Service Act surances that the professional or entity is li- substance abuse issues.’’. (42 U.S.C. 280d), as amended by this section— censed or certified by the State if required (g) EVALUATIONS.—Section 399D(l) of the and is complying with applicable licensure Public Health Service Act (42 U.S.C. 280d(l)) (1) is transferred to title V; or certification requirements.’’. is amended— (2) is redesignated as section 519; and (c) SERVICES FOR AFFECTED FAMILIES.— (1) in paragraph (3), by adding ‘‘and’’ at the (3) is inserted after section 518. (n) CONFORMING AMENDMENT.—Title III of Section 399D(c) of the Public Health Service end; Act (42 U.S.C. 280d(c)) is amended— (2) in paragraph (4), by striking the semi- the Public Health Service Act (42 U.S.C. 241 (1) in paragraph (1)— colon and inserting the following: ‘‘, includ- et seq.) is amended by striking the heading (A) in the matter preceding subparagraph ing increased participation in work or em- of part L. (A), by inserting before the colon the fol- ployment-related activities and decreased SEC. 107. SERVICES FOR YOUTH OFFENDERS. lowing: ‘‘, or by an entity, where the profes- participation in welfare programs.’’; and Subpart 3 of part B of title V of the Public sional or entity provides assurances that the (3) by striking paragraphs (5) and (6). Health Service Act (42 U.S.C. 290bb–31 et professional or entity is licensed or certified (h) REPORT TO CONGRESS.—Section 399D(m) seq.) is amended by adding at the end the fol- by the State if required and is complying of the Public Health Service Act (42 U.S.C. lowing: with applicable licensure or certification re- 280d(m)) is amended— ‘‘SEC. 520C. SERVICES FOR YOUTH OFFENDERS. quirements’’; and (1) in paragraph (2), by adding ‘‘and’’ at the ‘‘(a) IN GENERAL.—The Secretary, acting (B) by adding at the end the following: end; through the Director of the Center for Men- ‘‘(D) Aggressive outreach to family mem- (2) in paragraph (3)— tal Health Services, and in consultation with bers with substance abuse problems. (A) in subparagraph (A), by adding ‘‘and’’ the Director of the Center for Substance ‘‘(E) Inclusion of consumer in the develop- at the end; Abuse Treatment, the Administrator of the ment, implementation, and monitoring of (B) in subparagraph (B), by striking the Office of Juvenile Justice and Delinquency Family Services Plan.’’; semicolon and inserting a period; and Prevention, and the Director of the Special (2) in paragraph (2)— (C) by striking subparagraphs (C), (D), and Education Programs, shall award grants on a (A) by striking subparagraph (A) and in- (E); and competitive basis to State or local juvenile serting the following: (3) by striking paragraphs (4) and (5). justice agencies to enable such agencies to ‘‘(A) Alcohol and drug treatment services, (i) DATA COLLECTION.—Section 399D(n) of provide aftercare services for youth offend- including screening and assessment, diag- the Public Health Service Act (42 U.S.C. ers who have been discharged from facilities

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00127 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.053 pfrm12 PsN: S04PT1 S13998 CONGRESSIONAL RECORD — SENATE November 4, 1999 in the juvenile or criminal justice system under the jurisdiction of such a system at vided, such as early childhood education, and have serious emotional disturbances or the time services are sought. health care, family support programs, parent are at risk of developing such disturbances. ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— education programs, and home visits for in- ‘‘(b) USE OF FUNDS.—A State or local juve- There is authorized to be appropriated to fants. nile justice agency receiving a grant under carry out this section $40,000,000 for fiscal ‘‘(e) APPLICATION.—To be eligible to receive subsection (a) shall use the amounts pro- year 2000, and such sums as may be necessary a grant under subsection (a), an applicant vided under the grant— for each of fiscal years 2001 and 2002.’’. shall prepare and submit to the Secretary an ‘‘(1) to develop a plan describing the man- SEC. 108. GRANTS FOR STRENGTHENING FAMI- application that— ner in which the agency will provide services LIES THROUGH COMMUNITY PART- ‘‘(1) describes a model substance abuse pre- for each youth offender who has a serious NERSHIPS. vention program that such applicant will es- emotional disturbance and has been detained Subpart 2 of part B of Title V of the Public tablish; or incarcerated in facilities within the juve- Health Service Act (42 U.S.C. 290bb-21 et seq) ‘‘(2) describes the manner in which the is amended by adding at the end the fol- nile or criminal justice system; services described in subsection (d)(2) will be lowing: ‘‘(2) to provide a network of core or provided; and aftercare services or access to such services ‘‘SEC. 519A. GRANTS FOR STRENGTHENING FAMI- ‘‘(3) describe in as much detail as possible LIES. for each youth offender, including diagnostic the results that the entity expects to achieve ‘‘(a) PROGRAM AUTHORIZED.—The Sec- and evaluation services, substance abuse in implementing such a program. retary, acting through the Director of the treatment services, outpatient mental ‘‘(f) MATCHING FUNDING.—The Secretary Prevention Center, may make grants to pub- health care services, medication manage- may not make a grant to a entity under sub- lic and nonprofit private entities to develop ment services, intensive home-based ther- section (a) unless that entity agrees that, and implement model substance abuse pre- with respect to the costs to be incurred by apy, intensive day treatment services, res- vention programs to provide early interven- the entity in carrying out the program for pite care, and therapeutic foster care; tion and substance abuse prevention services which the grant was awarded, the entity will ‘‘(3) to establish a program that coordi- for individuals of high-risk families and the make available non-Federal contributions in nates with other State and local agencies communities in which such individuals re- an amount that is not less than 40 percent of providing recreational, social, educational, side. the amount provided under the grant. vocational, or operational services for youth, ‘‘(b) PRIORITY.—In awarding grants under ‘‘(g) REPORT TO SECRETARY.—An applicant to enable the agency receiving a grant under subsection (a), the Secretary shall give pri- that is awarded a grant under subsection (a) this section to provide community-based sys- ority to applicants that— shall prepare and submit to the Secretary a tem of care services for each youth offender ‘‘(1) have proven experience in preventing report in such form and containing such in- that addresses the special needs of the youth substance abuse by individuals of high-risk formation as the Secretary may require, in- and helps the youth access all of the afore- families and reducing substance abuse in cluding an assessment of the efficacy of the mentioned services; and communities of such individuals; model substance abuse prevention program ‘‘(4) using not more than 20 percent of ‘‘(2) have demonstrated the capacity to im- implemented by the applicant and the short, funds received, to provide planning and tran- plement community-based partnership ini- intermediate, and long term results of such sition services as described in paragraph (3) tiatives that are sensitive to the diverse program. for youth offenders while such youth are in- backgrounds of individuals of high-risk fami- ‘‘(h) EVALUATIONS.—The Secretary shall carcerated or detained. lies and the communities of such individuals; conduct evaluations, based in part on the re- ‘‘(c) APPLICATION.—A State or local juve- ‘‘(3) have experience in providing technical ports submitted under subsection (g), to determine the effectiveness of the programs nile justice agency that desires a grant assistance to support substance abuse pre- funded under subsection (a) in reducing sub- under subsection (a) shall submit an applica- vention programs that are community-based; stance use in high-risk families and in mak- tion to the Secretary at such time, in such ‘‘(4) have demonstrated the capacity to im- ing communities in which such families re- manner, and accompanied by such informa- plement research-based substance abuse pre- tion as the Secretary may reasonably reside in stronger. The Secretary shall submit vention strategies; and such evaluations to the appropriate commit- quire. ‘‘(5) have implemented programs that in- ‘‘(d) REPORT.—Not later than 3 years after tees of Congress. volve families, residents, community agen- IGH-RISK FAMILIES.—In this section, the date of enactment of this section and an- ‘‘(i) H cies, and institutions in the implementation the term ‘high-risk family’ means a family nually thereafter, the Secretary shall pre- and design of such programs. in which the individuals of such family are pare and submit, to the Committee on ‘‘(c) DURATION OF GRANTS.—The Secretary at a significant risk of using or abusing alco- Health, Education, Labor, and Pensions of shall award grants under subsection (a) for a hol or any illegal substance. the Senate and the Committee on Commerce period not to exceed 5 years. ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— of the House of Representatives, a report ‘‘(d) USE OF FUNDS.—An applicant that is There is authorized to be appropriated to that describes the services provided pursuant awarded a grant under subsection (a) shall— carry out this section, $3,000,000 for fiscal to this section. ‘‘(1) in the first fiscal year that such funds year 2000, and such sums as may be necessary ‘‘(e) DEFINITIONS.—In this section: are received under the grant, use such funds for each of the fiscal years 2001 and 2002.’’. ‘‘(1) SERIOUS EMOTIONAL DISTURBANCE.—The to develop a model substance abuse preven- SEC. 109. GENERAL PROVISIONS. term ‘serious emotional disturbance’ with tion program; and (a) DUTIES OF THE CENTER FOR SUBSTANCE respect to a youth offender means an of- ‘‘(2) in the fiscal year following the first ABUSE TREATMENT.—Section 507(b) of the fender who currently, or at any time within fiscal year that such funds are received, use Public Health Service Act (42 U.S.C. 290bb(b)) the 1-year period ending on the day on which such funds to implement the program devel- is amended— services are sought under this section, has a oped under paragraph (1) to provide early (1) by redesignating paragraphs (2) through diagnosable mental, behavioral, or emo- intervention and substance abuse prevention (12) as paragraphs (4) through (14), respec- tional disorder that functionally impairs the services to— tively; offender’s life by substantially limiting the ‘‘(A) strengthen the environment of chil- (2) by inserting after paragraph (1), the fol- offender’s role in family, school, or commu- dren of high risk families by targeting inter- lowing: nity activities, and interfering with the of- ventions at the families of such children and ‘‘(2) ensure that emphasis is placed on chil- fender’s ability to achieve or maintain 1 or the communities in which such children re- dren and adolescents in the development of more developmentally-appropriate social, side; treatment programs; behavior, cognitive, communicative, or ‘‘(B) strengthen protective factors, such ‘‘(3) collaborate with the Attorney General adaptive skills. as— to develop programs to provide substance ‘‘(2) COMMUNITY-BASED SYSTEM OF CARE.— ‘‘(i) positive adult role models; abuse treatment services to individuals who The term ‘community-based system of care’ ‘‘(ii) messages that oppose substance have had contact with the Justice system, means the provision of services for the youth abuse; especially adolescents;’’; and offender by various State or local agencies ‘‘(iii) community actions designed to re- (3) in paragraph 14 (as so redesignated), by that in an interagency fashion or operating duce accessibility to and use of illegal sub- striking ‘‘paragraph (11)’’ and inserting as a network addresses the recreational, so- stances; and ‘‘paragraph (13)’’. cial, educational, vocational, mental health, ‘‘(iv) willingness of individuals of families (b) OFFICE FOR SUBSTANCE ABUSE PREVEN- substance abuse, and operational needs of in which substance abuse occurs to seek TION.—Section 515(b) of the Public Health the youth offender. treatment for substance abuse; Service Act (42 U.S.C. 290bb-21(b)) is ‘‘(3) YOUTH OFFENDER.—The term ‘youth of- ‘‘(C) reduce family and community risks, amended— fender’ means an individual who is 21 years such as family violence, alcohol or drug (1) by redesignating paragraphs (9) and (10) of age or younger who has been discharged abuse, crime, and other behaviors that may as (10) and (11); from a State or local juvenile or criminal effect healthy child development and in- (2) by inserting after paragraph (8), the fol- justice system, except that if the individual crease the likelihood of substance abuse; and lowing: is between the ages of 18 and 21 years, such ‘‘(D) build collaborative and formal part- ‘‘(9) collaborate with the Attorney General individual has had contact with the State or nerships between community agencies, insti- of the Department of Justice to develop pro- local juvenile or criminal justice system tutions, and businesses to ensure that com- grams to prevent drug abuse among high prior to attaining 18 years of age and is prehensive high quality services are pro- risk youth;’’; and

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00128 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.053 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S13999 (3) in paragraph (10) (as so redesignated), this section provide non-Federal matching ‘‘(2) entities that demonstrate effective- by striking ‘‘public concerning’’ and insert- funds, as determined appropriate by the Sec- ness in serving runaway, homeless, and ing ‘‘public, especially adolescent audiences, retary, to ensure the institutional commit- street youth; concerning’’. ment of the entity to the projects funded ‘‘(3) entities that have experience in pro- (c) DUTIES OF THE CENTER FOR MENTAL under the grant, contract, or cooperative viding substance abuse and mental health HEALTH SERVICES.—Section 520(b) of the Pub- agreement. Such non-Federal matching services to homeless individuals; lic Health Service Act (42 U.S.C. 290bb–3(b)) funds may be provided directly or through ‘‘(4) entities that demonstrate experience is amended— donations from public or private entities and in providing housing for individuals in treat- (1) by redesignating paragraphs (3) through may be in cash or in kind, fairly evaluated, ment for or in recovery from mental illness (14) as paragraphs (4) through (15), respec- including plant, equipment, or services. or substance abuse; and tively; and ‘‘(4) MAINTENANCE OF EFFORT.—With re- ‘‘(5) entities that demonstrate effective- (2) by inserting after paragraph (2), the fol- spect to activities for which a grant, con- ness in serving homeless veterans. lowing: tract or cooperative agreement is awarded ‘‘(c) SERVICES FOR CERTAIN INDIVIDUALS.— ‘‘(3) collaborate with the Department of under this section, the Secretary may re- In awarding grants, contracts, and coopera- Education and the Department of Justice to quire that recipients for specific projects tive agreements under subsection (a), the develop programs to assist local commu- under subsection (a) agree to maintain ex- Secretary shall not— nities in addressing violence among children penditures of non-Federal amounts for such ‘‘(1) prohibit the provision of services and adolescents;’’. activities at a level that is not less than the under such subsection to homeless individ- TITLE II—PROVISIONS RELATING TO level of such expenditures maintained by the uals who are suffering from a substance MENTAL HEALTH entity for the fiscal year preceding the fiscal abuse disorder and are not suffering from a year for which the entity receives such a mental health disorder; and SEC. 201. PRIORITY MENTAL HEALTH NEEDS OF grant, contract, or cooperative agreement. REGIONAL AND NATIONAL SIGNIFI- ‘‘(2) make payments under subsection (a) ‘‘(d) EVALUATION.—The Secretary shall to any entity that has a policy of— CANCE. evaluate each project carried out under sub- (a) IN GENERAL.—Section 520A of the Pub- ‘‘(A) excluding individuals from mental section (a)(1) and shall disseminate the find- health services due to the existence or sus- lic Health Service Act (42 U.S.C. 290bb–32) is ings with respect to each such evaluation to amended to read as follows: picion of substance abuse; or appropriate public and private entities. ‘‘(B) has a policy of excluding individuals ‘‘SEC. 520A. PRIORITY MENTAL HEALTH NEEDS ‘‘(e) INFORMATION AND EDUCATION.—The from substance abuse services due to the ex- OF REGIONAL AND NATIONAL SIG- Secretary shall establish information and istence or suspicion of mental illness. NIFICANCE. education programs to disseminate and ‘‘(d) TERM OF THE AWARDS.—No entity may ‘‘(a) PROJECTS.—The Secretary shall ad- apply the findings of the knowledge develop- receive a grant, contract, or cooperative dress priority mental health needs of re- ment and application, training, and tech- agreement under subsection (a) for more gional and national significance (as deter- nical assistance programs, and targeted ca- than 5 years. mined under subsection (b)) through the pro- pacity response programs, under this section vision of or through assistance for— ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— to the general public, to health care profes- There is authorized to be appropriated to ‘‘(1) knowledge development and applica- sionals, and to interested groups. The Sec- carry out this section, $50,000,000 for fiscal tion projects for prevention, treatment, and retary shall make every effort to provide year 2000, and such sums as may be necessary rehabilitation, and the conduct or support of linkages between the findings of supported for each of the fiscal years 2001 and 2002.’’. evaluations of such projects; projects and State agencies responsible for ‘‘(2) training and technical assistance pro- carrying out mental health services. SEC. 203. PROJECTS FOR ASSISTANCE IN TRANSI- TION FROM HOMELESSNESS. grams; ‘‘(f) AUTHORIZATION OF APPROPRIATION.— (a) WAIVERS FOR TERRITORIES.—Section 522 ‘‘(3) targeted capacity response programs; ‘‘(1) IN GENERAL.—There are authorized to of the Public Health Service Act (42 U.S.C. and be appropriated to carry out this section, 290cc–22) is amended by adding at the end the ‘‘(4) systems change grants including state- $300,000,000 for fiscal year 2000, and such sums following: wide family network grants and client-ori- as may be necessary for each of the fiscal ‘‘(i) WAIVER FOR TERRITORIES.—With re- years 2001 and 2002. ented and consumer run self-help activities. spect to the United States Virgin Islands, ‘‘(2) DATA INFRASTRUCTURE.—If amounts The Secretary may carry out the activities Guam, American Samoa, Palau, the Marshall are not appropriated for a fiscal year to described in this subsection directly or Islands, and the Commonwealth of the carry out section 1971 with respect to mental through grants, contracts, or cooperative Northern Mariana Islands, the Secretary health, then the Secretary shall make avail- agreements with States, political subdivi- may waive the provisions of this part that able, from the amounts appropriated for such sions of States, Indian tribes and tribal orga- the Secretary determines to be appro- fiscal year under paragraph (1), an amount nizations, other public or private nonprofit priate.’’. equal to the sum of $6,000,000 and 10 percent entities. (b) AUTHORIZATION OF APPROPRIATION.— of all amounts appropriated for such fiscal ‘‘(b) PRIORITY MENTAL HEALTH NEEDS.— Section 535(a) of the Public Health Service year under such paragraph in excess of ‘‘(1) DETERMINATION OF NEEDS.—Priority Act (42 U.S.C. 290cc–35(a)) is amended by $100,000,000, to carry out such section 1971.’’. mental health needs of regional and national striking ‘‘1991 through 1994’’ and inserting (b) CONFORMING AMENDMENTS.— significance shall be determined by the Sec- ‘‘2000 through 2002’’. retary in consultation with States and other (1) Section 303 of the Public Health Service Act (42 U.S.C. 242a) is repealed. SEC. 204. COMMUNITY MENTAL HEALTH SERV- interested groups. The Secretary shall meet ICES PERFORMANCE PARTNERSHIP (2) Section 520B of the Public Health Serv- with the States and interested groups on an BLOCK GRANT. ice Act (42 U.S.C. 290bb–33) is repealed. annual basis to discuss program priorities. (a) CRITERIA FOR PLAN.—Section 1912(b) of (3) Section 612 of the Stewart B. McKinney ‘‘(2) SPECIAL CONSIDERATION.—In developing the Public Health Service Act (42 U.S.C. program priorities described in paragraph Homeless Assistance Act (42 U.S.C. 290aa–3 300x–2(b)) is amended by striking paragraphs (1), the Secretary, in conjunction with the note) is repealed. (1) through (12) and inserting the following: Director of the Center for Mental Health SEC. 202. GRANTS FOR THE BENEFIT OF HOME- ‘‘(1) COMPREHENSIVE COMMUNITY-BASED LESS INDIVIDUALS. Services, the Director of the Center for Sub- MENTAL HEALTH SYSTEMS.—The plan provides Section 506 of the Public Health Service stance Abuse Treatment, and the Adminis- for an organized community-based system of Act (42 U.S.C. 290aa–5) is amended to read as trator of the Health Resources and Services care for individuals with mental illness and follows: Administration, shall give special consider- describes available services and resources in ation to promoting the integration of mental ‘‘SEC. 506. GRANTS FOR THE BENEFIT OF HOME- a comprehensive system of care, including LESS INDIVIDUALS. health services into primary health care sys- services for dually diagnosed individuals. ‘‘(a) IN GENERAL.—The Secretary shall tems. award grants, contracts and cooperative The description of the system of care shall ‘‘(c) REQUIREMENTS.— agreements to community-based public and include health and mental health services, ‘‘(1) IN GENERAL.—Recipients of grants, private nonprofit entities for the purposes of rehabilitation services, employment serv- contracts, and cooperative agreements under providing mental health and substance abuse ices, housing services, educational services, this section shall comply with information services for homeless individuals. In car- substance abuse services, medical and dental and application requirements determined ap- rying out this section, the Secretary shall care, and other support services to be pro- propriate by the Secretary. consult with the Interagency Council on the vided to individuals with Federal, State and ‘‘(2) DURATION OF AWARD.—With respect to Homeless, established under section 201 of local public and private resources to enable a grant, contract, or cooperative agreement the Stewart B. McKinney Homeless Assist- such individuals to function outside of inpa- awarded under this section, the period dur- ance Act (42 U.S.C. 11311). tient or residential institutions to the max- ing which payments under such award are ‘‘(b) PREFERENCES.—In awarding grants, imum extent of their capabilities, including made to the recipient may not exceed 5 contracts, and cooperative agreements under services to be provided by local school sys- years. subsection (a), the Secretary shall give a tems under the Individuals with Disabilities ‘‘(3) MATCHING FUNDS.—The Secretary may, preference to— Education Act. The plan shall include a sepa- for projects carried out under subsection (a), ‘‘(1) entities that provide integrated pri- rate description of case management serv- require that entities that apply for grants, mary health, substance abuse, and mental ices and provide for activities leading to re- contracts, or cooperative agreements under health services to homeless individuals; duction of hospitalization.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00129 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.053 pfrm12 PsN: S04PT1 S14000 CONGRESSIONAL RECORD — SENATE November 4, 1999

‘‘(2) MENTAL HEALTH SYSTEM DATA AND EPI- U.S.C. 300x–6(b)) is amended by striking propriate base amount determined under DEMIOLOGY.—The plan contains an estimate ‘‘whose allotment under section 1911 for the subparagraph (B) and the factor specified in of the incidence and prevalence in the State fiscal year is the amount specified in section subparagraph (C). of serious mental illness among adults and 1918(c)(2)(B)’’ and inserting in its place ‘‘ex- ‘‘(B) For purposes of subparagraph (A), the serious emotional disturbance among chil- cept Puerto Rico’’. appropriate base amount— dren and presents quantitative targets to be (f) AUTHORIZATION OF APPROPRIATION.—Sec- ‘‘(i) for American Samoa, Guam, the Mar- achieved in the implementation of the sys- tion 1920 of the Public Health Service Act (42 shall Islands, the Federated States of Micro- tem described in paragraph (1). U.S.C. 300x–9) is amended— nesia, the Commonwealth of the Northern ‘‘(3) CHILDREN’S SERVICES.—In the case of (1) in subsection (a), by striking Mariana Islands, the Republic of Palau, and children with serious emotional disturbance, ‘‘$450,000,000’’ and all that follows through the Virgin Islands, is $139,300; and the plan— the end and inserting ‘‘$450,000,000 for fiscal ‘‘(ii) for any other State, is $260,000. ‘‘(A) subject to subparagraph (B), provides year 2000, and such sums as may be necessary ‘‘(C) The factor specified in this subpara- for a system of integrated social services, for each of the fiscal years 2001 and 2002.’’; graph is the ratio of the amount appro- educational services, juvenile services, and and priated under section 117 for the fiscal year substance abuse services that, together with (2) in subsection (b)(2), by striking ‘‘section for which the allotment is being made to the health and mental health services, will be 505’’ and inserting ‘‘sections 505 and 1971’’. amount appropriated under such section for provided in order for such children to receive SEC. 205. DETERMINATION OF ALLOTMENT. fiscal year 1995. care appropriate for their multiple needs Section 1918(b) of the Public Health Serv- ‘‘(D) If the total amount appropriated for a (such system to include services provided ice Act (42 U.S.C. 300x–7(b)) is amended to fiscal year is at least $25,000,000, the Sec- under the Individuals with Disabilities Edu- read as follows: retary shall make an allotment in accord- cation Act); ‘‘(b) MINIMUM ALLOTMENTS FOR STATES.— ance with subparagraph (A) to the eligible ‘‘(B) provides that the grant under section With respect to fiscal year 2000, and subse- system serving the American Indian consor- 1911 for the fiscal year involved will not be quent fiscal years, the amount of the allot- tium.’’. expended to provide any service under such ment of a State under section 1911 shall not (e) TECHNICAL AMENDMENTS.—Section system other than comprehensive commu- be less than the amount the State received 112(a) of the Protection and Advocacy for In- nity mental health services; and under such section for fiscal year 1998.’’. dividuals with Mental Illness Act (as amend- ‘‘(C) provides for the establishment of a de- SEC. 206. PROTECTION AND ADVOCACY FOR MEN- ed by subsection (a)) (42 U.S.C. 10822(a)) is fined geographic area for the provision of the TALLY ILL INDIVIDUALS ACT OF amended— services of such system. 1986. (1) in paragraph (1)(B), by striking ‘‘Trust ‘‘(4) TARGETED SERVICES TO RURAL AND (a) SHORT TITLE.—The first section of the Territory of the Pacific Islands’’ and insert- HOMELESS POPULATIONS.—The plan describes Protection and Advocacy for Mentally Ill In- ing ‘‘Marshall Islands, the Federated States the State’s outreach to and services for indi- dividuals Act of 1986 (Public Law 99–319) is of Micronesia, the Republic of Palau’’; and viduals who are homeless and how commu- amended to read as follows: (2) by striking paragraph (3). nity-based services will be provided to indi- ‘‘SECTION 1. SHORT TITLE. (f) REAUTHORIZATION.—Section 117 of the viduals residing in rural areas. ‘‘This Act may be cited as the ‘Protection Protection and Advocacy for Individuals ‘‘(5) MANAGEMENT SYSTEMS.—The plan de- and Advocacy for Individuals with Mental with Mental Illness Act (as amended by sub- scribes the financial resources, staffing and Illness Act’.’’. section (a)) (42 U.S.C. 10827) is amended by training for mental health providers that is (b) DEFINITIONS.—Section 102 of the Protec- striking ‘‘1995’’ and inserting ‘‘2002’’. necessary to implement the plan, and pro- tion and Advocacy for Individuals with Men- SEC. 207. REQUIREMENT RELATING TO THE vides for the training of providers of emer- tal Illness Act (as amended by subsection (a)) RIGHTS OF RESIDENTS OF CERTAIN gency health services regarding mental (42 U.S.C. 10802) is amended— FACILITIES. health. The plan further describes the man- (1) in paragraph (4)— Title V of the Public Health Service Act ner in which the State intends to expend the (A) in the matter preceding subparagraph (42 U.S.C. 290aa et seq.) is amended by adding grant under section 1911 for the fiscal year (A), by inserting ‘‘, except as provided in sec- at the end the following: involved. tion 104(d),’’ after ‘‘means’’; ‘‘PART H—REQUIREMENT RELATING TO Except as provided for in paragraph (3), the (B) in subparagraph (B)— THE RIGHTS OF RESIDENTS OF CER- State plan shall contain the information re- (i) by striking ‘‘(i)’’ who’’ and inserting TAIN FACILITIES quired under this subsection with respect to ‘‘(i)(I) who’’; both adults with serious mental illness and ‘‘SEC. 591. REQUIREMENT RELATING TO THE (ii) by redesignating clauses (ii) and (iii) as RIGHTS OF RESIDENTS OF CERTAIN children with serious emotional disturb- subclauses (II) and (III); FACILITIES. ance.’’. (iii) in subclause (III) (as so redesignated), ‘‘(a) IN GENERAL.—A public or private gen- (b) REVIEW OF PLANNING COUNCIL OF by striking the period and inserting ‘‘; or’’; eral hospital, nursing facility, intermediate STATE’S REPORT.—Section 1915(a) of the Pub- care facility, residential treatment center, lic Health Service Act (42 U.S.C. 300x–4(a)) is and amended— (iv) by adding at the end the following: or other health care facility, that receives (1) in paragraph (1), by inserting ‘‘and the ‘‘(ii) who satisfies the requirements of sub- support in any form from any program sup- report of the State under section 1942(a) con- paragraph (A) and lives in a community set- ported in whole or in part with funds appro- cerning the preceding fiscal year’’ after ‘‘to ting, including their own home.’’; and priated to any Federal department or agency the grant’’; and (2) by adding at the end the following: shall protect and promote the rights of each (2) in paragraph (2), by inserting before the ‘‘(8) The term ‘American Indian consor- resident of the facility, including the right period ‘‘and any comments concerning the tium’ means a consortium established under to be free from physical or mental abuse, annual report’’. part C of the Developmental Disabilities As- corporal punishment, and any restraints or (c) MAINTENANCE OF EFFORT.—Section sistance and Bill of Rights Act (42 U.S.C. 6042 involuntary seclusions imposed for purposes 1915(b) of the Public Health Service Act (42 et seq.).’’. of discipline or convenience. U.S.C. 300x–4(b)) is amended— (c) USE OF ALLOTMENTS.—Section 104 of the ‘‘(b) REQUIREMENTS.—Restraints and seclu- (1) by redesignating paragraphs (2) and (3) Protection and Advocacy for Individuals sion may only be imposed on a resident of a as paragraphs (3) and (4), respectively; and with Mental Illness Act (as amended by sub- facility described in subsection (a) if— (2) by inserting after paragraph (1), the fol- section (a)) (42 U.S.C. 10804) is amended by ‘‘(1) the restraints or seclusion are imposed lowing: adding at the end the following: to ensure the physical safety of the resident, ‘‘(2) EXCLUSION OF CERTAIN FUNDS.—The ‘‘(d) The definition of ‘individual with a a staff member, or others; and Secretary may exclude from the aggregate mental illness’ contained in section ‘‘(2) the restraints or seclusion are imposed State expenditures under subsection (a), 102(4)(B)(iii) shall apply, and thus an eligible only upon the written order of a physician, funds appropriated to the principle agency system may use its allotment under this or other licensed independent practitioner for authorized activities which are of a non- title to provide representation to such indi- permitted by the State and the facility to recurring nature and for a specific purpose.’’. viduals, only if the total allotment under order such restraint or seclusion, that speci- (d) APPLICATION FOR GRANTS.—Section this title for any fiscal year is $30,000,000 or fies the duration and circumstances under 1917(a)(1) of the Public Health Service Act (42 more, and in such case, an eligible system which the restraints are to be used (except in U.S.C. 300x–6(a)(1)) is amended to read as fol- must give priority to representing persons emergency circumstances specified by the lows: with mental illness as defined in subpara- Secretary until such an order could reason- ‘‘(1) the plan is received by the Secretary graphs (A) and (B)(i) of section 102(4).’’. ably be obtained). not later than September 1 of the fiscal year (d) MINIMUM AMOUNT.—Paragraph (2) of ‘‘(c) DEFINITIONS.—In this section: prior to the fiscal year for which a State is section 112(a) of the Protection and Advo- ‘‘(1) RESTRAINTS.—The term ‘restraints’ seeking funds, and the report from the pre- cacy for Individuals with Mental Illness Act means— vious fiscal year as required under section (as amended by subsection (a)) (42 U.S.C. ‘‘(A) any physical restraint that is a me- 1941 is received by December 1 of the fiscal 10822(a)(2)) is amended to read as follows: chanical or personal restriction that immo- year of the grant;’’. ‘‘(2)(A) The minimum amount of the allot- bilizes or reduces the ability of an individual (e) WAIVERS FOR TERRITORIES.—Section ment of an eligible system shall be the prod- to move his or her arms, legs, or head freely, 1917(b) of the Public Health Service Act (42 uct (rounded to the nearest $100) of the ap- not including devices, such as orthopedically

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00130 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.054 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14001 prescribed devices, surgical dressings or ban- there are authorized to be appropriated such section (a)(1) and shall disseminate the find- dages, protective helmets, or any other sums as may be necessary to fiscal years 2000 ings with respect to each such evaluation to methods that involves the physical holding through 2002.’’. appropriate public and private entities. of a resident for the purpose of conducting (b) PRIORITY SUBSTANCE ABUSE TREAT- ‘‘(e) INFORMATION AND EDUCATION.—The routine physical examinations or tests or to MENT.—Section 509 of the Public Health Secretary shall establish comprehensive in- protect the resident from falling out of bed Service Act (42 U.S.C. 290bb–1) is amended to formation and education programs to dis- or to permit the resident to participate in read as follows: seminate and apply the findings of the activities without the risk of physical harm ‘‘SEC. 509. PRIORITY SUBSTANCE ABUSE TREAT- knowledge development and application, to the resident; and MENT NEEDS OF REGIONAL AND NA- training and technical assistance programs, ‘‘(B) a drug or medication that is used as a TIONAL SIGNIFICANCE. and targeted capacity response programs restraint to control behavior or restrict the ‘‘(a) PROJECTS.—The Secretary shall ad- under this section to the general public, to dress priority substance abuse treatment resident’s freedom of movement that is not a health professionals and other interested needs of regional and national significance standard treatment for the resident’s med- groups. The Secretary shall make every ef- (as determined under subsection (b)) through ical or psychiatric condition. fort to provide linkages between the findings the provision of or through assistance for— ‘‘(2) SECLUSION.—The term ‘seclusion’ of supported projects and State agencies re- ‘‘(1) knowledge development and applica- means any separation of the resident from sponsible for carrying out substance abuse tion projects for treatment and rehabilita- the general population of the facility that prevention and treatment programs. tion and the conduct or support of evalua- prevents the resident from returning to such ‘‘(f) AUTHORIZATION OF APPROPRIATION.— tions of such projects; population if he or she desires. There are authorized to be appropriated to ‘‘(2) training and technical assistance; and carry out this section, $300,000,000 for fiscal ‘‘SEC. 592. REPORTING REQUIREMENT. ‘‘(3) targeted capacity response programs. ‘‘(a) IN GENERAL.— Each facility to which year 2000 and such sums as may be necessary the Protection and Advocacy for Mentally Ill The Secretary may carry out the activities for each of the fiscal years 2001 and 2002.’’. Individuals Act of 1986 applies shall notify described in this section directly or through (c) CONFORMING AMENDMENTS.—The fol- the appropriate agency, as determined by the grants, contracts, or cooperative agreements lowing sections of the Public Health Service Secretary, of each death that occurs at each with States, political subdivisions of States, Act are repealed: such facility while a patient is restrained or Indian tribes and tribal organizations, other (1) Section 510 (42 U.S.C. 290bb–3). in seclusion, of each death occurring within public or nonprofit private entities. (2) Section 511 (42 U.S.C. 290bb–4). ‘‘(b) PRIORITY SUBSTANCE ABUSE TREAT- 24 hours after the patient has been removed (3) Section 512 (42 U.S.C. 290bb–5). MENT NEEDS.— from restraints and seclusion, or where it is (4) Section 571 (42 U.S.C. 290gg). ‘‘(1) IN GENERAL.—Priority substance abuse reasonable to assume that a patient’s death SEC. 302. PRIORITY SUBSTANCE ABUSE PREVEN- treatment needs of regional and national sig- is a result of such seclusion or restraint. A TION NEEDS OF REGIONAL AND NA- nificance shall be determined by the Sec- notification under this section shall include TIONAL SIGNIFICANCE. retary after consultation with States and the name of the resident and shall be pro- (a) IN GENERAL.—Section 516 of the Public vided not later than 7 days after the date of other interested groups. The Secretary shall Health Service Act (42 U.S.C. 290bb–1) is the death of the individual involved. meet with the States and interested groups amended to read as follows: ‘‘(b) FACILITY.—In this section, the term on an annual basis to discuss program prior- ‘‘SEC. 516. PRIORITY SUBSTANCE ABUSE PREVEN- ‘facility’ has the meaning given the term ‘fa- ities. TION NEEDS OF REGIONAL AND NA- cilities’ in section 102(3) of the Protection ‘‘(2) SPECIAL CONSIDERATION.—In developing TIONAL SIGNIFICANCE. ‘‘(a) PROJECTS.—The Secretary shall ad- and Advocacy for Mentally Ill Individuals program priorities under paragraph (1), the Act of 1986 (42 U.S.C. 10802(3)).’’. Secretary, in conjunction with the Director dress priority substance abuse prevention needs of regional and national significance ‘‘SEC. 593. REGULATIONS AND ENFORCEMENT. of the Center for Substance Abuse Treat- (as determined under subsection (b)) through ‘‘(a) TRAINING.—Not later than 1 year after ment, the Director of the Center for Mental the provision of or through assistance for— the date of enactment of this part, the Sec- Health Services, and the Administrator of ‘‘(1) knowledge development and applica- retary, after consultation with appropriate the Health Resources and Services Adminis- State and local protection and advocacy or- tration, shall give special consideration to tion projects for prevention and the conduct ganizations, physicians, facilities, and other promoting the integration of substance or support of evaluations of such projects; health care professionals and patients, shall abuse treatment services into primary ‘‘(2) training and technical assistance; and promulgate regulations that require facili- health care systems. ‘‘(3) targeted capacity response programs. ties to which the Protection and Advocacy ‘‘(c) REQUIREMENTS.— The Secretary may carry out the activities for Mentally Ill Individuals Act of 1986 (42 ‘‘(1) IN GENERAL.—Recipients of grants, described in this section directly or through U.S.C. 10801 et seq.) applies, to meet the re- contracts, or cooperative agreements under grants, contracts, or cooperative agreements quirements of subsection (b). this section shall comply with information with States, political subdivisions of States, ‘‘(b) REQUIREMENTS.—The regulations pro- and application requirements determined ap- Indian tribes and tribal organizations, or mulgated under subsection (a) shall require propriate by the Secretary. other public or nonprofit private entities. that— ‘‘(2) DURATION OF AWARD.—With respect to ‘‘(b) PRIORITY SUBSTANCE ABUSE PREVEN- ‘‘(1) facilities described in subsection (a) a grant, contract, or cooperative agreement TION NEEDS.— ensure that there is an adequate number of awarded under this section, the period dur- ‘‘(1) IN GENERAL.—Priority substance abuse qualified professional and supportive staff to ing which payments under such award are prevention needs of regional and national evaluate patients, formulate written individ- made to the recipient may not exceed 5 significance shall be determined by the Sec- ualized, comprehensive treatment plans, and years. retary in consultation with the States and to provide active treatment measures; ‘‘(3) MATCHING FUNDS.—The Secretary may, other interested groups. The Secretary shall ‘‘(2) appropriate training be provided for for projects carried out under subsection (a), meet with the States and interested groups the staff of such facilities in the use of re- require that entities that apply for grants, on an annual basis to discuss program prior- straints and any alternatives to the use of contracts, or cooperative agreements under ities. restraints; and that project provide non-Federal matching ‘‘(2) SPECIAL CONSIDERATION.—In developing ‘‘(3) such facilities provide complete and funds, as determined appropriate by the Sec- program priorities under paragraph (1), the accurate notification of deaths, as required retary, to ensure the institutional commit- Secretary shall give special consideration under section 592(a). ment of the entity to the projects funded to— ‘‘(c) ENFORCEMENT.—A facility to which under the grant, contract, or cooperative ‘‘(A) applying the most promising strate- this part applies that fails to comply with agreement. Such non-Federal matching gies and research-based primary prevention any requirement of this part, including a funds may be provided directly or through approaches; and failure to provide appropriate training, shall donations from public or private entities and ‘‘(B) promoting the integration of sub- not be eligible for participation in any pro- may be in cash or in kind, fairly evaluated, stance abuse prevention information and ac- gram supported in whole or in part by funds including plant, equipment, or services. tivities into primary health care systems. appropriated to any Federal department or ‘‘(4) MAINTENANCE OF EFFORT.—With re- ‘‘(c) REQUIREMENTS.— agency.’’. spect to activities for which a grant, con- ‘‘(1) IN GENERAL.—Recipients of grants, TITLE III—PROVISIONS RELATING TO tract, or cooperative agreement is awarded contracts, and cooperative agreements under SUBSTANCE ABUSE under this section, the Secretary may re- this section shall comply with information and application requirements determined ap- SEC. 301. PRIORITY SUBSTANCE ABUSE TREAT- quire that recipients for specific projects MENT NEEDS OF REGIONAL AND NA- under subsection (a) agree to maintain ex- propriate by the Secretary. TIONAL SIGNIFICANCE. penditures of non-Federal amounts for such ‘‘(2) DURATION OF AWARD.—With respect to (a) RESIDENTIAL TREATMENT PROGRAMS FOR activities at a level that is not less than the a grant, contract, or cooperative agreement PREGNANT AND POSTPARTUM WOMEN.—Sec- level of such expenditures maintained by the awarded under this section, the period dur- tion 508(r) of the Public Health Service Act entity for the fiscal year preceding the fiscal ing which payments under such award are (42 U.S.C. 290bb-1(r)) is amended to read as year for which the entity receives such a made to the recipient may not exceed 5 follows: grant, contract, or cooperative agreement. years. ‘‘(r) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(d) EVALUATION.—The Secretary shall ‘‘(3) MATCHING FUNDS.—The Secretary may, For the purpose of carrying out this section, evaluate each project carried out under sub- for projects carried out under subsection (a),

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00131 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.054 pfrm12 PsN: S04PT1 S14002 CONGRESSIONAL RECORD — SENATE November 4, 1999 require that entities that apply for grants, ‘‘(1) the application is received by the Sec- amount the State received under such sec- contracts, or cooperative agreements under retary not later than October 1 of the fiscal tion for the previous fiscal year increased by that project provide non-Federal matching year for which the State is seeking funds;’’. an amount equal to 30.65 percent of the per- funds, as determined appropriate by the Sec- (e) WAIVER FOR TERRITORIES.—Section centage by which the aggregate amount al- retary, to ensure the institutional commit- 1932(c) of the Public Health Service Act (42 lotted to all States for such fiscal year ex- ment of the entity to the projects funded U.S.C. 300x–32(c)) is amended by striking ceeds the aggregate amount allotted to all under the grant, contract, or cooperative ‘‘whose allotment under section 1921 for the States for the previous fiscal year. agreement. Such non-Federal matching fiscal year is the amount specified in section ‘‘(2) LIMITATIONS.— funds may be provided directly or through 1933(c)(2)(B)’’ and inserting ‘‘except Puerto ‘‘(A) IN GENERAL.—Except as provided in donations from public or private entities and Rico’’. subparagraph (B), a State shall not receive may be in cash or in kind, fairly evaluated, (f) WAIVER AUTHORITY FOR CERTAIN RE- an allotment under section 1921 for a fiscal including plant, equipment, or services. QUIREMENTS.— year in an amount that is less than an ‘‘(4) MAINTENANCE OF EFFORT.—With re- (1) IN GENERAL.—Section 1932 of the Public amount equal to 0.375 percent of the amount spect to activities for which a grant, con- Health Service Act (42 U.S.C. 300x–32) is appropriated under section 1935(a) for such tract, or cooperative agreement is awarded amended by adding at the end the following: fiscal year. under this section, the Secretary may re- ‘‘(e) WAIVER AUTHORITY FOR CERTAIN RE- ‘‘(B) EXCEPTION.—In applying subparagraph quire that recipients for specific projects QUIREMENTS.— (A), the Secretary shall ensure that no State under subsection (a) agree to maintain ex- ‘‘(1) IN GENERAL.—Upon the request of a receives an increase in its allotment under penditures of non-Federal amounts for such State, the Secretary may waive the require- section 1921 for a fiscal year (as compared to activities at a level that is not less than the ments of all or part of the sections described the amount allotted to the State in the prior level of such expenditures maintained by the in paragraph (2) using objective criteria es- fiscal year) that is in excess of an amount entity for the fiscal year preceding the fiscal tablished by the Secretary by regulation equal to 300 percent of the percentage by year for which the entity receives such a after consultation with the States and other which the amount appropriated under sec- grant, contract, or cooperative agreement. interested parties including consumers and tion 1935(a) for such fiscal year exceeds the ‘‘(d) EVALUATION.—The Secretary shall providers. amount appropriated for the prior fiscal evaluate each project carried out under sub- ‘‘(2) SECTIONS.—The sections described in year. section (a)(1) and shall disseminate the find- paragraph (1) are sections 1922(c), 1923, 1924 ‘‘(3) DECREASE IN OR EQUAL APPROPRIA- ings with respect to each such evaluation to and 1928. TIONS.—If the amount appropriated under appropriate public and private entities. ‘‘(3) DATE CERTAIN FOR ACTING UPON RE- section 1935(a) for a fiscal year is equal to or ‘‘(e) INFORMATION AND EDUCATION.—The QUEST.—The Secretary shall approve or deny less than the amount appropriated under Secretary shall establish comprehensive in- a request for a waiver under paragraph (1) such section for the prior fiscal year, the formation and education programs to dis- and inform the State of that decision not amount of the State allotment under section seminate the findings of the knowledge de- later than 120 days after the date on which 1921 shall be equal to the amount that the velopment and application, training and the request and all the information needed State received under section 1921 in the prior technical assistance programs, and targeted to support the request are submitted. fiscal year decreased by the percentage by capacity response programs under this sec- ‘‘(4) ANNUAL REPORTING REQUIREMENT.—The which the amount appropriated for such fis- tion to the general public and to health pro- Secretary shall annually report to the gen- cal year is less than the amount appro- fessionals. The Secretary shall make every eral public on the States that receive a waiv- priated or such section for the prior fiscal effort to provide linkages between the find- er under this subsection.’’. year.’’. ings of supported projects and State agencies (2) CONFORMING AMENDMENTS.—Effective SEC. 305. NONDISCRIMINATION AND INSTITU- responsible for carrying out substance abuse upon the publication of the regulations de- TIONAL SAFEGUARDS FOR RELI- prevention and treatment programs. veloped in accordance with section 1932(e)(1) GIOUS PROVIDERS. ‘‘(f) AUTHORIZATION OF APPROPRIATION.— of the Public Health Service Act (42 U.S.C. Subpart III of part B of title XIX of the There are authorized to be appropriated to 300x–32(d))— Public Health Service Act (42 U.S.C. 300x–51 carry out this section, $300,000,000 for fiscal (A) section 1922(c) of the Public Health et seq.) is amended by adding at the end the year 2000, and such sums as may be necessary Service Act (42 U.S.C. 300x–22(c)) is amended following: for each of the fiscal years 2001 and 2002.’’. by— ‘‘SEC. 1955. SERVICES PROVIDED BY NON- (b) CONFORMING AMENDMENTS.—Section 518 (i) striking paragraph (2); and GOVERNMENTAL ORGANIZATIONS. of the Public Health Service Act (42 U.S.C. (ii) redesignating paragraph (3) as para- ‘‘(a) PURPOSES.—The purposes of this sec- 290bb–24) is repealed. graph (2); and tion are— SEC. 303. SUBSTANCE ABUSE PREVENTION AND (B) section 1928(d) of the Public Health ‘‘(1) to prohibit discrimination against TREATMENT PERFORMANCE PART- Service Act (42 U.S.C. 300x–28(d)) is repealed. NERSHIP BLOCK GRANT. nongovernmental organizations and certain (g) AUTHORIZATION OF APPROPRIATION.— (a) ALLOCATION REGARDING ALCOHOL AND individuals on the basis of religion in the dis- Section 1935 of the Public Health Service Act OTHER DRUGS.—Section 1922 of the Public tribution of government funds to provide (42 U.S.C. 300x–35) is amended— Health Service Act (42 U.S.C. 300x–22) is substance abuse services under this title and (1) in subsection (a), by striking amended by— title V, and the receipt of services under ‘‘$1,500,000,000’’ and all that follows through (1) striking subsection (a); and such titles; and the end and inserting ‘‘$2,000,000,000 for fiscal (2) redesignating subsections (b) and (c) as ‘‘(2) to allow the organizations to accept year 2000, and such sums as may be necessary subsections (a) and (b). the funds to provide the services to the indi- for each of the fiscal years 2001 and 2002.’’; (b) GROUP HOMES FOR RECOVERING SUB- viduals without impairing the religious char- (2) in subsection (b)(1), by striking ‘‘section STANCE ABUSERS.—Section 1925(a) of the Pub- acter of the organizations or the religious 505’’ and inserting ‘‘sections 505 and 1971’’; lic Health Service Act (42 U.S.C. 300x–25(a)) freedom of the individuals. (3) in subsection (b)(2), by striking is amended by striking ‘‘For fiscal year 1993’’ ‘‘(b) RELIGIOUS ORGANIZATIONS INCLUDED AS ‘‘1949(a)’’ and inserting ‘‘1948(a)’’; and and all that follows through the colon and NONGOVERNMENTAL PROVIDERS.— (4) in subsection (b), by adding at the end inserting the following: ‘‘A State, using ‘‘(1) IN GENERAL.—A State may administer the following: funds available under section 1921, may es- and provide substance abuse services under ‘‘(3) CORE DATA SET.—A State that receives tablish and maintain the ongoing operation any program under this title or title V a new grant, contract, or cooperative agree- of a revolving fund in accordance with this through grants, contracts, or cooperative ment from amounts available to the Sec- section to support group homes for recov- agreements to provide assistance to bene- retary under paragraph (1), for the purposes ering substance abusers as follows:’’. ficiaries under such titles with nongovern- of improving the data collection, analysis (c) MAINTENANCE OF EFFORT.—Section 1930 mental organizations. of the Public Health Service Act (42 U.S.C. and reporting capabilities of the State, shall ‘‘(2) REQUIREMENT.—A State that elects to 300x–30) is amended— be required, as a condition of receipt of utilize nongovernmental organizations as (1) by redesignating subsections (b) and (c) funds, to collect, analyze, and report to the provided for under paragraph (1) shall con- as subsections (c) and (d) respectively; and Secretary for each fiscal year subsequent to sider, on the same basis as other nongovern- (2) by inserting after subsection (a), the receiving such funds a core data set to be de- mental organizations, religious organiza- following: termined by the Secretary in conjunction tions to provide services under substance ‘‘(b) EXCLUSION OF CERTAIN FUNDS.—The with the States.’’. abuse programs under this title or title V, so Secretary may exclude from the aggregate SEC. 304. DETERMINATION OF ALLOTMENTS. long as the programs under such titles are State expenditures under subsection (a), Section 1933(b) of the Public Health Serv- implemented in a manner consistent with funds appropriated to the principle agency ice Act (42 U.S.C. 300x–33(b)) is amended to the Establishment Clause of the first amend- for authorized activities which are of a non- read as follows: ment to the Constitution. Neither the Fed- recurring nature and for a specific purpose.’’. ‘‘(b) MINIMUM ALLOTMENTS FOR STATES.— eral Government nor a State or local govern- (d) APPLICATIONS FOR GRANTS.—Section ‘‘(1) IN GENERAL.—With respect to fiscal ment receiving funds under such programs 1932(a)(1) of the Public Health Service Act (42 year 2000, and each subsequent fiscal year, shall discriminate against an organization U.S.C. 300x–32(a)(1)) is amended to read as the amount of the allotment of a State under that provides services under, or applies to follows: section 1921 shall not be less than the provide services under, such programs, on

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the basis that the organization has a reli- ‘‘(2) LIMITED AUDIT.—Such organization tion to the Secretary at such time, in such gious character. shall segregate government funds provided manner, and accompanied by such informa- ‘‘(c) RELIGIOUS CHARACTER AND INDEPEND- under such substance abuse program into a tion as the Secretary may reasonably re- ENCE.— separate account. Only the government quire. ‘‘(1) IN GENERAL.—A religious organization funds shall be subject to audit by the govern- ‘‘(e) EVALUATION.—An entity that receives that provides services under any substance ment. a grant, contract, or cooperative agreement abuse program under this title or title V ‘‘(h) COMPLIANCE.—Any party that seeks to under subsection (a) shall submit, in the ap- shall retain its independence from Federal, enforce such party’s rights under this sec- plication for such grant, a plan for the eval- State, and local governments, including such tion may assert a civil action for injunctive uation of any project undertaken with funds organization’s control over the definition, relief exclusively in an appropriate Federal provided under this section. Such entity development, practice, and expression of its or State court against the entity, agency or shall provide the Secretary with periodic religious beliefs. official that allegedly commits such viola- evaluations of the progress of such project ‘‘(2) ADDITIONAL SAFEGUARDS.—Neither the tion. and such evaluation at the completion of Federal Government nor a State or local ‘‘(i) LIMITATIONS ON USE OF FUNDS FOR CER- such project as the Secretary determines to government shall require a religious TAIN PURPOSES.—No funds provided through be appropriate. The final evaluation sub- organization— a grant or contract to a religious organiza- mitted by such entity shall include a rec- ‘‘(A) to alter its form of internal govern- tion to provide services under any substance ommendation as to whether such project ance; or abuse program under this title or title V shall continue. ‘‘(B) to remove religious art, icons, scrip- shall be expended for sectarian worship, in- ‘‘(f) REPORT.—Not later than 3 years after ture, or other symbols; struction, or proselytization. the date of enactment of this section and an- in order to be eligible to provide services ‘‘(j) EFFECT ON STATE AND LOCAL FUNDS.— nually thereafter, the Secretary shall pre- under any substance abuse program under If a State or local government contributes pare and submit, to the Committee on this title or title V. State or local funds to carry out any sub- Health, Education, Labor, and Pensions of ‘‘(d) EMPLOYMENT PRACTICES.— stance abuse program under this title or the Senate, a report describing the services ‘‘(1) SUBSTANCE ABUSE.—A religious or- title V, the State or local government may provided pursuant to this section. ganization that provides services under any segregate the State or local funds from the ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— substance abuse program under this title or Federal funds provided to carry out the pro- There are authorized to be appropriated to title V may require that its employees program or may commingle the State or local carry out this section, $15,000,000 for fiscal viding services under such program adhere to funds with the Federal funds. If the State or year 2000, and such sums as may be necessary rules forbidding the use of drugs or alcohol. local government commingles the State or for fiscal years 2001 and 2002. ‘‘(2) TITLE VII EXEMPTION.—The exemption local funds, the provisions of this section ‘‘SEC. 545. ESTABLISHMENT OF COMMISSION. of a religious organization provided under shall apply to the commingled funds in the ‘‘(a) IN GENERAL.—There is established a same manner, and to the same extent, as the section 702 or 703(e)(2) of the Civil Rights Act commission to be known as the Commission provisions apply to the Federal funds. of 1964 (42 U.S.C. 2000e–1, 2000e–2(e)(2)) regard- on Indian and Native Alaskan Health Care ‘‘(k) TREATMENT OF INTERMEDIATE CON- ing employment practices shall not be af- that shall examine the health concerns of In- TRACTORS.—If a nongovernmental organiza- fected by the religious organization’s provi- dians and Native Alaskans who reside on res- tion (referred to in this subsection as an ‘in- sion of services under, or receipt of funds ervations and tribal lands (hereafter in this termediate organization’), acting under a from, any substance abuse program under section referred to as the ‘Commission’). this title or title V. contract or other agreement with the Fed- ‘‘(b) MEMBERSHIP.— ‘‘(e) RIGHTS OF BENEFICIARIES OF ASSIST- eral Government or a State or local govern- ‘‘(1) IN GENERAL.—The Commission estab- ANCE.— ment, is given the authority under the con- lished under subsection (a) shall consist of— ‘‘(1) IN GENERAL.—If an individual de- tract or agreement to select nongovern- ‘‘(A) the Secretary; scribed in paragraph (3) has an objection to mental organizations to provide services ‘‘(B) 15 members who are experts in the the religious character of the organization under any substance abuse program under health care field and issues that the Commis- from which the individual receives, or would this title or title V, the intermediate organi- sion is established to examine; and receive, services funded under any substance zation shall have the same duties under this ‘‘(C) the Director of the Indian Health abuse program under this title or title V, the section as the government but shall retain Service and the Commissioner of Indian Af- appropriate Federal, State, or local govern- all other rights of a nongovernmental orga- fairs, who shall be nonvoting members. mental entity shall provide to such indi- nization under this section.’’. ‘‘(2) APPOINTING AUTHORITY.—Of the 15 vidual (if otherwise eligible for such serv- SEC. 306. ALCOHOL AND DRUG PREVENTION OR members of the Commission described in ices) within a reasonable period of time after TREATMENT SERVICES FOR INDIANS paragraph (1)(B)— the date of such objection, services that— AND NATIVE ALASKANS. ‘‘(A) 2 shall be appointed by the Speaker of ‘‘(A) are from an alternative provider that Part D of title V of the Public Health Serv- the House of Representatives; is accessible to the individual; and ice Act (42 U.S.C. 290dd et seq.) is amended ‘‘(B) 2 shall be appointed by the Minority ‘‘(B) have a value that is not less than the by adding at the end the following: Leader of the House of Representatives; value of the services that the individual ‘‘SEC. 544. ALCOHOL AND DRUG PREVENTION OR ‘‘(C) 2 shall be appointed by the Majority would have received from such organization. TREATMENT SERVICES FOR INDIANS Leader of the Senate; ‘‘(2) NOTICE.—The appropriate Federal, AND NATIVE ALASKANS. ‘‘(D) 2 shall be appointed by the Minority State, or local governmental entity shall en- ‘‘(a) IN GENERAL.—The Secretary shall Leader of the Senate; and sure that notice is provided to individuals award grants, contracts, or cooperative ‘‘(E) 7 shall be appointed by the Secretary. described in paragraph (3) of the rights of agreements to public and private nonprofit ‘‘(3) LIMITATION.—Not fewer than 10 of the such individuals under this section. entities, including Native Alaskan entities members appointed to the Commission shall ‘‘(3) INDIVIDUAL DESCRIBED.—An individual and Indian tribes and tribal organizations, be Indians or Native Alaskans. described in this paragraph is an individual for the purpose of providing alcohol and drug ‘‘(4) CHAIRPERSON.—The Secretary shall who receives or applies for services under prevention or treatment services for Indians serve as the Chairperson of the Commission. any substance abuse program under this title and Native Alaskans. ‘‘(5) EXPERTS.—The Commission may seek or title V. ‘‘(b) PRIORITY.—In awarding grants, con- ‘‘(f) NONDISCRIMINATION AGAINST BENE- tracts, or cooperative agreements under sub- the expertise of any expert in the health care FICIARIES.—A religious organization pro- section (a), the Secretary shall give priority field to carry out its duties. viding services through a grant, contract, or to applicants that— ‘‘(c) PERIOD OF APPOINTMENT.—Members cooperative agreement under any substance ‘‘(1) propose to provide alcohol and drug shall be appointed for the life of the Commis- abuse program under this title or title V prevention or treatment services on reserva- sion. Any vacancy in the Commission shall shall not discriminate, in carrying out such tions; not affect its powers, but shall be filed in the program, against an individual described in ‘‘(2) propose to employ culturally-appro- same manner as the original appointment. subsection (e)(3) on the basis of religion, a priate approaches, as determined by the Sec- ‘‘(d) DUTIES OF THE COMMISSION.—The Com- religious belief, a refusal to hold a religious retary, in providing such services; and mission shall— belief, or a refusal to actively participate in ‘‘(3) have provided prevention or treatment ‘‘(1) study the health concerns of Indians a religious practice. services to Native Alaskan entities and In- and Native Alaskans; and ‘‘(g) FISCAL ACCOUNTABILITY.— dian tribes and tribal organizations for at ‘‘(2) prepare the reports described in sub- ‘‘(1) IN GENERAL.—Except as provided in least 1 year prior to applying for a grant section (i). paragraph (2), any religious organization under this section. ‘‘(e) POWERS OF THE COMMISSION.— providing services under any substance abuse ‘‘(c) DURATION.—The Secretary shall award ‘‘(1) HEARINGS.—The Commission may hold program under this title or title V shall be grants, contracts, or cooperative agreements such hearings, including hearings on reserva- subject to the same regulations as other non- under subsection (a) for a period not to ex- tions, sit and act at such times and places, governmental organizations to account in ceed 5 years. take such testimony, and receive such infor- accord with generally accepted accounting ‘‘(d) APPLICATION.—An entity desiring a mation as the Commission considers advis- principles for the use of such funds provided grant, contract, or cooperative agreement able to carry out the purpose for which the under such program. under subsection (a) shall submit an applica- Commission was established.

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‘‘(2) INFORMATION FROM FEDERAL AGEN- on reservations, including recommendations contained in this section regarding partici- CIES.—The Commission may secure directly for legislative change. pation of Federal employees and advisory from any Federal department or agency such ‘‘(2) EXCEPTION.—In addition to the report council approval. The circumstances under information as the Commission considers required under paragraph (1), not later than which the Secretary may make such an ex- necessary to carry out the purpose for which 2 years after the date of enactment of the ception shall be made public.’’. the Commission was established. Upon re- Youth Drug and Mental Health Services Act, SEC. 402. ADVISORY COUNCILS. quest of the Chairperson of the Commission, the Secretary shall prepare and submit, to Section 502(e) of the Public Health Service the head of such department or agency shall the Committee on Health, Education, Labor, Act (42 U.S.C. 290aa–1(e)) is amended in the furnish such information to the Commission. and Pensions of the Senate, a report that de- first sentence by striking ‘‘3 times’’ and in- ‘‘(f) COMPENSATION OF MEMBERS.— scribes any alcohol and drug abuse among serting ‘‘2 times’’. ‘‘(1) IN GENERAL.—Except as provided in Indians and Native Alaskans who reside on SEC. 403. GENERAL PROVISIONS FOR THE PER- subparagraph (B), each member of the Com- reservations. FORMANCE PARTNERSHIP BLOCK mission may be compensated at a rate not to ‘‘(j) PERMANENT COMMISSION.—Section 14 of GRANTS. exceed the daily equivalent of the annual the Federal Advisory Committee Act (5 (a) PLANS FOR PERFORMANCE PARTNER- rate of basic pay prescribed for level IV of U.S.C. App.) shall not apply to the Commis- SHIPS.—Section 1949 of the Public Health the Executive Schedule under section 5315 of sion. Service Act (42 U.S.C. 300x–59) is amended as title 5, United States Code, for each day (in- ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.— follows: cluding travel time), during which that There is authorized to be appropriated to ‘‘SEC. 1949. PLANS FOR PERFORMANCE PARTNER- member is engaged in the actual perform- carry out this section $5,000,000 for fiscal SHIPS. ance of the duties of the Commission. year 2000, and such sums as may be necessary ‘‘(a) DEVELOPMENT.—The Secretary in con- ‘‘(2) LIMITATION.—Members of the Commis- for fiscal years 2001 and 2002.’’. junction with States and other interested sion who are officers or employees of the TITLE IV—PROVISIONS RELATING TO groups shall develop separate plans for the United States shall receive no additional pay FLEXIBILITY AND ACCOUNTABILITY programs authorized under subparts I and II on account of their service on the Commis- SEC. 401. GENERAL AUTHORITIES AND PEER RE- for creating more flexibility for States and sion. VIEW. accountability based on outcome and other ‘‘(g) TRAVEL EXPENSES OF MEMBERS.—The (a) GENERAL AUTHORITIES.—Paragraph (1) performance measures. The plans shall each members of the Commission shall be allowed of section 501(e) of the Public Health Service include— travel expenses, including per diem in lieu of Act (42 U.S.C. 290aa(e)) is amended to read as ‘‘(1) a description of the flexibility that subsistence, at rates authorized for employ- follows: would be given to the States under the plan; ees of agencies under section 5703 of title 5, ‘‘(1) IN GENERAL.—There may be in the Ad- ‘‘(2) the common set of performance meas- United States Code, while away from their ministration an Associate Administrator for ures that would be used for accountability, homes or regular places of business in the Alcohol Prevention and Treatment Policy to including measures that would be used for performance of services for the Commission. whom the Administrator may delegate the the program under subpart II for pregnant ‘‘(h) COMMISSION PERSONNEL MATTERS.— functions of promoting, monitoring, and addicts, HIV transmission, tuberculosis, and ‘‘(1) IN GENERAL.—The Secretary, in ac- evaluating service programs for the preven- those with a co-occurring substance abuse cordance with rules established by the Com- tion and treatment of alcoholism and alcohol and mental disorders, and for programs mission, may select and appoint a staff di- abuse within the Center for Substance Abuse under subpart I for children with serious rector and other personnel necessary to en- Prevention, the Center for Substance Abuse emotional disturbance and adults with seri- able the Commission to carry out its duties. Treatment and the Center for Mental Health ous mental illness and for individuals with ‘‘(2) COMPENSATION OF PERSONNEL.—The Services, and coordinating such programs co-occurring mental health and substance Secretary, in accordance with rules estab- among the Centers, and among the Centers abuse disorders; lished by the Commission, may set the and other public and private entities. The ‘‘(3) the definitions for the data elements amount of compensation to be paid to the Associate Administrator also may ensure to be used under the plan; staff director and any other personnel that that alcohol prevention, education, and pol- ‘‘(4) the obstacles to implementation of the serve the Commission. icy strategies are integrated into all pro- plan and the manner in which such obstacles ‘‘(3) DETAIL OF GOVERNMENT EMPLOYEES.— grams of the Centers that address substance would be resolved; Any Federal Government employee may be abuse prevention, education, and policy, and ‘‘(5) the resources needed to implement the detailed to the Commission without reim- that the Center for Substance Abuse Preven- performance partnerships under the plan; bursement, and the detail shall be without tion addresses the Healthy People 2010 goals and interruption or loss of civil service status or and the National Dietary Guidelines of the ‘‘(6) an implementation strategy complete privilege. Department of Health and Human Services with recommendations for any necessary leg- ‘‘(4) CONSULTANT SERVICES.—The Chair- and the Department of Agriculture related islation. person of the Commission is authorized to to alcohol consumption.’’. ‘‘(b) SUBMISSION.—Not later than 2 years procure the temporary and intermittent (b) PEER REVIEW.—Section 504 of the Pub- after the date of enactment of this Act, the services of experts and consultants in ac- lic Health Service (42 U.S.C. 290aa–3) is plans developed under subsection (a) shall be cordance with section 3109 of title 5, United amended as follows: submitted to the Committee on Health, Edu- States Code, at rates not to exceed the daily ‘‘SEC. 504. PEER REVIEW. cation, Labor, and Pensions of the Senate equivalent of the annual rate of basic pay ‘‘(a) IN GENERAL.—The Secretary, after and the Committee on Commerce of the prescribed for level IV of the Executive consultation with the Administrator, shall House of Representatives. Schedule under section 5315 of such title. require appropriate peer review of grants, co- ‘‘(c) INFORMATION.—As the elements of the ‘‘(i) REPORT.— operative agreements, and contracts to be plans described in subsection (a) are devel- ‘‘(1) IN GENERAL.—Not later than 3 years administered through the agency which ex- oped, States are encouraged to provide infor- after the date of enactment of the Youth ceed the simple acquisition threshold as de- mation to the Secretary on a voluntary Drug and Mental Health Services Act, the fined in section 4(11) of the Office of Federal basis. Secretary shall prepare and submit, to the Procurement Policy Act. ‘‘(d) PARTICIPANTS.—The Secretary shall Committee on Health, Education, Labor, and ‘‘(b) MEMBERS.—The members of any peer include among those interested groups that Pensions of the Senate, a report that shall— review group established under subsection participate in the development of the plan ‘‘(A) detail the health problems faced by (a) shall be individuals who by virtue of their consumers of mental health or substance Indians and Native Alaskans who reside on training or experience are eminently quali- abuse services, providers, representatives of reservations; fied to perform the review functions of the political divisions of States, and representa- ‘‘(B) examine and explain the causes of group. Not more than 1⁄4 of the members of tives of racial and ethnic groups including such problems; any such peer review group shall be officers Native Americans.’’. ‘‘(C) describe the health care services or employees of the United States. (b) AVAILABILITY TO STATES OF GRANT PRO- available to Indians and Native Alaskans ‘‘(c) ADVISORY COUNCIL REVIEW.—If the di- GRAMS.—Section 1952 of the Public Health who reside on reservations and the adequacy rect cost of a grant or cooperative agreement Service Act (42 U.S.C. 300x–62) is amended as of such services; (described in subsection (a)) exceeds the sim- follows: ‘‘(D) identify the reasons for the provision ple acquisition threshold as defined by sec- ‘‘SEC. 1952. AVAILABILITY TO STATES OF GRANT of inadequate health care services for Indi- tion 4(11) of the Office of Federal Procure- PAYMENTS. ans and Native Alaskans who reside on res- ment Policy Act, the Secretary may make ‘‘Any amounts paid to a State for a fiscal ervations, including the availability of re- such a grant or cooperative agreement only year under section 1911 or 1921 shall be avail- sources; if such grant or cooperative agreement is able for obligation and expenditure until the ‘‘(E) develop measures for tracking the recommended— end of the fiscal year following the fiscal health status of Indians and Native Ameri- ‘‘(1) after peer review required under sub- year for which the amounts were paid.’’. cans who reside on reservations; and section (a); and SEC. 404. DATA INFRASTRUCTURE PROJECTS. ‘‘(F) make recommendations for improve- ‘‘(2) by the appropriate advisory council. Part C of title XIX of the Public Health ments in the health care services provided ‘‘(d) CONDITIONS.—The Secretary may es- Service Act (42 U.S.C. 300y et seq.) is for Indians and Native Alaskans who reside tablish limited exceptions to the limitations amended—

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00134 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.054 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14005 (1) by striking the headings for part C and bers of such individuals, prepare and submit JOHN H. CHAFEE COASTAL BAR- subpart I and inserting the following: to the Committee on Health, Education, RIER RESOURCES SYSTEM ACT ‘‘PART C—CERTAIN PROGRAMS REGARD- Labor, and Pensions of the Senate and the Committee on Commerce of the House of Mr. GRASSLEY. Mr. President, I ask ING MENTAL HEALTH AND SUBSTANCE unanimous consent that the Senate ABUSE Representatives, a report on prevention and treatment services for individuals who have now proceed to the immediate consid- ‘‘Subpart I—Data Infrastructure eration of S. 1866, introduced earlier Development’’; co-occurring mental illness and substance abuse disorders. today by Senator SMITH of New Hamp- (2) by striking section 1971 (42 U.S.C. 300y) ‘‘(b) REPORT CONTENT.—The report under shire and others. and inserting the following: subsection (a) shall be based on data col- The PRESIDING OFFICER. The ‘‘SEC. 1971. DATA INFRASTRUCTURE DEVELOP- lected from existing Federal and State sur- MENT. clerk will report the bill by title. veys regarding the treatment of co-occurring ‘‘(a) IN GENERAL.—The Secretary may The legislative clerk read as follows: mental illness and substance abuse disorders make grants to, and enter into contracts or A bill (S. 1866) to redesignate the Coastal and shall include— cooperative agreements with States for the Barrier Resources System as the ‘‘John H. ‘‘(1) a summary of the manner in which in- purpose of developing and operating mental Chafee Coastal Barrier Resources System’’. dividuals with co-occurring disorders are re- health or substance abuse data collection, ceiving treatment, including the most up-to- There being no objection, the Senate analysis, and reporting systems with regard date information available regarding the proceeded to consider the bill. to performance measures including capacity, number of children and adults with co-occur- Mr. SMITH of New Hampshire. Mr. process, and outcomes measures. ring mental illness and substance abuse dis- President, this bill would redesignate ‘‘(b) PROJECTS.—The Secretary shall estab- orders and the manner in which funds pro- the Coastal Barrier Resources System lish criteria to ensure that services will be vided under sections 1911 and 1921 are being as the ‘‘John H. Chafee Coastal Barrier available under this section to States that utilized, including the number of such chil- have a fundamental basis for the collection, Resources System.’’ dren and adults served with such funds; analysis, and reporting of mental health and As you all know, my friend, the late ‘‘(2) a summary of improvements necessary substance abuse performance measures and Senator John Chafee, worked tirelessly to ensure that individuals with co-occurring States that do not have such basis. The Sec- to ensure that the natural resources of mental illness and substance abuse disorders retary will establish criteria for determining this nation are protected. I can think receive the services they need; whether a State has a fundamental basis for of no tribute that is more fitting than ‘‘(3) a summary of practices for preventing the collection, analysis, and reporting of substance abuse among individuals who have to rename the Coastal Resources Sys- data. a mental illness and are at risk of having or tem after him. Whenever we discussed ‘‘(c) CONDITION OF RECEIPT OF FUNDS.—As a the Coastal Barrier Resources Act it condition of the receipt of an award under acquiring a substance abuse disorder; and this section a State shall agree to collect, ‘‘(4) a summary of evidenced-based prac- was not unusual for Senator Chafee to analyze, and report to the Secretary within tices for treating individuals with co-occur- comment that ‘‘There are times around 2 years of the date of the award on a core set ring mental illness and substance abuse dis- here that we all do things right, and of performance measures to be determined orders and recommendations for imple- this is one of them.’’ by the Secretary in conjunction with the menting such practices. Senator Chafee is considered the fa- States. ‘‘(c) FUNDS FOR REPORT.—The Secretary ther of the Coastal Barrier Resources ‘‘(d) DURATION OF SUPPORT.—The period may obligate funds to carry out this section Act, and it epitomizes the common with such appropriations as are available.’’. during which payments may be made for a sense approach he took in protecting project under subsection (a) may be not less SEC. 407. SERVICES FOR INDIVIDUALS WITH CO- our environment. When Senator Chafee than 3 years nor more than 5 years. OCCURRING DISORDERS. introduced this legislation in 1990 he ‘‘(e) AUTHORIZATION OF APPROPRIATION.— Subpart III of part B of title XIX of the ‘‘(1) IN GENERAL.—For the purpose of car- Public Health Service Act (42 U.S.C. 300x–51 recognized that the federal government rying out this section, there are authorized et seq.) (as amended by section 305) is further didn’t have the financial resources to to be appropriated such sums as may be nec- amended by adding at the end the following: buy this land, as well as recognizing essary for each of the fiscal years 2000, 2001 ‘‘SEC. 1956. SERVICES FOR INDIVIDUALS WITH the need for Congress to find a unique and 2002. CO-OCCURRING DISORDERS. and different way to protect our sen- ‘‘(2) ALLOCATION.—Of the amounts appro- ‘‘States may use funds available for treat- sitive coastal barriers. priated under paragraph (1) for a fiscal year, ment under sections 1911 and 1921 to treat The Coastal Barrier Resources Act 50 percent shall be expended to support data persons with co-occurring substance abuse does just that. The act prohibits the infrastructure development for mental and mental disorders as long as funds avail- Federal government from subsidizing health and 50 percent shall be expended to able under such sections are used for the pur- support data infrastructure development for flood insurance, and restricts other fed- poses for which they were authorized by law substance abuse.’’. eral expenditures and financial assist- and can be tracked for accounting pur- ance, such as beach replenishment, SEC. 405. REPEAL OF OBSOLETE ADDICT REFER- poses.’’. RAL PROVISIONS. that encourage the development of our (a) REPEAL OF OBSOLETE PUBLIC HEALTH coastal barriers. All to often taxpayers f SERVICE ACT AUTHORITIES.—Part E of title are asked to subsidize the rebuilding of III (42 U.S.C. 257 et seq.) is repealed. homes in these sensitive storm and (b) REPEAL OF OBSOLETE NARA AUTHORI- MEASURE READ THE FIRST flood prone areas not just once, but TIES.—Titles III and IV of the Narcotic Ad- TIME—S.J. RES. 37 dict Rehabilitation Act of 1966 (Public Law two, three, even four times. Restricting 89–793) are repealed. Mr. GRASSLEY. There is a joint res- funding for Federal programs will min- (c) REPEAL OF OBSOLETE TITLE 28 AUTHORI- olution at the desk which was intro- imize loss of human life, reduce waste- TIES.— ful expenditure of Federal funds, and duced earlier by Senator SMITH of New (1) IN GENERAL.—Chapter 175 of title 28, protect the natural resources associ- United States Code, is repealed. Hampshire, and I ask for its first reading. ated with coastal barriers. (2) TABLE OF CONTENTS.—The table of con- As I said last week on the floor, this tents to part VI of title 28, United States The PRESIDING OFFICER. The act is vintage Chafee: balanced, fiscally Code, is amended by striking the items relat- clerk will report the joint resolution prudent, and environmentally protec- ing to chapter 175. by title. tive. SEC. 406. INDIVIDUALS WITH CO-OCCURRING DIS- The legislative clerk read as follows: The Coastal Barrier Resources Sys- ORDERS. The Public Health Service Act is amended A joint resolution (S.J. Res. 37) urging the tem protects approximately 3 million by inserting after section 503 (42 U.S.C. President to negotiate a new base rights acres and 2,500 shoreline miles from de- 290aa–2) the following: agreement with the Government of Panama velopment subsidized by the federal in order for United States Armed Forces to ‘‘SEC. 503A. REPORT ON INDIVIDUALS WITH CO- government. Development of coastal OCCURRING MENTAL ILLNESS AND be stationed in Panama after December 31, barrier land decreases their ability to SUBSTANCE ABUSE DISORDERS. 1999. absorb the force of storms, buffer the ‘‘(a) IN GENERAL.—Not later than 2 years Mr. GRASSLEY. I now ask for its mainland, and provide critical habitat after the date of enactment of this section, second reading, and I object to my own to numerous plant and animal species. the Secretary shall, after consultation with request. organizations representing States, mental The devastating floods of Hurricane health and substance abuse treatment pro- The PRESIDING OFFICER. Under Floyd are yet another reminder of the viders, prevention specialists, individuals re- the rule, the bill will receive its second susceptibility of coastal development ceiving treatment services, and family mem- reading on the next legislative day. to the power of nature.

VerDate 29-OCT-99 06:48 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00135 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.054 pfrm12 PsN: S04PT1 S14006 CONGRESSIONAL RECORD — SENATE November 4, 1999 Senator Chafee was instrumental in former chairman of the Environment Conservation and thrift. Good reauthorizing the legislation in 1990 and Public Works Committee, the late Yankee virtues, characteristic of John and had recently introduced a new re- Senator John Chafee. I commend our Chafee. authorization measure. By renaming new Chairman, Senator SMITH, for con- One more thing. In his eulogy last the Coastal Barrier Resources Act after ceiving of this tribute, and am pleased Saturday, former Senator Danforth Senator Chafee, this legislation honors to join him and others in introducing talked about how John Chafee tried to the invaluable contributions the Sen- the bill. bring people together. ator made to the environment during Over the past week or so, many of us This is yet another example. When his tenure in the Senate. have spoken of the sadness we feel at all the painstaking work was done, the Mr. President, I ask unanimous con- Senator Chafee’s passing. We have spo- Coastal Barrier Resources Act reflected sent that a statement in support of this ken of his contributions to legislative a bipartisan consensus. It was sup- legislation from the Coast Alliance, a debates, and in particular the work he ported by virtually everyone—from the network of more than 500 organizations did to improve our major environ- National Taxpayers Union, to the Red working to protect America’s coastal mental laws, such as the Clean Air Act, Cross, to the major environmental resources, be printed in the RECORD im- the Clean Water Act, and Endangered groups. It was enacted with only four mediately after my remarks. Species Act. dissenting votes in the entire Congress. The PRESIDING OFFICER. Without The bill we are introducing today It brought people together. objection it is so ordered. shows another side of Senator Chafee’s Mr. President, two weeks ago, Sen- (See exhibit 1.) work. He wasn’t just interested in ator John Chafee introduced a bill to Mr. SMITH of New Hampshire. In issues that bring headlines and acco- reauthorize the Coastal Barrier Re- closing I would like to leave you with lades. When he came to work each sources Act. It turned out to be the a quote from President Teddy Roo- morning, he tried to make things bet- very last bill that he introduced. sevelt that Senator Chafee used in 1990 ter, however he could, in ways both The bill that we are introducing when he introduced the bill: large and small. today takes a further step. It names The prosperity of our people depends on The Coastal Barriers Resources Sys- the system that he created, and nur- the energy and intelligence with which our tem was one of those relatively small, tured, the John H. Chafee Coastal Bar- natural resources are used. It is equally clear but significant, accomplishments. Very that these resources are the final basis of na- rier Resources System. tional power and perpetuity. few people have heard about it. But it’s It is a modest, but fitting, tribute. made a difference. I urge my colleagues to support this Mr. CRAPO. Mr. President, I applaud Senator Chafee proposed the Coastal legislation. Senator SMITH, the new chairman of Barriers Resources Act in 1981. It was the Environment and Public Works EXHIBIT 1 enacted into law in 1982 and reauthor- Committee, for this effort on behalf of STATEMENT OF JACQUELINE SAVITZ, EXECU- ized in 1990. the Senate to honor our late friend, TIVE DIRECTOR, COAST ALLIANCE, ON THE The act establishes the Coastal Bar- JOHN CHAFEE COASTAL BARRIER RESOURCES John Chafee. SYSTEM ACT rier Resources System, which com- Although not widely-known,the The Coast Alliance leads a network com- prises about 3 million acres of fragile Coastal Barrier Resources Act (CBRA) posed of over 500 organizations along Amer- coastal habitat covering 2,500 shoreline statute is an important component of ica’s coasts working to protect our priceless miles. Within the system, certain types our national commitment to balancing coastal resources. The Alliance worked with of federal assistance, such as flood in- the needs of our environment, mini- Senator John Chafee to help pass the Coastal surance and funding to replenish mizing risks to human life, and fiscal Barrier Resources Act in 1982 and to expand beaches, is prohibited. If someone responsibility. Being such a careful it in 1990. The Alliance has continuously de- wants to build in one of these areas, balance, the act reflects John Chafee’s fended and built support for the Coastal Bar- such as along a beach that is highly ed- rier Resources System since that time. Coast approach to legislating—fair, delib- Alliance strongly supports this bill to re- ible and in the frequent path of hurri- erate, and environmentally conscious. name the Coastal Barrier Resource System canes, fine. In 1982, the then-chairman of the in Senator Chafee’s honor. But taxpayers will not help foot the Senate Environment and Public Works Senator John Chafee’s work to create and bill. Subcommittee on Environmental Pol- protect the CBRS was unequaled, leaving a In this way, the act promotes two lution, Senator Chafee, became the precious legacy for this and hopefully future simple, common-sense ideas: conserva- leading champion of efforts to address generations. The Coast Alliance commends tion and thrift. the cosponsors of this bill for recognizing problems caused by development on It promotes conservation because highly erodible coastal areas. The Senator Chafee’s work by renaming the Act coastal barriers are very important and and the System. The John H. Chafee Coastal CBRA concept took a unique approach fragile ecosystems. Senator Chafee put Barrier Resource Act should stand as a tes- to protecting these coastal areas, not tament to the vision and perseverance of it this way, at the first hearing on his by instituting a wide range of new fed- Senator Chafee in defense of barrier islands. bill, in Providence in 1982. He said: eral regulations as some suggested, but Prior to his death, Senator Chafee au- These beaches and islands are places of in- by prohibiting certain federal spending thored a bill to reauthorize the Act and incredible beauty that deserve to be protected cluded provisions that would allow for citi- so that they can be open for enjoyment by that could promote development that zens to make voluntary additions to the Sys- everybody, all the citizens of our country. would not otherwise take place. tem. Coast Alliance urges the Environment He continued: Subsequent reauthorization of the and Public Works Committee and the Senate act in 1990 significantly expanded the The grassy dunes, salt marshes, and tidal to make quick work of Chafee’s bill, passing estuaries of the barrier islands [also] provide CBRA System and incorporated ‘‘Oth- it as he wrote it, and as soon as is feasible. essential areas where healthy wildlife popu- erwise Protected Areas’’ into the pro- Finally, Coast Alliance wishes to recognize tective umbrella. Today, the CBRA that Senator Chafee’s appreciation of nature lations can find shelter, food and a tranquil extended beyond barrier islands, and his place to raise their young. System includes 585 units and 274 work to protect our National Wildlife Ref- By discouraging development in OPAs, comprising over 3 million acres uges also should be recognized. Coast Alli- these areas, the Coastal Barrier Re- of coastal barriers. ance urges that the Committee consider add- sources Act promotes conservation. CBRA does not prohibit development ing to its memorial by naming a National The act also promotes thrift. Simply in coastal areas, nor deny private or Wildlife Refuge in Senator John Chafee’s put, it’s a waste of taxpayers’ money to non-federal funds from being spent memory. subsidize development that not only even with the CBRA System. It does, The Board of Directors and staff of the however, protect taxpayer dollars—in- Coast Alliance wish to convey their sym- harms the environment, but that also pathy to the Chafee family, and to the Sen- is likely, at some point, to be swept cluding flood insurance, loans, grants, ator’s colleagues and staff. We thank Chair- out to sea. and assisting infrastructure projects— man Smith and the Environment and Public When he signed the act into law, from being spent on development Work Committee for their leadership on this President Reagan said that it ‘‘will projects in areas where the very insta- bill. save American taxpayers millions of bility of the terrain makes develop- Mr. BAUCUS. Mr. President, this bill dollars.’’ and that’s turned out to be ment a risky proposition. It also dis- is a fitting tribute to our beloved the case. courages development in areas where

VerDate 29-OCT-99 06:38 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00136 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.059 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14007 human life is at increased risk from cleanup of toxic wastes, and for strength- DENYING SAFE HAVENS TO INTER- the full force of coastal weather events. ening of the National Wildlife Refuge Sys- NATIONAL AND WAR CRIMINALS A General Accounting Office report tem and protections for endangered species ACT OF 1999 and their habitats; from 1992 underscores the successes and Mr. GRASSLEY. Mr. President, I ask challenges of the system. Although (4) millions of people of the United States breathe cleaner air, drink cleaner water, and unanimous consent that the Senate CBRA’s restrictions have discouraged enjoy more plentiful outdoor recreation op- now proceed to the consideration of development in some units, saving tax- portunities because of the work of Senator calendar No. 344, S. 1754. payer dollars, other units have seen de- Chafee; The PRESIDING OFFICER. The velopment pressures result in new con- (5) in 1982, Senator Chafee authored and clerk will report the bill by title. struction projects. succeeded in enacting into law the Coastal The legislative clerk read as follows: Barrier Resources Act (16 U.S.C. 3501 et seq.) Senator Chafee’s long leadership on A bill (S. 1754) to deny safe havens to inter- to minimize loss of human life, wasteful ex- this issue has demonstrated the vital- national and war criminals, and for other penditure of Federal revenues, and damage ity of the idea of protecting important purposes. to fish, wildlife, and other natural resources environmental areas without putting associated with the coastal barriers along There being no objection, the Senate restrictions on private actions. As the Atlantic and Gulf Coasts; and proceeded to consider the bill, which Chairman of the successor sub- (6) to reflect the invaluable national con- had been reported from the Committee committee with jurisdiction over tributions made by Senator Chafee during on the Judiciary, with an amendment CBRA and a staunch defender of cre- his service in the Senate, the Coastal Barrier to strike all after the enacting clause ative solutions to problems affecting Resources System should be named in his and inserting in lieu thereof the fol- our environment, I look forward to honor. lowing: helping advance John Chafee’s legacy SEC. 3. REDESIGNATION OF COASTAL BARRIER SECTION 1. SHORT TITLE; TABLE OF CONTENTS. RESOURCES SYSTEM IN HONOR OF by supporting this measure and work- (a) SHORT TITLE.—This Act may be cited as JOHN H. CHAFEE. ing to enact his last introduced bill, the ‘‘Denying Safe Havens to International and S. 1752. (a) IN GENERAL.—The Coastal Barrier Re- War Criminals Act of 1999’’. sources System established by section 4(a) of Mr. President, S. 1752, the Coastal (b) TABLE OF CONTENTS.—The table of con- the Coastal Barrier Resources Act (16 U.S.C. tents of this Act is as follows: Barrier Resources Reauthorization 3503(a)) is redesignated as the ‘‘John H. Sec. 1. Short title; table of contents. Act, was introduced by our late Chair- Chafee Coastal Barrier Resources System’’. man before his passing and would up- TITLE I—DENYING SAFE HAVENS TO (b) REFERENCES.—Any reference in a law, INTERNATIONAL CRIMINALS date the underlying law for the 21st map, regulation, document, paper, or other Sec. 101. Temporary transfer of persons in cus- record of the United States to the Coastal Century by coupling current mapping tody for prosecution. technology with new advances in dig- Barrier Resources System shall be deemed to Sec. 102. Prohibiting fugitives from benefiting ital cartography and by establishing be a reference to the John H. Chafee Coastal from fugitive status. statutory clarity in describing which Barrier Resources System. Sec. 103. Transfer of foreign prisoners to serve areas are covered by the CBRA System. (c) CONFORMING AMENDMENTS.— sentences in country of origin. (1) Section 2(b) of the Coastal Barrier Re- In closing, I commend Senator SMITH Sec. 104. Transit of fugitives for prosecution in sources Act (16 U.S.C. 3501(b)) is amended by foreign countries. and Senator BAUCUS for their commit- striking ‘‘a Coastal Barrier Resources Sys- ment to honoring John Chafee by nam- TITLE II—PROMOTING GLOBAL COOPERA- tem’’ and inserting ‘‘the John H. Chafee TION IN THE FIGHT AGAINST INTER- ing the CBRA System for him. John Coastal Barrier Resources System’’. NATIONAL CRIME Chafee was truly a man of vision with (2) Section 3 of the Coastal Barrier Re- Sec. 201. Streamlined procedures for execution a gentle spirit that made the difficult sources Act (16 U.S.C. 3502) is amended by of MLAT requests. tasks in Congress that much more striking ‘‘Coastal Barrier Resources Sys- Sec. 202. Temporary transfer of incarcerated easy. His presence had a calming influ- tem’’ each place it appears and inserting witnesses. ‘‘John H. Chafee Coastal Barrier Resources ence when so often discussions became TITLE III—ANTI-ATROCITY ALIEN System’’. DEPORTATION overheated in this Chamber or in the (3) Section 4 of the Coastal Barrier Re- Environment and Public Works Com- sources Act (16 U.S.C. 3503) is amended— Sec. 301. Inadmissibility and removability of mittee. No one can replace him, but (A) in the section heading, by striking aliens who have committed acts of others should and will try to follow his ‘‘COASTAL BARRIER RESOURCES SYSTEM’’ torture abroad. Sec. 302. Establishment of the Office of Special and inserting ‘‘JOHN H. CHAFEE COASTAL example. He will be truly missed. Investigations. Mr. GRASSLEY. I ask unanimous BARRIER RESOURCES SYSTEM’’; and consent that the bill be read a third (B) in subsection (a), by striking ‘‘the TITLE I—DENYING SAFE HAVENS TO INTERNATIONAL CRIMINALS time and passed, the motion to recon- Coastal Barrier Resources System’’ and in- SEC. 101. TEMPORARY TRANSFER OF PERSONS IN sider be laid upon the table, and any serting ‘‘the John H. Chafee Coastal Barrier Resources System’’. CUSTODY FOR PROSECUTION. statements relating to this bill be (4) Section 10(c)(2) of the Coastal Barrier (a) IN GENERAL.—Chapter 306 of title 18, printed in the RECORD. Resources Act (16 U.S.C. 3509(c)(2)) is amend- United States Code, is amended by adding at the The PRESIDING OFFICER. Without ed by striking ‘‘Coastal Barrier Resources end the following: objection, it is so ordered. System’’ and inserting ‘‘System’’. ‘‘§ 4116. Temporary transfer for prosecution The bill (S. 1866) was read the third (5) Section 10(c)(2)(B)(i) of the Coastal Bar- ‘‘(a) STATE DEFINED.—In this section, the time and passed, as follows: rier Improvement Act of 1990 (12 U.S.C. term ‘State’ includes a State of the United S. 1866 1441a–3(c)(2)(B)(i)) is amended by striking States, the District of Columbia, and a common- ‘‘Coastal Barrier Resources System’’ and in- Be it enacted by the Senate and House of Rep- wealth, territory, or possession of the United serting ‘‘John H. Chafee Coastal Barrier Re- resentatives of the United States of America in States. sources System’’. ‘‘(b) AUTHORITY OF ATTORNEY GENERAL WITH Congress assembled, (6) Section 12(5) of the Coastal Barrier Im- RESPECT TO TEMPORARY TRANSFERS.— SECTION 1. SHORT TITLE. provement Act of 1990 (16 U.S.C. 3503 note; ‘‘(1) IN GENERAL.—Subject to subsection (d), if This Act may be cited as the ‘‘John H. Public Law 101–591) is amended by striking a person is in pretrial detention or is otherwise Chafee Coastal Barrier Resources System ‘‘Coastal Barrier Resources System’’ and in- being held in custody in a foreign country based Act’’. serting ‘‘John H. Chafee Coastal Barrier Re- upon a violation of the law in that foreign SEC. 2. FINDINGS. sources System’’. country, and that person is found extraditable Congress finds that— (7) Section 1321 of the National Flood In- to the United States by the competent authori- (1) during the past 2 decades, Senator John surance Act of 1968 (42 U.S.C. 4028) is ties of that foreign country while still in the H. Chafee was a leading voice for the protec- amended— pretrial detention or custody, the Attorney Gen- tion of the environment and the conserva- (A) by striking the section heading and in- eral shall have the authority— tion of the natural resources of the United serting the following: ‘‘(A) to request the temporary transfer of that States; person to the United States in order to face (2) Senator Chafee served on the Environ- ‘‘JOHN H. CHAFEE COASTAL BARRIER RESOURCES prosecution in a Federal or State criminal pro- ment and Public Works Committee of the SYSTEM’’; ceeding; Senate for 22 years, influencing every major and ‘‘(B) to maintain the custody of that person piece of environmental legislation enacted (B) by striking ‘‘Coastal Barrier Resources while the person is in the United States; and during that time; System’’ each place it appears and inserting ‘‘(C) to return that person to the foreign coun- (3) Senator Chafee led the fight for clean ‘‘John H. Chafee Coastal Barrier Resources try at the conclusion of the criminal prosecu- air, clean water, safe drinking water, and System’’. tion, including any imposition of sentence.

VerDate 29-OCT-99 06:40 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00137 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.061 pfrm13 PsN: S04PT1 S14008 CONGRESSIONAL RECORD — SENATE November 4, 1999

‘‘(2) REQUIREMENTS FOR REQUESTS BY ATTOR- ‘‘(3) CERTAIN RIGHTS AND REMEDIES BARRED.— TITLE II—PROMOTING GLOBAL COOPERA- NEY GENERAL.—The Attorney General shall Notwithstanding any other provision of law, a TION IN THE FIGHT AGAINST INTER- make a request under paragraph (1) only if the person temporarily transferred to the United NATIONAL CRIME Attorney General determines, after consultation States pursuant to this section shall not be enti- SEC. 201. STREAMLINED PROCEDURES FOR EXE- with the Secretary of State, that the return of tled to apply for or obtain any right or remedy CUTION OF MLAT REQUESTS. that person to the foreign country in question under the Immigration and Nationality Act (8 (a) IN GENERAL.—Chapter 117 of title 28, would be consistent with international obliga- U.S.C. 1101 et seq.), including the right to apply United States Code, is amended by adding at the tions of the United States. for or be granted asylum or withholding of de- end the following: ‘‘(c) AUTHORITY OF ATTORNEY GENERAL WITH portation.’’. ‘‘§ 1785. Assistance to foreign authorities RESPECT TO PRETRIAL DETENTIONS.— (b) CLERICAL AMENDMENT.—The analysis for ‘‘(1) IN GENERAL.— chapter 306 of title 18, United States Code, is ‘‘(a) IN GENERAL.— ‘‘(A) AUTHORITY OF ATTORNEY GENERAL.— amended by adding at the end the following: ‘‘(1) PRESENTATION OF REQUESTS.—The Attor- ney General may present a request made by a Subject to paragraph (2) and subsection (d), the ‘‘4116. Temporary transfer for prosecution.’’. Attorney General shall have the authority to foreign government for assistance with respect SEC. 102. PROHIBITING FUGITIVES FROM BENE- to a foreign investigation, prosecution, or pro- carry out the actions described in subparagraph FITING FROM FUGITIVE STATUS. (B), if— ceeding regarding a criminal matter pursuant to (a) IN GENERAL.—Chapter 163 of title 28, ‘‘(i) a person is in pretrial detention or is oth- a treaty, convention, or executive agreement for United States Code, is amended by adding at the mutual legal assistance between the United erwise being held in custody in the United end the following: States based upon a violation of Federal or States and that government or in accordance State law, and that person is found extraditable ‘‘§ 2466. Fugitive disentitlement with section 1782, the execution of which re- to a foreign country while still in the pretrial ‘‘A person may not use the resources of the quires or appears to require the use of compul- detention or custody pursuant to section 3184, courts of the United States in furtherance of a sory measures in more than 1 judicial district, to 3197, or 3198; and claim in any related civil forfeiture action or a a judge or judge magistrate of— ‘‘(ii) a determination is made by the Secretary claim in third party proceedings in any related ‘‘(A) any 1 of the districts in which persons of State and the Attorney General that the per- criminal forfeiture action if that person— who may be required to appear to testify or son will be surrendered. ‘‘(1) purposely leaves the jurisdiction of the produce evidence or information reside or are ‘‘(B) ACTIONS.—If the conditions described in United States; found, or in which evidence or information to be subparagraph (A) are met, the Attorney General ‘‘(2) declines to enter or reenter the United produced is located; or shall have the authority to— States to submit to its jurisdiction; or ‘‘(B) the United States District Court for the ‘‘(i) temporarily transfer the person described ‘‘(3) otherwise evades the jurisdiction of the District of Columbia. in subparagraph (A) to the foreign country of court in which a criminal case is pending ‘‘(2) AUTHORITY OF COURT.—A judge or judge the foreign government requesting the extra- against the person.’’. magistrate to whom a request for assistance is dition of that person in order to face prosecu- (b) CLERICAL AMENDMENT.—The analysis for presented under paragraph (1) shall have the tion; chapter 163 of title 28, United States Code, is authority to issue those orders necessary to exe- ‘‘(ii) transport that person from the United amended by adding at the end the following: cute the request including orders appointing a States in custody; and ‘‘2466. Fugitive disentitlement.’’. person to direct the taking of testimony or statements and the production of evidence or infor- ‘‘(iii) return that person in custody to the SEC. 103. TRANSFER OF FOREIGN PRISONERS TO United States from the foreign country. SERVE SENTENCES IN COUNTRY OF mation, of whatever nature and in whatever ‘‘(2) CONSENT BY STATE AUTHORITIES.—If the ORIGIN. form, in execution of the request. person is being held in custody for a violation of Section 4100(b) of title 18, United States Code, ‘‘(b) AUTHORITY OF APPOINTED PERSONS.—A State law, the Attorney General may exercise is amended in the third sentence by striking person appointed under subsection (a)(2) shall the authority described in paragraph (1) if the ‘‘An offender’’ and inserting ‘‘Unless otherwise have the authority to— appropriate State authorities give their consent provided by treaty, an offender’’. ‘‘(1) issue orders for the taking of testimony or statements and the production of evidence or in- to the Attorney General. SEC. 104. TRANSIT OF FUGITIVES FOR PROSECU- ‘‘(3) CRITERION FOR REQUEST.—The Attorney TION IN FOREIGN COUNTRIES. formation, which orders may be served at any place within the United States; General shall make a request under paragraph (a) IN GENERAL.—Chapter 305 of title 18, (1) only if the Attorney General determines, United States Code, is amended by adding at the ‘‘(2) administer any necessary oath; and ‘‘(3) take testimony or statements and receive after consultation with the Secretary of State, end the following: that the return of the person sought for extra- evidence and information. ‘‘§ 4087. Transit through the United States of dition to the foreign country of the foreign gov- ‘‘(c) PERSONS ORDERED TO APPEAR.—A person persons wanted in a foreign country ernment requesting the extradition would be ordered pursuant to subsection (b)(1) to appear consistent with United States international obli- ‘‘(a) IN GENERAL.—The Attorney General outside the district in which that person resides gations. may, in consultation with the Secretary of or is found may, not later than 10 days after re- ‘‘(4) EFFECT OF TEMPORARY TRANSFER.—With State, permit the temporary transit through the ceipt of the order— regard to any person in pretrial detention— United States of a person wanted for prosecu- ‘‘(1) file with the judge or judge magistrate ‘‘(A) a temporary transfer under this sub- tion or imposition of sentence in a foreign coun- who authorized execution of the request a mo- section shall result in an interruption in the try. tion to appear in the district in which that per- pretrial detention status of that person; and ‘‘(b) LIMITATION ON JUDICIAL REVIEW.—A de- son resides or is found or in which the evidence ‘‘(B) the right to challenge the conditions of termination by the Attorney General to permit or information is located; or confinement pursuant to section 3142(f) does not or not to permit a temporary transit described in ‘‘(2) provide written notice, requesting appear- extend to the right to challenge the conditions subsection (a) shall not be subject to judicial re- ance in the district in which the person resides of confinement in a foreign country while in view. or is found or in which the evidence or informa- that foreign country temporarily under this sub- ‘‘(c) CUSTODY.—If the Attorney General per- tion is located, to the person issuing the order to section. mits a temporary transit under subsection (a), appear, who shall advise the judge or judge ‘‘(d) CONSENT BY PARTIES TO WAIVE PRIOR Federal law enforcement personnel may hold magistrate authorizing execution. FINDING OF WHETHER A PERSON IS EXTRA- the person subject to that transit in custody ‘‘(d) TRANSFER OF REQUESTS.— DITABLE.—The Attorney General may exercise during the transit of the person through the ‘‘(1) IN GENERAL.—The judge or judge mag- the authority described in subsections (b) and United States. istrate may transfer a request under subsection (c) absent a prior finding that the person in cus- ‘‘(d) CONDITIONS APPLICABLE TO PERSONS (c), or that portion requiring the appearance of tody is extraditable, if the person, any appro- SUBJECT TO TEMPORARY TRANSIT.—Notwith- that person, to the other district if— priate State authorities in a case under sub- standing any other provision of law, a person ‘‘(A) the inconvenience to the person is subsection (c), and the requesting foreign govern- who is subject to a temporary transit through stantial; and ment give their consent to waive that require- the United States under this section shall— ‘‘(B) the transfer is unlikely to adversely af- ment. ‘‘(1) be required to have only such documents fect the effective or timely execution of the re- ‘‘(e) RETURN OF PERSONS.— as the Attorney General shall require; quest or a portion thereof. ‘‘(1) IN GENERAL.—If the temporary transfer to ‘‘(2) not be considered to be admitted or pa- ‘‘(2) EXECUTION.—Upon transfer, the judge or or from the United States of a person in custody roled into the United States; and judge magistrate to whom the request or a por- for the purpose of prosecution is provided for by ‘‘(3) not be entitled to apply for or obtain any tion thereof is transferred shall complete its exe- this section, that person shall be returned to the right or remedy under the Immigration and Na- cution in accordance with subsections (a) and United States or to the foreign country from tionality Act (8 U.S.C. 1101 et seq.), including (b).’’. which the person is transferred on completion of the right to apply for or be granted asylum or (b) CLERICAL AMENDMENT.—The analysis for the proceedings upon which the transfer was withholding of deportation.’’. chapter 117 of title 28, United States Code, is based. (b) CLERICAL AMENDMENT.—The analysis for amended by adding at the end the following: ‘‘(2) STATUTORY INTERPRETATION WITH RE- chapter 305 of title 18, United States Code, is ‘‘1785. Assistance to foreign authorities.’’. SPECT TO IMMIGRATION LAWS.—In no event shall amended by adding at the end the following: SEC. 202. TEMPORARY TRANSFER OF INCARCER- the return of a person under paragraph (1) re- ‘‘4087. Transit through the United States of per- ATED WITNESSES. quire extradition proceedings or proceedings sons wanted in a foreign coun- (a) IN GENERAL.—Section 3508 of title 18, under the immigration laws. try.’’. United States Code, is amended—

VerDate 29-OCT-99 06:40 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00138 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.044 pfrm13 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14009 (1) by striking the section heading and insert- turn a person to a foreign country unless the On page 33, strike lines 16 through 20. ing the following: Attorney General determines, after consultation Beginning on page 38, line 22, strike ‘‘or re- ‘‘§ 3508. Temporary transfer of witnesses in with the Secretary of State, that transfer or require’’ and all that follows through ‘‘trans- custody’’; turn would be consistent with the international ferred’’ on line 2 of page 39. obligations of the United States. A determina- On page 39, line 13, after the period, insert (2) in subsection (a), by inserting ‘‘IN GEN- tion by the Attorney General under this sub- ending quotation marks and a final period. ERAL.—’’ after ‘‘(a)’’; and section shall not be subject to judicial review by Beginning on page 39, strike line 14 and all (3) by striking subsections (b) and (c) and in- any court.’’. that follows through line 20 on page 40. serting the following: (b) CLERICAL AMENDMENT.—The analysis for On page 42, line 5, after ‘‘denaturalize’’, in- ‘‘(b) TRANSFER AUTHORITY.— chapter 223 of title 18, United States Code, is sert ‘‘(as otherwise authorized by law)’’. ‘‘(1) IN GENERAL.—If the testimony of a person amended by striking the item relating to section Mr. LEAHY. Mr President, I am de- who is serving a sentence, in pretrial detention, 3508 and inserting the following: lighted that the Senate is considering or otherwise being held in custody in the United States, is needed in a foreign criminal pro- ‘‘3508. Temporary transfer of witnesses in cus- S. 1754, the ‘‘Denying Safe Haven to ceeding, the Attorney General shall have the tody.’’. International and War Criminals Act of authority to— TITLE III—ANTI-ATROCITY ALIEN 1999,’’ along with a technical amend- ‘‘(A) temporarily transfer that person to the DEPORTATION ment that strikes several provisions in foreign country for the purpose of giving the SEC. 301. INADMISSIBILITY AND REMOVABILITY the bill reported by the Judiciary Com- testimony; OF ALIENS WHO HAVE COMMITTED mittee that would have had the effect ‘‘(B) transport that person from the United ACTS OF TORTURE ABROAD. of altering the applicability of current (a) INADMISSIBILITY.—Section 212(a)(3)(E) of States in custody; law in certain instances. Senator ‘‘(C) make appropriate arrangements for cus- the Immigration and Nationality Act (8 U.S.C. HATCH and I introduced this bill on Oc- tody for that person while outside the United 1182(a)(3)(E)) is amended by adding at the end States; and the following: tober 20, 1999, with a number of provi- ‘‘(D) return that person in custody to the ‘‘(iii) COMMISSION OF ACTS OF TORTURE.—Any sions that I have long supported. The United States from the foreign country. alien who, outside the United States, has com- legislation will give United States law ‘‘(2) PERSONS HELD FOR STATE LAW VIOLA- mitted any act of torture, as defined in section enforcement agencies important tools 2340 of title 18, United States Code, is inadmis- TIONS.—If the person is being held in custody to help them combat international for a violation of State law, the Attorney Gen- sible.’’. (b) REMOVABILITY.—Section 237(a)(4)(D) of crime by facilitating international co- eral may exercise the authority described in this that Act (8 U.S.C. 1227(a)(4)(D)) is amended by operation in the prosecution of crimi- subsection if the appropriate State authorities striking ‘‘clause (i) or (ii)’’ and inserting nal cases and ensuring that human give their consent. ‘‘clause (i), (ii), or (iii)’’. rights abusers are denied safe haven in ‘‘(c) RETURN OF PERSONS TRANSFERRED.— (c) EFFECTIVE DATE.—The amendments made ‘‘(1) IN GENERAL.—If the transfer to or from this country. by this section shall apply to offenses committed the United States of a person in custody for the Unfortunately, crime and terrorism before, on, or after the date of enactment of this purpose of giving testimony is provided for by directed at Americans and American Act. treaty or convention, by this section, or both, interests abroad are part of our modern that person shall be returned to the United SEC. 302. ESTABLISHMENT OF THE OFFICE OF SPECIAL INVESTIGATIONS. reality. Furthermore, organized crimi- States, or to the foreign country from which the (a) AMENDMENT OF THE IMMIGRATION AND NA- nal activity does not recognize na- person is transferred. TIONALITY ACT.—Section 103 of the Immigration tional boundaries. With improvements ‘‘(2) LIMITATION.—In no event shall the re- and Nationality Act (8 U.S.C. 1103) is amended in technology, criminals now can move turn of a person under this subsection require by adding at the end the following: about the world with ease. They can any request for extradition or extradition pro- ‘‘(g) The Attorney General shall establish ceedings, or require that person to be subject to transfer funds with the push of a but- within the Criminal Division of the Department ton, or use computers and credit card deportation or exclusion proceedings under the of Justice an Office of Special Investigations laws of the United States, or the foreign country with the authority of investigating, and, where numbers to steal from American citi- from which the person is transferred. appropriate, taking legal action to remove, zens and businesses from any spot on ‘‘(d) APPLICABILITY OF INTERNATIONAL denaturalize, or prosecute any alien found to be the globe. They can commit crimes AGREEMENTS.—If there is an international in violation of clause (i), (ii), or (iii) of section here or abroad and flee quickly to an- agreement between the United States and the 212(a)(3)(E).’’. other jurisdiction or country. The foreign country in which a witness is being held (b) AUTHORIZATION OF APPROPRIATIONS.— playing field keeps changing, and we in custody or to which the witness will be trans- (1) IN GENERAL.—There are authorized to be ferred from the United States, that provides for need to change with it. appropriated to the Department of Justice for This bill will help make needed modi- the transfer, custody, and return of those wit- the fiscal year 2000 such sums as may be nec- nesses, the terms and conditions of that inter- essary to carry out the additional duties estab- fications in our laws, not with sweep- national agreement shall apply. If there is no lished under section 103(g) of the Immigration ing changes but with thoughtful provi- such international agreement, the Attorney and Nationality Act (as added by this Act) in sions carefully targeted at specific General may exercise the authority described in order to ensure that the Office of Special Inves- problems faced by law enforcement. We subsections (a) and (b) if both the foreign coun- tigations fulfills its continuing obligations re- cannot stop international crime with- try and the witness give their consent. garding Nazi war criminals. out international cooperation, and this ‘‘(e) RIGHTS OF PERSONS TRANSFERRED.— (2) AVAILABILITY OF FUNDS.—Amounts appro- bill gives additional tools to investiga- ‘‘(1) Notwithstanding any other provision of priated pursuant to paragraph (1) are author- tors and prosecutors to promote such law, a person held in custody in a foreign coun- ized to remain available until expended. try who is transferred to the United States pur- cooperation, while narrowing the room AMENDMENT NO. 2510 for maneuver that international crimi- suant to this section for the purpose of giving (Purpose: To make technical amendments) testimony— nals, including human rights abusers, Mr. GRASSLEY. Senators LEAHY and ‘‘(A) shall not by reason of that transfer, dur- and terrorists now enjoy. ing the period that person is present in the HATCH have an amendment at the desk, Regarding the Anti-Atrocity Alien United States pursuant to that transfer, be enti- and I ask for its consideration. Deportation Act (Title III), this bill tled to apply for or obtain any right or remedy The PRESIDING OFFICER. The contains as its last title the ‘‘Anti- under the Immigration and Nationality Act, in- clerk will report. Atrocity Alien Deportation Act,’’ The legislative clerk read as follows: cluding the right to apply for or be granted asy- which I introduced as S. 1375, on July lum or withholding of deportation or any right The Senator from Iowa [Mr. GRASSLEY] for 15, 1999, with Senator KOHL. Senator to remain in the United States under any other Mr. LEAHY, for himself and Mr. HATCH, pro- law; and poses an amendment numbered 2510. LIEBERMAN is also a cosponsor. This legislation has garnered bipartisan sup- ‘‘(B) may be summarily removed from the The amendment is as follows: United States upon order of the Attorney Gen- port both in the Senate and the House, On page 30, lines 20 and 21, strike ‘‘WITH RE- eral. where the measure has been introduced SPECT TO IMMIGRATION LAWS’’. ‘‘(2) RULE OF CONSTRUCTION.—Nothing in this On page 30, lines 24 and 25, strike ‘‘or pro- by Representatives FOLEY, FRANKS and subsection may be construed to create any sub- ceedings under the immigration laws’’ and ACKERMAN as H.R. 2642 and H.R. 3058. stantive or procedural right or benefit to remain insert a period, quotation marks, and a sec- I have been appalled that this coun- in the United States that is legally enforceable ond period. try has become a safe haven for those in a court of law of the United States or of a On page 31, strike lines 1 through 8. who exercised power in foreign coun- State by any party against the United States or On page 33, line 13, insert ‘‘and’’ after the tries to terrorize, rape, and torture in- its agencies or officers. semicolon. ‘‘(f) CONSISTENCY WITH INTERNATIONAL OBLI- On page 33, line 15, strike ‘‘; and’’ and innocent civilians. For example, three GATIONS.—The Attorney General shall not take sert a period, quotation marks, and a second Ethiopian refugees proved in an Amer- any action under this section to transfer or re- period. ican court that Kelbessa Negewo, a

VerDate 29-OCT-99 06:40 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00139 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.044 pfrm13 PsN: S04PT1 S14010 CONGRESSIONAL RECORD — SENATE November 4, 1999 former senior government official in The legislation would also amend the out the additional responsibilities Ethiopia engaged in numerous acts of Immigration and Nationality Act, 8 called for in the bill, noting that: torture and human rights abuses U.S.C. § 1103, by directing the Attorney It resolves a turf war between the INS and against them in the late 1970’s when General to establish an Office of Spe- the OSI in favor of the OSI, which is as it they lived in that country. The court’s cial Investigations (OSI) within the De- should be. The victims of human rights descriptions of the abuse are chilling, partment of Justice with authorization abuses are often victimized again when, and included whipping a naked woman to investigate, remove, denaturalize, or seeking refuge in the United States, they are confronted by the draconian policies of the with a wire for hours and threatening prosecute any alien who has partici- INS. It’s a better idea to give the job of find- her with death in the presence of sev- pated in torture or genocide abroad. ing war criminals to the office that has eral men. The court’s award of compen- Attorney General Civiletti established shown it knows how to do the job. satory and punitive damages in the OSI in 1979 within the Criminal Divi- Unquestionably, the need to bring amount of $1,500,000 to the plaintiffs sion of the Department of Justice, con- Nazi war criminals to justice remains a was subsequently affirmed by an appel- solidating within it all ‘‘investigative matter of great importance. Funds late court. See Abebe-Jira v. Negewo, 72 and litigation activities involving indi- would not be diverted from the OSI’s F.3d 844 (11th Cir. 1996). Yet, while viduals, who prior to and during World current mission. Additional resources Negewo’s case was on appeal, the Im- War II, under the supervision of or in are authorized in the bill for OSI’s ex- migration and Naturalization Service association with the Nazi government panded duties. I would like to recognize granted him citizenship. of Germany, its allies, and other affili- the reporting of Boston Globe reporter As Professor William Aceves of Cali- ated [sic] governments, are alleged to Steve Fainaru, whose ground-breaking fornia Western School of Law has have ordered, incited, assisted, or oth- series has illuminated the need for a noted, this case reveals ‘‘a glaring and erwise participated in the persecution more focused response to this problem. troubling limitation in current immi- of any person because of race, religion, Regarding the sections Denying Safe gration law and practice. This case is national origin, or political opinion.’’ Haven to International Criminals and not unique. Other aliens who have com- (Attorney Gen. Order No. 851–79). The Promoting Global Cooperation (Title I mitted gross human rights violations OSI’s mission continues to be limited and II), I initially introduced title I, have also gained entry into the United by that Attorney General Order. section 102 of this bill, regarding fugi- States and been granted immigration The legislation would provide statu- tive disentitlement, on April 30, 1998, in relief.’’ The Rutland Herald got it right tory authorization for Office of Special S. 2011, the ‘‘Money Laundering En- when it opined on October 31, 1999, Investigation, and would expand its ju- forcement and Combating Drugs in that: risdiction to authorize investigations, Prisons Act of 1998,’’ with Senators For the U.S. commitment to human rights prosecutions, and removal of any alien DASCHLE, KOHL, FEINSTEIN and to mean anything, U.S. policies must be who participated in torture and geno- CLELAND. Again, on July 14, 1998, I in- strong and consistent. It is not enough to decide abroad—not just Nazis. The suc- troduced with Senator BIDEN, on behalf nounce war crimes in Bosnia and Kosovo or elsewhere and then wink as the perpetrators cess of OSI in hunting Nazi war crimi- of the Administration, S. 2303, the of torture and mass murder slip across the nals demonstrates the effectiveness of ‘‘International Crime Control Act of border to find a home in America. centralized resources and expertise in 1998,’’ which contains most of the pro- The Immigration and Nationality these cases. OSI has worked, and it is visions set forth in titles I and II of Act currently provides that (i) partici- time to update its mission. The knowl- this bill. Virtually all of the provisions pants in Nazi persecutions during the edge of the people, politics and in these two titles of the bill were also time period from March 23, 1933 to May pathologies of particular regimes en- included in another major anti-crime 8, 1945, and (ii) aliens who engaged in gaged in genocide and human rights bill, S. 2484, the ‘‘Safe Schools, Safe genocide, are inadmissible to the abuses is often necessary for effective Streets, and Secure Borders Act of United States and deportable. See 8 prosecutions of these cases and may 1998,’’ which I introduced on September U.S.C. §1182(a)(3)(E)(i) and best be accomplished by the con- 16, 1998, along with Senators DASCHLE, §1227(a)(4)(D). This legislation would centrated efforts of a single office, BIDEN, Moseley-Braun, KENNEDY, amend these sections of the Immigra- rather than in piecemeal litigation KERRY, LAUTENBERG, MIKULSKI, BINGA- tion and Nationality Act by expanding around the country or in offices that MAN, REID, MURRAY, DORGAN, and the grounds for inadmissibility and de- have more diverse missions. TORRICELLI. In addition, Senator HATCH portation to cover aliens who have en- I appreciate that this part of the leg- and I included title II, section 201 of gaged in acts of torture abroad. islation has proven controversial with- this bill, regarding streamlined proce- ‘‘Torture’’ is already defined in the in the Department of Justice, but oth- dures for MLAT requests in S. 2536, our Federal criminal code, 18 U.S.C. § 2340, ers have concurred in my judgment ‘‘International Crime and Anti-Ter- in a law passed as part of the imple- that the OSI is an appropriate compo- rorism Amendments of 1998,’’ which menting legislation for the ‘‘Conven- nent of the Department to address the passed the Senate last October 15, 1998. tion Against Torture,’’ under which the new responsibilities proposed in the We have drawn from these more com- United States has an affirmative duty bill. Professor Aceves, who has studied prehensive bills a set of discrete im- to prosecute torturers within its these matters extensively, has con- provements that enjoy bipartisan sup- boundaries regardless of their respec- cluded that OSI’s ‘‘methodology for port so that important provisions may tive nationalities. 18 U.S.C. § 2340A pursuing Nazi war criminals can be ap- be enacted promptly. Each of these (1994). As defined in the federal crimi- plied with equal rigor to other per- provisions has been a law enforcement nal code, torture means any act com- petrators of human rights violations. priority. mitted by a person acting under the As the number of Nazi war criminals Title I sets forth important proposals color of law specifically intended to in- inevitably declines, the OSI can begin for combating international crime and flict severe physical or mental pain or to enforce U.S. immigration laws denying safe havens to international suffering upon another person within against perpetrators of genocide and criminals. The substitute amendment his custody or physical control. This other gross violations of human adopted by the Judiciary Committee to could include prolonged mental harm rights.’’ the original bill removed sections 1 and caused by or resulting from the inflic- Similarly, the Rutland Herald re- 2, which set forth detailed procedures tion or threat to inflict physical pain, cently noted that the INS has never de- and safeguards for proceeding with ex- threats to kill another person, or the ported an immigrant on the basis of tradition for offenses not covered in a administration of mind-altering sub- human rights abuses, while the OSI has treaty. stances or procedures calculated to dis- deported 48 ex-Nazis and stripped 61 of Section 101 of the bill considered by rupt profoundly the senses or person- U.S. citizenship, while maintaining a the Senate today would add a new sec- ality of another person. Under this def- list of 60,000 suspected war criminals tion 4116 to title 18, United States inition, torturers include both those with the aim of barring them from Code, authorizing the Attorney Gen- who issue the orders to torture inno- entry. Based on this record, the Rut- eral to request the temporary transfer cent people as well as those who imple- land Herald concluded that the legisla- to the United States of a person, who is ment those orders. tion correctly looks to OSI to carry in pretrial detention or custody in a

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00140 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.139 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14011 foreign country, to face prosecution, if where they reside or the evidence is lo- TITLE I—DENYING SAFE HAVENS TO the Attorney General, in consultation cated, or the U.S. District Court for INTERNATIONAL CRIMINALS with the Secretary of State, deter- the District of Columbia. A person or- Sec. 101. Temporary transfer of persons in mines that such transfer would be con- dered to produce testimony or evidence custody for prosecution. sistent with the international obliga- outside the jurisdiction of residence Sec. 102. Prohibiting fugitives from bene- tions of the United States. The section may petition to appear in the district fiting from fugitive status. Sec. 103. Transfer of foreign prisoners to would also authorize the Attorney Gen- where the person resides. serve sentences in country of eral to transfer temporarily to a for- Section 202 outlines procedures for origin. eign country a person, who is in pre- the temporary transfer of incarcerated Sec. 104. Transit of fugitives for prosecution trial detention or custody in the witnesses. Mutual legal assistance in foreign countries. United States and found extraditable treaties (‘‘MLATS’’) generally already TITLE II—PROMOTING GLOBAL CO- to the foreign country, to face prosecu- provide a mechanism for the United OPERATION IN THE FIGHT AGAINST tion in the foreign country, if the At- States to send and receive persons in INTERNATIONAL CRIME torney General, in consultation with custody who are needed as witnesses, Sec. 201. Streamlined procedures for execu- the Secretary of State, determines that either in our courts or foreign courts tion of MLAT requests. such transfer would be consistent with for criminal cases. These witnesses are Sec. 202. Temporary transfer of incarcerated the international obligations of the often cooperating to obtain a lighter witnesses. United States. Consent of state au- sentence. Section 3508 of title 18, TITLE III—ANTI-ATROCITY ALIEN thorities would be required for persons United States Code, enacted in 1988, al- DEPORTATION in state custody. ready provides the authority, absent Sec. 301. Inadmissibility and removability of Section 102 is designed to stop drug such a MLAT, for the Attorney General aliens who have committed acts kingpins, terrorists and other inter- to request foreign witnesses, who are in of torture abroad. national fugitives from using our Sec. 302. Establishment of the Office of Spe- custody, to come to the United States cial Investigations. courts to fight to keep the proceeds of to testify in criminal cases here, and to the very crimes for which they are TITLE I—DENYING SAFE HAVENS TO assure their expeditious return to the INTERNATIONAL CRIMINALS wanted. Criminals should not be able foreign country. The bill would amend to use our courts at the same time SEC. 101. TEMPORARY TRANSFER OF PERSONS IN section 3508 to permit the Attorney CUSTODY FOR PROSECUTION. they are evading our laws. Specifically, General, as a matter of comity and rec- (a) IN GENERAL.—Chapter 306 of title 18, this section adds a new section 2466 to iprocity, to send United States pris- United States Code, is amended by adding at title 28, United States Code, that would oners abroad to testify, according to the end the following: bar a person, who purposely leaves the the terms and conditions of the MLAT. ‘‘§ 4116. Temporary transfer for prosecution United States or declines to submit to If there is no MLAT, the Attorney Gen- ‘‘(a) STATE DEFINED.—In this section, the or otherwise evades U.S. jurisdiction eral may only send a United States term ‘State’ includes a State of the United where a criminal case is pending prisoner abroad to testify with the States, the District of Columbia, and a com- against the person, from participating prisoner’s consent and, where applica- monwealth, territory, or possession of the as a party in a civil action over a re- ble, the State holding the prisoner. De- United States. lated civil or criminal forfeiture claim. cisions of the Attorney General re- ‘‘(b) AUTHORITY OF ATTORNEY GENERAL The Supreme Court recently decided specting such transfers are to be made WITH RESPECT TO TEMPORARY TRANSFERS.— that a previous judge-made rule to the ‘‘(1) IN GENERAL.—Subject to subsection in conjunction with the Secretary of (d), if a person is in pretrial detention or is same effect required a statutory basis. State. otherwise being held in custody in a foreign This section provides that basis. These are important provisions that I country based upon a violation of the law in Section 103 would amend section have advocated for some time. They that foreign country, and that person is 4100(b) of title 18, United States Code, are helpful, solid law enforcement profound extraditable to the United States by to permit transfer, on a case-by-case visions. I thank my friend from Utah, the competent authorities of that foreign basis, of prisoners to their home coun- Senator HATCH, for his help in making country while still in the pretrial detention try to serve their sentences, where this bill a reality. Working together, or custody, the Attorney General shall have the authority— such transfer is provided by treaty. we were able to pass bipartisan legisla- Under this section, the prisoner need ‘‘(A) to request the temporary transfer of tion that will accomplish what all of us that person to the United States in order to not consent to the transfer. want, a safer and more secure America. face prosecution in a Federal or State crimi- Section 104 would add a new section Mr. GRASSLEY. Mr. President, I ask nal proceeding; 4087 to title 18, United States Code, unanimous consent that the amend- ‘‘(B) to maintain the custody of that per- that would provide a statutory basis ment be agreed to, the committee son while the person is in the United States; for holding and transferring prisoners amendment, as amended, be agreed to, and who are sent from one foreign country the bill be read a third time and ‘‘(C) to return that person to the foreign country at the conclusion of the criminal to another through United States air- passed, the motion to reconsider be ports, at the discretion of the Attorney prosecution, including any imposition of sen- laid upon the table, and that any state- tence. General. ments relating to the bill be printed in Title II of the bill is designed to pro- ‘‘(2) REQUIREMENTS FOR REQUESTS BY AT- the RECORD. TORNEY GENERAL.—The Attorney General mote global cooperation in the fight The PRESIDING OFFICER. Without shall make a request under paragraph (1) against international crime. Section objection, it is so ordered. only if the Attorney General determines, 201 would permit United States courts The amendment (No. 2510) was agreed after consultation with the Secretary of involved in multi-district litigation to to. State, that the return of that person to the foreign country in question would be con- enforce mutual legal assistance trea- The committee amendment, as ties and other agreements to execute sistent with international obligations of the amended, was agreed to. United States. foreign requests for assistance in The bill (S. 1754), as amended, was criminal matters in all districts in- ‘‘(c) AUTHORITY OF ATTORNEY GENERAL read the third time and passed, as fol- WITH RESPECT TO PRETRIAL DETENTIONS.— volved in the litigation. Specifically, lows: ‘‘(1) IN GENERAL.— this provision would add a new section S. 1754 ‘‘(A) AUTHORITY OF ATTORNEY GENERAL.— 1785 to title 18, United States Code, Subject to paragraph (2) and subsection (d), Be it enacted by the Senate and House of Rep- that would authorize the Attorney the Attorney General shall have the author- resentatives of the United States of America in ity to carry out the actions described in sub- General to present requests from for- Congress assembled, eign governments for assistance in paragraph (B), if— SECTION 1. SHORT TITLE; TABLE OF CONTENTS. ‘‘(i) a person is in pretrial detention or is criminal cases pursuant to mutual (a) SHORT TITLE.—This Act may be cited as legal assistance treaties and other otherwise being held in custody in the the ‘‘Denying Safe Havens to International United States based upon a violation of Fed- agreements when the enforcement in- and War Criminals Act of 1999’’. eral or State law, and that person is found volves multiple districts. Compulsory (b) TABLE OF CONTENTS.—The table of con- extraditable to a foreign country while still measures may be used to require per- tents of this Act is as follows: in the pretrial detention or custody pursuant sons to produce testimony or evidence Sec. 1. Short title; table of contents. to section 3184, 3197, or 3198; and

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‘‘(ii) a determination is made by the Sec- ‘‘(3) otherwise evades the jurisdiction of ‘‘(2) AUTHORITY OF COURT.—A judge or retary of State and the Attorney General the court in which a criminal case is pending judge magistrate to whom a request for as- that the person will be surrendered. against the person.’’. sistance is presented under paragraph (1) ‘‘(B) ACTIONS.—If the conditions described (b) CLERICAL AMENDMENT.—The analysis shall have the authority to issue those or- in subparagraph (A) are met, the Attorney for chapter 163 of title 28, United States ders necessary to execute the request includ- General shall have the authority to— Code, is amended by adding at the end the ing orders appointing a person to direct the ‘‘(i) temporarily transfer the person de- following: taking of testimony or statements and the scribed in subparagraph (A) to the foreign ‘‘2466. Fugitive disentitlement.’’. production of evidence or information, of country of the foreign government request- SEC. 103. TRANSFER OF FOREIGN PRISONERS TO whatever nature and in whatever form, in ing the extradition of that person in order to SERVE SENTENCES IN COUNTRY OF execution of the request. face prosecution; ORIGIN. ‘‘(b) AUTHORITY OF APPOINTED PERSONS.—A ‘‘(ii) transport that person from the United Section 4100(b) of title 18, United States person appointed under subsection (a)(2) States in custody; and Code, is amended in the third sentence by shall have the authority to— ‘‘(iii) return that person in custody to the striking ‘‘An offender’’ and inserting ‘‘Unless ‘‘(1) issue orders for the taking of testi- United States from the foreign country. otherwise provided by treaty, an offender’’. mony or statements and the production of ‘‘(2) CONSENT BY STATE AUTHORITIES.—If the SEC. 104. TRANSIT OF FUGITIVES FOR PROSECU- evidence or information, which orders may person is being held in custody for a viola- TION IN FOREIGN COUNTRIES. be served at any place within the United tion of State law, the Attorney General may (a) IN GENERAL.—Chapter 305 of title 18, States; exercise the authority described in para- United States Code, is amended by adding at ‘‘(2) administer any necessary oath; and graph (1) if the appropriate State authorities the end the following: ‘‘(3) take testimony or statements and re- give their consent to the Attorney General. ‘‘§ 4087. Transit through the United States of ceive evidence and information. ‘‘(c) PERSONS ORDERED TO APPEAR.—A per- ‘‘(3) CRITERION FOR REQUEST.—The Attor- persons wanted in a foreign country son ordered pursuant to subsection (b)(1) to ney General shall make a request under ‘‘(a) IN GENERAL.—The Attorney General appear outside the district in which that per- paragraph (1) only if the Attorney General may, in consultation with the Secretary of son resides or is found may, not later than 10 determines, after consultation with the Sec- State, permit the temporary transit through days after receipt of the order— retary of State, that the return of the person the United States of a person wanted for ‘‘(1) file with the judge or judge magistrate sought for extradition to the foreign country prosecution or imposition of sentence in a who authorized execution of the request a of the foreign government requesting the ex- foreign country. motion to appear in the district in which ‘‘(b) LIMITATION ON JUDICIAL REVIEW.—A tradition would be consistent with United that person resides or is found or in which determination by the Attorney General to States international obligations. the evidence or information is located; or permit or not to permit a temporary transit ‘‘(4) EFFECT OF TEMPORARY TRANSFER.— ‘‘(2) provide written notice, requesting ap- described in subsection (a) shall not be sub- With regard to any person in pretrial pearance in the district in which the person ject to judicial review. detention— resides or is found or in which the evidence ‘‘(c) CUSTODY.—If the Attorney General ‘‘(A) a temporary transfer under this sub- or information is located, to the person permits a temporary transit under subsection shall result in an interruption in the issuing the order to appear, who shall advise section (a), Federal law enforcement per- pretrial detention status of that person; and the judge or judge magistrate authorizing sonnel may hold the person subject to that ‘‘(B) the right to challenge the conditions execution. transit in custody during the transit of the of confinement pursuant to section 3142(f) ‘‘(d) TRANSFER OF REQUESTS.— person through the United States. does not extend to the right to challenge the ‘‘(1) IN GENERAL.—The judge or judge mag- ‘‘(d) CONDITIONS APPLICABLE TO PERSONS conditions of confinement in a foreign coun- istrate may transfer a request under sub- SUBJECT TO TEMPORARY TRANSIT.—Notwith- try while in that foreign country tempo- section (c), or that portion requiring the ap- standing any other provision of law, a person rarily under this subsection. pearance of that person, to the other district who is subject to a temporary transit ‘‘(d) CONSENT BY PARTIES TO WAIVE PRIOR if— through the United States under this section FINDING OF WHETHER A PERSON IS EXTRA- ‘‘(A) the inconvenience to the person is shall— DITABLE.—The Attorney General may exer- substantial; and cise the authority described in subsections ‘‘(1) be required to have only such docu- ‘‘(B) the transfer is unlikely to adversely (b) and (c) absent a prior finding that the ments as the Attorney General shall require; affect the effective or timely execution of person in custody is extraditable, if the per- and the request or a portion thereof. ‘‘(2) not be considered to be admitted or pa- son, any appropriate State authorities in a ‘‘(2) EXECUTION.—Upon transfer, the judge case under subsection (c), and the requesting roled into the United States.’’. or judge magistrate to whom the request or (b) CLERICAL AMENDMENT.—The analysis foreign government give their consent to a portion thereof is transferred shall com- for chapter 305 of title 18, United States waive that requirement. plete its execution in accordance with sub- Code, is amended by adding at the end the ‘‘(e) RETURN OF PERSONS.— sections (a) and (b).’’. following: ‘‘(1) IN GENERAL.—If the temporary transfer (b) CLERICAL AMENDMENT.—The analysis to or from the United States of a person in ‘‘4087. Transit through the United States of for chapter 117 of title 28, United States custody for the purpose of prosecution is pro- persons wanted in a foreign Code, is amended by adding at the end the vided for by this section, that person shall be country.’’. following: returned to the United States or to the for- TITLE II—PROMOTING GLOBAL COOPERA- ‘‘1785. Assistance to foreign authorities.’’. eign country from which the person is trans- TION IN THE FIGHT AGAINST INTER- SEC. 202. TEMPORARY TRANSFER OF INCARCER- ferred on completion of the proceedings upon NATIONAL CRIME ATED WITNESSES. which the transfer was based. SEC. 201. STREAMLINED PROCEDURES FOR EXE- (a) IN GENERAL.—Section 3508 of title 18, ‘‘(2) STATUTORY INTERPRETATION.—In no CUTION OF MLAT REQUESTS. United States Code, is amended— event shall the return of a person under (a) IN GENERAL.—Chapter 117 of title 28, (1) by striking the section heading and in- paragraph (1) require extradition pro- United States Code, is amended by adding at serting the following: ceedings.’’. the end the following: ‘‘§ 3508. Temporary transfer of witnesses in (b) CLERICAL AMENDMENT.—The analysis ‘‘§ 1785. Assistance to foreign authorities custody’’; for chapter 306 of title 18, United States ‘‘(a) IN GENERAL.— (2) in subsection (a), by inserting ‘‘IN GEN- Code, is amended by adding at the end the ‘‘(1) PRESENTATION OF REQUESTS.—The At- ERAL.—’’ after ‘‘(a)’’; and following: torney General may present a request made (3) by striking subsections (b) and (c) and ‘‘4116. Temporary transfer for prosecution.’’. by a foreign government for assistance with inserting the following: respect to a foreign investigation, prosecu- ‘‘(b) TRANSFER AUTHORITY.— SEC. 102. PROHIBITING FUGITIVES FROM BENE- FITING FROM FUGITIVE STATUS. tion, or proceeding regarding a criminal ‘‘(1) IN GENERAL.—If the testimony of a per- matter pursuant to a treaty, convention, or son who is serving a sentence, in pretrial de- (a) IN GENERAL.—Chapter 163 of title 28, United States Code, is amended by adding at executive agreement for mutual legal assist- tention, or otherwise being held in custody the end the following: ance between the United States and that in the United States, is needed in a foreign government or in accordance with section criminal proceeding, the Attorney General ‘‘§ 2466. Fugitive disentitlement 1782, the execution of which requires or ap- shall have the authority to— ‘‘A person may not use the resources of the pears to require the use of compulsory meas- ‘‘(A) temporarily transfer that person to courts of the United States in furtherance of ures in more than 1 judicial district, to a the foreign country for the purpose of giving a claim in any related civil forfeiture action judge or judge magistrate of— the testimony; or a claim in third party proceedings in any ‘‘(A) any 1 of the districts in which persons ‘‘(B) transport that person from the United related criminal forfeiture action if that who may be required to appear to testify or States in custody; person— produce evidence or information reside or ‘‘(C) make appropriate arrangements for ‘‘(1) purposely leaves the jurisdiction of the are found, or in which evidence or informa- custody for that person while outside the United States; tion to be produced is located; or United States; and ‘‘(2) declines to enter or reenter the United ‘‘(B) the United States District Court for ‘‘(D) return that person in custody to the States to submit to its jurisdiction; or the District of Columbia. United States from the foreign country.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00142 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.051 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14013 ‘‘(2) PERSONS HELD FOR STATE LAW VIOLA- FEDERAL FINANCIAL ASSISTANCE tion, trust, association, cooperative, or other or- TIONS.—If the person is being held in custody MANAGEMENT IMPROVEMENT ganization that— for a violation of State law, the Attorney ACT OF 1999 (A) is operated primarily for scientific, edu- General may exercise the authority de- cational, service, charitable, or similar purposes scribed in this subsection if the appropriate Mr. GRASSLEY. Mr. President, I ask in the public interest; State authorities give their consent. unanimous consent that the Chair lay (B) is not organized primarily for profit; and ‘‘(c) RETURN OF PERSONS TRANSFERRED.— before the Senate a message from the (C) uses net proceeds to maintain, improve, or ‘‘(1) IN GENERAL.—If the transfer to or from House of Representatives on the bill (S. expand the operations of the organization. the United States of a person in custody for 468) to improve the effectiveness and (7) STATE.—The term ‘‘State’’ means any State the purpose of giving testimony is provided of the United States, the District of Columbia, for by treaty or convention, by this section, performance of Federal financial as- the Commonwealth of Puerto Rico, the Virgin or both, that person shall be returned to the sistance programs, simplify Federal fi- Islands, Guam, American Samoa, the Common- United States, or to the foreign country nancial assistance application and re- wealth of the Northern Mariana Islands, and from which the person is transferred. porting requirements, and improve the the Trust Territory of the Pacific Islands, and ‘‘(2) LIMITATION.—In no event shall the re- delivery of services to the public. any instrumentality thereof, any multi-State, turn of a person under this subsection re- There being no objection, the Pre- regional, or interstate entity which has govern- quire any request for extradition or extra- siding Officer (Mr. SESSIONS) laid be- mental functions, and any Indian Tribal Gov- dition proceedings. ‘‘(d) APPLICABILITY OF INTERNATIONAL fore the Senate the following message ernment. AGREEMENTS.—If there is an international from the House of Representatives: (8) TRIBAL GOVERNMENT.—The term ‘‘tribal agreement between the United States and Resolved, That the bill from the Senate (S. government’’ means an Indian tribe, as that the foreign country in which a witness is 468) entitled ‘‘An Act to improve the effec- term is defined in section 7501(a)(9) of title 31, being held in custody or to which the witness tiveness and performance of Federal finan- United States Code. will be transferred from the United States, cial assistance programs, simplify Federal fi- (9) UNIFORM ADMINISTRATIVE RULE.—The term that provides for the transfer, custody, and nancial assistance application and reporting ‘‘uniform administrative rule’’ means a Govern- return of those witnesses, the terms and con- requirements, and improve the delivery of ment-wide uniform rule for any generally appli- ditions of that international agreement shall services to the public’’, do pass with the fol- cable requirement established to achieve na- apply. If there is no such international lowing amendment: tional policy objectives that applies to multiple agreement, the Attorney General may exer- Strike out all after the enacting clause and Federal financial assistance programs across cise the authority described in subsections insert: Federal agencies. (a) and (b) if both the foreign country and SECTION 1. SHORT TITLE. SEC. 5. DUTIES OF FEDERAL AGENCIES. the witness give their consent.’’. This Act may be cited as the ‘‘Federal Finan- (a) IN GENERAL.—Except as provided under (b) CLERICAL AMENDMENT.—The analysis cial Assistance Management Improvement Act of subsection (b), not later than 18 months after for chapter 223 of title 18, United States 1999’’. Code, is amended by striking the item relat- the date of the enactment of this Act, each Fed- SEC. 2. FINDINGS. ing to section 3508 and inserting the fol- eral agency shall develop and implement a plan Congress finds that— lowing: that— (1) there are over 600 different Federal finan- (1) streamlines and simplifies the application, ‘‘3508. Temporary transfer of witnesses in cial assistance programs to implement domestic administrative, and reporting procedures for custody.’’. policy; Federal financial assistance programs adminis- TITLE III—ANTI-ATROCITY ALIEN (2) while the assistance described in para- tered by the agency; DEPORTATION graph (1) has been directed at critical problems, (2) demonstrates active participation in the SEC. 301. INADMISSIBILITY AND REMOVABILITY some Federal administrative requirements may interagency process under section 6(a)(2); OF ALIENS WHO HAVE COMMITTED be duplicative, burdensome or conflicting, thus (3) demonstrates appropriate agency use, or ACTS OF TORTURE ABROAD. impeding cost-effective delivery of services at the plans for use, of the common application and re- (a) INADMISSIBILITY.—Section 212(a)(3)(E) of local level; porting system developed under section 6(a)(1); the Immigration and Nationality Act (8 (3) the Nation’s State, local, and tribal gov- (4) designates a lead agency official for car- U.S.C. 1182(a)(3)(E)) is amended by adding at ernments and private, nonprofit organizations rying out the responsibilities of the agency the end the following: are dealing with increasingly complex problems under this Act; ‘‘(iii) COMMISSION OF ACTS OF TORTURE.— which require the delivery and coordination of (5) allows applicants to electronically apply Any alien who, outside the United States, many kinds of services; and for, and report on the use of, funds from the has committed any act of torture, as defined (4) streamlining and simplification of Federal Federal financial assistance program adminis- in section 2340 of title 18, United States financial assistance administrative procedures tered by the agency; Code, is inadmissible.’’. and reporting requirements will improve the de- (b) REMOVABILITY.—Section 237(a)(4)(D) of livery of services to the public. (6) ensures recipients of Federal financial as- that Act (8 U.S.C. 1227(a)(4)(D)) is amended sistance provide timely, complete, and high SEC. 3. PURPOSES. by striking ‘‘clause (i) or (ii)’’ and inserting quality information in response to Federal re- The purposes of this Act are to— ‘‘clause (i), (ii), or (iii)’’. porting requirements; and (1) improve the effectiveness and performance (c) EFFECTIVE DATE.—The amendments (7) in cooperation with recipients of Federal made by this section shall apply to offenses of Federal financial assistance programs; (2) simplify Federal financial assistance appli- financial assistance, establishes specific annual committed before, on, or after the date of en- goals and objectives to further the purposes of actment of this Act. cation and reporting requirements; (3) improve the delivery of services to the pub- this Act and measure annual performance in SEC. 302. ESTABLISHMENT OF THE OFFICE OF achieving those goals and objectives, which may SPECIAL INVESTIGATIONS. lic; and (4) facilitate greater coordination among those be done as part of the agency’s annual planning (a) AMENDMENT OF THE IMMIGRATION AND responsible for delivering such services. responsibilities under the Government Perform- NATIONALITY ACT.—Section 103 of the Immi- ance and Results Act of 1993 (Public Law 103– SEC. 4. DEFINITIONS. gration and Nationality Act (8 U.S.C. 1103) is 62; 107 Stat. 285). amended by adding at the end the following: In this Act: (b) EXTENSION.—If a Federal agency is unable ‘‘(g) The Attorney General shall establish (1) DIRECTOR.—The term ‘‘Director’’ means within the Criminal Division of the Depart- the Director of the Office of Management and to comply with subsection (a), the Director may ment of Justice an Office of Special Inves- Budget. extend for up to 12 months the period for the tigations with the authority of inves- (2) FEDERAL AGENCY.—The term ‘‘Federal agency to develop and implement a plan in ac- tigating, and, where appropriate, taking agency’’ means any agency as defined under cordance with subsection (a). legal action to remove, denaturalize (as oth- section 551(1) of title 5, United States Code. (c) COMMENT AND CONSULTATION ON AGENCY erwise authorized by law), or prosecute any (3) FEDERAL FINANCIAL ASSISTANCE.—The term PLANS.— alien found to be in violation of clause (i), ‘‘Federal financial assistance’’ has the same (1) COMMENT.—Each agency shall publish the (ii), or (iii) of section 212(a)(3)(E).’’. meaning as defined in section 7501(a)(5) of title plan developed under subsection (a) in the Fed- (b) AUTHORIZATION OF APPROPRIATIONS.— 31, United States Code, under which Federal fi- eral Register and shall receive public comment (1) IN GENERAL.—There are authorized to be nancial assistance is provided, directly or indi- of the plan through the Federal Register and appropriated to the Department of Justice rectly, to a non-Federal entity. other means (including electronic means). To for the fiscal year 2000 such sums as may be (4) LOCAL GOVERNMENT.—The term ‘‘local gov- the maximum extent practicable, each Federal necessary to carry out the additional duties ernment’’ means a political subdivision of a agency shall hold public forums on the plan. established under section 103(g) of the Immi- State that is a unit of general local government (2) CONSULTATION.—The lead official des- gration and Nationality Act (as added by (as defined under section 7501(a)(11) of title 31, ignated under subsection (a)(4) shall consult this Act) in order to ensure that the Office of United States Code). with representatives of non-Federal entities dur- Special Investigations fulfills its continuing (5) NON-FEDERAL ENTITY.—The term ‘‘non- ing development and implementation of the obligations regarding Nazi war criminals. Federal entity’’ means a State, local govern- plan. Consultation with representatives of State, (2) AVAILABILITY OF FUNDS.—Amounts ap- ment, or nonprofit organization. local, and tribal governments shall be in accord- propriated pursuant to paragraph (1) are au- (6) NONPROFIT ORGANIZATION.—The term ance with section 204 of the Unfunded Man- thorized to remain available until expended. ‘‘nonprofit organization’’ means any corpora- dates Reform Act of 1995 (2 U.S.C. 1534).

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(d) SUBMISSION OF PLAN.—Each Federal agen- (b) CONTENTS.—The evaluation under sub- (3) pursuant to the provisions of the Hawaiian cy shall submit the plan developed under subsection (a) shall— Homes Commission Act, 1920 (42 Stat. 108 et section (a) to the Director and Congress and re- (1) assess the effectiveness of this Act in meet- seq.), the United States set aside 200,000 acres of port annually thereafter on the implementation ing the purposes of this Act and make specific land in the Federal territory that later became of the plan and performance of the agency in recommendations to further the implementation the State of Hawaii in order to establish a home- meeting the goals and objectives specified under of this Act; land for the native people of Hawaii—Native subsection (a)(7). Such report may be included (2) evaluate actual performance of each agen- Hawaiians; as part of any of the general management re- cy in achieving the goals and objectives stated (4) despite the intent of Congress in 1920 to ports required under law. in agency plans; and address the housing needs of Native Hawaiians SEC. 6. DUTIES OF THE DIRECTOR. (3) assess the level of coordination among the through the enactment of the Hawaiian Homes (a) IN GENERAL.—The Director, in consulta- Director, Federal agencies, State, local, and Commission Act, 1920 (42 Stat. 108 et seq.), Na- tion with agency heads and representatives of tribal governments, and nonprofit organizations tive Hawaiians eligible to reside on the Hawai- non-Federal entities, shall direct, coordinate, in implementing this Act. ian home lands have been foreclosed from par- and assist Federal agencies in establishing— SEC. 8. COLLECTION OF INFORMATION. ticipating in Federal housing assistance pro- (1) a common application and reporting sys- Nothing in this Act shall be construed to pre- grams available to all other eligible families in tem, including— vent the Director or any Federal agency from the United States; (A) a common application or set of common gathering, or to exempt any recipient of Federal (5) although Federal housing assistance pro- applications, wherein a non-Federal entity can financial assistance from providing, information grams have been administered on a racially neu- apply for Federal financial assistance from mul- that is required for review of the financial integ- tral basis in the State of Hawaii, Native Hawai- tiple Federal financial assistance programs that rity or quality of services of an activity assisted ians continue to have the greatest unmet need serve similar purposes and are administered by by a Federal financial assistance program. for housing and the highest rates of overcrowding in the United States; different Federal agencies; SEC. 9. JUDICIAL REVIEW. (B) a common system, including electronic (6) among the Native American population of There shall be no judicial review of compli- the United States, Native Hawaiians experience processes, wherein a non-Federal entity can ance or noncompliance with any of the provi- apply for, manage, and report on the use of the highest percentage of housing problems in sions of this Act. No provision of this Act shall the United States, as the percentage— funding from multiple Federal financial assist- be construed to create any right or benefit, sub- ance programs that serve similar purposes and (A) of housing problems in the Native Hawai- stantive or procedural, enforceable by any ad- ian population is 49 percent, as compared to— are administered by different Federal agencies; ministrative or judicial action. and (i) 44 percent for American Indian and Alaska (C) uniform administrative rules for Federal SEC. 10. STATUTORY REQUIREMENTS. Native households in Indian country; and financial assistance programs across different Nothing in this Act shall be construed as a (ii) 27 percent for all other households in the Federal agencies; and means to deviate from the statutory require- United States; and (B) overcrowding in the Native Hawaiian pop- (2) an interagency process for addressing— ments relating to applicable Federal financial ulation is 36 percent as compared to 3 percent (A) ways to streamline and simplify Federal assistance programs. for all other households in the United States; financial assistance administrative procedures SEC. 11. EFFECTIVE DATE AND SUNSET. (7) among the Native Hawaiian population, and reporting requirements for non-Federal en- This Act shall take effect on the date of the the needs of Native Hawaiians, as that term is tities; enactment of this Act and shall cease to be ef- defined in section 801 of the Native American (B) improved interagency and intergovern- fective 8 years after such date of enactment. Housing Assistance and Self-Determination Act mental coordination of information collection Mr. GRASSLEY. I ask unanimous of 1996, as added by section 3 of this Act, eligible and sharing of data pertaining to Federal fi- consent that the Senate agree to the to reside on the Hawaiian Home Lands are the nancial assistance programs, including appro- amendment of the House. most severe, as— priate information sharing consistent with sec- (A) the percentage of overcrowding in Native tion 552a of title 5, United States Code; and The PRESIDING OFFICER. Without Hawaiian households on the Hawaiian Home (C) improvements in the timeliness, complete- objection, it is so ordered. Lands is 36 percent; and ness, and quality of information received by f (B) approximately 13,000 Native Hawaiians, Federal agencies from recipients of Federal fi- NATIVE AMERICAN HOUSING AS- which constitute 95 percent of the Native Ha- nancial assistance. waiians who are eligible to reside on the Hawai- (b) LEAD AGENCY AND WORKING GROUPS.—The SISTANCE AND SELF-DETER- ian Home Lands, are in need of housing; Director may designate a lead agency to assist MINATION AMENDMENTS OF 1999 (8) applying the Department of Housing and the Director in carrying out the responsibilities Mr. GRASSLEY. Mr. President, I ask Urban Development guidelines— under this section. The Director may use inter- (A) 70.8 percent of Native Hawaiians who ei- agency working groups to assist in carrying out unanimous consent that the Senate proceed to the consideration of Cal- ther reside or who are eligible to reside on the such responsibilities. Hawaiian Home Lands have incomes that fall (c) REVIEW OF PLANS AND REPORTS.—Upon endar No. 373, S. 225. below the median family income; and the request of the Director, agencies shall sub- The PRESIDING OFFICER. The (B) 50 percent of Native Hawaiians who either mit to the Director, for the Director’s review, in- clerk will report the bill by title. reside or who are eligible to reside on the Ha- formation and other reporting regarding agency The legislative clerk read as follows: waiian Home Lands have incomes below 30 per- implementation of this Act. A bill (S. 225) to provide Federal housing cent of the median family income; (d) EXEMPTIONS.—The Director may exempt assistance to native Hawaiians. (9) 1⁄3 of those Native Hawaiians who are eligi- any Federal agency or Federal financial assist- ble to reside on the Hawaiian Home Lands pay ance program from the requirements of this Act There being no objection, the Senate more than 30 percent of their income for shelter, if the Director determines that the Federal agen- proceeded to consider the bill which and 1⁄2 of those Native Hawaiians face over- cy does not have a significant number of Fed- had been reported from the Committee crowding; eral financial assistance programs. The Director on Banking, Housing, and Urban Af- (10) the extraordinarily severe housing needs shall maintain a list of exempted agencies which fairs with an amendment to strike all of Native Hawaiians demonstrate that Native shall be available to the public through the Of- Hawaiians who either reside on, or are eligible fice of Management and Budget’s Internet site. after the enacting clause and insert in lieu thereof the following: to reside on, Hawaiian Home Lands have been (e) REPORT ON RECOMMENDED CHANGES IN denied equal access to Federal low-income hous- LAW.—Not later than 18 months after the date SECTION 1. SHORT TITLE. ing assistance programs available to other quali- of the enactment of this Act, the Director shall This Act may be cited as the ‘‘Native Amer- fied residents of the United States, and that a submit to Congress a report containing rec- ican Housing Assistance and Self-Determination more effective means of addressing their housing ommendations for changes in law to improve the Amendments of 1999’’. needs must be authorized; effectiveness, performance, and coordination of SEC. 2. FINDINGS. (11) consistent with the recommendations of Federal financial assistance programs. Congress finds that— the National Commission on American Indian, (f) DEADLINE.—All actions required under this (1) the United States has undertaken a re- Alaska Native, and Native Hawaiian Housing, section shall be carried out not later than 18 sponsibility to promote the general welfare of and in order to address the continuing preva- months after the date of the enactment of this the United States by— lence of extraordinarily severe housing needs Act. (A) employing its resources to remedy the un- among Native Hawaiians who either reside or SEC. 7. EVALUATION. safe and unsanitary housing conditions and the are eligible to reside on the Hawaiian Home (a) IN GENERAL.—The General Accounting Of- acute shortage of decent, safe, and sanitary Lands, Congress finds it necessary to extend the fice shall evaluate the effectiveness of this Act. dwellings for families of lower income; and Federal low-income housing assistance available Not later than 6 years after the date of the en- (B) developing effective partnerships with to American Indians and Alaska Natives under actment of this Act, the evaluation shall be sub- governmental and private entities to accomplish the Native American Housing Assistance and mitted to the lead agency, the Director, and the objectives referred to in subparagraph (A); Self-Determination Act of 1996 (25 U.S.C. 4101 et Congress. The evaluation shall be performed (2) the United States has a special responsi- seq.) to those Native Hawaiians; with input from State, local, and tribal govern- bility for the welfare of the Native peoples of the (12) under the treatymaking power of the ments, and nonprofit organizations. United States, including Native Hawaiians; United States, Congress had the constitutional

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00144 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.052 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14015 authority to confirm a treaty between the clusive right of the United States to consent to ‘‘(A) the median income for the Hawaiian United States and the government that rep- any actions affecting the lands which comprise housing area, which shall be determined by the resented the Hawaiian people, and from 1826 the corpus of the trust and any amendments to Secretary; or until 1893, the United States recognized the the Hawaiian Homes Commission Act, 1920 (42 ‘‘(B) the median income for the State of Ha- independence of the Kingdom of Hawaii, ex- Stat. 108 et seq.), enacted by the legislature of waii. tended full diplomatic recognition to the Hawai- the State of Hawaii affecting the rights of bene- ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native Ha- ian Government, and entered into treaties and ficiaries under the Act; waiian’ means any individual who is— conventions with the Hawaiian monarchs to (C) the authorization of mortgage loans in- ‘‘(A) a citizen of the United States; and govern commerce and navigation in 1826, 1842, sured by the Federal Housing Administration ‘‘(B) a descendant of the aboriginal people, 1849, 1875, and 1887; for the purchase, construction, or refinancing of who, prior to 1778, occupied and exercised sov- (13) the United States has recognized and re- homes on Hawaiian Home Lands under the Act ereignty in the area that currently constitutes affirmed that— of June 27, 1934 (commonly referred to as the the State of Hawaii, as evidenced by— (A) Native Hawaiians have a cultural, his- ‘‘National Housing Act’’ (42 Stat. 1246 et seq., ‘‘(i) genealogical records; toric, and land-based link to the indigenous chapter 847; 12 U.S.C. 1701 et seq.)); ‘‘(ii) verification by kupuna (elders) or people who exercised sovereignty over the Ha- (D) authorizing Native Hawaiian representa- kama’aina (long-term community residents); or waiian Islands, and that group has never relin- tion on the National Commission on American ‘‘(iii) birth records of the State of Hawaii. quished its claims to sovereignty or its sovereign Indian, Alaska Native, and Native Hawaiian ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE lands; Housing under Public Law 101–235; HOUSING ACTIVITIES. (E) the inclusion of Native Hawaiians in the (B) Congress does not extend services to Na- ‘‘(a) GRANT AUTHORITY.—For each fiscal year, tive Hawaiians because of their race, but be- definition under section 3764 of title 38, United the Secretary shall (to the extent amounts are cause of their unique status as the indigenous States Code, applicable to subchapter V of chap- made available to carry out this title) make a people of a once sovereign nation as to whom ter 37 of title 38, United States Code (relating to grant under this title to the Department of Ha- the United States has established a trust rela- a housing loan program for Native American waiian Home Lands to carry out affordable tionship; veterans); and housing activities for Native Hawaiian families (F) the enactment of the Hawaiian Home (C) Congress has also delegated broad author- who are eligible to reside on the Hawaiian Home Lands Recovery Act (109 Stat. 357; 48 U.S.C. 491, ity to administer a portion of the Federal trust Lands. note prec.) which establishes a process for the responsibility to the State of Hawaii; ‘‘(b) PLAN REQUIREMENT.— conveyance of Federal lands to the Department (D) the political status of Native Hawaiians is ‘‘(1) IN GENERAL.—The Secretary may make a of Hawaiian Homes Lands that are equivalent comparable to that of American Indians and grant under this title to the Department of Ha- in value to lands acquired by the United States Alaska Natives; and waiian Home Lands for a fiscal year only if— from the Hawaiian Home Lands inventory. (E) the aboriginal, indigenous people of the ‘‘(A) the Director has submitted to the Sec- United States have— SEC. 3. HOUSING ASSISTANCE. retary a housing plan for that fiscal year; and The Native American Housing Assistance and (i) a continuing right to autonomy in their in- ‘‘(B) the Secretary has determined under sec- Self-Determination Act of 1996 (25 U.S.C. 4101 et ternal affairs; and tion 804 that the housing plan complies with the seq.) is amended by adding at the end the fol- (ii) an ongoing right of self-determination and requirements of section 803. lowing: self-governance that has never been extin- ‘‘(2) WAIVER.—The Secretary may waive the guished; ‘‘TITLE VIII—HOUSING ASSISTANCE FOR applicability of the requirements under para- (14) the political relationship between the NATIVE HAWAIIANS graph (1), in part, if the Secretary finds that the United States and the Native Hawaiian people ‘‘SEC. 801. DEFINITIONS. Department of Hawaiian Home Lands has not has been recognized and reaffirmed by the ‘‘In this title: complied or cannot comply with those require- United States as evidenced by the inclusion of ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS; ments due to circumstances beyond the control Native Hawaiians in— DEPARTMENT.—The term ‘Department of Hawai- of the Department of Hawaiian Home Lands. (A) the Native American Programs Act of 1974 ian Home Lands’ or ‘Department’ means the ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVITIES (42 U.S.C. 2291 et seq.); agency or department of the government of the UNDER PLAN.—Except as provided in subsection (B) the American Indian Religious Freedom State of Hawaii that is responsible for the ad- (e), amounts provided under a grant under this Act (42 U.S.C. 1996 et seq.); ministration of the Hawaiian Homes Commission section may be used only for affordable housing (C) the National Museum of the American In- Act, 1920 (42 Stat. 108 et seq.). activities under this title that are consistent dian Act (20 U.S.C. 80q et seq.); ‘‘(2) DIRECTOR.—The term ‘Director’ means with a housing plan approved under section 804. (D) the Native American Graves Protection the Director of the Department of Hawaiian ‘‘(d) ADMINISTRATIVE EXPENSES.— and Repatriation Act (25 U.S.C. 3001 et seq.); Home Lands. ‘‘(1) IN GENERAL.—The Secretary shall, by reg- (E) the National Historic Preservation Act (16 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAMI- ulation, authorize the Department of Hawaiian U.S.C. 470 et seq.); LIES.— Home Lands to use a percentage of any grant (F) the Native American Languages Act of ‘‘(A) IN GENERAL.—The term ‘elderly family’ amounts received under this title for any rea- 1992 (106 Stat. 3434); or ‘near-elderly family’ means a family whose sonable administrative and planning expenses of (G) the American Indian, Alaska Native and head (or his or her spouse), or whose sole mem- the Department relating to carrying out this Native Hawaiian Culture and Arts Development ber, is— Act (20 U.S.C. 4401 et seq.); ‘‘(i) for an elderly family, an elderly person; title and activities assisted with those amounts. (H) the Job Training Partnership Act (29 or ‘‘(2) ADMINISTRATIVE AND PLANNING EX- U.S.C. 1501 et seq.); and ‘‘(ii) for a near-elderly family, a near-elderly PENSES.—The administrative and planning ex- (I) the Older Americans Act of 1965 (42 U.S.C. person. penses referred to in paragraph (1) include— 3001 et seq.); and ‘‘(B) CERTAIN FAMILIES INCLUDED.—The term ‘‘(A) costs for salaries of individuals engaged (15) in the area of housing, the United States ‘elderly family’ or ‘near-elderly family’ in administering and managing affordable hous- has recognized and reaffirmed the political rela- includes— ing activities assisted with grant amounts pro- tionship with the Native Hawaiian people ‘‘(i) 2 or more elderly persons or near-elderly vided under this title; and through— persons, as the case may be, living together; and ‘‘(B) expenses incurred in preparing a housing (A) the enactment of the Hawaiian Homes ‘‘(ii) 1 or more persons described in clause (i) plan under section 803. Commission Act, 1920 (42 Stat. 108 et seq.), living with 1 or more persons determined under ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The Di- which set aside approximately 200,000 acres of the housing plan to be essential to their care or rector shall make all reasonable efforts, con- public lands that became known as Hawaiian well-being. sistent with the purposes of this title, to maxi- ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha- Home Lands in the Territory of Hawaii that had mize participation by the private sector, includ- waiian Home Lands’ means lands that— ing nonprofit organizations and for-profit enti- been ceded to the United States for home- ‘‘(A) have the status as Hawaiian home lands steading by Native Hawaiians in order to reha- ties, in implementing a housing plan that has under section 204 of the Hawaiian Homes Com- been approved by the Secretary under section bilitate a landless and dying people; mission Act (42 Stat. 110); or (B) the enactment of the Act entitled ‘‘An Act 803. ‘‘(B) are acquired pursuant to that Act. ‘‘(f) APPLICABILITY OF OTHER PROVISIONS.— to provide for the admission of the State of Ha- ‘‘(5) HOUSING AREA.—The term ‘housing area’ ‘‘(1) IN GENERAL.—The Secretary shall be waii into the Union’’, approved March 18, 1959 means an area of Hawaiian Home Lands with guided by the relevant program requirements of (73 Stat. 4)— respect to which the Department of Hawaiian titles I, II, and IV in the implementation of (i) by ceding to the State of Hawaii title to the Home Lands is authorized to provide assistance housing assistance programs for Native Hawai- public lands formerly held by the United States, for affordable housing under this Act. ians under this title. and mandating that those lands be held in pub- ‘‘(6) HOUSING ENTITY.—The term ‘housing en- ‘‘(2) EXCEPTION.—The Secretary may make ex- lic trust, for the betterment of the conditions of tity’ means the Department of Hawaiian Home ceptions to, or modifications of, program re- Native Hawaiians, as that term is defined in sec- Lands. tion 201 of the Hawaiian Homes Commission ‘‘(7) HOUSING PLAN.—The term ‘housing plan’ quirements for Native American housing assist- Act, 1920 (42 Stat. 108 et seq.); and means a plan developed by the Department of ance set forth in titles I, II, and IV as necessary (ii) by transferring the United States responsi- Hawaiian Home Lands. and appropriate to meet the unique situation bility for the administration of Hawaiian Home ‘‘(8) MEDIAN INCOME.—The term ‘median in- and housing needs of Native Hawaiians. Lands to the State of Hawaii, but retaining the come’ means, with respect to an area that is a ‘‘SEC. 803. HOUSING PLAN. authority to enforce the trust, including the ex- Hawaiian housing area, the greater of— ‘‘(a) PLAN SUBMISSION.—The Secretary shall—

VerDate 29-OCT-99 06:42 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00145 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.062 pfrm13 PsN: S04PT1 S14016 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(1) require the Director to submit a housing partment of Hawaiian Home Lands and any compliance with such requirements as may be plan under this section for each fiscal year; and other governmental entities in the development, established by the Secretary; ‘‘(2) provide for the review of each plan sub- submission, or implementation of housing plans, ‘‘(iii) a certification that policies are in effect mitted under paragraph (1). including a description of— and are available for review by the Secretary ‘‘(b) 5-YEAR PLAN.—Each housing plan under ‘‘(I) the involvement of private, public, and and the public governing the eligibility, admis- this section shall— nonprofit organizations and institutions; sion, and occupancy of families for housing as- ‘‘(1) be in a form prescribed by the Secretary; ‘‘(II) the use of loan guarantees under section sisted with grant amounts provided under this and 184A of the Housing and Community Develop- title; ‘‘(2) contain, with respect to the 5-year period ment Act of 1992; and ‘‘(iv) a certification that policies are in effect beginning with the fiscal year for which the ‘‘(III) other housing assistance provided by and are available for review by the Secretary plan is submitted, the following information: the United States, including loans, grants, and and the public governing rents charged, includ- ‘‘(A) MISSION STATEMENT.—A general state- mortgage insurance; ing the methods by which such rents or home- ment of the mission of the Department of Ha- ‘‘(iv) a description of the manner in which the buyer payments are determined, for housing as- waiian Home Lands to serve the needs of the plan will address the needs identified pursuant sisted with grant amounts provided under this low-income families to be served by the Depart- to subparagraph (C); title; and ment. ‘‘(v) a description of— ‘‘(v) a certification that policies are in effect ‘‘(B) GOAL AND OBJECTIVES.—A statement of ‘‘(I) any existing or anticipated homeowner- and are available for review by the Secretary the goals and objectives of the Department of ship programs and rental programs to be carried and the public governing the management and Hawaiian Home Lands to enable the Depart- out during the period covered by the plan; and maintenance of housing assisted with grant ment to serve the needs identified in subpara- ‘‘(II) the requirements and assistance avail- amounts provided under this title. graph (A) during the period. able under the programs referred to in subclause ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STAT- ‘‘(C) ACTIVITIES PLANS.—An overview of the (I); UTES.— activities planned during the period including ‘‘(vi) a description of— ‘‘(1) IN GENERAL.—To the extent that the re- an analysis of the manner in which the activi- ‘‘(I) any existing or anticipated housing reha- quirements of title VI of the Civil Rights Act of ties will enable the Department to meet its mis- bilitation programs necessary to ensure the 1964 (42 U.S.C. 2000d et seq.) or of title VIII of sion, goals, and objectives. long-term viability of the housing to be carried the Act popularly known as the ‘Civil Rights ‘‘(c) 1-YEAR PLAN.—A housing plan under this out during the period covered by the plan; and Act of 1968’ (42 U.S.C. 3601 et seq.) apply to as- section shall— ‘‘(II) the requirements and assistance avail- ‘‘(1) be in a form prescribed by the Secretary; sistance provided under this title, nothing in the able under the programs referred to in subclause requirements concerning discrimination on the and (I); ‘‘(2) contain the following information relat- basis of race shall be construed to prevent the ‘‘(vii) a description of— provision of assistance under this title— ing to the fiscal year for which the assistance ‘‘(I) all other existing or anticipated housing under this title is to be made available: ‘‘(A) to the Department of Hawaiian Home assistance provided by the Department of Ha- Lands on the basis that the Department served ‘‘(A) GOALS AND OBJECTIVES.—A statement of waiian Home Lands during the period covered the goals and objectives to be accomplished dur- Native Hawaiians; or by the plan, including— ‘‘(B) to an eligible family on the basis that the ing the period covered by the plan. ‘‘(aa) transitional housing; ‘‘(B) STATEMENT OF NEEDS.—A statement of family is a Native Hawaiian family. ‘‘(bb) homeless housing; ‘‘(2) CIVIL RIGHTS.—Program eligibility under the housing needs of the low-income families ‘‘(cc) college housing; and served by the Department and the means by this title may be restricted to Native Hawaiians. ‘‘(dd) supportive services housing; and Subject to the preceding sentence, no person which those needs will be addressed during the ‘‘(II) the requirements and assistance avail- period covered by the plan, including— may be discriminated against on the basis of able under such programs; race, color, national origin, religion, sex, famil- ‘‘(i) a description of the estimated housing ‘‘(viii)(I) a description of any housing to be ial status, or disability. needs and the need for assistance for the low-in- demolished or disposed of; ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As come families to be served by the Department, ‘‘(II) a timetable for that demolition or dis- a condition of receiving grant amounts under including a description of the manner in which position; and this title, the Department of Hawaiian Home the geographical distribution of assistance is ‘‘(III) any other information required by the Lands shall, to the extent practicable, provide consistent with— Secretary with respect to that demolition or dis- for private nonprofit organizations experienced ‘‘(I) the geographical needs of those families; position; in the planning and development of affordable and ‘‘(ix) a description of the manner in which the housing for Native Hawaiians to carry out af- ‘‘(II) needs for various categories of housing Department of Hawaiian Home Lands will co- fordable housing activities with those grant assistance; and ordinate with welfare agencies in the State of ‘‘(ii) a description of the estimated housing amounts. Hawaii to ensure that residents of the afford- needs for all families to be served by the Depart- able housing will be provided with access to re- ‘‘SEC. 804. REVIEW OF PLANS. ment. sources to assist in obtaining employment and ‘‘(a) REVIEW AND NOTICE.— ‘‘(C) FINANCIAL RESOURCES.—An operating achieving self-sufficiency; ‘‘(1) REVIEW.— budget for the Department of Hawaiian Home ‘‘(x) a description of the requirements estab- ‘‘(A) IN GENERAL.—The Secretary shall con- Lands, in a form prescribed by the Secretary, lished by the Department of Hawaiian Home duct a review of a housing plan submitted to the that includes— Secretary under section 803 to ensure that the ‘‘(i) an identification and a description of the Lands to— ‘‘(I) promote the safety of residents of the af- plan complies with the requirements of that sec- financial resources reasonably available to the fordable housing; tion. Department to carry out the purposes of this ‘‘(II) facilitate the undertaking of crime pre- ‘‘(B) LIMITATION.—The Secretary shall have title, including an explanation of the manner in vention measures; the discretion to review a plan referred to in which amounts made available will be used to ‘‘(III) allow resident input and involvement, subparagraph (A) only to the extent that the leverage additional resources; and Secretary considers that the review is necessary. ‘‘(ii) the uses to which the resources described including the establishment of resident organi- ‘‘(2) NOTICE.— in clause (i) will be committed, including— zations; and ‘‘(A) IN GENERAL.—Not later than 60 days ‘‘(I) eligible and required affordable housing ‘‘(IV) allow for the coordination of crime pre- after receiving a plan under section 803, the Sec- activities; and vention activities between the Department and retary shall notify the Director of the Depart- ‘‘(II) administrative expenses. local law enforcement officials; and ment of Hawaiian Home Lands whether the ‘‘(D) AFFORDABLE HOUSING RESOURCES.—A ‘‘(xi) a description of the entities that will statement of the affordable housing resources carry out the activities under the plan, includ- plan complies with the requirements under that currently available at the time of the submittal ing the organizational capacity and key per- section. of the plan and to be made available during the sonnel of the entities. ‘‘(B) EFFECT OF FAILURE OF SECRETARY TO period covered by the plan, including— ‘‘(E) CERTIFICATION OF COMPLIANCE.—Evi- TAKE ACTION.—For purposes of this title, if the ‘‘(i) a description of the significant character- dence of compliance that shall include, as Secretary does not notify the Director, as re- istics of the housing market in the State of Ha- appropriate— quired under this subsection and subsection (b), waii, including the availability of housing from ‘‘(i) a certification that the Department of Ha- upon the expiration of the 60-day period de- other public sources, private market housing; waiian Home Lands will comply with— scribed in subparagraph (A)— ‘‘(ii) the manner in which the characteristics ‘‘(I) title VI of the Civil Rights Act of 1964 (42 ‘‘(i) the plan shall be considered to have been referred to in clause (i) influence the decision of U.S.C. 2000d et seq.) or with title VIII of the Act determined to comply with the requirements the Department of Hawaiian Home Lands to use popularly known as the ‘Civil Rights Act of under section 803; and grant amounts to be provided under this title 1968’ (42 U.S.C. 3601 et seq.) in carrying out this ‘‘(ii) the Director shall be considered to have for— title, to the extent that such title is applicable; been notified of compliance. ‘‘(I) rental assistance; and ‘‘(b) NOTICE OF REASONS FOR DETERMINATION ‘‘(II) the production of new units; ‘‘(II) other applicable Federal statutes; OF NONCOMPLIANCE.—If the Secretary deter- ‘‘(III) the acquisition of existing units; or ‘‘(ii) a certification that the Department will mines that a plan submitted under section 803 ‘‘(IV) the rehabilitation of units; require adequate insurance coverage for housing does not comply with the requirements of that ‘‘(iii) a description of the structure, coordina- units that are owned and operated or assisted section, the Secretary shall specify in the notice tion, and means of cooperation between the De- with grant amounts provided under this title, in under subsection (a)—

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00146 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.062 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14017 ‘‘(1) the reasons for noncompliance; and ployed in the development and all maintenance, tional Environmental Policy Act of 1969 (42 ‘‘(2) any modifications necessary for the plan and laborers and mechanics employed in the op- U.S.C. 4321 et seq.) and such other provisions of to meet the requirements of section 803. eration, of the affordable housing project in- law as the regulations of the Secretary specify ‘‘(c) REVIEW.— volved; and to the extent that those responsibilities relate to ‘‘(1) IN GENERAL.—After the Director of the ‘‘(B) a provision that an amount not less than the releases of funds for projects that are cov- Department of Hawaiian Home Lands submits a the wages prevailing in the locality, as predeter- ered by that certification. housing plan under section 803, or any amend- mined by the Secretary of Labor pursuant to the ‘‘(c) CERTIFICATION.—A certification under ment or modification to the plan to the Sec- Act commonly known as the ‘Davis-Bacon Act’ the procedures under this section shall— retary, to the extent that the Secretary considers (46 Stat. 1494, chapter 411; 40 U.S.C. 276a et ‘‘(1) be in a form acceptable to the Secretary; such action to be necessary to make a deter- seq.) shall be paid to all laborers and mechanics ‘‘(2) be executed by the Director of the Depart- mination under this subsection, the Secretary employed in the development of the affordable ment of Hawaiian Home Lands; shall review the plan (including any amend- housing involved. ‘‘(3) specify that the Department of Hawaiian ments or modifications thereto) to determine ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi- Home Lands has fully carried out its respon- whether the contents of the plan— sions relating to wages required under para- sibilities as described under subsection (a); and ‘‘(A) set forth the information required by sec- graph (1) in any contract or agreement for as- ‘‘(4) specify that the Director— tion 803 to be contained in the housing plan; sistance, sale, or lease under this title, shall not ‘‘(A) consents to assume the status of a re- ‘‘(B) are consistent with information and data apply to any individual who performs the serv- sponsible Federal official under the National available to the Secretary; and ices for which the individual volunteered and Environmental Policy Act of 1969 (42 U.S.C. 4321 ‘‘(C) are not prohibited by or inconsistent who is not otherwise employed at any time in et seq.) and each provision of law specified in with any provision of this Act or any other ap- the construction work and received no com- regulations issued by the Secretary to the extent plicable law. pensation or is paid expenses, reasonable bene- that those laws apply by reason of subsection ‘‘(2) INCOMPLETE PLANS.—If the Secretary de- fits, or a nominal fee for those services. (a); and termines under this subsection that any of the ‘‘(B) is authorized and consents on behalf of ‘‘SEC. 806. ENVIRONMENTAL REVIEW. appropriate certifications required under section the Department of Hawaiian Home Lands and ‘‘(a) IN GENERAL.— 803(c)(2)(E) are not included in a plan, the plan the Director to accept the jurisdiction of the ‘‘(1) RELEASE OF FUNDS.— shall be considered to be incomplete. Federal courts for the purpose of enforcement of ‘‘(A) IN GENERAL.—The Secretary may carry ‘‘(d) UPDATES TO PLAN.— the responsibilities of the Director of the Depart- out the alternative environmental protection ‘‘(1) IN GENERAL.—Subject to paragraph (2), ment of Hawaiian Home Lands as such an offi- after a plan under section 803 has been sub- procedures described in subparagraph (B) in cial. order to ensure— mitted for a fiscal year, the Director of the De- ‘‘SEC. 807. REGULATIONS. ‘‘(i) that the policies of the National Environ- partment of Hawaiian Home Lands may comply ‘‘The Secretary shall issue final regulations mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with the provisions of that section for any suc- necessary to carry out this title not later than and other provisions of law that further the ceeding fiscal year (with respect to information October 1, 1999. included for the 5-year period under section purposes of such Act (as specified in regulations issued by the Secretary) are most effectively im- ‘‘SEC. 808. EFFECTIVE DATE. 803(b) or for the 1-year period under section ‘‘Except as otherwise expressly provided in 803(c)) by submitting only such information re- plemented in connection with the expenditure of grant amounts provided under this title; and this title, this title shall take effect on October garding such changes as may be necessary to 1, 1999. update the plan previously submitted. ‘‘(ii) to the public undiminished protection of ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES. ‘‘(2) COMPLETE PLANS.—The Director shall the environment. ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE submit a complete plan under section 803 not ‘‘(B) ALTERNATIVE ENVIRONMENTAL PROTEC- FAMILIES.— later than 4 years after submitting an initial TION PROCEDURE.—In lieu of applying environmental protection procedures otherwise applica- ‘‘(1) PRIMARY OBJECTIVE.—The national objec- plan under that section, and not less frequently tives of this title are— than every 4 years thereafter. ble, the Secretary may by regulation provide for the release of funds for specific projects to the ‘‘(A) to assist and promote affordable housing ‘‘(e) EFFECTIVE DATE.—This section and sec- activities to develop, maintain, and operate af- tion 803 shall take effect on the date provided by Department of Hawaiian Home Lands if the Di- rector of the Department assumes all of the re- fordable housing in safe and healthy environ- the Secretary pursuant to section 807(a) to pro- ments for occupancy by low-income Native Ha- vide for timely submission and review of the sponsibilities for environmental review, decisionmaking, and action under the National Envi- waiian families; housing plan as necessary for the provision of ‘‘(B) to ensure better access to private mort- assistance under this title for fiscal year 2000. ronmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and such other provisions of law as the gage markets and to promote self-sufficiency of ‘‘SEC. 805. TREATMENT OF PROGRAM INCOME low-income Native Hawaiian families; AND LABOR STANDARDS. regulations of the Secretary specify, that would apply to the Secretary were the Secretary to un- ‘‘(C) to coordinate activities to provide hous- ‘‘(a) PROGRAM INCOME.— ing for low-income Native Hawaiian families ‘‘(1) AUTHORITY TO RETAIN.—The Department dertake those projects as Federal projects. ‘‘(2) REGULATIONS.— with Federal, State and local activities to fur- of Hawaiian Home Lands may retain any pro- ther economic and community development; gram income that is realized from any grant ‘‘(A) IN GENERAL.—The Secretary shall issue regulations to carry out this section only after ‘‘(D) to plan for and integrate infrastructure amounts received by the Department under this resources on the Hawaiian Home Lands with title if— consultation with the Council on Environmental Quality. housing development; and ‘‘(A) that income was realized after the initial ‘‘(E) to— ‘‘(B) CONTENTS.—The regulations issued disbursement of the grant amounts received by ‘‘(i) promote the development of private cap- under this paragraph shall— the Department; and ital markets; and ‘‘(i) provide for the monitoring of the environ- ‘‘(B) the Director agrees to use the program ‘‘(ii) allow the markets referred to in clause (i) mental reviews performed under this section; income for affordable housing activities in ac- to operate and grow, thereby benefiting Native ‘‘(ii) in the discretion of the Secretary, facili- cordance with the provisions of this title. Hawaiian communities. tate training for the performance of such re- ‘‘(2) PROHIBITION OF REDUCTION OF GRANT.— ‘‘(2) ELIGIBLE FAMILIES.— The Secretary may not reduce the grant amount views; and ‘‘(A) IN GENERAL.—Except as provided under for the Department of Hawaiian Home Lands ‘‘(iii) provide for the suspension or termi- subparagraph (B), assistance for eligible hous- based solely on— nation of the assumption of responsibilities ing activities under this title shall be limited to ‘‘(A) whether the Department retains program under this section. low-income Native Hawaiian families. income under paragraph (1); or ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.— ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE- ‘‘(B) the amount of any such program income The duty of the Secretary under paragraph MENT.— retained. (2)(B) shall not be construed to limit or reduce ‘‘(i) IN GENERAL.—The Director may provide ‘‘(3) EXCLUSION OF AMOUNTS.—The Secretary any responsibility assumed by the Department assistance for homeownership activities under— may, by regulation, exclude from consideration of Hawaiian Home Lands for grant amounts ‘‘(I) section 810(b); as program income any amounts determined to with respect to any specific release of funds. ‘‘(II) model activities under section 810(f); or be so small that compliance with the require- ‘‘(b) PROCEDURE.— ‘‘(III) loan guarantee activities under section ments of this subsection would create an unrea- ‘‘(1) IN GENERAL.—The Secretary shall author- 184A of the Housing and Community Develop- sonable administrative burden on the Depart- ize the release of funds subject to the procedures ment Act of 1992 to Native Hawaiian families ment. under this section only if, not less than 15 days who are not low-income families, to the extent ‘‘(b) LABOR STANDARDS.— before that approval and before any commitment that the Secretary approves the activities under ‘‘(1) IN GENERAL.—Any contract or agreement of funds to such projects, the Director of the De- that section to address a need for housing for for assistance, sale, or lease pursuant to this partment of Hawaiian Home Lands submits to those families that cannot be reasonably met title shall contain— the Secretary a request for such release accom- without that assistance. ‘‘(A) a provision requiring that an amount not panied by a certification that meets the require- ‘‘(ii) LIMITATIONS.—The Secretary shall estab- less than the wages prevailing in the locality, as ments of subsection (c). lish limitations on the amount of assistance that determined or adopted (subsequent to a deter- ‘‘(2) EFFECT OF APPROVAL.—The approval of may be provided under this title for activities for mination under applicable State or local law) by the Secretary of a certification described in families that are not low-income families. the Secretary, shall be paid to all architects, paragraph (1) shall be deemed to satisfy the re- ‘‘(C) OTHER FAMILIES.—Notwithstanding technical engineers, draftsmen, technicians em- sponsibilities of the Secretary under the Na- paragraph (1), the Director may provide housing

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00147 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.062 pfrm12 PsN: S04PT1 S14018 CONGRESSIONAL RECORD — SENATE November 4, 1999 or housing assistance provided through afford- to protect residents of affordable housing from a low-income family at the time of the initial oc- able housing activities assisted with grant crime. cupancy of that family of that unit; and amounts under this title to a family that is not ‘‘(5) MODEL ACTIVITIES.—Housing activities ‘‘(B) in the case of housing for homeowner- composed of Native Hawaiians if— under model programs that are— ship, is made available for purchase only by a ‘‘(i) the Department determines that the pres- ‘‘(A) designed to carry out the purposes of this family that is a low-income family at the time of ence of the family in the housing involved is es- title; and purchase; and sential to the well-being of Native Hawaiian ‘‘(B) specifically approved by the Secretary as ‘‘(2) each dwelling unit in the housing will re- families; and appropriate for the purpose referred to in sub- main affordable, according to binding commit- ‘‘(ii) the need for housing for the family can- paragraph (A). ments satisfactory to the Secretary, for— not be reasonably met without the assistance. ‘‘SEC. 811. PROGRAM REQUIREMENTS. ‘‘(A) the remaining useful life of the property (as determined by the Secretary) without regard ‘‘(D) PREFERENCE.— ‘‘(a) RENTS.— ‘‘(i) IN GENERAL.—A housing plan submitted ‘‘(1) ESTABLISHMENT.—Subject to paragraph to the term of the mortgage or to transfer of under section 803 may authorize a preference, (2), as a condition to receiving grant amounts ownership; or ‘‘(B) such other period as the Secretary deter- for housing or housing assistance provided under this title, the Director shall develop writ- mines is the longest feasible period of time con- through affordable housing activities assisted ten policies governing rents and homebuyer pay- sistent with sound economics and the purposes with grant amounts provided under this title to ments charged for dwelling units assisted under of this title, except upon a foreclosure by a lend- be provided, to the extent practicable, to families this title, including methods by which such er (or upon other transfer in lieu of foreclosure) that are eligible to reside on the Hawaiian Home rents and homebuyer payments are determined. if that action— Lands. ‘‘(2) MAXIMUM RENT.—In the case of any low- ‘‘(i) recognizes any contractual or legal rights ‘‘(ii) APPLICATION.—In any case in which a income family residing in a dwelling unit as- of any public agency, nonprofit sponsor, or housing plan provides for preference described sisted with grant amounts under this title, the other person or entity to take an action that in clause (i), the Director shall ensure that monthly rent or homebuyer payment (as appli- would— housing activities that are assisted with grant cable) for that dwelling unit may not exceed 30 ‘‘(I) avoid termination of low-income afford- amounts under this title are subject to that pref- percent of the monthly adjusted income of that ability, in the case of foreclosure; or erence. family. ‘‘(II) transfer ownership in lieu of foreclosure; ‘‘(E) USE OF NONPROFIT ORGANIZATIONS.—As a ‘‘(b) MAINTENANCE AND EFFICIENT OPER- and condition of receiving grant amounts under this ATION.— ‘‘(ii) is not for the purpose of avoiding low-in- title, the Department of Hawaiian Home Lands, ‘‘(1) IN GENERAL.—The Director shall, using come affordability restrictions, as determined by shall to the extent practicable, provide for pri- amounts of any grants received under this title, the Secretary. vate nonprofit organizations experienced in the reserve and use for operating under section 810 ‘‘(b) EXCEPTION.—Notwithstanding subsection planning and development of affordable housing such amounts as may be necessary to provide (a), housing assisted pursuant to section for Native Hawaiians to carry out affordable for the continued maintenance and efficient op- 809(a)(2)(B) shall be considered affordable hous- housing activities with those grant amounts. eration of such housing. ing for purposes of this title. ‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING AC- ‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT TIVITIES. subsection may not be construed to prevent the SELECTION. ‘‘(a) IN GENERAL.—Affordable housing activi- Director, or any entity funded by the Depart- ‘‘(a) LEASES.—Except to the extent otherwise ties under this section are activities conducted ment, from demolishing or disposing of housing, provided by or inconsistent with the laws of the in accordance with the requirements of section pursuant to regulations established by the Sec- State of Hawaii, in renting dwelling units in af- 811 to— retary. fordable housing assisted with grant amounts ‘‘(1) develop or to support affordable housing ‘‘(c) INSURANCE COVERAGE.—As a condition to provided under this title, the Director, owner, or for rental or homeownership; or receiving grant amounts under this title, the Di- manager shall use leases that— ‘‘(2) provide housing services with respect to rector shall require adequate insurance coverage ‘‘(1) do not contain unreasonable terms and affordable housing, through the activities de- for housing units that are owned or operated or conditions; scribed in subsection (b). assisted with grant amounts provided under this ‘‘(2) require the Director, owner, or manager to maintain the housing in compliance with ap- ‘‘(b) ACTIVITIES.—The activities described in title. this subsection are the following: ‘‘(d) ELIGIBILITY FOR ADMISSION.—As a condi- plicable housing codes and quality standards; ‘‘(3) require the Director, owner, or manager ‘‘(1) DEVELOPMENT.—The acquisition, new tion to receiving grant amounts under this title, to give adequate written notice of termination of construction, reconstruction, or moderate or the Director shall develop written policies gov- the lease, which shall be the period of time re- substantial rehabilitation of affordable housing, erning the eligibility, admission, and occupancy of families for housing assisted with grant quired under applicable State or local law; which may include— ‘‘(4) specify that, with respect to any notice of amounts provided under this title. ‘‘(A) real property acquisition; eviction or termination, notwithstanding any ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a ‘‘(B) site improvement; State or local law, a resident shall be informed condition to receiving grant amounts under this ‘‘(C) the development of utilities and utility of the opportunity, before any hearing or trial, title, the Director shall develop policies gov- services; to examine any relevant documents, record, or erning the management and maintenance of ‘‘(D) conversion; regulations directly related to the eviction or housing assisted with grant amounts under this ‘‘(E) demolition; termination; ‘‘(F) financing; title. ‘‘(5) require that the Director, owner, or man- ‘‘(G) administration and planning; and ‘‘SEC. 812. TYPES OF INVESTMENTS. ager may not terminate the tenancy, during the ‘‘(H) other related activities. ‘‘(a) IN GENERAL.—Subject to section 811 and term of the lease, except for serious or repeated ‘‘(2) HOUSING SERVICES.—The provision of an applicable housing plan approved under sec- violation of the terms and conditions of the housing-related services for affordable housing, tion 803, the Director shall have— lease, violation of applicable Federal, State, or including— ‘‘(1) the discretion to use grant amounts for local law, or for other good cause; and ‘‘(A) housing counseling in connection with affordable housing activities through the use ‘‘(6) provide that the Director, owner, or man- rental or homeownership assistance; of— ager may terminate the tenancy of a resident for ‘‘(B) the establishment and support of resident ‘‘(A) equity investments; any activity, engaged in by the resident, any organizations and resident management cor- ‘‘(B) interest-bearing loans or advances; member of the household of the resident, or any porations; ‘‘(C) noninterest-bearing loans or advances; guest or other person under the control of the ‘‘(C) energy auditing; ‘‘(D) interest subsidies; resident, that— ‘‘(D) activities related to the provisions of self- ‘‘(E) the leveraging of private investments; or ‘‘(A) threatens the health or safety of, or right sufficiency and other services; and ‘‘(F) any other form of assistance that the to peaceful enjoyment of the premises by, other ‘‘(E) other services related to assisting owners, Secretary determines to be consistent with the residents or employees of the Department, tenants, contractors, and other entities partici- purposes of this title; and owner, or manager; pating or seeking to participate in other housing ‘‘(2) the right to establish the terms of assist- ‘‘(B) threatens the health or safety of, or right activities assisted pursuant to this section. ance provided with funds referred to in para- to peaceful enjoyment of their premises by, per- ‘‘(3) HOUSING MANAGEMENT SERVICES.—The graph (1). sons residing in the immediate vicinity of the provision of management services for affordable ‘‘(b) INVESTMENTS.—The Director may invest premises; or housing, including— grant amounts for the purposes of carrying out ‘‘(C) is criminal activity (including drug-re- ‘‘(A) the preparation of work specifications; affordable housing activities in investment secu- lated criminal activity) on or off the premises. ‘‘(B) loan processing; rities and other obligations, as approved by the ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As ‘‘(C) inspections; Secretary. a condition to receiving grant amounts under ‘‘(D) tenant selection; ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND IN- this title, the Director shall adopt and use writ- ‘‘(E) management of tenant-based rental as- COME TARGETING. ten tenant and homebuyer selection policies and sistance; and ‘‘(a) IN GENERAL.—Housing shall qualify for criteria that— ‘‘(F) management of affordable housing affordable housing for purposes of this title only ‘‘(1) are consistent with the purpose of pro- projects. if— viding housing for low-income families; ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI- ‘‘(1) each dwelling unit in the housing— ‘‘(2) are reasonably related to program eligi- TIES.—The provision of safety, security, and law ‘‘(A) in the case of rental housing, is made bility and the ability of the applicant to perform enforcement measures and activities appropriate available for occupancy only by a family that is the obligations of the lease; and

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‘‘(3) provide for— ‘‘(2) ACTIONS.—If the Secretary takes an ac- ‘‘(aa) modify the findings of fact of the Sec- ‘‘(A) the selection of tenants and homebuyers tion under subparagraph (A), (B), or (C) of retary; or from a written waiting list in accordance with paragraph (1), the Secretary shall continue that ‘‘(bb) make new findings; and the policies and goals set forth in an applicable action until the Secretary determines that the ‘‘(II) shall file— housing plan approved under section 803; and failure by the Department to comply with the ‘‘(aa) such modified or new findings; and ‘‘(B) the prompt notification in writing of any provision has been remedied by the Department ‘‘(bb) the recommendation of the Secretary, if rejected applicant of the grounds for that rejec- and the Department is in compliance with that any, for the modification or setting aside of the tion. provision. original action of the Secretary. ‘‘SEC. 815. REPAYMENT. ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECH- ‘‘(ii) FINDINGS.—The findings referred to in ‘‘If the Department of Hawaiian Home Lands NICAL INCAPACITY.—The Secretary may provide clause (i)(II)(bb) shall, with respect to a ques- uses grant amounts to provide affordable hous- technical assistance for the Department, either tion of fact, be considered to be conclusive if ing under activities under this title and, at any directly or indirectly, that is designed to in- those findings are— time during the useful life of the housing, the crease the capability and capacity of the Direc- ‘‘(I) supported by substantial evidence on the housing does not comply with the requirement tor of the Department to administer assistance record; and under section 813(a)(2), the Secretary shall— provided under this title in compliance with the ‘‘(II) considered as a whole. ‘‘(1) reduce future grant payments on behalf requirements under this title if the Secretary ‘‘(4) FINALITY.— of the Department by an amount equal to the makes a finding under subsection (a), but deter- ‘‘(A) IN GENERAL.—Except as provided in sub- grant amounts used for that housing (under the mines that the failure of the Department to com- paragraph (B), upon the filing of the record authority of section 819(a)(2)); or ply substantially with the provisions of this under this subsection with the court— ‘‘(2) require repayment to the Secretary of any title— ‘‘(i) the jurisdiction of the court shall be ex- amount equal to those grant amounts. ‘‘(1) is not a pattern or practice of activities clusive; and ‘‘(ii) the judgment of the court shall be final. ‘‘SEC. 816. ANNUAL ALLOCATION. constituting willful noncompliance; and ‘‘(2) is a result of the limited capability or ca- ‘‘(B) REVIEW BY SUPREME COURT.—A judg- ‘‘For each fiscal year, the Secretary shall allo- ment under subparagraph (A) shall be subject to cate any amounts made available for assistance pacity of the Department of Hawaiian Home Lands. review by the Supreme Court of the United under this title for the fiscal year, in accordance States upon writ of certiorari or certification, as with the formula established pursuant to section ‘‘(c) REFERRAL FOR CIVIL ACTION.— ‘‘(1) AUTHORITY.—In lieu of, or in addition to, provided in section 1254 of title 28, United States 817 to the Department of Hawaiian Home Lands Code. if the Department complies with the require- any action that the Secretary may take under ‘‘SEC. 819. MONITORING OF COMPLIANCE. ments under this title for a grant under this subsection (a), if the Secretary has reason to be- ‘‘(a) ENFORCEABLE AGREEMENTS.— title. lieve that the Department of Hawaiian Home Lands has failed to comply substantially with ‘‘(1) IN GENERAL.—The Director, through ‘‘SEC. 817. ALLOCATION FORMULA. any provision of this title, the Secretary may binding contractual agreements with owners or ‘‘(a) ESTABLISHMENT.—The Secretary shall, by refer the matter to the Attorney General of the other authorized entities, shall ensure long-term regulation issued not later than the expiration United States with a recommendation that an compliance with the provisions of this title. of the 6-month period beginning on the date of appropriate civil action be instituted. ‘‘(2) MEASURES.—The measures referred to in enactment of the Native American Housing As- ‘‘(2) CIVIL ACTION.—Upon receiving a referral paragraph (1) shall provide for— sistance and Self-Determination Amendments of under paragraph (1), the Attorney General may ‘‘(A) to the extent allowable by Federal and 1999, in the manner provided under section 807, bring a civil action in any United States district State law, the enforcement of the provisions of establish a formula to provide for the allocation court of appropriate jurisdiction for such relief this title by the Department and the Secretary; of amounts available for a fiscal year for block as may be appropriate, including an action— and grants under this title in accordance with the ‘‘(A) to recover the amount of the assistance ‘‘(B) remedies for breach of the provisions re- requirements of this section. furnished under this title that was not expended ferred to in paragraph (1). ‘‘(b) FACTORS FOR DETERMINATION OF NEED.— in accordance with this title; or ‘‘(b) PERIODIC MONITORING.— The formula under subsection (a) shall be based ‘‘(B) for mandatory or injunctive relief. ‘‘(1) IN GENERAL.—Not less frequently than on factors that reflect the needs for assistance ‘‘(d) REVIEW.— annually, the Director shall review the activities for affordable housing activities, including— ‘‘(1) IN GENERAL.—If the Director receives no- conducted and housing assisted under this title ‘‘(1) the number of low-income dwelling units tice under subsection (a) of the termination, re- to assess compliance with the requirements of owned or operated at the time pursuant to a duction, or limitation of payments under this this title. contract between the Director and the Sec- Act, the Director— ‘‘(2) REVIEW.—Each review under paragraph retary; ‘‘(A) may, not later than 60 days after receiv- (1) shall include onsite inspection of housing to ‘‘(2) the extent of poverty and economic dis- ing such notice, file with the United States determine compliance with applicable require- tress and the number of Native Hawaiian fami- Court of Appeals for the Ninth Circuit, or in the ments. lies eligible to reside on the Hawaiian Home United States Court of Appeals for the District ‘‘(3) RESULTS.—The results of each review Lands; and of Columbia, a petition for review of the action under paragraph (1) shall be— ‘‘(3) any other objectively measurable condi- of the Secretary; and ‘‘(A) included in a performance report of the tions that the Secretary and the Director may ‘‘(B) upon the filing of any petition under Director submitted to the Secretary under sec- specify. subparagraph (A), shall forthwith transmit cop- tion 820; and ‘‘(c) OTHER FACTORS FOR CONSIDERATION.—In ies of the petition to the Secretary and the At- ‘‘(B) made available to the public. establishing the formula under subsection (a), torney General of the United States, who shall ‘‘(c) PERFORMANCE MEASURES.—The Secretary the Secretary shall consider the relative admin- represent the Secretary in the litigation. shall establish such performance measures as istrative capacities of the Department of Hawai- ‘‘(2) PROCEDURE.— may be necessary to assess compliance with the ian Home Lands and other challenges faced by ‘‘(A) IN GENERAL.—The Secretary shall file in requirements of this title. the Department, including— the court a record of the proceeding on which ‘‘SEC. 820. PERFORMANCE REPORTS. ‘‘(1) geographic distribution within Hawaiian the Secretary based the action, as provided in ‘‘(a) REQUIREMENT.—For each fiscal year, the Home Lands; and section 2112 of title 28, United States Code. Director shall— ‘‘(2) technical capacity. ‘‘(B) OBJECTIONS.—No objection to the action ‘‘(1) review the progress the Department has ‘‘(d) EFFECTIVE DATE.—This section shall take of the Secretary shall be considered by the court made during that fiscal year in carrying out the effect on the date of enactment of the Native unless the Department has registered the objec- housing plan submitted by the Department American Housing Assistance and Self-Deter- tion before the Secretary. under section 803; and mination Amendments of 1999. ‘‘(3) DISPOSITION.— ‘‘(2) submit a report to the Secretary (in a ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE. ‘‘(A) COURT PROCEEDINGS.— form acceptable to the Secretary) describing the ‘‘(a) ACTIONS BY SECRETARY AFFECTING ‘‘(i) JURISDICTION OF COURT.—The court shall conclusions of the review. GRANT AMOUNTS.— have jurisdiction to affirm or modify the action ‘‘(b) CONTENT.—Each report submitted under ‘‘(1) IN GENERAL.—Except as provided in sub- of the Secretary or to set the action aside in this section for a fiscal year shall— section (b), if the Secretary finds after reason- whole or in part. ‘‘(1) describe the use of grant amounts pro- able notice and opportunity for a hearing that ‘‘(ii) FINDINGS OF FACT.—If supported by sub- vided to the Department of Hawaiian Home the Department of Hawaiian Home Lands has stantial evidence on the record considered as a Lands for that fiscal year; failed to comply substantially with any provi- whole, the findings of fact by the Secretary ‘‘(2) assess the relationship of the use referred sion of this title, the Secretary shall— shall be conclusive. to in paragraph (1) to the goals identified in the ‘‘(A) terminate payments under this title to ‘‘(iii) ADDITION.—The court may order evi- housing plan; the Department; dence, in addition to the evidence submitted for ‘‘(3) indicate the programmatic accomplish- ‘‘(B) reduce payments under this title to the review under this subsection, to be taken by the ments of the Department; and Department by an amount equal to the amount Secretary, and to be made part of the record. ‘‘(4) describe the manner in which the Depart- of such payments that were not expended in ac- ‘‘(B) SECRETARY.— ment would change its housing plan submitted cordance with this title; or ‘‘(i) IN GENERAL.—The Secretary, by reason of under section 803 as a result of its experiences. ‘‘(C) limit the availability of payments under the additional evidence referred to in subpara- ‘‘(c) SUBMISSIONS.—The Secretary shall— this title to programs, projects, or activities not graph (A) and filed with the court— ‘‘(1) establish a date for submission of each re- affected by such failure to comply. ‘‘(I) may— port under this section;

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00149 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.062 pfrm12 PsN: S04PT1 S14020 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(2) review each such report; and Secretary shall submit to Congress a report that ‘‘(A) a Native Hawaiian family; ‘‘(3) with respect to each such report, make contains— ‘‘(B) the Department of Hawaiian Home recommendations as the Secretary considers ap- ‘‘(1) a description of the progress made in ac- Lands; propriate to carry out the purposes of this title. complishing the objectives of this title; ‘‘(C) the Office of Hawaiian Affairs; or ‘‘(d) PUBLIC AVAILABILITY.— ‘‘(2) a summary of the use of funds available ‘‘(D) a private nonprofit organization experi- ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre- under this title during the preceding fiscal year; enced in the planning and development of af- paring a report under this section, the Director and fordable housing for Native Hawaiians. shall make the report publicly available to the ‘‘(3) a description of the aggregate out- ‘‘(2) ELIGIBLE HOUSING.— beneficiaries of the Hawaiian Homes Commis- standing loan guarantees under section 184A of ‘‘(A) IN GENERAL.—The loan will be used to sion Act, 1920 (42 Stat. 108 et seq.) and give a the Housing and Community Development Act construct, acquire, or rehabilitate not more than sufficient amount of time to permit those bene- of 1992. 4-family dwellings that are standard housing ficiaries to comment on that report before it is ‘‘(b) RELATED REPORTS.—The Secretary may and are located on Hawaiian Home Lands for submitted to the Secretary (in such manner and require the Director to submit to the Secretary which a housing plan described in subpara- at such time as the Director may determine). such reports and other information as may be graph (B) applies. ‘‘(2) SUMMARY OF COMMENTS.—The report necessary in order for the Secretary to prepare ‘‘(B) HOUSING PLAN.—A housing plan de- shall include a summary of any comments re- the report required under subsection (a). scribed in this subparagraph is a housing plan ceived by the Director from beneficiaries under ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS. that— paragraph (1) regarding the program to carry ‘‘There are authorized to be appropriated to ‘‘(i) has been submitted and approved by the out the housing plan. the Department of Housing and Urban Develop- Secretary under section 803 of the Native Amer- ican Housing Assistance and Self-Determination ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY. ment for grants under this title such sums as may be necessary for each of fiscal years 2000, Amendments of 1999; and ‘‘(a) ANNUAL REVIEW.— ‘‘(ii) provides for the use of loan guarantees 2001, 2002, 2003, and 2004.’’. ‘‘(1) IN GENERAL.—The Secretary shall, not under this section to provide affordable homeless frequently than on an annual basis, make SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAI- ownership housing on Hawaiian Home Lands. IAN HOUSING. such reviews and audits as may be necessary or ‘‘(3) SECURITY.—The loan may be secured by Subtitle E of title I of the Housing and Com- appropriate to determine whether— any collateral authorized under applicable Fed- munity Development Act of 1992 is amended by ‘‘(A) the Director has— eral or State law. inserting after section 184 (12 U.S.C. 1715z–13a) ‘‘(i) carried out eligible activities under this ‘‘(4) LENDERS.— title in a timely manner; the following: ‘‘(A) IN GENERAL.—The loan shall be made ‘‘(ii) carried out and made certifications in ac- ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HA- only by a lender approved by, and meeting cordance with the requirements and the primary WAIIAN HOUSING. qualifications established by, the Secretary, in- objectives of this title and with other applicable ‘‘(a) DEFINITIONS.—In this section: cluding any lender described in subparagraph laws; and ‘‘(1) DEPARTMENT OF HAWAIIAN HOME (B), except that a loan otherwise insured or ‘‘(iii) a continuing capacity to carry out the LANDS.—The term ‘Department of Hawaiian guaranteed by an agency of the Federal Govern- eligible activities in a timely manner; Home Lands’ means the agency or department ment or made by the Department of Hawaiian ‘‘(B) the Director has complied with the hous- of the government of the State of Hawaii that is Home Lands from amounts borrowed from the ing plan submitted by the Director under section responsible for the administration of the Hawai- United States shall not be eligible for a guar- 803; and ian Homes Commission Act, 1920 (42 Stat. 108 et antee under this section. ‘‘(C) the performance reports of the Depart- seq.). ‘‘(B) APPROVAL.—The following lenders shall ment under section 821 are accurate. ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti- be considered to be lenders that have been ap- ‘‘(2) ONSITE VISITS.—Each review conducted ty’ means a Native Hawaiian family, the De- proved by the Secretary: under this section shall, to the extent prac- partment of Hawaiian Home Lands, the Office ‘‘(i) Any mortgagee approved by the Secretary ticable, include onsite visits by employees of the of Hawaiian Affairs, and private nonprofit or for participation in the single family mortgage Department of Housing and Urban Develop- private for-profit organizations experienced in insurance program under title II of the National ment. the planning and development of affordable Housing Act (12 U.S.C.A. 1707 et seq.). ‘‘(b) REPORT BY SECRETARY.—The Secretary housing for Native Hawaiians. ‘‘(ii) Any lender that makes housing loans shall give the Department of Hawaiian Home ‘‘(3) FAMILY.—The term ‘family’ means 1 or under chapter 37 of title 38, United States Code, Lands not less than 30 days to review and com- more persons maintaining a household, as the that are automatically guaranteed under section ment on a report under this subsection. After Secretary shall by regulation provide. 3702(d) of title 38, United States Code. taking into consideration the comments of the ‘‘(4) GUARANTEE FUND.—The term ‘Guarantee ‘‘(iii) Any lender approved by the Secretary of Department, the Secretary may revise the report Fund’ means the Native Hawaiian Housing Agriculture to make guaranteed loans for single and shall make the comments of the Department Loan Guarantee Fund established under sub- family housing under the Housing Act of 1949 and the report with any revisions, readily avail- section (i). (42 U.S.C.A. 1441 et seq.). able to the public not later than 30 days after ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha- ‘‘(iv) Any other lender that is supervised, ap- receipt of the comments of the Department. waiian Home Lands’ means lands that— proved, regulated, or insured by any agency of ‘‘(c) EFFECT OF REVIEWS.—The Secretary may ‘‘(A) have the status of Hawaiian Home the Federal Government. make appropriate adjustments in the amount of Lands under section 204 of the Hawaiian Homes ‘‘(5) TERMS.—The loan shall— annual grants under this title in accordance Commission Act (42 Stat. 110); or ‘‘(A) be made for a term not exceeding 30 with the findings of the Secretary pursuant to ‘‘(B) are acquired pursuant to that Act. years; reviews and audits under this section. The Sec- ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native Ha- ‘‘(B) bear interest (exclusive of the guarantee retary may adjust, reduce, or withdraw grant waiian’ means any individual who is— fee under subsection (d) and service charges, if amounts, or take other action as appropriate in ‘‘(A) a citizen of the United States; and any) at a rate agreed upon by the borrower and accordance with the reviews and audits of the ‘‘(B) a descendant of the aboriginal people, the lender and determined by the Secretary to be Secretary under this section, except that grant who, prior to 1778, occupied and exercised sov- reasonable, but not to exceed the rate generally amounts already expended on affordable hous- ereignty in the area that currently constitutes charged in the area (as determined by the Sec- ing activities may not be recaptured or deducted the State of Hawaii, as evidenced by— retary) for home mortgage loans not guaranteed ‘‘(i) genealogical records; from future assistance provided to the Depart- or insured by any agency or instrumentality of ‘‘(ii) verification by kupuna (elders) or ment of Hawaiian Home Lands. the Federal Government; kama’aina (long-term community residents); or ‘‘(C) involve a principal obligation not ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AU- ‘‘(iii) birth records of the State of Hawaii. DITS. exceeding— ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The term ‘‘(i) 97.75 percent of the appraised value of the ‘‘To the extent that the financial transactions ‘Office of Hawaiian Affairs’ means the entity of of the Department of Hawaiian Home Lands in- property as of the date the loan is accepted for that name established under the constitution of guarantee (or 98.75 percent if the value of the volving grant amounts under this title relate to the State of Hawaii. amounts provided under this title, those trans- property is $50,000 or less); or ‘‘(b) AUTHORITY.—To provide access to ‘‘(ii) the amount approved by the Secretary actions may be audited by the Comptroller Gen- sources of private financing to Native Hawaiian eral of the United States under such regulations under this section; and families who otherwise could not acquire hous- ‘‘(D) involve a payment on account of the as may be prescribed by the Comptroller Gen- ing financing because of the unique legal status property— eral. The Comptroller General of the United of the Hawaiian Home Lands or as a result of ‘‘(i) in cash or its equivalent; or States shall have access to all books, accounts, a lack of access to private financial markets, the ‘‘(ii) through the value of any improvements records, reports, files, and other papers, things, Secretary may guarantee an amount not to ex- to the property made through the skilled or un- or property belonging to or in use by the De- ceed 100 percent of the unpaid principal and in- skilled labor of the borrower, as the Secretary partment of Hawaiian Home Lands pertaining terest that is due on an eligible loan under sub- shall provide. to such financial transactions and necessary to section (b). ‘‘(d) CERTIFICATE OF GUARANTEE.— facilitate the audit. ‘‘(c) ELIGIBLE LOANS.—Under this section, a ‘‘(1) APPROVAL PROCESS.— ‘‘SEC. 823. REPORTS TO CONGRESS. loan is an eligible loan if that loan meets the ‘‘(A) IN GENERAL.—Before the Secretary ap- ‘‘(a) IN GENERAL.—Not later than 90 days following requirements: proves any loan for guarantee under this sec- after the conclusion of each fiscal year in which ‘‘(1) ELIGIBLE BORROWERS.—The loan is made tion, the lender shall submit the application for assistance under this title is made available, the only to a borrower who is— the loan to the Secretary for examination.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00150 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.062 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14021

‘‘(B) APPROVAL.—If the Secretary approves ‘‘(ii) bar such lender or holder from acquiring note or judgment evidencing the debt shall be the application submitted under subparagraph additional loans guaranteed under this section; assigned to the United States and the holder (A), the Secretary shall issue a certificate under and shall have no further claim against the borrower this subsection as evidence of the loan guar- ‘‘(iii) require that such lender or holder as- or the United States. The Secretary shall then antee approved. sume not less than 10 percent of any loss on fur- take such action to collect as the Secretary de- ‘‘(2) STANDARD FOR APPROVAL.—The Secretary ther loans made or held by the lender or holder termines to be appropriate. may approve a loan for guarantee under this that are guaranteed under this section. ‘‘(2) LIMITATIONS ON LIQUIDATION.— section and issue a certificate under this sub- ‘‘(2) CIVIL MONEY PENALTIES FOR INTENTIONAL ‘‘(A) IN GENERAL.—If a borrower defaults on a section only if the Secretary determines that VIOLATIONS.— loan guaranteed under this section that involves there is a reasonable prospect of repayment of ‘‘(A) IN GENERAL.—The Secretary may impose a security interest in restricted Hawaiian Home the loan. a civil monetary penalty on a lender or holder Land property, the mortgagee or the Secretary ‘‘(3) EFFECT.— of a guarantee certificate under subsection (d) if shall only pursue liquidation after offering to ‘‘(A) IN GENERAL.—A certificate of guarantee the Secretary determines that the holder or transfer the account to another eligible Hawai- issued under this subsection by the Secretary lender has intentionally failed— ian family or the Department of Hawaiian Home shall be conclusive evidence of the eligibility of ‘‘(i) to maintain adequate accounting records; Lands. the loan for guarantee under this section and ‘‘(ii) to adequately service loans guaranteed ‘‘(B) LIMITATION.—If, after action is taken the amount of that guarantee. under this section; or under subparagraph (A), the mortgagee or the ‘‘(B) EVIDENCE.—The evidence referred to in ‘‘(iii) to exercise proper credit or underwriting Secretary subsequently proceeds to liquidate the subparagraph (A) shall be incontestable in the judgment. account, the mortgagee or the Secretary shall hands of the bearer. ‘‘(B) PENALTIES.—A civil monetary penalty not sell, transfer, or otherwise dispose of or al- ‘‘(C) FULL FAITH AND CREDIT.—The full faith imposed under this paragraph shall be imposed ienate the property described in subparagraph and credit of the United States is pledged to the in the manner and be in an amount provided (A) except to another eligible Hawaiian family payment of all amounts agreed to be paid by the under section 536 of the National Housing Act or to the Department of Hawaiian Home Lands. Secretary as security for the obligations made by (12 U.S.C.A. 1735f–1) with respect to mortgagees ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE the Secretary under this section. and lenders under that Act. FUND.— ‘‘(4) FRAUD AND MISREPRESENTATION.—This AYMENT ON LOANS MADE IN GOOD ‘‘(3) P ‘‘(1) ESTABLISHMENT.—There is established in subsection may not be construed— FAITH.—Notwithstanding paragraphs (1) and the Treasury of the United States the Hawaiian ‘‘(A) to preclude the Secretary from estab- (2), if a loan was made in good faith, the Sec- lishing defenses against the original lender Housing Loan Guarantee Fund for the purpose retary may not refuse to pay a lender or holder of providing loan guarantees under this section. based on fraud or material misrepresentation; or of a valid guarantee on that loan, without re- ‘‘(B) to bar the Secretary from establishing by ‘‘(2) CREDITS.—The Guarantee Fund shall be gard to whether the lender or holder is barred credited with— regulations that are on the date of issuance or under this subsection. disbursement, whichever is earlier, partial de- ‘‘(A) any amount, claims, notes, mortgages, ‘‘(i) PAYMENT UNDER GUARANTEE.— contracts, and property acquired by the Sec- fenses to the amount payable on the guarantee. ‘‘(1) LENDER OPTIONS.— retary under this section, and any collections ‘‘(e) GUARANTEE FEE.— ‘‘(A) IN GENERAL.— and proceeds therefrom; ‘‘(1) IN GENERAL.—The Secretary shall fix and ‘‘(i) NOTIFICATION.—If a borrower on a loan ‘‘(B) any amounts appropriated pursuant to collect a guarantee fee for the guarantee of a guaranteed under this section defaults on the paragraph (7); loan under this section, which may not exceed loan, the holder of the guarantee certificate ‘‘(C) any guarantee fees collected under sub- the amount equal to 1 percent of the principal shall provide written notice of the default to the section (d); and obligation of the loan. Secretary. ‘‘(D) any interest or earnings on amounts in- ‘‘(2) PAYMENT.—The fee under this subsection ‘‘(ii) PAYMENT.—Upon providing the notice re- shall— quired under clause (i), the holder of the guar- vested under paragraph (4). ‘‘(A) be paid by the lender at time of issuance antee certificate shall be entitled to payment ‘‘(3) USE.—Amounts in the Guarantee Fund of the guarantee; and under the guarantee (subject to the provisions of shall be available, to the extent provided in ap- ‘‘(B) be adequate, in the determination of the this section) and may proceed to obtain payment propriations Acts, for— Secretary, to cover expenses and probable losses. in 1 of the following manners: ‘‘(A) fulfilling any obligations of the Secretary ‘‘(3) DEPOSIT.—The Secretary shall deposit ‘‘(I) FORECLOSURE.— with respect to loans guaranteed under this sec- any fees collected under this subsection in the ‘‘(aa) IN GENERAL.—The holder of the certifi- tion, including the costs (as that term is defined Native Hawaiian Housing Loan Guarantee cate may initiate foreclosure proceedings (after in section 502 of the Federal Credit Reform Act Fund established under subsection (j). providing written notice of that action to the of 1990 (2 U.S.C. 661a)) of such loans; ‘‘(f) LIABILITY UNDER GUARANTEE.—The li- Secretary). ‘‘(B) paying taxes, insurance, prior liens, ex- ability under a guarantee provided under this ‘‘(bb) PAYMENT.—Upon a final order by the penses necessary to make fiscal adjustment in section shall decrease or increase on a pro rata court authorizing foreclosure and submission to connection with the application and transmittal basis according to any decrease or increase in the Secretary of a claim for payment under the of collections, and other expenses and advances the amount of the unpaid obligation under the guarantee, the Secretary shall pay to the holder to protect the Secretary for loans which are provisions of the loan agreement involved. of the certificate the pro rata portion of the guaranteed under this section or held by the ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith- amount guaranteed (as determined pursuant to Secretary; standing any other provision of law, any loan subsection (f)) plus reasonable fees and expenses ‘‘(C) acquiring such security property at fore- guaranteed under this section, including the seas approved by the Secretary. closure sales or otherwise; curity given for the loan, may be sold or as- ‘‘(cc) SUBROGATION.—The rights of the Sec- ‘‘(D) paying administrative expenses in con- signed by the lender to any financial institution retary shall be subrogated to the rights of the nection with this section; and subject to examination and supervision by an holder of the guarantee. The holder shall assign ‘‘(E) reasonable and necessary costs of reha- agency of the Federal Government or of any the obligation and security to the Secretary. bilitation and repair to properties that the Sec- State or the District of Columbia. ‘‘(II) NO FORECLOSURE.— retary holds or owns pursuant to this section. ‘‘(h) DISQUALIFICATION OF LENDERS AND CIVIL ‘‘(aa) IN GENERAL.—Without seeking fore- ‘‘(4) INVESTMENT.—Any amounts in the Guar- MONEY PENALTIES.— closure (or in any case in which a foreclosure antee Fund determined by the Secretary to be in ‘‘(1) IN GENERAL.— excess of amounts currently required at the time ‘‘(A) GROUNDS FOR ACTION.—The Secretary proceeding initiated under clause (i) continues of the determination to carry out this section may take action under subparagraph (B) if the for a period in excess of 1 year), the holder of may be invested in obligations of the United Secretary determines that any lender or holder the guarantee may submit to the Secretary a re- States. of a guarantee certificate under subsection (c)— quest to assign the obligation and security inter- ‘‘(i) has failed— est to the Secretary in return for payment of the ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR- ‘‘(I) to maintain adequate accounting records; claim under the guarantee. The Secretary may ANTEE LOANS AND MORTGAGES.— ‘‘(II) to service adequately loans guaranteed accept assignment of the loan if the Secretary ‘‘(A) REQUIREMENT OF APPROPRIATIONS.—The under this section; or determines that the assignment is in the best in- authority of the Secretary to enter into commit- ‘‘(III) to exercise proper credit or underwriting terest of the United States. ments to guarantee loans under this section judgment; or ‘‘(bb) PAYMENT.—Upon assignment, the Sec- shall be effective for any fiscal year to the ex- ‘‘(ii) has engaged in practices otherwise detri- retary shall pay to the holder of the guarantee tent, or in such amounts as are, or have been, mental to the interest of a borrower or the the pro rata portion of the amount guaranteed provided in appropriations Acts, without regard United States. (as determined under subsection (f)). to the fiscal year for which such amounts were ‘‘(B) ACTIONS.—Upon a determination by the ‘‘(cc) SUBROGATION.—The rights of the Sec- appropriated. Secretary that a holder of a guarantee certifi- retary shall be subrogated to the rights of the ‘‘(B) LIMITATIONS ON COSTS OF GUARANTEES.— cate under subsection (c) has failed to carry out holder of the guarantee. The holder shall assign The authority of the Secretary to enter into an activity described in subparagraph (A)(i) or the obligation and security to the Secretary. commitments to guarantee loans under this sec- has engaged in practices described in subpara- ‘‘(B) REQUIREMENTS.—Before any payment tion shall be effective for any fiscal year only to graph (A)(ii), the Secretary may— under a guarantee is made under subparagraph the extent that amounts in the Guarantee Fund ‘‘(i) refuse, either temporarily or permanently, (A), the holder of the guarantee shall exhaust are or have been made available in appropria- to guarantee any further loans made by such all reasonable possibilities of collection. Upon tions Acts to cover the costs (as that term is de- lender or holder; payment, in whole or in part, to the holder, the fined in section 502 of the Federal Credit Reform

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00151 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.062 pfrm12 PsN: S04PT1 S14022 CONGRESSIONAL RECORD — SENATE November 4, 1999 Act of 1990 (2 U.S.C. 661a)) of such loan guaran- The legislative clerk read as follows: Native Hawaiians continue to have the tees for such fiscal year. Any amounts appro- The Senator from Iowa [Mr. GRASSLEY], for greatest unmet need for housing and the priated pursuant to this subparagraph shall re- Mr. INOUYE, proposes an amendment num- highest rates of overcrowding in the United main available until expended. bered 2511. States; ‘‘(C) LIMITATION ON OUTSTANDING AGGREGATE (6) among the Native American population PRINCIPAL AMOUNT.—Subject to the limitations The amendment is as follows: of the United States, Native Hawaiians expe- On page 98, strike line 23 and all that fol- in subparagraphs (A) and (B), the Secretary rience the highest percentage of housing lows through page 99, line 8. may enter into commitments to guarantee loans problems in the United States, as the On page 118, line 20, strike ‘‘1999’’ and in- under this section for each of fiscal years 2000, percentage— sert ‘‘2000’’. 2001, 2002, 2003, and 2004 with an aggregate out- (A) of housing problems in the Native Ha- standing principal amount not exceeding On page 118, line 23, strike ‘‘October 1, 1999’’ and insert ‘‘the date of enactment of waiian population is 49 percent, as compared $100,000,000 for each such fiscal year. to— ‘‘(6) LIABILITIES.—All liabilities and obliga- the Native American Housing Assistance and Self-Determination Amendments of 1999’’. (i) 44 percent for American Indian and tions of the assets credited to the Guarantee Alaska Native households in Indian country; Fund under paragraph (2)(A) shall be liabilities Mr. GRASSLEY. Mr. President, I ask and and obligations of the Guarantee Fund. unanimous consent that the amend- (ii) 27 percent for all other households in ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— ment be agreed to. the United States; and There are authorized to be appropriated to the The PRESIDING OFFICER. Without (B) overcrowding in the Native Hawaiian Guarantee Fund to carry out this section such population is 36 percent as compared to 3 sums as may be necessary for each of fiscal objection, it is so ordered. percent for all other households in the years 2000, 2001, 2002, 2003, and 2004. The amendment (No. 2511) was agreed ‘‘(k) REQUIREMENTS FOR STANDARD HOUS- to. United States; ING.— Mr. GRASSLEY. Mr. President, I ask (7) among the Native Hawaiian population, ‘‘(1) IN GENERAL.—The Secretary shall, by reg- unanimous consent that the substitute the needs of Native Hawaiians, as that term is defined in section 801 of the Native Amer- ulation, establish housing safety and quality amendment, as amended, be agreed to. standards to be applied for use under this sec- ican Housing Assistance and Self-Determina- The PRESIDING OFFICER. Without tion Act of 1996, as added by section 3 of this tion. objection, it is so ordered. ‘‘(2) STANDARDS.—The standards referred to Act, eligible to reside on the Hawaiian Home in paragraph (1) shall— The committee amendment, as Lands are the most severe, as— ‘‘(A) provide sufficient flexibility to permit the amended, was agreed to. (A) the percentage of overcrowding in Na- use of various designs and materials in housing Mr. GRASSLEY. I ask unanimous tive Hawaiian households on the Hawaiian acquired with loans guaranteed under this sec- consent that the bill, as amended, be Home Lands is 36 percent; and tion; and read the third time, passed, and the (B) approximately 13,000 Native Hawaiians, ‘‘(B) require each dwelling unit in any hous- motion to reconsider be laid upon the which constitute 95 percent of the Native Ha- ing acquired in the manner described in sub- waiians who are eligible to reside on the Ha- paragraph (A) to— table, and that any statements relating waiian Home Lands, are in need of housing; ‘‘(i) be decent, safe, sanitary, and modest in to the bill be printed in the RECORD. (8) applying the Department of Housing size and design; The PRESIDING OFFICER. Without and Urban Development guidelines— ‘‘(ii) conform with applicable general con- objection, it is so ordered. (A) 70.8 percent of Native Hawaiians who struction standards for the region in which the The bill (S. 225), as amended, was either reside or who are eligible to reside on housing is located; read the third time and passed, as fol- the Hawaiian Home Lands have incomes that ‘‘(iii) contain a plumbing system that— fall below the median family income; and ‘‘(I) uses a properly installed system of piping; lows: (B) 50 percent of Native Hawaiians who ei- ‘‘(II) includes a kitchen sink and a partitional S. 225 ther reside or who are eligible to reside on bathroom with lavatory, toilet, and bath or Be it enacted by the Senate and House of Rep- the Hawaiian Home Lands have incomes shower; and resentatives of the United States of America in below 30 percent of the median family in- ‘‘(III) uses water supply, plumbing, and sew- Congress assembled, age disposal systems that conform to any min- come; SECTION 1. SHORT TITLE. 1 imum standards established by the applicable (9) ⁄3 of those Native Hawaiians who are el- This Act may be cited as the ‘‘Native county or State; igible to reside on the Hawaiian Home Lands ‘‘(iv) contain an electrical system using wiring American Housing Assistance and Self-De- pay more than 30 percent of their income for termination Amendments of 1999’’. 1 and equipment properly installed to safely sup- shelter, and ⁄2 of those Native Hawaiians ply electrical energy for adequate lighting and SEC. 2. FINDINGS. face overcrowding; for operation of appliances that conforms to any Congress finds that— (10) the extraordinarily severe housing appropriate county, State, or national code; (1) the United States has undertaken a re- needs of Native Hawaiians demonstrate that ‘‘(v) be not less than the size provided under sponsibility to promote the general welfare Native Hawaiians who either reside on, or the applicable locally adopted standards for size of the United States by— are eligible to reside on, Hawaiian Home of dwelling units, except that the Secretary, (A) employing its resources to remedy the Lands have been denied equal access to Fed- upon request of the Department of Hawaiian unsafe and unsanitary housing conditions eral low-income housing assistance programs Home Lands may waive the size requirements and the acute shortage of decent, safe, and available to other qualified residents of the under this paragraph; and sanitary dwellings for families of lower in- United States, and that a more effective ‘‘(vi) conform with the energy performance re- come; and means of addressing their housing needs quirements for new construction established by (B) developing effective partnerships with must be authorized; the Secretary under section 526(a) of the Na- governmental and private entities to accom- (11) consistent with the recommendations tional Housing Act (12 U.S.C.A. 1735f–4), unless plish the objectives referred to in subpara- of the National Commission on American In- the Secretary determines that the requirements graph (A); dian, Alaska Native, and Native Hawaiian are not applicable. (2) the United States has a special respon- Housing, and in order to address the con- ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STAT- sibility for the welfare of the Native peoples tinuing prevalence of extraordinarily severe UTES.—To the extent that the requirements of of the United States, including Native Ha- housing needs among Native Hawaiians who title VI of the Civil Rights Act of 1964 (42 U.S.C. waiians; either reside or are eligible to reside on the 2000d et seq.) or of title VIII of the Act popu- (3) pursuant to the provisions of the Ha- Hawaiian Home Lands, Congress finds it nec- larly known as the ‘Civil Rights Act of 1968’ (42 waiian Homes Commission Act, 1920 (42 Stat. essary to extend the Federal low-income U.S.C.A. 3601 et seq.) apply to a guarantee pro- 108 et seq.), the United States set aside housing assistance available to American In- vided under this subsection, nothing in the re- 200,000 acres of land in the Federal territory dians and Alaska Natives under the Native quirements concerning discrimination on the that later became the State of Hawaii in American Housing Assistance and Self-De- basis of race shall be construed to prevent the order to establish a homeland for the native termination Act of 1996 (25 U.S.C. 4101 et provision of the guarantee to an eligible entity people of Hawaii—Native Hawaiians; seq.) to those Native Hawaiians; on the basis that the entity serves Native Ha- (4) despite the intent of Congress in 1920 to (12) under the treatymaking power of the waiian families or is a Native Hawaiian fam- address the housing needs of Native Hawai- United States, Congress had the constitu- ily.’’. ians through the enactment of the Hawaiian tional authority to confirm a treaty between AMENDMENT NO. 2511 Homes Commission Act, 1920 (42 Stat. 108 et the United States and the government that (Purpose: To make a series of amendments) seq.), Native Hawaiians eligible to reside on represented the Hawaiian people, and from Mr. GRASSLEY. Mr. President, I un- the Hawaiian home lands have been fore- 1826 until 1893, the United States recognized closed from participating in Federal housing the independence of the Kingdom of Hawaii, derstand Senator INOUYE has an assistance programs available to all other el- extended full diplomatic recognition to the amendment at the desk, and I ask for igible families in the United States; Hawaiian Government, and entered into its consideration. (5) although Federal housing assistance treaties and conventions with the Hawaiian The PRESIDING OFFICER. The programs have been administered on a ra- monarchs to govern commerce and naviga- clerk will report. cially neutral basis in the State of Hawaii, tion in 1826, 1842, 1849, 1875, and 1887;

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00152 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.062 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14023 (13) the United States has recognized and (C) the authorization of mortgage loans in- ‘‘(A) the median income for the Hawaiian reaffirmed that— sured by the Federal Housing Administra- housing area, which shall be determined by (A) Native Hawaiians have a cultural, his- tion for the purchase, construction, or refi- the Secretary; or toric, and land-based link to the indigenous nancing of homes on Hawaiian Home Lands ‘‘(B) the median income for the State of people who exercised sovereignty over the under the Act of June 27, 1934 (commonly re- Hawaii. Hawaiian Islands, and that group has never ferred to as the ‘‘National Housing Act’’ (42 ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native relinquished its claims to sovereignty or its Stat. 1246 et seq., chapter 847; 12 U.S.C. 1701 Hawaiian’ means any individual who is— sovereign lands; et seq.)); ‘‘(A) a citizen of the United States; and (B) Congress does not extend services to (D) authorizing Native Hawaiian represen- ‘‘(B) a descendant of the aboriginal people, Native Hawaiians because of their race, but tation on the National Commission on Amer- who, prior to 1778, occupied and exercised because of their unique status as the indige- ican Indian, Alaska Native, and Native Ha- sovereignty in the area that currently con- nous people of a once sovereign nation as to waiian Housing under Public Law 101–235; stitutes the State of Hawaii, as evidenced whom the United States has established a (E) the inclusion of Native Hawaiians in by— trust relationship; the definition under section 3764 of title 38, ‘‘(i) genealogical records; (C) Congress has also delegated broad au- United States Code, applicable to subchapter ‘‘(ii) verification by kupuna (elders) or thority to administer a portion of the Fed- V of chapter 37 of title 38, United States kama’aina (long-term community residents); eral trust responsibility to the State of Ha- Code (relating to a housing loan program for or waii; Native American veterans); and ‘‘(iii) birth records of the State of Hawaii. (D) the political status of Native Hawai- (F) the enactment of the Hawaiian Home ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE ians is comparable to that of American Indi- Lands Recovery Act (109 Stat. 357; 48 U.S.C. HOUSING ans and Alaska Natives; and 491, note prec.) which establishes a process ACTIVITIES. (E) the aboriginal, indigenous people of the for the conveyance of Federal lands to the ‘‘(a) GRANT AUTHORITY.—For each fiscal United States have— Department of Hawaiian Homes Lands that year, the Secretary shall (to the extent (i) a continuing right to autonomy in their are equivalent in value to lands acquired by amounts are made available to carry out this internal affairs; and the United States from the Hawaiian Home title) make a grant under this title to the (ii) an ongoing right of self-determination Lands inventory. Department of Hawaiian Home Lands to and self-governance that has never been ex- carry out affordable housing activities for SEC. 3. HOUSING ASSISTANCE. tinguished; Native Hawaiian families who are eligible to (14) the political relationship between the The Native American Housing Assistance reside on the Hawaiian Home Lands. United States and the Native Hawaiian peo- and Self-Determination Act of 1996 (25 U.S.C. ‘‘(b) PLAN REQUIREMENT.— ple has been recognized and reaffirmed by 4101 et seq.) is amended by adding at the end ‘‘(1) IN GENERAL.—The Secretary may make the United States as evidenced by the inclu- the following: a grant under this title to the Department of sion of Native Hawaiians in— ‘‘TITLE VIII—HOUSING ASSISTANCE FOR Hawaiian Home Lands for a fiscal year only (A) the Native American Programs Act of NATIVE HAWAIIANS if— 1974 (42 U.S.C. 2291 et seq.); ‘‘(A) the Director has submitted to the ‘‘SEC. 801. DEFINITIONS. (B) the American Indian Religious Free- Secretary a housing plan for that fiscal year; dom Act (42 U.S.C. 1996 et seq.); ‘‘In this title: and (C) the National Museum of the American ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS; ‘‘(B) the Secretary has determined under Indian Act (20 U.S.C. 80q et seq.); DEPARTMENT.—The term ‘Department of Ha- section 804 that the housing plan complies (D) the Native American Graves Protection waiian Home Lands’ or ‘Department’ means with the requirements of section 803. and Repatriation Act (25 U.S.C. 3001 et seq.); the agency or department of the government ‘‘(2) WAIVER.—The Secretary may waive (E) the National Historic Preservation Act of the State of Hawaii that is responsible for the applicability of the requirements under (16 U.S.C. 470 et seq.); the administration of the Hawaiian Homes paragraph (1), in part, if the Secretary finds (F) the Native American Languages Act of Commission Act, 1920 (42 Stat. 108 et seq.). that the Department of Hawaiian Home 1992 (106 Stat. 3434); ‘‘(2) DIRECTOR.—The term ‘Director’ means Lands has not complied or cannot comply (G) the American Indian, Alaska Native the Director of the Department of Hawaiian with those requirements due to cir- and Native Hawaiian Culture and Arts Devel- Home Lands. cumstances beyond the control of the De- opment Act (20 U.S.C. 4401 et seq.); ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAM- partment of Hawaiian Home Lands. (H) the Job Training Partnership Act (29 ILIES.— ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVI- U.S.C. 1501 et seq.); and ‘‘(A) IN GENERAL.—The term ‘elderly fam- TIES UNDER PLAN.—Except as provided in (I) the Older Americans Act of 1965 (42 ily’ or ‘near-elderly family’ means a family subsection (e), amounts provided under a U.S.C. 3001 et seq.); and whose head (or his or her spouse), or whose grant under this section may be used only (15) in the area of housing, the United sole member, is— for affordable housing activities under this States has recognized and reaffirmed the po- ‘‘(i) for an elderly family, an elderly per- title that are consistent with a housing plan litical relationship with the Native Hawaiian son; or approved under section 804. people through— ‘‘(ii) for a near-elderly family, a near-elder- ‘‘(d) ADMINISTRATIVE EXPENSES.— (A) the enactment of the Hawaiian Homes ly person. ‘‘(1) IN GENERAL.—The Secretary shall, by Commission Act, 1920 (42 Stat. 108 et seq.), ‘‘(B) CERTAIN FAMILIES INCLUDED.—The regulation, authorize the Department of Ha- which set aside approximately 200,000 acres term ‘elderly family’ or ‘near-elderly family’ waiian Home Lands to use a percentage of of public lands that became known as Hawai- includes— any grant amounts received under this title ian Home Lands in the Territory of Hawaii ‘‘(i) 2 or more elderly persons or near-elder- for any reasonable administrative and plan- that had been ceded to the United States for ly persons, as the case may be, living to- ning expenses of the Department relating to homesteading by Native Hawaiians in order gether; and carrying out this title and activities assisted to rehabilitate a landless and dying people; ‘‘(ii) 1 or more persons described in clause with those amounts. (B) the enactment of the Act entitled ‘‘An (i) living with 1 or more persons determined ‘‘(2) ADMINISTRATIVE AND PLANNING EX- Act to provide for the admission of the State under the housing plan to be essential to PENSES.—The administrative and planning of Hawaii into the Union’’, approved March their care or well-being. expenses referred to in paragraph (1) 18, 1959 (73 Stat. 4)— ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha- include— (i) by ceding to the State of Hawaii title to waiian Home Lands’ means lands that— ‘‘(A) costs for salaries of individuals en- the public lands formerly held by the United ‘‘(A) have the status as Hawaiian home gaged in administering and managing afford- States, and mandating that those lands be lands under section 204 of the Hawaiian able housing activities assisted with grant held in public trust, for the betterment of Homes Commission Act (42 Stat. 110); or amounts provided under this title; and the conditions of Native Hawaiians, as that ‘‘(B) are acquired pursuant to that Act. ‘‘(B) expenses incurred in preparing a hous- term is defined in section 201 of the Hawaiian ‘‘(5) HOUSING AREA.—The term ‘housing ing plan under section 803. Homes Commission Act, 1920 (42 Stat. 108 et area’ means an area of Hawaiian Home ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The seq.); and Lands with respect to which the Department Director shall make all reasonable efforts, (ii) by transferring the United States re- of Hawaiian Home Lands is authorized to consistent with the purposes of this title, to sponsibility for the administration of Hawai- provide assistance for affordable housing maximize participation by the private sec- ian Home Lands to the State of Hawaii, but under this Act. tor, including nonprofit organizations and retaining the authority to enforce the trust, ‘‘(6) HOUSING ENTITY.—The term ‘housing for-profit entities, in implementing a hous- including the exclusive right of the United entity’ means the Department of Hawaiian ing plan that has been approved by the Sec- States to consent to any actions affecting Home Lands. retary under section 803. the lands which comprise the corpus of the ‘‘(7) HOUSING PLAN.—The term ‘housing ‘‘SEC. 803. HOUSING PLAN. trust and any amendments to the Hawaiian plan’ means a plan developed by the Depart- ‘‘(a) PLAN SUBMISSION.—The Secretary Homes Commission Act, 1920 (42 Stat. 108 et ment of Hawaiian Home Lands. shall— seq.), enacted by the legislature of the State ‘‘(8) MEDIAN INCOME.—The term ‘median in- ‘‘(1) require the Director to submit a hous- of Hawaii affecting the rights of bene- come’ means, with respect to an area that is ing plan under this section for each fiscal ficiaries under the Act; a Hawaiian housing area, the greater of— year; and

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00153 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.065 pfrm12 PsN: S04PT1 S14024 CONGRESSIONAL RECORD — SENATE November 4, 1999 ‘‘(2) provide for the review of each plan ‘‘(II) the production of new units; Act of 1968’ (42 U.S.C. 3601 et seq.) in carrying submitted under paragraph (1). ‘‘(III) the acquisition of existing units; or out this title, to the extent that such title is ‘‘(b) 5-YEAR PLAN.—Each housing plan ‘‘(IV) the rehabilitation of units; applicable; and under this section shall— ‘‘(iii) a description of the structure, coordi- ‘‘(II) other applicable Federal statutes; ‘‘(1) be in a form prescribed by the Sec- nation, and means of cooperation between ‘‘(ii) a certification that the Department retary; and the Department of Hawaiian Home Lands will require adequate insurance coverage for ‘‘(2) contain, with respect to the 5-year pe- and any other governmental entities in the housing units that are owned and operated or riod beginning with the fiscal year for which development, submission, or implementation assisted with grant amounts provided under the plan is submitted, the following informa- of housing plans, including a description of— this title, in compliance with such require- tion: ‘‘(I) the involvement of private, public, and ments as may be established by the Sec- ‘‘(A) MISSION STATEMENT.—A general state- nonprofit organizations and institutions; retary; ment of the mission of the Department of ‘‘(II) the use of loan guarantees under sec- ‘‘(iii) a certification that policies are in ef- Hawaiian Home Lands to serve the needs of tion 184A of the Housing and Community De- fect and are available for review by the Sec- the low-income families to be served by the velopment Act of 1992; and retary and the public governing the eligi- Department. ‘‘(III) other housing assistance provided by bility, admission, and occupancy of families ‘‘(B) GOAL AND OBJECTIVES.—A statement the United States, including loans, grants, for housing assisted with grant amounts proof the goals and objectives of the Depart- and mortgage insurance; vided under this title; ment of Hawaiian Home Lands to enable the ‘‘(iv) a description of the manner in which ‘‘(iv) a certification that policies are in ef- Department to serve the needs identified in the plan will address the needs identified fect and are available for review by the Sec- subparagraph (A) during the period. pursuant to subparagraph (C); retary and the public governing rents ‘‘(C) ACTIVITIES PLANS.—An overview of the ‘‘(v) a description of— charged, including the methods by which activities planned during the period includ- ‘‘(I) any existing or anticipated home- such rents or homebuyer payments are de- ing an analysis of the manner in which the ownership programs and rental programs to termined, for housing assisted with grant activities will enable the Department to be carried out during the period covered by amounts provided under this title; and meet its mission, goals, and objectives. the plan; and ‘‘(v) a certification that policies are in ef- ‘‘(c) 1-YEAR PLAN.—A housing plan under ‘‘(II) the requirements and assistance fect and are available for review by the Sec- this section shall— available under the programs referred to in retary and the public governing the manage- ‘‘(1) be in a form prescribed by the Sec- subclause (I); ment and maintenance of housing assisted retary; and ‘‘(vi) a description of— ‘‘(2) contain the following information re- with grant amounts provided under this ‘‘(I) any existing or anticipated housing re- title. lating to the fiscal year for which the assist- habilitation programs necessary to ensure ance under this title is to be made available: the long-term viability of the housing to be ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STAT- ‘‘(A) GOALS AND OBJECTIVES.—A statement carried out during the period covered by the UTES.— of the goals and objectives to be accom- plan; and ‘‘(1) IN GENERAL.—To the extent that the plished during the period covered by the ‘‘(II) the requirements and assistance requirements of title VI of the Civil Rights plan. available under the programs referred to in Act of 1964 (42 U.S.C. 2000d et seq.) or of title ‘‘(B) STATEMENT OF NEEDS.—A statement of subclause (I); VIII of the Act popularly known as the ‘Civil the housing needs of the low-income families ‘‘(vii) a description of— Rights Act of 1968’ (42 U.S.C. 3601 et seq.) served by the Department and the means by ‘‘(I) all other existing or anticipated hous- apply to assistance provided under this title, which those needs will be addressed during ing assistance provided by the Department of nothing in the requirements concerning dis- the period covered by the plan, including— Hawaiian Home Lands during the period cov- crimination on the basis of race shall be con- ‘‘(i) a description of the estimated housing ered by the plan, including— strued to prevent the provision of assistance needs and the need for assistance for the low- ‘‘(aa) transitional housing; under this title— income families to be served by the Depart- ‘‘(bb) homeless housing; ‘‘(A) to the Department of Hawaiian Home ment, including a description of the manner ‘‘(cc) college housing; and Lands on the basis that the Department in which the geographical distribution of as- ‘‘(dd) supportive services housing; and served Native Hawaiians; or sistance is consistent with— ‘‘(II) the requirements and assistance ‘‘(B) to an eligible family on the basis that ‘‘(I) the geographical needs of those fami- available under such programs; the family is a Native Hawaiian family. lies; and ‘‘(viii)(I) a description of any housing to be ‘‘(2) CIVIL RIGHTS.—Program eligibility ‘‘(II) needs for various categories of hous- demolished or disposed of; under this title may be restricted to Native ing assistance; and ‘‘(II) a timetable for that demolition or Hawaiians. Subject to the preceding sen- ‘‘(ii) a description of the estimated housing disposition; and tence, no person may be discriminated needs for all families to be served by the De- ‘‘(III) any other information required by against on the basis of race, color, national partment. the Secretary with respect to that demoli- origin, religion, sex, familial status, or dis- ‘‘(C) FINANCIAL RESOURCES.—An operating tion or disposition; ability. budget for the Department of Hawaiian ‘‘(ix) a description of the manner in which ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As Home Lands, in a form prescribed by the the Department of Hawaiian Home Lands a condition of receiving grant amounts under Secretary, that includes— will coordinate with welfare agencies in the this title, the Department of Hawaiian Home ‘‘(i) an identification and a description of State of Hawaii to ensure that residents of Lands shall, to the extent practicable, pro- the financial resources reasonably available the affordable housing will be provided with vide for private nonprofit organizations ex- to the Department to carry out the purposes access to resources to assist in obtaining em- perienced in the planning and development of this title, including an explanation of the ployment and achieving self-sufficiency; of affordable housing for Native Hawaiians manner in which amounts made available ‘‘(x) a description of the requirements es- to carry out affordable housing activities will be used to leverage additional resources; tablished by the Department of Hawaiian with those grant amounts. and Home Lands to— ‘‘(ii) the uses to which the resources de- ‘‘(I) promote the safety of residents of the ‘‘SEC. 804. REVIEW OF PLANS. scribed in clause (i) will be committed, affordable housing; ‘‘(a) REVIEW AND NOTICE.— including— ‘‘(II) facilitate the undertaking of crime ‘‘(1) REVIEW.— ‘‘(I) eligible and required affordable hous- prevention measures; ‘‘(A) IN GENERAL.—The Secretary shall con- ing activities; and ‘‘(III) allow resident input and involve- duct a review of a housing plan submitted to ‘‘(II) administrative expenses. ment, including the establishment of resi- the Secretary under section 803 to ensure ‘‘(D) AFFORDABLE HOUSING RESOURCES.—A dent organizations; and that the plan complies with the require- statement of the affordable housing re- ‘‘(IV) allow for the coordination of crime ments of that section. sources currently available at the time of prevention activities between the Depart- ‘‘(B) LIMITATION.—The Secretary shall have the submittal of the plan and to be made ment and local law enforcement officials; the discretion to review a plan referred to in available during the period covered by the and subparagraph (A) only to the extent that the plan, including— ‘‘(xi) a description of the entities that will Secretary considers that the review is nec- ‘‘(i) a description of the significant charac- carry out the activities under the plan, in- essary. teristics of the housing market in the State cluding the organizational capacity and key ‘‘(2) NOTICE.— of Hawaii, including the availability of hous- personnel of the entities. ‘‘(A) IN GENERAL.—Not later than 60 days ing from other public sources, private mar- ‘‘(E) CERTIFICATION OF COMPLIANCE.—Evi- after receiving a plan under section 803, the ket housing; dence of compliance that shall include, as Secretary shall notify the Director of the ‘‘(ii) the manner in which the characteris- appropriate— Department of Hawaiian Home Lands wheth- tics referred to in clause (i) influence the de- ‘‘(i) a certification that the Department of er the plan complies with the requirements cision of the Department of Hawaiian Home Hawaiian Home Lands will comply with— under that section. Lands to use grant amounts to be provided ‘‘(I) title VI of the Civil Rights Act of 1964 ‘‘(B) EFFECT OF FAILURE OF SECRETARY TO under this title for— (42 U.S.C. 2000d et seq.) or with title VIII of TAKE ACTION.—For purposes of this title, if ‘‘(I) rental assistance; the Act popularly known as the ‘Civil Rights the Secretary does not notify the Director,

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00154 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.065 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14025 as required under this subsection and sub- ‘‘(A) whether the Department retains pro- ‘‘(ii) in the discretion of the Secretary, fa- section (b), upon the expiration of the 60-day gram income under paragraph (1); or cilitate training for the performance of such period described in subparagraph (A)— ‘‘(B) the amount of any such program in- reviews; and ‘‘(i) the plan shall be considered to have come retained. ‘‘(iii) provide for the suspension or termi- been determined to comply with the require- ‘‘(3) EXCLUSION OF AMOUNTS.—The Sec- nation of the assumption of responsibilities ments under section 803; and retary may, by regulation, exclude from con- under this section. ‘‘(ii) the Director shall be considered to sideration as program income any amounts ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.— have been notified of compliance. determined to be so small that compliance The duty of the Secretary under paragraph ‘‘(b) NOTICE OF REASONS FOR DETERMINA- with the requirements of this subsection (2)(B) shall not be construed to limit or re- TION OF NONCOMPLIANCE.—If the Secretary would create an unreasonable administrative duce any responsibility assumed by the De- determines that a plan submitted under sec- burden on the Department. partment of Hawaiian Home Lands for grant tion 803 does not comply with the require- ‘‘(b) LABOR STANDARDS.— amounts with respect to any specific release ments of that section, the Secretary shall ‘‘(1) IN GENERAL.—Any contract or agree- of funds. specify in the notice under subsection (a)— ment for assistance, sale, or lease pursuant ‘‘(b) PROCEDURE.— ‘‘(1) the reasons for noncompliance; and to this title shall contain— ‘‘(1) IN GENERAL.—The Secretary shall au- ‘‘(2) any modifications necessary for the ‘‘(A) a provision requiring that an amount thorize the release of funds subject to the plan to meet the requirements of section 803. not less than the wages prevailing in the lo- procedures under this section only if, not ‘‘(c) REVIEW.— cality, as determined or adopted (subsequent less than 15 days before that approval and ‘‘(1) IN GENERAL.—After the Director of the to a determination under applicable State or before any commitment of funds to such Department of Hawaiian Home Lands sub- local law) by the Secretary, shall be paid to projects, the Director of the Department of mits a housing plan under section 803, or any all architects, technical engineers, Hawaiian Home Lands submits to the Sec- amendment or modification to the plan to draftsmen, technicians employed in the de- retary a request for such release accom- the Secretary, to the extent that the Sec- velopment and all maintenance, and laborers panied by a certification that meets the re- retary considers such action to be necessary and mechanics employed in the operation, of quirements of subsection (c). to make a determination under this sub- the affordable housing project involved; and ‘‘(2) EFFECT OF APPROVAL.—The approval of section, the Secretary shall review the plan ‘‘(B) a provision that an amount not less the Secretary of a certification described in (including any amendments or modifications than the wages prevailing in the locality, as paragraph (1) shall be deemed to satisfy the thereto) to determine whether the contents predetermined by the Secretary of Labor responsibilities of the Secretary under the of the plan— pursuant to the Act commonly known as the National Environmental Policy Act of 1969 ‘‘(A) set forth the information required by ‘Davis-Bacon Act’ (46 Stat. 1494, chapter 411; (42 U.S.C. 4321 et seq.) and such other provi- section 803 to be contained in the housing 40 U.S.C. 276a et seq.) shall be paid to all la- sions of law as the regulations of the Sec- plan; borers and mechanics employed in the devel- retary specify to the extent that those re- ‘‘(B) are consistent with information and opment of the affordable housing involved. sponsibilities relate to the releases of funds data available to the Secretary; and ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi- for projects that are covered by that certifi- ‘‘(C) are not prohibited by or inconsistent sions relating to wages required under para- cation. with any provision of this Act or any other graph (1) in any contract or agreement for ‘‘(c) CERTIFICATION.—A certification under applicable law. assistance, sale, or lease under this title, the procedures under this section shall— ‘‘(2) INCOMPLETE PLANS.—If the Secretary shall not apply to any individual who per- ‘‘(1) be in a form acceptable to the Sec- determines under this subsection that any of forms the services for which the individual retary; the appropriate certifications required under volunteered and who is not otherwise em- ‘‘(2) be executed by the Director of the De- section 803(c)(2)(E) are not included in a ployed at any time in the construction work partment of Hawaiian Home Lands; plan, the plan shall be considered to be in- and received no compensation or is paid ex- ‘‘(3) specify that the Department of Hawai- complete. penses, reasonable benefits, or a nominal fee ian Home Lands has fully carried out its re- ‘‘(d) UPDATES TO PLAN.— for those services. sponsibilities as described under subsection ‘‘(1) IN GENERAL.—Subject to paragraph (2), (a); and after a plan under section 803 has been sub- ‘‘SEC. 806. ENVIRONMENTAL REVIEW. ‘‘(4) specify that the Director— mitted for a fiscal year, the Director of the ‘‘(a) IN GENERAL.— ‘‘(A) consents to assume the status of a re- Department of Hawaiian Home Lands may ‘‘(1) RELEASE OF FUNDS.— sponsible Federal official under the National comply with the provisions of that section ‘‘(A) IN GENERAL.—The Secretary may Environmental Policy Act of 1969 (42 U.S.C. for any succeeding fiscal year (with respect carry out the alternative environmental pro- 4321 et seq.) and each provision of law speci- to information included for the 5-year period tection procedures described in subparagraph fied in regulations issued by the Secretary to under section 803(b) or for the 1-year period (B) in order to ensure— the extent that those laws apply by reason of under section 803(c)) by submitting only such ‘‘(i) that the policies of the National Envi- subsection (a); and information regarding such changes as may ronmental Policy Act of 1969 (42 U.S.C. 4321 ‘‘(B) is authorized and consents on behalf be necessary to update the plan previously et seq.) and other provisions of law that fur- of the Department of Hawaiian Home Lands submitted. ther the purposes of such Act (as specified in and the Director to accept the jurisdiction of ‘‘(2) COMPLETE PLANS.—The Director shall regulations issued by the Secretary) are the Federal courts for the purpose of enforce- submit a complete plan under section 803 not most effectively implemented in connection ment of the responsibilities of the Director later than 4 years after submitting an initial with the expenditure of grant amounts proof the Department of Hawaiian Home Lands plan under that section, and not less fre- vided under this title; and as such an official. quently than every 4 years thereafter. ‘‘(ii) to the public undiminished protection ‘‘SEC. 807. REGULATIONS. ‘‘(e) EFFECTIVE DATE.—This section and of the environment. ‘‘The Secretary shall issue final regula- section 803 shall take effect on the date pro- ‘‘(B) ALTERNATIVE ENVIRONMENTAL PROTEC- tions necessary to carry out this title not vided by the Secretary pursuant to section TION PROCEDURE.—In lieu of applying envi- later than October 1, 2000. 807(a) to provide for timely submission and ronmental protection procedures otherwise ‘‘SEC. 808. EFFECTIVE DATE. review of the housing plan as necessary for applicable, the Secretary may by regulation the provision of assistance under this title provide for the release of funds for specific ‘‘Except as otherwise expressly provided in for fiscal year 2000. projects to the Department of Hawaiian this title, this title shall take effect on the date of enactment of the Native American ‘‘SEC. 805. TREATMENT OF PROGRAM INCOME Home Lands if the Director of the Depart- AND LABOR STANDARDS. ment assumes all of the responsibilities for Housing Assistance and Self-Determination Amendments of 1999. ‘‘(a) PROGRAM INCOME.— environmental review, decisionmaking, and ‘‘(1) AUTHORITY TO RETAIN.—The Depart- action under the National Environmental ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES. ment of Hawaiian Home Lands may retain Policy Act of 1969 (42 U.S.C. 4321 et seq.), and ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE any program income that is realized from such other provisions of law as the regula- FAMILIES.— any grant amounts received by the Depart- tions of the Secretary specify, that would ‘‘(1) PRIMARY OBJECTIVE.—The national ob- ment under this title if— apply to the Secretary were the Secretary to jectives of this title are— ‘‘(A) that income was realized after the ini- undertake those projects as Federal projects. ‘‘(A) to assist and promote affordable hous- tial disbursement of the grant amounts re- ‘‘(2) REGULATIONS.— ing activities to develop, maintain, and oper- ceived by the Department; and ‘‘(A) IN GENERAL.—The Secretary shall ate affordable housing in safe and healthy ‘‘(B) the Director agrees to use the pro- issue regulations to carry out this section environments for occupancy by low-income gram income for affordable housing activi- only after consultation with the Council on Native Hawaiian families; ties in accordance with the provisions of this Environmental Quality. ‘‘(B) to ensure better access to private title. ‘‘(B) CONTENTS.—The regulations issued mortgage markets and to promote self-suffi- ‘‘(2) PROHIBITION OF REDUCTION OF GRANT.— under this paragraph shall— ciency of low-income Native Hawaiian fami- The Secretary may not reduce the grant ‘‘(i) provide for the monitoring of the envi- lies; amount for the Department of Hawaiian ronmental reviews performed under this sec- ‘‘(C) to coordinate activities to provide Home Lands based solely on— tion; housing for low-income Native Hawaiian

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00155 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.065 pfrm12 PsN: S04PT1 S14026 CONGRESSIONAL RECORD — SENATE November 4, 1999 families with Federal, State and local activi- ‘‘(2) provide housing services with respect partment, from demolishing or disposing of ties to further economic and community de- to affordable housing, through the activities housing, pursuant to regulations established velopment; described in subsection (b). by the Secretary. ‘‘(D) to plan for and integrate infrastruc- ‘‘(b) ACTIVITIES.—The activities described ‘‘(c) INSURANCE COVERAGE.—As a condition ture resources on the Hawaiian Home Lands in this subsection are the following: to receiving grant amounts under this title, with housing development; and ‘‘(1) DEVELOPMENT.—The acquisition, new the Director shall require adequate insur- ‘‘(E) to— construction, reconstruction, or moderate or ance coverage for housing units that are ‘‘(i) promote the development of private substantial rehabilitation of affordable hous- owned or operated or assisted with grant capital markets; and ing, which may include— amounts provided under this title. ‘‘(ii) allow the markets referred to in ‘‘(A) real property acquisition; ‘‘(d) ELIGIBILITY FOR ADMISSION.—As a con- clause (i) to operate and grow, thereby bene- ‘‘(B) site improvement; dition to receiving grant amounts under this fiting Native Hawaiian communities. ‘‘(C) the development of utilities and util- title, the Director shall develop written poli- ‘‘(2) ELIGIBLE FAMILIES.— ity services; cies governing the eligibility, admission, and ‘‘(A) IN GENERAL.—Except as provided ‘‘(D) conversion; occupancy of families for housing assisted under subparagraph (B), assistance for eligi- ‘‘(E) demolition; with grant amounts provided under this ble housing activities under this title shall ‘‘(F) financing; title. be limited to low-income Native Hawaiian ‘‘(G) administration and planning; and ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a families. ‘‘(H) other related activities. condition to receiving grant amounts under ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE- ‘‘(2) HOUSING SERVICES.—The provision of this title, the Director shall develop policies MENT.— housing-related services for affordable hous- governing the management and maintenance ‘‘(i) IN GENERAL.—The Director may pro- ing, including— of housing assisted with grant amounts vide assistance for homeownership activities ‘‘(A) housing counseling in connection with under this title. under— rental or homeownership assistance; ‘‘(I) section 810(b); ‘‘(B) the establishment and support of resi- ‘‘SEC. 812. TYPES OF INVESTMENTS. ‘‘(II) model activities under section 810(f); dent organizations and resident management ‘‘(a) IN GENERAL.—Subject to section 811 or corporations; and an applicable housing plan approved ‘‘(III) loan guarantee activities under sec- ‘‘(C) energy auditing; under section 803, the Director shall have— tion 184A of the Housing and Community De- ‘‘(D) activities related to the provisions of ‘‘(1) the discretion to use grant amounts velopment Act of 1992 to Native Hawaiian self-sufficiency and other services; and for affordable housing activities through the families who are not low-income families, to ‘‘(E) other services related to assisting use of— the extent that the Secretary approves the owners, tenants, contractors, and other enti- ‘‘(A) equity investments; activities under that section to address a ties participating or seeking to participate ‘‘(B) interest-bearing loans or advances; need for housing for those families that can- in other housing activities assisted pursuant ‘‘(C) noninterest-bearing loans or advances; not be reasonably met without that assist- to this section. ‘‘(D) interest subsidies; ance. ‘‘(3) HOUSING MANAGEMENT SERVICES.—The ‘‘(E) the leveraging of private investments; ‘‘(ii) LIMITATIONS.—The Secretary shall es- provision of management services for afford- or tablish limitations on the amount of assist- able housing, including— ‘‘(F) any other form of assistance that the ance that may be provided under this title ‘‘(A) the preparation of work specifica- Secretary determines to be consistent with for activities for families that are not low- tions; the purposes of this title; and income families. ‘‘(B) loan processing; ‘‘(2) the right to establish the terms of as- ‘‘(C) OTHER FAMILIES.—Notwithstanding ‘‘(C) inspections; sistance provided with funds referred to in paragraph (1), the Director may provide ‘‘(D) tenant selection; paragraph (1). housing or housing assistance provided ‘‘(E) management of tenant-based rental ‘‘(b) INVESTMENTS.—The Director may in- through affordable housing activities as- assistance; and vest grant amounts for the purposes of car- sisted with grant amounts under this title to ‘‘(F) management of affordable housing rying out affordable housing activities in in- a family that is not composed of Native Ha- projects. vestment securities and other obligations, as waiians if— ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI- approved by the Secretary. ‘‘(i) the Department determines that the TIES.—The provision of safety, security, and ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND IN- presence of the family in the housing in- law enforcement measures and activities ap- COME TARGETING. volved is essential to the well-being of Na- propriate to protect residents of affordable ‘‘(a) IN GENERAL.—Housing shall qualify for tive Hawaiian families; and housing from crime. affordable housing for purposes of this title ‘‘(ii) the need for housing for the family ‘‘(5) MODEL ACTIVITIES.—Housing activities only if— cannot be reasonably met without the assist- under model programs that are— ‘‘(1) each dwelling unit in the housing— ance. ‘‘(A) designed to carry out the purposes of ‘‘(A) in the case of rental housing, is made ‘‘(D) PREFERENCE.— this title; and available for occupancy only by a family ‘‘(i) IN GENERAL.—A housing plan sub- ‘‘(B) specifically approved by the Secretary that is a low-income family at the time of mitted under section 803 may authorize a as appropriate for the purpose referred to in the initial occupancy of that family of that preference, for housing or housing assistance subparagraph (A). unit; and provided through affordable housing activi- ‘‘SEC. 811. PROGRAM REQUIREMENTS. ‘‘(B) in the case of housing for homeowner- ties assisted with grant amounts provided ‘‘(a) RENTS.— ship, is made available for purchase only by under this title to be provided, to the extent ‘‘(1) ESTABLISHMENT.—Subject to para- a family that is a low-income family at the practicable, to families that are eligible to graph (2), as a condition to receiving grant time of purchase; and reside on the Hawaiian Home Lands. amounts under this title, the Director shall ‘‘(2) each dwelling unit in the housing will ‘‘(ii) APPLICATION.—In any case in which a develop written policies governing rents and remain affordable, according to binding com- housing plan provides for preference de- homebuyer payments charged for dwelling mitments satisfactory to the Secretary, scribed in clause (i), the Director shall en- units assisted under this title, including for— sure that housing activities that are assisted methods by which such rents and homebuyer ‘‘(A) the remaining useful life of the prop- with grant amounts under this title are sub- payments are determined. erty (as determined by the Secretary) with- ject to that preference. ‘‘(2) MAXIMUM RENT.—In the case of any out regard to the term of the mortgage or to ‘‘(E) USE OF NONPROFIT ORGANIZATIONS.—As low-income family residing in a dwelling transfer of ownership; or a condition of receiving grant amounts under unit assisted with grant amounts under this ‘‘(B) such other period as the Secretary de- this title, the Department of Hawaiian Home title, the monthly rent or homebuyer pay- termines is the longest feasible period of Lands, shall to the extent practicable, pro- ment (as applicable) for that dwelling unit time consistent with sound economics and vide for private nonprofit organizations ex- may not exceed 30 percent of the monthly the purposes of this title, except upon a fore- perienced in the planning and development adjusted income of that family. closure by a lender (or upon other transfer in of affordable housing for Native Hawaiians ‘‘(b) MAINTENANCE AND EFFICIENT OPER- lieu of foreclosure) if that action— to carry out affordable housing activities ATION.— ‘‘(i) recognizes any contractual or legal with those grant amounts. ‘‘(1) IN GENERAL.—The Director shall, using rights of any public agency, nonprofit spon- ‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING AC- amounts of any grants received under this sor, or other person or entity to take an ac- TIVITIES. title, reserve and use for operating under tion that would— section 810 such amounts as may be nec- ‘‘(I) avoid termination of low-income af- ‘‘(a) IN GENERAL.—Affordable housing ac- essary to provide for the continued mainte- fordability, in the case of foreclosure; or tivities under this section are activities con- nance and efficient operation of such hous- ‘‘(II) transfer ownership in lieu of fore- ducted in accordance with the requirements ing. closure; and of section 811 to— ‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This ‘‘(ii) is not for the purpose of avoiding low- ‘‘(1) develop or to support affordable hous- subsection may not be construed to prevent income affordability restrictions, as deter- ing for rental or homeownership; or the Director, or any entity funded by the De- mined by the Secretary.

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‘‘(b) EXCEPTION.—Notwithstanding sub- ‘‘SEC. 816. ANNUAL ALLOCATION. finding under subsection (a), but determines section (a), housing assisted pursuant to sec- ‘‘For each fiscal year, the Secretary shall that the failure of the Department to comply tion 809(a)(2)(B) shall be considered afford- allocate any amounts made available for as- substantially with the provisions of this able housing for purposes of this title. sistance under this title for the fiscal year, title— ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT in accordance with the formula established ‘‘(1) is not a pattern or practice of activi- SELECTION. pursuant to section 817 to the Department of ties constituting willful noncompliance; and ‘‘(a) LEASES.—Except to the extent other- Hawaiian Home Lands if the Department ‘‘(2) is a result of the limited capability or wise provided by or inconsistent with the complies with the requirements under this capacity of the Department of Hawaiian laws of the State of Hawaii, in renting dwell- title for a grant under this title. Home Lands. ing units in affordable housing assisted with ‘‘SEC. 817. ALLOCATION FORMULA. ‘‘(c) REFERRAL FOR CIVIL ACTION.— grant amounts provided under this title, the ‘‘(a) ESTABLISHMENT.—The Secretary shall, ‘‘(1) AUTHORITY.—In lieu of, or in addition Director, owner, or manager shall use leases by regulation issued not later than the expi- to, any action that the Secretary may take that— ration of the 6-month period beginning on under subsection (a), if the Secretary has ‘‘(1) do not contain unreasonable terms and the date of enactment of the Native Amer- reason to believe that the Department of Ha- conditions; ican Housing Assistance and Self-Determina- waiian Home Lands has failed to comply sub- ‘‘(2) require the Director, owner, or man- tion Amendments of 1999, in the manner pro- stantially with any provision of this title, ager to maintain the housing in compliance vided under section 807, establish a formula the Secretary may refer the matter to the with applicable housing codes and quality to provide for the allocation of amounts Attorney General of the United States with standards; available for a fiscal year for block grants a recommendation that an appropriate civil ‘‘(3) require the Director, owner, or man- action be instituted. ager to give adequate written notice of ter- under this title in accordance with the re- ‘‘(2) CIVIL ACTION.—Upon receiving a refer- mination of the lease, which shall be the pe- quirements of this section. ACTORS FOR DETERMINATION OF ral under paragraph (1), the Attorney Gen- riod of time required under applicable State ‘‘(b) F or local law; NEED.—The formula under subsection (a) eral may bring a civil action in any United ‘‘(4) specify that, with respect to any no- shall be based on factors that reflect the States district court of appropriate jurisdic- tice of eviction or termination, notwith- needs for assistance for affordable housing tion for such relief as may be appropriate, standing any State or local law, a resident activities, including— including an action— shall be informed of the opportunity, before ‘‘(1) the number of low-income dwelling ‘‘(A) to recover the amount of the assist- any hearing or trial, to examine any rel- units owned or operated at the time pursu- ance furnished under this title that was not evant documents, record, or regulations di- ant to a contract between the Director and expended in accordance with this title; or rectly related to the eviction or termination; the Secretary; ‘‘(B) for mandatory or injunctive relief. ‘‘(5) require that the Director, owner, or ‘‘(2) the extent of poverty and economic ‘‘(d) REVIEW.— manager may not terminate the tenancy, distress and the number of Native Hawaiian ‘‘(1) IN GENERAL.—If the Director receives during the term of the lease, except for seri- families eligible to reside on the Hawaiian notice under subsection (a) of the termi- ous or repeated violation of the terms and Home Lands; and nation, reduction, or limitation of payments conditions of the lease, violation of applica- ‘‘(3) any other objectively measurable con- under this Act, the Director— ble Federal, State, or local law, or for other ditions that the Secretary and the Director ‘‘(A) may, not later than 60 days after re- good cause; and may specify. ceiving such notice, file with the United ‘‘(c) OTHER FACTORS FOR CONSIDERATION.— ‘‘(6) provide that the Director, owner, or States Court of Appeals for the Ninth Cir- In establishing the formula under subsection manager may terminate the tenancy of a cuit, or in the United States Court of Ap- (a), the Secretary shall consider the relative resident for any activity, engaged in by the peals for the District of Columbia, a petition administrative capacities of the Department resident, any member of the household of the for review of the action of the Secretary; and of Hawaiian Home Lands and other chal- resident, or any guest or other person under ‘‘(B) upon the filing of any petition under lenges faced by the Department, including— the control of the resident, that— subparagraph (A), shall forthwith transmit ‘‘(1) geographic distribution within Hawai- ‘‘(A) threatens the health or safety of, or copies of the petition to the Secretary and ian Home Lands; and right to peaceful enjoyment of the premises the Attorney General of the United States, ‘‘(2) technical capacity. by, other residents or employees of the De- who shall represent the Secretary in the liti- ‘‘(d) EFFECTIVE DATE.—This section shall partment, owner, or manager; gation. take effect on the date of enactment of the ‘‘(B) threatens the health or safety of, or ‘‘(2) PROCEDURE.— Native American Housing Assistance and right to peaceful enjoyment of their prem- ‘‘(A) IN GENERAL.—The Secretary shall file Self-Determination Amendments of 1999. ises by, persons residing in the immediate vi- in the court a record of the proceeding on cinity of the premises; or ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE. which the Secretary based the action, as pro- ‘‘(C) is criminal activity (including drug- ‘‘(a) ACTIONS BY SECRETARY AFFECTING vided in section 2112 of title 28, United States related criminal activity) on or off the prem- GRANT AMOUNTS.— Code. ises. ‘‘(1) IN GENERAL.—Except as provided in ‘‘(B) OBJECTIONS.—No objection to the ac- ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As subsection (b), if the Secretary finds after tion of the Secretary shall be considered by a condition to receiving grant amounts reasonable notice and opportunity for a the court unless the Department has reg- under this title, the Director shall adopt and hearing that the Department of Hawaiian istered the objection before the Secretary. use written tenant and homebuyer selection Home Lands has failed to comply substan- ‘‘(3) DISPOSITION.— policies and criteria that— tially with any provision of this title, the ‘‘(A) COURT PROCEEDINGS.— ‘‘(1) are consistent with the purpose of pro- Secretary shall— ‘‘(i) JURISDICTION OF COURT.—The court viding housing for low-income families; ‘‘(A) terminate payments under this title shall have jurisdiction to affirm or modify ‘‘(2) are reasonably related to program eli- to the Department; the action of the Secretary or to set the ac- gibility and the ability of the applicant to ‘‘(B) reduce payments under this title to tion aside in whole or in part. perform the obligations of the lease; and the Department by an amount equal to the ‘‘(ii) FINDINGS OF FACT.—If supported by ‘‘(3) provide for— amount of such payments that were not ex- substantial evidence on the record consid- ‘‘(A) the selection of tenants and home- pended in accordance with this title; or ered as a whole, the findings of fact by the buyers from a written waiting list in accord- ‘‘(C) limit the availability of payments Secretary shall be conclusive. ance with the policies and goals set forth in under this title to programs, projects, or ac- ‘‘(iii) ADDITION.—The court may order evi- an applicable housing plan approved under tivities not affected by such failure to com- dence, in addition to the evidence submitted section 803; and ply. for review under this subsection, to be taken ‘‘(B) the prompt notification in writing of ‘‘(2) ACTIONS.—If the Secretary takes an by the Secretary, and to be made part of the any rejected applicant of the grounds for action under subparagraph (A), (B), or (C) of record. that rejection. paragraph (1), the Secretary shall continue ‘‘(B) SECRETARY.— ‘‘SEC. 815. REPAYMENT. that action until the Secretary determines ‘‘(i) IN GENERAL.—The Secretary, by reason ‘‘If the Department of Hawaiian Home that the failure by the Department to com- of the additional evidence referred to in sub- Lands uses grant amounts to provide afford- ply with the provision has been remedied by paragraph (A) and filed with the court— able housing under activities under this title the Department and the Department is in ‘‘(I) may— and, at any time during the useful life of the compliance with that provision. ‘‘(aa) modify the findings of fact of the housing, the housing does not comply with ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECH- Secretary; or the requirement under section 813(a)(2), the NICAL INCAPACITY.—The Secretary may pro- ‘‘(bb) make new findings; and Secretary shall— vide technical assistance for the Depart- ‘‘(II) shall file— ‘‘(1) reduce future grant payments on be- ment, either directly or indirectly, that is ‘‘(aa) such modified or new findings; and half of the Department by an amount equal designed to increase the capability and ca- ‘‘(bb) the recommendation of the Sec- to the grant amounts used for that housing pacity of the Director of the Department to retary, if any, for the modification or setting (under the authority of section 819(a)(2)); or administer assistance provided under this aside of the original action of the Secretary. ‘‘(2) require repayment to the Secretary of title in compliance with the requirements ‘‘(ii) FINDINGS.—The findings referred to in any amount equal to those grant amounts. under this title if the Secretary makes a clause (i)(II)(bb) shall, with respect to a

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question of fact, be considered to be conclu- ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre- available, the Secretary shall submit to Con- sive if those findings are— paring a report under this section, the Direc- gress a report that contains— ‘‘(I) supported by substantial evidence on tor shall make the report publicly available ‘‘(1) a description of the progress made in the record; and to the beneficiaries of the Hawaiian Homes accomplishing the objectives of this title; ‘‘(II) considered as a whole. Commission Act, 1920 (42 Stat. 108 et seq.) ‘‘(2) a summary of the use of funds avail- ‘‘(4) FINALITY.— and give a sufficient amount of time to per- able under this title during the preceding fis- ‘‘(A) IN GENERAL.—Except as provided in mit those beneficiaries to comment on that cal year; and subparagraph (B), upon the filing of the report before it is submitted to the Sec- ‘‘(3) a description of the aggregate out- record under this subsection with the court— retary (in such manner and at such time as standing loan guarantees under section 184A ‘‘(i) the jurisdiction of the court shall be the Director may determine). of the Housing and Community Development exclusive; and ‘‘(2) SUMMARY OF COMMENTS.—The report Act of 1992. ‘‘(ii) the judgment of the court shall be shall include a summary of any comments ‘‘(b) RELATED REPORTS.—The Secretary final. received by the Director from beneficiaries may require the Director to submit to the ‘‘(B) REVIEW BY SUPREME COURT.—A judg- under paragraph (1) regarding the program Secretary such reports and other informa- ment under subparagraph (A) shall be sub- to carry out the housing plan. tion as may be necessary in order for the ject to review by the Supreme Court of the ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY. Secretary to prepare the report required United States upon writ of certiorari or cer- ‘‘(a) ANNUAL REVIEW.— under subsection (a). tification, as provided in section 1254 of title ‘‘(1) IN GENERAL.—The Secretary shall, not ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS. 28, United States Code. less frequently than on an annual basis, ‘‘There are authorized to be appropriated ‘‘SEC. 819. MONITORING OF COMPLIANCE. make such reviews and audits as may be nec- to the Department of Housing and Urban De- ‘‘(a) ENFORCEABLE AGREEMENTS.— essary or appropriate to determine velopment for grants under this title such ‘‘(1) IN GENERAL.—The Director, through whether— sums as may be necessary for each of fiscal binding contractual agreements with owners ‘‘(A) the Director has— years 2000, 2001, 2002, 2003, and 2004.’’. or other authorized entities, shall ensure ‘‘(i) carried out eligible activities under long-term compliance with the provisions of this title in a timely manner; SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAI- IAN HOUSING. this title. ‘‘(ii) carried out and made certifications in ‘‘(2) MEASURES.—The measures referred to accordance with the requirements and the Subtitle E of title I of the Housing and in paragraph (1) shall provide for— primary objectives of this title and with Community Development Act of 1992 is ‘‘(A) to the extent allowable by Federal other applicable laws; and amended by inserting after section 184 (12 and State law, the enforcement of the provi- ‘‘(iii) a continuing capacity to carry out U.S.C. 1715z–13a) the following: sions of this title by the Department and the the eligible activities in a timely manner; ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HA- Secretary; and ‘‘(B) the Director has complied with the WAIIAN HOUSING. ‘‘(B) remedies for breach of the provisions housing plan submitted by the Director ‘‘(a) DEFINITIONS.—In this section: referred to in paragraph (1). under section 803; and ‘‘(1) DEPARTMENT OF HAWAIIAN HOME ‘‘(b) PERIODIC MONITORING.— ‘‘(C) the performance reports of the De- LANDS.—The term ‘Department of Hawaiian ‘‘(1) IN GENERAL.—Not less frequently than partment under section 821 are accurate. Home Lands’ means the agency or depart- annually, the Director shall review the ac- ‘‘(2) ONSITE VISITS.—Each review conducted ment of the government of the State of Ha- tivities conducted and housing assisted under this section shall, to the extent prac- waii that is responsible for the administra- under this title to assess compliance with ticable, include onsite visits by employees of tion of the Hawaiian Homes Commission the requirements of this title. the Department of Housing and Urban Devel- Act, 1920 (42 Stat. 108 et seq.). ‘‘(2) REVIEW.—Each review under paragraph opment. ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible (1) shall include onsite inspection of housing ‘‘(b) REPORT BY SECRETARY.—The Sec- entity’ means a Native Hawaiian family, the to determine compliance with applicable re- retary shall give the Department of Hawai- Department of Hawaiian Home Lands, the quirements. ian Home Lands not less than 30 days to re- Office of Hawaiian Affairs, and private non- ‘‘(3) RESULTS.—The results of each review view and comment on a report under this profit or private for-profit organizations ex- under paragraph (1) shall be— subsection. After taking into consideration perienced in the planning and development ‘‘(A) included in a performance report of the comments of the Department, the Sec- of affordable housing for Native Hawaiians. the Director submitted to the Secretary retary may revise the report and shall make ‘‘(3) FAMILY.—The term ‘family’ means 1 or under section 820; and the comments of the Department and the re- more persons maintaining a household, as ‘‘(B) made available to the public. port with any revisions, readily available to the Secretary shall by regulation provide. ‘‘(c) PERFORMANCE MEASURES.—The Sec- the public not later than 30 days after re- ‘‘(4) GUARANTEE FUND.—The term ‘Guar- retary shall establish such performance ceipt of the comments of the Department. antee Fund’ means the Native Hawaiian measures as may be necessary to assess com- ‘‘(c) EFFECT OF REVIEWS.—The Secretary Housing Loan Guarantee Fund established pliance with the requirements of this title. may make appropriate adjustments in the under subsection (i). ‘‘SEC. 820. PERFORMANCE REPORTS. amount of annual grants under this title in ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha- ‘‘(a) REQUIREMENT.—For each fiscal year, accordance with the findings of the Sec- waiian Home Lands’ means lands that— the Director shall— retary pursuant to reviews and audits under ‘‘(A) have the status of Hawaiian Home ‘‘(1) review the progress the Department this section. The Secretary may adjust, re- Lands under section 204 of the Hawaiian has made during that fiscal year in carrying duce, or withdraw grant amounts, or take Homes Commission Act (42 Stat. 110); or out the housing plan submitted by the De- other action as appropriate in accordance ‘‘(B) are acquired pursuant to that Act. partment under section 803; and with the reviews and audits of the Secretary ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native ‘‘(2) submit a report to the Secretary (in a under this section, except that grant Hawaiian’ means any individual who is— form acceptable to the Secretary) describing amounts already expended on affordable ‘‘(A) a citizen of the United States; and the conclusions of the review. housing activities may not be recaptured or ‘‘(B) a descendant of the aboriginal people, ‘‘(b) CONTENT.—Each report submitted deducted from future assistance provided to who, prior to 1778, occupied and exercised under this section for a fiscal year shall— the Department of Hawaiian Home Lands. sovereignty in the area that currently con- ‘‘(1) describe the use of grant amounts pro- ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AU- stitutes the State of Hawaii, as evidenced vided to the Department of Hawaiian Home DITS. by— Lands for that fiscal year; ‘‘To the extent that the financial trans- ‘‘(i) genealogical records; ‘‘(2) assess the relationship of the use reactions of the Department of Hawaiian Home ‘‘(ii) verification by kupuna (elders) or ferred to in paragraph (1) to the goals identi- Lands involving grant amounts under this kama’aina (long-term community residents); fied in the housing plan; title relate to amounts provided under this or ‘‘(3) indicate the programmatic accom- title, those transactions may be audited by ‘‘(iii) birth records of the State of Hawaii. plishments of the Department; and the Comptroller General of the United States ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The ‘‘(4) describe the manner in which the De- under such regulations as may be prescribed term ‘Office of Hawaiian Affairs’ means the partment would change its housing plan sub- by the Comptroller General. The Comp- entity of that name established under the mitted under section 803 as a result of its ex- troller General of the United States shall constitution of the State of Hawaii. periences. have access to all books, accounts, records, ‘‘(b) AUTHORITY.—To provide access to ‘‘(c) SUBMISSIONS.—The Secretary shall— reports, files, and other papers, things, or sources of private financing to Native Hawai- ‘‘(1) establish a date for submission of each property belonging to or in use by the De- ian families who otherwise could not acquire report under this section; partment of Hawaiian Home Lands per- housing financing because of the unique ‘‘(2) review each such report; and taining to such financial transactions and legal status of the Hawaiian Home Lands or ‘‘(3) with respect to each such report, make necessary to facilitate the audit. as a result of a lack of access to private fi- recommendations as the Secretary considers ‘‘SEC. 823. REPORTS TO CONGRESS. nancial markets, the Secretary may guar- appropriate to carry out the purposes of this ‘‘(a) IN GENERAL.—Not later than 90 days antee an amount not to exceed 100 percent of title. after the conclusion of each fiscal year in the unpaid principal and interest that is due ‘‘(d) PUBLIC AVAILABILITY.— which assistance under this title is made on an eligible loan under subsection (b).

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‘‘(c) ELIGIBLE LOANS.—Under this section, a ‘‘(ii) through the value of any improve- holder of a guarantee certificate under sub- loan is an eligible loan if that loan meets the ments to the property made through the section (c)— following requirements: skilled or unskilled labor of the borrower, as ‘‘(i) has failed— ‘‘(1) ELIGIBLE BORROWERS.—The loan is the Secretary shall provide. ‘‘(I) to maintain adequate accounting made only to a borrower who is— ‘‘(d) CERTIFICATE OF GUARANTEE.— records; ‘‘(A) a Native Hawaiian family; ‘‘(1) APPROVAL PROCESS.— ‘‘(II) to service adequately loans guaran- ‘‘(B) the Department of Hawaiian Home ‘‘(A) IN GENERAL.—Before the Secretary ap- teed under this section; or Lands; proves any loan for guarantee under this sec- ‘‘(III) to exercise proper credit or under- ‘‘(C) the Office of Hawaiian Affairs; or tion, the lender shall submit the application writing judgment; or ‘‘(D) a private nonprofit organization expe- for the loan to the Secretary for examina- ‘‘(ii) has engaged in practices otherwise rienced in the planning and development of tion. detrimental to the interest of a borrower or affordable housing for Native Hawaiians. ‘‘(B) APPROVAL.—If the Secretary approves the United States. ‘‘(2) ELIGIBLE HOUSING.— the application submitted under subpara- ‘‘(B) ACTIONS.—Upon a determination by ‘‘(A) IN GENERAL.—The loan will be used to graph (A), the Secretary shall issue a certifi- the Secretary that a holder of a guarantee construct, acquire, or rehabilitate not more cate under this subsection as evidence of the certificate under subsection (c) has failed to than 4-family dwellings that are standard loan guarantee approved. carry out an activity described in subpara- housing and are located on Hawaiian Home ‘‘(2) STANDARD FOR APPROVAL.—The Sec- graph (A)(i) or has engaged in practices de- Lands for which a housing plan described in retary may approve a loan for guarantee scribed in subparagraph (A)(ii), the Sec- subparagraph (B) applies. under this section and issue a certificate retary may— ‘‘(B) HOUSING PLAN.—A housing plan de- under this subsection only if the Secretary ‘‘(i) refuse, either temporarily or perma- scribed in this subparagraph is a housing determines that there is a reasonable pros- nently, to guarantee any further loans made plan that— pect of repayment of the loan. by such lender or holder; ‘‘(i) has been submitted and approved by ‘‘(3) EFFECT.— ‘‘(ii) bar such lender or holder from acquir- the Secretary under section 803 of the Native ‘‘(A) IN GENERAL.—A certificate of guar- ing additional loans guaranteed under this American Housing Assistance and Self-De- antee issued under this subsection by the section; and termination Amendments of 1999; and Secretary shall be conclusive evidence of the ‘‘(iii) require that such lender or holder as- ‘‘(ii) provides for the use of loan guaran- eligibility of the loan for guarantee under sume not less than 10 percent of any loss on tees under this section to provide affordable this section and the amount of that guar- further loans made or held by the lender or homeownership housing on Hawaiian Home antee. holder that are guaranteed under this sec- Lands. ‘‘(B) EVIDENCE.—The evidence referred to tion. ‘‘(3) SECURITY.—The loan may be secured in subparagraph (A) shall be incontestable in ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN- by any collateral authorized under applica- the hands of the bearer. TIONAL VIOLATIONS.— ble Federal or State law. ‘‘(C) FULL FAITH AND CREDIT.—The full ‘‘(A) IN GENERAL.—The Secretary may im- ‘‘(4) LENDERS.— faith and credit of the United States is pose a civil monetary penalty on a lender or ‘‘(A) IN GENERAL.—The loan shall be made pledged to the payment of all amounts holder of a guarantee certificate under sub- only by a lender approved by, and meeting agreed to be paid by the Secretary as secu- section (d) if the Secretary determines that qualifications established by, the Secretary, rity for the obligations made by the Sec- the holder or lender has intentionally including any lender described in subpara- retary under this section. failed— graph (B), except that a loan otherwise in- ‘‘(i) to maintain adequate accounting ‘‘(4) FRAUD AND MISREPRESENTATION.—This sured or guaranteed by an agency of the Fed- subsection may not be construed— records; eral Government or made by the Department ‘‘(A) to preclude the Secretary from estab- ‘‘(ii) to adequately service loans guaran- of Hawaiian Home Lands from amounts bor- lishing defenses against the original lender teed under this section; or rowed from the United States shall not be el- based on fraud or material misrepresenta- ‘‘(iii) to exercise proper credit or under- igible for a guarantee under this section. tion; or writing judgment. ‘‘(B) APPROVAL.—The following lenders ‘‘(B) PENALTIES.—A civil monetary penalty ‘‘(B) to bar the Secretary from establishing shall be considered to be lenders that have imposed under this paragraph shall be im- by regulations that are on the date of been approved by the Secretary: posed in the manner and be in an amount issuance or disbursement, whichever is ear- ‘‘(i) Any mortgagee approved by the Sec- provided under section 536 of the National lier, partial defenses to the amount payable retary for participation in the single family Housing Act (12 U.S.C.A. 1735f–1) with respect on the guarantee. mortgage insurance program under title II of to mortgagees and lenders under that Act. ‘‘(e) GUARANTEE FEE.— the National Housing Act (12 U.S.C.A. 1707 et ‘‘(3) PAYMENT ON LOANS MADE IN GOOD ‘‘(1) IN GENERAL.—The Secretary shall fix seq.). FAITH.—Notwithstanding paragraphs (1) and and collect a guarantee fee for the guarantee ‘‘(ii) Any lender that makes housing loans (2), if a loan was made in good faith, the Sec- of a loan under this section, which may not under chapter 37 of title 38, United States retary may not refuse to pay a lender or exceed the amount equal to 1 percent of the Code, that are automatically guaranteed holder of a valid guarantee on that loan, principal obligation of the loan. under section 3702(d) of title 38, United without regard to whether the lender or ‘‘(2) PAYMENT.—The fee under this sub- States Code. holder is barred under this subsection. section shall— ‘‘(iii) Any lender approved by the Sec- ‘‘(i) PAYMENT UNDER GUARANTEE.— ‘‘(A) be paid by the lender at time of retary of Agriculture to make guaranteed ‘‘(1) LENDER OPTIONS.— issuance of the guarantee; and loans for single family housing under the ‘‘(A) IN GENERAL.— ‘‘(B) be adequate, in the determination of Housing Act of 1949 (42 U.S.C.A. 1441 et seq.). ‘‘(i) NOTIFICATION.—If a borrower on a loan the Secretary, to cover expenses and prob- ‘‘(iv) Any other lender that is supervised, guaranteed under this section defaults on able losses. approved, regulated, or insured by any agen- the loan, the holder of the guarantee certifi- ‘‘(3) DEPOSIT.—The Secretary shall deposit cy of the Federal Government. cate shall provide written notice of the de- any fees collected under this subsection in ‘‘(5) TERMS.—The loan shall— fault to the Secretary. the Native Hawaiian Housing Loan Guar- ‘‘(A) be made for a term not exceeding 30 ‘‘(ii) PAYMENT.—Upon providing the notice antee Fund established under subsection (j). years; required under clause (i), the holder of the ‘‘(f) LIABILITY UNDER GUARANTEE.—The li- ‘‘(B) bear interest (exclusive of the guar- ability under a guarantee provided under guarantee certificate shall be entitled to antee fee under subsection (d) and service this section shall decrease or increase on a payment under the guarantee (subject to the charges, if any) at a rate agreed upon by the pro rata basis according to any decrease or provisions of this section) and may proceed borrower and the lender and determined by increase in the amount of the unpaid obliga- to obtain payment in 1 of the following man- the Secretary to be reasonable, but not to tion under the provisions of the loan agree- ners: exceed the rate generally charged in the area ment involved. ‘‘(I) FORECLOSURE.— (as determined by the Secretary) for home ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith- ‘‘(aa) IN GENERAL.—The holder of the cer- mortgage loans not guaranteed or insured by standing any other provision of law, any tificate may initiate foreclosure proceedings any agency or instrumentality of the Fed- loan guaranteed under this section, includ- (after providing written notice of that action eral Government; ing the security given for the loan, may be to the Secretary). ‘‘(C) involve a principal obligation not sold or assigned by the lender to any finan- ‘‘(bb) PAYMENT.—Upon a final order by the exceeding— cial institution subject to examination and court authorizing foreclosure and submission ‘‘(i) 97.75 percent of the appraised value of supervision by an agency of the Federal Gov- to the Secretary of a claim for payment the property as of the date the loan is ac- ernment or of any State or the District of under the guarantee, the Secretary shall pay cepted for guarantee (or 98.75 percent if the Columbia. to the holder of the certificate the pro rata value of the property is $50,000 or less); or ‘‘(h) DISQUALIFICATION OF LENDERS AND portion of the amount guaranteed (as deter- ‘‘(ii) the amount approved by the Secretary CIVIL MONEY PENALTIES.— mined pursuant to subsection (f)) plus rea- under this section; and ‘‘(1) IN GENERAL.— sonable fees and expenses as approved by the ‘‘(D) involve a payment on account of the ‘‘(A) GROUNDS FOR ACTION.—The Secretary Secretary. property— may take action under subparagraph (B) if ‘‘(cc) SUBROGATION.—The rights of the Sec- ‘‘(i) in cash or its equivalent; or the Secretary determines that any lender or retary shall be subrogated to the rights of

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00159 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.065 pfrm12 PsN: S04PT1 S14030 CONGRESSIONAL RECORD — SENATE November 4, 1999 the holder of the guarantee. The holder shall penses and advances to protect the Secretary ‘‘(iv) contain an electrical system using assign the obligation and security to the for loans which are guaranteed under this wiring and equipment properly installed to Secretary. section or held by the Secretary; safely supply electrical energy for adequate ‘‘(II) NO FORECLOSURE.— ‘‘(C) acquiring such security property at lighting and for operation of appliances that ‘‘(aa) IN GENERAL.—Without seeking fore- foreclosure sales or otherwise; conforms to any appropriate county, State, closure (or in any case in which a foreclosure ‘‘(D) paying administrative expenses in or national code; proceeding initiated under clause (i) con- connection with this section; and ‘‘(v) be not less than the size provided tinues for a period in excess of 1 year), the ‘‘(E) reasonable and necessary costs of re- under the applicable locally adopted stand- holder of the guarantee may submit to the habilitation and repair to properties that the ards for size of dwelling units, except that Secretary a request to assign the obligation Secretary holds or owns pursuant to this sec- the Secretary, upon request of the Depart- and security interest to the Secretary in re- tion. ment of Hawaiian Home Lands may waive turn for payment of the claim under the ‘‘(4) INVESTMENT.—Any amounts in the the size requirements under this paragraph; guarantee. The Secretary may accept assign- Guarantee Fund determined by the Sec- and ment of the loan if the Secretary determines retary to be in excess of amounts currently ‘‘(vi) conform with the energy performance that the assignment is in the best interest of required at the time of the determination to requirements for new construction estab- the United States. carry out this section may be invested in ob- lished by the Secretary under section 526(a) ‘‘(bb) PAYMENT.—Upon assignment, the ligations of the United States. of the National Housing Act (12 U.S.C.A. Secretary shall pay to the holder of the ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR- 1735f–4), unless the Secretary determines guarantee the pro rata portion of the ANTEE LOANS AND MORTGAGES.— that the requirements are not applicable. amount guaranteed (as determined under ‘‘(A) REQUIREMENT OF APPROPRIATIONS.— ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STAT- subsection (f)). The authority of the Secretary to enter into UTES.—To the extent that the requirements ‘‘(cc) SUBROGATION.—The rights of the Sec- commitments to guarantee loans under this of title VI of the Civil Rights Act of 1964 (42 retary shall be subrogated to the rights of section shall be effective for any fiscal year U.S.C. 2000d et seq.) or of title VIII of the Act the holder of the guarantee. The holder shall to the extent, or in such amounts as are, or popularly known as the ‘Civil Rights Act of assign the obligation and security to the have been, provided in appropriations Acts, 1968’ (42 U.S.C.A. 3601 et seq.) apply to a Secretary. without regard to the fiscal year for which guarantee provided under this subsection, ‘‘(B) REQUIREMENTS.—Before any payment such amounts were appropriated. nothing in the requirements concerning dis- under a guarantee is made under subpara- ‘‘(B) LIMITATIONS ON COSTS OF GUARAN- crimination on the basis of race shall be con- graph (A), the holder of the guarantee shall TEES.—The authority of the Secretary to strued to prevent the provision of the guar- exhaust all reasonable possibilities of collec- enter into commitments to guarantee loans antee to an eligible entity on the basis that tion. Upon payment, in whole or in part, to under this section shall be effective for any the entity serves Native Hawaiian families the holder, the note or judgment evidencing fiscal year only to the extent that amounts or is a Native Hawaiian family.’’. the debt shall be assigned to the United in the Guarantee Fund are or have been f States and the holder shall have no further made available in appropriations Acts to claim against the borrower or the United cover the costs (as that term is defined in AMERICAN INDIAN EDUCATION States. The Secretary shall then take such section 502 of the Federal Credit Reform Act FOUNDATION ACT OF 1999 action to collect as the Secretary determines of 1990 (2 U.S.C. 661a)) of such loan guaran- to be appropriate. tees for such fiscal year. Any amounts appro- Mr. GRASSLEY. Mr. President, I ask ‘‘(2) LIMITATIONS ON LIQUIDATION.— priated pursuant to this subparagraph shall unanimous consent that the Senate ‘‘(A) IN GENERAL.—If a borrower defaults on remain available until expended. proceed to the consideration of Cal- a loan guaranteed under this section that in- ‘‘(C) LIMITATION ON OUTSTANDING AGGRE- endar No. 334, S. 1290. volves a security interest in restricted Ha- GATE PRINCIPAL AMOUNT.—Subject to the lim- The PRESIDING OFFICER. The waiian Home Land property, the mortgagee itations in subparagraphs (A) and (B), the or the Secretary shall only pursue liquida- Secretary may enter into commitments to clerk will report the bill by title. tion after offering to transfer the account to guarantee loans under this section for each The legislative clerk read as follows: another eligible Hawaiian family or the De- of fiscal years 2000, 2001, 2002, 2003, and 2004 A bill (S. 1290) to amend title 36 of the partment of Hawaiian Home Lands. with an aggregate outstanding principal United States Code to establish the Amer- ‘‘(B) LIMITATION.—If, after action is taken amount not exceeding $100,000,000 for each ican Indian Education Foundation, and for under subparagraph (A), the mortgagee or such fiscal year. other purposes. the Secretary subsequently proceeds to liq- ‘‘(6) LIABILITIES.—All liabilities and obliga- Without objection, the Senate pro- uidate the account, the mortgagee or the tions of the assets credited to the Guarantee ceeded to consider the bill. Secretary shall not sell, transfer, or other- Fund under paragraph (2)(A) shall be liabil- wise dispose of or alienate the property de- ities and obligations of the Guarantee Fund. Mr. GRASSLEY. Mr. President, I ask scribed in subparagraph (A) except to an- ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— unanimous consent that the bill be other eligible Hawaiian family or to the De- There are authorized to be appropriated to read a third time and passed, the mo- partment of Hawaiian Home Lands. the Guarantee Fund to carry out this section tion to reconsider be laid upon the ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE such sums as may be necessary for each of table, and that any statements relating FUND.— fiscal years 2000, 2001, 2002, 2003, and 2004. to the bill be printed in the RECORD. ‘‘(1) ESTABLISHMENT.—There is established ‘‘(k) REQUIREMENTS FOR STANDARD HOUS- The PRESIDING OFFICER. Without in the Treasury of the United States the Ha- ING.— objection, it is so ordered. waiian Housing Loan Guarantee Fund for the ‘‘(1) IN GENERAL.—The Secretary shall, by purpose of providing loan guarantees under regulation, establish housing safety and The bill (S. 1290) was read the third this section. quality standards to be applied for use under time and passed, as follows: ‘‘(2) CREDITS.—The Guarantee Fund shall this section. S. 1290 be credited with— ‘‘(2) STANDARDS.—The standards referred to Be it enacted by the Senate and House of Rep- ‘‘(A) any amount, claims, notes, mort- in paragraph (1) shall— resentatives of the United States of America in gages, contracts, and property acquired by ‘‘(A) provide sufficient flexibility to permit Congress assembled, the Secretary under this section, and any the use of various designs and materials in SECTION 1. SHORT TITLE. collections and proceeds therefrom; housing acquired with loans guaranteed This Act may be cited as the ‘‘American ‘‘(B) any amounts appropriated pursuant under this section; and Indian Education Foundation Act of 1999’’. to paragraph (7); ‘‘(B) require each dwelling unit in any ‘‘(C) any guarantee fees collected under housing acquired in the manner described in SEC. 2. AMERICAN INDIAN EDUCATION FOUNDA- subsection (d); and subparagraph (A) to— TION. ‘‘(D) any interest or earnings on amounts ‘‘(i) be decent, safe, sanitary, and modest (a) IN GENERAL.—Part B of subtitle II of invested under paragraph (4). in size and design; title 36, United States Code, is amended by ‘‘(3) USE.—Amounts in the Guarantee Fund ‘‘(ii) conform with applicable general con- inserting after chapter 215 the following: shall be available, to the extent provided in struction standards for the region in which ‘‘CHAPTER 216. AMERICAN INDIAN appropriations Acts, for— the housing is located; EDUCATION FOUNDATION ‘‘(A) fulfilling any obligations of the Sec- ‘‘(iii) contain a plumbing system that— ‘‘Sec. retary with respect to loans guaranteed ‘‘(I) uses a properly installed system of pip- ‘‘21601. Organization. under this section, including the costs (as ing; ‘‘21602. Purposes. that term is defined in section 502 of the Fed- ‘‘(II) includes a kitchen sink and a ‘‘21603. Governing body. eral Credit Reform Act of 1990 (2 U.S.C. 661a)) partitional bathroom with lavatory, toilet, ‘‘21604. Powers. of such loans; and bath or shower; and ‘‘21605. Principal office. ‘‘(B) paying taxes, insurance, prior liens, ‘‘(III) uses water supply, plumbing, and ‘‘21606. Service of process. expenses necessary to make fiscal adjust- sewage disposal systems that conform to any ‘‘21607. Liability of officers and agents. ment in connection with the application and minimum standards established by the appli- ‘‘21608. Restrictions. transmittal of collections, and other ex- cable county or State; ‘‘21609. Transfer of donated funds.

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‘‘§ 21601. Organization ‘‘(3) ELECTION, TERMS, AND DUTIES OF MEM- after the item relating to chapter 215 the fol- ‘‘(a) FEDERAL CHARTER.—The American In- BERS.—The manner of election, term of of- lowing: dian Education Foundation (referred to in fice, and duties of the officers shall be as pro- ‘‘216. American Indian Education this chapter as the ‘foundation’) is a feder- vided in the constitution and bylaws of the Foundation ...... 21601’’. foundation. ally chartered corporation. SEC. 3. INITIAL PERIOD AFTER ESTABLISHMENT. ‘‘(b) PERPETUAL EXISTENCE.—Except as ‘‘(c) COMPENSATION.— (a) BOARD OF DIRECTORS.— otherwise provided, the foundation has per- ‘‘(1) IN GENERAL.—Except as provided in (1) INITIAL BOARD.—Not later than 6 petual existence. paragraph (2), no compensation shall be paid months after the date of enactment of this ‘‘(c) NATURE OF CORPORATION.—The founda- to a member of the board by reason of serv- Act, the Secretary of the Interior shall ap- tion is a charitable and nonprofit corpora- ice as a member. point the initial voting members of the tion and is not an agency or instrumentality ‘‘(2) TRAVEL EXPENSES.—A member of the board of directors under section 21603 of title of the United States. board shall be reimbursed for actual and nec- 36, United States Code (referred to in this ‘‘(d) PLACE OF INCORPORATION AND DOMI- essary travel and subsistence expenses in- section as the ‘‘board’’). The initial members CILE.—The foundation is declared to be incurred by that member in the performance of of the board shall have staggered terms (as corporated and domiciled in the District of the duties of the foundation. determined by the Secretary of the Interior). Columbia. ‘‘§ 21604. Powers ‘‘(e) DEFINITIONS.—In this chapter: (2) SUCCESSIVE BOARDS.—The composition ‘‘The foundation— ‘‘(1) AMERICAN INDIAN.—The term ‘Amer- of all successive boards after the initial ican Indian’ has the meaning given the term ‘‘(1) shall adopt a constitution and bylaws board shall be in conformity with the con- ‘Indian’ in section 4(d) of the Indian Self-De- for the management of its property and the stitution and bylaws of the American Indian termination and Assistance Act (25 U.S.C. regulation of its affairs, which may be Education Foundation organized under chap- 450b(d)). amended; ter 216 of title 36, United States Code (re- ‘‘(2) shall adopt and alter a corporate seal; ‘‘(2) BUREAU FUNDED SCHOOL.—The term ferred to in this section as the ‘‘founda- ‘Bureau funded school’ has the meaning ‘‘(3) may make contracts, subject to the tion’’). given that term in section 1146 of the Edu- limitations of this chapter; (b) ADMINISTRATIVE SERVICES AND SUP- cation Amendments of 1978 (25 U.S.C. 2026). ‘‘(4) may acquire (through a gift or other- PORT.— wise), own, lease, encumber, and transfer (1) PROVISION OF SUPPORT BY SECRETARY.— ‘‘§ 21602. Purposes real or personal property as necessary or Subject to paragraph (2), during the 5-year ‘‘The purposes of the foundation are— convenient to carry out the purposes of the period beginning on the date of enactment of ‘‘(1) to encourage, accept, and administer foundation; this Act, the Secretary of the Interior— private gifts of real and personal property or ‘‘(5) may sue and be sued; and (A) may provide personnel, facilities, and any income therefrom or other interest ‘‘(6) may carry out any other act necessary other administrative support services to the therein for the benefit of, or in support of, and proper to carry out the purposes of the foundation; the mission of the Office of Indian Education foundation. (B) may provide funds to reimburse the Programs of the Bureau of Indian Affairs (or ‘‘§ 21605. Principal office travel expenses of the members of the board its successor office); under section 21603(c)(2) of title 36, United ‘‘(2) to undertake and conduct such other ‘‘The principal office of the foundation States Code; and activities as will further the educational op- shall be in the District of Columbia. The ac- (C) shall require and accept reimburse- portunities of American Indians who attend tivities of the foundation may be conducted, ments from the foundation for any— a Bureau funded school; and and offices may be maintained, throughout (i) services provided under subparagraph ‘‘(3) to participate with, and otherwise as- the United States in accordance with the (A); and sist, Federal, State, and tribal governments, constitution and bylaws of the foundation. (ii) funds provided under subparagraph (B). agencies, entities, and individuals in under- ‘‘§ 21606. Service of process (2) REIMBURSEMENT.—Reimbursements ac- taking and conducting activities that will ‘‘The foundation shall comply with the law cepted under paragraph (1)(C) shall be depos- further the educational opportunities of on service of process of each State in which ited in the Treasury to the credit of the ap- American Indians attending Bureau funded it is incorporated and of each State in which propriations then current and chargeable for schools. the foundation carries on activities. the cost of providing services described in ‘‘§ 21603. Governing body ‘‘§ 21607. Liability of officers and agents paragraph (1)(A) and the travel expenses de- ‘‘(a) BOARD OF DIRECTORS.— ‘‘The foundation shall be liable for the acts scribed in paragraph (1)(B). ‘‘(1) IN GENERAL.—The board of directors of its officers and agents acting within the (3) CONTINUATION OF CERTAIN SERVICES.— (referred to in this chapter as the ‘board’) is scope of their authority. Members of the Notwithstanding any other provision of this the governing body of the foundation. The board shall be personally liable only for section, the Secretary of the Interior may board may exercise, or provide for the exer- gross negligence in the performance of their continue to provide facilities and necessary cise of, the powers of the foundation. duties. support services to the foundation after the ‘‘(2) COMPOSITION OF BOARD.—Subject to ‘‘§ 21608. Restrictions termination of the 5-year period specified in section 3 of the American Indian Education paragraph (1), on a space available, reimburs- ‘‘(a) LIMITATION ON SPENDING.—Beginning Foundation Act of 1999— able cost basis. with the fiscal year following the first full ‘‘(A) the number of members of the board, f the manner of selection of those members, fiscal year during which the foundation is in the filling of vacancies for the board, and operation, the administrative costs of the foundation may not exceed 10 percent of the CHIPPEWA CREE TRIBE OF THE terms of office of the members of the board ROCKY BOY’S RESERVATION IN- shall be as provided in the constitution and sum of— ‘‘(1) the amounts transferred to the founda- DIAN RESERVED WATER RIGHTS bylaws of the foundation; except that SETTLEMENT ACT OF 1999 ‘‘(B) the board shall have at least 11 mem- tion under section 21609 during the preceding bers, 2 of whom shall be the Secretary of the fiscal year; and Mr. GRASSLEY. Mr. President, I ask ‘‘(2) donations received from private Interior and the Assistant Secretary of the unanimous consent that the Senate Interior for Indian Affairs, who shall serve as sources during the preceding fiscal year. ‘‘(b) APPOINTMENT AND HIRING.—The ap- proceed to the consideration of cal- ex officio nonvoting members. pointment of officers and employees of the endar No. 297, S. 438. ‘‘(3) CITIZENSHIP OF MEMBERS.—The mem- foundation shall be subject to the avail- The PRESIDING OFFICER. The bers of the board shall be United States citi- ability of funds. zens who are knowledgeable or experienced clerk will report the bill by title. ‘‘(c) STATUS.—The members of the board, in American Indian education and shall, to The legislative clerk read as follows: and the officers, employees, and agents of the extent practicable, represent diverse A bill (S. 438) to provide for the settlement the foundation shall not, by reason of their points of view relating to the education of of the water rights claims for the Chippewa association with the foundation, be consid- American Indians. Cree Tribe of the Rocky Boy’s Reservation, ered to be officers, employees, or agents of ‘‘(b) OFFICERS.— and for other purposes. the United States. ‘‘(1) IN GENERAL.—The officers of the foun- There being no objection, the Senate dation shall be a secretary elected from ‘‘§ 21609. Transfer of donated funds among the members of the board and any ‘‘The Secretary of the Interior may trans- proceeded to consider the bill. other officers provided for in the constitu- fer to the foundation funds held by the De- AMENDMENT NO. 2512 tion and bylaws of the foundation. partment of the Interior under the Act of (Purpose: To provide a complete substitute) ‘‘(2) QUALIFICATIONS AND DUTIES OF SEC- February 14, 1931 (46 Stat. 1106, chapter 171; Mr. GRASSLEY. Mr. President, I RETARY.—The secretary shall— 25 U.S.C. 451), if the transfer or use of such send an amendment to the desk and ‘‘(A) serve, at the direction of the board, as funds is not prohibited by any term under its chief operating officer; and which the funds were donated.’’. ask for its immediate consideration. ‘‘(B) be knowledgeable and experienced in (b) CLERICAL AMENDMENT.—The table of The PRESIDING OFFICER. The matters relating to education in general and chapters for part B of subtitle II of title 36, clerk will report. education of American Indians in particular. United States Code, is amended by inserting The legislative clerk read as follows:

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00161 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.058 pfrm12 PsN: S04PT1 S14032 CONGRESSIONAL RECORD — SENATE November 4, 1999 The Senator from Iowa [Mr. GRASSLEY], for Reservation Indian Reserved Water acted in good faith and worked to- Mr. BURNS, for himself and Mr. BAUCUS, pro- Rights Settlement Act is an historic gether to explore options. This cul- poses an amendment numbered 2512. agreement. This is truly a local solu- minated in passage of a resolution by Mr. GRASSLEY. Mr. President, I ask tion that takes into account the needs the Chippewa Cree Tribal Council to unanimous consent that reading of the and sovereign rights of each party. ratify the Compact on January 9, 1997. amendment be dispensed with. Just as the mentioned parties have Following overwhelming approval by The PRESIDING OFFICER. Without worked closely together to get us to the Montana Legislature and appro- objection, it is so ordered. the submission of this bill today, I priation of funds for implementation, (The text of the amendment is print- want to thank all members of Congress Governor Marc Racicot signed the ed in today’s RECORD under ‘‘Amend- with whom I worked closely to ensure Compact into state law on April 14, ments Submitted.’’) passage of this important bill. 1997. Subsequent negotiation, in which Mr. BURNS. Mr. President, I am Mr. BAUCUS. Mr. President, I am so staff from my office assisted the State pleased to urge passage of S. 438, The pleased that the Senate will pass the Chippewa Cree Tribe of the Rocky and Tribe, resulted in approval by the Chippewa Cree Tribe of the Rocky United States Departments of the Inte- Boy’s Reservation Indian Reserved Boy’s Reservation Reserved Water Water Rights Settlement Act of 1999, rior and Justice and drafting of this Rights Settlement. The legislation bill by the three parties. introduced by myself and Senator BAU- ratifies the Compact approved by the The litigation filed in State water CUS of Montana. S. 438 is the ratifica- State and the Tribe in 1997. I was proud tion of an agreement among the United court in 1982 is stayed pending the out- to sponsor this legislation in the 105th come of this bill. Once passed, the States, the State of Montana and the with Senator BURNS as a co-sponsor, Chippewa Cree Tribe settling the water United States, the Tribe and the State and had the 2nd Session of that Con- of Montana will petition the Montana rights of the Tribe in Montana. This gress lasted a few more weeks, I believe represents a fair and equitable settle- Water Court to enter a decree reflect- the bill would have been approved by ing the water rights of the Tribe. ment that will enhance the ability of the Senate. Once again this year, Sen- the Tribe to develop a sustainable I thank my colleagues for supporting ator BURNS and I jointly introduced economy while protecting existing in- this very positive legislation. After this legislation. The passage of this bill years of hard work and negotiations, vestments in water use by off-Reserva- is the culmination of 16 years of exten- tion ranchers who rely on water for we have a victory to be thankful for at sive technical studies and six years of their livelihoods. last. rather intensive negotiations in our The Settlement was negotiated with Mr. President, I yield the floor. extensive involvement by the Tribe and state involving the Chippewa Cree Mr. GRASSLEY. Mr. President, I ask its members, the State of Montana, the Tribe, the Montana State government, unanimous consent that the amend- Administration, and the water users off-Reservation county and municipal ment be agreed to, the bill be read the who own private land on streams governments in north-central Mon- third time and passed, the motion to shared with the Reservation. It has the tana, local ranchers, and the United reconsider be laid upon the table, and support of all those affected and re- States Departments of Justice and In- that any statements relating to the ceived the overwhelming support of the terior. bill be printed in the RECORD. The 122,000-acre Rocky Boy’s Res- Montana Legislature when presented The PRESIDING OFFICER. Without for ratification in 1997. ervation sits west of Havre, Montana objection, it is so ordered. It is a tribute to the Governor of on several tributaries of the Milk River The amendment (No. 2512) was agreed Montana, Marc Racicot, represented by on what was formerly the Fort Assini- to. the Reserved Water Rights Compact boine Military Reserve. Unfortunately, The bill (S. 438), as amended, was Commission; the chairman of the the portion of the land reserved for the read the third time and passed, as fol- Tribe, Bert Corcoran and the Tribe Ne- Chippewa Cree is rough and arid. With- lows: gotiating Team; David Hayes, Acting out irrigation, much of the land is not S. 438 suitable for farming. Recent studies Deputy Secretary of the Interior, the Be it enacted by the Senate and House of Rep- Federal negotiating team; and the have demonstrated that the Reserva- resentatives of the United States of America in water users on Big Sandy and Beaver tion could not sustain the membership Congress assembled, Creeks in the Milk River valley of of the Chippewa Cree Tribe as a perma- SECTION. 1. SHORT TITLE. Montana, that this Compact represents nent homeland without an infusion of This Act may be cited as the ‘‘Chippewa a truly local solution that takes into additional water. The development of a Cree Tribe of The Rocky Boy’s Reservation account the needs and sovereign rights viable reservation economy calls for Indian Reserved Water Rights Settlement of each party. more water for drinking purposes, as and Water Supply Enhancement Act of 1999’’. In addition to ratifying the Settle- well as for agriculture and other mu- SEC. 2. FINDINGS. ment, the bill provides the necessary nicipal uses. In 1982, acting in its fidu- Congress finds that— authorization for funding to develop ciary capacity as trustee for the Tribe, (1) in fulfillment of its trust responsibility the water resources on the Reservation the United States filed a claim for the to Indian tribes and to promote tribal sov- water rights of the Chippewa Cree in ereignty and economic self-sufficiency, it is and to assure a safe drinking water the policy of the United States to settle the supply for the Tribe. For several years the State of Montana general stream water rights claims of the tribes without we have worked closely with the Sen- adjudication. Were it not for the nego- lengthy and costly litigation; ate Indian Affairs and Energy Commit- tiated settlement represented by this (2) the Rocky Boy’s Reservation was estab- tees to fashion a bill that is consistent legislation, divisive and costly litiga- lished as a homeland for the Chippewa Cree with federal policy toward Indian tion would be pending between the Tribe; tribes. Thanks to the substantial ef- State, the Tribe, the United States and (3) adequate water for the Chippewa Cree forts of the Committees, I believe we non-Indian ranchers for many years to Tribe of the Rocky Boy’s Reservation is im- come. Fortunately, in 1979, the Mon- portant to a permanent, sustainable, and have accomplished that goal. sovereign homeland for the Tribe and its This is the first Indian water right tana legislature articulated a policy in members; settlement to come before Congress in favor of negotiation and established (4) the sovereignty of the Chippewa Cree many years. in approving the Chippewa the Montana Reserved Water Rights Tribe and the economy of the Reservation Cree Settlement Act, we have the op- Compact Commission to negotiate depend on the development of the water re- portunity to send the message to west- compacts for the equitable division and sources of the Reservation; ern States that we endorse negotiation apportionment of waters between the (5) the planning, design, and construction as the preferred method of Indian state and its people and several Indian of the facilities needed to utilize water sup- water right quantification, and that we tribes claiming reserved water rights plies effectively are necessary to the development of a viable Reservation economy and will defer to States and Tribes to fash- within the state. to implementation of the Chippewa Cree- ion their own approach to the alloca- From the initial meeting in 1992, to Montana Water Rights Compact; tion of water. the conclusion of an agreed on water (6) the Rocky Boy’s Reservation is located In closing, I believe that the Chip- rights Compact in 1997, the State, the in a water-short area of Montana and it is pewa Cree Tribe of the Rocky Boy’s Federal Government and the Tribe appropriate that the Act provide funding for

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00162 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.145 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14033 the development of additional water sup- petition for certiorari may be filed in the (c) TRIBAL RELEASE OF CLAIMS AGAINST THE plies, including domestic water, to meet the United States Supreme Court, denial of such UNITED STATES.— needs of the Chippewa Cree Tribe; a petition, or the issuance of the Supreme (1) IN GENERAL.—Pursuant to Tribal Reso- (7) proceedings to determine the full extent Court’s mandate, whichever occurs last. lution No. 40–98, and in exchange for benefits of the water rights of the Chippewa Cree (4) FUND.—The term ‘‘Fund’’ means the under this Act, the Tribe shall, on the date Tribe are currently pending before the Mon- Chippewa Cree Indian Reserved Water Rights of enactment of this Act, execute a waiver tana Water Court as a part of In the Matter Settlement Fund established under section and release of the claims described in para- of the Adjudication of All Rights to the Use 104. graph (2) against the United States, the va- of Water, Both Surface and Underground, (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ lidity of which are not recognized by the within the State of Montana; has the meaning given that term in section United States, except that— (8) recognizing that final resolution of the 101(2) of the Federally Recognized Indian (A) the waiver and release of claims shall general stream adjudication will take many Tribe List Act of 1994 (25 U.S.C. 479a(2)). not become effective until the appropriation years and entail great expense to all parties, (6) MR&I FEASIBILITY STUDY.—The term of the funds authorized in section 105, the prolong uncertainty as to the availability of ‘‘MR&I feasibility study’’ means a munic- water allocation in section 201, and the ap- water supplies, and seriously impair the ipal, rural, and industrial, domestic, and in- propriation of funds for the MR&I feasibility long-term economic planning and develop- cidental drought relief feasibility study de- study authorized in section 204 have been ment of all parties, the Chippewa Cree Tribe scribed in section 202. completed and the decree has become final in and the State of Montana entered into the (7) MISSOURI RIVER SYSTEM.—The term accordance with the requirements of section Compact on April 14, 1997; and ‘‘Missouri River System’’ means the 101(b); and (9) the allocation of water resources from mainstem of the Missouri River and its trib- (B) in the event that the approval, ratifica- the Tiber Reservoir to the Chippewa Cree utaries, including the Marias River. tion, and confirmation of the Compact by Tribe under this Act is uniquely suited to (8) RECLAMATION LAW.—The term ‘‘Rec- the United States becomes null and void the geographic, social, and economic charac- lamation Law’’ has the meaning given the under section 101(b), the waiver and release teristics of the area and situation involved. term ‘‘reclamation law’’ in section 4 of the of claims shall become null and void. SEC. 3. PURPOSES. Act of December 5, 1924 (43 Stat. 701, chapter (2) CLAIMS DESCRIBED.—The claims referred The purposes of this Act are as follows: 4; 43 U.S.C. 371). to in paragraph (1) are as follows: (1) To achieve a fair, equitable, and final (9) ROCKY BOY’S RESERVATION; RESERVA- (A) Any and all claims to water rights (in- settlement of all claims to water rights in TION.—The term ‘‘Rocky Boy’s Reservation’’ cluding water rights in surface water, ground the State of Montana for— or ‘‘Reservation’’ means the Rocky Boy’s water, and effluent), claims for injuries to (A) the Chippewa Cree Tribe; and Reservation of the Chippewa Cree Tribe in water rights, claims for loss or deprivation (B) the United States for the benefit of the Montana. of use of water rights, and claims for failure Chippewa Cree Tribe. (10) SECRETARY.—The term ‘‘Secretary’’ to acquire or develop water rights for lands (2) To approve, ratify, and confirm, as means the Secretary of the Interior, or his or of the Tribe from time immemorial to the modified in this Act, the Chippewa Cree- her duly authorized representative. date of ratification of the Compact by Con- Montana Water Rights Compact entered into (11) TOWE PONDS.—The term ‘‘Towe Ponds’’ gress. by the Chippewa Cree Tribe of the Rocky means the reservoir or reservoirs referred to (B) Any and all claims arising out of the Boy’s Reservation and the State of Montana as ‘‘Stoneman Reservoir’’ in the Compact. negotiation of the Compact and the settle- on April 14, 1997, and to provide funding and (12) TRIBAL COMPACT ADMINISTRATION.—The ment authorized by this Act. other authorization necessary for the imple- term ‘‘Tribal Compact Administration’’ (3) SETOFFS.—In the event the waiver and mentation of the Compact. means the activities assumed by the Tribe release do not become effective as set forth (3) To authorize the Secretary of the Inte- for implementation of the Compact as set in paragraph (1)— rior to execute and implement the Compact forth in Article IV of the Compact. (A) the United States shall be entitled to referred to in paragraph (2) and to take such (13) TRIBAL WATER CODE.—The term ‘‘tribal setoff against any claim for damages as- other actions as are necessary to implement water code’’ means a water code adopted by serted by the Tribe against the United the Compact in a manner consistent with the Tribe, as provided in the Compact. States, any funds transferred to the Tribe this Act. (14) TRIBAL WATER RIGHT.— pursuant to section 104, and any interest ac- (4) To authorize Federal feasibility studies (A) IN GENERAL.—The term ‘‘Tribal Water crued thereon up to the date of setoff; and designed to identify and analyze potential Right’’ means the water right set forth in (B) the United States shall retain any mechanisms to enhance, through conserva- section 85–20–601 of the Montana Code Anno- other claims or defenses not waived in this tion or otherwise, water supplies in North tated (1997) and includes the water allocation Act or in the Compact as modified by this Central Montana, including mechanisms to set forth in Title II of this Act. Act. (B) RULE OF CONSTRUCTION.—The definition import domestic water supplies for the fu- (d) OTHER TRIBES NOT ADVERSELY AF- ture growth of the Rocky Boy’s Indian Res- of the term ‘‘Tribal Water Right’’ under this FECTED.—Nothing in this Act shall be con- ervation. paragraph and the treatment of that right strued to quantify or otherwise adversely af- (5) To authorize certain projects on the under this Act shall not be construed or in- Rocky Boy’s Indian Reservation, Montana, terpreted as a precedent for the litigation of fect the land and water rights, or claims or in order to implement the Compact. reserved water rights or the interpretation entitlements to land or water of an Indian (6) To authorize certain modifications to or administration of future compacts be- tribecc other than the Chippewa Cree Tribe. the purposes and operation of the Bureau of tween the United States and the State of (e) ENVIRONMENTAL COMPLIANCE.—In imple- Reclamation’s Tiber Dam and Lake Elwell Montana or any other State. menting the Compact, the Secretary shall (15) TRIBE.—The term ‘‘Tribe’’ means the on the Marias River in Montana in order to comply with all aspects of the National En- provide the Tribe with an allocation of water Chippewa Cree Tribe of the Rocky Boy’s Res- vironmental Policy Act of 1969 (42 U.S.C. 4321 from Tiber Reservoir. ervation and all officers, agents, and depart- et seq.), the Endangered Species Act of 1973 (7) To authorize the appropriation of funds ments thereof. necessary for the implementation of the (16) WATER DEVELOPMENT.—The term (16 U.S.C. 1531 et seq.), and all other applica- Compact. ‘‘water development’’ includes all activities ble environmental Acts and regulations. SEC. 4. DEFINITIONS. that involve the use of water or modification (f) EXECUTION OF COMPACT.—The execution In this Act: of water courses or water bodies in any way. of the Compact by the Secretary as provided (1) ACT.—The term ‘‘Act’’ means the ‘‘Chip- SEC. 5. MISCELLANEOUS PROVISIONS. for in this Act shall not constitute a major pewa Cree Tribe of The Rocky Boy’s Res- (a) NONEXERCISE OF TRIBE’S RIGHTS.—Pur- Federal action under the National Environ- ervation Indian Reserved Water Rights Set- suant to Tribal Resolution No. 40–98, and in mental Policy Act (42 U.S.C. 4321 et seq.). tlement and Water Supply Enhancement Act exchange for benefits under this Act, the The Secretary is directed to carry out all of 1999’’. Tribe shall not exercise the rights set forth necessary environmental compliance re- (2) COMPACT.—The term ‘‘Compact’’ means in Article VII.A.3 of the Compact, except quired by Federal law in implementing the the water rights compact between the Chip- that in the event that the approval, ratifica- pewa Cree Tribe of the Rocky Boy’s Reserva- tion, and confirmation of the Compact by Compact. tion and the State of Montana contained in the United States becomes null and void (g) CONGRESSIONAL INTENT.—Nothing in section 85–20–601 of the Montana Code Anno- under section 101(b), the Tribe shall have the this Act shall be construed to prohibit the tated (1997). right to exercise the rights set forth in Arti- Tribe from seeking additional authorization (3) FINAL.—The term ‘‘final’’ with ref- cle VII.A.3 of the Compact. or appropriation of funds for tribal programs erence to approval of the decree in section (b) WAIVER OF SOVEREIGN IMMUNITY.—Ex- or purposes. 101(b) means completion of any direct appeal cept to the extent provided in subsections to the Montana Supreme Court of a final de- (a), (b), and (c) of section 208 of the Depart- (h) ACT NOT PRECEDENTIAL.—Nothing in cree by the Water Court pursuant to section ment of Justice Appropriation Act, 1953 (43 this Act shall be construed or interpreted as 85–2–235 of the Montana Code Annotated U.S.C. 666), nothing in this Act may be con- a precedent for the litigation of reserved (1997), or to the Federal Court of Appeals, in- strued to waive the sovereign immunity of water rights or the interpretation or admin- cluding the expiration of the time in which a the United States. istration of future water settlement Acts.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00163 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.073 pfrm12 PsN: S04PT1 S14034 CONGRESSIONAL RECORD — SENATE November 4, 1999 TITLE I—CHIPPEWA CREE TRIBE OF THE forth in Article I, section 8(3) of the United Fund and deposit it in a mutually agreed ROCKY BOY’S RESERVATION INDIAN RE- States Constitution and is statutory law of upon private financial institution. That SERVED WATER RIGHTS SETTLEMENT the United States within the meaning of Ar- withdrawal shall be made pursuant to the SEC. 101. RATIFICATION OF COMPACT AND ticle IV.A.4.b.(3) of the Compact. American Indian Trust Fund Management ENTRY OF DECREE. SEC. 103. ON-RESERVATION WATER RESOURCES Reform Act of 1994 (25 U.S.C. 4001 et seq.). (a) WATER RIGHTS COMPACT APPROVED.— DEVELOPMENT. (5) ACCOUNTS.—The Secretary of the Inte- Except as modified by this Act, and to the (a) WATER DEVELOPMENT PROJECTS.—The rior shall establish the following accounts in extent the Compact does not conflict with Secretary, acting through the Bureau of Rec- the Fund and shall allocate appropriations this Act— lamation, is authorized and directed to plan, to the various accounts as required in this (1) the Compact, entered into by the Chip- design, and construct, or to provide, pursu- Act: pewa Cree Tribe of the Rocky Boy’s Reserva- ant to subsection (b), for the planning, de- (A) The Tribal Compact Administration tion and the State of Montana on April 14, sign, and construction of the following water Account. 1997, is hereby approved, ratified, and con- development projects on the Rocky Boy’s (B) The Economic Development Account. firmed; and Reservation: (C) The Future Water Supply Facilities Ac- (2) the Secretary shall— (1) Bonneau Dam and Reservoir Enlarge- count. (b) FUND MANAGEMENT.— (A) execute and implement the Compact ment. (1) IN GENERAL.— together with any amendments agreed to by (2) East Fork of Beaver Creek Dam Repair (A) AMOUNTS IN FUND.—The Fund shall con- the parties or necessary to bring the Com- and Enlargement. sist of such amounts as are appropriated to pact into conformity with this Act; and (3) Brown’s Dam Enlargement. the Fund and allocated to the accounts of (B) take such other actions as are nec- (4) Towe Ponds’ Enlargement. the Fund by the Secretary as provided for in essary to implement the Compact. (5) Such other water development projects as the Tribe shall from time to time consider this Act and in accordance with the author- (b) APPROVAL OF DECREE.— appropriate. izations for appropriations in paragraphs (1), (1) IN GENERAL.—Not later than 180 days (b) IMPLEMENTATION AGREEMENT.—The Sec- (2), and (3) of section 105(a), together with all after the date of enactment of this Act, the retary, at the request of the Tribe, shall interest that accrues in the Fund. United States, the Tribe, or the State of enter into an agreement, or, if appropriate, (B) MANAGEMENT BY SECRETARY.—The Sec- Montana shall petition the Montana Water renegotiate an existing agreement, with the retary shall manage the Fund, make invest- Court, individually or jointly, to enter and Tribe to implement the provisions of this ments from the Fund, and make available approve the decree agreed to by the United Act through the Tribe’s annual funding funds from the Fund for distribution to the States, the Tribe, and the State of Montana agreement entered into under the self-gov- Tribe in a manner consistent with the Amer- attached as Appendix 1 to the Compact, or ernance program under title IV of the Indian ican Indian Trust Fund Management Reform any amended version thereof agreed to by Self-Determination and Education Assist- Act of 1994 (25 U.S.C. 4001 et seq.). the United States, the Tribe, and the State ance Act (25 U.S.C. 458aa et seq.) by which (2) TRIBAL MANAGEMENT.— of Montana. the Tribe shall plan, design, and construct (A) IN GENERAL.—If the Tribe exercises its (2) RESORT TO THE FEDERAL DISTRICT any or all of the projects authorized by this right pursuant to subsection (a)(4) to with- COURT.—Under the circumstances set forth in section. draw the Fund and deposit it in a private fi- Article VII.B.4 of the Compact, 1 or more (c) BUREAU OF RECLAMATION PROJECT AD- nancial institution, except as provided in the parties may file an appropriate motion (as MINISTRATION.— withdrawal plan, neither the Secretary nor provided in that article) in the United States (1) IN GENERAL.—Congress finds that the the Secretary of the Treasury shall retain district court of appropriate jurisdiction. Secretary, through the Bureau of Reclama- any oversight over or liability for the ac- (3) EFFECT OF FAILURE OF APPROVAL TO BE- tion, has entered into an agreement with the counting, disbursement, or investment of the COME FINAL.—In the event the approval by Tribe, pursuant to title IV of the Indian Self- funds. the appropriate court, including any direct Determination and Education Assistance Act (B) WITHDRAWAL PLAN.—The withdrawal appeal, does not become final within 3 years (25 U.S.C. 458aa et seq.)— plan referred to in subparagraph (A) shall after the filing of the decree, or the decree is (A) defining and limiting the role of the provide for— approved but is subsequently set aside by the Bureau of Reclamation in its administration (i) the creation of accounts and allocation appropriate court— of the projects authorized in subsection (a); to accounts in a fund established under the (A) the approval, ratification, and con- (B) establishing the standards upon which plan in a manner consistent with subsection firmation of the Compact by the United the projects will be constructed; and (a); and States shall be null and void; and (C) for other purposes necessary to imple- (ii) the appropriate terms and conditions, (B) except as provided in subsections (a) ment this section. if any, on expenditures from the fund (in ad- and (c)(3) of section 5 and section 105(e)(1), (2) AGREEMENT.—The agreement referred to dition to the requirements of the plans set this Act shall be of no further force and ef- in paragraph (1) shall become effective when forth in paragraphs (2) and (3) of subsection fect. the Tribe exercises its right under subsection (c)). SEC. 102. USE AND TRANSFER OF THE TRIBAL (b). (c) USE OF FUND.—The Tribe shall use the WATER RIGHT. SEC. 104. CHIPPEWA CREE INDIAN RESERVED Fund to fulfill the purposes of this Act, sub- (a) ADMINISTRATION AND ENFORCEMENT.—As WATER RIGHTS SETTLEMENT TRUST ject to the following restrictions on expendi- provided in the Compact, until the adoption FUND. tures: and approval of a tribal water code by the (a) ESTABLISHMENT OF TRUST FUND.— (1) Except for $400,000 necessary for capital Tribe, the Secretary shall administer and en- (1) IN GENERAL.— expenditures in connection with Tribal Com- force the Tribal Water Right. (A) ESTABLISHMENT.—There is hereby es- pact Administration, only interest accrued (b) TRIBAL MEMBER ENTITLEMENT.— tablished in the Treasury of the United on the Tribal Compact Administration Ac- (1) IN GENERAL.—Any entitlement to Fed- States a trust fund for the Chippewa Cree count referred to in subsection (a)(5)(A) shall eral Indian reserved water of any tribal Tribe of the Rocky Boy’s Reservation to be be available to satisfy the Tribe’s obliga- member shall be satisfied solely from the known as the ‘‘Chippewa Cree Indian Re- tions for Tribal Compact Administration water secured to the Tribe by the Compact served Water Rights Settlement Trust under the provisions of the Compact. and shall be governed by the terms and con- Fund’’. (2) Both principal and accrued interest on ditions of the Compact. (B) AVAILABILITY OF AMOUNTS IN FUND.— the Economic Development Account referred (2) ADMINISTRATION.—An entitlement de- (i) IN GENERAL.—Amounts in the Fund to in subsection (a)(5)(B) shall be available scribed in paragraph (1) shall be adminis- shall be available to the Secretary for man- to the Tribe for expenditure pursuant to an tered by the Tribe pursuant to a tribal water agement and investment on behalf of the economic development plan approved by the code developed and adopted pursuant to Arti- Tribe and distribution to the Tribe in ac- Secretary. cle IV.A.2 of the Compact, or by the Sec- cordance with this Act. (3) Both principal and accrued interest on retary pending the adoption and approval of (ii) AVAILABILITY.—Funds made available the Future Water Supply Facilities Account the tribal water code. from the Fund under this section shall be referred to in subsection (a)(5)(C) shall be (c) TEMPORARY TRANSFER OF TRIBAL WATER available without fiscal year limitation. available to the Tribe for expenditure pursu- RIGHT.—The Tribe may, with the approval of (2) MANAGEMENT OF FUND.—The Secretary ant to a water supply plan approved by the the Secretary and the approval of the State shall deposit and manage the principal and Secretary. of Montana pursuant to Article IV.A.4 of the interest in the Fund in a manner consistent (d) INVESTMENT OF FUND.— Compact, transfer any portion of the Tribal with subsection (b) and other applicable pro- (1) IN GENERAL.— water right for use off the Reservation by visions of this Act. (A) APPLICABLE LAWS.—The Secretary shall service contract, lease, exchange, or other (3) CONTENTS OF FUND.—The Fund shall invest amounts in the Fund in accordance agreement. No service contract, lease, ex- consist of the amounts authorized to be ap- with— change, or other agreement entered into propriated to the Fund under section 105(a) (i) the Act of April 1, 1880 (21 Stat. 70, chap- under this subsection may permanently al- and such other amounts as may be trans- ter 41; 25 U.S.C. 161); ienate any portion of the Tribal water right. ferred or credited to the Fund. (ii) the first section of the Act entitled The enactment of this subsection shall con- (4) WITHDRAWAL.—The Tribe, with the ap- ‘‘An Act to authorize the payment of inter- stitute a plenary exercise of the powers set proval of the Secretary, may withdraw the est of certain funds held in trust by the

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00164 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.073 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14035 United States for Indian tribes’’, approved (B) $8,000,000 for fiscal year 2001, for the gram under title IV of the Indian Self-Deter- February 12, 1929 (25 U.S.C. 161a); and planning, design, and construction of the mination and Education Assistance Act (25 (iii) the first section of the Act entitled East Fork Dam and Reservoir enlargement, U.S.C. 458aa et seq.), withdrawal plans, with- ‘‘An Act to authorize the deposit and invest- of the Brown’s Dam and Reservoir enlarge- drawal agreements, or any other agreements ment of Indian funds’’, approved June 24, 1938 ment, and of the Towe Ponds enlargement of for withdrawal or transfer of the funds to the (25 U.S.C.162a). which— Tribe or a private financial institution under (B) CREDITING OF AMOUNTS TO THE FUND.— (i) $4,000,000 shall be used for the East Fork this Act. The interest on, and the proceeds from the Dam and Reservoir enlargement; (f) WITHOUT FISCAL YEAR LIMITATION.—All sale or redemption of, any obligations of the (ii) $2,000,000 shall be used for the Brown’s money appropriated pursuant to authoriza- United States held in the Fund shall be cred- Dam and Reservoir enlargement; and tions under this title shall be available with- ited to and form part of the Fund. The Sec- (iii) $2,000,000 shall be used for the Towe out fiscal year limitation. retary of the Treasury shall credit to each of Ponds enlargement; and SEC. 106. STATE CONTRIBUTIONS TO SETTLE- the accounts contained in the Fund a propor- (C) $3,000,000 for fiscal year 2002, for the MENT. tionate amount of that interest and pro- planning, design, and construction of such Consistent with Articles VI.C.2 and C.3 of ceeds. other water resource developments as the the Compact, the State contribution to settlement shall be as follows: (2) CERTAIN WITHDRAWN FUNDS.— Tribe, with the approval of the Secretary, (1) The contribution of $150,000 appro- (A) IN GENERAL.—Amounts withdrawn from from time to time may consider appropriate the Fund and deposited in a private financial or for the completion of the 4 projects enu- priated by Montana House Bill 6 of the 55th institution pursuant to a withdrawal plan merated in subparagraphs (A) and (B) of Legislative Session (1997) shall be used for the following purposes: approved by the Secretary under the Amer- paragraph (1). (A) Water quality discharge monitoring ican Indian Trust Fund Management Reform (2) UNEXPENDED BALANCES.—Any unex- wells and monitoring program. Act of 1994 (25 U.S.C. 4001 et seq.) shall be in- pended balance in the funds authorized to be (B) A diversion structure on Big Sandy vested by an appropriate official under that appropriated under subparagraph (A) or (B) Creek. plan. of paragraph (1), after substantial comple- (C) A conveyance structure on Box Elder (B) DEPOSIT OF INTEREST AND PROCEEDS.— tion of all of the projects enumerated in Creek. The interest on, and the proceeds from the paragraphs (1) through (4) of section 103(a)— (D) The purchase of contract water from sale or redemption of, any obligations held (A) shall be available to the Tribe first for Lower Beaver Creek Reservoir. under this paragraph shall be deposited in completion of the enumerated projects; and (2) Subject to the availability of funds, the the private financial institution referred to (B) then for other water resource development projects on the Reservation. State shall provide services valued at $400,000 in subparagraph (A) in the fund established for administration required by the Compact pursuant to the withdrawal plan referred to (c) ADMINISTRATION COSTS.—There is authorized to be appropriated to the Depart- and for water quality sampling required by in that subparagraph. The appropriate offi- ment of the Interior, for the Bureau of Rec- the Compact. cial shall credit to each of the accounts con- lamation, $1,000,000 for fiscal year 2000, for tained in that fund a proportionate amount TITLE II—TIBER RESERVOIR ALLOCATION the costs of administration of the Bureau of of that interest and proceeds. AND FEASIBILITY STUDIES AUTHORIZA- Reclamation under this Act, except that— TION. (e) AGREEMENT REGARDING FUND EXPENDI- (1) if those costs exceed $1,000,000, the Bu- TURES.—If the Tribe does not exercise its SEC. 201. TIBER RESERVOIR. reau of Reclamation may use funds author- right under subsection (a)(4) to withdraw the (a) ALLOCATION OF WATER TO THE TRIBE.— ized for appropriation under subsection (b) funds in the Fund and transfer those funds to (1) IN GENERAL.—The Secretary shall per- for costs; and a private financial institution, the Secretary manently allocate to the Tribe, without cost (2) the Bureau of Reclamation shall exer- shall enter into an agreement with the Tribe to the Tribe, 10,000 acre-feet per year of cise its best efforts to minimize those costs providing for appropriate terms and condi- stored water from the water right of the Bu- to avoid expenditures for the costs of admin- tions, if any, on expenditures from the Fund reau of Reclamation in Lake Elwell, Lower istration under this Act that exceed a total in addition to the plans set forth in para- Marias Unit, Upper Missouri Division, Pick- of $1,000,000. graphs (2) and (3) of subsection (c). Sloan Missouri Basin Program, Montana, (d) AVAILABILITY OF FUNDS.— measured at the outlet works of the dam or (f) PER CAPITA DISTRIBUTIONS PROHIB- (1) IN GENERAL.—The amounts authorized at the diversion point from the reservoir. ITED.—No part of the Fund shall be distrib- to be appropriated to the Fund and allocated The allocation shall become effective when uted on a per capita basis to members of the to its accounts pursuant to subsection (a) Tribe. the decree referred to in section 101(b) has shall be deposited into the Fund and allo- become final in accordance with that sec- SEC. 105. AUTHORIZATION OF APPROPRIATIONS. cated immediately on appropriation. tion. The allocation shall be part of the Trib- (a) CHIPPEWA CREE FUND.—There is author- (2) INVESTMENTS.—Investments may be al Water Right and subject to the terms of ized to be appropriated for the Fund, made from the Fund pursuant to section this Act. $21,000,000 to be allocated by the Secretary as 104(d). (2) AGREEMENT.—The Secretary shall enter follows: (3) AVAILABILITY OF CERTAIN MONEYS.—The into an agreement with the Tribe setting (1) TRIBAL COMPACT ADMINISTRATION AC- amounts authorized to be appropriated in forth the terms of the allocation and pro- COUNT.—For Tribal Compact Administration subsection (a)(1) shall be available for use viding for the Tribe’s use or temporary assumed by the Tribe under the Compact and immediately upon appropriation in accord- transfer of water stored in Lake Elwell, sub- this Act, $3,000,000 is authorized to be appro- ance with subsection 104(c)(1). ject to the terms and conditions of the Com- priated for fiscal year 2000. (4) LIMITATION.—Those moneys allocated pact and this Act. (2) ECONOMIC DEVELOPMENT ACCOUNT.—For by the Secretary to accounts in the Fund or (3) PRIOR RESERVED WATER RIGHTS.—The al- tribal economic development, $3,000,000 is au- in a fund established under section 104(a)(4) location provided in this section shall be thorized to be appropriated for fiscal year shall draw interest consistent with section subject to the prior reserved water rights, if 2000. 104(d), but the moneys authorized to be ap- any, of any Indian tribe, or person claiming (3) FUTURE WATER SUPPLY FACILITIES AC- propriated under subsection (b) and para- water through any Indian tribe. COUNT.—For the total Federal contribution graphs (2) and (3) of subsection (a) shall not (b) USE AND TEMPORARY TRANSFER OF AL- to the planning, design, construction, oper- be available for expenditure until the re- LOCATION.— ation, maintenance, and rehabilitation of a quirements of section 101(b) have been met (1) IN GENERAL.—Subject to the limitations future water supply system for the Reserva- so that the decree has become final and the and conditions set forth in the Compact and tion, there are authorized to be Tribe has executed the waiver and release re- this Act, the Tribe shall have the right to de- appropriated— quired under section 5(c). vote the water allocated by this section to (A) $2,000,000 for fiscal year 2000; (e) RETURN OF FUNDS TO THE TREASURY.— any use, including agricultural, municipal, (B) $8,000,000 for fiscal year 2001; and (1) IN GENERAL.—In the event that the ap- commercial, industrial, mining, or rec- (C) $5,000,000 for fiscal year 2002. proval, ratification, and confirmation of the reational uses, within or outside the Rocky (b) ON-RESERVATION WATER DEVELOP- Compact by the United States becomes null Boy’s Reservation. MENT.— and void under section 101(b), all unexpended (2) CONTRACTS AND AGREEMENTS.—Notwith- (1) IN GENERAL.—There are authorized to be funds appropriated under the authority of standing any other provision of statutory or appropriated to the Department of the Inte- this Act together with all interest earned on common law, the Tribe may, with the ap- rior, for the Bureau of Reclamation, for the such funds, notwithstanding whether the proval of the Secretary and subject to the construction of the on-Reservation water de- funds are held by the Tribe, a private insti- limitations and conditions set forth in the velopment projects authorized by section tution, or the Secretary, shall revert to the Compact, enter into a service contract, 103— general fund of the Treasury 12 months after lease, exchange, or other agreement pro- (A) $13,000,000 for fiscal year 2000, for the the expiration of the deadline established in viding for the temporary delivery, use, or planning, design, and construction of the section 101(b). transfer of the water allocated by this sec- Bonneau Dam Enlargement, for the develop- (2) INCLUSION IN AGREEMENTS AND PLAN.— tion, except that no such service contract, ment of additional capacity in Bonneau Res- The requirements in paragraph (1) shall be lease, exchange, or other agreement may ervoir for storage of water secured to the included in all annual funding agreements permanently alienate any portion of the Tribe under the Compact; entered into under the self-governance pro- tribal allocation.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00165 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.073 pfrm12 PsN: S04PT1 S14036 CONGRESSIONAL RECORD — SENATE November 4, 1999

(c) REMAINING STORAGE.—The United (3) evaluate opportunities to resolve the Sec. 102. Assistance to promote democracy and States shall retain the right to use for any issues referred to in paragraph (2); and civil society in Yugoslavia. authorized purpose, any and all storage re- (4) evaluate options for implementation of Sec. 103. Authority for radio and television maining in Lake Elwell after the allocation resolutions to the issues. broadcasting. made to the Tribe in subsection (a). (c) REQUIREMENTS.—Because of the re- TITLE II—ASSISTANCE TO THE VICTIMS OF (d) WATER TRANSPORT OBLIGATION; DEVEL- gional and international impact of the re- SERBIAN OPPRESSION OPMENT AND DELIVERY COSTS.—The United gional feasibility study, the study may not States shall have no responsibility or obliga- be segmented. The regional study shall— Sec. 201. Findings. tion to provide any facility for the transport (1) utilize, to the maximum extent pos- Sec. 202. Sense of Congress. Sec. 203. Assistance. of the water allocated by this section to the sible, existing information; and Rocky Boy’s Reservation or to any other lo- (2) be planned and conducted in consulta- TITLE III—‘‘OUTER WALL’’ SANCTIONS cation. Except for the contribution set forth tion with all affected interests, including in- Sec. 301. ‘‘Outer wall’’ sanctions. in section 105(a)(3), the cost of developing terests in Canada. Sec. 302. International financial institutions and delivering the water allocated by this SEC. 204. AUTHORIZATION OF APPROPRIATIONS not in compliance with ‘‘outer title or any other supplemental water to the FOR FEASIBILITY STUDIES. wall’’ sanctions. Rocky Boy’s Reservation shall not be borne (a) FISCAL YEAR 1999 APPROPRIATIONS.—Of TITLE IV—OTHER MEASURES AGAINST by the United States. the amounts made available by appropria- YUGOSLAVIA (e) SECTION NOT PRECEDENTIAL.—The provi- tions for fiscal year 1999 for the Bureau of sions of this section regarding the allocation Reclamation, $1,000,000 shall be used for the Sec. 401. Blocking Yugoslavia assets in the of water resources from the Tiber Reservoir purpose of commencing the MR&I feasibility United States. to the Tribe shall not be construed as prece- study under section 202 and the regional Sec. 402. Suspension of entry into the United dent in the litigation or settlement of any study under section 203, of which— States. other Indian water right claims. (1) $500,000 shall be used for the MR&I Sec. 403. Prohibition on strategic exports to SEC. 202. MUNICIPAL, RURAL, AND INDUSTRIAL study under section 202; and Yugoslavia. FEASIBILITY STUDY. (2) $500,000 shall be used for the regional Sec. 404. Prohibition on loans and investment. Sec. 405. Prohibition of military-to-military co- (a) AUTHORIZATION.— study under section 203. (1) IN GENERAL.— (b) FEASIBILITY STUDIES.—There is author- operation. (A) STUDY.—The Secretary, acting through ized to be appropriated to the Department of Sec. 406. Multilateral sanctions. the Bureau of Reclamation, shall perform an the Interior, for the Bureau of Reclamation, Sec. 407. Exemptions. MR&I feasibility study of water and related for the purpose of conducting the MR&I fea- Sec. 408. Waiver; termination of measures resources in North Central Montana to sibility study under section 202 and the re- against Yugoslavia. evaluate alternatives for a municipal, rural, gional study under section 203, $3,000,000 for Sec. 409. Statutory construction. and industrial supply for the Rocky Boy’s fiscal year 2000, of which— TITLE V—MISCELLANEOUS PROVISIONS Reservation. (1) $500,000 shall be used for the MR&I fea- Sec. 501. The International Criminal Tribunal (B) USE OF FUNDS MADE AVAILABLE FOR FIS- sibility study under section 202; and for the former Yugoslavia. CAL YEAR 1999.—The authority under subpara- (2) $2,500,000 shall be used for the regional Sec. 502. Sense of Congress with respect to eth- graph (A) shall be deemed to apply to MR&I study under section 203. nic Hungarians of Vojvodina. feasibility study activities for which funds (c) WITHOUT FISCAL YEAR LIMITATION.—All Sec. 503. Ownership and use of diplomatic and were made available by appropriations for money appropriated pursuant to authoriza- consular properties. fiscal year 1999. tions under this title shall be available with- Sec. 504. Transition assistance. (2) CONTENTS OF STUDY.—The MR&I feasi- out fiscal year limitation. SEC. 2. DEFINITIONS. bility study shall include the feasibility of (d) AVAILABILITY OF CERTAIN MONEYS.—The releasing the Tribe’s Tiber allocation as pro- amounts made available for use under sub- In this Act: vided for in section 201 into the Missouri section (a) shall be deemed to have been (1) APPROPRIATE CONGRESSIONAL COMMIT- River System for later diversion to a treat- available for use as of the date on which TEES.—The term ‘‘appropriate congressional ment and delivery system for the Rocky those funds were appropriated. The amounts committees’’ means the Committee on Foreign Boy’s Reservation. authorized to be appropriated in subsection Relations of the Senate and the Committee on (3) UTILIZATION OF EXISTING STUDIES.—The (b) shall be available for use immediately International Relations of the House of Rep- MR&I feasibility study shall include utiliza- upon appropriation. resentatives. tion of existing Federal and non-Federal f (2) COMMERCIAL EXPORT.—The term ‘‘commer- studies and shall be planned and conducted cial export’’ means the sale of a farm product or in consultation with other Federal agencies, SERBIA DEMOCRATIZATION ACT medicine by a United States seller to a foreign the State of Montana, and the Chippewa Cree OF 1999 buyer in exchange for cash payment on market terms without benefit of concessionary financ- Tribe. Mr. GRASSLEY. Mr. President, I ask (b) ACCEPTANCE OR PARTICIPATION IN IDEN- ing, export subsidies, government or govern- TIFIED OFF-RESERVATION SYSTEM.—The unanimous consent that the Senate ment-backed credits or other nonmarket financ- United States, the Chippewa Cree Tribe of now proceed to the consideration of ing arrangements. the Rocky Boy’s Reservation, and the State calendar No. 256, S. 720. (3) INTERNATIONAL CRIMINAL TRIBUNAL FOR of Montana shall not be obligated to accept The PRESIDING OFFICER. The THE FORMER YUGOSLAVIA OR TRIBUNAL.—The or participate in any potential off-Reserva- clerk will report the bill by title. The term ‘‘International Criminal Tribunal for the tion water supply system identified in the legislative clerk read as follows: former Yugoslavia’’ or the ‘‘Tribunal’’ means MR&I feasibility study authorized in sub- A bill (S. 720) to promote the development the International Tribunal for the Prosecution section (a). of a government in the Federal Republic of of Persons Responsible for Serious Violations of SEC. 203. REGIONAL FEASIBILITY STUDY— Yugoslavia (Serbia and Montenegro) based International Humanitarian Law Committed in (a) IN GENERAL.— on democratic principles and the rule of law, the Territory of the Former Yugoslavia Since (1) STUDY.—The Secretary, acting through and that respects internationally recognized 1991, as established by United Nations Security the Bureau of Reclamation, shall conduct, human rights, to assist the victims of Ser- Council Resolution 827 of May 25, 1993. pursuant to Reclamation Law, a regional bian oppression, to apply measures against (4) YUGOSLAVIA.—The term ‘‘Yugoslavia’’ feasibility study (referred to in this sub- the Federal Republic of Yugoslavia, and for means the so-called Federal Republic of Yugo- section as the ‘‘regional feasibility study’’) other purposes. slavia (Serbia and Montenegro), and the term to evaluate water and related resources in ‘‘Government of Yugoslavia’’ means the central North-Central Montana in order to deter- There being no objection, the Senate government of Yugoslavia. mine the limitations of those resources and proceeded to consider the bill, which TITLE I—SUPPORT FOR THE DEMOCRATIC how those resources can best be managed had been reported from the Committee OPPOSITION and developed to serve the needs of the citi- on Foreign Relations, with an amend- zens of Montana. ment to strike all after the enacting SEC. 101. FINDINGS AND POLICY. (2) USE OF FUNDS MADE AVAILABLE FOR FIS- (a) FINDINGS.—Congress finds the following: clause and inserting in lieu thereof the (1) The President of Yugoslavia, Slobodan CAL YEAR 1999.—The authority under para- following: graph (1) shall be deemed to apply to re- Milosevic, has consistently engaged in undemo- gional feasibility study activities for which SECTION 1. SHORT TITLE; TABLE OF CONTENTS. cratic methods of governing. funds were made available by appropriations (a) SHORT TITLE.—This Act may be cited as (2) Yugoslavia has passed and implemented a for fiscal year 1999. the ‘‘Serbia Democratization Act of 1999’’. law strictly limiting freedom of the press and (b) TABLE OF CONTENTS.—The table of con- (b) CONTENTS OF STUDY.—The regional fea- has acted to intimidate and prevent independent sibility study shall— tents of this Act is as follows: media from operating inside Yugoslavia. (1) evaluate existing and potential water Sec. 1. Short title; table of contents. (3) Although the Yugoslav and Serbian con- supplies, uses, and management; Sec. 2. Definitions. stitutions provide for the right of citizens to (2) identify major water-related issues, in- TITLE I—SUPPORT FOR THE DEMOCRATIC change their government, citizens of Serbia in cluding environmental, water supply, and OPPOSITION practice are prevented from exercising that right economic issues; Sec. 101. Findings and policy. by the Milosevic regime’s domination of the

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00166 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.073 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14037 mass media and manipulation of the electoral (F) The development of all elements of the (1) humanitarian assistance to the victims of process. democratic process, including political parties the conflict in Kosovo, including refugees and (4) The Yugoslav government has orchestrated and the ability to administer free and fair elec- internally displaced persons, and all assistance attacks on academics at institutes and univer- tions. to rebuild damaged property in Kosovo, should sities throughout the country in an effort to pre- (G) The development of local governance. be the responsibility of the Government of Yugo- vent the dissemination of opinions that differ (H) The development of a free-market econ- slavia and the Government of Serbia; from official state propaganda. omy. (2) under the direction of President Milosevic, (5) The Yugoslav government prevents the for- (4) AUTHORIZATION OF APPROPRIATIONS.— neither the Government of Yugoslavia nor the mation of nonviolent, democratic opposition (A) IN GENERAL.—There is authorized to be Government of Serbia has provided the resources through restrictions on freedom of assembly and appropriated to the President $100,000,000 for to assist innocent, civilian victims of oppression association. the period beginning October 1, 1999, and ending in Kosovo; and (6) The Yugoslav government uses control and September 30, 2001, to carry out this subsection. (3) because neither the Government of Yugo- intimidation to control the judiciary and manip- (B) AVAILABILITY OF FUNDS.—Amounts appro- slavia nor the Government of Serbia has ful- ulates the country’s legal framework to suit the priated pursuant to subparagraph (A) are au- filled the responsibilities of a sovereign govern- regime’s immediate political interests. thorized to remain available until expended. ment toward the people in Kosovo, the inter- (b) PROHIBITION ON ASSISTANCE TO GOVERN- (7) The Government of Serbia and the Govern- national community offers the only recourse for MENT OF SERBIA.—In carrying out subsection ment of Yugoslavia, under the direction of humanitarian assistance to victims of oppression (a), the President should take all necessary President Milosevic, have obstructed the efforts in Kosovo. of the Government of Montenegro to pursue steps to ensure that no funds or other assistance is provided to the Government of Yugoslavia or SEC. 203. ASSISTANCE. democratic and free-market policies. (a) AUTHORITY.—The President is authorized (8) At great risk, the Government of Monte- to the Government of Serbia, except for purposes permitted under this Act. to furnish assistance under section 491 of the negro has withstood efforts by President Foreign Assistance Act of 1961 (22 U.S.C. 2292) Milosevic to interfere with its government and (c) ASSISTANCE TO GOVERNMENT OF MONTE- NEGRO.—In carrying out subsection (a), the and the Migration and Refugee Assistance Act supported the goals of the United States in the of 1962 (22 U.S.C. 2601 et seq.), as appropriate, conflict in Kosovo. President may provide assistance to the Govern- ment of Montenegro, unless the President deter- for— (9) The people of Serbia who do not endorse (1) relief, rehabilitation, and reconstruction in the undemocratic actions of the Milosevic gov- mines, and so reports to the appropriate congressional committees, that the leadership of the Kosovo; and ernment should not be the target of criticism (2) refugees and persons displaced by the con- that is rightly directed at the Milosevic regime. Government of Montenegro is not committed to, or is not taking steps to promote, democratic flict in Kosovo. (b) POLICY.— (b) PROHIBITION.—No assistance may be pro- (1) It is the policy of the United States to en- principles, the rule of law, or respect for internationally recognized human rights. vided under this section to any group that has courage the development of a government in been designated as a terrorist organization Yugoslavia based on democratic principles and SEC. 103. AUTHORITY FOR RADIO AND TELE- VISION BROADCASTING. under section 219 of the Immigration and Na- the rule of law and that respects internationally tionality Act (8 U.S.C. 1189). recognized human rights. (a) IN GENERAL.—The Broadcasting Board of Governors shall further the open communication (c) USE OF ECONOMIC SUPPORT FUNDS.—Any (2) It is the sense of Congress that— funds that have been allocated under chapter 4 (A) the United States should actively support of information and ideas through the increased use of radio and television broadcasting to of part II of the Foreign Assistance Act of 1961 the democratic opposition in Yugoslavia, includ- (22 U.S.C. 2346 et seq.) for assistance described ing political parties and independent trade Yugoslavia in both the Serbo-Croatian and Al- banian languages. in subsection (a) may be used in accordance unions, to develop a legitimate and viable alter- with the authority of that subsection. native to the Milosevic regime; (b) IMPLEMENTATION.—Radio and television (B) all United States Government officials, in- broadcasting under subsection (a) shall be car- TITLE III—‘‘OUTER WALL’’ SANCTIONS cluding individuals from the private sector act- ried out by the Voice of America and, in addi- SEC. 301. ‘‘OUTER WALL’’ SANCTIONS. ing on behalf of the United States Government, tion, radio broadcasting under that subsection (a) APPLICATION OF MEASURES.—The sanc- should attempt to meet regularly with represent- shall be carried out by RFE/RL, Incorporated. tions described in subsections (c) through (g) atives of democratic opposition organizations of Subsection (a) shall be carried out in accord- shall apply with respect to Yugoslavia until the Yugoslavia and minimize to the extent prac- ance with all the respective Voice of America President determines and certifies to the appro- ticable any direct contacts with government offi- and RFE/RL, Incorporated, standards to ensure priate congressional committees that the Gov- cials from Yugoslavia, particularly President that radio and television broadcasting to Yugo- ernment of Yugoslavia has made significant Slobodan Milosevic, who perpetuate the non- slavia serves as a consistently reliable and au- progress in meeting the conditions described in democratic regime in Yugoslavia; and thoritative source of accurate, objective, and subsection (b). (C) the United States should emphasize to all comprehensive news. (b) CONDITIONS.—The conditions referred to in political leaders in Yugoslavia the importance of (c) STATUTORY CONSTRUCTION.—The imple- subsection (a) are the following: respecting internationally recognized human mentation of subsection (a) may not be con- (1) Agreement on a lasting settlement in rights for all individuals residing in Yugoslavia. strued as a replacement for the strengthening of Kosovo. indigenous independent media called for in sec- SEC. 102. ASSISTANCE TO PROMOTE DEMOCRACY (2) Compliance with the General Framework AND CIVIL SOCIETY IN YUGOSLAVIA. tion 102(a)(3)(C). To the maximum extent prac- Agreement for Peace in Bosnia and ticable, the two efforts (strengthening inde- (a) ASSISTANCE.— Herzegovina. (1) PURPOSE OF ASSISTANCE.—The purpose of pendent media and increasing broadcasts into (3) Implementation of internal democratic re- assistance under this subsection is to promote Serbia) shall be carried out in such a way that form. and strengthen institutions of democratic gov- they mutually support each other. (4) Settlement of all succession issues with the ernment and the growth of an independent civil TITLE II—ASSISTANCE TO THE VICTIMS other republics that emerged from the break-up society in Yugoslavia, including ethnic toler- OF SERBIAN OPPRESSION of the Socialist Federal Republic of Yugoslavia. ance and respect for internationally recognized SEC. 201. FINDINGS. (5) Cooperation with the International Crimi- human rights. The Congress finds the following: nal Tribunal for the former Yugoslavia, includ- (2) AUTHORIZATION FOR ASSISTANCE.—To carry (1) Beginning in February 1998 and ending in ing the transfer of all indicted war criminals in out the purpose of paragraph (1), the President June 1999, the armed forces of Yugoslavia and Yugoslavia to the Hague. is authorized to furnish assistance and other the Serbian Interior Ministry police force en- (c) INTERNATIONAL FINANCIAL INSTITUTIONS.— support for the activities described in paragraph gaged in a brutal crackdown against the ethnic The Secretary of the Treasury shall instruct the (3). Albanian population in Kosovo. United States executive directors of the inter- (3) ACTIVITIES SUPPORTED.—Activities that (2) As a result of the attack by Yugoslav and national financial institutions to oppose, and may be supported by assistance under para- Serbian forces against the Albanian population vote against, any extension by those institutions graph (2) include the following: of Kosovo, more than 10,000 individuals have of any financial assistance (including any tech- (A) Democracy building. been killed and 1,500,000 individuals were dis- nical assistance or grant) of any kind to the (B) The development of nongovernmental or- placed from their homes. Government of Yugoslavia. ganizations. (3) The majority of the individuals displaced (d) ORGANIZATION FOR SECURITY AND CO- (C) The development of independent media by the conflict in Kosovo was left homeless or OPERATION IN EUROPE.—The Secretary of State working within Serbia if possible, but, if that is was forced to find temporary shelter in Kosovo should instruct the United States Ambassador to not feasible, from locations in neighboring coun- or outside the country. the Organization for Security and Cooperation tries. (4) The activities of the Yugoslav armed forces in Europe (OSCE) to oppose and block any con- (D) The development of the rule of law, to in- and the police force of the Serbian Interior Min- sensus to allow the participation of Yugoslavia clude a strong, independent judiciary, the im- istry resulted in the widespread destruction of in the OSCE or any organization affiliated with partial administration of justice, and trans- agricultural crops, livestock, and property, as the OSCE. parency in political practices. well as the poisoning of wells and water sup- (e) UNITED NATIONS.—The Secretary of State (E) International exchanges and advanced plies, and the looting of humanitarian goods should instruct the United States Permanent professional training programs in skill areas provided by the international community. Representative to the United Nations— central to the development of civil society and a SEC. 202. SENSE OF CONGRESS. (1) to oppose and vote against any resolution market economy. It is the sense of Congress that— in the United Nations Security Council to admit

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00167 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.070 pfrm12 PsN: S04PT1 S14038 CONGRESSIONAL RECORD — SENATE November 4, 1999 Yugoslavia to the United Nations or any organi- economic value by any United States person to manufacture or service computers may be ex- zation affiliated with the United Nations; and the Government of Serbia, the Government of ported to or for use by the Government of Yugo- (2) to actively oppose and, if necessary, veto Yugoslavia, or any person or entity acting for or slavia or by the Government of Serbia, or by any any proposal to allow Yugoslavia to assume the on behalf of, or owned or controlled, directly or of the following entities of either government: membership of the former Socialist Federal Re- indirectly, by any of those governments, per- (1) The military. public of Yugoslavia in the United Nations Gen- sons, or entities. (2) The police. eral Assembly or any other organization affili- (d) PAYMENT OF EXPENSES.—All expenses inci- (3) The prison system. ated with the United Nations. dent to the blocking and maintenance of prop- (4) The national security agencies. (f) NATO.—The Secretary of State should in- erty blocked under subsection (a) shall be (b) STATUTORY CONSTRUCTION.—Nothing in struct the United States Permanent Representa- charged to the owners or operators of such prop- this section prevents the issuance of licenses to tive to the North Atlantic Council to oppose and erty, which expenses shall not be met from ensure the safety of civil aviation and safe oper- vote against the extension to Yugoslavia of blocked funds. ation of United States-origin commercial pas- membership or participation in the Partnership (e) PROHIBITIONS.—The following shall be pro- senger aircraft and to ensure the safety of for Peace program or any other organization af- hibited as of the date of enactment of this Act: ocean-going maritime traffic in international filiated with NATO. (1) Any transaction within the United States waters. (g) SOUTHEAST EUROPEAN COOPERATION INI- or by a United States person relating to any ves- SEC. 404. PROHIBITION ON LOANS AND INVEST- TIATIVE.—The Secretary of State should instruct sel in which a majority or controlling interest is MENT. the United States Representatives to the South- held by a person or entity in, or operating from, (a) UNITED STATES GOVERNMENT FINANCING.— east European Cooperation Initiative (SECI) to Serbia regardless of the flag under which the No loan, credit guarantee, insurance, financing, actively oppose the participation of Yugoslavia vessel sails. or other similar financial assistance may be ex- in SECI. (2) The exportation to Serbia or to any entity tended by any agency of the United States Gov- (h) SENSE OF CONGRESS.—It is the sense of operated from Serbia or owned and controlled ernment (including the Export-Import Bank and Congress that— by the Government of Serbia or the Government the Overseas Private Investment Corporation) to (1) the President should not restore full diplo- of Yugoslavia, directly or indirectly, of any the Government of Yugoslavia or the Govern- matic relations with Yugoslavia until the Presi- goods, technology, or services, either— ment of Serbia. dent has determined and so reported to the ap- (A) from the United States; (b) TRADE AND DEVELOPMENT AGENCY.—No propriate congressional committees that the (B) requiring the issuance of a license by a funds made available by law may be available Government of Yugoslavia has met the condi- Federal agency; or for activities of the Trade and Development tions described in subsection (b); and (C) involving the use of United States reg- Agency in or for Serbia. (2) the President should encourage all other istered vessels or aircraft, or any activity that (c) THIRD COUNTRY ACTION.—The Secretary of European countries to diminish their level of promotes or is intended to promote such expor- State is urged to encourage all other countries, diplomatic relations with Yugoslavia. tation. particularly European countries, to suspend (i) INTERNATIONAL FINANCIAL INSTITUTION DE- (3) Any dealing by a United States person in— any of their own programs providing support FINED.—In this section, the term ‘‘international (A) property originating in Serbia or exported similar to that described in subsection (a) or (b) financial institution’’ includes the International from Serbia; to the Government of Yugoslavia or the Govern- Monetary Fund, the International Bank for Re- (B) property intended for exportation from ment of Serbia, including by rescheduling reconstruction and Development, the Inter- Serbia to any country or exportation to Serbia payment of the indebtedness of either govern- national Development Association, the Inter- from any country; or ment under more favorable conditions. national Finance Corporation, the Multilateral (C) any activity of any kind that promotes or (d) PROHIBITION ON PRIVATE CREDITS.— Investment Guaranty Agency, and the Euro- is intended to promote such dealing. (1) IN GENERAL.—Except as provided in para- pean Bank for Reconstruction and Develop- (4) The performance by any United States per- graph (2), no national of the United States may ment. son of any contract, including a financing con- make or approve any loan or other extension of SEC. 302. INTERNATIONAL FINANCIAL INSTITU- tract, in support of an industrial, commercial, credit, directly or indirectly, to the Government TIONS NOT IN COMPLIANCE WITH public utility, or governmental project in Serbia. of Yugoslavia or to the Government of Serbia or ‘‘OUTER WALL’’ SANCTIONS. (f) EXCEPTIONS.—Nothing in this section shall to any corporation, partnership, or other orga- It is the sense of Congress that, if any inter- apply to— nization that is owned or controlled by either national financial institution (as defined in sec- (1) the transshipment through Serbia of com- the Government of Yugoslavia or the Govern- tion 301(i)) approves a loan or other financial modities and products originating outside Yugo- ment of Serbia. assistance to the Government of Yugoslavia over slavia and temporarily present in the territory (2) EXCEPTION.—Paragraph (1) shall not opposition of the United States, then the Sec- of Yugoslavia only for the purpose of such apply to a loan or extension of credit for any retary of the Treasury should withhold from transshipment; housing, education, or humanitarian benefit to payment of the United States share of any in- (2) assistance provided under section 102 or assist the victims of repression in Kosovo. crease in the paid-in capital of such institution section 203 of this Act; or SEC. 405. PROHIBITION OF MILITARY-TO-MILI- an amount equal to the amount of the loan or (3) those materials described in section TARY other assistance. 203(b)(3) of the International Emergency Eco- COOPERATION. TITLE IV—OTHER MEASURES AGAINST nomic Powers Act relating to informational ma- The United States Government (including any YUGOSLAVIA terials. agency or entity of the United States) shall not provide assistance under the Foreign Assistance SEC. 401. BLOCKING YUGOSLAVIA ASSETS IN THE SEC. 402. SUSPENSION OF ENTRY INTO THE UNITED STATES. UNITED STATES. Act of 1961 or the Arms Export Control Act (including the provision of Foreign Military Fi- (a) BLOCKING OF ASSETS.—All property and (a) PROHIBITION.—The President shall use his nancing under section 23 of the Arms Export interests in property, including all commercial, authority under section 212(f) of the Immigra- Control Act or international military education industrial, or public utility undertakings or en- tion and Nationality Act (8 U.S.C. 1182(f)) to and training under chapter 5 of part II of the tities, of or in the name of the Government of suspend the entry into the United States of any Foreign Assistance Act of 1961) or provide any Serbia or the Government of Yugoslavia that are alien who— defense articles or defense services under those in the United States, that hereafter come within (1) holds a position in the senior leadership of Acts, to the armed forces of the Government of the United States, or that are or hereafter come the Government of Yugoslavia or the Govern- Yugoslavia or of the Government of Serbia. within the possession or control of United States ment of Serbia; or persons, including their overseas branches, are (2) is a spouse, minor child, or agent of a per- SEC. 406. MULTILATERAL SANCTIONS. hereby blocked. son inadmissible under paragraph (1). It is the sense of Congress that the President (b) EXERCISE OF AUTHORITIES.—The Secretary (b) SENIOR LEADERSHIP DEFINED.—In sub- should continue to seek to coordinate with other of the Treasury, in consultation with the Sec- section (a)(1), the term ‘‘senior leadership’’— countries, particularly European countries, a retary of State, shall take such actions, includ- (1) includes— comprehensive, multilateral strategy to further ing the promulgation of regulations, orders, di- (A) the President, Prime Minister, Deputy the purposes of this Act, including, as appro- rectives, rulings, instructions, and licenses, and Prime Ministers, and government ministers of priate, encouraging other countries to take employ all powers granted to the President by Yugoslavia; measures similar to those described in this title. the International Emergency Economic Powers (B) the Governor of the National Bank of SEC. 407. EXEMPTIONS. Act, as may be necessary to carry out the pur- Yugoslavia; and (a) EXEMPTION FOR KOSOVO.—None of the re- pose of this section, including taking such steps (C) the President, Prime Minister, Deputy strictions imposed by this Act shall apply with as may be necessary to continue in effect the Prime Ministers, and government ministers of respect to Kosovo, including with respect to gov- measures contained in Executive Order No. the Republic of Serbia; and ernmental entities or administering authorities 13088 of June 9, 1998, and Executive Order No. (2) does not include the President, Prime Min- or the people of Kosovo. 13121 of May 1, 1999, and any rule, regulation, ister, Deputy Prime Ministers, and government (b) EXEMPTION FOR MONTENEGRO.—None of license, or order issued thereunder. ministers of the Republic of Montenegro. the restrictions imposed by this Act shall apply (c) PROHIBITED TRANSFERS.—Transfers pro- SEC. 403. PROHIBITION ON STRATEGIC EXPORTS with respect to Montenegro, including with re- hibited under subsection (b) shall include pay- TO YUGOSLAVIA. spect to governmental entities of Montenegro, ments or transfers of any property or any trans- (a) PROHIBITION.—No computers, computer unless the President determines and so certifies actions involving the transfer of anything of software, or goods or technology intended to to the appropriate congressional committees that

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00168 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.070 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14039 the leadership of the Government of Montenegro Yugoslavia, in their efforts to gather informa- SEC. 503. OWNERSHIP AND USE OF DIPLOMATIC is not committed to, or is not taking steps to pro- tion about alleged crimes against humanity in AND CONSULAR PROPERTIES. mote, democratic principles, the rule of law, or Kosovo under the jurisdiction of the Tribunal. (a) FINDINGS.—Congress finds the following: respect for internationally recognized human (5) The Tribunal has indicted President (1) The international judicial system, as cur- rights. Slobodan Milosevic for— rently structured, lacks fully effective remedies SEC. 408. WAIVER; TERMINATION OF MEASURES (A) crimes against humanity, specifically mur- for the wrongful confiscation of property and AGAINST YUGOSLAVIA. der, deportations, and persecutions; and for unjust enrichment from the use of wrong- (a) GENERAL WAIVER AUTHORITY.—Except as (B) violations of the laws and customs of war. fully confiscated property by governments and provided in subsection (b), the requirement to (b) POLICY.—It shall be the policy of the private entities at the expense of the rightful impose any measure under this Act may be United States to support fully and completely owners of the property. waived for successive periods not to exceed 12 the investigation of President Slobodan (2) Since the dissolution of the Socialist Fed- months each, and the President may provide as- Milosevic by the International Criminal Tri- eral Republic of Yugoslavia, the Government of sistance in furtherance of this Act notwith- bunal for the former Yugoslavia for genocide, Yugoslavia has exclusively used, and benefited standing any other provision of law, if the crimes against humanity, war crimes, and grave from the use of, properties located in the United President determines and so certifies to the ap- breaches of the Geneva Convention. States that were owned by the Socialist Federal propriate congressional committees in writing 15 (c) IN GENERAL.—Subject to subsection (b), it Republic of Yugoslavia. days in advance of the implementation of any is the sense of Congress that the United States (3) The Governments of Bosnia and such waiver that— Government should gather all information that Herzegovina, Croatia, the Former Yugoslav Re- (1) it is important to the national interest of the intelligence community (as defined in sec- public of Macedonia, and Slovenia have been the United States; or tion 3(4) of the National Security Act of 1947 (50 blocked by the Government of Yugoslavia from (2) significant progress has been made in U.S.C. 401a(4)) collects or has collected to sup- using, or benefiting from the use of, any prop- Yugoslavia in establishing a government based port an investigation of President Slobodan erty located in the United States that was pre- on democratic principles and the rule of law, Milosevic for genocide, crimes against human- viously owned by the Socialist Federal Republic and that respects internationally recognized ity, war crimes, and grave breaches of the Gene- of Yugoslavia. human rights. va Convention by the International Criminal (4) The continued occupation and use by offi- (b) EXCEPTION.—The President may implement Tribunal for the former Yugoslavia (ICTY) and cials of Yugoslavia of that property without the waiver under subsection (a) for successive that the Department of State should provide all prompt, adequate, and effective compensation periods not to exceed 3 months each without the appropriate information to the Office of the under the applicable principles of international 15 day advance notification under that Prosecutor of the ICTY under procedures estab- law to the Governments of Bosnia and subsection— lished by the Director of Central Intelligence Herzegovina, Croatia, the Former Yugoslav Re- (1) if the President determines that excep- that are necessary to ensure adequate protection public of Macedonia, and Slovenia are unjust tional circumstances require the implementation of intelligence sources and methods. and unreasonable. of such waiver; and (d) REPORT TO CONGRESS.—Not less than 180 (b) POLICY ON NEGOTIATIONS REGARDING (2) the President immediately notifies the ap- days after the date of enactment of this Act, PROPERTIES.—It is the policy of the United propriate congressional committees of his deter- and every 180 days thereafter, the President States to insist that the Government of Yugo- mination. shall submit a report, in classified form if nec- slavia has a responsibility to, and should, ac- (c) TERMINATION OF RESTRICTIONS.—The re- essary, to the appropriate congressional commit- tively and cooperatively engage in good faith strictions imposed by this Act shall be termi- tees that describes the information that was pro- negotiations with the Governments of Bosnia nated if the President determines and so cer- vided by the Department of State to the Office and Herzegovina, Croatia, the Former Yugoslav tifies to the appropriate congressional commit- of the Prosecutor of the International Criminal Republic of Macedonia, and Slovenia for resolu- tees that the Government of Yugoslavia is a gov- Tribunal for the former Yugoslavia for the pur- tion of the outstanding property issues resulting ernment that is committed to democratic prin- poses of subsection (c). from the dissolution of the Socialist Federal Re- ciples and the rule of law, and that respects SEC. 502. SENSE OF CONGRESS WITH RESPECT TO public of Yugoslavia, including the disposition internationally recognized human rights. ETHNIC HUNGARIANS OF of the following properties located in the United VOJVODINA. States: SEC. 409. STATUTORY CONSTRUCTION. (a) FINDINGS.—Congress finds that— (1) 2222 Decatur Street, NW, Washington, DC. (a) IN GENERAL.—None of the restrictions or (1) approximately 350,000 ethnic Hungarians (2) 2410 California Street, NW, Washington, prohibitions contained in this Act shall be con- reside in the province of Vojvodina, part of Ser- DC. strued to limit humanitarian assistance (includ- bia, in traditional settlements in existence for (3) 1907 Quincy Street, NW, Washington, DC. ing the provision of food and medicine), or the centuries; (4) 3600 Edmonds Street, NW, Washington, commercial export of agricultural commodities or (2) this community has taken no side in any DC. medicine and medical equipment, to Yugoslavia. of the Balkan conflicts since 1990, but has main- (5) 2221 R Street, NW, Washington, DC. (b) SPECIAL RULE.—Nothing in subsection (a) tained a consistent position of nonviolence, (6) 854 Fifth Avenue, New York, NY. shall be construed to permit the export of an ag- while seeking to protect its existence through (7) 730 Park Avenue, New York, NY. ricultural commodity or medicine that could the meager opportunities afforded under the ex- (c) SENSE OF CONGRESS ON RETURN OF PROP- contribute to the development of a chemical or isting political system; ERTIES.—It is the sense of Congress that, if the biological weapon. (3) the Serbian leadership deprived Vojvodina Government of Yugoslavia refuses to engage in TITLE V—MISCELLANEOUS PROVISIONS of its autonomous status at the same time as it good faith negotiations on the status of the SEC. 501. THE INTERNATIONAL CRIMINAL TRI- did the same to the province of Kosovo; properties listed in subsection (b), the President BUNAL FOR THE FORMER YUGO- (4) this population is subject to continuous should take steps to ensure that the interests of SLAVIA. harassment, intimidation, and threatening sug- the Governments of Bosnia and Herzegovina, (a) FINDINGS.—Congress finds the following: gestions that they leave the land of their ances- Croatia, the Former Yugoslav Republic of Mac- (1) United Nations Security Council Resolu- tors; and edonia, and Slovenia are protected in accord- tion 827, which was adopted May 25, 1993, es- (5) during the past 10 years this form of ethnic ance with international law. tablished the International Criminal Tribunal cleansing has already driven 50,000 ethnic Hun- SEC. 504. TRANSITION ASSISTANCE. for the former Yugoslavia to prosecute persons garians out of the province of Vojvodina. (a) SENSE OF CONGRESS.—It is the sense of responsible for serious violations of inter- (b) SENSE OF CONGRESS.—It is the sense of Congress that once the regime of President national humanitarian law committed in the Congress that the President should— Slobodan Milosevic has been replaced by a gov- territory of the former Yugoslavia since January (1) condemn harassment, threats, and intimi- ernment that is committed to democratic prin- 1, 1991. dation against any ethnic group in Yugoslavia ciples and the rule of law, and that respects (2) United Nations Security Council Resolu- as the usual precursor of violent ethnic cleans- internationally recognized human rights, the tion 827 requires full cooperation by all coun- ing; President of the United States should support tries with the Tribunal, including the obligation (2) express deep concern over the reports on the transition to democracy in Yugoslavia by of countries to comply with requests of the Tri- recent threats, intimidation, and even violent providing immediate and substantial assistance, bunal for assistance or orders. incidents against the ethnic Hungarian inhab- including facilitating its integration into inter- (3) The Government of Yugoslavia has dis- itants of the province of Vojvodina; national organizations. regarded its international obligations with re- (3) call on the Secretary of State to regularly (b) AUTHORIZATION OF ASSISTANCE.—The gard to the Tribunal, including its obligation to monitor the situation of the Hungarian ethnic President is authorized to furnish assistance to transfer or facilitate the transfer to the Tribunal group in Vojvodina; and Yugoslavia if he determines, and so certifies to of any person on the territory of Yugoslavia (4) call on the NATO allies of the United the appropriate congressional committees that who has been indicted for war crimes or other States, during any negotiation on the future the Government of Yugoslavia is committed to crimes against humanity under the jurisdiction status of Kosovo, also to pay substantial atten- democratic principles and the rule of law and of the Tribunal. tion to establishing satisfactory guarantees for respects internationally recognized human (4) The Government of Yugoslavia publicly re- the rights of the ethnic Hungarian community rights. jected the Tribunal’s jurisdiction over events in of Vojvodina, and of other ethnic minorities in (c) REPORT TO CONGRESS.— Kosovo and has impeded the investigation of the province, including consulting with elected (1) DEVELOPMENT OF PLAN.—The President representatives from the Tribunal, including de- leaders about their proposal for self-administra- shall develop a plan for providing assistance to nying those representatives visas for entry into tion. Yugoslavia in accordance with this section.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00169 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.070 pfrm12 PsN: S04PT1 S14040 CONGRESSIONAL RECORD — SENATE November 4, 1999 Such assistance would be provided at such time allies for this region, I am convinced that as long as Milosevic remains in as the President determines that the Govern- that until the Balkans is rid of the dic- power in Serbia and Yugoslavia, there ment of Yugoslavia is committed to democratic tatorial rule of Mr. Milosevic, we will is no chance for lasting peace and re- principles and the rule of law and respects be forced to confront crises that he construction in the Balkans. internationally recognized human rights. (2) STRATEGY.—The plan developed under manufactures well into the future. In short, Milosevic must be replaced paragraph (1) shall include a strategy for dis- There is but one hope for stability in by a democratic government. This is no tributing assistance to Yugoslavia under the the Balkans, and that is the removal of small order. Serbia is not exactly over- plan. Milosevic from power. flowing with genuine democrats, al- (3) DIPLOMATIC EFFORTS.—The President shall To achieve that objective is why I en- though there certainly are some. The take the necessary steps— courage the Senate to pass this legisla- problem is that many of them squabble (A) to seek to obtain the agreement of other countries and international financial institution today. The United States should among themselves, thereby wasting tions and other multilateral organizations to provide extensive support for demo- precious energy that should be devoted provide assistance to Yugoslavia after the Presi- cratic forces, including independent to unseating Milosevic. dent determines that the Government of Yugo- media, and non-governmental organi- Moreover, Milosevic runs an authori- slavia is committed to democratic principles, the zations in Serbia. Just as the United tarian state, ruthlessly suppressing rule of law, and that respects internationally States did during the days of the cold dissent, threatening his opponents— recognized human rights; and war, it is in our interests to identify even sometimes attempting to assas- (B) to work with such countries, institutions, and organizations to coordinate all such assist- and give aid to those forces in Serbia sinate them, purging the army and po- ance programs. that share our values and our goals. We lice, and cynically dominating the (4) COMMUNICATION OF PLAN.—The President should make clear that unless and electronic media so as to misinform shall take the necessary steps to communicate to until the government of Yugoslavia is the Serbian public. the people of Yugoslavia the plan for assistance based on democratic principles and the Clearly it is in the national interest developed under this section. rule of law and respects internationally of the United States to use every legal (5) REPORT.—Not later than 120 days after the recognized human rights, the United means to undercut Milosevic and to as- date of enactment of this Act, the President shall transmit to the appropriate congressional States will maintain the sanctions re- sist the democratic opposition in Ser- committees a report describing in detail the plan gime that we have in place today. bia. required to be developed by paragraph (1). But Mr. President, when the Serbian With that in mind, we have intro- Mr. HELMS. Mr. President, the Sen- people have a government in Belgrade duced S. 720, the ‘‘Serbia Democratiza- ate is today considering the Serbia De- based on these important principles— tion Act of 1999.’’ The following are the mocratization Act, which I introduced the government that they deserve— major provisions of the legislation. on March 25 with eleven other Sen- this legislation calls for substantial The Act supports the democratic op- ators, and which was approved by the support by the United States to assist position by authorizing one hundred Foreign Relations Committee on Au- their transition to democracy, includ- million dollars for fiscal years 2000 and gust 5. ing by helping Yugoslavia integrate 2001 for the purpose of promoting de- The purpose of the legislation is into international institutions. mocracy and civil society in Serbia and clear: to undermine and ultimately I am pleased that the Clinton admin- for assisting the Government of Monte- eradicate the murderous regime of the istration agrees with me on the impor- negro. It also authorizes increased Yugoslav President, Slobodan tance of assisting the democratic oppo- broadcasting to Yugoslavia by the Milosevic. sition in Serbia. Let me emphasize, Voice of America and by Radio Free Just one day before I introduced this however, that we need to act quickly. Europe/Radio Liberty. legislation, NATO began its air cam- We missed an opportunity to encourage The Act offers assistance to the vic- paign against Yugoslavia in response democratic change in Serbia three tims of Serbian oppression by author- to that country’s brutal treatment of years ago, when tens of thousands of izing the President to use authorities the ethnic Albanian population in Serbian citizens took to the streets, de- in the Foreign Assistance Act of 1961 to Kosovo. After NATO bombs started manding political change. We must not provide humanitarian assistance to in- falling, Yugoslav army, police, and lose another chance to help those in dividuals living in Kosovo and to refu- paramilitary forces controlled by Mr. Serbia who are trying to help them- gees currently residing in surrounding Milosevic slaughtered thousands more selves. countries. Kosovar Albanians. More than one mil- I urge my colleagues to support the The legislation codifies the so-called lion were forced to flee Kosovo to Serbia Democratization Act. ‘‘outer wall’’ of sanctions against neighboring counties. And hundreds of Mr. BIDEN. Mr. President, I rise Yugoslavia by multilateral organiza- thousands more Kosovars eluded Serb today to support, along with the senior tions, including international financial forces by hiding in the hills. Senator from North Carolina and sev- institutions. This brutality was conceived, di- eral other colleagues, the Serbia De- It also authorizes other measures rected, and carried out under the or- mocratization Act of 1999. against Yugoslavia, including blocking ders of Slobodan Milosevic. As you Mr. President, the last year has re- Yugoslavia’s assets in the United know, Mr. President, the International moved any lingering doubt that States; prohibiting the issuance of Criminal Tribunal for the former Yugo- Slobodan Milosevic, rather than being visas and admission to the United slavia indicted this madman as a war part of the solution of the problems in States; and prohibiting strategic ex- criminal for his activities in Kosovo. the Balkans, is the problem. Milosevic ports to Yugoslavia, loans and invest- And if I might add, I have no doubt of has started, and lost, four wars during ment, and military-to-military co- his culpability for the ethnic cleansing this decade: first with Slovenia, then operation. and mass murder in Bosnia during the with Croatia, then with Bosnia and The legislation also contains mis- war there. Herzegovina, and finally with NATO cellaneous provisions, including requir- Now that the NATO bombs have over Kosovo. I would not be surprised if ing cooperation by Yugoslavia with the stopped falling and there is hope for a he were soon to make Montenegro, International Criminal Tribunal for peaceful future for the people of with its democratic-reformist govern- the former Yugoslavia, and a sense of Kosovo, we must look to the next step. ment, the fifth target of his aggression. the Congress declaration on the owner- A ‘‘Marshall Plan’’ for the Balkans has Earlier this year, Milosevic was in- ship and use of diplomatic and consular been proposed. The European Union, dicted as a war criminal by the Inter- properties in the United States. the United States, and other allies national Tribunal at The Hague. As my Mr. President, a good deal has been have negotiated a so-called ‘‘Stability colleagues have heard me recount, I written in recent days about possibly Pact’’ for Southeastern Europe, de- told Milosevic to his face way back in easing the sanctions regime against signed to encourage cooperation be- 1993 in Belgrade that he was a war Yugoslavia out of concern for its peo- tween countries in the region and tar- criminal and should be tried at The ple. I do not believe that such a move get foreign assistance most effectively. Hague. So in one sense I am gratified would be in the interest either of the But no matter what kind of proposals that he finally has been officially Yugoslav people, or of the United put forth by the United States and our charged. On the other hand, I know States.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00170 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.070 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14041 A look at the precedent set in the With regard to direct, material help Sec. 403. Prohibition on strategic exports to Republika Srpska in Bosnia and to the anti-Milosevic forces, there are Yugoslavia. Herzegovina is instructive. After the many genuine democratic organiza- Sec. 404. Prohibition on loans and investment. Dayton Accords were signed in late tions at the grassroots level and in the Sec. 405. Prohibition of military-to-military 1995, the Congress passed legislation in media in Serbia who could make a cooperation. which no assistance could be given to measurable difference if they had the Sec. 406. Multilateral sanctions. the Republika Srpska, which was then means to spread their message. The Sec. 407. Exemptions. ruled by the war criminal Radovan United States Agency for International Sec. 408. Waiver; termination of measures against Yugoslavia. Karadzic and his gangster clique in Development is already modestly sup- Sec. 409. Statutory construction. Pale. Meanwhile the Muslim-Croat porting some of these organizations, TITLE V—MISCELLANEOUS PROVISIONS Federation could receive assistance. and it has drawn up a list of additional Sec. 501. The International Criminal Tri- Within two years a majority of the potential recipients. bunal for the former Yugo- population of the Republika Srpska In addition, through the SEED Act slavia. had observed the modest, but real eco- our State Department has recently Sec. 502. Sense of Congress with respect to nomic recovery in the Federation and made funds available through non-gov- ethnic Hungarians of realized the futility of sticking with ernmental organizations in Slovakia— Vojvodina. Karadzic and company. The result was, Sec. 503. Ownership and use of diplomatic a novel and promising approach. I be- and consular properties. first the presidency of Mrs. Biljana lieve that we can also utilize the demo- Sec. 504. Transition assistance. Plavsic, and later the reformist govern- cratic government in Romania to as- SEC. 2. DEFINITIONS. ment of Prime Minister Milorad Dodik, sist the democratic opposition in Ser- In this Act: which is still clinging to power in the bia. (1) APPROPRIATE CONGRESSIONAL COMMIT- new capital of Banja Luka. I believe the time is ripe for simulta- TEES.—The term ‘‘appropriate congressional I believe that if we keep up the pres- neously maintaining the pressure on committees’’ means the Committee on For- sure on the indicted war criminal eign Relations of the Senate and the Com- the criminal Milosevic regime, and for mittee on International Relations of the Milosevic, a similar process will even- increasing our material support to the House of Representatives. tually occur in Serbia. Conversely, if democratic opposition. (2) COMMERCIAL EXPORT.—The term ‘‘com- we were to loosen the legitimate sanc- The Serbia Democratication Act of mercial export’’ means the sale of a farm tions on Yugoslavia, it would con- 1999 does just that, and I urge my col- product or medicine by a United States sell- stitute a stunning triumph for leagues to vote for its adoption. er to a foreign buyer in exchange for cash Milosevic. I thank the Chair and yield the floor. payment on market terms without benefit of Mr. President, this week a delegation Mr. GRASSLEY. Mr. President, I ask concessionary financing, export subsidies, of leaders of the Alliance for Change, government or government-backed credits or unanimous consent that the committee other nonmarket financing arrangements. an umbrella organization representing substitute amendment be agreed to, (3) INTERNATIONAL CRIMINAL TRIBUNAL FOR more than forty democratic political the bill be read the third time and THE FORMER YUGOSLAVIA OR TRIBUNAL.—The parties and groups in Serbia, has been passed, the motion to reconsider be term ‘‘International Criminal Tribunal for visiting Washington. I met with this laid upon the table, and that any state- the former Yugoslavia’’ or the ‘‘Tribunal’’ group. They asked only that we lift ments relating to the bill be printed in means the International Tribunal for the Prosecution of Persons Responsible for Seri- sanctions against Serbia after a free the RECORD. and fair election results in Milosevic’s ous Violations of International Humani- The PRESIDING OFFICER. Without tarian Law Committed in the Territory of fall from power. They are confident of objection, it is so ordered. the Former Yugoslavia Since 1991, as estab- victory in such an election; I hope they The committee amendment in the lished by United Nations Security Council are right. nature of a substitute was agreed to. Resolution 827 of May 25, 1993. It is in this spirit, Mr. President, The bill (S. 720), as amended, was (4) YUGOSLAVIA.—The term ‘‘Yugoslavia’’ that we must hold out carrots to the read the third time and passed, as fol- means the so-called Federal Republic of potential democratic successors of lows: Yugoslavia (Serbia and Montenegro), and the term ‘‘Government of Yugoslavia’’ means Milosevic. Therefore, in a move to fa- S. 720 cilitate the transition to democracy, the central government of Yugoslavia. Be it enacted by the Senate and House of Rep- the Act authorizes the President to TITLE I—SUPPORT FOR THE DEMOCRATIC resentatives of the United States of America in OPPOSITION furnish assistance to Yugoslavia if he Congress assembled, determines and certifies to the appro- SEC. 101. FINDINGS AND POLICY. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) FINDINGS.—Congress finds the fol- priate Congressional committees that (a) SHORT TITLE.—This Act may be cited as lowing: the Government of Yugoslavia is ‘‘com- the ‘‘Serbia Democratization Act of 1999’’. (1) The President of Yugoslavia, Slobodan mitted to democratic principles, the (b) TABLE OF CONTENTS.—The table of con- Milosevic, has consistently engaged in un- rule of law, and is committed to re- tents of this Act is as follows: democratic methods of governing. spect internationally recognized Sec. 1. Short title; table of contents. (2) Yugoslavia has passed and implemented human rights.’’ Sec. 2. Definitions. a law strictly limiting freedom of the press The Act also contains a national in- TITLE I—SUPPORT FOR THE and has acted to intimidate and prevent DEMOCRATIC OPPOSITION independent media from operating inside terest waiver for the President. The Yugoslavia. President may also waive the Act’s Sec. 101. Findings and policy. (3) Although the Yugoslav and Serbian provisions if he certifies that ‘‘signifi- Sec. 102. Assistance to promote democracy constitutions provide for the right of citizens cant progress has been made in Yugo- and civil society in Yugoslavia. to change their government, citizens of Ser- slavia in establishing a government Sec. 103. Authority for radio and television bia in practice are prevented from exercising broadcasting. based on democratic principles and the that right by the Milosevic regime’s domina- rule of law, and that respects inter- TITLE II—ASSISTANCE TO THE VICTIMS tion of the mass media and manipulation of OF SERBIAN OPPRESSION nationally recognized human rights.’’ the electoral process. In the meantime, I approve of our Sec. 201. Findings. (4) The Yugoslav government has orches- Sec. 202. Sense of Congress. trated attacks on academics at institutes government’s political support of a Sec. 203. Assistance. and universities throughout the country in pilot program run by the European TITLE III—‘‘OUTER WALL’’ SANCTIONS an effort to prevent the dissemination of Union whereby emergency heating oil opinions that differ from official state propa- Sec. 301. ‘‘Outer wall’’ sanctions. shipments are made to two Serbian cit- ganda. Sec. 302. International financial institutions (5) The Yugoslav government prevents the ies that are governed by opponents of not in compliance with ‘‘outer formation of nonviolent, democratic opposi- Milosevic. If the project succeeds—that wall’’ sanctions. tion through restrictions on freedom of as- is, if the oil is delivered and Milosevic TITLE IV—OTHER MEASURES AGAINST does not succeed in taking credit for sembly and association. YUGOSLAVIA (6) The Yugoslav government uses control the shipments—the United States Sec. 401. Blocking Yugoslavia assets in the and intimidation to control the judiciary might join in financing the program, United States. and manipulates the country’s legal frame- which would be extended to other cit- Sec. 402. Suspension of entry into the United work to suit the regime’s immediate polit- ies. States. ical interests.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00171 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.067 pfrm12 PsN: S04PT1 S14042 CONGRESSIONAL RECORD — SENATE November 4, 1999 (7) The Government of Serbia and the Gov- ing September 30, 2001, to carry out this sub- Kosovo, should be the responsibility of the ernment of Yugoslavia, under the direction section. Government of Yugoslavia and the Govern- of President Milosevic, have obstructed the (B) AVAILABILITY OF FUNDS.—Amounts ap- ment of Serbia; efforts of the Government of Montenegro to propriated pursuant to subparagraph (A) are (2) under the direction of President pursue democratic and free-market policies. authorized to remain available until ex- Milosevic, neither the Government of Yugo- (8) At great risk, the Government of Mon- pended. slavia nor the Government of Serbia has pro- tenegro has withstood efforts by President (b) PROHIBITION ON ASSISTANCE TO GOVERN- vided the resources to assist innocent, civil- Milosevic to interfere with its government MENT OF SERBIA.—In carrying out subsection ian victims of oppression in Kosovo; and and supported the goals of the United States (a), the President should take all necessary (3) because neither the Government of in the conflict in Kosovo. steps to ensure that no funds or other assist- Yugoslavia nor the Government of Serbia (9) The people of Serbia who do not endorse ance is provided to the Government of Yugo- has fulfilled the responsibilities of a sov- the undemocratic actions of the Milosevic slavia or to the Government of Serbia, ex- ereign government toward the people in government should not be the target of criti- cept for purposes permitted under this Act. Kosovo, the international community offers cism that is rightly directed at the Milosevic (c) ASSISTANCE TO GOVERNMENT OF MONTE- the only recourse for humanitarian assist- regime. NEGRO.—In carrying out subsection (a), the ance to victims of oppression in Kosovo. (b) POLICY.— President may provide assistance to the Gov- SEC. 203. ASSISTANCE. (1) It is the policy of the United States to ernment of Montenegro, unless the President (a) AUTHORITY.—The President is author- encourage the development of a government determines, and so reports to the appropriate ized to furnish assistance under section 491 in Yugoslavia based on democratic principles congressional committees, that the leader- of the Foreign Assistance Act of 1961 (22 and the rule of law and that respects inter- ship of the Government of Montenegro is not U.S.C. 2292) and the Migration and Refugee nationally recognized human rights. committed to, or is not taking steps to pro- Assistance Act of 1962 (22 U.S.C. 2601 et seq.), (2) It is the sense of Congress that— mote, democratic principles, the rule of law, as appropriate, for— (A) the United States should actively sup- or respect for internationally recognized (1) relief, rehabilitation, and reconstruc- port the democratic opposition in Yugo- human rights. tion in Kosovo; and slavia, including political parties and inde- SEC. 103. AUTHORITY FOR RADIO AND TELE- (2) refugees and persons displaced by the pendent trade unions, to develop a legiti- VISION BROADCASTING. conflict in Kosovo. mate and viable alternative to the Milosevic (a) IN GENERAL.—The Broadcasting Board (b) PROHIBITION.—No assistance may be regime; of Governors shall further the open commu- provided under this section to any group (B) all United States Government officials, nication of information and ideas through that has been designated as a terrorist orga- including individuals from the private sector the increased use of radio and television nization under section 219 of the Immigra- acting on behalf of the United States Gov- broadcasting to Yugoslavia in both the tion and Nationality Act (8 U.S.C. 1189). ernment, should attempt to meet regularly Serbo-Croatian and Albanian languages. (c) USE OF ECONOMIC SUPPORT FUNDS.—Any with representatives of democratic opposi- (b) IMPLEMENTATION.—Radio and television funds that have been allocated under chapter tion organizations of Yugoslavia and mini- broadcasting under subsection (a) shall be 4 of part II of the Foreign Assistance Act of mize to the extent practicable any direct carried out by the Voice of America and, in 1961 (22 U.S.C. 2346 et seq.) for assistance de- contacts with government officials from addition, radio broadcasting under that subscribed in subsection (a) may be used in ac- Yugoslavia, particularly President Slobodan section shall be carried out by RFE/RL, In- cordance with the authority of that sub- Milosevic, who perpetuate the nondemo- corporated. Subsection (a) shall be carried section. cratic regime in Yugoslavia; and out in accordance with all the respective TITLE III—‘‘OUTER WALL’’ SANCTIONS (C) the United States should emphasize to Voice of America and RFE/RL, Incorporated, SEC. 301. ‘‘OUTER WALL’’ SANCTIONS. all political leaders in Yugoslavia the impor- standards to ensure that radio and television tance of respecting internationally recog- (a) APPLICATION OF MEASURES.—The sanc- broadcasting to Yugoslavia serves as a con- tions described in subsections (c) through (g) nized human rights for all individuals resid- sistently reliable and authoritative source of ing in Yugoslavia. shall apply with respect to Yugoslavia until accurate, objective, and comprehensive the President determines and certifies to the SEC. 102. ASSISTANCE TO PROMOTE DEMOCRACY news. AND CIVIL SOCIETY IN YUGOSLAVIA. appropriate congressional committees that (c) STATUTORY CONSTRUCTION.—The imple- the Government of Yugoslavia has made sig- (a) ASSISTANCE.— mentation of subsection (a) may not be con- nificant progress in meeting the conditions (1) PURPOSE OF ASSISTANCE.—The purpose strued as a replacement for the strength- of assistance under this subsection is to pro- described in subsection (b). ening of indigenous independent media (b) CONDITIONS.—The conditions referred to mote and strengthen institutions of demo- called for in section 102(a)(3)(C). To the max- in subsection (a) are the following: cratic government and the growth of an imum extent practicable, the two efforts (1) Agreement on a lasting settlement in independent civil society in Yugoslavia, in- (strengthening independent media and in- Kosovo. cluding ethnic tolerance and respect for creasing broadcasts into Serbia) shall be car- (2) Compliance with the General Frame- internationally recognized human rights. ried out in such a way that they mutually work Agreement for Peace in Bosnia and (2) AUTHORIZATION FOR ASSISTANCE.—To support each other. Herzegovina. carry out the purpose of paragraph (1), the (3) Implementation of internal democratic President is authorized to furnish assistance TITLE II—ASSISTANCE TO THE VICTIMS reform. and other support for the activities described OF SERBIAN OPPRESSION (4) Settlement of all succession issues with in paragraph (3). SEC. 201. FINDINGS. the other republics that emerged from the (3) ACTIVITIES SUPPORTED.—Activities that The Congress finds the following: break-up of the Socialist Federal Republic of may be supported by assistance under para- (1) Beginning in February 1998 and ending Yugoslavia. graph (2) include the following: in June 1999, the armed forces of Yugoslavia (5) Cooperation with the International (A) Democracy building. and the Serbian Interior Ministry police Criminal Tribunal for the former Yugo- (B) The development of nongovernmental force engaged in a brutal crackdown against slavia, including the transfer of all indicted organizations. the ethnic Albanian population in Kosovo. war criminals in Yugoslavia to the Hague. (C) The development of independent media (2) As a result of the attack by Yugoslav (c) INTERNATIONAL FINANCIAL INSTITU- working within Serbia if possible, but, if and Serbian forces against the Albanian pop- TIONS.—The Secretary of the Treasury shall ulation of Kosovo, more than 10,000 individ- that is not feasible, from locations in neigh- instruct the United States executive direc- uals have been killed and 1,500,000 individ- boring countries. tors of the international financial institu- uals were displaced from their homes. (D) The development of the rule of law, to tions to oppose, and vote against, any exten- (3) The majority of the individuals dis- include a strong, independent judiciary, the sion by those institutions of any financial placed by the conflict in Kosovo was left impartial administration of justice, and assistance (including any technical assist- homeless or was forced to find temporary transparency in political practices. ance or grant) of any kind to the Govern- shelter in Kosovo or outside the country. (E) International exchanges and advanced ment of Yugoslavia. professional training programs in skill areas (4) The activities of the Yugoslav armed (d) ORGANIZATION FOR SECURITY AND CO- central to the development of civil society forces and the police force of the Serbian In- OPERATION IN EUROPE.—The Secretary of and a market economy. terior Ministry resulted in the widespread State should instruct the United States Am- (F) The development of all elements of the destruction of agricultural crops, livestock, bassador to the Organization for Security democratic process, including political par- and property, as well as the poisoning of and Cooperation in Europe (OSCE) to oppose ties and the ability to administer free and wells and water supplies, and the looting of and block any consensus to allow the partici- fair elections. humanitarian goods provided by the inter- pation of Yugoslavia in the OSCE or any or- (G) The development of local governance. national community. ganization affiliated with the OSCE. (H) The development of a free-market SEC. 202. SENSE OF CONGRESS. (e) UNITED NATIONS.—The Secretary of economy. It is the sense of Congress that— State should instruct the United States Per- (4) AUTHORIZATION OF APPROPRIATIONS.— (1) humanitarian assistance to the victims manent Representative to the United (A) IN GENERAL.—There is authorized to be of the conflict in Kosovo, including refugees Nations— appropriated to the President $100,000,000 for and internally displaced persons, and all as- (1) to oppose and vote against any resolu- the period beginning October 1, 1999, and end- sistance to rebuild damaged property in tion in the United Nations Security Council

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00172 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.074 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14043 to admit Yugoslavia to the United Nations 13121 of May 1, 1999, and any rule, regulation, (C) the President, Prime Minister, Deputy or any organization affiliated with the license, or order issued thereunder. Prime Ministers, and government ministers United Nations; and (c) PROHIBITED TRANSFERS.—Transfers proof the Republic of Serbia; and (2) to actively oppose and, if necessary, hibited under subsection (b) shall include (2) does not include the President, Prime veto any proposal to allow Yugoslavia to as- payments or transfers of any property or any Minister, Deputy Prime Ministers, and gov- sume the membership of the former Socialist transactions involving the transfer of any- ernment ministers of the Republic of Monte- Federal Republic of Yugoslavia in the United thing of economic value by any United negro. Nations General Assembly or any other orga- States person to the Government of Serbia, SEC. 403. PROHIBITION ON STRATEGIC EXPORTS nization affiliated with the United Nations. the Government of Yugoslavia, or any person TO YUGOSLAVIA. (f) NATO.—The Secretary of State should or entity acting for or on behalf of, or owned (a) PROHIBITION.—No computers, computer instruct the United States Permanent Rep- or controlled, directly or indirectly, by any software, or goods or technology intended to resentative to the North Atlantic Council to of those governments, persons, or entities. manufacture or service computers may be oppose and vote against the extension to (d) PAYMENT OF EXPENSES.—All expenses exported to or for use by the Government of Yugoslavia of membership or participation incident to the blocking and maintenance of Yugoslavia or by the Government of Serbia, in the Partnership for Peace program or any property blocked under subsection (a) shall or by any of the following entities of either other organization affiliated with NATO. be charged to the owners or operators of government: (g) SOUTHEAST EUROPEAN COOPERATION INI- such property, which expenses shall not be (1) The military. TIATIVE.—The Secretary of State should in- met from blocked funds. (2) The police. struct the United States Representatives to (e) PROHIBITIONS.—The following shall be (3) The prison system. the Southeast European Cooperation Initia- prohibited as of the date of enactment of this (4) The national security agencies. tive (SECI) to actively oppose the participa- Act: (b) STATUTORY CONSTRUCTION.—Nothing in tion of Yugoslavia in SECI. (1) Any transaction within the United this section prevents the issuance of licenses (h) SENSE OF CONGRESS.—It is the sense of States or by a United States person relating to ensure the safety of civil aviation and safe Congress that— to any vessel in which a majority or control- operation of United States-origin commer- (1) the President should not restore full ling interest is held by a person or entity in, cial passenger aircraft and to ensure the diplomatic relations with Yugoslavia until or operating from, Serbia regardless of the safety of ocean-going maritime traffic in the President has determined and so re- flag under which the vessel sails. international waters. ported to the appropriate congressional com- (2) The exportation to Serbia or to any en- SEC. 404. PROHIBITION ON LOANS AND INVEST- mittees that the Government of Yugoslavia tity operated from Serbia or owned and con- MENT. has met the conditions described in sub- trolled by the Government of Serbia or the (a) UNITED STATES GOVERNMENT FINANC- section (b); and Government of Yugoslavia, directly or indi- ING.—No loan, credit guarantee, insurance, (2) the President should encourage all rectly, of any goods, technology, or services, financing, or other similar financial assist- other European countries to diminish their either— ance may be extended by any agency of the level of diplomatic relations with Yugo- (A) from the United States; United States Government (including the slavia. (B) requiring the issuance of a license by a Export-Import Bank and the Overseas Pri- (i) INTERNATIONAL FINANCIAL INSTITUTION Federal agency; or vate Investment Corporation) to the Govern- DEFINED.—In this section, the term ‘‘inter- (C) involving the use of United States reg- ment of Yugoslavia or the Government of national financial institution’’ includes the istered vessels or aircraft, or any activity Serbia. International Monetary Fund, the Inter- that promotes or is intended to promote (b) TRADE AND DEVELOPMENT AGENCY.—No national Bank for Reconstruction and Devel- such exportation. funds made available by law may be avail- opment, the International Development As- (3) Any dealing by a United States person able for activities of the Trade and Develop- sociation, the International Finance Cor- in— ment Agency in or for Serbia. poration, the Multilateral Investment Guar- (A) property originating in Serbia or ex- (c) THIRD COUNTRY ACTION.—The Secretary anty Agency, and the European Bank for Re- ported from Serbia; of State is urged to encourage all other construction and Development. (B) property intended for exportation from countries, particularly European countries, SEC. 302. INTERNATIONAL FINANCIAL INSTITU- Serbia to any country or exportation to Ser- to suspend any of their own programs pro- TIONS NOT IN COMPLIANCE WITH bia from any country; or viding support similar to that described in ‘‘OUTER WALL’’ SANCTIONS. (C) any activity of any kind that promotes subsection (a) or (b) to the Government of It is the sense of Congress that, if any or is intended to promote such dealing. Yugoslavia or the Government of Serbia, in- international financial institution (as de- (4) The performance by any United States cluding by rescheduling repayment of the in- fined in section 301(i)) approves a loan or person of any contract, including a financing debtedness of either government under more other financial assistance to the Government contract, in support of an industrial, com- favorable conditions. of Yugoslavia over opposition of the United mercial, public utility, or governmental (d) PROHIBITION ON PRIVATE CREDITS.— States, then the Secretary of the Treasury project in Serbia. (1) IN GENERAL.—Except as provided in should withhold from payment of the United (f) EXCEPTIONS.—Nothing in this section paragraph (2), no national of the United States share of any increase in the paid-in shall apply to— States may make or approve any loan or capital of such institution an amount equal (1) the transshipment through Serbia of other extension of credit, directly or indi- to the amount of the loan or other assist- commodities and products originating out- rectly, to the Government of Yugoslavia or ance. side Yugoslavia and temporarily present in to the Government of Serbia or to any cor- TITLE IV—OTHER MEASURES AGAINST the territory of Yugoslavia only for the pur- poration, partnership, or other organization YUGOSLAVIA pose of such transshipment; that is owned or controlled by either the SEC. 401. BLOCKING YUGOSLAVIA ASSETS IN THE (2) assistance provided under section 102 or Government of Yugoslavia or the Govern- UNITED STATES. section 203 of this Act; or ment of Serbia. (a) BLOCKING OF ASSETS.—All property and (3) those materials described in section (2) EXCEPTION.—Paragraph (1) shall not interests in property, including all commer- 203(b)(3) of the International Emergency apply to a loan or extension of credit for any cial, industrial, or public utility under- Economic Powers Act relating to informa- housing, education, or humanitarian benefit takings or entities, of or in the name of the tional materials. to assist the victims of repression in Kosovo. Government of Serbia or the Government of SEC. 402. SUSPENSION OF ENTRY INTO THE SEC. 405. PROHIBITION OF MILITARY-TO-MILI- Yugoslavia that are in the United States, UNITED STATES. TARY COOPERATION. that hereafter come within the United (a) PROHIBITION.—The President shall use The United States Government (including States, or that are or hereafter come within his authority under section 212(f) of the Im- any agency or entity of the United States) the possession or control of United States migration and Nationality Act (8 U.S.C. shall not provide assistance under the For- persons, including their overseas branches, 1182(f)) to suspend the entry into the United eign Assistance Act of 1961 or the Arms Ex- are hereby blocked. States of any alien who— port Control Act (including the provision of (b) EXERCISE OF AUTHORITIES.—The Sec- (1) holds a position in the senior leadership Foreign Military Financing under section 23 retary of the Treasury, in consultation with of the Government of Yugoslavia or the Gov- of the Arms Export Control Act or inter- the Secretary of State, shall take such ac- ernment of Serbia; or national military education and training tions, including the promulgation of regula- (2) is a spouse, minor child, or agent of a under chapter 5 of part II of the Foreign As- tions, orders, directives, rulings, instruc- person inadmissible under paragraph (1). sistance Act of 1961) or provide any defense tions, and licenses, and employ all powers (b) SENIOR LEADERSHIP DEFINED.—In sub- articles or defense services under those Acts, granted to the President by the Inter- section (a)(1), the term ‘‘senior leadership’’— to the armed forces of the Government of national Emergency Economic Powers Act, (1) includes— Yugoslavia or of the Government of Serbia. as may be necessary to carry out the purpose (A) the President, Prime Minister, Deputy SEC. 406. MULTILATERAL SANCTIONS. of this section, including taking such steps Prime Ministers, and government ministers It is the sense of Congress that the Presi- as may be necessary to continue in effect the of Yugoslavia; dent should continue to seek to coordinate measures contained in Executive Order No. (B) the Governor of the National Bank of with other countries, particularly European 13088 of June 9, 1998, and Executive Order No. Yugoslavia; and countries, a comprehensive, multilateral

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00173 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.074 pfrm12 PsN: S04PT1 S14044 CONGRESSIONAL RECORD — SENATE November 4, 1999 strategy to further the purposes of this Act, (2) United Nations Security Council Reso- (5) during the past 10 years this form of including, as appropriate, encouraging other lution 827 requires full cooperation by all ethnic cleansing has already driven 50,000 countries to take measures similar to those countries with the Tribunal, including the ethnic Hungarians out of the province of described in this title. obligation of countries to comply with re- Vojvodina. SEC. 407. EXEMPTIONS. quests of the Tribunal for assistance or or- (b) SENSE OF CONGRESS.—It is the sense of (a) EXEMPTION FOR KOSOVO.—None of the ders. Congress that the President should— restrictions imposed by this Act shall apply (3) The Government of Yugoslavia has dis- (1) condemn harassment, threats, and in- with respect to Kosovo, including with re- regarded its international obligations with timidation against any ethnic group in spect to governmental entities or admin- regard to the Tribunal, including its obliga- Yugoslavia as the usual precursor of violent istering authorities or the people of Kosovo. tion to transfer or facilitate the transfer to ethnic cleansing; (b) EXEMPTION FOR MONTENEGRO.—None of the Tribunal of any person on the territory (2) express deep concern over the reports the restrictions imposed by this Act shall of Yugoslavia who has been indicted for war on recent threats, intimidation, and even apply with respect to Montenegro, including crimes or other crimes against humanity violent incidents against the ethnic Hun- with respect to governmental entities of under the jurisdiction of the Tribunal. garian inhabitants of the province of Montenegro, unless the President determines (4) The Government of Yugoslavia publicly Vojvodina; and so certifies to the appropriate congres- rejected the Tribunal’s jurisdiction over (3) call on the Secretary of State to regu- sional committees that the leadership of the events in Kosovo and has impeded the inves- larly monitor the situation of the Hungarian Government of Montenegro is not committed tigation of representatives from the Tri- ethnic group in Vojvodina; and to, or is not taking steps to promote, demo- bunal, including denying those representa- (4) call on the NATO allies of the United cratic principles, the rule of law, or respect tives visas for entry into Yugoslavia, in their States, during any negotiation on the future for internationally recognized human rights. efforts to gather information about alleged status of Kosovo, also to pay substantial at- SEC. 408. WAIVER; TERMINATION OF MEASURES crimes against humanity in Kosovo under tention to establishing satisfactory guaran- AGAINST YUGOSLAVIA. the jurisdiction of the Tribunal. tees for the rights of the ethnic Hungarian (a) GENERAL WAIVER AUTHORITY.—Except (5) The Tribunal has indicted President community of Vojvodina, and of other ethnic as provided in subsection (b), the require- Slobodan Milosevic for— minorities in the province, including con- ment to impose any measure under this Act (A) crimes against humanity, specifically sulting with elected leaders about their pro- may be waived for successive periods not to murder, deportations, and persecutions; and posal for self-administration. exceed 12 months each, and the President (B) violations of the laws and customs of may provide assistance in furtherance of this SEC. 503. OWNERSHIP AND USE OF DIPLOMATIC war. AND CONSULAR PROPERTIES. Act notwithstanding any other provision of (b) POLICY.—It shall be the policy of the law, if the President determines and so cer- (a) FINDINGS.—Congress finds the fol- United States to support fully and com- lowing: tifies to the appropriate congressional completely the investigation of President mittees in writing 15 days in advance of the (1) The international judicial system, as Slobodan Milosevic by the International currently structured, lacks fully effective implementation of any such waiver that— Criminal Tribunal for the former Yugoslavia (1) it is important to the national interest remedies for the wrongful confiscation of for genocide, crimes against humanity, war property and for unjust enrichment from the of the United States; or crimes, and grave breaches of the Geneva (2) significant progress has been made in use of wrongfully confiscated property by Convention. governments and private entities at the ex- Yugoslavia in establishing a government (c) IN GENERAL.—Subject to subsection (b), pense of the rightful owners of the property. based on democratic principles and the rule it is the sense of Congress that the United (2) Since the dissolution of the Socialist of law, and that respects internationally rec- States Government should gather all infor- Federal Republic of Yugoslavia, the Govern- ognized human rights. mation that the intelligence community (as ment of Yugoslavia has exclusively used, and (b) EXCEPTION.—The President may imple- defined in section 3(4) of the National Secu- benefited from the use of, properties located ment the waiver under subsection (a) for suc- rity Act of 1947 (50 U.S.C. 401a(4)) collects or cessive periods not to exceed 3 months each has collected to support an investigation of in the United States that were owned by the without the 15 day advance notification President Slobodan Milosevic for genocide, Socialist Federal Republic of Yugoslavia. under that subsection — crimes against humanity, war crimes, and (3) The Governments of Bosnia and (1) if the President determines that excep- grave breaches of the Geneva Convention by Herzegovina, Croatia, the Former Yugoslav tional circumstances require the implemen- the International Criminal Tribunal for the Republic of Macedonia, and Slovenia have tation of such waiver; and former Yugoslavia (ICTY) and that the De- been blocked by the Government of Yugo- (2) the President immediately notifies the partment of State should provide all appro- slavia from using, or benefiting from the use appropriate congressional committees of his priate information to the Office of the Pros- of, any property located in the United States determination. ecutor of the ICTY under procedures estab- that was previously owned by the Socialist (c) TERMINATION OF RESTRICTIONS.—The re- lished by the Director of Central Intelligence Federal Republic of Yugoslavia. strictions imposed by this Act shall be ter- that are necessary to ensure adequate pro- (4) The continued occupation and use by of- minated if the President determines and so tection of intelligence sources and methods. ficials of Yugoslavia of that property with- certifies to the appropriate congressional (d) REPORT TO CONGRESS.—Not less than 180 out prompt, adequate, and effective com- committees that the Government of Yugo- days after the date of enactment of this Act, pensation under the applicable principles of slavia is a government that is committed to and every 180 days thereafter, the President international law to the Governments of democratic principles and the rule of law, shall submit a report, in classified form if Bosnia and Herzegovina, Croatia, the Former and that respects internationally recognized necessary, to the appropriate congressional Yugoslav Republic of Macedonia, and Slo- human rights. committees that describes the information venia are unjust and unreasonable. SEC. 409. STATUTORY CONSTRUCTION. that was provided by the Department of (b) POLICY ON NEGOTIATIONS REGARDING (a) IN GENERAL.—None of the restrictions State to the Office of the Prosecutor of the PROPERTIES.—It is the policy of the United or prohibitions contained in this Act shall be International Criminal Tribunal for the States to insist that the Government of construed to limit humanitarian assistance former Yugoslavia for the purposes of sub- Yugoslavia has a responsibility to, and (including the provision of food and medi- section (c). should, actively and cooperatively engage in cine), or the commercial export of agricul- SEC. 502. SENSE OF CONGRESS WITH RESPECT good faith negotiations with the Govern- tural commodities or medicine and medical TO ETHNIC HUNGARIANS OF ments of Bosnia and Herzegovina, Croatia, equipment, to Yugoslavia. VOJVODINA. the Former Yugoslav Republic of Macedonia, (b) SPECIAL RULE.—Nothing in subsection (a) FINDINGS.—Congress finds that— and Slovenia for resolution of the out- (a) shall be construed to permit the export of (1) approximately 350,000 ethnic Hungar- standing property issues resulting from the an agricultural commodity or medicine that ians reside in the province of Vojvodina, part dissolution of the Socialist Federal Republic could contribute to the development of a of Serbia, in traditional settlements in exist- of Yugoslavia, including the disposition of chemical or biological weapon. ence for centuries; the following properties located in the TITLE V—MISCELLANEOUS PROVISIONS (2) this community has taken no side in United States: SEC. 501. THE INTERNATIONAL CRIMINAL TRI- any of the Balkan conflicts since 1990, but (1) 2222 Decatur Street, NW, Washington, BUNAL FOR THE FORMER YUGO- has maintained a consistent position of non- DC. SLAVIA. violence, while seeking to protect its exist- (2) 2410 California Street, NW, Washington, (a) FINDINGS.—Congress finds the fol- ence through the meager opportunities af- DC. lowing: forded under the existing political system; (3) 1907 Quincy Street, NW, Washington, (1) United Nations Security Council Reso- (3) the Serbian leadership deprived DC. lution 827, which was adopted May 25, 1993, Vojvodina of its autonomous status at the (4) 3600 Edmonds Street, NW, Washington, established the International Criminal Tri- same time as it did the same to the province DC. bunal for the former Yugoslavia to prosecute of Kosovo; (5) 2221 R Street, NW, Washington, DC. persons responsible for serious violations of (4) this population is subject to continuous (6) 854 Fifth Avenue, New York, NY. international humanitarian law committed harassment, intimidation, and threatening (7) 730 Park Avenue, New York, NY. in the territory of the former Yugoslavia suggestions that they leave the land of their (c) SENSE OF CONGRESS ON RETURN OF PROP- since January 1, 1991. ancestors; and ERTIES.—It is the sense of Congress that, if

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00174 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.074 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14045 the Government of Yugoslavia refuses to en- file all required paperwork electronically (3) to access information concerning farm gage in good faith negotiations on the status with the Department and to have access to programs, quarterly trade, economic, and of the properties listed in subsection (b), the public information on farm programs, quar- production reports, and other similar pro- President should take steps to ensure that terly trade, economic, and production reduction agriculture information that is read- the interests of the Governments of Bosnia ports, and other similar information. ily available to the public in paper form. and Herzegovina, Croatia, the Former Yugo- There being no objection, the Senate SEC. 4. FEDERAL CROP INSURANCE CORPORA- slav Republic of Macedonia, and Slovenia are proceeded to consider the bill. TION AND RISK MANAGEMENT protected in accordance with international AGENCY. law. AMENDMENT NO. 2513 (a) IN GENERAL.—Not later than December 1, 2000, the Federal Crop Insurance Corpora- SEC. 504. TRANSITION ASSISTANCE. (Purpose: To provide a complete substitute) Mr. GRASSLEY. Mr. President, there tion and the Risk Management Agency shall (a) SENSE OF CONGRESS.—It is the sense of submit to the Committee on Agriculture of Congress that once the regime of President is a substitute amendment at the desk the House of Representatives and the Com- Slobodan Milosevic has been replaced by a submitted by Senator FITZGERALD. mittee on Agriculture, Nutrition, and For- government that is committed to democratic The PRESIDING OFFICER. The estry of the Senate a plan, that is consistent principles and the rule of law, and that re- clerk will report. with this Act, to allow agricultural prospects internationally recognized human The legislative clerk read as follows: ducers to— rights, the President of the United States (1) obtain, over the Internet, from ap- The Senator from Iowa (Mr. GRASSLEY), should support the transition to democracy proved insurance providers all forms and in Yugoslavia by providing immediate and FOR MR. FITZGERALD, proposes an amendment numbered 2513. other information concerning the program substantial assistance, including facilitating under the jurisdiction of the Corporation and its integration into international organiza- Strike all after the enacting clause and insert the following: Agency in which the agricultural producer is tions. a participant; and (b) AUTHORIZATION OF ASSISTANCE.—The SECTION 1. SHORT TITLE. (2) file electronically all paperwork re- President is authorized to furnish assistance This Act may be cited as the ‘‘Freedom to quired for participation in the program. to Yugoslavia if he determines, and so cer- E-File Act’’. (b) ADMINISTRATION.—The plan shall— tifies to the appropriate congressional com- SEC. 2. ELECTRONIC FILING AND RETRIEVAL. (1) conform to sections 2(c) and 3(b); and mittees that the Government of Yugoslavia (a) IN GENERAL.—Not later than 180 days (2) prescribe— is committed to democratic principles and after the date of enactment of this Act, in (A) the location and type of data to be the rule of law and respects internationally accordance with subsection (c), the Sec- made available to agricultural producers; recognized human rights. retary of Agriculture (referred to in this Act (B) the location where agricultural pro- (c) REPORT TO CONGRESS.— as the ‘‘Secretary’’) shall, to the maximum ducers can electronically file their paper- (1) DEVELOPMENT OF PLAN.—The President extent practicable, establish an Internet- work; and shall develop a plan for providing assistance based system that enables agricultural pro- (C) the responsibilities of the applicable to Yugoslavia in accordance with this sec- ducers to access all forms of the agencies of parties, including agricultural producers, the tion. Such assistance would be provided at the Department of Agriculture specified in Risk Management Agency, the Federal Crop such time as the President determines that subsection (b). Insurance Corporation, approved insurance the Government of Yugoslavia is committed (b) APPLICABILITY.—The agencies referred providers, crop insurance agents, and bro- to democratic principles and the rule of law to in subsection (a) are— kers. and respects internationally recognized (1) the Farm Service Agency; (c) IMPLEMENTATION.—Not later than De- human rights. (2) the Rural Utilities Service; cember 1, 2001, the Federal Crop Insurance (2) STRATEGY.—The plan developed under (3) the Rural Housing Service; Corporation and the Risk Management Agen- paragraph (1) shall include a strategy for dis- (4) the Rural Business-Cooperative Service; cy shall complete implementation of the tributing assistance to Yugoslavia under the and plan submitted under subsection (a). plan. (5) the Natural Resources Conservation SEC. 5. CONFIDENTIALITY. (3) DIPLOMATIC EFFORTS.—The President Service. In carrying out this Act, the Secretary— shall take the necessary steps— (c) IMPLEMENTATION.—In carrying out sub- (1) may not make available any informa- (A) to seek to obtain the agreement of section (a), the Secretary shall— tion over the Internet that would otherwise other countries and international financial (1) provide a method by which agricultural not be available for release under section 552 institutions and other multilateral organiza- producers may— or 552a of title 5, United States Code; and tions to provide assistance to Yugoslavia (A) download forms from the Internet; and (2) shall ensure, to the maximum extent after the President determines that the Gov- (B) submit completed forms via electronic practicable, that the confidentiality of per- ernment of Yugoslavia is committed to facsimile, mail, or similar means; sons is maintained. democratic principles, the rule of law, and (2) redesign forms of the agencies of the Mr. FITZGERALD. Mr. President, I that respects internationally recognized Department of Agriculture by incorporating rise today to urge passage of S. 777, the human rights; and into the forms user-friendly formats and self- Freedom to E-File Act. I appreciate (B) to work with such countries, institu- help guidance materials. Agriculture Secretary Glickman, Agri- (d) PROGRESS REPORTS.—Not later than 180 tions, and organizations to coordinate all culture Committee Chairman LUGAR such assistance programs. days after the date of enactment of this Act, and my other Colleagues on the Agri- (4) COMMUNICATION OF PLAN.—The Presi- the Secretary shall submit to Congress a re- dent shall take the necessary steps to com- port that describes the progress made toward culture Committee for their hard work municate to the people of Yugoslavia the implementing the Internet-based system rein helping craft the consensus sub- plan for assistance developed under this sec- quired under this section. stitute amendment being offered on the tion. SEC. 3. ACCESSING INFORMATION AND FILING floor today. This legislation will (5) REPORT.—Not later than 120 days after OVER THE INTERNET. streamline the process our farmers fol- the date of enactment of this Act, the Presi- (a) IN GENERAL.—Not later than 2 years low when filing paper work with the dent shall transmit to the appropriate con- after the date of enactment of this Act, in Department of Agriculture (USDA). gressional committees a report describing in accordance with subsection (b), the Sec- Currently, when farmers are required detail the plan required to be developed by retary shall expand implementation of the to fill out USDA paper work, they are paragraph (1). Internet-based system established under sec- required to travel to their local USDA f tion 2 by enabling agricultural producers to access and file all forms and, at the option of county offices, complete the paper FREEDOM TO E-FILE ACT the Secretary, selected records and informa- work, wait in long lines and file these tion of the agencies of the Department speci- documents in paper form. This process Mr. GRASSLEY. Mr. President, I ask fied in section 2(b). is very inefficient and time consuming. unanimous consent that the Agri- (b) IMPLEMENTATION.—In carrying out sub- This bill simply requires USDA to de- culture Committee be discharged from section (a), the Secretary shall ensure that velop a system for farmers to access further consideration of S. 777, and the an agricultural producer is able— and file this information over the Senate then proceed to its immediate (1) to file electronically or in paper form, internet. The ‘‘Freedom to E-file Act’’ consideration. at the option of the agricultural producer, simply makes good common sense. As The PRESIDING OFFICER. Without all forms required by agencies of the Depart- our society has become more techno- objection, it is so ordered. ment specified in section 2(b); logically advanced so have our farmers. (2) to file electronically or in paper form, The clerk will report the bill by title. at the option of the agricultural producer, In fact, a 1998 Novartis survey found The legislative clerk read as follows: all documentation required by agencies of that over 72 percent of all farmers with A bill (S. 777) to require the Department of the Department specified in section 2(b) and 500 acres or more had personal com- Agriculture to establish an electronic filing determined appropriate by the Secretary; puters. Overall, over fifty percent of all and retrieval system to enable the public to and farmers surveyed had computers.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00175 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.074 pfrm12 PsN: S04PT1 S14046 CONGRESSIONAL RECORD — SENATE November 4, 1999 According to a Farm Journal study accordance with subsection (c), the Sec- (B) the location where agricultural pro- entitled, ‘‘AgWeb 1999: Internet and e- retary of Agriculture (referred to in this Act ducers can electronically file their paper- Commerce in Production Agriculture,’’ as the ‘‘Secretary’’) shall, to the maximum work; and farmer internet usage will have more extent practicable, establish an Internet- (C) the responsibilities of the applicable based system that enables agricultural pro- parties, including agricultural producers, the than doubled by the end of 1999 com- ducers to access all forms of the agencies of Risk Management Agency, the Federal Crop pared to 1997. The author concluded, the Department of Agriculture specified in Insurance Corporation, approved insurance ‘‘the computer and the internet have subsection (b). providers, crop insurance agents, and bro- become just as important to farmers as (b) APPLICABILITY.—The agencies referred kers. the tractor and good weather.’’ The bill to in subsection (a) are— (c) IMPLEMENTATION.—Not later than De- we pass today clearly recognizes this (1) the Farm Service Agency; cember 1, 2001, the Federal Crop Insurance (2) the Rural Utilities Service; Corporation and the Risk Management Agen- reality. The study also notes that over (3) the Rural Housing Service; two-thirds of all commercial farmers cy shall complete implementation of the (4) the Rural Business-Cooperative Service; plan submitted under subsection (a). own at least one computer and these and SEC. 5. CONFIDENTIALITY. farmers spend at least two hours per (5) the Natural Resources Conservation In carrying out this Act, the Secretary— week on average utilizing the internet Service. (1) may not make available any informa- (c) IMPLEMENTATION.—In carrying out sub- for agricultural purposes. tion over the Internet that would otherwise section (a), the Secretary shall— Our agriculturists use computers not not be available for release under section 552 (1) provide a method by which agricultural or 552a of title 5, United States Code; and only for financial management and producers may— (2) shall ensure, to the maximum extent market information but for sophisti- (A) download forms from the Internet; and practicable, that the confidentiality of per- cated precision agriculture manage- (B) submit completed forms via electronic ment systems. These sophisticated facsimile, mail, or similar means; sons is maintained. small business owners could easily file (2) redesign forms of the agencies of the f necessary farm program paperwork Department of Agriculture by incorporating TO AMEND THE IMMIGRATION AND from their homes and offices if only into the forms user-friendly formats and self- NATIONALITY ACT this option was available. help guidance materials. (d) PROGRESS REPORTS.—Not later than 180 Mr. GRASSLEY. Mr. President, I ask Farmers are often frustrated with days after the date of enactment of this Act, unanimous consent that the Senate the long lines at county USDA offices, the Secretary shall submit to Congress a re- now proceed to consideration of Cal- especially during their most hectic port that describes the progress made toward endar No. 340, S. 1753. implementing the Internet-based system re- times such as harvest season. Our na- The PRESIDING OFFICER. The tion’s farmers are clearly overburdened quired under this section. SEC. 3. ACCESSING INFORMATION AND FILING clerk will report the bill by title. by government-mandated paperwork. The legislative clerk read as follows: This bill is the first step in the right OVER THE INTERNET. (a) IN GENERAL.—Not later than 2 years A bill (S. 1753) to amend the Immigration direction toward regulatory reform for after the date of enactment of this Act, in and Nationality Act to provide that an our U.S. food producers. accordance with subsection (b), the Sec- adopted alien who is less than 18 years of age The Freedom to E-File Act has been retary shall expand implementation of the may be considered a child under such Act if popular among agricultural groups and Internet-based system established under sec- adopted with or after a sibling who is a child within the United States Senate. The tion 2 by enabling agricultural producers to under such Act. American Farm Bureau Federation, access and file all forms and, at the option of There being no objection, the Senate the Secretary, selected records and informa- our nation’s largest farm organization, tion of the agencies of the Department speci- proceeded to consider the bill. stated that while S. 777 is a simple bill, fied in section 2(b). Mr. GRASSLEY. Mr. President, I ask ‘‘the impact it will have on farmers (b) IMPLEMENTATION.—In carrying out sub- unanimous consent that the bill be and ranchers should be immense.’’ The section (a), the Secretary shall ensure that read a third time, passed, the motion bill has approximately twenty bipar- an agricultural producer is able— to reconsider be laid upon the table, tisan co-sponsors, including Agri- (1) to file electronically or in paper form, and that any statements relating to at the option of the agricultural producer, culture Committee Chairman LUGAR the bill be printed in the RECORD. all forms required by agencies of the Depart- The PRESIDING OFFICER. Without and Minority Leader DASCHLE. The ment specified in section 2(b); Secretary of Agriculture also supports (2) to file electronically or in paper form, objection, it is so ordered. the Freedom to E-File Act. at the option of the agricultural producer, The bill (S. 1753) was read the third I commend my colleague, Congress- all documentation required by agencies of time and passed, as follows: man RAY LAHOOD, for championing the the Department specified in section 2(b) and S. 1753 companion to this bill in the House of determined appropriate by the Secretary; Be it enacted by the Senate and House of Rep- Representatives. I hope that the House and resentatives of the United States of America in will pass this important legislation (3) to access information concerning farm Congress assembled, prior to the end of this session, and programs, quarterly trade, economic, and SECTION 1. PROVIDING THAT AN ADOPTED production reports, and other similar pro- ALIEN WHO IS LESS THAN 18 YEARS look forward to the President’s signa- duction agriculture information that is read- OF AGE MAY BE CONSIDERED A ture. I thank the presiding officer and ily available to the public in paper form. CHILD UNDER THE IMMIGRATION I yield the floor. SEC. 4. FEDERAL CROP INSURANCE CORPORA- AND NATIONALITY ACT IF ADOPTED Mr. GRASSLEY. Mr. President, I ask TION AND RISK MANAGEMENT WITH OR AFTER A SIBLING WHO IS A unanimous consent that the amend- AGENCY. CHILD UNDER SUCH ACT. (a) IN GENERAL.—Section 101(b)(1) of the ment be agreed to, the bill be read a (a) IN GENERAL.—Not later than December 1, 2000, the Federal Crop Insurance Corpora- Immigration and Nationality Act (8 U.S.C. third time and passed, as amended, the tion and the Risk Management Agency shall 1101(b)(1)) is amended— motion to reconsider be laid upon the submit to the Committee on Agriculture of (1) in subparagraph (E)— table, and that any statements relating the House of Representatives and the Com- (A) by inserting ‘‘(i)’’ after ‘‘(E)’’; and to the bill be printed in the RECORD. mittee on Agriculture, Nutrition, and For- (B) by adding at the end the following: The PRESIDING OFFICER. Without estry of the Senate a plan, that is consistent ‘‘(ii) subject to the same proviso as in objection, it is so ordered. with this Act, to allow agricultural pro- clause (i), a child who (I) is a natural sibling The bill (S. 777), as amended, was ducers to— of a child described in clause (i) or subpara- read the third time and passed, as fol- (1) obtain, over the Internet, from ap- graph (F)(i); (II) was adopted by the adoptive parent or parents of the sibling described in lows: proved insurance providers all forms and other information concerning the program such clause or subparagraph; and (III) is oth- S. 777 under the jurisdiction of the Corporation and erwise described in clause (i), except that the Be it enacted by the Senate and House of Rep- Agency in which the agricultural producer is child was adopted while under the age of resentatives of the United States of America in a participant; and eighteen years; or’’; and Congress assembled, (2) file electronically all paperwork re- (2) in subparagraph (F)— SECTION 1. SHORT TITLE. quired for participation in the program. (A) by inserting ‘‘(i) after ‘‘(F)’’; This Act may be cited as the ‘‘Freedom to (b) ADMINISTRATION.—The plan shall— (B) by striking the period at the end and E-File Act’’. (1) conform to sections 2(c) and 3(b); and inserting ‘‘; or’’; and SEC. 2. ELECTRONIC FILING AND RETRIEVAL. (2) prescribe— (C) by adding at the end the following: (a) IN GENERAL.—Not later than 180 days (A) the location and type of data to be ‘‘(ii) subject to the same provisos as in after the date of enactment of this Act, in made available to agricultural producers; clause (i), a child who (I) is a natural sibling

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00176 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.069 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14047 of a child described in clause (i) or subpara- ment Center, enabled the F–15E Strike Eagle (3) In 1996, the Federal Trade Commission graph (E)(i); (II) has been adopted abroad, or aircrews to standoff approximately 40 nau- launched ‘‘Project Scholarscam’’, a joint law is coming to the United States for adoption, tical miles from targets and attack with enforcement and consumer education campaign by the adoptive parent (or prospective adop- very high precision; and directed at fraudulent purveyors of so-called tive parent) or parents of the sibling de- Whereas the reliable performance of the ‘‘scholarship services’’. scribed in such clause or subparagraph; and JDAM and AGM 130 enabled the combat air (4) Despite the efforts of the Federal Trade (III) is otherwise described in clause (i), ex- crews to complete bombing missions accu- Commission, colleges and universities, and non- cept that the child is under the age of eight- rately, effectively, and with reduced risk to governmental organizations, the continued lack een at the time a petition is filed in his or crews, resulting in no casualties among of awareness about scholarship fraud permits a her behalf to accord a classification as an NATO air personnel, thereby making these significant amount of fraudulent activity to immediate relative under section 201(b).’’. munitions the ordinance favored most by occur. (b) CONFORMING AMENDMENTS RELATING TO combat air crews: Now, therefore, be it SEC. 3. SENTENCING ENHANCEMENT FOR HIGH- NATURALIZATION.— Resolved, That the Senate— ER EDUCATION FINANCIAL ASSIST- (1) DEFINITION OF CHILD.—Section 101(c)(1) (1) commends the men and women of Eglin ANCE FRAUD. of the Immigration and Nationality Act (8 Air Force Base, Florida, for their contribu- Pursuant to its authority under section 994(p) U.S.C. 1101(c)) is amended by striking ‘‘six- tions to the unqualified success of Operation of title 28, United States Code, the United States teen years,’’ and inserting ‘‘sixteen years Allied Force; Sentencing Commission shall amend the Federal (except to the extent that the child is de- (2) recognizes that the efforts of the men sentencing guidelines in order to provide for en- scribed in subparagraph (E)(ii) or (F)(ii) of and women of the Air Armament Center, hanced penalties for any offense involving subsection (b)(1)),’’. Eglin Air Force Base, Florida, helped NATO fraud or misrepresentation in connection with (2) CERTIFICATE OF CITIZENSHIP.—Section conduct the air war with devastating effect the obtaining or providing of, or the furnishing 322(a)(4) of the Immigration and Nationality on our adversaries, entirely without Amer- of information to a consumer on, any scholar- Act (8 U.S.C. 1433(a)(4)) is amended— ican casualties in the air combat operations; ship, grant, loan, tuition, discount, award, or (A) by striking ‘‘16 years’’ and inserting (3) expresses deep gratitude for the sac- other financial assistance for purposes of fi- ‘‘16 years (except to the extent that the child rifices made by those men and women and nancing an education at an institution of high- is described in clause (ii) of subparagraph (E) their families in their support of American er education, such that those penalties are com- or (F) of section 101(b)(1))’’; and efforts in Operation Allied Force; and parable to the base offense level for misrepresen- (B) by striking ‘‘subparagraph (E) or (F) of (4) commits to maintaining the techno- tation that the defendant was acting on behalf section 101(b)(1).’’ and inserting ‘‘either of logical superiority of American air arma- of a charitable, educational, religious, or polit- such subparagraphs.’’. ment as a critical component of our Nation’s ical organization, or a government agency. SEC. 4. EXCLUSION OF DEBTS RELATING TO COL- f capability to conduct and prevail in warfare while minimizing casualties. LEGE FINANCIAL ASSISTANCE SERV- ICES FRAUD FROM PERMISSIBLE EX- RECOGNIZING AND COMMENDING f EMPTIONS OF PROPERTY FROM ES- THE PERSONNEL OF EGLIN AIR TATES IN BANKRUPTCY. COLLEGE SCHOLARSHIP FRAUD FORCE BASE, FLORIDA Section 522(c) of title 11, United States Code, PREVENTION ACT OF 1999 is amended— Mr. GRASSLEY. Mr. President, I ask Mr. GRASSLEY. Mr. President, I ask (1) by striking ‘‘or’’ at the end of paragraph unanimous consent that the Armed unanimous consent that the Senate (2); Services Committee be discharged from now proceed to the consideration of (2) by striking the period at the end of paragraph (3) and inserting ‘‘; or’’; and consideration of and the Senate pro- Calendar No. 357, bill S. 1455. ceed to the immediate consideration of (3) by adding at the end the following: The PRESIDING OFFICER. The ‘‘(4) a debt in connection with fraud in the S. Res. 185, commending the personnel clerk will report the bill by title. obtaining or providing of any scholarship, of Eglin Air Force Base. The legislative clerk read as follows: grant, loan, tuition, discount, award, or other The PRESIDING OFFICER. Without A bill (S. 1455) to enhance protections financial assistance for purposes of financing objection, it is so ordered. against fraud in the offering of financial as- an education at an institution of higher edu- The clerk will report the resolution sistance for college education, and for other cation (as that term is defined in section 101 of by title. purposes. the Higher Education Act of 1954 (20 U.S.C. 1001)).’’. The legislative clerk read as follows: There being no objection, the Senate SEC. 5. SCHOLARSHIP FRAUD ASSESSMENT AND A resolution (S. Res. 185) recognizing and proceeded to consider the bill which AWARENESS ACTIVITIES. commending the personnel of Eglin Air had been reported from the Committee (a) ANNUAL REPORT ON SCHOLARSHIP Force Base, Florida, for their participation on the Judiciary, with an amendment FRAUD.— and efforts in support of the North Atlantic to strike all after the enacting clause (1) REQUIREMENT.—The Attorney General and Treaty Organization’s (NATO) Operation Al- the Secretary of Education, in conjunction with lied Force in the Balkan Region. and inserting in lieu thereof the following: the Federal Trade Commission, shall jointly sub- There being no objection, the Senate mit to Congress each year a report on fraud in proceeded to consider the resolution. SECTION 1. SHORT TITLE. the offering of financial assistance for purposes This Act may be cited as the ‘‘College Scholar- of financing an education at an institution of Mr. GRASSLEY. Mr. President, I ask ship Fraud Prevention Act of 1999’’. unanimous consent that the resolution higher education. Each report shall contain an SEC. 2. FINDINGS. assessment of the nature and quantity of inci- and preamble be agreed to en bloc, the Congress makes the following findings: dents of such fraud during the one-year period motion to reconsider be laid upon the (1) A substantial amount of fraud occurs in ending on the date of such report. table, and that any statements relating the offering of college education financial as- (2) INITIAL REPORT.—The first report under to the resolution be printed in the sistance services to consumers. paragraph (1) shall be submitted not later than RECORD. (2) Such fraud includes the following: 18 months after the date of the enactment of this (A) Misrepresentations regarding the provi- Act. The PRESIDING OFFICER. Without sion of sources from which consumers may ob- objection, it is so ordered. (b) NATIONAL AWARENESS ACTIVITIES.—The tain financial assistance (including scholar- Secretary of Education shall, in conjunction The resolution (S. Res. 185) was ships, grants, loans, tuition, awards, and other with the Federal Trade Commission, maintain a agreed to. assistance) for purposes of financing a college scholarship fraud awareness site on the Internet The preamble was agreed to. education. web site of the Department of Education. The The resolution, with its preamble, (B) Misrepresentations regarding the provi- scholarship fraud awareness site may include reads as follows: sion of portfolios of such assistance tailored to the following: the needs of specific consumers. (1) Appropriate materials from the Project S. RES. 185 (C) Misrepresentations regarding the pre-se- Scholarscam awareness campaign of the Com- Whereas the personnel of the Air Arma- lection of students as eligible to receive such as- mission, including examples of common fraudu- ment Center at Eglin Air Force Base, Flor- sistance. lent schemes. ida, developed and provided many of the mu- (D) Misrepresentations that such assistance (2) A list of companies and individuals who nitions, technical orders, expertise, and sup- will be provided to consumers who purchase have been convicted of scholarship fraud in port equipment utilized by NATO during the specified services from specified entities. Federal or State court. Operation Allied Force air campaign; (E) Misrepresentations regarding the business (3) An Internet-based message board to pro- Whereas the 2,000-pound Joint Direct At- relationships between particular entities and en- vide a forum for public complaints and experi- tack Munition (JDAM) developed at the Air tities that award or may award such assistance. ences with scholarship fraud. Armament Center was the very first weapon (F) Misrepresentations regarding refunds of (4) An electronic comment form for individuals dropped in Operation Allied Force; processing fees if consumers are not provided who have experienced scholarship fraud or have Whereas the Air to Ground 130 (AGM 130) specified amounts of such assistance, and other questions about scholarship fraud, with appro- standoff missile, developed at the Air Arma- misrepresentations regarding refunds. priate mechanisms for the transfer of comments

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00177 Fmt 0624 Sfmt 6333 E:\CR\FM\A04NO6.071 pfrm12 PsN: S04PT1 S14048 CONGRESSIONAL RECORD — SENATE November 4, 1999 received through such forms to the Department rects the Sentencing Commission to in- ued lack of awareness about scholarship and the Commission. crease the guideline offense levels by 2 fraud permits a significant amount of fraud- (5) Internet links to other sources of informa- levels. ulent activity to occur. tion on scholarship fraud, including Internet The substitute amendment is an im- SEC. 3. SENTENCING ENHANCEMENT FOR HIGH- web sites of appropriate nongovernmental orga- ER EDUCATION FINANCIAL ASSIST- nizations, colleges and universities, and govern- provement since it avoids complicating ANCE FRAUD. ment agencies. the wire and mail fraud statutes with Pursuant to its authority under section (6) An Internet link to the Better Business different penalties depending on the 994(p) of title 28, United States Code, the Bureau in order to assist individuals in assess- nature of the underlying fraud. United States Sentencing Commission shall ing the business practices of other persons and The substitute amendment directs amend the Federal sentencing guidelines in entities. the Attorney General and the Sec- order to provide for enhanced penalties for (7) Information on means of communicating retary of Education, in consultation any offense involving fraud or misrepresen- with the Federal Student Aid Information Cen- with the Federal Trade Commission to tation in connection with the obtaining or ter, including telephone and Internet contact report to Congress on the nature and providing of, or the furnishing of informa- information. tion to a consumer on, any scholarship, quantity of incidents of scholarship Mr. LEAHY. Mr. President, one of grant, loan, tuition, discount, award, or scams. This report will assist the Judi- other financial assistance for purposes of fi- the singular most important issues fac- ciary Committee in monitoring wheth- ing us today is education. Affordable nancing an education at an institution of er additional legislative steps are need- higher education, such that those penalties higher education is an opportunity ed in this area. are comparable to the base offense level for that must be made available to all of The substitute amendment makes misrepresentation that the defendant was our young people. To that end, public important improvements in the origi- acting on behalf of a charitable, educational, and private scholarships, grants and nal bill, and I urge the Congress to pass religious, or political organization, or a government agency. loans have long assisted our nation’s this legislation promptly. students in pursuing college degrees. Mr. GRASSLEY. I ask unanimous SEC. 4. EXCLUSION OF DEBTS RELATING TO COL- Phony scholarship offerings, scams LEGE FINANCIAL ASSISTANCE SERV- consent the committee amendment be ICES FRAUD FROM PERMISSIBLE EX- and frauds do great harm to our na- agreed to, the bill be considered read EMPTIONS OF PROPERTY FROM ES- tion’s students. No student seeking to the third time and passed, the motion TATES IN BANKRUPTCY. attend a college or university should to reconsider be laid upon the table, Section 522(c) of title 11, United States have to worry about whether a scholar- and that any statements relating to Code, is amended— (1) by striking ‘‘or’’ at the end of paragraph ship offering is legitimate or wonder the bill be printed in the RECORD. whether the business to which he or (2); The PRESIDING OFFICER. Without (2) by striking the period at the end of she has mailed an application fee actu- objection, it is so ordered. ally exists. I am glad to join in the ef- paragraph (3) and inserting ‘‘; or’’; and The committee amendment in the (3) by adding at the end the following: fort of Senators ABRAHAM and FEIN- nature of a substitute was agreed to. ‘‘(4) a debt in connection with fraud in the GOLD to add to the arsenal of our cur- The bill (S. 1455) as amended, was obtaining or providing of any scholarship, rent laws to combat these types of read the third time and passed, as fol- grant, loan, tuition, discount, award, or frauds. lows: other financial assistance for purposes of financing an education at an institution of I commented at a Judiciary Com- S. 1455 mittee hearing on this bill earlier this higher education (as that term is defined in Be it enacted by the Senate and House of Rep- month that the goals of this legislation section 101 of the Higher Education Act of resentatives of the United States of America in 1954 (20 U.S.C. 1001)).’’. are laudable. We need to do more to Congress assembled, combat scholarship scams and promote SEC. 5. SCHOLARSHIP FRAUD ASSESSMENT AND SECTION 1. SHORT TITLE. AWARENESS ACTIVITIES. the dissemination of information about This Act may be cited as the ‘‘College (a) ANNUAL REPORT ON SCHOLARSHIP legitimate sources of higher education Scholarship Fraud Prevention Act of 1999’’. FRAUD.— funding. Nevertheless, I raised ques- SEC. 2. FINDINGS. (1) REQUIREMENT.—The Attorney General tions about whether the original bill Congress makes the following findings: and the Secretary of Education, in conjunc- reflected the most effective way to pur- (1) A substantial amount of fraud occurs in tion with the Federal Trade Commission, sue the goals we all share. I am pleased the offering of college education financial as- shall jointly submit to Congress each year a to join as a cosponsor of the substitute sistance services to consumers. report on fraud in the offering of financial amendment that addresses the con- (2) Such fraud includes the following: assistance for purposes of financing an education at an institution of higher education. cerns I raised. (A) Misrepresentations regarding the provision of sources from which consumers may Each report shall contain an assessment of For instance, the original bill pro- obtain financial assistance (including schol- the nature and quantity of incidents of such posed raising the long-standing statu- arships, grants, loans, tuition, awards, and fraud during the one-year period ending on tory maximum punishment of five other assistance) for purposes of financing a the date of such report. years for mail and wire fraud to ten college education. (2) INITIAL REPORT.—The first report under years in cases of scholarship scams. In (B) Misrepresentations regarding the pro- paragraph (1) shall be submitted not later light of the fact that scholarship scams vision of portfolios of such assistance tai- than 18 months after the date of the enact- often involve more than one victim and lored to the needs of specific consumers. ment of this Act. may result in multiple charges, raising (C) Misrepresentations regarding the pre- (b) NATIONAL AWARENESS ACTIVITIES.—The selection of students as eligible to receive Secretary of Education shall, in conjunction the statutory penalties may not be such assistance. with the Federal Trade Commission, main- necessary to effectuate punishment (D) Misrepresentations that such assist- tain a scholarship fraud awareness site on goals. I suggested that a more appro- ance will be provided to consumers who pur- the Internet web site of the Department of priate and effective solution to ensure chase specified services from specified enti- Education. The scholarship fraud awareness adequate punishment may be to direct ties. site may include the following: the Sentencing Commission to consider (E) Misrepresentations regarding the busi- (1) Appropriate materials from the Project a guideline enhancement for cases in- ness relationships between particular enti- Scholarscam awareness campaign of the volving fraudulent scholarship offer- ties and entities that award or may award Commission, including examples of common such assistance. fraudulent schemes. ings. The substitute amendment makes (F) Misrepresentations regarding refunds (2) A list of companies and individuals who this change and directs the Sentencing of processing fees if consumers are not pro- have been convicted of scholarship fraud in Commission to amend the sentencing vided specified amounts of such assistance, Federal or State court. guidelines to provide enhanced pen- and other misrepresentations regarding re- (3) An Internet-based message board to alties for any offenses involving schol- funds. provide a forum for public complaints and arship scams such that those penalties (3) In 1996, the Federal Trade Commission experiences with scholarship fraud. are comparable to the base offense launched ‘‘Project Scholarscam’’, a joint law (4) An electronic comment form for indi- level for misrepresentation that the de- enforcement and consumer education cam- viduals who have experienced scholarship paign directed at fraudulent purveyors of so- fraud or have questions about scholarship fendant was acting on behalf of a chari- called ‘‘scholarship services’’. fraud, with appropriate mechanisms for the table, educational, religious, or polit- (4) Despite the efforts of the Federal Trade transfer of comments received through such ical organization, or a government Commission, colleges and universities, and forms to the Department and the Commis- agency. In effect, this amendment di- nongovernmental organizations, the contin- sion.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00178 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.076 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — SENATE S14049 (5) Internet links to other sources of infor- sider be laid upon the table with no in- relevant and filed by 5 p.m. tomorrow. mation on scholarship fraud, including Inter- tervening action, and that any state- Senators who have amendments are en- net web sites of appropriate nongovern- ments relating thereto be printed in couraged to work with the bill man- mental organizations, colleges and univer- the RECORD. agers on a time to come to the floor to sities, and government agencies. (6) An Internet link to the Better Business The PRESIDING OFFICER. Without offer and debate those amendments. Bureau in order to assist individuals in as- objection, it is so ordered. The leader has announced that votes sessing the business practices of other per- The bill (H.R. 3122) was read the third could occur tomorrow on amendments sons and entities. time and passed. or any appropriations bills that become (7) Information on means of commu- f available. nicating with the Federal Student Aid Infor- The leader also announces that votes ORDERS FOR FRIDAY, NOVEMBER mation Center, including telephone and will occur on Monday at 5:30 p.m. and Internet contact information. 5, 1999 on Tuesday morning at 10:30. The votes f Mr. GRASSLEY. Mr. President, I ask on Tuesday will be on the minimum TO PERMIT ENROLLMENT IN unanimous consent that when the Sen- wage issue and the business cost HOUSE OF REPRESENTATIVES ate completes its business today, it ad- amendment. CHILD CARE CENTER OF CHIL- journ until the hour of 9:30 a.m. on Fri- As a reminder, the Senate passed the DREN OF FEDERAL EMPLOYEES day, November 5. I further ask consent continuing resolution to continue Gov- Mr. GRASSLEY. Mr. President, I ask that on Friday, immediately following ernment funding until November 10. It unanimous consent that the Rules the prayer, the Journal of proceedings is hoped that all Senators will give Committee be discharged from further be approved to date, the morning hour their full cooperation as the final days consideration of H.R. 3122, and that the be deemed expired, the time for the two of the first session of the 106th Con- Senate then proceed to the immediate leaders be reserved for their use later gress come to a close. consideration of H.R. 3122. in the day, and the Senate then resume The PRESIDING OFFICER. Without consideration of S. 625, the bankruptcy f objection, it is so ordered. The clerk reform bill. The PRESIDING OFFICER. Without will report the bill by title. ADJOURNMENT UNTIL 9:30 A.M. objection, it is so ordered. The legislative clerk read as follows: TOMORROW A bill (H.R. 3122) to permit the enrollment f in the House of Representatives Child Care Mr. GRASSLEY. Mr. President, if Center of children of Federal employees who PROGRAM there is no further business to come be- are not employees of the legislative branch. Mr. GRASSLEY. For the information fore the Senate, I now ask unanimous There being no objection, the Senate of all Senators, at 9:30 a.m. on Friday, consent the Senate stand in adjourn- proceeded to consider the bill. the Senate will immediately resume ment under the previous order. Mr. GRASSLEY. I ask unanimous debate on the bankruptcy reform legis- There being no objection, the Senate, consent that the bill be read three lation. As under the agreement, first- at 8:15 p.m., adjourned until Friday, times, passed, and the motion to recon- degree amendments to the bill must be November 5, 1999, at 9:30 a.m.

VerDate 29-OCT-99 05:35 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00179 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.077 pfrm12 PsN: S04PT1 November 4, 1999 CONGRESSIONAL RECORD — Extensions of Remarks E2265 EXTENSIONS OF REMARKS

EXPRESSING THE SENSE OF THE CONGRATULATING MATTIE Army during a horrible war. His actions earned CONGRESS THAT A POSTAGE SHARKEY, OF SIKESTON, MIS- him honorary membership in the American So- STAMP SHOULD BE ISSUED REC- SOURI, ON HER RECOGNITION BY ciety of the French Legion of Honor. He was OGNIZING THE ISLAMIC HOLY THE ‘‘DAUGHTERS OF SUNSET’’ also presented France's prestigious Order of MONTH OF RAMADAN the Legion of Honor for his role in helping HON. JO ANN EMERSON France defeat its enemies. OF MISSOURI As our country prepares to celebrate Vet- erans Day, I would like to congratulate Mr. HON. THOMAS M. DAVIS IN THE HOUSE OF REPRESENTATIVES Painter for his military service and for a job OF VIRGINIA Thursday, November 4, 1999 well done. Mr. Painter and other veterans cer- IN THE HOUSE OF REPRESENTATIVES Mrs. EMERSON. Mr. Speaker, on Saturday, tainly have the undying gratitude of the United November 13, 1999, Mattie Sharkey is being States of America. Thursday, November 4, 1999 honored by the Sikeston, MO, ``Daughters of f Mr. DAVIS of Virginia. Mr. Speaker, I rise Sunset'' at their 15th Annual Recognition Pro- gram. I would like to extend my congratula- TRIBUTE TO JAN DUCKWORTH—A today to introduce a bill which expresses the GREAT AMERICAN AND FRIEND sense of the Congress that a postage stamp tions to Mattie who has shown a life-long commitment to her family, her community and her TO MANY should be issued recognizing the Islamic holy church. month of Ramadan. Mattie is the daughter of the late John and HON. SCOTT McINNIS Muslims are a growing and vibrant part of Eliza Ross. She was born in Grenada, MS, on OF COLORADO our community. They are our friends, neigh- December 21, 1900. She grew up on a farm IN THE HOUSE OF REPRESENTATIVES bors, doctors, and merchants. Ramadan oc- and her education was limited to the 4th grade Thursday, November 4, 1999 curs during the ninth month of the Islamic cal- because she had to work in the fields. She endar when all Muslims fast from sunrise to has two sisters and one brother. Mr. MCINNIS. Mr. Speaker, on behalf of Senators BEN NIGHTHORSE CAMPBELL and sunset. Observing Ramadan is one of the In 1924, Mattie moved to Swan Lake, MS. WAYNE ALLARD, and Representatives JOEL ``five pillars of Islam'' and all Muslims, except There she married Nathaniel Sharkey, and they are the parents of five girls. In 1929, the HEFLEY, BOB SCHAFFER, DIANE DEGETTE, children, pregnant and nursing mothers, and family moved to Portageville, MO. They pur- MARK UDALL, and THOMAS TANCREDO, I would the sick are expected to abstain from food and chased a farm located on River Road near like to honor the life of a dear friend, loyal drink during the day. Point Pleasant. In 1936, Mattie's husband civic servant and one of Colorado's leading la- Another pillar of the Islamic faith is the hajj, passed away. Mattie continued to live and dies, Jan Duckworth. Tragically, the world lost or the pilgrimage to Mecca. This period com- work on the River Road farm with her children. Jan earlier this week when her plane, bound memorates when Muslims believe the Koran The girls attended school and went to high for Cairo, Egypt, crashed just off the coast of was revealed to the prophet Muhammad from school in New Madrid, MO. After the girls left Massachusetts. But even as we mourn her tragic and un- the Archangel Gabriel. Therefore, many Mus- home, Mattie moved to the town of timely passing, everyone who has had the lims try to read the entire Koran during Rama- Portageville, where she was active at Zion Rock Baptist Church. Mattie also has been ac- privilege of knowing Jan can take comfort in dan. tive in her community as a member of the the memory of her remarkable life. During Ramadan, in addition to fasting and NAACP and the 4±H Club and as a volunteer Since 1978, Jan worked diligently and with studying the Koran, observing Muslims recite at the community center where she worked great distinction in the Colorado House of special prayers, donate money to the poor, with girls. Representatives. In the beginning, she was re- and seek forgiveness from those whom they Mattie's daughters have made sure that she sponsible for the distribution of bills and their may have wronged. Such practices nurture has had an opportunity to travel. Some of the related documents to members and their staff self-discipline and compassion, rejuvenate places she has traveled include Hawaii, Baha- in the Capitol. It was not long thereafter that Jan's good work was recognized by her supe- faith, and help Muslims earn merit for the mas Island, California, Mexico, Canada, Niag- riors who, in turn, promoted her through the afterlife. ara Falls, New York and Chicago. Mattie currently lives in Sikeston, MO with her daughter, ranks of the House administrative staff. At the In return, Muslims believe that God will Eliza Strickland. time of her death, Jan was serving as the cleanse our sins at the beginning of Eid al-Fitr, Congratulations Mattie, on your recognition House's Chief Assignable Clerk. In addition to a festive three-day celebration that marks the by the ``Daughters of Sunset.'' May you, your attending to the important business of the Col- end of Ramadan. Muslims believe that Eid sig- loved ones, and the people of Sikeston con- orado House, Jan also took tremendous pride nifies a new beginning, a second chance to tinue to be blessed with your thoughtful dedi- in training new staff on the legislative process lead more righteous lives. cation to family and community. and new member training and orientation. f Of the many accolades bestowed upon Jan I am proud to represent the Muslim-Ameri- during her time in the Colorado House of Rep- cans who have chosen to live and work in HONORING THE BRAVERY OF resentatives, none could ever fully capture the Northern Virginia. Muslim-Americans have WORLD WAR I VETERAN JOHN breadth of her service to this esteemed body. strong family values which they renew with PAINTER For Jan's service extended far beyond the dic- their families and friends during Ramadan. tates of any job description: she worked the Muslim-Americans contribute to our diverse HON. BART GORDON chamber, telling a joke to those weary of de- community with their hard work, academic OF TENNESSEE bate; disarming the embattled with her quick achievements, and entrepreneurial spirit. Their IN THE HOUSE OF REPRESENTATIVES wit; adding an element of warmth and hospi- tality to a place that, at times, could be cool sense of discipline, obedience, and community Thursday, November 4, 1999 during Ramadan is inspiring to all of us. with confrontation. These are the memories of Mr. GORDON. Mr. Speaker, I rise today to Jan that colleagues, friends, and family will For these reasons, I urge all of my col- honor one of the Nation's last surviving World cling to during this difficult time and throughout leagues to support this resolution which would War I veterans, Mr. John George Painter, a the rest of our lives. express the sense of Congress that a postage 111-year-old native of Jackson County, TN. Although her professional accomplishments stamp should be issued to celebrate Rama- Mr. Painter fought heroically on the battle- will long be remembered and admired, those dan. fields of France as a member of the U.S. who knew Jan well will remember her, above

∑ 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. E2266 CONGRESSIONAL RECORD — Extensions of Remarks November 4, 1999 all else, as a friend. It is clear that the mul- work on the field, but they have proven to be MO. He is the father of two sons, Keith Jr. and titude of those who have come to know and hard workers in the classroom as well, dem- Tevin, and he has been employed with love Jan will be worse off in her absence. onstrating the ability to take on many achieve- Sikeston Public Schools as a bus driver since However, Mr. Speaker, I am confident that, in ments at once. February 1990. spite of this profound loss, Jan's co±workers, I want to take this time to recognize the One day, Keith had an idea to have a sim- family and friends can take solace in the Lady Pirates individually. The 1999 players ple picnic for his boys and their friends. His knowledge that each is a better person for are seniors: Lindsey Baxley, Sarah Carter, idea became so popular that it became an an- having known her. Jana Lamb, Bridgett Lasseter, Contessa nual event which is now called ``Gibson's Day But even as we mourn her passing, those Smith, Sarah Warren, Alissa Winn, Samantha in the Park.'' In 1994, Keith started with a pic- who knew and loved Jan should find peace in Wright. Juniors: Candace Carter, Hanna nic for 15 to 20 kids. Over the years, as many the rich legacy that she has left behind in her Glenn, Amy Johnson, Ashley Winn. Sopho- as 135 kids take part in the ``Gibson Day in son, William Duckworth, her daughter, Mary mores: Cookie Alderman, Vicki Edenfield, Bil- the Park''Ðand Keith expects more kids to Lynn Mimouna, and her granddaughter lie Jean Gibson, Alisha Tillman, Jodi Whitty, participate next year. Keith asks the ``Gibson Wardalynn Mimouna. I know that these and Lindsey Worthington. Freshmen: Carmen Day'' participants to bring hot dogs, juice, other members of her familyÐincluding her Chauncey, Tiffany Griffis, Sheena Hayes, cookies and/or chips depending on the size of sisters Mary Zow and Meredith LarsonÐwill Shafia Kent, Jessica Lindsey, Kylee Reese, the family. Most large families spend about long carry the torch of honor, compassion, in- and Candyce Sellers. This is an outstanding $5.00 on the event. tegrity and goodwill that defined Jan group of athletes. In the past years, different local businesses Duckworth's time on this earth. Mr. Speaker, victory cannot be achieved have helped by donating items for ``Gibson f without the hard work, talent, and persever- Day in the Park.'' Keith offers special thanks ance of every single athlete and the strong to Bunny Bread, McDonald's Restaurant, and CONGRATULATIONS TO THE leadership and direction of the coaches. This Sikeston Public Schools for their contributions. APPLING COUNTY LADY PI- team knows that, as their team motto is ``Be The city of Sikeston, MO allows Keith to use RATES GIRLS SOFTBALL TEAM, The Team.'' They truly are a team to be proud their vans, and several parents help out with 1999 AA STATE CHAMPIONS of, and it is an honor for me to represent the activities. Appling County, GA, in the People's House. I Keith says that he loves kids, and that they HON. SAXBY CHAMBLISS look forward to many more victories from the give him the strength to go on. Keith's plans Lady Pirates in the years to come. for the future include starting a day care cen- OF GEORGIA f ter and bringing kids camping and to the zoo. IN THE HOUSE OF REPRESENTATIVES People have asked Keith how he does it. He Thursday, November 4, 1999 PERSONAL EXPLANATION tells them. ``Just look at the kids' faces when they're happy, and you tell me why I do it.'' In Mr. CHAMBLISS. Mr. Speaker, I want to HON. KENNY C. HULSHOF fact, Keith often says that he's just a big kid congratulate the Lady Pirates Girls Softball himself. Keith believes that the ``Gibson Day in Team of Appling County High School in OF MISSOURI the Park'' picnic shows kids that we can get Baxley, GA, for recently capturing the AA IN THE HOUSE OF REPRESENTATIVES along together. The day helps kids develop or- State Championship title in girls softball. This Thursday, November 4, 1999 ganization skills and a sense of responsibility. fine group of young women and their coaches And the fact of knowing that someone out Mr. HULSHOF. Mr. Speaker, due to the from Georgia's 8th district deserve great rec- there cares about them other than their par- birth of my daughter Casey Elizabeth Hulshof, ognition for their hard work and success. ents, makes the kids feel good. I was not present for rollcall votes 550 through The Lady Pirates have a long history of vic- Congratulations, Keith, on your recognition 564. Had I been present, I would have voted tories, having won eight region championships by the ``Daughters of Sunset.'' Your dedication ``yea'' on rollcall vote 550, ``yea'' on rollcall under the strong leadership of Head Coach to the children of Sikeston, MO is both inspir- vote 551, ``yea'' on rollcall vote 552, ``yea'' on Kathy Warren. Coach Warren began coaching ing and heartwarming. May many more kids rollcall vote 553, ``yea'' on rollcall vote 554, Lady Pirate Softball in 1981, and under her have the opportunity to benefit from you, your ``yea'' on rollcall vote 555, ``yea'' on rollcall leadership, the Lady Pirates have 326 wins. ``Gibson's Day in the Park,'' and your future vote 556, ``yea'' on rollcall vote 557, ``nay'' on Over the course of her coaching career, Kathy hope and plans for their future. Warren has been named the Georgia Athletic rollcall vote 558, ``no'' on rollcall vote 559, f Coaches Association (GACA) Coach of the `àye'' on rollcall vote 560, ``yea'' on rollcall year nine times, and she was selected as the vote 561, ``yea'' on rollcall vote 562 and ``yea'' HONORING THE BRAVERY OF GACA State AAA Coach of the Year in 1993. on rollcall vote 563. WORLD WAR I VETERAN GEORGE I also want to congratulate Assistant Coach f DECKARD Janice Sellers, who has coached the team for CONGRATULATING KEITH GIBSON, 18 years, and Assistant Coach Tonya Long, OF SIKESTON, MISSOURI, ON HIS HON. BART GORDON who has coached the team for 8 years. RECOGNITION BY THE ‘‘DAUGH- OF TENNESSEE Coaches spend every day of their lives build- TERS OF SUNSET’’ IN THE HOUSE OF REPRESENTATIVES ing character, integrity, and determination in our young people. I want to commend Coach- Thursday, November 4, 1999 es Warren, Sellers, and Long for their commit- HON. JO ANN EMERSON Mr. GORDON. Mr. Speaker, I rise today to ment and service. OF MISSOURI honor one of the Nation's last surviving World The Lady Pirates have had numerous ac- IN THE HOUSE OF REPRESENTATIVES War I veterans, Mr. George William Deckard, complishments over the years of which to be a 102-year-old native of Macon County, TN. Thursday, November 4, 1999 proud. The team placed first seed in the South Mr. Deckard fought heroically on the battle- Sectionals over the past 3 years. They placed Mrs. EMERSON. Mr. Speaker, on Saturday, fields of France as a member of the U.S. 4th in the State in 1991 and 1993. They November 13, 1999, Keith Gibson is being Army during a horrible war. His actions earned placed 3d in the State in 1981 and 1995. And honored by the Sikeston, MO ``Daughters of him honorary membership in the American So- in 1992, 1997, and 1998, the Lady Pirates Sunset'' at their 15th Annual Recognition Pro- ciety of the French Legion of Honor. He was were the State Runners-up, moving on to cap- gram. I would like to extend my congratula- also presented France's prestigious Order of ture the Championship this year. tions to Keith who is being recognized on this the Legion of Honor for his role in helping These young women are not just excep- day for his community involvement. France defeat its enemies. tional athletes; they are also exceptional stu- Keith was born in Chicago, IL. He is the son As our country prepares to celebrate Vet- dents. During the first 6 weeks grading period of Samuel and Annette Gibson of Sikeston, erans Day, I would like to congratulate Mr. of the 1999±2000 school year, 14 of the Lady MO and Barbara and Gerald Nathan of St. Deckard for his military service and for a job Pirate Softball Team members were listed on Louis, MO. He is the 1974 graduate of McKin- well done. Mr. Deckard and other veterans the school's honor roll for academic achieve- ley High School in St. Louis, MO. On Thanks- certainly have the undying gratitude of the ment. Not only have they demonstrated hard giving Day in 1986, Keith moved to Sikeston, United States of America. CONGRESSIONAL RECORD — Extensions of Remarks E2267 CONGRATULATIONS TO THE On rollcall 555, I would have voted ``yea'' to CONGRATULATING MAUDE HAR- TELFAIR COUNTY LADY TRO- suspend the rules and pass H.R. 3164, a bill RIS, OF SIKESTON, MISSOURI, ON JANS GIRLS SOFTBALL TEAM, to provide for the imposition of economic HER RECOGNITION BY THE 1999 CLASS A STATE CHAMPIONS sanctions on certain foreign persons engaging ‘‘DAUGHTERS OF SUNSET’’ in, or otherwise involved in, international nar- HON. SAXBY CHAMBLISS cotics trafficking. HON. JO ANN EMERSON OF GEORGIA On rollcall 556, I would have voted ``yea'' to OF MISSOURI IN THE HOUSE OF REPRESENTATIVES suspend the rules and agree to H. Res. 349, IN THE HOUSE OF REPRESENTATIVES Thursday, November 4, 1999 a resolution expressing the sense of the Thursday, November 4, 1999 Mr. CHAMBLISS. Mr. Speaker, I want to House of Representatives that the President Mrs. EMERSON. Mr. Speaker, on Saturday, congratulate the Lady Trojans Girls Softball should immediately transmit to Congress the November 13, 1999, Maude Harris is being Team of Telfair County High School in McRae, President's recommendations for emergency honored by the Sikeston, MO ``Daughters of GA for recently capturing the Class A State response actions, including appropriate off- Sunset'' at their 15th Annual Recognition Pro- Championship title in girls softball. This fine sets, to provide relief and assistance to the gram. I would like to extend my congratula- group of young women and their coaches from victims of Hurricane Floyd. tions to Maude who is being recognized on Georgia's 8th district deserve great recognition this day for her involvement in her community. for their hard work and success. f Maude is the daughter of Mr. and Mrs. This is not only a victory for these fine Bankhead of Wyatt, MO. Maude has six broth- young women, but for their school as well, as COMMENDING ROBERT GRANATO ers and a sister. Maude attended Charleston it is the first State Championship for Telfair FOR HIS SERVICE TO Elementary School and graduated from County in over 30 years and the first ever in STONINGTON, CT Charleston High School. softball. The Lady Trojans have won four Maude's educational achievements include straight area titles and have advanced to the a bachelors degree of science from Southeast playoffs three times in the last 4 years. HON. SAM GEJDENSON Missouri State University in Cape Girardeau, I want to congratulate Telfair County Head OF CONNECTICUT MO as well as a master of arts in home eco- Coach Colby Taylor, Coach Becky Hamilton, nomics-option II (food and nutrition emphasis). and Coach Randy Pope for their leadership IN THE HOUSE OF REPRESENTATIVES Maude published her masters program thesis, and dedication to the team. Coaches spend Thursday, November 4, 1999 ``Nutrition Practices of Rural Elderly Scott every day of their lives building character, in- County African Americans in the Missouri tegrity, and determination in our young people Mr. GEJDENSON. Mr. Speaker, I rise today Bootheel.'' and I want to commend each of them for their to commend Robert Granato for his years of Maude is very active in her church, Corner- commitment and service. stone Baptist, working as church announcer I also want to take this time to recognize the service to citizens in Stonington, CT. Bob's and chairperson of the Church Newsletter. Her Lady Trojans individually. The 1999 players life-long dedication to public service is a model community activities include memberships with are Falon Wooten, Kamika Collins, Haley for all Americans. Daughters of Sunset, Historian, Altrusa Inter- Clarke, Cameo Cooper, Karla Hamilton, Jodi Bob Granato began serving his country and national, Inc. of SikestonÐAstra Advisors, Burress, Heather McGowan, Davitta Jones, community in the Army during the Korean Sikeston Community Credit Union-supervisory Kaycee Pope, Judy McRae, Sam Wilmouth, War. After graduating from Boston University, chairperson, past Girl Scout leader of Troop Danyelle Williams, Melonie Wilcox, Latoria Bob began a career as a counselor at Thames 158, board member of Regional Arthritis Cen- Mathis, and Paige Froug. This is an out- Valley Technical College in Norwich, CT. Over ter at St. Francis Hospital and the Missouri standing group of athletes. the next two decades, Bob helped thousands Department of Health-Diabetes Control Project Mr. Speaker, victory cannot be achieved of students of all ages to determine their ca- Advisory Committee, Bootheel Healthy Start without the hard work, talent, and persever- reer path and to improve their skills in order to Consortium Secretary, Southeast Missouri ance of every single athlete and the strong remain competitive in a changing economy. Cancer Control Coalition, past secretary and leadership and direction of the coaches. The member of Southeastern Minority Health Alli- Lady Trojans truly are a team to be proud of, After his retirement in 1989, Bob was ap- ance, and is the current president of Scott and it is an honor for me to represent Telfair pointed to the Planning and Zoning Commis- County Interagency Council. County, GA in the People's House. The Lady sion in Stonington. For the next eight and one- Maude is employed with University Out- Trojans made history this year, and I look for- half years, Bob served the community as a reach and Extension as a nutrition/health spe- ward to many more victories from this out- member and Chairman of the Commission. cialist. She is married to Reverend Michael K. standing team in the years to come. During this period, he helped the community Harris, Sr., associate minister of Cornerstone f to address and, ultimately overcome, signifi- Baptist Church. They are the parents of three cant economic changes which gripped all of children, Brenda, Sloan, and Kellar. PERSONAL EXPLANATION southeastern Connecticut as the defense in- Congratulations, Maude, on your recognition dustry down-sized after the cold war. In a re- HON. RONNIE SHOWS by the ``Daughters of Sunset.'' Your dedication cent article in the Westerly Sun, Bob spoke to family, church and community is truly inspir- OF MISSISSIPPI about the challenges and responsibilities asso- IN THE HOUSE OF REPRESENTATIVES ing. May the people of Sikeston continue to be ciated with leadership as Chairman of the blessed with your thoughtful contributions. Thursday, November 4, 1999 Commission. He spoke of the mundane, but f Mr. SHOWS. Mr. Speaker, I was away from essential responsibility of maintaining order the floor of the House on Tuesday, November during a crowded hearing as well as the more IN HONOR OF THE OHIO 2, 1999, on official business and was unable weighty issue of bearing ultimate responsibility ENVIRONMENTAL COUNCIL to cast recorded votes on rollcalls 553, 554, for the Commission's decisions. Bob recog- 555 and 556. nized these responsibilities and confronted HON. DENNIS J. KUCINICH Had I been present for rollcall 553, I would them head on. OF OHIO have voted ``yea'' to suspend the rules and Over the years, Bob and his wife, Carol, IN THE HOUSE OF REPRESENTATIVES agree to H. Con. Res. 213, a concurrent reso- have been strong supporters of the Pawcatuck Thursday, November 4, 1999 lution encouraging the Secretary of Education Neighborhood Center, a multi-faceted social Mr. KUCINICH. Mr. Speaker, I rise today in to promote, and State and local educational service agency that provides humanitarian agencies to incorporate in their education pro- honor of the Ohio Environmental Council on services to residents of the region. This effort grams, financial literacy training. their 30th Anniversary. I am honored to join is another example of Bob's commitment to On rollcall 554, I would have voted ``yea'' to them in their anniversary celebration being suspend the rules and agree to H. Res. 59, a the community. held on December 4, 1999. resolution expressing the sense of the House Mr. Speaker, Bob Granato is a public serv- The Ohio Environmental Council is a non- of Representatives that the United States re- ant in every sense of the world. I know he will profit advocacy organization committed to mains committed to the North Atlantic Treaty continue to serve long after his recent ``retire- solving the ecological problems in the state of Organization (NATO). ment.'' Ohio. They have dedicated the last 30 years E2268 CONGRESSIONAL RECORD — Extensions of Remarks November 4, 1999 to advocating for clean air, safe water and HOLOCAUST REMEMBRANCE CERE- families, the parents and grandparents of our conservation of our natural resources in Ohio. MONY AT CRESSKILL JUNIOR- friends. They have truly carried out their mission ``to SENIOR HIGH SCHOOL We all know the famous words of Martin inform, unite and empower all Ohio citizens to Niemoeller, the Lutheran minister who resisted protect the environment and conserve natural HON. MARGE ROUKEMA Hitler. `Ì didn't speak up because I wasn't a resources.'' OF NEW JERSEY Communist . . . I wasn't a Jew . . . I wasn't The OEC has made tremendous efforts to IN THE HOUSE OF REPRESENTATIVES a trade unionist.'' If the world does not remem- be a leader in some recent environmental ber the Holocaust, there could come a time for Thursday, November 4, 1999 issues. The organization is helping the effort each of us when we would be faced with Rev- to correct a terrible situation of a public school Mrs. ROUKEMA. Mr. Speaker, I rise to call erend Niemoeller's final line: ``Then they came that was built upon a toxic-laced former Army attention to a Holocaust remembrance cere- for me and no one was left to speak up for dump. Several graduates have leukemia and mony that will take place tomorrow at Cresskill me.'' others have been diagnosed with other forms Junior-Senior High School in Cresskill, NJ, I ask my colleagues in the House of Rep- of cancer. The state health department ac- and to commend those involved in organizing resentatives to join me in congratulating the knowledged that the number of graduates with this event. students and faculty of Cresskill Junior-Senior leukemia was statistically significant. The Ohio Definitively, the Holocaust was one of the High SchoolÐand the Holocaust survivors Environmental Council most recently has led darkest chapters in the history of our world. who are joining themÐon this effort to see the effort to save the Wayne National Forest However, words cannot begin to express the that history does not repeat itself. and the plethora of benefits it offers. horror and inhumanity of this unforgivable f The OEC has spent the last 30 years in- crime against humanity. It is vitally important forming communities about environmental that we remember the Holocaust, no matter CONGRATULATING DAVID threats and uniting them around opportunities how painful and horrifying those memories SPAINHOUR to help protect Ohio's natural environment. may be. Remembering the Holocaust is the They have made tremendous improvements to best way to ensure that it never happens HON. LOIS CAPPS better the air we breathe and water we drink. again. To quote George Santayana, ``Those OF CALIFORNIA My fellow colleagues, please join me in hon- who cannot remember the past are con- IN THE HOUSE OF REPRESENTATIVES oring the Ohio Environmental Council for their demned to repeat it.'' Thursday, November 4, 1999 tremendous efforts to improve the environment At Cresskill Junior-Senior High School to- for the state of Ohio. morrow, students and faculty will gather to re- Mrs. CAPPS. Mr. Speaker, today I rise to f member the Holocaust, passing on the memo- bring to the attention of my colleagues the out- ries to a new generation who will, in turn, pass standing work of David W. Spainhour. On PERSONAL EXPLANATION them on to their children and grandchildren. Sunday, November 7, David will receive the This will not be a mere academic exercise or Distinguished Community Service Award from HON. FRANK MASCARA a lesson in distant history, however. Approxi- the Anti-Defamation League and the Santa OF PENNSYLVANIA mately 20 survivors of the Nazi HolocaustÐ Barbara B'nai Brith Lodge. IN THE HOUSE OF REPRESENTATIVES along with survivors of some more recent As someone who has worked closely with genocides around the worldÐwill be on hand the ADL in its efforts to promote tolerance and Thursday, November 4, 1999 to tell their stories firsthand. combat hatred and prejudice, I am pleased Mr. MASCARA. Mr. Speaker, from October Tomorrow's event was organized at the urg- that this prominent organization has chosen to 25 to October 29, 1999 I was unavoidably ab- ing of Lara Pomerantz, a 15-year-old sopho- honor David. They could not have made a sent and missed rollcall votes numbered 533± more at Cresskill. Lara is an outstanding wiser selection. 549. For the record I would have voted `àye'' young woman who led the efforts that resulted David is one of Santa Barbara's preeminent on the following rollcall votes numbers 533 in Governor Whitman declaring the first week business leaders. He serves as President of and 545, Journal votes; number 534, H.R. of November as Holocaust Education Week in Capital Bancorp and Chairman of the Board of 754, the Made in America Information Act; New Jersey. She then worked with former Santa Barbara Bank & Trust. Throughout his number 535, H.R. 2303, the History of the principal Henry McNally and current principal thirty-three year career at the Bank, David has House Awareness and Preservation Act to Wayne Merckling to organize the school dedicated himself to improving all facets of life which I am a cosponsor; number 536, H. Con. event. in our community. Res. 194, on Recognizing the contributions of Why does a 15-year-old from New Jersey David has worked tirelessly in the areas of 4±H Clubs and their members to voluntary have such a strong interest in events that oc- education, business development, health care, community service; number 537, H. Con. Res. curred half a world away 40 years before she and assisting the neediest in our society. 190, urging the United States to seek a global was born? Lara has a close personal link to Among other positions, he serves on the consensus supporting a moratorium on tariffs; the Holocaust and good reason to remember. boards of Westmont College, Santa Barbara number 538, H. Con. Res. 208, expressing the As Jews in Nazi-occupied Poland, her mater- Industry Education Council, and the United sense of the Congress against tax increases nal grandparentsÐAbraham and Regina Way of Santa Barbara County. David and his in order to fund additional government spend- TauberÐnarrowly escaped the Holocaust. wife Carolyn are shining examples of individ- ing; number 539, H. Con. Res. 102, cele- After spending the war years on the run, in uals who believe passionately in serving the brating the 50th anniversary of the Geneva hiding and as members of the Resistance, common good. I am proud of their accomplish- Conventions; number 540, H. Con. Res. 188, they returned to their hometown of Chodel, ments and I am pleased to announce David's commending Greece and Turkey for their re- Poland, to find only 11 Jewish members of award on the floor of the House. sponse to the recent earthquakes in those that entire community aliveÐ11 individuals out f countries; number 541, H.R. 1175, to locate of 950. and secure the return of Zachary Baumel; Mr. and Mrs. Tauber will be at Cresskill Jun- CONGRATULATING MINISTER AR- number 544, H.R. 2260, the Pain Relief Pro- ior-Senior High tomorrow to support their THUR E. CASSELL, OF SIKESTON, motion Act, to which I am a cosponsor; and granddaughter and tell their story to her class- MO, ON HIS RECOGNITION BY number 546, H.J. Res. 73, the Continuing mates. In a letter to me, Lara said, ``My life is THE ‘‘DAUGHTERS OF SUNSET’’ Resolution; a living testament to their will to survive.'' No For the record, I would have voted ``no'' on words could be more inspiring to each genera- HON. JO ANN EMERSON the following rollcall votes: number 542, the tionÐpresent and future. OF MISSOURI Scott Amendment to H.R. 2260; number 543, By telling their stories to this gathering of IN THE HOUSE OF REPRESENTATIVES the Johnson of Connecticut Amendment to teenagers, the Taubers and other Holocaust H.R. 2260; number 547, H. Res. 345, waiving survivors will keep the memory alive for an- Thursday, November 4, 1999 points of order against the D.C. Appropriations other generationÐnot just as words on a text- Mrs. EMERSON. Mr. Speaker, on Saturday, Conference Report; number 548, the motion to book page but as the story of someone these November 13, 1999, Minister Arthur E. Cassell recommit the D.C. Appropriations Act, 2000; young people have actually met. Their efforts is being honored by the Sikeston, MO and number 549, on agreeing to the Con- will show another generation that the victims ``Daughters of Sunset'' at their 15th Annual ference Report for the D.C. Appropriations of the Holocaust were not just abstract num- Recognition Program. I would like to extend Act, 2000. bers or strangersÐthey are members of our my congratulations to Minister Cassell who is CONGRESSIONAL RECORD — Extensions of Remarks E2269 being recognized on this day for his commu- Louis in 1996. In a recent book about the man ingly, there are now seventeen countries with nity involvement. of music, author Travis Fitzpatrick tells the larger merchant marine fleets. For those who Minister Cassell is an associate minister at story of the music and the man that shaped have followed the decline of the U.S.-flag, it the Opportunity Church of God and Christ in the rock and roll world. Father of Rock & Roll: will come as no surprise that we have been Charleston, MO, and has been employed as a The Story Of Johnnie ``B. Goode'' Johnson se- eclipsed by such nations as Panama, Liberia, letter carrier at the Sikeston, Missouri Post Of- cures the unsung hero his rightful place in his- Cyprus, and Saint Vincent. fice since December 1981. He is married to tory. Johnnie Johnson is finally on the way to These nations do not have enormous mer- Lucille (Richardson) Cassell who is president receiving the credit he so rightfully deserves. chant marines because of their exports or im- of their diaper company. The Cassells are the My fellow colleagues, please join me in hon- ports. I am convinced that favorable tax treat- parents of four sons. oring this great musician, Johnnie ``B. Goode'' ment in those countries is directly responsible Minister Cassell is a former marine who has Johnson, for his unselfish dedication to music. for the decline of our own merchant marine been an active worker in the Southeast Mis- ``Johnnie Johnson Day'' is only a small rec- and the growth we have seen elsewhere in souri area since his discharge. He is the presi- ognition that we could give the man who's the world. dent of the Charleston Branch of the NAACP, music moved us time and again. This is a critical matter of both national se- chairman of the Weed & Seed Steering Com- f curity and economic growth. Unless we as a mittee in Charleston; has served as an execu- country respond quickly and effectively to this tive board member of Southeast Missouri TRIBUTE TO THE MIAMI-DADE situation our United States-flag merchant ma- Legal Services since 1989, and served on the FIRE AND RESCUE TEAM rineÐthe nation's fourth arm of defenseÐwill Community Outreach Center board in in all likelihood be unable to fulfill its historic Sikeston, MO. HON. E. CLAY SHAW, JR. mission of responding in times of war or other Minister Cassell also has cosponsored job international emergencies. OF FLORIDA As I remarked earlier this year, as recently preparedness classes, youth services, and ac- IN THE HOUSE OF REPRESENTATIVES tivities. In his own words, ``Through helping as the Persian Gulf War and the conflict in Thursday, November 4, 1999 others and trying to meet people's needs, I Bosnia, United States-flag commercial vessels have found that even more needs to be Mr. SHAW. Mr. Speaker, I rise today to and United States citizen crews respond quickly, effectively, and efficiently to our na- done.'' Minister Cassell's philosophy is, `Ìf honor and pay tribute to the Miami-Dade tion's call, providing the sealift sustainment ca- you're going to do it, go all out.'' County Fire and Rescue team for their efforts pability necessary to support America's armed Congratulations, Minister Cassell, on your and contributions in international disaster re- forces and to help protect America's interests recognition by the ``Daughters of Sunset.'' By sponses. overseas. In 1992, General Colin Powell, then- ``going all out'' for your family, church and The team was created in 1985 to respond Chairman of the Joint Chiefs of Staff, told the community, you have touched the lives of so with search and rescue efforts following the graduating class of the United States Mer- many others, and have helped them discover earthquake that rocked Mexico City. Since then, the team has been called upon for dis- chant Marine Academy at Kings Point that: the possibility of brighter futures. ``Since I became Chairman of the Joint aster assistance throughout the world includ- f Chiefs of Staff, I have come to appreciate first- ing Armenia, the Philippines, and El Salvador. hand why our merchant marine has long been IN HONOR OF JOHNNIE JOHNSON They have also responded to emergencies called the nation's fourth arm of defense . . . closer to home including the bombing of the The war in the Persian Gulf is over but the Federal building in Oklahoma City, Hurricane HON. DENNIS J. KUCINICH mechant marine's contribution to our nation George, and Hurricane Mitch. Most recently OF OHIO continues. In war, merchant seamen have the Miami-Dade County Fire and Rescue IN THE HOUSE OF REPRESENTATIVES long served with valor and distinction by car- Team has assisted in earthquake disaster re- Thursday, November 4, 1999 rying critical supplies and equipment to our lief in Turkey and in Taipei, Taiwan. troops in far away lands. In peacetime, the Mr. KUCINICH. Mr. Speaker, I rise today to The Miami-Dade County Fire and Rescue honor the beloved rock and roller, Johnnie merchant marine has another vital roleÐcon- Team has specialized equipment and K±9 tributing to our economic security by linking us Johnson, for his monumental contributions he units trained to find people trapped in col- has made to American music over the past to our trading partners around the world and lapsed buildings. Their technical response providing the foundation for our ocean com- half-century. The rock and roll community will team members are experts in vehicle extri- merce.'' recognize him for his accomplishments by cation, confined space rescue, and rope res- The maritime industry is not only important naming December 1, 1999 ``Johnnie Johnson cue. Additionally, their department maintains a to our nation's economic and military security. Day'' at the Rock and Roll Hall of Fame in mass casualty bus and mobile command vehi- It is also of particular importance to my State Cleveland, Ohio. cle for large scale incident response. of Louisiana. A recent report concludes that It all began on New Year's Eve 1952. The The contributions of the Miami-Dade Fire ``the ports of Louisiana and the maritime in- saxophonist for the Johnnie Johnson Trio fell and Rescue Team to the humanitarian relief dustry are crucial parts of the Louisiana econ- ill and could not perform. Johnnie knew of a community are invaluable. I know the House omy.'' It calculates that in 1997, Louisiana re- local guitar player named Chuck Berry, who will join me in paying tribute to this out- alized a ``total economic impact [of] $28.1 bil- agreed to sit in for the occasion. The evening standing team of people and wish them con- lion'' from the activities of our State's ports, was a smashing success and Berry instantly tinued success in their endeavors. steamship and tug and barge companies, became a member of the Johnnie Johnson f firms providing shore side services, and other Trio. As their popularity grew, it was evident entities engaged in the maritime, transpor- NATIONAL SECURITY SEALIFT that Berry had a flare for entertaining audi- tation and related service and supply indus- ENHANCEMENT ACT OF 1999 ences. Because of Berry's business insight, tries. We should not allow these economic Johnnie agreed to make him the headliner. benefits to be lost to Louisiana, any other They decided that Berry would write the lyrics, HON. JIM McCRERY State or to our nation as a whole. and then he and Johnnie would put the music OF LOUISIANA I remain convinced that the best way to en- behind them. They eventually went on to IN THE HOUSE OF REPRESENTATIVES sure that our nation continues to have the mili- record their first album, Maybellene, in 1955 Thursday, November 4, 1999 tarily-useful commercial vessels and trained and later great hits including Roll Over Bee- and loyal citizen crews we need to support our thoven, Rock and Roll Music, and Back in the Mr. MCCRERY. Mr. Speaker, today my interests around the world is to pursue policies USA. friend from Louisiana, Mr. JEFFERSON and I enabling our maritime industry to flourish in Although not fully credited in the past, are introducing comprehensive legislation to peacetime. The place to start, without ques- Johnnie Johnson has become widely recog- address provisions of the tax code that have tion, is the tax code. nized as the best blues pianist in the world led to the decline of our domestic maritime in- A review of foreign tax laws demonstrates and holder of the trademarks ``Father of Rock dustry. that the decline in our merchant marine can & Roll'' and ``Father of Rock & Roll Piano.'' The last fifty years have seen a steady ero- be traced to the favorite tax benefits offered Recently, Johnnie Johnson has won several sion of the size and capacity of the U.S.-flag by other countries. In 1995, United States-flag ``Best Pianist'' awards as well as receiving the merchant marine. In 1947, more than 2,300 vessel carriers presented testimony to the Lifetime Achievement Award from the River- ships flew the Stars and Stripes. That figure Congress which summarized the impact Amer- front Times Music Magazine and the city of St. has shrunk by nearly 90% since then. Amaz- ican tax laws have on American vessels and E2270 CONGRESSIONAL RECORD — Extensions of Remarks November 4, 1999 described, in terms as true today as they were age of the world's shipping against which from the East Rutherford school system after then, how these laws favor foreign shipping United States-flag vessels must compete are twenty-three years. operations: totally exempt from all income taxes. Throughout her career, Marlene's teaching `Ù.S.-based liner companies are subject to To increase the employment opportunities was characterized by a true commitment to significantly higher taxes than their foreign- for American merchant mariners aboard Amer- her students' learning and her unending en- based counterparts . . . [A]s a result of ship- ican owned vessels engaged in the foreign thusiasm for imparting knowledge to them. Her ping tax exemptions, deferral devices, and ac- trades, this bill would extend the existing for- integrity, sense of responsibility, and profes- celerated depreciation, many of our foreign eign source income exclusion to merchant sionalism made her a role model, not only for competitors pay virtually no income taxes seamen. At present, this exclusion, contained her students but for her colleagues as well. [and] neither do their crews under many for- in section 911 of the Internal Revenue Code, Marlene Coviello's resourcefulness and cre- eign tax regimes. Yet here at home, even in is available to Americans working outside the ativity as an educator enabled her to meet the our unprofitable years, we are subject to the United States. As a result, it costs vessel op- changing needs of her students in the con- Alternative Minimum Tax. Consequently, U.S.- erators considerably more to hire Americans stantly evolving field of education. By teaching flag operators must earn more in the market- than it costs foreign vessel operators to hire her students to love learning, she dem- place than their competitors in order to earn nationals from the many countries that limit or onstrated why these qualities are a teacher's the same amount for reinvestment or distribu- exempt income taxation imposed on their greatest assets. tion to shareholders.'' mariners. Clearly, one of the goals of the ex- Her smile, sense of humor, and vivacity de- Strengthening the economic viability and isting section 911 is to promote America's na- fine her as an individual and illustrate why her competitiveness of United States-flag vessel tional interests through the employment of fellow teachers enjoyed working with Marlene operations requires us to adapt the tax regime American citizens. Ensuring that the United and why her students learned so much from governing our merchant marine to the realities States has a sufficient number of loyal, trained her. Marlene's determination and strength of of today's international shipping environment. American merchant mariners to crew the gov- character enabled her to prepare the children Earlier this year, I introduced H.R. 2159, ernment-owned and private vessels needed of East Rutherford for the challenges of adult- which is intended to assist American vessel during war or other emergency is a key com- hood. owners to accumulate the private capital nec- ponent of America's sealift capability. Extend- I would like to join Marlene Coviello's stu- essary to build modern, efficient and economi- ing section 911 to American mariners will, by dents, family and fellow teachers in wishing cal commercial vessels in United States ship- increasing their opportunity for employment, her the very best as she prepares to embark yards. It would do so by amending the existing augment America's available manpower and on the next chapter in her life and in thanking merchant marine Capital Construction Fund seapower force. her for twenty-three years of service on behalf (CCF) program. The existing program allows Finally, the bill recognizes that the tax bene- of her community. an American citizen to deposit the earnings fits otherwise available through the legislation f from various United States-built, United can be rendered meaningless through the op- States-flag vessels into a tax deferred CCF to eration of the Alternative Minimum Tax (AMT). CONGRATULATING JUSTIN ‘‘JO be used solely to build vessels in American To further enhance the competitiveness of MO’’ ROBINSON, OF SIKESTON, shipyards. The deferred tax is recouped by the American flag vessel operations, our legisla- MISSOURI ON HIS RECOGNITION Treasury through reduced depreciation be- tion repeals the AMT with respect to shipping BY THE ‘‘DAUGHTERS OF SUN- cause the tax basis of vessels built with CCF income earned from the operation of U.S.-flag SET’’ monies is reduced on a dollar-for-dollar basis. vessels in the foreign trades. Without this pro- The provisions of H.R. 2159 are incor- vision, the maritime industry might find that the HON. JO ANN EMERSON porated into the legislation we are introducing other changes contemplated in this legislation OF MISSOURI today. It will, among other things, allow earn- are but hollow promises. IN THE HOUSE OF REPRESENTATIVES ings from the operation of United States-flag Today, American vessels and American Thursday, November 4, 1999 foreign built commercial vessels, and the merchant mariners are forced to compete in amount of the duty arising from foreign ship an environment largely dominated by heavily Mrs. EMERSON. Mr. Speaker, on Saturday, repairs, to be deposited into a Capital Con- subsidized and foreign state-owned fleets as November 13, 1999, Justin ``Jo Mo'' Robinson struction Fund in order to increase the amount well as fleets registered in flag-of-convenience is being honored by the Sikeston, MO of capital available to build vessels in our countries that are effectively tax havens for ``Daughters of Sunset'' at their 15th Annual country. Equally important, my legislation will these ships. As a result, U.S.-flag ships ply Recognition Program. I would like to extend allow CCF monies to be withdrawn to build, in the oceans at a significant economic dis- my congratulations to Justin who is being rec- the United States, a vessel to be operated in advantage. Further erosion of our seapower ognized on this day as the Outstanding Ath- the oceangoing domestic trades in order to threatens America's defense capabilities and lete of The Year. further enhance the modernization and growth the economy of states like Louisiana. In re- Justin is the son of Frank and Jeanette of this important segment of our maritime in- sponse, we can and should take aggressive McCaster. He is the youngest of six children, dustry. It will further allow these funds to be action in this area and the legislation being in- four boys and two girls. Justin is a senior at used to acquire containers or trailers for use troduced today is a positive step in that direc- Sikeston Senior High School. on a United States-flag vessel, and allows tion. Justin has played sports for several years, these monies to be used in conjunction with I intend to request Chairman ARCHER to starting with Little League football, baseball the lease of a United States-built vessel, or schedule a hearing before the Ways and and basketball. In his spare time, Justin en- trailer or container, in order to better reflect Means Committee next year to explore the joys fishing and playing pool. His greatest the realities of current ship financing arrange- ways in which the tax code hinders our com- love, though, is football. ments. Finally, in order to ensure that the full petitiveness on the open seas. I look forward According to Justin's football coach, Charlie intended benefits of these changes and the to working with Congressman JEFFERSON and Vickery, Justin's football achievement include Capital Construction Fund are realized, our all of my colleagues to see that meaningful tax senior running back and 1999 football captain. legislation removes the Capital Construction relief is enacted for the maritime industry. Justin leads the Southeast Missouri area in Fund as an alternative minimum tax adjust- f rushing yards at 1,464, which is currently third ment item. in Sikeston history for single season yards. In addition, this bill will increase international IN HONOR OF MARLENE COVIELLO Justine also has 20 touchdowns, which ranks competitiveness by allowing the owner of any him second in Southeast Missouri, and he is United States-flag vessel engaged in the for- HON. STEVEN R. ROTHMAN tied for second in single season touchdowns eign trades to elect to fully expense United OF NEW JERSEY in Sikeston Senior High School Bulldog States-flag vessels in the year in which they IN THE HOUSE OF REPRESENTATIVES records. With three games remaining in this acquired and documented under the United year's season, Justin has an excellent chance States-flag. Today, the United States has a Thursday, November 4, 1999 to break the single season rushing record of ten-year depreciation schedule while foreign Mr. ROTHMAN. Mr. Speaker, I rise today to 1,771 yards held by Tiger Boyd and the single nations generally allow much more aggressive join the East Rutherford Educational Commu- season touchdown record of 21 also held by depreciation schedules. In addition, countries nity in recognizing December as ``Marlene Boyd. Justin has chosen as a second team such as the Bahamas, Cyprus, Liberia and Coviello Month'' and in paying tribute to Mar- All-Conference Running Back as a junior in Panama which register a significant percent- lene Coviello on the occasion of her retirement 1998. CONGRESSIONAL RECORD — Extensions of Remarks E2271 Justin's role model is one of Sikeston, MO's CONGRATULATING JERI EIGNER of Planned Parenthood and as a volunteer at greatest players, James Wilder. After grad- the clinic. She has also worked as a docent at uating, Justin plans to attend the University of HON. LOIS CAPPS the Santa Barbara Museum of Art and as a Arkansas to play football and run track. He OF CALIFORNIA member of the Hope Ranch Board. would like to earn a degree in physical edu- IN THE HOUSE OF REPRESENTATIVES Perhaps Jeri's most glowing accomplish- cation. One of Justin's greatest ambitions is to Thursday, November 4, 1999 play professional football, but he plans to re- ment is her leadership efforts to open the turn to Sikeston, MO to share his accomplish- Mrs. CAPPS. Mr. Speaker, today I rise to beautiful new Jewish Community Center, ments with all those who have supported and bring to the attention of my colleagues the out- which has become a treasured resource for loved him. standing work of Jeri Eigner. On Sunday, No- the entire Santa Barbara community. As Cam- vember 7, Jeri will receive the Distinguished Justin often says that without his mother's paign Chair and past president of the Santa love and faith in him, it's hard to say where he Community Service Award from the Anti-Defa- Barbara Jewish Federation, Jeri was a driving might be. Justin offers this advice to his peers, mation League and the Santa Barbara B'nai ``Stay in school and be the best you can be, Brith Lodge. force behind the Center and is responsible for and make sure to always listen to your par- As someone who has worked closely with developing many of its dynamic programs and ents.'' the ADL in its efforts to promote tolerance and services. Congratulations, Justin, on your recognition combat hatred and prejudice, I am pleased Jeri and her husband Stan are shining ex- by the ``Daughters of Sunset.'' Your achieve- that this prominent organization has chosen to amples of individuals who believe passionately ments as an athlete and as a faithful son honor Jeri. They could not have made a wiser in serving the common good. I am proud of make you a true role model for your friends selection. and peers in Sikeston. Your dedication to For nearly twenty years, Jeri has distin- their accomplishments and I am pleased to being the best that you can be will take you guished herself as a tireless community activ- announce Jeri's award on the floor of the a long way in realizing all of your hopes and ist in a wide range of critical issues. Among House. dreams for the future. other positions, Jeri has served on the board Thursday, November 4, 1999 Daily Digest

HIGHLIGHTS Senate agreed to the Financial Services Modernization Act Conference Report. Senate and House passed H.J. Res. 75, Continuing Appropriations. House agreed to the conference report on S. 900, Gramm, Leach, Bliley Act—clearing the measure for the President. Senate S. 276, for the relief of Sergio Lozano, Faurico Chamber Action Lozano and Ana Lozano, with an amendment in the Routine Proceedings, pages S13871–S14049 nature of a substitute. Measures Introduced: Sixteen bills and two resolu- S. 302, for the relief of Kerantha Poole-Christian. tions were introduced, as follows: S. 1851–1866, S.J. S. 1019, for the relief of Regine Beatie Edwards. Res. 37, and S. Res. 220. Pages S13971±72 S. 1295, to designate the United States Post Of- Measures Reported: Reports were made as follows: fice located at 3813 Main Street in East Chicago, In- H.R. 100, to establish designations for United diana, as the ‘‘Lance Corporal Harold Gomez Post States Postal Service buildings in Philadelphia, Office’’. Pennsylvania. S. 1418, to provide for the holding of court at H.R. 197, to designate the facility of the United Natchez, Mississippi in the same manner as court is States Postal Service at 410 North 6th Street in Gar- held at Vicksburg, Mississippi. den City, Kansas, as the ‘‘Clifford R. Hope Post Of- S. 1809, to improve service systems for individ- fice’’. uals with developmental disabilities, with an amend- H.R. 915, to authorize a cost of living adjustment ment in the nature of a substitute. Page S13968 in the pay of administrative law judges. Measures Passed: H.R. 1191, to designate certain facilities of the United States Postal Service in Chicago, Illinois. Continuing Appropriations: Senate passed H.J. H.R. 1251, to designate the United States Postal Res. 75, making further continuing appropriations Service building located at 8850 South 700 East, for the fiscal year 2000, clearing the measure for the Sandy, Utah, as the ‘‘Noal Cushing Bateman Post President. Page S13925 Office Building’’. John H. Chafee Coastal Barrier Resources Sys- H.R. 1327, to designate the United States Postal tem: Senate passed S. 1866, to redesignate the Coast- Service building located at 34480 Highway 101 al Barrier Resources System as the ‘‘John H. Chafee South in Cloverdale, Oregon, as the ‘‘Maurine B. Coastal Barrier Resources System’’. Pages S14005±07 Neuberger United States Post Office’’. Denying Safe Havens to International and War H.R. 1377, to designate the facility of the United Criminals Act: Senate passed S. 1754, entitled the States Postal Service at 13234 South Baltimore Ave- ‘‘Denying Safe Havens to International and War nue in Chicago, Illinois, as the ‘‘John J. Buchanan Post Office Building’’, with an amendment in the Criminals Act of 1999’’, after agreeing to the com- nature of a substitute. mittee amendment in the nature of a substitute, and H.J. Res. 54, granting the consent of Congress to the following amendment proposed thereto: the Missouri-Nebraska Boundary Compact. Pages S14007±13 H. Con. Res. 141, celebrating One America. Grassley (for Leahy/Hatch) Amendment No. 2510, S. Res. 118, designating December 12, 1999, as to make certain technical amendments. ‘‘National Children’s Memorial Day’’. Pages S14009±11 D1257

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 D1258 CONGRESSIONAL RECORD — DAILY DIGEST November 4, 1999 Native Hawaiian Housing Assistance: Senate commending the personnel of Eglin Air Force Base, passed S. 225, to provide Federal housing assistance Florida, for their participation and efforts in support to Native Hawaiians, after agreeing to the com- of the North Atlantic Treaty Organization’s (NATO) mittee amendment in the nature of a substitute, and Operation Allied Force in the Balkan Region, and the following amendment proposed thereto: the resolution was then agreed to. Page S14047 Pages S14014±30 College Scholarship Fraud Prevention Act: Sen- Grassley (for Inouye) Amendment No. 2511, to ate passed S. 1455, to enhance protections against make certain revisions. Page S14022 fraud in the offering of financial assistance for col- American Indian Education Foundation: Senate lege education, after agreeing to the committee passed S. 1290, to amend title 36 of the United amendment in the nature of a substitute. States Code to establish the American Indian Edu- Pages S14047±49 cation Foundation. Pages S14030±31 House Child Care Center Enrollment: Com- Indian Water Rights: Senate passed S. 438, to mittee on Rules and Administration was discharged provide for the settlement of the water rights claims from further consideration of H.R. 3122, to permit of the Chippewa Cree Tribe of the Rocky Boy’s Res- the enrollment in the House of Representatives ervation, after agreeing to the following amendment Child Care Center of children of Federal employees proposed thereto: Pages S14031±36 who are not employees of the legislative branch, and Grassley (for Burns/Baucus) Amendment No. the bill was then passed, clearing the measure for the 2512, in the nature of a substitute. Pages S14031±32 President. Page S14049 Serbia Democratization Act: Senate passed S. Bankruptcy Reform Act: Senate considered S. 625, 720, to promote the development of a government to amend title 11, United States Code, agreeing to in the Federal Republic of Yugoslavia (Serbia and Montenegro) based on democratic principles and the committee amendments by unanimous consent. rule of law, and that respects internationally recog- Pages S13929±67 nized human rights, to assist the victims of Serbian A unanimous-consent agreement was reached pro- oppression, to apply measures against the Federal viding for consideration of the bill and amendments Republic of Yugoslavia, after agreeing to the com- to be proposed thereto. Page S13929 mittee amendment in the nature of a substitute. A further unanimous-consent agreement was Pages S14036±45 reached providing that following the disposition of all amendments, the bill be advanced to third read- Freedom to E-File Act: Committee on Agri- ing, that the Senate proceed to H.R. 833, House culture, Nutrition, and Forestry was discharged from companion measure, that the Senate strike all after further consideration of S. 777, to require the De- partment of Agriculture to establish an electronic fil- the enacting clause and insert in lieu thereof the text ing and retrieval system to enable the public to file of S. 625, as amended, and the House bill, as all required paperwork electronically with the De- amended, be read for a third time and passed, that partment and to have access to public information the Senate insist on its amendment, request a con- on farm programs, quarterly trade, economic, and ference with the House thereon, and S. 625 be production reports, and other similar information, placed back on the Senate calendar. Page S13929 and the bill was then passed after agreeing to the A unanimous-consent agreement was reached pro- following amendment proposed thereto: viding for further consideration of the bill on Friday, Pages S14045±46 November 5, 1999. Page S13929 Grassley (for Fitzgerald) Amendment No. 2513, Financial Services Modernization Conference Re- in the nature of a substitute. Pages S14045±46 port: By 90 yeas to 8 nays, 1 responding present Immigration and Nationality Act Amendment: (Vote No. 354), Senate agreed to the conference re- Senate passed S. 1753, to amend the Immigration port on S. 900, to enhance competition in the finan- and Nationality Act to provide that an adopted alien cial services industry by providing a prudential who is less than 18 years of age may be considered framework for the affiliation of banks, securities a child under such Act if adopted with or after a firms, and other financial service providers. sibling who is a child under such Act. Pages S13871±81, S13883±S13917 Pages S14046±47 Swearing In of Senator Chafee: Senator Lincoln D. Commending Eglin Air Force Base Personnel: Chafee, of Rhode Island, was sworn in to fill the un- Committee on Armed Services was discharged from expired term, ending January 3, 2001, caused by the further consideration of S. Res. 185, recognizing and death of Senator John H. Chafee. Pages S13881±83

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 November 4, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D1259 Federal Financial Assistance Management Im- Robb, and Mr. Veroneau was introduced by Senator provement Act: Senate concurred in the amend- Snowe. ment of the House to S. 468, to improve the effectiveness and performance of Federal financial assist- LOCAL PHONE COMPETITION ance programs, simplify Federal financial assistance Committee on Commerce, Science, and Transportation: application and reporting requirements, and improve Committee concluded hearings on local voice and the delivery of services to the public. Pages S14013±14 data marketplace competition, examining how to in- Messages From the House: Page S13967 crease consumer choice in local telephone markets, after receiving testimony from Royce J. Holland, Al- Communications: Pages S13967±68 legiance Telecom, Inc, Dallas, Texas; Charles S. Executive Reports of Committees: Pages S13968±71 Houser, TriVergent Communications, Inc., Green- Statements on Introduced Bills: Pages S13972±84 ville, South Carolina; Roy Neel, United States Telecom Association, Washington, D.C.; Daniel O. Additional Cosponsors: Pages S13984±85 Pegg, Leap Wireless International, Inc., San Diego, Amendments Submitted: Pages S13986±90 California; and Rick Tidwell, Birch Telecom, Inc., Authority for Committees: Pages S13990±91 Emporia, Kansas. Additional Statements: Pages S13991±94 CHECHNYA CONFLICT Text of S. 976, as Previously Passed: Committee on Foreign Relations: Committee concluded Pages S13994±S14005 hearings on the conflict in Chechnya and its implica- Record Votes: One record vote was taken today. tions for United States relations with Russia, after (Total—354) Page S13917 receiving testimony from Stephen R. Sestanovich, Adjournment: Senate convened at 9:30 a.m., and Ambassador at Large and Special Advisor to the Sec- adjourned at 8:18 p.m., until 9:30 a.m., on Friday, retary of State for the New Independent States; Elena November 5, 1999. (For Senate’s program, see the Bonner, Andrei Sakharov Foundation, Brookline, remarks of the Acting Majority Leader in today’s Massachusetts; and Paul A. Goble, Radio Free Eu- Record on page S14049.) rope/Radio Liberty, Washington, D.C. Committee Meetings U.S./NIGERIA RELATIONS Committee on Foreign Relations: Committee concluded (Committees not listed did not meet) hearings on United States relations with Nigeria, focusing on Nigeria’s transition to civilian rule, de- STEM CELL RESEARCH mocracy, and human rights, after receiving testi- Committee on Appropriations: Subcommittee on Labor, mony from Thomas Pickering, Under Secretary of Health and Human Services, and Education con- State for Political Affairs; Jean Herskovits, State cluded hearings to examine stem cell research fund- University of New York at Purchase, New York; ing issues, focusing on the National Bioethics Advi- Adotei Akwei, Amnesty International, Washington, sory Commission report ‘‘Ethical Issues in Human D.C. Stem Cell Research’’, after receiving testimony from Senator Thurmond; Representative Dickey; Frank E. BUSINESS MEETING Young, Reformed Theological Seminary, Wash- Committee on the Judiciary: Committee ordered favor- ington, D.C., former Commissioner, Food and Drug ably reported the following business items: Administration; and James F. Childress, University S. 276, for the relief of Sergio Lozano, Faurico of Virginia, Charlottesville, on behalf of the National Lozano and Ana Lozano, with an amendment in the Bioethics Advisory Commission. nature of a substitute; S. 302, for the relief of Kerantha Poole-Christian; NOMINATIONS S. 1019, for the relief of Regine Beatie Edwards; Committee on Armed Services: Committee concluded H. Con. Res. 141, celebrating One America; hearings on the nominations of Alphonso Maldon, S. Res. 118, designating December 12, 1999, as Jr., of Virginia, to be Assistant Secretary for Force ‘‘National Children’s Memorial Day’’; Management Policy, and John K. Veroneau, of Vir- H.J. Res. 54, granting the consent of Congress to ginia, to be Assistant Secretary for Legislative Af- the Missouri-Nebraska Boundary Compact; fairs, both of the Department of Defense, after the S. 1418, to provide for the holding of court at nominees testified and answered questions in their Natchez, Mississippi in the same manner as court is own behalf. Mr. Maldon was introduced by Senator held at Vicksburg, Mississippi; and

VerDate 29-OCT-99 07:16 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 D1260 CONGRESSIONAL RECORD — DAILY DIGEST November 4, 1999 The nominations of Ann Claire Williams, of Illi- and Gene Kimmelman, Consumers Union, both of nois, to be United States Circuit Judge for the Sev- Washington, D.C.; and Tod A. Jacobs, Sanford C. enth Circuit, Faith S. Hochberg, to be United States Bernstein and Company, Inc., New York, New District Judge for the District of New Jersey, Vir- York. ginia A. Phillips, to be United States District Judge for the Central District of California, Donna A. NURSING HOME CARE Bucella, to be United States Attorney for the Middle Special Committee on Aging: Committee concluded District of Florida, and Daniel J. French, to be United States Attorney for the Northern District of hearings on certain initiatives to improve nursing New York. home quality of care, focusing on the Health Care Financing Administration’s regional offices and their MCI WORLDCOM/SPRINT MERGER ability to oversee state agencies they contract with to Committee on the Judiciary: Committee concluded ensure that nursing homes comply with federal qual- hearings to examine the possible affects the proposed ity standards, after receiving testimony from Wil- merger of MCI WorldCom and Sprint would have liam J. Scanlon, Director, Health Financing and on competition and consumer choice in the tele- Public Health Issues, Health, Education, and communications industry, and S.1854, to reform the Human Services Division, General Accounting Of- Hart-Scott-Rodino Antitrust Improvements Act of fice; Michael Hash, Deputy Administrator, Health 1976, after receiving testimony from Bernard J. Care Financing Administration, Department of Ebbers, MCI WorldCom, Clinton, Mississippi; Wil- Health and Human Services; and Steve White, Ra- liam T. Esrey, Sprint Corporation, Westwood, Kan- leigh, North Carolina, on behalf of the Association sas; James F. Rill, Collier, Shannon, Rill and Scott, of Health Facility Survey Agencies. h House of Representatives Suspension—Overtime for Fire Protection Em- Chamber Action ployees: The House passed H.R. 1693, to amend Bills Introduced: 15 public bills, H.R. 3217–3231; the Fair Labor Standards Act of 1938 to clarify the and 2 resolutions, H. Con. Res. 220, and H. Res. overtime exemption for employees engaged in fire 361 were introduced. Page H11556 protection activities. Pages H11499±H11500 Reports Filed: Reports were filed today as follows: Suspension Failed—Phonics Instruction: The H.R. 1725, to provide for the conveyance by the House failed to agree to H. Con. Res. 214, express- Bureau of Land Management to Douglas County, ing the sense of Congress that direct systematic Oregon, of a county park and certain adjacent land phonics instruction should be used in all schools by (H. Rept. 106–446); a 2⁄3 yea and nay vote of 224 yeas to 193 nays with H.R. 2541, to adjust the boundaries of the Gulf 2 voting ‘‘present’’, Roll No. 564. Islands National Seashore to include Cat Island, Mis- Pages H11489±99, H11500±01 sissippi, amended (H. Rept. 106–447); Further Continuing Appropriations: The House H.R. 2879, to provide for the placement at the passed H.J. Res. 75, making further continuing ap- Lincoln Memorial of a plaque commemorating the propriations for the fiscal year 2000 by yea and nay speech of Martin Luther King, Jr., known as the ‘‘I vote of 417 yeas to 6 nays, Roll No. 565. Have A Dream’’ speech (H. Rept. 106–448); Pages H11501±07 H.R. 1832, to reform unfair and anticompetitive Considered pursuant to a previous order of the practices in the professional boxing industry, amend- House. Earlier, Representative Goss asked unanimous ed (H. Rept. 106–449, Pt. 1). Pages H11555±56 consent that it be in order consider the joint resolu- Guest Chaplain: The prayer was offered by the tion in the House. Pages H11483±84 guest Chaplain, Rev. Allen P. Novotny, Society of District of Columbia Appropriations: The House Jesus of Washington, D.C. Page H11483 disagreed to the Senate amendment to H.R. 3194, Journal Vote: Agreed to the Speaker’s approval of making appropriations for the government of the the Journal of Wednesday, November 3, by a yea District of Columbia and other activities chargeable and nay vote of 346 yeas to 65 nays, Roll No. 563. in whole or in part against revenues of said District Pages H11483, H11488±89 for the fiscal year ending September 30, 2000, and

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 November 4, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D1261 agreed to a conference. Appointed as conferees: by a yea and nay vote of 362 yeas to 57 nays, Roll Chairman Young of Florida and Representatives No. 570. Pages H11526±51 Lewis of California and Obey. Page H11507 Earlier, agreed to H. Res. 355, the rule that pro- Considered pursuant to a previous order of the vided for consideration of the conference report by a House. Earlier, Representative Goss asked unanimous recorded vote of 355 ayes to 79 noes, Roll No. 569. consent that it be in order for a motion to disagree Pages H11513±26 to the Senate amendment and agree to a conference. Order of Procedure: Pursuant to H. Res. 353, Page H11483 Representative Tancredo announced that H.R. 3075, Question of Privilege: Representative Visclosky Medicare Addbacks would be considered under sus- rose to a point of privilege, offered a resolution pre- pension of the rules. Page H11554 viously noted, and asked for its immediate consider- Recess: The House recessed at 11:44 p.m. and re- ation. The form of the resolution called on the Presi- convened at 12:52 a.m. on Friday, Nov. 5. dent to abstain from renegotiating international Page H11554 agreements governing antidumping and countervailing measures. The Chair ruled that the resolution Senate Messages: Messages received from the Senate did not constitute a question of privilege, and Rep- appear on pages H11483 and H11513. resentative Visclosky moved to appeal the ruling of Referrals: S. 185 was referred to the Committee on the chair. Subsequently, the House agreed to the Ways and Means and S. 976 was referred to the LaHood motion to table that appeal by a yea and Committee on Commerce. Page H11555 nay vote of 218 yeas to 204 nays, Roll No. 566. Amendments: Amendments ordered printed pursu- Pages H11507±09 ant to the rule appear on pages H11557–63. Question of Privilege: Representative Wise rose to Quorum Calls—Votes: Five yea and nay votes and a point of privilege, offered a resolution previously three recorded votes developed during the pro- noted, and asked for its immediate consideration. ceedings of the House today and appear on pages The form of the resolution called on the President H11488–89, H11501, H11506–07, H11508–09, to abstain from renegotiating international agree- H11510, H11512–13, H11526, and H11551. There ments governing antidumping and countervailing were no quorum calls. measures. The Chair ruled that the resolution did not constitute a question of privilege, and Represent- Adjournment: The House met at 10:00 a.m. and ative Wise moved to appeal the ruling of the chair. adjourned at 12:53 a.m. on Friday, Nov. 6. Subsequently, the House agreed to the Kolbe motion to table that appeal by a yea and nay vote of 216 Committee Meetings yeas to 201 nays, Roll No. 567. Pages H11509±10 U.S. COMMISSION ON NATIONAL Question of Privilege: Representative Kucinich rose SECURITY/21ST CENTURY REPORT to a point of privilege, offered a resolution previously Committee on Armed Services: Subcommittee on Mili- noted, and asked for its immediate consideration. tary Personnel held a hearing on the report of the The form of the resolution called on the President United States Commission on National Security/21st to abstain from renegotiating international agree- Century. Testimony was heard from the following ments governing antidumping and countervailing members of the U.S. Commission on National Secu- measures. The Chair ruled that the resolution did rity/21st Century: Charles Moskos; John Hillen; not constitute a question of privilege, and Represent- Robert Killebrew; and Richard Kohn. ative Kucinich moved to appeal the ruling of the chair. Subsequently, the House agreed to the Kolbe EPA’S BROWNFIELDS CLEANUP motion to table that appeal by a recorded vote of Committee on Commerce: Subcommittee on Oversight 214 ayes to 204 noes, Roll No. 568. Pages H11510±13 and Investigations held a hearing on Problems with Rules Laid on the Table: H. Res. 358 and H. Res. EPA’s Brownfields Cleanup Revolving Loan Fund 360 were laid on the table. Page H11513 Program. Testimony was heard from Timothy Fields, Assistant Administrator, Office of Solid Waste and Recess: The House recessed at 3:11 p.m. and recon- Emergency Response, EPA; Darsi Foss, Brownfields vened at 7:40 p.m. Page H11513 Section Chief, Bureau for Remediation and Redevel- Gramm, Leach, Bliley Act: The House agreed to opment, Department of Natural Resources, State of the conference report on S. 900, to enhance competi- Wisconsin; Dannel P. Malloy, Mayor, Stamford, tion in the financial services industry by providing Connecticut; and Thomas Ahern, Senior Project a prudential framework for the affiliation of banks, Manager, Brownfields and Industrial Development, securities firms, and other financial service providers Redevelopment Authority, Boston, Massachusetts.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00005 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 D1262 CONGRESSIONAL RECORD — DAILY DIGEST November 4, 1999 WTO 2000 mony was heard from Senator DeWine; Representa- Committee on Commerce: Subcommittee on Tele- tives Kaptur, Ganske and Farr of California; Kath- communications, Trade, and Consumer Protection erine Stevenson, Associate Director, Cultural Re- held a hearing on WTO 2000: The Next Round. sources, Stewardship and Partnerships, National Park Testimony was heard from Joseph Papovich, Assist- Service, Department of the Interior; and public wit- ant U.S. Trade Representative, Services, Investment nesses. and Intellectual Property, Office of the U.S. Trade FOREIGN OPERATIONS APPROPRIATIONS Representative; and public witnesses. ACT, 2000 PROJECT EXILE Committee on Rules: Granted by voice vote, a struc- Committee on Government Reform: Subcommittee on tured rule on H.R. 3196, making Appropriations for Criminal Justice, Drug Policy and Human Resources foreign operations, export financing, and related pro- held a hearing on Project Exile: A Case Study in grams for the fiscal year ending September 30, 2000, Successful Enforcement. Testimony was heard from providing one hour of debate in the House equally Helen Fahey, U.S. Attorney, Eastern District of Vir- divided and controlled by the chairman and ranking ginia; Mark Earley. Attorney General, State of Vir- minority member of the Committee on Appropria- ginia; and public witnesses. tions. The rule provides that the bill shall be consid- MISCELLANEOUS MEASURES ered as read for amendment. The rule provides that the amendment printed in the report of the Com- Committee on Government Reform: Subcommittee on mittee on Rules shall be in order without interven- Government Management, Information, and Tech- tion of any point of order or demand for a division nology approved for full Committee action, as of the question, shall be considered as read, and shall amended, H.R. 2376, to require agencies to establish be separately debatable for the time specified in the expedited review procedures for granting a waiver to report equally divided and controlled by the pro- a State under a grant program administered by the ponent and an opponent. The rule provides one mo- agency if another State has already been granted a tion to recommit, with or without instructions. Fi- similar waiver by the agency under such program. nally, the rule provides that upon the adoption of AMERICAN PRISONERS—TORTURE BY the resolution, House Resolution 359 is laid on the CUBAN AGENTS table. Committee on International Relations: Held a hearing on Y2K MYTHS AND REALITIES The Cuban Program: Torture of American Prisoners Committee on Science: Subcommittee on Technology, by Cuban Agents. Testimony was heard from the and the Subcommittee on Government Management, following officials of the Department of Defense: Information and Technology of the Committee on Robert L. Jones, Deputy Assistant Secretary, Prisoner Government Reform held a joint hearing on Y2K of War and Missing Personnel Affairs; and Robert Myths and Realities: Responding to the Questions of Destatte, Chief Analyst, POW/Missing Personnel the American Public with 50 Days Remaining Until Office; and public witnesses. January 1, 2000. Testimony was heard from John A. IMMIGRATION REORGANIZATION AND Koskinen, Special Assistant to the President, Chair- IMPROVEMENT ACT man, Y2K Conversion Council; Joel Willemssen, Di- Committee on the Judiciary: Subcommittee on Immi- rector, Civilian Agencies Information Systems, GAO; gration and Claims approved for full Committee ac- and public witnesses. tion, as amended, H.R. 2528, Immigration Reorga- DEFENSE CONTRACT BUNDLING POLICY nization and Improvement Act of 1999. Committee on Small Business: Held a hearing on De- MISCELLANEOUS MEASURES fense Contract Bundling Policy. Testimony was Committee on Resources: Subcommittee on National heard from David R. Oliver, Principal Deputy Parks and Public Lands held a hearing on the fol- Under Secretary, Acquisition and Technology, De- lowing bills: S. 548, Fallen Timbers Battlefield and partment of Defense; and public witnesses. Fort Miamis National Historic Site Act of 1999; H.R. 1668, Loess Hills Preservation Study Act of NEWARK AIRPORT—STRAIGHT OUT 1999; and H.R. 2278, to require the National Park DEPARTURES Service to conduct a feasibility study regarding op- Committee on Transportation and Infrastructure: Sub- tions for the protection and expanded visitor enjoy- committee on Aviation held a hearing on Straight ment of nationally significant natural and cultural Out Departures at Newark Airport. Testimony was resources at Fort Hunter Liggett, California. Testi- heard from Representatives Fossella and Franks of

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00006 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 November 4, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D1263 New Jersey; Arlene B. Feldman, Regional Adminis- Kevin Gover, Assistant Secretary of the Interior for trator, Eastern Region, FAA, Department of Trans- Indian Affairs; Ross Racine, Intertribal Agriculture portation; Chris Bollwage, Mayor, Elizabeth, New Council, Billings, Montana; Delmar Bigby, Indian Jersey; Susan M. Baer, General Manager, New Jersey Land Working Group, Harlem, Montana; Roxane J. Airports, The Port Authority of New York and New Poupart, Lac du Flambeau Band of Lake Superior Jersey; and public witnesses. Chippewa Indians, Lac du Flambeau, Wisconsin; Ben EPA GRANTS MANAGEMENT Black Bear, Jr., Rosebud Sioux Tribal Land Enter- prise, Rosebud, South Dakota; and Shenan R. Committee on Transportation and Infrastructure: Sub- Atcitty, Nordhaus, Haltom, Taylor, Taradash and committee on Oversight, Investigations, and Emer- Frye, Washington, D.C., on behalf of the Shii Shi gency Management held a hearing on EPA Grants Keyah Association. Management. Testimony was heard from the fol- f lowing officials of the EPA: Nikki L. Tinsley, In- spector General; and Romulo L. Diaz, Jr., Assistant COMMITTEE MEETINGS FOR FRIDAY, Administrator, Administration and Management; NOVEMBER 5, 1999 and public witnesses. (Committee meetings are open unless otherwise indicated) BRIEFING—NORTH KOREAN STRATEGIC THINKING Senate Committee on Banking, Housing, and Urban Affairs: to Permanent Select Committee on Intelligence: Met in execu- hold hearings on the nomination of Gregory A. Baer, of tive session to receive a briefing on North Korean Virginia, to be an Assistant Secretary of the Treasury; and Strategic Thinking: One Analyst’s View. The Com- the nomination of Susan M. Wachter, of Pennsylvania, to mittee was briefed by departmental officials. be an Assistant Secretary of Housing and Urban Develop- ment, 10 a.m., SD–538. Joint Meetings Committee on Foreign Relations: to hold hearings to examine issues relating to the International Monetary Fund, INDIAN LAND OWNERSHIP AND LEASING focusing on lessons learned from the Asian financial crisis, Joint Hearing: Committee on Indian Affairs con- 11 a.m., SD–419. cluded joint hearings with the House Committee on Full Committee, to hold hearings on the nomination of Carol Moseley-Braun, of Illinois, to be Ambassador to Resources on S. 1586, to reduce the fractionated New Zealand, 1 p.m., SD–419. ownership of Indian Lands, and S. 1315, to permit the leasing of oil and gas rights on certain lands House held in trust for the Navajo Nation or allotted to a Committee on Resources. Subcommittee on Fisheries Con- member of the Navajo Nation, in any case in which servation, Wildlife and Oceans, oversight hearing to ex- there is consent from a specified percentage interest amine the affects on living marine resources from dredged in the parcel of land under consideration for lease, material disposal or placement in the New York Bight, after receiving testimony from Senator Bingaman; 10 a.m., 1324 Longworth.

VerDate 29-OCT-99 07:00 Nov 05, 1999 Jkt 079060 PO 00000 Frm 00007 Fmt 0627 Sfmt 0627 E:\CR\FM\D04NO9.REC pfrm04 PsN: D04NO9 D1264 CONGRESSIONAL RECORD — DAILY DIGEST November 4, 1999

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Friday, November 5 9 a.m., Friday, November 5

Senate Chamber House Chamber Program for Friday: Senate will continue consideration Program for Friday: Consideration of H.R. 3196, For- of S. 625, Bankruptcy Reform. eign Operations Appropriations Act, 2000 (structured rule, one hour of general debate).

Extensions of Remarks, as inserted in this issue

HOUSE Gejdenson, Sam, Conn., E2267 Rothman, Steven R., N.J., E2270 Gordon, Bart, Tenn., E2265, E2266 Roukema, Marge, N.J., E2268 Capps, Lois, Calif., E2268, E2271 Hulshof, Kenny C., Mo., E2266 Shaw, E. Clay, Jr., Fla., E2269 Chambliss, Saxby, Ga., E2266, E2267 Kucinich, Dennis J., Ohio, E2267, E2269 Shows, Ronnie, Miss., E2267 Davis, Thomas M., Va., E2265 McCrery, Jim, La., E2269 Emerson, Jo Ann, Mo., E2265, E2266, E2267, E2268, McInnis, Scott, Colo., E2265 E2270 Mascara, Frank, Pa., E2268

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