January 9, 1997 EXTENSIONS OF REMARKS 357 EXTENSIONS OF REMARKS

INTRODUCTION OF LEGISLATION People's Commission of Inquiry to discuss so­ Marshall as one of the most influential individ­ lutions to the war. Anderson, along with our uals in the fields of constitutional and civil HON. LINDSEY 0. GRAHAM group, participated in a week of talks in rights law in the 20th century. OF SOUTH CAROLINA France with North Vietnamese and South Viet­ Justice Marshall had a long and distin­ IN THE HOUSE OF REPRESENTATIVES namese delegations and the American ambas­ guished career as an assistant and later chief sador. During our stay he encouraged an counsel for the NAACP. As the lead attorney Thursday, January 9, 1997 open discussion in which he questioned, chal­ in Brown v. Board of Education, Marshall was Mr. GRAHAM. Mr. Speaker, as the 105th lenged and explored solutions to this problem instrumental in convincing the Supreme Court Congress addresses the issue of financing of international scope. to overturn the 1898 separate but equal ruling campaigns, I believe we must first change the Hubert Anderson was born and raised in of Plessy v. Ferguson, and begin the process nature of our election cycle and limit the num­ Dwight, ND. He attended high school in of ending discrimination in public education. ber of tenns a Member can serve. The recent Wahpeton, ND, and in Minneapolis, dropping As a justice of the U.S. Court of Appeals in elections demonstrate that action on both out during his senior year to join the Navy. He the Second Circuit, Marshall wrote over 150 campaign finance reform and term limits is was stationed in Bennuda for part of his tour decisions which included support for immigrant needed and desired by the American people. and was chosen to run the admiral's launch rights, limiting government intrusion in illegal Today, I am introducing legislation that com­ that took President Truman deep sea fishing. search and seizure, double jeopardy and right bines a solution for achieving term limits and An avid sportsman, he played offense and de­ to privacy cases. As U.S. Solicitor General, easing campaign finance burdens. This fense and was captain of the Navy football Marshall won 14 of the 19 cases he presented amendment would limit Members of the House team. He contracted rheumatic fever during before the Supreme Court. to three 4-year terms and limit Senators to two his service and suffered from its effects for the In 1967, Thurgood Marshall became the first 6-year terms. This is a lifetime ban. It would rest of his life. African-American appointed to the U.S. Su­ take effect only on terms of office beginning Hubert finished his high school equivalency preme Court. He served as an Associate Jus­ after the ratification of the amendment. By ex­ degree in the military. He went on to the Uni­ tice on the Court for 24 years, retiring in 1991. tending the terms of Representatives from 2 to versity of Minnesota, the Wahpeton State He left a strong legacy of commitment to the 4 years, we can better limit the influence of School of Science, and graduated magna cum weak and poor in America's justice system. politics and elections in the House and focus laude from Moorhead State University. He Accordingly, I strongly urge my colleagues on better policies and laws for our country. later earned a master's degree and completed to join me in supporting this important legisla­ Additionally, Members of the House would not doctoral work at the University of Minnesota. tion, which will honor the memory of Justice be burdened by increasingly expensive elec­ During his early college career, he played Marshall and help preserve his legacy, by des­ tions every 2 years because the terms would AAA baseball with the Minot, ND, Mallards ignating the U.S. courthouse under construc­ be increased to 4. and pitched against such notables as Satchel tion in White Plains, NY, as the Thurgood Fundamental institutional change . is needed Paige and Roger Maris. Marshall U.S. Courthouse. in order to improve the American people's As an English, drama and debate teacher at confidence in Congress and to return to the Hopkins High School for 30 years, Hubert An­ Founding Fathers' ideal of a citizen legislature. derson was a mentor to students in and out of TODD LANE ELEMENTARY'S GIFT We should abide by the will of the people and the classroom. He led several debate teams to TO THE BEAVER COUNTY TIMES end career politics as we know it. While term State championships, served on the faculty GIVE-A-CHRISTMAS CAMPAIGN limits will not solve all our country's problems, senate, and supported the American Field or the need to overhaul our campaign finance Service Program. HON. RON KLINK Hubert Anderson will be remembered as an system, it is a large step in the right direction. OF PENNSYLVANIA avid reader, a lover of language, and a re­ It continues the process of reform and markable individual whose ideas reached far IN THE HOUSE OF REPRESENTATIVES strengthens the integrity of Congress. Let us Thursday, January 9, 1997 succeed where we failed last Congress and and wide. His genuine enthusiasm for Amer­ ican politics prompted people of all ages to pass term limits. Mr. KLINK. Mr. Speaker, I rise today in become interested in government and civil order to recognize the students and faculty of service. Because I experienced Hubert Ander­ Todd Lane Elementary School in Center IN MEMORY OF HUBERT A. AN- son's vitality and wisdom firsthand, I've no Township, Pennsylvania. DERSON-CIVIL RIGHTS AND doubt that this tireless role model made Hop­ For the past quarter century, the Beaver WORLD PEACE ADVOCATE kins, MN, a richer place to live. County Times, in conjunction with the Salva­ As friends and family reflect on his lifetime tion Army holds a donation drive known as the HON. FORTNEY PETE STARK of achievement and scholarship, it is only fit­ Give-A-Christmas Campaign. Its goal is to pro­ ting that we also pay tribute to this great man OF CALIFORNIA vide food and other necessities during the hol­ and good friend. iday season to those who are less fortunate. IN THE HOUSE OF REPRESENTATIVES This year, like the past 20 years, the students Thursday, January 9, 1997 THURGOOD MARSHALL and faculty of Todd Lane Elementary have Mr. STARK. Mr. Speaker, today I wish to COURTHOUSE BILL participated in the Give-A-Christmas Cam­ pay tribute to an educator, activist, and my paign. In an unprecedented showing of sup­ longtime personal friend, Hubert A. Anderson, port Todd Lane was able to raise over who passed away recently in Hopkins, MN, at HON. BENJAMIN A. GILMAN $10,650 in less than 1 month. the age of 68. OF NEW YORK Through various donations as well as a I was privileged to know Hubert Anderson at IN THE HOUSE OF REPRESENTATIVES highly successful candy sale, the students and a special time in our lives and in our Nation's Thursday, January 9, 1997 faculty were able to give their largest donation history. As a grass roots activist, Mr. Anderson Mr. GILMAN. Mr. Speaker, I rise today in ever to the Salvation Army. In the words of took special interest in civil rights issues and strong support of the Thurgood Marshall Principal John Zigerelli, "This year's record­ the anti-Vietnam war movement. In 1970, a Courthouse bill. breaking total collection is a testimony to that group of 31 Americans, including Hubert An­ I do not believe that I am exaggerating accomplishment." Furthermore, the effort put derson and myself, traveled to Paris with the when I state that history will regard Justice forth by Todd Lane shows a true commitment

eThis "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. 358 EXTENSIONS OF REMARKS January 9, 1997 to their community, the 4th Congressional Dis­ in the county and has been the only commu­ As associate vice chancellor for university trict, and our Nation. nity college in northern California to sustain relations at UCLA, John has served as the Wrth the help of the students and faculty of both a television and radio station. chief external relations officer for the institu­ Todd Lane Elementary this year's goal of As the College of San Mateo approaches tion, overseeing the public relations, alumni re­ $67,500 was met and exceeded by thousands. the 21st century, the outlook of the community lations, campus-wide marketing, government Since the advent of the Give-A-Christmas is very bright. For those student that are un­ affairs and special events, and protocol of­ Campaign, more than $1 million has been able to attend 4 year institutions, this college fices. Bringing tremendous vision to this role, contributed. Todd Lane Elementary has con­ is an equal alternative. I am proud to acknowl­ he has been instrumental in UCLA's embrace tributed over $115,000 or 11 percent of that edge the outstanding job the College of San of advanced information technology in its ex­ generous amount. Mateo has done educating our community for ternal affairs programs, and in guiding the uni­ I would like to take this opportunity to ap­ the past 75 years and will continue into the versity onto its present course as a leader on plaud the students and faculty of Todd Lane next century. the information superhighway. Prior to serving Elementary as well the residents of Center in this role, John served as executive director Township who have donated year after year. of the UCLA Alumni Association. His multi­ Without you, Give-A-Christmas would not be INTRODUCING THE ATOMIC faceted career has also included positions as possible. Your contributions have not gone un­ VETERANS MEDAL ACT vice president and general manager of a cable noticed. Also a special thanks to Todd Lane's television station, president of a theater, and program coordinators: Larry Deep, Paul HON.Bill.RICHARDSON president of a trade association. DeFilippi, Peggy Coladonato, Cindy Halsac, OF NEW MEXICO John is a masterful communicator, highly re­ Kathy Fouse, and Principal Zigerelli. They IN THE HOUSE OF REPRESENTATIVES garded for his ability to further mutually re­ should all be commended for their outstanding spected relationships between and among Thursday, January 9, 1997 efforts. communities. Committed to empowering oth­ On behalf of the thousands of families who Mr. RICHARDSON. Mr. Speaker, today I am ers to recognize and actualize their full poten­ have been fed, clothed, and provided with introducing legislation that will award a medal tial, John delivers dozens of presentations Christmas gifts, I stand before my fellow Mem­ for the service of America's atomic veterans. each year on career change, technology, net­ bers of Congress and thank you for a job well My bill will recognize the sacrifice that these working, personal growth and empowerment. done. You have demonstrated the true mean­ long forgotten veterans gave to their country. A Coro alumnus with an extensive record of ing of the holiday season. These soldiers were placed in harm's way by community involvement, he serves on boards their country, and in many cases they were of the Coro Foundation, the East West Play­ unaware of the dangers they faced. Many of ers, the Rose Bowl Operating Co., the Asian COLLEGE OF SAN MATEO'S 75TH these veterans have suffered severe health Pacific Women's Center, and the Council for ANNIVERSARY problems due to the radiation exposure they Advancement and Support of Education. suffered during their service. Recognizing Mr. Speaker, I ask that you join me, our col­ HON. TOM LANTOS these veterans with a medal that signifies their leagues, John's wife, Sarah, and his three OF CALIFORNIA extraordinary contribution to our national de­ children, in recognizing the many important IN THE HOUSE OF REPRESENTATIVES fense is the right thing for America to do. contributions of this remarkable man. For his Thursday, January 9, 1997 I hope that you will join me in working to many year of dedicated service, it is only ap­ pass this bill in the 105th Congress and give propriate that the House recognize John Mr. LANTOS. Mr. Speaker, I would like to long overdue recognition to these brave Amer­ Kobara today. bring attention to the outstanding achieve­ icans. ments of the College of San Mateo and con­ gratulate the institution on its 75th anniversary. HEALTH INSURANCE ASSISTANCE As one of the leading community colleges in TRIBUTE TO JOHN E. KOBARA FOR THOSE 55 AND OLDER California, I have the pleasure of having this college in my district. HON. JERRY LEWIS HON. FORTNEY PrrE STARK Founded in 1922 as the first community col­ OF CALIFORNIA OF CALIFORNIA lege on the Bay Area Peninsula, the College IN THE HOUSE OF REPRESENTATIVES of San Mateo rose to meet the needs of the IN THE HOUSE OF REPRESENTATIVES community. As the cost of universities rose, Thursday, January 9, 1997 Thursday, January 9, 1997 educators in San Mateo saw the need to pro­ Mr. LEWIS of California. Mr. Speaker, I Mr. STARK. Mr. Speaker, in the 104th Con­ vide education for those who could not afford would like to bring to your attention the fine gress, I introduced legislation to provide as­ 4-year universities. The College of San Mateo work and outstanding public service of John E. sistance in obtaining health insurance to those acted as a bridge to the University of Cali­ Kobara, the departing associate vice chan­ 55 and older. Today, I rise again to introduce fornia and Stanford when higher education be­ cellor of university relations at UCLA. For the the same legislation to make the COBRA came increasingly more important. Here, stu­ last 20 years, John has been leading and health continuation program available to any­ dents could save money and still receive a managing diverse, complex, and innovative or­ one between age 55 and the time they be­ high quality education. ganizations with close ties to the higher edu­ come eligible for Medicare. The College of San Mateo never stopped cation community. The 1990's have confronted us with many serving the community. When World War II John is a graduate of UCLA where he re­ difficult issues, both foreign and domestic. struck, the college became the top support ceived his BA in political science and soci­ One issue in particular impacts an center in northern California. As Dean Moris ology before going on to earn an MA in urban everincreasing segment of our population. Ac­ stated: studies at Occidental College, and an MBA in cording to statistics from the Department of If the need was to have remedial courses, marketing and finance at the University of Labor, in 1988, there were 13.1 million private then there would be remedial courses. If a Southern California. As an undergraduate he sector retirees and 4.9 million had health in­ trade school was needed, then trade school served on the Undergraduate Student Asso­ surance coverage. In 1994, the number of pri­ classes would be provided. If the community ciation, the student body of UCLA, dem­ vate sector retirees had risen to 17.4 million requested adult education, then an adult onstrating an early thirst for involvement in the but the number of individuals covered by school would be formed. affairs of the campus and an abiding concern health insurance had declined to 4.7 million. In The college became an invaluable asset to for its welfare. These traits, coupled with his other words, the proportion of private sector the community and a most valuable tool for love of UCLA, would become landmarks of his retirees covered by health insurance from a the economic future of the region. professional career with the university. John is former employer dropped from 37 percent in Hundreds of thousands of students have deeply committed to the realm of education 1988 to 27 percent in 1994. been educated by the College of San Mateo and to addressing the issues of diversity and As the level of employer-provided insurance since its founding 75 years ago. The college multiculturalism in education and in society at declines and as hundreds of thousands of has helped start two other community colleges large. older workers face early retirement because of January 9, 1997 \ EXTENSIONS OF REMARKS 359 corporate down-fixing, layoffs, and restruc­ Receiving help with the cost of this insur­ a former employer; by 1994 that share had turing, the problem of health insurance for ance is particularly important for those in their dropped to '2:l percent. And those who still have coverage are paying more: In the same those not-yet-eligible for Medicare is becoming 50's and 60's because most insurance pre­ 1988-94 period, the proportion of retirees with more and more serious. miums rise sharply with age. For example, in coverage whose entire premium was paid by As Corporate America continues to focus on the Los Angeles market, Blue Cross of Cali­ the companies declined to 42 percent from 50 profit levels, often at the expense of providing fornia offers a basic, barebones in-hospital percent. health insurance benefits to workers, these in­ $2,000 deductible plan. This plan is a PPO In thousands of cases, workers and retirees dividuals face an uncertain and frightening fu­ which restricts options for hospital usage. For are being caught by surprise, either because ture in the health care arena. The steady de­ a couple under age 29, the cost is $64 a they assumed that the benefits always would cline in coverage among active workers trans­ month. For a couple between age 60 and 64, be there, or because materials given to them lates into lower likelihold of retiree health ben­ the cost soars to $229 a month. by employers indicated that they would, but efits being available. In order to ensure that the cost of COBRA didn't really promise. The frightening reality of this situation will The courts are full of cases that turn on continuation is not an excessive burden to the question of what was a binding promise only get worse. In 1994, almost 24 percent of business, my bill calls for age-55+enrollees to and what was not. The Labor Department is retirees-4.1 million, were between the ages pay 11 O percent of the group rate policy­ involved in lawsuits on behalf of about 87,000 of 55 and 64. The pressure on retiree health compared to 102 percent for most current retirees-including 800 from Pabst--whose plans will only increase as the number of per­ COBRA eligible individuals and 150 percent benefits have been eliminated or reduced. sons over the age of 55 nearly doubles-from for disabled COBRA enrollees. "Employees very often are premising their 55 million today to nearly 100 million-by the I realize that the cost of paying one's share entire financial planning for retirement on year 2020. of a group insurance policy will still be too the basis of the promises that are made to them by their employers," Labor Secretary There exist numerous examples that help much of a burden for many Americans. Many demonstrate the significance of the situation to Robert B. Reich said last week. of them will be forced into the uncertain mer­ "Promises are made or assumed to be made the older workers. cies of State Medicaid policies. But for many In October 1996, Philips Consumer Elec­ and employees rely on them and· then sud­ others, this bill will provide an important bridge denly discover that they are not there. Re­ tronic Co. gave about 2,000 employees layoff to age 65 when they will be eligible for Medi­ tirees can be left holding the bag, can be in warning notices. Union leaders involved con­ care. I wish we could do more, but in the cur­ severe difficulty," he said. tend that companies make these moves in rent climate, this bill is our best hope. We can­ Retirees aged 65 and older can fall back on part to get rid of older workers who cost more not allow the everincreasing ranks of early re­ the federal Medicare program, but in most . cases that covers only the individual. Retir­ in wages and pension and health benefits and tirees to be without options in addressing nec­ replace them with lower-wage, younger work­ ees with younger spouses or children will essary health insurance needs. have to find other coverage for them. ers. The following November 3, 1996 Wash­ In October 1996, the Massachusetts State Reich said the problem is growing as the ington Post article provides further data on Department of Employment and Training con­ number of retirees rises. He said the depart­ why we need to pass this bill. ment is considering seeking legislation next firmed that 36.1 percent of people claiming un­ year, assuming President Clinton is re­ employment checks in August of the same RETIRING? DON'T ASSUME HEALTH BENEFITS ARE FOREVER elected, that would at a minimum require year were 45 or older-usually considered the "clearer disclosure so that workers know ex­ most productive, reliable group of workers. (By Albert B. Crenshaw) actly what they are being promised." In November 1995, Sunbeam Corp. an­ For 14 years, James Murdock worked as a At the other end of the option range, Reich nounced that nearly 6,300 employees, half of brewing supervisor at Pabst Brewing Co., said, might be legislation that would ensure its total work force would be let go. putting in long hours at the big Milwaukee­ that these promises "are treated like any At AT&T, 34,000 jobs had to be cut. Work­ based beer producer. But two years ago, other contracts.. .. If you have a reliance in­ when his wife developed multiple sclerosis, terest then they are enforceable." ers were to receive a lump-sum payment he decided to take early retirement to be based on years of service, up to 1 year of He said the 1974 Employee Retirement In­ with her. come Security Act sweeps these issues into paid health benefits and cash to cover tuition He checked the company's employee man­ the federal courts as pension issues rather costs or to start a new business-but what ual, which he said "guaranteed" health care than contract disputes that would be han­ happens to health coverage after 1 year? coverage until age 65, including early retir­ dled under state contract law. The federal Two giant New York City banks, Chase ees and their dependents. courts have been "all over the place" on the Manhattan and Chemical recently combined But after giving Pabst notice and even sell­ issue, he said, making it very difficult for ing his home, Murdock got a computer print­ and 12,000 jobs from the combined banks workers and retirees to determine whether out describing his benefits. "Near the bot­ their benefits are guaranteed. were subsequently cut. tom was a sentence that said in essence that Since 1990, United Technologies has cut In a number of cases, the company has they had the right to modify, rescind, cancel seemed to guarantee the benefits in one 33,000 jobs. and so on" his and his wife's health insur­ In 1994, Scott Paper cut 11,000 jobs or 35 place in their benefit plan documents, but ance, he recalled last week. has backed away from it somewhere else. In percent of their work force. "It was the first I knew about it. By then a case involving former salaried workers at A 1994 Nationwide study of 2,395 employ­ it was too late" to halt his retirement. "My General Motors Corp. whose benefits were ers by A. Foster Higgins & Co., a New York­ replacement was there and trained," he said. cut, a federal appellate court has allowed based benefits consulting firm, showed that Company officials were reassuring. "They said they never canceled anybody's benefits legal claims to proceed. At Pabst, though, a among large companies-those with 500 or before,'' Murdock said. federal district court ruled against retirees more employees~6 percent provide some But this time they did. who lost coverage. Both cases are still in form of coverage for early retirees, while only Less than two years after his retirement, litigation. 39 percent provide insurance for Medicare-eli­ Murdock is working part-time as a clerk in Reich acknowledged that employers are gible retirees. Fewer than one in five large a hardware store to pay the premiums on a not required to provide health insurance for policy for himself. His wife, Carol, is unin­ workers or retirees. and any regulatory or employers are willing to pay the entire cost of legislative changes must strike a balance-­ health care for their retirees, while 40 percent surable and has no coverage. The couple is praying her health holds up until next May, protecting workers without discouraging of the companies that do offer some form of when she becomes eligible for Medicare be­ companies from offering the benefits in the health care coverage require the retiree to pay cause of her disability. first place. all of the costs. Those companies that do pro­ "That's going to be our oasis in the desert. The Labor Department's Pension and Wel­ vide health care coverage for their retirees are I just hope we can get there before there's fare Benefits Administration has issued a increasingly requiring them to pay a share of any major problems," he said. brief advisory bulletin that outlines steps the cost, especially for dependents. Murdock's is not an isolated case. Rising you can take to assess your situation and to Group health insurance is, of course, much medical costs and pressure for profits are try to protect yourself. less expensive than individual policy insur­ driving more and more large employers to The key step is to review your company's end or sharply curtail health care coverage plan documents, which describe the benefits ance, and that is why the COBRA benefit is so for retirees. Others are boosting the share of offered, spell out eligibility and give other vital and useful. The difference in cost for ob­ the costs retirees are expected to pick up. details. taining group versus individual health insur­ As recently as 1988, about 37 percent of re­ First. look at your Summary Plan Descrip­ ance can easily be several thousand dollars. tirees were covered by health insurance from tion. This gives the major features of the 360 EXTENSIONS OF REMARKS January 9, 1997 plan. It can be changed from year to year or amendment. Unfortunately, while H.R. 4000 terms or 39 years. Elected to the Arenac Soil contract to contract, so make sure you get a was passed unanimously by the House, it fell Conservation District Board in 1958, Milton current one. The one in effect on the date victim to the procedural rules of the Senate has held the position of chairman, vice chair, you retire is the controlling document-get a copy and keep it. which were skillfully used by the bill's oppo­ secretary, and treasurer. While serving on the There may be other documents as well, nents to ensure that it was not taken up for board, he taught and shared his knowledge of such as a collective bargaining agreement or consideration before Congress adjourned. conservation with farmers, students, and an insurance contract. Look at them as well. The POW/MIA Restoration Act would re­ teachers. In the documents, look for language that store the provisions stricken from the Missing Born in Sterling, Ml, Milton began his career looks like a clear promise to continue bene­ Service Personnel Act by the Senate amend­ in Holly, Ml. He moved to Clintonville where fits or provide them for a certain period. But ment. he taught at School House Lake before be­ also look for language reserving the right to The first provision to be restored requires coming the principal of Waterford. He enjoyed change or eliminate them. that military commanders report and initiate a This "reservation clause" typically will teaching and working with young people, but say something like: " The company reserves search for any missing service personnel with­ his real love was farming. He bought his first the right to modify, revoke, suspend, termi­ in 48 hours, rather than 1O days as proposed 40 acre parcel and never stopped teaching, by nate or change the program, in whole or in by the Senate amendment. While current reg­ sharing with other farmers conservation prac­ part, at any time." ulations require local commanders to report tices, he utilized in his own farming operation. It's likely to be there. Companies want to any individual missing for more than 24 hours, He founded an education program for the avoid open-ended promises to workers and such missing often fall through the cracks, es­ Arenac Conservation Board to help young retirees. pecially during military operations. people understand the importance of pre­ When both a promise and a reservation are The second provision covers missing civilian there, it's not clear what your rights will be. serving high quality water and soil. Meeting Some courts have refused to enforce what employees of the Defense Department. These with several teachers in the area, they started seemed to be a clear promise if there was a civilians are in the field under orders to assist programs such as the annual poster contest reservation clause; others have enforced a our military, and deserve the same protections now in its 30th year, the annual Arbor Day promise contained in the summary even afforded our men and women in uniform. celebrations and taking fifth graders on an an­ though there was a reservation clause else­ The third provision to be restored states that nual tour since the early 1970's. where in the plan documents. if a body were recovered and could not be Milton's dual passion for education and con­ Hang on to any other communications identified by visual means, that a certification your company or supervisors give you. servation fueled him to work with local teach­ by a credible forensic authority must be made. ers and the Department of Agriculture to spon­ Courts sometimes take into account infor­ There have been too many recent cases mal communications in deciding rights. sor a soil judging contest for high school stu­ If you are taking early retirement, check where misidentification of remains has caused dents. Also wanting to recognize the teachers out the documents concerning its terms. undue trauma for families. who were promoting conservation efforts in Special promises made in such deals can Finally, H.R. 4000 would restore the provi­ their classrooms, Milton presented a teacher override other plan documents. sion which would require criminal penalties for of the year award at the district's annual meet­ And don't be shy about protecting yourself. any Government official who knowingly and ing. Although Milton will continue to farm part If you can negotiate a personal promise of willfully withholds information related to the time and participate in 4-H, church and com­ health insurance for yourself and/or depend­ disappearance, whereabouts, and status of a ents in retirement, do it. If your company is munity service. missing person. Milton could not have been such an integral anxious to see you go, it may well agree. Prompt and proper notification of any new Talk to experts as well. If you're in a part of educating and promoting conservation union. officials there can be helpful. Or you information is essential to the successful in­ efforts without the support of his wife, Lela, may want to run the material by a labor vestigation of each POW/MIA case. This can· who he married in 1940 and his son and lawyer. There's a lot of money at stake. not be achieved if individual bureaucrats delib­ daughter-in-law, Ron and Mary Bergeron and Free copies of the Labor Department bul­ erately seek to derail the process. his daughter and son-in-law, Ronella and Ron letin are available from the Pension and The opponents of the Missing Service Per­ Welfare Benefits Administration's publica­ Berlinski. sonnel Act have to this day never offered any Mr. Speaker, as you can see, Milton is a tion hotline at 202-219-9247. It's also on the credible reasons for their opposition to the leg­ World Wide Web, at http://www.dol.gov/dol/ leader in his field-educating people of all pwba/. islation. Rather than create more redtape I be­ ages on the importance of conservation ef­ lieve these provisions will help streamline the forts. His generous contributions over the bureaucracy and improve the investigation years should be applauded and I commend POW/MIA RESTORATION ACT process. Milton Bergeron for his many accomplish­ Moreover the Missing Service Personnel Act ments. has not been public law long enough to be HON.BENJAMIN A. Gil.MAN adequately evaluated. To repeal provisions of OF NEW YORK a law after 5 months does not make sense, THE TWENTY-FIB.ST CENTURY IN THE HOUSE OF REPRESENTATIVES especially when that law has not yet had a PATENT SYSTEM IMPROVEMENT Thursday, January 9, 1997 chance to be tested. ACT Mr. GILMAN. Mr. Speaker, I rise today to in­ Accordingly, I urge my colleagues today to troduce the POW/MIA Restoration Act. Last join me in supporting the POW/MIA Restora­ tion Act. HON. HOW ARD COBLE year, this body secured a victory for U.S. serv­ OF NORTH CAROLINA ice personnel, their families, and the families IN THE HOUSE OF REPRESENTATIVES of POW/MIA's by winning the passage of H.R. Mil.JTON BERGERON, A MAN OF Thursday, January 9, 1997 945, the Missing Service Personnel Act. HEART AND SOIL H.R. 945 received unanimous support in the Mr. COBLE. Mr. Speaker, today I am House as part of the Department of Defense HON. JAMES A. BARCIA pleased to introduce an updated version of Authorization Act of 1996. legislation originally drafted in the last Con­ OF MICHIGAN Unable to prevent the passage of H.R. 945, gress by two former members of the Judiciary the opponents of the legislation waited until IN THE HOUSE OF REPRESENTATIVES Committee who have since retired, Carlos last summer to attach a Senate amendment to Thursday, January 9, 1997 Moorhead and Pat Schroeder. Many of us the 1997 Defense Authorization Conference Mr. BARCIA. Mr. Speaker, I rise today to were cosponsors in the 104th Congress, in­ Report. That amendment essentially tore the pay tribute to Milton Bergeron, who success­ cluding our distinguished chairman, Mr. HYDE, heart out of the Missing Service Personnel fully combined teaching and conservation and ranking member, Mr. CONYERS. Original Act. practices, his two passions, to make an impor­ cosponsors of this bill include Mr. GOODLATIE, In response, along with other supporters of tant impact on the conservation efforts in a senior member of the Subcommittee on our Nation's POW/MIA's, I introduced H.R. Arenac County. Courts and Intellectual Property, Mr. CONYERS, 4000, which would have restored the provi­ Milton is retiring from the Arenac Soil Con­ and Ms. LOFGREN, also a member of the sub­ sions which were stripped out by the Senate servation District Board after serving for 13 committee. January 9, 1997 EXTENSIONS OF REMARKS 361 This legislation is necessary to allow Amer­ partment of Commerce is pleased that we aging duplicative research. As a safeguard ican businesses to compete effectively in mar­ have been able to work together in a truly for those whose applications are published, it kets today and into the 21st century. The bipartisan effort to "reinvent" the Patent establishes a provisional patent right that United States is by far the world's largest pro­ and Trademark Office. We appreciate your allows a patent owner to obtain a reasonable staffs and Ranking Member Schroeder's royalty if, between the date of publication ducer of intellectual property. This success is staffs work to address the Administration's and the date of grant, another party in­ of course due to the great creativity of our citi­ concerns with Title I. The Administration fringes an invention substantially identi­ zens, but this success is also the direct result believes that the changes that we have craft­ cally claimed in the published application of a rational and sound policy of protecting in­ ed together in the en bane floor manager's and the patent. Also, it makes some adminis­ tellectual property-a system that encourages amendment will create an organization con­ trative delays a basis for extension of the the development of new inventions and proc­ sistent with the essential principles of the patent term, to ensure that diligent appli­ esses. However, America does not have a Vice President's vision for a Performance cants are fully protected. monopoly on creativity. Many other nations Based Organization, to further our mutual Title m creates a defense to an infringe­ have learned from our success-America no goal of creating a more efficient and effec­ ment action for parties that can establish tive patent and trademark office. In light of longer stands alone in its commitment to a prior use in commerce, including use in the these changes, the Administration strongly design, testing, or production in the United strong system of patent protection for its in­ supports House passage of H.R. 3460 with the States of a product or service before the date ventors, small businesses and industries. Con­ en bane manager's amendment. a patent application was filed in the United sequently, it is more important now than ever It is our joint vision to have a more busi­ States or before the priority filing date. This that we adopt certain reforms that will ensure ness-like patent and trademark organization ensures that inventors, who do not seek pat­ that America maintains its position as the that can better serve the public and the ent protection, will not be precluded unfairly world leader in the production of intellectual innovators whose ideas are the engine of from practicing their invention by other in­ property. growth for our economy. By granting the ventors who later obtain patent protection Under current law, foreign companies enjoy new organization operational flexibility in for the same invention. certain benefits in America that American exchange for greater accountability for Title IV is aimed at ensuring that inven­ achieving measurable goals, delineated in an companies do not enjoy in their countries, like tors are fully informed prior to entering into annual performance agreement between the a contract for invention development serv­ the advantages of publication and prior user Secretary of Commerce and the Commis­ ices. It also provides a cause of action if the rights; the changes proposed today are espe­ sioner, the bill makes that vision a reality. service provider makes fraudulent claims or cially useful for small businesses-many of It is also our joint view that the Executive neglects to disclose material information to which simply will not survive if foreign com­ Branch must, as you put it, "be able to es­ the inventor. petitors continue to operate on a tilted playing tablish an integrated policy on commercial Title V amends the patent reexamination field in America. and technology issues." By making clear procedure to allow greater participation of This legislation will benefit American inven­ that the bill does not alter the Secretary of their parties who request reexamination and tors and innovators and society at large. First, Commerce's statutory responsibility for di­ expands the grounds for examination. En­ by providing more efficient and effective oper­ recting patent and trademark policy with re­ hanced reexamination procedures will pro­ spect to the duties of the Patent and Trade­ vide a less expensive and more timely alter­ ation of the Patent and Trademark Office; sec­ mark Office, we have ensured the continuity native to costly patent litigation. ond, by furthering the constitutional incentive of appropriate policy direction and over­ Lastly, Title VI contains several miscella­ to disseminate information regarding new sight. neous or "housekeeping" amendments, in­ technologies more rapidly; third, by guaran­ We also believe that other changes you cluding one to ensure that our law provides teeing that patent applicants will not lose pat­ have added to address Administration con­ priority consistent with our obligations to ent term due to delays that are not their fault; cerns. such as ensuring that there is inde­ WTO countries and one to authorize submis­ fourth, by improving the procedures for review­ pendent Inspector General oversight and ade­ sion of patent applications through elec­ ing the work product of patent examiners; fifth, quate personnel safeguards, will strengthen tronic media. However, the Department of accountability mechanisms that we all en­ by protecting earlier domestic commercial Justice opposes section 604 and the Adminis­ dorse. The Administration is also pleased tration urges that this provision be deleted. users of patented technologies; and sixth, by that the en bane manager's amendment ad­ The recovery of attorneys' fees by individ­ deterring invention promoters from defrauding dresses the central Constitutional and policy uals and small businesses from the Govern­ unsuspecting inventors. concerns of the Department of Justice with ment in cases brought pursuant to 28 U.S.C. As I mentioned, this legislation is the suc­ Title I. §1498(a) is already provided in the Equal Ac­ cessor to a bill developed by the Judiciary We are committed to continuing to work cess to Justice Act (EAJA), 28 U.S.C. Subcommittee on Courts and Intellectual Prop­ together this year and in the future to per­ §2412(d). By contrast to EAJA, section 604 erty in the last Congress and reported by fect this bipartisan effort to invent anew the would provide for attorneys' fees even where Patent and Trademark Office so that it will the position taken by the Government is unanimous vote by the Judiciary Committee remain one of the Nation's most important late in the second session. The version of the substantially justified by the law. This pro­ resources for protecting and encouraging the vision would, in fact, place the Government bill that I am introducing today is nearly iden­ preeminence of American innovation. We be­ in a worse position than a private defendant tical to last year's bill, and includes the con­ lieve, for example, that there is still further in a patent infringement suit, against whom tents of a manager's amendment that was de­ work that we must do to address our con­ attorney fees can be awarded in "excep­ veloped with the Senate, the administration cerns in the area of procurement, where we tional" cases. The provisions would discour­ and the House Government Reform and Over­ believe that the exemptions are broader than age appropriate settlements and engender sight Committee and which would have been necessary to provide the flexibilities re­ unnecessary litigation, by allowing private quired. litigants to reject reasonable settlement of­ offered if the bill had been scheduled for a H.R. 3460 contains five other titles that we vote in the House. This legislation was the fers safe in the knowledge that the Govern­ believe will substantially improve the level ment will pay their attorneys' fees even if subject of several days of hearings in the last of patent protection provided in the United they are awarded damages less than the set­ Congress. States. These patent reforms are supported tlement offer. For these reasons, the Admin­ I would like to place in the RECORD a letter by the Administration and are of great im­ istration will continue· to seek deletion of written by the Secretary of Commerce on Sep­ portance to the Nation's economic competi­ Section 604 before final Congressional action tember 12, 1996, that expressed the strong tiveness. We hope that they can be enacted on this legislation. support of the Clinton administration for last in legislation this session. Once again, we thank you for your com­ year's bill, including the proposed manager's Title II provides for the publication of pat­ mitment to working together in the spirit of ent applications eighteen months after the amendment. bipartisan cooperation to craft legislation date on which they are filed or from the date that provides for important patent reforms THE SECRETARY OF COMMERCE, on which the earliest referenced application to help to ensure our nation's continued eco­ Washington, DC, September 12, 1996. was filed. This publication will help prevent nomic growth. The Administration strongly HON. CARLOS J. MOORHEAD, , economic disruption by those who now delay supports House passage of H.R. 3460 with the Chairman, Subcommittee on Courts and Intel­ the grant of patents to extend their period of en bane manager's amendment. ligence Property, Committee on the Judici­ protection unfairly. It will also promote pat­ Sincerely, ary, House of Representatives, Washington, ent law harmonization that in the longer Michael ~OR. DC. term will make it easier and cheaper for our DEAR MR. CHAIRMAN: Thank you for your small businesses and individual inventors to My bill is supported by an exceptionally letter regarding Title I of R.R. 3460. The De- obtain protection abroad, as well as discour- large and diverse coalition of small and large 362 EXTENSIONS OF REMARKS January 9, 1997 companies, independent inventors and asso­ have a provisional right to a royalty from other with the intention of assassinating leaders of ciations representing every type of U.S. indus­ parties who use the invention after publication the Akali Dal, the Sikh, political party. The try and inventor that utilizes the patent system. and before patent grant. Publication of new Human Rights Wing issued a report which The coalition includes companies that are re­ technologies eliminates duplication of effort proves these charges false. Yet the Indian re­ sponsible for large numbers of high wage and accelerates technology licensing. Early gime continues to hold Mr. Dhillon anyway. On manufacturing jobs in America, such as Micro­ publication is accompanied by a guarantee September 26, a bipartisan group of 36 Mem­ soft Corp., Digital Equipment Corp., IBM that U.S. inventors, especially independent in­ bers of Congress also wrote to President Clin­ Corp., Intel Corp., Caterpillar, Inc., Ford Motor ventors and small businesses, can receive an ton urging his personal intervention to bring Co., General Electric Co., Illinois Tool Works, indication of their likelihood of obtaining a pat­ Mr. Dhillon back to the United States. The and Procter & Gamble Co. The Biotechnology ent before their application is published. They President wrote us back to assure us that Am­ Industry Organization with over 560 members, will then be able to make an informed decision bassador Frank Wisner has taken up his case has expressed its full support for this legisla­ regarding whether they should withdraw the with the regime. I am pleased that the admin­ tion. The White House Conference on Small application before publication. Title II also istration is working on the case, but so far Business supports this legislation. Inde­ makes some other improvements including the they have not gotten through to the Indian re­ pendent inventors such as the inventor of the rules for extending the term of a patent when gime. Mr. Dhillon remains in the clutches of quartz technology used in watches support delays occur that are not the fault of the appli­ this brutal tyranny. While he is free on bail, he this legislation. I can proudly say that after cant. is not tree to leave India. many hearings and negotiating sessions, it Trtle Ill creates a defense against infringe­ now has the full and unqualified support of an ment charges for parties who have independ­ Could the fact that Mr. Dhillon is a Sikh, a overwhelming number of American industries ently developed and used technology in the Khalistani American, be a factor in this case? that utilize our patent system. United States before a patent application was The Indian regime has apparently decided to Trtle I modernizes the U.S. Patent and filed on that technology by another party. This target Sikhs living outside of India or Trademark Office by establishing it as a wholly will protect the investments of innovative Khalistan. Dr. Gurmit Singh Aulakh, who is the owned government corporation-a govern­ American manufacturers who have built plants president of the Council of Khalistan, was in­ ment agency with operating and financial flexi­ using technology later patented by their for­ formed by the FBI that there is an assassina­ bility that will enable it to improve the services eign competitors. tion threat against him. His organization is it offers to the public. The Office will remain Trtle IV protects inventors from the fraudu­ leading the Sikh Nation's peaceful, demo­ under the policy direction of the Secretary of lent practices of invention development firms cratic, nonviolent struggle to free Khalistan, Commerce, but will not be subject to micro­ by requiring disclosure of a firm's track record the Sikh homeland. Khalistan declared its management by Commerce Department bu­ and allowing the inventor to withdraw from a independence on October 7, 1987. Dr. Aulakh reaucrats. contract with a developer within a reasonable was also informed in a telephone call from Because the Patent and Trademark Office is time. Germany, where he will be visiting soon, that funded completely by user fees, and not by Trtle V makes improvements in the proce­ there is an assassination threat against him tax dollars, it is one of the few government en­ dures for reexamining a patent in the Patent there also. Dr. Aulakh has been a valuable tities recommended by the National Academy and Trademark Office after it has been grant­ source of information for many of us in Con­ for Public Administration to operate under ed by the Office. The refined reexamination gress. The civilized world will not accept this structure and oversight commanded in the procedures in the bill will give the public a fair­ kind of outrageous effort to intimidate an ar­ Government Corporation Act, rather than the er opportunity than is presently allowed to ticulate spokesman for his people's freedom. structure followed by taxpayer-funded agen­ have the Office consider information missed In July, about 20 Indian Government agents cies. The bill has a variety of provisions in title by the examiner. The revised procedures will severely beat Dr. Jagjit Singh Chohan, the I that will free the Patent and Trademark Of­ better balance the interests of the patentee leading Khalistani activist in Britain, when he fice from the bureaucratic redtape that im­ and the public and offer an effective alter­ requested emergency medical treatment for an pedes the Office's efforts to modernize and native to expensive litigation in court. acute heart condition. Dr. Chohan is a 68- streamline its operations. For example, the bill Trtle VI provides a number of other improve­ year-old man whose right hand was ampu­ provides that the Office shall not be subject to ments in our patent laws. It ensures that U.S. tated years ago. Clearly, the beating of Dr. any administratively or statutorily imposed limi­ law provides priority consistent with our obliga­ Chohan and the continuing detention of Balbir tation on the number of positions or employ­ tions to WTO countries and authorizes sub­ Singh Dhillon are designed to send a mes­ ees. This will exempt the Office from ceilings mission of patent applications through elec­ sage to any Sikhs who are thinking of getting on the number of full-time equivalent employ­ tronic media. involved in the struggle for freedom. ees, giving the Office flexibility to hire the I look forward to working with all interested number of employees it needs, based on its It is an outrage that this is allowed to hap­ parties as we prepare to move this important pen to anyone, let alone an American citizen. income from applications, to process the appli­ and necessary patent legislation through this cations filed by and fully paid for by the users. It is time to take strong measures against the Congress. The reforms contained in this bill brutal, corrupt regime that is holding Mr. The bill gives the Office greater flexibility with are needed to make the patent system best respect to management of its office space, Dhillon. I would like to know why the American serve the country now and into the next cen­ taxpayers are paying their hard-earned dollars procurement, and other matters. The users of tury. the Patent and Trademark Office will be rep­ to support a regime that can treat American resented on a management advisory board citizens this way. What has happened to Mr. that will advise the Director of the Patent and INDIAN REGIME MUST FREE Dhillon and his family is a terrible thing. The Trademark Office on the efficiency and effec­ AMERICAN CITIZEN DHILLON fact that we are sending money to the regime tiveness of the Office's operations. Making the that is responsible for it just makes it worse. Office accountable to its users through con­ HON. GERALD B.H. SOLOMON The time has come to take action. We sultations with them is a significant step in im­ OF NEW YORK should stop sending United States aid to India. proving its operations. IN THE HOUSE OF REPRESENTATIVES India is a country which votes against us at Trtle II improves the procedures for exam­ the United Nations more often than all but a ining patent applications. It provides for the Thursday, January 9, 1997 couple of countries. It was a close ally of the publication of most U.S.-origin applications 18 Mr. SOLOMON. Mr. Speaker, I rise today to Soviet Union. It is leading the nuclear arms months after the date of application filing, un­ ask when the Government of India will finally race in South Asia. Khalistan, on the other less a patent already has been granted by that get around to letting American citizen Balbir hand, has promised to sign a 100-year treaty time. It also requires publication of foreign-ori­ Singh Dhillon come home to his family. He of friendship with the United States. There is gin applications in the English language gen­ has been held since May on trumped-up an old saying in politics: Join the side you're erally within 6 months after they are filed in charges. on. It is time for America to join the side we the United States-a full 12 months earlier Mr. Dhillon, a 43-year-old businessman and are on by taking these strong measures to se­ than under current law. Unlike the situation an American citizen, was arrested in May on cure freedom, dignity, and prosperity for all the today, the owner of the patent application will charges that he was carrying ROX explosives peoples of South Asia. January 9, 1997 EXTENSIONS OF REMARKS 363 THE 50TH ANNIVERSARY OF VET­ headed the Orthodontia Program for San to commissioned officers. He often served as ERANS OF FOREIGN WARS POST Mateo County. His outstanding achievements a spokesperson on Marine Corps issues and 8805 have been recognized by awards from the rapidly established a reputation for exactness, San Mateo Hispanic Council, the Italian Amer­ professionalism, and integrity among Members HON. RON KLINK ican Federation, San Mateo Easter Seals, and of Congress, congressional staff members, OF PENNSYLVANIA Daly City Jaycee to name just a few. and his peers in the Liaison Office. During his career on Capitol Hill, Staff Ser­ IN THE HOUSE OF REPRESENTATIVES The son of Genoese immigrants, Al Teglia has lived on the San Mateo Peninsula all his geant Scott responded to over 4,000 tele­ Thursday, January 9, 1997 life. He and his wife of 43 years, Verna, share phonic inquiries from over 900 Congressional Mr. KLINK. Mr. Speaker, I rise today in a love and joy for the bay area community. offices throughout the country and ensured order to commemorate the 50th anniversary of Too often these days people complain about that our constituents received timely and com­ Veterans of Foreign Wars Post 8805 in Hope­ this problem or that situation without ever lift­ plete answers. He was instrumental in plan­ well Township. ing a finger to try and help solve it. People like ning, coordinating and escorting Members and Named after Robert W. Young, the first Al Teglia remind us that a community is only congressional staff on fact finding trips. In Hopewell resident killed in duty during World as strong as the people in it. Al has given short, Staff Sergeant Scott's performance is War II. Young was killed when his ship, the back so much to the community which raised consistent with the quality performance we USS Sims, was sunk by Japanese airplanes in him, we should all look to him as an example. have come to expect from our U.S. Marines. the Battle of the Coral Sea on May 7, 1942. People can actually point to Al Teglia and say, During Staff Sergeant Scott's 14-year ca­ VFW Post 8805 is currently home to over "He helped make my life better." This is the reer, he and his family made many sacrifies 600 veteran members and 280 ladies' auxiliary penultimate compliment for a public servant. for this Nation. I would like to thank them all­ members. Many of these people are charter I hold Al Teglia in the highest regard. There Lewis, his lovely wife, Angelia, and their three members of Post 8805. The first members is no task too daunting and no issue too small. children, Christopher, Lewis, and Shannon for were those returning from Europe and the Pa­ Wrth an uncompromising dedication to duty their contributions to the Marine Corps. cific and every other theater of World War II. and service, he has touched many lives in the Mr. Speaker, Staff Sergeant Scott is a great From the beginning, VFW Post 8805 has been San Francisco Bay area. His presence on the attribute to the U.S. Marine Corps and to the made up of citizen heroes, who left their Daly City Council will be sorely missed, but I country he so faithfully serves. As he prepares homes and loved ones to undergo incredible am pleased he will remain active in the com­ to depart for new challenges on an unaccom­ hardships and sacrifices in defense of our munity. His undying devotion and dogmatic panied tour in Okinawa, Japan, I know that my freedoms. Fortunately, these people returned determination to serve his community should colleagues on both sides of the aisle will join home to become some of the most out­ serve as inspiration to all who aspire to public me in wishing him every success, as well as standing members of the community. Contrib­ service. fair winds and following seas. uting in peace as they had contributed in war. A special salute to Ernest Parisi and Rich­ TRIBUTE TO STAFF SERGEANT AMERICA'S VETERANS HAVE ard Paxton, two of the founding members of EARNED EMPLOYMENT, TRAIN­ LEWIS F .M. SCOTT VFW Post 8805. Without their perseverance, ING AND SMALL BUSINESS OP­ the dream of Post 8805 would not have be­ PORTUNITIES come a reality. They and all the members are HON. FLOYD SPENCE a fine representation of the Fourth Congres­ OF SOUTH CAROLINA HON. BOB Fil.NER sional District. IN THE HOUSE OF REPRESENTATIVES OF CALIFORNIA Mr. Speaker, let us never forget the honor, Thursday, January 9, 1997 IN THE HOUSE OF REPRESENTATIVES courage, and valor displayed by all the mem­ bers of the VFW. They have done a great Mr. SPENCE. Mr. Speaker, it is a pleasure Thursday, January 9, 1997 service to our country. I ask you and all mem­ for me to pay tribute today to a truly excep­ Mr. FILNER. Mr. Speaker, it has been my bers to join me in a special salute to VFW tional Marine, Staff Sergeant Lewis F.M. Scott, privilege to serve on the House Committee on Post 8805. who will soon complete his assignment as the Veterans' Affairs since I was first elected to Marine Corps' congressional liaison staff non­ Congress 4 years ago, and I look forward to commissioned officer. For the past 31/2 years, continuing that service in the 1OS th Congress. A TRIBUTE TO ALBERT TEGLIA Staff Sergeant Scott has provided a tremen­ I asked to serve on the Veterans' Affairs Com­ dous service to the Members of Congress and mittee because I believe that the men and HON. TOM LANTOS to all of our constituents. His dedication and women who serve in our Nation's Armed OF CALIFORNIA professionalism, coupled with his warm per­ Forces are special members of our American IN THE HOUSE OF REPRESENTATIVES sonality, have endeared him to many of us on family. Because of their service, the rest of us Capitol Hill, and we will miss him very much. are able to fully enjoy the freedoms on which Thursday, January 9, 1997 A native of Felton, DE, Lewis Scott enlisted our country was founded. We have a unique Mr. LANTOS. Mr. Speaker, today I rise to in the Marine Corps on January 28, 1983, and debt to our veterans, and, as a member of the recognize the outstanding achievements of Al­ attended recruit training in Parris Island, SC. Veteran's Committee, I have worked to ensure bert Teglia, a man who has dedicated his life After boot camp and specialty training in ad­ that that debt is repaid. not only to public office, but to public service. ministration, he was assigned to the Marine On January 7, 1997, the first day of the His dedication and devotion to duty has Corps Air Ground Combat Center at 29 1OSth Congress, I introduced three bills of par­ helped countless numbers of San Francisco Palms, CA, as a clerk for the 3d Assault Am­ ticular importance to veterans and members of Bay area residents with problems ranging from phibian Battalion. In April of 1985, he received the Reserves and National Guard. We have a fixing the burdensome Tax Code to fixing a orders to the 3d Reconnaissance Battalion in longstanding national commitment to provide burnt-out street light. For the past 20 years, Al Okinawa, Japan where he served with distinc­ special assistance for veterans who want em­ Teglia's humor, compassion, and dedication to tion until his transfer to the Logistics Base in ployment and training assistance, and these duty has been a source of inspiration to all of Barstow, CA 1 year later. From July 1988 until bills will help us fulfill that commitment. us who serve the public. June 1991, he served with the 12th Marine Last year, a Supreme Court ruling mistak­ Al Teglia served five terms in the Daly City Corps District Headquarters in San Francisco enly eliminated a portion of the job protection Council and four terms as mayor. He has before being reassigned to Headquarters, Ma­ we have provided for 50 years for people who served on numerous boards and commissions rine Corps here in Washington where he serve in the Reserves and National Guard. including the Airport Land Use Committee, served for 2 years. Because of this ruling, citizen soldiers who are California School Board Association, League On May 30, 1996, Staff Sergeant Scott re­ also employees. of a State government are at of California Cities, the Peninsula Joint Pow­ ported for duty with the Marine Corps' House risk of not being restored to their civilian jobs ers Board, and many others. He was instru­ Liaison Office and immediately assumed re­ following their military service. H.R. 166, the mental in negotiating the BART [Bay Area sponsibilities for coordinating, executing and Veterans' Job Protection Act, would restore re­ Rapid Transit] Colma extension and spear- supervising numerous tasks normally assigned employment protection for these individuals by 364 EXTENSIONS OF REMARKS January 9, 1997 making it clear that States must obey the law ers-the kind of people we need to strengthen sential to, education, public health, and public and reestablish these men and women in their and expand our economy-and those who safety of all people within the United States. State jobs when they return from their military want to pursue self-employment should be Indian and Alaskan Native people live in duties. supported and encouraged. some of the most geographically remote areas The Veterans' Training and Employment Bill These bills would significantly increase train­ of the country, with 50 percent of Indian and of Rights Act of 1997, H.R. 167, would provide ing and employment opportunities for those Alaskan Native people living in Oklahoma, that service-disabled veterans and veterans unique members of our American family-our California, South Dakota, Arizona, New Mex­ who serve in combat areas would be ''first in Nation's veterans. These special men and ico, Alaska, and Washington. line" for federally funded training-related serv­ women have more than earned the assistance Indian poverty in reservation areas in 3.9 ices and programs. Under current law, vet­ that would be provided by these measures. times the national average rate. The average erans are often underserved by national pro­ I want to take this opportunity to thank the phone penetration rates for rural Native Ameri­ grams such as the Job Training Partnership representatives of the major veterans' service cans is only 50 percent. The actual penetra­ Act [JTPA]. Veterans' service organizations organizations whose assistance in the devel­ tion rates are often much lower than 50 per­ have told us, for example, that program man­ opment of these bills was invaluable. I also cent-for example, the Navajo Nation esti­ agers sometimes tum veterans away from want to say that, as the ranking Democratic mates that 65 percent of its citizens do not JTPA dislocated worker programs because member of the Subcommittee on Benefits, I have telephones. What phone service there is they mistakenly assume that veterans receive look forward to working closely with the chair­ in Indian country is often sub-standard and the same services from the Department of man of the subcommittee and the chairman of prohibitively expensive. Veterans Affairs. My bill would reinforce our the full Veterans' Affairs Committee on these There is a continuing need for universal commitment to provide special training assist­ and other issues of importance to America's service in Indian country and for tribal govern­ ance for veterans and make it clear that eligi­ veterans. ments to be directly involved in providing ble veterans have earned a place at the front these services. · of the line. Among the recommendations in the 1995 Additionally, H.R. 167 would update the UNIVERSAL TELECOMMUNI- Office of Technology Assessment Report, Federal Contractor Job Listing Program. CATIONS SERVICES MUST MEET ''Telecommunications Technology and Native Under current law, Federal contractors with THE NEEDS OF NATIVE AMERI­ Americans" is a strengthened Federal/tribal contracts of $10,000 or more must make spe­ CANS government partnership in the telecommuni­ cial efforts to employ certain qualified disabled cations field to provide better services to per­ veterans and veterans of the Vietnam era. HON.Bill RICHARDSON sons in Indian country and to enable tribes to These contractors are also required to file an­ OF NEW MEXICO be direct providers of telecommunications nual reports with the Department of Labor lli THE HOUSE OF REPRESENTATIVES services. [DOL] regarding the number of veterans they Thursday, January 9, 1997 Now is the time to recognize the critical role have hired. H.R. 167 would increase the con­ that tribal governments can and must play in tract level to $100,000. This level would re­ Mr. RICHARDSON. Mr. Speaker, today, I in­ the implementation of universal service objec­ duce the number of reports filed and enable troduced a House Resolution expressing the tives. DOL to more carefully review and evaluate the sense of the House of Representatives that The FCC has 4 months to implement the contractor information. universal telecommunications service can only recommendations made by the Joint Federal­ This bill would also establish the first effec­ be met if the needs of Native Americans are State Board. Wrth the input of tribal leaders, I tive appeals process for veterans who believe addressed and policies are implemented with intend to introduce legislation that will codify their rights have been violated under certain the cooperation of tribal governments. It is im­ the positive recommendations of the Board. veterans' employment-related programs. My portant that we keep pressure on decision This will encourage the FCC to implement a bill would require the Secretary of Labor to as­ makers within the Federal Communications strategy of universal service that truly address­ sist veterans who think Federal contractors Commission [FCC] to address the needs of es the needs of tribes. have not met their obligation to hire veterans. Native Americans. The Secretary would also be required to help As the FCC prepares to adopt a policy on veterans who believe they were not given universal service, the implementation process CAVEAT EMPTOR: LAW AGAINST preference for enrollment in Federal training of the Telecommunications Act reaches a crit­ SALE OF DUPLICATE INSURANCE programs. A veteran could also file a com­ ical stage. I believe it is important to make it POLICIES TO SENIORS WEAK­ plaint directly with a district court. H.R. 167 perfectly clear that the intent of Congress can ENED would provide the ''teeth" that have been only be fulfilled if the universal service policies missing from some veterans' training pro­ or procedures established to implement the HON. FORTNEY PETE STARK grams and would go a long way toward ensur­ Act address the telecommunications needs of OF CALIFORNIA ing that veterans' rights are respected. low-income Native Americans, including Alas­ rn THE HOUSE OF REPRESENTATIVES Many veterans have told me they would like kan Natives. to own a small business, and our national While I concur with many of the universal Thursday, January 9, 1997 economy would certainly be strengthened if service recommendations made by the Joint Mr. STARK. Mr. Speaker, just a word of more veterans were able to establish their Federal-State Board, there are many ques­ warning to seniors: The law protecting against own companies. Because of this, I introduced tions left unanswered. the sale of worthless, duplicative insurance H.R. 168, the Veterans' Entrepreneurship Pro­ A genuine universal service policy will only policies which do not pay out benefits was motion Act of 1997. This bill is designed to as­ take hold if it can be implemented at reason­ weakened last year in the Kassebaum-Ken­ sist the development of small businesses able costs. These cost-effective solutions are nedy bill. owned by disabled and other eligible veterans. best developed with the cooperation of tribal The following memo from the Institute on Under this measure, a program would be es­ governments. Law and Rights of Older Adults makes the de­ tablished to help eligible veteran-owned small When congress enacted the Telecommuni­ ception clear. Congress legislated that 2 + 2 = businesses compete for Federal Government cations Act in February, great emphasis was 3 in saying that policies which "coordinate" contracts. Additionally, because adequate cap­ placed on ensuring the delivery of tele­ with Medicare and don't have to pay out bene­ ital is absolutely necessary for business start­ communications services, including advanced fits are not "duplicate" policies. up and expansion, H.R. 168 would establish a telecommunications and information services, PROTECTIONS AGAINST SALE OF DUPLICATE guaranteed loan program in the Small Busi­ , to all regions of the Nation. This principle of POLICIES WEAKENED ness Administration for veteran-owned . busi­ universal service is designed to address the The Health Insurance Portability and Ac­ nesses. Also included in my bill is a provision exceptional needs of rural, insular, and high­ countability Act of 1996 contains a provision to establish .a program of training, counseling, cost areas and make sure those services are that further weakens protections against and management assistance for veterans in­ available at reasonable and affordable rates. selling health insurance policies to MediCa.re terested in establishing a small business. Vet­ This policy was established in the belief that beneficiaries which provide benefits that du­ erans are smart, disciplined, and hard work- telecommunications services have become es- plicate their existing coverage. The new law January 9, 1997 EXTENSIONS . OF REMARKS 365 changes the disclosure statement given to gun is fired, the sentence is 20 years, and the bored the past Congress to advance the Medicare beneficiaries which was developed death penalty will apply if someone is killed. cause of modernization. It has been a difficult to warn them against purchasing a health in­ These mandatory sentences are imposed in road and efforts in the last Congress did not surance policy that duplicates Medicare cov­ addition to any for the actual crime. resolve the issue. erage. The current statement: "Important Our current U.S. financial laws and policy Notice to Persons on Medicare-This Insur­ Mr. Speaker, I believe this bill will serve to ance Duplicates Some Medicare Benefits," help our law enforcement agencies, and I are lagging actual marketplace conditions, a has been changed to: "Some health care strongly urge my colleagues to join me in sup­ circumstance that has been apparent for at services paid for by Medicare may also trig­ porting this legislation. least the past 6 years. The U.S. mixed econ­ ger the payment of benefits under this pol­ omy can best be served by a modernized icy." legal framework, serving the dynamic U.S. fi­ This change, along with Federal legislation A TRIBUTE TO DEPUTY JAMES W. nancial system shaped by the marketplace passed in 1994 which allows insurance compa­ LEHMAN, JR. AND DEPUTY MI­ and facilitated by congressional debate and nies to offer policies containing benefits CHAEL P. HAUGEN law, rather than by incremental uncertain regu­ which duplicate private health benefits held by a Medicare beneficiary as long as the pol­ latory change. We advance this proposed icy pays without regard to the other health HON. JERRY LEWIS measure as a continuation of, and building benefits, may result in beneficiaries' being OF CALIFORNIA upon successful efforts to modernize that sold policies that duplicate Medicare and began with the passage of interstate banking their private coverage and thus are of little HON. SONNY BONO in 1994. value. Note that selling a new Medigap pol­ OF CALIFORNIA While each provision of this bill may not be icy to someone who already has a Medigap HON. KEN CALVERT supported by every organization of the Alli­ policy is still against the law unless the per­ ance, nor members within the organizations, OF CALIFORNIA son plans to drop the previously held this comprehensive effort certainly dem­ Medigap policy. While the practice of insur­ IN THE HOUSE OF REPRESENTATIVES ance companies' selling policies (other than onstrates that groups can come to the table Medigap) to Medicare beneficiaries which Thursday, January 9, 1997 and work constructively together for mod­ pay benefits without regard to their other Mr. LEWIS of California. Mr. Speaker, we ernization. I'm hopeful that we can build upon health coverage is allowed, the policies must would like to bring to your attention the mem­ this strong base a still broader coalition and include the following, " This policy must pay ory of two Riverside County sheriff's deputies act to modernize our laws in this complex fi­ benefits without regard to other health ben­ who became victims of a senseless and tragic nancial marketplace. efit coverage to which you may be entitled act of violence on January 5, 1997. Early Sun­ In the last Congress, Chairman ROUKEMA under Medicare or other insurance." and I worked together on charter conversion The new law clarifies that a policy pro­ day morning, Deputy James W. Lehmann, Jr. viding long-term care benefits (defined as and Deputy Michael P. Haugen, two of our fin­ as part of the BIF-SAIF bill (H.R. 2363) that nursing home and non-institutional cov­ est law enforcement officials, gave their lives finally evolved into the House position last erage, nursing home only or home care only) in the line of duty. year and became the basis for provisions en­ which coordinates benefits with Medicare or The deputies, these husbands, these fathers acted into law. Importantly, the comprehensive other private health insurance policies (co­ went out everyday to make a difference and Depository Institution Affiliation and Thrift ordinates means that the long-term care pol­ they did-some days in small ways, some Charter Conversion Act we now introduce in­ icy pays secondary benefits or does not pay days in big ways, and, on this date, at the cost cludes thrift charter conversion and the many benefits for services covered under Medicare attendant issues of thrift conversion. This bill or other health insurance coverage) is not of their lives. One cannot ask more of peace considered duplicate coverage. Additionally, officers. Deputies Lehmann and Haugen de­ is a comprehensive approach that establishes long-term care policies must now include the serve our deepest respect and gratitude. a policy of functional regulation involving all statement, "Federal law requires us to in­ Mr. Speaker, I ask that you and our col­ the regulators, Glass Steagall reform, and the form you that in certain situations this in­ leagues join us today in remembering these affiliations issues. I am confident we will con­ surance may pay for some benefits also cov­ fine men. Our prayers and most heartfelt sym­ tinue to work together to make improvements ered by Medicare." pathy are extended to their families and loved in the legislation so that it will not only mod­ ones. To Deputy Lehmann's wife, Valerie, son, ernize financial systems, but will also protect Christopher and daughter, Ashley; and Deputy the safety and soundness of the deposit insur­ MANDATORY MINIMUM Haugen's wife, Elizabeth, son, Stephen, and ance funds and better serve and preserve our SENTENCES daughter, Catherine-we honor the memory of economic role in the world. your loved ones and wish them God's peace. Changes have been made to the bill since HON. BENJAMIN A. GILMAN it was introduced last fall. Several amend­ OF NEW YORK ments were suggested by the American Coun­ INTRODUCTION OF THE DEPOSI­ IN THE HOUSE OF REPRESENTATIVES cil of Life Insurance. Others were incorporated TORY INSTITUTION AFFILIATION at the suggestion of the thrift industry which Thursday, January 9, 1997 AND THRIFT CHARTER CONVER­ continues to prefer an even broader approach Mr. GILMAN. Mr. Speaker, I rise today in SION ACT (H.R. 268) to affiliations. As we move forward with the strong support of this legislation which im­ necessary subcommittee hearings and pro­ poses tougher mandatory minimum sentences HON. BRUCE F. VENTO ceed to a markup, we will continue to modify for those individuals who possess firearms OF MINNESOTA the legislation. Even as we have introduced while committing a violent or drug-related IN THE HOUSE OF REPRESENTATIVES this legislation this week, I have reservations crime. : about several aspects of the bill including the Under current law, an individual who uses Thursday, January 9, 1997 regulatory framework for financial services or carries a firearm while committing a violent Mr. VENTO. Mr. Speaker, I am pleased to holding companies. This more SEC-like struc­ or drug-related crime automatically receives a join Chairwoman ROUKEMA in sponsoring the ture will certainly require further scrutiny as we mandatory 5-year sentence in addition to the reintroduction of the Depository lnstiMion Af­ evaluate its appropriateness and its fit with the sentence for the crime in question. However, filiation and Thrift Charter Conversion Act. structure of insured depository institutions. a recent Supreme Court decision stated that This bill is a marker of our intent to move for­ As this broad legislation moves forward, I the criminal must actively employ the weapon ward this year in a bipartisan manner on legis­ am able to envision a number of improve­ in order to trigger the mandatory sentence. lation that we are hopeful will translate into ments as questions are resolved. We will be This decision has hampered an effective tool meaningful financial services modernization. It looking to ensure that any measure we bring for law enforcement. is a product of compromise between the most to the full House will provide assurance that This legislation will allow Federal prosecu­ significant groups in the financial services in­ tough firewalls are intact and that the measure tors to apply the mandatory sentence even if dustry who refer to themselves as the "Alli­ will not expose the taxpayers to new costs the criminal does not fire or brandish the ance". from activities with more risk potential. Con­ weapon. In addition, the mandatory sentence Many members of the Banking Committee gress must also ensure that a proper focus is is now increased from 5 to 1O years. If the and other committees in the House have la- kept clear for service and responsibilities to 366 EXTENSIONS OF REMARKS January 9, 1997 local communities and consumers. As the U.S. INTRODUCTION OF A CONSTITU- THE FREEDOM OF CHOICE FOR strives to be more competitive internationally, TIONAL AMENDMENT TO ABOL- WOMEN IN THE UNIFORMED financial instiMions must remain active and ISH THE ELECTORAL COLLEGE SERVICES ACT viable in our localities even as the law pro­ vides and prepares U.S. financial institutions HON. JANE HARMAN for competition in the global marketplace. HON. RAY LaHOOD OF CALIFORNIA This bill's overall approach reflects a com­ OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES promise between a substantial portion of the players active in providing financial services­ IN THE HOUSE OF REPRESENTATIVES Thursday, January 9, 1997 key banking, thrift, and securities participants Thursday, January 9, 1997 Ms. HARMAN. Mr. Speaker, among the with input from some in the insurance industry. more extreme laws put in place by the last This bill represents positions that they, too, Mr. LAHOOD. Mr. Speaker, Today, I am Congress is the policy banning privately fund­ have tried to bring into harmony for the pur­ proud to introduce, along with Congressman ed abortions performed at overseas military pose of shaping a policy for the future. It is a WISE from West Virginia, a constitutional hospitals. This policy means that women serv­ sound framework, a base, not necessarily the amendment that seeks to end the arcane and ing overseas in our Nation's Armed Forces final product or policy. By placing this bill on obsolete instiMion known as the electoral col­ cannot exercise the same constiMional rights the agenda, it is my hope to advance this de­ lege. afforded women living in the continental bate and dynamic to a successful change in It is no accident that this bill is being intro­ United States. These servicewomen and their policy in the near future which will serve duced today, the day that the electoral ballots dependents could be forced to seek illegal and American enterprises and consumers in our are opened and counted in the presence of unsafe procedures or could be forced to delay mixed economy today and tomorrow. the House and Senate. I hope that the timing the procedure until they can return to the of this bill's introduction will only underscore United States. the fact that the time has come to put an end This is an issue of fundamental fairness. to this archaic practice that we must endure Servicewomen and military dependents sta­ TRIBUTE TO THE GREENPOINT every 4 years. tioned abroad do not expect special treatment, GAZETTE only the right to receive the same constitu­ Only the President and the Vice President tionally protected medical services that women of the United States are currently elected indi­ in the United States receive. HON. CAROLYN B.MALONEY rectly by the electoral college-and not by the Thafs why today, as the senior Democratic OF NEW YORK voting citizens of this country. All other elected woman on the House National Security Com­ officials, from the local officeholder up to U.S. IN THE HOUSE OF REPRESENTATIVES mittee, I am introducing the "Freedom of Senator, are elected directly by the people. Thursday, January 9, 1997 Choice for Women in the Uniformed Services Our bill will replace the complicated elec­ Act." This bill simply repeals the statutory pro­ Mrs. MALONEY of New York. Mr. Speaker, toral college system with the simple method of today I rise in tribute to the Greenpoint Ga­ hibition on abortions in overseas military hos­ using the popular vote to decide the winner of pitals and restores the law to what it was dur­ zette, a local newspaper which celebrates its a Presidential election. By switching to a direct 25th anniversary on Saturday, January 11, ing most of the Reagan administration. If en­ voting system, we can avoid the result of acted, women would be permitted to use their 1997. This newspaper has made a major con­ electing a President who failed to win the pop­ tribution to the Williamsburg-Greenpoint com­ own funds to obtain abortion services. No ular vote. This outcome has, in fact, occurred Federal funds would be used and health care munity of Brooklyn, NY, and deserves honor three times in our history and resulted in the for its many years of dedicated service. professionals who are opposed to performing elections of John Quincy Adams, 1824, Ruth­ abortions as a matter of conscience or moral The Greenpoint Gazette started publication erford B. Hayes, 1876, and Benjamin Har­ principle would not be required to do so. in 1971. At that time, local residents had expe­ rison, 1888. I would like to thank my colleagues CONNIE rienced frustration with the existing newspaper MORELLA, ROSA DELAURO, SUE KELLY, RON for its uneven reporting on local candidates. A In addition to the problem of electing a DELLUMS, JOHN BALDACCI, EVA CLAYTON, JOHN few of these residents, Ralph Carrano and President who failed to receive the popular CONYERS, SAM FARR, BARNEY FRANK, MARTIN Adelle Haines, among them, launched the vote, the electoral college system also allows FROST, LYNN RIVERS, LUCILLE ROYBAL-ALLARD, Greenpoint Gazette. It began out of Adelle for the peculiar possibility of having Congress and LOUISE SLAUGHTER for joining me as origi­ Haines' house. Revenue for the paper came decide the outcome should a Presidential tick­ et fail to receive a majority of the electoral col­ nal cosponsors. from advertisements, paid notices, and the I urge the House to take up and pass this newsstand price of 1O cents a copy. lege votes. Should this happen, the 12th amendment requires the House of Represent­ important legislation restoring the right of free­ The Greenpoint Gazette has always been atives to elect a President and the Senate to dom of choice to women serving overseas in responsive to and involved in the community it elect a Vice President. Such an occurrence our Nation's Armed Forces. serves. Residents of Greenpoint use the paper would clearly not be in the best interest of the to celebrate birthdays, births, and anniver­ people, for they would be denied the ability to saries; to announce weddings, engagements, THE PURSUIT OF PROFIT: NON­ directly elect those who serve in our highest graduations, job promotions, and deaths; and offices. PROFIT HOSPITALS BECOME THE to voice opinions about issues of the day. BIG PUBLICr ·-G:rt.IEAWAY OF THE Each year, the Gazette sponsors the Miss This bill will put to rest the electoral college NINETIES Polonia event, a beauty contest to select the and its potential for creating contrary and sin­ young woman who will be chosen to represent gular election results. And, it is introduced not without historical precedent. In 1969, the HON. FORTNEY PETE STARK the community in Manhattan's Pulaski Day Pa­ OF CALIFORNIA rade. The Gazette regularly publishes press House of Representatives overwhelmingly IN THE HOUSE OF REPRESENTATIVES releases submitted by elected officials to keep passed a bill calling for the abolition of the voters informed of Federal, State, and local electoral college and putting a system of direct Thursday, January 9, 1997 issues. Finally, in keeping with its 25-year tra­ election in its place. Despite passing the Mr. STARK. Mr. Speaker, today along with dition as the voice of all of Greenpoint, the House by a vote of 338 to 70, the bill got Mr. LEWIS of Georgia, Mr. MCDERMOTT, Mr. paper welcomes submissions with opinions bogged down in the Senate where a filibuster WAXMAN, Mr. FILNER, Mr. KENNEDY of Rhode that differ from those of the editors. blocked its progress. Island, and Mr. BROWN of Ohio, I am pleased Mr. Speaker, I am proud to pay tribute to So, it is in the spirit of this previous action to introduce the Medicare Non-profit Hospital the Greenpoint Gazette, a paper which takes that we introduce legislation to end the elec­ Protection. AdtOf 1997 in ·response to the fast­ pride in its service to the Williamsburg­ toral college. I am hopeful that our fellow growing number of hospital conversions. Con­ Greenpoint community. I ask that my col­ members on both sides of the aisle will stand version refers to the process by which a non­ leagues join with me in honoring the Gazette with us by cosponsoring this important piece profit entity opts to change its nonprofit status for 25 years of dedicated and reliable service. of legislation. and forgo its tax exemption. In a conversion, January 9, 1997 EXTENSIONS OF REMARKS 367 investor-owned, for-profit companies buy com­ there are often conflicts of interest among the that the conversion price is fair, without sweet­ munity, nonprofit hospitals in deals that usually parties; the mission of the nonprofit foundation heart deals or private party gain. The legisla­ are secret, with costs and details not dis­ that results from the conversion may not be tion would deny Medicare payment to any closed. Proceeds of the sales are suppose to consistent with the original mission of the hos­ hospital that did not demonstrate the fairness establish charitable foundations. pital-the funds in the resulting foundation are of the conversion process to the Secretary of HEALTH CARE IS A SERVICE, IT IS NOT A COMMODITY TO sometimes used for things like sports training Health and Human Services. BE BOUGHT AND SOLD facilities, flying lessons, or foreign language Some how we've reached the point where programs in schools; and the valuation price is our society thinks of the medical system not in often much less than it should be. Perhaps terms of keeping patients well or helping them most important, quality and access to health LORING JOB CORPS CENTER get better but instead as a fiercely competitive care in the community is often significantly di­ OPENS ITS DOORS business in which survivors concentrate on minished. making tremendous amounts of money. COLUMBIA HCA-THE PAC-MAN OF THE INDUSTRY HON. JOHN ELIAS BALDACO The late Cardinal Bemadin, Archbishop of Columbia HCA, the largest of the for-profit OF MAINE Chicago, had it right in his speech to The Har­ hospital chains, is characterized as the PAC­ vard Business School Club of Chicago, He MAN of the industry-gobbling up nonprofit IN THE HOUSE OF REPRESENTATIVES said: hospitals as it expands its market share in Thursday, January 9, 1997 Health care ... is special. It is fundamen­ communities across the United States. Nation­ tally different from most other goods be­ Mr. BALDACCI. Mr. Speaker, on January 2, wide, Columbia HCA is riding high from doz­ State of Maine Governor Angus King pro­ cause it is essential to human dignity and ens of acquisitions of hospitals that have the character of our communities. It is . . . claimed the week of January 5, 1997, as "Job one of those goods which by their nature are made it not only the biggest-with 355 hos­ Corps Week" in recognition of the outstanding not and cannot be mere commodities. Given pitals-but also one of the wealthiest for-profit education and training opportunities provided this special status, the primary end or essen­ chains with $18 billion in annual revenue. by the Penobscot Job Corps Center in Ban­ The political muscle of Columbia is leg­ tial purpose of medical care delivery should gor, ME, and in anticipation of the opening of endary. When it enters a community in pursuit be a cured patient, a comforted patient, and the Loring Job Corps Center of Innovation in a healthier community, not to earn a profit of an acquisition, Columbia lines up blue-chip Limestone, ME. The State of Maine has had or a return on capital for shareholders. legal talent, identifies allies among local civic, a very positive experience with the Job Corps The goal isn't health care anymore-the political, and medical leaders, and spreads Program, and I am very proud of the fine work goal has become the care of the stockholder around lots of money. In 1995, for example, this program does with at-risk students from interest. Columbia had 33 lobbyists in Tallahassee, FL. my State and throughout New England. THE PROBLEM It also leads the list of corporate campaign I am pleased to announce that the first Historically, the nonprofit hospital has, in contributors in Florida. group of students to utilize the new Loring Job general, assured that necessary services are The questionable practices of Columbia Corps Center will be arriving this week. Some available, that all populations are cared for, HCA are numerous, but one issue is particu­ of these students have been waiting since July and that there is always a place to go for care. larly important. In Florida, health care officials to begin their work at this new facility, which The goal of a for-profit hospital is just that­ cited the possibility that Columbia hospitals has been designated by the Department of profit The for-profits allegiance is to their engage in cream-skimming. They allege that Labor as a "center of innovation." This is sig­ shareholder, not the community-and certainly doctors, who own stakes in Columbia facilities, nificant, in that it will offer students from dis­ not the uninsured or poor. The for-profit hos­ send the most profitable patients there-and advantaged backgrounds advanced programs pital chains have the minds of piranha fish and steer less-profitable patients to the public and that have not been available through the tradi­ the hearts of Doberman pinschers. charity hospitals. The practice of physician Whereas for-profit hospitals are accountable self-referral in many instances is illegal, and I tional Job Corps Program. to their shareholders, nonprofit hospitals have have asked the Health Care Financing Admin­ The Loring Center will provide vocational another kind of accountability-to patients, to istration to investigate Columbia's investment training a grade above that which is normally providers of care, to payers and to the com­ structure and referral patterns. provided. It will also have the benefit of being munities in which they operate. Instead of pro­ Columbia HCA and its doctor affiliates are in able to work in conjunction with its sister facil­ ducing a return on investments to share­ the business of building medical trusts and de­ ity, the Penobscot Job Corps Center. Both the holders, nonprofit hospitals have the inherent stroying public and nonprofit hospitals who Penobscot and Loring Job Corps Centers, motivation and deep obligation to produce a take the tougher, less profitable cases. Colum­ designated as alternative schools, are part of different kind of return-that of quality care to bia and similar for-profit entities are not in the the State of Maine's School to Work transition their patients and overall good for the commu­ business of health care. They're in the busi­ plan. nity. ness of mergers and acquisitions. It wouldn't As a tool for economic development, the The need to show a profit focuses the for­ matter if their product was can openers or Loring Center will provide a highly skilled profit hospital on cost structure rather than on chairs. They run the business like a Walmart workforce for Maine and New England. It will the structure of care. Their decisionmaking is run-I firmly believe that hospitals shouldn't also play a crucial role in the area's edu­ cannot help but he skewed toward share­ be run that way. cational and economic development strategies holders rather than patients. Whereas non­ LEGISLATION in conjunction. 'tNfni,the University of Maine at profit hospitals manage care because doing so For the past three Congresses, I have Presque ~ ~ °'!: ,Northern Maine Develop­ improves health outcomes, for-profit hospitals worked on legislation to ensure that the ad­ ment Corporation, the Northern Maine Tech­ manage the cost of care because it is the vantages of tax exempt status ultimately ben­ nical College, the Maine SchoQI for Science cheapest, most profitable thing to do. Their efit the community and not private individuals. and Mathematics, the Aroostook County Ac­ primary legal and fiduciary duty-to return a My bills have imposed excise taxes-based tion Program and the Caribou Adult Education profit to the shareholders-puts patients and on the foundation rules-as intermediate sanc­ Program. Working together, these entities will public welfare in second place. tions on 501(c)(3) and 501(c)(4) organizations position the region as a center for educational In 1993, there were 18 conversions of non­ engaging in transactions with insiders resulting innovation and excellence. profit hospitals and health care plans. In 1995, in private inurement. Bills have also made pri­ I'm pleased that students will now have the there were 347. In the past 18 months, for ex­ vate inurement a statutory prohibition for opportunity to get the technologically relevant ample, Columbia HCA, the largest of the for­ 501(c)(4) organizations, the social welfare or­ skills they will need to move forward in today's profit hospital chains, has completed, has ganizations which include many health non­ job market. I am also proud to have the Loring pending, or is in the process of negotiating profits. Center as a pilot for new educational concepts more that 100 acquisitions or joint ventures The bill I am introducing today protects the and technologies that may later be used in with nonprofit hospitals. public interest in conversions and is modeled Job Corps facilities throughout the country. I have many concerns about the sale of after Nebraska and California laws. It makes Congratulations to Don Ettinger, the Loring nonprofit hospitals to for-profit corporations: sure that conversions are carried out in the Center's director, his staff, and TDC for their too often the terms of the sale are secret; sunshine of public information and debate and fine work with the students. 368 EXTENSIONS OF REMARKS January 9, 1997 TRIBUTE TO THE SUFFOLK ALLI­ when a CMRA customer relocates, that indi­ ness is the nerve center of this county's cur­ ANCE OF SPORTSMEN INC. AND vidual is responsible for informing all potential rent economic growth. Sixty-five percent of the ITS FOUNDER, WILLIAM W. mailers of any change of address. This policy companies in the medical device industry have SHABER creates delays and may exacerbate mail fraud less than 20 employees and 98 percent of as testimony has shown that the first line of medical device firms have less than 500 em­ HON. MICHAEL P. FORBFS defense against fraud is accurate information ployees. These are the companies involved in OF NEW YORK regarding postal addresses. high technology which is fueling economic ex­ Current policy is contradictory to the Postal pansion, these are the companies hiring your IN THE HOUSE OF REPRESENTATIVES Service's charge to ensure prompt, accurate constituents, these are the companies doing Thursday, January 9, 1997 mail delivery service. This important legislation the research and development that can lead to Mr. FORBES. Mr. Speaker, I rise today to will benefit all parties in this particular mail de­ saving your constituenfs lives. These small pay tribute to the Suffolk Alliance of Sports­ livery chain: the U.S. Postal Service, the companies have been more vocal on FDA men, Inc. [SASI] and its founder William W. CMRA's, and most important, the postal cus­ modernization in the last 2 years and I ap­ Shaber. Thanks, in large part, to Mr. Shaber's tomer. plaud them in their efforts. leadership, SASI has emerged as the leading We spent a great deal of time laying the voice among sportsmen in Suffolk County. Mr. groundwork for reform in the 104th Congress THE NEED FOR FDA for FDA reform by educating Members, con­ Shaber's vision of achieving a balance be­ MODERNIZATION tween game life and sportsmen has made him ducting oversight hearings, and working with a pioneer in his field. various segments of the industry. It is now SASI was founded in 1978 on 7 basic prin­ HON. JOE BARTON time for the 105th Congress to implement the ciples: (1) to preserve and improve the rights OF TEXAS solution. I look forward to working with House of hunters, sport-shooters, salt and fresh water IN THE HOUSE OF REPRESENTATIVES Commerce Committee Chairman BULEY, sub­ fishermen, and trappers; (2) to promote and Thursday, January 9, 1997 committee Chairman BtLIRAKIS, Congressman encourage laws for the protection of fish, Mr. BARTON of Texas. Mr. Speaker, in this DINGELL, and Senate Majority Leader Lorr in game life and forests in the State of New last election cycle, many of us campaigned on arriving at an acceptable solution to all. York; (3) to encourage and promote the prop­ the need for the Federal Government to use a agation of fish and game in Suffolk County common sense approach in dealing with pri­ THE ENTERPRISE CAPITAL and elsewhere; (4) to encourage the passing vate industry. The regulatory yoke placed FORMATION ACT OF 1997 of legislation to protect sportsmen and game upon the medical device industry in the United life; (5) to promote and encourage better un­ States by the Food and Drug Administration is derstanding among the members and general a prime example of how a bureaucratic agen­ HON. ROBERT T. MATSUI public as to the proper use of hunting and cy can destroy small business, as well as the OF CALIFORNIA fishing equipment and the proper use of boats entrepreneurial spirit. IN THE HOUSE OF REPRESENTATIVES and other related equipment as well as proper My goal, which I believe is shared with Thursday, January 9, 1997 use of our natural resources and · good con­ many of my colleagues on both sides of the Mr. MATSUI. Mr. Speaker, I am pleased to servation practices; (6) to promote, encourage aisle, is to modernize the Food and Drug Ad­ join my House colleagues and fellow members and educate its members and the general ministration. This is to be distinguished from of the Ways and Means Committee, Con­ public in the principles of safety in the use of terminating or eliminating the FDA, which I gressman PHIL ENGLISH, and Congressman arms; and (7) to promote, encourage and pro­ have also been accused of, and I want to JIM McCRERY in a bipartisan effort to promote vide social and friendly intercourse among its make it clear that I believe there is a legiti­ economic growth and job creation through tar­ members. mate need for the FDA. However, it is impera­ geted capital gains incentives. This legislation From 1978 to 1993, Mr. Shaber served as tive that this Congress lead the charge to is designed to be complimentary to a broad­ President of SASI for all but 2 years. In addi­ bring the FDA into the 21st century. The cur­ based capital gains proposal similar to that tion to serving as president, Mr. Shaber was rent FDA approval process is slow and unpre­ passed by the House in the 104th Congress. a prominent writer of sportsmen interests. He dictable, while at the same time costing the I have worked for many years to enact leg­ was a correspondent for the New York Sports­ United States jobs, technology, and most im­ islation which provides critical incentives for man magazine, a long-time member of the portantly-lives. high-risk, high-growth firms. In 1993, I was Rod and Gun Editors Association of Metropoli­ We held numerous hearings in the 104th able to work with Senator BUMPERS to enact tan New York, and a past president of the Congress in my subcommittee and others de­ the Enterprise Capital Formation Act of 1993. Outdoor Writers Association. I commend SASI tailing the need to change the manner in This new, bipartisan proposal is built upon that and Mr. Shaber on taking the lead in pro­ which our domestic device industry is regu­ 1993 legislation and will greatly improve its ef­ moting sportsmen interests while also pre­ lated. In the 104th Congress I introduced H.R. fectiveness by: serving fragile wildlife. 3201 to reform the medical device industry. Shortening the holding period for qualified With the help of many of my Democrat col­ stock from 5 years to 3 years. leagues, especially BILL RICHARDSON and Increasing the size of companies whose LEGISLATION AMENDING POSTAL ANNA EsHoo, we were able to get 162 co­ stock is eligible for the exclusion from $50 mil­ SERVICE POLICY sponsors on H.R. 3201, both Republican and lion to $100 million. Democrat. This strongly indicates that there is Revising certain limitations to make the pro­ .HON. DON YOYNG support for FDA reform. I intend to continue vision more attractive to investors. OF ALASKA refining H.R. 3201 in hopes of obtaining more Biotech and high-technology companies are particularly dependent upon direct equity in­ IN THE HOUSE OF REPRESENTATIVES support. Under the leadership of JIM GREEN­ WOOD, and with the great deal of help from vestments to fund research and to grow. A tar­ Thursday, January 9, 1997 RICHARD BURR and Scorr KLUG, our FDA re­ geted capital gains incentive is crucial for en­ Mr. YOUNG of Alaska. Mr. Speaker, today form team was able to make amazing strides couraging investors, including venture capital I rise to introduce legislation that will amelio­ and I fully intend to maintain this momentum. investors, to purchase the stock of these com­ rate problems stemming from the U.S. Postal I will be introducing the Medical Device panies, thus putting their capital at risk with a Service policy that prohibits the users of com­ Modernization Act of 1997 shortly, which will long-term speculative investment. These small mercial mail receiving agents [CMRA's] from insure the safety and effectiveness of medical venture-backed companies provide high-skilled submitting a standard change of address form devices, assure a predictable approval proc­ jobs, grow very quickly to create more jobs to expedite routine mail delivery service. ess for our companies and insure that U.S. and are aggressive exporters. Venture capital­ In nearly all cases when an individual patients are receiving the best available med­ backed firms have a much higher rate of changes residency, the U.S. Postal Service fa­ ical technology in the world. I will be asking for growth than Fortune 500 firms. From 1990 to cilitates prompt and accurate mail delivery by your cosponsorship and support of this bill. 1994, venture firms grew at an annual rate of encouraging the postal customer to file ·a mail Again it is imperative that we pass reform 20 percent while Fortune 500 firms are power­ forwarding change of address form. Atypically, for the medical device industry. Small busi- ful engines for job creation. In their first year, January 9, 1997 EXTENSIONS OF REMARKS 369 these firms typically have 18 employees, by The past year has marked another turning TRIBUTE TO THE CORAL GABLES their sixth year they have over 200. Finally, point in BCA's expansion. BCA's work force SENIOR HIGH SCHOOL RUEDA KIDS these firms perform 2 times the amount of re­ has remained the same but the association search and development compared to nonven­ has expanded, reaching a much wider com­ HON. ILEANA ROS.LEHTINEN ture-backed firms. munity than ever before. In May 1996, BCA OF FLORIDA Now more than ever, small companies need opened a new District Community and Senior ill THE HOUSE OF REPRESENTATIVES better access to investment capital in order to Center delivering bilingual multi-human serv­ grow into productive enterprises. The risks as­ ices to the increasing Asian immigrant popu­ Thursday, January 9, 1997 sociated with small firms has often been too lation in the Sheepshead Bay neighborhood, Ms. ROS-LEHTINEN. Mr. Speaker, I would great for venture capitalist. By giving a capital an area that is becoming the second largest like to take this opportunity to express my con­ gains cut for investment in small, startup firms, Asian community of Brooklyn. BCA has also gratulations to the Coral Gables Senior High the higher risks are offset by additional finan­ been actively involved in registering voters School Rueda Kids for their fantastic dancing cial benefit to the investor. and in educating the community on voting poli­ abilities and their desire to keep our Hispanic cies and procedures. heritage alive through their performances in 1996 is also the year in which BCA initiated Cuban salsa music-Rueda Casino. Their ex­ A POWT OF LIGHT FOR ALL ceptional talent and dedication to this art has AMERICANS: THE BROOKLYN the Community Revitalization Project that serves as a master development scheme for brought much happiness to all those who have CHINESE-AMERICAN AS SOCIA- the community. This summer, 10 traffic lights been privileged enough to witness their TION were installed as a result of BCA's constant dances. lobbying efforts. In addition, BCA is working The Gables Rueda Kids started only last HON. MAJOR R. OWENS with the New York City Police Department to year as an informal group and has since then OF NEW YORK prepare and distribute educational materials received two awards from the U.S. Postal ill THE HOUSE OF REPRESENTATIVES on crime prevention, the CAT Auto Program Service and won first prize and a special Thursday, January 9, 1997 and business residential security surveys. award at the Dade County Youth Fair in These are major steps toward making a better March. Among the group's future plan is to Mr. OWENS. Mr. Speaker, I rise to honor and much safer community in which to live. compete in a State competition to be held next the Brooklyn Chinese-American Association One of BCA's accomplishments this year is spring and the member's participation in the [BCA] during their Ninth Anniversary Celebra­ Calle Ocho festival held yearly in Miami hon­ tion. The members of this organization have the educational Neighborhood Clean-Up Project. More than 150 youth participated in oring their Cuban heritage. tirelessly dedicated themselves to addressing The dancers are 13 students, 1 O of whom the growing needs of the Asian immigrant cleaning up the 8th Avenue neighborhood and providing informative materials to community were born in Cuba, 2 of Cuban parents and 1 population in Brooklyn and to providing resi­ that is originally from Honduras. Michael dents of this community accessible bilingual residents and merchants. Recently, BCA also assisted in upgrading a garment factory in the Alonso, Kathleen Andino, Yurlaimes Caballero, and multicultural services. BCA is a great Anyer Cruz, Niviys Diaz, David Espinosa, Point-of-Light whose contributions to the com­ neighborhood and has long supported pro­ moting the economic progress and stability of Yulaidy Lopez, Eddy Gamayo, Evelyn Gon­ munity must not go unappreciated or unno­ zalez, David Hernandez, Jesus Moreno, Car­ ticed. the garment industry in Brooklyn. Moreover, a Tree Planting project was implemented to fur­ los Osle and Alicia Reyes-Quesada, who is On January 19, 1988, BCA was formally es­ also their teacher, compose the group. All 13 tablished in response to the expanding Asian­ ther beautify Brooklyn. Two hundred trees are scheduled to be planted along 8th Avenue in demonstrate their love for salsa music through American community in the Sunset Park, Bor­ their dances and prove that America's teen­ ough Park,' Bay Ridge, Bensonhurst, and the spring of 1997. In a further attempt to im­ prove the living environment, a Graffiti Re­ agers are aware of their cultural background Sheepshead Bay neighborhoods in Brooklyn. and display it with pride. At its inception, the association received no moval Campaign will also be initiated in the spring 1997 with the community Boy Scouts. I commend them not only on their desire to funding and nearly single-handedly, Mr. Paul keep their Hispanic heritage alive, but also in P. Mak, the president and CEO of BCA, Two town hall meetings were sponsored in November, one at Sunset Park, Borough Park, their spirit and commitment to share it with ev­ worked on a voluntary basis to initiate and eryone else. provide a bilingual social service program for and the Bay Ridge Chinatown area and the the Asian immigrant community. other at the Sheepshead Bay and Wrth 9 years of hard work, intense explo­ Bensonhurst neighborhood, to provide an op­ KIDS, POVERTY, AND THE NEED ration and struggle, BCA has grown from a portunity for the communities to- voice their FOR HEALTH INSURANCE one-person service project to the borough's concerns. most comprehensive bilingual, multi-human In recognition of its many contributions to HON. FORTNEY PETE STARK the Brooklyn community, the Brooklyn Chi­ service and community development organiza­ OF CALIFORNIA nese-American Association received the 1996 tion. Currently, BCA delivers services at var­ ill THE HOUSE OF REPRESENTATIVES ious centers in Brooklyn such as the Main Welcome Back to Brooklyn Award for Out­ Community Services Center; Senior, Youth standing Civic Leadership and Economic De­ Thursday, January 9, 1997 and Cultural Center; Employment Training velopment in Brooklyn. This honor was pre­ Mr. STARK. Mr. Speaker, this Congress Center; Day Care Center; Avenue U District sented to both BCA and the 1996 Nobel Prize must stop the rise in poverty among the Na­ Community and Senior Center; and at numer­ winning scientist. In the past, this age old an­ tion's children and-a related issue-stop the ous school sites. In the past few years, be­ nual award has always been presented to dis­ rise in the number of children who are unin­ cause of the lack of Government funding and tinguished individuals and celebrities; however sured. personnel, BCA has undergone several crises this is the first time in history that an Asian or­ Two reports in December point to the mag­ and struggles to keep the organization afloat. ganization received the prestigious honor. Fur­ nitude of the problem-and to some of the so­ It is the dedication, enthusiasm and pains­ thermore, the Brooklyn Historical Society also lutions. taking efforts of BCA's staff, its board mem­ honored BCA this year with the Brooklyn His­ On December 11, the Center on Budget and bers and the community that have sustained tory Maker Award. Policy Priorities reported that nearly 2.7 million BCA and enabled it to develop rapidly. As we approach the 21st century, this Na­ low-income children were eligible for Medicaid, Today, BCA serves over 500 clients a day. tion is becoming more ethnically and racially but went without health insurance for all of BCA's many human services and programs in­ diverse. Any endeavor that maximizes the par­ 1994. In addition, 2.1 million children who clude social services; senior services; day ticipation of immigrants into society is worthy qualified for Medicaid, but were not enrolled, care and youth services; adult education pro­ of commendation. The Brooklyn Chinese­ had some form of private insurance at some grams; adult and senior employment pro­ American Association's efforts to address the point in the year, but either were uninsured for grams; services for the mentally retarded and needs of the Asian population of Brooklyn part of the year or had inadequate private cov­ developmentally disabled [MR/DD]; and com­ deem it a great Point-of-Light not only for the erage that could have been supplemented by munity economic development programs. people of Brooklyn, NY, but for all of America. Medicaid. 370 EXTENSIONS OF REMARKS January 9, 1997 Mr. Speaker, surely this Congress can find THE MEDICARE MAMMOGRAPHY For these reasons, and in honor of the fact ways to make the Medicaid program more us­ ENHANCEMENT ACT that 1997 has been declared the "International able and more automatic for the families of Year of the Reef," I urge swift and favorable needy children. If Medicaid eligible children HON. BARBARA B. KENNELLY consideration of this resolution. could be brought into the program, the rolls of OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES the Nation's 1o million uninsured children LEGISLATION TO REQUIRE CON­ could be easily and quickly reduced by 27 per­ Thursday, January 9, 1997 SIDERATION OF A BALANCED cent. Mrs. KENNELLY of Connecticut. Mr. Speak­ BUDGET In a second report, Columbia University's er, the facts on breast cancer are well known: National Center for Children in Poverty found 44,000 women die from the disease every HON. KEN BENTSEN that nearly half-45 percent-of young chil­ year in this Nation. The tragedy of this loss is OF TEXAS escalated by the fact that some and perhaps dren-those under 6--were in poverty or near IN THE HOUSE OF REPRESENTATIVES even many of these deaths are preventable. poverty. Poverty among children = bad health In short, mammography can and does save Thursday, January 9, 1997 and a lifetime of social and personal problems. lives. As any doctor will tell you, the earlier Mr. BENTSEN. Mr. Speaker, the first priority As the report said: "Young children in poverty you find breast cancer, the less likely it is to of the 105th Congress is to finish the job of re­ are more likely to: be born at a low birth­ be fatal. A mammogram can find 85 to 90 per­ storing fiscal responsibility and balancing the weight; be hospitalized during childhood; die in cent of breast cancer tumors in women as Federal budget. infancy or early childhood; receive lower qual­ much as 2 years before they can be detected We must balance the budget fairly and re­ ity medical care;" along with numerous other by self-examination. Routine screening for sponsibly by the year 2002, protecting vital in­ problems. The list of problems facing our Na­ breast cancer is therefore vitally important, es­ vestments such as Medicare, Medicaid, edu­ tion's children of poverty could be addressed pecially for older women. Both the American cation, and environmental protection. in some part if their parents had decent health Cancer Society and the National Cancer Insti­ Balancing the budget by the year 2002 is insurance and could at least ensure that their tute recommend annual mammograms for not enough. We must enact into law an en­ children were not disadvantaged for life by an women over 50 years of age. forcement mechanism that requires the Presi­ unhealthy start. Unfortunately, Medicare only covers mam­ dent and the Congress to work toward a bal­ mograms every other year. Furthermore, the anced budget every year, while providing nec­ We need health insurance for kids, so that 20 percent copayment for the service and the essary fiscal flexibility in times of emergency their parents can ensure a better life for annual Medicare deductible deter many such as military conflict and recession. them-and for our Nation's future citizens. women from getting the screening. The Medi­ To achieve these goals, today I am reintro­ care Mammography Enhancement Act would ducing legislation that I filed in the last Con­ eliminate these barriers to women receiving gress 'to require the President to submit and life-saving mammograms. The legislation the Congress to vote on a balanced budget TRUTH IN BUDGETING ACT would require Medicare to cover annual mam­ every year. mograms and would waive the 20-percent co­ I believe my proposal is a better enforce­ payment and any deductible costs for the ment mechanism than an amendment to the HON. BENJAMIN A. GILMAN screening. Constitution requiring a balanced budget be­ OF NEW YORK Mr. Speaker, a few years ago many of us in cause it provides both for fiscal responsibility Congress fought to make sure Medicare in­ and necessary flexibility in times of emer­ IN THE HOUSE OF REPRESENTATIVES cluded coverage for at least biannual mammo­ gencies; it involves the American people by grams. We argued that it made good sense Thursday, January 9, 1997 fully disclosing the options for and con­ for Medicare to cover a test that could save so sequences of balancing the budget; and it Mr. GILMAN. Mr. Speaker, I rise in strong many lives at such little expense. The same does not entangle the judicial branch in our support of the Truth in Budgeting Act and can be said of this legislation. I urge all of my Nation's fiscal policies, with the potential for commend its sponsor, the gentleman from colleagues to support this effort to save lives. endless litigation. Pennsylvania [Mr. SHUSTER] for bringing this My bill takes a commonsense approach that important measure to the floor. INTRODUCING A CONCURRENT does not tamper with the Constitution. It re­ RESOLUTION ON THE SIGNIFI­ quires the President to submit a balanced This legislation transfers the Highway, Avia­ budget each year, beginning in fiscal year tion, Inland Waterways and Harbor Mainte­ CANCE OF CORAL REEF ECO­ SYSTEMS 1999. However, if in any fiscal year the Presi­ nance Trust Funds off budget and provides dent determines that a balanced budget is not that trust fund balances will not be used in cal­ in the Nation's best interests, he is allowed to culations by the Congressional Budget Office HON. JIM SAXTON submit two budgets, one balanced and one regarding the Federal budget. OF NEW JERSEY with a deficit, with written justification for his IN THE HOUSE OF REPRESENTATIVES This bill guarantees that transportation taxes determination. The bill also requires the Con­ Thursday, January 9, 1997 such as the taxes that our constituents pay gress to vote on a balanced budget each year, when they fill up their gas tank or when they Mr. SAXTON. Mr. Speaker, I-along with with the same flexibility given to the President buy an airline ticket are used for their stated my colleague from Hawaii, Mr. ABER­ to protect the Nation's security and fiscal health. purpose, to improve and reinforce our coun­ CROMBIE-am pleased to introduce a concur­ rent resolution declaring the significance of Most importantly, my bill would bring the try's transportation infrastructure. maintaining the health and stability of coral American people into the debate on balancing Currently cash balances in the transpor­ reef ecosystems. the budget. A balanced budget amendment tation trust fund total $30 billion. It is wrong Coral reefs have been called the tropical would tell us only to balance the budget-and that this funding is being used to mask por­ rainforests of the oceans, and rightfully so-­ includes huge loopholes to avoid it-it does tions of our Nation's budget deficit as opposed they are among the world's most biologically not tell us what an actual balanced budget to upgrading our country's transportation infra­ diverse and productive marine habitats. They would look like. My bill would present to the structure. This bill is a positive step forward are also vitally important to coastal econo­ American people the actual numbers-what ensuring that our highways and airports get mies, providing as the basis for subsistence programs would be cut, by how much, and the help they need and according to the Con­ and commercial fishing as well as coastal and what it would mean for our families, our busi­ marine tourism. Finally, reefs serve as natural gressional Budget Office is an action that is nesses, and our Nation. We cannot succeed protection to the coastlines of several U.S. in balancing the budget without such full dis­ budget neutral. States and territories, such as Florida, Hawaii, closure and thorough, honest debate. Accordingly, Mr. Speaker, I urge our col­ Puerto Rico, the U.S. Virgin Islands, Guam, In summary, my bill simply states that the leagues to support this worthy legislation. and American Samoa. Presiderrt should submit a balanced budget, January 9, 1997 EXTENSIONS OF REMARKS 371 the American people should review it, and the Last year, Congress finally passed, and Americans have written to me personally with Congress should debate and vote on it-not President Clinton signed into law, the Tax­ their horror stories. just talk about it. I urge my colleagues to join payer Bill of Rights II. That was an important Opponents argue that my bill will weaken me in cosponsoring this legislation. step toward protecting American taxpayers IRS's ability to prosecute legitimate tax cheats. against Internal Revenue Service abuses. This bill will not affect IRS's ability to enforce However, it didn't go far enough. Far too many tax law, it only forces them to prove allega­ A TRIBUTE TO DR. GEORGE D. Americans still fear the IRS-and with good HARRIS tions of fraud. My bill will ensure that IRS reason. agents act in accordance with the Standards The IRS is the only agency of the Federal of Conduct required of all Department of HON. WIWAM J. COYNE Government that affects every American. We Treasury employees. Most importantly, it will OF PENNSYLVANIA all hear complaints from constituents about force the IRS to act in accordance with the IN THE HOUSE OF REPRESENTATIVES overregulation by OSHA, the EPA, or the De­ Constitution of the United States of America Thursday, January 9, 1997 partment of Justice. These regulations affect where all citizens are considered innocent until only small businessmen or manufacturers or Mr. COYNE. Mr. Speaker, I rise today with proven guilty. farmers. However, the IRS hits each and ev­ sadness to note the death of one of my con­ Mr. Speaker, I am hopeful that this is the eryone of us. Anyone who's received a notice stituents, Dr. George D. Harris. Dr. Harris died year that Congress passes this bill. It is an im­ in the mail from the IRS knows how it can recently at the age of 51. His early death is a portant piece of legislation. great loss for our community. cause the blood pressure to rise. Americans should not fear their Govern­ Dr. Harris, a resident of the Point Breeze ment. Sadly, too many Americans don't trust neighborhood in Pittsburgh, was the kind of in­ the IRS. This has clouded their view of the en­ dividual upon whom every community de­ HONORING ROSANNE FISHER ON tire Government. Congress could go a long pends. He spend his entire professional career THE OCCASION OF HER way toward reinstating the American people's helping at-risk young people meet the chal­ RETffiEMENT faith in the Federal Government by reigning in lenges encountered in adolescence and young powers of the IRS. Mending this broken rela­ adulthood. He believed passionately in the im­ tionship should be Congress' No. 1 priority. portance of getting a good education, and he HON. PAUL E. GIU.MOR Shifting the burden of proof will do that. dedicated his life to inculcating his faith in OF OHIO My bill specifies that in the administrative education in the young people of Pittsburgh process leading up to a court case, the burden IN THE HOUSE OF REPRESENTATIVES and Allegheny County. of proof is on the taxpayer, but once the case At the time of his death, Dr. Harris was the Thursday, January 9, 1997 manager of the Bethesda Center, where he goes to tax court, the burden of proof is squarely on the IRS. Mr. GILLMOR. Mr. Speaker, I rise today to worked to promote independence, family sta­ During the administrative process or any pay tribute to an outstanding citizen of Ohio. bility, and child welfare through motivation and audit, the burden of proof should be on the Williams County Commissioner Rosanne H. education. Prior to that, he was executive di­ IRS. The taxpayer should provide all pertinent Fisher is retiring after years of service to the rector of Pittsburgh New Futures, · where he data to support their claims and deductions in­ people of Ohio. worked to reduce dropout rates and teen preg­ cluding receipts, W-2 forms, and letters. nancy rates, and where he worked to help I have had the privilege of representing Wil­ Should the taxpayer and the IRS not come to young people find jobs. From 1969 until 1988, liams County in the U.S. House of Represent­ an agreement, the process moves to the tax when he left to join Pittsburgh New Futures, atives through much of the time Rosanne has court. There the burden of proof should be on he developed and oversaw a program at served as commissioner. It has been a privi­ the IRS. A taxpayer should be innocent until Duquesne University that successfully reduced lege working with her to help Northwest Ohio. proven guilty in tax court, not the other way the dropout rate for Duquesne's African-Amer­ I can tell you Rosanne has been a strong ad­ around. ican students. He was also a cofounder of vocate and outstanding friend of our area. Mr. Speaker, my bill has three more sec· Bell-Harr Associates, an educational con­ Rosanne's aggressive leadership was crucial tions to protect Americans from IRS abuses. sulting firm. He earned his doctorate in edu­ in securing funding for the Hillside Assisted First, a section requiring judicial consent and cation from the University of Pittsburgh. Living Complex, establishment of Solid Waste a 15-day notice before the I RS can seize Individuals like George Harris-people who District and Recycling, implementation of 911 property. It also includes a provision to call for make helping others their life's work-are all system, remodeling the senior center and the an independent report detailing ways to offset too rare. Dr. Harris' personal warmth, energy, establishment of a records center. potential revenue losses from a shift of the and enthusiasm-as well as his effective­ She is member of the Ohio County Commis­ burden of proof. Finally, damages awarded by ness-made him rarer still. Countless people sioner Association Board of Trustees, State a judge for an unauthorized collection by the understood and appreciated his special gifts, OCCA Legislative Board, and the State of IRS are excluded from gross income. and that knowledge makes his loss all the Ohio Board of Adult Detention. A graduate of Mr. Speaker, an accused mass murderer more deeply felt. Libby High School and the University of To­ has more rights than a taxpayer fingered by Dr. Harris is survived by his wife, Judith ledo, Rosanne was first elected Commissioner the IRS. Jeffrey Dahmer and the "Son of Harris, his son, Ebon Lee, and his sister, Shei­ in 1989. Throughout her distinguished tenure Sam" were considered innocent until they la Ways. I want to express my condolences to with the County Commissioners, Rosanne has were proven guilty. Regular taxpaying Ameri­ them on their unexpected loss. demonstrated her deep faith in, and dedication cans, however, are not afforded this protec­ to, upholding the principles of American de­ tion. mocracy. ms BURDEN OF PROOF BILL Mr. Speaker, during the last Congress, I highlighted the need for this legislation on the Mr. Speaker, we have often heard that HON. JAMFSA. TRAFlCANT, JR. House floor by reading letters and cases I America works because of the unselfish con­ have received from people around the country. tributions of her citizens. I know that Ohio is OF OHIO a much better place to live because of the IN THE HOUSE OF REPRESENTATIVES You may remember the case of David and Millie Evans from Longmont, CO. The IRS re­ dedication and countless hours of effort given Thursday, January 9, 1997 fused to accept their canceled check as evi­ by Commissioner Rosanne Fisher. While Mr. TRAFICANT. Mr. Speaker, yesterday I dence of payment even though the check bore Rosanne may be leaving her official capacity introduced legislation to change the burden of the IRS stamp of endorsement. Or how about in Williams County, I know she will continue to proof in a civil tax case. This bill is similar to Alex Council, who took his own life so his wife be actively involved in those causes dear to legislation I have introduced in past Con­ could collect his life insurance to pay off their her. gresses to right a serious injustice against tax­ IRS bill? Months later, a judge found him inno­ I ask my colleagues to join me in paying payers: In civil tax court, taxpayers are consid­ cent of any wrongdoing. I have heard hun­ special tribute to Rosanne H. Fisher's record ered guilty until proven innocent. That's un­ dreds of stories of IRS abuses like these on of personal accomplishments and wishing her American and flat out wrong. radio and television talk shows. Thousands of and her family all the best in the years ahead. 372 EXTENSIONS OF REMARKS January 9, 1997 THE UNREMUNERATED WORK ACT tern to continue to let the financial regulators activities to all businesses. This would extend OF 1997 INTRODUCED make these decisions in a piecemeal, and ar­ the unitary thrift holding company authority to bitrary fashion. For Congress to not act would all holding companies-a view that is sup­ HON. CONSTANCE ~ MOREILA be a serious abdication of our responsibility. ported by the securities and insurance compa­ OF MARYLAND In anticipation of resuming my role as Chair­ nies and other diversified financial companies IN THE HOUSE OF REPRESENTATIVES woman of the Financial Institutions and Con­ as well. However, this bill does not address sumer Credit Subcommittee, financial mod­ the so-called "chartering up" approach which Thursday, January 9, 1997 ernization will be on the top of my agenda. would allow thrifts and commercial banks to Mrs. MORELLA. Mr. Speaker, today, I am With that in mind, I am planning early and engage in insurance and real estate activities. introducing the Unremunerated Work Act, comprehensive hearings to commence as Currently, commercial banks are now prohib­ which would direct the Commissioner of the soon as the committee completes its organiza­ ited in most cases from fully engaging in these Bureau of Labor Statistics to conduct time-use tion process. activities; and thrift institutions, under this Alli­ surveys to measure the unwaged work women For those of us that serve on the Banking ance proposal, would be forced to divest of and men do inside and outside of the home. Committee, we are painfully aware of how these activities and to nates the thrift charter Household, agricultural, volunteer, and child controversial the issues surrounding the finan­ and requires thrifts to convert to banks. care duties are considered unremunerated cial services industry can be. To say the least, I, too, have serious reservations regarding work, the value of which would be included in various sectors of the financial services indus­ many of the provisions included in this bill. the gross national product [GNP] under this try have had different and often conflicting The least of which is the holding company act. views on how best to go about modernization. regulation structure and the regulatory over­ Unpaid work in the home is the full-time, The legislation we are reintroducing today rep­ sight authority. lifelong occupation for many Americans, most­ resents the work of a coalition of 1O industry Last year's Alliance bill included a new reg­ ly women. For both men and women who organizations representing a broad cross-sec­ ulation and oversight of holding companies work for pay in the marketplace, household tion of the financial services industry. Partici­ based on similar requirements to the structure work absorbs many hours per week. Yet, little pants in the Alliance group include: American currently applied to Unitary Holding Compa­ is known about the value of household work. Bankers Association; ABA Securities Associa­ nies. Wrth the introduction of this legislation The only national survey that measures the tion; American Financial Services Association; today, I have, at the Alliance's request, in­ value of household work for the adult popu­ America's Community Bankers; Consumers cluded a different regulatory structure which lation was conducted in the 1970's by the Uni­ Banker Association; Financial Services Coun­ mirrors the current Securities industry risk as­ versity of Michigan. Government statistics cil; Investment Company Institute; Securities sessment model. Let me be clear that I have reservations Industry Association; and The Bankers Round­ have overlooked the amount of time spent on about both the previous model in last year's table. housework, child care, agricultural work, food Alliance bill and the one included in the bill I production, volunteer work, and unpaid work in I am pleased to see the American Council of Life Insurance [ACU] has also begun par­ am introducing today. A fundamental question family businesses. This visible work is often a of financial reform is to determine the most ticipating in these discussion. In fact, several full-time job for many men and women, and is appropriate means of regulating the system to of the new provisions included in this package also done by men and women who hold paid preserve the safety and soundness of the fi­ jobs in the marketplace. were at the ACLl's suggestion. This legislation represents a concrete effort nancial services industry and the taxpayers Women continue to enter the work force in dollars. As I begin hearings on this bill, this to break the current logjam that has blocked fi­ record numbers. They also continue to serve will be a major focus. While I agree that the nancial services reform legislation in the past. in many unpaid roles, from hours caring for current holding company structure needs re­ The bill incorporated many significant com­ their children, running their households, and form, I am not convinced that the model in­ promises between those competing interests. volunteering their time to charitable organiza­ cluded in this bill is the most appropriate and For this reason, I believe it represents an im­ tions. None of this "unpaid" work is counted efficient means. when Government gathers statistics on the portant starting point for us to begin the de­ The key elements of the bill include: productivity of Americans. The collection of bate on financial modernization. Financial Services Holding Company data about unpaid work would more accurately This legislation is a comprehensive ap­ [FSHC]: creation of a new, optional structure reflect the total work that Americans contribute proach that addresses affiliation issues, Glass­ allowing financial companies to affiliate with to society, and would give greater value to the Steagall reform, functional regulation, insur­ banks similar to the D'Amato-Baker approach. roles played by both women and men as vol­ ance issues and thrift charter conversion by A company could choose to own a bank unteers, household engineers, and care­ melding together key elements of the major through a new ''financial services holding com­ givers. reform bills introduced previously in Congress. pany" that would not be subjected to the Bank While this latest "Alliance" bill is the product Holding Company Act, but subject to a new of a great deal of good faith negotiation and regulatory structure. INTRODUCTION OF THE DEPOSI­ compromise by the major trade groups, it is Permissible Affiliations: FSHCs could own or TORY INSTITUTIONS AND nonetheless a work in progress that will re­ affiliate with companies engaged in a much THRIFT CHARTER CONVERSION quire more discussion and development. While broader range of activities than is permitted for ACT each member of the Alliance for Rnancial bank holding companies under current law. Modernization has participated in redrafting The bill would not, however, eliminate all cur­ HON. MARGE ROUKEMA the legislation I am introducing today, they do rent restrictions on affiliations between banks OF NEW JERSEY not necessarily endorse all the provisions in and commercial firms. A financial services IN THE HOUSE OF REPRESENTATIVES the current product. In addition, there are sev­ holding company would have to maintain at eral key elements missing from this bill. least 75 percent of its business in financial ac­ Thursday, January 9, 1997 For example, a clear definition of what is tivities or financial services institutions, which Mrs. ROUKEMA. Mr. Speaker, I am reintro­ meant by the terms "banking", "securities", would include such institutions as banks, in­ ducing The Depository Institution Affiliation and "insurance" as well as a fair means to re­ surance companies, securities broker dealers, and Thrift Charter Conversion Act, legislation solve any disputes that may arise between and wholesale financial institution. that represents a significant step toward regulators over the proper characterization of FSHCs are restricted from entering the in­ crafting meaningful financial reform legislation novel or hybrid products is an area of great surance agency business through a new affil­ that will take us into the 21st Century and put sensitivity for all financial service providers-­ iate unless it bought an insurance agency that us on sound footing to compete in the global and one that still lacks a consensus among had been in business for at least 2 years. marketplace. the industries. For this reason, this bill does This bill includes lists of activities that are As I have said in the past, it is the responsi­ not include such a provision. deemed to be "financial" and entities that are bility of Congress after due diligence to make In addition, America's Community Bankers deemed to be ''financial services institutions." the important policy decisions giving staMory would like to see a much broader approach, A new National Financial Services Committee, authority for the structure of financial institu­ and have urged that permissible holding com­ chaired by the Treasury Department and in­ tions. It is not in the best interest of the sys- pany affiliations be expended from financial cluding the bank regulators, the SEC, and a January 9, 1997 EXTENSIONS OF REMARKS 373 representative state insurance commissioner considered by the last Congress. The pur­ tent necessary to protect the safety and would be created. poses of this approach are to (1) build on the soundness of the bank. These supervisory re­ Holding Company Oversight: The regulation constructive efforts of Chairmen D'Amato quirements are virtually identical to those and Leach and Representatives Mccollum, that currently apply to companies that own and oversight of the new Financial Services Baker, and Roukema, among others, during regulated securities broker dealers, and com­ Holding Companies would be based on the the past two years; (2) provide a comprehen­ panies that own regulated futures commis­ holding company risk assessment model that sive framework for addressing the major con­ sion merchants-the so-called "holding com­ currently is applied to the Securities Industry. cerns of the broadest possible range of indus­ pany risk assessment provisions." In the This represents a change from the original Al­ try participants; and (3) address legitimate past six years, Congress has twice embraced liance bill that I introduced last year. As we concerns of the regulators that were re­ this model for gathering information on po­ flected in both legislative and regulatory tential risk to regulated entities by affili­ consider provisions that address the regulation ated companies, once in the Market Reform of various institutions, I will be taking special proposals that emerged during the last sev­ eral years. Act of 1990 (securities firms), and once in the care to assure that all institutions are regu­ Futures Trading Practices Act of 1992 (fu­ lated in such a way as to preserve the safety 1. FINANCIAL SERVICES HOLDING COMPANIES tures traders). While the National Financial and soundness and the integrity of the insur­ Using modified language from the Services Committee would establish uniform D'Amato-Baker bills, the draft bill creates a standards for these requirements as they ance funds. new and entirely optional structure for fi­ Securities Activities: Provisions for certain apply to depository institutions, the appro­ nancial companies to affiliate with banks. A priate Federal banking agency that regulate securities activities such as asset-backed se­ company could choose to own a bank the lead depository institution of the finan­ curities and municipal revenue bonds could be through a new "financial services holding cial services holding company would imple­ offered in a new, separate securities affiliate. company" that would not be subject to the ment and enforce them. These provisions are similar to provisions in­ Bank Holding Company Act. Instead, the fi­ Apart from these general requirements, fi­ cluded in the Leach bill and agreed to by the nancial services holding company would be nancial services holding companies would Commerce Committee. subject to a new regulatory structure estab­ not be subject to the bank-like regulation lished by a newly-created section of financial that currently applies to the capital and ac­ Elimination of the Thrift Charter: With the services law called the "Financial Services tivities of bank holding companies. However, new financial services holding company struc­ Holding Company Act." Any company that as in the D'Amato-Baker bills, financial ture in place, the thrift charter would be elimi­ owns a bank but chooses not to form a finan­ services holding companies would be subject nated; thrifts would generally be converted to cial services holding company would remain to the following additional safety and sound­ banks, with grandfathering-transition provi­ subject to the Bank Holding Company Act to ness requirements: sions; and unitary thrift holding companies the same extent and in the same manner as Affiliate transaction restrictions, includ­ would be required to convert to either bank it is under existing law. However, an affiliate ing but not limited to the requirements of of a bank that is not part of a financial serv­ Sections 23A and 23B of the Federal Reserve holding companies or financial services hold­ ices holding company generally could not en­ Act. ing companies, also with grandfather-trans­ gage in securities activities to a greater ex­ Prohibition on credit extensions to non- action provisions. The statutory language for tent than has been permitted under existing financial affiliates. the charter conversion is similar to the lan­ law. Change in Control Act restrictions. guage included in the last version of my Thrift Permissible Affiliations.-A financial serv­ Insider lending restrictions. ices holding company could own or affiliate A "well-capitalized" requirement for sub­ Charter Conversion bill, H.R. 2363. · sidiary banks. I want to again reiterate that I do have seri­ with companies engaged in a much broader Civil money penalties, cease-and-desist au­ ous concerns with several of the provisions in­ range of activities than is permitted for thority, and similar banking law enforce­ bank holding companies under current law ment provisions applicable to violation of cluded in this bill. However, I believe this draft (with contrary state law preempted). The bill proposal is an important document because it the new statute. would not, however, eliminate all current re­ New criminal law penalty provisions for includes many compromises between the var­ strictions on affiliations between banks and knowing violations of the new statute. ious financial services industry. Clearly, there commercial firms. A financial services hold­ Divesture requirement applicable to banks are issues associated with this legislation that ing company would have to maintain at least within any financial services holding com­ are yet to be discussed. However, with the in­ 75 percent of its business in financial activi­ pany that fails to satisfy certain safety and troduction of this legislation we are advancing ties or financial services institutions, which soundness standards. the debate on financial services moderniza­ would include such institutions as banks, in­ Cross-Marketing Provisions.-As with the surance companies, securities broker deal­ D'Amato-Baker bills, the bill would preempt tion, and setting the stage for action in the ers. and wholesale financial institutions. In cross-marketing restrictions imposed on fi­ 105th Congress that will take this industry into addition, a bank holding company that be­ nancial services holding companies by state the 21st Century and beyond. came a financial services holding company law or any other federal law. There is no doubt that Congress has always could not enter the insurance agency busi­ Securities Activities.-The draft bill in­ had at its disposal the tools to modernize our ness through a new affiliate unless it bought cludes principal elements of the last-intro­ Depression-era banking codes. What it has an insurance agency that had been in busi­ duced version of the Leach bill in the pre­ lacked is the will. The pressures of competing ness for at least two years. Finally, foreign vious Congress, H.R. 2520, as it related to Glass-Steagall issues. These include statu­ interests have made this task all but impos­ banks could also choose to become financial services holding companies. tory firewall, "push-out," and "functional sible and resulted in gridlock. This bill is a sig­ The bill includes lists of activities that are regulation" provisions, with some modifica­ nificant first step toward breaking that logjam. deemed to be "financial" and entities that tions. These new restrictions would apply It includes major areas of compromise be­ are deemed to be "financial services institu­ only to financial services holding companies; tween the various competing industries. Again, tions." A new National Financial Services they would not apply to the securities or in­ I am planning for early and comprehensive Committee, which would be chaired by the vestment company activities of banks that Treasury Department and include the bank remained part of bank holding companies. hearings in my subcommittee on the issues of Wholesale Financial Institutions.-Finan­ financial modernization. regulators, the SEC. and a representative state insurance commissioner, would (1) de­ cial services holding companies (but not Again, let me stress that I will proceed with termine whether additional activities should bank holding companies) could also form un­ great care. My primary goal will be to preserve be deemed to be "financial" or additional insured bank subsidiaries called wholesale fi­ the safety and soundness of our financial sys­ types of companies should be deemed to be nancial institutions or "WF!s." Such WFis tem while protecting the American taxpayer "financial services institutions"; and (2) could be either state or nationally chartered, and the business and consumers that rely on issue regulations describing the methods for and there would be no restrictions on the their services. calculating compliance with the 75 percent ability of a WFI to affiliate with an insured test. Other than these limited cir­ bank. A WFI would not be subject to the SUMMARY SECTION BY SECTION cumstances, a financial services holding statutory securities firewalls applicable to The Draft bill is an effort to break the cur­ company would not be subject to the cum­ insured banks and their securities affiliates, rent logjam that is blocking financial serv­ bersome application and prior approval proc­ but the WFI could not be used to evade such ices reform legislation. It is a comprehensive ess that currently applies to bank holding statutory firewalls. approach that addresses affiliation issues, companies. 2. ELIMINATION OF THRIFT CHARTER Glass-Steagall reform, functional regulation, Holding Company Oversight.-Because it With the new financial services holding insurance issues, and thrift charter conver­ would own a bank, a financial services hold­ company structure in place, the thrift char­ sion. It does this by melding together key ing company would be subject to certain su­ ter would be eliminated; thrifts would gen­ elements of the major reform bills that were pervisory requirements, but only to the ex- erally be required to convert to banks. with 374 EXTENSIONS OF REMARKS January 9, 1997 grandfathering/transition provisions; and their best interests, their well being-and they SUPPORT FOR H.M.O. PATIENT unitary thrift holding companies would be know this without one single iota of doubt. REFORM required to convert to either bank holding companies or financial services holding com­ Residents of West Virginia can name with panies, also with grandfathering/transition pride the many accomplishments of Senator HON. FORTNEY PETE STARK provisions. The statutory language for the BYRD-those noted above first of all. But, in OF CALIFORNIA charter conversion is similar to the language IN THE HOUSE OF REPRESENTATIVES addition, West Virginians can tell you that dur­ included in the last version of the Roukema Thursday, January 9, 1997 bill, which is the one that was used in the ing his Senate tenure he has served as sec­ House's offer in the Budget Reconciliation retary of the Senate Democratic Conference, Mr. STARK. Mr. Speaker, on Tuesday, Jan­ conference in late 1995. Senate majority whip, Senate majority leader, uary 7, I introduced legislation to provide a 3. NATIONAL MARKET FUNDED LENDING Senate minority leader, and President pro comprehensive set of consumer protections for people in managed care plans. INSTITUTIONS tempore. Unlike the D'Amato-Baker bills, the draft One of my proposals is that Medicare and bill generally precludes a commercial firm Further, Senator BYRD has served his State Medicaid should not start monthly payments-­ from owning an insured depository institu­ and his country throughout an integral part of which can amount to somewhere between tion. However, the bill recognizes the impor­ the high drama and history of the second half $300 and $700 a month-for a new HMO en­ tant role that nonfinancial companies play of the 20th century-including the cold war, rollee until that HMO actually meets with the in other aspects of the financial services in­ enrollee, shows them how to use the system, dustry by allowing such companies to own Vietnam, Watergate, Iran-Contra, the collapse of the Soviet Union, and the gulf war. He has and establishes a basic health profile on the "national market funded lending institu­ individual. Today, an HMO can receive thou­ tions." This new kind of OCC-regulated insti­ served under nine Presidents, one of whom sands of dollars in payments before it ever tution would have national bank lending was assassinated, the other forced to resign powers, but would have no access to the fed­ sees a patient or tries to maintain their health. eral safety net: it could not take deposits or the highest office in the land. How can an HMO truly be a health mainte­ receive federal deposit insurance, and it Senator BYRD is widely recognized for hav­ nance organization, if it doesn't know what the would have no bank-like access to the pay­ ing achieved many milestones during his ca­ health of the person is, whether the person is ments system or the Federal Reserve's dis­ reer, among them being only one of three U.S. overweight, smokes, needs innoculations, has count window. In addition, the institution high blood pressure or diabetes, et cetera, et could not use the term "bank" in its name. Senators in history to have been elected to seven 6-year terms; being the first sitting cetera? By owning a national market funded lending Last August, the Public Policy Institute, part institution, a nonfinancial company could Member of either House of Congress to begin of the Division of Legislation and Public Policy provide all types of credit throughout the and complete the study of law and obtain a country using uniform lending rates and of the American Association of Retired Per­ terms. law degree while serving in the Congress; sons, issued an excellent paper entitled, being the first person in the history of West "Managed Care and Medicare." The paper­ Virginia ever to serve in both chambers of his which does not necessarily represent formal SPECIAL TRIBUTE TO U.S. SEN­ State Legislature and both Houses of the U.S. policies of the association-recommended: ATOR ROBERT C. BYRD OF WEST Congress; obtaining the greatest number, the Health plans should be required to conduct VffiGINIA ON A HALF-CENTURY greatest percentage, and the greatest margin a comprehensive health assessment of new OF SERVICE TO THE NATION of votes cast in statewide, contested elections patients upon enrollment, followed by specific provisions for improved access to primary and AND TO ms STATE in his State; being the first U.S. Senator in specialty care on a routine basis. West Virginia to win a Senate seat without op­ This is precisely the idea in my legislation, HON. NICK J. RAHAil. D position in a general election; and having and I hope other senior and patient advocacy OF WEST VIRGINIA served longer in the U.S. Senate than anyone groups will consider this proposal and how it IN THE HOUSE OF REPRESENTATIVES else in West Virginia history. would help eliminate many of the abuses in Thursday, January 9, 1997 Mr. Speaker, these are remarkable achieve­ the current enrollment of Medicare and Med­ Mr. RAHALL. Mr. Speaker, 50 years ago ments for one man, and we honor Senator icaid beneficiaries. yesterday, January 8, 1997, the senior Sen­ BYRD for them. ator from West Virginia, ROBERT c. BYRD, His greatest feat, in my estimation, is that TRANSPORTATION COMMITTEE began his service in the U.S. House of Rep­ he has brought dignity and civility to the U.S. PROCEDURES FOR !STEA REAU­ resentatives where he served for 11 years, THORIZATION moving to the Senate in 1958 where he has Senate every day of his life, throughout his served for the past 39 years. tenure there. HON. THOMAS E. PrrRI As we all know, Senator BYRD celebrated Senator ROBERT BYRD is a gentle but c. OF WISCONSIN having cast his 14,000th vote in the U.S. Sen­ firm leader, who has the ability to share, in his IN THE HOUSE OF REPRESENTATIVES ate last year, at which time he had a 98.7 per­ writing and vocally, his deep and abiding rev­ Thursday, January 9, 1997 cent voting average. erence for the Senate as an institution. He Senator ROBERT C. BYRD is the nationally constantly lectures, through his weekly history Mr. PETRI. Mr. Speaker, on behalf of NICK recognized historian in residence in the Sen­ lessons, on the importance of knowing and RAHALL, the ranking democratic member of the ate-the uncontested expert on the Senate as Subcommittee on Surface Transportation, BUD observing, and above all else, respecting, the an instiMion, and the leading, nationally rec­ SHUSTER, the chairman of the Transportation ognized expert on parliamentary procedures. traditions of the Senate, its rules of engage­ and Infrastructure Committee, and JAMES West Virginia's citizens recognize Senator ment and the parliamentary procedures that OBERSTAR, the committee's ranking demo­ BYRD and applaud his achievements as a re­ govern it as an institution. cratic member, I would like to outline the sub­ searcher, lecturer, writer, and parliamentary And so it is with great personal honor that committee's procedure for identifying items of magician. That is all well and good, they say. I rise on the occasion of his 50th anniversary concern to members as it takes up the reau­ It makes them very proud. year of U.S. Senate service, to pay tribute to thorization of the lntermodal Surface Transpor­ But what makes Senator BYRD'S people in the well cherished and beloved senior Senator tation Efficiency Act of 1991 [ISTEA]. This leg­ West Virginia most proud is that he is also· islation authorizes over $150 billion for our na­ from West Virginia ROBERT BYRD, and to one of them-that he is someone they can go c. tion's highway, transit, motor carrier, safety, to, take their troubles, trials and tribulations to, wish God's blessings upon himself personally, and research programs for 6 years and is due and know that he will hear them and he will and upon the important work he will do in the to expire on September 30, 1997. intervene on their behalf at every opportunity coming years on behalf of his institution, his The importance of the surface transportation to make things better. West Virginians know countrymen nationwide, and his especial work system cannot be overstated. There is ample that Senator BYRD'S every waking moment of on behalf of his fellow West Virginians. evidence documenting the link between care­ service in the U.S. Senate is in their service-- ful infrastructure investment and increases in January 9, 1997 EXTENSIONS OF REMARKS 375 this nation's productivity and economic pros­ March at which time Members and local offi­ INTRODUCTION OF THE INTELLEC- perity. For instance, between 1980 and 1989, cials will have an opportunity to testify on be­ TUAL PROPERTY ANTITRUST highway capital investments contributed al­ half of those requests. While these hearings PROTECTION ACT OF 1997 most 8 percent of annual productivity growth. are intended to give Members an opportunity A recent study demonstrated that the costs of to present information about specific project HON. HENRY J. HYDE highway investments are recouped through needs, it is not necessary for Members to tes­ OF ILLINOIS production cost savings to the economy after tify. IN THE HOUSE OF REPRESENTATIVES only 4 years. Another study concluded that We look forward to working with all Mem­ Thursday, January 9, 1997 transit saves at least $15 billion per year in bers of the House as we prepare this impor­ Mr. HYDE. Mr. Speaker, today I am intro­ congestion costs. tant legislation which will set the course for ducing the Intellectual Property Antitrust Pro­ Despite the critical importance of our trans­ our Nation's surface transportation programs. portation systems to our Nation's economic tection Act of 1997. I am pleased to be joined TRANSPORTATION PROJECT EVALUATION CRI- health, investment has fallen short of what is by my colleagues on the Judiciary Committee, TERIA, COMMITTEE ON TRANSPORTATION AND Mr. SENSENBRENNER, Mr. GEKAS, Mr. SMITH, needed. The Department of Transportation es­ INFRASTRUCTURE, SUBCOMMITTEE ON SUR­ timates that simply maintaining the current Mr. GALLEGLY, Mr. CANADY, Mr. BoNO, and Mr. FACE TRANSPORTATION FRANK who are original cosponsors of this leg­ conditions on our highway, bridge, and transit 1. Name and Congressional District of the systems will require investment of $57 billion islation. primary Member of Congress sponsoring the Because of increasing competition and a per year from Federal, State, and local gov­ project, as well as any other Members sup­ burgeoning trade deficit, our policies and laws ernments, an increase of 41 percent over cur­ porting the project (each project must have a single primary sponsoring Member). must enhance the position of American busi­ rent levels. To improve conditions to optimal nesses in the global marketplace. This con­ levels would require doubling our current in­ 2. Identify the State or other qualified re­ cipient responsible for carrying out the cern should be a top priority for th.is Congress. vestment to $80 billion per year. Meeting A logical place to start is to change rules that these needs will require a variety of strategies, project. 3. Is the project eligible for the use of Fed­ discourage the use and dissemination of exist­ including better use of existing systems, appli­ eral-aid funds (if a road or bridge project, ing technology and prevent the pursuit of cation of advanced technology, innovative fi­ please note whether it is on the National promising avenues of research and develop­ nancing, and public-private partnerships. It is Highway System)? ment. Some of these rules arise from judicial our goal to develop a bill that will meet these 4. Describe the design, scope and objectives decisions that erroneously create a tension needs and maintain this world class system. of the project and whether it is part of a between the antitrust laws and the intellectual Reauthorization is the top priority of the larger system of projects. In doing so, iden­ property laws. Subcommittee on Surface Transportation. In tify the specific segment for which project Our bill would eliminate a court-created pre­ the second session of the 104th Congress, the funding is being sought including terminus points. sumption that market power is always present subcommittee held a series of 12 ISTEA over­ in a technical antitrust sense when a product sight hearings and received testimony from 5. What is the total project cost and pro­ posed source of funds (please identify the protected by an intellectual property right is 174 witnesses. The hearings gave many inter­ federal, state or local shares and the extent, sold, licensed, or otherwise transferred. The ested Members, the administration and af­ if any, of private sector financing or the use market power presumption is wrong because it fected groups the opportunity to testify and of innovative financing) and of this amount, is based on false assumptions. Because there present their views. There was strong interest how much is being requested for the specific are often substitutes for products covered by in these hearings and they covered the pro­ project segment described in item #4? intellectual property rights or there is no de­ grams which need to be reauthorized in this 6. Of the amount requested, how much is mand for the protected product, an intellectual coming bill. We would be happy to make cop­ expected to be obligated over each of the property right does not automatically confer ies of these hearing transcripts available to next 5 years? 7. What is the proposed schedule and status the power to determine the overall market any interested Members. price of a product or the power to exclude We anticipate that the bipartisan legislation of work on the project? 8. Is the project included in the metropoli­ competitors from the marketplace. we develop this year will be based largely on tan and/or State transportation improve­ On May 14, 1996, the Judiciary Committee the information obtained at last year's exten­ ment plan(s), or the State long-range plan, held a thorough hearing on H.R. 2674, an sive programmatic hearings. As we begin this and if so, is it scheduled for funding? identical bill that was introduced in the last process, we would like to offer Members the 9. Is the project considered by State and/or Congress. At the hearing, the bill received opportunity to inform the subcommittee about regional transportation officials as critical support from the Intellectual Property Owners, any policy initiatives or issues that Members to their needs? Please provide a letter of sup­ the American Bar Association, and the Licens­ want the subcommittee to consider including port from these officials, and if you cannot, ing Executives' Society. The administration or addressing in the reauthorization of ISTEA. explain why not. agreed that the bill reflected the proper anti­ 10. Does the project have national or re­ Members having such specific policy requests gional significance? trust policy, but hesitated to endorse a legisla­ should inform the subcommittee in writing no 11. Has the proposed project encountered, tive remedy. later than February 25, 1997. or is it likely to encounter, any significant Despite the administration's reluctance to Many Members have already contacted the opposition or other obstacles based on envi­ endorse the bill fully in last year's hearing, the subcommittee to inquire about, or to request, ronmental or other types of concerns? recent antitrust guidelines on the licensing of specific funding for critical transportation 12. Describe the economic, energy effi­ intellectual property-issued jointly by the anti­ needs in their districts. With the convening of ciency, environmental, congestion mitiga­ trust enforcement agencies, the Department of the new Congress, we anticipate that these re­ tion and safety benefits associated with com­ Justice and the Federal Trade Commission­ quests will continue. Therefore, if you are in­ pletion of the project. acknowledge that the court-created presump­ tending to request funding for these projects, 13. Has the project received funding tion is wrong. The guidelines state that the en­ through the State's federal aid highway ap­ we will require that the request include the in­ portionment, or in the case of a transit forcement agencies "wiO not presume that a formation set forth below. Although the sub­ project, through Federal Transit Adminis­ patent, copyright, or trade secret necessarily committee has not yet decided how such re­ tration funding? If not, why not? confers market power upon its owner. Al­ quests will be handled, the information pro­ 14. Is the authorization requested for the though the intellectual property right confers vided will allow the subcommittee to thor­ project an increase to an amount previously the power to exclude with respect to the spe­ oughly evaluate each request as we determine authorized or appropriated for it in federal cific product, process, or work in question, the appropriate action to take in this regard. statute (if so, please identify the statute, the there will often be sufficient actual or potential Any requests should be submitted no . later amount provided, and the amount obligated close substiMes for such product, process, or than February 25, 1997. Such submissions to date), or would this be the first authoriza­ work to prevent the exercise of market tion for the project in federal statute? If the should be in writing and must include re­ authorization requested is for a transit power." Antitrust guidelines for the Licensing sponses to each of the 14 evaluation criteria project. has it previously received appropria­ of Intellectual Property, April 6, 1995, p. 4 listed at the end of this statement. tions and/or received a Letter of Intent or (emphasis in original). We will also be holding a series of sub­ has FTA entered into a Full Funding Grant For too long, Mr. Speaker, court decisions committee hearings in late February and early Agreement for the project? have applied the erroneous presumption of 376 EXTENSIONS OF REMARKS January 9, 1997 market power thereby creating an unintended viding proof of market power. Second, this bill wide. Twenty-nine of these are specifically conflict between the antitrust laws and the in­ does not in any way affect the remedies, in­ designated as Sea Grant colleges or institu­ tellectual property laws. Economists and legal cluding treble damages, that are available to tional programs, and they serve to coordinate scholars have criticized these decisions, and an antitrust plaintiff when it does prove its Sea Grant activities on a State-by-State basis. more importantly, these decisions have dis­ case. Third, this bill does not change the law The Marine Resources Revitalization Act of couraged innovation to the detriment of the that tying arrangements are deemed to be per 1997 authorizes funding for Sea Grant through American economy. se illegal when the defendant has market fiscal year 2000; simplifies the definition of The basic problem stems from a lower Fed­ power in the tying product. Rather, it simply issues under Sea Granfs authority; clarifies eral court decision that construed patents and requires the plaintiff to prove that the claimed the responsibilities of State and national pro­ copyrights as automatically giving the intellec­ market power does, in fact, exist before sub­ grams; consolidates and clarifies the require­ tual property owner market power. Digidyne jecting the defendant to the per se standard. ments for the designation of Sea Grant col­ Corp. v. Data General Corp., 734 F.2d 1336, Fourth, this bill does not legalize any conduct leges and regional consortia; repeals the post­ 1341-42 (9th Cir. 1984), cert. denied, 473 that is currently illegal. doctoral fellowship and international programs, U.S. 908 (1984). The sheer size of the Ninth Instead, this bill ensures that intellectual both of which have never been funded; and Circuit and its location make this holding a se­ property owners are treated the same as all makes several minor clerical or conforming rious problem, even though some other courts othe_r companies under the antitrust laws, in­ amendments. have not applied the presumption. Abbott Lab­ cluding those relating to tying violations. The I would like to acknowledge three of my dis­ oratories v. Brennan, 952 F.2d 1346, 1354-55 bill does not give them any special treatment, tinguished colleagues-OoN YOUNG of Alaska, (Fed. Cir. 1991), cert. denied, 505 U.S. 1205 but restores to them the same treatment that NEIL ABERCROMBIE of Hawaii, and SAM FARR (1992); A.I. Root Co. v. Computer/Dynamics, all others receive. of California-for their leadership in this reau­ Inc., 806 F.2d 673, 676 (6th Cir. 1986). The In short, the time has come to reverse the thorization effort. We firmly believe that this Ninth Circuit covers nine States and two terri­ misdirected judicial presumption. We must re­ legislation represents a realistic approach to tories, and it has a population of more than 45 move the threat of unwarranted liability from reauthorizing the Sea Grant Program-the bill million people. In addition, it contains a signifi­ those who seek to market new technologies is inherently noncontroversial and has been cant portion of the computer industry, includ­ more efficiently. The inteHectual property and fully endorsed by the administration. By enact­ ing Silicon Valley in California and Microsoft in antitrust laws should be structured so as to be ing this legislation, we send a clear message Washington. complementary, not conflicting. This legislation supporting the protection and wise use of our So, in this very important area, the law says will encourage the creation, development, and marine and coastal resources. one thing in the Ninth Circuit, a different thing commercial application of new products and in other circuits, and in still other circuits, the processes. It can mean technological ad­ courts have not spoken. See Antitrust Guide­ vances which create new industries, increase INTRODUCTION OF INDIVIDUAL lines for the Licensing of Intellectual Property, productivity, and improve America's ability to RETIREMENT ACCOUNT (IRA) p. 4 n. 1O. This lack of clarity causes uncer­ compete in foreign markets. LEGISLATION tainty about the law which, in tum, stifles inno­ I urge my colleagues in the House to join us vation and discourages the dissemination of in cosponsoring this important legislation. If HON. RICHARD E. NEAL technology. you would like to join as a cosponsor, please OF MASSACHUSETTS For example, under Supreme Court prece­ call Joseph Gibson of the Judiciary Committee IN THE HOUSE OF REPRESENTATIVES dent, tying is subject to per se treatment under staff at extension 5-3951. the antitrust laws only if the defendant has Thursday, January 9, 1997 market power in the tying product. However, Mr. NEAL of Massachusetts. Mr. Speaker, the presumption automatically confers market INTRODUCTION OF THE MARINE today Mr. Thomas and I are introducing the power on any patented or copyrighted product. RESOURCES REVITALIZATION Super IRA bill. This bill is comprehensive indi­ Thus, when a patented or copyrighted product ACT OF 1997 vidual retirement account [IRA] legislation. The is sold with any other product, it is automati­ main purpose of this legislation is to make it cally reviewed under a harsh per se standard HON. JIM SAXTON easier for individuals to save for retirement. even though the patented or copyrighted prod­ OF NEW JERSEY Saving for retirement is an issue which we uct may not have any market power. As a re­ IN THE HOUSE OF REPRESENTATIVES must address. The Super IRA legislation will sult, innovative computer manufacturers may help with retirement and we can do this in a be unwilling to sell copyrighted software with Thursday, January 9, 1997 bipartisan manner. The phase "economic se­ unprotected hardware-a package that many Mr. SAXTON. Mr. Speaker, today I am curity" has become part of our vocabulary. consumers desire--because of the fear that pleased to introduce the Marine Resources During this session of Congress, we should do this bundling will be judged as a per se viola­ Revitalization Act of 1997, a bill to reauthorize as much as possible to make individuals more tion of the prohibition against tying. The dis­ the National Sea Grant College Program. secure in their retirement. agreement among the courts only heightens By way of background, the National Sea Statistics about retirement and our savings the problem for corporate counsel advising Grant College Program was established by are not promising. Chairman Alan Greenspan their clients as to how to proceed. Moreover, Congress in 1966 in an effort to improve our of the Federal Reserve once stated that our it encourages forum shopping as competitors Nation's marine resource conservation efforts, low national savings rate is our No. 1 eco­ seek a court that will apply the presumption. to better manage those resources, and to en­ nomic problem. Our national savings rate is Clearly, intellectual property owners need a hance their proper utilization. Housed within only 1 percent of GDP. uniform national rule enacted by Congress. the National Oceanic and Atmospheric Admin­ We are beginning to face what has been Very similar legislation passed the Senate istration, Sea Grant is modeled after the highly commonly referred to as the "graying of Amer­ during past Congresses with broad, bipartisan successful Land Grant College Program cre­ ica." Within 30 years 1 out of every 5 Ameri­ support. S. 438 passed the Senate once as ated in 1862. cans will be over 65. In 15 years, the baby separate legislation and twice as an amend­ Over the past 30 years, Sea Grant has dra­ boomers will begin turning 65. The baby ment to House-passed legislation during the matically defined our capabilities to make deci­ boomers generation consists of 76 million peo­ 1ooth Congress. S. 270, a similar bill, passed sions about marine, coastal, and Great Lakes ple and this will result in Social Security bene­ the Senate again during the 101 st Congress. resources-vast, publicly owned resources ficiaries doubling by the year 2040. Less than During the debate over that legislation, op­ which are of vital economic, social, and cul­ half of American workers are covered by pri­ ponents of this procompetitive measure made tural importance to our rapidly growing coastal vate sector pensions. various erroneous claims about this legisla­ populations. In doing so, Sea Grant promotes The Super IRA legislation provides incen­ tion-let me dispel these false notions at the high quality, peer-reviewed scientific research. tives for individuals to save for their own re­ outset. First, this bill does not create an anti­ Furthermore, Sea Grant distributes scientific tirement. This legislation makes it easier for in­ trust exemption. To the contrary, it eliminates results regionally and locally through edu­ dividuals to become personally responsible for an antitrust plaintiff's ability to rely on a de­ cational and advisory programs at over 300 their retirement. It will make all Americans eli­ monstrably false presumption without pro- universities and affiliated institutions nation- gible for fully deductible IRA's by the year January 9, 1997 EXTENSIONS .OF REMARKS 377 2001. Current law only allows those taxpayers tions to choose from in saving for their future. a first home, to pay educational expenses or who are not covered by any other pension ar­ The income caps that prevent many people to cover any expense during periods of unem­ rangement and whose income does not ex­ from making deductible contributions to IRA's ployment (after collecting unemployment ceed $40,000 to be eligible for a fully deduct­ are eliminated over a 5-year period. A new compensation for at least 12 weeks). Partici­ pants in 401(k) plans and 403(b) annuities ible IRA. kind of account called an IRA Plus account could also receive penalty-free withdrawals The 10-percent penalty on early withdrawals would be offered so taxpayers could earn tax­ for these purposes under the legislation. Tax­ would be waived if the funds are used to buy free income. The bill makes all IRA's easier payers will still be liable for the income tax a first home, to pay educational expenses, or for taxpayers to use because it eliminates the due on the withdrawal, but no penalty tax to cover any expense during periods of unem­ need to coordinate contributions with other would apply. Note: penalty-free withdrawals ployment. These are necessary legitimate pur­ kinds of retirement arrangements. This bill from IRAs for medical expenses were pro­ poses. Otherwise these savings should just be gives taxpayers the liquidity they want. Funds vided under the "Health Insurance Port­ used for retirement. could be withdrawn from either type of IRA to ability and Accountability Act of 1996" signed into law in 1996. The legislation creates a new type of IRA fund family needs such as education, the pur­ called the IRA plus Account. Contributions chase of a first home, or family support during Conversion of IRAs into IRA Plus Accounts would not be tax deductible, but earnings can periods of long-term unemployment. Taxpayers will be allowed to "convert" be withdrawn tax-free if the account is open IRA's enjoy a good deal of popularity among their old IRA savings into IRA Plus Ac­ counts without incurring an early with­ for at least 5 years and the IRA holder is at taxpayers. A number of surveys show just how popular they are. One poll found 74 percent of drawal penalty or an excess distribution pen­ least age 591/2. These accounts provide an­ alty. However, individuals must pay income other savings vehicle for individuals. the respondents would increase their savings if they had tax incentives to do so, precisely tax on previously deducted contributions and Super IRA legislation is not a panacea for corresponding earnings. If the conversion is the social insecurity that we will inevitably what the Super IRA bill provides. Another sur­ made before January l, 1999, the taxpayer vey conducted in 1995 found that 77 percent face, but is a reasonable, concrete solution to can spread the tax payments over a four-year of those contacted supported letting everyone make retirement savings easier. I urge you to period. have deductible IRA's while 69 percent like become a cosponsor of this legislation. I look Other features of the Thomas/Neal legislation the idea of penalty-free withdrawals for pur­ forward to working on the passage of the IRA and 401(k) contributions would not chasing a first home, to provide education, or have to be coordinated. Super IRA legislation during this session of meet family needs during extended unemploy­ Congress. IRA funds could be invested in certain ment. coins and bullion. IRA's are a savings incentive that everyone INTRODUCTION OF INDIVIDUAL can support. Republicans and Democrats can RETIREMENT ACCOUNT [IRA] support this bill and I hope my House col­ TRIBUTE TO JOHN DUFFEY, AN LEGISLATION leagues will join me in seeking to have the AMERICAN MUSICAL PIONEER Savings and Investment Incentive Act enacted HON. WILLIAM M. THOMAS this year. HON. DAVID R. OBEY SUPER INDIVIDUAL RETIREMENT ACCOUNT OF WISCONSIN OF CALIFORNIA LEGISLATION IN THE HOUSE OF REPRESENTATIVES DESCRIPTION OF PROVISIONS IN THE HOUSE OF REPRESENTATIVES Thursday, January 9, 1997 Makes tax deductible IRAs available to all Thursday, January 9, 1997 Mr. THOMAS. Mr. Speaker, today I am in­ Americans Mr. OBEY. Mr. Speaker, it is a tradition of Under the legislation, all Americans would troducing the 105th Congress version of the be eligible for fully deductible IRAs by the the House to take note of milestones and pas­ Super IRA legislation we expect to restore real year 2001. Current law only allows those tax­ sages in our Nation. Mid-last year the world of savings incentives to the Internal Revenue payers who are not covered by any other music lost Bill Monroe, who was widely re­ Code. This year's bill, the Savings and Invest­ pension arrangement and whose income does garded as the founder of bluegrass. I take this ment Incentive Act of 1997, represents the not exceed $40,000 ($25,000 for singles) to be occasion to call attention to the fact that sadly best selection of options for restoring and im­ eligible for a fully deductible IRA. These in­ on December 1O we lost another giant in that proving the Individual Retirement Accounts come limits would be gradually eliminated musical tradition with the passing of John over a four year period beginning 1997. that have been so popular with taxpayers. All The $2,000 contribution limit would be in­ Duffey. taxpayers will ultimately be able to choose be­ dexed for inflation in S500 increments. He was a remarkable singer of bluegrass, tween having an Individual Retirement Ac­ Homemakers and other workers without possessed of a powerful vocal instrument, one count that allows them to deduct contributions employer pensions would be permitted to that could soar to impossibly high notes or be­ for their retirement savings and an I RA Plus make up to a $2,000 tax deductible IRA con­ come the soul of harmony and touch the account allowing them to earn tax-free in­ tribution regardless of whether their spouses heart. He was a good performer with mandolin have an employer pension. This provision come. builds on the homemaker IRA provisions in and guitar, and he was the prince of wit and An outline of the bill follows. In addition, I the "Small Business Job Protection Act of laughter. want to note that Senate Finance Chairman 1996" signed into law in 1996. He was a founding member of two bands ROTH and Senator BREAUX, with whom I have New kind of IRA-"IRA Plus Account" that influenced string band musicians and worked closely in developing the bill, will be Taxpayers will be offered a new IRA choice singers across the Nation and around the introducing the Savings and Investment Incen­ called the "IRA Plus Account." Under the world-the Country Gentlemen and the Sel­ tive Act later this month. All of us agree that IRA Plus Account, contributions would not dom Scene. For more than 20 years, John taxpayers need and deserve the savings in­ be tax deductible. However, earnings on IRA Duffey and the Seldom Scene could be heard centives this bill provides. Plus Account assets can be withdrawn tax­ Thursday nights at the Birchmere in Alexan­ It is obvious that the American taxpayer free if the account is open for at least 5 years dria. I had the pleasure of hearing them per­ and the IRA holder is at least age 59112. A 10% needs and wants the savings incentives this penalty would apply to early withdrawals form there often. When my constituents would bill will provide. Studies indicate that today's unless they meet one of three special purpose come to town and asked me if there was "baby boomer'' workers are only saving 36 distributions described below. something different they could see, I would al­ percent of the funds they will need to maintain Taxpayers can contribute up to $2,000 to ei­ ways tell them if they wanted to see the peo­ their standards of living after retirement. In ther a tax deductible IRA or a non-tax de­ ple's music at its finest they should head down fact, people aged 60 to 64, those closest to ductible IRA Plus Account. They can also al­ to the Birchmere and see John Duffey and his locate any portion of the $2,000 limit between retirement, only have about $1, 700 in financial these two IRA accounts, (e.g., Sl,000 to a tax friends perform. assets in the form of savings, checking, and deductible IRA and Sl.000 to the IRA Plus John Duffey did not like being boss and he similar kinds of accounts. We need to give Account). liked being bossed even less, so these bands taxpayers control of their funds so they can Penalty-free IRA withdrawals for special pur­ were composed of partners. A John Duffey better prepare for the future. poses comment about band structure can be applied The Super IRA bill makes critical changes in The 10% penalty on early withdrawals to other aspects of life. He said, "Democracy the law so taxpayers will have plenty of op- would be waived if the funds are used to buy doesn't work all that well, but it keeps a group 378 EXTENSIONS OF REMARKS January 9, 1997 happy longer than any other way of doing For 22 years, the Seldom Scene has played sometimes off-the-wall style of stage chatter business." He knew that from spending almost regularly at the Birchmere in Alexandria. and a superb sense of timing that could 40 years in just two bands. The group also has toured oveseas, played in break up an audience with a one-liner. A flamboyant performer famed for spoofs of most of the 50 states and produced dozens of "What people love about him is that you recordings, tapes and compact discs. know he's one of these guys stuck in the '50s, whatever needed spoofing and a general irrev­ The group's most recent album is "Dream but he's so happy with himself, so confident, erence on stage, John was modest, genial, Scene," released this fall. The Seldom Scene and he's also nuts," Aulridge said in 1989. and almost shy off stage. played with other bluegrass bands on the In the quarter-century since its formation, Like all great artists, John Duffey was aware Grammy Award-winning "Bluegrass: The the Seldom Scene built its reputation on of the beauty around him. He grew up in a World's Greatest Show." Over the last quar­ flawless harmony, instrumental virtuosity family with a father who was a professional ter-century, the group has played for the and a repertoire that included traditional singer, performing at one point for the Metro­ likes of President Jimmy Carter and Vice bluegrass and modern popular music, rock politan Opera. John seems to have never re­ President Gore, as well as for members of tunes. swing and country, gospel and jazz. Congress. Over the years, there would be changes in jected any music that was in tune, and he had The group was formed in 1971 by Mr. Duffey the group's composition, but until last year, a good ear. and four others: Tom Gray, who worked for the instrumental core remained the same: He heard and was attracted to the music of National Geographic; Ben Eldridge, a mathe­ Mr. Duffey on mandolin, Eldridge on banjo Appalachian migrants to the Washington area matician and computer expert; Mike and Auldridge on dobro. But Auldridge left from the upland South. Music is judged as Auldridge, a graphic artist with the Wash­ the group in December, leaving only two often for its social connection as its sound, ington Star; and John Starling, a physician original members. and this music had no status. But Duffey was and ear, nose and throat specialist. In September, Mr. Duffey was inducted not concerned about such things and he gave The five men initially intended to sing and along with the original Country Gentlemen play together only occasionally, hence the into the International Bluegrass Music Asso­ this music a new milieu. Here was a tall man name, Seldom Scene. "They started as a fun ciation's Hall of Fame. with a crew cut and rapier wit performing bril­ thing, like a Thursday night poker game or Survivors include his wife, Nancy L. liant bluegrass and able to put any heckler in a bowling night," Kuykendall said. Duffey of Arlington. North America in his seat. But the group soon progressed from occa­ [From the Washington Post, Dec.11, 1996] Duffey loved the Appalachian sound, but he sional basement gettogethers to regular JOHN DUFFEY: A MANDOLIN FOR ALL SEASONS was not from the area and did not care to pre­ Thursday night appearances at the Red Fox (By Richard Harrington) tend that he was. So he helped enlarge the Inn in Bethesda. where they played to stand­ reach of the music. He chose songs from ing-room-only crowds, and, from there, to The National Observer once dubbed John modem and ancient sources; he worked on the Birchmere, where they became a weekly Duffey "the father of modern bluegrass," a fixture. paternity that suited the muscled, buzz-cut vocal harmonies new to the genre. Thousands The Seldom Scene's 15th-anniversary con­ mandolinist and high tenor who was co­ of younger players were impressed. cert was held at the Kennedy Center, and it founder of both the Country Gentlemen in In an interview on Washington's great included a presidential citation from Ronald 1957 and the Seldom Scene in 1972. Those two WAMU radio station, host Jerry Gray recently Reagan, whose press secretary, J aines Brady, seminal acts not only helped popularize blue­ asked Duffey how he wished to be remem­ was a regular at the Birchmere. It featured grass worldwide but made Washington the bered. The answer was Duffeyesque: "Well, I guest appearances by the likes of Linda bluegrass capital of the nation in the '60s hope no one will think I was a klutz." Ronstadt and Emmylou Harris. and '70s. When the passage of time allows a broader Mr. Duffey, a resident of Arlington, was Already reeling from the recent death of born in Washington and graduated from Be­ bluegrass patriarch Bill Monroe, the music perspective, I believe John Duffey will be con­ thesda-Chevy Chase High School. His father and its fans may be excused for feeling or­ sidered one of the most important creators of had been a singer with the Metropolitan phaned right now. Duffey who died yesterday this music. Through his wit, laughter, extraor­ Opera, and the son inherited an exceptional at the age of 62 after suffering a heart attack dinary musical gifts and passionate perform­ singing voice with a range said to be three of at his home in Arlington, was, like Monroe, ance, he said, ''this is a great American work­ four octaves. a towering figure, physically and histori­ ing class music." As a high school student, the young Mr. cally. I extend condolences to his family, his fel­ Duffey developed a love for the bluegrass Duffey was also one of the most riveting low members of the Seldom Scene, and the music he heard on the radio. His father and riotous personas in bluegrass, as famous thousands who will miss him as I will. taught him the voice and breathing tech­ for his (generally politically incorrect) jokes niques of a classical opera singer, despite and onstage shenanigans as for ripping off Mr. Speaker, I am inserting in the RECORD what was said to have been the elder fiery mandolin solos and then flinging his in­ at this point four articles. The first, the obituary Duffey's lack of enthusiasm for "hillbilly strument behind his back when he was for John Duffey, written by Bart Barnes, which music." done-because, well, he was done. appeared in the Washington Post. Second, the As a young man, Mr. Duffey worked at a "John was one of the half-dozen most im­ accompanying newspaper article, written by variety of jobs, including that of printer and portant players ever in this industry," fellow Richard Harrington, which appeared in the repairer of stringed instruments. But his av­ musician Dudley Connell said yesterday. "He Post that same day. Third, an article written ocation was music, and it soon became his helped redefine how people looked at blue­ for Bluegrass Unlimited by Dick Spottswood. vocation as well. grass, made it acceptable to the urban In 1957, with Bill Emerson and Charlie masses by his choice of material and style of And fourth, a tribute to John Duffey written by Waller, Mr. Duffey founded the Country Gen­ performance." Dudley Connell for Sing Out! magazine. Mr. tlemen, a bluegrass and folk music group Connell, founder of the critically ac­ Connell is lead singer in The Seldom Scene, that for about 10 years rode the wave of folk claimed Johnson Mountain Boys, joined the which was cofounded by Mr. Duffey. music enthusiasm that surged through the Seldom Scene just a year ago when several of [From the Washington Post, Dec. 11, 1996] 1960s. The group disbanded in the late 1960s, that band's longtime members left to devote and Mr. Duffey went to work as an instru­ themselves to a band called Chesapeake. MUSICIAN JOHN DUFFEY DIES; LED THE GROUP ment repairman at a music store in the That changeover represented a third act for SELDOM SCENE Cherrydale section of Arlington. which was John Duffey, the Washington-born son of an (By Bart Barnes) how he was making a living when the Sel­ opera singer whose forceful and unusually John Duffey, 62, a singer and mandolin dom Scene was formed. expressive voice was once described-quite player who founded and led the Seldom "When we started the Seldom Scene, we all accurately- as "the loudest tenor in blue­ Scene bluegrass group for 25 years, died Nov. had jobs and we didn't care if anybody liked grass." 10 at Arlington Hospital after a heart attack. what we did or not," Auldridge told The "John Duffey had such a presence onstage Mr. Duffey, who was known to music Washington Post's Richard Harrington last you just had to watch him," noted bluegrass lovers for a high, lonesome and lusty tenor year. "We just said, 'We're going to do some and country music radio personality Katie voice that was once described as "one in a bluegrass because we love it, and some Daley. "It wasn't just that high tenor, ei­ million," had been a fixture in Washington's James Taylor or Grateful Dead, and if people ther. He had such flair that he made the musical community since the 1950s. The Sel­ buy it, great. If they don't. what do we music a joy to watch ... at a time when so dom Scene was probably the premier blue­ care?'" many bluegrass groups would just stand grass band in the Washington area, accord­ Mr. Duffey was a large and imposing man straight-faced at the mike." ing to Pete Kuykendall, the publisher of with a precise and soulfully expressive voice, In terms of stubbornness and steel will, Bluegrass Unlimited magazine and a former and his singing was invariably moving. But Duffey was not unlike Bill Monroe, but bandmate of Mr. Duffey's. he also had an engaging, irrepressible and where Monroe was a tireless proselytizer for January 9, 1997 EXTENSIONS OF REMARKS 379 bluegrass. Duffey chose a different course was an interpreter in the finest sense of the Many will remember John's incredible gift that left him far less famous. word, bringing grass-roots culture to an for comedy, which grew out of the bad boy "He was proud but didn't want to pay any elite." persona he cultivated on stage. He was a of the prices-interviews, travel, rehearsing, Along with Flatt and Scruggs-a duo intro­ child of the suburbs and his wit was hip and recording," says Gary Oelze, owner of the duced to mass television audiences by the urbane rather than country. John's irrever­ Birchmere, the Virginia club put on the "Beverly Hillbillies" theme song-the Coun­ ence never served to diminish his music, but world entertainment map by virtue of the try Gentlemen probably made more blue­ he could and did ad-lib as skillfully as a pro­ Seldom Scene's 20-year residency there on grass converts in the '60s than Bill Monroe fessional comic. It was an attitude which had Thursday nights. himself. They were criticized in traditional been foreign to bluegrass. Before the Coun­ "He hated to rehearse, and would only pull bluegrass circles for being too "progres­ try Gentlemen appeared in 1957, hillbilly out his mandolin when it was time to play," sive"-for playing what was dismissively comedy had been the provenance of bass­ Oelze recalled yesterday, "And he hated the dubbed "newgrass." But on the emerging players who specialized in rube routines, studio, where his theory was, 'If I can't do it bluegrass festival circuit and in venues as blackened teeth, and ill-fitting costumes. right in one take, then I can't do it right at un-Shamrock-like as Carnegie Hall, their ap­ Their comedy at its best was crude and won­ all.' He's like Monroe in that both were set proach made them the music's most success­ derful but it was no match for John Duffey, in their own ways. John was a big domi­ ful ambassadors. whose unrepentantly loud, tasteless clothes nating character and cantankerous old fart. By 1969, however, John Duffey was frus­ and flat-top haircut made him look like a It's hard to imagine the big guy gone." trated with traveling, terrified of flying, and comic relic in the '90s, much as Cousin Mort, John Starling, a Virginia surgeon who was generally down on the music business. He re­ Chick Stripling and Kentucky Slim appeared for many years the Seldom Scene's lead sing­ tired to an instrument-building and repair to be rural leftovers in the '50s. er, concedes that Duffey was "sometimes dif­ business in Arlington. In weekly gatherings The Country Gentlemen formed as a result ficult to deal with from a professional stand­ at Bethesda's tiny Red Fox Inn, he played of a 1957 auto accident involving the band of point, but he was also true to himself and he with other gifted musicians who didn't want another bluegrass veteran, singer/man­ never changed. John was one of a kind." to give up their day jobs. These sessions dolinist Buzz Busby. Buzz's band had con­ Starling first encountered Duffey while in blossomed, in 1972, into a band with a modest tracted a July 4th engagement; to fill it, medical school at the University of Virginia name: the Seldom Scene. banjo player Bill Emerson engaged Charlie in the mid-'60s; at the time, Duffey was with The Country Gentlemen survived Duffey's Waller, John Duffey and a temporary bass the Country Gentlemen and Starling would departure, enduring 40 years around Waller, player. The result pleased everyone so much venture to Georgetown to catch them at the its lone survivor. Perhaps the Seldom Scene that they gave themselves a new name and Shamrock on M Street. "I never dreamed will go on, too. But John Duffey was so much kept right on working, even after Bill be­ one day I'd play in the same band," Starling the focus, the showman, the entertainer­ queathed the banjo chair to Pete says, adding that "everything I know about that huge man with his fingers flying over Kuykendall, who subsequently turned it over the music business-especially to stay as far his tiny mandolin-that it's hard to imagine to Eddie Adcock in 1959. Pete and John be­ away from it as possible-I learned from the band, or bluegrass, without him. came fast friends, and Pete continued to John. [From Bluegrass Unlimited, Dec. 10, 1996] work behind the scenes for the Gentlemen, "Left to our own devices, the Seldom composing new songs for them, introducing JOHN H. DUFFEY Scene would have cleared a room in 10 min­ them to old ones, and producing their utes without John," Starling says with a March 4, 1934-December 10, 1996 records for several years. Bass player Tom chuckle. "He was the entertainer, the rest of John Humbird Duffey died today. He was Gray joined the group later creating the us were players and singers. He did it all." 62. Classic Country Gentlemen. Duffey's career began with a care wreck in I had to write that down and stare at it for This unique combination of skills trans­ 1957 that injured a mandolin player, Buzz a few seconds to clear my mind and force formed the band virtually overnight. Charlie Busby, who fronted a bluegrass group. Bus­ myself to acknowledge that unthinkable Waller had always been at home with main­ by's banjo player, Bill Emerson, quickly and, for now, unacceptable fact of life. His stream country music as well as bluegrass. sought substitutes so the band could fulfill a death came from a massive heart attack at John and Bill Emerson's knowledge extended major club date. 10:20 a.m. at Arlington Hospital, after being to country, pop, jazz, blues and classical Emerson found a young guitar player taken in early this morning following some music. The Country Gentlemen's first named Charlie Waller and a young mandolin breathing problems. Though he had a history Starday release in 1958 clearly showed the player named John Duffey. And so on July 4 of minor heart problems, his health had oth­ way: "It's The Blues," neither blues nor 1957, what would soon be the Country Gentle­ erwise been good-good enough for a success­ bluegrass, was an experimental song which men played their first date, at the Admiral ful Seldom Scene performance in the New would have then seemed challenging even to Grill in Bailey's Crossroads. They liked their York City area this past weekend. Nashville professionals. Its reverse. "Back­ sound, and decided to strike out on their Those are the simple, immediate facts, the woods Blues," was a jazzy reprise of the 1920s own. It was Duffey who came up with the ones we enumerate when grief makes it dif­ pop standard "Bye Bye Blues" (which wasn't name, noting that a lot of bluegrass bands at ficult to think beyond them. John was a blues either). the time were calling themselves the so-and­ commanding presence in the Washington, Marshall McLuhan once defined art as so Mountain Boys. "We're not mountain D.C. area, where he was born, raised and "anything you can get away with," which boys," he said. "We're gentlemen." hardly ever left. His sheer size and bulk precisely matched John Duffey's attitude to­ And scholars. At least Duffey was, spend­ would have made him stand out in any wards bluegrass. John's respect for the clas­ ing hours at the Library of Congress's vast crowd. On stage. when he went to work on sic Monroe model was exceeded by no one's Archive of Folk Song, looking for unmined that comparatively tiny mandolin, it never but the Monroe musical constraints which musical treasures. Duffey was a product of looked like a fair match. especially since defined classic bluegrass were only one op­ the first American folk revival, which had John always made music look so deceptively tion for him. The Country Gentlemen's ec­ introduced urbanites to rural culture. And easy. lectic LP collections proceeded to span the he in turn passed it on. "John was one of John also played resonator guitar on a gap from ancient hymns and tragic songs to those people who brought rural music to the number of early Starday singles, including Ian and Sylvia, Tom Rush, Lefty Frizzel, and city," says Joe Wilson, head of the National his notable "Traveling Dobro Blues." He was Bob Dylan pieces, woven into a broad and Council for the Traditional Arts. "He was good at it too, but one can manage just so usually seamless fabric by a versatile and in­ concerned with authenticity even though he much. and John abandoned the instrument spired group of musicians. didn't share the [rural] background." early. Not so his finger-style guitar, which It turned out to be a perfect formula for What came to be known as the "classic" has replaced or supplemented the mandolin those times. Mike Seeger pitched the Gents Country Gentlemen lineup was settled in in John's arrangements many times over the to Moe Asch, whose Folkways label pub­ 1959 with the addition of guitarist-singer years. lished four LPs by them. Those recordings Eddie Adcock. Duffey (high tenor), Waller John Duffey's voice was his other superb quickly wound up in the hands of urban folk (low tenor) and Adcock (baritone) created instrument. His father had been a profes­ music buffs. becoming bluegrass primers for one of the finest vocal trios in bluegrass his­ sional singer, serving for a time in the Met­ many in northern cities and on college cam­ tory. The band's repertoire deftly melded ropolitan Opera chorus. John learned a few puses. This new audience in turn was recep­ bluegrass, fold and country tunes in a way vocal secrets from him. especially the arts of tive to John's adventurous music, and it that was both tradition-oriented and for­ breathing and singing from the diaphragm. helped pave the way for the Gentlemen's ward-looking. And they began adapting pop­ They served John well. His vocal agility, re­ growing international following in the 1960s. ular songs in the bluegrass style. markable range, distinctive vocal har­ As their career heated up, John grew tired Duffey "gave bluegrass accessibility to monies. and lovely intonation remained with of the necessary travel and retired from lawyers and accountants and people who him right up to the end, and his voice was as music in 1969. But the hiatus proved brief; in worked on Capitol Hill," says Wilson. "He instantly recognizable as any on the planet. 1971 he joined Tom Gray, Mike Auldridge, 380 EXTENSIONS OF REMARKS January 9, 1997 and Ben Eldridge to form the Seldom Scene, John would occasionally invite other players achieving considerable success in composed whose name indicated that it was a group in the audience to sit and play his mandolin. melodies for old poems he found during his whose ambitions were limited. But lightning They invariably found its high and tight ac­ research. Songs entering the Country Gen­ struck again. With John Starling, a singer tion intimidating. Akira Otsuka, a long time tlemen's repertoire in this manner include whose abilities matched John's, the group Washington area player and John Duffey dis­ the classic, "Bringing Mary Home" and " A quickly achieved the status and respect pre­ ciple, once looked at me after attempting a Letter to Tom". In addition to collecting viously accorded the Country Gentlemen. break on John's mandolin and asked, "How and arranging old songs and poems, John By then, the Duffey approach had been la­ does he play this thing?" composed and dedicated to his wife Nancy, beled "progressive bluegrass." a label which John's most remarkable instrument, how­ "The Traveler", and the haunting "Victim encouraged others to follow John's example ever. was his powerhouse tenor voice. There to the Tomb" . along with many others. and even exceed it, with pop tunes and rock has never been any voice in bluegrass more But by the late 1960s John had tired of all arrangements which often became tangential unmistakable or capable of such range as the traveling necessary to sustain a blue­ to the classic models. John's selections and that of John Duffey's. It seemed to ignore grass band. "I just got tired of saving up to aITangements sought to take alien material human bounds. His voice could range from go on tour," he said. In 1969 Duffey left the and bring it towards bluegrass rather than the soft and delicate, " Walk Through This Country Gentlemen with no intentions of force bluegrass to conform to other popular World With Me", to the aggressive and pow­ performing again. During the 1969 to 1971, musics. It was the right approach; the erful, " Little Georgia Rose". Even at age 62, John operated a musical instrument repair "newgrass" bands have come and gone while his voice was both challenging and inspiring shop. the Seldom Scene has prospered and endured. to accompany. But in 1971 John again found himself in­ John Duffey wasn't a sentimental person, John Duffey was as well known for his en­ volved with music business, and again, by ac­ and he'd probably be embarrassed by an out­ tertaining stage swagger as for his incom­ cident. He was joined in a informal group by pouring of emotion. But it's hard to envision parable musical abilities. He was like a loose former Country Gentlemen bassist Tom bluegrass without him, hard for those of us cannon on stage. Unlike many performers Gray, and by Ben Eldridge, Mike Aldridge of his generation and beyond not to remem­ who have been entertaining for a long period and John Starling. This band would go on to ber many evenings at the Crossroads, the of time. John did not work from scripted be known as the Seldom Scene. Shamrock, the Cellar Door, the Red Fox and stage patter. Anything and anybody was fair As the name implies, this group of musi­ the Birchmere, local joints which may not game. There were many ti.mes John would cians did not form with the intention of have been up to the standard of the down­ hook onto a unsuspecting heckler in the au­ touring and playing music for a living. All town cocktail lounges. but where John, the dience and send the rest of the band mem­ the members had day jobs and simply wanted Gents and the Scene enjoyed extended en­ bers scurrying for cover. But with that un­ an outlet for their music. John said it was, gagements over the past 40 years. That's not predictable tension came a certain excite­ "Sort of a boy's night out, like a weekly to say that John wasn't influential beyond ment and unpredictability that was fuel for card game." The group started out in a mem­ his home environs. He traveled when he had the fire of all Seldom Scene stage shows. ber's basement, playing for fun, and then to, to many parts of the globe, sharing the In his forty years in the bluegrass music, moved to the small Red Fox Inn outside stage with everyone from Linda Ronstadt to John was unique and fortunate to have been Washington, DC. The group would later move Bill Monroe-who uncharacteristically, rare­ the catalyst in forming two landmark bands. across the Potomac River to a weekly Thurs­ ly failed to crack a smile in John's presence. The first came by accident, literally. day night time slot at the Birchmere, in John Duffey offstage was a modest and unas­ On July 4th, 1957, Buzz Busby, a legendary Northern Virginia. suming person, who nevertheless was a loyal Washington area mandolin player and tenor friend to many. professionals and fans alike. singer, was contracted to play a gig at a Not being driven by the financial Even those of us who weren't close to him local night spot. When he was involved in an contraints to adhere to any of the rules nor­ can attest to the way his art touched our automobile accident and was unable to make mally associated with a professional touring lives and made them better. His death will be the show, the group's banjo player, Bill group, the Seldom Scene did the music they hard for the many music professionals whom Emerson, started making phone calls and ar­ wanted to do the way they wanted to do it. "If he inspired. informed and befriended. There ranged for Charlie Waller and John to fill in. John's feeling was that people enjoy what hasn't been much that's taken place in blue­ The resulting sound was pleasing to every­ we do, fine. If they don't, that's okay, too." grass since the 1950s that he hasn't influ­ one that they decided to give themselves a With this freewheeling attitude, the group enced one way or another. new name and continue playing together. continued to stretch their musical reach by Survivors include John's wife Nancy who. Never one to follow trends, John felt that recording tunes from the Eric Clapton cata­ among other things, has been a loyal, appre­ a band from Washington DC should choose a log, "Lay Down Sally" and "After Mid­ ciative spouse, a daughter, Ginger Allred and name that reflected its own heritage and not night", to long improvisational numbers three stepchildren: Donald Mitchell, Richard use a " So and So and the Mountain Boys" or with extended jams like "Rider". Mitchell and Darci Holt. some other name that suggested they were This continuing tendancy to incorporate Goodbye, John, and thank you from the from somewhere they were not. The name influences from outside of the traditional bottom of our hearts. Like the ads say, your John chose was The Country Gentlemen, sources made it easier for the urban audi­ gifts will keep on giving. then a very urbane name for a bluegrass ences around Washington to identify with [From Sing Out!] band. His former colleague in that group, bluegrass. It also expanded the group's popu­ The following tribute to John Duffey writ­ Charlie Waller, continues to tour and per­ larity to far beyond the doors of the local DC ten by Dudley Connell for Sing Out! maga­ form with that band. club scene. And the eXPerimentation contin­ Due to the interest of Bill Emerson and ued. In the weeks before his death, the cur­ zine. Mr. Connell is lead singer in the Seldom rent band was in rehearsals for their next re­ Scene. co-founded by Mr. Duffey. John, tunes that were country, pop, blues, When John Duffey died on December 10, jazz, and classical became fair game for the cording project and were working on an ar­ 1996, he left an imposing and very important Country Gentlemen who became noted for rangement to the Muddy Waters classic, forty year musical legacy. pushing the envelope of the existing blue­ "Rollin' and Tumblin" . John Duffey and the John was a big guy with commanding grass repertoire. John said, "There were Seldom Scene continued to be active up to stage presence. With his 1950s style flattop enough versions of 'Blue Ridge Cabin Home' the end, playing in Englewood, New Jersey, hair cut, multicolored body builder paints and 'Cabin in Caroline' to go around." He just days before John's death. and unmatching bowling shirt, he left an in­ was looking for something different. Hence John Duffey's influence on generations of delible impression. When he aITived at the the Country Gentlemen's song bag included musicians cannot be overstated. Noted music stage with his trademark mandolin and John's jazzy mandolin interpretation of historian, Dick Spottswood, said, "There home made cup holder, complete with a spe­ " Sunrise". Bob Dylan's "Its All Over Now hasn't been much that's taken place in blue­ cial clip ready to attach to an unattended Baby Blue", and a mandolin version of the grass since the 1950s that he hasn't influ­ microphone stand, you knew John was ready theme from the movie "Exodus" . enced one way or another." to go to work. John also recognized the importance of the John Duffey is survivied by his wife Nancy His huge hands flew expertly across the Folk Revival in the early 1960s and spent a and daughter, Ginger Allred. He also has neck of his tiny mandolin at a speed that considerable amount of time at the Library three stepchildren; Donald Mitchell, Richard seemed impossible. He made it look so easy. of Congress, researching material and Mitchell, and Darci Holt.