E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, FIRST SESSION

Vol. 149 WASHINGTON, TUESDAY, NOVEMBER 4, 2003 No. 158 Senate The Senate met at 9:33 a.m. and was I pledge allegiance to the Flag of the on Thursday, and we will complete called to order by the President pro United States of America, and to the Repub- that before the end of this week. tempore (Mr. STEVENS). lic for which it stands, one nation under God, Also, additional appropriations con- indivisible, with liberty and justice for all. ference reports may be ready during PRAYER f the week, and we will proceed to those that are available. The Chaplain, Dr. Barry C. Black, of- RECOGNITION OF THE MAJORITY It is my understanding the military fered the following prayer: LEADER Let us pray. construction conference is completed, God of love, we praise You because The PRESIDENT pro tempore. The and that may be ready for consider- You are good. You made the Sun to majority leader is recognized. ation this week. rule the day and Your love is eternal. f We will continue to schedule votes as We receive strength from Your kind- necessary over the course of the week. ness and power from Your favor. You SCHEDULE This week we will also continue on choose to bless us even when we don’t Mr. FRIST. Mr. President, today we the appropriations bills. I have been deserve it. Great and marvelous are will have a period of morning business speaking to the chairman of the com- Your favors. for the first hour of the day’s session. mittee, and it is hoped the remaining Lord, this is Your world and Your Following that hour, the Senate will bills can be finished in a timely way. I purposes cannot be stopped. Use us as begin consideration of the fair credit will have more to say on the specifics Your instruments to accomplish Your reporting legislation. The consent of the appropriations schedule after will. agreement governing that bill allows further discussion with the chairman, Today, give Members of this body for a limited number of amendments to Senator STEVENS, and the Democratic courage and strength for their impor- be offered to the legislation. We hope leadership as well. tant work. May they avoid those words to complete action on that bill during With that said, in order for us to ad- that create division and work toward a today’s session. journ at the earliest time this year, it harmony that builds and strengthens. Last night we were also able to reach is important for all of our colleagues to Give them radiant health for these an agreement on H.R. 1828, the Syria recognize we are going to need to work challenging days and a serenity that accountability bill. We may be able to every day and have productive days. comes from trusting You. Help them to schedule consideration of that measure That is going to include Mondays, and find fulfillment in the knowledge that during today’s session as well. it is going to include Fridays. It will their work will help keep people free. Rollcall votes will occur throughout likely include each day next week. I We pray this in Your powerful name. the day today. The Senate will recess know a lot of Senators are wondering Amen. from 12:30 to 2:15 for the regular party about their schedule for next week, f luncheons. given the Veterans Day holiday. I In addition to the items I have men- think over the course of the morning PLEDGE OF ALLEGIANCE tioned, the Senate will act this week we will be able to lock in an under- The President pro tempore led the on the Internet tax moratorium exten- standing in terms of how and when we Pledge of Allegiance, as follows: sion. I anticipate that debate to begin can consider these appropriations bills.

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VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00001 Fmt 0624 Sfmt 8633 E:\CR\FM\A04NO6.000 S04PT1 S13840 CONGRESSIONAL RECORD — SENATE November 4, 2003 After that is done, we will clarify what The PRESIDENT pro tempore. With- ment, excessively high temperatures will happen on Veterans Day. out objection, it is so ordered. from the welding section, no health in- We have all come to the floor many Mr. DORGAN. My understanding is surance, no social pension, strict fac- times to express our desire to finish we are in morning business. tory rules, harsh management, no talk- our work at the earliest opportunity The PRESIDENT pro tempore. The ing during working hours. and, in my mind, we have 3 weeks—ac- Senator is correct. Twelve workers are housed in each tually, it is less than 3 weeks—now to f dark, stark dorm room. They have two complete our work. In order to do that, meals a day, with poor quality food. If JOBS IN AMERICA we will have to work together. We will the workers complain or attempt to have to have full, productive days, in- Mr. DORGAN. Mr. President, I bring raise a grievance about harsh working cluding Mondays and Fridays. It may to the attention of the Senate an issue conditions, or excessively long, forced well be we have to even consider week- dealing with jobs. It is a story about overtime hours or low wages, they are ends in order to complete our business. international trade, unfair competi- immediately fired. We will monitor the schedule and tion, and the impact it has had on In this particular plant, in late 1999, progress closely over the next day or so countless of our workers. all the workers in the delivery section and make those final decisions regard- There was great euphoria a week or went on strike and were fired imme- ing scheduling next week. At this time, so ago about the economic growth diately. I think all Members should prepare for numbers for the past quarter, some 7- So the question is, if we cannot a very busy 21⁄2 weeks. percent economic growth. The problem produce bicycles in Ohio for 25-cent-an- Again, I would like very much for us is, it was accompanied by a loss of jobs. hour to 41-cent-an-hour wages, do U.S. to work together to shoot for a total of Jobs are the kind of thing that fami- workers lose? Under current cir- 3 weeks, around November 21, to de- lies talk about in the evening as they cumstances, yes, we do, because com- part. sit around the supper table: Do I have panies decide that if U.S. workers can’t Mr. REID. Mr. President, let me say a good job? Does it pay well? Do I have compete with slave-like conditions, on behalf of the minority that we are job security? Do I feel good about the tough luck. If you can’t compete, you most happy to work on all the items company I am working for? are out. the majority leader has mentioned. We Our country, regrettably, has lost So people who were working in this look forward to working with the nearly 3 million jobs in the past several company in Celina, OH, making bicy- chairman of the Appropriations Com- years. cles for our marketplace, could not mittee and Senator BYRD to move more This is a picture of a bicycle. This compete because they were expecting a of these appropriations bills. I think we happens to be a Huffy bicycle. Huffy is liveable wage. They worked hard, and have a really outstanding record work- a well-known brand. It is sold at Wal- they were able to take a paycheck ing with the majority on appropria- Mart, KMart, Sears. This Huffy bicycle home that meets the needs of their tions bills and will continue to do that. used to be made in the United States. families: $11 an hour plus benefits. But We feel it is vitally important. The In Celina, OH, some 850 U.S. workers they were told that this was an out- conference which was completed last worked manufacturing bicycles. rageous level of compensation: $11 an week was extremely difficult and long. When a bike came off the Ohio hour—far too much. But we now have a bill which the Presi- plant’s assembly line, they would put a So instead Huffy found a place where dent has. little decal on, of an American flag. it could pay 25 cents an hour, and then We finished the Interior appropria- That was then, this is now. In the shipped its bikes back to Celina, OH, so tions conference report. I am happy to last couple of years, those jobs have all that some young kid in Celina, OH, hear we have a completed military con- moved to China, Taiwan, and Mexico. could go into a Wal-Mart or a Sears or struction conference report. That There were about 1,850 workers at a KMart, and with a gleam in their eye wasn’t easy. Everyone had to take Huffy plants in the United States as of buy his first bicycle. A bicycle now their projects in their States and cut 1998. And all those folks were fired, as made by somebody who is making 25 back from what they had. their jobs were moved overseas. cents an hour, working 93 hours a We look forward to a productive 21⁄2 In Celina, OH, Huffy workers were week, 7 days a week. weeks. I hope we will do everything we paid $11 an hour plus benefits. These I guess this so-called globalization is can to complete our business before are decent manufacturing jobs. Nobody globalization without rules. It means it Thanksgiving. was getting rich on $11 an hour plus does not matter that Americans lose We are here to work nights, week- benefits, but these were good, solid their jobs to somebody making 25 cents ends, whatever it takes, to complete jobs. an hour. that work. Then they were told one day they I have given other examples of 12- would not be working those jobs any f year-olds working 12 hours a day, mak- longer because Huffy bicycles would be ing 12 cents an hour. I am talking RESERVATION OF LEADER TIME produced in China. about Huffy bicycles today to drive The PRESIDENT pro tempore. Under My understanding is that the very home a point, because Huffy is a house- the previous order, the leadership time last assignment for these U.S. workers hold name. is reserved. was to take off that decal from Huffy If we fought for a century on the f bikes, and slap on a decal that had a issue of a safe workplace or child labor picture of the globe. laws or minimum wages or the condi- MORNING BUSINESS Let’s talk a little about why a com- tions of production, then the question The PRESIDENT pro tempore. Under pany would decide to shut its plant in should be, Is there an admission price the previous order, there will be a pe- Ohio and make bicycles in China. to the American marketplace? Is there riod for the transaction of morning Huffy started to manufacture its any admission price at all? business for 60 minutes, with the first bikes at a plant in China, where work- What about bicycles made in a plant 30 minutes under the control of the ers have to put in 131⁄2- to 15-hour where workers are working 93 hours a Democratic leader or his designee and shifts, from 7 a.m. to 11 p.m., 7 days a week, where workers are working from the second 30 minutes under the con- week. 7 a.m. to 11 p.m., 7 days a week? Is that trol of the Senator from Texas, Mrs. Let me say that again: 93 hours a fair trade—25 cents an hour, 93 hours a HUTCHISON, or her designee. week, 7 days a week, from 7 a.m. to 11 week, 7 days a week, working in a fac- Mr. REID. I suggest the absence of a p.m. tory that does not meet the basic con- quorum. They are paid between 25 cents an ditions of fairness or safety for work- The PRESIDENT pro tempore. The hour and 41 cents an hour. Failure to ers? clerk will call the roll. work overtime is punished with a fine Is that fair trade? It is not where I Mr. DORGAN. I ask unanimous con- of 2 days’ wages. come from. Yet no one will say a word sent that the order for the quorum call There are strong chemical odors in about it. In this town, you are either be rescinded. the plant from the painting depart- blindly for free trade, unfettered free

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.002 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13841 trade, globalization, or else you are that is all great—but it does not mean tainly be enhanced by having goods considered some xenophobic isola- a thing if we are losing jobs. The en- and services come from other coun- tionist stooge who does not understand gine of progress for the American fam- tries, but only when they are produced it all. ily, the engine of progress for this under some basic element of decency It is so tiresome to see people in this country’s economy, is jobs, good jobs and fair play. Chamber and the people who write the that pay well, that have decent bene- There is an organization I want to editorials and the op-ed pieces to con- fits, that give a family confidence and give credit to that has done excellent tinue to make excuses for the thou- hope about the future, because that work in this area. The National Labor sands, and, yes, millions of jobs lost in hope and confidence is what expands Committee investigates unfair labor this country by people who worked the economy. That is all the economy practices in various parts of the world. hard but who could not make it be- rests on. They have investigated the dismal cause they made too much money. The great minds involved in inter- labor conditions at the Huffy factories They could not compete with somebody national trade tell the 850 workers in in China, as an example. making 25 cents an hour in Asia. It is Celina, Ohio: you are paid too much Look, I think these are really impor- so tiresome to see and read and hear money. You cost $11 an hour to build tant issues. We talk about the econ- the excuses from those who continue to bicycles. Shame on you. We can do this omy, expansion, jobs, and opportunity. support a failed trade policy. for 25 cents an hour in China. So say All of this, in my judgment, comes If this is a race to the bottom, with goodbye to your jobs. We are taking down to the basic premise that when corporations deciding they want to cir- them to China. American families in this country have cle the globe to find out, ‘‘Where can I Is that what we want for our coun- a job, they have security, and they feel produce the cheapest? Where can I find try? Is that what we are willing to good about the future, our economy 12-cents-an-hour production by 12-year- stand for? Well, I am telling you some- thrives. But we are increasingly seeing olds?’’ if that is what this is a race to- thing, year after year after year, the jobs in this country, which have been wards, we lose, this country loses. majority of the people in this Chamber the bulwark of support for American More and more families in this coun- are willing to stand for it. At some families, moved overseas and the try will lose their jobs, not because point we better get a backbone to American families are told: We are they are not great workers, not be- stand up and insist and demand that sorry, you don’t have a job anymore, so cause they do not know their job well, there is an admission price to the you can find two or three part-time but because someone else in other American marketplace. We are open jobs to make up the difference and parts of the world—where they are not and free, but we require fairness. have all of the members of your family able to form labor unions, where they There are thousands of examples like working, and you can make it that are not able to complain about unsafe the one involving Huffy bicycles, all way. working conditions, where they are not over this country—of someone coming That is a quick way to undermine the able to stop a plant from dumping home saying to their husband or wife: strength of this country. No country chemicals into the air and the water, Honey, I have lost my job. They are will long remain an economic power or and where they are not able to com- shipping our manufacturing to China, world economic power without a plain about being paid 12 cents or 20 or Indonesia, or Bangladesh, or Sri strong, vibrant, growing manufac- cents an hour—will get the jobs. Lanka. Why? Because I didn’t do a turing sector. Ours is being decimated. That product will then be made and good job? No. Because I am making $11 I yield the floor. sent back to the store shelves here. I an hour, and they say that is too much. The PRESIDING OFFICER (Ms. MUR- will guarantee you, it will not be They can get it for 15 cents an hour or KOWSKI). The Senator from Florida. cheaper, it will simply represent more Mr. NELSON of Florida. Madam profit for those who took jobs away 31 cents an hour somewhere else. This is not going to save the Amer- President, how much time remains? from Americans to give them to people ican consumers any money; they will The PRESIDING OFFICER. Three in other parts of the world who will charge the same price for the products. minutes. work for pennies an hour. FOREIGN OIL We can continue to pretend it does It is about profit—international profit. Mr. NELSON of Florida. Madam not happen. We can continue to act This is hurting our country. These President, I wish to follow the com- like ostriches. But the fact is, this trade rules injure this country and we country is losing economic strength as have to change them. I serve notice ments of the Senator from North Da- a result of trade policies that are, in again that, as we negotiate these new kota about jobs going overseas and my judgment, incompetent. trade agreements—and they are being point out another vulnerability we We will have on the floor of this Sen- negotiated in Australia, the free trade have as a result of dependence over- ate, very soon we hear, additional free agreement with the Americas, and oth- seas, and that is our dependence on for- trade agreements—the Australia agree- ers. Be aware that some of us in the eign oil. ment, the Free Trade Agreement of the Senate are going to continue to fight Today, we are importing over half of Americas. In fact, this administration as hard as we can possibly fight to say our daily consumption of oil. That is is now working on additional free trade that what is happening to American moving toward 60 percent of our daily agreements. We just did one with jobs is wrong. consumption of oil that is coming from Singapore which itself was incom- If we are inefficient and cannot com- foreign shores. As a result, not only petent. But that is another story for pete, that is our problem. But don’t does that put us in a precarious eco- another time. tell me the workers in Ohio making $11 nomic position, but it puts us in a pre- This country, it seems to me, has a an hour, building a good bicycle, with carious defense position. Look at the great deal at stake. This economic en- an American flag insignia on the front difference in how we would be able to gine of ours will work provided we have of it, are inefficient. operate in the Middle East, in the Per- jobs for American families. When you We fought for a century over these sian Gulf region, if we did not have the see the decimation of our manufac- issues—fair pay, safe workplaces, the delivery of that oil. Look at the poten- turing base, and now our high-tech in- ability to organize as a labor union. We tial strike of a terrorist taking down a dustry, as well, with jobs moving worked for a century on these things, supertanker in the 19-mile-wide Strait wholesale overseas—in the manufac- and now you wipe it all out by pole- of Hormuz and what that would do to turing base, moving to Indonesia, vaulting over those nettlesome little the world economy if that oil could not China, and other parts of Asia; in the laws in the United States and say: We flow out to the industrialized world. high-tech industry, jobs moving to can avoid that. We will ship our bicycle Yet what do we do about an energy pol- India and other countries, and moving production to—in this case, China; it icy here? en masse—then this county’s economy could have been Sri Lanka or Indo- The Senator from North Dakota and is going to have trouble because the en- nesia. I tried to do a simple little thing such gine of progress in this country is jobs. We ought to think long and hard as get increased mileage for SUVs You can talk all you want about per- about how to save our jobs in this phased in over the next decade, and we centages—7 percent economic growth; country. Our marketplace can cer- only got some votes—in the thirties

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.004 S04PT1 S13842 CONGRESSIONAL RECORD — SENATE November 4, 2003 out of 100 Senators—to do that. When Georgia—soon to be senior Senator, in Federal bench. By shirking their duty we try to look down the road at alter- commending the now-senior Senator to make a decision on the merits of the native ways, where is most of our en- from Florida, BOB GRAHAM. I, too, saw President’s nominees—Priscilla Owen, ergy consumed? It is consumed in the his announcement yesterday. Bill Pryor, Caroline Kuhl, and now transportation sector. In transpor- Senator GRAHAM and I have had the Charles Pickering—a minority of this tation, where is most of our energy opportunity to work on many issues to- Chamber keeps the Senate as a whole consumed in this country? It is in our gether since our States border each from performing its duties under the personal vehicles. Today, we have vehi- other. He has been a great public serv- Constitution. cles made by Honda and Toyota that ant for this Senate, his State, and for It is not as though the Senators who are getting in excess of 50 miles per America. He is one of those folks we are blocking an up-or-down vote can gallon; they are called hybrid vehicles. greatly admire, and we will miss him. object to the qualifications of these It is a computer that runs between an I have great respect for Senator nominees. Let’s go down the list. Let’s electric motor and a gasoline engine, GRAHAM. I certainly respect his deci- start with Priscilla Owen who, like and they get over 50 miles per gallon. sion to go back to Florida and enjoy Judge Pickering, is nominated to the They cannot make enough of these for his family. He has a farm in Albany, Fifth Circuit Court of Appeals, which the demand of the American consumer. GA, which is close to my home. We are hears appeals on Federal cases in Yet we do not have a lot of these hy- going to get him over there more often Texas, Louisiana, and Mississippi. brid cars that are offered to the public. because he and I enjoy bird hunting to- Justice Owen graduated cum laude What are we doing for the future? We gether. I, too, join with Senator NEL- from Baylor Law School and then pro- could wean ourselves from dependence SON in commending Senator GRAHAM. ceeded to earn the highest score on the on foreign oil if we started a crash f Texas bar exam that year. She prac- course to develop a hydrogen engine ticed law for 17 years before being JUDICIAL NOMINATIONS that was cheap enough and efficient elected to the Supreme Court of Texas enough for the American people. Years Mr. CHAMBLISS. Madam President, in 1994. Justice Priscilla Owen was ago, in the early sixties, when this Na- I rise this morning to speak about a elected by the people of Texas, the sec- tion made up its mind, after the Presi- grave injustice that has befallen this ond most populous State in this coun- dent declared we were going to develop Chamber, and that is the denial by a try, to its highest court. In her last re- the technology and the American inge- minority of Senators of the right to an election in the year 2000, she was re- nuity to go to the Moon and return up-or-down vote on four of the Presi- elected with 84 percent of the vote, safely within that decade, don’t you dent’s judicial nominees. along with the endorsement of every think that with that kind of persever- Last week, the Senate voted 54 to 43 major newspaper in the State of Texas. ance and will, we could have ended up to move forward with a vote on Judge When the opponents of a fair vote on with an engine that would have been Charles Pickering who now serves on the merits cannot attack a nominee’s an alternative to oil and we would have the District Court for the Southern qualifications, they come up with ex- started to wean ourselves from our de- District of Mississippi and who was se- cuses: She is not in the ‘‘mainstream of pendence on this foreign oil that leaves lected by the President as one of his legal reasoning.’’ Out of the main- this country all the more vulnerable nominees for the Fifth Circuit Court of stream? The people of Texas obviously defensewise? Appeals. Fifty-four Senators—a major- don’t think she is out of the main- Indeed, we could, but it takes leader- ity, in other words—voted to allow stream. She received 84 percent of the ship. It takes the will of the American Judge Pickering’s nomination to pro- vote in her reelection in 2000. people to say there is going to be a dif- ceed to a vote, and yet because of the Next we have Caroline Kuhl who is ferent way. way the Senate rules are presently one of President Bush’s nominees to I have discussed this issue in terms of being misapplied, a majority of Sen- the Ninth Circuit Court of Appeals, defense. I have discussed this issue in ators cannot even bring about a vote which handles Federal appeals in many terms of economic vitality as well as on the merits of a judge. That is wrong, of the States out west. Caroline Kuhl defensewise, and certainly environ- and it is unconstitutional. has been a State trial judge in Cali- mentally it would make a significant There is nothing in the Constitution fornia since 1995. Judge Kuhl is another difference as well. that requires a supermajority—that is, well-qualified nominee who is being de- three-fifths, two-thirds, or anything f nied an up-or-down vote on her nomi- more than a simple majority of Sen- nation. But you don’t have to take my SENATOR BOB GRAHAM ators—to give advice and consent. The word on her qualifications. The Amer- Mr. NELSON of Florida. Madam Constitution spells out only five in- ican Bar Association, the gold stand- President, in the minute I have re- stances where a supermajority is re- ard, has rated her as ‘‘Well Qualified.’’ maining, I wish to say that, of course, quired. Those five instances are: the Yet, despite her credentials, Judge the junior Senator from Florida was ratification of a treaty, impeachment, Kuhl has also been branded as ‘‘outside sad to hear the announcement of the expulsion of a Senator, the override of the mainstream.’’ senior Senator from Florida announc- a Presidential veto, and adoption of a Then there is Bill Pryor, the attor- ing his retirement. constitutional amendment. These five ney general for the State of Alabama, a Senator BOB GRAHAM is one of the situations should occur infrequently, dedicated public servant who has most distinguished public servants who which is why the Framers of the Con- shown time and again that he can sepa- has ever come out of the State of Flor- stitution made them difficult to rate his personal beliefs from his pro- ida: a two-term Governor, a former achieve. fessional duties. Again, ‘‘outside of the State legislator, and now a many-term In contrast, the approval of Federal mainstream.’’ That is, sadly, what you Senator who has given great leadership judges should occur frequently; I dare- will hear about Bill Pryor. to our State. say 100 percent of the time, when you It doesn’t matter that Thurbert I will have more to say about this have qualified nominees. That is why Baker, the attorney general for my later, but I am proud to stand to thank there is no requirement in the Con- State of Georgia, Mr. Pryor’s counter- my friend for his years and years—a stitution for more than a simple major- part in my State, an elected Democrat, lifetime—of public service for the ity to confirm these nominees. Advice has said that Bill Pryor possesses the United States and the people of Flor- and consent often requires debate, al- qualities and experience needed to ida. ways requires deliberation, and always serve the people of Georgia on the I thank the Chair. requires a decision. Each Senator Eleventh Circuit. The PRESIDING OFFICER. Who should decide how to vote on a given Earlier this year, Attorney General yields time? nominee. Vote yes, vote no, but vote. Baker wrote a letter to Senators SHEL- The Senator from Georgia. For the first time in our country’s BY and SESSIONS of Alabama to express Mr. CHAMBLISS. Madam President, history, the filibuster is now being his support for Bill Pryor. In support of I join with the now-junior Senator used by a minority of Senators to Bill Pryor, Thurbert Baker wrote, and from Florida—a border State with block the President’s nominees to the I quote:

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.007 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13843 Bill has distinguished himself time and What he did says a lot about Charles have the will to win as long as the again with the legal acumen that he brings Pickering in and of itself, outside of American people have the will to win. to issues of national or regional concern as the decisions he has made on the bench We cannot be defeated by Saddam well as with his commitment to furthering Hussein or Osama bin Laden militarily. the prospects of good and responsive govern- as a district court judge. ment. Close quotation. Judge Charles Pickering has tremen- They are engaged in a psychological dous bipartisan support from the peo- war to break our will. This past week- Across State lines and across party end brought news of the tragic loss of lines comes this endorsement of Bill ple back home who know him best, in- 16 soldiers in a Chinook helicopter mis- Pryor. Again, you will hear the same, cluding the top Democratic elected of- hap. No one in this body takes that lame excuse: ‘‘He’s out of the main- ficials of Mississippi. This shows that current conflict lightly. Any loss of life stream.’’ he is well within the mainstream of I mentioned earlier Judge Charles legal thinking in Mississippi today and is difficult to bear, particularly this Pickering, who is nominated to the in the Fifth Circuit, just as Priscilla tragic situation. Yet we must not for- U.S. Circuit Court of Appeals for the Owen’s reelection by the people of get the losses incurred in the United Fifth Circuit. A few weeks ago, in our Texas, with 84 percent of the vote, States on 9/11, and the loss of innocent last Judiciary Committee hearing on shows that she is in the mainstream in lives in other terrorist attacks, from Judge Pickering’s nomination, Senator Texas and in the Fifth Circuit. the marine barracks in Lebanon to the KENNEDY spoke of the important role In September, Miguel Estrada with- disco bombing in Bali. the Fifth Circuit has played during the drew his nomination after a minority The message we must send, if we are civil rights struggle, and he is abso- of Senators prevented him from getting to avoid future catastrophic attacks, is lutely correct in that. As a lawyer a vote for 28 months. This is a man who that no price is too great for the free- from Georgia who once was a proud came to the United States from Hon- doms we and other freedom-loving peo- member of the old Fifth Circuit bar, duras as a teenager, graduated from ples now hold dear. The message we before that circuit was split in half in Columbia undergrad and then Harvard need to send our enemies is that we 1980 to create the Eleventh Circuit, I Law School, worked in the Justice De- will not cut and run. There are critics of U.S. foreign pol- am well aware of the tremendous role partment for two administrations, in- icy who now want us to pull out. They the Fifth Circuit played in the civil cluding the Clinton administration, are just dead wrong. Do they think rights struggle. and was rated ‘‘Well Qualified’’ by the It is with a deep and abiding respect American Bar Association. So I guess Saddam Hussein was not really evil, for the tradition of the Fifth Circuit we should not forget Miguel Estrada was not really a threat? that I support Judge Charles when we tally these filibusters. It is Last week, I talked a little bit about Pickering’s nomination to that bench really not four, it is five. I suspect it is the unclassified report released by Dr. as one who deserves the honor of this about to be six because we have an- David Kay, the head of the Iraqi Sur- service. other nomination that will likely come vey Group, who has been over there While Judge Pickering’s critics have out of the Judiciary Committee on looking. He has found a tremendous and will continue to unfairly label him Thursday of this week, and that is the record of denial, deception, and de- as a racist and segregationist and, nomination of California Supreme struction, which among other things is again, ‘‘out of the mainstream,’’ noth- Court Justice Janice Rogers Brown. likely the reason we have not found the ing could be further from the truth. The American people will not con- storehouses of weapons of mass de- Charles Pickering has worked to elimi- tinue to stand for this inaction, and struction. nate racial disparities in Mississippi. they will not forget this obstructionist Dr. Kay believes that people have Judge Pickering has not just talked game playing. While we can still try to been distorting his record. I will sub- about improving race relations, he has maintain the dignity and tradition of mit for the record a copy of his Novem- backed up his words with a lifetime of the Senate, I ask my colleagues to vote ber 1, 2003, piece in the Washington action. For example, in Mississippi to give each of these qualified nomi- Post. It begins: during the 1960s, he testified and helped nees an up-or-down vote. I ask my col- The October 26 front-page article ‘‘Search prosecute Sam Bowers, the imperial leagues to make up their minds. Their in Iraq Fails to Find Nuclear Threat,’’ is wizard of the Klu Klux Klan, for the constituents deserve it. Let us move wildly off the mark. murder of a civil rights activist, forward on the merits. I ask unanimous consent that this be Vernon Dahmer. He served as a leader I yield the floor. printed in the RECORD after my re- in his community to integrate the pub- The PRESIDING OFFICER. The Sen- marks. lic schools. In 1976, he hired James ator from Missouri. The PRESIDING OFFICER. Without King as the first African-American po- Mr. BOND. On behalf of the Senator objection, it is so ordered. litical staffer for the Mississippi Re- from Texas, I claim 9 minutes of the (See exhibit 1.) Mr. BOND. I am going to quote from publican Party. He represented an Afri- time that has been reserved for her and just pieces of his report, because appar- can-American man falsely accused of ask that the Chair notify me after 8 ently a lot of my colleagues who are robbing a 16-year-old girl in 1981. He minutes. chaired the Race Relations Committee The PRESIDING OFFICER. The saying it confirms that there were no for Jones County, MS, in 1988. He Chair will do so. weapons of mass destruction have not helped establish a group to work with read the report. f Here is what Dr. Kay said: at-risk African-American youths in Laurel, MS, and he serves on the board SUPPORT OF AMERICAN TROOPS With regard to biological warfare activi- Mr. BOND. Madam President, I rise ties, which has been one of our two initial of the Institute of Racial Reconcili- areas of focus, ISG teams are uncovering sig- ation at the University of Mississippi. this morning in support of the U.S. nificant information, including research and Now, I grew up in the South, and for forces in Iraq and all our forces en- development of BW-applicable organisms, those who did not grow up in the gaged in the war on terrorism. I am de- the involvement of Iraqi intelligence service South, to criticize this man, during a lighted and very pleased that the vast in possible BW activities, and deliberate con- very difficult time in the history of our majority of this body voted overwhelm- cealment activities. All of this suggests Iraq, country, is not only unfair and unjust, ingly in support of the supplemental after 1996, further compartmentalized its it is almost un-American. This man and our ongoing efforts to protect our program and focused on maintaining small- made a commitment to ensure that troops to finish the job so we can bring er, covert capabilities that could be acti- vated quickly to surge the production of BW race relations in Mississippi would im- our troops home. agents. Debriefings of IIS officials and site prove every single day of his life, and Last week, I had the honor of going visits have begun to unravel a clandestine unless one has walked in the shoes of out to Walter Reed to visit a number of network of laboratories and facilities within somebody like Judge Pickering and our wounded soldiers recently returned the security service apparatus. This network looked race in the eye as he did, they from Iraq. The spirit and enthusiasm of was never declared to the U.N. and was pre- cannot understand the principle, the our service men and women serving in viously unknown. integrity, and the character of this the war on terror is inspiring. It should Again, he said two key former BW man. remind all of us that our warfighters scientists confirmed that Iraq, under

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.009 S04PT1 S13844 CONGRESSIONAL RECORD — SENATE November 4, 2003 the guise of legitimate activity, devel- in resuming uranium enrichment by cen- (IIS) in possible BW activities, and delib- oped refinements of processes and prod- trifuge and electromagnetic isotope separa- erate concealment activities. All of this sug- ucts relevant to BW agents. Iraq con- tion (EMIS). gests Iraq after 1996 further compartmen- A line of UAVs not fully declared at an talized its program and focused on maintain- cealed equipment and materials from undeclared production facility and an admis- ing smaller, covert capabilities that could be U.N. inspectors when they returned in sion that they had tested one of their de- activated quickly to surge the production of 2002. One noteworthy example is a col- clared UAVs out to a range of 500 km, 350 km BW agents. lection of referenced strains that ought beyond the permissible limit. Debriefings of IIS officials and site visits to have been declared to the U.N. Continuing covert capability to manufac- have begun to unravel a clandestine network Among them was a vial of live C. botu- ture fuel propellant useful only for prohib- of laboratories and facilities within the secu- ited SCUD variant missiles, a capability that rity service apparatus. This network was linum Okra B from which a biological never declared to the UN and was previously agent can be produced. was maintained at least until the end of 2001 and that cooperating Iraqi scientists have unknown. We are still working on deter- ISG teams have developed multiple said they were told to conceal from the UN. mining the extent to which this network was sources that indicate that Iraq ex- Plans and advanced design work for new tied to large-scale military efforts or BW plored the possibility of CW production long-range missiles with ranges up to at terror weapons, but this clandestine capa- in recent years, possibly as late as 2003. least 1000 km—well beyond the 150 km range bility was suitable for preserving BW exper- Information obtained since OIF has limit imposed by the UN. Missiles of a 1000 tise, BW capable facilities and continuing km range would have allowed Iraq to threat- R&D—all key elements for maintaining a ca- identified several key areas in which pability for resuming BW production. The Iraq may have engaged in proscribed or en targets throughout the Middle East, in- cluding Ankara, Cairo, and Abu Dhabi. IIS also played a prominent role in spon- undeclared activities since 1991, includ- Clandestine attempts between late 1999 and soring students for overseas graduate studies ing research on a possible VX sta- 2002 to obtain from North Korea technology in the biological sciences, according to Iraqi bilizer, research and development for related to 1,300 km range ballistic missiles— scientists and IIS sources, providing an im- CW-capable munitions, and procure- probably the No Dong—300 km range anti- portant avenue for furthering BW-applicable ment concealment of dual-use mate- ship cruise missiles, and other prohibited research. This was the only area of graduate rials and equipment. military equipment. work that the IIS appeared to sponsor. In addition to the discovery of extensive Officials assert Saddam would have Discussions with Iraqi scientists uncovered resumed nuclear weapons development concealment efforts, we have been faced with a systematic sanitization of documentary agent R&D work that paired overt work with at some future point. Iraq did take and computer evidence in a wide range of of- nonpathogenic organisms serving as surro- steps to preserve some capability from fices, laboratories, and companies suspected gates for prohibited investigation with path- the pre-1991 nuclear weapons program. of WMD work. The pattern of these efforts to ogenic agents. Examples include: B. Detainees and cooperative sources in- erase evidence—hard drives destroyed, spe- Thurengiensis (Bt) with B. anthracis (an- dicate that beginning in 2000, Saddam cific files burned, equipment cleaned of all thrax), and medicinal plants with ricin. In a ordered the development of ballistic traces of use—are ones of deliberate, rather similar vein, two key former BW scientists, than random, acts. For example, confirmed that Iraq under the guise of legiti- missiles with ranges of at least 400 kil- mate activity developed refinements of proc- ometers and up to 1,000 kilometers, and On 10 July 2003 an ISG team exploited the Revolutionary Command Council (RCC) esses and products relevant to BW agents. that measures to conceal these projects Headquarters in Baghdad. The basement of The scientists discussed the development of from UNMOVIC were initiated in late the main building contained an archive of improved, simplified fermentation and spray 2002, ahead of the arrival of inspectors. documents situated on well-organized rows drying capabilities for the simulant Bt that Madam President, I ask unanimous of metal shelving. The basement suffered no would have been directly applicable to an- consent that the Kay report be printed fire damage despite the total destruction of thrax, and one scientist confirmed that the the upper floors from coalition air strikes. production line for Bt could be switched to in the RECORD. It talks about several produce anthrax in one week if the seed revelations of his efforts to obtain bal- Upon arrival the exploitation team encoun- tered small piles of ash where individual doc- stock were available. listic missiles and unmanned air vehi- A very large body of information has been uments or binders of documents were inten- cles. developed through debriefings, site visits, tionally destroyed. Computer hard drives and exploitation of captured Iraqi documents There being no objection, the mate- had been deliberately destroyed. Computers that confirms that Iraq concealed equipment rial was ordered to be printed in the would have had financial value to a random RECORD, as follows: and materials from UN inspectors when they looter; their destruction, rather than re- returned in 2002. One noteworthy example is What have we found and what have we not moval for resale or reuse, indicates a tar- a collection of reference strains that ought found in the first 3 months of our work? geted effort to prevent Coalition forces from to have been declared to the UN. Among We have discovered dozens of WMD-related gaining access to their contents. them was a vial of live C. botulinum Okra B. All IIS laboratories visited by IIS exploi- program activities and significant amounts from which a biological agent can be pro- of equipment that Iraq concealed from the tation teams have been clearly sanitized, in- duced. This discovery—hidden in the home of United Nations during the inspections that cluding removal of much equipment, shred- a BW scientist—illustrates the point I made began in late 2002. The discovery of these de- ding and burning of documents, and even the earlier about the difficulty of locating small liberate concealment efforts have come removal of nameplates from office doors. stocks of material that can be used to cov- Although much of the deliberate destruc- about both through the admissions of Iraqi ertly surge production of deadly weapons. tion and sanitization of documents and scientists and officials concerning informa- The scientist who concealed the vials con- tion they deliberately withheld and through records probably occurred during the height taining this agent has identified a large physical evidence of equipment and activi- of OIF combat operations, indications of sig- cache of agents that he was asked, but re- ties that ISG has discovered that should nificant continuing destruction efforts have fused, to conceal. ISG is actively searching have been declared to the UN. Let me just been found after the end of major combat op- for this second cache. give you a few examples of these conceal- erations, including entry in May 2003 of the Additional information is beginning to cor- ment efforts, some of which I will elaborate locked gated vaults of the Ba’ath party in- roborate reporting since 1996 about human on later: telligence building in Baghdad and highly se- testing activities using chemical and biologi- A clandestine network of laboratories and lective destruction of computer hard drives cal substances, but progress in this area is safehouses within the Iraqi Intelligence and data storage equipment along with the slow given the concern of knowledgeable Service that contained equipment subject to burning of a small number of specific binders Iraqi personnel about their being prosecuted UN monitoring and suitable for continuing that appear to have contained financial and for crimes against humanity. CBW research. intelligence records, and in July 2003 a site We have not yet been able to corroborate A prison laboratory complex, possibly used exploitation team at the Abu Ghurayb Pris- the existence of a mobile BW production ef- in human testing of BW agents, that Iraqi of- on found one pile of the smoldering ashes fort. Investigation into the origin of and in- ficials working to prepare for UN inspections from documents that was still warm to the tended use for the two trailers found in were explicitly ordered not to declare to the touch. northern Iraq in April has yielded a number UN. I would now like to review our efforts in of explanations, including hydrogen, missile Reference strains of biological organisms each of the major lines of enquiry that ISG propellant, and BW production, but technical concealed in a scientist’s home, one of which has pursued during this initial phase of its limitations would prevent any of these proc- can be used to produce biological weapons. work. esses from being ideally suited to these trail- New research on BW-applicable agents, With regard to biological warfare activi- ers. That said, nothing we have discovered Brucella and Congo Crimean Hemorrhagic ties, which has been one of our two initial rules out their potential use in BW produc- Fever (CCHF), and continuing work on ricin areas of focus, ISG teams are uncovering sig- tion. and aflatoxin were not declared to the UN. nificant information—including research and We have made significant progress in iden- Documents and equipment, hidden in sci- development of BW applicable organisms, tifying and locating individuals who were re- entists’ homes, that would have been useful the involvement of Iraqi Intelligence Service portedly involved in a mobile program, and

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.012 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13845 we are confident that we will be able to get Coalition forces. Our efforts to collect and The ISG nuclear team has found indica- an answer to the questions as to whether exploit intelligence on Iraq’s chemical weap- tions that there was interest, beginning in there was a mobile program and whether the ons program have thus far yielded little reli- 2002, in reconstituting a centrifuge enrich- trailers that have been discovered so far able information on post-1991 CW stocks and ment program. Most of this activity centered were part of such a program. CW agent production, although we continue on activities of Dr. Sa’id that caused some of Let me turn now to chemical weapons to receive and follow leads related to such his former colleagues in the pre-1991 nuclear (CW). In searching for retained stocks of stocks. We have multiple reports that Iraq program to suspect that Dr. Sa’id, at least, chemical munitions, ISG has had to contend retained CW munitions made prior to 1991, was considering a restart of the centrifuge with the almost unbelievable scale of Iraq’s possibly including mustard—a long-lasting program. We do not yet fully understand conventional weapons armory, which dwarfs chemical agent—but we have to date been Iraqi intentions, and the evidence does not by orders of magnitude the physical size of unable to locate any such munitions. tie any activity directly to centrifuge re- any conceivable stock of chemical weapons. With regard to Iraq’s nuclear program, the search or development. testimony we have obtained from Iraqi sci- For example, there are approximately 130 Exploitation of additional documents may entists and senior government officials known Iraqi Ammunition Storage Points shed light on the projects and program plans should clear up any doubts about whether (ASP), many of which exceed 50 square miles of Dr. Khalid Ibrahim Sa’id. There may be Saddam still wanted to obtain nuclear weap- in size and hold an estimated 600,000 tons of more projects to be discovered in research ons. They have told ISG that Saddam artillery shells, rockets, aviation bombs and placed at universities and private companies. Husayn remained firmly committed to ac- other ordinance. Of these 130 ASPs, approxi- Iraqi interest in reconstitution of a uranium quiring nuclear weapons. These officials as- mately 120 still remain unexamined. As Iraqi enrichment program needs to be better un- sert that Saddam would have resumed nu- practice was not to mark much of their derstood through the analysis of procure- clear weapons development at some future chemical ordinance and to store it at the ment records and additional interviews. same ASPs that held conventional rounds, point. Some indicated a resumption after the size of the required search effort is enor- Iraq was free of sanctions. At least one sen- With regard to delivery systems, the ISG mous. ior Iraqi official believed that by 2000 Sad- team has discovered sufficient evidence to While searching for retained weapons, ISG dam had run out of patience with waiting for date to conclude that the Iraqi regime was teams have developed multiple sources that sanctions to end and wanted to restart the committed to delivery system improvements indicate that Iraq explored the possibility of nuclear program. The Iraqi Atomic Energy that would have, if OIF had not occurred, CW production in recent years, possibly as Commission (IAEC) beginning around 1999 dramatically breached UN restrictions late as 2003. When Saddam had asked a sen- expanded its laboratories and research ac- placed on Iraq after the 1991 Gulf War. ior military official in either 2001 or 2002 how tivities and increased its overall funding lev- Detainees and co-operative sources indi- long it would take to produce new chemical els. This expansion may have been in initial cate that beginning in 2000 Saddam ordered agent and weapons, he told ISG that after he preparation for renewed nuclear weapons re- the development of ballistic missiles with consulted with CW experts in OMI he re- search, although documentary evidence of ranges of at least 400km and up to 1000km sponded it would take six months for mus- this has not been found, and this is the sub- and that measures to conceal these projects tard. Another senior Iraqi chemical weapons ject of continuing investigation by ISG. from UNMOVIC were initiated in late 2002, expert in responding to a request in mid 2002 Starting around 2000, the senior Iraqi ahead of the arrival of inspectors. Work was from Uday Husayn for CW for the Fedayeen Atomic Energy Commission (IAEC) and also underway for a clustered engine liquid Saddam estimated that it would take two high-level Ba’ath Party official Dr. Khalid propellant missile, and it appears the work months to produce mustard and two years Ibrahim Sa’id began several small and rel- had progressed to a point to support initial for Sarin. atively unsophisticated research initiatives prototype production of some parts and as- We are starting to survey parts of Iraq’s that could be applied to nuclear weapons de- semblies. According to a cooperating senior chemical industry to determine if suitable velopment. These initiatives did not in-and- detainee, Saddam concluded that the pro- equipment and bulk chemicals were avail- of themselves constitute a resumption of the posals from both the liquid-propellant and able for chemical weapons production. We nuclear weapons program, but could have solid-propellant missile design centers would have been struck that two senior Iraqi offi- been useful in developing a weapons-relevant take too long. For instance, the liquid-pro- cials volunteered that if they had been or- science base for the long-term. We do not yet pellant missile project team forecast first dered to resume CW production Iraq would have information indicating whether a high- delivery in six years. Saddam countered in have been willing to use stainless steel sys- er government authority directed Sa’id to 2000 that he wanted the missile designed and tems that would be disposed of after a few initiate this research and, regretfully, Dr. built inside of six months. On the other hand production runs, in place of corrosive-resist- Sa’id was killed on April 8th during the fall several sources contend that Saddam’s range ant equipment which they did not have. of Baghdad when the car he was riding in at- requirements for the missiles grew from 400– We continue to follow leads on Iraq’s ac- tempted to run a Coalition roadblock. 500km in 2000 to 600–1000km in 2002. ISG has quisition of equipment and bulk precursors Despite evidence of Saddam’s continued gathered testimony from missile designers suitable for a CW program. Several possibili- ambition to acquire nuclear weapons, to date at Al Kindi State Company that Iraq has re- ties have emerged and are now being ex- we have not uncovered evidence that Iraq initiated work on converting SA–2 Surface- ploited. One example involves a foreign com- undertook significant post-1998 steps to actu- to-Air Missiles into ballistic missiles with a pany with offices in Baghdad, that imported ally build nuclear weapons or produce fissile range goal of about 250km. Engineering work in the past into Iraq dual-use equipment and material. However, Iraq did take steps to was reportedly underway in early 2003, de- maintained active contracts through 2002. Its preserve some technological capability from spite the presence of UNMOVIC. This pro- Baghdad office was found looted in August the pre-1991 nuclear weapons program. gram was not declared to the UN. ISG is 2003, but we are pursuing other locations and According to documents and testimony of presently seeking additional confirmation associates of the company. Iraqi scientists, some of the key technical and details on this project. A second cooper- Information obtained since OIF has identi- groups from the pre-1991 nuclear weapons ative source has stated that the program ac- fied several key areas in which Iraq may program remained largely intact, performing tually began in 2001, but that it received have engaged in proscribed or undeclared ac- work on nuclear-relevant dual-use tech- added impetus in the run-up to OIF, and that tivity since 1991, including research on a pos- nologies within the Military Industrial Com- missiles from this project were transferred sible VX stabilizer, research and develop- mission (MIC). Some scientists from the pre- to a facility north of Baghdad. This source ment for CW-capable munitions, and pro- 1991 nuclear weapons program have told ISG also provided documentary evidence of in- curement/concealment of dual-use materials that they believed that these working groups structions to convert SA–2s into surface-to- and equipment. were preserved in order to allow a recon- surface missiles. Multiple sources with varied access and re- stitution of the nuclear weapons program, ISG has obtained testimony from both de- liability have told ISG that Iraq did not have but none of the scientists could produce offi- tainees and cooperative sources that indicate a large, ongoing, centrally controlled CW cial orders or plans to support their belief. program after 1991. Information found to In some cases, these groups performed that proscribed-range solid-propellant mis- date suggests that Iraq’s large-scale capa- work which could help preserve the science sile design studies were initiated, or already bility to develop, produce, and fill new CW base and core skills that would be needed for underway, at the time when work on the munitions was reduced—if not entirely de- any future fissile material production or nu- clustered liquid-propellant missile designs stroyed—during Operations Desert Storm clear weapons development. began. The motor diameter was to be 800 to and Desert Fox, 13 years of UN sanctions and Several scientists—at the direction of sen- 1000mm, i.e. much greater than the 500-mm UN inspections. We are carefully examining ior Iraqi government officials—preserved Ababil–100. The range goals cited for this dual-use, commercial chemical facilities to documents and equipment from their pre– system vary from over 400km up to 1000km, determine whether these were used or 1991 nuclear weapon-related research and did depending on the source and the payload planned as alternative production sites. not reveal this to the UN/IAEA. One Iraqi mass. We have also acquired information related scientist recently stated in an interview A cooperative source, involved in the 2001– to Iraq’s CW doctrine and Iraq’s war plans with ISG that it was a ‘‘common under- 2002 deliberations on the long-range solid for OIF, but we have not yet found evidence standing’’ among the scientists that mate- propellant project, provided ISG with a set of to confirm pre-war reporting that Iraqi mili- rial was being preserved for reconstitution of concept designs for a launcher designed to tary units were prepared to use CW against nuclear weapons-related work. accommodate a 1m diameter by 9m length

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.031 S04PT1 S13846 CONGRESSIONAL RECORD — SENATE November 4, 2003 missile. The limited detail in the drawings lance and use as decoys are uses mentioned Iraq’s liquid propellant ballistic missile suggest there was some way to go before by some of those interviewed. Given Iraq’s RDT&E and production infrastructure. They launcher fabrication. The source believes interest before the Gulf War in attempting worked in Baghdad for about three months that these drawings would not have been re- to convert a MIG–21 into an unmanned aerial in late 1998 and subsequently continued work quested until the missile progress was rel- vehicle to carry spray tanks capable of dis- on the project from abroad. An actual con- atively advanced, normally beyond the de- pensing chemical or biological agents, atten- tract valued at $10 million for machinery and sign state. The drawings are in CAD format, tion is being paid to whether any of the equipment was signed in June 2001, initially with files dated 09/01/02. newer generation of UAVs were intended to for 18 months, but later extended. This co- While we have obtained enough informa- have a similar purpose. This remains an open operation continued right up until the war. tion to make us confident that this design question. A different group of foreign experts trav- effort was underway, we are not yet con- ISG has discovered evidence of two pri- eled to Iraq in 1999 to conduct a technical re- fident which accounts of the timeline and mary cruise missile programs. The first ap- view that resulted in what became the Al project progress are accurate and are now pears to have been successfully imple- Samoud 2 design, and a contract was signed seeking to better understand this program mented, whereas the second had not yet in 2001 for the provision of rigs, fixtures and and its actual progress at the time of OIF. reached maturity at the time of OIF. control equipment for the redesigned mis- One cooperative source has said that he The first involved upgrades to the HY–2 sile. suspected that the new large-diameter solid- coastal-defense cruise missile. ISG has devel- Detainees and cooperative sources have de- propellant missile was intended to have a oped multiple sources of testimony, which is scribed the role of a foreign expert in nego- CW-filled warhead, but no detainee has ad- corroborated in part by a captured docu- tiations on the development of Iraq’s liquid mitted any actual knowledge of plans for un- ment, that Iraq undertook a program aimed and solid propellant production infrastruc- conventional warheads for any current or at increasing the HY–2’s range and permit- ture. This could have had applications in ex- planned ballistic missile. The suspicion ex- ting its use as a land-attack missile. These isting and planned longer range systems, al- pressed by the one source about a CW war- efforts extended the HY–2’s range from its though it is reported that nothing had actu- head was based on his assessment of the un- original 100km to 150–180km. Ten modified ally been implemented before OIF. availability of nuclear warheads and poten- missiles were delivered to the military prior Uncertainty remains about the full extent tial survivability problems of biological war- to OIF and two of these were fired from of foreign assistance to Iraq’s planned expan- fare agent in ballistic missile warheads. This Umm Qasr during OIF—one was shot down sion of its missile systems and work is con- is an area of great interest and we are seek- and one hit Kuwait. The second program, tinuing to gain a full resolution of this issue. ing additional information on warhead de- called the Jenin, was a much more ambitious However, there is little doubt from the evi- signs. effort to convert the HY–2 into a 1000km dence already gathered that there was sub- While I have spoken so far of planned mis- range land-attack cruise missile. The Jenin stantial illegal procurement for all aspects sile systems, one high-level detainee has re- concept was presented to Saddam on 23 No- of the missile programs. cently claimed that Iraq retained a small vember 2001 and received what cooperative I have covered a lot of ground today, much quantity of Scud-variant missiles until at sources called an ‘‘unusually quick re- of it highly technical. Although we are re- least 2001, although he subsequently re- sponse’’ in little more than a week. The es- sisting drawing conclusions in this first in- canted these claims, work continues to de- sence of the concept was to take an HY–2, terim report, a number of things have be- termine the truth. Two other sources con- strip it of its liquid rocket engine, and put in come clearer already as a result of our inves- tend that Iraq continued to produce until its place a turbine engine from a Russian tigation, among them: 2001 liquid fuel and oxidizer specific to Scud- helicopter—the TV–2–117 or TV3–117 from a 1. Saddam, at least as judged by those sci- type systems. The cooperating source claims Mi–8 or Mi–17 helicopter. To prevent dis- entists and other insiders who worked in his that the al Tariq Factory was used to manu- covery by the UN, Iraq halted engine devel- military-industrial programs, had not given facture Scud oxidizer (IRFNA) from 1996 to opment and testing and disassembled the up his aspirations and intentions to continue 2001, and that nitrogen tetroxide, a chief in- test stand in late 2002 before the design cri- to acquire weapons of mass destruction. gredient of IRFNA was collected from a teria had been met. Even those senior officials we have inter- In addition to the activities detailed here bleed port on the production equipment, was viewed who claim no direct knowledge of any on Iraq’s attempts to develop delivery sys- reserved, and then mixed with highly con- on-going prohibited activities readily ac- tems beyond the permitted UN 150km, ISG centrated nitric acid plus an inhibitor to knowledge that Saddam intended to resume has also developed information on Iraqi at- produce Scud oxidizer. Iraq never declared these programs whenever the external re- tempts to purchase proscribed missiles and its pre-Gulf War capability to manufacture strictions were removed. Several of these of- missile technology. Documents found by ISG Scud IRFNA out of fear, multiple sources ficials acknowledge receiving inquiries since have stated, that the al Tariq Factory would describe a high level dialogue between Iraq and North Korea that began in December 2000 from Saddam or his sons about how long be destroyed, leaving Baghdad without the it would take to either restart CW produc- ability to produce highly concentrated nitric 1999 and included an October 2000 meeting in Baghdad. These documents indicate Iraqi in- tion or make available chemical weapons. acid, explosives and munitions. To date we 2. In the delivery systems area there were terest in the transfer of technology for sur- have not discovered documentary or mate- already well advanced, but undeclared, on- face-to-surface missiles with a range of rial evidence to corroborate these claims, going activities that, if OIF had not inter- 1300km (probably No Dong) and land-to-sea but continued efforts are underway to clarify vened, would have resulted in the production and confirm this information with additional missiles with a range of 300km. The docu- ment quotes the North Koreans as under- of missiles with ranges at least up to 1000 Iraqi sources and to locate corroborating km, well in excess of the UN permitted range physical evidence. If we can confirm that the standing the limitations imposed by the UN, but being prepared ‘‘to cooperate with Iraq of 150 km. These missile activities were sup- fuel was produced as late as 2001, and given ported by a serious clandestine procurement that Scud fuel can only be used in Scud-vari- on the items it specified’’. At the time of OIF, these discussions had not led to any program about which we have much still to ant missiles, we will have strong evidence learn. that the missiles must have been retained missiles being transferred to Iraq. A high level cooperating source has reported that in 3. In the chemical and biological weapons until that date. This would, of course, be yet late 2002 at Saddam’s behest a delegation of area we have confidence that there were at a another example of a failure to declare pro- Iraqi officials was sent to meet with foreign minimum clandestine on-going research and hibited activities to the UN. export companies, including one that dealt development activities that were embedded Iraq was continuing to develop a variety of in the Iraqi Intelligence Service. While we UAV platforms and maintained two UAV with missiles. Iraq was interested in buying an advanced ballistic missile with 270km and have much yet to learn about the exact work programs that were working in parallel, one programs and capabilities of these activities, at Ibn Fernas and one at al-Rashid Air Force 500km ranges. The ISG has also identified a large volume it is already apparent that these undeclared Base. Ibn Fernas worked on the development of material and testimony by cooperating activities would have at a minimum facili- of smaller, more traditional types of UAVs Iraq officials on Iraq’s effort to illicitly pro- tated chemical and biological weapons ac- in addition to the conversion of manned air- cure parts and foreign assistance for its mis- tivities and provided a technically trained craft into UAVs. This program was not de- sile program. These include: cadre. clared to the UN until the 2002 CAFCD in Significant level of assistance from a for- Let me conclude by returning to some- which Iraq declared the RPV–20, RPV–30 and eign company and its network of affiliates in thing I began with today. We face a unique Pigeon RPV systems to the UN. All these supplying and supporting the development of but challenging opportunity in our efforts to systems had declared ranges of less than production capabilities for solid rocket pro- unravel the exact status of Iraq’s WMD pro- 150km. Several Iraqi officials stated that the pellant and dual-use chemicals. gram. The good news is that we do not have RPV–20 flew over 500km on autopilot in 2002, Entities from another foreign country were to rely for the first time in over a decade on contradicting Iraq’s declaration on the sys- involved in supplying guidance and control the incomplete, and often false, data that tem’s range. The al-Rashid group was devel- systems for use in the Al-Fat’h (Ababil–100). Iraq supplied the UN/IAEA; oping a competing line of UAVs. This pro- The contract was incomplete by the time of Data collected by UN inspectors operating gram was never fully declared to the UN and OIF due to technical problems with the few with the severe constraints that Iraqi secu- is the subject of on-going work by ISG. Addi- systems delivered and a financial dispute. rity and deception actions imposed; tional work is also focusing on the payloads A group of foreign experts operating in a Information supplied by defectors, some of and intended use for these UAVs. Surveil- private capacity were helping to develop whom certainly fabricated much that they

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.034 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13847 supplied and perhaps were under the direct Today, on the good-news side, there fact, the team’s frustration with the pace of control of the IIS; are close to 100,000 Iraqis who are as- the work is what led President Bush to shift Data collected by national technical col- suming control of essential civil re- the responsibility for the WMD search to the lections systems with their own limitations. sponsibilities such as border police, director of central intelligence and to send The bad news is that we have to do this me to Baghdad. under conditions that ensure that our work civil defense, police facilities protec- One would believe from what Gellman will take time and impose serious physical tion, and as soldiers. With each passing writes that I have sent home the two leaders dangers on those who are asked to carry it day, more and more Iraqis are taking of my nuclear team, William Domke and Jef- out. Why should we take the time and run the lead in security and in protecting frey Bedell, and abandoned all attempts to the risk to ensure that our conclusions re- Iraq. Over 85 percent of Iraq is rel- determine the state of Iraq’s nuclear activi- flect the truth to the maximum extent that atively stable, with the exception of ties. Wrong again, Domke’s assignment had is possible given the conditions in post-con- been twice extended well beyond what the flict Iraq? For those of us that are carrying the troubled Sunni Triangle. It is no surprise the Sunni Baathists Department of Energy had agreed to. He and out this search, there are two reasons that Bedell were replaced with a much larger con- drive us to want to complete this effort. are putting up the most resistance, for tingent of experts from DOE’s National Labs. First, whatever we find will probably differ they have the most to lose. We have Finally, with regard to the aluminum from pre-war intelligence. Empirical reality seen recently declassified reports of tubes, the tubes were certainly being im- on the ground is, and has always been, dif- the Iraqi-sponsored torture, which are ported and were being used for rockets. The ferent from intelligence judgments that too disturbing even to watch. We found question that continues to occupy us is must be made under serious constraints of mass graves. We know Saddam con- whether similar tubes, with higher specifica- time, distance and information. It is, how- tions, had other uses, specifically in nuclear ever, only by understanding precisely what ducted mass chemical attacks against his own people and launched chemical centrifuges. Why anyone would think that those difference are that the quality of fu- we should want to confiscate the thousands ture intelligence and investment decisions attacks against Iran. of aluminum tubes of the lower specification concerning future intelligence systems can I believe the President was correct is unclear. Our investigation is focused on be improved. Proliferation of weapons of when he said we must take on the war whether a nuclear centrifuge program was mass destruction is such a continuing threat on terrorism, which would take years, either underway or in the planning stages, to global society that learning those lessons not months. This is a global conflict what design and components were being con- has a high imperative. against terrorism. The will of the templated or used in such a program if it ex- Second, we have found people, technical in- isted and the reason for the constant raising formation and illicit procurement networks American people is being tested. We cannot flinch. If we do not pursue ter- of the specifications of the tubes the Iraqis that if allowed to flow to other countries and were importing clandestinely. regions could accelerate global proliferation. rorists where they live now, then we We have much work left to do before any Even in the area of actual weapons there is will continue to invite more attacks conclusions can be reached on the state of no doubt that Iraq had at one time chemical any time U.S. interests collide with the possible Iraqi nuclear weapons program ef- and biological weapons. Even if there were interests of terrorists. forts. Your story gives the false impression only a remote possibility that these pre-1991 EXHIBIT 1 that conclusions can already be drawn. weapons still exist, we have an obligation to The Oct. 26 front-page article ‘‘Search in American troops who are now there and the When Barton Gellman interviewed me last Iraq Fails to Find Nuclear Threat’’ is wildly Iraqi population to ensure that none of these month I stressed on a number of occasions off the mark. Your reporter, Barton remain to be used against them in the ongo- that my remarks related to Iraqi’s conven- Gellman, bases much of his analysis on what ing insurgency activity. tional weapons program. I am responsible for he says was told to him by an Australian Mr. Chairman and Members I appreciate aspects of that program as the commander of brigadier, Stephen D. Meekin. Gellman de- this opportunity to share with you the ini- the coalition Joint Captured Materiel Ex- scribes Meekin as someone ‘‘who commands tial results of the first 3 months of the ac- ploitation Center. I did not provide assess- the Joint Captured Materiel Exploitation tivities of the Iraqi Survey Group. I am cer- ments or views on Iraq’s nuclear program or Center, the largest of a half-dozen units that tain that I speak for Major General Keith the status of investigations being conducted report to [David] Kay.’’ Dayton, who commands the Iraqi Survey by the Iraq Survey Group. Meekin does not report, nor has he ever re- Group, when I say how proud we are of the On the issue of Iraq’s use of aluminum ported, to me in any individual capacity or men and women from across the Government tubes, I did confirm, in response to a ques- as commander of the exploitation center. and from our Coalition partners, Australia tion by Gellman, that aluminum tubes form The work of the center did not form a part of and the United Kingdom, who have gone to the body of Iraqi 81mm battlefield rockets my first interim report, which was delivered Iraq and are carrying out this important and that my teams had recovered some of last month, nor do I direct what Meekin’s or- mission. these rockets for technical examination. ganization does. The center’s mission has Thank you. Further, I stated that the empty tubes were never involved weapons of mass destruction, Mr. BOND. We are engaged in a mon- innocuous in view of the large quantities of nor does it have any WMD expertise. lethal Iraqi conventional weapons such as umental fight against terrorism and Gellman’s description of information pro- small arms, explosive ordnance and man- tyranny on a global scale, one in which vided by Mahdi Obeidi, chief of Iraq’s pre- portable air defense systems in this country. all freedom-loving people have a stake. 1991 centrifuge program, relies on an I did not make any judgment on the suit- Other free countries ought to realize unnamed ‘‘U.S. official’’ who, by the report- ability of the 81mm aluminum tubes as com- er’s own admission, read only one reporting this is a battle in which we all have a ponents in a nuclear program. cable. How Gellman’s source was able to de- stake. The Middle East region has long In discussing the disbanding of the Joint scribe reporting that covered four months is been marked by instability and marred Captured Materiel Exploitation Center, I a mystery to me. Furthermore, the source by war, the threat of war and torture, told your reporter that the center’s work mischaracterized our views on the reliability was largely complete, and I made clear that terrorism, and ruthless dictators. Sad- of Obeidi’s information. its role was in the realm of Iraq’s conven- dam Hussein was at the heart of it. On With regard to Obeidi’s move to the United tional weapons and technologies. September 11 we lost close to 3,000 citi- States, Gellman writes, ‘‘By summer’s end, Gellman attributed to me comments about under unknown circumstances, Obeidi re- zens when foreign terrorists attacked the effect of U.N.-imposed sanctions. Again, ceived permission to bring his family to an innocent civilians. It is a miracle we I referred to Iraqi efforts to acquire conven- East Coast suburb in the United States.’’ The did not lose more. But we are now tional military equipment. I made no assess- reader is left with the impression that this fighting that battle against terrorism ment about the effect of U.N. sanctions on move involved something manipulative or Iraq’s nuclear program. in Baghdad, not in Boston or Boise or sinister. The ‘‘unknown circumstances’’ are Baldwin, MO. called Public Law 110. This mechanism was Mr. CRAIG. Madam President, I will As I said earlier, some argue that created during the Cold War to give the di- claim no more than 5 minutes of the Saddam has not been linked to ter- rector of central intelligence the authority time of the Senator from Texas. rorism. Well, what David Kay has al- to resettle those who help provide valuable The PRESIDING OFFICER. Without ready described puts the lie to that. intelligence information. Nothing unusual or objection, it is so ordered. mysterious here. Also, tell that to the thousands of f Israeli families who have lost innocent When the article moves to describe the ac- relatives at the hands of Hamas suicide tual work of the nuclear team, Gellman HEALTHY FORESTS CONFERENCE states that ‘’frustrated members of the nu- bombers whose families received $25,000 clear search team by late spring began call- Mr. CRAIG. I come to the floor this from the Iraqi dictator for each suc- ing themselves the ‘book of the month club.’ morning a bit frustrated and maybe cessful attack on innocent men, ‘‘But he fails to note that this was before the with a good reason to be angry at some women, and children. establishment of the Iraq Survey Group. In of our colleagues for what now appears

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.037 S04PT1 S13848 CONGRESSIONAL RECORD — SENATE November 4, 2003 to be a general intended deceit of the the cataclysmic fires in California forward while the appointment of con- American people. I hope that is not the somehow have not changed anybody’s ferees is being filibustered. case and I certainly will take back mind; they have not changed or are not While efforts to solve this critical those words if it is not. But actions are going to allow public policy to change; legislation may seem illogical or even occurring behind the scenes as I speak that behind the scenes there is now a callous in the face of the disaster we that suggest I am not inaccurate. silent, invisible filibuster on the part have witnessed in California on the What am I talking about? This past of Democratic leadership that will not nightly news, mind you, what is simply week the Senate was consumed in de- allow this bipartisan bill to go to con- unbelievable is that the legislation to bating a bill about healthy forests and ference because, if it doesn’t go to con- prevent catastrophic fires such as these trying to develop some degree of active ference and the House and the Senate was filibustered just over a year ago. management on our public forest lands can’t work out their differences, it will Last year when the risk of catastrophic to reduce the overall fuel load that was not become law. If it is not law, we forest fires was clear and immediate and has been feeding the fires on our cannot begin to deal with the 20 mil- and action was needed, there was an ef- forested lands. Of course, last week, lion acres of urban/wildland interface fort to block even the consideration of while we were debating here on the that are addressed within this legisla- amendments to the Interior appropria- floor, America’s attention was riveted tion so that we will thin and clean and tions bill that would have reduced the in California where people were dying, make them less susceptible to fire. sort of hazardous fuels that have set homes were burning, and tens of thou- What is the picture here? Am I get- ablaze southern California. We knew sands, hundreds of thousands of acres ting this wrong? Is this scenario I have this was a problem last year. We knew were being consumed. Probably that on this picture now replaying itself? it needed to be addressed. But time and was the worst wildfire this country has The fires are out in California, or at time again we have been prevented seen in several decades. least we hope they are nearly out. But from moving forward. That was then What happened last Thursday after a they will come again. Here is the rea- and this is now. Now that 22 lives have very full and robust debate on a bipar- son they will come again. Here is a been lost, 800,000 acres have been tisan bill that had been crafted in the map of the United States. All these red burned, and 3,400 homes have been de- Agriculture Committee and then re- areas—— stroyed, you would expect Congress crafted between the Senator from Cali- The PRESIDING OFFICER. The time might have gotten the message to get fornia, a Democrat, the Senator from of the Senator has expired. the lead out and get the job done. But Oregon, a Democrat, myself, a Repub- Mr. CRAIG. I ask for 1 additional some in the Senate just do not get it. lican, and a variety of others to build a minute. As the Senator from Idaho pointed bipartisan alternative approach to this The PRESIDING OFFICER. Without out, the American people have a right problem? We debated that bill and we objection, it is so ordered. to basic safety and security, which this passed it by a vote of 80 to 14. That Mr. CRAIG. The red on this map bill provides. After all we have seen, would demonstrate to the American demonstrates not 20 million acres but they have the right to ask: Why in the people that those who opposed us in 90 million acres of class 3 lands that world is this bill being delayed by 1 the past somehow had gotten the mes- are dead and dying and phenomenally second? We saw this bill move at light- sage. Somehow there was an awak- susceptible to fire. See right down here ning speed by a huge majority last ening here in the Senate that there was in southern California where the fires week. Now it is stalled and likely to truly a need to resolve the issue of for- burn, that red land that was looked at fail in this session of Congress. est health. in 2000, which we said was going to How many acres must incinerate, The poster I have just put up was burn? It burned: 3,400 homes, 20 lives, how many homes must burn, and how used last week. It says: ‘‘California billions of dollars worth of assets. Now many lives must be lost before we Burns, Democrat Filibuster Con- a silent filibuster on the part of Demo- move forward on the Healthy Forests tinues.’’ cratic leadership says we will not allow conference? That filibuster was broken. There the bill to go forward? I hope I am During the last year, 27 firefighters was a rousing debate and an 80-to-14 wrong. I was not wrong yesterday. I un- lost their lives fighting blazes such as vote. The Healthy Forests initiative derstand they are still blocking a those this bill intends to diminish. passed, an initiative I had worked on unanimous consent request to appoint Would it be today that my friends in for a good number of years as chairman conferees so the House and the Senate the Senate will move forward to ap- of the Forestry Subcommittee. The can work out their differences, so we point conferees and finally pass this President of the United States, stand- can get at the business of being the much-needed legislation into law or ing in ashes in the forests of California good stewards of our public lands the will the Senate, like Nero, fiddle while or Oregon the summer before last, de- public wants us to be and somehow, the Nation burns? clared this country had to get busy at some way, treat our lands and deny I yield the floor. being better stewards of their public wildfire to other areas of the country. f lands or we were going to continue to The PRESIDING OFFICER. The Sen- CONCLUSION OF MORNING see catastrophic wildfires. ator from Kentucky. BUSINESS All of that finally came together last Mr. MCCONNELL. Madam President, week. Now, on the morning news, we how much time remains? The PRESIDING OFFICER. Morning see a caravan of mourning firefighters The PRESIDING OFFICER. Three business is closed. as they lay to rest one of the fire- minutes. f Mr. MCCONNELL. Madam President, fighters who was killed in those cata- NATIONAL CONSUMER CREDIT RE- the Senator from Idaho is entirely cor- clysmic fires of last week in southern PORTING SYSTEM IMPROVE- rect. What is going on here is a fili- California. While there are those lay- MENT ACT OF 2003 ing to rest over 20 people killed in buster over naming of conferees. As a those fires, and while the Senate last part of the normal legislative process, The PRESIDING OFFICER. Under Thursday, on an 80-to-14 vote, passed you send Members to a conference with the previous order, the Senate will pro- out a Healthy Forests initiative, now, the House to resolve the differences. In ceed to consideration of S. 1753, which quietly, behind the scene, the Demo- effect, a Healthy Forests bill is now the clerk will report. crat leaders are saying: No more. We being filibustered without the naming The assistant legislative clerk read will not allow the bill to move any fur- of conferees. The differences between as follows: ther. We will not allow the bill that the Senate and the House cannot be re- A bill (S. 1753) to amend the Fair Credit passed by a bipartisan vote to go to solved. Unless conferees are named, the Reporting Act in order to prevent identity 80-to-14 vote we had here in the Senate theft, to improve the use of and consumer conference with the House to work out access to consumer reports, to enhance the our differences, to actually make it just last week is meaningless, abso- accuracy of consumer reports, to limit the law. lutely meaningless. No legislation to sharing of certain consumer information, to Do you understand what I am saying? protect our forests, our people, our improve financial education and literacy, I am saying the debate last week and firefighters, and our homes can move and for other purposes.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.014 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13849 The PRESIDING OFFICER. The Sen- cret meetings, they bring the con- his patience while we finished this lit- ator from Nevada. ference report and say take it or leave tle scrum on the floor today. HEALTHY FORESTS it. That is the wrong way to do things. I look forward to this most impor- Mr. REID. Madam President, I see That is what this is all about. We tant piece of legislation. This is the chairman of the committee is here. want the Healthy Forests initiative to brought to the floor on a bipartisan I will speak for a minute while he is pass. We wanted it to pass yesterday— basis. We have spent time speaking getting affairs in order to respond not tomorrow but yesterday. It is an with the Senator from Alabama at briefly to the Senator from Kentucky important piece of legislation. That is some length in getting the bill here, about the Healthy Forests initiative. indicated by the vote that came out of dealing with the same problem we are The statement has been made that the Senate. having in the conferences. hundreds of thousands of acres have Therefore, take what we passed, send I wish that all Senators had the sense burned in the last few years. But we it to the House, and if they don’t like of what legislation is all about as does have had millions of acres burned. We it, they can send it back with amend- the Senator from Alabama. He, in my understand what it means to have ments. mind, is truly a legislator. I have en- wildfires. As a neighbor to California, Mr. CRAIG. Madam President, will joyed working with him in the House Nevada sent 500 firefighters and dozens the Senator yield for a question? and in the Senate. There is no question of pieces of equipment to help fight the Mr. REID. I am happy to yield to my that this bill is here as a result of his fires in California. We in Nevada under- friend from Idaho. reaching out to the Democrats on the stand what fires are all about. I think Mr. CRAIG. Is it not true what I said committee. They have told me that. most everyone in the country under- on the floor, that you are objecting to There are Democratic amendments in stands how devastating these fires have appointing conferees to the Healthy the mark now before the Senate. On be- been. But for anyone to come to the Forests initiative so it can go to con- half of those in the minority, through floor and suggest we are fiddling while ference between the House and Senate? the Chair, we express our appreciation Rome burns, that is simply untrue. Is that not true? to the Senator from Alabama, the Here is what we are concerned about. Mr. REID. Yes. It is absolutely true. chairman of the Banking Committee. We have a situation where we have That is the point I tried to make last The PRESIDING OFFICER (Mr. been eliminated from the conference night dealing with the CARE Act and ENZI). The Senator from Alabama. process. Remember that the Senate is today. I apologize; I was in a meeting AMENDMENT NO. 2053 49 to 51. It is not as if there is a huge with Senator DASCHLE and I was unable Mr. SHELBY. Mr. President, I send a majority. We have been eliminated to listen to your speech. But the an- substitute amendment to the desk and from conferences. People are saying, swer is absolutely yes. That is the ask for its immediate consideration. Isn’t it nice that the Medicare con- point I was making. The PRESIDING OFFICER. The ference is allowing two Democrats in Mr. CRAIG. The point is the bill is clerk will report. on the conference. But for any other not moving because your side is object- The assistant legislative clerk read Democrats to come, the conference is ing to what is a normal process here in as follows: closed. For most conferences, we don’t the conference. The Senator from Alabama [Mr. SHELBY] have anybody. Mr. REID. No. I say to my friend the proposes an amendment numbered 2053. What we have suggested on this bill bill is not moving because the majority (The amendment is printed in today’s and on the CARE Act and a number of has decided to harp on the fact that RECORD under ‘‘Text of Amendments.’’) other matters is that we go ahead and there is not a conference named—— Mr. SHELBY. It is our intention to send what has been passed in the Sen- Mr. CRAIG. I guess my point is made. adopt the substitute and ask it be ate to the House. If the House doesn’t Mr. REID. Please. I have the floor. treated as original text but we will like it, they can send it back with The fact of the matter is conferences wait for the other side before we adopt amendments. We have done that many have been held around here. What I am the amendment. times. This is not an unusual proce- saying is the majority has a choice. If Mr. President, I am pleased to bring dure. We need only look at what we did they want the healthy initiative bill— before the Senate S. 1753, the National last night with the Fallen Patriots Tax which we badly want—then I think Consumer Credit System Improvement Relief Act. That is how that happened. what we should do is take what has Act of 2003. This bill was unanimously There was no big cry of concern about been passed and send it to the House. If approved by the Senate Banking Com- that. they don’t like it, let them bring it mittee on September 23 of this year by We haven’t had the opportunity to do back with amendments. a voice vote. complete research. H.R. 1584, the Clean There are two ways of doing it. One The Fair Credit Reporting Act, is a Diamond Trade Act; H.R. 1298, AIDS way is the way the Senator from Idaho very important, highly complex law Assistance Bill; H.R. 733, McLaughlin suggests. The conferees could be ap- that governs crucial aspects of the con- House National Historic Site Act; H.R. pointed and take it over to the House, sumer credit system. This national sys- 13, Museum Library Services Act; H.R. and we meet someplace else. That is tem is huge—involving trillions of dol- 3146, TANF Extension; and H.R. 659, the normal way. lars and millions of people, and is at Mortgage Insurance Act—these are just Frankly, since we have lost control the heart of the economic well being of a few of the pieces of legislation we of the majority, we haven’t held con- this country. The bipartisan bill before have handled in this manner. ferences. I have talked about that at the Senate is the product of extensive If the majority wants this act to some length on previous occasions. I hearings and deliberations by the Sen- pass—and I am sure they do—the best touched on it briefly here today. ate Banking Committee. Over the thing to do would be to take what has We want a bill passed. course of the past 5 months, the Bank- taken place here in the Senate and The Senator from Idaho is absolutely ing Committee held six hearings re- send it across the hall to the House. If right. The Democratic leader, in rep- lated to the reauthorization of the there is something they do not like resenting the Democratic caucus, has seven expiring FCRA national stand- about it, send it back to us with an said let us not do a conference because ards as well as the effectiveness and ef- amendment. It happens all the time. It it is meaningless, anyway. Let us take ficacy of the FCRA as a whole. is not unusual. In fact, in years past our bill we have passed and work on it. The committee’s process helped us that is how it was done. Conferences We had a big vote here. Send it to the identify key areas that required reform were not used as much as they are used House, and they can come within a or improvement, while at the same now. matter of hours with something they time, reinforcing the importance of our The way we have been treated with don’t like about it, and we will be national credit reporting system to the conferences, they are going to have a happy to review that when it comes operation of our financial markets and lot less because you can’t have con- back in a matter of hours. economy as a whole. The committee ferences where there is no conference. Mr. CRAIG. I thank the Senator. bill incorporates many important re- Basically, the majority meets in se- Mr. REID. I want to tell my friend forms while creating permanent na- cret, and when they complete their se- from Alabama how much I appreciate tional standards. This bill reflects a

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.017 S04PT1 S13850 CONGRESSIONAL RECORD — SENATE November 4, 2003 careful balance between ensuring the Commission to develop guidelines and notice when, because of information efficient operation of our markets and regulations to identify and prevent contained in a consumer’s credit re- protecting the rights of consumers. identity theft; port, the creditor makes a counter Over the 6 years since the FCRA was The bill mandates the inclusion of offer to the consumer on terms that last amended, significant changes have fraud alerts in credit files, to notify are materially less favorable than the occurred in our credit markets. There users of credit reports that a consumer most favorable terms available to a are now participants, new technologies, could be a victim of identity theft; substantial portion of consumers. new underwriting practices, and new The bill will restrict the amount of These notices will make consumers products. Indeed, there is more that information available to identity aware of the need to check their re- has changed than has remained the thieves, by requiring the truncation of ports to ensure their accuracy. The same in the operation of the credit credit and debit card account numbers need for ensuring the greatest possible markets since the last time Congress on electronically printed receipts; and accuracy in credit information does considered the FCRA. These changes S. 1753 increases the punishment of not end with these new notices. For ex- have been largely positive. They have identity theft crimes. ample, in large credit transactions, expanded access to credit to more S. 1753 also provides victims of iden- such as mortgages, rate differences, as Americans and permitted loan approv- tity theft with meaningful assistance the Presiding Officer knows, can trans- als in hours rather than weeks. something they do not really have late into hundreds of thousands of dol- However, these new developments today: lars over the course of a loan. Even in have had some unintended con- The bill requires the FTC to prepare smaller dollar credit transactions, such sequences. a summary of rights of identity theft as credit cards, rate differences can Identity theft. As our economy has victims; mean large amounts of money. grown more automated, more elec- S. 1753 establishes procedures to With the practice of credit card com- tronic transactions occur without the block the reporting of and the refur- panies reviewing credit reports and ad- lender and borrower ever meeting face nishing of identity theft-related activi- justing rates in real time becoming to face. As a result, the transfer of in- ties; and it requires the national credit more prevalent, the application of risk- formation has become much more per- reporting agencies to coordinate and based pricing to consumer finances is vasive, and a new crime has emerged share identity theft complaints. practically an everyday event. that takes advantage of this flow of in- Another aspect of this bill is accu- Credit reporting information is in- formation. This crime is called iden- racy. The committee also focused its creasingly used as the key determinant tity theft, and the incidence of this attention on how best to ensure the ac- of the cost of credit or insurance. With crime has grown geometrically in re- curacy of credit information. Accurate the rewards for good credit so meaning- cent years. credit reports are absolutely crucial to ful in this country, and the penalties Identity theft involves a person using the efficient operation of our credit for bad credit so costly, it is more crit- someone else’s personal information market. Indeed, the changing nature of ical than ever before that credit re- without their knowledge to commit our credit markets has made accuracy ports accurately portray consumers’ fraud or theft. Practically speaking, more important than ever. Credit re- credit histories. the crime involves misappropriation of port information is increasingly used The committee bill addresses this in such personal information as a victim’s as the key determinant of the cost of several ways. One, the bill provides name, date of birth, and social security credit and insurance in this country. consumers the right to obtain a free number. Identity thieves then use this In addition, technology has per- copy of their credit report annually information to open new credit card ac- mitted lenders to use credit informa- through a centralized system and re- counts, to divert current accounts from tion to more precisely assess risks quest of their credit scores or informa- victims to themselves, and to open posed by borrowers. Gone are the day tion about credit scores in certain cir- bank accounts in victims’ names, when lenders merely stamped loans as cumstances. This is a big change. among other things. The bad charges ‘‘approved’’ or ‘‘not approved.’’ Today, S. 1753 directs the Federal banking and the hot checks usually happen the lenders employing credit history regulators, the National Credit Union while the victims, banks, credit card data, use mathematical models to ana- Administration, and the Federal Trade companies and other firms are unaware lyze credit risk and create risk-based Commission to develop guidelines to that something is amiss. prices for credit cards, mortgages and ensure greater accuracy and complete- In the wake of unauthorized activity other products. Use of risk-based pric- ness of information in credit reports. and skipped payments, the creditor ing allows lenders to extend credit to a Furthermore, it directs the Federal usually takes action and ultimately broader range of borrowers on credit Trade Commission and the Federal Re- cuts the thief off. At this point, the terms, which match the credit risk serve to conduct ongoing studies on the creditor’s losses are curtailed, but the they pose. Additionally, its use results accuracy of consumer reports and the nightmare is just beginning for the ul- in very few credit applicants being re- resolution of consumer complaints. timate victim of identity theft—the in- jected. Again this is a very positive de- Privacy protections are addressed in dividual whose identity the thief as- velopment, but not one without a cost. this bill. S. 1753, the bill before us, con- sumed. In most instances, the victims Currently, credit applicants who are tains a number of important new pri- first become aware of the fact that rejected received adverse action no- vacy protections for consumers. The they have been targeted when the cred- tices and access to a free credit re- committee-designed protections are itor seeks payment. It is also when ports. This allows such consumers to based on our extensive deliberations they begin to experience the negative review the accuracy of their credit re- and focus on core areas of concern in consequences—dealing with law en- port information. Due to risk-based the privacy arena; namely, direct mar- forcement and the collection agencies. pricing, consumers are often not given keting and medical information. Thereafter, when the results of the the adverse action notice when infor- The bill contains important new criminals’ handiwork shows up on their mation contained in their credit report medical information protections which credit reports, they face the consider- significantly impacts the cost of the significantly limit creditors’ use of able task of restoring their good name credit offer. Rather, they receive a consumer medical information and re- and credit rating. counteroffer with credit offered at a strict the dissemination of medical in- This bill attempts to combat this higher price or with more restricted formation in credit reports. These pro- growing crime while also helping con- terms. visions require the coding of medical sumers restore their credit standing This development presents a huge information that is included in credit and give victims assistance. The bill concern. The adverse action notice is reports and prohibits creditors from contains a number of provisions that the primary tool in the FCRA to en- obtaining or using medical information deal with identity theft: sure mistakes in credit reports are dis- in determining a consumer’s eligibility S. 1753 directs Federal banking regu- covered. To address this situation, the for credit. lators, the National Credit Union Ad- committee bill requires regulators to S. 1753 also requires affiliated compa- ministration and the Federal Trade promulgate rules to provide consumers nies to give consumers notice and an

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.003 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13851 opportunity to opt out of direct mar- of this issue, and we heard from a use of credit information and in the keting. In addition, the bill requires broad range of interests in the wit- granting of credit. the regulators to study information- nesses who came before the committee. Among other things this legislation sharing practices of affiliated compa- I think it is fair to say we covered all will: provide consumers with free cred- nies and the level of consumer under- the bases. it reports annually from the national standing. Not all the bases got what they want- credit bureaus and provide consumers Financial literacy was another topic ed. It never quite works that way when with an easy method to obtain their of our committee deliberations. The you do legislation. But I think we had free credit reports. This has heretofore committee understands that informed, a very open, transparent process, with not been available. It will require a knowledgeable consumers are best po- people having an opportunity to summary of consumers’ rights to opt sitioned to take advantage of new cred- present their positions. They were very out of prescreened offers; provide for it products and to reduce the likeli- carefully and thoughtfully considered. accuracy guidelines; lengthen the stat- hood of falling prey to negative devel- In the end, the legislation was reported ute of limitations for all FCRA viola- opments, such as identity theft. Finan- out of the committee, on a voice vote, tions; enhance identity theft penalties; cial education is crucial to the effec- unanimously on September 23. I think extend the situations in which adverse tive operation of our credit markets that vote reflects the response to the action notices are provided to con- since the Fair Credit Reporting Act chairman’s willingness to work with sumers; prohibit the sale, transfer, or places significant responsibility on the all members of the committee. collection of identity theft debt, so consumer to ensure the accuracy of Now, it goes without saying, each of that such bad debt will not be perpet- their credit reports. For these reasons, us, if we could write the bill by our- uated in the credit system; provide the bill establishes the Financial Lit- selves, would have somewhat different consumers with the right to opt out of eracy and Education Commission to re- aspects to the bill. There are areas marketing that results from affiliate view and create Federal programs and where I would have sought to do more information sharing, with certain ex- coordinate the existing financial lit- with respect to some consumer issues. ceptions to that right. Finally, of eracy efforts already established. But I think we sought to craft a bal- course, it will help enhance the finan- The committee has devoted a signifi- anced package here. We understand the cial literacy of all Americans. cant amount of time and energy in this need for a national credit reporting Let me discuss some of these items in bill to build a complete and thorough system for Americans all across the a little more detail. record on the highly complex issues in- country. It means an opportunity to First, accuracy. I don’t think it volved with the Fair Credit Reporting carry out their economic transactions needs much elaboration for people to Act. The legislation we are considering swiftly, efficiently, and effectively. At understand that accuracy of credit re- today, which was passed unanimously the same time, of course, you have to porting information is integral to our out of the Banking Committee, reflects be very alert to ensuring there are pro- reporting process. Erroneous informa- the time and consensus achieved dur- tections so people cannot be abused or tion on credit reports can often take a ing that process. taken advantage of in the process. significant investment of time and It contains language that was devel- One of the things this legislation money to remove. They can be ex- oped by a number of my colleagues on does—and I am going to refer to it in tremely costly to consumers by signifi- both sides of the aisle, and I thank all some detail very shortly—is it really cantly raising borrowing costs. Insur- of them for their efforts. I also particu- seeks to address this issue of identity ers, mortgage banks, and other finan- larly thank the ranking member and theft which has provoked so much mis- cial institutions rely significantly on former chairman, Senator SARBANES, ery and grief for people who are hit by credit scores to make credit decisions. for his insight and the significant con- it. It is really the central focus of peo- Therefore, inaccuracies in the under- tributions he and his staff have added ple’s attention now when they consider lying credit reports can make it more as we have moved through this process problems they are having with con- difficult and more expensive for Ameri- over the course of the year. sumer financial matters. This legisla- cans seeking to make major purchases. I believe we have achieved the dif- tion has some very significant provi- Yet we heard testimony in those exten- ficult objective of striking the proper sions in that regard, and we were able sive hearings, to which I referred ear- balance between enhancing the rights to move those forward with the strong lier, that credit report inaccuracies is of consumers and improving the effi- support of the members of the com- one of the major problems that plague cient operation of our credit markets. mittee. consumers. This legislation addresses Mr. President, I now yield the floor The Fair Credit Reporting Act, which that with substantial measures in that to my distinguished colleague from this legislation, of course, affects pro- regard. Maryland, the ranking Democrat. vides for the ways in which credit in- In order to enhance the accuracy of The PRESIDING OFFICER. The Sen- formation is gathered, disseminated, credit reports, the bill directs the Fed- ator from Maryland. and used. eral banking agencies, the National Mr. SARBANES. Mr. President, I am During the hearings, we received a Credit Union Association, and the Fed- pleased to join this morning in bring- number of recommendations for im- eral Trade Commission to issue guide- ing to the floor of the Senate, along proving the operation of the act. lines and promulgate regulations with with my able colleague from Alabama, Among other things, the suggestions respect to the accuracy and complete- the distinguished chairman of the Sen- addressed: combating fraud and iden- ness of credit report information. ate Banking, Housing, and Urban Af- tity theft, protecting consumers’ finan- Second, free credit reports. The bill fairs Committee, S. 1753, the National cial privacy, clarifying the credit scor- allows consumers to receive a free Consumer Credit Reporting System Im- ing process and the use of credit scores, credit report annually from each of the provement Act of 2003. enhancing regulatory and enforcement three national credit reporting agen- This legislation is important to mil- authority, improving the accuracy of cies. The bill also requires the FTC to lions of Americans as we work to en- credit reports, improving consumers’ take steps to make it easier for con- sure fair, accurate, and effective credit understanding of the credit reporting sumers to obtain their free report, in- reporting practices, and this legisla- process, combating abusive marketing cluding: setting out rules requiring tion is designed to accomplish that ob- practices, and finding ways to improve that a centralized, streamlined method jective. the financial literacy and education of be established so consumers can easily First, I acknowledge and actually all consumers. obtain free reports, and actively publi- commend the distinguished chairman I believe we have taken important cizing and conspicuously posting on its for the comprehensive series of six steps to address all of these issues. The Web site—the FTC Web site—the rights hearings on this legislation that were Senate bill includes a number of provi- available to consumers under the held in the Banking Committee. Chair- sions that will result in enhanced con- FCRA, including the consumer’s right man SHELBY structured extremely pro- sumer protections by helping to ensure to a free report. ductive hearings. There was a system- accuracy of credit report information The provision of free credit reports is atic approach to examining all aspects and fair practices in the collection and a significant step in helping consumers

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.020 S04PT1 S13852 CONGRESSIONAL RECORD — SENATE November 4, 2003 to ensure the accuracy of their credit I commend Senators ENZI and tity theft, and I commend not only the report information, and helping them STABENOW, along with Senators chairman but the members of the com- identify possible instances of identity CORZINE and AKAKA, and many others, mittee—all of the members of the com- theft. for their leadership in this important mittee—who were prepared to focus on As to prescreening, under the FCRA, area of financial literacy. Senator ENZI this issue and give it a very high pri- credit reporting agencies may generate and Senator STABENOW and Senator ority as we sought to move this legisla- for creditors prescreened lists of indi- CORZINE and Senator AKAKA, for a long tion forward. viduals with certain credit characteris- time—really, since I have known The bill will allow consumers to tics to be targeted to receive a direct them—have been interested in this place fraud alerts on their consumer mailing. This prescreening process re- issue. We are pleased there is a title in reports. It will allow military per- sults in much of the unsolicited mail the bill that carries forward important sonnel to place alerts on their reports credit offers that consumers receive efforts in this regard. indicating their active duty status. So and about which they often complain. Let me turn to identity theft. I indi- there is a special concern for our men The success of the FTC’s Do Not Call cated at the outset that this was an Registry has highlighted the frustra- and women in the military. issue of increasing concern across the The bill provides for free credit re- tion of Americans with unsolicited country. Before I do that, I will simply telephone offers. Under the Senate bill, ports after a fraud alert. Consumers mention a step that we took in this will be able to get two free credit re- creditors making such unsolicited of- legislation with respect to affiliate fers of credit to consumers by mail will ports in the year after a fraud alert is sharing. This legislation contains pro- placed in their file, as they seek to be required to include a summary of visions relating to the ability of finan- the consumers’ rights to opt out of clean up the situation and to remedy cial companies to market to their cus- it. prescreening in their offers to con- tomers based on private financial in- As to account blocking, the bill will sumers. In addition, this Senate bill in- formation of the customer that has creases the effective period of the tele- allow identity theft victims to direct been shared among affiliates. phone opt-out of prescreening from 2 to The bill would require affiliates who consumer reporting agencies to stop 7 years. share customer information for solici- furnishing information regarding the With regard to adverse action no- tation or marketing purposes—and accounts associated with identity tices, under the current law, the FCRA, most of the concern we have heard in theft. a consumer receives an adverse action this area has been with the use of this ‘‘One call’’ policy: The bill will re- notice after denial or cancellation of information for solicitation or mar- quire that the national credit reporting insurance, a denial of credit, or a de- keting purposes—to disclose such shar- agencies that receive consumer calls nial of employment, based on informa- ing to consumers and to provide them about identity theft direct the com- tion in the consumer’s credit report. with an opportunity to opt out of the plaint to the other national agencies so This adverse action notice then trig- that identity theft victims need not gers a consumer’s right to a free credit marketing resulting from such sharing of information. contact each agency separately. They report and other of CRA disclosures. can make one contact, and then the in- Those are the provisions that have There are exceptions in the legisla- formation is disseminated on identity heretofore been in the law. What has tion with respect to this provision for theft. happened, of course, is that, as the in- preexisting customers, for service pro- dustry has grown more sophisticated in viders, and for the institutions re- With regard to notification of fraudu- the technology, we are having a move sponding to a consumer request. So on lent information, the bill will require to risk-based pricing. So there are the solicitation for marketing, we are debt collectors who learn that informa- many circumstances in which a con- trying to address much of the concern tion in a consumer report is fraudu- sumer may apply for credit, but rather that has been expressed to us, but we lent, maybe the result of identity than receiving an outright denial, have been trying to do it in a very theft, to notify the creditor of the which is what happened in earlier days, careful way so that the basic purposes fraudulent information. which then was an adverse action and of the legislation can be carried for- On truncation of account numbers, gave the consumer certain rights, the ward. the bill will require that businesses consumer may receive credit at an ele- I want to spend just a few moments truncate credit or debit card numbers vated rate or cost because of informa- on identity theft because it is such an on electronic receipts. tion on the consumer’s credit report. In important issue now. We heard some And on prohibition of the sale of these situations, because a consumer absolute horror stories before the com- identity theft, the bill protects con- has received credit, albeit at more rig- mittee from witnesses who had experi- sumers by prohibiting the sale, trans- orous terms, the consumer is not con- enced identity theft and what it has fer, or collection of a debt where a con- sidered to have experienced an adverse done to their lives—virtually destroyed sumer is an identity theft victim with action. Therefore, no FCRA rights are their lives. Obviously, we have to deal respect to that debt. This will help to triggered. in every way that is reasonably pos- prevent identity theft debt from being This legislation now before us incor- sible with this issue. It has become an perpetuated within the credit system. increasing problem in recent years. porates a recommendation made to us I want particularly to note the lead- by the Federal Trade Commission to The Federal Trade Commission re- ership of Senator CANTWELL with re- update the provision of adverse action ported that the number of identity theft complaints it received last year spect to identity theft. Her identity notices so consumers are aware that theft legislation actually passed on the information in their credit report is far exceeded complaints about any other type of consumer fraud. Ameri- floor of the Senate last year, and this negatively affecting the rates they are bill incorporates many of the provi- paying for credit. Therefore, because cans have serious concerns about this sions that were in her legislation, in- they become aware of it, it gives them issue. Businesses incur significant cluding an extension of the statute of an opportunity to examine that infor- costs dealing with identity theft. Hon- limitations and the blocking provi- mation and to correct it if, in fact, it est citizens who are victims of identity sions. I know she has worked closely should be inaccurate. theft incur very high costs in money, Finally, in addition, the Senate bill in time, in anxiety, and in an effort to with Senator ENZI in that regard in takes important steps to improve the correct and restore their spoiled credit trying to address this identity theft financial literacy of consumers by es- histories and good names. Someone issue. tablishing a financial literacy and edu- steals their identity and then uses it, I also want to acknowledge the work cation commission within the Federal and their whole credit record is being that Senator FEINSTEIN has also done Government, which will coordinate the destroyed. Then it is almost impossible on the identity theft question. We are promotion of Federal financial literacy for them to function in a normal eco- most appreciative of her efforts in this efforts, and will develop a national nomic way in our society. regard as well. strategy to promote financial literacy This bill contains a number of impor- This is just a summary of a number and education. tant provisions that will address iden- of the provisions of this legislation

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.023 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13853 which I think extends important pro- Clearly, our current credit system Just as importantly, affiliate sharing tections to consumers. The bill pro- has benefited individuals at every level assists financial institutions in their vides a number of important improve- of the economic ladder, and that has antiterrorism efforts by helping them ments in the credit reporting system. meant new opportunities for people detect and prevent money laundering. As I mentioned earlier, this legisla- who never before had access to credit. A customer service agent who can re- tion was voted out of the committee on Judgments based on race and gender view all of the consumers’ accounts is a voice vote. There are certain provi- have been taken out of the equation of more likely to spot potential problems sions of the existing legislation that creditworthiness. or concerns. will expire on January 1, 2004. There- No longer is collateral necessary The average American moves every 6 fore, it is important this legislation be when qualifying for a loan. People can years. This is about 17 percent of the enacted before the end of this session. now move on to the ladder of economic U.S. population, more than two-thirds I close by again thanking the chair- success simply by proving they can re- higher than any other country. Our na- man for the very fair and balanced way sponsibly handle their financial affairs. tional uniform credit system plays a in which the hearings were conducted Given this opportunity to reauthorize significant role in increasing the mo- and in which the markup took place. the Fair Credit Reporting Act, we must bility of labor and in the ability of con- We sometimes put down or minimize ensure that our actions do not result in sumers to move while keeping portable the importance of process. It is not a increases to the cost of credit or lower credit reputations that preserve their very catchy word, ‘‘process,’’ but a access to credit. Both would have access to low-cost credit. Advances good deal of what we try to do here and harmful effects on our recovering econ- such as these have ripple effects that when you try to make this democratic omy. At the same time, we must en- help our communities tremendously. process work involves process. It in- sure that the law applies to everyone The families served find themselves volves how you go about considering fairly and that the system to protect with more money since the costs of issues and how open and fair you are in consumers against questionable mate- their financial needs decrease, they doing it; how the majority treats the rial on credit reports operates effi- have access to credit and loans to meet minority and how the minority re- ciently and effectively. the needs of their families, and they sponds to the treatment it receives Recently, in the Banking Committee, are able to establish a good credit from the majority. I believe a good we heard testimony about the harm record so that they are eligible to ob- process contributes to good legislation, caused to consumers who had false in- tain a home mortgage. that it is an important part of formu- formation on their credit reports as a Because of the Fair Credit Reporting lating legislation and arriving at the result of mistakes or fraud. The legis- Act, families are able to build wealth, building of a consensus to address im- lation before us contains initiatives to many for the first time. They are able portant problems. increase the accuracy of credit reports, to provide greater stability for their I simply want to say to my col- including providing consumers with families, and in turn they become more leagues that I think the process that one free credit report each year. This involved in their communities. It is the was followed in this instance was as it free report will give consumers a better modern American dream so many con- should have been, and I think the fact understanding of the factors financial sumers are beginning to realize because we bring this legislation to the floor institutions take into account when out of the committee with a unani- of our efficient and effective credit sys- pricing a product and when deciding mous vote is, in part, a consequence of tem. It is important that Congress act whether to extend credit. that process. I again thank and com- quickly to renew these uniform na- Free credit reports will also ensure tional standards for managing con- mend the chairman in that regard. the accuracy of reports since con- I yield the floor. sumer credit information. Consumers The PRESIDING OFFICER. The Sen- sumers are best able to identify incor- and the financial sector will most defi- ator from North Carolina. rect and false information. This will go nitely feel the impact if these provi- Mr. DOLE. Mr. President, I am in a long way in stopping identity theft, a sions expire. The benefits to our com- strong support of S. 1753 to renew uni- destructive crime that is, unfortu- munities and our economy are endless. form national standards for managing nately, growing more common each I certainly thank Chairman SHELBY consumer credit information. These day. for his excellent work on this legisla- provisions are due to expire January 1, This legislation also continues one of tion. His ability to resolve issues and and this legislation is vitally impor- the most important provisions from work with all the parties is a true tes- tant so that economic empowerment the 1996 act, and that is affiliate shar- tament to his leadership. It is a privi- can become a reality for all Americans. ing. Consumers clearly benefit when lege to serve on his committee. Since it was first enacted in 1970, the they are able to call a single person in I also thank Senator SARBANES for Fair Credit Reporting Act has served their financial institution and that his tireless advocacy on behalf of con- an important role in this Nation. In- customer service agent is able to ac- sumers. Similar legislation has already deed, it is astounding to consider the cess each of their different accounts at passed overwhelmingly in the House. I fundamental changes which have oc- once. We all know the frustration of urge all of my colleagues to join this curred in our credit system. being transferred from person to person truly bipartisan coalition of Senators In 1970, credit card charges over $20 when we are attempting to get ques- in acknowledging the benefits the Fair required the store owner to call the tions answered. With these provisions, Credit Reporting Act has brought to creditor who would then have an em- more institutions are able to develop our Nation. ployee go through a card catalog sys- systems to minimize the need to trans- I yield the floor. tem to approve the transaction. Today, fer customers from department to de- The PRESIDING OFFICER. The Sen- it takes just seconds, even when you partment. It also saves consumers time ator from Alabama. are on the other side of the world. and money when financial institutions Mr. SHELBY. Mr. President, I thank While we take this innovation for are able to realize greater efficiencies the Senator from South Dakota for granted, it demonstrates how much our by consolidating customer service and permitting me to do this. I ask unani- system of payments has changed. administrative functions for their affil- mous consent that the substitute In addition, the provisions of the iate businesses. amendment be adopted and considered Fair Credit Reporting Act have also Let me be clear. Privacy of personal original text for the purposes of further been responsible for many of the ad- information is extremely important, amendment and that no points of order vancements in how we choose financial and I continue to work to implement be waived by this agreement. products which best meet our needs. reasonable protections. However, we The PRESIDING OFFICER. Is there Today a fairer and faster system of as- must strive for a balance and we must objection? sessing an individual’s financial re- not sacrifice the efficiency of our cred- Without objection, it is so ordered. sponsibility means that consumers now it system in the name of privacy. In Mr. JOHNSON. Mr. President, I have quick access to competitive offers many ways, I believe our responsibility thank the leadership for moving to for credit, insurance, or other financial is like that of doctors in the Hippo- floor consideration of S. 1753, which products. cratic oath: First do no harm. amends the Fair Credit Reporting Act.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.025 S04PT1 S13854 CONGRESSIONAL RECORD — SENATE November 4, 2003 This bill, which was approved unani- to the safety and soundness of our fi- ing a loan application. This type of mously by the Senate Banking Com- nancial institutions. pricing has helped to fuel America’s mittee, will ensure that millions of Poor lending decisions affect all of us small businesses. It has also helped Americans continue to have access to through institutional instability and those with impaired credit histories or affordable credit under a uniform na- an increased cost of credit. with little history at all to enter the tional standard that includes signifi- The FCRA, which was passed in 1970 mainstream credit markets, opening up cant new consumer protections. and amended in 1996, has created a na- new opportunities. Similar legislation was passed out of tional credit marketplace based on I would like to spend just a few min- the House of Representatives recently standardized information related to utes highlighting the magnitude of by an overwhelmingly bipartisan vote consumer credit histories for all of us, what’s at stake today with some statis- of 392 to 30. Only occasionally do we regardless from which state we come. tics. have the chance to vote for a bipar- That same statute has standardized A recent study of the consumer cred- tisan bill that so ably balances the consumer rights related to accuracy it marketplace shows the growth of needs of consumers and business. and access. And the reason we are here credit card access over the last 30 Under the leadership of Chairman today on the floor of the Senate is to years, and the results are striking. In SHELBY and ranking member SAR- improve and to protect this system. 1970, only 2 percent of families in the BANES, we have achieved a product that Unless Congress acts, important pre- lowest income bracket had a credit is good for everyone. In the area of con- emption provisions of the FCRA will card. In 2001, that number stood at 38 sumer credit, we have a rare conver- expire on January 1, 2004. Under the percent. In the highest bracket, the 33 gence of interests. What is good for pressure of that deadline, Banking percent of households that had at least consumers helps business to expand, Committee Chairman SHELBY and one credit card in 1970 had risen to 95 which in turn helps to give consumers Ranking Member SARBANES have done percent. more choice. The end result is a strong- an extraordinary job of creating an ex- Even more striking are the statistics er economy. haustive hearing record on this law, related to access to credit by race. Be- I urge my colleagues not to squander and putting together a bill that both tween 1983 and 2001, the number of this opportunity to send a decisive enhances the underlying statute and white families who held credit cards in- message that we are committed to pro- also permanently extends the preemp- creased by 69 percent. During the same tecting and improving a pillar of this tion provisions to guarantee uni- period, the number of Hispanic families Nation’s economy, and that is the con- formity, to the benefit of consumers increased by 85 percent, and the num- sumer credit market. and businesses alike. When I intro- ber of African-American families in- It is a testament to the success of duced the first reauthorization bill, S. creased by 137 percent. our national credit reporting system 660, back in March, I had no idea the It is worth noting the significance of that few people have heard of the Fair process would move forward with such these figures extends far beyond simple borrowing power. Today, you can’t rent Credit Reporting Act or FCRA. FCRA bipartisan spirit, with unanimous ap- a car without a credit card. You can’t is the statute that governs the collec- proval from the Senate Banking Com- buy movie tickets over the phone with- tion and use of personal credit data mittee, and a 392–30 vote out of the out a credit card. And with only a few that make up an individual’s credit re- House. But these votes are testament exceptions, you can’t shop on the port. That credit history, in turn, al- to the critical importance: the urgency Internet without a credit card. lows Americans to access the credit of this legislation. The results are just as noteworthy in The United States is unique in hav- markets in whatever form meets their the area of mortgage lending. Over the ing what is known as ‘‘full file’’ credit needs. For example, millions of Ameri- last three decades, white non-Hispanic reporting. Unlike in other countries, cans have refinanced their mortgages families experienced a 20 percent in- over the past year to take advantage of where only consumers with negative crease in access to mortgage loans, historically low interest rates. Others credit history have any kind of record, while minority groups experienced a 65 have applied for low-cost auto financ- our system encourages data furnishers percent increase over the same period. ing. Most Americans have some form of to report both negative and positive Those rates coincided, not surprisingly, revolving credit line that helps them to credit history—all on a voluntary with a parallel increase in homeowner- meet certain payment needs. basis. This information allows lenders ship rates. I think we all understand Very rarely do we stop to ask our- to make informed decisions about a the important social and economic selves why is it that we can walk into given consumers credit risk, and to benefits of homeownership. a bank, walk into a store or credit make better, safer, and more objective The study also notes the critical role union, or apply over the phone or the lending decisions. that automated underwriting has Internet for credit with a mortgage This means that when you pay on played in democratizing our credit broker and a few minutes later get ap- time, this positive payment history markets. Automated underwriting, proval. These people do not know us, gets reported to centralized credit bu- which would be next-to-impossible they have never seen us, and yet they reaus. Of course, of you’re late or you without a uniform national credit have the information they need to miss payments, that information goes standard, now accounts for over 90 per- make an objective and sound credit- into your file as well. But unlike the cent of mortgage lending, up from 25 granting decision. ‘‘no news is good news’’ system that ex- percent in 1996. According to this re- When I was growing up, if you needed ists in so many countries, our full-file port, and this is an astonishing sta- a loan, you had to walk down the street reporting system means that con- tistic: to the local banker, who had probably sumers can build up a solid credit his- Before the advent of automated under- known you your whole life. He lent you tory through on-time and responsible writing, approving a loan application took money because he knew your family, payments, and that history will follow close to three weeks; in 2002, over 75% of all he knew you were a hard worker, and us wherever we go. So when the time loan applications received approval in two or he trusted you to make a good loan. Or comes to apply for a mortgage or other three minutes. maybe because the banker had certain loan, a lender can see that you know Even more important, the automated preconceived notions about you or your how to handle your finances. underwriting systems greatly reduce family, you did not get credit that you This full-file reporting system has racial and gender bias that in the past deserved. led to another critical development in resulted in redlining, which unfairly Today, that has all changed. Today, our credit markets, and that is risk- prevented certain groups from owning the national marketplace for credit has based pricing. Until fairly recently, homes, and which kept too many finan- transformed this loan-granting process. credit granting was a binary business. cial services companies out of markets Uniform credit information allows In other words, either you qualified for inaccurately and unfairly deemed to be lenders, big or small, to make sound credit or you didn’t. Now, lenders can high risk. lending decisions based on an objective take a chance on a borrower by charg- This study also concludes that cer- evaluation of past credit performance. ing a higher interest rate to account tain changes to FCRA, and in par- These objective indicators are critical for that risk instead of simply reject- ticular restrictions on the type of data

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.029 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13855 that might be reported about a con- And while there are certainly impor- lation we are providing consumers ac- sumer, would be especially harmful to tant privacy components to this stat- cess to a national credit system. If we consumers at the lower end of the cred- ute, components which the Banking look at the financial services, or our it spectrum. In particular, minority, Committee bill strengthens signifi- commerce system across the entire lower-income and younger borrowers cantly, the FCRA fundamentally is country, it is our job to look out for would be the hardest hit. This conclu- about the economy. And all too many the interests of consumers where inter- sion is critical, and gets to the heart of of us know firsthand that the last state commerce and business is con- what a uniform national credit report- thing our economy needs now is an at- cerned, and this legislation does just ing system is about. The last thing we tack on the consumer credit markets. that. It provides access to a national want is to reintroduce discrimination Under the able leadership of Senators credit system, and it does so at a rea- into the lending system, which would SHELBY and SARBANES, the Banking sonable cost. We strike a balance be- mean that minorities and low-income Committee’s bipartisan legislation tween the needs of the consumers and people would be forced to high-cost un- takes groundbreaking new steps to give the impact on our economy so that in regulated lenders for credit. consumers greater control over their the long run both consumers and Failure to maintain a uniform na- financial lives; fight the growing crime America’s economy are well served. tional standard would also have a stag- of identity theft; and promote much We work to ensure consistency and gering impact on the cost of credit. needed financial literacy and education fairness in the legislation. Any bill we Even credit cards, which often carry efforts. Under the act, every American take up here which might affect con- higher interest rates than other types will be able to get one free credit re- sumers or any other interests in the of non-revolving lines, have seen sig- port a year—a significant milestone. country, we would want to work to en- nificant decreases in cost, which the The public will also know that their sure it is consistent, it is fair, and that study attributes largely to the com- private medical information will never it creates a level playing field wherever petition in the market and to be used inappropriately in making possible. As indicated and described by Sen- prescreening, which is made possible on credit-granting decisions. And the act ator JOHNSON in his remarks, the exist- a large-scale basis by the FCRA. For takes important new steps to empower ence of this national credit system has example, in 1990, only 6 percent of all consumers to reduce unwanted credit resulted in speedy approval for con- credit card balances paid interest rates solicitations. sumer decisions and requests and cred- under 16.5 percent. By 2002, 15 percent It is my understanding that some it cards and other financing mecha- of all card balances paid rates below 5.5 Members may be offering amendments nisms. As a result, we have seen access percent, and 71 percent of all credit that include wholesale replacement of to credit dramatically increase since card balances carried interest rates significant portions of this carefully- 1970 when the first credit acts were under 16.5 percent. In 1990, while more crafted bill with a substitute proposal signed into law. than 93 percent of all credit card bal- that has moved through a State legis- That improvement in access to credit ances paid interest rates over 16.5 per- lature under a highly charged and po- markets and credit opportunities has cent, that number had plummeted to 29 litical atmosphere. While I look for- been most dramatic for those at the percent in 2002. ward to discussing these proposals, I lowest end of the income ladder. That I note here that consumers who do am frankly very concerned that we not is something we should recognize as wish to receive pre-screened offers have get into a situation where we are play- being good for all of those consumers the right to opt out of the system. In ing politics with access to credit. One but also for our country as well. The fact, S. 1753 makes that opt-out even of these amendments in particular is reason we are here is for those con- easier and long-lasting. drafted in such a way that we would sumers. While some of these interest rate de- end up catching labor unions, churches, If we look at the result of the work clines may be due to a general drop in universities, charities, and a host of that was done beginning in 1970, the interest rates, much absolutely has to other groups in the FCRA net, a con- Credit Reporting Act in 1996, and now do with companies’ ability to differen- sequence that is clearly unacceptable. with this legislation to reauthorize tiate risk among borrowers and to As we move forward with this legisla- that legislation, the results have been price credit accordingly. Credit scoring tion to strengthen and protect our con- a more accurate system, a stronger models have increased in their pre- sumer credit markets,I would urge my economy as described in detail by a dictive power and one result is increas- Senate colleagues to look to the model number of the previous speakers, and ingly competitive cost of credit. Any of bipartisan lawmaking that has sur- now with some of the new provisions reduction in the type of information rounded reauthorization of key provi- we will also have greater protection available to lenders would significantly sions of the Fair Credit Reporting Act: from identity theft and a system that degrade the predictive power of most a unanimous vote out of the Banking is adapted and modernized to meet the models. Committee and an overwhelming House new technologies and the new opportu- The study further indicates an in- vote of 392–30 on final passage. We owe nities that exist today. creasingly efficient marketplace, leav- it to our constituents to continue Senator SARBANES described the de- ing aside the role of interest rates. One working together to secure final pas- tails of the legislation. I will not go chart shows mortgage rates back in the sage of this critical economic bill. I through all of the provisions that en- early 1980s hovering around 3.5 percent- urge my colleagues to join me in sup- able us to enjoy these very positive re- age points above the 10-year Treasury porting this legislation, which is so im- sults, but I will reemphasize the fact bill. In the last few years, spreads have portant to America’s consumers and that this is strong bipartisan legisla- closed to about 2.5 percentage points. businesses alike. tion. Chairman SHELBY and ranking The national credit marketplace has The PRESIDING OFFICER. The Sen- member SARBANES worked through six increased competition, with all the ator from New Hampshire. hearings in our committee to conduct positive effects we learned in Econom- Mr. SUNUNU. Mr. President, I rise in exhaustive investigation as to the re- ics 101. One of the main reasons we support of the Fair Credit Reporting sults of the legislation that has been have a competitive national market- Act which we are debating on the floor enacted before, the new opportunities place is because we have a national today. I think it is important as we created by technology, and different credit reporting standard that permits move through this debate and take up opinions on different provisions. We consumers, no matter where they live, amendments to the legislation that we have a very strong committee record. I no matter where they move, to apply continue to ask the question, Why do am pleased to have participated in for credit and to receive an answer in a we need this legislation in the first most of those hearings to ensure that matter of minutes. America is the envy place? What are we trying to accom- we are taking the disparate views into of the world in terms of immediate ac- plish with the bill? consideration and improving the strong cess to credit for all of our citizens. First and foremost, this is legislation legislation that is already on the There are ongoing attempts to that is intended to serve and protect books. mischaracterize the fundamental na- the interests of consumers in the We want to avoid having 50 States ture of the FCRA as a privacy statute. United States of America. In this legis- adopting 50 different standards in each

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.007 S04PT1 S13856 CONGRESSIONAL RECORD — SENATE November 4, 2003 of the areas that have been discussed— have come up with a reasonable ap- resents the people of Kentucky or the whether it is enforcement, access for proach. other States very well. That’s not their consumers to credit reports, informa- Most importantly, we have to act job. tion sharing, or whatever the issue. We now because this bill is also important If we adopt the amendments to be of- don’t want to have 50 different systems to our overall economy. fered by my friends, it would have the for each of these areas. That would be Last week, we had great economic effect of imposing California’s rules on a more costly system for consumers. news. Our economy is roaring back and the rest of the Nation. That would mean we would have a less that is good news for everyone. But if That’s a bad idea that will only lead accurate system. That would also we fail to pass this bill, it could end up to the economic uncertainty we have mean—I think this is an important being a serious speed bump on the road to avoid. point—we would come back to this de- to a better economy. If California wants to try to craft bate with a disparate patchwork, and it If there is one thing that markets their own rules and work with Federal would also mean greater susceptibility hate, it is uncertainty. They want to regulators, I say more power to them— to identity theft. know where we are and where we are but not if it puts a crimp on the na- When we are looking at the issue of going. tional economy or starts rewriting the information sharing or opt-ins and opt- For better or worse, the markets rules for the other 49 States. outs, some of the privacy issues that think we are going to pass this bill. Our credit system is a national sys- are very important, we have to be sure They think we are going to outline a tem and it needs a national standard. we at least give law enforcement the stable path for financial institutions Standards that may work in California same level playing field criminals have when it comes to the sharing of infor- or Kentucky may not work for the in that we at least ensure law enforce- mation. country as a whole. ment has the most consistent system Any talk or any sign from Congress Usually I am all for taking power possible to do its job in protecting that makes the markets think that we away from Washington and sending it against identity theft. A patchwork of are not going to pass this bill would back to the States and local govern- laws and legislation would increase the create a great deal of uncertainty in ment. But on this bill, we cannot ig- risk of identity theft, not decrease it. the financial markets. nore the fact that credit rules and mar- At the end of the day, this is a con- Now that our economy is really com- kets and money are all part of a broad- sumers’ bill. That is exactly what we ing to life, that is the last thing we er, national economy that requires a want it to be. We give consumers great- need. unified, Federal approach. To let er access to reports. We have all been If the markets think we are going to States undermine that would be a rec- frustrated with mistakes, or errors, or let the FCRA lapse, they are going to ipe for disaster. oversights in our own credit reports. get very jittery very quickly. I can un- S. 1739 is a fair and balanced bill that We want to make sure consumers have derstand that. This is a sensitive, com- sets a fair and balanced standard for that access. We give them the protec- plicated area. I don’t think any of us our entire Nation. It’s bipartisan, it’s common sense, tion from identity theft. We improve wants the FCRA to lapse. and it’s a prudent solution to a press- the enforcement mechanism for those We need Federal preemption in this ing problem for our financial institu- who commit crimes involving credit re- area. I think it would be a mistake to let States and localities all try to im- tions. porting or identity theft. We have very I urge my colleagues to support this pose their own privacy rules. commonsense provisions for informa- important legislation. tion sharing among affiliates that exist There are trillions of dollars at Mr. SCHUMER. I commend Senators stake. We have to be very careful. so they can make sure the information SHELBY and SARBANES on a strong, bi- But if we fail to pass this bill, we they are acting on is accurate and fair partisan bill. and adequately represents the con- open a Pandora’s box of States and lo- Reauthorizing the Fair Credit Re- sumers’ interests in these. calities writing their own rules, and porting Act is vital to our national Again, I give great credit to the staff the markets and financial institutions credit markets, to the broad credit ac- of the committee and to the chairman just are not prepared for that. cess American consumers enjoy, and to and ranking member for the work they We can’t let that happen. We don’t the businesses that provide that credit. have done. need that uncertainty now. Who knows Indeed, it may be the most important I look forward to this debate. I hope what would happen. piece of legislation that we enact in we can quickly conclude the work on On a personal note, I am very pleased 2003. this legislation so our national credit that the bill contains strong identity Like all great pieces of legislation, system can remain strong as it has theft and privacy protections, includ- this bill strikes a balance between been for decades, but also so it can be ing my amendment on social security those who would like to see more improved to respond to what is in a number truncation that will help pre- change and those who would like to see changing world. vent thieves who go ‘‘dumpster diving’’ less. It is a true compromise between Mr. BUNNING. Mr. President, I rise or try to steal credit reports from mail competing interests. today in support of S. 1753, the Na- boxes. While preserving some of the struc- tional Consumer Credit Reporting Sys- Identity theft is a growing problem ture of how businesses operate, it adds tem Improvement Act of 2003. in America. The internet is making it significant new consumer protections As we all know, reauthorization of easier for thieves to access consumer and disclosure rights—enhanced pro- the Fair Credit Reporting Act is a very information. tection from identity theft, distribu- important issue for the financial serv- My amendment will help fight this tion of free credit reports annually, ices industry and for consumers. growing menace. Under this bill, con- better notice when adverse actions are When I talk to my friends in this sec- sumers can block out their social secu- taken. tor, it is always the first thing they rity number on their credit reports. I want to speak for a minute about ask about. It touches everyone and It’s just the sort of simple, common- identity theft. their money and our national economy. sense approach that will help con- While our national credit system— It’s critical that we act on it before ad- sumers without burdening business. and the digital age we now live in—has journment. I would also like to talk about the brought great benefits, it also has a I believe that the Banking Com- amendments that are going to be of- dark underside: identity theft. mittee, under the leadership of Chair- fered by my colleagues from California. It is now so easy for credit histories man SHELBY, has created a fair, bipar- They are based, in large part, on a Cali- to be accessed, that the security of tisan bill, and I urge my colleagues go fornia bill, SB1. some of our most private data is easily support it. I am sure California has a fine legis- compromised. As a result, becoming a We have been talking about this lature. And I am sure there representa- victim of identity theft is as easy as issue for several years. We have held a tives try their best to represent their saying your ABCs. number of hearings on it. We looked it California constituents. But I do not So what is identity theft? It sounds over pretty thoroughly, and I think we think the California Legislature rep- like something out of an Isaac Asimov

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.030 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13857 science fiction novel but it is a very whether obtained from a credit bureau, those who historically have been shut real crime that could affect all of us. generated internally by the lender, or out, with access to our credit system— Anyone who has ever applied for a created by a third party, would have to particularly minority and low-income credit card, a driver’s license, a social be accompanied by a description of households. security number, even a cell phone, credit scores and the data used to gen- But we should not lose sight of the could become a victim. erate them. This will go a long way to- fact there’s a great deal more that we Last year, the Federal Trade Com- ward demystifying credit scores for can do before we claim that the playing mission received twice as many com- consumers. I think it is a real victory field is truly level. With several of its plaints about identity theft as it did in for consumers. And, again, I am proud provisions set to expire at the end of 2001. And ID theft is projected to grow to have worked with my colleague Sen- this year, it is imperative that Con- in the future. Some forecasts predict ator ALLARD on this section of the bill. gress act now to reauthorize the FCRA, that by 2006, between 500,000 and 700,000 So in conclusion let me say that I lest we risk a severe disruption to our Americans will be victimized annually. think the bill maintains the key foun- economy that could result from a This issue is of particular concern to dation of the national credit system breakdown in our national credit sys- New York State. New York has the sec- which has served consumers and the tem. ond highest number of cases of ID theft country so well—the ability to get in- This legislation does that. In fact, it of any state in the county. And my stant credit, to get world class cus- does more than just reauthorize the hometown, New York City, has the un- tomer service, and to get some of the FCRA—a worthy objective in its own fortunate distinction of being the iden- lowest credit rates in the world. And it right. It enhances the obligations of tity theft capital of the United enhances some of the new rights con- those who use and store consumer cred- States—it suffers more identity theft sumers need in this digital age we now it information, it strengthens con- than any other city in the nation. New live in. sumer control over their personal fi- York businesses also suffer as the fi- Mr. CORZINE. Mr. President, I rise nancial and medical information, it nancial costs of identity theft nation- in support of the legislation currently strengthens consumer protections wide often fall on the financial institu- being considered, ‘‘The National Con- against identity theft, and importantly tions based in New York. ID theft costs sumer Credit Reporting System Im- it promotes consumer financial lit- businesses millions of dollars each year provement Act of 2003.’’ eracy. And this legislation includes im- because criminals use false pretenses Before I get into the substance of the portant provisions that will strengthen to purchase goods, leaving businesses legislation, I would like to acknowl- consumer protections against the seri- to foot the bill. Identity theft is a edge the stewardship and leadership of ous, and growing, threat of identity scourge on New York consumers and Banking Committee CHAIRMAN SHELBY theft. and Ranking Member SARBANES in de- New York businesses. And it is high It’s a serious crime and is rapidly be- veloping this bipartisan proposal— time we fixed this problem. coming an epidemic. In fact, identity Victims of identity theft often spend which passed unanimously out of the theft is the single largest consumer hundreds if not thousands of dollars Senate Banking Committee. Their ef- crime in America, as reported by the and years repairing their financial forts, and the work of their respective Federal Trade Commission. People lives. But there is more at stake here staff, are to be commended. whose identities have been stolen can than just money. By destroying a per- Through a series of six hearings they spend months or years, at considerable son’s credit rating, identity theft jeop- took a thoughtful, deliberative ap- cost, cleaning up the mess thieves have ardizes an honest person’s ability to proach toward the myriad issues in- made of their good name and credit get a credit card, receive approval for a volved in fashioning this legislative record. And while doing so, victims loan, get a job, or even buy a house. proposal. In those hearings we heard lose employment opportunities, can be Identity theft doesn’t just mean hav- from a variety of sources—regulators, refused loans, education, or even be ar- ing to replace an ATM card, it means industry participants, consumer advo- rested for crimes they didn’t commit. having to rebuild a life. cates, and most importantly consumers So I am glad we are addressing ID themselves. Those hearings proved an This bill directs federal banking reg- theft in a strong manner in this bill invaluable tutorial to me and I imag- ulators to develop guidelines and regu- and commend my colleagues for their ine all the other members of the Bank- lations to fight identity theft. It allows leadership on this issue. ing Committee. More importantly, consumers who have, or may have, I also want to speak about another those efforts, and the comity shown by been a victim of identity theft to put critical part of the bill—improving Senator SHELBY, created an environ- banks and others on notice to guard consumer access to their credit scores, ment of bipartisanship in the effort to against the continued use of their sto- the principle factor in determining a enhance our national consumer credit len identity through the use of ‘‘fraud person’s credit worthiness and the loan reporting system—which is embodied alerts.’’ It prohibits debts resulting terms they receive. For years, con- in the bill now before the full Senate. from identity theft from being sold or sumers have been kept in the dark The Fair Credit Report Act has been transferred for collection, and it en- about what their credit score is and central to the provision of credit in hances criminal penalties for identity how it is computed. At long last, this America. It has improved access to theft. It requires financial institutions legislation lifts the veil of secrecy over credit, and enhanced the security and to disclose when their customer data credit scores and creates greater oppor- accuracy of consumer financial infor- systems have been compromised. And tunity for securing a home mortgage at mation used in assessing creditworthi- the bill provides consumers with access considerably less expense. ness. The expansion of our credit sys- to one free credit report per year from The legislation that Senator ALLARD tem, which the FCRA has helped drive, the credit reporting bureaus. and I worked on with our Chairman has proved enormously beneficial to This access will allow consumers to and ranking member will finally put an our nation and our economy. It pro- monitor the accuracy of the informa- end to this practice by ensuring that vides consumers with the ability to fi- tion contained in their credit files and consumers have access to their credit nance purchases of a car, pay a child’s ensure that information resulting from score. This will level the information college tuition, purchase a new home, identity theft does not end up destroy- playing field between consumers and open up a new business or pursue some ing their financial reputation. These lenders. other lifelong dream. are all important provisions, and they Specifically, S. 1753 would require Credit is the grease that makes the are sorely needed. credit bureaus to disclose a consumer’s wheels of the economy turn—particu- I also want to speak to an element of credit score upon application for a larly our consumer-oriented economy this bill that has received little public mortgage. The bill also would require which accounts for nearly 10 percent of attention, but will, I believe, be par- any bank using a credit score to serv- our overall GDP. And the FCRA has ticularly beneficial in the long run— ice a mortgage to provide the borrower provided millions more Americans, that is the provisions of the bill which with the information used to create many of whom lacked the financial re- promote consumer financial literacy. this credit score. And the credit score, sources to pursue their dreams and The Chairman and Ranking Member of

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.022 S04PT1 S13858 CONGRESSIONAL RECORD — SENATE November 4, 2003 the Banking Committee noted the im- Mr. REED. Mr. President, I rise S. 1753 represents a major step in this portance of the financial literacy pro- today in support of the National Con- public-private effort to combat iden- visions in their opening statements. sumer Credit Reporting System Im- tity theft. Among many provisions, it They, and others, including Senators provement Act of 2003, which would re- would allow victims of identity theft to STABENOW, AKAKA and ENZI, deserve authorize expiring provisions of the place fraud alerts in their credit re- recognition for their commitment to Fair Credit Reporting Act. I commend ports, block fraudulent transactions improving the financial literacy of Senator SHELBY and Senator SARBANES from being reported, and prevent false Americans young and old. for their hard work in addressing this information from ‘‘repolluting’’ credit This bill seeks to harmonize the cur- issue and for putting forward a bipar- reports in the future. It would require rently fragmented approach the federal tisan bill to strengthen our Nation’s businesses to truncate credit and debit government has taken towards pro- credit system. The Banking Committee card account numbers on printed re- moting financial literacy. It estab- has held numerous hearings on all as- ceipts. And it empowers consumers to lishes a Financial Literacy and Edu- pects of this issue over the past year ensure the accuracy of their own credit cation Commission to streamline and that have highlighted the concerns of history by granting them a free annual improve financial literacy and edu- consumers, regulators, and private credit report from national credit re- cation programs of the Federal Govern- companies. porting agencies. ment, including curriculum develop- One of the cornerstones of our na- These are good steps. However, I be- ment, for the benefits of all Americans. tional economy is consumer access to lieve that S. 1753 can be improved to And by providing consumers with a credit. Access to credit allows for address several other closely related free credit report, and access to the in- smooth functioning of our national consumer and privacy issues. We are formation used by creditors to judge economy with consumers able to get seeing an increasing number of success- their creditworthiness, this bill equips loans for homes, cars, and commercial ful breaches of security at banks and consumers with the tools to competi- purchases. processing companies, and we should tively shop for sources of financing and This is all made possible by having a address this trend head on in this de- will lead consumers to make better in- national credit system, as first put bate. Just this past February, a com- formed, more judicious, credit-related into place by the Fair Credit Reporting puter hacker accessed 10.2 million cred- decisions. And, I might add, improved Act in 1970, and then standardized by it card and debit card account numbers financial literacy will also help con- the 1996 amendments to the act. Uni- by breaking into a database main- sumers protect themselves against form national standards have improved tained by a third-party transaction identity theft. the efficiency of the system by reduc- processor. This was the biggest credit The various elements of this legisla- ing the regulatory burden on lenders, card security breach ever in terms of tive proposal that I’ve just outlined thereby allowing them to pass on bet- the number of cards affected. will prove beneficial to consumers, our ter service and lower costs to con- Citizens Bank, located in my home credit system and our economy. It’s a sumers. Automated underwriting sys- State of Rhode Island, felt that this bipartisan bill that does a lot of very tems translate to quicker credit deci- breach posed a significant enough risk good things, and was put together in a sions and more convenience for bor- to cancel the debit cards of nearly 8,800 balanced manner. Is it a good piece of rowers and lenders alike, while making customers and issue them new cards. I legislation? Yes. Is it perfect to me? risk-based decisions more accurate. applauded this quick effort to protect Certainly not. I personally think more Failure to reauthorize national consumers. Unfortunately, not every can be done to give consumers greater standards would balkanize our national bank matched Citizen’s level of con- control over the ways in which finan- credit system and potentially hurt sumer care, and many decided that the cial institutions share their personal every consumer in America. The Bank- information with their affiliates, for cost of reissuing cards or informing ing Committee recognized this and marketing, solicitations and other pur- their customers exceeded the risk to voted unanimously to report S. 1753. poses. And I think we will need to re- consumers. This important legislation includes In light of this less than comprehen- visit FCRA at some point to look at numerous consumer protections sive response, I would like to highlight issues related to the increased use of against identity theft. I am alarmed by one particularly troubling practice credit scores as a determinant of one’s the abuses that have resulted in iden- during this incident. According to suitability to gain employment, obtain tity theft. With more and more finan- media reports, even though some credit car or medical insurance or rent an cial and personal information being ex- apartment. card issuers learned of the database in- In that regard, I want to thank changed through electronic channels, trusion early in February, they waited there is an inevitable trade-off—sen- Chairman SHELBY for graciously incor- several weeks before disclosing the in- porating into this bill language I of- sitive information can fall into the cident. Even with the zero-liability fered in committee that calls for a wrong hands. policies for the vast majority of major study of the impact credit scores and Over the past several years, identity credit cards, debit card holders could credit-based insurance score have on theft has become a significant problem see their bank accounts depleted, and the availability and affordability of fi- in the United States. According to a re- all affected customers still run the risk nancial products so that we can explore cent survey by the Federal Trade Com- of being victims of identity theft, even this issue more broadly as we move for- mission, 9.9 million Americans were months or years after the security ward. victims of identity theft in 2002, at a breach occurred. But whatever issues I, or other mem- tremendous cost to consumer victims Senator CORZINE has introduced an bers, may wish to raise with regard to of $5 billion in out-of-pocket expenses amendment that would require finan- S. 1753, there is no doubt that this leg- and $48 billion in losses to business and cial institutions, creditors, and users of islation makes significant improve- financial institutions. Indeed, com- credit reports to notify the FTC when ments to current accuracy and security plaints to the FTC about identity theft the security of consumer financial in- standards of our consumer credit re- have nearly doubled every year for the formation is accessed in an unauthor- porting system and our efforts to fight past 5 years. ized manner. A mandatory and timely identity theft. By its very nature, this challenge re- disclosure of such breaches will allow The standards contained in the legis- quires coordination between the public the Federal Government, along with lation will make our credit system and private sectors and between local, the institutions and consumers, to more robust and provide access to cred- State, and Federal government. Iden- closely monitor transaction informa- it to even more Americans who seek it. tity theft is costly to consumers, cost- tion and mitigate the resulting damage In doing so, this legislation will prove ing New England alone over $44 million from the breach. beneficial not only to consumers, but in 2001. The impact on private financial An amendment from Senators CANT- also more broadly to our nation’s econ- institutions should be no less obvious, WELL and ENZI would further enhance omy. and these companies are essential to these identity theft provisions with I urge my colleagues to support S. any attempts at prevention and con- language from a bill passed unani- 1753 when it comes up for final passage. sequence management. mously by the Senate last year. Their

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.024 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13859 amendment would establish a single Financial Information Privacy Act, programs can make a difference for in- uniform procedure for individuals to which was negotiated over the course dividuals who wish to, but never establish that they are victims of iden- of four years with industry and con- thought they could, purchase a home. tity theft, requiring a notarized FTC sumer representatives. There is no rea- In Wyoming, I have worked with a con- affidavit, a government identification, son for me to believe that the situation sortium of financial institutions, real and a police report. It then gives these has changed dramatically since the in- estate professionals, colleges and uni- victims access to any business records terested parties supported that legisla- versities, and non-profits to provide related to their identity theft-related tion. compressed video classes on how to buy fraud, which today is a time-consuming Finally, I would like to speak in sup- a home. These classes have proven to and difficult task. port of one of Senator FEINSTEIN’s be vital in reaching home-buyers and I would also be remiss if I did not ad- other amendments on medical informa- families in the rural areas of the State. dress the much broader topic of pri- tion. Even more than financial data, To date, more than 4,000 families and vacy, a topic that is one of the most health-care related information should individuals have taken part in the important issues to the American pub- enjoy a special protection so that indi- classes. The great success of this pro- lic. Privacy is important to Americans, viduals will feel free to seek appro- gram has demonstrated to me the as evinced by the overwhelming out- priate medical interventions and share power that we can give to individuals pour of support for the national do-not- all pertinent information with their and families over their finances if we call registry, financial privacy legisla- doctors. Senator FEINSTEIN’s amend- gave them the tools. tion in California, and the Senate’s ment would fix the definition of med- In addition, I also worked with con- unanimous vote against email spam. ical information in S. 1753 to include sumer credit counseling services that Indeed, Supreme Court Justice Louis mental and behavioral health informa- helped over-extended individuals and Brandeis championed the right to pri- tion and health-related information families to rearrange their life and vacy, calling it ‘‘the right to be let that was collected for other purposes breakout of debt. Credible advice alone, the right most valued by a civ- like for worker’s compensation or cas- makes a difference for financial power. ilized people.’’ I believe that we must ualty and property insurance. The Federal Government has a vast continue the privacy debate that we As we debate S. 1753 and vote to variety of financial literacy and edu- began with the Gramm-Leach-Bliley strengthen our Nation’s national credit cation programs for Americans of all Act and find the appropriate balance system, we must renew our commit- ages. Unfortunately, consumers have between consumers’ privacy and the ef- ment to working to ensure consumer to struggle through the many Federal ficient operations of financial institu- privacy amidst changing practices and agencies’ programs and initiatives to tions. standards in the market. With this in find the right financial literacy mate- I commend Senators SHELBY and mind, I urge all of my colleagues to rial for their needs. Title V of this bill SARBANES for including a targeted opt- support this important bill. will provide a one-stop-shop for con- out for affiliate sharing for marketing Mr. ENZI. Mr. President, the bill we sumers to reach the many, various fi- purposes in this bill, but I am not con- have before the Senate, the National nancial literacy programs that the vinced that this step is sufficient. Consumer Credit Reporting System Im- Federal Government provides. In addi- When Congress passed the amendments provement Act of 2003, is clearly a bi- tion, the Title will help bring consist- to the Fair Credit Reporting Act in partisan effort recognizing that our ency and focus to the Federal Govern- 1996, affiliate sharing had a very dif- credit system has truly developed into ment’s overall financial literacy ferent meaning. The Gramm-Leach-Bli- a national market. The bill will pro- goals—something that does not appear ley Act had not yet been passed, and vide consumers with greater tools to apparent at this time. massive financial services holding com- improve the accuracy and correctness Title V is built upon the successful panies had not emerged. Today, accord- of information contained in their cred- model of the Trade Promotion Coordi- ing to the Federal Reserve’s National it reports as well as to provide impor- nating Committee in that it would Information Center, the largest bank tant tools for consumers in combating being the appropriate Federal agencies holding company has at least 1639 af- identity theft. This bill is a very together to review and evaluate cur- filiates as of June 30, 2003. The meaning proconsumer bill and goes a long way rent financial literacy programs by the of affiliate sharing has changed, and towards enhancing consumer protec- Federal Government. The Financial will likely continue to change as the fi- tions in our credit markets. Literacy and Education Commission nancial services industry adapts to When the Fair Credit Reporting Act will make recommendations on how to changing times. was first adopted in 1970, consumers coordinate and improve existing pro- In its report to Congress on the eco- spending had reached 566 billion dol- grams as well as how to reduce redun- nomics of financial privacy, the Con- lars. At the time, that was quite an dant and duplicative programs. I be- gressional Research Service argues outstanding figure. By 2002, that figure lieve that the long-term cost savings to that in a world with imperfect informa- had risen to over $7 trillion. the Federal Government as a result of tion, financial institutions would have In just this past decade alone, we this review will be great. In addition, an incentive to offer some compensa- have seen tremendous growth in the the commission will set forth a na- tion to their customers if they had to availability of credit. Much of this can tional strategy recommending changes obtain their consent to use and share be attributed to the technological ad- to the President and Congress on how their information. The CRS report vances in the way consumers can apply the Federal agencies can improve their makes a good point. Consumers’ finan- for credit, the review of credit applica- financial literacy efforts. cial information is inherently valuable, tions by financial institutions, and the I thank Chairman SHELBY for incor- and they should have the right to pre- development of new and unique finan- porating the bipartisan effort to pro- vent it from being shared for mar- cial products. The incredible growth in mote financial literacy as Title V of keting or other profitable purposes. In- the availability of credit in the hous- the bill. In addition, I thank Senators deed, as personal financial information ing, consumer, and small business mar- SARBANES and STABENOW as well as the gets passed from affiliate to affiliate kets is a testament to our financial other members who supported this ef- and is handled by an increasing number markets. Accordingly, it also is a sym- fort. of people, consumers will be placed at a bol of the national structure of our With respect to identity theft, the higher risk of becoming victims of credit markets. I believe that this bill FTC recently released a study showing identity theft. The choice of how that will further enhance the credit mar- that more than 27.3 million consumers information is spread should ulti- kets and provide significant consumer have been a victim of identity theft in mately be theirs. protections. the past five years and that the num- Senators FEINSTEIN and BOXER have Two areas that I would like to focus ber is growing quickly. A little more put forward a reasonable compromise on are financial literacy and identity than a month ago, one of my own staff on the matter of privacy and affiliate theft. became a victim of this crime. As you sharing. This amendment on affiliate With respect to financial literacy, I know, Senator CANTWELL and I have in- sharing was drawn from the California have witnessed how financial literacy troduced identity theft legislation to

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.093 S04PT1 S13860 CONGRESSIONAL RECORD — SENATE November 4, 2003 help victims to recover their identities, mission created by S. 1753 and the na- what rate you get; your insurance that legislation passed the Senate last tional strategy that would be produced claims history such as whether you pay Congress. by the commission. It would authorize your premiums on time, how many According to the Federal Trade Com- the commission to work in collabora- claims you have made and whether mission, identity theft is the fastest tion with an entity accomplished in claims were paid out; how many times growing crime facing consumers today. public service campaigns that has se- a consumer called the company’s call Victims are faced with potential finan- cured private sector funds to supple- center or complained about the com- cial ruin when their identities, bank ment federal funding and community pany’s service; an employee’s work his- accounts, and credit histories are organizations well-qualified by virtue tory, including performance ratings, taken away from them by unscrupu- of their experience in the field of finan- use of sick days, vacation, and salary. lous criminals. cial literacy and education. My amend- To make matters worse, the bill per- Unfortunately, many victims face an ment also requires that performance manently preempts States from taking uphill battle to restore their identities. measures be developed to measure the stronger action. In addition, Federal and local law en- effectiveness of such a public service What we have before the Senate forcement officials are placed at a dis- multimedia campaign, via positive today is a weak privacy standard built advantage by not having all of the changes in behavior with respect to for businesses at the expense of con- available information to discover iden- personal finance. It is paramount to be sumers which legislatures in all 50 tity theft rings or patterns of id theft able to assess the effectiveness of the States are forever barred from improv- criminals. campaign and other financial literacy ing. I am particularly concerned that fi- I believe that the provisions in the efforts so that we understand what nancial institutions in California, with bill before us take a great step in help- works and does not work, and can rep- the lone exception of the California ing the victims of this crime recover as licate our successes into the future. Credit Union, negotiated and signed off well as providing proactive tools to I will continue to work with my col- on State legislation resolving this help consumers prevent their identities leagues on the Banking Committee and issue, and now the same financial insti- from being stolen. In addition, the bill their counterparts in the other body to tutions are trying to eliminate the will give greater significant to the include the language in my amendment California law with national legisla- Identity Theft Affidavit and to the col- in FCRA legislation during their nego- lection of information to combat iden- tion. tiations following Senate passage of S. I will spend just a moment on that tity theft crimes. 1753. It is important that we continue The National Consumer Credit Re- because it is important. Essentially, our coordinated efforts to ensure that the banks and financial institutions in porting System Improvement Act of Americans are financially literate, 2003 is one of the most important California worked with the State legis- which will encourage better decision- lature in crafting the Californlia law pieces of consumer legislation that we making by individuals, stronger fami- have seen in years. It is truly a bipar- that has an opt-out for affiliate shar- lies, better-functioning markets, and a ing. The reason they did so was because tisan bill that will enhance the funda- more secure future for our Nation. mental structure of our credit markets waiting in the wings was a well-funded The PRESIDING OFFICER. The Sen- initiative to pass an even stronger pri- as well as providing consumers with ator from California. vacy law. They knew the people of the necessary tools to use the credit AMENDMENT NO. 2054 California would pass that privacy law. markets and to protect against iden- (Purpose: To make an amendment regarding Senator Jackie Speier, who was the tity theft. I urge my colleagues to pass affiliate sharing) author of the California privacy bill, quickly this very important piece of Mrs. FEINSTEIN. Mr. President, on has sent Senator BOXER and I a letter. legislation. behalf of Senator BOXER and myself, as I will read two paragraphs from the let- Mr. AKAKA. Mr. President, I rise to well as Senators HARKIN, FEINGOLD, ter. speak about an amendment that I have DURBIN, LAUTENBERG, and NELSON, I ‘‘It has recently come to my atten- filed, but will not call up today in the send an amendment to the desk. tion that the financial services indus- interest of moving this legislation for- The PRESIDING OFFICER. The try has been criticizing the contents of ward, with regard to Title V of S. 1753, clerk will report. your amendment to S. 1753, sub- the Fair Credit Reporting Act, FCRA, The legislative clerk read as follows: stituting the newly-enacted and bill. I would like to thank my col- The Senator from California, [Mrs. FEIN- stronger California privacy standard on leagues, Senators SARBANES, ENZI, STEIN], for herself, and Mrs. BOXER, Mr. HAR- affiliate sharing in the ‘corporate fam- STABENOW, and CORZINE, for their dili- KIN, Mr. FEINGOLD, Mr. DURBIN, Mr. LAUTEN- ily of companies,’ as unworkable and gent work on Title V to establish a Fi- BERG, and Mr. NELSON of Florida, proposes an unreasonable. This same industry re- nancial Literacy and Education Com- amendment numbered 2054. cently called my California bill ‘work- mission. This commission will help tre- (The amendment is printed in today’s able and reasonable,’ specifically re- mendously toward coordinating the RECORD under ‘‘Text of Amendments.’’) moving their opposition to my measure myriad efforts of Federal agencies to Mrs. FEINSTEIN. Mr. President, the and lavishing praise upon it, even help- increase financial literacy in this coun- bill before the Senate in its current ing to gather votes. Industry made it try and creating a comprehensive na- form allows huge conglomerates, with clear that my bill met their work- tional strategy as an important blue- just limited restrictions on marketing, ability concerns, progress made with print to follow. to freely share vast quantities of per- their active participation. If my bill As a part of this effort, I believe its sonal customer information with com- was workable for industry in Cali- important to emphasize the need for monly owned companies even if a con- fornia, then why shouldn’t it be the na- public awareness about the importance sumer asks that the information not be tional standard?’’ of financial and economic literacy. My shared. ‘‘One industry representative stood amendment is similar to a bill intro- Let me list the types of information with me on that day and said my bill duced in the other body by the gen- we believe could be shared among com- ‘encompasses all aspects of the work- tleman from California, Representative panies that have common ownership— ability needed to ensure protection of DAVID DREIER, and cosponsored by sev- called affiliates—under the bill: Infor- consumers’ privacy,’ while another eral colleagues on both sides of the mation mined from your check and called it ‘a balanced measure that will aisle, that would establish a pilot na- credit card payments such as your po- provide meaningful privacy protections tional public service multimedia cam- litical or charitable contributions, to consumers while also addressing the paign to enhance the state of financial your magazine subscriptions, your liq- workability concerns.’ . . . Now the literacy in this country. It would au- uor purchases, the location and iden- story is different, as industry sees a po- thorize $3 million over 3 years for this tity of stores you frequent; the stocks litical opportunity to preempt Califor- purpose. you own and stock trading patterns; nia’s standard on affiliate sharing with My amendment differs in that it co- the cash you have in the bank; when a weaker one.’’ ordinates this public service multi- your certificates of deposit mature; I ask unanimous consent the entire media campaign with the Federal Com- how much you owe on a credit card and letter be printed in the RECORD.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.020 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13861 There being no objection, the mate- know there was some criticisms of the Prevention Act. Many of these provi- rial was ordered to be printed in the amendment. We have tightened it up. I sions he has incorporated in the bill on RECORD, as follows: think it will stand the test of scrutiny. the floor today, and I thank him. CALIFORNIA STATE SENATE, This amendment protects American I also thank Senator SARBANES. I October 24, 2003. consumers’ basic privacy rights. It cre- think his record on privacy is equally Hon. DIANNE FEINSTEIN, ates a national opt-out standard for af- impressive. He fought hard to create U.S. Senator, Hart Senate Office Building, filiate sharing. This would give con- the opt-out standards for nonaffiliated Washington, DC. sumers the choice of whether their per- third parties during enactment of the Hon. BARBARA BOXER, sonal information can be shared among U.S. Senator, Hart Senate Office Building, Gramm-Leach-Bliley financial services Washington, DC. unrelated companies in a corporate modernization law. I have the utmost DEAR SENATORS FEINSTEIN AND BOXER, I family of companies. respect for his work on privacy legisla- wish to thank you for your efforts on behalf Under the amendment, a company tion. He is a champion of consumer pri- of consumer privacy rights, and urge you to would have to notify a consumer that vacy. continue to do all that is possible to protect it intended to share the consumer’s in- The American people should know California’s hard-fought consumer privacy formation with unrelated affiliates and gains. this about both of these Senators. It is It has recently come to my attention that give the consumer the opportunity to just that Senator BOXER and I have a the financial services industry has been opt out of this sharing. If the consumer very strong view on the need to give criticizing the contents of your amendment does nothing, the institution is per- consumers this opt-out on affiliates. to S. 1753, substituting the newly-enacted fectly free to share the information. I also recognize this bill has a num- and stronger California privacy standard on This amendment is fully sensitive to ber of provisions I strongly support. It affiliate sharing in the ‘‘corporate family of the real-life demands of business. companies,’’ as unworkable and unreason- entitles every consumer to a free credit Where there is a legitimate business report. That is great. It creates fraud able. This same industry recently called my need for the information, this amend- California bill ‘‘workable and reasonable,’’ alerts. Great. It creates a national specifically removing their opposition to my ment provides exceptions to the opt- standard for truncating credit card measure and lavishing praise on it, even out. numbers on store receipts. That is helping to gather votes. Industry made it First and foremost, related affili- great. clear that my bill met their workability con- ates—which are defined as affiliates in I was delighted, because when I intro- cerns, progress made with their active par- the same line of business with the same duced identity theft legislation earlier ticipation. If my bill was workable for indus- functional regulator and with the same this Congress, the chairman and CEO try in California, then why shouldn’t it be brand name—are exempt from the opt- the national standard? A transcript of their of Visa, Carl Pascarella, came and held out. August 14, 2003, public comments bear this a press conference and indicated that Second, the amendment does not af- out and is attached. Visa was not going to wait for the bill, fect the ability of companies to have One industry representative stood with me they were going to go ahead and trun- on that day and said my bill ‘‘encompasses common databases with their affiliates cate all but the last four digits, in any all aspects of the workability needed to en- so long as the information is not event, on their credit cards. As of June, sure protection of customers’ privacy,’’ while accessed, disclosed, or used by the affil- all the new merchant terminals using another called it ‘‘a balanced measure that iate. This is one of the arguments they the VISA system—affecting tens of will provide meaningful privacy protections have raised that this exception is a big to consumers while also addressing the millions of Visa credit cardholders—do loophole. Answer, untrue. While a com- workability concerns’’ that industry had. have that truncation. Shortly, Visa mon database can exist, the amend- Now the story is different, as industry sees a will have all other stations truncating ment explicitly states that an affiliate political opportunity to preempt California’s as well. standard on affiliate sharing with a weaker cannot access or use the information in one. a manner inconsistent with the con- This morning Senator KYL and I held The financial services industry appears to sumer’s opt-out. a hearing on hackers getting into data be acting in bad faith—it seems willing to Third, to use consumer information bases and how you prevent that from say and do anything to erode California’s re- to complete transactions; fourth, to happening. Visa testified, and it is cent progress on behalf of consumers, first to clear they have taken this very seri- avoid a costly initiative battle and local or- protect against or prevent actual or po- tential fraud or identity; next, to com- ously with a very elaborate system to dinances limiting third-party sharing, now get at the problem and to use tech- to pull the wool over Congress’ eyes. Does ply with Federal, State, or local laws the financial services industry really believe and to do data processing, billing, or nology to solve it. that millions of American consumers don’t mailing. This amendment does not af- So all these provisions were included deserve a choice over what happens when fect the ability of affiliated companies in legislation that I have offered over their personal financial information, their fi- to do any of these six things. There are the last 4 years, and I am very grateful nancial DNA, is shared with thousands of af- a number of other standard exceptions. to both the chairman and ranking filiated companies? The industry’s position Before I go into detail describing the member, who are here on the floor, is flawed public policy, weaker than their that they have been incorporated into own standards abroad, and the kind of busi- amendment. I will spend some time ness practice that erodes consumer con- talking about the shortcomings of the this bill. So I say, thank you, Senator fidence. ‘‘National Consumer Credit Reporting SHELBY; thank you, Senator SARBANES. I urge you to continue your efforts in mak- System Improvement Act’’ with re- Now, I think, though, that some of ing California’s privacy standards those of spect to a person’s natural privacy and these needed provisions just become the nation. California’s affiliate standard why this amendment is needed. window dressing, if you really can’t was good enough for the financial industry At the outset, I recognize the author protect a person’s privacy. The affiliate two months ago; it certainly is acceptable sharing provisions of the legislation now. Thank you again for your efforts; I of the bill, Chairman Richard Shelby. stand ready to help you in any way possible. He has met with me and I am grateful would set that back because the infor- All the best, for that meeting. He has listened to my mation age is going to move ahead rap- JACKIE SPEIER, concerns. He has made longstanding ef- idly. That is one of the problems: Tech- California State Senator, 8th District. forts to balance the rights of individual nology finds a way of moving ahead so Mrs. FEINSTEIN. Mr. President, privacy with legitimate business needs. fast before we have a chance to see while I was in California, I met with I deeply respect the commitment of that there is an appropriate regulatory the CEOs of the major banks. It be- Senator SHELBY to consumer privacy. system in place. came very clear to me at that time It is well known. He deserves recogni- So the debate today over this bill is what they were going to do. They were tion for his work to strengthen the pri- really part of a great struggle over going to come back here and they were vacy provisions of the Driver’s Privacy whether Americans—ordinary Ameri- going to get a national standard that Presentation Act and for introducing cans—will have basic control over the clearly preempted the California opt- legislation to require an opt-in for af- most elemental parts of their identity, out. filiate sharing in the 106th Congress. and whether we can stop the misuse Incidentally, we have modified the In the 107th Congress, he joined me and commercialization of their most amendment I have sent to the desk. I as a cosponsor of the Identity Theft personal information.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.012 S04PT1 S13862 CONGRESSIONAL RECORD — SENATE November 4, 2003 Most Americans, I believe, consider What is an affiliate and why should pile vast dossiers on consumers to use their personal information their pri- we be concerned about the sharing of to their commercial advantage. An af- vate property. I do. I consider my information among affiliates? filiated company can call you up with health data my personal data, my fi- Affiliates are companies related by full knowledge of your financial his- nancial data my personal data. When I common ownership. As one example, tory and offer you credit cards, securi- do business with a bank, I do not ex- Travelers Insurance, Diners Club Inter- ties, loan consolidation, whether you pect to see my mortgages purchasable national, Citi Financial, and Salomon need it or not, and you have no way to on the Internet for $15 or $20. I do not Smith Barney are all affiliated compa- prevent the company from using your expect somebody to buy my Social Se- nies owned by Citigroup. So the types most intimate personal information. curity number over the Internet, or of businesses that financial institu- Consider the following case: Several anything of that kind. Nor do I expect tions can be affiliated with run the years ago, Nationsbank paid fines of $7 the bank with which I do business to gambit: insurance companies, so you million to the Securities and Exchange give my data to a thousand—and it can can be bugged by insurance companies; Commission and other agencies over its be a thousand—of their affiliates so securities brokerages; mortgage lend- sharing of confidential customer finan- their affiliates can contact me about ers; travel agencies; retailers; auto- cial statements and account balances traveling with them, investing with mobile dealers; collection agencies; fi- with affiliated securities firms. them, that they have a better scheme nancial advisers; tax preparation firms. Nationssecurities used the account in- than my checking account. I do not ex- I even think they buy them just for formation to identify those bank cus- pect that, and guess what. I do not this reason. tomers who had expiring certificates of think the majority of Americans do, ei- In 1999, Congress passed the Gramm- deposit. Sales representatives then ther. Leach-Bliley Act, which repealed por- marketed to these customers highly le- To give you a sense of the tions of the Glass-Steagall Act that veraged investments, mischaracteriz- groundswell of public support for pri- prohibited banks from entering into af- ing them as straightforward U.S. Gov- vacy, I would like to mention a survey filiations with other lines of business. ernment bond funds. Investors, 65 per- of California voters by Fingerhut So it became fair game. These financial cent of whom were over 60 years old, Granados Opinion Research on Feb- institutions have moved, in a major lost millions of dollars from this prac- ruary 7 of this year. way, to affiliate themselves with a tre- The statewide survey found that by a tice. mendous array of businesses. These in- massive 91-to-7 percent margin, Cali- While Nationsbank paid a fine for its clude insurance and securities fornia voters would favor a ballot prop- false and misleading sales practices, its brokerages, as I said, mortgage lenders, osition—and let me quote what it sharing of customer information was would say—that ‘‘would require a bank, ‘‘pay day’’ lenders, finance companies, perfectly legal under existing law. We a credit card company, insurance com- and on and on and on. need stronger laws to protect us from It could include investment advisers pany, or other financial institution to the potential predations of affiliate who are not required to register with notify a customer and receive a cus- sharing. Unfortunately, the Senate bill the Securities and Exchange Commis- tomer’s permission before selling any does not rise to this test. sion. These are not mom-and-pop com- financial information to any separate The 1996 Fair Credit Reporting Act financial or non-financial company.’’ panies. The top dozen U.S. banks and standard on affiliate sharing, which is, Mr. President, 91 percent would sup- financial institutions alone control for the most part, preserved in S. 1753, port an initiative to do just that. So thousands of health and life insurance is not a strong national standard. The they are supporting not opt-out, which companies, home mortgage companies, 1996 act permits financial institutions is a lower, lesser standard, but they are car loan lenders, housing develop- to share ‘‘transaction and experience’’ supporting opt-in when it comes to af- ments, securities brokers, and other information with affiliates without re- filiate sharing. Similar polls across businesses. strictions. This experimental standard this great land have reflected a land- Take a look at this. Citibank alone has proven vague and unworkable. slide of support by Americans for has 1,736 affiliates which they own. Even though the 1996 act has been in stronger privacy laws. They own a mortgage company, an in- effect for 7 years, no one can defini- In my 10 years in this Senate, I have surance company, a student loan cor- tively say what the terms ‘‘transaction never seen anything like it. There is a poration, Travelers Life and Annuity, and experience’’ information mean. groundswell out there, let there be no Diners Club International, and When I asked the CRS to explain the doubt. Salomon Smith Barney holdings. This FCRA standard, here is what they said: Here in the Senate we have taken becomes a veritable goldmine of infor- The [Fair Credit Reporting Act] does not some strong action to protect privacy mation trading for them, and the infor- offer a definition of a phrase, nor does the in recent months. In one day, the Sen- mation that is traded is your personal act provide any guidance with respect to ate drafted and passed a bill upholding information that lets an insurance what types of information may be included. the ‘‘National Do Not Call’’ list. Re- company, or a mortgage company, or Furthermore, none of the Federal bank regu- an investment banking company know lators, nor the Federal Trade Commission, cently, we passed legislation limiting have promulgated regulations regarding the e-mail spam. In each of these cases, where to go to get business. definition of ‘‘information solely as to trans- Congress accepted the near unanimous Morgan Stanley has 628 affiliates, in- actions or experiences’’ or what information will of the public that there should be cluding the Discover Card, Dean Witter may be included in such. limits on when and how commercial Realty, Southeastern Energy Corpora- Finally, discussions with industry rep- entities can invade ordinary Ameri- tion, and a number of insurance compa- resentatives did articulate a consistently cans’ privacy—be it at their homes nies. used definition of what constitutes a ‘‘trans- from telemarketing calls or on their Wells Fargo, headquartered in my action or experience’’ information. computers from endless e-mail spam. city of San Francisco, has 777 affili- In essence, both the House bill and These concerns are equally present in ates, including, again, a mortgage com- the Senate bill maintain an exemption the debate over affiliate sharing, ex- pany, Advance Mortgage, Dial Finance for the sharing of personal informa- cept the dangers to privacy are so Company, Pacific Rim Health Care So- tion, which nobody has defined. much more insidious. Americans are lutions, Tower Specialists, Norwest Seven years after passage of the 1996 fully aware of telemarketing calls be- Auto Finance, and Auto Risk Man- FCRA amendments, neither Congress, cause their dinners and evenings at agers. Again, a veritable treasure nor the Federal Trade Commission, nor home are interrupted by them. Ameri- trove, a goldmine for the sharing of any other agency has defined the term. cans are fully aware of spam because private, personal information. An empty standard is a nonenforceable their e-mail is clogged with them. In Bank of America has 815 affiliates, standard. I think America’s personal the case of affiliate sharing, most including T-Oak Apartments, Stanton privacy deserves better protection. Americans are not aware that their Road Housing, NationsBanc Insurance Consider again the sensitive informa- personal information travels from their Agency, and General and Fidelity Life tion which could be shared among un- bank to hundreds or even thousands of Insurance. By mining data from their related corporate affiliates if we allow other companies. affiliates, these corporations can com- the current standard to stand. This

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.035 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13863 chart refers to the information I have the floor. If I may propound a unani- sonally identifiable medical informa- just been over: an employee’s work his- mous consent request, the Senator tion shared throughout that holding tory, including performance ratings, from California is going to speak for company and shared with those who sick and vacation days, safety, whether approximately another half hour or would want to market that personally the consumer is a complainer or not, thereabouts. Following that, Senator identifiable medical information. can go out to all affiliates, your certifi- DURBIN and Senator MCCAIN wish to However, the underlying bill does not cates of deposit maturity dates, so speak on matters unrelated to the mat- protect on the personally identifiable somebody can contact you when that ter now before the Senate. To save a financial information, so that one part certificate matures; stocks you own, so lot of confusion, I ask unanimous con- of a holding company could have per- others can approach you. Then there sent that following the remarks of the sonally identifiable financial informa- are the personal things, such as polit- Senator from California, Senator NEL- tion such as how much you take out of ical contributions, charitable contribu- SON of Florida be recognized for up to 3 your ATM, what kind of purchases you tions, your magazine subscriptions. minutes; following that, the Senator make on your credit card, what time of Think about that. These companies from Illinois, Mr. DURBIN, be recog- day or what time of the week you go develop a personal profile on who you nized for up to 15 minutes; following and make deposits in your ATM or are and what you like, and then tell that, the Senator from Arizona, Mr. take out from your ATM. Those things other companies about you. Today, I MCCAIN, be recognized for up to 20 min- that are personally identifiable ought heard testimony at a Senate Judiciary utes. to be private unless the individual con- Committee hearing about someone who The PRESIDING OFFICER. Is there sumer says they are willing to have shopped at Victoria’s Secret who had objection? Without objection, it is so that information shared among the their personal information used in that ordered. holding companies. way. That is what this allows. Mr. MCCAIN. Mr. President, we usu- That is one of the things the amend- The collection of this information is ally go back and forth, I tell my friend. ment of the Senator from California not hypothetical. In Great Britain, un- Mr. REID. The Senator from Arizona addresses which, if we are going to like the United States, companies are wishes to go before Senator DURBIN? take privacy seriously, we need to ad- required by law to file a report with Mr. MCCAIN. Yes. dress. That is why I support the amend- the Government on the type of infor- Mr. REID. That is fine. I thought it ment of the Senator from California. mation they collect about consumers. was the reverse order. I ask that the I yield the floor. Here is what Citibank reported to the unanimous consent request be modified Mrs. FEINSTEIN. I thank the Sen- British Government about the type of so that Senator MCCAIN be recognized ator from Florida and I thank the information it was collecting about prior to Senator DURBIN. Chair for allowing this opportunity for British citizens for marketing pur- The PRESIDING OFFICER. Without the Senator to make a statement. I poses. I think it is likely they collect objection, it is so ordered. think he is referring to an amendment the same information about United Mrs. FEINSTEIN. Reserving the that I will introduce at a later time States customers. This information in- right to object. having to do with clearing up the cludes: personal identifiers, financial The PRESIDING OFFICER. The Sen- health definition in the bill. identifiers, identifiers issued by public ator from California is to be recog- The health definition in the bill is ar- bodies, personal details, habits, current nized. chaic. The vast majority of states have marriage or partnerships, details of Mrs. FEINSTEIN. Mr. President, the adopted more fully inclusive defini- other family, household members, Senator from Florida has asked if I tions, and we would like to have that other social contacts, accommodations would yield for just a short time before definition in the bill. or housing, travel movement details, I begin. Is that agreeable? Prior to the break for lunch, I was lifestyle, academic record, membership Mr. REID. That is in the unanimous beginning to explain why the bill be- of professional bodies, publications, consent order. It is up to the leader- fore us has a weak privacy standard on current employment, career history. ship. However, after Senator FEINSTEIN affiliate sharing. Specifically, the un- The PRESIDING OFFICER. The Sen- completes her statement and Senator derlying bill permits financial institu- ator’s time has expired. NELSON completes his statement, I tions to share a customer’s transaction Mrs. FEINSTEIN. Mr. President, I rather doubt they could do that, but and experience information with affili- am not aware of a time limitation. somebody could move for a vote prior ates with few, if any, restrictions. As I The PRESIDING OFFICER. There is to that time. I don’t suggest anyone stated, transaction and experience in- a previous order to recess for the policy doing so. It could happen. formation could include extremely sen- meetings at 12:30 p.m. The PRESIDING OFFICER. The Sen- sitive information about individuals Mrs. FEINSTEIN. Mr. President, I ator from California. such as their bank account balance and ask unanimous consent that I might be Mrs. FEINSTEIN. I thank the Chair. data mined from their check or credit permitted to continue when the Senate Mr. President, is it possible for me to accounts or where they buy goods. resumes. yield for 3 minutes to the Senator from If consumers cannot preserve the pri- The PRESIDING OFFICER. Without Florida? vacy of their bank balances or the objection, it is so ordered. The PRESIDING OFFICER. Without places they go to make purchases, they Mrs. FEINSTEIN. I thank the Chair. objection, it is so ordered. do not have meaningful privacy protec- f AMENDMENT NO. 2054 tions. That is the weak privacy stand- RECESS Mr. NELSON of Florida. Mr. Presi- ard that will become the national norm The PRESIDING OFFICER. Under dent, I rise to support the amendment if this bill passes the way in which it is the previous order, the hour of 12:30 of the Senator from California and to envisioned. p.m. having arrived, the Senate stands point out that I think the committee Supporters of the existing weak in recess until the hour of 2:15 p.m. has done a very good job on the under- standard argue that America’s credit Thereupon, at 12:30 p.m., the Senate lying bill. They address the question of environment has thrived since 1996. So recessed until 2:16 p.m. and reassem- medical privacy in the bill where a big they say, why mess with a system that bled when called to order by the Pre- holding company might have a sub- is working? I challenge that assertion. siding Officer (Mr. VOINOVICH). sidiary company, such as an insurance First, because transaction and expe- company, and an individual, when they rience information remains undefined. f get a life insurance policy, will have to As I pointed out before lunch, we asked NATIONAL CONSUMER CREDIT RE- get a doctor’s examination, so that in the CRS to look at current law. We PORTING SYSTEM IMPROVE- the bosom of that health insurance asked them how they would define MENT ACT OF 2003—Continued company would be medical records. ‘‘transaction and experience’’ informa- The PRESIDING OFFICER. The Sen- That health insurance company may be tion. They said it has never been de- ator from Nevada. owned by a bank. fined. So it is questionable whether Mr. REID. Mr. President, under the What the underlying bill does is pro- any privacy regime at all exists for the order, the Senator from California has tect against someone having their per- bulk of affiliate-sharing practices.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.038 S04PT1 S13864 CONGRESSIONAL RECORD — SENATE November 4, 2003 Secondly, identity theft has emerged My colleagues may hear during the a given bank. You think all these as a national epidemic in the last 7 debate on this amendment that the af- things are protected and in fact they years. Both the chairman and the filiate sharing problem is addressed be- are data-mining checks, where you go, ranking member of this committee cause S. 1753 allows consumers to opt who you are paying. This information have done their utmost and been very out of certain marketing solicitations is going out to a whole host of other receptive to trying to enact legislation by affiliates. companies, sometimes thousands of to prevent identity theft. I want to go into this because this companies. The Federal Trade Commission re- has been widely circulated by the fi- Some affiliates are offshore and cently published a study that sug- nancial institutions. Senator BOXER American consumer protection laws do gested 9.9 million Americans are vic- and I were just questioned about it at not apply to those countries. As United tims of identity theft every year. The a press conference we held. In truth, States companies continue to acquire cost is $50 billion annually. Studies these restrictions that they say are affiliates overseas, consumers may not have shown that much identity theft there are grossly inadequate, and they even be able to depend on existing con- occurs in the workplace. So increased barely scratch the surface of the prob- sumer protection laws to protect infor- affiliate sharing will likely facilitate lem. mation that is shared with an affiliate. this crime. Potentially, thousands of Let me describe some of the uses of Earlier this month, and many of us employees in affiliated businesses will affiliate sharing that the bill does per- read about it, a woman in Pakistan, have increased access to the currency mit. First, internal credit reports: The transcribing medical files for the Uni- of identity theft, and that is Social Se- bill permits companies to use trans- versity of California Medical Center in curity numbers and other sensitive action and experience information to San Francisco, threatened to post pa- identifying information, such as date create internal credit reports. tient medical records on the Internet and place of birth and mother’s maiden Martin Wong, general counsel of unless she was paid more money. While name. Citigroup’s Global Consumer Group, we have strict laws governing medical In her testimony before the Senate testified before the Senate Banking files in the United States, these laws Banking Committee, Vermont Assist- Committee in June that: are virtually unenforceable overseas. ant Attorney General Julie Brill di- Citigroup is able to use the credit informa- The Senate bill does not prevent af- rectly linked affiliate sharing to iden- tion and transaction histories that we col- filiated companies from accumulating tity theft. Here is what she said: lect from affiliates to create internal credit and sharing uncomplimentary informa- scores and models that help determine a cus- Many identity fraud cases stem from the tion about customers, such as if they tomer’s eligibility for credit. perpetrator’s purchase of consumers’ per- have filed for bankruptcy, do not pay sonal information from commercial data In other words, a bank can use trans- their credit on time, or complain a lot. brokers. Financial institutions’ information action and experience from its affili- This information can be used to push sharing practices contribute to the risk of ates to determine if it is going to unprofitable customers into a different identity theft by greatly expanding the op- charge a higher interest rate to certain tier of customer services. Example, portunity for thieves to obtain access to sen- credit card customers and give perks to where there are longer waits for a cus- sitive personal information. others or to deny a credit applicant a tomer representative, or eliminate the So that is what we are doing here. credit card. customer altogether. All of this hap- Now, this is a prosecutor who should In contrast to a traditional credit pens because of the ease with which know. This is what she deals with. So card report, a consumer has no right of this information can be shared among why broaden the scope and opportunity access to transaction and experience commonly held companies. for identity theft to take place? information used by a bank to deny Let me give an example. Business Assistant Attorney General Brill also him or her credit. Nor would a con- Week magazine has reported that cited work by researchers at Michigan sumer have any right to correct any er- Sanwa Bank gives A’s to its best cus- State University who studied 1,000 rors made in compilation of these in- tomers, but those whose profiles show cases of identity theft and found that ternal credit reports. So one can have they will generate less revenues get C’s 50 percent of the victims traced the their credit changed even without their from the bank. The bank tends to theft of information to an employee of knowledge. It can be wrong, and the charge those earning C’s more fees, and a company compiling personal data on person would not know about it. It all is more likely to put them on hold individuals. happens in this secret world of affiliate when they call in for service. This type Third, it is an open question whether sharing. of profiling certainly can occur in the affiliate sharing has offered any price Similarly, a health insurer could context of affiliate sharing. or service advantage to customers. Ac- deny a customer a health insurance or Even in the area of marketing, this cording to an article by Janet Gertz in life insurance policy based on trans- bill is grossly inadequate. It purports the San Diego Law Journal, there is action and experience information. For to give consumers the right to opt out some evidence that businesses use affil- example, a life insurer might reject an of the sharing of transaction and expe- iate sharing to extract concessions insurance applicant because of evi- rience information for marketing, but from consumers. Let me quote her: dence in his card or check transaction there are loopholes. The institutions By profiling consumers, financial institu- record that he visits liquor stores fre- are going around the Hill today, point- tions can predict an individual’s demand and quently, buys products at stores selling ing out they already do protect this. price point sensitivity and thus can alter the mountain climbing equipment and Let me talk for a minute about the balance of power in their price and value ne- therefore is at risk of injury, or has loopholes. The bill excludes companies gotiations with that individual. Statistics indicate that the power shift facilitated by purchased a gun. from the opt-out if they have a pre- predictive profiling has proven highly profit- These are just indications. These are existing business relationship with the able for the financial services industry. How- just areas. But you can see where this consumer. ever, there is little evidence that any of thing is going. Essentially, consumers What is a preexisting business rela- these profits or cost savings are being passed can be denied products or services and tionship? Your guess is as good as mine on to consumers. they will have no ability to determine because the bill doesn’t define it. Pre- Just recently, for example, the Fed- why the denial occurred. sumably, a bank could argue it has a eral Reserve issued a report on finan- The bill would permit prospective or preexisting relationship with a con- cial service fees and services showing current employers, without an individ- sumer if a consumer came into the that fees at larger institutions are gen- ual’s knowledge or consent, to mine in- bank 5 years ago to cash a check, or erally increasing and services are de- formation about the individual from even just made an inquiry about an ac- creasing. other affiliates with whom the indi- count. Additionally, if a consumer does So we are letting exist this whole vidual does business. This could be exercise the opt-out for marketing, area where businesses buy other busi- used for hiring decisions, disciplinary which is in the bill, the opt-out expires nesses just to share consumers’ data? action, job evaluations, or other em- after 5 years. At that time, affiliates And the consumer has no control over ployment purposes. Again, all of this can then start marketing again to the their personal data. That is wrong. goes on simply because you bank with customer.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.040 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13865 I find it disturbing that the sup- back here, all of a sudden it is sloppily Information sharing ‘‘necessary to porters of the bill want to permanently drafted. affect, administer or enforce a trans- preempt States from enacting stronger Diane Colborn of the Personal Insur- action requested or authored by the affiliate-sharing laws for credit report- ance Federation called the California consumer’’ or ‘‘with the consent or at ing purposes, but only think cus- bill ‘‘a balanced measure that will pro- the direction of the consumer’’ is ex- tomers’ preferences should be recog- vide meaningful privacy protections to cluded from the opt-out. nized for 5 years. consumers while also addressing the Our amendment has exceptions for Last, but perhaps most fundamental, workability concerns that our mem- affiliate sharing of personal informa- the Senate bill denies the consumer the bers and customers had.’’ tion that is necessary for companies to ability to define the parameters of his The California credit unions sup- effectively manage their operations. or her relationship with a company, ported this legislation and still do. I For example, for security purposes, in- and this, I think, is really important. thank them for their support. stitutional risk control, and to respond Under the current bill, when a con- This amendment offers businesses in to customer disputes or inquiries. sumer purchases a product from a California and around the country the Proponents for unrestricted sharing megacorporation, the consumer auto- chance to get a moderate, reasonable, of affiliate information argue that it is needed to solve identity theft. They matically, without his or her choice or uniform national standard on personal privacy. correctly point out that companies can consent, makes his or her information Under the amendment, companies track unlawful purchases or suspicious available to hundreds of companies. would be required to give consumers activity by monitoring unusual ac- Lawyers call this type of relationship, notice of their intent to share trans- count activity, change of address re- where one side has all the bargaining actions and experience and other infor- quests, and other suspicious behavior. power, an adhesion contract. Some mation with their affiliates. Consumers This amendment explicitly allows for courts rule these types of contracts in- would then have the opportunity to opt affiliates to share information ‘‘to pro- valid because they do not reflect arm’s- out—to say, I don’t want you to do it, tect against or prevent actual or poten- length negotiation and could result in or to do nothing at which point the in- tial fraud, identify theft,’’ et cetera. unconscionable terms for the con- formation could be shared. The com- In addition, the amendment has ex- sumer. pany would be notified and would give ceptions relating to a business, a merg- Our amendment is a substitute to the them, I hope, a choice of whether their er, a sale, a transfer; to comply with affiliate-sharing language in S. 1753. most personal information is shared Federal, State, or local laws; for Supporters of the underlying bill claim among affiliates. outsourcing functions with vendors the Government needs a viable na- This amendment would also allow such as data processing or billing; and, tional standard to ensure the efficiency closely related affiliates in the same to identify or locate missing and ab- of our credit market. This amendment line of business to share information ducted children, witnesses, criminals provides such a standard. It gives con- with each other. Specifically, compa- and fugitives, parties to lawsuits, par- sumers all across the country—in Ala- nies would not need to provide an opt- ents delinquent in child support pay- bama, in Maryland, in Kentucky, in out choice if one, the affiliate is regu- ments, organ and bone marrow donors, Colorado, in Washington—the oppor- lated by the same functional regu- pension fund beneficiaries, and missing tunity to have some say, some choice lator—an example of that is institu- heirs, or to report known or suspected in how their personal data is shared. tions that regulate financial service in- instance of elder or dependent adult fi- With the privacy of Americans more at stitutions such as the Office of Thrift nancial abuses; and an exception is also risk because of the latest technological Supervision and the Office of the carved out for the United States of developments and identity theft, with Comptroller of the Currency would be America PATRIOT Act. privacy invasions at its core becoming considered the same functional regu- I deeply believe that without this the fastest growing white-collar crime lator; two, the affiliate engages in the opt-out the National Consumer Credit in the United States, we believe strong same line of business. An example of Reporting System Improvement Act national standards are critical. that is the selling of securities, bank- would create a permanent and unwork- Our amendment reflects the terms of ing services, and insurance would all be able Federal standard that would set the California privacy law, which the considered independent lines of busi- back the privacy of personal informa- California Bankers Association just a ness; three, the affiliate shares a com- tion and allow sensitive personal data very short time ago called reasonable mon brand identification; and four, the to be moved through dozens, hundreds, and workable, and are now lobbying affiliate is a wholly owned subsidiary and, in some cases, thousands of other of the same company. companies. against. This amendment is quite simple. It is I read the letter of the author of the The amendment also has numerous other exceptions that were ironed out about consumer choice. California bill, which I think irref- I am puzzled at the ferocity with after 4 years of negotiation in Cali- utably states the turnaround the finan- which the financial institutions and fornia to meet the practical needs of cial institutions have done in this opt- the banks are lobbying against this business. The exceptions include the out provision. Jim Bruner of the Secu- amendment. They serve people. That is following: No. 1, information main- rities Industry Association stated at what they are there to do—serve peo- tained in common databases. This is the press conference announcing the ple. Shouldn’t someone know if this in- another false rumor that is being agreement on California law on August formation is being marketed within the spread on this bill. This amendment al- 14, just a short time ago: loophole? Shouldn’t someone have the lows employees of an affiliate to have ‘‘While we would have preferred a national opportunity to say, I don’t want you to standard,’’ [the California law] ‘‘encom- access to information maintained in a use my information? In fact, I think I passes all aspects of the workability needed common information system or data- to ensure protection of consumers’ privacy.’’ am going to change banks, if they do base so long as the information is not this. Find a bank that won’t do it. That And then they turned around and did accessed, disclosed, or used. would be my advice to everybody. a 180. That is the key. It doesn’t require I think consumers should be given Jamie Clark of the California Bank- new databases. It doesn’t mess up their the opportunity to tell a bank they ers Association said at the same press database. It just says you can’t access don’t want their information shared conference that the banks: it if the individual opts out. with other companies. This is America. ‘‘. . . have no objection to the measure This exception is necessary because We should have that freedom. We passing’’ and would tell its supporters to we don’t want to disadvantage compa- should have that right. If you vote for vote for the bill. nies that have streamlined operations Clark added: this amendment, Americans will. by combining databases and other in- Do I have a few more minutes? If I ‘‘We prefer a national standard so that you formation technology resources. On the could quickly set aside this amend- have a uniform operating environment.’’ other hand, this amendment still per- ment and send one other amendment to But they didn’t tell anyone in Cali- mits consumers to have a choice over the desk, I will not speak to it. fornia, which has just passed a new law whether information in the database I am happy to wait. I will yield the which provides opt-out, that they could can be used for secondary purposes. floor at this time and do it later. not live with the opt-out standard. This amendment, as the Gramm- Thank you very much. They did not come back here saying Leach-Bliley and California law, has an Mr. MCCAIN. Mr. President, I don’t the law was sloppily drafted. They exception for transactional uses of in- mind waiting a few minutes if the Sen- liked it then. When you do the law formation. ator from California wishes to proceed.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.042 S04PT1 S13866 CONGRESSIONAL RECORD — SENATE November 4, 2003 Mrs. FEINSTEIN. No. That is all because of the way they made their clear of politics. Putin himself made right. money. What has caused these three this same threat to the oligarchs in The PRESIDING OFFICER. Under Russian tycoons to be singled out are 2000; it is clear that his government is the previous order, the Senator from their activities in support of opposition carrying it out, and that Arizona has the floor. The Senator political parties and free media. In re- Khodorkovsky is the latest victim. from Arizona. ality, a concerted campaign to clean up Political assassinations also dem- U.S.-RUSSIA RELATIONSHIP Russian politics and society would onstrate the risk of speaking out Mr. MCCAIN. Mr. President, a creep- reach into every corner of the Kremlin against state power. Earlier this year, ing coup against the forces of democ- and every boardroom in Russia, but State Duma deputy Sergei Yushenkov, racy and market capitalism in Russia that is not happening. For better or for who had been investigating potential is threatening the foundation of the worse, there is a consensus in Russian connections between the 1999 Moscow U.S.-Russia relationship and raising society that the past should remain in apartment bombings and the start of the specter of a new era of cold peace the past as Russia moves forward. If the second Chechen war, was killed between Washington and Moscow. The Russian business and government lead- outside his Moscow apartment. State new authoritarianism in Russia is ers are in fact going to be prosecuted Duma deputy Yuri Shendoshokhtin, more than a test of America’s ability for their conduct a decade ago, then who had been looking into the role of to defend universal values that have perhaps the former KGB officer named the FSB in the Moscow bombings as taken shallow root since the Soviet Vladimir Putin who assisted Stasi well as a scandal surrounding the in- empire collapsed. It presents a funda- leaders and Eric Honnecker in oppress- volvement of FSB officers in illegal mental challenge to American inter- ing the German people should answer trade, was also killed in mysterious ests across Eurasia. The United States for his crimes. circumstances. Both crimes remain un- cannot enjoy a normal relationship, Mikhail Khodorkovsky’s arrest, like solved. In today’s Russia—as in Soviet much less a partnership, with a coun- the politically motivated indictments Russia, as in czarist Russia—the state try that increasingly appears to have of Berezovsky and Gusinsky, should be uses its power to suppress political dis- more in common with its Soviet and seen not as prosecution for financial sent. The arrest of Mikhail czarist predecessors than with the dealings done a decade ago—which Khodorkovsky fits in a long tradition modern state Vladimir Putin claims to would implicate thousands of Russian of political arrest and persecution aspire to build. businessmen and political figures—but stretching across the vast dictatorial On October 25, masked Russian secu- as part of a larger contest between the tundra of Russian history. rity agents from the FSB, the suc- forces of statist control and a liberal- Under President Putin, Russian citi- cessor to the KGB, stormed Russian oligarchic elite. Who wins will go a zens in Chechnya have suffered crimes businessman Mikhail Khodorkovsky’s long way toward determining whether against humanity at the hands of Rus- private plane during a stop in Siberia. Russia reverts to the traditions of its sian military forces. It was during Mr. He now sits in prison awaiting trial, czarist-imperial past or charts a new Putin’s tenure as Prime Minister in accused of tax evasion, fraud, forgery, course as part of an integrating, liberal 1999 that he launched the Second and embezzlement. Russia’s richest international order. The consequences Chechen War following the Moscow man, founder and chief executive of its of this struggle, for both the Russian apartment bombings. There remain most successful private company, a people and the world, will be profound. credible allegations that Russia’s FSB leader in incorporating Western prin- For the Russian people, President had a hand in carrying out these at- ciples of accounting and transparency Putin’s rule has been characterized by tacks. Mr. Putin ascended to the presi- into business practice, and a generous the dismantling of Russia’s inde- dency in 2000 by pointing a finger at donor to charity, Khodorkovsky had pendent media, a fierce crackdown on the Chechens for committing these committed what in the Kremlin’s eyes the political opposition, and the pros- crimes, launching a new military cam- is the worst crime of all: supporting ecution of a bloody war against paign in Chechnya, and riding a frenzy the political opposition to President Chechnya’s civilian population. The as- of public anger into office. Since then, Putin. Such an alternative center of cent of former KGB officers throughout between 10 and 20,000 Chechen civilians power could threaten the Kremlin’s su- Russia’s ministries and in the Kremlin have been killed and hundreds of thou- preme political control. has enabled Putin to use the long arm sands displaced by Russian security Upon assuming power in 2000, Presi- of the state to crush internal dissent, forces. At Putin’s direction, the Krem- dent Putin announced a now-famous silence opposing political voices, and lin recently stage-managed an ‘‘elec- ultimatum to Russia’s top business subdue free media. During the first tion’’ in Chechnya that put Moscow’s leaders, whose fortunes were made by Chechen war, more Russians got their hand-picked candidate in power. The acquiring control of Russian assets news from Vladimir Gusinsky’s inde- principal voters were Russian privatized at fire-sale prices in the pendent NTV than from state media. conscripts forced to serve in Chechnya. 1990s. President Putin said to them: Today, there is almost no free media in Moscow has made no effort to address stay out of political life and keep your Russia. Intimidation, coercion, assas- the political grievances of a population fortune, or risk it by engaging in polit- sination of journalists, and armed raids increasingly radicalized by the bru- ical activity. Most of the oligarchs by the security services have put most tality of Russian rule. Yes, there are chose to remain quiet. Three did not. independent media outlets out of busi- Chechen terrorists, but there are many Business tycoons Boris Berezovsky and ness. Beatings and assassinations of Chechens who took up arms only after Vladimir Gusinsky were forced into journalists recall not the new Russia the atrocities committed by Russian exile as a result of their support for op- but the dark legacy of the Soviet past. forces serving first under Boris position political parties and free Those independent media outlets that Yeltsin’s and then Putin’s orders. media. Mikhail Khodorkovsky actually remain feel forced to practice the kind In short, Mr. President, I am worried attempted to exercise basic political of self-censorship that characterized that what we are seeing in Mr. Putin’s freedoms guaranteed, in theory, for all the Soviet Union. Today, most Rus- government is a continuation of 400 Russians. He has been thrown into jail sians who read newspapers or tune into years of autocratic state control, and as a result. television or radio hear only the voice repression. Since the end of the Cold Admittedly, Messrs. Gusinsky, of the Russian state—as they did under War, many Western observers have op- Berezovsky, and Khodorkovsky may totalitarian rule. timistically argued that the way Rus- not provide to proponents of democ- In a land where financial support for sia is governed has fundamentally racy and free markets in Russia the opposition political parties comes changed. Sadly, this appears not to be most laudable personal histories upon largely from business, the arrest of Mi- true. Whether ruled by the czars, Sta- which to wage a resolute defense of our khail Khodorkovsky, like the indict- lin, Brezhnev, or Putin, the Russian democratic principles. But failure to ments of Berezovsky and Gusinsky, state has remained supreme within defend them would acknowledge ex- sends a chillingly clear message to Russian society. It seeks fundamen- actly what the Kremlin cynically al- Russia’s business community that tally to control society, not to answer leges: that they are being prosecuted their assets are safe only if they steer to it. The people serve the government,

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.045 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13867 not the reverse. This is not the behav- ence and submission, if not outright a similar pattern of behavior. I will op- ior of a modern European nation; it is control. On October 9, Russian Defense pose any effort to repeal Jackson- a form of unenlightened despotism Minister Sergei Ivanov declared that Vanik as long as Russia is moving in cloaked in the mantle of international Russia reserves the right to intervene the wrong direction. respectability, which Russia derives militarily within the Commonwealth To any American businesses contem- principally from its relations with of Independent States in order to settle plating investment in or trade with other great powers—particularly the disputes that cannot be resolved Russia, I would simply say that this is United States. through negotiation. At the same press not a place where the rule of law and The ascent of former KGB officers to conference, President Putin declared Western codes of conduct prevail. You positions of power throughout the that the pipelines in Central Asia and invest at your peril. Many Members of structures of the Russian state under- the Caucasus carrying oil and natural Congress have heard from U.S. busi- scores this trend. Apparently KGB vet- gas to the West were built by the So- nessmen who have lost money in Rus- erans Igor Sechin and General Viktor viet Union, and said it is Russia’s pre- sia due to the absence of the rule of Ivanov, both deputy chiefs of presi- rogative to maintain them in order to law. The American business commu- dential administration in the Kremlin, protect its national interests, ‘‘even nity should consider itself warned: the masterminded the assault on Mr. those parts of the system that are be- Kremlin’s recent behavior is a clear Khodorkovsky. I would like to con- yond Russia’s borders.’’ In the runup to signal that your investments are not gratulate the KGB for arresting one of the war in Afghanistan, President safe. I call on my own Government, in- the most pro-Western business figures Putin was given great credit for ‘‘al- cluding the Export-Import Bank and in Russia today—someone whose per- lowing’’ the United States to use the the Overseas Private Investment Cor- sonal and corporate behavior, through military facilities and airspace of sov- poration, to cease all guarantees of in- charitable giving and adopting Western ereign countries in Central Asia. But vestment in Russia due to the unac- standards of business, have brought Russia has no more right to speak for ceptable risk of state interference and more credit to Russia in the last three these countries than we do. The Putin expropriation, as demonstrated by the years than anything the Russian gov- Doctrine, asserting a right to imperial Russian Government’s actions. Amer- ernment has done. Meanwhile, the FSB intervention in Russia’s ‘‘near- ican taxpayer dollars should not be has been unable to solve the murder of abroad,’’ coupled with the ascendancy used to subsidize U.S. investment in leading independent journalists. It has of the FSB, recalls a discredited Rus- Russia as long as the rule of the FSB failed to bring to justice any suspects sian imperial past whose victims num- prevails over the rule of law. Clearly, in personal meetings, the in the murder of democratic politi- ber in the millions. Russia’s assertion President of Russia attempts to reas- cians. It has not been able to identify a of political control over its neighbors sure the President of the United States single case of corruption inside the speaks not to a modern vision of Rus- that he is a fellow democrat. An accu- Russian government. Not a single Rus- sian reform and renewal, but appears mulation of evidence forces me to draw sian has been held to account for com- to reflect a czarist impulse to domi- the opposite conclusion. I hope I am mitting crimes against humanity in nate neighboring populations. It is the wrong, but I am increasingly concerned the Soviet Gulag. The FSB can’t do international dimension of rising state that in Mr. Putin’s soul is the con- any of that—but it can arrest Mikhail control at home. tinuity of 400 years of Russian oppres- Khodorkovsky. What brave men they The dramatic deterioration of democ- sion. Under President Putin’s leader- must be to kick down the doors of a racy in Russia calls into question the ship, Russia looks to the West for pros- private airplane and arrest an unarmed fundamental premises of our Russia perity, technology, and modernity, but man. policy since 1991. American leaders seems to be striving in every way to The FSB’s dominance in the Russian must adapt U.S. policy to the realities keep the values of the West out of Rus- Government has renewed the specter of of a Russian Government that may be sia. Far from having a vision for Russia the imperial temptation that has guid- trending towards neo-imperialism in which democracy and freedom and ed Russia’s external relations for cen- abroad and authoritarian control at the rule of law thrive, I fear President turies. For too many of Russia’s neigh- home. It is time to face unpleasant Putin may have a vision for Russia in bors, it is like the old Beatles song: facts about Russia. Russia is moving in which the capricious power of the po- ‘‘Back in the USSR.’’ Under President the wrong direction—rapidly. While the lice at home, and the menacing weight Putin, Russia has refused to comply United States undertakes a necessary of subversion and intimidation abroad, with the terms of the Treaty on Con- and comprehensive review of our pol- guide the state. Administration policy ventional Forces in Europe. Russian icy, I believe Russia’s privileged access must recognize the cold realities of troops occupy parts of Georgia and to critical Euro-Atlantic institutions Putin’s Russia. Moldova. Russia has effectively an- should be suspended. This access was The responsibilities that follow from nexed the Georgian province of obtained with the understanding that this are clear: it is time for a hard- Abkhazia, which it has occupied for a President Putin was committed to free headed and dispassionate reconsider- decade. Moscow has supported at- markets, the rule of law, pluralist de- ation of American policy in response to tempts to overthrow neighboring gov- mocracy, journalistic freedom, and the the resurgence of authoritarian forces ernments that appear too independent lawful constraint of the intelligence in Moscow. It is time to send a signal of Russia’s embrace. Russian naval and security services. These now ap- to President Putin’s government that forces recently attempted to assert pear to be false premises. undemocratic behavior will exclude control in the channel connecting the The Russian Government is not be- Russia from the company of Western Sea of Azov and the Black Sea from having in a manner that qualifies it to democracies. The wholesale suppres- Ukraine. Russian secret services are belong in the club of industrialized de- sion of free media and political opposi- credibly accused of meddling in elec- mocracies. The United States is tion cannot be ignored. American pol- tions in Azerbaijan and Georgia. Rus- hosting the next G–8 Summit at King icy must reflect the sobering conclu- sian agents are working to bring Island, Georgia, in June 2004. Russia sion that a Russian Government which Ukraine further into Moscow’s orbit. has been invited to participate and has does not share our most basic values Russian support sustains Europe’s last been working its way in, but President cannot be a friend or partner and risks dictatorship in Belarus. And Moscow Putin’s conduct at home and abroad defining itself, through its own behav- has attempted to cynically manipulate has worked Russia out. Putin’s Russia ior, as an adversary. Latvia’s Russian minority and enforced should have no place at the next G–8 Mr. President, I thank the forbear- its stranglehold on energy supplies into Summit. ance of my colleagues. I yield back the Latvia in order to squeeze the demo- Congress should not consider the re- remainder of my time and yield the cratic, pro-American government in peal of the Jackson-Vanik amendment floor. Riga. for Russia. It would be incomprehen- The PRESIDING OFFICER (Mr. Under President Putin, Russia has sible to consider easing a law created CRAPO). Under the previous order, the pursued a policy in its ‘‘near abroad’’ in response to Soviet repression when Senator from Illinois is recognized for that would create an empire of influ- the Russian Government is continuing 15 minutes.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.047 S04PT1 S13868 CONGRESSIONAL RECORD — SENATE November 4, 2003 Mr. DURBIN. Thank you, Mr. Presi- said, ‘‘He was very generous, very pa- generous, very patient with people,’’ Marcus dent. I appreciate the indulgence of tient with people. I just loved being said, adding, ‘‘I just loved being with him. He Chairman SHELBY and Senator SAR- with him. He was my favorite person in was my favorite person in the whole world.’’ Besides his two brothers and father, he is BANES for this opportunity. the whole world.’’ survived by his mother, a stepmother, a step- Mr. SARBANES. Will the Senator I ask unanimous consent that these brother and stepsister. yield to me for just 30 seconds? articles of tribute to Brian Slavenas be MAY HAVE SAVED LIVES Mr. DURBIN. Yes. printed in the RECORD. Brian, a member of the Peoria-based 106th Mr. SARBANES. Mr. President, we There being no objection, the mate- Aviation Unit, was activated in February are having two major statements on rial was ordered to be printed in the and had been serving in Iraq since April, said unrelated issues. We have an amend- RECORD, as follows: Brig. Gen. Randal Thomas, adjutant general ment pending. We are trying to work [From the Chicago Sun-Times] of the Illinois National Guard. He had been certified to fly the CH–47 Chinook helicopter through these amendments. We think (By Dave McKinney) there is an opportunity to dispatch since 2002 and was flying at 150 mph at about His brothers and his father served in the them in good order. So I certainly en- 200 feet off the ground when it was shot down military, but when 1st Lt. Brian Slavenas near Fallujah, Iraq. Thomas told reporters in courage people who want to speak on was called to active duty earlier this year, Springfield. the pending Feinstein amendment to his family tried to discourage him from ship- ‘‘We’re thankful that a number of individ- come to the floor so they can be heard ping out. He could have resigned his commis- uals survived that crash. It would be specula- and we can complete that debate and sion in the Illinois Army National Guard and tive to say the pilot did his job and got that then move to a vote on or in relation- skipped the deployment that carried his aircraft down and saved lives, but I’d sure ship to that amendment and then fol- aviation unit to Iraq, Despite his family’s like to believe that,’’ Thomas said. low on with the other amendments and concerns, the 30-year-old helicopter pilot The Slavenas brothers say they’re upset who had graduated from college a few the Army wasn’t taking more precautions to move this bill toward completion. months earlier decided it was his duty to go protect the slow-moving Chinook helicopters I know there is no one in the Cham- overseas with his outfit. On Monday, rel- from missile attacks like the one that killed ber wishing to speak now, and we cer- atives gathered at the family home in the Brian. Since the attack, the military has tainly think the Senator from Illinois tiny farm town of Genoa to mourn his death banned Chinook flights during the day be- ought to be able to offer his statement, spoke with pride—and some regret—about cause the choppers are too vulnerable. ‘‘I so this is not directed at him. I want to his decision to continue a family tradition of support our military. The only thing I ques- certainly assure him of that. But as we military service. tion is the tactics that were used in this sit- proceed, thereafter, if we could follow Brian Slavenas died Sunday when his CH– uation,’’ Eric said. ‘‘Someone should have 47 Chinook helicopter was shot down by had enough foresight to see ahead that a along, I think it would be very helpful. shoulder-fired missiles in a attack that lumbering aircraft that only flies 180 miles The PRESIDING OFFICER. The Sen- killed 16 U.S. soldiers. ‘‘We know he didn’t an hour makes a good target.’’ ator from Illinois. have to be there. But he chose to go and to Saying he ‘‘just didn’t believe this was our HONORING AND PROTECTING OUR ARMED FORCES serve his country,’’ said his oldest brother, war,’’ Marcus isn’t sure the conflict was Mr. DURBIN. Mr. President, Amer- Eric Slavenas, 39 a U.S. Army veteran who worth his younger brother’s life. ‘‘Person- ica’s burden in Iraq grew heavier over participated in the invasion of Grenada in ally, I wish these people in Iraq well, but I the last 7 days. In that period of time, 1983. ‘‘I miss him. I wish he were still here,’’ don’t care about them like I do about my brother,’’ he said. ‘‘I think maybe I would 27 American servicemen were killed Eric added. ‘‘But I’m not going to go against his decision. I back him 100 percent.’’ like to see American military used to defend and 35 wounded. We were awakened to Brian wasn’t eager to go to Iraq when he America and not police the entire world.’’ newspaper headlines on Monday morn- left in April, other family members said. He And he regrets not trying harder to keep ing of: ‘‘U.S. Copter Hit, With 16 Dead.’’ had completed study at the University of Il- his brother from going to Iraq. On Sunday, I received the sad news linois at Urbana-Champaign in December ‘‘We all very strongly encouraged him not that the National Guard helicopter with an engineering degree and was eager to to go,’’ Marcus said. ‘‘In retrospect, I’m which was downed was attached to the get on with his career. Still, he felt obligated going to kick myself—I wish I would have tried harder. 82nd Airborne Division and piloted by to go overseas with his unit. ‘‘He wasn’t keen 1LT Brian Slavenas from Genoa, IL. It on the idea but he said, ‘Once you’re in, you can’t cop out,’’’ said his dad, Ronald [From American Morning (CNN), Nov. 4, was shot down by a surface-to-air mis- Slavenas, a former Army paratrooper who 2003] sile near Falluja in Iraq. later served for a time with Brian in the INTERVIEW WITH FAMILY OF DOWNED Press accounts report that the mis- same Illinois National Guard unit. HELICOPTER PILOT sile was likely a heat-seeking missile DRAWN BY HISTORY, ADVENTURE SOLEDAD O’BRIEN, (CNN Anchor). There was more violence in Iraq this morning. An- because it hit the engine, but, thank- During his time overseas, Brian’s letters, other soldier was killed, the second in as fully, it did not explode. The helicopter calls and e-mails home were usually upbeat many days. The soldier was killed after an went out of control, and First Lieuten- and often funny, his family said. Brian liked improvised explosive device, or an IED, ex- ant Slavenas clearly did the best he the adventure of being overseas in such an ploded in Baghdad. Another U.S. soldier was exotic location, Eric said, recalling that in could at crash-landing the crippled air- wounded in that blast. craft. Quite possibly he saved the lives one letter Brian described how he sipped a The attacks followed Sunday’s downing of of those who survived. Sadly, he did glass of Tang as he flew over the ancient a U.S. helicopter near Fallujah, the deadliest not. ruins of Babylon. ‘‘He enjoyed the sights he single attack on U.S. forces since the inva- This morning, I called the Slavenas saw, being in such a historic part of the sion. According to eyewitnesses, the second world,’’ Eric said. ‘‘He knew it was dan- family expressing my sympathy for the of two shoulder-launched missiles hit the gerous, but it was more of an adventure for CH–47 Chinook, as it flew just a few hundred loss of their son. I have read the press him.’’ At times, Brian talked of possibly accounts about his short but eventful feet above the ground. The missile struck staying in the military as a career, in part the rear engine and started a chain reaction and full life and the love which his because he loved flying. ‘‘I think during the that caused the helicopter to crash. family and so many others had for him. war, he got gung-ho about what he was Most of the soldiers were heading out to This morning I heard interviews on doing,’’ said his brother, Marcus Slavenas, a begin a two-week leave when the chopper National Public Radio of his friends 33-year-old former U.S. Marine who served in was shot down. Sixteen soldiers were killed, talking about a great young man—this Operation Desert Storm. and among them was the pilot, First Lieu- Brian had already served a stint in the 30-year-old helicopter pilot. He had just tenant Brian Slavenas, a member of the Na- Army, joining after he graduated from tional Guard from Peoria, Illinois. graduated from college a few months DeKalb High School, where he played drums A little earlier today, I spoke to his family ago. He enlisted in the Army right and threw the discus. After finishing active about their loss. after high school and, having com- duty, he joined the National Guard, then Mr. Slavenas, if I can begin with you. pleted that stint, he enlisted in the Na- went to officer school and became a heli- Brian actually could have avoided deploy- tional Guard and went to officer train- copter pilot. Along the way, he also obtained ment, but he chose not to. Tell me why. ing school and he became a helicopter a private pilot’s license and earned his de- RONALD SLAVENAS (Father of Chinook pilot. He earned a degree in engineer- gree from the U. of I. Although he stood a Pilot). Well, that’s the kind of person he is. towering 6 foot 5 inches tall, Brian was a He’s a responsible person, and he took on ing from the University of Illinois. Al- ‘‘gentle giant,’’ according to his father. He something and he brought it to completion. though Brian stood 6 feet 5 inches tall, was an accomplished pianist and dedicated That’s the nature of Brian. He may not like he was a gentle giant. He was an ac- weight lifter who could get along with just the idea, but he followed it through, and I’ve complished pianist. His brother Marcus about anyone, his brother said. ‘‘He was very got to do it, and he did it.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.048 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13869 O’BRIEN. I read that he felt obliged to serve [From the Chicago Tribune, Nov. 4, 2003] associated with this story. I have his country. He was a helicopter pilot in the FOR FAMILIES, SAD NEWS HITS HOME learned within the last 24 hours that National Guard. (By Russell Working and Angela Rozas) all of the Chinook helicopters in the Marcus, why don’t you tell me a little bit One soldier was going to visit his wife and 106th unit, of which Mr. Slavenas was a about your brother, the person, not nec- three children, the youngest of whom he had part, consist of seven helicopters from essarily the military man? never met. Another was on his way home to the Illinois National Guard and seven MARCUS SLAVENAS, (Brother of Chinook attend his mother’s funeral. A third wanted Pilot). Not just because he was my brother, from the Iowa National Guard. All of to surprise her family in California with a these helicopters do not have the air- but he was really one of the best people I’ve two-week visit. ever known. Very clean living, very dedi- On Monday, the Department of Defense craft survivability equipment required cated to what he did. If he decided to do began releasing the names of the 16 soldiers to protect them from the very threat something he did it. He focused on it and did killed when a transport helicopter was shot that brought down this helicopter on it until he was excellent at it. He was very down in Iraq, marking the single largest loss Sunday. kind to people. He was a good person. It was of service members in that country since This is a recurring and troublesome not based on some rules. It wasn’t based on major combat ended in the spring. Another issue. We have heard time and again religion. It’s just the way he was. He cared 20 soldiers were injured. Many of the dead about National Guard forces which are about those around him and tried hard al- had been heading home for vacation or emer- activated and then shortchanged when ways to do his best. gency leave. Around the country, families it comes to the best equipment. We ex- O’BRIEN. Tell me—I know that he recently that had been anticipating happy reunions finished school. He’d gone to school for engi- instead were stunned by unexpected loss. As pect the most updated equipment to be neering. Give me a sense of what his plans of Monday evening, 377 U.S. service members given to the units that are in the fight. were and his dreams were further down the had died since military action began in Iraq. We understand that Active Duty troops road. In that time, more than 1,836 have been in- must receive what they need. But con- UNIDENTIFIED MALE. Well, we felt that jured as a result of hostile action. sider where we are in the war in Iraq. Brian was probably going to get out of the Among those killed Sunday in the crash It is supposedly a complete and seam- military and pursue a career in engineering. was 1st Lt. Brian Slavenas, 30, an Illinois Air less integration of National Guard, Re- He had a very promising career ahead of him. National Guard pilot from Genoa who was serves, and Active Duty forces. We ex- one of two pilots on the twin-rotor CH–46 He did well in his field. I know there were a pect the National Guard, under these lot of companies that wanted to interview Chinook that was shot down Sunday. Four him. So, we were hoping and we all felt that crewmembers, also National Guardsmen, circumstances, to receive the nec- he was going to continue on with the engi- were from Iowa. They were injured, but sur- essary upgrades in the war theater. neering. vived the crash, said Illinois National Guard These Chinook helicopters are sup- O’BRIEN. Mr. Slavenas, when you first saw spokeswoman Lt. Col. Alicia Tate-Nadeau. posed to be equipped with one or more the reports—I have to imagine you saw the One of the Iowans was the senior pilot of the protective systems, such as the ALQ– reports before you heard the news that it was aircraft, but it was unclear whether he or 156 system, to detect surface-to-air Brian who was actually piloting this chop- Slavenas was flying the Chinook when it missiles, along with an automatic flare per. What was your reaction to this? And I’ve crashed, she said. Some 120 members of dispenser as a countermeasure. They got to ask you, did you think after a certain Slavenas’ unit, the Peoria-based F Company of the 106th Aviation Battalion, are now de- are also supposed to be equipped with amount of time that it was indeed your son seat armor to protect the pilot and who was among the lost? ployed in Central Iraq. Another 85 Guard sol- crew. R. SLAVENAS. Well, it crossed my mind. I diers are deployed from an aviation unit thought he was further west of the area of housed in Davenport, Iowa. What I have learned within the last Slavenas was a dedicated student who fol- where it happened, but he’s been flying 24 hours, from reliable military sources lowed his father and two older brothers into around all over Iraq, I guess, to Kuwait and familiar with the situation on the the military. He was so unassuming it took back and forth. The Chinook is like a shuttle ground in Iraq, is many of the Illinois him a week to tell his family he had recently service for different units. He was flying sup- and Iowa National Guard helicopters been promoted to first lieutenant, said his port for different outfits. The last one for the father, Ronald Slavenas. His unit arrived in have flown for almost 6 months in the 3rd Armored Calvary, and I thought he was the Persian Gulf in mid-April, and had been theater without the necessary aircraft further west. So, that was my kind of hope based in Balad, Iraq, since July 22, said Chief survivability systems. Some of them that maybe that wasn’t Brian, but then later Warrant Officer Ty Simmons, operations of- have received systems, some partial on we found the news that it was Brian, ac- ficer for the company. On Monday, they were systems, but only within the last week tually. grieving Slavenas’ death and hoping for the O’BRIEN. You served in the military, sir, or two, many of the systems have been recovery of the helicopter’s crew, he said. scavenged from departing Guard units and your three sons all served in the mili- The crews spend their days flying over cen- tary as well. What are your thoughts about tral Iraq, a dusty desert region better known from other States that are leaving the U.S. involvement in Iraq and the occupa- as the Sunni triangle, where they move ev- Iraq. Many of the helicopters don’t tion of Iraq right now? erything from Humvees and generators to have seat armor. There are reports R. SLAVENAS. Well, now that we’re in, we drinking water and soldiers on leave. During that the radios don’t function properly. have to stay the course. We just can’t pull missions, they fly fast and low, seeking to Reliable military sources have told me out. If we pull out, we’ll have pandemonium. make themselves a more difficult target as and my office about the level of protec- They have so many different factions in they navigate dust clouds, high-tension elec- Iraq—the Sunnis, the Shiites, the Kurds, and tion for our helicopters in Iraq and tric lines and tan-colored towers that blend what they tell me is unacceptable. what have you. And if we pull out now with- into the background of the desert, Simmons out stabilizing the situation, we’ll have, as I said. They tell me of helicopters ill equipped said before, pandemonium. It would be a rev- Brian Salvenas deployed with the unit to to deal with the threat of shoulder- olution. That’s my feeling. the Middle East in March. Four months ear- fired missiles; units scavenging equip- So, we have to keep a stabilizing cap over lier, he had received a bachelor’s degree in ment from helicopters leaving the the- it and hopefully getting more help from industrial engineering from the University of ater to secure the protective gear they other nations and other sources. Illinois, said his mother, Rosemarie Dietz need. They report on helicopters flying O’BRIEN. Marcus, you served in the mili- Slavenas, who lives in Rockford. He studied without seat armor to protect the pilot tary as well, and I know you have strong piano in high school and ‘‘played beautiful, opinions on this. beautiful Chopin nocturnes,’’ his mother and crew, and of helicopters flying M. SLAVENS. Yes. said. without equipment designed to protect O’BRIEN. What’s your take on U.S. involve- On Sunday, Ronald Slavenas thought of his them from known infrared missile ment in Iraq right now? son as he listened to reports of a helicopter threats; Guard units scrambling to find M. SLAVENAS. I don’t believe we need to be crash in Iraq, and watched through the front the parts necessary to equip their craft there. I wish the Iraqis well, and I hope they curtain as a uniformed man arrived on the with protective gear. Is this how we can figure out their problems, but I don’t doorstep of his two-story brick home in equip our men and women who are Genoa. ‘‘My heart sank,’’ he said. ‘‘I opened want this to happen at the expense of our called to active duty? boys. I would like to see them come home. the door and said ‘He’s dead, right?’’’ On Monday, an American flag hung in the Today I am asking Secretary Rums- And as far as the troops go, while they’re feld to see to it the helicopters in the still there, I’m fully behind them. Fight as rain from the second floor of his house. hard as you can. Destroy the enemy and keep ‘‘Brian was just a real perfectionist,’’ said theater are provided with the aircraft yourselves alive and come back home. But as Slavenas’ brother Eric, 39. ‘‘He wasn’t a survivability equipment necessary to far as the government is concerned, please gung-ho, go-to-war kind of guy.’’ meet the expected threat. If that equip- try to get out of that business and bring Mr. DURBIN. Mr. President, there is ment is not available, I believe Sec- them back home as soon as possible. another very important issue that is retary Rumsfeld should protect those

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.050 S04PT1 S13870 CONGRESSIONAL RECORD — SENATE November 4, 2003 units until they are properly equipped effective against other missiles in the To those who want to speak on the or reassess when and where they will theater. pending amendment, we hope you will fly. I am also asking the Secretary if come to the floor and do so. We hope I ask unanimous consent that this that ALQ–156 is adequate for the ex- others who have amendments they letter I am sending to Secretary Rums- pected threat in Iraq. If not, I would want to offer will be prepared, once we feld be printed in the RECORD. like to know when the helicopters will dispose of the current amendment, to There being no objection, the mate- receive the upgraded equipment and his present their amendments so we can rial was ordered to be printed in the assessment of the risk to military per- move along. RECORD, as follows: sonnel of flying without such upgraded There is a possibility I think we can DEAR MR. SECRETARY: We are concerned equipment. finish this bill in good order. I know about reports that the CH–47 National Guard I find the reports I am receiving from that is what everyone would like to ac- helicopters attached to the 82nd Airborne Di- military sources about the lack of pro- complish. I know Chairman SHELBY is vision, the unit which included the heli- tective equipment on these helicopters anxious to, on the one hand, move copter shot down by a surface-to-air missile to be alarming and unacceptable. We things along and, on the other hand, in Iraq on Sunday, may not have had nec- know what a dangerous environment ensure people have an opportunity to essary or fully complete aircraft surviv- address these matters. In order for ability equipment. As you know, 16 military Iraq is. The threats from surface-to-air personnel died in that attack, including the missiles were well known even before them to do that, we need them to come pilot, First Lieutenant Brian D. Slavenas, this tragic crash. The helicopter that to the floor, so we are putting out that from Genoa, Illinois. The helicopter was was shot down was not on a mission di- call. from the Iowa National Guard. rected against regime remnants or ter- Mr. REID. Will the distinguished We understand that, while Guard units rorists. It was transporting soldiers to Senator from Maryland yield for a that are activated may leave the United the airport in Baghdad so they could question? States without all the necessary equipment, leave for R&R. Mr. SARBANES. I am happy to yield they are to be upgraded in theater. Sources to the distinguished leader for a ques- tell us that a number of the helicopters in We will not know for sure how it was shot down or how it was equipped until tion. the unit in question were flying in Iraq for Mr. REID. My concern with this leg- almost six months without necessary equip- the investigation is completed. This islation is not as much the legislation ment, and were only recently provided air- tragedy highlights the fact that protec- itself as it is that Thanksgiving is com- craft survivability equipment, some of which tive equipment cannot only be reserved ing soon. We don’t have the luxury of was not complete. Some may still be lacking for missions in the fight. Every mission waiting for days. This legislation could this equipment. is in the fight in Iraq today. First, we ask that you immediately ensure take days with the order that is now in The Senate passed the Iraq supple- that the helicopters in theater are provided effect in the Senate. We have more mental appropriations conference re- with the aircraft survivability equipment than 20 amendments. If we take several port yesterday with more than $87 bil- necessary to meet the expected threat. If hours on each amendment, we are not lion for equipment for our troops in that equipment is not available, you should going to finish this week. I ask that protect those units until they are properly Iraq. If the funds are not adequate to those people—Senator FEINSTEIN was equipped, or re-assess when and where they protect our troops and aircraft, the here and she has indicated on her next will fly. Congress must be advised immediately. two amendments she would take a half We ask that you investigate, and respond If there is a shortage of equipment, we as soon as possible, whether the helicopter hour on each. that was shot down on Sunday had on board must act immediately to secure it. I ask the floor staff, when they have a fully-operational ALQ–156 system with an The dangers of war are well docu- an opportunity, we probably should automatic flare dispenser and whether it had mented. Every soldier, sailor, marine, probably get two amendments locked seat armor; whether all of the helicopters in and airman should know this Govern- in so we have at least time limits on this unit are fully equipped at this time and ment has done everything in its power those two. I know Senator BOXER has the precautions being taken to protect the to protect them, keep them safe, and crews and passengers of those not properly some amendments. If we could ask give them everything they need so they those Senators to come forward and equipped. The same questions need to be can complete their mission and come asked regarding all activated Guard and Re- agree to time limits on them, that serve helicopter and fixed-wing units. home safely. makes it much easier for the two man- We understand that the ALQ–156 is in- We have given this administration agers to manage the bill. I am quite tended to protect against the expected every dollar for which they have asked. confident that if the two leaders see threat from some surface-to-air missiles, but Now they must give our soldiers what the work on this bill is not going very may not be as effective against other mis- they need to be safe and successful— quickly, it will be an awfully late night siles. Is the ALQ–156 adequate for the ex- the protective gear and body armor pected threat in Iraq? If not, we would like tonight because I know there are many they need—as they work on the ground things the two leaders want to finish to know when the helicopters will receive among dangerous situations. Armor is the upgraded equipment and your assess- on Thursday and Friday. I think there ment of the risk to military personnel of fly- needed for the Humvees to protect was some expectation and hope the bill ing without such upgraded equipment. them from rocket-propelled grenades, would be completed by tomorrow. I appreciate your prompt response to this and they need state-of-the-art equip- The PRESIDING OFFICER. The Sen- inquiry. ment to protect our helicopters from ator from Colorado. Yours truly, shoulder-fired missiles. Mr. ALLARD. Mr. President, I thank RICHARD J. DURBIN I call upon the Secretary to address the chairman of the Banking Com- U.S. Senator. these shortages immediately and to in- mittee and the ranking member for Mr. DURBIN. Mr. President, I am vestigate fully whether the helicopter giving me the opportunity to speak on also calling on Secretary Rumsfeld to that was shot down and all of the heli- the bill. To accommodate them, if indi- investigate and respond as quickly as copters in Iraq are adequately pro- viduals come to the floor willing to possible on whether the helicopter that tected. We owe this to our men and offer an amendment, signal me and I was shot down on Sunday had on board women in uniform and to their families will clear the floor and give them an a fully operational ALQ–156 system who pray for their safe return. opportunity to offer their amendment. with an automatic flare dispenser and I yield the floor. I agree with their goal of getting us whether it had seat armor. I also be- The PRESIDING OFFICER. The Sen- out of here quickly and getting the lieve we need to know the status of the ator from Maryland is recognized. work done. If someone has an amend- other helicopters in this unit in ref- Mr. SARBANES. Mr. President, does ment, I do not want to hold up the erence to protective equipment, and the Senator from Colorado wish to process. what steps are being taken to protect speak? I rise in support of S. 1753, commonly the crews and passengers in those that Mr. ALLARD. Yes. referred to as the National Consumer are not properly equipped. I understand Mr. SARBANES. Before the Senator Credit Reporting System Improvement the ALQ–156 system is intended to pro- begins, I want to renew the call we Act of 2003. I was pleased to support the tect against the expected threat from made a few minutes ago. I know the bill as a member of the Banking Com- surface-to-air missiles, but may not be chairman agrees with me in doing this. mittee, and I am sure it will receive

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.050 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13871 strong support on the Senate floor as pact your credit. It does when you look AMENDMENT NO. 2054 well. at the credit score. Mr. JOHNSON. Mr. President, I wish I would like to thank Chairman I always figure as long as you paid to express my great high regard and re- SHELBY and his staff for their hard your bills on time or your credit cards spect for my colleague from California, work. This is a balanced, sensible bill on time and the more credit cards you Senator FEINSTEIN, but I must rise in and clearly a product of their willing- had and paid them on time, it just opposition to the amendment she of- ness to listen to all interested parties. showed what a better job you were fered earlier this afternoon. Chairman SHELBY compiled an exten- doing in managing your finances and I think it is important for us to keep sive hearing record and provided a would actually enhance your ability to in mind that the Fair Credit Reporting comprehensive foundation for crafting get loans. That is not true. If you got Act provided for a national preemption this legislation. carried away and decided to apply for going back to 1996. It has been an ex- He crafted a bill that provides a bal- every credit card you received in the traordinary success story for America’s anced approach to the concerns ex- mail, you could actually adversely im- consumers, particularly America’s pressed during the hearings and pro- pact your credit rating, particularly as middle class and working families who vides significant improvement, I be- it applies through the credit score. previously suffered the most from a lieve, to the Fair Credit Reporting Act. This provision contained in S. 1753 lack of access to credit but now find I thank him for working so closely would ensure that consumers would re- themselves having access to credit with committee members to ensure ceive the critical information when ap- never before imagined and having it that our concerns were addressed in plying for a mortgage, which is gen- done in an instant fashion. The legislation before us is an enor- this bill. erally the largest purchase a person I would also like to acknowledge the will make during their lifetime. mously complex piece of legislation. It efforts of the ranking member, Senator In addition to their actual numerical takes the 1996 preemption and builds on it, and strengthens consumer rights SARBANES, and his staff. As I men- score, the consumer will be entitled to beyond anything we have ever known tioned, this bill received strong bipar- receive information concerning the fac- before. Chairman SHELBY and ranking tisan support in committee, and this is tors that helped determine their score, member SARBANES deserve great credit certainly due in part to the diligence of as well as ways in which they can im- for what they have been able to do. Senator SARBANES. His effort and his prove their score. This provision will They put together a bill that had a support have made this a stronger and empower consumers to shop around unanimous vote out of the Senate better bill. and help prevent them from becoming Banking Committee—no easy feat, we Reauthorization of the Fair Credit victims of predatory lending. all know. Reporting Act is vital to the func- I believe expanding access to credit scores is an important victory for con- To now on the floor of the Senate in- tioning of our Nation’s credit markets. troduce a very complicated and, some I think that goes without saying. With- sumers, and I am pleased it has been included in the bill we are considering would suggest, improperly drafted out the FCRA, credit would cost more today. I am hopeful this will be the amendment only serves to slow the or, in many cases, simply would not be first step toward giving consumers process and, in fact, perhaps even to available to consumers. jeopardize passage of the reauthoriza- S. 1753 ensures that the markets will even broader access to credit scores. As chairman of the Housing Sub- tion of the Fair Credit Reporting Act, continue functioning smoothly by per- committee, I would also like to make a something that must be done before manently reauthorizing the Fair Credit few comments on the impact, the im- the first of the year, otherwise, the Reporting Act. As a former State legis- portance of the Fair Credit Reporting consequences would be catastrophic lator and a strong champion of States Act as part of the home buying process. not only to the business community rights, I do not take Federal preemp- Because FCRA gives lenders access to and to our economy but to American tion lightly. In fact, I have a very high more accurate and more complete cred- consumers who would be the biggest threshold for Federal preemption. I be- it information, they are able to more losers of all if we were unable to pass lieve, though, that FCRA meets the accurately price risk. This is impor- legislation because of the additional necessary standard. The credit markets tant because for most people, a home is burden put on it by the Feinstein truly are national, and a patchwork ap- the largest purchase they will make. amendment. proach to credit reporting will quickly The ability to accurately price the risk I wish to very briefly touch on some disintegrate the necessary comprehen- as reflected in mortgage rates can problems that this amendment poses. sive approach we need. make the difference of thousands and The amendment being offered is dif- When it comes to credit reports, ac- thousands of dollars over the life of the ferent from and far more unworkable curacy is in the best interests of both mortgage. than the affiliate sharing restriction in industry and consumers. I believe this The availability of credit informa- the California legislation, and I will bill will help improve accuracy in cred- tion stemming from the FCRA has re- comment on why this is so. it reports. Consumers will have in- duced the cost of home ownership for First, the amendment being offered is creased access to their credit informa- many and opened up previously un- much broader in scope than the Cali- tion and increased tools to combat available opportunities to others. In fornia bill. Despite claims that they identity theft. fact, home ownership rates are cur- fixed the overly broad scope because of The framework provided in the bill rently at record highs. Permanent re- drafting errors, that simply is not the provides sufficient flexibility for the authorization of the Fair Credit Re- case. Unlike the California amendment act to adapt with time and changes in porting Act will help us continue on SB–1, which applies specifically to fi- technology. I am especially pleased that path. This is especially important nancial institutions, this amendment that S. 1753 includes a bill I have as we work to expand the minority applies to any institution that has af- worked on with Senator SCHUMER re- home ownership rates as minorities are filiates, including retailers, manufac- ferred to as the Consumer Credit Score disproportionately impacted when turers, nonprofits, labor unions, Disclosure Act of 2003. This provision credit becomes less available. churches, universities—basically, every would allow consumers applying for a The Fair Credit Reporting Act has type of organization in the country mortgage to receive a copy of their been beneficial to consumers, and the that shares certain consumer report in- credit score. Credit scores are increas- improvements contained in S. 1753 will formation. ingly being used in deciding whether to extend those benefits. I am pleased to Yet the most important exception by extend credit. Yet consumers do not al- add my voice to those in support of the this amendment being offered is pro- ways have access to this information. bill, and I encourage my colleagues to vided only to financial institutions. What I found out about credit scores join me in voting for the National Con- Clearly, the drafters of the amendment and heard in reports back from my con- sumer Credit Reporting System Im- have spent a lot of time on the Cali- stituents about things that affect their provement Act of 2003. fornia bill, perhaps more so than on the credit was that few of them realize I yield the floor. FCRA, because there does not seem to that the number of times you apply for The PRESIDING OFFICER. The Sen- be the full appreciation of the breadth a credit card, for example, could im- ator from South Dakota. of the very statute they are amending.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.053 S04PT1 S13872 CONGRESSIONAL RECORD — SENATE November 4, 2003 The Feinstein amendment provides broad range of purposes other than guard against unintended con- exceptions to certain institutions marketing and solicitation. But if sequences, spent literally months on based on their functional regulator, a sharing for solicitation is all that is the drafting and formulation of this concept we defined in Gramm-Leach- subject to the California opt-out, then legislation. Bliley in the Banking Committee and why not use the far more straight- Make no mistake, it is hard to imag- which is specifically defined in this forward approach of the bipartisan ine that what we are doing here today amendment. It is limited to financial Banking Committee bill? That is, why is the last word on privacy. Our con- institutions such as banks, securities not target the opt-out only to solicita- stituents will continue, rightfully so, firms, and insurance companies. tions of noncustomers made possible by to demand that we review our current This means while financial institu- affiliate sharing? laws as information technology devel- tions can qualify for what proponents As the Banking Committee has rec- ops. I believe we intend in a bipartisan refer to as the ‘‘silo’’ exception, other ognized, and as the Senator from Cali- fashion to do just that. covered businesses cannot. I assume fornia has pointed out many times dur- At this point in time, giving con- this is probably a drafting oversight, ing today’s debate, the real consumer sumers the right to opt out of mar- but it simply reinforces my concern concern is getting bombarded by adver- keting, with no exceptions, is the right that this amendment has not been tisements from unfamiliar companies. rule for American consumers, while at fully vetted by the Banking Committee We all sympathize with that. The bi- the same time providing immediate or by any other presence in the Con- partisan committee bill addresses this and affordable access to credit to all of gress. I doubt very seriously that the concern head on with its targeted, fo- our consumers, regardless of their eco- sponsors are trying to give large finan- cused provision on affiliate sharing, nomic background, regardless of racial cial institutions a competitive advan- while the pending amendment, even if or other factors is something that I tage, but that is one of the con- it added all of California’s numerous think this Senate can take great pride sequences of the amendment that has exceptions, which it does not, is far in and we can take great satisfaction been offered. more cumbersome and overreaching on in the quality of this bipartisan legisla- The FCRA has a sweeping scope by its face. In fact, the committee bill tion. design. Congress believed and still be- gives consumers far more control. S. I urge my colleagues on both sides of lieves that sensitive information bear- 1753 allows consumers to opt out of all the aisle to mirror the bipartisan vote ing on credit, employment, or insur- marketing from any affiliate. The of the Senate Banking Committee and ance risk, no matter who is using it, pending amendment does not do that. to support the FCRA reauthorization should be protected. That is why the For example, the California silo ex- and oppose the Feinstein amendment. FCRA is by no means limited to finan- ception strips away consumer control I yield the floor. cial institutions, and should not be. over information shared by affiliates in The PRESIDING OFFICER. The Sen- The amendment being offered back- the same line of business. By contrast, ator from Alabama. tracks on the final version of the Cali- we believe consumers should not have Mr. SHELBY. I have listened care- fornia legislation with respect to the to be bombarded by marketing mate- fully to the comments of Senator FEIN- so-called common database exception rials just because they have chosen to STEIN earlier, and I will make a couple that was an integral part of the deal. do business with a large financial insti- of important points in response to her The amendment contains the origi- tution. amendment. nal, unnegotiated version of the com- Sharing of information among affil- mon database exception, which was iate entities has a significant impact First, as a privacy advocate, I fully widely understood to be unadministra- on the cost and availability of credit in appreciate the interest and concern at table. This provision, which was in- ways that are not always apparent to hand. Indeed, both Senator SARBANES tended to assure companies with large consumers. This is a critical point that and I have been very sensitive and information databases that they would I believe has been lost in the course of worked together a lot on privacy con- not have to undergo major systems re- this debate. cerns. As we took up the Fair Credit visions, fails to accomplish that goal. Former Treasury Secretary Robert Reporting Act, this was one of the key The final version of the database ex- Rubin testified back in 1997, for exam- considerations we sought to balance, ception prohibited information from a ple, that consumers could expect ulti- even as the law itself requires. We did common database to be further dis- mate savings of as much as $15 billion this in what was a very comprehensive, closed or used by an affiliate. The per year from the increased efficiencies transparent, and lengthy review of the amendment before us this afternoon that affiliation provides. law and issues at hand as we considered prohibits not only disclosure or use but Treasury Secretary John Snow re- reauthorizing our national credit even access itself. cently testified that affiliate informa- standard. What is the point of a common data- tion sharing serves a critical purpose Second, the amendment of the Sen- base if it cannot be accessed? I under- in the war on identity theft. ator from California makes two basic stand that the California bill has come FDIC Chairman Don Powell has assumptions which ultimately guide under fire recently for including what noted that access to credit and the cost her amendment’s approach and goal, as some view as a giant loophole of the of credit is far more favorable in the I understand it. No. 1, that there is common database exception, and I United States than in other parts of something inherently nefarious about share Senator FEINSTEIN’s concern the world due, in large part, to the rel- the use of affiliate structures; No. 2, about the loophole but it is not right ative ease of information sharing be- that consumers have no rights or to make a major change to a central tween potential credit customers and means to protect themselves with re- provision and continue to claim that potential lenders. spect to the handling of their trans- this amendment mirrors SB–1, the Finally, Federal Reserve Chairman action and experience information. California legislation. Alan Greenspan has noted that infor- I believe that our consideration in Even if all the California exceptions mation sharing has had ‘‘a dramatic the Banking Committee would there- were added, the amendment would still impact on consumers and households fore be instructive in understanding be far less workable than the affiliate and their access to credit in this coun- the better approach adopted in our bill sharing provision in the unanimously try at reasonable rates.’’ and why I intend to oppose the amend- adopted Senate Banking Committee The Senate bill ably balances the le- ment of the Senator from California. bill. gitimate concerns of consumers To the first point: Why do affiliates With all the California exceptions, against the substantial benefits that exist? Companies establish affiliates the only sharing not permitted would information sharing brings to this for a variety of legal, tax, and account- be affiliate sharing used for solicita- economy and to all consumers. As ing reasons—because laws require them tion and marketing purposes. Chairman SHELBY and ranking member to do it. It is simply not true, as some have SARBANES have noted, this is an enor- What do these structures mean for suggested, that the California opt-out mously complicated area of law, and consumers? Some companies choose to applies to information shared for a the committee took great care to create separate legal entities known as

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.055 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13873 separately capitalized affiliates. Other consumers rights, the Banking Com- were designed to promote a specific companies elect to locate all of their mittee identified two key areas for in- business model by hobbling others. business lines in a single entity. Re- creased Federal protection: The shar- I yield the floor. gardless of the structure that a firm ing of medical information and re- The PRESIDING OFFICER. The Sen- employs, consumer information is gen- stricting affiliate sharing used for mar- ator from California. erally used in the same fashion. Affili- keting purposes. Mrs. BOXER. Mr. President, I rise in ates or the separate business line share This bill does so in the context of the favor of the Feinstein-Boxer amend- it to service their customers, fight Fair Credit Reporting Act in a ment, and I note that there are a num- fraud, or develop new business. The af- straightforward and narrowly tailored ber of others on that amendment as filiate sharing provisions contained in way and does not give preferential well. I hope colleagues will realize this the Fair Credit Reporting Act exist to treatment to certain business models amendment will make this bill better, make it clear that companies should over others. will make this bill stronger, and I am not suffer because they have chosen a This brings us to a third and very im- going to take a few minutes to explain particular corporate structure. portant point. The Fair Credit Report- why in as simple a way as I can. From the consumer’s perspective, I ing Act deals with more than just fi- I stand here very proud that my believe there is no real difference be- nancial institutions. The sponsors, as State treasures privacy and they acted tween a company making an internal you know as a member of the Banking on that value. After years of struggle, transfer of information among depart- Committee, Mr. President, seek to im- California put into law the most tough ments and sharing between affiliates. pose a model that was tailored strictly financial privacy standard in the Na- In fact, in many cases where affiliate for financial institutions to all fur- tion. Others can say oh, that is not true, sharing is occurring, most consumers nishers of credit information, subject and they can quibble, but the facts are would not recognize that the two par- to the Fair Credit Reporting Act. This the facts. Every consumer group that model is largely based on SB–1, the ties are involved in the transfer. Rath- you ask, any group that is objective on California Financial Services Law. er, they would be under the impression the subject, will tell you that our law that information is merely being The amendment’s sponsors have tried to graft a banking bill on to the Fair is the best and is far better—certainly moved within the single entity with than the House bill, and better than Credit Reporting Act. This effort, I be- whom they have chosen to do business. the bill that is before us today. lieve, is misplaced, and this effort does Second, there are real rules and pro- I do want to compliment my friend. visions governing the manner in which not mesh with how the FCRA, the Fair You have made some good advances transaction and experience informa- Credit Reporting Act, works and to here. I will talk about that in my tion is handled. First, we need to con- whom it applies. Gramm-Leach-Bliley statement. But we can do better, and I sider what exactly transaction and ex- made it permissible for California and offer this amendment with Senator all other States to pass legislation that perience information is. Transaction FEINSTEIN in a very friendly way, in and experience information involves regulates third party sharing activity. the hopes that maybe we can make this checking and saving account balances, This bill would not affect those provi- better. credit card balances and repayment sions in the California law that come The struggle to pass SB–1, Califor- history, mortgage balances and repay- because of Gramm-Leach-Bliley. With nia’s financial privacy law, was very ment history, and mortgage and bro- respect to the part of SB–1 that con- long and very transparent. I want to kerage account balances and trans- flicts with the Fair Credit Reporting say that State Senator Jackie Speier action activity. In many instances, the Act, the California law was preempted, did an unbelievable job. For 4 years, information is the very information making it unenforceable when it was she worked with banks on behalf of the provided to the consumer reporting enacted. This bill does not change or consumers. The industry invested more agencies where, as consumer report in- alter that fact in any way. than $20 million in lobbying expenses formation, consumers are afforded sig- The irony is that, even if we were to and campaign contributions during nificant rights under the Fair Credit assume these provisions were violated, those 4 years but eventually a wonder- Reporting Act. California’s attempt to overturn Fed- ful thing happened. The banks came to More important, however, this is in- eral law is actually weaker than the the table and they negotiated with formation that is routinely provided to Senate bill. The California law, as I Senator Speier. The fact is, there was a consumers as required by separate laws have heard here, as it is targeted at fi- reason. They saw the handwriting on and regulations. For example, the nancial institutions, covers a much the wall. They saw that there was Truth in Lending Act, the Fair Credit more limited range than the broader going to be a State initiative. They had Billing Act, the Truth in Savings Act, Fair Credit Reporting Act, which deals already gathered 550,000 signatures the Electronic Funds Transfer Act, with information, not entities, and quickly and Senator Speier’s provision provisions of the securities laws and therefore includes retailers, auto deal- for more strict privacy was supported the Uniform Commercial Code all pro- ers, mortgage providers—anyone who in the polls. How about this? California vide consumers substantive rights with furnishes credit. Democrats in the polls supported this respect to transaction and experience Furthermore, California’s rule is initiative by 96 percent; and California information. These include disclosures eaten by its exceptions and its exemp- Republicans, 88 percent; Independents, and access rights and error resolution tions. Its provisions provide consumers 90 percent. procedures. with no real choices or meaningful pro- So Senator Speier had touched on a I believe the bottom line is that con- tection. The Senate bill covers the very important value of Californians. I sumers already have access to and areas that consumers care about—mar- really do believe if you took a poll rights concerning transaction experi- keting and the sharing of medical in- today, just a really carefully worded ence information right now under the formation—by providing real protec- one which went into every State in the law. But at the end of the day, I believe tion. Unlike the Senate bill, the Cali- Union, there would be support for this the main concern I heard with affiliate fornia law still exempts most of the Feinstein-Boxer amendment to make sharing uses was the use for marketing largest financial service firms they this bill stronger. purposes. At the end of the day, I be- claim the law is intended to address. I will explain it. lieve that is all that is really left re- The Senate bill was carefully tai- The committee went ahead and did stricted, in some way, under Califor- lored to address key concerns in a more some good things. It includes fraud nia’s approach after accounting for the clear and a concise way. The Senate alerts for consumers and protection for exceptions and exemptions. bill before us targets unwanted solici- credit card numbers on receipts and So after spending more than a year tations without otherwise preventing free credit reports. considering the law carefully in order sharing activities that provide benefits It is very important they say that to balance the needs of our national to consumers. Unlike the California you can’t go outside and share the in- credit system, which we all believe is bill, the Senate bill is designed to pro- formation with outside companies. crucial to the operation and strength tect consumer interests. The unen- That is great. I salute Senators SHELBY of our economy, with a need to protect forceable portions of the California law and SARBANES for that progress.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.058 S04PT1 S13874 CONGRESSIONAL RECORD — SENATE November 4, 2003 However, there is one major problem General Fidelity Life. How about Boat- vacy; Consumer Federation of America, Senator FEINSTEIN and I are addressing man’s Insurance Agency? You do busi- Consumers Union, the National Asso- in this amendment. We are saying, first ness with any one of these and more ciation of Consumer Advocates, Na- of all, if a State wants to go further than a thousand affiliates will know tional Community Reinvestment Coali- than you have, we ought to have that how much you earn, what your Social tion, Privacy Rights Clearinghouse, chance. Your bill ought to be a ceiling. Security number is, how did you pay, if Privacy Times, U.S. PIRG. These are All good wisdom doesn’t reside here. you missed a payment, what your likes people who absolutely know our We always like to think it does, but it and dislikes are. amendment is a step in the right direc- doesn’t. Let us show a couple of others. tion. A lot of our States are ahead of us, Bank of America and other affiliated I have a couple of other points to and they want to do more. Yet Cali- companies: Oakland Trace Redevelop- make. I will make them as quickly as fornia finds itself left out because ment, Holly Springs Meadows, LLC, I can. there is no preemption for our State. East Nashville Housing. You go into a I want to share with you some of the We know we are not going to get that. bank in California and East Nashville quotes that were made by the big We have 35 million people in our State. will know what you are worth. banks when California passed its law. We can’t get an exemption. We under- Dallas-Ft. Worth Affordable Housing, Did they complain about it? Not at all. stand that. We are simply asking you Old Heritage New Homes, Texas Cor- This is what they said. follow the lead of our State on this one porate Tax Credit Fund, and it goes on. This is Diane Colborn who lobbies for because I think it is the fair thing to Michigan, Osbourne Landing Limited, Personal Insurance Federation. She do. it goes on and on. West Wood Manor called this workable, reasonable com- Some people listening today might Development, Elk Ridge Apartments. promise a ‘‘balanced measure that will say, Well, the committee bill says you The point I am making—and I will provide meaningful protections to con- can’t go outside and share information. show one last chart. We have 9 of these sumers while also addressing the work- But you can share it with your own af- charts listing Bank of America’s 1,600 ability concerns that our members and filiates that are in your little cor- affiliates, for anyone who really cares customers had.’’ porate family. What is wrong with enough to examine each and every one Jim Bruner, who lobbies for the Se- that? That is a logical question until of these affiliates. curities Industry Association, appeared you look at the banking industry and Our point is we could go on and on before our committees in California. look at how big these families can get. and make our point with each and He said the measure is a ‘‘good, work- Let us take a look at some of these every chart, but I am going to spare able, reasonable bill.’’ families for which this bill would allow my colleagues. They have worked long The ink didn’t dry on that bill before affiliate sharing. and hard already today. Here is the they came up here and started wining Let us take a look at Citigroup. They point: Do not share. That is a simple and dining and talking to people—I are small? They have 1,630 affiliates. message. This Senate supported ‘‘do guess you can’t wine and dine any- Bank of America. How well I remem- not call.’’ We said people deserve their more, and that is a good thing—about ber the proud history of that bank in privacy. If you don’t want to get a call why this bill couldn’t go too far. Don’t my State. They have 1,323 affiliates. at night, you shouldn’t have to get a go too far; it is a burden. I am so sorry JP Morgan, 967 affiliates; Wachovia call at night. about that. I was so excited when Cali- Corporation, 886 affiliates; Wells Fargo, We are saying if you decide—and our fornia passed the privacy protections. 671; Bank One, 253. amendment simply says you have to In closing my remarks, I will read When you say to all of these people opt out automatically under this Fein- some newspaper editorials. you cannot share information outside stein-Boxer amendment—your infor- From the New York Times: ‘‘Buyer your family, you are in essence saying mation would be shared, you have to Beware,’’ just written a few days ago. you can share it within your families. take an affirmative step and opt out. If This (affiliate sharing) is a dark and We are talking about thousands of af- you are a person who believes in your unmapped universe in which banks, credit filiates that will get every bit of infor- right to privacy, and you don’t want card companies and insurers have free rein mation about you and your financial some company over in The Netherlands to share detailed records among thousands of affiliates, with customers largely powerless transactions. My colleagues can stand to know what you are about, because and unknowing. Bank balances, buying hab- up here from night until morning and there is one here—Bank of America its, investment profiles and more can be argue with me on the point that we are Netherlands. How about Odessa Park? tapped into in ways that invite fraud, mar- wrong on this. I know we are right. These are worldwide affiliates. We are keting assaults, identity theft and unfair This is the right thing to do to protect very proud of Bank of America. Good credit decisions. our constituents. for them. They have all of these affili- The Senate measure contains no real solu- Let me show you Bank of America af- ates. But not good for them if they tion for indiscriminate data sharing. Far filiates. I want to show it in a way that preferable is an amendment to be offered by start to share information. Senators Dianne Feinstein and Barbara is pretty graphic. I will not read every Under the underlying bill, they can Boxer of California that would require ad- one of their affiliates. I am going to share all sorts of information with vance notice from businesses so consumers truncate and do this quickly. every one of these affiliates. Guess would have a chance to block planned We have nine charts listing all of what. You get turned down for a loan, sharings that reached beyond relevant credit these. These are Bank of America let us say, because of information that issues. Rejection of this amendment would banks: Commonwealth National Bank, was shared among the affiliates. You only compound businesses’ temptation to be First National Bank, National Bank of have absolutely no right to know who marketers rather than the protectors of the Howard County, and American State told who what, where, and when. What privacy of the American consumer. Bank. I can’t even pronounce some of if it was wrong? There is no redress. We know in the underlying bill you these. Bank of America Mexico; There is no way to correct the record. cannot share for marketing purposes, Finacero Bank of America. They will All I can say is I have heard the de- but there is a giant loophole dealing know your transactions. That is just bate, and I have heard our amendment with preexisting relationships, making the first Bank of America chart. Let us taken out of context: Oh, gee, that it confusing and complicated. That is look at one other. We do have nine of amendment will make it worse for peo- why I believe the Feinstein-Boxer these. I will go quickly. ple. Wrong. I will tell you who is sup- amendment will cure these problems. Here is another one. Let us go to porting our amendment—people who From the San Jose Mercury News: Bank of America insurance companies have fought their whole lives for con- The financial services industry is guilty of and look at who they own: First Na- sumers and for the rights of people to a nasty bait-and-switch on the people of tional Insurance Services, American California. Its lobbyists worked with privacy have privacy. That is who is supporting advocates to help shape the law into what Fidelity and Liberty, Bank of America us. the industry called a reasonable and work- Insurance Services, Inc., and Home The AARP, which represents many able compromise. All the industry said it Focus Services. I don’t know what they seniors, supports our amendment; the hoped for was a uniform privacy standard do, but they will know what you do. ACLU fights for civil liberties and pri- across the nation.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.061 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13875 Yet immediately after the California law marketing, just for new customers, and sumer has to be given the opportunity was approved, industry lobbyists went to would expire 5 years after the con- to opt out. But the California law has Washington to try to erase it from the boxes. sumer requested it. The Feinstein- some exceptions or exemptions from The only national standard they are inter- Boxer opt out, by comparison, is for that requirement. The amendment that ested in is one that gives them the unfet- tered right to sell their customers’ personal the exchange of transaction and experi- is pending has 17 such exemptions. financial details to the highest bidder. That ence information; it is for uses other To evaluate this—it is very complex; was the San Jose Mercury News, in the heart than marketing; it is for current and I agree with my colleague from Cali- of Silicon Valley. This is a newspaper that new customers; and it has no expira- fornia when she says this is a complex very often is on the cutting edge of the way tion. It, therefore, provides more pro- area; it is very complex—but to evalu- we ought to be thinking about financial tection for consumers who are con- ate these exemptions, you have to issues. cerned about protecting their privacy. work through all of the exceptions and I close with an editorial from The Another thing to remember about see where that leads as opposed to Los Angeles Times, October 29, entitled this amendment: the amendment does what is in the committee bill. ‘‘Put Privacy on the List.’’ not alter preemption. With this provi- Let me give an example. One excep- Congress promised voters that it would im- sion States would still be deprived, per- tion is if a company is in the same line prove consumer rights with regular reviews manently, of the opportunity of enact- of business, a common brand, then the of the Fair Credit Reporting Act, initially ing their own legislation relating to af- provisions of the amendment do not passed 33 years ago to balance the competing filiate sharing. If we are going to have apply with respect to restricting and interests of business and consumers. Bills in a national law, we need a reasonable sharing of information. What the com- the House and Senate would make it easier mittee has reported out would, in fact, for consumers to see credit reports and re- national standard. Mr. President, a lot has been said apply a limitation, an opt-out limita- port identity theft. But the legislation tion in that instance for soliciting for wouldn’t help consumers keep private their about this amendment and how it bank balances, spending patterns and other would create all kinds of problems, so marketing purposes. sensitive data. Congress could cover this let me be clear about what this amend- As I said earlier, that is generally gaping problem by adopting the amendment ment would not do. what we have heard as being the source crafted by Feinstein and Boxer, which keeps The amendment would not prevent of people’s concern and discontent. In alive the protections at the heart of SB 1. the extension of affordable credit. Af- that sense, what is in the bill is for Colleagues, I know sometimes we get filiates could still request credit re- that purpose broader than what is in bills where deals have been cut, deals ports and scores, as always. the amendment. These extensive exceptions will in- have been made, and everyone has put The amendment would not prevent volve a great deal of litigation. We do their hand out like after a sports game, affiliates working under the same have a preexisting customer relation- saying: OK, on blood oath, we will not name in the same line of business from ship exception, our provision, which we take amendments. I have been here working together: it contains an excep- expect the regulators to define, to give long enough to know that. tion for sharing among such close af- I hope some colleagues will be open it more content and more meaning. filiates. It would not impede the inves- Second, the amendment has an ex- to this. We have done the right thing. tigation for fraud or identity theft. It Strong percentages of the American emption for a common database and would not impede transactions or the the information that goes into a com- people—if it mirrors California, it servicing of a product requested by the mon database. In fact, it says a person would be 80 percent and above—support consumer. It would not impede institu- does not disclose information or share making sure that your personal-private tional risk control. It would not im- information with an affiliate solely be- financial data cannot be shared within pede the resolution of customer dis- cause information is maintained in a a family of a company which could in- putes or debt collection. It would not common information system or data- clude thousands—1,600, 2,000, who impede efforts to locate missing and base and employees of the person and knows—as more and more mergers go abducted children. its affiliate have access to that com- on. We do not want that information to Mr. President, I say again: If we are mon information system or database. be shared. going to have a national law, we need That is another provision in the That is exactly the right course to a reasonable national standard. This amendment, a major provision, which take. I am hopeful we will get a strong amendment is just such a standard. I in fact restrains or restricts the con- vote on the Feinstein-Boxer amend- urge my colleagues to support it. sumer’s ability to opt out. ment. The PRESIDING OFFICER (Mr. I could go on with this form of anal- I yield the floor. CHAFEE). The Senator from Maryland. ysis, but I have probably given enough Mr. DURBIN. Mr. President, I rise to Mr. SARBANES. I will be quick be- to underscore my thoughts. I appre- speak in support of the Feinstein-Boxer cause I know the chairman intends to ciate the commitment of the two Sen- amendment to S. 1753 on the sharing of move ahead with respect to this ators from California, Mrs. FEINSTEIN information among affiliates. This amendment. I will make some very and Mrs. BOXER, on this issue. They amendment would give consumers the basic points. have been champions and leaders on choice to opt out of having their per- Some of this discussion has been this issue. Many Members have been sonal ‘‘transaction and experience’’ in- along the lines that under existing law with them on these matters and pre- formation shared among affiliates. The this information is shielded and we are sumably will remain with them. privacy provision in the California law taking something away from people. But we are trying to craft a bill to represented by this amendment was The fact is, under existing law there deal with the FCRA. It is not com- the result of long negotiations among are no limitations on the sharing of in- prehensive. We are dealing with that consumer groups and banks, and in the formation with affiliates. That is the subject alone. What is in the bill from end the banks in California called this existing law. the committee is a significant im- provision ‘‘reasonable and workable.’’ What the committee has sought to do provement over existing law. I don’t Reasonable and workable. I am a co- is place the limitation on the sharing think there is any question about that. sponsor of this amendment because, in of information with affiliates for solici- I think there is an arguable case that, a reasonable and workable way, it sim- tation for marketing purposes, which is in fact, it may provide more protection ply gives consumers some control over the biggest complaint we have heard for the consumer than the amendment their personal information. flowing out of the sharing of informa- that is pending. Therefore, I am sup- Let me emphasize just a few key tion. That is what people have com- portive of the chairman and his efforts points about this amendment. The plained to us about. We are trying to with regard to this issue. amendment is still about an opt out, provide that protection for the con- The PRESIDING OFFICER. The Sen- not a blanket restriction. It just gives sumer. ator from Alabama. consumers the option of keeping their The California law and the amend- Mr. SHELBY. Mr. President, I now personal information personal. Now the ment take a different approach. They, move to table the Feinstein-Boxer underlying bill also has an opt out, but in effect, say you cannot share infor- amendment and ask for the yeas and that opt out is minimal: it is just for mation with an affiliate or the con- nays.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.063 S04PT1 S13876 CONGRESSIONAL RECORD — SENATE November 4, 2003 The PRESIDING OFFICER. Is there a The assistant legislative clerk read ‘‘(5) AUTHORITY TO DECLINE TO PROVIDE IN- sufficient second? as follows: FORMATION.—A business entity may decline to provide information under paragraph (1) There appears to be a sufficient sec- The Senator from Washington [Ms. CANT- if, in the exercise of good faith, the business ond. WELL], for herself and Mr. ENZI, proposes an amendment numbered 2059. entity determines that— The question is on agreeing to the ‘‘(A) this subsection does not require dis- motion to table amendment No. 2054. Ms. CANTWELL. Mr. President, I ask closure of the information; The clerk will call the roll. unanimous consent that the reading of ‘‘(B) the request for the information is The assistant legislative clerk called the amendment be dispensed with. based on a misrepresentation of fact by the the roll. The PRESIDING OFFICER. Without individual requesting the information rel- Mr. FRIST. I announce that the Sen- objection, it is so ordered. evant to the request for information; or ator from Kentucky (Mr. BUNNING), the The amendment is as follows: ‘‘(C) the information requested is Internet Senator from Kentucky (Mr. MCCON- (Purpose: To provide for certain information navigational data or similar information about a person’s visit to a website or online NELL), and the Senator from Wyoming to be provided to victims of identity theft, and for other purposes) service. (Mr. THOMAS) are necessarily absent. On page 22, line 6, strike the quotation ‘‘(6) LIMITATION ON LIABILITY.—Except as I further announce that, if present provided in section 621, sections 616 and 617 and voting, the Senator from Kentucky marks and the final period and insert the fol- lowing: do not apply to any violation of this sub- (Mr. BUNNING) would vote ‘‘yes.’’ ‘‘(e) INFORMATION AVAILABLE TO VICTIMS.— section. Mr. REID. I announce that the Sen- ‘‘(1) IN GENERAL.—For the purpose of docu- ‘‘(7) NO NEW RECORDKEEPING OBLIGATION.— ator from North Carolina (Mr. ED- menting fraudulent transactions resulting Nothing in this subsection creates an obliga- WARDS), the Senator from Massachu- from identity theft, not later than 20 days tion on the part of a business entity to ob- tain, retain, or maintain information or setts (Mr. KERRY), and the Senator after the date of receipt of a request from a victim in accordance with paragraph (3), and records that are not otherwise required to be from Connecticut (Mr. LIEBERMAN) are obtained, retained, or maintained in the or- necessarily absent. subject to verification of the identity of the victim and the claim of identity theft in ac- dinary course of its business or under other I further announce that, if present cordance with paragraph (2), a business enti- applicable law. and voting, the Senator from Massa- ty that has provided credit to, provided for ‘‘(8) RULE OF CONSTRUCTION.— chusetts (Mr. KERRY) would vote consideration products, goods, or services to, ‘‘(A) IN GENERAL.—No provision of Federal ‘‘nay.’’ accepted payment from, or otherwise entered or State law (except a law involving the non- The PRESIDING OFFICER. Are there into a commercial transaction for consider- disclosure of information related to a pend- any other Senators in the Chamber de- ation with, a person who has allegedly made ing Federal criminal investigation) prohib- iting the disclosure of financial information siring to vote? unauthorized use of the means of identifica- tion of the victim, shall provide a copy of ap- by a business entity to third parties shall be The result was announced—yeas 70, used to deny disclosure of information to the nays 24, as follows: plication and business transaction records in the control of the business entity, whether victim under this subsection. [Rollcall Vote No. 434 Leg.] maintained by the business entity or by an- ‘‘(B) LIMITATION.—Except as provided in YEAS—70 other person on behalf of the business entity, subparagraph (A), nothing in this subsection permits a business entity to disclose infor- Akaka Daschle McCain evidencing any transaction alleged to be a mation, including information to law en- Alexander DeWine Miller result of identity theft to— Allard Dodd Murkowski ‘‘(A) the victim; forcement under subparagraphs (B) and (C) of Allen Dole Nelson (NE) ‘‘(B) any Federal, State, or local governing paragraph (1), that the business entity is Baucus Domenici Nickles law enforcement agency or officer specified otherwise prohibited from disclosing under Bayh Dorgan Pryor by the victim in such a request; or any other applicable provision of Federal or Bennett Ensign Reid State law. Biden Enzi ‘‘(C) any law enforcement agency inves- Roberts ‘‘(9) AFFIRMATIVE DEFENSE.—In any civil Bingaman Fitzgerald tigating the identity theft and authorized by Santorum Bond Frist the victim to take receipt of records pro- action brought to enforce this subsection, it Sarbanes Breaux Graham (SC) vided under this subsection. is an affirmative defense (which the defend- Schumer Brownback Grassley ‘‘(2) VERIFICATION OF IDENTITY AND CLAIM.— ant must establish by a preponderance of the Sessions Burns Gregg Before a business entity provides any infor- evidence) for a business entity to file an affi- Campbell Hagel Shelby davit or answer stating that— Smith mation under paragraph (1), unless the busi- Carper Hatch ‘‘(A) the business entity has made a rea- Snowe ness entity, at its discretion, is otherwise Chafee Hutchison sonably diligent search of its available busi- Chambliss Inhofe Specter able to verify the identity of the victim Cochran Inouye Stabenow making a request under paragraph (1), the ness records; and Coleman Johnson Stevens victim shall provide to the business entity— ‘‘(B) the records requested under this sub- Collins Kyl Sununu ‘‘(A) as proof of positive identification of section do not exist or are not available. Conrad Landrieu Talent the victim, at the election of the business ‘‘(10) DEFINITION OF VICTIM.—For purposes Cornyn Lincoln Voinovich entity— of this subsection, the term ‘victim’ means a Craig Lott Warner consumer whose means of identification or Crapo Lugar ‘‘(i) the presentation of a government- issued identification card; financial information has been used or trans- NAYS—24 ‘‘(ii) personally identifying information of ferred (or has been alleged to have been used Boxer Feinstein Leahy the same type as was provided to the busi- or transferred) without the authority of that Byrd Graham (FL) Levin ness entity by the unauthorized person; or consumer, with the intent to commit, or to Cantwell Harkin Mikulski ‘‘(iii) personally identifying information aid or abet, identity theft or any other viola- Clinton Hollings Murray that the business entity typically requests tion of law.’’. Corzine Jeffords Nelson (FL) from new applicants or for new transactions, On page 33, line 6, strike ‘‘7’’ and insert Dayton Kennedy Reed at the time of the victim’s request for infor- ‘‘5’’. Durbin Kohl Rockefeller On page 41, line 19, strike ‘‘(e)’’ and insert mation, including any documentation de- Feingold Lautenberg Wyden ‘‘(f)’’. scribed in clauses (i) and (ii); and NOT VOTING—6 On page 47, line 1, strike ‘‘(e)’’ and insert ‘‘(B) as proof of a claim of identity theft, ‘‘(f)’’. Bunning Kerry McConnell at the election of the business entity— Edwards Lieberman Thomas ‘‘(i) a copy of a police report evidencing Ms. CANTWELL. Mr. President, this amendment is one more addition to the The motion was agreed to. the claim of the victim of identity theft; and great underlying Fair Credit Reporting Mr. SHELBY. Mr. President, I move ‘‘(ii) a properly completed— ‘‘(I) copy of a standardized affidavit of Act that would establish a process to reconsider the vote. identity theft developed and made available where business records can be accessed Mr. SARBANES. I move to lay that by the Federal Trade Commission; or by consumers whose identities have motion on the table. ‘‘(II) an affidavit of fact that is acceptable been stolen. I urge my colleagues to The motion to lay on the table was to the business entity for that purpose. support this amendment. agreed to. ‘‘(3) PROCEDURES.—The request of a victim Mr. ENZI. Mr. President, I thank under paragraph (1) shall— AMENDMENT NO. 2059 Senator SHELBY and Senator SARBANES Ms. CANTWELL. I call up the Cant- ‘‘(A) be in writing; and ‘‘(B) be mailed to an address specified by for their work. They have put in a lot well amendment and ask for its imme- the business entity, if any. of time working through different diate consideration. ‘‘(4) NO CHARGE TO VICTIM.—Information re- changes in this to make it not only The PRESIDING OFFICER. The quired to be provided under paragraph (1) more acceptable but more useful. We clerk will report. shall be so provided without charge. appreciate that.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.065 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13877 I also want to give special mention to victims of identity theft recover from tant identity provisions as the bill Senator CANTWELL, the Senator from this terrible and expensive crime. I came from the committee, and I think Washington, for her perseverance, for commend my colleagues on the Bank- this is a positive addition. her tenaciousness, for her innovation, ing Committee who have worked close- Mr. SHELBY. I urge adoption of the and for her flexibility. She did a mar- ly with us to make the numerous im- amendment. velous job of working on this bill. It is provements to this amendment. I urge The PRESIDING OFFICER. Is there extremely important to the Nation. my colleagues to support it. further debate? This is an extremely critical part of In summary, the Federal Trade Com- If not, the question is on agreeing to fair credit. mission estimated that nearly 10 mil- amendment No. 2059. In today’s world of digital trans- lion Americans were victims of identi- The amendment (No. 2059) was agreed actions and online living, nobody is fication crime and that each paid an to. safe from the fastest growing crime in average of $500 in order to repair the Mr. SHELBY. Mr. President, I move America known as identity theft. Last damage done by the fraudsters and to reconsider the vote. year alone, the Federal Trade Commis- credit abusers. That is $50 billion that Mr. REID. I move to lay that motion sion estimated that nearly 10 million is taken out of our economy each year. on the table. Americans were victims of this crime, This amendment is based on a bill The motion to lay on the table was and each paid an average of $500 in my colleague from Washington and I agreed to. order to repair the damage done by introduced in 2002 and in 2003. Even AMENDMENT NO. 2060 fraudsters and credit abusers. To these though the bill passed unanimously the Mrs. BOXER. I send an amendment millions of American families, $500 last time, we have made a number of to the desk and ask for its immediate means mortgages, car payments, stu- changes that I believe greatly improve consideration. I am very pleased to say dent loans, child support, groceries. In the legislation. both Senator SARBANES and Senator the larger context, $500 per victim I firmly believe this amendment will SHELBY have signed off on this amend- means American families and busi- provide consumers with the right infor- ment. nesses lost more than $50 billion in re- mation and businesses with the right The PRESIDING OFFICER. The covery costs in 2003 alone. That is a $50 safeguards to facilitate quick and cost- clerk will report. billion drag on our economy—an econ- effective recovery from identity theft. The assistant legislative clerk read omy that is just starting to bounce This amendment allows the victims as follows: back. With the number of identity to work with businesses to obtain in- The Senator from California [Mrs. BOXER], theft cases increasing at an alarming formation related to cases of identity for herself and Mrs. FEINSTEIN, proposes an rate, the economic costs will be even theft so they can start reversing the amendment numbered 2060. higher next year. damaging effect of the crime. Mrs. BOXER. Mr. President, I ask As such, I rise today in support of an In drafting this legislation, we unanimous consent that the reading of amendment that will make it easier for worked with all of the stakeholders. the amendment be dispensed with. victims of identity theft to recover Our amendment provides consumers The PRESIDING OFFICER. Without both economically and emotionally with the right to ask businesses for objection, it is so ordered. from this devastating crime. This records relating to the transaction. The amendment is as follows: amendment is based on a bill my col- Businesses, in return, have the right to (Purpose: To address the duration of certain league from Washington and I intro- ask for specific kinds of identity consumer elections and to define the term duced in both 2002 and 2003. Even verification and clear proof that the in- ‘‘pre-existing business relationship’’) though the bill passed unanimously dividual asking for the information is On page 50, strike line 12 and all that fol- last Congress, we have made a number in fact the victim and not another lows through page 51, line 3 and insert the of changes that I believe greatly im- fraudster. following: ‘‘(3) DURATION.—The election of a con- prove the legislation. I firmly believe It is also important to note our sumer pursuant to paragraph (1)(B) to pro- this amendment will provide con- amendment does not require businesses hibit the sending of solicitations shall be ef- sumers with the right information and to keep records or seek out informa- fective permanently, beginning on the date businesses with the right safeguards to tion not in their control. It simply re- on which the person receives the election of facilitate quick and cost effective re- quires businesses to share current the consumer, unless the consumer requests covery from identity theft. records with consumers who can prove that such election be revoked. This amendment will allow victims they have been victims of identity ‘‘(4) DEFINITION.—For purposes of this sec- to work with businesses to obtain in- theft. I think this will help consumers tion, the term ‘pre-existing business rela- formation related to cases of identity tionship’ means a relationship between a in a tremendous way. person and a consumer, based on— theft so they can start reversing the I appreciate the work Senator CANT- ‘‘(A) the purchase, rental, or lease by the lasting and damaging effects of this WELL has put in on this amendment. consumer of that person’s goods or services, crime. In drafting this legislation we This $50 billion drag on the economy or a financial transaction between the con- have worked with all of the stake- can be solved and will be appreciated sumer and that person during the 18-month holders to ensure that the needs of by consumers. period immediately preceding the date on both consumers and the needs of small I thank my colleagues for supporting which the consumer receives the notice re- quired under this section; or businesses, banks and other credit it and Senators SARBANES and SHELBY agencies were addressed. for statements on the bill. ‘‘(B) an inquiry or application by the con- sumer regarding a product or service offered Our amendment provides consumers I yield the floor. by that person, during the 3-month period with the right to ask businesses for The PRESIDING OFFICER. The Sen- immediately preceding the date on which the records relating to a transaction evi- ator from Alabama. consumer receives the notice required under dencing identity theft. Businesses, in Mr. SHELBY. Mr. President, the this section. return, have the right to ask for spe- managers are prepared to accept this ‘‘(5) SCOPE.—This section shall not apply to cific kinds of identity verification and amendment. I commend Senator CANT- a’’. clear proof that the individual asking WELL and also Senator ENZI for the Mrs. BOXER. I ask unanimous con- for the information is, in fact, a victim work they have done in this regard. sent that Senator FEINSTEIN be added and not another fraudster. Also impor- The PRESIDING OFFICER. The Sen- as a cosponsor. tant to note, our amendment does not ator from Maryland. The PRESIDING OFFICER. Without require businesses, to keep new records Mr. SARBANES. Mr. President, we objection, it is so ordered. or seek out information not in their are happy to take this amendment. I Mrs. BOXER. Very briefly, this control. It simply requires businesses wish to echo the chairman in thanking amendment closes what I consider to to share current records with con- Senator CANTWELL and Senator ENZI be a little bit of a loophole in the mar- sumers who can prove they have been for their work on this important issue. keting opt-out provision of the bill. We victims of identity theft. This is an issue they have been ad- do two things. The underlying bill says I am confident that we have drafted dressing for quite some time, and we the marketing opt-out expires after 5 careful legislation that will truly help are very pleased that there are impor- years, unless a consumer opts out

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.074 S04PT1 S13878 CONGRESSIONAL RECORD — SENATE November 4, 2003 again. We make the first opt-out per- mation, including information that is an in- tion of medical information that allows med- manent as long as the consumer wants dividualized list or description based on the ical research to advance, while at the same it. payment transactions of the consumer for time, protects the rights and needs of pa- Secondly, the definition of a pre- medical products or services, or an aggregate tients and their family members. list of identified consumers based on pay- Sincerely, existing relationship with a company, ment transactions for medical products or DANIEL E. SMITH, with an affiliate, is drawn in such a services.’’. National Vice Presi- way, it is very broad. So what we say (c) DEFINITION.—Section 603(i) of the Fair dent, Federal and is, a person will be deemed to have this Credit Reporting Act (15 U.S.C. 1681a(i)) is State Government preexisting relationship with the affil- amended to read as follows: Relations. iate if they have purchased, rented, or ‘‘(i) MEDICAL INFORMATION.—The term WENDY K. D. SELIG, leased a service or good from the affil- ‘medical information’ means information or Vice-President, Legis- data, other than age or gender, whether oral lative Affairs. iate during the 18-month period before or recorded, in any form or medium, created the information sharing takes place or by or derived from a health care provider or CALIFORNIA MEDICAL ASSOCIATION, they have inquired about an affiliate’s the consumer, that relates to— Sacramento, CA, October 31, 2003. product in the 3 months before the ‘‘(1) the past, present, or future physical, Hon. DIANNE FEINSTEIN, sharing takes place. mental, or behavioral health or condition of U.S. Senate, By adopting this simple amendment, an individual; Washington, DC. we keep financial institutions from ‘‘(2) the provision of health care to an indi- DEAR SENATOR FEINSTEIN: On behalf of the violating consumer rights. I am very vidual; or California Medical Association and its 35,000 ‘‘(3) the payment for the provision of member physicians, we support your efforts pleased that both sides of the com- health care to an individual.’’. to protect patient medical information from mittee have signed off on this, and I Mrs. FEINSTEIN. Mr. President, this improper use or disclosure by employers, in- would be happy to take a voice vote on amendment essentially updates the surers or creditors. this at this time. Many patients and their families are con- definition of ‘‘medical information.’’ It The PRESIDING OFFICER. The Sen- cerned about the privacy information relat- takes a medical definition submitted ator from Alabama. ing to medical care, especially with the in- by the National Association of Insur- creasing use of electronic payments and data Mr. SHELBY. Mr. President, the ance Commissioners. It is the defini- keeping. We support a tight definition of managers are prepared to accept this tion that is used by a majority of our medical information of when such informa- amendment. States. I ask unanimous consent that a tion could be used. Your language accom- The PRESIDING OFFICER. The Sen- plishes this while at the same time allowing ator from Maryland. letter in support of this definition from appropriate utilization for research purposes. Mr. SARBANES. Mr. President, I ac- the American Medical Association, the Please let us know if we can do more to tually wish to commend the Senator American Cancer Society, the Cali- support your efforts. from California because she has intro- fornia Medical Association, the Com- Sincerely, munity Clinic Consortium, the San STEVEN M. THOMPSON, duced some specificity into a provision Vice President, Government Relations. that is in the committee-reported bill. Francisco AIDS Foundation, and the AIDS Health Care Foundation be print- I am very frank to say I think this will SAN FRANCISCO COMMUNITY ed in the RECORD. be very helpful, and I join the chair- CLINIC CONSORTIUM, There being no objection, the mate- man in supporting the amendment. San Francisco, CA, October 31, 2003. rial was ordered to be printed in the Mr. SHELBY. I urge the adoption of Re The San Francisco Community Clinic RECORD, as follows: the amendment. Consortium Supports S. 1753, the Medical The PRESIDING OFFICER. The AMERICAN MEDICAL ASSOCIATION, Information Privacy Amendment to the Fair Credit Reporting Act (FCRA). question is on agreeing to amendment Chicago, IL, November 3, 2002. Hon. DIANNE FEINSTEIN, No. 2060. Hon. DIANNE FEINSTEIN, U.S. Senate, Hart Senate Office Building, The amendment (No. 2060) was agreed Washington, DC. Washington, DC. to. DEAR SENATOR FEINSTEIN: On behalf of the DEAR SENATOR FEINSTEIN: The San Fran- Mr. SHELBY. Mr. President, I move American Medical Association (AMA), we ap- cisco Community Clinic Consortium—an or- to reconsider the vote. plaud you for your amendment that would ganization of neighborhood health centers Mr. SARBANES. I move to lay that improve the medical privacy protections in serving 66,000 low-income and uninsured San motion on the table. the National Consumer Credit Reporting Franciscans—strongly supports the passage The motion to lay on the table was System Improvement Act of 2003 (S. 1753). of S. 1753, the Medical Information Privacy Your amendment would strengthen the Amendment to FCRA. agreed to. protections in S. 1753 restricting the sharing The vague definition of ‘‘medical informa- AMENDMENT NO. 2061 of medical information for employment, tion’’ in FCRA creates loopholes in FCRA Mrs. FEINSTEIN. Mr. President, I credit or insurance purposes, by broadening protection that could prove harmful to peo- send an amendment to the desk on be- the definition of ‘‘medical information’’ to ple like our clinic clients with stigmatized half myself, Senator BOXER, and Sen- ensure that it covers all patient information diseases like mental illness, HIV/AIDS and held by physicians and other health care pro- long-term chronic conditions. S. 1753 cor- ator KENNEDY. viders, including mental and behavioral rects the potential problems and provides The PRESIDING OFFICER. The health information. the more complete protections that people clerk will report. Thank you for your efforts to protect sen- deserve. The assistant legislative clerk read sitive patient information in this important S. 1753 would clarify and strengthen as follows: legislation. FCRA’s definition of medical information. It The Senator from California [Mrs. FEIN- Sincerely, would also eliminate the false distinction be- STEIN], for herself, Mrs. BOXER, and Mr. KEN- MICHAEL D. MAVES, MD, MBA. tween medical information and medical NEDY, proposes an amendment numbered transaction information. This new definition 2061. AMERICAN CANCER SOCIETY, is critical to protecting the privacy of indi- Washington, DC, October 30, 2003. viduals with chronic illnesses. Even the pos- Mrs. FEINSTEIN. Mr. President, I Hon. DIANNE FEINSTEIN, sibility of breaches of patient medical record ask unanimous consent that the read- U.S. Senate, confidentiality undermines health care. Pa- ing of the amendment be dispensed Washington, DC. tients who know their medical care informa- with. DEAR SENATOR FEINSTEIN: On behalf of the tion could and would be shared with employ- The PRESIDING OFFICER. Without American Cancer Society and its millions of ers, credit organizations and insurance com- objection, it is so ordered. volunteers and supporters, we applaud your panies will be less forthcoming with their The amendment is as follows: efforts to protect patient medical informa- health care providers and, thus, the quality tion from improper use or disclosure by em- of health care they receive will be com- (Purpose: To address restrictions on the ployers, insurers or creditors. promised; this is neither necessary nor desir- sharing of medical information among af- Many cancer patients and their families able. filiates, and for other purposes) are concerned about the privacy of informa- SFCCC looks forward to continuing to On page 81, strike lines 6 through 15 and in- tion relating to their medical care, espe- work with you to protect the essential pri- sert the following: ‘‘to any person related by cially with the increasing use of electronic vacy of individuals’ medical and health sta- common ownership or affiliated by corporate payments and data keeping. As a result, the tus information; this is a cornerstone of ef- control, if the information is medical infor- American Cancer Society supports a defini- fective health care. Please call (415 345–4233)

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.069 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13879 if you need additional information or assist- amendment to the Fair Credit Reporting Act tion. This amendment builds upon these ance on this matter. that will protect the privacy of personal strides by correcting important deficiencies Sincerely, medical information in the form of payments in the Senate bill, and we strongly urge its JOHN GRESSMAN, for medical services and products and other adoption by the Senate and its inclusion in President/CEO. transactions. As the United States’ largest the legislation that emerges from the Con- AIDs organization, and provider of medical ference Committee. Again, we congratulate SAN FRANCISCO AIDS FOUNDATION, care to over 12,000 persons in the U.S., AHF you on your thoughtful and bipartisan San Francisco, CA, October 29, 2003. is acutely aware of the need to protect con- amendment, and wish you success in its pas- Hon. DIANNE FEINSTEIN, sumers from unauthorized use of data per- sage on the Senate floor later this week. Hart Senate Office Building, taining to their medical treatment. Such in- Sincerely, Washington, DC. formation is clearly private, and it is highly RAHM EMANUEL, DEAR SENATOR FEINSTEIN: The San Fran- inappropriate for it to be used for marketing Member of Congress. cisco AIDS Foundation strongly supports the or similar purposes. Such an abuse can only WALTER B. JONES, passage of S. 1753, the Medical Information erode the trust patients have in their med- Member of Congress. Privacy Amendment to the Fair Credit Re- ical providers and the medical system in Mrs. FEINSTEIN. I believe both sides porting Act (FCRA). While the FCRA at- general. Thank you, again, for sponsoring tempts to protect consumers from having this amendment, which AHF is happy to sup- will accept the definition, and I would their medical information used for employ- port. be happy to take a voice vote. ment, credit or insurance purposes, the Sincerely, The PRESIDING OFFICER. Is there vague definition of ‘‘medical information’’ in CLINT TROUT, further debate? FCRA creates loopholes in the protection Associate Director, Government The Senator from Alabama. that would prove harmful to people living Affairs-Federal. Mr. SHELBY. The managers are pre- with HIV/AIDS, mental illness and other pared to accept this amendment. stigmatized diseases. S. 1753 rectifies the CONGRESS OF THE UNITED STATES, The PRESIDING OFFICER. The Sen- problems in the underlying legislation and Washington, DC, October 30, 2003. ator from Maryland. provides the protections these consumers re- Hon. DIANNE FEINSTEIN, quire and deserve. Hart Senate Office Building, U.S. Senate, Mr. SARBANES. I join with my col- The current definition of medical informa- Washington, DC. league in accepting the amendment. I tion in FCRA does not protect the informa- DEAR SENATOR FEINSTEIN: We applaud you commend the Senator from California. tion consumers would supply on documents for your efforts to strengthen and improve Actually, medical information is some- such as life insurance applications, which the medical privacy protections containd in thing that people feel very keenly ask what medications a consumer is taking. your amendment to expand the definition of about and the Senator’s amendment Nor does FCRA protect information obtained ‘‘medical information’’ under The National will strengthen the provision that was without consent. A specific example of this Consumer Credit Reporting System Improve- is the reporting of unpaid medical bills from ment Act of 2003 (S. 1753). in the bill adopted in the committee. HIV clinics. FCRA does not protect con- Although the original bill’s medical pri- We thank her very much for the sumers from banks data mining its cus- vacy section includes significant new con- amendment. tomers’ medical payment transactions to sumer protections that black-out the use of Mr. SHELBY. I urge the adoption of make credit decisions. The majority of U.S. medical information for employment, credit, the amendment. bankruptcies are due to health care costs, or insurance purposes, it includes an inad- The PRESIDING OFFICER. The which give banks an incentive to determine equate definition of the term ‘‘medical infor- question is on agreeing to amendment a customer’s creditworthiness based on mation,’’ which could result in creating a No. 2061. health. The ties between insurance compa- loophole that weakens the bill’s intended ob- The amendment (No. 2061) was agreed nies and banks are continuously strength- jective. By describing ‘‘medical information’’ ened as large banks often have hundreds of using the National Association of Insurance to. affiliates, many of whom are also insurance Commissioner’s (NAIC) definition, which has Mr. SHELBY. Mr. President, I move companies. As insurance companies move to been agreed upon and implemented by insur- to reconsider the vote. electronic forms of payments, they are giv- ance regulators in a vast majority of states, Mr. SARBANES. I move to lay that ing banks large amounts of medical trans- your amendment closes existing loopholes motion on the table. action data about their clients. This may in- and eliminates the opportunity for unscrupu- The motion to lay on the table was clude the type of clinic and specific service lous use of sensitive medical information. agreed to. delivered. We also support your amendment because S. 1753 would clarify and strengthen it eliminates the inconsistent differentiation AMENDMENT NO. 2062 FCRA’s definition of medical information between medical information and medical Mr. DURBIN. I send an amendment and eliminate the false distinction between transaction information, providing greater to the desk. medical information and medical trans- certainty to the bill’s language and to future The PRESIDING OFFICER. The action information. This new definition is interpretations of legislative intent. This clerk will report. essential for people living with HIV/AIDS be- would be a marked improvement to the un- The assistant legislative clerk read cause it provides them with financial pri- derlying bill’s definition of medical informa- as follow: vacy. After more than 20 years of dealing tion, which as currently written does not The Senator from Illinois [Mr. DURBIN] with the epidemic, there is still significant protect mental or behavioral health informa- proposes an amendment numbered 2062. cultural stigma attached to HIV disease. Po- tion, data provided by consumers on life in- tential disclosure of medical information surance applications, or medical information Mr. DURBIN. Mr. President, I ask and breaches in financial privacy create ad- obtained without consent, such as the re- unanimous consent that the reading of ditional health care access barriers. It is porting of an unpaid bill from a cancer cen- the amendment be dispensed with. therefore essential that the confidentiality ter. We believe the effect of these harmful The PRESIDING OFFICER. Without of ones health status and medical informa- oversights can be negated by passage of your objection, it is so ordered. tion be protected from inappropriate use in amendment. employment, credit or insurance purposes. As you know, millions of consumers worry The amendment is as follows: The AIDS Foundation looks forward to that their health providers or insurers may (Purpose: To require reporting to national working with you to promote medical infor- be sharing their private information with consumer reporting agencies regarding mation privacy and health status confiden- others. Beyond this concern, however, is a Federal student loans in order to promote tiality. Please do not hesitate to call at 415– feeling that they have less and less control the responsible repayment of such loans 487–3096. over their sensitive medical files. Medical in- and ensure the completeness of informa- Sincerely, formation should have no place in employ- tion contained in consumer credit reports ERNEST HOPKINS, ment decisions or credit determinations and and scores) Director of Federal Affairs. related corporate entities should not be able At the end of section 312, insert the fol- to share it—this information deserves the lowing: AIDS HEALTHCARE FOUNDATION, strongest protection under the law, but be- (c) REPORTS TO CONSUMER REPORTING Los Angeles, CA, November 3, 2003. yond that, it is important that we give con- AGENCIES.— Re Letter of support for privacy amendment sumers back some control over who can and (1) REPORTS.—Section 430A(a) of the Higher to S. 1753. cannot use this information. Education Act of 1965 (20 U.S.C. 1080a(a)) is Hon. DIANNE FEINSTEIN, Both the National Consumer Credit Re- amended to read as follows: Hart Senate Office Building, porting System Improvement Act and the ‘‘(a) AGREEMENTS TO EXCHANGE INFORMA- Washington, DC. Fair and Accurate Credit Transactions Act, TION.— DEAR SENATOR FEINSTEIN: recently passed by the House of Representa- ‘‘(1) IN GENERAL.—For the purpose of pro- AIDS Healthcare Foundation (AHF) would tives, contain landmark provisions pro- moting responsible repayment of loans cov- like to thank you for sponsoring a legislative tecting consumers’ private medical informa- ered by Federal loan insurance pursuant to

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.065 S04PT1 S13880 CONGRESSIONAL RECORD — SENATE November 4, 2003 this title or covered by a guaranty agree- the announcement of that intention, forward to working with them. Thank you ment pursuant to section 428, the Secretary, we have been negotiating with Sallie for your interest in this important issue. each guaranty agency, eligible lender, and Mae, the Government-sponsored enter- Please feel free to contact me if you have subsequent holder shall enter into an agree- prise which is the largest provider of questions or need additional information. ment with each national consumer reporting Sincerely, agency as described in section 603(p) of the student loans in the country. The rea- ROSE DINAPOLI, Fair Credit Reporting Act (15 U.S.C. 1681a(p)) son for this amendment was a new pol- Vice President, Government & Industry to exchange such information as is required icy of Sallie Mae, as of a few months Relations, Sallie Mae. by the Secretary concerning each borrower ago. In fact, about a year ago Sallie Mr. DURBIN. The letter makes it of a loan made, insured, or guaranteed under Mae decided to stop reporting repay- this title who is served by the Secretary, clear that Sallie Mae is reversing its ment information to two of the three position; that from this point forward agency, lender, or holder, respectively, re- major credit bureaus in the United gardless of the default status of the bor- they will report repayment of student rower. Such information shall be reported to States. It turns out that the Higher loans to all three major credit bureaus. the agencies regularly, shall be identified as Education Act, which governs Sallie This is what my amendment sought to pertaining to such a loan, and shall include Mae, required that defaults on student achieve, so I am going to withdraw this any positive or negative repayment informa- loans be reported to all three national amendment and thank both Senator tion relevant to the borrower. credit bureaus but, by regulation, posi- ‘‘(2) OBJECTIONS RAISED BY BORROWERS.— SHELBY and Senator SARBANES for tive repayment information only went their cooperation and urge them to For the purpose of assisting the reporting to one. agencies in complying with the Fair Credit join me in offering an amendment to As a consequence, many responsible Reporting Act, such agreements may provide the Higher Education Act which codi- for timely response by the Secretary (con- students who had paid off their student fies in law this new policy that the Sal- cerning loans covered by Federal loan insur- loans were not provided the credit in- lie Mae agency has now decided to im- ance), by a guaranty agency, eligible lender, formation on their own backgrounds so plement. or subsequent holder (concerning loans cov- that it was clear that they paid off There is no reason responsible college ered by a guaranty agreement), or to re- their loans. So these students who had students, having paid off their loans, quests from the reporting agencies, for re- turned to a credit bureau for a mort- should be penalized because Sallie Mae sponses to objections raised by borrowers. gage or a loan on a car would have an ‘‘(3) NONPAYMENT.—Subject to the require- refuses to notify all three major credit outstanding student loan. It worked to ments of subsection (c), such agreements bureaus in America. I am glad with their disadvantage. This decision by shall require the Secretary, the guaranty this letter they have decided to change Sallie Mae worked a terrible disadvan- agency, eligible lender, or subsequent holder, their policy. I hope at a later time to tage to students who had done the as appropriate, to disclose to the reporting offer this amendment to the Higher agencies, with respect to any loan under this right thing. Education Act and thank the members part that has not been repaid by the bor- I made it clear to the chairman, Mr. of the committee for their cooperation rower— SHELBY, as well as Senator SARBANES, in this regard. ‘‘(A) the total amount of loans made to that I thought this was an injustice any borrower under this part and the re- Mr. DURBIN. Mr. President, Section that needed to be corrected. Fortu- maining balance of the loans; 312 of the bill before us is entitled nately for me and for the students in- ‘‘(B) information concerning the date of ‘‘Procedures to enhance the accuracy volved, Sallie Mae has sent a letter. I any default on the loan and the collection of and completeness of information fur- understand Chairman SHELBY, if I am the loan, including information concerning nished to consumer reporting agen- the repayment status of any defaulted loan not mistaken, has received a copy of cies.’’ My Responsible Student Amend- on which the Secretary has made a payment this letter from Sallie Mae; is that cor- ment addresses exactly that: the com- pursuant to section 430(a) or the guaranty rect? pleteness of information furnished to agency has made a payment to the previous Mr. SHELBY. If the Senator will holder of the loan; and consumer reporting agencies. My yield, we do have a copy of the letter ‘‘(C) the date of cancellation of the note amendment is designed to ensure that from Sallie Mae. upon completion of repayment by the bor- young Americans who have positive rower of the loan or payment by the Sec- Mr. DURBIN. I ask unanimous con- sent this letter be printed in the credit histories established by respon- retary pursuant to section 437.’’. sibly repaying their student loans will (2) TECHNICAL AND CONFORMING AMEND- RECORD. be able to take a clean shot at the MENTS.—The Higher Education Act of 1965 (20 There being no objection, the mate- U.S.C. 1001 et seq.) is amended— rial was ordered to be printed in the American dream when they try to buy their first home. It does so simply by (A) in section 427(a)(2)(G)(i) (20 U.S.C. RECORD, as follows: 1077(a)(2)(G)(i)), by striking ‘‘credit bureau requiring what until recently was organizations’’ and inserting ‘‘reporting SALLIE MAE, INC., Washington, DC, November 4, 2003. standard practice for student loan pro- agencies’’; viders; regular reporting on all loan re- (B) in section 428C(b)(4)(E)(i) (20 U.S.C. Hon. RICHARD C. SHELBY, U.S. Senate, Committee on Banking, Housing payments to each of the three major 1078–3(b)(4)(E)(i)), by striking ‘‘credit bureau credit bureaus. organizations’’ and inserting ‘‘reporting and Urban Affairs, Washington, DC. agencies’’; and Hon. PAUL S. SARBANES, Until recently, responsible repay- (C) in section 430A (20 U.S.C. 1080a)— U.S. Senate, Committee on Banking, Housing ment of student loans was rewarded as (i) in subsection (b)— and Urban Affairs, Washington, DC. would be expected, with a positive DEAR SENATORS SHELBY AND SARBANES: I (I) by striking ‘‘such organizations’’ and credit history. Responsible repayment am writing to update you on how Sallie Mae inserting ‘‘the reporting agencies’’; and reports the credit performances of our cus- was responsibly reported by student (II) by striking ‘‘(a)(2)’’ and inserting tomers to the national credit bureaus. loan providers, in the typical fashion, ‘‘(a)(3)(B)’’; Our goal is to ensure that our customers to all three major credit bureaus. One (ii) in subsection (c)(2), by striking ‘‘such get the credit they have earned. To that end, organizations’’ and inserting ‘‘the reporting of those providers, the biggest, is Sallie we have been reporting to one of the na- agencies’’; Mae. Sallie Mae was founded in 1972 as tional credit bureaus all along, as required (iii) in subsection (b)(4)— a government-sponsored enterprise, by law. When we learned recently that one of (I) by striking ‘‘(a)(2)’’ and inserting GSE. In 1997, the company initiated the our borrowers has not had full access to his ‘‘(a)(3)(B)’’; and privatization process. Sallie Mae, in credit history, we began negotiating again (II) by striking ‘‘credit bureau organiza- with the other two credit bureaus so that we other words, was born and raised on the tions’’ and inserting ‘‘the reporting agen- could resume reporting to them. taxpayers dime. One might hope that it cies’’; I am pleased to let you know that fol- would therefore feel some responsi- (iv) in subsection (d), by striking ‘‘credit lowing extensive discussions with the other bureau organization’’ and inserting ‘‘report- bility to keep taxpayers’ interest in two credit bureaus, Sallie Mae has agreed to ing agency’’; and mind. resume reporting to them and will provide (v) in subsection (f), by striking ‘‘consumer About a year ago, however, Sallie each with credit information for our cus- reporting agency’’ each place the term ap- Mae, by far the largest provider of Fed- tomers. We will keep you and your staffs ap- pears and inserting ‘‘reporting agency’’. prised as we move forward in implementing erally guaranteed student loans, sud- Mr. DURBIN. Mr. President, I an- this decision. denly stopped reporting repayment in- nounced my intention to offer this We are pleased that the credit bureaus are formation to two of the three major amendment at an earlier date. Since being responsive to our concerns and we look credit bureaus. It turns out that The

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.021 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13881 Higher Education Act, which estab- and families and therefore using credit cern about an issue that could affect lished the Federal student loan pro- cards more than average users. They, countless graduates who work hard to gram, requires that defaults on student therefore, may benefit from being able pay off their student loans. loans be reported to all three national to compare the credit card package A little over a year ago, Sallie Mae— credit bureaus, while positive repay- they have with the offerings of com- one of the largest originators of stu- ment information only has to go to petitors. dent loans and the largest secondary one. Is this the way we want to reward By trying to shield its customers market for student loans—made a responsible repayment of student from competing offers, Sallie Mae does quiet decision that had a huge impact loans? Don’t we want a system that re- them a disservice twice: it punches a on college graduates. wards responsible repayment, rather big hole in their credit histories, re- Sallie Mae refused to report student than one that shrugs and says that sulting in higher rates on mortgages loan repayment histories to two out of that information doesn’t matter? and other new loans, and it prevents three major credit reporting agencies. What is the result of Sallie Mae not them from learning of better deals for That means graduates—most of whom reporting to two of the three major other financial services. Each of these have good records of paying on their credit bureaus? Thousands of young alone could cost consumers thousands student loans—have huge holes in their people—whose main or only use of of dollars. credit histories holes that prevent credit has been their student loans My amendment prevents that from them from establishing credit or get- from Sallie Mae—suddenly have major happening. It amends the Higher Edu- ting the best rates to buy their first gaps in their credit histories. Stories in cation Act by adding the word ‘‘each,’’ home. the Washington Post and the American requiring reporting to each of the I recognize that our credit reporting Banker have described the case of one major ‘‘consumer reporting agencies’’— system is essentially voluntary. There typical 31 year old, named Eric credit bureaus—and making clear that is no legal requirement that any pri- Borgeson. Mr. Borgeson is an architect both positive and negative information vate business report information to who lives in Edwards, CO. Mr. should be accurately reported. any credit bureau. However, Sallie Mae Borgeson, who graduated from college Responsible repayment of student is an exception. U.S. Department of 10 years ago, had a perfect credit re- loans should be rewarded by inclusion Education regulations require Sallie payment record on his three Sallie Mae in accurate and complete credit his- Mae to report student loan credit re- loans. Then, midway through the tories. This amendment will ensure port histories to at least one of the home-buying process, his credit score that result. three major credit reporting agencies. Until last year, they reported to all dropped by 40 points. Sallie Mae had AMENDMENT NO. 2062 WITHDRAWN three agencies. Then, Sallie Mae de- pulled his perfect repayment records I need no further time. I ask unani- cided to stop reporting to two of the from his credit reports with two of the mous consent to withdraw my amend- agencies. Some say they stopped be- three major credit bureaus. As a result, ment. cause those two agencies routinely sold he ended up with a lower credit score The PRESIDING OFFICER. Is there lists of Sallie Mae customers to com- and a significantly higher interest rate objection? Without objection, the petitors who could offer better deals. on his mortgage, that he estimates will amendment is withdrawn. Sallie Mae maintains that they were cost him nearly $200 more per month in Mr. SARBANES. Mr. President, I protecting their customers from un- interest payments. commend the able Senator from Illi- wanted solicitations. Why has Sallie Mae stopped report- nois because he saw a problem and fas- Whatever the reason, the result is ing to two of the three major credit bu- tened on it and as a consequence, we at clear: students who have worked hard reaus? The answer is simple: pre- least have a solution, at least at the to complete their education are hurt screened lists. Credit bureaus typically regulatory level. I understand the Sen- by this policy. Graduates entering the sell lists of their customers, pre- ator may well pursue it statutorily, al- workforce and attempting to establish screened to meet certain criteria based though Sallie Mae is not under the ju- credit—even those who may have excel- on the information in their credit re- risdiction of our committee, as he un- lent records paying off their student ports. Sallie Mae’s competitors were derstands. loans—end up with incomplete credit using such lists to offer Sallie Mae’s I share his concern. I think this was records. On that basis alone, they may customers better deals. Rather than an unacceptable situation which ex- be denied credit. meet the competition, Sallie Mae sim- isted. Because of the actions of the This is a significant problem. Leav- ply decided to pull its customers’ infor- Senator from Illinois and also the Sen- ing out positive credit information on mation from bureaus that wouldn’t ator from Wisconsin, Mr. KOHL—who student loans can lead to a lower credit agree to stop selling pre-screened lists. also took a keen interest in this issue— score for consumers. Lower credit Sallie Mae claims that it is simply I think we have the resolution of it. I scores penalize consumers in the form protecting its customers from un- appreciate the Senator’s action. of higher credit card and mortgage in- wanted solicitations. Sallie Mae The PRESIDING OFFICER. The Sen- terest rates, more expensive insurance, knows, however, that there is a toll ator from Alabama. and even the risk of being excluded free phone number people can call to Mr. SHELBY. I take a minute to from the marketplace altogether. keep their name off of such pre- commend Mr. DURBIN, the Senator Sallie Mae’s decision has been espe- screened lists. If it really was con- from Illinois, for his good work in this cially detrimental to new home buyers. cerned about protecting its customers area. He has recognized this as a very Mortgage credit is generally based on a from unwanted credit card solicita- important issue and has done some- merged credit report which incor- tions, it could simply publicize that thing about it. Whether it is Sallie Mae porates information from all three number: 888–567–8688. or anybody else, what we are interested credit repositories. It can only provide The group of consumers in question in is all the reporting we can get that an accurate credit history if all three here is a unique group of consumers. would affect someone’s credit. I again reports are complete. Just starting their careers, still paying commend Senator DURBIN for the work The Washington Post recently high- off their loans: if there is any group of he has done. I am sure he will follow up lighted the story of a 31-year-old archi- consumers that benefits from competi- and make sure this is part of the law. tect who applied for a mortgage to buy tion among loan providers and Mr. DURBIN. Mr. President, I thank a new house. Because Sallie Mae did consolidators, this group is it. This is a my colleagues. My colleague, Senator not report his years of on-time student group that often wants to hear from HERB KOHL, shares my feeling on this loan payments to all the credit bu- Sallie Mae’s competitors. Those still issue and introduced a similar amend- reaus, his credit score dropped 40 repaying their student loans may get ment and joins with me in saluting this points—and his mortgage rate in- offers from consolidators who will com- change and making it clear we are creased 1.5 points—costing him $200 bine all their loans and charge a lower going to move forward. dollars more per month in interest pay- overall interest rate. Those who have Mr. KOHL. Mr. President, I rise ments. finished repaying their student loans today to join Senators DURBIN, SHELBY After learning of this problem last are often establishing homes, careers, and SARBANES in expressing our con- month, I have been in touch with Sallie

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.081 S04PT1 S13882 CONGRESSIONAL RECORD — SENATE November 4, 2003 Mae to urge them to resume full credit to protect Americans from what is the and get that information blocked so reporting to all three of the major fastest growing crime in America— that their good name is restored. credit reporting bureaus. I have also identity theft. The amendment that we just adopted been in touch with the chairman and Unfortunately, even though the Sen- deals with another aspect of this prob- ranking member of the Banking Com- ate passed the Cantwell-Enzi legisla- lem, which is getting access to business mittee, and with Senator DURBIN. I ap- tion last year, the House failed to act records. Law enforcement in the State preciate their willingness to work with on it and the number of victims has of Washington have been very success- me to ensure that student loan repay- continued to grow. In fact, 9 million ful at dealing with crimes of identity ment histories are fully reported to all Americans have been the victims of theft because identity thieves are often the major credit bureaus. identity theft. This underlying bill in- criminals who are involved in larger I am especially pleased that today, corporates some of those good ideas activities. There is a high correlation Sallie Mae announced that they have that my colleague from Wyoming between people who are involved in reached agreement with the credit bu- worked so hard on in the Banking Com- identity theft—who use that stolen reaus and will now begin reporting to mittee and that we worked through the identity to get access to cash and re- all three once again. I appreciate their Judiciary Committee to pass. I cer- sources in the State of Washington— efforts to work with our offices to solve tainly commend my colleague, Senator and people who are involved with this problem and ensure that their cus- ENZI, for his dedication to this issue. methamphetamine production. These tomers get the credit they have earned. Consumers in America are going to be criminals are involved in both drug ac- I commend Sallie Mae for doing the more protected because of his efforts. tivity and identity theft. With this amendment, police can now right thing and fixing this problem It has been a pleasure to work with get access to business records. Any vic- promptly. him on these challenging issues, to tim, or law enforcement official acting This is truly a positive step forward, make sure those protections are put in on behalf of the victim, will have ac- but I think we should take one more at place. cess to business records within 20 days the appropriate time. Congress should The underlying bill that we have after the victim provides identifica- codify these new agreements in law by passed changes the framework by tion, an affidavit and a police report to requiring Sallie Mae to report to all which consumers can now restore their the business. This gives consumers a three major credit bureaus. This will good name and protect their identity. real tool to correct the harm caused It does so, first and foremost, as Sen- guarantee graduates that their student them by this crime. This is a very fun- ator ENZI and I suggested, by formu- loan payment histories will always be damental part of this bill. reported and their credit scores will be lating an affidavit process. So many The last aspect of the identity theft complete. It will make sure that we do people in America are victims of iden- bill that is part of the amendment we not face further problems in the future. tity theft. But I can tell you this: it is just agreed to deals with the statute of Senator DURBIN and I have both been not a crime for which you can call 911 limitations. In the 2001 Supreme Court working on amendments that would do and get immediate response. The big- case of TRW v. Andrews, the Court just that. While I will not offer an gest problem, once you are a victim of ruled that the statute of limitations in amendment on this bill, I look forward identity theft, is proving that you are these cases runs for 2 years from the to working with Senator DURBIN, in fact the person whose identity has time the crime is committed. But what Chairman SHELBY, and Senator SAR- been stolen. we have found is that some victims of BANES to address this issue in the fu- I like to say that, in the case of the identity theft don’t even realize they ture. perpetrator who steals your television are victims until a year or 2 years after Mr. REID. Mr. President, I know the set right out of your living room, the identity theft has occurred. The two managers are on the floor. I want chances are that he is somewhere in statute of limitations therefore im- to bring to their attention that Sen- the neighborhood. But the crime of pacted the ability of victims to get jus- ator CANTWELL has been waiting to identity theft could involve someone tice. The underlying amendment we speak for some time on an amendment anywhere in the country, or for that just agreed to extends the statute of which was adopted. If you could work matter, outside the United States, limitations to give victims of identity them into the order, I would appreciate working with a ring. theft 5 years from the time the crime it. So part of what we are trying to do, was committed. Ms. CANTWELL. Mr. President, my first and foremost, is to give victims This underlying bill with the amend- colleague from Wyoming and I tried to and law enforcement tools to help vic- ment we just agreed to represents a accommodate Members who were here tims reclaim their identity. The affi- critical first step in dealing with one of in the last few minutes, trying to get davit process that now must be accept- the most important issues I think we several amendments adopted. ed by business owners and credit agen- will deal with in this information age, I want to spend a few minutes going cies as proof that you are a victim of which is the issue of privacy. While into more detail about the Cantwell- identity theft is the first step in mak- this body has tried to deal with this Enzi Restore Your Good Name Act that ing sure that your credit record is cor- issue in myriad ways by protecting the has been incorporated into the Fair rected and perpetrators are prevented financial and health records of individ- Credit Reporting Act. from continuing to ruin your credit. uals, and by making sure that either I would first like to thank the chair- Second, the credit provisions that opt-in or opt-out legislation have been man and ranking members of the com- Senator ENZI was successful in getting cleared with consumers, I think we mittee for their strong support of this added in committee represent a tre- have much more work to do in the area underlying bill that has been incor- mendous step in solving the problem of privacy. But you can be sure the porated, along with the last amend- that so many Americans face when Fair Credit Reporting Act before us ment that we just voted on by voice a their identity is stolen—that the per- today and the Cantwell-Enzi amend- few minutes ago, dealing with business petrators continue to pose as them, ment and language adopted with it records. running up large credit bills. take a very positive step in dealing It was roughly 2 years ago that the In the case of a constituent I re- with one of the biggest privacy threats chairman of the Banking Committee cently met in Washington State, the to Americans today—identity theft. and I spoke at a national platform for perpetrator who stole the constituent’s With these tools, law enforcement the attorneys general of America to ad- license succeeded in buying five dif- and individual consumers whose identi- dress the issue of privacy and some of ferent vehicles. My constituent has ties have been stolen will have the the biggest challenges to privacy at continued to be a subject of investiga- tools to make the process of reporting that time. We both made known our tion by law enforcement as she has and resolving identity theft go smooth- view that this country needed stronger tried to prove that it was, in fact, her er. While some may have said busi- legislation in the area of identity theft. identity that was stolen, that she was nesses would oppose the underlying I commend the chairman and the the victim. So a critical part of this amendment, or some of the features of ranking member for their strong step legislation is the fact that individuals the Cantwell-Enzi amendment, busi- forward, a really critical step forward, will be allowed to go to a credit agency nesses have seen record losses of $22

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.079 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13883 billion a year from identity theft, and I would like to engage in a colloquy like function. In fact, it has been estimated they have joined in this effort to make with the chairman of the committee. to us that in a typical transaction banks sure we pass strong national legisla- As the chairman knows, after a long make three to four times more money on off- tion. fight Congress enacted legislation so line transactions than on online trans- actions. I again thank Senator SARBANES and that every ATM—no matter if it is run In part to make up for this revenue dif- Senator SHELBY for their hard work, by a bank or private operator—tells ferential, banks have introduced new debit and certainly Senator ENZI for his ef- you when you are being charged. Cus- card fees in the form of a charge to the con- fort and his stewardship in making tomers have come to know and expect sumer for each PIN-based, online transaction sure we have good legislation in the that warning. But there is no warning he or she makes. This fee comes on top of the process that can go on to passage and when you use your card at a store and flat fee already charged to the merchant. that will better protect consumers in use it as a debit card. As often as not, However, the consumer may be unaware of America. these fees at the time of the purchase. He or you are charged. Is that correct? she has no explicit disclosure of the fee at I yield the floor. Mr. SHELBY. If the Senator will The PRESIDING OFFICER (Mrs. the point of sale, and no option to accept or yield, I understand the concerns. I deny the additional charge, or to pay cash or DOLE). The Senator from New York. think it is also true that debit card use a different payment to avoid the fee. The Mr. SCHUMER. Thank you, Madam transactions and ATM transactions evidence of the debit car fee shows up only President. have some significant differences. later on the consumer’s monthly bank state- I thank Chairman SHELBY and Rank- Namely, the retailer owns the debit ment. The debit card fees are published to- ing Member SARBANES for the wonder- machine while the bank owns the ATM gether with ATM fees, making it difficult for ful job they did on this legislation. An the consumer to distinguish or understand machine. This makes a ‘‘point of sale’’ important measure such as this that the charges. Many consumers end up calling disclosure—as we achieved in Gramm- sails through the floor in 1 day is a the retailer to complain about the fee in the Leach-Bliley—more difficult since tribute to the statesmanlike and fine mistaken belief that it was the retailer, not banks cannot easily adjust the equip- legislative hand of our new chairman of their bank, that initiated the charge. ment and the software. The growth of debit cards and the rise in the Banking Committee and, of course, Mr. SCHUMER. I ask unanimous con- debit cards fees makes this an important the steady and wise old hand of our sent that the letter the chairman, the issue. The number of parties involved in the former chairman of the Banking Com- ranking member, and myself are sub- debit cards transactions—retailers, con- mittee and now the ranking member. sumers, electronic payment networks, and mitting to the Federal Reserve Board I have been ready to offer an amend- banks—makes this a complex issue. As al- ment on an issue related but not di- be printed in the RECORD. ways we appreciate your support and the There being no objection, the mate- rectly on point to this legislation; that diligence and expertise of the staff at the rial was ordered to be printed in the is, debit cards. Right now, millions of Federal Reserve Board in helping us to con- RECORD, as follows: Americans use debit cards. They are sider and to address the disclosure of debit U.S. SENATE, COMMITTEE ON cards fees to consumers. great. You don’t need a checkbook BANKING, HOUSING, AND URBAN Sincerely, when you have a debit card. It solves AFFAIRS, RICHARD SHELBY, many problems. It is a real measure of Washington, DC, November 6, 2003. Chairman. convenience. They are easy and they Hon. ALAN GREENSPAN, PAUL SARBANES, save a little time. You don’t have to go Chairman, Board of Governors of the Federal Ranking Member. to the bank and get cash. It is a win- Reserve System, Washington, DC. CHARLES SCHUMER, win, except for one catch: Most con- DEAR CHAIRMAN GREENSPAN: We are writ- United States Senator. sumers think when they pay with a ing to request a study by the Board of Gov- Mr. SCHUMER. Mr. Chairman, I ernors of the disclosure of fees imposed by fi- know you have been in support of the debit card it is free; that it doesn’t cost nancial institutions on consumers in debit anything. However, many banks are card transactions. Our request is outlined in Feds doing the study so we can see now charging the consumer when he or the attached document. what to do next year in terms of legis- she uses the debit card as much as As you know, consumers are increasingly lation; I ask if that is amenable to $1.50. In my State of New York, about using debt cards as an alternative to cash or you? half the banks charge anywhere be- credit cards. In 2001, there were estimated to Mr. SHELBY. Absolutely. Senator tween 25 cents to $1.50. When I have be over 250 million bank cards in circulation SARBANES and I agree with Senator with a debit function, and today it is esti- asked consumers, they don’t know. My SCHUMER and support further study of mated that debit payments make up almost this issue. We have planned and drafted wife didn’t know. 12 percent of retail payments. The reasons What I want to do is what I did in the for this growth are clear. Debit cards offer a letter to the Federal Reserve Board House on credit cards and what I was convenience for consumers, and they offer asking them to conduct a comprehen- able to do here in the Senate with substantial cost savings for banks through sive review of this issue. ATMs—not eliminate the fees, because more efficient electronic processing. Mr. SCHUMER. I ask the ranking that is up to each bank but, rather, dis- Debit cards can be used by a consumer in member for his views on this letter and close them. two ways. In an online transaction, the con- what we have to do in terms of disclo- There are a couple of problems with sumer enters his/her personal identification sure on debit cards. disclosure. One is because it is not the number (PIN), and the debit occurs through Mr. SARBANES. I share the chair- an electronic transfer of funds over a local man’s view. I think the Senator from banks that own the machines—the debit network, e.g., InterLink or Plus, from ATMs—rather, it is the stores. the consumer’s bank to the merchant’s bank. New York has spotlighted a very im- It is a little more difficult to get that In an offline transaction, the consumer signs portant issue, but probably the best information out to the consumer even his/her name on a receipt, and the trans- way to proceed now is with this joint when the consumer swipes the card. action occurs over a MasterCard or Visa net- letter to the Federal Reserve. Then we What we have done here is ask the Fed- work linked to the bank. would have the benefit of their study of eral Reserve to within 6 months study However, depending on how the consumer this issue as we move ahead to try to this issue and show us how it can be chooses to use his or her debit card, banks address it. done. charge and make different amounts of Mr. SCHUMER. I thank the ranking money. In an offline transaction, banks In addition, there is another point charge a merchant from approximately 1.5 member. We will make progress on our amendment has that we ask the percent to 1.99 percent of the total value of debit cards. I will not go into all the Federal Reserve to study; that is, at the transaction, similar to credit card trans- details of the study. The letter is quite least putting it on the monthly bank actions that utilize the Visa or MasterCard detailed. The Federal Reserve is will- statement in clear letters what the fees networks. For example, in a $100 transaction, ing to do it. are for debit cards. That is not done the merchant would be charged up to $2.00 I make two other points after com- now. There are kids in college who for the processing of the transaction over the mending my colleagues on the bill were mailed these cards, and they used Visa or MasterCard network. In an online overall. I am proud to be a cosponsor transaction, banks charge the merchant a them to buy a Coke. The Coke was a flat fee of about thirty cents. and supporter of this bill. There are dollar. The fee was a dollar. If they As those numbers illustrate, banks typi- two parts of the bill in which I was par- knew it cost $1, they probably wouldn’t cally make more money when consumers use ticularly interested. One is identity do it anymore. their debit cards in the offline or credit card- theft which has become an epidemic.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.082 S04PT1 S13884 CONGRESSIONAL RECORD — SENATE November 4, 2003 When your identity is stolen, it can priate) in any case in which there has been, general public, teach the principles of take years to bring back your credit or is reasonably believed to have been unau- proper financial management, which is rating, even through no fault of your thorized access to computerized or physical one of the most important elements in own. The criminals are getting very records which compromises the security, individual personal finances. When confidentiality, or integrity of consumer in- good at identity theft. formation maintained by or on behalf of that citizens find they are on the short end I introduced comprehensive legisla- entity, except that such regulations shall of their credit reports and they are in tion in this regard much earlier this not apply to a good faith acquisition of infor- court to solve a bankruptcy, they wish year. The chairman has added provi- mation by an employee or agent of such enti- they had learned more in school re- sions very similar to those I have in- ty for a business purpose of that entity, if garding managing personal finances. troduced. As a result, this bill does a the information is not subject to further un- The identity theft issue, which is good job. Right now, becoming a victim authorized access.’’. part of why I have offered the breached of identity theft is as easy as saying Mr. CORZINE. I understand the customer data amendment, is so impor- your ABC’s. With this legislation, it amendment will be agreed to by both of tant. This is an epidemic in our soci- will be tougher. the managers but let me first say that ety. The number of breaches, the num- My hometown, New York City, has this amendment is about disclosure of ber of extraordinary cases of individual the unfortunate distinction of being breached customer data that may exist pain that has come from people breach- the identity theft capital of the world. in our system. Frankly, 85 percent of ing our technologically connected I am glad we were able to do something businesses that have sophisticated world today is overwhelming. The pro- quickly in that regard. computer systems have identified tections we have started to talk Second, on credit scoring, this is an- breaches in their system. My amend- about—fraud alerts, limitations on other issue on which the Senator from ment asks for the reporting of those transfer of debt, and this free credit re- Colorado and myself worked long and breaches to the FTC so we can get a port a year—will go a long way toward hard. We thank the chairman and database and understand it. trying to shape it up. ranking member for incorporating that Mr. SHELBY. Madam President, the We could go further in this area, in into the legislation. managers are prepared to accept the my own view. As the Senator from New The bottom line is, consumers have amendment offered by Senator York discussed, this is an important been kept in the dark about what their CORZINE. It is a good amendment and piece of legislation. I wish we had done credit score is and how it is computed. makes a lot of sense. a little more to control the use of fi- This legislation, by adding the Schu- Mr. SARBANES. The amendment of nancial information, particularly mer-Allard provision, lifts the veil of the Senator from New Jersey makes a among affiliates in some of our most secrecy over credit scores. When a positive contribution to this legisla- complex organizations where there are bank is going to charge you more for tion. I am certainly happy to accept it. 1,000 or 1,500 affiliates, some spread out your mortgage, which could mean hun- I also thank the Senator for all the but not as broadly controlled as some dreds and hundreds of dollars every work he did in the committee on so Members might think relative to what quarter, much more money every many provisions in this legislation. He I know is in the case of the world fi- month, now you will be able to find out had a major hand in shaping the bill. I nancial markets. why and if there is incorrect informa- deeply appreciate that. But that said, this is a fine piece of tion as to why you are being charged Mr. CORZINE. I appreciate that rec- legislation. The manager and ranking more. Maybe it is because you have a ognition. member should be congratulated, as whole lot of credit cards, for instance, The reality is the chairman and should all of the members of the com- even if you pay your bills on time. You ranking member showed great steward- mittee, including the Presiding Officer. will be able to correct it. ship and leadership to get this bill in a With that, I will yield the floor. This is fine legislation. I am speeding position where it has broad support in The PRESIDING OFFICER. The Sen- things along here because I know peo- this body. It is going to make a big dif- ator from Nevada. ple want to move quickly. I thank the ference in the financial marketplace Mr. REID. Madam President, has chairman. for consumers. that amendment been disposed of? The PRESIDING OFFICER. The Sen- Both the reauthorization and addi- The PRESIDING OFFICER. It has ator from New Jersey. tional elements embedded in this bill not. AMENDMENT NO. 2064 have truly improved our credit system, Is there further debate? Mr. CORZINE. Madam President, I which is already the finest in the If not, the question is on agreeing to have a couple of general remarks about world. I thank the ranking member. I amendment No. 2064. the overall legislation and I have an want to make sure the chairman knows The amendment (No. 2064) was agreed amendment at the desk which I call up, that I appreciate the bipartisanship, to. No. 2064. the cooperation, and comity that has Mr. SARBANES. I move to recon- The PRESIDING OFFICER. The accompanied the framing of this bill. I sider the vote. clerk will report. very much appreciate the inclusion of Mr. REID. I move to lay that motion The legislative clerk read as follows: the disclosure of breached consumer on the table. The Senator from New Jersey [Mr. data as part of the bill. The motion to lay on the table was CORZINE] proposes an amendment numbered There are some elements of this bill agreed to. 2064. that I will highlight that others have The PRESIDING OFFICER. The Sen- Mr. CORZINE. Madam President, I given emphasis to. It is particularly ator from Nevada. ask unanimous consent that reading of important to strengthen the controls Mr. REID. Madam President, I have the amendment be dispensed with. on personal, financial, and medical spoken to the two managers of the bill, The PRESIDING OFFICER. Without data in this bill; however, nothing is and at this stage it appears we have objection, it is so ordered. more important, in my view, than two amendments left, both from the The amendment is as follows: someone having the ability of request- Senator from Wisconsin, Mr. FEINGOLD. (Purpose: To require financial institutions ing a credit file on themselves from the He has agreed, with the permission of and other users of consumer reports to pro- credit agencies once a year. People the managers, to offer one amendment, vide notice to appropriate Federal agencies ought to be able to understand how then offer the next amendment, and de- in cases in which consumer information is they are being viewed in the system, if bate both those amendments at the compromised) ever they are going to correct issues. same time; and then we would vote on On page 16, line 25, strike the period at the That, to me, is one of the most impor- both amendments following his debate end and insert the following: ‘‘; and tant controls. on both amendments and, of course, ‘‘(C) prescribe regulations requiring each Very much to the credit of the rank- the adequate response from the man- financial institution and each other person that is a creditor or other user of a consumer ing member, there is emphasis on pro- agers of the bill. report to notify the Federal Trade Commis- moting financial literacy embedded in Senator FEINGOLD is here and he is in sion (and any other agency or person that this legislation that creates a real agreement with that, so we do not need such rulemaking agency determines appro- foundation for how we can talk to the a unanimous consent agreement, but

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.085 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13885 people should understand what he in- each activity to use or develop data-mining datamining is capable of maintaining tends to do at this time, and what we technology that is required to be covered by extensive files containing both public intend to do. the report, the following information: and private records on each and every Following that, it is my under- (A) A thorough description of the data- American. Periodically, after millions mining technology and the data that will be standing, from speaking to the two used. of dollars have been spent, we learn managers, there are no other amend- (B) A thorough discussion of the plans for about a new datamining program under ments. I think there may be a state- the use of such technology and the target development. Congress and the public ment or two that Senators wish to give dates for the deployment of the data-mining should not be learning the details on the bill, but other than that, I know technology. about these programs only after mil- of no substantive amendments. (C) An assessment of the likely efficacy of lions of dollars are spent testing and The PRESIDING OFFICER. The Sen- the data-mining technology in providing ac- using datamining against unsuspecting curate and valuable information consistent ator from Maryland. Americans. Mr. SARBANES. Madam President, I with the stated plans for the use of the tech- nology. Coupled with the expanded domestic would anticipate we would be ready to (D) An assessment of the likely impact of surveillance undertaken by this admin- go to final passage. I think we can the implementation of the data-mining tech- istration in the wake of September 11, move fairly quickly. I know Senators nology on privacy and civil liberties. the unchecked development of have conflicting demands on them, and (E) A list and analysis of the laws and reg- datamining is a potentially troubling we are trying to move along. ulations that govern the information to be step that threatens one of the most im- Mr. REID. Madam President, I have a collected, reviewed, gathered, and analyzed portant values that we are fighting for with the data-mining technology and a de- statement that will take about 3 or 4 in the war against terrorism; and that, minutes that I will give at some time. scription of any modifications of such laws that will be required to use the information of course, is freedom. My amendment The PRESIDING OFFICER. The Sen- in the manner proposed under such program. would simply require all Federal agen- ator from Wisconsin. (F) A thorough discussion of the policies, cies to report to Congress within 90 AMENDMENT NO. 2065 procedures, and guidelines that are to be de- days and every year thereafter on Mr. FEINGOLD. Madam President, I veloped and applied in the use of such tech- datamining programs used to find a send an amendment to the desk and nology for data-mining in order to— pattern indicating terrorist or other ask for its immediate consideration. (i) protect the privacy and due process criminal activity and how these pro- The PRESIDING OFFICER. The rights of individuals; and (ii) ensure that only accurate information grams implicate the civil liberties and clerk will report. privacy of all Americans. If necessary, The legislative clerk read as follows: is collected and used. (G) A thorough discussion of the proce- information in the various reports can The Senator from Wisconsin [Mr. FEIN- dures allowing individuals whose personal in- be classified. GOLD] proposes an amendment numbered formation will be used in the data-mining The amendment does not end funding 2065. technology to be informed of the use of their for any program, determine the rules Mr. FEINGOLD. Madam President, I personal information and what procedures for use of the technology or threaten are in place to allow for individuals to opt ask unanimous consent that reading of any ongoing investigation that uses the amendment be dispensed with. out of the technology. If no such procedures are in place, a thorough explanation as to datamining technology. All it does is The PRESIDING OFFICER. Without ensure that Congress has complete in- objection, it is so ordered. why not. (H) Any necessary classified information in formation about the current The amendment is as follows: an annex that shall be available to the Com- datamining plans and practices of the (Purpose: To provide for data-mining reports mittee on Governmental Affairs, the Com- Federal Government. With this infor- to Congress) mittee on the Judiciary, and the Committee mation, Congress will be able to con- At the appropriate place, insert the fol- on Appropriations of the Senate and the duct a thorough review of the costs and lowing: Committee on Homeland Security, the Com- SEC. ll. DATA-MINING REPORTING ACT OF 2003. mittee on the Judiciary, and the Committee benefits of the practice of datamining (a) SHORT TITLE.—This section may be on Appropriations of the House of Represent- on a program-by-program basis and cited as the ‘‘Data-Mining Reporting Act of atives. make considered judgments about 2003’’. (3) TIME FOR REPORT.—Each report required which programs should go forward and (b) DEFINITIONS.—In this section: under paragraph (1) shall be— which ones should not. (1) DATA-MINING.—The term ‘‘data-mining’’ (A) submitted not later than 90 days after My amendment would provide Con- means a query or search or other analysis of the date of the enactment of this Act; and gress with information about the na- 1 or more electronic databases, where— (B) updated once a year and include any ture of the technology and the data (A) at least 1 of the databases was obtained new data-mining technologies. from or remains under the control of a non- that will be used. The amendment Mr. FEINGOLD. Madam President, would require all Government agencies Federal entity, or the information was ac- the Fair Credit Reporting Act was de- quired initially by another department or to assess the efficacy of the datamining agency of the Federal Government for pur- signed to make sure that personal fi- technology and whether the technology poses other than intelligence or law enforce- nancial information about consumers can deliver on the promises of each is fairly maintained and accurately re- ment; program. In addition, the amendment ported by credit agencies and provided (B) the search does not use a specific indi- would make sure that the Federal only to the appropriate people. Main- vidual’s personal identifiers to acquire infor- agencies using datamining technology mation concerning that individual; and taining the privacy of the consumer is have considered and developed policies (C) a department or agency of the Federal one of the central objectives of the Government is conducting the query or Fair Credit Reporting Act. My amend- to protect the privacy and due process search or other analysis to find a pattern in- ment will ensure that the Federal Gov- rights of individuals and ensure that dicating terrorist or other criminal activity. ernment is not overstepping its role in only accurate information is collected (2) DATABASE.—The term ‘‘database’’ does and used. not include telephone directories, informa- obtaining and using this highly per- sonal information. Congressional review and oversight is tion publicly available via the Internet or necessary in order to find out whether available by any other means to any member My amendment will require all Fed- eral agencies to report to Congress on and how Government agencies, such as of the public without payment of a fee, or the Department of Homeland Security, databases of judicial and administrative the practice of datamining but it would opinions. not impose any limits on the use of the Department of Justice, and the De- (c) REPORTS ON DATA-MINING ACTIVITIES.— datamining. This amendment will pro- partment of Defense, plan to collect (1) REQUIREMENT FOR REPORT.—The head of vide the American people with critical and analyze a combination of intel- each department or agency of the Federal information about the use of ligence data and personal information Government that is engaged in any activity datamining technology and the way such as individuals’ traffic violations, to use or develop data-mining technology highly personal information, such as credit card purchases, travel records, shall each submit a public report to Congress medical records, communications on all such activities of the department or credit reports and other financial infor- agency under the jurisdiction of that offi- mation, is obtained and used by our records, and virtually any information cial. Government. contained in commercial or public (2) CONTENT OF REPORT.—A report sub- The untested and controversial intel- databases. Through comprehensive mitted under paragraph (1) shall include, for ligence procedure known as data mining, everything from people’s

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.087 S04PT1 S13886 CONGRESSIONAL RECORD — SENATE November 4, 2003 video rentals or drugstore purchases The committee spent a great deal of Members on both sides of the aisle, made with a credit card to also their time, as the Presiding Officer knows, upon hearing that, have refrained or most private health records could be as a distinguished member of the Bank- withheld from offering amendments fed into a computer and monitored and ing Committee, carefully considering that are outside that parameter, and reviewed by the Federal Government. the reauthorization and reform of the we are very grateful to them for doing Using data mining, the Government Fair Credit Reporting Act national that. Obviously, it has enabled us to hopes to be able to detect potential ter- standards. move this legislation along. rorists. There is no evidence, however, The committee bill is carefully craft- I think we have had a very open proc- that data mining will, in fact, prevent ed, and it balances protecting con- ess in dealing with amendments that terrorism. Data mining programs sumer interests and ensuring the effi- affect the provisions of the FCRA. We under development are being used to ciency of our credit markets. tried to keep it open and I think, in a look into the future before being tested The committee bill was unanimously sense, we have bent over backward to to determine if they would have even approved, as the Presiding Officer do that. But we have tried to dissuade been able to anticipate past events like knows, by a voice vote in the com- the offering of amendments that are September 11 or the Oklahoma City mittee, which is hard to get. It was outside that scope. bombing. Before we develop the ability unanimous. I think this amendment falls into to feed personal information about Extraneous amendments, I believe, that category, and therefore I will be every man, woman, and child into a alter this balance and focus and threat- supportive of the chairman in the giant computer, we should learn what en our ability to maintain the strong, statement he made. This is not to data mining can and can’t do and what bipartisan consensus necessary to pass speak to the substance of the Senator’s limits and protections are needed. this important legislation this year. amendment in any developed way; I as- We must also consider the potential As a result, the managers of the sure him of that. But it seems to me for errors in data mining. Most people bill—Senator SARBANES and I—intend this is not within the scope of what we don’t even know what information is to oppose including this amendment do in the Banking, Housing, and Urban contained in their credit reports. Sub- and all non-Fair Credit Reporting Act- Affairs Committee. jecting unchecked and uncorrected related amendments, regardless of Mr. FEINGOLD. Madam President, I credit reports to massive data mining their merit. This might have some will briefly respond with great respect. There were a number of other amend- makes the prospect of ensnaring many merit, but I think it can be better ments with great substance that I innocents very real. If a credit agency served at another place on another day. would have very much wanted to offer, has data bout John R. Smith on John At the proper time, I will move to but did not in the spirit of trying to D. Smith’s credit report, even the best table the amendment. Right now, I make sure nothing of great moment oc- data mining technology might reach yield to Senator SARBANES. curred on this bill. These are merely the wrong conclusion. Mr. FEINGOLD addressed the Chair. reporting amendments. Most Americans believe that their The PRESIDING OFFICER. The Sen- I understand the Senator’s point. private lives should remain private, es- ator from Wisconsin. Mr. FEINGOLD. Madam President, if These are amendments that could have pecially from the Government. Data been possibly accepted; they are not mining programs run the risk of in- I could respond briefly to the chair- man, first, I congratulate the chairman particularly controversial. In any truding into the lives of individuals event, I respect what the managers and ranking member for putting this who have nothing to do with terrorism have had to do in order to get the bill bill together. I intend to support it. I but who trust that their credit reports, through. financial records, shopping habits and am pleased to support it. I recognize I am prepared to move on to the next doctor visits would not become a part the managers had to achieve a balance, amendment, unless they want to con- of a gigantic computerized search en- and they do not want to disrupt that tinue to debate this. If the managers gine, operating without any controls or balance. prefer, we could move on in the next oversight. I think I can pretty confidently as- amendment. The executive branch should be re- sure my colleagues that a mere report- Mr. SHELBY. Madam President, I quired to report to Congress about the ing requirement by Federal agencies move to table the amendment. impact of the various data mining pro- could not possibly upset the balance The PRESIDING OFFICER. Is there a grams now underway or being devel- they have so skillfully achieved. So I sufficient second? oped, and the impact those programs would argue in the case of this amend- There is a sufficient second. may have on our privacy and civil lib- ment—and my second amendment, The yeas and nays were ordered. erties so that Congress can determine which is also only about Federal Gov- Mr. SHELBY. Madam President, I whether the proposed benefits of this ernment reporting information—that it ask unanimous consent that the vote practice come at too high a price to does no violence to what they have be deferred temporarily. our privacy and our personal liberties. achieved and actually is, in this case, The PRESIDING OFFICER. Without Some may argue that this amend- very consistent with the purposes of objection, it is so ordered. ment does not belong in the bill before the bill that have to do with people’s AMENDMENT NO. 2066 us. I respectfully disagree. As we con- privacy of their financial records. Mr. FEINGOLD. Madam President, I sider legislation dealing with individ- So I urge the chairman and ranking send an amendment to the desk. uals’ credit reports and their financial member to consider that this would be The PRESIDING OFFICER. The privacy, I think it is both relevant and different from many other amendments clerk will report. important that we find out whether that could upset the balance. The legislative clerk read as follows: and to what extent the Government is Mr. SARBANES. Madam President, I The Senator from Wisconsin [Mr. FEIN- understand the data mining amend- GOLD] proposes an amendment numbered reviewing databases containing highly 2066. personal information. ment encompasses the legislation So I urge my colleagues to support which the Senator introduced and Mr. FEINGOLD. Madam President, I ask unanimous consent that further this very simple reporting amendment. which is pending in the Judiciary Com- reading of the amendment be dispensed All it asks for is information to which mittee, if I am not mistaken. At least I am informed of that. So it is not with. Congress and the Americana people are The PRESIDING OFFICER. Without within the scope of the work of our entitled. objection, it is so ordered. I yield the floor. committee, I say with all due respect The amendment is as follows: The PRESIDING OFFICER. The Sen- to the Senator. (Purpose: To require a report to Congress re- ator from Alabama. I share some concerns about the garding Federal acquisitions of American- Mr. SHELBY. Madam President, I in- issues he is raising, and I think they made products) tend to oppose this amendment and all are worth paying attention to. But we At the end of title VII, add the following: amendments that are not within the have tried very hard to deal only with SEC. 712. BUY AMERICAN REPORT. four corners of the Fair Credit Report- amendments that are relevant to the (a) IN GENERAL.—Not later than 60 days ing Act legislation. Fair Credit Reporting Act. A number of after the end of each fiscal year, the head of

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.060 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13887 each Federal agency shall submit a report to My amendment would require that Mr. CARPER. Madam President, I Congress on the amount of the acquisitions the annual report to be submitted by ask unanimous consent that the order made by the agency from entities that man- agency heads include the following in- for the quorum call be rescinded. ufacture the articles, materials, or supplies The PRESIDING OFFICER. Without outside of the United States in that fiscal formation: the dollar value of any arti- year. cles, materials, or supplies purchased objection, it is so ordered. (b) CONTENT OF REPORT.—The report re- that were manufactured outside of the Mr. CARPER. Madam President, as quired by subsection (a) shall separately in- United States; an itemized list of all we approach the end of actually a rath- dicate— applicable waivers granted with respect er short, abbreviated debate on this (1) the dollar value of any articles, mate- to such articles, materials, or supplies legislation, I want to say a few words rials, or supplies purchased that were manu- under the Buy American Act; and a encouraging my colleagues to join the factured outside of the United States; Presiding Officer, myself, and our re- (2) an itemized list of all waivers granted summary of the total procurement with respect to such articles, materials, or funds spent by the Federal agency on spective Republican and Democratic supplies under the Buy American Act (41 goods manufactured in the United floor managers in supporting this U.S.C. 10a et seq.); and States versus on goods manufactured measure. (3) a summary of the total procurement outside of the United States. The Let me begin by saying to Chairman funds spent on goods manufactured in the amendment also requires that the SHELBY and our ranking Democrat, United States versus funds spent on goods heads of all Federal agencies make Senator SARBANES, that I think it is manufactured outside of the United States. these annual reports publicly available rather remarkable that we have come (c) PUBLIC AVAILABILITY.—The head of each through the deliberations of the past Federal agency submitting a report under on the Internet. subsection (a) shall make the report publicly Some may argue that this is a bur- year. We had extensive, balanced hear- available by posting on an Internet website. densome requirement. The truth is ings on this legislation that gave peo- Mr. FEINGOLD. Madam President, I that it is similar to the reporting re- ple from all sides of the issue the have come to this floor on several occa- quirement that the Defense Depart- chance to comment on what they sions this year to discuss the crisis in ment complies with every year. If the would like to see us do with respect to American manufacturing and some Pentagon, with its many procurement reauthorization of the Fair Credit Re- steps that I think Congress should take contracts, can report to Congress annu- porting Act. to stop the flow of manufacturing jobs ally on its purchases of goods, so too This is the way the process is sup- overseas. can all other Federal agencies. posed to work. We have a deadline, and One step that I believe we should I am pleased that this amendment is that deadline is to act by December 31. take to support American manufactur- supported by an array of business and Our chairman and ranking Democrat ers is to ensure that the Federal Gov- labor groups including the AFL–CIO, have orchestrated a series of hearings, ernment buys American-made goods Save American Manufacturing, the as I said earlier, which allowed finan- whenever reasonably possible. Congress U.S. Business and Industry Council, cial institutions to come in, allowed enacted such a policy when it passed and the International Brotherhood of consumer groups to come in, and other the Buy American Act of 1933. This law Boilermakers. folks—rank-and-file citizens—to share was enacted to ensure that the Federal Madam President, 2.5 million Amer- with all of us on the Banking Com- Government supports domestic compa- ican manufacturing jobs have been lost mittee how they think we ought to nies and domestic workers by buying since January 2001. The current unem- proceed. We did not have one hearing; we have American-made goods. ployment rate is 6.1 percent. The stag- had a whole series of hearings. I think However, the Buy American Act in- nant economy and continued loss of what emerged from those hearings is a cludes a number of waiver provisions high-paying manufacturing jobs under- consensus that we aspire to have, but which allow agencies to buy foreign- score the need for the Federal Govern- all too rarely see. I am proud to be part made goods in certain defined cir- ment to support American workers and of this process, and I suspect the Pre- cumstances. I am concerned that agen- businesses by buying American-made siding Officer feels the same way. cies may be using these waiver provi- goods. This amendment is a modest sions to get around the spirit, if not Our national credit granting stand- step toward that goal. the letter, of the law. That’s why, ear- ards that are created under the Fair I understand that the managers will lier this year, I introduced the Buy Credit Reporting Act allow all Ameri- oppose this and all amendments that American Improvement Act, which cans quick and easy access to credit, are deemed to be non-relevant to the would strengthen the existing act by whether it is to purchase a home, to bill. I respect their prerogative to do tightening its waiver provisions. purchase a car, or any number of other Unfortunately, it’s virtually impos- so. I would have preferred to offer this consumer goods. There is compelling sible to get hard numbers on the Fed- important amendment to another bill. evidence that failure to reauthorize the eral Government’s purchases of But opportunities to offer amendments expiring provisions of the Fair Credit foreign- and domestic-made goods. have been few and far between this Reporting Act would have significant Under current law, only the Depart- year, and it is the right of all Senators economic consequences, and not very ment of Defense is required to report to offer amendments. I hope that my positive ones. annually to Congress regarding its use colleagues will not oppose this amend- I am pleased to say that the legisla- of waivers of the Buy American Act ment simply because they do not feel it tion before us today extends these uni- and its corresponding purchases of for- belongs on this particular bill. The form standards. It makes them perma- eign-made goods. As for other agencies, question is not whether this amend- nent. We avoid any adverse impact on there is no real disclosure or account- ment belongs on the bill; the question our national credit granting system, ability in the waiver process. is whether it is good law. I think it is and we avoid any negative impact on I think that Congress and the public and I hope others will agree. our national economy. should know how taxpayer dollars are The American people deserve to The legislation before us also makes being spent, and that’s what my know how their tax dollars are being a number of improvements to current amendment would do. The amendment spent, and to what extent these dollars law. I think this is an important point. is very simple and, I hope, non- are being used to support foreign jobs. It is one made by others, but I want to controversial. It would just require all I urge my colleagues to support Amer- make it again. Earlier this year, the Federal agencies to prepare an annual ican companies and American workers Federal Trade Commission released a report that details their purchases of by supporting this amendment. survey indicating that millions of con- foreign-made goods. That’s it. It would I yield the floor. sumers have been victimized by the not make any changes in the Buy Mr. SHELBY. Madam President, I crime of identity theft. My own family American Act; that law and its waiver suggest the absence of a quorum. understands how disruptive and dev- provisions would remain the same. All The PRESIDING OFFICER. The astating this crime can be, as one of that would change is that we would all clerk will call the roll. our relatives in your State, Madam know whether the Buy American Act is The bill clerk proceeded to call the President, was victimized over a period working. roll. of several years by identity theft. It

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.040 S04PT1 S13888 CONGRESSIONAL RECORD — SENATE November 4, 2003 was an awful experience for her and not mation so that someone looking at a gether. I think one reason we were able a pleasant one for her family. credit report cannot discover a con- to do this was the experience and the The bill before us responds to this in- sumer’s medical history. abilities of the two managers of this creasing trend by requiring the cre- Finally, the bill before us establishes bill. The Senator from Maryland has ation of a system of fraud alerts. This the Financial Literacy and Education heard me brag about him on many oc- system of fraud alerts allows the vic- Commission. I believe this is an essen- casions. He is a person of great intel- tims of identity theft and also allows tial part of the legislation—it may not lect, a Rhodes scholar, someone who is active duty military personnel to flag have gotten a lot of credit, but it is an very quiet. But whenever Senator SAR- their credit reports for potential fraud. important part of this bill—because a BANES speaks, everyone should listen For example, if a consumer believes lot of consumers in this country have because he does not speak impulsively. they have been the victim of identity no knowledge or at least limited He is aware of every word he says. His theft, then that consumer can make knowledge of how our credit system being the ranking member on this one call and have a fraud alert put on works. This new commission will be Banking Committee every day gives his or her credit report. The alert will charged with reviewing financial lit- me comfort because it is an area of the notify users of that report that this eracy efforts throughout the Govern- law that I do not fully understand. consumer could be the victim of a ment to eliminate duplicative efforts. I have never been on the committees fraud. This alert, in turn, requires the Importantly, the Commission will also of jurisdiction that deal with these users of this report to take extra steps coordinate the promotion of Federal fi- most important issues. This committee before establishing new credit or estab- nancial literacy efforts, including out- has wide-ranging jurisdiction. It deals lishing a credit limit. reach among State, and local govern- with certainly much more than bank- In the year after the fraud alert is ments, nonprofit organizations, as well ing—housing, mass transit. placed in the file, a consumer will be as private enterprises. I also say, as I said this morning ear- able to receive not one, but two free This legislation creates many new lier about my friend from Alabama, the credit reports to make sure the infor- tools for consumers. I have mentioned distinguished chairman of the com- mation in their credit report is correct. some of them. But if consumers lack mittee, he is a fine legislator. We on In addition, consumers will have the basic financial literacy, they may not this side of the aisle always look for- ability to block information on their be able to use these tools with the kind ward to the senior Senator from Ala- credit report that is the result of iden- of effectiveness that is intended. bama being part of legislation. Every- tity theft. Again, let me go back to where I one in the Senate is a person of their Importantly, the bill increases the started. We have seen this year a num- word. I do not know anyone in the Sen- maximum penalty for those who com- ber of occasions when legislation has ate, of the 99 other Senators, whose mit the crime of identity theft. come to the floor without going word we cannot trust. This legislation also gives consumers through committee. We have seen leg- The Senator from Alabama certainly more control over the information that islation come to the floor for our con- is a man of his word, but the reason I is contained in their credit reports. sideration, sometimes rather complex have such great admiration for him is First of all, consumers will have easy legislation, and it has not had the ben- that he is willing to listen. He is will- access to a free credit report on an an- efit of the hearings it should have. The ing to listen to someone who disagrees nual basis. This is a significant right system has worked in this case: excel- with him. that will allow consumers to review lent hearings, the ability for us as That this legislation arrived at the the information contained in their Democrats and Republicans to work to- point it has, is the result of two fine credit report and to make corrections gether to receive a whole lot of input legislators working through the com- to it. from a broad cross-section of people mittee system and reporting a bill to To ensure consumers are aware of and interest groups in this country, the the Senate. This bill is proof that with these rights, the Federal Trade Com- ability to bring a bill out of committee enough hard work and commitment, we mission must actively publicize how on a unanimous voice vote. This is leg- can move substantive, quality legisla- consumers may obtain a free credit re- islation that I think is going to be dis- tion through the Senate. Again, I ap- port and how to dispute information posed of today. plaud and commend the two managers contained in that report. I am proud to at least have been a of this legislation. I oftentimes use the analogy of if a small part of that process and pleased I have personally spent some time on tree falls in a forest, there is nobody to lend my support. I urge my col- this legislation, working with Members there to hear it. My colleagues have leagues to do the same for this legisla- trying to work out an arrangement to probably heard that; probably used it a tion. allow us to have the bill on the floor time or two. In this case, if a consumer I yield the floor. today. We have been able to do that. has the ability to obtain a free copy of The PRESIDING OFFICER. The as- We have worked to limit the number of their credit report annually, but they sistant Democratic leader. amendments. The majority leader don’t know they have that right, is Mr. REID. Madam President, this is originally said he would not accept the there a benefit that inures from this my opportunity to say a word or two agreement that we had. There were legislation? about the National Consumer Credit more amendments, so we went back In the legislation, we put the onus on Reporting System Improvement Act. and worked and whittled down the others and the Federal Trade Commis- We always hear about how divided amendments. As a result of that, we sion to publicize how consumers can the Senate is and how divided we are were able to bring this to the floor. obtain a free credit report. politically, that there is so much par- I am very happy to see us moving In addition, the bill gives consumers tisanship. My experience indicates that this bill forward. It is very close to pas- important protection for their medical when there is something that really is sage. It is an excellent example of what information. One of our colleagues on extremely important that needs to get we can accomplish when Members the floor today was asking if they deal done, we do it. make a dedicated effort to pursue a with a particular financial institution, As I look back, there was the ter- reasonable compromise. This legisla- a company that has access to some of rorism insurance, which was difficult tion is not what Senator SARBANES the medical data, can they then share to do, but in a bipartisan method we wants, it is not what Senator SHELBY medical data with other affiliates of stepped forward and did that. We had wants; it is what the committee want- that company? significant problems after 9/11 with the ed. They had to work with their Mem- The answer is no; that is protected airline industry. It was difficult to do, bers. It is a compromise. Legislation is and prevented by this legislation. This but we stepped forward with legislation the art of compromise. That is not a bill prohibits the use of medical infor- that in fact allowed the airline indus- bad word. That is the only way we can mation in the credit granting process. try as we know it in America to con- get legislation passed—consensus In addition, as I just said, the legisla- tinue. building—and they have done that. tion creates a system for consumer re- Fair credit reporting is an important This legislation will help safeguard porting agencies to code medical infor- issue, and the two sides have joined to- the security of consumers’ credit data

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.091 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13889 at the same time it guarantees those Senator FEINGOLD. We all want to pro- ‘‘(b) RULE OF CONSTRUCTION.—Nothing in consumers rapid, widely available, and mote jobs in America. We believe the this section may be construed to alter or af- inexpensive credit. American worker can produce anything fect any requirement imposed under any It is a win for the people all over Ne- as well as, if not better than, any work- other provision of law to maintain any record.’’. vada. It’s a win for a family in Elko er in the world. If we promote Buy who receives a better mortgage rate be- America, I think we are saying some- (b) CLERICAL AMENDMENT.—The table of cause a mortgage bank can be con- thing to our workers and our industry sections for the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by this fident about the information in the and our economy down the road, not- Act, is amended by adding at the end the fol- parents’ credit history. The family withstanding what others will argue. lowing: pays a lower rate for their mortgage So I commend the Senator from Wis- and, as a consequence, will pay thou- consin for bringing this up tonight. We ‘‘627. Disposal of records.’’. sands less over the lifetime of the loan, are going to continue to work on this Mr. NELSON of Florida. Mr. Presi- and that money can be redirected to- and try to put it in the proper legisla- dent, most companies are required to ward childcare, college, a family vaca- tion, where it is going to go some- adopt rules to ensure the proper dis- tion. where. posal of a consumer’s private financial It is a win for the used car dealer in Mr. FEINGOLD. Madam President, I records. I learned last year, before Reno, or anyplace else in Nevada, who thank the Senator from Alabama for comprehensive privacy regulations receives more complete and reliable in- his important statement to finally took effect, that some companies do formation about prospective buyers. He make some progress in strengthening not have protocols in place outlining can review an applicant’s credit his- the Buy America Act. I look forward to the proper way to dispose of private tory and feel greater confidence about working with him on this matter. consumer information when it is no the degree of risk he is assuming when The PRESIDING OFFICER. Without longer needed. Last year, thousands of he extends credit to his customers. objection, the amendment is with- files containing sensitive customer It is a win for the public who will re- drawn. records were discarded in a dumpster. ceive better protection than ever be- Mr. FEINGOLD. My understanding is If the wrong person came across these fore against identity theft. the Senator intends to table my other files, he or she would have had every- The United States has the lowest amendment. thing necessary to commit numerous cost, most effective consumer credit The PRESIDING OFFICER. The mo- crimes, including identity theft. market in the entire world, due in part tion to table is pending. to the Fair Credit Reporting Act. This Mr. SHELBY. Madam President, I Since this incident, the company has bill will preserve and extend the best suggest the absence of a quorum. acted to correct its privacy policies elements of this law and add important The PRESIDING OFFICER. The and the Federal Trade Commission new provisions and make it even bet- clerk will call the roll. issued its safeguards rule. The rule ap- ter. The assistant legislative clerk pro- plies to credit reporting agencies and In closing, I am glad to see that our ceeded to call the roll. financial institutions that maintain hard work negotiating this legislation Mr. SHELBY. Mr. President, I ask consumer records and also contains has paid off with a solid bill, and I look unanimous consent the order for the guidance for businesses, which includes forward to seeing consumers and busi- quorum call be rescinded. the storage and proper disposal of ness reaping the benefit of this legisla- The PRESIDING OFFICER (Mr. AL- records. tion for years to come. EXANDER). Without objection, it is so Although check-cashing businesses, Mr. CARPER. Will the Senator from ordered. ATM operators, real estate appraisers, Nevada yield for just a moment? AMENDMENT NO. 2067 and even couriers are covered by the Mr. REID. I am happy to yield to my Mr. SHELBY. Mr. President, on be- safeguards rule, rental property compa- friend from Delaware. half of Senator NELSON of Florida, I nies that assess the creditworthiness of Mr. CARPER. The Senator from Ne- send an amendment to the desk and tenants and businesses that maintain vada has again heaped praise on our ask for its immediate consideration. consumer accounts, such as cell phone chairman and our ranking Democrat, The PRESIDING OFFICER. The companies and utilities, are not cov- as others of us have done, and that is clerk will report. ered by the rule. important. I failed to mention this in The legislative clerk read as follows: Improper disposal of a credit report my remarks and I want to atone for The Senator from Alabama [Mr. SHELBY] could compromise driver’s license in- that omission now, that we are blessed for Mr. NELSON of Florida, proposes an formation, Social Security numbers, with wonderful staff, as we all know, amendment numbered 2067. employment history and even bank ac- on both the Republican and the Demo- The amendment follows: count numbers. My amendment will cratic sides, and on the subcommittee (Purpose: To ensure proper disposal of con- close the loophole and further protect and the full committee. I want to take sumer information and records derived credit information by requiring the a moment to also express my thanks to from consumer reports) Federal Trade Commission to issue them and say to my own counsel, Mar- At the end of title II, add the following: regulations regarding the proper dis- garet Simmons, who has done great SEC. 216. DISPOSAL OF CONSUMER REPORT IN- posal of consumer credit information. work on this bill, a special thank you. FORMATION AND RECORDS. None of us do this stuff by ourselves, as (a) IN GENERAL.—The Fair Credit Report- Mr. SHELBY. Mr. President, Senator we all know. In this case, we have been ing Act (15 U.S.C. 1681m) is amended by add- SARBANES and I have reviewed the greatly assisted by their efforts. ing at the end the following: amendment. We have no objection to I thank the Senator for yielding. ‘‘§ 627. Disposal of records the amendment. The PRESIDING OFFICER. The Sen- ‘‘(a) REGULATIONS.— The PRESIDING OFFICER. The Sen- ator from Wisconsin. ‘‘(1) IN GENERAL.—Not later than 1 year ator from Maryland. after the date of enactment of this section, AMENDMENT NO. 2066 WITHDRAWN the Federal Trade Commission shall issue Mr. SARBANES. Mr. President, I Mr. FEINGOLD. Madam President, final regulations requiring any person that support this amendment. Senator NEL- with regard to the second amendment I maintains or otherwise possesses consumer SON of Florida has focused on an impor- offered concerning the reporting for information or any compilation of consumer tant issue involving the disposal of the Buy America Act, at this time I information derived from consumer reports consumer financial records. We com- will withdraw the amendment, with my for a business purpose to properly dispose of any such information or compilation. mend the amendment to our col- appreciation to the chairman for his leagues. interest in the matter, and I defer to ‘‘(2) EXEMPTION AUTHORITY.—In issuing reg- ulations under this section, the Federal his comments. Mr. SHELBY. I urge the adoption of Trade Commission may exempt any person the amendment. Mr. SHELBY. If the Senator will or class of persons from application of those yield, I believe that is a good amend- regulations, as the Commission deems appro- The PRESIDING OFFICER. The ment. I think it ought to be in other priate to carry out the purpose of this sec- question is on agreeing to the amend- legislation. I am going to work with tion. ment.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.094 S04PT1 S13890 CONGRESSIONAL RECORD — SENATE November 4, 2003 The amendment (No. 2067) was agreed Mr. REID. Mr. President, I ask unan- working on a good piece of legislation. to. imous consent that the order for the We want to continue that. Mr. SHELBY. Mr. President, I move quorum call be rescinded. I yield to the Senator from Mary- to reconsider the vote. The PRESIDING OFFICER. Without land. Mr. SARBANES. I move to lay that objection, it is so ordered. Mr. SARBANES. Mr. President, I motion on the table. Mr. REID. Mr. President, what is the simply want to observe that we had a The motion to lay on the table was regular order at this time? fair and open working relationship in agreed to. The PRESIDING OFFICER. The reg- the committee in bringing the legisla- Mr. SHELBY. Mr. President, I sug- ular order is the motion to table tion forward. All Members participated gest the absence of a quorum. amendment No. 2065. from both sides. I would expect that The PRESIDING OFFICER. The Mr. SHELBY. I believe the Senator same relationship to then continue in clerk will call the roll. from Wisconsin has an amendment the conference committee. We have The assistant legislative clerk pro- pending. been dealt fairly by the chairman. I ceeded to call the roll. Mr. DASCHLE. Mr. President, before presume we will continue to be dealt Mr. REID. Mr. President, I ask unan- the Senator from Alabama moves to fairly by the chairman. I just wanted imous consent the order for the table, first of all, I know we are getting to add that perception to this relation- quorum call be rescinded. close to the end of deliberations on this ship. The PRESIDING OFFICER. Without bill. I think that it merits broad bipar- Mr. DASCHLE. Mr. President, with objection, it is so ordered. tisan support. that explanation of our circumstances UNANIMOUS CONSENT REQUEST—H.R. 1904 I appreciate very much the efforts involving this bill, as I say, we will not Mr. REID. Mr. President, there has that have been made by the chairman object to going to conference. I wish been a lot of talk the last few days and and ranking member. Both Senators our colleagues well as we finish our different offers by the majority to go have worked very closely together to work on this legislation before the end to conference on the Healthy Forests get it to this point. Obviously, there of the year. are outstanding issues that still have initiative and a number of other pieces I yield the floor. to be resolved. We have a couple of of legislation. For the majority to say Mr. SHELBY. Mr. President, if it is amendments. that going to conference is the only proper at this time, I move to table the way to legislate between the two I wanted to take a moment—I didn’t realize we were this close to having the Feingold amendment, and I ask for the Houses is really, for lack of a better de- yeas and nays. scription, a bogus argument. Almost vote on the amendment itself—to draw The PRESIDING OFFICER. The every day both Houses pass legislation a distinction in this legislation. question is agreeing to the motion to for which a conference is not ap- Obviously, because of the extraor- table amendment No. 2065. The yeas pointed. As I mentioned earlier today, dinary effort that has been made on and nays have already been ordered, just last night the Senate passed H.R. both sides to work together and the as- and the clerk will call the roll. 3365, the Fallen Patriots Tax Relief surances I have been given by the The assistant legislative clerk called Act. We amended it and sent it back to chairman that it is not his intention to the roll. the House without asking for con- conduct a conference that would not ference. involve the ranking member and mem- Mr. FRIST. I announce that the Sen- On other measures, we have done the bers of the minority with regard to this ator from Kentucky (Mr. BUNNING), the same thing—H.R. 1584, H.R. 1298, H.R. bill and issues to be resolved in con- Senator from Kentucky (Mr. MCCON- 733, H.R. 13, H.R. 4146, and H.R. 659 just ference, I will recommend to our cau- NELL), and the Senator from Wyoming to name a few. cus that we move forward with a con- (Mr. THOMAS) are necessarily absent. If there is any concern about holding ference on this bill. I wish I could say I further announce that if present up legislation, we believe the shoe fits that with regard to other legislation, and voting, the Senator from Kentucky the majority. The Healthy Forests ini- but we have not been given the same (Mr. BUNNING) would vote ‘‘yes.’’ tiative is something that needs to be assurances. We are not at that point Mr. REID. I announce that the Sen- done. We cannot understand on this yet. But in this case, we certainly in- ator from North Carolina (Mr. ED- side why the leadership has refused to tend to work with our colleagues and WARDS), the Senator from Massachu- send the bill to the House; that is, H.R. with the chairman in particular. I ap- setts (Mr. KERRY), the Senator form 1904, the Healthy Forests initiative, plaud him for his efforts and thank him Connecticut (Mr. LIEBERMAN), and the which passed here overwhelmingly just for the kind of working relationship Senator from Florida (Mr. NELSON) are a few days ago. The House may not that our two colleagues have. It is a necessarily absent. want to go to conference. They may tribute to both of them. I acknowledge I further announce that, if present like our legislation or they may want that prior to the time we take our and voting, the Senator from Massa- to amend it and send it back. But at vote. chusetts (Mr. KERRY) would vote ‘‘no.’’ least we ought to give the House this Mr. SHELBY. Mr. President, I would The PRESIDING OFFICER. Are there opportunity rather than holding the like to respond to the Democratic lead- any other Senators in the Chamber de- bill hostage. That is what is happening er. siring to vote. now. By refusing to send it to the First of all, we have gotten to where The result was announced—yeas 61, House, the majority is holding the bill we are tonight on the Fair Credit Re- nays 32, as follows: hostage. porting Act coming out of the Banking [Rollcall Vote No. 435 Leg.] Committee by working together in a I ask unanimous consent that the en- YEAS—61 rolling clerk be directed to imme- bipartisan way. Senator SARBANES and the Democrats on the committee have Alexander Daschle Landrieu diately send H.R. 1904, which is the Allard DeWine Lincoln Healthy Forests initiative, as amended been involved in the formulation of Allen Dole Lott by the Senate, to the House of Rep- this legislation as so many members of Baucus Domenici Lugar the Banking Committee have. That is Bennett Ensign Miller resentatives. Bond Enzi why we are here today. That is why we Murkowski The PRESIDING OFFICER. Is there Breaux Fitzgerald Nelson (NE) objection? believe we have put together a far- Brownback Frist Nickles Burns Graham (SC) Mr. SHELBY. I object. reaching, very complex piece of legisla- Pryor Campbell Grassley Roberts The PRESIDING OFFICER. Objec- tion. We are going to continue—assum- Carper Gregg Rockefeller tion is heard. ing this bill passes and goes into con- Chafee Hagel ference—to work together because that Chambliss Hatch Santorum Mr. REID. Mr. President, I suggest Sarbanes the absence of a quorum. is the only way we are going to pass Cochran Hollings Coleman Hutchison Sessions The PRESIDING OFFICER. The this legislation. This legislation, the Collins Inhofe Shelby clerk will call the roll. Fair Credit Reporting Act, would ex- Cornyn Inouye Smith The assistant legislative clerk pro- pire at the end of this year. We know Craig Johnson Snowe ceeded to call the roll. we are working on a deadline. We are Crapo Kyl

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.097 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13891 Specter Sununu Voinovich ask unanimous consent that following to new Members of the Senate. One is Stevens Talent Warner that vote, the Senate insist on its the seriousness of the issues with NAYS—32 amendment, request a conference with which we deal these days. One is the Akaka Dodd Leahy the House, and the Chair be authorized great traditions in the Senate. But Bayh Dorgan Levin to appoint conferees on the part of the there is a very special privilege of Biden Durbin McCain Senate, with a ratio of 4 to 3. I also ask being here, and being here tonight, Bingaman Feingold Mikulski Boxer Feinstein Murray unanimous consent that S. 1753 then be which I realize, and that is this: Every Byrd Graham (FL) Reed returned to the calendar. single one of us as Americans someday, Cantwell Harkin Reid The PRESIDING OFFICER. Is there sometime, while sitting at home or on Clinton Jeffords Schumer Conrad Kennedy objection? our job, may suddenly realize some- Stabenow Corzine Kohl Without objection, it is so ordered. thing about our Government that real- Wyden Dayton Lautenberg Mr. REID. Mr. President, I suggest ly stirs us up and we wish we could say NOT VOTING—7 the absence of a quorum. something and do something that Bunning Lieberman Thomas The PRESIDING OFFICER. The somebody would hear. We are angry Edwards McConnell clerk will call the roll. about it, we are upset about it, we Kerry Nelson (FL) The assistant legislative clerk pro- want to say something about it. I have The motion was agreed to. ceeded to call the roll. a privilege as a Member of the Senate The PRESIDING OFFICER. The Sen- Mr. STEVENS. Mr. President, I ask of being able to do just that tonight. ator from Alabama. unanimous consent that the order for Nothing used to make me more upset Mr. SHELBY. Mr. President, I would the quorum call be rescinded. as the Governor of Tennessee for the 8 like to take a few moments to thank The PRESIDING OFFICER (Mr. years I was Governor than when Mem- some of the staff who did outstanding COLEMAN). Without objection, it is so bers of this distinguished body and the work on the Banking Committee— ordered. other distinguished body—Members of Congress—would get together and come Kathy Casey, chief of staff of the Bank- f ing Committee; Doug Nappi, our gen- up with some great idea and pass a law eral counsel; Mark Oesterle, one of our UNANIMOUS CONSENT and tell us to do it, and then send us counsel. AGREEMENT—H.R. 2673 the bill requiring us to pay for it, even I also thank some of the Democratic Mr. STEVENS. Mr. President, I ask though they were printing money up staff who worked with us on this: Steve unanimous consent that following here and we were balancing budgets at Harris, who is Democratic chief of morning business on Wednesday, the home. staff; Marty Gruenberg; Lynsey Senate proceed to the consideration of The distinguished occupant of the Graham Rea, and Dean Shahinian. H.R. 2673, the Agriculture appropria- Chair was mayor of a great city for 8 They have all worked together in a bi- tions bill. years, I believe, the same amount of partisan fashion. I believe that is why The PRESIDING OFFICER. Is there time as I was Governor. I know he this legislation was brought out of the objection? must have felt the same way. It might have been the case in terms committee unanimously and we will be Mr. REID. Mr. President, there is no of storm water runoff. Somebody in able to pass it, because we had a lot of objection. The persuasiveness of the Washington, like the EPA, the Envi- input from Members and committee chairman of the committee allays any ronmental Protection Agency, in that staff on both sides of the aisle. It fears Senator DASCHLE and I had of case may have said sometimes when it makes a difference. proceeding to this appropriations bill. really rains hard, the water gets mixed Mr. SARBANES. Mr. President, I We look forward to having as few up with the sewage and it runs into the move to reconsider the vote. amendments as possible. We hope to river, so we need to fix that situation. Mr. SHELBY. I move to lay that mo- find out how many amendments we Great idea, but who is going to pay tion on the table. have even tonight. It would be good to the bill? I tell you who pays the bill. In The motion to lay on the table was get them to the cloakroom. We will be Minneapolis, you have to raise the agreed to. on this probably around 10:30 tomorrow property tax, or in Nashville, you have The PRESIDING OFFICER. The Sen- morning. to raise the sales tax. Or in Maryville, ator from Maryland is recognized. Mr. STEVENS. Mr. President, I echo TN, you have to fire some teachers so Mr. SARBANES. Mr. President, I what the assistant minority leader said you have enough money to do the echo the chairman in expressing my in making that request. We know of storm water runoff. deep appreciation to the staff people he some amendments that are out there. I remember back in the mid-1970s, enumerated: Kathy Casey, Doug Nappi, We believe we can finish the bill to- about the time I was getting into poli- and Mark Oesterle on the Republican morrow if we apply ourselves to the tics, the Members of Congress decided side, and Steve Harris, Lynsey task. we needed to help children with dis- Graham, Dean Shahinian, and Marty I yield the floor. abilities. We are all for that. That is a Gruenberg on the Democratic side. The PRESIDING OFFICER. Without wonderful idea. But at the time, the We are fortunate in the Banking objection, it is so ordered. Federal Government was paying, as it Committee that we have a very com- Mr. REID. Mr. President, I suggest is today, about 7 percent of all the mitted, able, dedicated staff on both the absence of a quorum. costs of elementary and secondary edu- sides of the aisle. Furthermore, they The PRESIDING OFFICER. The cation in America. Most of that is paid have been able to work with one an- clerk will call the roll. for by Minnesota and Tennessee tax- other in a very productive and coopera- The assistant legislative clerk pro- payers through income taxes, and sales tive fashion. The chairman and I are ceeded to call the roll. taxes, and property taxes that are keenly aware of the fact of how much Mr. ALEXANDER. Mr. President, I raised at home. we rely upon them, and we want them ask unanimous consent that I be al- The Congress said, ‘‘Help the children to know how much we appreciate their lowed to speak as in morning business with disabilities,’’ but they didn’t pay terrific effort, which was reflected in for as much time as I may consume. the bill. So what happens. I meet with this legislation and in many other mat- The PRESIDING OFFICER. Without the Shelby County School Board in ters with which the committee deals. objection, it is so ordered. Memphis. What do they say to me? We The PRESIDING OFFICER. The Sen- f have this huge, terrific cost and these ator from Alabama is recognized. orders from Washington and regula- INTERNET TAX NON- Mr. SHELBY. Mr. President, I ask tions about what to do, and then we DISCRIMINATION ACT OF 2003 unanimous consent that the vote occur have to take money we raise, that we on passage of the bill on Wednesday— Mr. ALEXANDER. Mr. President, the would otherwise be spending for other tomorrow—with no intervening action distinguished occupant of the chair and purposes, and deal with the good idea or debate, at a time determined by the I are new Members of the Senate. from Washington, DC. majority leader, after consultation There are a great many privileges to I have heard many Members of this with the Democratic leader. Further, I being here, and one is the congeniality body talk a little bit about No Child

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.053 S04PT1 S13892 CONGRESSIONAL RECORD — SENATE November 4, 2003 Left Behind and the new provisions in storm water runoff, or highly qualified The argument has landed the Department that bill, wondering whether those are teachers. As a result, 91 Senators voted of Revenue and six Internet Service Pro- unfunded Federal mandates, a Wash- for the Unfunded Mandates Reform Act viders, or ISPs, in court. ington word that if you boil it down to of 1995, and 63 of those Senators are Five cases—two involving AOL and three against CompuServe, Earthlink and AT&T— plain English means: We will do it up still here today. are now in litigation in Davidson County here in Washington; we will claim cred- No. 3, I would like to discuss an Chancery Court. One case involving Prodigy it for it, but you pay the bill. amendment I will be proposing. I am is awaiting review by the Tennessee Supreme On Thursday, thanks to the gen- filing tonight an amendment I call the Court. erosity of the majority leader in a very Unfunded Federal Mandate Reimburse- A number of disputes between the Depart- busy week, the Senate has agreed to ment Act. If a majority of the Senate ment of Revenue and other service providers consider whether we will impose yet should decide that banning State and have not yet reached the courts, although one more unfunded Federal mandate on local taxation of the Internet is impor- the department won’t say how many or which companies are involved. State and local governments, and I tant enough to create an unfunded Fed- Tennessee officials say they should be get- refer specifically to the proposal to ex- eral mandate—that is, claim the credit ting $18 million in revenue on Internet ac- tend the ban on State and local author- up here, but make it be done down cess sales taxes each year. In reality, the ity to tax access to the Internet. there—then my amendment would pro- State’s Department of Revenue reports col- In advance of that vote, which will vide a way for Congress to pay the bill lections of half that amount. occur in the next few days, I want to for that by authorizing our Depart- For a State in dire financial straits, that discuss three basic considerations with ment of the Treasury to reimburse isn’t pocket change. Add it up over the past seven years—the State began pursuing col- my colleagues. Tennessee and Minneapolis and other No. 1, some of my colleagues have lections in 1996—and you get about $60 mil- State and local governments each year lion. seemed surprised when I suggested the for the cost of this new mandate. That’s enough to fund the Department of proposed ban on State and local Inter- Let me say briefly what we are talk- Revenue for a year or pay 1,600 teachers’ sal- net taxation is an unfunded Federal ing about and what we are not talking aries. In the next five years, the state esti- mandate. Let me say exactly in these about. We are not talking about the mates it could lose $109 million in uncol- remarks why the proposed ban on issue of whether to authorize States to lected revenues. State and local ability to tax Internet require out-of-State companies, such as On one side, the Department of Revenue access is an unfunded mandate plainly L. L. Bean, that sell by catalog or argues that Internet access should be in violation of the Unfunded Mandates charged as a telecommunications service be- Internet, to collect the same Tennessee cause it falls under the state’s definition of Reform Act of 1995 which was passed by sales tax that Friedman’s Army Sur- ‘‘telecommunications.’’ this body with 91 votes, and 63 Senators plus Store would collect when it sells That definition is: ‘‘communications by who voted to ban unfunded Federal me a red-and-black plaid shirt. That is electric or electronic transmission of im- mandates in 1995 are still Members of an entirely different piece of legisla- pulses, including transmission by or through this body. In 1994, over 300 Republican tion. The Senator from Wyoming and any media, such as wires, cables, micro- candidates stood on the steps of the others have sponsored that legislation. waves, radio waves, light waves or any com- bination of those or similar media.’’ U.S. Capitol and said in the Contract The Senator from North Dakota is a With America: We will stop passing un- But Internet services providers argue that part of that. We are not talking about the term ‘‘telecommunications’’ doesn’t funded Federal mandates, and if we making it easier to collect sales tax apply to them at all. break this contract, throw us out. That from Internet and catalog companies. When the State began to actively collect is why, when this legislation is offered What we are talking about is whether sales tax on Internet access ‘‘the department later this week, I plan to offer a point Tennessee and other States can collect simply didn’t understand how ISPs work and of order against its consideration be- a sales tax from an Internet service that ISPs have never been considered tele- cause the Unfunded Mandates Reform provider when it connects my com- phone companies,’’ said Henry Walker, a Act of 1995 says that it is out of order puter to the Internet, just as it collects Nashville lawyer whose firm represents AOL for this Senate to pass an unfunded and Planet Connect, a Kingsport-based Inter- sales tax from the telephone company net service whose dispute with the Depart- Federal mandate. The first thing I when it connects my telephone or from ment of Revenue has not yet reached the want to describe why this proposed ban the cable TV company when it con- courts. on Internet taxation is an unfunded nects my TV. Tennessee has been col- ‘‘(ISPs) don’t sell telecommunications Federal mandate. lecting this tax since 1996. Nine other services,’’ Walker said. ‘‘They sell access to No. 2, I want to discuss a strange case States and the District of Columbia the Internet, and that’s different.’’ of amnesia that seems to have envel- also collect a tax on Internet access. Internet providers simply sell access to in- oped this distinguished body, a strange The Knoxville News Sentinel had an formation, he explained, not a communica- disease that has caused many Members tions service. He compared it to dialing a 1- excellent article on Sunday putting 900 number, saying that users already pay to forget, as I mentioned a few mo- this into perspective. I ask unanimous tax on the phone service and aren’t charged ments ago, that in 1995, at the begin- consent that the article be printed in separately for using that service to access ning of the 104th Congress, the new the RECORD. information at the other end. Senate majority leader, Bob Dole, went There being no objection, the mate- STATE VS. ISP down to Williamsburg, VA, and prom- rial was ordered to be printed in the In the Prodigy case, the trial court and ul- ised Republican Governors that ‘‘The RECORD, as follows: timately the Tennessee Court of Appeals first bill in the Senate, S. 1, is going to [From the Knoxville, News Sentinel] agreed. be unfunded mandates.’’ INTERNET’S TAXING ISSUE The court found that the intent of state This is especially surprising because lawmakers, when drafting the telecommuni- STATE, SERVICE PROVIDERS WAGE FIGHT OVER Senator DOLE was good to his word cations tax code and the definition of tele- SALES TAX ON WEB ACCESS and, in fact, the second plank of the communications used by the Federal Com- (By Larisa Brass) Contract With America that was en- munications Commission, supported Prodi- acted in this Congress was the ban on Pull out your monthly Internet bill and gy’s claim that it should not have to collect take a look at the bottom line. sales tax on its service. unfunded mandates. It was at the heart See a sales tax charge? Maybe, maybe not. In addition, the court said that because of the Contract With America. It was Nearly a decade after the Internet’s debut, telecommunications was not the ‘‘true aim’’ at the heart of the Republican revolu- the argument still rages in Tennessee over of Prodigy’s service and because customers tion in 1994. whether online connections should be taxed must supply their own, taxed telephone serv- At that time, I was campaigning like your telephone bill or your cable serv- ice to connect to Prodigy’s servers, that the across this country in 1994. Nothing I ice. Internet connection should not be taxed as a found made local officials and citizens The State says wording of its tax code im- telecommunications service. madder than Washington politicians plicitly includes Internet access as a tele- Last month, the Department of Revenue communications service subject to sales tax. appealed the ruling to the Tennessee Su- who pass unfunded mandates, claiming A number of Internet service providers dis- preme Court. credit without facing the costs, wheth- agree, however, saying that Internet access ‘‘We think the court was wrong,’’ said er it was the legislation I described in- amounts to an information, not communica- Loren Chumley, commissioner of the Ten- volving children with disabilities, tions, service and is not subject to tax. nessee Department of Revenue.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.115 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13893 In a brief filed by the Tennessee attorney ‘‘It’s not retroactive,’’ she said. ‘‘Again, Companies involved: AOL (two cases), general on Oct. 9, the state argues Prodigy’s we’re left back in our case with, well, what AT&T, CompuServe, EarthLink and Prodigy. services do ‘‘fall squarely within the defini- is the court going to do?’’ can do so because Other States that tax Internet access: Con- tion’’ of telecommunications, according to they were grandfathered into a law passed by necticut, Iowa, New Mexico, North Dakota, Tennessee law, by providing access to ‘‘the Congress in 1998 known as the Internet Tax Ohio, South Carolina, South Dakota, Texas, Internet, chat rooms, e-mail and information Moratorium. Wisconsin as well as the District of Columbia services.’’ The legislation forbade the collection of THE BASICS The state argued that Internet service state Internet access taxes unless a state With multiple tax codes, legislation and should be taxed even though it was not ex- was collecting the taxes before the federal initiatives, thing can get a bit confusing plicitly included in the law. moratorium was passed. when it comes to sales tax and the Internet. ‘‘With all due respect to the Court of Ap- Two bills now in Congress would end the 1. Sales tax on Internet access. This is a peals, the plain language of this statute state’s ability to collect those taxes. One bill state sales tax levied on the monthly sub- should not be read narrowly to include only now stalled in the Senate would allow states scription fees paid by customers to an Inter- those technologies that existed when the to phase out the taxes within three years. net service provider. statute was enacted,’’ the filing stated, ‘‘but The House version, already passed, would should be read to incorporate new tech- Some providers don’t charge the tax to end the tax immediately. Tennessee customers, saying the state le- nologies, including Internet access and e- Right now, states like Tennessee are more gally can’t require collection. mail services such as those provided by Prod- worried about provisions of the bill they say The issue has pitted five Internet service igy. would end taxes on a broad array of tele- providers against the Tennessee Department ‘‘. . . Only by giving statutes their full ef- communications services and cost Tennessee of Revenue in court. This tax does not apply fect can the law keep up with technological $360 million in annual sales tax collections. to the sale of goods over the Internet. (See advances.’’ But Chumley said Tennessee stands to lose item No. 3 below.) In addition, the state argued that the out, at least in the short-run, if the tax is 2. Internet Tax Moratorium. This law was Court of Appeals should not rely on the abolished. The state is moving toward a passed by Congress in 1998 and prohibited FCC’s definition of telecommunications and streamlined sales tax system that would states from charging sales tax on Internet that to do so is to contradict another state allow it to collect more taxes on the sale of access. appeals court decision holding ‘‘that federal goods via Internet companies, many of which Tennessee, which already was collecting regulatory statutes should not affect the in- are not now collecting state sales tax on pur- tax on Internet service, was one of 10 states, terpretation of state taxation statutes.’’ chases. along with the District of Columbia, allowed The Department of Revenue is awaiting Chumley said that increased collections on the state Supreme Court’s decision on to continue collecting the tax. Internet retail sales, however, won’t imme- whether it will take the case. The moratorium expired Saturday, and the diately make up for projected losses due to Walker admits the issue isn’t black and House and Senate are hashing out a new white. He agrees that many people use the repeal of the Internet access tax. ‘‘I am concerned we could count on some Internet sales tax law. Both versions, so far, Internet for communication, such as placing revenue loss immediately,’’ she said. would end the collection of Internet access online orders or using Internet chat rooms or If the tax is repealed, that won’t affect sales tax for the 10 grandfathered states, al- instant messaging. state cases over tax collection of the past, though the House’s bill would postpone its And, he said, there may be a place for tax- expiration for another three years. The Sen- ing some types of Internet communications, Chumley said. ‘‘It’s not retroactive,’’ she said, ‘‘Again, ate bill has been stalled by Tennessee Sen. such as voice over Internet protocol, which we’re left back in our case with, well, what Lamar Alexander because of controversial allows a customer to set up home phone is the court going to do?’’ provisions that states say would hinder col- service via the Internet. lection of sales tax on a broad array of tele- TAX NOT SO TAXING But ‘‘at this point in time, the FCC has communications services. said, ‘No, that’s not telecommunications, Not all ISP’s agree they shouldn’t have to 3. Tax on sales via Internet. This is sales that’s information services,’’’ Walker said. collect sales tax on the services they sell. tax charged on items bought over the Inter- ‘‘I thought (state officials) were on shaky Ed Bryson, owner of Knoxville ISP Esper net. ground from the get-go, and I think the Systems, said he’s been collecting sales tax This issue has been in the news recently court shut the door pretty hard.’’ since he started his business about eight because Congress is contemplating a bill, TO TAX OR NOT TO TAX years ago. separate from the tax moratorium, that ‘‘I would actually support (Internet serv- In any case, the days of taxing Internet ac- would mandate collection of state and local ice) being taxed,’’ he said. ‘‘This state needs cess appear to be numbered. sales tax on goods sold via the Internet to revenue. Do we pay sales tax on telephone Tennessee is one of 10 states that, along customers in States that comply with the bills? Do we pay sales tax on cable? (Internet with the District of Columbia, now collect Streamlined Tax Initiative. sales tax on Internet access charges. They access is) a commodity service.’’ This currently voluntary initiative in- Bryson said it’s not that he’s such a big fan can do so because they were grandfathered cludes a simplified tax structure that allows of taxes. He estimates that collecting and re- into a law passed by Congress in 1998 known companies to more easily collect state and mitting the sales tax on his services cost as the Internet Tax Moratorium. local sales tax on goods sold online. Ten- about $500 per month. He says the company The legislation forbade the collection of nessee has passed legislation changing its collects about $100,000 in sales taxes per state Internet access taxes unless a state tax code to comply with the streamlined tax year. was collecting the taxes before the federal guidelines. moratorium was passed. And Bryson figures he’s lost a few cus- Two bills now in Congress would end the tomers to larger providers that don’t charge Mr. ALEXANDER. I thank the Chair. state’s ability to collect those taxes. One bill sales tax. Let me go to my first point, why this now stalled in the Senate would allow states But, he said, he doesn’t believe that the proposed legislation is an unfunded to phase out the taxes within three years. Internet needs to be tax free for the country mandate. The House version, already passed, would to go online. The proposed legislation is an un- ‘‘Do you really think the Internet needs end the tax immediately. funded mandate because it would make Right now, states like Tennessee are more any fertilizer right now? Do you really think that Tennessee needs to not tax the Internet it illegal for these States to continue worried about provisions of the bill they say to collect State and local Internet ac- would end taxes on a broad array of tele- to make jobs?’’ he said. communications services and cost Tennessee ‘‘I don’t like taxes anymore than anybody cess taxes. The Congressional Budget $360 million in annual sales tax collections. else,’’ Bryson added. ‘‘My philosophy is, just Office estimates that these losses But Chumley said Tennessee stands to lose tell me what the rules are and I’ll work with- would amount to $80 billion to $120 bil- out, at least in the short-run, if the tax is in them. More than anything I’d like to see lion a year. abolished. The state is moving toward a this (be) fair across the board.’’ That is not all. The language of the streamlined sales tax system that would INTERNET TAX legislation enacted by the House of allow it to collect more taxes on the sale of Internet access sales tax: local and state Representatives, and every version of goods via Internet companies, many of which sales tax charged on Internet service. The that language we have seen thus far in are not now collecting state sales tax on pur- State considers Internet access a tele- chases. communications service under Tennessee tax this Chamber, broadens the ban on tax- Chumley said that increased collections on law. ation on Internet access and increases Internet retail sales, however, won’t imme- Tax implemented: 1966 the size of the Federal unfunded man- diately make up for projected losses due to Tax rate: 7 percent state; 2.5 percent local. dates, extending to some degree to repeal of the Internet access tax. Revenues collected per year: $9 million other telecommunications services, ‘‘I am concerned we could count on some Estimated revenues uncollected per year: which is why I suppose we have begun revenue loss immediately,’’ she said $9 million If the tax is repealed, that won’t affect Estimated total revenue loss: $63 million to see the halls filled with lobbyists state cases over tax collection of the past, Tennessee court cases involving Internet from the telecommunications industry Chumley said. service sales tax collection: 6 as they anticipate the possibility that

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.100 S04PT1 S13894 CONGRESSIONAL RECORD — SENATE November 4, 2003 this Congress might be exempting will cost us $358 million a year. That is unfunded mandates in this country them from some or maybe all of the what the improved version of the that had given rise to all of this anger taxes that State and local governments House bill will cost one State, accord- and frustration among the American put on telecommunications. ing to our State revenue department. people. I will not read them all but it Now, there are many estimates about Then other States have been writing reports, for example, that the National how much this would cost State and me, and writing their Senators. They Conference on State Legislatures had local governments. I have a study pre- say the Allen-Wyden amendment will identified 192 unfunded mandates on pared in November of 2001 by Ernst & cost Kentucky $40 million to $50 mil- the States, including Medicaid, regula- Young for the telecommunications lion, maybe $200 million. The new Gov- tions governing the use of underground State and local tax coalition. This ernor of Kentucky is being elected, I storage tanks, the Clean Water Act, study by Ernst & Young says that tele- guess as we speak. He will have a sur- the Clean Air Act, the Resource Con- communications providers and con- prise on his hands perhaps when he servation Recovery Act, the Safe sumers of telecommunications services finds out that he has some taxes to Drinking Water Act, the Endangered paid a total of $18.1 billion in State and raise or some services to cut because Species Act, the Americans with Dis- local taxes in 1999. we, in our wisdom, wanted to dictate abilities Act, the Fair Labor Standards I am not suggesting this ban on that. Iowa, $45 million to $50 million; Act, only to name a few. Those are all Internet taxation would eliminate all Maine, $35 million; New Jersey, $600 wonderful acts, but what was hap- of the $18 billion of State and local tax- million; Ohio, $55.7 million; South Da- pening was they were claiming credit ation on telecommunications, but vir- kota, $34 billion; Tennessee, $358 mil- up here and those of us who were down tually everyone agrees that it would lion, as I said; Washington State, $33 there were having to pay some of the eliminate some. Every time we, in our million. bill. The U.S. Conference on Mayors wisdom, tell a State or a city that it These are what the State govern- and Price Waterhouse estimated that cannot use this tax, all we are doing is ments are telling us the new and im- the 1994 to 1998 cost of these mandates, increasing the chance that Minneapolis proved Senate version of the Internet excluding Medicaid, on 314 cities was or Tennessee will increase some other tax ban would cost State and local gov- $54 billion, or 11.7 percent of all local tax, or fire some teachers or lay off ernments. Those are some of the esti- taxes. The EPA estimates that envi- some employees or close some parks. mates we have heard about. ronmental mandates cost State and We have to balance budgets where we Now, to my second point, why is this local governments $30 billion to $40 bil- come from. If we knock out a substan- so important? Why should we just not lion annually. State and local govern- tial part of the ability to State and let it go on through? ments spend $137 billion to ensure safe local governments to tax the Internet Well, maybe one of the advantages of drinking water. and some part of the telecommuni- having been around a little while is I These are good laws. I would like to cations industry, we are only increas- have seen and heard some things that I have voted for them. I wish I had pro- ing the possibility in Tennessee of rais- remember, such as 1994, I remember the posed many of them. But the reason we had to come in ing the property tax, of raising the Contract with America. I see my dis- here this year and pass legislation sales tax, of raising the tax on medi- tinguished colleague from Pennsyl- sending $20 billion back to the States cine, of raising the tax on food or, in vania. He remembers the Contract with and to local governments was not just our State, making it more likely that America. He was a candidate, I believe, because of the recession. It was be- we will have sooner or later an income in that same year. While I do not believe he was there, cause, consistently over the last 20 tax. That is just one estimate. years, we have undercut the ability of Another estimate by the Multistate surely we all remember the 300 Repub- State and local officials to make deci- Tax Commission reported on Sep- licans who stood on the steps of the sions for themselves about what serv- tember 24, 2003: The Internet tax mora- Capitol. This was in September of 1994. ices to provide and how to pay the torium passed by the U.S. House of This was just before something that bills. Representatives on September 17 would was to happen that had not happened One of my most vivid memories is of end up reducing State and local rev- in half a century. It was a resurgence the distinguished former majority enue collections by at least $4 billion, in the country that elected a Repub- leader of the Senate, Bob Dole, who and as much as $8.75 billion by 2006, lican Congress. was elected in 1995 with that new Con- rather than the $500 million estimated What fueled all of that? What fueled gress. He had a little copy of the cost under the legislation’s narrow that, according to the Heritage Foun- United States Constitution, and he original focus. dation, in a candidate’s briefing book pulled it out when he met with the The sponsors of the Internet tax ban that they did in 1996, looking back at Governors in 1994 in Williamsburg, in the Senate, Senators ALLEN, WYDEN 1994, chapter 14: With frustrated Ameri- when they made the ‘‘Williamsburg Re- and others, have been working with cans focusing their anger increasingly solve’’ to stop these unfunded man- State and local officials and with other on Washington and gridlock, many po- dates. Senator Dole said he wanted to Senators to try to reduce the amount litical candidates in 1994 successfully read to them the tenth amendment of of loss to State and local governments. ran against Washington, appealing to the United States Constitution: The House bill, which is also before the voters to throw the bums out, replace The powers not delegated to the United Senate, would cost Philadelphia, Nash- them with individuals more honest and States by the Constitution, nor prohibited ville, Minneapolis, and our States up to devoted to the public welfare. by it by State, are reserved to the States re- $4 billion according to this study. So Then they began to list the items of spectively, or to the people. which taxes are they going to raise to the Contract with America, one of Senator Dole went across this coun- replace it? Which teachers are they which was to stop unfunded mandates. try during 1995, reading this amend- going to fire, from which school? Which I can remember that in 1994, the Re- ment to Republican audiences and to park are they going to close? We are publican Governors assembled in Wil- audiences in general. I know because I substituting our judgment for theirs. liamsburg. They typically do this after was there at many of the same meet- There are other more specific esti- an election every 2 years. There were 30 ings; and I know because I was there, mates. We have been hearing from of them there. Governor ALLEN, now that this is the heart and the soul of States. The Governor of Tennessee Senator, was the host, and Bob Dole, the Contract With America and the Re- called me. He is a Democrat. I am a Re- the new majority leader, came down. publican revolution in 1994. publican. That does not matter so This is what he promised the Repub- I am surprised that this case of am- much because I respect the office. I had lican Governors, that S. 1, the first bill nesia has come over so many of my col- lunch with another former Governor of of the Senate, was going to be un- leagues and that we have forgotten Tennessee, one of my predecessors. He funded mandates. That was what Sen- about the importance of this. This is a is a Democrat as well. He agrees with ator Dole promised the Republican body that is very respectful of one an- us, too. Governors. other. It would not be appropriate, I do The Tennessee Department of Reve- At about the same time, the Heritage not think, for me to mention a Sen- nues says the managers’ amendment Foundation was making a list of the ator’s name. I suppose I could do it

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.124 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13895 within the rules of the Senate and then merce Committee—under section 423 of (such as border control or reimbursement for mention what he said about unfunded the Budget Act, submits a request for services to illegal aliens); and (2) tighten mandates in 1995 and apply it to the an assessment, identification, and de- conditions of assistance or reduce federal funding for existing intergovernmental as- vote that we will be taking later this scription of any unfunded Federal man- sistance programs with entitlement author- week. But let me read to you just a date. ity of $550 million or more. Exclusions and handful of examples of the kind of That was done. The Commerce Com- exemptions outside the reach of the statute things that Members of this body said mittee asked the Congressional Budget are discussed later in this report. on this floor in 1995 when the Senate, Office: Is this ban on Internet access Under UMRA, an intergovernmental man- by 91 to 9, passed the unfunded man- taxation an unfunded Federal man- date is considered unfunded unless the legis- dates bill. One Senator said: date? lation authorizing the mandate meets its And the Congressional Budget Office costs by either (1) providing new budget au- In my own State, I repeat to the Senate, thority (direct spending authority or entitle- local officials, whether it be the Secretary of said: Yes. ment authority) or (2) authorizing appropria- the State or Labor implementing motor ve- I ask unanimous consent that a re- tions. If appropriations are authorized, the hicle registrations, or the mayor of the little port by the Congressional Research mandate is considered unfunded unless the town where I come from, attempted to meet Service be printed in the RECORD. legislation ensures that in any fiscal year: the needs of the small city. I have heard There being no objection, the mate- (1) the actual costs of the mandate will not their appeals and they clearly are tired of rial was ordered to be printed in the exceed the appropriations actually provided; the Federal Government telling them pre- RECORD, as follows: (2) the terms of the mandate will be revised cisely how to do things by regulation when so that it can be carried out with the funds (CRS Report for Congress—Received they could do it just as well in different ways appropriated; (3) the mandate will be abol- Through the CRS Web) at less cost to their people. ished; or (4) Congress will enact new legisla- A Democrat from the South: UNFUNDED MANDATES REFORM ACT tion to continue the mandate as an unfunded SUMMARIZED I believe there is a tendency, particularly mandate. Contents of the Act. The act consists of during a time of constrained Federal re- (By Keith Bea and Richard S. Beth, Spe- five prefatory sections and four titles. The sources, to look to the imposition of obliga- cialist, American National Government, prefatory sections address matters such as tions on State and local government as a Government Division) the purpose, short title, and exclusions from means of accomplishing national objectives SUMMARY coverage of the act. Title I amends the Con- which we at the national Government are ei- This summary of the Unfunded Mandates gressional Budget and Impoundment Control ther unwilling or unable to pay for. Reform Act (UMRA) of 1995 will assist Mem- Act, as amended, to permit Congress to (1) bers of Congress and staff seeking succinct Another southern Senator, this one a identify legislation proposing mandates, and information on the statute. The term ‘‘un- Republican: (2) decline to consider legislation proposing funded mandates’’ generally refers to re- unfunded intergovernmental mandates. Title We worry about how we attract good peo- quirements that a unit of government im- I also sets forth thresholds for action, au- ple into office. It is things like unfunded poses without providing funds to pay for mandates that drives them out. thorizations, and definitions. Title II re- costs of compliance. UMRA establishes quires that Federal agencies assess the fi- Another Senator from the West: mechanisms to limit federal imposition of nancial impact of proposed rules on non- I served in the legislature and a good deal unfunded mandates on other levels of gov- federal entities, determine whether federal of our budget was committed before we ever ernment (intergovernmental mandates) and resources exist to pay those costs, solicit and arrived by Federal unfunded mandates. on the private sector. The act establishes consider input from affected entities, and This goes on and on. points of order against proposed legislation generally select the least costly or burden- containing an unfunded intergovernmental some regulatory option.Title III called for a The one other matter that I would mandates, requires executive agencies to like to specifically mention before I review of Federal mandates to be completed seek comment on regulations that would within 18 months of enactment. This statu- conclude is I want to remind, if I may, constitute a mandate, and establishes a tory requirement was not completed. UMRA my colleagues of why this is an un- means for judicial enforcement. This report assigned the study to the Advisory Commis- funded mandate. Several have come up will be updated during the 106th Congress if sion on Intergovernmental Relations (ACIR), to me and said: This doesn’t sound like the act is amended. which no longer exists. The ACIR completed an unfunded mandate to me. I thought OVERVIEW OF UMRA a preliminary report in January, 1996, but an unfunded mandate was only when History of the Act. Enactment of the Un- the final report was not released. Title IV you pass a law to do a program, like funded Mandates Reform Act of 1995 (UMRA) authorizes judicial review of federal agency help children with disabilities, and culminated years of effort by nonfederal gov- compliance with Title II provisions.The re- mainder of this report summarizes the re- then only pay half the bill, which is ernment officials and their advocates to con- trol, if not eliminate, the federal imposition quirements set forth in Titles I, II, and IV of what we do. of unfunded mandates. Supporters contend the act. That is one kind of unfunded man- that the statute is needed to forestall federal REVIEW OF PROPOSED LEGISLATION (TITLE I) date. But another kind of unfunded legislation and regulations that impose ques- Referred to as ‘‘Legislative Accountability mandate that is specifically defined by tionable or unnecessary burdens and have re- and Reform,’’ Title I establishes require- the Budget Act that was amended in sulted in high costs and inefficiencies. Oppo- ments for committees and the Congressional 1995 by this Congress is a direct cost nents argue that mandates may be necessary Budget Office (CBO) to study and report on that to achieve results in areas in which vol- the magnitude and impact of mandates in untary action may be insufficient or state . . . would be required to be spent or pro- proposed legislation. Title I also creates actions have not achieved intended goals. hibited from raising in revenues, in order to point-of-order procedures through which Since the mid-1980s, Congress debated leg- comply with the Federal intergovernmental these requirements can be enforced and the islation to slow or prohibit the enactment of mandate. consideration of measures containing un- unfunded federal manages. The inclusion of funded intergovernmental mandates can be In other words, the term ‘‘unfunded the issue in the Contract with America, the blocked. mandates’’ just requires the require- blueprint of legislation action developed by Information Requirements. Under UMRA, ments that we impose when we don’t the House Republican leadership when it congressional committees have the initial pay the bill. Whether we are requiring gained the majority practically guaranteed responsibility to identify Federal mandates a new program or whether we are tell- that action would be taken. UMRA was in measures under consideration. Commit- ing the State it cannot do this tax or signed into law early in the 104th Congress, tees may have CBO study whether proposed on March 22, 1995. legislation could have a significant budg- that tax, it is a requirement we are im- Coverage of the Act. Under UMRA, Federal etary impact on nonfederal governments, or posing without paying the bill. In other mandates include provisions of law or regu- a financial or employment impact on the pri- words, we are claiming credit and ask- lation that impose enforceable duties, in- vate sector. Also, committee chairs and ing others to pay the cost. cluding taxes. They also include provisions ranking minority members may have CBO The Uniform Unfunded Mandates Re- that reduce or eliminate Federal financial study any legislation containing a Federal form Act of 1995 created a very specific assistance available for carrying out an ex- mandate. procedure for this. This isn’t guess- isting duty. UMRA distinguishes between When an authorizing committee orders re- work. It said that when there appears ‘‘intergovernmental mandates,’’ imposed on ported a public bill or joint resolution con- state, local, or tribal governments, and ‘‘pri- taining a Federal mandate, it must provide to be an unfunded mandate, that here vate sector mandates.’’ Intergovernmental the measure to CBO. CBO must report an es- is how we enforce that. First, the Sen- mandates include legislation or regulations timate of mandate costs to the committee. ate committee of relevant jurisdic- that would: (1) reduce certain Federal serv- The office must prepare full quantitative es- tion—in this case it would be the Com- ices to State, local, and tribal governments timates if costs are estimated to exceed $50

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.126 S04PT1 S13896 CONGRESSIONAL RECORD — SENATE November 4, 2003 million (for intergovernmental mandates) or waives the point of order, UMRA subjects tice must be given to those governments; $100 million (for private sector mandates), the special rule itself to a point of order, and technical assistance must be provided. adjusted for inflation, in any of the first five which is disposed of by the same mechanism. Also, UMRA requires that Federal agencies fiscal years the legislation would be in ef- These procedures are intended to insure consider ‘‘a reasonable number’’ of policy op- fect. Below these thresholds, CBO must pre- that the House, like the Senate, will always tions and select the most cost-effective or pare brief statements of cost estimates. For have an opportunity to determine, by vote, least burdensome alternative. each reported measure with costs over the whether to consider a measure that may con- JUDICIAL REVIEW (TITLE IV) thresholds, CBO is to submit to the com- tain an unfunded mandate. Also, if the House The requirements in Title II pertaining to mittee an estimate of: votes to consider a measure in spite of the the preparation of a mandate assessment The direct costs of Federal mandates con- point of order, UMRA protects the ability of statement and notification of impact on tained in it, or in any necessary imple- Members to offer amendments in the Com- small governments remain subject to judi- menting regulations; and mittee of the Whole to strike out unfunded cial review. A Federal court may compel a The amount of new or existing Federal intergovernmental mandates, unless the spe- Federal agency to comply with these re- funding the legislation authorizes to pay cial rule specifically prohibits such amend- quirements, but such a court order cannot be these costs. ments. used to stay or invalidate the rule. If reported legislation authorizes appro- Additional Enforcement Mechanisms. A priations to meet the estimated costs of an point of order under the UMRA mechanism Mr. ALEXANDER. Then there are intergovernmental mandate, the CBO report may be raised not only against initial con- some other steps that have to be taken. must include a statement on the new budget sideration of a bill or resolution, but also Not only is it defined as an unfunded authority needed, for up to 10 year, to meet against consideration of an amendment, con- intergovernmental mandate, there has these costs. For a measure that reauthorizes ference report, or motion (e.g., a motion to to be a certain threshold of spending, or amends an existing statute, the direct recommit with instructions or a motion to $50 million adjusted by inflation, which costs of any mandate it contains are to be concur in an amendment of the other house today would be $64 million. measured by the projected increase over with an amendment) that would cause the So the Congressional Budget Office those costs required by existing law. The cal- unfunded costs of intergovernmental man- has given its opinion on that, and they dates in a measure to exceed the specified culation of increased costs must include any have said yes; it is an unfunded Federal projected decrease in existing Federal aid threshold. UMRA does not require amend- that provides assistance to nonfederal enti- ments or motions to be accompanied by CBO mandate. So what the legislation pro- ties. mandate cost estimates, but a Senator may vides, and what I plan to do when this The committee is to include the CBO esti- request CBO to estimate the costs of man- comes up on Thursday, is as the law mate in its report or publish it in the CON- dates in an amendment he or she prepares. If says. That it is not in order for this GRESSIONAL RECORD. The committee’s report an amended bill or resolution or a conference body to pass an unfunded Federal on the measure must also: report contains a new mandate or other new intergovernmental mandate, and that a Identify the direct costs to the entities increases in mandate costs, the conferees are point of order may be raised against its that must carry out the mandate; to request a supplemental estimate, which Assess likely costs and benefits; CBO is to attempt to provide. UMRA re- consideration. I plan to raise such a Describe how the mandate affects the quires no publication of these supplemental point of order. ‘‘competitive balance’’ between the public estimates. The point of order may be waived by and private sectors; and The UMRA points of order are not applica- this body by 51 votes, which I hope it State the extent to which the legislation ble against consideration of appropriations does not do because this body told the would preempt state, local, or tribal law, and bills. However, if an appropriation bill con- explain the effect of any preemption. world in 1995 that it was through with tains legislative provisions that would create this business of unfunded mandates. These requirements apply to all proposed unfunded intergovernmental mandates in ex- mandates, both intergovernmental and pri- But we will see. We will see. cess of the threshold, the UMRA point of I will agree that it sounds good to vate sector. For intergovernmental man- order may be raised against the provisions dates alone, the committee is to describe in themselves. In the Senate, if this point of say we are not going to tax Internet its report the extent to which the legislation order is sustained, the provisions are strick- access. I will agree that there may be a authorizes federal funding for the direct en from the bill. Federal interest in not taxing Internet costs, and details on whether and how fund- Exclusions and Exemptions. Legislation access. I agreed when the issue first ing is to be provided. pertinent to the following subject matters came up in the 1990s that while the Points of Order for Initial Consideration. remains exempt from the UMRA point-of- UMRA establishes that when any measure is Internet was still an infant, maybe for order procedures: individual constitutional the first 3 years a moratorium would taken up for consideration in either house, a rights, discrimination prohibitions, auditing point of order may be raised that the meas- compliance, emergency assistance requested be in order. ure contains unfunded intergovernmental by nonfederal government officials, national But if we think it is so important, mandates exceeding the $50 million thresh- security or treaty obligations, emergencies then we should pay the bill. We should old. This point of order applies to the meas- as designated by the President and the Con- pay the bill. We should not fall into ure as reported, including, for example, a gress, and Social Security. The provisions of this bad habit that existed before the committee amendment in the nature of a Title I pertinent to Federal agencies (for ex- Republican revolution of 1994 of assum- substitute. For any measure reported from ample, the requirement that agencies deter- committee, a point of order against consider- ing that just because we were elected mine whether sufficient appropriations exist ation may also be raised for either intergov- to come to Washington, suddenly we to provide for proposed costs) do not apply to ernmental or private sector mandates, if the are all wise and that the Governors and federal regulatory agencies. Also, provisions committee has not published a CBO esti- mayors and legislators are not quite as establishing conditions of Federal assistance mate, or if CBO reported that no reasonable or duties stemming from participation in wise and that we, therefore, ought to estimate was feasible. tell them what to do and that we ought In the Senate, if either point of order is voluntary Federal programs are not man- sustained, the measure may not be consid- dates. to restrict their ability to do it or not ered. Otherwise, in ruling on the point of ASSESSMENT OF MANDATES IN REGULATIONS do it based upon what their tax base is. order, the chair is to consult with the Com- (TITLE II) Let them do their job and we can do mittee on Governmental Affairs on whether Title II requires that Federal agencies pre- ours. the measure contains intergovernmental pare written statements that identify costs I want to end where I began. It is a mandates. Also, the unfunded costs of the and benefits of a Federal mandate to be im- privilege to be in this body. One of the mandate are to be determined based on esti- posed through the rulemaking process. The greatest privileges is to stand up here mates by the Committee on the Budget requirement applies to regulatory actions and say, on the floor of the Senate, (which may draw for this purpose on the CBO determined to result in costs of $100 million something I used to think about as estimate). or more in any one year. The written assess- In the House, the chair does not rule on ments to be prepared by Federal agencies Governor time after time: Why are these points of order. Instead, under UMRA, must identify the law authorizing the rule, those Senators and those Congressmen the House votes on whether to consider the anticipated costs and benefits, the share of assuming I can’t do my job here? Why measure despite the point of order. To pre- costs to be borne by the Federal Govern- are they passing rules and then telling vent dilatory use of the point of order, the ment, and the disproportionate costs on indi- me to pay the bill, especially when chair need not put the question of consider- vidual regions or components of the private they are printing money and we are ation to a vote unless the point of order sector. Assessments must also include esti- balancing budgets? identifies specific language containing the mates of the effect on the national economy, I think we should draw the line. If we unfunded mandate. Also, if several points of descriptions of consultations with nonfederal really believe that a ban on Internet order could be raised against the same meas- government officials, and a summary of the ure, House practices under UMRA afford evaluation of comments and concerns ob- access in a segment of the tele- means for all to be consolidated in a single tained throughout the promulgation process. communications interest is so over- vote. If the Committee on Rules proposes a Impacts of ‘‘any regulatory requirements’’ whelmingly in the Federal interest, special rule for considering the measure that on small governments must be identified; no- then let’s pass an unfunded Federal

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.088 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13897 mandate reimbursement bill and send a essary because I know the Senator to pass this bill. It is a bill that is on check to the States, to Minneapolis, from Nevada, who has spent countless the President’s agenda. This is one of Nashville, Tennessee, every year, for hours here on the floor, would like to the bills he really wants to accomplish. whatever the cost of that is. leave, like so many others here, but I I fully anticipate that if this bill I remind my colleagues, and I intend raise again the issue of H.R. 7. comes back in the form that is not ac- to do so as long as I am here, that they H.R. 7 is the charitable giving act, ceptable to the minority, there is prob- were right in 1994 about the Contract the CARE Act, that passed both the ably very little chance they are going With America. They were right when House and the Senate. I want to state to give us the votes to be able to pass they stood on the steps of the Capitol again for the RECORD this is a bipar- it. and promised: No more unfunded man- tisan bill. This is a bill that was To be crass about it, we have to work dates. If we break our contract, throw worked out in the Senate by Senator together. But to be honest about it, I us out. And they were right when they LIEBERMAN and myself. I worked with want to work together. I think I have passed by 91 to 9 in 1995 the ban against Senators DURBIN and REED of Rhode Is- shown throughout the entire legisla- unfunded Federal mandates. land and others when they brought up tive history of this act that I have done I hope the 64 of my colleagues who concerns about this bill. We wanted to so, and I have done so honestly and are still here remember that vote. have a balanced bill, a bipartisan bill, straightforwardly. We have produced a The PRESIDING OFFICER. The Sen- one that could pass here with the kind bill that has gotten overwhelming sup- ator from Pennsylvania. of support for a bill which encourages port. Actually a higher percentage of Mr. SANTORUM. Mr. President, to charitable giving and individual devel- Democrats voted for this bill than Re- publicans. comment on the legislation the Sen- opment accounts for low-income indi- I am concerned. I understand the mi- ator from Tennessee was discussing, I viduals and social services block grants nority has said and the Senator from have some concerns about the Internet to help those organizations that meet Nevada has said with frequency they and taxation of the Internet. I listened the needs of people who are hurting in are not being treated fairly in con- with great interest to the arguments our communities. It should pass on a ference. I understand that, and I don’t the Senator from Tennessee has made. bipartisan basis. We were able to work necessarily want to get into that issue. I think they are very good arguments. that out. I even worked out something They may have points, and they can I have another argument that causes I wasn’t sure I could work out, which is take them up with the committee pause for me and that is that, while, a commitment to try to work with the chairman and with the leader. I am yes, everybody is talking about all the House to make sure they didn’t include talking about this bill. This is the first commerce that occurs on the Internet, language which Senator REED of Rhode bill on which this charge has been lev- there is a lot more depravity that oc- Island requested and Senator DURBIN eled. We are not going to conference on curs on the Internet than commerce. requested; that it not include language this bill because of those reasons. I The top Web sites visited on the having to do with faith-based organiza- think it is not the best bill to pass. Internet are Web sites having to do tions and expanding charitable choice. There may be other bills that have not with pornography. As the father of six Charitable choice is a provision in been worked on on a bipartisan basis. young kids, I have to tell you that con- the law that was passed here three But the prospect of having a bipartisan tinuing in the sense of subsidies by not times and signed by the President compromise is less likely than with allowing taxation concerns me. It three times to allow faith-based orga- this bill. This is a bill that helps poor seems to me these Internet IFCs and nizations to participate in social serv- kids. This is a bill that is going to pro- others who are so concerned in coming ice funding programs the Federal Gov- vide social services funding to make up here saying don’t tax us and don’t ernment implements. I said I would do sure people do not go homeless or hun- hold back the potential of the Internet my best to make sure that it was not gry. This is a bill that we need to finish seem to be a heck of a lot less con- in the House bill, and lo and behold, I before the holiday season. cerned about the impact of culture was successful and it is not in the It makes no sense for us to use this debasement that is going on as a result House bill. It is not a conferenceable vehicle as sort of the line in the sand of the exposure of pornography and vio- issue. The biggest concern by about that the minority is going to draw to lence and what I would consider anti- government and faith being mixed to- say we are not happy with the way we social activities that occur with fre- gether is not in this bill. It is not a are being treated. Fine. You are not quency and that are even more harm- conferenceable item. There is no poison happy with the way you are being fully imposed on young kids in popup pill that can come back in this bill be- treated, I understand that. But you ads, through e-mail and spam and cause it is not a conferenceable item. I certainly haven’t been treated poorly through other vehicles that these lech- kept the commitment on a bipartisan on this bill. On this bill, you have been erous members of the international basis to keep this bill clean. treated, I hope, as good as on any bill community—it is not just in this coun- There are controversies between the that has been passed through this try—use to try to sell their wares on House and Senate bills. The Senate bill Chamber. I anticipate that continuing. the Internet. is paid for. We have offsets in the bill. I anticipate—in fact, solicit and ex- I am speaking not as a Senator but The House bill is not paid for. The so- pect—full participation from Senator as a father who is very disturbed about cial services block grant, which is a BAUCUS, with whom I have talked on people coming here and crying, Don’t very important component of this mix, this issue, and Senator GRASSLEY, with tax us, at the same time they are doing is in the Senate bill and is not in the whom I have talked. Senator GRASSLEY very little to stop what I think is one House bill. There are a variety of dif- came to the floor yesterday and said he of the scourges that attacks the de- ferent tax provisions that are treated anticipates, as he does with most if not cency of our society. differently in the House and Senate. all of the conferences he has been in- As someone who has been a supporter This isn’t going to necessarily be an volved with, working on a bipartisan of the moratorium, as someone who easy conference. There will have to be basis as is the custom in the Finance has never seen a tax cut I didn’t like a lot of give and take, as in most con- Committee. and never saw a tax I did like, I don’t ferences, when we are dealing with I say in conclusion, before I enter like what I see going on on the Inter- taxes and spending. into the unanimous consent request, to net. This whole comment about it is I think it is important that we sit please look at what this bill has the po- commerce, if you look at where the down with the House and have a con- tential of doing—2 billion pounds of commerce is, it is not the kind of com- ference. I will tell you that I fully an- food and more will be donated as a re- merce I think we want to be sup- ticipate needing and wanting support sult of this bill passing over the next porting. from my colleagues here in the Senate few years, 2 billion pounds of food that f on both sides of the aisle to get this will be donated so people in America bill done. We are going to need that who are hungry and people who will be THE CARE ACT kind of leverage to go to the House and homeless will no longer be hungry and Mr. SANTORUM. Mr. President, I be able to work out this compromise. I homeless; people who want quality edu- will not take any more time than nec- will need their support because I want cation will have a better opportunity

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.127 S04PT1 S13898 CONGRESSIONAL RECORD — SENATE November 4, 2003 to get that education; people who want public laws. We bundled them up, sent wanted were very minor changes, a to save and invest and start a small them to the House. On some of the oc- couple of finding changes and basically business or to go to school or to buy a casions they accepted them, other a change in the waiver status. We home will have the opportunity to do times they sent them back with an talked to the House and they were will- that which they don’t have today. amendment with which we dealt. H.R. ing to accept it because they were That is what this is all about. This 1584, H.R. 1298, H.R. 733, H.R. 13, H.R. minor changes. That is an important should not be about disappointment 3146, H.R. 659 are extremely important piece of legislation. I would consider over past practices. I hope we can focus pieces of legislation that we thought at that a major piece of legislation, but it on the goodness of this legislation and the time were important. They are now is not a particularly complex piece of not take something that is accepted by law. legislation as we are dealing with— both sides as a desirable and good thing It is my understanding that the Sen- with a lot of the moving parts—as we for those who need help in America and ate, because of the majority, is not have in the charitable giving act, the use that as the point of departure of a willing to deal with the CARE Act, as CARE Act. This is a rather complex new idea that says we are not going to has been so forcibly announced here piece of legislation, complex tax law. go to conference because we have not today by the distinguished Senator There is a whole issue of $10 billion been treated fairly. from Pennsylvania. that is not paid for in one bill, in the I just hope in searching yourselves on I suggest and, in the form of a unani- House bill, and it is paid for here. How the minority side that you will grab mous consent, request that we treat are we going to tell what, if anything, another piece of legislation and use this legislation as we treat lots of leg- will be paid for and how much; what that as the starting point. I don’t think islation: Send it to the House; they vehicles, what measures, we will use to this legislation deserves it. I don’t might accept it. If they do not, they offset this? This is a very complicated think the people who will benefit from can send it back with an amendment or issue that has not just one—as the it deserve it. I hope after further con- amendments on it. They may like our Syria Accountability bill—issue. There sideration we can have a reasonable bill. They may want to amend our bill. are many issues. There is the food do- conference and get this accomplished. They may want to send it back. At nation provision. There are provisions f least we should give the House this op- on IRA rollovers. There are provisions portunity rather than holding the bill on people who do not file long forms, UNANIMOUS CONSENT REQUEST— hostage. people who do not itemize being able to H.R. 7 Therefore, I ask unanimous consent deduct charitable giving. That is just Mr. SANTORUM. Mr. President, I that the Senate proceed to the imme- three of probably a dozen issues we are ask unanimous consent that the Sen- diate consideration of H.R. 7, which is going to have to deal with on this bill. ate proceed to the immediate consider- at the desk; that all after the enacting To suggest we can do so by ping- ation of H.R. 7, the charitable giving clause be stricken; the Snowe amend- ponging the bill back and forth and bill. I further ask unanimous consent ment and the Grassley-Baucus amend- trying to find some equilibrium—I sug- that all after the enacting clause be ment be agreed to en bloc; that the gest the people who have been in this stricken; the Snowe amendment and substitute amendment, which is the Chamber for a lot longer than I have the Grassley-Baucus amendment at the text of S. 476, as passed by the Senate would recognize that a bill of this com- desk be agreed to en bloc; that the sub- and amended by the Snowe and Grass- plexity does not get handled that way. stitute amendment, which is the text ley-Baucus amendments, be agreed to; I hope we will recognize we have an of S. 476, the Senate-passed version of the bill, as amended, be read the third obligation to try to finish this legisla- the charitable giving bill, as amended time and passed; and the motion to re- tion. I hope we can do so in a way that by the Snowe-Grassley-Baucus amend- consider be laid upon the table, with no will do well by the Senate. We have my ments, be agreed to; that the bill, as intervening action or debate. commitment, the commitment of the amended, be read the third time and The PRESIDING OFFICER. The ob- Senator from Pennsylvania, to be in- passed and the motion to reconsider be jection is heard of the request of the clusive, not just because that is the laid upon the table; further, that the Senator from Pennsylvania. way we have done it but that is the Senate insist upon its amendments and Is there objection to the request of way we need to do it in order to be suc- request a conference with the House; the Senator from Nevada? cessful and get a compromise that will and, lastly, that the Chair be author- Mr. SANTORUM. I object. pass both the House and the Senate. ized to appoint conferees with the ratio Mr. President, I understand the Sen- I respectfully have to object to the of 3 to 2 and any statements relating to ator from Nevada has suggested we unanimous consent request of the Sen- the bill be printed in the RECORD. simply amend the bill we passed earlier ator from Nevada and hope we can con- Mr. REID. I object. To say going to a this year and send it back to the tinue to think of this and work on it conference is the only way to legislate House. and get to a successful conclusion. between the House and the Senate is I respectfully suggest to the Senator Mr. REID. Mr. President, as my not a valid argument. I personally from Nevada, through the Presiding Of- friend has said, we do not want to pro- favor this legislation. I voted for it and ficer, we did that once. We passed this long this, but I make another sugges- I think it is something that is needed. bill once and sent it to the House, and tion that may work. That would be As everyone knows, I am not a cheer- the House struck that bill and sent that the two amendments, the Snowe leader for the budget but I think this their version back. I don’t think we amendment which deals with the child legislation is important for our coun- gain anything by then taking the very tax credit and the other amendment try. I commend the President for mov- bill they rejected and sending it back that deals with tax extenders, really ing forward on it. to them and expecting them to pass it. have nothing to do with charitable As I indicated, saying that a con- That is what I would call ping-pong. choice. I suggest those be taken from ference is the only way to legislate be- That is back and forth with nobody the bill and the pure bill that passed tween the House and the Senate is not getting anywhere. That is why there the Senate be sent to the House forth- a valid argument. Almost every day, are things such as conferences, where with. That may make it easier for the both Houses pass legislation for which we actually sit down and try to work House to deal with—I would hope so— a conference is not appointed. out differences. and the other issues which I know are Last night, the Senate passed the I am not familiar with the list of very important, we could deal with at Fallen Patriots Tax Relief Act. We bills the Senator from Nevada laid out a later time. amended this piece of legislation, then when he said we have been able to ac- That is just a suggestion. I am not sent it back to the House without ask- complish passing of legislation without asking unanimous consent; I am just ing for a conference. having a conference. And that is true. saying to my friend who has devoted so We have done this lots of times. Here We are going to do one, hopefully, to- much of his time to this bill, which I are bills that are now public laws. morrow, the Syria Accountability Act. know he believes in very sincerely, These pieces of legislation are now But the changes between what the that might be a suggestion that is public laws. That is how they became House wanted and what the Senate taken up with the majority leader and

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.119 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13899 others who have some persuasive pow- I join all of America in mourning each sional Fellow in 2001. He is a helicopter ers in their ability to move this mat- and every one of these brave soldiers, pilot and is currently the commander ter. and in praying for the recovery of the of the 421st Medical Battalion sta- For clarification with respect to my 20 soldiers who were injured in the at- tioned in Germany. Lt. Colonel Sar- colloguy with the distinguished Sen- tack. gent served in Operation Iraqi Freedom ator from Pennsylvania, we are ready It’s a sad fact of war that as the and is scheduled to return for a second to send to the House all three compo- death toll mounts, the daily casualty deployment shortly. nents of the Senate amendment to H.R. reports can become almost routine. This past August, Pat received the 7, the version of S. 476, as passed the But each time I read the story of a General Benjamin O. Davis Jr. Award Senate, the Snowe-Lincoln child tax Connecticut soldier who has perished by the Tuskegee Airmen Inc., an orga- credit piece, and the Grassley-Baucus overseas and this is the sixth such nization dedicated to preserving the tax extenders piece. We are supportive story in this war I’m reminded of how amazing legacy of the World War II of all these items. In order to help the many lives are touched by every single Tuskegee Airmen. This award is con- Senator from Pennsylvania, we are man or woman who makes the ulti- ferred annually to ‘‘a field grade officer ready to send all of them over sepa- mate sacrifice so that all of us can live who has exhibited outstanding per- rately, and of course, we are ready to in peace, freedom, and security. formance in both professional and com- go forward sending them over bundled Anthony was a true Connecticut son, munity service.’’ It is the highest just without the necessity of a con- spending virtually his entire life in our award given by this organization, and ference. State. He grew up in Middlebury, at- this year was the first time this honor Mr. SANTORUM. I appreciate the tending Middlebury Elementary School has gone to an Army aviator. suggestion of the Senator from Nevada. and Memorial Middle School, and in Who were the Tuskegee Airmen? I suggest in response to that, again, 2001, he graduated from the W.F. They were a group of American heroes this bill is the bill that has already Kaynor Regional Vocational-Technical who every American should know passed the Senate. We already sent it High School, specializing in electricity. about. In recent years we have seen a over to the House. The House has al- After graduating, he lived in Water- surge in interest in World War II and ready looked at the Senate bill and bury until he enlisted in the Army 2 the experiences of American service- said: We have a better way. We do not years ago. men who served in the worst conflict want to have offsets to this bill; we do Men and women across America who humanity has ever seen. Movies such not want to have social service block make the decision to join our Armed as ‘‘Saving Private Ryan’’ have done grant funds; we do not want to have as Forces do so for a variety of reasons. much to illustrate the sacrifices of our generous a food donation provision. We For Anthony D’Agostino, it was a deci- World War II veterans, and we have want to have some other provisions sion that was forged in the fire of the begun construction of a World War II that you do not have in this legisla- attacks of September 11, 2001. Like so Memorial on the Mall here in Wash- tion. They sent it back. many Americans, in the aftermath of ington. All of these veterans sacrificed Now when you have such differing those terrible attacks, Anthony de- for the allied cause against totali- viewpoints on how to solve this prob- cided that he wanted to contribute tarianism. lem, the tradition in this body, and out something to his country. Tragically, But the Tuskegee Airmen faced an of necessity, is to convene a conference he and his family would ultimately additional struggle on top of the war and get that done. Sending different make the most painful contribution of against the Axis Powers. They fought versions back and forth does not make all. prejudice here at home, and they suc- progress and, with all due respect, I do Joining the Army was a homecoming ceeded on both fronts. During World not believe will solve the problem. of sorts for Anthony. He was born in War II, the U.S. military began an ex- I suggest the absence of a quorum. Georgia while his father Steven was periment to determine whether African The PRESIDING OFFICER. The stationed at Fort Benning. And when it Americans were capable of successfully clerk will call the roll. was time for Anthony to enter basic piloting combat aircraft. This ‘‘experi- The assistant legislative clerk pro- training 19 years later, he returned to ment’’ eventually evolved into the ceeded to call the roll. the same base where his father once 332nd Fighter Group, consisting of four Mr. SANTORUM. Mr. President, I served. squadrons of fighter aircraft piloted en- ask unanimous consent that the order Those who knew Anthony say he had tirely by African Americans. Under the for the quorum call be rescinded. a tremendous work ethic, whether that command of then-Colonel Benjamin O. The PRESIDING OFFICER. Without meant giving his all on high school Davis, the 332nd flew 200 missions es- objection, it is so ordered. sports teams, or mowing his grand- corting U.S. bombers over Europe. It was the only U.S. fighter group of the f parents’ lawn with a stand-up mower. Even while he was in Iraq, he asked his war that never lost a bomber under its MORNING BUSINESS family to send over Spanish books so protection. Mr. SANTORUM. Mr. President, I he could use what little spare time he Pat Sargent is a modern-day descend- ask unanimous consent that there now had to better himself. He had dreams of ent of those brave men. As I noted, he be a period for morning business with returning home and attending the U.S. commands the 421st Medical Battalion. Senators permitted to speak for up to Military Academy in West Point. With 45 Black Hawk helicopters, 40 10 minutes each. Anthony D’Agostino knew he was ground ambulances, 118 wheeled vehi- The PRESIDING OFFICER. Without facing serious danger when he left for cles, and 591 personnel, it is the U.S. objection, it is so ordered. Iraq 8 months ago. But it was a danger Army’s largest medical evacuation bat- f he was prepared and proud to accept as talion. Serving in Operation Iraqi Free- a soldier in the United States Army. dom, Pat became the first African HONORING OUR ARMED FORCES Anthony had a sense of responsi- American to command a medical evac- Mr. DODD. Mr. President, I rise to bility, dedication, and commitment uation battalion in combat in our Na- honor the memory of Pfc. Anthony well beyond his years. And Connecticut tion’s history. The motto of the 421st is D’Agostino, of Waterbury, CT, who was will never forget him. ‘‘Anyone, Anywhere, Anytime.’’ It is killed in Iraq this past Sunday. He was My heart goes out to Anthony’s fa- only three words in length, but it is just 4 days short of his 21st birthday. ther Steven, his mother Deb, his step- telling nonetheless. The battalion’s Private D’Agostino was part of the father Paul, and to his entire family. men and women are deployed to sites U.S. Army’s 16th Signal Brigade, based Mr. DURBIN. Mr. President, I would across the globe, including the Bal- in Fort Hood, TX. He was one of 15 sol- like to take a few minutes to pay trib- kans, Iraq, Afghanistan, and Africa. diers killed when a missile struck a ute to a truly remarkable individual They perform medical evacuations not Chinook helicopter that was carrying whom I have had the privilege to know only for American soldiers but for al- American troops to Baghdad Inter- and work with, U.S. Army Lt. Colonel lied troops, wounded enemy soldiers national Airport for a trip home to Patrick Sargent. Pat Sargent worked that have been taken prisoner, and in- spend 2 weeks with family and friends. in my office for a year as a Congres- jured civilians. In Iraq, helicopters

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.122 S04PT1 S13900 CONGRESSIONAL RECORD — SENATE November 4, 2003 from the 421st on MedEvac missions capital—America’s sons and daugh- graduating from high school and ‘‘abso- are routinely fired upon. Think about ters.’’ He expressed his thanks for all lutely loved’’ his career in the Army, that. The crews of these helicopters, that Congress has done to support our said his wife Tiffany. In addition to his these amazing men and women, are men and women in uniform. wife, Staff Sergeant Bader leaves be- being shot at as they strive to bring Well, Pat, I want to thank you—and hind a 14-month-old daughter, Taryn life-saving medical care to Iraqis and all of our dedicated service men and Makenzie. Our thoughts and prayers Americans alike. Anyone, anywhere, women—for your sacrifices, your com- are with them both at this difficult anytime. mitment, and your bravery. And I con- time. Colonel Donald Gagliano, commander gratulate you for your receipt of the Staff Sergeant Bader and thousands of the 30th Medical Brigade of which General Benjamin O. Davis Award, an of brave American service men and the 421st Battalion is a part, com- honor you richly deserve. women confront danger every day in mented on Pat’s recent award: ‘‘This Mr. WARNER. Mr. President, I seek Iraq—their tremendous risks and sac- exemplary senior Army aviator is the recognition to honor a Virginia soldier, rifices must never be taken for grant- quintessence of excellence. He is the Captain John Robert Teal, who was ed. For his service, bravery, and sac- epitome of the Tuskegee Airman, and tragically killed in action in Iraq on rifice, I ask my colleagues to join me his character, demeanor and profes- Thursday, October 23, 2003. I want to and all Americans in honoring Staff sionalism are reflective and very simi- express gratitude, on behalf of the Sen- Sergeant Daniel Bader. lar to that of Gen. Benjamin O. Davis ate, for his service to our Nation. The f Jr.’’ American people, I am certain, join me I cannot adequately pay tribute to in expressing their prayers and com- MOVING TO SUSPEND PARAGRAPH Pat without also discussing his wife passion to his family. 4 OF RULE XVI Sherry. She is also a Lt. Colonel in the Captain John Robert Teal followed Mr. CRAPO. Mr. President, I submit Army and is currently stationed in his father Joseph, a retired firefighter, the following notice in writing: ‘‘In ac- Iraq as part of the 1st Armored Divi- into public service. He understood the cordance with rule V of the Standing sion. She and Pat met early in their ca- importance of his present assignment Rules of the Senate, I hereby give no- reers, while they were both in training and despite the personal risk, wanted tice in writing that it is my intention to become officers. Together they have to serve the United States and the peo- to move to suspend paragraph 4 of rule a lovely daughter Samantha. Sherry ple of Iraq during this critical time. XVI for the purpose of proposing to the has been in Iraq since the spring and is A medical officer attached to the Committee Amendment to the bill not scheduled to leave until spring, Army’s 4th Infantry Division, he was a (H.R. 2673), Making appropriations for 2004. dedicated and compassionate young Agriculture, Rural Development, Food As Pat and Sherry have found them- man who, according to news reports, and Drug Administration, and Related selves both deployed overseas, they spent his final days helping sick chil- Agencies for the fiscal year ending Sep- have had to make arrangements for dren. tember 30, 2004, and for other purposes, someone to look after Samantha. For- Captain Teal leaves behind his father with respect to amendment No. 2068. tunately, Sherry’s parents have been Joseph; his mother Emmie; and his sis- able to relocate to Germany indefi- ter Elizabeth Kormanyos. f nitely to help care for Samantha. His parents, Joseph and Emmie, with LOCAL LAW ENFORCEMENT ACT The Sargent family illustrates the whom I have had the pleasure to speak, OF 2003 fact that when our Nation calls upon albeit under tragic circumstances, are our military to deploy, be it for peace- brave souls who have sacrificed so Mr. SMITH. Mr. President, I rise keeping, for combat, or for another much for this Nation. We owe them and today to speak about the need for hate type of operation, the sacrifices are the other families who have lost their crimes legislation. On May 1, 2003, Sen- borne by more than just those individ- loved ones a debt of gratitude. ator KENNEDY and I introduced the uals who wear a military uniform. John was a 1990 graduate of Bene- Local Law Enforcement Enhancement September 11, 2001, was, of course, a dictine High School. Upon graduating Act, a bill that would add new cat- tragic day for all Americans. Some of from Benedictine, he attended the Vir- egories to current hate crimes law, us were touched more directly than ginia Military Institute from which he sending a signal that violence of any others. As I stated, Pat Sargent spent graduated in 1994 and received a com- kind is unacceptable in our society. 2001 as a Congressional Fellow in my mission in the United States Army. Mr. Robert Maricle, a bisexual man Washington, DC office. During that He was an exceptional young man from Salinas, CA, disappeared from his time, his wife was working at the Pen- with a bright future in front of him. He community on December 14, 2002. Al- tagon. On that terrible morning of Sep- was known as a wonderful person and most 4 months later, his body was dis- tember 11, Sherry Sargent learned that according to friends, the kind of indi- covered in a shallow grave. Mr. Maricle two aircraft had struck the World vidual that no one could say anything was reported missing after going out Trade Center. She walked down the bad about. The Commonwealth of Vir- for drinks with three strangers. Police hall to an office with a TV in order to ginia and the entire Nation shall allege that those three strangers are learn what was going on. At 9:40 AM, mourn his loss. responsible for Mr. Maricle’s death, and American Airlines Flight 77 crashed Mr. HAGEL. Mr. President, I rise to committed the crime in part because of into the portion of the Pentagon where express my sympathy over the loss of his sexual orientation. Sherry Sargent’s office was located. Daniel Bader, a fellow Nebraskan and I believe that Government’s first She lost many friends and coworkers staff sergeant in the United States duty is to defend its citizens, to defend that day. Had she been in her office she Army. Staff Sergeant Bader was killed them against the harms that come out would almost certainly have been on November 2 near Fallujah, Iraq of hate. The Local Law Enforcement among those who were killed or in- when the Chinook helicopter he was Enhancement Act is a symbol that can jured. As soon as he learned of the at- aboard was shot down. Staff Sergeant become substance. I believe that by tack on the Pentagon, Pat rushed to Bader was one of 16 soldiers killed and passing this legislation and changing the scene to locate Sherry. He caught 20 wounded en route to the United current law, we can change hearts and the last shuttle bus from Capitol Hill States for 2 weeks of leave. He was 28 minds as well. to the Pentagon before the area was years old. f sealed off. After a long search on the Staff Sergeant Bader served in the crowded Pentagon grounds, Pat was 3rd Armored Cavalry, Tiger Squadron, BUDGET SCOREKEEPING REPORT able to find Sherry and learn that she based on Fort Carson, CO. He was de- Mr. NICKLES. Mr. President, I here- had, fortunately, survived the attack. ployed to Iraq on April 4, 2003. by submit to the Senate the budget In an e-mail to my office a few A York, NE native, Staff Sergeant scorekeeping report prepared by the months ago, Pat noted that ‘‘High-tech Bader was a dedicated soldier who was Congressional Budget Office under Sec- weapons played a part in the success of committed to his family and country. tion 308(b) and in aid of Section 311 of this war; but, it was won with human He joined the military shortly after the Congressional Budget Act of 1974,

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.106 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13901 as amended. This report meets the re- the President’s signature the following (P.L. 108–100); and an act to amend Title 44, quirements for Senate scorekeeping of acts: Partial Birth Abortion Act of 2003 United States Code (P.L. 108–102). Section 5 of S. Con. Res. 32, the First (S. 3); and, an act to amend Title XXI, In addition the Congress has cleared for Concurrent Resolution on the Budget of the Social Security Act (H.R. 3288). the President’s signature the following acts: for 1986. I ask unanimous consent that a Partial-Birth Abortion Act of 2003 (S.3); and This report shows the effects of con- transmittal letter from CBO and report an act to amend Title XXI, of the Social Se- curity Act, (H.R. 3288). gressional action on the 2004 budget be printed in the RECORD. The effects of these actions are detailed on through October 31, 2003. The estimates There being no objection, the mate- rial was ordered to be printed in the Table 2. of budget authority, outlays, and reve- Sincerely, ECORD nues are consistent with the technical R , as follows: DOUGLAS HOLTZ-EAKIN, and economic assumptions of the 2004 U.S. CONGRESS, Director. CONGRESSIONAL BUDGET OFFICE, Concurrent Resolution on the Budget, Attachments. H. Con. Res. 95, as adjusted. Washington, DC, November 3, 2003. The estimates show that current Hon. DON NICKLES, TABLE 1.—SENATE CURRENT-LEVEL REPORT FOR SPEND- Chairman, Committee on the Budget, level spending is below the budget reso- U.S. Senate, Washington, DC. ING AND REVENUES FOR FISCAL YEAR 2004, AS OF lution by $14.6 billion in budget author- DEAR MR. CHAIRMAN: The attached tables OCTOBER 31, 2003 ity and by $14 billion in outlays in 2004. show the effects of Congressional action on [In billions of dollars] Current level for revenues is $108 mil- the 2004 budget and are current through Oc- lion above the budget resolution in tober 31, 2003. This report is submitted under Current section 308(b) and in aid of section 311 of the Budget Current level over/ 2004. resolution level 1 under (¥) Congressional Budget Act, as amended. resolution Since my last report, dated October The estimates of budget authority, out- 14, 2003, the Congress has cleared and lays, and revenues are consistent with the On-Budget: the President has signed the following Budget Authority ...... 1,873.5 1,858.9 ¥14.6 technical and economic assumptions of H. Outlays ...... 1,897.0 1,883.0 ¥14.0 acts that changed budget authority, Con. Res. 95, the Concurrent Resolution on Revenues ...... 1,331.0 1,331.1 0.1 outlays, or revenues for 2004: An act the Budget for Fiscal Year 2004, as adjusted. Off-Budget: Since my last report dated October 10, 2003, Social Security Outlays ...... 380.4 380.4 0 making further continuing appropria- Social Security Revenues ...... 557.8 557.8 0 tions for fiscal year 2004 (H.J. Res. 75); the Congress has cleared and the President has signed the following acts which changed 1 Current level is the estimated effect on revenue and spending of all leg- Check Clearing Act for the 21st Cen- budget authority, outlays, and revenues for islation that the Congress has enacted or sent to the President for his ap- tury (P.L. 108–100); and, an act to proval. In addition, full-year funding estimates under current law are in- 2004: An act making further continuing ap- cluded for entitlement and mandatory programs requiring annual appropria- amend Title 44, U.S.C. (P.L. 108–102). In propriations for Fiscal Year 2004 (H.J. Res. tions even if the appropriations have not been made. addition the Congress has cleared for 75); Check Clearing Act for the 21st Century Source: Congressional Budget Office. TABLE 2.—SUPPORTING DETAIL FOR THE SENATE CURRENT-LEVEL REPORT FOR ON-BUDGET SPENDING AND REVENUES FOR FISCAL YEAR 2004, AS OF OCTOBER 31, 2003 [In millions of dollars]

Budget authority Outlays Revenues

Enacted in previous sessions: Revenues ...... n.a n.a 1,466,370 Permanents and other spending legislation 1 ...... 1,081,649 1,054,550 n.a. Appropriation legislation ...... 0 345,754 n.a. Offsetting receipts ...... ¥366,436 ¥366,436 n.a.

Total, enacted in previous sessions ...... 715,213 1,033,868 1,466,370 Enacted this session: Authorizing Legislation: American 5-Cent Coin Design Continuity Act of 2003 (P.L. 108–15) ...... ¥1 ¥10 Postal Civil Service Retirement System Funding Reform Act of 2003 (P.L. 108–18) ...... 2,746 2,746 0 Clean Diamond Trade Act (P.L. 108–19) ...... 0 0 (*) Prosecutorial Remedies and Other Tools to End Exploitation of Children Today Act (P.L. 108–21) ...... 0 0 (*) Unemployment Compensation Amendments of 2003 (P.L. 108–26) ...... 4,730 4,730 145 Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108–27) ...... 13,313 13,312 ¥135,370 Veterans’ Memorial Preservation and Recognition Act of 2003 (P.L. 108–29) ...... 0 0 (*) Welfare Reform Extension Act of 2033 (P.L. 108–40) ...... 99 108 0 Burmese Freedom and Democracy Act (P.L. 108–61) ...... 0 0 ¥10 Smithsonian Facilities Authorization Act (P.L. 108–72) ...... 1 1 0 Family Farmer Bankruptcy Relief Act of 2003 (P.L. 108–73) ...... 0 0 (*) An act to amend Title XXI of the Social Security Act (P.L. 108–74) ...... 1,325 100 0 Chile Free Trade Agreement Implementation Act (P.L. 108–77) ...... 00¥5 Singapore Free Trade Agreement Implementation Act (P.L. 108–78) ...... 0 0 ¥55 First Continuing Resolution, 2004 (P.L. 108–84) ...... ¥2,222 1 ¥2 Surface Transportation Extension Act of 2003 (P.L. 108–88) ...... 6,405 0 0 An act to extend the Temporary Assistance for Needy Families block grant program (P.L. 108–89) ...... 15 ¥36 33 An act to amend chapter 84 of title 5 of the United States Code (P.L. 108–92) ...... 1 1 0 An act to amend the Immigration and Nationality Act (P.L. 108–99) ...... 0 0 2 Second Continuing Resolution, 2004 (H.J. Res. 75) ...... 1 0 (*) The Check Clearing Act for the 21st Century (P.L. 108–100) ...... 0 0 (*) An act to amend Title 44 of the United States Code (P.L. 108–102) ...... 0 0 (*)

Total, authorizing legislation ...... 26,412 20,962 ¥135,262 Appropriations Acts: Emergency Wartime Supplemental Appropriations Act, 2003 (P.L. 108–11) ...... 215 27,3490 Legislative Branch Appropriations (P.L. 108–83) ...... 3,539 3,066 0 Defense Appropriations (P.L. 108–87) ...... 368,694 251,486 0 Homeland Security Appropriations (P.L. 108–90) ...... 30,216 18,192 0

Total, appropriation acts ...... 402,664 300,093 0 Passed Pending Signature: Partial-Birth Abortion Act of 2003 (S.3) ...... 0 0 (*) An act to amend Title XXI of the Social Security Act (H.R. 3288) ...... 090

Total, passed pending signature ...... 0 9 0 Continuing Resolution Authority: Second Continuing Resolution, 2004 (H.J. Res. 75) ...... 356,166 189,919 0 Entitlements and mandatories: Difference between enacted levels and budget resolution estimates for appropriated entitlements and other mandatory programs ...... 358,447 333,124 n.a. Total Current Level 12 ...... 1,858,902 1,882,975 1,331,108 Total Budget Resolution ...... 1,873,459 1,896,973 1,331,000 Current Level Over Budget Resolution ...... n.a. n.a. 108 Current Level Under Budget Resolution ...... 14,557 13,998 n.a. 1 Per section 502 of H. Con. Res. 95, the Concurrent Resolution on the Budget for Fiscal Year 2004, provisions designated as an emergency are exempt from enforcement of the budget resolution. As a result, the current level excludes prior-year outlays of $262 million from funds provided in the Emergency Supplemental Appropriations for Disaster Relief Act of 2003 (P.L. 108–69), and $456 million from funds provided in the Legislative Branch Appropriations Act, 2004 (P.L. 108–83). 2 Excludes administrative expenses of the Social Security Administration, which are off-budget. Source: Congressional Budget Office. Notes: n.a.=not applicable; P.L.=Public Law; *=less than $500,000.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.104 S04PT1 S13902 CONGRESSIONAL RECORD — SENATE November 4, 2003 JUDICIAL NOMINATIONS too many appellate judgeships in what President Reagan achieved during his Mr. LEAHY. Mr. President, available appear to be an effort to pack the court entire first term, but he has also for brief debate and confirmation votes with ideological nominees and tilt achieved more confirmations this year by the United States Senate are sev- these courts. than in any of the six years that Re- eral of the President’s judicial nomi- There is no doubt that Mr. Titus is a publicans controlled the Senate when nees. Roger W. Titus of Maryland was Republican, yet he has the support of President Clinton was in office. Not unanimously reported by the Judiciary both of his home-state Senators, both once was President Clinton allowed 67 Committee to the Senate more than a Democrats, and has earned the unani- confirmations in a year when Repub- month ago. This nomination was greet- mous support of the Members of the licans controlled the pace of confirma- ed with universal acclaim. He is an Judiciary Committee. I would have tions. Despite the high numbers of va- outstanding Maryland lawyer and lead- supported his nomination to the cancies and availability of highly Fourth Circuit vacancy. I continue to er of the bar, an active litigator in qualified nominees, Republicans never support his nomination to the District Maryland for over 37 years, a partner cooperated with President Clinton to Court. The month-long delay the Re- at the Venable law firm, a former the extent Senate Democrats have. publican leadership has already caused President of the Maryland Bar Associa- President Bush has appointed more in his consideration for the District tion. He has also served as an Adjunct lifetime circuit and district court Court position reminds me of their Professor at the Georgetown Univer- judges in 10 months this year than delay in scheduling a vote on the Fifth sity Law Center. Mr. Titus earned a President Clinton was allowed in 1995, Circuit nomination of Judge Edward unanimous ‘‘Well-Qualified’’ rating 1996, 1997, 1998, 1999, or 2000. Prado earlier this year. Then they did from the ABA, and an AV rating from Last year alone, the Democratic ma- not want to allow Democratic Senators jority in the Senate proceeded to con- Martindale-Hubbell. to vote for a conservative Hispanic In 2001, Mr. Titus was honored with firm 72 of President Bush’s judicial nominee when they were trying des- The Baltimore Daily Record’s first nominees and was savagely attacked perately to mischaracterize Senate Leadership in the Law Award, which nonetheless. With a little cooperation Democrats as anti-Hispanic. Now it recognizes members of the legal com- from Senate Republicans we might seems we are making too much munity for their devotion to the bet- match that record before adjournment progress on too many judicial nomi- terment of the profession and their this year, as well. nees to suit their partisan interests in communities. In 1999, Mr. Titus re- In fact, President Bush has now al- mischaracterizing Senate Democrats ceived the Century of Service Award ready appointed more judges in his as blockading Bush nominee’s to the from the Montgomery County Bar As- third year in office than in the third courts. year of the last five presidential terms, sociation for his outstanding contribu- The truth is that in less than three tions to the legal profession and com- including the most recent term when years’ time, President George W. Bush Republicans controlled the Senate and munity during the twentieth century. exceeded the number of judicial nomi- According to an article in The Balti- President Clinton was leading the nees confirmed for President Reagan in more Sun, Mr. Titus was apparently in country to historic economic achieve- all four years of his first term in office. the running to be nominated for a seat ments. That year, in 1999, Republicans Senate Democrats have cooperated so on the U.S. Court of Appeals for the allowed only 34 judicial nominees of that this President already surpassed Fourth Circuit. In light of his stellar President Clinton’s to be confirmed all the record of the President Republicans qualifications, deep roots in his legal year, including only 7 circuit court acknowledge to be the ‘‘all time community and ability to garner the nominees. Those are close to the aver- champ’’ at appointing Federal judges. bipartisan support of his elected offi- age totals for the six years 1995–2000 Since July, 2001, despite the fact that cials he would have been a consensus when a Republican Senate majority the Senate majority has shifted twice, choice for this important appellate was determining how quickly to con- a total of 167 judicial nominations have seat. This White House was not inter- already been confirmed, including 29 sider the judicial nominees of a Demo- ested in appointing a consensus nomi- circuit court appointments. One hun- cratic President. By contrast, the Sen- nee to the Fourth Circuit. It wanted to dred judges were confirmed in the 17 ate this year has already confirmed 67 pick a fight. So it did. It nominated months of the Democratic Senate ma- judicial nominees, including 12 circuit someone from Virginia to the Mary- jority and the Senate has proceeded to court nominees, almost double the to- land vacancy on the Fourth Circuit and confirm another 67 judges during the tals for 1999. We have worked hard and bent over precipitated a controversy. There are comparative time of the Republican backwards cooperating with a very un- reportedly 30,000 practicing attorneys majority for a total of 167 judges. in the State of Maryland. Instead of One would think that the White cooperative White House and Senate nominating a well qualified Mary- House and the Republicans in the Sen- Republican majority. In spite of their lander like Mr. Titus to Judge ate would be heralding this landmark. false charges and partisanship, Senate Murnahan’s vacant seat on the Fourth One would think they would be con- Democrats have continued working to Circuit, the President selected a con- gratulating themselves for putting make progress in filling judicial vacan- troversial nominee with very little liti- more lifetime appointed judges on the cies. According to the website of the gation experience from another juris- federal bench than President Reagan Republican Chairman of the Judiciary diction. That nominee, Claude Allen, did in his entire first term and doing it Committee we have reduced the num- received a partial ‘‘not qualified’’ rat- in three-quarters the time. One would ber of judicial vacancies below 40. Had ing by the American Bar Association think that they would be building upon the Senate Democratic majority not and his selection has engendered sig- that success by scheduling prompt acted last year to authorize between 15 nificant opposition from concerned votes on noncontroversial nominees and 20 additional judgeships, the va- citizens groups and understandably like Roger Titus. But Republicans have cancies total might well be in the low from the Maryland Senators. a different partisan message and this 20’s. After inheriting 110 vacancies It is regrettable that this President truth is not consistent with their ef- when the Senate Judiciary Committee has again chosen the course of con- forts to mislead the American people reorganized under Democratic control frontation and conflict for his appel- into thinking that Democrats have ob- in 2001, I helped move through and con- late court nominations. Mr. Titus, with structed judicial nominations. That is firm 100 of the President’s judicial his many years of litigation experience why the President chose to criticize nominees in just 17 months. Through and his well-deserved reputation as a the Senate from the Rose Garden again hard work we have proceeded to reduce leader among lawyers in Maryland is last week and in campaign appearances vacancies to the lowest number in 13 the type of person who should have around the country last weekend and years and arguably the lowest level been chosen for Judge Murnahan’s va- earlier this week rather than work since President Reagan. There are cant seat on the Fourth Circuit. His with us and recognize what we can ac- more Federal judges on the bench nomination stands in sharp contrast to complish together. today than at any time in American the inexperienced and divisive can- Not only has this President been ac- history. These facts stand in stark con- didates chosen by the White House for corded more Senate confirmations than trast to the false partisan rhetoric that

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.108 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13903 demonize the Senate for having istration seems intent on saddling our the awards given to Ms. Margaret blocked all of this President’s judicial children and grandchildren with tril- Tyler and Mrs. Trulesta Pauling. nominations. The reality is that the lions in deficits and debt. For the first Ms. Tyler and Mrs. Pauling, both as- Senate is proceeding at a record pace time in a dozen years, charitable giving signed to the Office of the Chief, Legis- and achieving record numbers. in this country is down. lative Liaison, Headquarters, Depart- Also on the Senate calendar awaiting While negative indicators are spik- ment of the Army, were recognized in a action is the nomination of Gary ing, the Republican leadership of the ceremony held on October 23, 2003. Sharpe of New York. That nomination Congress would rather demonize Demo- Ms. Tyler and Mrs. Pauling, Congres- was reported unanimously by the Judi- crats, engage in name calling and sional Liaison Representatives for the ciary Committee two weeks ago. He re- charge obstruction where the facts are U.S. Army’s Senate Liaison Division mains on the Senate Executive Cal- historic levels of cooperation. The Sen- on Capitol Hill, were each awarded the endar because the Senate Republican ate wheel-spinning exercises involving Army Staff Identification Badge and leadership has no interest in sched- the most controversial judicial nomi- the Commander’s Award for Civilian uling this noncontroversial judicial nees and the Republican leadership’s Service for exceptionally meritorious nominee for a vote. insistence on unsuccessful cloture achievement. Both women were recog- Also on the Senate Executive Cal- votes are unhelpful to the Senate or nized for their work in support of Oper- endar awaiting scheduling of debate the courts. Despite the heated rhetoric ations Enduring Freedom and Iraqi and a final vote are the nominations of on the other side of the aisle, we have Freedom. Judge Dora Irizarry of New York and J. made progress on judicial vacancies According to the award citations, Ms. Leon Holmes of Arkansas. Mr. Holmes when and where the Administration Tyler and Mrs. Pauling managed their nomination has been awaiting debate has been willing to work with the Sen- increased caseload with calm, grace, since May, more than six months. Let ate. professionalism, and efficiency. Their us be clear. There is no Democratic Only a handful of the President’s commitment to excellence and devo- hold preventing debate and votes on ei- most extreme and controversial nomi- tion to duty has had a significant and ther of these nominees. They merit de- nations have been denied consent by long-lasting, positive impact on sol- bate. There was debate in the Judiciary the Senate. Up to today only four have diers and their families. Committee. There should be debate on failed. That record is in stark contrast The Commander’s Award for Civilian the Senate floor. And then the Senate to the more than 60 judicial nominees Service is the fourth highest Depart- will vote. from President Clinton who were ment of the Army award for civilians. Indeed, following the debate on Judge blocked by a Republican-led Senate. All Army civilian employees are eligi- Irizarry more than half of the Repub- One-hundred sixty-seven to four, but as ble for consideration to receive this lican Members indicated that they op- I have said, that total could be 170 to award for service, achievement and posed the President’s nomination. I re- four if the Republican leadership would heroism. It is equivalent to the Army spect and understand their concern. I work with us and schedule voted and Commendation Medal awarded to sol- have had similar concerns about a debate on the four nominees I have diers. number of this President’s nominees. identified. The Army Staff Identification Badge More than two dozen have received rat- But despite this record of progress, was first proposed by General Douglas ings or partial ratings of ‘‘not quali- made possible only through good faith MacArthur while he was Chief of Staff fied’’ by the ABA. Some, like Timothy effort by Democrats on behalf of a Re- of the U.S. Army, on December 28, 1931. Hardiman of Pennsylvania and Dora publican President’s nominees, and in The award of the lapel button for civil- Irizarry of New York, do not have the the wake of the years of unfairness ian personnel in the grade of GS–11 and support of their local bar association shown the nominees of a Democratic higher was authorized in 1982 and is a either. President, the Republican leadership symbol of exemplary service. Unlike the way Republicans treated has decided to use partisan plays out of Once again, I extend my sincere con- the nomination of Justice Ronnie its playbook as this year winds down. gratulations to these two outstanding White of Missouri when he was am- Instead of putting partisanship aside civil servants. bushed on the Senate floor and de- and bridging our differences for the feated in a party line vote. I do not ex- sake of accomplishing what we can for f pect that to happen with Judge the American people, we are asked to Irizarry. Those with concerns have participate in a transparently political NOMINATION OF JOSEPH TIMOTHY been forthright in coming forward. I do exercise initiated by a President. With KELLIHER not expect Democratic Senators to do respect to his extreme judicial nomina- what Republicans did in 1999 to Ronnie tions, President George W. Bush is the Mr. GRASSLEY. Mr. President, I rise White when they switch their votes most divisive President in modern today to state that I object to pro- and voted lockstep in a partisan effort times. Through his extreme judicial ceeding to the consideration of an ex- to defeat his nomination on the floor. nominations, he is dividing the Amer- ecutive nominee to the Federal Energy With these four nominees for addi- ican people and he is dividing the Sen- Regulatory Commission. The nominee tional lifetime appointments to the ate. Far from a uniter, on judicial is Joseph Timothy Kelliher, who is list- federal bench, the Senate has the nominations he has chosen to be a di- ed as a ‘‘senior policy advisor’’ to the chance to reach a total of more than vider. Secretary of the Energy Department. 170 judicial confirmations for the f I have an outstanding document re- President in less than three years. quest at the Energy Department, and I Maybe that is why the Republican IN RECOGNITION OF TWO U.S. must be certain that it will be an- leadership has chosen not to go for- ARMY CIVILIANS RECEIVING swered in a timely and complete man- ward. Could it be that they do not want AWARDS FOR OUTSTANDING ner. I am also concerned that some De- the American people to know that we SERVICE ON CAPITOL HILL partment of Energy officials are, have cooperating in filing 170 judicial Mr. INOUYE. Mr. President, I would among other things, misconstruing an vacancies in less than three years? like to bring my colleagues’ attention amendment that I offered to H.R. 2754. That would not be consistent with the to two civil servants whose exemplary My amendment is section 316 of the En- talking points the Administration is work in the U.S. Senate Army Congres- ergy and Water Appropriations Act, peddling to friendly media outlets all sional Liaison office has been formally H.R. 2754, and it transfers claims proc- over town and around the country. recognized by the U.S. Army at a re- essing responsibilities for ‘‘Subtitle D’’ Over the last several days more than cent awards ceremony. For many of the Energy Employees Occupational 200 people have been killed or wounded years, my constituents have benefitted Illness Compensation Program Act of in Baghdad. The number of unemployed from their outstanding, timely, and 2000, EEOICPA, from the Department Americans has been at or near levels compassionate service. It is my honor of Energy to the Department of Labor. not seen in years, poverty is on the rise to also recognize their service, and to I am trying to get some answers and in our country, and the current Admin- bring to your attention the nature of straighten that out as well.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.109 S04PT1 S13904 CONGRESSIONAL RECORD — SENATE November 4, 2003 PROFESSOR GEOFFREY STONE’S of President John Adams initiated thus a tors and compliant Federal judges soon SPEECH, ‘‘CIVIL LIBERTIES IN dramatic series of defense measures that transformed it into a blanket prohibition of WARTIME’’ brought the United States into a state of seditious utterance. The administration’s in- undeclared war with France. tent in this regard was made evident in No- Mr. DURBIN. Mr. President, I ask The Republicans fiercely opposed these vember 1917 when Attorney General Charles unanimous consent to print in the measures, leading the Federalists to accuse Gregory, referring to war dissenters, de- RECORD a speech by University of Chi- them of disloyalty. President Adams, for ex- clared: ‘‘May God have mercy on them, for cago Law Professor Geoffrey Stone on ample, declared that the Republicans ‘‘would they need expect none from an outraged peo- ‘‘Civil Liberties in Wartime,’’ delivered sink the glory of our country and prostrate ple and an avenging government.’’ her liberties at the feet of France.’’ Against In fact, the government worked hard to at the annual luncheon of the Chicago this backdrop, the Federalists enacted the create an ‘‘outraged people.’’ Because there Council of Lawyers on July 23. Pro- Alien and Sedition Acts of 1798. The Alien had been no direct attack on the United fessor Stone thoughtfully reviews Act empowered the President to deport any States, and no direct threat to our national America’s history of restricting civil non-citizen he judged to be dangerous to the security, the Wilson administration had to liberties during times of war and our peace and safety of the United States. The generate a sense of urgency and anger in subsequent regret for those decisions. Act accorded the non-citizen no right to a order to exhort Americans to enlist, to con- His speech invites reflection by the hearing, no right to present evidence and no tribute money and to make the many sac- rifices that war demands. To this end, Wilson Members of this Senate as we debate right to judicial review. The Sedition Act prohibited criticism of established the Committee for Public Infor- important issues of national security the government, the Congress or the Presi- mation, which produced a flood of inflam- and civil rights, and counsels us to dent, with the intent to bring them into con- matory and often misleading pamphlets, ‘‘value not only [our] own liberties but tempt or disrepute. The Act was vigorously news releases, speeches, editorials and mo- the liberties of others . . . and to have enforced, but only against supporters of the tion pictures, all designed to instill a hatred the wisdom to know excess when it ex- Republican Party. Prosecutions were of all things German and of all persons ists and the courage to preserve liberty brought against every Republican newspaper whose ‘‘loyalty’’ might be open to doubt. During World War I, the government pros- when it is imperiled.’’ and against the most vocal critics of the Adams administration. ecuted more than 2,000 dissenters for oppos- There being no objection, the mate- The Sedition Act expired on the last day of ing the war or the draft, and in an atmos- rial was ordered to be printed in the Adams’s term of office. The new President, phere of fear, hysteria and clamor, most RECORD, as follows: Thomas Jefferson, promptly pardoned all judges were quick to mete out severe punish- CIVIL LIBERTIES IN WARTIME those who had been convicted under the Act, ment—often 10 to 20 years in prison—to (By Geoffrey R. Stone) and forty years later Congress repaid all the those deemed disloyal. The result was the fines. The Sedition Act was a critical factor suppression all genuine debate about the We live in perilous times. This is true in the demise of the Federalist Party, and merits, the morality and the progress of the along several dimensions, but I focus this the Supreme Court has never missed an op- war. afternoon on only one of them: Civil Lib- portunity in the years since to remind us But even this was not enough. A year later, erties in Wartime. Or, more precisely, how that the Sedition Act of 1798 has been judged Congress enacted the Sedition Act of 1918, are we, as a nation, responding to the threat unconstitutional in the ‘‘court of history.’’ which expressly prohibited any disloyal, of terrorism? During the Civil War, the nation faced its scurrilous, or abusive language about the Since September 11th, our government, in most serious challenge. There were sharply form of government, the Constitution, the our name, has secretly arrested and detained divided loyalties, fluid military and political flag, the uniform, or the military forces of more than a thousand non-citizens; it has de- boundaries, easy opportunities for espionage the United States. Even the Armistice didn’t ported hundreds of non-citizens in secret pro- and sabotage, and more than 600,000 combat bring this era to a close, for the Russian ceedings; it has eviscerated long-standing fatalities. In such circumstances, and in the Revolution triggered a period of intense pub- Justice Department restrictions on FBI sur- face of widespread and often bitter opposi- lic paranoia in the United States, known to veillance of political and religious activities; tion to the war, the draft and the Emanci- us today as the ‘‘Red Scare’’ of 1919–1920. At- it has vastly expanded the power of federal pation Proclamation, President Lincoln had torney General A. Mitchell Palmer un- officials to invade the privacy of our librar- to balance the conflicting interests of mili- leashed a horde of undercover agents to infil- ies and our e-mails; it has incarcerated an tary necessity and individual liberty. trate so-called radical organizations, and in American citizen, arrested on American soil, During the course of the Civil War, Lincoln a period of only two months the government for almost a year—incommunicado, with no suspended the writ of habeas corpus on eight arrested more than 5,000 American citizens access to a lawyer, and with no effective ju- separate occasions. The most extreme of and summarily deported more than a thou- dicial review; it has sharply restricted the these suspensions, which applied throughout sand aliens on ‘‘suspicion’’ of radicalism. protections of the Freedom of Information the entire nation, declared that ‘‘all persons The story of the Supreme Court in this era Act; it has proposed a TIPS program to en- . . . guilty of any disloyal practice . . . shall is too familiar, and too painful, to bear re- courage American citizens to spy on one an- be subject to court martial.’’ Under this au- peating in detail. In a series of decisions in other; it has laid the groundwork for a De- thority, military officers arrested and im- 1919 and 1920—most notably Schenck, Debs, partment of Defense Total Information prisoned 38,000 civilians, with no judicial pro- and Abrams—the Court consistently upheld Awareness program to enable the govern- ceedings and no judicial review. the convictions of individuals who had agi- ment to engage in massive and unprece- In 1866, a year after the war ended, the Su- tated against the war and the draft—individ- dented data collection on American citizens; preme Court ruled in Ex parte Milligan that uals as obscure as Mollie Steimer, a twenty- it has detained a thousand prisoners of war Lincoln had exceeded his constitutional au- year-old Russian-Jewish e´migre´ who had in Guantanamo Bay in cynical disregard of thority, holding that the President could not thrown anti-war leaftlets in Yiddish from a the laws of war; and it has established mili- constitutionally suspend the writ of habeas rooftop on the lower East Side of New York, tary tribunals without due process protec- corpus, even in time of war, if the ordinary and as prominent as Eugene Debs, who had tions. We live in perilous times. civil courts were open and functioning. received almost a million votes in 1912 as the Of course, we have lived in perilous times The story of civil liberties during World Socialist Party candidate for President. before. What I want to discuss this afternoon War I is, in many ways, even more dis- As Harry Kalven has observed, these deci- is how we have responded to such peril in the turbing. When the United States entered the sions left no doubt of the Court’s position: past, what we can learn from those experi- war in April 1917, there was strong opposi- ‘‘While the nation is at war, serious, abrasive ences, and what our responsibilities are as tion to both the war and the draft. Many criticism . . . is beyond constitutional pro- lawyers. citizens vehemently argued that our goal tection.’’ These decisions, he added, ‘‘are dis- I have a simple thesis: In time of war, we was not to ‘‘make the world safe for democ- mal evidence of the degree to which the respond too harshly in our restriction of racy,’’ but to protect the investments of the mood of society can penetrate judicial cham- civil liberties, and then, later, regret our be- wealthy, and that this cause was not worth bers.’’ The Court’s performance was ‘‘simply havior. To test this thesis, I will review, very the life of one American soldier, let alone wretched.’’ briefly, our experiences in 1798, the Civil ten or hundreds of thousands. In December 1920, after all the dust had War, World War I, World War II, the Cold President Wilson had little patience for settled, Congress quietly repealed the Sedi- War and the Viet Nam War. I will then offer such dissent. He warned that disloyalty tion Act of 1918. Between 1919 and 1923, the some observations. ‘‘must be crushed out’’ of existence and that government released from prison every indi- To begin, at the beginning. In 1798, the disloyalty ‘‘was . . . not a subject on which vidual who had been convicted under the Es- United States found itself embroiled in a Eu- there was room for . . . debate.’’ Disloyal in- pionage and Sedition Acts. A decade later, ropean war that then raged between France dividuals, he explained, ‘‘had sacrificed their President Roosevelt granted amnesty to all and England. A bitter political and philo- right to civil liberties.’’ of these individuals, restoring their full po- sophical debate divided the Federalists, who Shortly after the United States entered litical and civil rights. Over the next half- favored the English, and the Republicans, the war, Congress enacted the Espionage Act century, the Supreme Court overruled every who favored the French. The Federalists of 1917. Although the Act was not directed at one of its World War I decisions, holding in were then in power, and the administration dissent generally, aggressive federal prosecu- effect that every one of the individuals who

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.111 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13905 had been imprisoned or deported in this era Truman explained that the Act was the prod- that most of the dissenters in this era were for his or her dissent had been punished for uct of ‘‘public hysteria’’ and would lead to the sons and daughters of the middle class, speech that should have been protected by ‘‘witch hunts.’’ Congress passed the Act over and thus could not so easily be targeted as the First Amendment. Truman’s veto. the ‘‘other.’’ But the courts, and especially On December 7, 1941, Japan attacked Pearl In 1954, Congress enacted the Communist the Supreme Court, played a key role in this Harbor. Two months later, on February 19, Control Act, which stripped the Communist period. In 1969, the Court, in Brandenburg, 1942, President Roosevelt signed Executive Party of ‘‘all rights, privileges, and immuni- overruled Dennis and held that even advo- Order 9066, which authorized the Army to ties.’’ Only one Senator, Estes Kefauver, cacy of unlawful conduct cannot be punished ‘‘designate military areas’’ from which ‘‘any dared to vote against it. Irving Howe la- unless it is likely to incite ‘‘imminent law- persons may be excluded.’’ Although the mented ‘‘this Congressional stampede to . . . less action.’’ The Court had come a long way words ‘‘Japanese’’ or ‘‘Japanese American’’ trample . . . liberty in the name of destroy- in the fifty years since World War I. never appeared in the Order, it was under- ing its enemy.’’ But the Court did not rest there. In other stood to apply only to persons of Japanese Hysteria over the Red Menace swept the decisions it held that the Georgia House of ancestry. nation and produced a wide-range of federal, Representatives could not deny Julian Bond Over the next eight months, 120,000 individ- state and local restrictions on free expres- his seat because of his express opposition to uals of Japanese descent were forced to leave sion and free association, including exten- the draft; that a public university could not their homes in California, Washington, Or- sive loyalty programs for government em- deny recognition to the SDS because it advo- egon and Arizona. Two-thirds of these indi- ployees; emergency detention plans for al- cated a philosophy of violence; that the gov- viduals were American citizens, representing leged ‘‘subversives’’; abusive legislative in- ernment could not conduct national security almost 90% of all Japanese-Americans. No vestigations designed to punish by exposure; wiretaps without prior judicial approval; charges were brought against these individ- public and private blacklists of those alleged and, of course, that the government could uals; there were no hearings; they did not ‘‘pinkos’’ who had been ‘‘exposed’’; and not constitutionally enjoin the publication know where they were going, how long they criminal prosecution of the leaders and of the Pentagon Papers, even though the De- would be detained, what conditions they members of the Communist Party of the fense Department claimed that publication would face, or what fate would await them. United States. would endanger national security. Many families lost everything. The Supreme Court’s response was mixed. This is not to say that the government did On the orders of military police, these indi- The key decision, however, was Dennis v. not find other ways to impede dissent. The viduals were transported to one of ten in- United States, which involved the direct most significant of these was the FBI’s ex- ternment camps, which were located in iso- prosecution under the Smith Act of the lead- tensive effort to ‘‘expose, disrupt and other- lated areas in wind-swept deserts or vast ers of the American Communist Party. In a wise neutralize’’ allegedly ‘‘subversive’’ or- swamp lands. Men, women and children were six-to-two decision, the Court held in 1951 ganizations, ranging from civil rights groups placed in overcrowded rooms with no fur- that the defendants could constitutionally to the various factions of the anti-war move- niture other than cots. They found them- be punished for their speech under the clear ment. In this COINTELPRO operation, the selves surrounded by barbed wire and mili- and present danger test even though the FBI compiled political dossiers on more than tary police, and there they remained for Court readily conceded that the danger was half-a-million Americans. three years. neither clear nor present. It was a memo- When these activities came to light they In Korematsu v. United States, decided in rable stroke of judicial legerdemain. were sharply condemned by congressional 1944, the Supreme Court, in a six-to- three Over the next several years, the Court committees, and Attorney General Edward decision, upheld the President’s action. The upheld far-reaching legislative investiga- Levi declared such practices incompatible Court offered the following explanation: tions of ‘‘subversive’’ organizations and indi- with our national values. In 1976, he insti- We are not unmindful of the hardships im- viduals and the exclusion of members of the tuted a series of guidelines designed to re- posed upon a large group of American citi- Communist Party from the bar, the ballot strict the political surveillance activities of zens. But hardships are part of war, and war and public employment. In so doing, the the Federal Bureau of Investigation. is an aggregation of hardships. Korematsu Court clearly put its stamp of approval on an What can we learn from this history? I was not excluded from the West Coast be- array of actions we look back on today as would like to offer at least a dozen observa- cause of hostility to his race, but because models of McCarthyism. tions. But time limits me to only six. the military authorities decided that the ur- In the Vietnam War, as in the Civil War First, we have a long and unfortunate his- gency of the situation demanded that all and World War I, there was substantial oppo- tory of overreacting to the perceived dangers citizens of Japanese ancestry be segregated sition both to the war and the draft. Lest we of wartime. Time after time, we have al- from the area. We cannot—by availing our- forget the stresses of those years, let me lowed our fears to get the better of us. selves of the calm perspective of hindsight— quote briefly from Theodore White’s eye- Second, it is often argued that given the say that these actions were unjustified. witness account of the 1968 Democratic Con- sacrifices we ask citizens (especially sol- In 1980, a congressional commission de- vention: diers) to make in time of war, it is small clared that the Japanese internment had The demonstrators chant ‘‘Peace Now’’ as price to ask others to surrender some of been based, not on considerations of military they approach the Chicago police picket- their peacetime freedoms to help the war ef- necessity, but on crass racial prejudice and lines. Then, like a fist, comes a hurtling col- fort. As the Supreme Court argued in political expediency. Eight years later, umn of police. It is a scene from the Russian Korematsu, ‘‘hardships are part of war, and President Reagan signed the Civil Liberties revolution. Gas grenades explode. Dem- war is an aggregation of hardships.’’ Restoration Act of 1988, which offered an of- onstrators kneel and begin singing America This is a seductive, but dangerous argu- ficial Presidential apology and reparations the Beautiful. Clubs come down. ‘‘The Whole ment. To fight a war successfully, it is nec- to each of the Japanese-American internees World is Watching.’’ essary for soldiers to risk their lives. But it who had suffered discrimination, loss of lib- Over the next several years, the nation en- is not necessarily ‘‘necessary’’ for others to erty, loss of property and personal humilia- tered a period of intense and often violent surrender their freedoms. That necessity tion because of the actions of the United struggle. After President Nixon announced must be convincingly demonstrated, not States government. the American ‘‘incursion’’ into Cambodia, merely presumed. And this is especially true As World War II drew to a close, the nation student strikes closed a hundred campuses. when, as is usually the case, the individuals moved almost seamlessly into the Cold War. Governor Ronald Reagan, asked about cam- whose rights are sacrificed are not those who As the glow of our wartime alliance with the pus militants, replied: ‘‘If it takes a blood- make the laws, but minorities, dissidents Soviet Union evaporated, President Truman bath, let’s get it over with.’’ On May 4, Na- and non-citizens. In those circumstances, came under increasing attack from a coali- tional Guardsmen at Kent State University ‘‘we’’ are making a decision to sacrifice tion of Southern Democrats and anti-New responded to taunts and rocks by firing their ‘‘their’’ rights—not a very prudent way to Deal Republicans who sought to exploit fears M–1 rifles into a crowd of students, killing balance the competing interests. of Communist aggression. As House Repub- four and wounding nine others. Protests and Third, the Supreme Court matters. It’s lican leader Joe Martin declared on the eve strikes exploded at more than twelve hun- often said that presidents do what they of the 1946 election, ‘‘the people will choose dred of the nation’s colleges and universities. please in wartime. Attorney General Biddle tomorrow ‘between communism and the Thirty ROTC buildings were burned or once observed that ‘‘the Constitution has not preservation of our American life.’’’ The bombed in the first week of May. The Na- greatly bothered any wartime President,’’ next day, the Democrats lost 56 seats in the tional Guard was mobilized in sixteen states. and Chief Justice Rehnquist recently argued House. As Henry Kissinger put it later, ‘‘The very that ‘‘there is no reason to think that future Thereafter, the issue of loyalty became a fabric of government was falling apart.’’ wartime presidents will act differently from shuttlecock of party politics. By 1948, Presi- Despite all this, there was no systematic Lincoln, Wilson, or Roosevelt.’’ dent Truman was boasting on the stump that effort during the Vietnam War to prosecute In fact, however, the record is more com- he had imposed on the federal civil service individuals for their opposition to the war. plex than this suggests. Although presidents the most extreme loyalty program in the en- As Todd Gitlin has rightly observed, in com- may think of themselves as bound more by tire ‘‘Free World,’’ and he had. But there parison to World War I, ‘‘the repression of political than by constitutional constraints were limits to Truman’s anti-communism. In the late sixties and early seventies was in time of war, the two are linked. Lincoln 1950, he vetoed the McCarren Act, which re- mild.’’ There are many reasons for this, in- did not propose a Sedition Act, Wilson re- quired the registration of all Communists. cluding, of course, the rather compelling fact jected calls to suspend the writ of habeas

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.096 S04PT1 S13906 CONGRESSIONAL RECORD — SENATE November 4, 2003 corpus and Bush has not advocated loyalty ers; and, perhaps most of all, lawyers with tional 3–A–Day education campaign. oaths. The fact is that even during wartime, the wisdom to know excess when it exists The 3–A–Day campaign is simple— presidents have not attempted to restrict and the courage to preserve liberty when it three servings of milk, cheese or yo- civil liberties in the face of settled Supreme is imperiled. gurt is a deliciously easy way to help Court precedent. Although presidents often Thank you. will push the envelope where the law is un- build stronger bones and better bodies. clear, they do not defy established constitu- f Most Americans are eating only half tional doctrine. ADDITIONAL STATEMENTS the daily recommended servings of Fourth, it is often said that the Supreme dairy each day, resulting in loss of Court will not decide a case against the gov- bone density and in related health ernment on an issue of military security dur- problems. Eating 3–A–Day of dairy is ing a period of national emergency. The deci- CABOT TEACHES THE VALUE OF sions most often cited in support of this DAIRY an easy and wholesome way for fami- lies to help meet their calcium needs. proposition are, of course, Korematsu and ∑ Mr. LEAHY. Mr. President, I am Along with Senator JEFFORDS and Dennis. In fact, however, there are many pleased to take this opportunity to counter-examples. Congressman SANDERS, I am pleased to During World War II, the Court upheld the commend one of Vermont’s most suc- join Cabot’s involvement with this im- constitutional rights of American fascists in cessful farmer-owned enterprises, the portant education campaign to high- a series of criminal prosecutions and world-renowned Cabot Creamery of light the importance of dairy products denaturalization proceedings, effectively Vermont. Since its founding by 94 to healthy diets.∑ putting a halt to government efforts to pun- farmers in 1919, Cabot’s farm families ish such individuals. During the Cold War, have preserved the heritage and proud f the Court rejected President Truman’s effort IN HONOR OF NATIONAL BIBLE to seize the steel industry and eventually agrarian traditions of the State of helped put an end to the era of McCarthyism. Vermont and our great nation. WEEK And during Vietnam, the Court repeatedly Cabot has an 80-year history of doing ∑ Mr. MILLER. Mr. President, I am rejected national security claims by the Ex- what they do best, making the world’s honored and humbled to serve as the ecutive. So, although it is true that the best cheddar cheeses. When Cabot Senate Co-chairman of the 2003 Na- Court tends to be wary not to ‘‘hinder’’ an Creamery earned the title of ‘‘Best tional Bible Week. During the week of ongoing war unnecessarily, it is also true Cheddar in the World’’ and ‘‘Best Fla- November 23 to 30, communities and that the Court has a significant record of ful- vored Cheddar’’ at the 22nd Biennial filling its constitutional responsibility to churches across this Nation will par- protect individual liberties—even in time of World Championship Cheese Contest, ticipate in this fine tradition by read- war. they did it as a team, steeped in family ing and reflecting on the teachings of Fifth, it is useful to note the cir- traditions and pride and with skill and the Bible. I am very proud to be a part cumstances that have tended to produce expertise that has been painstakingly of this celebration and I salute the Na- these abuses. They invariably arise out of built over the generations. That same tional Bible Association for its spon- the combination of a national perception of teamwork goes into every aspect of sorship of this annual event. peril and a concerted campaign by govern- their business. ment to promote a sense of national hysteria The very first National Bible Week by exaggeration, manipulation and distor- In 1992 Cabot joined forces with an- was organized in 1941, during World tion. The goal of the government in fostering other New England farmer-owned coop- War II. Organizers created National such public anxiety may be either to make it erative, Agri-Mark Inc, to open new Bible Week as a way to extend comfort easier for it to gain public acceptance of the markets for Vermont dairy farmers. and hope to our Nation during a trou- measures it seeks to impose or to gain par- Today the cheese made by Cabot is bled time. Today, in 2003, we are facing tisan political advantage, or, of course, both. from the milk of more than 1,450 Agri- another troubled time when our coun- If all that sounds familiar, it should. Mark dairy producers throughout try could use a dose of comfort and Finally, I want to say a word about our re- Vermont, New England and New York. sponsibilities as lawyers. In each of these hope. The Holy Bible is our richest episodes, lawyers played an important role, The Cabot Creamery of Vermont com- source of great inspiration, spiritual both in imposing the restrictions on civil lib- bines the best aspects of both coopera- guidance and strength. That is why so erties, and in opposing them. At the mo- tive farming and value-added agricul- many refer to it as their solid rock, ment, I’m more interested in the latter. Al- tural products to provide much-needed their foundation. bert Gallatin offered brilliant arguments in price premiums to Vermont dairy During National Bible Week, I en- opposition to the Alien and Sedition Acts. farmers. courage everyone to read the Bible Gilbert Roe defended the free speech rights The dairy farmers of Cabot Creamery every day and to pledge to continue to of dissenters in World War I. Professors also have a rich history in teaching Ernst Freund and Felix Frankfurter, of the turn to this Good Book throughout the Chicago and Harvard law schools, played a their communities about the impor- year. Reflecting on Scripture, using critical role in illuminating the civil rights tance of dairy to the economy and to the Bible’s stories to teach our chil- violations of the Red Scare and bringing that nutrition and health. Dairy products dren right from wrong, and seeking to era to a close. Francis Biddle played a coura- pack a powerful punch of eight addi- appreciate the literature on which our geous role within the Roosevelt administra- tional nutrients needed for stronger great United States of America was es- tion during World War II in opposing both bones and healthier bodies. Throughout tablished is always time well spent. I the Japanese internment and the prosecu- New England, Cabot runs the Ag in the congratulate the National Bible Asso- tion of American fascists. Joseph Welsch, a Classroom program, an educational Boston lawyer, publicly humiliated Senator ciation for its dedication to the cele- Joseph McCarthy hearings with his blis- program for elementary students that bration of God’s word, the Holy Bible.∑ tering questions ‘‘Have you no sense of de- teaches them about agriculture. This f cency, sir, at long last? Have you left no program has been recognized by edu- sense of decency?’’ And a group of lawyers cators as a valuable resource that helps MESSAGES FROM THE HOUSE here in Chicago from such organizations as connect students to their communities, At 10:44 a.m., a message from the BPI, the ACLU, the Better Government As- raises self-awareness and fosters cre- House of Representatives, delivered by sociation and the Alliance to End Repression ativity. Ms. Niland, one of its reading clerks, helped put an end to end COINTELPRO and Cabot also has sponsored Calcium announced that the House has agreed to the City of Chicago’s Red Squad during to the following concurrent resolu- the Vietnam War. Crisis Challenge, a program for 6th— Now, to return to our own perilous time. 8th-grade students that helps them tions, in which it requests the concur- The threat of terrorism is real, and we ex- learn about calcium and its importance rence of the Senate: pect our government to protect us. But we for stronger bones and healthy living. H. Con. Res. 291. Concurrent resolution ex- have seen disturbing, and all-too-familiar, The program brings attention to the pressing deep gratitude for the valor and patterns in our government’s activities. To fact that more than 75 percent of commitment of the members of the United strike the right balance in our time, we need Americans do not get enough calcium States Armed Forces who were deployed in judges who will stand fast against the furies Operation Restore Hope to provide humani- of the age; members of the academy who will in their diets. tarian assistance to the people of Somalia in help us see ourselves clearly; an informed This week in Washington, D.C., the 1993; to the Committee on the Judiciary. and tolerant public who will value not only dairy farmers of Cabot Creamery will H. Con. Res. 302. Concurrent resolution ex- their own liberties, but the liberties of oth- host a reception to highlight the na- pressing the sense of Congress welcoming

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.098 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13907 President Chen Shui-bian of Taiwan to the Regulatory Review—Spectrum Aggregation law, the report of a rule entitled ‘‘In the United States on October 31, 2003; to the Limits for Commercial Mobile Radio Serv- Matter of Digital Audio Broadcasting Sys- Committee on Foreign Relations. ices’’ (FCC01–328) received on October 31, tems and Their Impact on the Terrestrial The message also announced that 2003; to the Committee on Commerce, Radio Broadcast Service’’ (FCC02–286) re- pursuant to section 1 of the Library of Science, and Transportation. ceived on October 31, 2003; to the Committee EC–4986. A communication from the Asso- on Commerce, Science, and Transportation. Congress Trust Fund Board Act (2 ciate Bureau Chief, Wireline Telecommuni- EC–4995. A communication from the Legal U.S.C. 154 note), and the order of the cations Bureau, Federal Communications Advisor, Media Bureau, Federal Communica- House of January 8, 2003, the Speaker Commission, transmitting, pursuant to law, tions Commission, transmitting, pursuant to appoints the following member on the the report of a rule entitled ‘‘Cellular Serv- law, the report of a rule entitled ‘‘Amend- part of the House of Representatives to ice and Other Commercial Mobile Radio ment of Section 73.202(b), Table of Allot- the Library of Congress Trust Fund Services in the Gulf of Mexico’’ (FCC01–387) ments, FM Broadcast Stations (Charles Board for a 5-year term to fill the ex- received on October 31, 2003; to the Com- Town, West Virginia, and Stephens City, Vir- mittee on Commerce, Science, and Transpor- isting vacancy thereon: Mrs. Elisabeth ginia)’’ (MB Doc. No. 03–12) received on Octo- tation. ber 31, 2003; to the Committee on Commerce, Devos of Grand Rapids, Michigan. EC–4987. A communication from the Asso- Science, and Transportation. ciate Bureau Chief, Wireline Telecommuni- EC–4996. A communication from the Legal At 6:38 p.m., a message from the cations Bureau, Federal Communications Advisor, Media Bureau, Federal Communica- House of Representatives, delivered by Commission, transmitting, pursuant to law, tions Commission, transmitting, pursuant to Ms. Niland, one of its reading clerks, the report of a rule entitled ‘‘Implementa- law, the report of a rule entitled ‘‘Amend- announced that the Speaker of the tion of Competitive Bidding Rules to License ment of Section 73.202(b), Table of Allot- House has signed the following enrolled Certain Rural Service Areas’’ (FCC02–09) re- ments, FM Broadcast Stations (Ehrenberg, bills: ceived on October 31, 2003; to the Committee Arizona)’’ (MB Doc. No. 03–174) received on on Commerce, Science, and Transportation. October 31, 2003; to the Committee on Com- H.R. 2691. An act making appropriations EC–4988. A communication from the Attor- merce, Science, and Transportation. for the Department of the Interior and re- ney Advisor, Wireline Telecommunications EC–4997. A communication from the Legal lated agencies for the fiscal year ending Sep- Bureau, Federal Communications Commis- Advisor, Media Bureau, Federal Communica- tember 30, 2004, and for other purposes; sion, transmitting, pursuant to law, the re- tions Commission, transmitting, pursuant to H.R. 3288. An act to amend title XXI of the port of a rule entitled ‘‘Implementation of law, the report of a rule entitled ‘‘Amend- Social Security Act to make technical cor- Sections 309(i) and 337 of the Communica- ment of Section 73.202(b), Table of Allot- rections with respect to the definition of tions Act of 1934 as Amended’’ (FCC02–82) re- ments, FM Broadcast Stations (Wright City, qualifying State; and ceived on October 31, 2003; to the Committee OK)’’ (MM Doc. No. 01–255) received on Octo- H.R. 3289. An act making emergency sup- on Commerce, Science, and Transportation. ber 31, 2003; to the Committee on Commerce, plemental appropriations for defense and for EC–4989. A communication from the Asso- Science, and Transportation. the reconstruction of Iraq and Afghanistan ciate Bureau Chief, Wireline Telecommuni- EC–4998. A communication from the Legal for the fiscal year ending September 30, 2004, cations Bureau, Federal Communications Advisor, Media Bureau, Federal Communica- and for other purposes. Commission, transmitting, pursuant to law, tions Commission, transmitting, pursuant to the report of a rule entitled ‘‘The 4.9 GHz The enrolled bills, previously signed law, the report of a rule entitled ‘‘Amend- Band Transferred from Federal Government by the Speaker of the House, were ment of Section 73.202(b), Table of Allot- Use’’ (FCC02–41) received on October 31, 2003; signed on today, November 4, 2003, by ments, FM Broadcast Stations (Crowell, TX to the Committee on Commerce, Science, and Florien, LA)’’ (MB Doc. No. 02–168, –169) the President pro tempore (Mr. STE- and Transportation. VENS). EC–4990. A communication from the Asso- received on October 31, 2003; to the Com- mittee on Commerce, Science, and Transpor- f ciate Bureau Chief, Wireline Telecommuni- cations Bureau, Federal Communications tation. MEASURES REFERRED Commission, transmitting, pursuant to law, EC–4999. A communication from the Legal the report of a rule entitled ‘‘The Develop- Advisor, Media Bureau, Federal Communica- The following concurrent resolutions tions Commission, transmitting, pursuant to were read, and referred as indicated: ment of Operational, Technical, and Spec- trum Requirements for Meeting Federal, law, the report of a rule entitled ‘‘Amend- H. Con. Res. 291. Concurrent resolution ex- State, and Local Public Safety Agency Com- ment of Section 73.202(b), Table of Allot- pressing deep gratitude for the valor and munication Requirements Through the Year ments, FM Broadcast Stations (Dickens, commitment of the members of the United 2010’’ (FCC02–216) received on October 31, Floydada, Rankin, San Diego, and States Armed Forces who were deployed in 2003; to the Committee on Commerce, Westbrook, TX)’’ (MB Doc. No. 02–258, –259, Operation Restore Hope to provide humani- Science, and Transportation. –262, –264, –265) received on October 31, 2003; tarian assistance to the people of Somalia in EC–4991. A communication from the Asso- to the Committee on Commerce, Science, 1993; to the Committee on the Judiciary. ciate Bureau Chief, Wireline Telecommuni- and Transportation. H. Con. Res. 302. Concurrent resolution ex- cations Bureau, Federal Communications EC–5000. A communication from the Legal pressing the sense of Congress welcoming Commission, transmitting, pursuant to law, Advisor, Media Bureau, Federal Communica- President Chen Shui-bian of Taiwan to the the report of a rule entitled ‘‘1998 Biennial tions Commission, transmitting, pursuant to United States on October 31, 2003; to the Regulatory Review—Private Land Mobile law, the report of a rule entitled ‘‘Amend- Committee on Foreign Relations. Radio Services’’ (FCC02–139) received on Oc- ment of Section 73.202(b), Table of Allot- f tober 31, 2003; to the Committee on Com- ments, FM Broadcast Stations (Cobleskill merce, Science, and Transportation. and Saint Johnsville, NY)’’ (MM Doc. No. 00– EXECUTIVE AND OTHER EC–4992. A communication from the Asso- 40) received on October 31, 2003; to the Com- COMMUNICATIONS ciate Bureau Chief, Wireline Telecommuni- mittee on Commerce, Science, and Transpor- The following communications were cations Bureau, Federal Communications tation. Commission, transmitting, pursuant to law, EC–5001. A communication from the Legal laid before the Senate, together with Advisor, Media Bureau, Federal Communica- accompanying papers, reports, and doc- the report of a rule entitled ‘‘Implementa- tion of Sections 309(j) and 337 of the Commu- tions Commission, transmitting, pursuant to uments, and were referred as indicated: nications Act of 1934 as Amended’’ (FCC00– law, the report of a rule entitled ‘‘Amend- EC–4984. A communication from the Asso- 403) received on October 31, 2003; to the Com- ment of Section 73.202(b), Table of Allot- ciate Bureau Chief, Wireline Telecommuni- mittee on Commerce, Science, and Transpor- ments, FM Broadcast Stations (Cambria, cations Bureau, Federal Communications tation. CA)’’ (MB Doc. No. 03–182) received on Octo- Commission, transmitting, pursuant to law, EC–4993. A communication from the Asso- ber 31, 2003; to the Committee on Commerce, the report of a rule entitled ‘‘Amendment of ciate Bureau Chief, Wireline Telecommuni- Science, and Transportation. the Commission’s Rules to Establish New cations Bureau, Federal Communications EC–5002. A communication from the Legal Personal Communications Services, Commission, transmitting, pursuant to law, Advisor, Media Bureau, Federal Communica- Narrowband PCS; Implementation of Section the report of a rule entitled ‘‘The Develop- tions Commission, transmitting, pursuant to 309(i) of the Communications Act—Competi- ment of Operational, Technical, and Spec- law, the report of a rule entitled ‘‘Amend- tive Bidding, Narrowband PCS, GEN Doc. trum Regulrements for Meeting Federal, ment of Section 73.202(b), Table of Allot- No. 90–314’’ (FCC01–135) received on October State, and Local Public Safety Communica- ments, FM Broadcast Stations (Lamont and 31, 2003; to the Committee on Commerce, tion Requirements Through the Year 2010’’ McFarland, CA)’’ (MB Doc. No. 03–64) re- Science, and Transportation. (FCC01–10) received on October 31, 2003; to ceived on October 31, 2003; to the Committee EC–4985. A communication from the Asso- the Committee on Commerce, Science, and on Commerce, Science, and Transportation. ciate Bureau Chief, Wireline Telecommuni- Transportation. EC–5003. A communication from the Para- cations Bureau, Federal Communications EC–4994. A communication from the Legal legal Specialist, Federal Aviation Adminis- Commission, transmitting, pursuant to law, Advisor, Media Bureau, Federal Communica- tration, Department of Transportation, the report of a rule entitled ‘‘2000 Biennial tions Commission, transmitting, pursuant to transmitting, pursuant to law, the report of

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.043 S04PT1 S13908 CONGRESSIONAL RECORD — SENATE November 4, 2003 a rule entitled ‘‘Standard Instrument Ap- Airplanes’’ (RIN2120–AA64) received on No- MHz’’ (FCC02–232) received on October 31, proach Procedures; Miscellaneous Amend- vember 3, 2003; to the Committee on Com- 2003; to the Committee on Commerce, ments’’ (RIN2120–AA65) received on Novem- merce, Science, and Transportation. Science, and Transportation. ber 3, 2003; to the Committee on Commerce, EC–5013. A communication from the Para- EC–5022. A communication from the Attor- Science, and Transportation. legal Specialist, Federal Aviation Adminis- ney Advisor, Wireless Telecommunications EC–5004. A communication from the Para- tration, Department of Transportation, Bureau, Federal Communications Commis- legal Specialist, Federal Aviation Adminis- transmitting, pursuant to law, the report of sion, transmitting, pursuant to law, the re- tration, Department of Transportation, a rule entitled ‘‘Airworthiness Directives: port of a rule entitled ‘‘Amendment of the transmitting, pursuant to law, the report of Bombardier Model CL–600–2B19 Regional Jet Commission’s Rules Regarding Multiple Ad- a rule entitled ‘‘Revision of Jet Route J–147 Series 100 and 440 Airplanes’’ (RIN2120–AA64) dress Systems’’ (FCC01–171) received on Octo- Doc. No 03–AEA–3’’ (RIN2120–AA66) received received on November 3, 2003; to the Com- ber 31, 2003; to the Committee on Commerce, on November 3, 2003; to the Committee on mittee on Commerce, Science, and Transpor- Science, and Transportation. Commerce, Science, and Transportation. tation. EC–5023. A communication from the Attor- EC–5005. A communication from the Para- EC–5014. A communication from the Para- ney Advisor, Wireless Telecommunications legal Specialist, Federal Aviation Adminis- legal Specialist, Federal Aviation Adminis- Bureau, Federal Communications Commis- tration, Department of Transportation, tration, Department of Transportation, sion, transmitting, pursuant to law, the re- transmitting, pursuant to law, the report of transmitting, pursuant to law, the report of port of a rule entitled ‘‘Amendment of Parts a rule entitled ‘‘Airworthiness Directives: a rule entitled ‘‘Airworthiness Directives: 2, 73, 74, 80, 90, and 97 of the Commission’s Bombardier Model DHC–8–102, 103, 106, 201, Textron Lycoming Fuel Injected Recipro- Rules to Implement Decisions from World 202, 301, 311, and 315 Airplanes’’ (RIN2120– cating Engines’’ (RIN2120–AA64) received on Radiocommunication Conferences Con- AA64) received on November 3, 2003; to the November 3, 2003; to the Committee on Com- cerning Frequency Bands Below 28000 kHz’’ Committee on Commerce, Science, and merce, Science, and Transportation. (FCC03–39) received on October 31, 2003; to Transportation. EC–5015. A communication from the Para- the Committee on Commerce, Science, and EC–5006. A communication from the Para- legal Specialist, Federal Aviation Adminis- Transportation. legal Specialist, Federal Aviation Adminis- tration, Department of Transportation, EC–5024. A communication from the Attor- tration, Department of Transportation, transmitting, pursuant to law, the report of ney Advisor, Wireless Telecommunications transmitting, pursuant to law, the report of a rule entitled ‘‘Airworthiness Directives: Bureau, Federal Communications Commis- a rule entitled ‘‘Airworthiness Directives: Raytheon Aircraft Company 90, 100, and 200 sion, transmitting, pursuant to law, the re- Goodrich Avionics Systems, Inc. TAWS8000 Series Airplanes’’ (RIN2120–AA64) received port of a rule entitled ‘‘In the Amendment of Terrain Awareness Warning System’’ on November 3, 2003; to the Committee on Part 1 of the Commission’s Rules—Competi- (RIN2120–AA64) received on November 3, 2003; Commerce, Science, and Transportation. tive Bidding Procedures’’ (FCC01–270) re- to the Committee on Commerce, Science, EC–5016. A communication from the Para- ceived on October 31, 2003; to the Committee and Transportation. legal Specialist, Federal Aviation Adminis- on Commerce, Science, and Transportation. EC–5007. A communication from the Para- tration, Department of Transportation, EC–5025. A communication from the Acting legal Specialist, Federal Aviation Adminis- transmitting, pursuant to law, the report of Director, Office of Sustainable Fisheries, Na- tration, Department of Transportation, a rule entitled ‘‘Establishment of Class E tional Marine Fisheries Service, transmit- transmitting, pursuant to law, the report of Airspace; Point Pilot, AK’’ (RIN2120–AA66) ting, pursuant to law, the report of a rule en- a rule entitled ‘‘Airworthiness Directives: received on November 3, 2003; to the Com- titled ‘‘Closure of Directed Fishing for Atka MD Helicopters, Inc. Model 369A,D ,e

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.046 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13909

Regulations: [COTP Los Angeles-Long Beach B. Khodorkovsky by the Russian Federation; S. 1035 03–011], [COTP Prince William Sound 03–002]’’ to the Committee on Foreign Relations. At the request of Mr. CORZINE, the (RIN1625–AA00) received on October 31, 2003; f to the Committee on Commerce, Science, name of the Senator from Michigan and Transportation. ADDITIONAL COSPONSORS (Ms. STABENOW) was added as a cospon- EC–5031. A communication from the Chief, sor of S. 1035, a bill to amend title 10, S. 68 Regulations and Administrative Law, Coast United States Code, to reduce the age At the request of Mr. EDWARDS, his Guard, transmitting, pursuant to law, the re- for receipt of military retired pay for name was added as a cosponsor of S. 68, port of a rule entitled ‘‘Safety/Security Zone nonregular service from 60 to 55. Regulations: [COTP Mobile 03–022], Bayou a bill to amend title 38, United States Castle, Chevron Pascagoula Refinery, Code, to improve benefits for Filipino S. 1091 Pascagoula, MS’’ (RIN1625–AA00) received on veterans of World War II, and for other At the request of Mr. DURBIN, the October 31, 2003; to the Committee on Com- purposes. name of the Senator from South Da- merce, Science, and Transportation. S. 249 EC–5032. A communication from the Attor- kota (Mr. JOHNSON) was added as a co- ney, Office of the Secretary of Transpor- At the request of Mrs. CLINTON, the sponsor of S. 1091, a bill to provide tation, Department of Transportation, trans- name of the Senator from Illinois (Mr. funding for student loan repayment for mitting, pursuant to law, the report of a rule DURBIN) was added as a cosponsor of S. public attorneys. entitled ‘‘Standard Time Zone Boundary in 249, a bill to amend title 38, United S. 1217 the State of South Dakota: Relocation of States Code, to provide that remar- Jones, Mellette, and Todd Counties’’ riage of the surviving spouse of a de- At the request of Mr. ENZI, the name (RIN2105–AD30) received on November 3, 2003; ceased veteran after age 55 shall not re- of the Senator from Washington (Mrs. to the Committee on Commerce, Science, MURRAY) was added as a cosponsor of and Transportation. sult in termination of dependency and indemnity compensation otherwise S. 1217, a bill to direct the Secretary of EC–5033. A communication from the Attor- Health and Human Services to expand ney, Office of the Secretary of Transpor- payable to that surviving spouse. and intensify programs with respect to tation, Department of Transportation, trans- S. 349 research and related activities con- mitting, pursuant to law, the report of a rule At the request of Mrs. FEINSTEIN, the cerning elder falls. entitled ‘‘Policy Statement on Airline Pre- name of the Senator from Florida (Mr. emption’’ (RIN2105–AA46) received on No- NELSON) was added as a cosponsor of S. S. 1304 vember 3, 2003; to the Committee on Com- merce, Science, and Transportation. 349, a bill to amend title II of the So- At the request of Ms. SNOWE, the cial Security Act to repeal the Govern- f name of the Senator from California ment pension offset and windfall elimi- (Mrs. BOXER) was added as a cosponsor INTRODUCTION OF BILLS AND nation provisions. of S. 1304, a bill to improve the health JOINT RESOLUTIONS S. 557 of women through the establishment of The following bills and joint resolu- At the request of Ms. COLLINS, the Offices of Women’s Health within the tions were introduced, read the first name of the Senator from New Jersey Department of Health and Human and second times by unanimous con- (Mr. LAUTENBERG) was added as a co- Services. sent, and referred as indicated: sponsor of S. 557, a bill to amend the S. 1419 By Mr. BENNETT (for himself and Mr. Internal Revenue Code of 1986 to ex- At the request of Ms. LANDRIEU, the HATCH): clude from gross income amounts re- S. 1815. A bill to designate the Department ceived on account of claims based on name of the Senator from New Mexico of Veterans Affairs Medical Center in Salt certain unlawful discrimination and to (Mr. BINGAMAN) was added as a cospon- Lake City, Utah; to the Committee on Vet- allow income averaging for backpay sor of S. 1419, a bill to support the es- erans’ Affairs. tablishment or expansion and oper- By Mr. SCHUMER: and frontpay awards received on ac- count of such claims, and for other pur- ation of programs using a network of S. 1816. A bill to designate the building lo- public and private community entities cated at 15 Henry Street in Binghamton, poses. to provide mentoring for children in New York, as the ‘‘Kevin J. Tarsia Federal S. 722 foster care. Building and United States Courthouse’’; to At the request of Mr. DURBIN, the the Committee on Environment and Public name of the Senator from Arizona (Mr. S. 1545 Works. By Mr. SANTORUM: MCCAIN) was added as a cosponsor of S. At the request of Mr. HATCH, the S. 1817. A bill to amend the Internal Rev- 722, a bill to amend the Federal Food, name of the Senator from Washington enue Code of 1986 to include influenza vac- Drug, and Cosmetic Act to require that (Mrs. MURRAY) was added as a cospon- cines in the Vaccine Injury Compensation manufacturers of dietary supplements sor of S. 1545, a bill to amend the Ille- Program; to the Committee on Finance. submit to the Food and Drug Adminis- gal Immigration Reform and Immi- By Mr. GRAHAM of South Carolina: tration reports on adverse experiences grant Responsibility Act of 1996 to per- S. 1818. A bill to provide grants to law en- with dietary supplements, and for forcement agencies that ensure that law en- mit States to determine State resi- forcement officers employed by such agency other purposes. dency for higher education purposes are afforded due process when involved in a S. 863 and to authorize the cancellation of re- case that may lead to dismissal, demotion, At the request of Mr. EDWARDS, the moval and adjustment of status of cer- suspension, or transfer; to the Committee on name of the Senator from Massachu- tain alien students who are long-term the Judiciary. setts (Mr. KERRY) was added as a co- United States residents. By Mr. REID (for himself and Mr. EN- sponsor of S. 863, a bill to amend the SIGN): S. 1619 Higher Education Act of 1965 to allow S. 1819. A bill to direct the Secretary of At the request of Mrs. MURRAY, the soldiers to serve their country without Agriculture to convey certain land to Lander name of the Senator from Massachu- County, Nevada, and the Secretary of the In- being disadvantaged financially by setts (Mr. KENNEDY) was added as a co- terior to convey certain land to Eureka Federal student aid programs. sponsor of S. 1619, a bill to amend the County, Nevada, for continued use as ceme- S. 884 teries; to the Committee on Energy and Nat- Individuals With Disabilities Edu- At the request of Ms. LANDRIEU, the ural Resources. cation Act to ensure that children with name of the Senator from Oregon (Mr. f disabilities who are homeless or are SMITH) was added as a cosponsor of S. wards of the State have access to spe- SUBMISSION OF CONCURRENT AND 884, a bill to amend the Consumer Cred- cial education services, and for other SENATE RESOLUTIONS it Protection Act to assure meaningful purposes. The following concurrent resolutions disclosures of the terms of rental-pur- S. 1700 and Senate resolutions were read, and chase agreements, including disclo- referred (or acted upon), as indicated: sures of all costs to consumers under At the request of Mr. LEAHY, the By Mr. LUGAR (for himself and Mr. such agreements, to provide certain name of the Senator from Maryland BIDEN): substantive rights to consumers under (Mr. SARBANES) was added as a cospon- S. Res. 258. A resolution expressing the such agreements, and for other pur- sor of S. 1700, a bill to eliminate the sense of the Senate on the arrest of Mikhail poses. substantial backlog of DNA samples

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.048 S04PT1 S13910 CONGRESSIONAL RECORD — SENATE November 4, 2003 collected from crime scenes and con- ENSIGN) was added as a cosponsor of S. much of the Kingston Cemetery from victed offenders, to improve and ex- Con. Res. 75, a concurrent resolution the Forest Service. The Forest Service pand the DNA testing capacity of Fed- expressing the sense of the Congress recently sold approximately 1 acre to eral, State, and local crime labora- that a commemorative postage stamp the Town of Kingston, but this convey- tories, to increase research and devel- should be issued to promote public ance did not allow for the protection of opment of new DNA testing tech- awareness of Down syndrome. uncharted graves, nor for the imple- nologies, to develop new training pro- S. RES. 202 mentation of the community’s original grams regarding the collection and use At the request of Mr. CAMPBELL, the site plan. of DNA evidence, to provide post-con- name of the Senator from Michigan It is wrong that Beowawe and King- viction testing of DNA evidence to ex- (Mr. LEVIN) was added as a cosponsor of ston should have to buy or lease ceme- onerate the innocent, to improve the S. Res. 202, a resolution expressing the teries from Federal agencies that did performance of counsel in State capital sense of the Senate regarding the geno- not even exist at the time that the cases, and for other purposes. cidal Ukraine Famine of 1932-33. cemeteries were established. Our bill S. 1730 S. RES. 244 simply provides for the conveyance of the Maiden’s Grave Cemetery to Eure- At the request of Ms. SNOWE, the At the request of Mrs. BOXER, the ka County and the balance of the origi- name of the Senator from California name of the Senator from Wisconsin nal location of the Kingston Cemetery (Mrs. BOXER) was added as a cosponsor (Mr. FEINGOLD) was added as a cospon- to Lander County, Nevada. of S. 1730, a bill to require the health sor of S. Res. 244, a resolution con- The conveyances provided by this bill plans provide coverage for a minimum gratulating Shirin Ebadi for winning will benefit our Federal land managers hospital stay for mastectomies, the 2003 Nobel Peace Prize and com- as well as our rural communities. The lumpectomies, and lymph node dissec- mending her for her lifetime of work to disposal of these small parcels of land tion for the treatment of breast cancer promote democracy and human rights. and coverage for secondary consulta- for no consideration will benefit the tions. f United States because they represent isolated tracts that prove difficult to S. 1807 STATEMENTS ON INTRODUCED manage for public use. I sincerely hope At the request of Mr. MCCAIN, the BILLS AND JOINT RESOLUTIONS that my colleagues recognize the ben- name of the Senator from New York By Mr. REID (for himself and Mr. efit that the conveyances would pro- (Mrs. CLINTON) was added as a cospon- ENSIGN): vide to the local communities and sup- sor of S. 1807, a bill to require criminal S. 1819. A bill to direct the Secretary port passage of this legislation. background checks on all firearms of Agriculture to convey certain land I ask unanimous consent that the transactions occurring at events that to Lander County, Nevada, and the text of the bill be printed in the provide a venue for the sale, offer for Secretary of the Interior to convey cer- RECORD. sale, transfer, or exchange of firearms, tain land to Eureka County, Nevada, There being no objection, the bill was and for other purposes. for continued use as cemeteries; to the ordered to be printed in the RECORD, as S. 1813 Committee on Energy and Natural Re- follows: sources. At the request of Mr. LEAHY, the S. 1819 name of the Senator from South Caro- Mr. REID. Mr. President, I rise today Be it enacted by the Senate and House of Rep- for myself and Senator ENSIGN to in- lina (Mr. HOLLINGS) was added as a co- resentatives of the United States of America in sponsor of S. 1813, a bill to prohibit troduce this bill, which will address Congress assembled, important public land issues in central profiteering and fraud relating to mili- SECTION 1. SHORT TITLE. tary action, relief, and reconstruction Nevada. As you might know, the Fed- This Act may be cited as the ‘‘Central Ne- efforts in Iraq, and for other purposes. eral Government controls over 87 per- vada Rural Cemeteries Act’’. S. CON. RES. 33 cent of the State of Nevada. Many of SEC. 2. CONVEYANCE TO LANDER COUNTY, NE- At the request of Mr. CRAIG, the our colleagues from other States may VADA. name of the Senator from Vermont not understand the challenge this pre- (a) FINDINGS.—Congress finds that— (1) the historical use by settlers and trav- (Mr. JEFFORDS) was added as a cospon- sents for communities in Nevada. With such large tracts of land controlled by elers since the late 1800’s of the cemetery sor of S. Con. Res. 33, a concurrent res- known as ‘‘Kingston Cemetery’’ in Kingston, olution expressing the sense of the Federal agencies, it can be difficult to acquire land for vital efforts in both Nevada, predates incorporation of the land Congress regarding scleroderma. within the jurisdiction of the Forest Service the public and private sectors. S. CON. RES. 56 on which the cemetery is situated; This bill will convey two cemeteries (2) it is appropriate that that use be con- At the request of Mr. CORZINE, the in central Nevada from the Federal name of the Senator from Ohio (Mr. tinued through local public ownership of the Government back to the local commu- parcel rather than through the permitting VOINOVICH) was added as a cosponsor of nities. Kingston is a small town in process of the Federal agency; S. Con. Res. 56, a concurrent resolution southern Lander County, and Beowawe (3) in accordance with Public Law 85–569 expressing the sense of the Congress is a small community located in Eure- (commonly known as the ‘‘Townsite Act’’) that a commemorative postage stamp ka County. The original communities (16 U.S.C. 478a), the Forest Service has con- should be issued honoring Gunnery veyed to the Town of Kingston 1.25 acres of were home to pioneers and immigrants the land on which historic gravesites have Sergeant John Basilone, a great Amer- who settled the isolated high desert ican hero. been identified; and valleys of the central Great Basin. In (4) to ensure that all areas that may have S. CON. RES. 73 the late 1800s, the pioneers established unmarked gravesites are included, and to en- At the request of Mrs. FEINSTEIN, the and managed the cemeteries to provide sure the availability of adequate gravesite name of the Senator from Minnesota a final resting place for friends and space in future years, an additional parcel (Mr. COLEMAN) was added as a cospon- family. Much of the original Kingston consisting of approximately 8.75 acres should sor of S. Con. Res. 73, a concurrent res- Cemetery is on land now managed by be conveyed to the county so as to include the total amount of the acreage included in olution expressing the deep concern of the U.S. Forest Service. The Maiden’s Congress regarding the failure of the the original permit issued by the Forest Grave Cemetery in Beowawe is on land Service for the cemetery. Islamic Republic of Iran to adhere to currently managed by the Bureau of (b) CONVEYANCE ON CONDITION SUBSE- its obligations under a safeguards Land Management. QUENT.—Subject to valid existing rights and agreement with the International Under current law, these agencies the condition stated in subsection (e), the Atomic Energy Agency and the engage- must sell the cemeteries back to the Secretary of Agriculture, acting through the ment by Iran in activities that appear communities at fair market value. Chief of the Forest Service (referred to in to be designed to develop nuclear weap- However, these historic cemeteries this section as the ‘‘Secretary’’), not later ons. than 90 days after the date of enactment of were established prior to the designa- this Act, shall convey to Lander County, Ne- S. CON. RES. 75 tion of the Federal agencies that now vada (referred to in this section as the At the request of Mr. DURBIN, the manage them. For over 2 years, Lander ‘‘county’’), for no consideration, all right, name of the Senator from Nevada (Mr. County has been required to lease title, and interest of the United States in

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.056 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13911 and to the parcel of land described in sub- (2) REVERSION.—If the Secretary, after no- AMENDMENTS SUBMITTED & section (c). tice to the county and an opportunity for a PROPOSED (c) DESCRIPTION OF LAND.—The parcel of hearing, makes a finding that the county has land referred to in subsection (b) is the par- used or permitted the use of the parcel for SA 2053. Mr. SHELBY (for himself and Mr. cel of National Forest System land (includ- any purpose other than the purpose specified SARBANES) proposed an amendment to the ing any improvements on the land) known as in paragraph (1), and the county fails to dis- bill S. 1753, to amend the Fair Credit Report- ‘‘Kingston Cemetery’’, consisting of approxi- continue that use— ing Act in order to prevent identity theft, to mately 10 acres and more particularly de- (A) title to the parcel shall revert to the improve the use of and consumer access to scribed as SW1/4SE1/4SE1/4 of section 36, T. Secretary, to be administered by the Sec- consumer reports, to enhance the accuracy 16N., R. 43E., Mount Diablo Meridian. retary; and of consumer reports, to limit the sharing of (d) EASEMENT.—At the time of the convey- (B) the easement granted to the county certain consumer information, to improve fi- ance under subsection (b), subject to sub- under subsection (d) shall be revoked. nancial education and literacy, and for other section (e)(2), the Secretary shall grant the (3) WAIVER.—The Secretary may waive the purposes. county an easement allowing access for per- application of subparagraph (A) or (B) of SA 2054. Mrs. FEINSTEIN (for herself, Mrs. sons desiring to visit the cemetery and other paragraph (2) if the Secretary determines BOXER, Mr. HARKIN, Mr. FEINGOLD, Mr. DUR- cemetery purposes over Forest Development that a waiver would be in the best interests BIN, Mr. LAUTENBERG, and Mr. NELSON of Road #20307B, notwithstanding any future of the United States. Florida) proposed an amendment to the bill closing of the road for other use. S. 1753, supra. (e) CONDITION ON USE OF LAND.— SA 2055. Mr. LUGAR submitted an amend- f (1) IN GENERAL.—The county (including its ment intended to be proposed by him to the successors) shall continue the use of the par- bill S. 1585, making appropriations for the cel conveyed under subsection (b) as a ceme- SUBMITTED RESOLUTIONS Departments of Commerce, Justice, and tery. State, the Judiciary, and related agencies for (2) REVERSION.—If the Secretary, after no- the fiscal year ending September 30, 2004, and tice to the county and an opportunity for a for other purposes; which was ordered to lie hearing, makes a finding that the county has SENATE RESOLUTION 258—EX- on the table. SA 2056. Mr. LUGAR submitted an amend- used or permitted the use of the parcel for PRESSING THE SENSE OF THE any purpose other than the purpose specified ment intended to be proposed by him to the in paragraph (1), and the county fails to dis- SENATE ON THE ARREST OF MI- bill S. 1585, supra; which was ordered to lie continue that use— KHAIL B. KHODORKOVSKY BY on the table. (A) title to the parcel shall revert to the THE RUSSIAN FEDERATION SA 2057. Mr. LUGAR submitted an amend- ment intended to be proposed by him to the Secretary, to be administered by the Sec- Mr. LUGAR (for himself and Mr. retary; and bill S. 1585, supra; which was ordered to lie (B) the easement granted to the county BIDEN) submitted the following resolu- on the table. under subsection (d) shall be revoked. tion; which was referred to the Com- SA 2058. Mr. LUGAR submitted an amend- (3) WAIVER.—The Secretary may waive the mittee on Foreign Relations: ment intended to be proposed by him to the bill S. 1585, supra; which was ordered to lie application of subparagraph (A) or (B) of S. RES. 258 paragraph (2) if the Secretary determines on the table. Whereas the Russian Federation is now a that a waiver would be in the best interests SA 2059. Ms. CANTWELL (for herself, Mr. member of the family of democratic coun- of the United States. ENZI, and Mr. LEAHY) submitted an amend- tries; ment intended to be proposed by her to the SEC. 3. CONVEYANCE TO EUREKA COUNTY, NE- Whereas the United States supports the de- VADA. bill S. 1753, to amend the Fair Credit Report- velopment of democracy, free markets, and (a) FINDINGS.—Congress finds that— ing Act in order to prevent identity theft, to civil society in the Russian Federation and (1) the historical use by settlers and trav- improve the use of and consumer access to in other states of the former Soviet Union; elers since the late 1800’s of the cemetery consumer reports, to enhance the accuracy Whereas the rule of law, the impartial ap- known as ‘‘Maiden’s Grave Cemetery’’ in of consumer reports, to limit the sharing of plication of the law, and equal justice for all Beowawe, Nevada, predates incorporation of certain consumer information, to improve fi- in courts of law are pillars of all democratic the land within the jurisdiction of the Bu- nancial education and literacy, and for other societies; reau of Land Management on which the cem- purposes. Whereas investment, both foreign and do- etery is situated; and SA 2060. Mrs. BOXER (for herself and Mrs. mestic, in the economy of Russia is nec- (2) it is appropriate that that use be con- FEINSTEIN) proposed an amendment to the essary for the growth of the economy and tinued through local public ownership of the bill S. 1753, supra. raising the standard of living of the citizens parcel rather than through the permitting SA 2061. Mrs. FEINSTEIN (for herself, Mrs. of the Russian Federation; process of the Federal agency. BOXER, and Mr. KENNEDY) proposed an Whereas property rights are a bulwark of (b) CONVEYANCE ON CONDITION SUBSE- amendment to the bill S. 1753, supra. civil society against encroachment by the QUENT.—Subject to valid existing rights and SA 2062. Mr. DURBIN proposed an amend- the condition stated in subsection (e), the state, and a fundamental building block of ment to the bill S. 1753, supra. Secretary of the Interior, acting through the democracy; and SA 2063. Mr. LAUTENBERG (for himself, Director of the Bureau of Land Management Whereas reports of the arrest of Mikhail B. Ms. MIKULSKI, Mr. JEFFORDS, Mrs. BOXER, (referred to in this section as the ‘‘Sec- Khodorkovsky and the freezing of shares of Mr. CORZINE, Mr. SCHUMER, Mr. LEAHY, Mr. retary’’), not later than 90 days after the the oil conglomerate YUKOS have raised LIEBERMAN, Mr. KERRY, and Mr. KENNEDY) date of enactment of this Act, shall convey questions about the possible selective appli- submitted an amendment intended to be pro- to Eureka County, Nevada (referred to in cation of the law in the Russian Federation posed by him to the bill H.R. 2861, making this section as the ‘‘county’’), for no consid- and may have compromised investor con- appropriations for the Departments of Vet- eration, all right, title, and interest of the fidence in business conditions there: Now, erans Affairs and Housing and Urban Devel- United States in and to the parcel of land de- therefore, be it opment, and for sundry independent agen- scribed in subsection (c). Resolved, That it is the sense of the Senate cies, boards, commissions, corporations, and (c) DESCRIPTION OF LAND.—The parcel of that— offices for the fiscal year ending September land referred to in subsection (b) is the par- (1) the law enforcement and judicial au- 30, 2004, and for other purposes; which was cel of public land (including any improve- thorities of the Russian Federation should ordered to lie on the table. ments on the land) known as ‘‘Maiden’s ensure that Mikhail B. Khodorkovsky is ac- SA 2064. Mr. CORZINE proposed an amend- Grave Cemetery’’, consisting of approxi- corded the full measure of his rights under ment to the bill S. 1753, to amend the Fair mately 10 acres and more particularly de- the Russian Constitution to defend himself Credit Reporting Act in order to prevent scribed as S1/2NE1/4SW1/4SW1/4, N1/2SE1/ against any and all charges that may be identity theft, to improve the use of and con- 4SW1/4SW1/4 of section 10, T.31N., R.49E., brought against him, in a fair and trans- sumer access to consumer reports, to en- Mount Diablo Meridian. parent process, so that individual justice hance the accuracy of consumer reports, to (d) EASEMENT.—At the time of the convey- may be done, but also so that the efforts the limit the sharing of certain consumer infor- ance under subsection (b), subject to sub- Russian Federation has been making to re- mation, to improve financial education and section (e)(2), the Secretary shall grant the form its system of justice may be seen to be literacy, and for other purposes. county an easement allowing access for per- moving forward; and SA 2065. Mr. FEINGOLD proposed an sons desiring to visit the cemetery and other (2) such authorities of the Russian Federa- amendment to the bill S. 1753, supra. cemetery purposes over an appropriate ac- tion should make every effort to dispel grow- SA 2066. Mr. FEINGOLD proposed an cess route consistent with current access. ing international concerns that— amendment to the bill S. 1753, supra. (e) CONDITION ON USE OF LAND.— (A) the cases against Mikhail B. SA 2067. Mr. SHELBY (for Mr. NELSON of (1) IN GENERAL.—The county (including its Khodorkovsky and other business leaders are Florida) proposed an amendment to the bill successors) shall continue the use of the par- politically motivated; and S. 1753, supra. cel conveyed under subsection (b) as a ceme- (B) the potential remains for misuse of the SA 2068. Mr. CRAPO (for himself and Mr. tery. justice system in the Russian Federation. SMITH) submitted an amendment intended to

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.057 S04PT1 S13912 CONGRESSIONAL RECORD — SENATE November 4, 2003 be proposed by him to the bill H.R. 2673, TITLE II—IMPROVEMENTS IN USE OF telephone number or other reasonable con- making appropriations for Agriculture, AND CONSUMER ACCESS TO CREDIT IN- tact method designated by the consumer for Rural Development, Food and Drug Adminis- FORMATION the user to obtain authorization from the tration, and Related Agencies for the fiscal Sec. 211. Free credit reports. consumer before establishing new credit (in- year ending September 30, 2004, and for other Sec. 212. Credit scores. cluding providing any increase in a credit purposes; which was ordered to lie on the Sec. 213. Enhanced disclosure of the means limit with respect to an existing credit ac- table. available to opt out of count) in the name of the consumer; and SA 2069. Mr. AKAKA submitted an amend- prescreened lists. ‘‘(C) is presented in a manner that facili- ment intended to be proposed by him to the Sec. 214. Affiliate sharing. tates a clear and conspicuous view of the bill S. 1753, to amend the Fair Credit Report- Sec. 215. Study of effects of credit scores and statement described in subparagraph (A) or ing Act in order to prevent identity theft, to credit-based insurance scores (B) by any person requesting such consumer improve the use of and consumer access to on availability and afford- report. consumer reports, to enhance the accuracy ability of financial products. ‘‘(r) CREDIT CARD.—The term ‘credit card’ of consumer reports, to limit the sharing of TITLE III—ENHANCING THE ACCURACY has the same meaning as in section 103 of the certain consumer information, to improve fi- OF CONSUMER REPORT INFORMATION Truth in Lending Act. nancial education and literacy , and for ‘‘(s) DEBIT CARD.—The term ‘debit card’ other purposes; which was ordered to lie on Sec. 311. Risk-based pricing notice. Sec. 312. Procedures to enhance the accu- means any card issued by a financial institu- the table. racy and completeness of infor- tion to a consumer for use in initiating an SA 2070. Mr. ALEXANDER submitted an electronic fund transfer from the account of amendment intended to be proposed by him mation furnished to consumer reporting agencies. the consumer at such financial institution, to the bill S. 150, to make permanent the for the purpose of transferring money be- moratorium on taxes on Internet access and Sec. 313. Federal Trade Commission and consumer reporting agency ac- tween accounts or obtaining money, prop- multiple and discriminatory taxes on elec- erty, labor, or services. tronic commerce imposed by the Internet tion concerning complaints. Sec. 314. Ongoing audits of the accuracy of ‘‘(t) ACCOUNT AND ELECTRONIC FUND TRANS- Tax Freedom Act; which was ordered to lie consumer reports. FER.—The terms ‘account’ and ‘electronic on the table. fund transfer’ have the same meanings as in SA 2071. Mr. COLEMAN submitted an Sec. 315. Improved disclosure of the results section 903 of the Electronic Fund Transfer amendment intended to be proposed by him of reinvestigation. Act. to the bill H.R. 2673, making appropriations Sec. 316. Reconciling addresses. Sec. 317. FTC study of issues relating to the ‘‘(u) CREDIT AND CREDITOR—The terms for Agriculture, Rural Development, Food Fair Credit Reporting Act. ‘credit’ and ‘creditor’ have the same mean- and Drug Administration, and Related Agen- ings as in section 702 of the Equal Credit Op- cies for the fiscal year ending September 30, TITLE IV—LIMITING THE USE AND SHAR- portunity Act. 2004, and for other purposes; which was or- ING OF MEDICAL INFORMATION IN THE ‘‘(v) FEDERAL BANKING AGENCIES.—The dered to lie on the table. FINANCIAL SYSTEM term ‘Federal banking agencies’ has the Sec. 411. Protection of medical information f same meaning as in section 3 of the Federal in the financial system. TEXT OF AMENDMENTS Sec. 412. Confidentiality of medical contact Deposit Insurance Act. ‘‘(w) FINANCIAL INSTITUTION.—The term ‘fi- SA 2053. Mr. SHELBY (for himself information in consumer re- ports. nancial institution’ means a State or Na- and Mr. SARBANES) proposed an amend- tional bank, a State or Federal savings and ment to the bill S. 1753, to amend the TITLE V—FINANCIAL LITERACY AND loan association, a mutual savings bank, a Fair Credit Reporting Act in order to EDUCATION IMPROVEMENT State or Federal credit union, or any other prevent identity theft, to improve the Sec. 511. Short title. person that, directly or indirectly, holds an Sec. 512. Definitions. account belonging to a consumer. use of and consumer access to con- Sec. 513. Establishment of Financial Lit- sumer reports, to enhance the accuracy ‘‘(x) RESELLER.—The term ‘reseller’ means eracy and Education Commis- a consumer reporting agency that— of consumer reports, to limit the shar- sion. ‘‘(1) assembles and merges information ing of certain consumer information, Sec. 514. Duties of the Commission. contained in the database of another con- to improve financial education and lit- Sec. 515. Powers of the Commission. sumer reporting agency or multiple con- eracy, and for other purposes; as fol- Sec. 516. Commission personnel matters. sumer reporting agencies concerning any Sec. 517. Study by the Comptroller General. lows: consumer for purposes of furnishing such in- Sec. 518. Authorization of appropriations. Strike all after the enacting clause and in- formation to any third party, to the extent TITLE VI—RELATION TO STATE LAW sert the following: of such activities; and SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 611. Relation to State law. ‘‘(2) does not maintain a database of the (a) SHORT TITLE.—This Act may be cited as TITLE VII—MISCELLANEOUS assembled or merged information from the ‘‘National Consumer Credit Reporting Sec. 711. Clerical amendments. which new consumer reports are produced. ‘‘(y) DEFINITIONS RELATING TO CREDIT System Improvement Act of 2003’’. TITLE I—IDENTITY THEFT PREVENTION (b) TABLE OF CONTENTS.—The table of con- SCORES.— AND CREDIT HISTORY RESTORATION tents for this Act is as follows: ‘‘(1) CREDIT SCORE AND KEY FACTORS.—When Subtitle A—Identity Theft Prevention Sec. 1. Short title; table of contents. used in connection with an application for an TITLE I—IDENTITY THEFT PREVENTION SEC. 111. DEFINITIONS. extension of credit for a consumer purpose AND CREDIT HISTORY RESTORATION Section 603 of the Fair Credit Reporting that is to be secured by a dwelling— Act (15 U.S.C. 1681a) is amended by adding at ‘‘(A) the term ‘credit score’— Subtitle A—Identity Theft Prevention the end the following: ‘‘(i) means a numerical value or cat- Sec. 111. Definitions. ‘‘(q) DEFINITIONS RELATING TO FRAUD egorization derived from a statistical tool or Sec. 112. Fraud alerts and active duty alerts. ALERTS.— modeling system used to predict the likeli- Sec. 113. Truncation of credit card and debit ‘‘(1) ACTIVE DUTY MILITARY CONSUMER.—The hood of certain credit behaviors, including card account numbers. Sec. 114. Establishment of procedures for the term ‘active duty military consumer’ means default; and identification of possible in- a consumer in military service who— ‘‘(ii) does not include— stances of identity theft. ‘‘(A) is on active duty (as defined in section ‘‘(I) any mortgage score or rating of an Sec. 115. Amendments to existing identity 101(d)(1) of title 10, United States Code) or is automated underwriting system that con- theft prohibition. a reservist performing duty under a call or siders 1 or more factors in addition to credit Sec. 116. Authority to truncate social secu- order to active duty under a provision of law information, including the loan-to-value rity numbers. referred to in section 101(a)(13) of title 10, ratio, the amount of down payment, or the Subtitle B—Protection and Restoration of United States Code; and financial assets of a consumer; or Identity Theft Victim Credit History ‘‘(B) is assigned to service away from the ‘‘(II) other elements of the underwriting usual duty station of the consumer. process or underwriting decision; and Sec. 151. Summary of rights of identity theft ‘‘(2) FRAUD ALERT; ACTIVE DUTY ALERT.— ‘‘(B) the term ‘key factors’ means all rel- victims. Sec. 152. Blocking of information resulting The terms ‘fraud alert’ and ‘active duty evant elements or reasons affecting the cred- from identity theft. alert’ mean a statement in the file of a con- it score for a consumer, listed in the order of Sec. 153. Coordination of identity theft com- sumer that— their importance, based on their respective plaint investigations. ‘‘(A) notifies all prospective users of a con- effects on the credit score. Sec. 154. Prevention of repollution of con- sumer report relating to the consumer that ‘‘(2) DWELLING.—The term ‘dwelling’ has sumer reports. the consumer may be a victim of fraud, in- the same meaning as in section 103 of the Sec. 155. Notice by debt collectors with re- cluding identity theft, or is an active duty Truth in Lending Act. spect to fraudulent informa- military consumer, as applicable; ‘‘(z) IDENTITY THEFT REPORT.—The term tion. ‘‘(B) provides to all prospective users of a ‘identity theft report’ means a report— Sec. 156. Statute of limitations. consumer report relating to the consumer, a ‘‘(1) that alleges an identity theft;

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.062 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13913 ‘‘(2) that is filed by a consumer with an ap- ‘‘(A) a properly completed copy of a stand- tion 603(p) to communicate a suspicion that propriate Federal, State, or local govern- ardized affidavit of identity theft developed the consumer has been or is about to become ment agency, including the United States and made available by the Federal Trade a victim of fraud or related crime, including Postal Inspection Service and any law en- Commission; or identity theft, the agency shall provide in- forcement agency; and ‘‘(B) any affidavit of fact that is acceptable formation to the consumer on how to con- ‘‘(3) the filing of which subjects the person to the consumer reporting agency for that tact the Federal Trade Commission and the filing the report to criminal penalties relat- purpose. consumer reporting agencies described in ing to the filing of false information if, in ‘‘(3) ACCESS TO FREE REPORTS.—In any case section 603(p) to obtain more detailed infor- fact, the information in the report is false.’’. in which a consumer reporting agency in- mation and request alerts under this sec- SEC. 112. FRAUD ALERTS AND ACTIVE DUTY cludes a fraud alert in the file of a consumer tion.’’. ALERTS. pursuant to this subsection, the consumer SEC. 113. TRUNCATION OF CREDIT CARD AND The Fair Credit Reporting Act (15 U.S.C. reporting agency shall— DEBIT CARD ACCOUNT NUMBERS. 1681 et seq.) is amended by inserting after ‘‘(A) disclose to the consumer that the con- Section 605 of the Fair Credit Reporting section 605 the following: sumer may request 2 free copies of the file of Act (15 U.S.C. 1681c) is amended by adding at ‘‘§ 605A. Identity theft prevention; fraud the consumer pursuant to section 612(d) dur- the end the following: alerts and active duty alerts ing the 12-month period beginning on the ‘‘(g) TRUNCATION OF CREDIT CARD AND ‘‘(a) ONE-CALL FRAUD ALERTS.— date on which the fraud alert was included in DEBIT CARD NUMBERS.— ‘‘(1) INITIAL ALERTS.—Upon the request of a the file; and ‘‘(1) IN GENERAL.—Except as otherwise spe- consumer who asserts in good faith a sus- ‘‘(B) provide to the consumer all disclo- cifically provided in this subsection, no per- picion that the consumer has been or is sures required to be made under section 609, son that accepts credit cards or debit cards about to become a victim of fraud or related without charge to the consumer, not later for the transaction of business shall print crime, including identity theft, a consumer than 3 business days after any request de- more than the last 5 digits of the card ac- reporting agency described in section 603(p) scribed in subparagraph (A). count number or the expiration date upon that maintains a file on the consumer and ‘‘(c) ACTIVE DUTY ALERTS.—Upon the re- any receipt provided to the cardholder at the has received appropriate proof of the iden- quest of an active duty military consumer, a point of the sale or transaction. tity of the requester shall— consumer reporting agency described in sec- ‘‘(2) LIMITATION.—This subsection applies ‘‘(A) include a fraud alert in the file of that tion 603(p) that maintains a file on the active only to receipts that are electronically consumer for a period of not less than 90 duty military consumer and has received ap- printed, and does not apply to transactions days, beginning on the date of such request, propriate proof of the identity of the re- in which the sole means of recording a credit unless the consumer requests that such fraud quester shall— card or debit card account number is by alert be removed before the end of such pe- ‘‘(1) include an active duty alert in the file handwriting or by an imprint or copy of the riod, and the agency has received appro- of that active duty military consumer during card. a period of not less than 12 months, begin- priate proof of the identity of the requester ‘‘(3) EFFECTIVE DATE.—This subsection for such purpose; and ning on the date of the request, unless the shall become effective— ‘‘(B) refer the information regarding the active duty military consumer requests that ‘‘(A) 3 years after the date of enactment of fraud alert under this paragraph to each of such fraud alert be removed before the end of this subsection, with respect to any cash reg- the other consumer reporting agencies de- such period, and the agency has received ap- ister or other machine or device that elec- scribed in section 603(p), in accordance with propriate proof of the identity of the re- tronically prints receipts for credit card or procedures developed under section 621(f). quester for such purpose; debit card transactions that is in use before CCESS TO FREE REPORTS.—In any case ‘‘(2) A ‘‘(2) during the 12-month period beginning January 1, 2005; and in which a consumer reporting agency in- on the date of such request, exclude the ac- ‘‘(B) 1 year after the date of enactment of cludes a fraud alert in the file of a consumer tive duty military consumer from any list of this subsection, with respect to any cash reg- pursuant to this subsection, the consumer consumers prepared by the consumer report- ister or other machine or device that elec- reporting agency shall— ing agency and provided to any third party tronically prints receipts for credit card or ‘‘(A) disclose to the consumer that the con- to offer credit or insurance to the consumer debit card transactions that is first put into sumer may request a free copy of the file of as part of a transaction that was not initi- use on or after January 1, 2005.’’. the consumer pursuant to section 612(d); and ated by the consumer, unless the consumer ‘‘(B) provide to the consumer all disclo- requests that such exclusion be rescinded be- SEC. 114. ESTABLISHMENT OF PROCEDURES FOR sures required to be made under section 609, THE IDENTIFICATION OF POSSIBLE fore the end of such period; and INSTANCES OF IDENTITY THEFT. without charge to the consumer, not later ‘‘(3) refer the information regarding the ac- (a) IN GENERAL.—Section 615 of the Fair than 3 business days after any request de- tive duty alert to each of the other consumer scribed in subparagraph (A). Credit Reporting Act (15 U.S.C. 1681m) is reporting agencies described in section amended— ‘‘(b) EXTENDED ALERTS.— 603(p), in accordance with procedures devel- ‘‘(1) IN GENERAL.—Upon the request of a (1) by striking ‘‘(e)’’ at the end; and oped under section 621(f). (2) by adding at the end the following: consumer who submits an identity theft re- ‘‘(d) PROCEDURES.—Each consumer report- ‘‘(e) RED FLAG GUIDELINES AND REGULA- port to a consumer reporting agency de- ing agency described in section 603(p) shall TIONS REQUIRED.— scribed in section 603(p) that maintains a file establish policies and procedures to comply ‘‘(1) GUIDELINES.—The Federal banking on the consumer, if the agency has received with this section, including procedures that appropriate proof of the identity of the re- allow consumers and active duty military agencies, the National Credit Union Admin- quester, the agency shall— consumers to request temporary, extended, istration, and the Federal Trade Commission ‘‘(A) include a fraud alert in the file of that or active duty alerts (as applicable) in a sim- shall, with respect to the entities that are consumer during the 7-year period beginning ple and easy manner, including by telephone. subject to their respective enforcement au- on the date of such request, unless the con- ‘‘(e) REFERRALS OF FRAUD ALERTS.—Each thority under section 621, and in coordina- sumer requests that such fraud alert be re- consumer reporting agency described in sec- tion as described in paragraph (2)— moved before the end of such period and the tion 603(p) that receives a referral of a fraud ‘‘(A) establish and maintain guidelines for agency has received appropriate proof of the alert or active duty alert from another con- use by each financial institution and each identity of the requester for such purpose; sumer reporting agency pursuant to this sec- other person that is a creditor or other user ‘‘(B) during the 7-year period beginning on tion shall, as though the agency received the of a consumer report regarding identity theft the date of such request, exclude the con- request from the consumer directly, follow with respect to account holders at, or cus- sumer from any list of consumers prepared the procedures required under— tomers of, such entities, and update such by the consumer reporting agency and pro- ‘‘(1) paragraphs (1)(A) and (2) of subsection guidelines as often as necessary; and vided to any third party to offer credit or in- (a), in the case of a referral under subsection ‘‘(B) prescribe regulations requiring each surance to the consumer as part of a trans- (a)(1)(B); financial institution and each other person action that was not initiated by the con- ‘‘(2) paragraphs (1)(A), (1)(B), and (3) of sub- that is a creditor or other user of a consumer sumer, unless the consumer requests that section (b), in the case of a referral under report to establish reasonable policies and such exclusion be rescinded before the end of subsection (b)(1)(C); and procedures for implementing the guidelines such period; and ‘‘(3) paragraphs (1) and (2) of subsection (c), established pursuant to paragraph (1), to ‘‘(C) refer the information regarding the in the case of a referral under subsection identify possible risks to account holders or extended fraud alert under this paragraph to (c)(3). to the safety and soundness of the institu- each of the other consumer reporting agen- ‘‘(f) DUTY OF RESELLER TO RECONVEY tion or customers. cies described in section 603(p), in accordance ALERT.—A reseller shall include in its report ‘‘(2) COORDINATION.—Each agency required with procedures developed under section any fraud alert or active duty alert placed in to prescribe regulations under paragraph (1) 621(f). the file of a consumer pursuant to this sec- shall consult and coordinate with each other ‘‘(2) VERIFICATION OF IDENTITY THEFT tion by another consumer reporting agency. such agency so that, to the extent possible, CLAIM.—For purposes of paragraph (1), a con- ‘‘(g) DUTY OF OTHER CONSUMER REPORTING the regulations prescribed by each such enti- sumer reporting agency shall accept as proof AGENCIES TO PROVIDE CONTACT INFORMA- ty are consistent and comparable with the of a claim of identity theft, in lieu of an TION.—If a consumer contacts any consumer regulations prescribed by each other such identity theft report— reporting agency that is not described in sec- agency.

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‘‘(3) CRITERIA.—In developing the guide- ‘‘(A) if the consumer to whom the file re- ‘‘(1) that the information may be a result lines required by paragraph (1)(A), the agen- lates requests that the first 5 digits of the so- of identity theft; cies described in paragraph (1) shall identify cial security number (or similar identifica- ‘‘(2) that an identity theft report has been patterns, practices, and specific forms of ac- tion number) of the consumer not be in- filed; tivity that indicate the possible existence of cluded in the disclosure and the consumer re- ‘‘(3) that a block has been requested under identity theft. porting agency has received appropriate this section; and ‘‘(4) CONSISTENCY WITH VERIFICATION RE- proof of the identity of the requester, the ‘‘(4) of the effective dates of the block. QUIREMENTS.—Policies and procedures estab- consumer reporting agency shall so truncate ‘‘(c) AUTHORITY TO DECLINE OR RESCIND.— lished pursuant to paragraph (1) shall not be such number in such disclosure; and ‘‘(1) IN GENERAL.—A consumer reporting inconsistent with, or duplicative of, the poli- ‘‘(B) nothing’’. agency may decline to block, or may rescind cies and procedures required under section Subtitle B—Protection and Restoration of any block, of information relating to a con- 5318(l) of title 31, United States Code. Identity Theft Victim Credit History sumer under this section, if the consumer re- ‘‘(f) INVESTIGATION OF CHANGES OF AD- porting agency reasonably determines that— SEC. 151. SUMMARY OF RIGHTS OF IDENTITY ‘‘(A) the information was blocked in error DRESS.— THEFT VICTIMS. or a block was requested by the consumer in ‘‘(1) IN GENERAL.—The Federal banking (a) IN GENERAL.—Section 609 of the Fair error; agencies, the National Credit Union Admin- Credit Reporting Act (15 U.S.C. 1681g) is ‘‘(B) the information was blocked, or a istration, and the Federal Trade Commis- amended by adding at the end the following: block was requested by the consumer, on the sion, in carrying out the responsibilities of ‘‘(d) SUMMARY OF RIGHTS OF IDENTITY basis of a material misrepresentation of fact such agencies under subsection (e) shall, THEFT VICTIMS.— relevant to the request to block; or with respect to the entities that are subject ‘‘(1) IN GENERAL.—The Federal Trade Com- to their respective enforcement authority mission, in consultation with the Federal ‘‘(C) the consumer obtained possession of under section 621, and in coordination as de- banking agencies and the National Credit goods, services, or money as a result of the scribed in paragraph (2), prescribe regula- Union Administration, shall prescribe the blocked transaction or transactions. tions applicable to card issuers to ensure form and content of a summary of the rights ‘‘(2) NOTIFICATION TO CONSUMER.—If a block that, if any such card issuer receives a re- of consumers under this title with respect to of information is declined or rescinded under quest for an additional or replacement card the procedures for remedying the effects of this subsection, the affected consumer shall for an existing account not later than 30 fraud or identity theft involving credit, elec- be notified promptly, in the same manner as days after the card issuer has received notifi- tronic fund transfers, or accounts or trans- consumers are notified of the reinsertion of cation of a change of address for the same actions at or with a financial institution. information under section 611(a)(5)(B). ‘‘(3) SIGNIFICANCE OF BLOCK.—For purposes account, the card issuer will follow reason- ‘‘(2) SUMMARY OF RIGHTS AND CONTACT IN- of this subsection, if a consumer reporting able policies and procedures that prohibit, as FORMATION.—If any consumer contacts a con- appropriate, the card issuer from issuing the sumer reporting agency and expresses a be- agency rescinds a block, the presence of in- additional or replacement card, unless the lief that the consumer is a victim of fraud or formation in the file of a consumer prior to card issuer— identity theft involving credit, an electronic the blocking of such information is not evi- ‘‘(A) notifies the cardholder of the request fund transfer, or an account or transaction dence of whether the consumer knew or at the former address of the cardholder and at or with a financial institution, the con- should have known that the consumer ob- provides to the cardholder a means of sumer reporting agency shall, in addition to tained possession of any goods, services, or promptly reporting incorrect address any other action that the agency may take, money as a result of the block. ‘‘(d) EXCEPTION FOR RESELLERS.— changes; provide the consumer with the model sum- ‘‘(1) NO RESELLER FILE.—This section shall ‘‘(B) notifies the cardholder of the request mary of rights prepared by the Federal Trade not apply to a consumer reporting agency, if by such other means of communication as Commission under paragraph (1) and infor- the consumer reporting agency— the cardholder and the card issuer previously mation on how to contact the Commission to ‘‘(A) is a reseller; agreed to; or obtain more detailed information.’’. ‘‘(B) is not, at the time of the request of ‘‘(C) uses other means of assessing the va- (b) PUBLIC CAMPAIGN TO PREVENT IDENTITY the consumer under subsection (a), otherwise lidity of the change of address, in accordance THEFT.—Not later than 2 years after the date with reasonable policies and procedures es- of enactment of this Act, the Federal Trade furnishing or reselling a consumer report tablished by the card issuer in accordance Commission shall establish and implement a concerning the information identified by the with the regulations prescribed under sub- media and distribution campaign to teach consumer; and section (e). the public how to prevent identity theft. ‘‘(C) informs the consumer, by any means, that the consumer may report the identity ‘‘(2) COORDINATION.—Each agency required Such campaign shall include existing Fed- to prescribe regulations under paragraph (1) eral Trade Commission education materials, theft to the Federal Trade Commission to shall consult and coordinate with each other as well as radio, television, and print public obtain consumer information regarding iden- such agency so that, to the extent possible, service announcements, video cassettes, tity theft. the regulations prescribed by each such enti- interactive digital video discs (DVD’s) or ‘‘(2) RESELLER WITH FILE.—The sole obliga- ty are consistent and comparable with the compact audio discs (CD’s), and Internet re- tion of the consumer reporting agency under regulations prescribed by each other such sources. this section, with regard to any request of a agency. (c) CONFORMING AMENDMENT.—Section consumer under this section, shall be to ‘‘(3) DEFINITION OF CARD ISSUER.—For pur- 624(b)(3) of the Fair Credit Reporting Act (15 block the consumer report maintained by poses of this subsection, the term ‘card U.S.C. 1681t(b)(3), regarding relation to State the consumer reporting agency from any issuer’ means— laws) is amended by striking ‘‘section 609(c)’’ subsequent use, if— ‘‘(A) any person who issues a credit card, and inserting ‘‘subsection (c) or (d) of section ‘‘(A) the consumer, in accordance with the or the agent of such person with respect to 609’’. provisions of subsection (a), identifies, to a consumer reporting agency, information in such card; and SEC. 152. BLOCKING OF INFORMATION RESULT- ‘‘(B) any person who issues a debit card.’’. ING FROM IDENTITY THEFT. the file of the consumer that resulted from (b) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—The Fair Credit Report- identity theft; and made by subsection (a) shall take effect 1 ing Act (15 U.S.C. 1681 et seq.) is amended by ‘‘(B) the consumer reporting agency is a re- year after the date of enactment of this Act. inserting after section 605A, as added by this seller of the identified information. ‘‘(3) NOTICE.—In carrying out its obligation SEC. 115. AMENDMENTS TO EXISTING IDENTITY Act, the following: under paragraph (2), the reseller shall THEFT PROHIBITION. ‘‘§ 605B. Block of information resulting from promptly provide a notice to the consumer of Section 1028 of title 18, United States Code, identity theft the decision to block the file. Such notice is amended— ‘‘(a) BLOCK.—Except as otherwise provided shall contain the name, address, and tele- (1) in subsection (a)(7)— in this section, a consumer reporting agency phone number of each consumer reporting (A) by striking ‘‘transfers’’ and inserting shall block the reporting of any information agency from which the consumer informa- ‘‘transfers, possesses,’’; and in the file of a consumer that the consumer tion was obtained for resale. (B) by striking ‘‘abet,’’ and inserting identifies as information that resulted from ‘‘(e) EXCEPTION FOR VERIFICATION COMPA- ‘‘abet, or in connection with,’’; an alleged identity theft, not later than 3 NIES.—The provisions of this section do not (2) in subsection (b)(1)(D), by striking business days after the date of receipt by apply to a check services company, acting as ‘‘transfer’’ and inserting ‘‘transfer, posses- such agency of— such, which issues authorizations for the sion,’’; and ‘‘(1) appropriate proof of the identity of the purpose of approving or processing nego- (3) in subsection (b)(2), by striking ‘‘three consumer; tiable instruments, electronic fund transfers, years’’ and inserting ‘‘5 years’’. ‘‘(2) a copy of an identity theft report; and or similar methods of payments, except that, SEC. 116. AUTHORITY TO TRUNCATE SOCIAL SE- ‘‘(3) the identification of such information beginning 3 business days after receipt of in- CURITY NUMBERS. by the consumer. formation described in paragraphs (1) Section 609(a)(1) of the Fair Credit Report- ‘‘(b) NOTIFICATION.—A consumer reporting through (3) of subsection (a), a check serv- ing Act (15 U.S.C. 1681g(a)(1)) is amended by agency shall promptly notify the furnisher of ices company shall not report to a national striking ‘‘except that nothing’’ and inserting information identified by the consumer consumer reporting agency described in sec- the following: ‘‘except that— under subsection (a)— tion 603(p), any information identified in the

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.075 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13915 subject identity theft report as resulting (A) in the matter preceding subparagraph TITLE II—IMPROVEMENTS IN USE OF AND from identity theft. (A), by inserting ‘‘or as described in para- CONSUMER ACCESS TO CREDIT INFOR- ‘‘(f) ACCESS TO BLOCKED INFORMATION BY graph (2)(B),’’ after ‘‘agency,’’; MATION LAW ENFORCEMENT AGENCIES.—No provision (B) subparagraph (B), by inserting before of this section shall be construed as requir- the semicolon the following: ‘‘, and by the SEC. 211. FREE CREDIT REPORTS. ing a consumer reporting agency to prevent consumer, and other documentation reason- (a) IN GENERAL.—Section 612 of the Fair a Federal, State, or local law enforcement ably available to the person that is nec- Credit Reporting Act (15 U.S.C. 1681j) is agency from accessing blocked information essary to conduct a reasonable investiga- amended— in a consumer file to which the agency could tion’’; and (1) by redesignating subsection (a) as sub- otherwise obtain access under this title.’’. (C) in subparagraph (C), by inserting before section (f), and transferring it to the end of (b) CLERICAL AMENDMENT.—The table of the semicolon at the end the following: ‘‘, the section; sections for the Fair Credit Reporting Act and to the consumer, if notice of the dispute (2) by inserting before subsection (b) the (15 U.S.C. 1681 et seq.) is amended by insert- was received directly from the consumer, as following: ing after the item relating to section 605 the described in paragraph (2)(B)’’. following new items: ‘‘(a) FREE ANNUAL DISCLOSURE.— (b) PROHIBITION ON SALE OR TRANSFER OF ‘‘(1) IN GENERAL.—A consumer reporting ‘‘605A. Identity theft prevention; fraud DEBT CAUSED BY IDENTITY THEFT.—Section alerts and active duty alerts. agency described in section 603(p) shall make 615 of the Fair Credit Reporting Act (15 all disclosures pursuant to section 609 once ‘‘605B. Block of information resulting from U.S.C. 1681m), as amended by this Act, is identity theft.’’. during any 12-month period upon request of amended by adding at the end the following: the consumer and without charge to the con- SEC. 153. COORDINATION OF IDENTITY THEFT ‘‘(g) PROHIBITION ON SALE OR TRANSFER OF COMPLAINT INVESTIGATIONS. sumer, only if the request is made by mail or DEBT CAUSED BY IDENTITY THEFT.— Section 621 of the Fair Credit Reporting through an Internet website using the cen- ‘‘(1) IN GENERAL.—No person shall sell, tralized system and the standardized form Act (15 U.S.C. 1681s) is amended by adding at transfer for consideration, or place for col- established for such requests in accordance the end the following: lection a debt that such person has been no- ‘‘(f) COORDINATION OF CONSUMER COMPLAINT with section 211(c) of the National Consumer tified under section 605B has resulted from INVESTIGATIONS.— Credit Reporting System Improvement Act identity theft. ‘‘(1) IN GENERAL.—Each consumer reporting of 2003. ‘‘(2) APPLICABILITY.—The prohibitions of agency described in section 603(p) shall de- ‘‘(2) TIMING.—A consumer reporting agency this subsection shall apply to all persons col- velop and maintain procedures for the refer- shall provide a consumer report under para- lecting a debt described in paragraph (1) ral to each other such agency of any con- graph (1) not later than 15 days after the after the date of a notification under para- sumer complaint received by the agency al- date on which the request is received under graph (1). leging identity theft, or requesting a fraud paragraph (1). ‘‘(3) RULE OF CONSTRUCTION.—Nothing in alert under section 605A or a block under ‘‘(3) REINVESTIGATIONS.—Notwithstanding this subsection shall be construed to pro- section 605B. the time periods specified in section 611(a)(1), hibit— ‘‘(2) MODEL FORM AND PROCEDURE FOR RE- a reinvestigation under that section by a ‘‘(A) the repurchase of a debt in any case in PORTING IDENTITY THEFT.—The Federal Trade consumer reporting agency upon a request of which the assignee of the debt requires such Commission, in consultation with the Fed- a consumer that is made after receiving a repurchase because the debt has resulted eral banking agencies and the National Cred- consumer report under this subsection shall from identity theft; it Union Administration, shall develop a be completed not later than 45 days after the ‘‘(B) the securitization of a debt; or model form and model procedures to be used date on which the request is received.’’; ‘‘(C) the transfer of debt as a result of a by consumers who are victims of identity (3) by redesignating subsection (d) as sub- merger, acquisition, purchase and assump- theft for contacting and informing creditors section (e); tion transaction, or transfer of substantially and consumer reporting agencies of the (4) by inserting before subsection (e), as re- all of the assets of an entity.’’. fraud. designated, the following: SEC. 155. NOTICE BY DEBT COLLECTORS WITH ‘‘(3) ANNUAL SUMMARY REPORTS.—Each con- RESPECT TO FRAUDULENT INFOR- ‘‘(d) FREE DISCLOSURES IN CONNECTION WITH sumer reporting agency described in section MATION. FRAUD ALERTS.—Upon the request of a con- 603(p) shall submit an annual summary re- Section 615 of the Fair Credit Reporting sumer, a consumer reporting agency de- port to the Federal Trade Commission on Act (15 U.S.C. 1681m), as amended by this scribed in section 603(p) shall make all dis- consumer complaints received by the agency Act, is amended by adding at the end the fol- closures pursuant to section 609 without on identity theft or fraud alerts.’’. lowing: charge to the consumer, as provided in sub- SEC. 154. PREVENTION OF REPOLLUTION OF ‘‘(h) DEBT COLLECTOR COMMUNICATIONS sections (a)(2) and (b)(3) of section 605A, as CONSUMER REPORTS. CONCERNING IDENTITY THEFT.—If a person applicable.’’; (a) PREVENTION OF REINSERTION OF ERRO- acting as a debt collector (as that term is de- (5) in subsection (e), as redesignated, by NEOUS INFORMATION.— fined in title VIII) on behalf of a third party striking ‘‘subsection (a)’’ and inserting ‘‘sub- (1) DUTIES OF FURNISHERS UPON NOTICE OF that is a creditor or other user of a consumer section (f)’’; and IDENTITY THEFT-RELATED DISPUTES.—Section report is notified that any information relat- (6) in subsection (f), as redesignated, by 623(b) of the Fair Credit Reporting Act (15 ing to a debt that the person is attempting striking ‘‘Except as provided in subsections U.S.C. 1681s–2(b)) is amended— to collect may be fraudulent or may be the (b), (c), and (d), a’’ and inserting ‘‘In the case (A) by redesignating paragraph (2) as para- result of identity theft, that person shall— of a request from a consumer other than a graph (3); ‘‘(1) notify the third party that the infor- request that is covered by any of subsections (B) by inserting after paragraph (1) the fol- mation may be fraudulent or may be the re- (a) through (d), a’’. lowing: sult of identity theft; and ‘‘(2) DUTIES OF FURNISHERS UPON NOTICE OF (b) SUMMARY OF RIGHTS TO OBTAIN AND DIS- ‘‘(2) upon request of the consumer to whom IDENTITY THEFT-RELATED DISPUTES.—A person PUTE INFORMATION IN CONSUMER REPORTS AND the debt purportedly relates, provide to the that furnishes information to any consumer TO OBTAIN CREDIT SCORES.—Section 609(c) of consumer all information to which the con- reporting agency shall— the Fair Credit Reporting Act (15 U.S.C. sumer would otherwise be entitled if the con- ‘‘(A) have in place reasonable procedures to 1681g) is amended to read as follows: sumer were not a victim of identity theft, respond to any notification that it receives ‘‘(c) SUMMARY OF RIGHTS TO OBTAIN AND but wished to dispute the debt under provi- from a consumer reporting agency under sec- DISPUTE INFORMATION IN CONSUMER REPORTS sions of law applicable to that person.’’. tion 605B relating to information resulting AND TO OBTAIN CREDIT SCORES.— SEC. 156. STATUTE OF LIMITATIONS. from identity theft, to prevent that person ‘‘(1) COMMISSION SUMMARY OF RIGHTS RE- Section 618 of the Fair Credit Reporting from refurnishing such blocked information; QUIRED.— Act (15 U.S.C. 1681p) is amended to read as and ‘‘(A) IN GENERAL.—The Federal Trade Com- ‘‘(B) take the actions described in subpara- follows: mission shall prepare a model summary of graphs (A) through (D) of paragraph (1), if ‘‘§ 618. Jurisdiction of courts; limitation of ac- the rights of consumers under this title. such person receives directly from a con- tions ‘‘(B) CONTENT OF SUMMARY.—The summary sumer, an identity theft report or a properly ‘‘An action to enforce any liability created of rights prepared under subparagraph (A) completed copy of a standardized affidavit of under this title may be brought in any ap- shall include a description of— identity theft developed and made available propriate United States district court, with- ‘‘(i) the right of a consumer to obtain a by the Federal Trade Commission.’’; and out regard to the amount in controversy, or copy of a consumer report under subsection (C) in paragraph (3), as redesignated, by in any other court of competent jurisdiction, (a) from each consumer reporting agency; striking ‘‘paragraph (1)’’ and inserting ‘‘this not later than the earlier of— ‘‘(ii) the frequency and circumstances subsection’’. ‘‘(1) 2 years after the date of discovery by under which a consumer is entitled to re- (2) CONFORMING AMENDMENTS RELATING TO the plaintiff of the violation that is the basis ceive a consumer report without charge NOTICE OF IDENTITY THEFT DIRECTLY FROM for such liability; or under section 612; CONSUMERS.—Section 623(b)(1) of the Fair ‘‘(2) 7 years after the date on which the ‘‘(iii) the right of a consumer to dispute in- Credit Reporting Act (15 U.S.C. 1681s–2(b)(1)) violation that is the basis for such liability formation in the file of the consumer under is amended— occurs.’’. section 611;

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.075 S04PT1 S13916 CONGRESSIONAL RECORD — SENATE November 4, 2003 ‘‘(iv) the right of a consumer to obtain a with respect to access to such consumer re- ‘‘(B) a credit score that assists the con- credit score from a consumer reporting agen- ports. sumer in understanding the credit scoring cy, and a description of how to obtain a cred- (2) TIMING.—Regulations required by this assessment of the credit behavior of the con- it score; and subsection shall— sumer and predictions about future credit ‘‘(v) the method by which a consumer can (A) be issued in final form not later than 6 behavior.’’. contact, and obtain a consumer report from, months after the date of enactment of this (3) CONFORMING AMENDMENT.—Section a consumer reporting agency without Act; and 609(a)(1)(B) of the Fair Credit Reporting Act charge, as provided in the regulations of the (B) become effective not later than 6 (15 U.S.C. 1681g(a)(1)(B)), as so designated by Federal Trade Commission prescribed under months after the date on which they are section 116, is amended by inserting before section 211(c) of the National Consumer issued in final form. the period ‘‘, other than as provided in para- Credit Reporting System Improvement Act (d) EFFECTIVE DATE.—The amendments graph (6)’’. of 2003. made by subsections (a) and (b) shall become (b) DUTIES OF USERS OF CREDIT SCORES.— ‘‘(C) AVAILABILITY OF SUMMARY OF effective on the effective date of the regula- (1) IN GENERAL.—Section 615 of the Fair RIGHTS.—The Federal Trade Commission tions prescribed by the Federal Trade Com- Credit Reporting Act (15 U.S.C. 1681m), as shall— mission in accordance with subsection (c). amended by this Act, is amended by adding ‘‘(i) actively publicize the availability of SEC. 212. CREDIT SCORES. at the end the following: the summary of rights prepared under this (a) DUTIES OF CONSUMER REPORTING AGEN- ‘‘(i) DUTIES OF USERS OF CREDIT SCORES.— paragraph; CIES TO DISCLOSE CREDIT SCORES.— ‘‘(1) DISCLOSURES.—Any person that makes ‘‘(ii) conspicuously post on its Internet (1) IN GENERAL.—Section 609(a) of the Fair or arranges extensions of credit for consumer website the availability of such summary of Credit Reporting Act (15 U.S.C. 1681g(a)) is purposes that are to be secured by a dwelling rights; and amended by adding at the end the following: and that uses credit scores for that purpose, ‘‘(iii) promptly make such summary of ‘‘(6) In connection with an application for shall be required to provide to the consumer rights available to consumers, on request. an extension of credit for a consumer pur- to whom the credit score relates, as soon as ‘‘(2) SUMMARY OF RIGHTS REQUIRED TO BE IN- pose that is to be secured by a dwelling— is reasonably practicable after such use— CLUDED WITH AGENCY DISCLOSURES.—A con- ‘‘(A) the current, or most recent, credit ‘‘(A) a copy of the information described in sumer reporting agency shall provide to a score of the consumer that was previously section 609(a)(6) that was obtained from a consumer, with each written disclosure by calculated by the agency; consumer reporting agency or that was de- the agency to the consumer under this sec- ‘‘(B) the range of possible credit scores veloped and used by that user of the credit tion— under the model used; score information; or ‘‘(A) the summary of rights prepared by ‘‘(C) the key factors, if any, not to exceed ‘‘(B) if the user of the credit score informa- the Federal Trade Commission under para- 4, that adversely affected the credit score of tion obtained such information from a third graph (1); the consumer in the model used; party that developed such information (other ‘‘(B) in the case of a consumer reporting ‘‘(D) the date on which the credit score was than a consumer reporting agency or the agency described in section 603(p), a toll-free created; and user itself), only— telephone number established by the agency, ‘‘(E) the name of the person or entity that ‘‘(i) a copy of the information described in at which personnel are accessible to con- provided the credit score or the credit file on section 609(a)(6) provided to the user by the sumers during normal business hours; the basis of which the credit score was cre- person or entity that developed the credit ‘‘(C) a list of all Federal agencies respon- ated.’’. score; and sible for enforcing any provision of this title, (2) LIMITATIONS ON REQUIRED PROVISION OF ‘‘(ii) a notice that generally describes cred- and the address and any appropriate phone CREDIT SCORE.—Section 609 of the Fair Credit it scores, their use, and the sources and number of each such agency, in a form that Reporting Act (15 U.S.C. 1681g), as amended kinds of data used to generate credit scores. will assist the consumer in selecting the ap- by this Act, is amended by adding at the end ‘‘(2) RULE OF CONSTRUCTION.—This sub- propriate agency; the following: section may not be construed to require the ‘‘(D) a statement that the consumer may ‘‘(e) LIMITATIONS ON REQUIRED PROVISION user of a credit score described in paragraph have additional rights under State law, and OF CREDIT SCORE.— (1)— that the consumer may wish to contact a ‘‘(1) IN GENERAL.—Subsection (a)(6) may ‘‘(A) to explain to the consumer the infor- State or local consumer protection agency or not be construed— mation provided pursuant to section a State attorney general (or the equivalent ‘‘(A) to compel a consumer reporting agen- 609(a)(6), unless that information was devel- thereof) to learn of those rights; and cy to develop or disclose a credit score if the oped by the user; ‘‘(E) a statement that a consumer report- agency does not, in the ordinary course of its ‘‘(B) to disclose any information other ing agency is not required to remove accu- business— than a credit score or the key factors re- rate derogatory information from the file of ‘‘(i) distribute scores that are used in con- quired to be disclosed under section a consumer, unless the information is out- nection with extensions of credit secured by 609(a)(6)(C); dated under section 605 or cannot be residential real property; or ‘‘(C) to disclose any credit score or related verified.’’. ‘‘(ii) develop credit scores that assist credi- information obtained by the user after a (c) RULEMAKING REQUIRED.— tors in understanding the general credit be- transaction occurs; or (1) IN GENERAL.—The Federal Trade Com- havior of the consumer and predicting future ‘‘(D) to provide more than 1 disclosure mission shall prescribe regulations applica- credit behavior; under this subsection to any 1 consumer per ble to consumer reporting agencies described ‘‘(B) to require a consumer reporting agen- credit transaction. in section 603(p) of the Fair Credit Reporting cy that distributes credit scores developed ‘‘(3) LIMITATION.—Except as otherwise pro- Act to require the establishment of— by another person or entity to provide a fur- vided in this subsection, the obligation of a (A) a centralized source, through which ther explanation of those scores, or to proc- user of a credit score under this subsection consumers may obtain a consumer report ess a dispute arising pursuant to section shall be limited solely to providing a copy of from each consumer reporting agency de- 611(a), except that the consumer reporting the information that was received from the scribed in that section 603(p) using a single agency shall be required to provide to the consumer reporting agency or other person. request and without charge to the consumer, consumer the name and information for con- A user of a credit score has no liability under as provided in section 612(a) of the Fair Cred- tacting the person or entity that developed this subsection for the content of credit it Reporting Act (as amended by this Act); the score; score information received from a consumer (B) a standardized form for a consumer to ‘‘(C) to require a consumer reporting agen- reporting agency or for the omission of any make such a request for a consumer report cy to maintain credit scores in its files; or information within the report provided by by mail or through an Internet website; and ‘‘(D) to compel disclosure of a credit score, the consumer reporting agency.’’. (C) streamlined methods by which such a except upon specific request of the con- (2) CONFORMING AMENDMENT.—Section 615 consumer reporting agency shall provide sumer, except that if a consumer requests of the Fair Credit Reporting Act (15 U.S.C. such consumer reports, after consideration the credit file and not the credit score, then 1681m) is amended in the section heading, by of— the consumer shall be provided with the adding at the end the following: ‘‘and credit (i) the significant demands that may be credit file and a statement that the con- scores’’. placed on consumer reporting agencies in sumer may request and obtain a credit score. (c) CONTRACTUAL LIABILITY.—Section 616 of providing such consumer reports; ‘‘(2) PROVISION OF SCORING MODEL.—In com- the Fair Credit Reporting Act (15 U.S.C. (ii) appropriate means to ensure that con- plying with subsection (a)(6) and this sub- 1681n) is amended by adding at the end the sumer reporting agencies can satisfactorily section, a consumer reporting agency shall following: meet those demands, including the efficacy supply to the consumer— ‘‘(d) USE OF CREDIT SCORES.—Any provision of a system of staggering the availability to ‘‘(A) a credit score that is derived from a of any contract that prohibits the disclosure consumers of such consumer reports using a credit scoring model that is widely distrib- of a credit score by a consumer reporting quarterly method based on the birth month uted to users of credit scores by that con- agency or a person who makes or arranges of the consumer; and sumer reporting agency in connection with extensions of credit to the consumer to (iii) the ease by which consumers should be any extension of credit secured by a dwell- whom the credit score relates is void. A user able to contact consumer reporting agencies ing; or of a credit score shall not have liability

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.075 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13917 under any such contractual provision for dis- through (iii) of section 603(d)(2)(A), may not scribed in paragraph (2), prescribe regula- closure of a credit score.’’. use the information to make a solicitation tions to implement section 624 of the Fair (d) RELATION TO STATE LAWS.—Section for marketing purposes to a consumer about Credit Reporting Act, as added by this sec- 624(b)(1) of the Fair Credit Reporting Act (15 its products or services, unless— tion. U.S.C. 1681t(b)(1), regarding relation to State ‘‘(A) it is clearly and conspicuously dis- (2) COORDINATION.—Each agency required laws) is amended— closed to the consumer that the information to prescribe regulations under paragraph (1) (1) in subparagraph (E), by striking ‘‘or’’ at may be communicated among such persons shall consult and coordinate with each other the end; and for purposes of making such solicitations to such agency so that, to the extent possible, (2) by adding at the end the following: the consumer; and the regulations prescribed by each such enti- ‘‘(G) subsections (a)(6) and (e) of section ‘‘(B) the consumer is provided an oppor- ty are consistent and comparable with the 609, relating to the disclosure of credit scores tunity and a simple method to prohibit the regulations prescribed by each other such by consumer reporting agencies in connec- making of such solicitations to the consumer agency. tion with an application for an extension of by such person. (3) CONSIDERATIONS.—In promulgating reg- credit that is to be secured by a dwelling; ‘‘(2) CONSUMER CHOICE.— ulations under this subsection, the Federal ‘‘(H) section 615(i), relating to the duties of ‘‘(A) IN GENERAL.—The notice required Trade Commission shall— users of credit scores to disclose credit score under paragraph (1) shall allow the consumer (A) ensure that affiliate sharing notifica- information to consumers in connection with the opportunity to prohibit all such solicita- tion methods provide a simple means for an application for an extension of credit that tions, and may allow the consumer to choose consumers to make determinations and is to be secured by a dwelling; or’’. from different options when electing to pro- choices under section 624 of the Fair Credit (e) EFFECTIVE DATE.—The amendments hibit the sending of such solicitations, in- Reporting Act, as added by this section; and made by this section shall become effective cluding options regarding the types of enti- (B) consider the affiliate sharing notifica- 180 days after the date of enactment of this ties and information covered, and which tion practices employed on the date of enact- Act. methods of delivering solicitations the con- ment of this Act by persons that will be sub- SEC. 213. ENHANCED DISCLOSURE OF THE sumer elects to prohibit. ject to that section 624. MEANS AVAILABLE TO OPT OUT OF ‘‘(B) FORMAT.—Notwithstanding subpara- (4) TIMING.—Regulations required by this PRESCREENED LISTS. graph (A), the notice required under para- subsection shall— (a) NOTICE AND RESPONSE FORMAT FOR graph (1) must be clear, conspicuous, and (A) be issued in final form not later than 6 USERS OF REPORTS.—Section 615(d)(2) of the concise, and any method provided under months after the date of enactment of this Fair Credit Reporting Act (15 U.S.C. paragraph (1)(B) must be simple. The regula- Act; and 1681m(d)(2)) is amended to read as follows: tions prescribed to implement this section (B) become effective not later than 3 ‘‘(2) DISCLOSURE OF ADDRESS AND TELE- shall provide specific guidance regarding months after the date on which they are PHONE NUMBER; FORMAT.—A statement under how to comply with such standards. issued in final form. ‘‘(3) DURATION.—The election of the con- paragraph (1) shall— (c) CONFORMING AMENDMENT.—Section ‘‘(A) include the address and toll-free tele- sumer pursuant to paragraph (1)(B) to pro- 603(d)(2)(A) of the Fair Credit Reporting Act phone number of the appropriate notification hibit the sending of solicitations shall be ef- (15 U.S.C. 1681a(d)(2)(A)) is amended by in- system established under section 604(e); and fective for 5 years, beginning on the date on serting ‘‘subject to section 624,’’ after ‘‘(A)’’. which the person receives the election of the ‘‘(B) be presented in such format and in (d) CLERICAL AMENDMENT.—The Fair Credit such type size and manner as is established consumer, unless the consumer requests that Reporting Act (15 U.S.C. 1681 et seq.) is by the Federal Trade Commission, by rule, in such election be revoked before the end of amended in the table of sections, by striking consultation with the Federal banking agen- such period. At such time as the election of the items following the item relating to sec- cies and the National Credit Union Adminis- the consumer pursuant to paragraph (1)(B) is tion 623 and inserting the following: tration.’’. no longer effective, a person may not use in- formation it receives as described in para- ‘‘624. Affiliate sharing. (b) RULEMAKING SCHEDULE.—Regulations ‘‘625. Relation to State laws. required by section 615(d)(2) of the Fair Cred- graph (1) to make a solicitation for mar- keting purposes to such consumer unless the ‘‘626. Disclosures to FBI for counterintel- it Reporting Act, as amended by this section, ligence purposes.’’. shall be issued in final form not later than 1 consumer receives a notice and an oppor- (e) STUDIES OF INFORMATION SHARING PRAC- year after the date of enactment of this Act. tunity to extend the opt out for another pe- TICES.— (c) DURATION OF ELECTIONS.—Section 604(e) riod of 5 years, pursuant to the procedure de- scribed in paragraph (1). (1) IN GENERAL.—The Federal banking of the Fair Credit Reporting Act (15 U.S.C. agencies, the National Credit Union Admin- 1681b(e)) is amended in each of paragraphs ‘‘(4) SCOPE.—This section shall not apply to a person— istration, and the Federal Trade Commission (3)(A) and (4)(B)(i)), by striking ‘‘2-year pe- shall jointly conduct regular studies of the riod’’ each place that term appears and in- ‘‘(A) using information to make a solicita- tion for marketing purposes to a consumer consumer information sharing practices by serting ‘‘7-year period’’. financial institutions and other persons that (d) PUBLIC AWARENESS CAMPAIGN.—The with whom the person has a pre-existing business relationship; are creditors or users of consumer reports Federal Trade Commission shall actively with their affiliates. publicize and conspicuously post on its ‘‘(B) using information to perform services on behalf of another person related by com- (2) MATTERS FOR STUDY.—In conducting the website any address and the toll-free tele- studies required by paragraph (1), the agen- phone number established as part of a notifi- mon ownership or affiliated by corporate control, except that this subparagraph shall cies described in paragraph (1) shall— cation system for opting out of prescreening (A) identify— under section 604(e), and otherwise take not permit a person to send solicitations on behalf of another person if such other person (i) the purposes for which financial institu- measures to increase public awareness re- tions and other creditors and users of con- garding the availability of the right to opt would not be permitted to send the solicita- tion on its own behalf as a result of the elec- sumer reports share consumer information; out of prescreening. (ii) the types of information shared by such SEC. 214. AFFILIATE SHARING. tion of the consumer to prohibit solicita- tions under paragraph (1)(B); entities with their affiliates; (a) LIMITATION.—The Fair Credit Reporting (iii) the number of choices provided to con- Act (15 U.S.C. 1601 et seq.) is amended— ‘‘(C) using information in direct response to a communication initiated by the con- sumers with respect to the control of such (1) by redesignating section 624 (regarding sharing, and the degree to and manner in relation to State laws), as so designated by sumer in which the consumer has requested information about a product or service; or which consumers exercise such choices, if at section 2413(b) of the Consumer Credit Re- all; and porting Reform Act of 1996 (110 Stat. 3009– ‘‘(D) using information to directly respond to solicitations authorized or requested by (iv) whether such entities share or may 447), as section 625; share personally identifiable transaction or (2) by redesignating section 624 (regarding the consumer. ‘‘(b) NOTICE FOR OTHER PURPOSES PERMIS- experience information with affiliates for disclosures to FBI for counterintelligence SIBLE.—A notice or other disclosure that is purposes— purposes), as added by section 601(a) of the equivalent to the notice required by sub- (I) that are related to employment or hir- Intelligence Authorization Act for Fiscal section (a), and that is provided by a person ing, including whether the person that is the Year 1996 (Public Law 104–93; 109 Stat. 974) (15 described in subsection (a) to a consumer to- subject of such information is given notice of U.S.C. 1681u)), as section 626; and gether with disclosures required by any such sharing, and the specific uses of such (3) by inserting after section 623 the fol- other provision of law shall satisfy the re- shared information; or lowing: quirements of subsection (a).’’. (II) of general publication of such informa- ‘‘SEC. 624. AFFILIATE SHARING. (b) RULEMAKING REQUIRED.— tion; and ‘‘(a) SPECIAL RULE FOR SOLICITATION FOR (1) IN GENERAL.—The Federal banking (B) specifically examine the information PURPOSES OF MARKETING.— agencies, the National Credit Union Admin- sharing practices that financial institutions ‘‘(1) NOTICE.—Any person that receives istration, and the Federal Trade Commission and other creditors and users of consumer re- from another person related to it by common shall, with respect to the entities that are ports and their affiliates employ for the pur- ownership or affiliated by corporate control subject to their respective enforcement au- pose of making underwriting decisions or a communication of information that would thority under section 621 of the Fair Credit credit evaluations of consumers. be a consumer report, except for clauses (i) Reporting Act, and in coordination as de- (3) REPORTS.—

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(A) INITIAL REPORT.—Not later than 3 years (d) REPORT.— ‘‘(B) CONTENT.—Rules required by subpara- after the date of enactment of this Act, the (1) IN GENERAL.—Before the end of the 18- graph (A) shall address, but are not limited Federal banking agencies, the National Cred- month period beginning on the date of enact- to— it Union Administration, and the Federal ment of this Act, the Federal Trade Commis- ‘‘(i) the form, content, time, and manner of Trade Commission shall jointly submit a re- sion shall submit a detailed report on the delivery of any notice under this subsection; port to the Congress on the results of the ini- study conducted under this section to the ‘‘(ii) clarification of the meaning of terms tial study conducted in accordance with this Committee on Financial Services of the used in this subsection, including what cred- subsection, together with any recommenda- House of Representatives and the Committee it terms are material, and when credit terms tions for legislative or regulatory action. on Banking, Housing, and Urban Affairs of are materially less favorable; (B) FOLLOWUP REPORTS.—The Federal the Senate. ‘‘(iii) exceptions to the notice requirement banking agencies, the National Credit Union (2) CONTENTS.—The report submitted under under this subsection for classes of persons Administration, and the Federal Trade Com- paragraph (1) shall include— or transactions regarding which the agencies mission shall, not less frequently than once (A) the findings and conclusions of the determine that notice would not signifi- every 3 years following the date of submis- Commission; cantly benefit consumers; and sion of the initial report under subparagraph (B) recommendations to address specific ‘‘(iv) a model notice that may be used to (A), jointly submit a report to the Congress areas of concern that were identified in the comply with this subsection.’’. that, together with any recommendations study; and (b) RELATION TO STATE LAWS.—Section for legislative or regulatory action— (C) recommendations for legislative or ad- 625(b)(1) of the Fair Credit Reporting Act (15 (i) documents any changes in the areas of ministrative action that the Commission U.S.C. 1681t(b)(1), regarding relation to State study referred to in paragraph (2)(A) occur- may determine to be necessary to ensure laws), as so designated and amended by this ring since the date of submission of the pre- that credit and credit-based insurances score Act, is amended by adding at the end the fol- vious report; are used appropriately and fairly. lowing: (ii) identifies any changes in the practices TITLE III—ENHANCING THE ACCURACY ‘‘(I) section 615(j), relating to the duties of of financial institutions and other creditors OF CONSUMER REPORT INFORMATION users of consumer reports to provide notice and users of consumer reports in sharing SEC. 311. RISK-BASED PRICING NOTICE. with respect to terms in certain credit trans- consumer information with their affiliates actions;’’. for the purpose of making underwriting deci- (a) DUTIES OF USERS.—Section 615 of the sions or credit evaluations of consumers oc- Fair Credit Reporting Act (15 U.S.C. 1681m), SEC. 312. PROCEDURES TO ENHANCE THE ACCU- curring since the date of submission of the as amended by this Act, is amended by add- RACY AND COMPLETENESS OF IN- ing at the end the following: FORMATION FURNISHED TO CON- previous report; and SUMER REPORTING AGENCIES. (iii) examines the effects that changes de- ‘‘(j) DUTIES OF USERS IN CERTAIN CREDIT (a) ACCURACY GUIDELINES AND REGULA- scribed in clause (ii) have had, if any, on the TRANSACTIONS.— TIONS.—Section 623 of the Fair Credit Re- degree to which such affiliate sharing prac- ‘‘(1) IN GENERAL.—Subject to rules pre- tices reduce the need for financial institu- scribed as provided in paragraph (5), if any porting Act (15 U.S.C. 15 U.S.C. 1681s–2) is tions, creditors, and other users of consumer person uses a consumer report in connection amended by adding at the end the following: reports to rely on credit reports for such de- with a grant, extension, or other provision of ‘‘(e) ACCURACY GUIDELINES AND REGULA- cisions. credit on material terms that are materially TIONS REQUIRED.— (f) DEFINITIONS.—As used in this section— less favorable than the most favorable terms ‘‘(1) GUIDELINES.—The Federal banking (1) the terms ‘‘consumer’’, ‘‘consumer re- available to a substantial proportion of con- agencies, the National Credit Union Admin- port’’, ‘‘consumer reporting agency’’, ‘‘cred- sumers from or through that person, based in istration, and the Federal Trade Commission itor’’, ‘‘Federal banking agencies’’, and ‘‘fi- whole or in part on a consumer report, the shall, with respect to the entities that are nancial institution’’, have the same mean- person shall provide a notice to the con- subject to their respective enforcement au- ings as in section 603 of the Fair Credit Re- sumer in the form and manner required by thority under section 621, and in coordina- porting Act, as amended by this Act; and regulations prescribed in accordance with tion as described in paragraph (2)— (2) the term ‘‘affiliates’’ means persons this subsection. ‘‘(A) establish and maintain guidelines for that are related by common ownership or af- ‘‘(2) EXCEPTIONS.—No notice shall be re- use by each person that furnishes informa- filiated by corporate control. quired from a person under this subsection tion to a consumer reporting agency regard- SEC. 215. STUDY OF EFFECTS OF CREDIT SCORES if— ing the accuracy and completeness of the in- AND CREDIT-BASED INSURANCE ‘‘(A) the consumer applied for specific ma- formation relating to consumers that such SCORES ON AVAILABILITY AND AF- terial terms and was granted those terms, entities furnish to consumer reporting agen- FORDABILITY OF FINANCIAL PROD- unless those terms were initially specified by cies, and update such guidelines as often as UCTS. the person after the transaction was initi- necessary; and (a) DEFINED TERM.—As used in this section, ated by the consumer and after the person ‘‘(B) prescribe regulations requiring each the term ‘‘credit score’’ means a numerical obtained a consumer report; or person that furnishes information to a con- value or a categorization derived from a sta- ‘‘(B) the person has provided or will pro- sumer reporting agency to establish reason- tistical tool or modeling system used to pre- vide a notice to the consumer under sub- able policies and procedures for imple- dict the likelihood of certain credit or insur- section (a) in connection with the trans- menting the guidelines established pursuant ance behaviors, including default. (b) STUDY REQUIRED.—The Federal Trade action. to subparagraph (A). Commission shall conduct a study of— ‘‘(3) OTHER NOTICE NOT SUFFICIENT.—A per- ‘‘(2) COORDINATION.—Each agency required (1) the effects of the use of credit scores son that is required to provide a notice under to prescribe regulations under paragraph (1) and credit-based insurance scores on the subsection (a) cannot meet that requirement shall consult and coordinate with each other availability and affordability of financial by providing a notice under this subsection. such agency so that, to the extent possible, products and services, including credit cards, ‘‘(4) CONTENT AND DELIVERY OF NOTICE.—A the regulations prescribed by each such enti- mortgages, auto loans, and property and cas- notice under this subsection shall include, at ty are consistent and comparable with the ualty insurance; a minimum— regulations prescribed by each other such (2) the degree of correlation between the ‘‘(A) a statement informing the consumer agency. factors considered by credit score systems that the terms offered to the consumer were ‘‘(3) CRITERIA.—In developing the guide- and the quantifiable risks and actual losses set based on information from a consumer lines required by paragraph (1)(A), the agen- experienced by businesses, including the ex- report; cies described in paragraph (1) shall— tent to which each of the factors considered ‘‘(B) identification of the consumer report- ‘‘(A) identify patterns, practices, and spe- or otherwise taken into account by such sys- ing agency that furnished that report; cific forms of activity that can compromise tems correlated to risk or loss; ‘‘(C) a statement informing the consumer the accuracy and completeness of informa- (3) the extent to which the use of credit that the consumer may obtain a copy of a tion furnished to consumer reporting agen- scoring models, credit scores and credit- consumer report from that consumer report- cies; based insurance scores benefit or negatively ing agency without charge; and ‘‘(B) review the methods (including techno- impact persons based on geography, income, ‘‘(D) the contact information specified by logical means) used to furnish information ethnicity, race, color, religion, national ori- that consumer reporting agency for obtain- relating to consumers to consumer reporting gin, age, sex, marital status, or creed; and ing such consumer reports (including a toll- agencies; (4) the extent to which credit scoring sys- free telephone number established by the ‘‘(C) determine whether persons that fur- tems are used by businesses, the factors con- agency in the case of a consumer reporting nish information to consumer reporting sidered by such systems, and the effects of agency described in section 603(p)). agencies maintain and enforce policies to variables which are not considered by such ‘‘(5) RULEMAKING.— provide complete and accurate information systems. ‘‘(A) RULES REQUIRED.—The Federal Trade to consumer reporting agencies; and (c) PUBLIC PARTICIPATION.—The Federal Commission and the Board of Governors of ‘‘(D) examine the policies and processes Trade Commission shall seek public input the Federal Reserve System shall jointly that persons that furnish information to about the prescribed methodology and re- prescribe rules, in accordance with section consumer reporting agencies employ to con- search design of the study required by sub- 553 of title 5, United States Code, to carry duct reinvestigations and correct inaccurate section (b). out this subsection. information relating to consumers that has

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.076 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13919 been furnished to consumer reporting agen- 623(c) (other than with respect to the excep- SEC. 314. ONGOING AUDITS OF THE ACCURACY cies.’’. tion described in paragraph (4) of section OF CONSUMER REPORTS. (b) FURNISHER LIABILITY EXCEPTION.—Sec- 623(c))’’; and (a) AUDITS REQUIRED.—The Board of Gov- tion 623(a)(5) of the Fair Credit Reporting (B) in paragraph (5)— ernors of the Federal Reserve System (in Act (15 U.S.C. 1681s–2(a)(5)) is amended— (i) in each of subparagraphs (A) and (B), by this section referred to as ‘‘the Board’’) shall (1) by striking ‘‘A person’’ and inserting inserting after ‘‘section 623(a)(1)’’ each place conduct ongoing audits of the accuracy and the following: that term appears the following: ‘‘or a viola- completeness of information contained in ‘‘(A) IN GENERAL.—A person’’; tion described in any of paragraphs (2) consumer reports prepared or maintained by (2) by inserting ‘‘date of delinquency on through (4) of section 623(c) (other than with consumer reporting agencies. The Board the account, which shall be the’’ before respect to the exception described in para- shall independently verify the accuracy and ‘‘month’’; graph (4) of section 623(c))’’; and completeness of information contained in (3) by inserting ‘‘on the account’’ before (ii) by amending the paragraph heading to consumer reports by evaluating information ‘‘that immediately preceded’’; and read as follows: and data provided by consumer reporting (4) by adding at the end the following: ‘‘(5) LIMITATIONS ON STATE ACTIONS FOR agencies (as defined in section 603 of the Fair ‘‘(B) RULE OF CONSTRUCTION.—For purposes CERTAIN VIOLATIONS.—’’. Credit Reporting Act). of this paragraph only, and provided that the (b) SUBJECT MATTERS.—In conducting au- consumer does not dispute the information, (d) RULE OF CONSTRUCTION.—Nothing in dits under this section, the Board shall ex- a person that furnishes information on a de- this section, the amendments made by this amine— linquent account that is placed for collec- section, or any other provision of this Act (1) the accuracy and completeness of infor- tion, charged for profit or loss, or subjected shall be construed to affect any liability mation contained in consumer reports, in- to any similar action, complies with this under section 616 or 617 of the Fair Credit Re- cluding an analysis of the type of inaccurate paragraph, if— porting Act (15 U.S.C. 1681n, 1681o) that ex- or incomplete information, if any, that may ‘‘(i) the person reports the same date of de- isted on the day before the date of enact- have the most significant impact on the linquency as that provided by the creditor to ment of this Act. availability and terms of various credit prod- which the account was owed at the time at ucts offered to borrowers; and which the commencement of the delinquency SEC. 313. FEDERAL TRADE COMMISSION AND (2) the impact, if any, of incomplete and in- CONSUMER REPORTING AGENCY AC- accurate information on the credit and cred- occurred, if the creditor previously reported TION CONCERNING COMPLAINTS. that date of delinquency to a consumer re- it-based insurance scores that are most wide- porting agency; Section 611 of the Fair Credit Reporting ly used to determine borrower credit worthi- ‘‘(ii) the creditor did not previously report Act (15 U.S.C. 1681i) is amended by adding at ness and to make insurance underwriting the date of delinquency to a consumer re- the end the following: and rating decisions, including an analysis of porting agency, and the person establishes how, if at all, changes to credit scores result- ‘‘(e) TREATMENT OF COMPLAINTS AND RE- and follows reasonable procedures to obtain ing from inaccurate or incomplete credit re- PORT TO CONGRESS.— the date of delinquency from the creditor or porting information affect the availability ‘‘(1) IN GENERAL.—The Federal Trade Com- another reliable source and reports that date and terms of various credit products offered mission shall— as the date of delinquency; or to borrowers. ‘‘(A) compile all complaints that it re- ‘‘(iii) the creditor did not previously report (c) BIENNIAL REPORTS REQUIRED.— ceives that a file of a consumer that is main- the date of delinquency to a consumer re- (1) IN GENERAL.—The Board shall submit a tained by a consumer reporting agency de- porting agency and the date of delinquency report to the Committee on Banking, Hous- scribed in section 603(p) contains incomplete cannot be reasonably obtained as provided in ing, and Urban Affairs of the Senate and the or inaccurate information, with respect to clause (ii), the person establishes and follows Committee on Financial Services of the which, the consumer appears to have dis- reasonable procedures to ensure the date re- House of Representatives at the end of the 2- puted the completeness or accuracy with the ported as the date of delinquency precedes year period beginning on the date of enact- consumer reporting agency or otherwise uti- the date on which the account is placed for ment of this Act. Thereafter, the Board shall lized the procedures provided by subsection collection, charged to profit or loss, or sub- conduct additional audits and submit addi- (a); and jected to any similar action, and reports tional reports once every 2 years. ‘‘(B) transmit each such complaint to each such date to the credit reporting agency.’’. (2) CONTENTS.—Each report submitted consumer reporting agency involved. (c) LIABILITY AND ENFORCEMENT.— under this subsection shall contain a de- ‘‘(2) EXCLUSION.—Complaints received or (1) CIVIL LIABILITY.—Section 623 of the Fair tailed summary of the findings and conclu- obtained by the Federal Trade Commission Credit Reporting Act (15 U.S.C. 1681s–2) is sions of the Board with respect to the audits pursuant to its investigative authority under amended by striking subsections (c) and (d) required by this section, and such rec- the Federal Trade Commission Act shall not and inserting the following: ommendations for legislative and adminis- ‘‘(c) LIMITATION ON LIABILITY.—Except as be subject to this paragraph (1). trative action as the Board may determine provided in section 621(c)(1)(B), sections 616 ‘‘(3) AGENCY RESPONSIBILITIES.—Each con- to be appropriate. and 617 do not apply to any violation of— sumer reporting agency described in section (d) PROVISION OF REPORTS TO THE BOARD ‘‘(1) subsection (a) of this section; 603(p) that receives a complaint transmitted FOR PURPOSES OF ANALYSIS.—Section 604(d) ‘‘(2) subsection (e) of this section, except by the Federal Trade Commission pursuant of the Fair Credit Reporting Act (12 U.S.C. that nothing in this paragraph shall limit, to paragraph (1) shall— 1681b(d)) is amended to read as follows: expand, or otherwise affect liability under ‘‘(A) review each such complaint to deter- ‘‘(d) FURNISHING CONSUMER REPORTS FOR section 616 or 617, as applicable, for viola- mine whether all legal obligations imposed ACCURACY OR COMPLIANCE AUDITS.—A con- tions of subsection (b) of this section; on the consumer reporting agency under this sumer reporting agency shall provide con- ‘‘(3) subsection (e) or (f) of section 615; or title (including any obligation imposed by an sumer reports to the Board of Governors of ‘‘(4) subparagraph (A) of subsection (b)(2) of applicable court or administrative order) the Federal Reserve System, upon request, this section that is based on the development have been met with respect to the subject for the purpose of conducting an accuracy or of procedures required by that subparagraph, matter of the complaint; compliance audit in accordance with section except that refurnishing information other- ‘‘(B) provide reports on a regular basis to 314 of the National Consumer Credit Report- wise in violation of subsection (b) shall be the Commission regarding the determina- ing System Improvement Act of 2003.’’. subject to liability under sections 616 and tions of and actions taken by the consumer SEC. 315. IMPROVED DISCLOSURE OF THE RE- 617, as applicable, to the same extent as such reporting agency, if any, in connection with SULTS OF REINVESTIGATION. a refurnishing violation was subject to such its review of such complaints; and (a) IN GENERAL.—Section 611(a)(5)(A) of the liability on the day before the date of enact- ‘‘(C) maintain, for a reasonable time pe- Fair Credit Reporting Act (15 U.S.C. 1681i) is ment of the National Consumer Credit Re- riod, records regarding the disposition of amended by striking ‘‘shall’’ and all that fol- porting System Improvement Act of 2003. each such complaint that is sufficient to lows through the end of the subparagraph, ‘‘(d) LIMITATION ON ENFORCEMENT.—The demonstrate compliance with this sub- and inserting the following: ‘‘shall— provisions of law described in paragraphs (1) section. ‘‘(i) promptly delete that item of informa- through (4) of subsection (c) (other than with ‘‘(4) RULEMAKING AUTHORITY.—The Federal tion from the file of the consumer, or modify respect to the exceptions described in para- Trade Commission may prescribe regulations that item of information, as appropriate, graphs (2) and (4) of subsection (c)) shall be in accordance with the requirements of sec- based on the results of the reinvestigation; enforced exclusively as provided under sec- tion 553 of title 5, United States Code, as ap- and tion 621 by the Federal agencies and officials propriate to implement this subsection. ‘‘(ii) promptly notify the furnisher of that and the State officials identified in section ‘‘(5) ANNUAL REPORT.—The Federal Trade information that the information has been 621.’’. Commission shall submit to the Committee modified or deleted from the file of the con- (2) STATE ACTIONS.—Section 621(c) of the on Banking, Housing, and Urban Affairs of sumer.’’. Fair Credit Reporting Act (15 U.S.C. 1681s(c)) the Senate and the Committee on Financial (b) FURNISHER REQUIREMENTS RELATING TO is amended— Services of the House of Representatives an INACCURATE, INCOMPLETE, OR UNVERIFIABLE (A) in paragraph (1)(B)(ii), by striking ‘‘of annual report regarding information gath- INFORMATION.—Section 623(b)(1) of the Fair section 623(a)’’ and inserting ‘‘described in ered by the Commission under this sub- Credit Reporting Act (15 U.S.C. 1681s–2(b)(1)) any of paragraphs (1) through (4) of section section.’’. is amended—

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.076 S04PT1 S13920 CONGRESSIONAL RECORD — SENATE November 4, 2003 (1) in subparagraph (C), by striking ‘‘and’’ (i) the extent to which requiring additional ‘‘(B) if furnished for employment purposes at the end; and points of such identifying information to or in connection with a credit transaction— (2) in subparagraph (D), by striking the pe- match would— ‘‘(i) the information to be furnished is rel- riod at the end and inserting the following: (I) enhance the accuracy of credit reports; evant to process or effect the employment or ‘‘; and and credit transaction; and ‘‘(E) if an item of any information disputed (II) combat the provision of incorrect con- ‘‘(ii) the consumer provides specific writ- by a consumer is found to be inaccurate or sumer reports to users; ten consent for the furnishing of the report incomplete or cannot be verified after any (ii) the extent to which requiring an exact that describes in clear and conspicuous lan- reinvestigation under paragraph (1), prompt- match of the first and last name, social secu- guage the use for which the information will ly delete that item of information from the rity number, and address and ZIP Code of the be furnished; or furnisher’s records or modify that item of in- consumer would enhance the likelihood of ‘‘(C) such information is restricted or re- formation, as appropriate, based on the re- increasing credit report accuracy; and ported using codes that do not identify, or sults of the reinvestigation.’’. (iii) the effects of allowing consumer re- provide information sufficient to infer, the SEC. 316. RECONCILING ADDRESSES. porting agencies to use partial matches of specific provider or the nature of such serv- Section 605 of the Fair Credit Reporting social security numbers and name recogni- ices, products, or devices to a person other Act (15 U.S.C. 1681c), as amended by this Act, tion software on the accuracy of credit re- than the consumer, unless the report is being is amended by adding at the end the fol- ports; provided to an insurance company for a pur- lowing: (B) requiring notification to consumers pose relating to engaging in the business of when negative information has been added to insurance, other than property and casualty ‘‘(h) NOTICE OF DISCREPANCY IN ADDRESS.— their credit reports, including— insurance. ‘‘(1) IN GENERAL.—If a person has requested a consumer report relating to a consumer (i) the potential impact of such notifica- ‘‘(2) LIMITATION ON CREDITORS.—Except as permitted pursuant to paragraph (3)(C) or from a consumer reporting agency described tion on the ability of consumers to identify errors on their credit reports; and regulations prescribed under paragraph in section 603(p), the request includes an ad- (ii) the potential impact of such notifica- (5)(A), a creditor shall not obtain or use med- dress for the consumer that substantially tion on the ability of consumers to remove ical information pertaining to a consumer in differs from the addresses in the file of the fraudulent information from their credit re- connection with any determination of the consumer, and the agency provides a con- ports; consumer’s eligibility, or continued eligi- sumer report in response to the request, the (C) the effects of requiring that a consumer bility, for credit. consumer reporting agency shall notify the who has experienced an adverse action based ‘‘(3) ACTIONS AUTHORIZED BY FEDERAL LAW, requester of the existence of the discrepancy. on a credit report receives a copy of the INSURANCE ACTIVITIES AND REGULATORY DE- ‘‘(2) REGULATIONS.— same credit report that the creditor relied on TERMINATIONS.—Section 603(d)(3) shall not be ‘‘(A) REGULATIONS REQUIRED.—The Federal in taking the adverse action, including— construed so as to treat information or any banking agencies, the National Credit Union (i) the extent to which providing such re- communication of information as a con- Administration, and the Federal Trade Com- ports to consumers would increase the abil- sumer report if the information or commu- mission shall, with respect to the entities ity of consumers to identify errors in their nication is disclosed— that are subject to their respective enforce- credit reports; and ‘‘(A) in connection with the business of in- ment authority under section 621, and in co- (ii) the extent to which providing such re- surance or annuities, including the activities ordination as described in subparagraph (B), ports to consumers would increase the abil- described in section 18B of the model Privacy prescribe regulations providing guidance re- ity of consumers to remove fraudulent infor- of Consumer Financial and Health Informa- garding reasonable policies and procedures mation from their credit reports; tion Regulation issued by the National Asso- that a user of a consumer report should em- (D) any common financial transactions ciation of Insurance Commissioners (as in ef- ploy when such user has received a notice of that are not generally reported to the con- fect on January 1, 2003); discrepancy under paragraph (1). sumer reporting agencies, but would provide ‘‘(B) for any purpose permitted without au- ‘‘(B) COORDINATION.—Each agency required useful information in determining the credit thorization under the Standards for Individ- to prescribe regulations under subparagraph worthiness of consumers; and ually Identifiable Health Information pro- (A) shall consult and coordinate with each (E) any actions that might be taken within mulgated by the Department of Health and other such agency so that, to the extent pos- a voluntary reporting system to encourage Human Services pursuant to the Health In- sible, the regulations prescribed by each the reporting of the types of transactions de- surance Portability and Accountability Act such entity are consistent and comparable scribed in subparagraph (D). of 1996, or referred to under section 1179 of with the regulations prescribed by each (3) COSTS AND BENEFITS.—With respect to such Act, or described in section 502(e) of other such agency. each area of study described in paragraph (2), Public Law 106–102; or ‘‘(C) POLICIES AND PROCEDURES TO BE IN- the Federal Trade Commission shall consider ‘‘(C) as otherwise determined to be nec- CLUDED.—The regulations prescribed under the extent to which such requirements would essary and appropriate, by regulation or subparagraph (A) shall describe reasonable benefit consumers, balanced against the cost order and subject to paragraph (6), by the policies and procedures for use by a user of a of implementing such provisions. Federal Trade Commission, any Federal consumer report— (b) REPORT REQUIRED.—Not later than 270 banking agency or the National Credit Union ‘‘(i) to form a reasonable belief that the days after the date of enactment of this Act, Administration (with respect to any finan- user knows the identity of the person to the chairman of the Federal Trade Commis- cial institution subject to the jurisdiction of whom the consumer report pertains; and sion shall submit a report to the Committee such agency or Administration under para- ‘‘(ii) if the user establishes a continuing re- on Banking, Housing, and Urban Affairs of graph (1), (2), or (3) of section 621(b), or the lationship with the consumer, and the user the Senate and the Committee on Financial applicable State insurance authority (with regularly and in the ordinary course of busi- Services of the House of Representatives respect to any person engaged in providing ness furnishes information to the consumer containing a detailed summary of the find- insurance or annuities). reporting agency from which the notice of ings and conclusions of the study under this ‘‘(4) LIMITATION ON REDISCLOSURE OF MED- discrepancy pertaining to the consumer was section, together with such recommenda- ICAL INFORMATION.—Any person that receives obtained, to reconcile the address of the con- tions for legislative or administrative ac- medical information pursuant to paragraph sumer with the consumer reporting agency tions as may be appropriate. (1) or (3) shall not disclose such information by furnishing such address to such consumer TITLE IV—LIMITING THE USE AND SHAR- to any other person, except as necessary to reporting agency as part of information reg- ING OF MEDICAL INFORMATION IN THE carry out the purpose for which the informa- ularly furnished by the user for the period in FINANCIAL SYSTEM tion was initially disclosed, or as otherwise which the relationship is established.’’. SEC. 411. PROTECTION OF MEDICAL INFORMA- permitted by statute, regulation, or order. SEC. 317. FTC STUDY OF ISSUES RELATING TO TION IN THE FINANCIAL SYSTEM. ‘‘(5) REGULATIONS AND EFFECTIVE DATE FOR THE FAIR CREDIT REPORTING ACT. (a) IN GENERAL.—Section 604(g) of the Fair PARAGRAPH (2).— (a) STUDY REQUIRED.— Credit Reporting Act (15 U.S.C. 1681b(g)) is ‘‘(A) REGULATIONS REQUIRED.—Each Fed- (1) IN GENERAL.—The Federal Trade Com- amended to read as follows: eral banking agency and the National Credit mission shall conduct a study on ways to im- ‘‘(g) PROTECTION OF MEDICAL INFORMA- Union Administration shall, subject to para- prove the operation of the Fair Credit Re- TION.— graph (6) and after notice and opportunity porting Act. ‘‘(1) LIMITATION ON CONSUMER REPORTING for comment, prescribe regulations that per- (2) AREAS FOR STUDY.—In conducting the AGENCIES.—A consumer reporting agency mit transactions under paragraph (2) that study under paragraph (1), the Federal Trade shall not furnish for employment purposes, are determined to be necessary and appro- Commission shall review— or in connection with a credit or insurance priate to protect legitimate operational, (A) the efficacy of increasing the number transaction, a consumer report that contains transactional, risk, consumer, and other of points of identifying information that a medical information about a consumer, un- needs, consistent with the intent of para- credit reporting agency is required to match less— graph (2) to restrict the use of medical infor- to ensure that a consumer is the correct in- ‘‘(A) if furnished in connection with an in- mation for inappropriate purposes. dividual to whom a consumer report relates surance transaction, the consumer affirma- ‘‘(B) FINAL REGULATIONS REQUIRED.—The before releasing a consumer report to a user, tively consents to the furnishing of the re- Federal banking agencies and the National including— port; Credit Union Administration shall issue the

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.076 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13921 regulations required under subparagraph (A) Reporting Act (15 U.S.C. 1681c(b)) is amended President from among the administrative in final form before the end of the 6-month by striking ‘‘The provisions of subsection heads of any other Federal agencies, depart- period beginning on the date of enactment of (a)’’ and inserting ‘‘The provisions of para- ments, or other Government entities, whom the National Consumer Credit Reporting graphs (1) through (5) of subsection (a)’’. the President determines to be engaged in a System Improvement Act of 2003. (d) COORDINATION WITH OTHER LAWS.—No serious effort to improve financial literacy ‘‘(6) COORDINATION WITH OTHER LAWS.—No provision of any amendment made by this and education. provision of this subsection shall be con- section shall be construed as altering, affect- (2) ALTERNATES.—Each member of the strued as altering, affecting, or superseding ing, or superseding the applicability of any Commission may designate an alternate if the applicability of any other provision of other provision of Federal law relating to the member is unable to attend a meeting of Federal law relating to medical confiden- medical confidentiality. the Commission. Such alternate shall be an tiality.’’. (e) FTC REGULATION OF CODING OF TRADE individual who exercises significant decision- (b) RESTRICTION ON SHARING OF MEDICAL IN- NAMES.—Section 621 of the Fair Credit Re- making authority. FORMATION.—Section 603(d) of the Fair Credit porting Act (15 U.S.C. 1681s), as amended by (d) CHAIRPERSON.—The Secretary of the Reporting Act (15 U.S.C. 1681a(d)) is amend- this Act, is amended by adding at the end Treasury shall serve as the Chairperson. ed— the following: (e) MEETINGS.—The Commission shall hold, (1) in paragraph (2), by striking ‘‘The ‘‘(g) FTC REGULATION OF CODING OF TRADE at the call of the Chairperson, at least 1 term’’ and inserting ‘‘Except as provided in NAMES.—If the Federal Trade Commission meeting every 4 months. All such meetings paragraph (3), the term’’; and determines that a person described in para- shall be open to the public. The Commission (2) by adding at the end the following new graph (6) of section 623(a) has not met the re- may hold, at the call of the Chairperson, paragraph: quirements of such paragraph, the Commis- such other meetings as the Chairperson sees ‘‘(3) RESTRICTION ON SHARING OF MEDICAL sion shall take action to ensure the person’s fit to carry out this title. INFORMATION.—Except for information or any compliance with such paragraph, which may (f) QUORUM.—A majority of the members of communication of information disclosed as include issuing model guidance or pre- the Commission shall constitute a quorum, provided in section 604(g)(3), the exclusions scribing reasonable policies and procedures but a lesser number of members may hold in paragraph (2) shall not apply with respect as necessary to ensure that such person com- hearings. (g) INITIAL MEETING.—The Commission to information disclosed to any person re- plies with such paragraph.’’. shall hold its first meeting not later than 60 lated by common ownership or affiliated by (f) TECHNICAL AND CONFORMING AMEND- days after the date of enactment of this Act. corporate control, if— MENTS.—Section 604(g) of the Fair Credit Re- SEC. 514. DUTIES OF THE COMMISSION. ‘‘(A) the information is medical informa- porting Act (15 U.S.C. 1681b(g)), as amended (a) DUTIES.— tion; or by section 411 of this Act, is amended— (1) IN GENERAL.—The Commission, through ‘‘(B) the information is an individualized (1) in paragraph (1), by inserting ‘‘(other the authority of the members referred to in list or description based on a consumer’s than medical contact information treated in section 513(c), shall take such actions as it payment transactions for medical products the manner required under section 605(a)(6))’’ deems necessary to streamline, improve, or or services, or an aggregate list of identified after ‘‘a consumer report that contains med- augment the financial literacy and edu- consumers based on payment transactions ical information’’; and cation programs, grants, and materials of for medical products or services.’’. (2) in paragraph (2), by inserting ‘‘(other the Federal Government, including curricula (c) EFFECTIVE DATES.—This section shall than medical information treated in the for all Americans. take effect at the end of the 180-day period manner required under section 605(a)(6))’’ (2) AREAS OF EMPHASIS.—To improve finan- beginning on the date of enactment of this after ‘‘a creditor shall not obtain or use med- cial literacy and education, the Commission Act, except that paragraph (2) of section ical information’’. shall emphasize, among other elements, 604(g) of the Fair Credit Reporting Act (as (g) EFFECTIVE DATE.—The amendments amended by subsection (a)) shall take effect made by this section shall take effect at the basic personal income and household money on the later of— end of the 15-month period beginning on the management and planning skills, including (1) the end of the 90-day period beginning date of enactment of this Act. how to— on the date on which the regulations re- (A) create household budgets, initiate sav- TITLE V—FINANCIAL LITERACY AND ings plans, and make strategic investment quired under paragraph (5)(B) of such section EDUCATION IMPROVEMENT 604(g) (as added by subsection (a) of this sec- decisions for education, retirement, home SEC. 511. SHORT TITLE. tion) are issued in final form; or ownership, wealth building, or other savings This title may be cited as the ‘‘Financial (2) the date specified in the regulations re- goals; Literacy and Education Improvement Act’’. ferred to in paragraph (1). (B) manage spending, credit, and debt, in- SEC. 512. DEFINITIONS. cluding credit card debt, effectively; SEC. 412. CONFIDENTIALITY OF MEDICAL CON- TACT INFORMATION IN CONSUMER As used in this title— (C) increase awareness of the availability REPORTS. (1) the term ‘‘Chairperson’’ means the and significance of credit reports and credit (a) DUTIES OF MEDICAL INFORMATION FUR- Chairperson of the Financial Literacy and scores in obtaining credit, the importance of NISHERS.—Section 623(a) of the Fair Credit Education Commission; and their accuracy (and how to correct inaccura- Reporting Act (15 U.S.C. 1681s–2(a)) is amend- (2) the term ‘‘Commission’’ means the Fi- cies), their effect on credit terms, and the ef- ed by adding at the end the following: nancial Literacy and Education Commission fect common financial decisions may have ‘‘(6) DUTY TO PROVIDE NOTICE OF STATUS AS established under section 513. on credit scores; MEDICAL INFORMATION FURNISHER.—A person SEC. 513. ESTABLISHMENT OF FINANCIAL LIT- (D) ascertain fair and favorable credit whose primary business is providing medical ERACY AND EDUCATION COMMIS- terms; services, products, or devices, or the person’s SION. (E) avoid abusive, predatory, or deceptive agent or assignee, who furnishes information (a) IN GENERAL.—There is established a credit offers and financial products; to a consumer reporting agency on a con- commission to be known as the ‘‘Financial (F) understand, evaluate, and compare fi- sumer shall be considered a medical informa- Literacy and Education Commission’’. nancial products, services, and opportuni- tion furnisher for purposes of this title, and (b) PURPOSE.—The Commission shall serve ties; shall notify the agency of such status.’’. to improve the financial literacy and edu- (G) understand resources that ought to be (b) RESTRICTION OF DISSEMINATION OF MED- cation of persons in the United States. easily accessible and affordable, and that in- ICAL CONTACT INFORMATION.—Section 605(a) (c) MEMBERSHIP.— form and educate investors as to their rights of the Fair Credit Reporting Act (15 U.S.C. (1) COMPOSITION.—The Commission shall be and avenues of recourse when an investor be- 1681c(a)) is amended by adding at the end the composed of— lieves his or her rights have been violated by following: (A) the Secretary of the Treasury; unprofessional conduct of market inter- ‘‘(6) The name, address, and telephone (B) the respective head of each of the Fed- mediaries; and number of any medical information fur- eral banking agencies (as defined in section (H) improve financial literacy and edu- nisher that has notified the agency of its sta- 3 of the Federal Deposit Insurance Act), the cation through all other related skills. tus, unless— National Credit Union Administration, the (b) WEBSITE.— ‘‘(A) such name, address, and telephone Securities and Exchange Commission, each (1) IN GENERAL.—The Commission shall es- number are restricted or reported using of the Departments of Education, Agri- tablish and maintain a website, such as the codes that do not identify, or provide infor- culture, Defense, Health and Human Serv- domain name ‘‘FinancialLiteracy.gov’’, or a mation sufficient to infer, the specific pro- ices, Housing and Urban Development, similar domain name. vider or the nature of such services, prod- Labor, and Veterans Affairs, the Federal (2) PURPOSES.—The website established ucts, or devices to a person other than the Trade Commission, the General Services Ad- under paragraph (1) shall— consumer; or ministration, the Small Business Adminis- (A) serve as a clearinghouse of information ‘‘(B) the report is being provided to an in- tration, the Social Security Administration, about Federal financial literacy and edu- surance company for a purpose relating to the Commodity Futures Trading Commis- cation programs; engaging in the business of insurance other sion, and the Office of Personnel Manage- (B) provide a coordinated entry point for than property and casualty insurance.’’. ment; and accessing information about all Federal pub- (c) NO EXCEPTIONS ALLOWED FOR DOLLAR (C) at the discretion of the President, not lications, grants, and materials promoting AMOUNTS.—Section 605(b) of the Fair Credit more than 5 individuals appointed by the enhanced financial literacy and education;

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(C) offer information on all Federal grants (A) information concerning the implemen- (2) DETAIL OF GOVERNMENT EMPLOYEES.— to promote financial literacy and education, tation of the duties of the Commission under Any Federal Government employee may be and on how to target, apply for, and receive subsections (a) through (g); detailed to the Commission without reim- a grant that is most appropriate under the (B) an assessment of the success of the bursement, and such detail shall be without circumstances; Commission in implementing the national interruption or loss of civil service status or (D) as the Commission considers appro- strategy developed under subsection (f); privilege. priate, feature website links to efforts that (C) an assessment of the availability, utili- SEC. 517. STUDY BY THE COMPTROLLER GEN- have no commercial content and that feature zation, and impact of Federal financial lit- ERAL. information about financial literacy and eracy and education materials; Not later than 3 years after the date of en- education programs, materials, or cam- (D) information concerning the content actment of this Act, the Comptroller General paigns; and and public use of— of the United States shall submit a report to (E) offer such other information as the (i) the website established under sub- Congress assessing the effectiveness of the Commission finds appropriate to share with section (b); and Commission in promoting financial literacy the public in the fulfillment of its purpose. (ii) the toll-free telephone number estab- and education. (c) TOLL-FREE HOTLINE.—The Commission lished under subsection (c); SEC. 518. AUTHORIZATION OF APPROPRIATIONS. shall establish a toll-free telephone number (E) a brief survey of the financial literacy There are authorized to be appropriated to that shall be made available to members of and education materials developed under the Commission such sums as may be nec- the public seeking information about issues subsection (d), and data regarding the dis- essary to carry out this title, including ad- pertaining to financial literacy and edu- semination and impact of such materials, as ministrative expenses of the Commission. cation. measured by improved financial decision (d) DEVELOPMENT AND DISSEMINATION OF TITLE VI—RELATION TO STATE LAW making; MATERIALS.—The Commission shall— (F) a brief summary of any hearings con- SEC. 611. RELATION TO STATE LAW. (1) develop materials to promote financial ducted by the Commission, including a list of Section 625(d) of the Fair Credit Reporting literacy and education; and witnesses who testified at such hearings; Act (15 U.S.C. 1681t(d), regarding relation to (2) disseminate such materials to the gen- State laws), as so designated by section 214 eral public. (G) information about the activities of the Commission planned for the next fiscal year; of this Act, is amended— (e) COORDINATION OF EFFORTS.—The Com- (1) by striking paragraph (2); mission shall take such steps as are nec- (H) a summary of all Federal financial lit- eracy and education activities targeted to (2) by striking ‘‘(c)—’’ and all that follows essary to coordinate and promote financial through ‘‘do not affect’’ and inserting ‘‘(c) do literacy and education efforts at the State communities that have historically lacked access to financial literacy materials and not affect’’; and and local level, including promoting partner- (3) by striking ‘‘1996; and’’ and inserting ships among Federal, State, and local gov- education, and have been underserved by the ‘‘1996.’’. ernments, nonprofit organizations, and pri- mainstream financial systems; and vate enterprises. (I) such other materials relating to the du- TITLE VII—MISCELLANEOUS (f) NATIONAL STRATEGY.— ties of the Commission as the Commission SEC. 711. CLERICAL AMENDMENTS. (1) IN GENERAL.—The Commission shall— deems appropriate. (a) SHORT TITLE.—Section 601 of the Fair (A) not later than 18 months after the date (3) INITIAL REPORT.—The initial report Credit Reporting Act (15 U.S.C. 1601 note) is of enactment of this Act, develop a national under paragraph (1) shall include informa- amended by striking ‘‘the Fair Credit Re- strategy to promote basic financial literacy tion regarding all Federal programs, mate- porting Act.’’ and inserting ‘‘the ‘Fair Credit and education among all American con- rials, and grants which seek to improve fi- Reporting Act’.’’. sumers; and nancial literacy, and assess the effectiveness (b) SECTION 604.—Section 604(a) of the Fair (B) coordinate Federal efforts to imple- of such programs. Credit Reporting Act (15 U.S.C. 1681b(a)) is ment the strategy developed under subpara- (i) TESTIMONY.—The Commission shall pro- amended in paragraphs (1) through (5), other graph (A). vide, upon request, testimony by the Chair- than subparagraphs (E) and (F) of paragraph (2) STRATEGY.—The strategy to promote person to the Committee on Banking, Hous- (3), by moving each margin 2 ems to the basic financial literacy and education re- ing, and Urban Affairs of the Senate and the right. quired to be developed under paragraph (1) Committee on Financial Services of the (c) SECTION 605.— shall provide for— House of Representatives. (1) Section 605(a)(1) of the Fair Credit Re- (A) participation by State and local gov- SEC. 515. POWERS OF THE COMMISSION. porting Act (15 U.S.C. 1681c(a)(1)) is amended ernments and private, nonprofit, and public (a) HEARINGS.—The Commission may hold by striking ‘‘(1) cases’’ and inserting ‘‘(1) institutions in the creation and implementa- such hearings, sit and act at such times and Cases’’. tion of such strategy; places, take such testimony, and receive (2)(A) Section 5(1) of Public Law 105–347 (B) the development of methods— such evidence as the Commission considers (112 Stat. 3211) is amended by striking (i) to increase the general financial edu- advisable to carry out this title. ‘‘Judgments which’’ and inserting ‘‘judg- cation level of current and future consumers (b) INFORMATION FROM FEDERAL AGEN- ments which’’. of financial services and products; and CIES.—The Commission may secure directly (B) The amendment made by subparagraph (ii) to enhance the general understanding from any Federal department or agency such (A) shall be deemed to have the same effec- of financial services and products; information as the Commission considers tive date as section 5(1) of Public Law 105–347 (C) review of Federal activities designed to necessary to carry out this title. Upon re- (112 Stat. 3211). promote financial literacy and education, quest of the Chairperson, the head of such (d) SECTION 609.—Section 609(a) of the Fair and development of a plan to improve coordi- department or agency shall furnish such in- Credit Reporting Act (15 U.S.C. 1681g(a)) is nation of such activities; and formation to the Commission. amended— (D) the identification of areas of overlap (c) PERIODIC STUDIES.—The Commission (1) in paragraph (2), by moving the margin and duplication among Federal financial lit- may conduct periodic studies regarding the 2 ems to the right; and eracy and education activities and proposed state of financial literacy and education in (2) in paragraph (3)(C), by moving the mar- means of eliminating any such overlap and the United States, as the Commission deter- gins 2 ems to the left. duplication. mines appropriate. (e) SECTION 617.—Section 617(a)(1) of the (3) NATIONAL STRATEGY REVIEW.—The Com- SEC. 516. COMMISSION PERSONNEL MATTERS. Fair Credit Reporting Act (15 U.S.C. mission shall, not less than annually, review 1681o(a)(1)) is amended by adding ‘‘and’’ at (a) COMPENSATION OF MEMBERS.—Each the national strategy developed under this the end. subsection and make such changes and rec- member of the Commission shall serve with- out compensation in addition to that re- (f) SECTION 621.—Section 621(b)(1)(B) of the ommendations as it deems necessary Fair Credit Reporting Act (15 U.S.C. (g) CONSULTATION.—The Commission shall ceived for their service as an officer or em- ployee of the United States. 1681s(b)(1)(B)) is amended by striking ‘‘25(a)’’ actively consult with a variety of represent- and inserting ‘‘25A’’. atives from private and nonprofit organiza- (b) TRAVEL EXPENSES.—The members of (g) TITLE 31.—Section 5318 of title 31, the Commission shall be allowed travel ex- tions and State and local agencies, as deter- United States Code, is amended by redesig- penses, including per diem in lieu of subsist- mined appropriate by the Commission. nating the second item designated as sub- (h) REPORTS.— ence, at rates authorized for employees of section (l) (relating to applicability of rules) (1) IN GENERAL.—Not later than 18 months agencies under subchapter I of chapter 57 of as subsection (m). after the date of the first meeting of the title 5, United States Code, while away from (h) CONFORMING AMENDMENT.—Section Commission, and annually thereafter, the their homes or regular places of business in 2411(c) of Public Law 104–208 (110 Stat. 3009– Commission shall issue a report to the Com- the performance of services for the Commis- 445) is repealed. mittee on Banking, Housing, and Urban Af- sion. fairs of the Senate and the Committee on Fi- (c) ASSISTANCE.— SA 2054. Mrs. FEINSTEIN (for her- nancial Services of the House of Representa- (1) IN GENERAL.—The Director of the Office tives on the progress of the Commission in of Financial Education of the Department of self, Mrs. BOXER, Mr. HARKIN, Mr. FEIN- carrying out this title. the Treasury shall provide assistance to the GOLD, Mr. DURBIN, Mr. LAUTENBERG, (2) CONTENTS.—The report required under Commission, upon request of the Commis- and Mr. NELSON of Florida) proposed an paragraph (1) shall include— sion, without reimbursement. amendment to the bill S. 1753, to

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.076 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13923 amend the Fair Credit Reporting Act ‘‘(4) to protect the confidentiality or secu- tories and the information is compiled in order to prevent identity theft, to rity of an affiliate’s records pertaining to the strictly to complete other real estate ap- improve the use of and consumer ac- consumer, the service or product, or the praisals and is not used for any other pur- cess to consumer reports, to enhance transaction therein; pose; ‘‘(5) to protect against or prevent actual or the accuracy of consumer reports, to ‘‘(16) if the information is released as re- potential fraud, identity theft, unauthorized quired by title III of the Federal United and limit the sharing of certain consumer transactions, claims, or other liability; Strengthening America by Providing Appro- information, to improve financial edu- ‘‘(6) for required institutional risk control, priate Tools Required to Intercept and Ob- cation and literacy, and for other pur- or for resolving customer disputes or inquir- struct Terrorism Act of 2001 (the USA PA- poses; as follows: ies; TRIOT ACT); or Strike section 214 and insert the following: ‘‘(7) to persons holding a legal or beneficial ‘‘(17) if the information is released in con- SEC. 214. AFFILIATE SHARING. interest relating to the consumer, including nection with a written agreement between a (a) LIMITATION.—The Fair Credit Reporting for purposes of debt collection; consumer and a broker-dealer registered Act (15 U.S.C. 1601 et seq.) is amended— ‘‘(8) to persons acting in a fiduciary or rep- under the Securities Exchange Act of 1934, or (1) by redesignating section 624, as so des- resentative capacity on behalf of the con- an investment adviser registered under the ignated by section 2413(b) of the Consumer sumer; Investment Advisers Act of 1940, to provide Credit Reporting Reform Act of 1996 (110 ‘‘(9) to provide information to insurance investment management services, portfolio Stat. 3009–447), regarding relation to State rate advisory organizations, guaranty funds advisory services, or financial planning, and laws, as section 625; or agencies, applicable rating agencies, per- the information is released for the sole pur- (2) by redesignating section 624, as added sons assessing an affiliate’s compliance with pose of providing the products and services by section 601(a) of the Intelligence Author- industry standards, and an affiliate’s attor- covered by that agreement. neys, accountants, and auditors; ization Act for Fiscal Year 1996 (Public Law ‘‘(c) NO EFFECT ON EXISTING LAW.—Nothing ‘‘(10) to the extent specifically permitted 104–93; 109 Stat. 974) (15 U.S.C. 1681u)), regard- in this section is intended to affect any pro- or required under other provisions of law and ing disclosures to FBI for counterintel- vision of law in effect on the date of enact- in accordance with the Right to Financial ligence purposes, as section 626; and ment of the National Consumer Credit Re- Privacy Act of 1978, to law enforcement (3) by inserting after section 623 the fol- porting System Improvement Act of 2003 re- lowing: agencies (including a Federal functional reg- ulator, the Secretary of the Treasury with lating to access by law enforcement agencies ‘‘SEC. 624. AFFILIATE SHARING. to information held by financial institutions. ‘‘(a) OPT-OUT FOR AFFILIATE SHARING.— respect to subchapter II of chapter 53 of title ‘‘(d) LIMIT ON REUSE AND REDISCLOSURE.—A Any persons that are related by common 31, United States Code, and chapter 2 of title person that receives information pursuant ownership or affiliated by corporate control, I of Public Law 91–508 (12 U.S.C. 1951–1959), a and that share information that would be a State insurance authority, the Federal Trade to— consumer report except for clause (i) or (ii) Commission), a self-regulatory organization, ‘‘(1) paragraph (1) of subsection (b) shall of section 603(d)(2), shall provide to each con- as defined in section 3 of the Securities Ex- not directly or indirectly further disclose sumer to which the information relates, a change Act of 1934, or for an investigation on such information, except as permitted under notice that— a matter related to public safety; subsection (b); and ‘‘(1) clearly and conspicuously discloses to ‘‘(11) in connection with a proposed or ac- ‘‘(2) any of paragraphs (2) through (17) of the consumer that the information may be tual sale, merger, transfer, or exchange of all subsection (b) shall not use or disclose the shared among such persons for marketing or or a portion of a business or operating unit information, except in the ordinary course of other purposes; and if the disclosure of the information concerns business to carry out the activity covered by ‘‘(2) provides an opportunity and a simple solely consumers of such business or unit; the exception under which the information method for the consumer to prohibit the ‘‘(12) to comply with Federal, State, or was received. sharing of such information. local laws, rules, and other applicable legal ‘‘(e) NOTICE FOR OTHER PURPOSES PERMIS- ‘‘(b) EXCEPTIONS.—Nothing in this section requirements; to comply with a properly au- SIBLE.—A notice or other disclosure that is shall restrict or prohibit the sharing of the thorized civil, criminal, or regulatory inves- equivalent to the notice required by sub- information described in subsection (a) be- tigation or subpoena or summons by Federal, section (a), and that is provided by a person tween persons related by common ownership State, or local authorities, or to respond to described in subsection (a) to a consumer, to- or affiliated by corporate control— judicial process or government regulatory gether with disclosures required by any ‘‘(1) if— authorities having jurisdiction over the affil- other provision of law, shall satisfy the re- ‘‘(A) the persons are regulated by the same iate for examination, compliance, or other quirements of subsection (a). functional regulator; purposes as authorized by law; ‘‘(f) RULE OF CONSTRUCTION.—For purposes ‘‘(B) the affiliate disclosing such informa- ‘‘(13) if such information is released to an of this section, a person does not disclose in- tion and the affiliate receiving such informa- affiliate in order for the affiliate to perform formation to, or share information, with, its tion are both principally engaged in the business or professional services, such as affiliate solely because information de- same line of business; printing, mailing services, data processing or ‘‘(C) the affiliate disclosing such informa- analysis, or customer surveys, on behalf of scribed in subsection (a) is maintained in a tion and the affiliate receiving such informa- another affiliate, if— common information system or database, tion share a common brand, excluding a ‘‘(A) the services to be performed by the af- and employees of the person and its affiliate brand consisting solely of a graphic element filiate could lawfully be performed by the af- have access to that common information or symbol, within their trade mark, service filiate; system or database, or a consumer accesses a mark, or trade name, which is used to iden- ‘‘(B) there is a written contract between website jointly operated or maintained under tify the source of the products and services the affiliates that prohibits the affiliate a common name by or on behalf of the per- provided; and from disclosing or using such information son and its affiliate, provided that in any ‘‘(D) the affiliate disclosing such informa- other than to carry out the purpose for case in which a consumer has exercised his tion and the affiliate receiving such informa- which the information is disclosed, as set or her right to prohibit the sharing of infor- tion are wholly owned subsidiaries, whether forth in the written contract; mation pursuant to this section, the infor- wholly owned directly or wholly owned indi- ‘‘(C) the information provided to the affil- mation described in subsection (a) is not rectly in a chain of wholly owned subsidi- iate is limited to that which is necessary for accessed, disclosed, or used by an affiliate, aries, of the same person or holding com- an affiliate to perform the services con- except as permitted by this section. pany; tracted for on behalf of the other affiliate; ‘‘(g) DEFINITIONS.— ‘‘(2) as necessary to effect, administer, or and ‘‘(1) FUNCTIONAL REGULATORS.—For pur- enforce a transaction requested or author- ‘‘(D) the affiliate providing the informa- poses of subsection (b)(1)— ized by the consumer, or in connection tion does not receive any payment from or ‘‘(A) financial institutions regulated by the with— through the affiliate receiving the informa- Office of the Comptroller of the Currency, ‘‘(A) servicing or processing a financial tion in connection with, or as a result of, the Office of Thrift Supervision, National Credit product or service requested or authorized by release of the information; Union Administration, or a State regulator the consumer; ‘‘(14) if the information is released to iden- of depository institutions shall be deemed to ‘‘(B) maintaining or servicing the con- tify or locate missing and abducted children, be regulated by the same functional regu- sumer’s account with any such affiliate as witnesses, criminals and fugitives, parties to lator; part of a private label credit card program or lawsuits, parents delinquent in child support ‘‘(B) persons regulated by the Securities other extension of credit on behalf of such payments, organ and bone marrow donors, and Exchange Commission, the United entity; or pension fund beneficiaries, and missing States Department of Labor, or a State secu- ‘‘(C) a proposed or actual securitization, heirs, or to report a known or suspected in- rities regulator shall be deemed to be regu- secondary market sale (including sales of stance of elder or dependent adult financial lated by the same functional regulator; and servicing rights), or similar transaction re- abuse; ‘‘(C) insurers licensed by a State, or other- lated to a transaction of the consumer; ‘‘(15) if the information is released to a real wise permitted by the State, to engage in the ‘‘(3) with the consent or at the direction of estate appraiser licensed or certified by a business of insurance shall be deemed to be the consumer; State for submission to central data reposi- in compliance with subsection (b)(2).

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.063 S04PT1 S13924 CONGRESSIONAL RECORD — SENATE November 4, 2003 ‘‘(2) LINE OF BUSINESS.—As used in sub- (II) of general publication of such informa- ary, and related agencies for the fiscal section (b)(2), the term ‘same line of busi- tion; and year ending September 30, 2004, and for ness’ describes a condition where both affili- (B) specifically examine the information other purposes; which was ordered to ates are principally engaged in the business sharing practices that financial institutions lie on the table; as follows: of— and other creditors and users of consumer re- ‘‘(A) insurance; ports and their affiliates employ for the pur- On page 75, strike lines 1 through 22. ‘‘(B) banking; pose of making underwriting decisions or ‘‘(C) securities; or credit evaluations of consumers. SA 2057. Mr. LUGAR submitted an ‘‘(D) any other distinct line of business (3) REPORTS.— amendment intended to be proposed by identified, by rule, by the Federal Trade (A) INITIAL REPORT.—Not later than 3 years him to the bill S. 1585, making appro- Commission.’’. after the date of enactment of this Act, the priations for the Departments of Com- (b) RULEMAKING REQUIRED.— Federal banking agencies, the National Cred- merce, Justice, and State, the Judici- (1) IN GENERAL.—The Federal banking it Union Administration, and the Federal ary, and related agencies for the fiscal agencies (as defined in section 3 of the Fed- Trade Commission shall jointly submit a re- eral Deposit Insurance Act), the National year ending September 30, 2004, and for port to the Congress on the results of the ini- other purposes; which was ordered to Credit Union Administration, and the Fed- tial study conducted in accordance with this eral Trade Commission shall jointly promul- subsection, together with any recommenda- lie on the table; as follows: gate regulations to implement section 624 of tions for legislative or regulatory action. Beginning on page 98, strike line 23 and all the Fair Credit Reporting Act, as amended (B) FOLLOWUP REPORTS.—The Federal that follows through page 99, line 18. by this section. banking agencies, the National Credit Union On page 77, between lines 20 and 21, insert (2) CONSIDERATIONS.—In promulgating reg- Administration, and the Federal Trade Com- the following new section: ulations under this subsection, the agencies mission shall, not less frequently than once (TRANSFER OF FUNDS) referred to in paragraph (1) shall— every 3 years following the date of submis- SEC. 413. The funds appropriated in title II (A) ensure that affiliate sharing notifica- sion of the initial report under subparagraph under the heading ‘‘INTERNATIONAL FISHERIES tion methods provide a simple means for (A), jointly submit a report to the Congress COMMISSIONS’’ are hereby transferred to the consumers to make determinations and that, together with any recommendations Secretary of State for the purposes de- choices under section 624 of the Fair Credit for legislative or regulatory action— scribed, and may be advanced as provided, Reporting Act as amended by this section; (i) documents any changes in the areas of under such heading. and study referred to in paragraph (2)(A) occur- (B) consider the affiliate sharing notifica- ring since the date of submission of the pre- SA 2058. Mr. LUGAR submitted an tion practices employed on the date of enact- vious report; ment of this Act by persons that will be sub- (ii) identifies any changes in the practices amendment intended to be proposed by ject to that section 624. of financial institutions and other creditors him to the bill S. 1585, making appro- (3) TIMING.—Regulations required by this and users of consumer reports in sharing priations for the Departments of Com- subsection shall— consumer information with their affiliates merce, Justice, and State, the Judici- (A) be issued in final form not later than 6 for the purpose of making underwriting deci- ary, and related agencies for the fiscal months after the date of enactment of this sions or credit evaluations of consumers oc- year ending September 30, 2004, and for Act; and curring since the date of submission of the other purposes; which was ordered to (B) become effective not later than 3 previous report; and lie on the table; as follows: months after the date on which they are (iii) examines the effects that changes de- issued in final form. scribed in clause (ii) have had, if any, on the On page 77, between lines 20 and 21, insert (c) CONFORMING AMENDMENT.—Section degree to which such affiliate sharing prac- the following new section: 603(d)(2)(A) of the Fair Credit Reporting Act tices reduce the need for financial institu- SEC. 413. It is the sense of Congress that (15 U.S.C. 1681a(d)(2)(A)) is amended by in- tions, creditors, and other users of consumer the total amount requested by the President serting ‘‘subject to section 624,’’ after ‘‘(A)’’. reports to rely on credit reports for such de- for the Congress-Bundestag youth exchange (d) CLERICAL AMENDMENT.—The Consumer cisions. program, $2,994,000, should be made available Credit Protection Act (15 U.S.C. 1601 et seq.) (f) DEFINITIONS.—As used in this section— for the program in fiscal year 2004. is amended in the table of sections for title (1) the terms ‘‘consumer’’, ‘‘consumer re- VI, by striking the items following the item port’’, ‘‘consumer reporting agency’’, ‘‘cred- SA 2059. Ms. CANTWELL (for herself, relating to section 623 and inserting the fol- itor’’, ‘‘Federal banking agencies’’, and ‘‘fi- Mr. ENZI, and Mr. LEAHY) submitted an lowing: nancial institution’’, have the same mean- amendment intended to be proposed by ‘‘624. Affiliate sharing. ings as in section 603 of the Fair Credit Re- her to the bill S. 1753, to amend the ‘‘625. Relation to State laws. porting Act, as amended by this Act; and ‘‘626. Disclosures to FBI for counterintel- Fair Credit Reporting Act in order to (2) the term ‘‘affiliates’’ means persons ligence purposes.’’. prevent identity theft, to improve the that are related by common ownership or af- (e) STUDIES OF INFORMATION SHARING PRAC- use of and consumer access to con- filiated by corporate control. TICES.— sumer reports, to enhance the accuracy (1) IN GENERAL.—The Federal banking SA 2055. Mr. LUGAR submitted an of consumer reports, to limit the shar- agencies, the National Credit Union Admin- ing of certain consumer information, istration, and the Federal Trade Commission amendment intended to be proposed by shall jointly conduct regular studies of the him to the bill S. 1585, making appro- to improve financial education and lit- consumer information sharing practices by priations for the Departments of Com- eracy, and for other purposes; as fol- financial institutions and other persons that merce, Justice, and State, the Judici- lows: are creditors or users of consumer reports ary, and related agencies for the fiscal On page 22, line 6, strike the quotation with their affiliates. year ending September 30, 2004, and for marks and the final period and insert the fol- (2) MATTERS FOR STUDY.—In conducting the other purposes; which was ordered to lowing: studies required by paragraph (1), the agen- lie on the table; as follows: ‘‘(e) INFORMATION AVAILABLE TO VICTIMS.— cies described in paragraph (1) shall— ‘‘(1) IN GENERAL.—For the purpose of docu- Beginning on page 63, strike line 20, and all (A) identify— menting fraudulent transactions resulting that follows through page 64, line 11, and in- (i) the purposes for which financial institu- from identity theft, not later than 20 days sert the following: tions and other creditors and users of con- In addition, for the costs of worldwide se- after the date of receipt of a request from a sumer reports share consumer information; curity upgrades, $644,373,000, to remain avail- victim in accordance with paragraph (3), and (ii) the types of information shared by such able until expended. subject to verification of the identity of the entities with their affiliates; victim and the claim of identity theft in ac- CAPITAL INVESTMENT FUND (iii) the number of choices provided to con- cordance with paragraph (2), a business enti- sumers with respect to the control of such For necessary expenses of the Capital In- ty that has provided credit to, provided for sharing, and the degree to and manner in vestment Fund, $157,000,000, to remain avail- consideration products, goods, or services to, which consumers exercise such choices, if at able until expended, as authorized: Provided, accepted payment from, or otherwise entered all; and That section 135(e) of Foreign Relations Au- into a commercial transaction for consider- (iv) whether such entities share or may thorization Act, Fiscal Years 1994 and 1995 ation with, a person who has allegedly made share personally identifiable transaction or shall not apply to funds available under this unauthorized use of the means of identifica- experience information with affiliates for heading. tion of the victim, shall provide a copy of ap- purposes— Mr. LUGAR submitted an plication and business transaction records in (I) that are related to employment or hir- SA 2056. the control of the business entity, whether ing, including whether the person that is the amendment intended to be proposed by maintained by the business entity or by an- subject of such information is given notice of him to the bill S. 1585, making appro- other person on behalf of the business entity, such sharing, and the specific uses of such priations for the Departments of Com- evidencing any transaction alleged to be a shared information; or merce, Justice, and State, the Judici- result of identity theft to—

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00086 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.063 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13925 ‘‘(A) the victim; paragraph (1), that the business entity is On page 81, strike lines 6 through 15 and in- ‘‘(B) any Federal, State, or local governing otherwise prohibited from disclosing under sert the following: ‘‘to any person related by law enforcement agency or officer specified any other applicable provision of Federal or common ownership or affiliated by corporate by the victim in such a request; or State law. control, if the information is medical infor- ‘‘(C) any law enforcement agency inves- ‘‘(9) AFFIRMATIVE DEFENSE.—In any civil mation, including information that is an in- tigating the identity theft and authorized by action brought to enforce this subsection, it dividualized list or description based on the the victim to take receipt of records pro- is an affirmative defense (which the defend- payment transactions of the consumer for vided under this subsection. ant must establish by a preponderance of the medical products or services, or an aggregate ‘‘(2) VERIFICATION OF IDENTITY AND CLAIM.— evidence) for a business entity to file an affi- list of identified consumers based on pay- Before a business entity provides any infor- davit or answer stating that— ment transactions for medical products or mation under paragraph (1), unless the busi- ‘‘(A) the business entity has made a rea- services.’’. ness entity, at its discretion, is otherwise sonably diligent search of its available busi- (c) DEFINITION.—Section 603(i) of the Fair able to verify the identity of the victim ness records; and Credit Reporting Act (15 U.S.C. 1681a(i)) is making a request under paragraph (1), the ‘‘(B) the records requested under this sub- amended to read as follows: victim shall provide to the business entity— section do not exist or are not available. ‘‘(i) MEDICAL INFORMATION.—The term ‘‘(A) as proof of positive identification of ‘‘(10) DEFINITION OF VICTIM.—For purposes ‘medical information’ means information or the victim, at the election of the business of this subsection, the term ‘victim’ means a data, other than age or gender, whether oral entity— consumer whose means of identification or or recorded, in any form or medium, created ‘‘(i) the presentation of a government- financial information has been used or trans- by or derived from a health care provider or issued identification card; ferred (or has been alleged to have been used the consumer, that relates to— ‘‘(ii) personally identifying information of or transferred) without the authority of that ‘‘(1) the past, present, or future physical, the same type as was provided to the busi- consumer, with the intent to commit, or to mental, or behavioral health or condition of ness entity by the unauthorized person; or aid or abet, identity theft or any other viola- an individual; ‘‘(iii) personally identifying information tion of law.’’. ‘‘(2) the provision of health care to an indi- that the business entity typically requests On page 33, line 6, strike ‘‘7’’ and insert vidual; or from new applicants or for new transactions, ‘‘5’’. ‘‘(3) the payment for the provision of at the time of the victim’s request for infor- On page 41, line 19, strike ‘‘(e)’’ and insert health care to an individual.’’. mation, including any documentation de- ‘‘(f)’’. scribed in clauses (i) and (ii); and On page 47, line 1, strike ‘‘(e)’’ and insert SA 2062. Mr. DURBIN proposed an ‘‘(B) as proof of a claim of identity theft, ‘‘(f)’’. amendment to the bill S. 1753, to at the election of the business entity— amend the Fair Credit Reporting Act ‘‘(i) a copy of a police report evidencing SA 2060. Mrs. BOXER (for herself and the claim of the victim of identity theft; and Mrs. FEINSTEIN) proposed an amend- in order to prevent identity theft, to ‘‘(ii) a properly completed— ment to the bill S. 1753, to amend the improve the use of and consumer ac- ‘‘(I) copy of a standardized affidavit of Fair Credit Reporting Act in order to cess to consumer reports, to enhance identity theft developed and made available prevent identity theft, to improve the the accuracy of consumer reports, to by the Federal Trade Commission; or limit the sharing of certain consumer ‘‘(II) an affidavit of fact that is acceptable use of and consumer access to con- sumer reports, to enhance the accuracy information, to improve financial edu- to the business entity for that purpose. cation and literacy, and for other pur- ‘‘(3) PROCEDURES.—The request of a victim of consumer reports, to limit the shar- under paragraph (1) shall— ing of certain consumer information, poses; as follows: ‘‘(A) be in writing; and to improve financial education and lit- At the end of section 312, insert the fol- ‘‘(B) be mailed to an address specified by eracy, and for other purposes; as fol- lowing: (c) REPORTS TO CONSUMER REPORTING the business entity, if any. lows: ‘‘(4) NO CHARGE TO VICTIM.—Information re- AGENCIES.— quired to be provided under paragraph (1) On page 50, strike line 12 and all that fol- (1) REPORTS.—Section 430A(a) of the Higher shall be so provided without charge. lows through page 51, line 3 and insert the Education Act of 1965 (20 U.S.C. 1080a(a)) is following: ‘‘(5) AUTHORITY TO DECLINE TO PROVIDE IN- amended to read as follows: ‘‘(3) DURATION.—The election of a con- FORMATION.—A business entity may decline ‘‘(a) AGREEMENTS TO EXCHANGE INFORMA- to provide information under paragraph (1) sumer pursuant to paragraph (1)(B) to pro- TION.— if, in the exercise of good faith, the business hibit the sending of solicitations shall be ef- ‘‘(1) IN GENERAL.—For the purpose of pro- entity determines that— fective permanently, beginning on the date moting responsible repayment of loans cov- ‘‘(A) this subsection does not require dis- on which the person receives the election of ered by Federal loan insurance pursuant to closure of the information; the consumer, unless the consumer requests this title or covered by a guaranty agree- ‘‘(B) the request for the information is that such election be revoked. ment pursuant to section 428, the Secretary, based on a misrepresentation of fact by the ‘‘(4) DEFINITION.—For purposes of this sec- each guaranty agency, eligible lender, and individual requesting the information rel- tion, the term ‘pre-existing business rela- subsequent holder shall enter into an agree- evant to the request for information; or tionship’ means a relationship between a ment with each national consumer reporting ‘‘(C) the information requested is Internet person and a consumer, based on— agency as described in section 603(p) of the navigational data or similar information ‘‘(A) the purchase, rental, or lease by the Fair Credit Reporting Act (15 U.S.C. 1681a(p)) about a person’s visit to a website or online consumer of that person’s goods or services, to exchange such information as is required service. or a financial transaction between the con- by the Secretary concerning each borrower ‘‘(6) LIMITATION ON LIABILITY.—Except as sumer and that person during the 18-month of a loan made, insured, or guaranteed under provided in section 621, sections 616 and 617 period immediately preceding the date on this title who is served by the Secretary, do not apply to any violation of this sub- which the consumer receives the notice re- agency, lender, or holder, respectively, re- section. quired under this section; or gardless of the default status of the bor- ‘‘(7) NO NEW RECORDKEEPING OBLIGATION.— ‘‘(B) an inquiry or application by the con- rower. Such information shall be reported to Nothing in this subsection creates an obliga- sumer regarding a product or service offered the agencies regularly, shall be identified as tion on the part of a business entity to ob- by that person, during the 3-month period pertaining to such a loan, and shall include tain, retain, or maintain information or immediately preceding the date on which the any positive or negative repayment informa- records that are not otherwise required to be consumer receives the notice required under tion relevant to the borrower. obtained, retained, or maintained in the or- this section. ‘‘(2) OBJECTIONS RAISED BY BORROWERS.— dinary course of its business or under other ‘‘(5) SCOPE.—This section shall not apply to For the purpose of assisting the reporting applicable law. a’’. agencies in complying with the Fair Credit ‘‘(8) RULE OF CONSTRUCTION.— Reporting Act, such agreements may provide ‘‘(A) IN GENERAL.—No provision of Federal SA 2061. Mrs. FEINSTEIN (for her- for timely response by the Secretary (con- or State law (except a law involving the non- self, Mrs. BOXER, and Mr. KENNEDY) cerning loans covered by Federal loan insur- disclosure of information related to a pend- proposed an amendment to the bill S. ance), by a guaranty agency, eligible lender, ing Federal criminal investigation) prohib- 1753, to amend the Fair Credit Report- or subsequent holder (concerning loans cov- iting the disclosure of financial information ing Act in order to prevent identity ered by a guaranty agreement), or to re- by a business entity to third parties shall be theft, to improve the use of and con- quests from the reporting agencies, for re- used to deny disclosure of information to the sumer access to consumer reports, to sponses to objections raised by borrowers. victim under this subsection. enhance the accuracy of consumer re- ‘‘(3) NONPAYMENT.—Subject to the require- ‘‘(B) LIMITATION.—Except as provided in ments of subsection (c), such agreements subparagraph (A), nothing in this subsection ports, to limit the sharing of certain shall require the Secretary, the guaranty permits a business entity to disclose infor- consumer information, to improve fi- agency, eligible lender, or subsequent holder, mation, including information to law en- nancial education and literacy, and for as appropriate, to disclose to the reporting forcement under subparagraphs (B) and (C) of other purposes; as follows: agencies, with respect to any loan under this

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.069 S04PT1 S13926 CONGRESSIONAL RECORD — SENATE November 4, 2003 part that has not been repaid by the bor- On page 16, line 25, strike the period at the curate and valuable information consistent rower— end and insert the following: ‘‘; and with the stated plans for the use of the tech- ‘‘(A) the total amount of loans made to ‘‘(C) prescribe regulations requiring each nology. any borrower under this part and the re- financial institution and each other person (D) An assessment of the likely impact of maining balance of the loans; that is a creditor or other user of a consumer the implementation of the data-mining tech- ‘‘(B) information concerning the date of report to notify the Federal Trade Commis- nology on privacy and civil liberties. any default on the loan and the collection of sion (and any other agency or person that (E) A list and analysis of the laws and reg- the loan, including information concerning such rulemaking agency determines appro- ulations that govern the information to be the repayment status of any defaulted loan priate) in any case in which there has been, collected, reviewed, gathered, and analyzed on which the Secretary has made a payment or is reasonably believed to have been unau- with the data-mining technology and a de- pursuant to section 430(a) or the guaranty thorized access to computerized or physical scription of any modifications of such laws agency has made a payment to the previous records which compromises the security, that will be required to use the information holder of the loan; and confidentiality, or integrity of consumer in- in the manner proposed under such program. ‘‘(C) the date of cancellation of the note formation maintained by or on behalf of that (F) A thorough discussion of the policies, upon completion of repayment by the bor- entity, except that such regulations shall procedures, and guidelines that are to be de- rower of the loan or payment by the Sec- not apply to a good faith acquisition of infor- veloped and applied in the use of such tech- retary pursuant to section 437.’’. mation by an employee or agent of such enti- nology for data-mining in order to— (2) TECHNICAL AND CONFORMING AMEND- ty for a business purpose of that entity, if (i) protect the privacy and due process MENTS.—The Higher Education Act of 1965 (20 the information is not subject to further un- rights of individuals; and U.S.C. 1001 et seq.) is amended— authorized access.’’. (ii) ensure that only accurate information (A) in section 427(a)(2)(G)(i) (20 U.S.C. is collected and used. 1077(a)(2)(G)(i)), by striking ‘‘credit bureau SA 2065. Mr. FEINGOLD proposed an (G) A thorough discussion of the proce- organizations’’ and inserting ‘‘reporting amendment to the bill S. 1753, to dures allowing individuals whose personal in- agencies’’; amend the Fair Credit Reporting Act formation will be used in the data-mining (B) in section 428C(b)(4)(E)(i) (20 U.S.C. in order to prevent identity theft, to technology to be informed of the use of their 1078–3(b)(4)(E)(i)), by striking ‘‘credit bureau improve the use of and consumer ac- personal information and what procedures organizations’’ and inserting ‘‘reporting cess to consumer reports, to enhance are in place to allow for individuals to opt agencies’’; and out of the technology. If no such procedures (C) in section 430A (20 U.S.C. 1080a)— the accuracy of consumer reports, to are in place, a thorough explanation as to (i) in subsection (b)— limit the sharing of certain consumer why not. (I) by striking ‘‘such organizations’’ and information, to improve financial edu- (H) Any necessary classified information in inserting ‘‘the reporting agencies’’; and cation and literacy, and for other pur- an annex that shall be available to the Com- (II) by striking ‘‘(a)(2)’’ and inserting poses; as follows: mittee on Governmental Affairs, the Com- ‘‘(a)(3)(B)’’; At the appropriate place, insert the fol- mittee on the Judiciary, and the Committee (ii) in subsection (c)(2), by striking ‘‘such lowing: on Appropriations of the Senate and the organizations’’ and inserting ‘‘the reporting SEC. ll. DATA-MINING REPORTING ACT OF 2003. Committee on Homeland Security, the Com- agencies’’; mittee on the Judiciary, and the Committee (a) SHORT TITLE.—This section may be (iii) in subsection (b)(4)— cited as the ‘‘Data-Mining Reporting Act of on Appropriations of the House of Represent- (I) by striking ‘‘(a)(2)’’ and inserting 2003’’. atives. ‘‘(a)(3)(B)’’; and (b) DEFINITIONS.—In this section: (3) TIME FOR REPORT.—Each report required (II) by striking ‘‘credit bureau organiza- (1) DATA-MINING.—The term ‘‘data-mining’’ under paragraph (1) shall be— tions’’ and inserting ‘‘the reporting agen- means a query or search or other analysis of (A) submitted not later than 90 days after cies’’; 1 or more electronic databases, where— the date of the enactment of this Act; and (iv) in subsection (d), by striking ‘‘credit (A) at least 1 of the databases was obtained (B) updated once a year and include any bureau organization’’ and inserting ‘‘report- from or remains under the control of a non- new data-mining technologies. ing agency’’; and Federal entity, or the information was ac- (v) in subsection (f), by striking ‘‘consumer quired initially by another department or SA 2066. Mr. FEINGOLD proposed an reporting agency’’ each place the term ap- agency of the Federal Government for pur- amendment to the bill S. 1753, to pears and inserting ‘‘reporting agency’’. poses other than intelligence or law enforce- amend the Fair Credit Reporting Act Mr. LAUTENBERG (for him- ment; in order to prevent identity theft, to SA 2063. (B) the search does not use a specific indi- self, Ms. MIKULSKI, Mr. JEFFORDS, Mrs. improve the use of and consumer ac- vidual’s personal identifiers to acquire infor- cess to consumer reports, to enhance BOXER, Mr. CORZINE, Mr. SCHUMER, Mr. mation concerning that individual; and LEAHY, Mr. LIEBERMAN, Mr. KERRY, and (C) a department or agency of the Federal the accuracy of consumer reports, to Mr. KENNEDY) submitted an amend- Government is conducting the query or limit the sharing of certain consumer ment intended to be proposed by him search or other analysis to find a pattern in- information, to improve financial edu- to the bill H.R. 2861, making appropria- dicating terrorist or other criminal activity. cation and literacy, and for other pur- tions for the Departments of Veterans (2) DATABASE.—The term ‘‘database’’ does poses; as follows: Affairs and Housing and Urban Devel- not include telephone directories, informa- At the end of title VII, add the following: tion publicly available via the Internet or opment, and for sundry independent SEC. 712. BUY AMERICAN REPORT. agencies, boards, commissions, cor- available by any other means to any member of the public without payment of a fee, or (a) IN GENERAL.—Not later than 60 days porations, and offices for the fiscal databases of judicial and administrative after the end of each fiscal year, the head of year ending September 30, 2004, and for opinions. each Federal agency shall submit a report to other purposes; which was ordered to (c) REPORTS ON DATA-MINING ACTIVITIES.— Congress on the amount of the acquisitions lie on the table; as follows: (1) REQUIREMENT FOR REPORT.—The head of made by the agency from entities that man- On page 98, line 5, before the period at the each department or agency of the Federal ufacture the articles, materials, or supplies end, insert the following: ‘‘, of which, in ad- Government that is engaged in any activity outside of the United States in that fiscal dition to any other amounts provided under to use or develop data-mining technology year. this heading for compliance monitoring, shall each submit a public report to Congress (b) CONTENT OF REPORT.—The report re- civil enforcement, and capacity building in on all such activities of the department or quired by subsection (a) shall separately in- the Office of Enforcement and Compliance agency under the jurisdiction of that offi- dicate— Assurance, $5,400,000 shall be made available cial. (1) the dollar value of any articles, mate- for those activities’’. (2) CONTENT OF REPORT.—A report sub- rials, or supplies purchased that were manu- mitted under paragraph (1) shall include, for factured outside of the United States; SA 2064. Mr. CORZINE proposed an each activity to use or develop data-mining (2) an itemized list of all waivers granted amendment to the bill S. 1753, to technology that is required to be covered by with respect to such articles, materials, or amend the Fair Credit Reporting Act the report, the following information: supplies under the Buy American Act (41 in order to prevent identity theft, to (A) A thorough description of the data- U.S.C. 10a et seq.); and improve the use of and consumer ac- mining technology and the data that will be (3) a summary of the total procurement cess to consumer reports, to enhance used. funds spent on goods manufactured in the (B) A thorough discussion of the plans for United States versus funds spent on goods the accuracy of consumer reports, to the use of such technology and the target manufactured outside of the United States. limit the sharing of certain consumer dates for the deployment of the data-mining (c) PUBLIC AVAILABILITY.—The head of each information, to improve financial edu- technology. Federal agency submitting a report under cation and literacy, and for other pur- (C) An assessment of the likely efficacy of subsection (a) shall make the report publicly poses; as follows: the data-mining technology in providing ac- available by posting on an Internet website.

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.069 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13927 SA 2067. Mr. SHELBY (for Mr. NEL- Sec. 107. Effect of title. Sec. 1102. Program for emergency treatment SON of Florida) proposed an amendment Sec. 108. Authorization of appropriations. and reduction of nonnative to the bill S. 1753, to amend the Fair TITLE II—BIOMASS invasive plants. Credit Reporting Act in order to pre- Sec. 201. Findings. Sec. 1103. USDA National Agroforestry Cen- Sec. 202. Definitions. ter. vent identity theft, to improve the use Sec. 1104. Upland Hardwoods Research Cen- of and consumer access to consumer re- Sec. 203. Grants to improve commercial value of forest biomass for elec- ter. ports, to enhance the accuracy of con- tric energy, useful heat, trans- Sec. 1105. Emergency fuel reduction grants. sumer reports, to limit the sharing of portation fuels, compost, value- Sec. 1106. Eastern Nevada landscape coali- certain consumer information, to im- added products, and petroleum- tion. prove financial education and literacy, based product substitutes. Sec. 1107. Sense of Congress regarding en- and for other purposes; as follows: Sec. 204. Reporting requirement. hanced community fire protec- tion. At the end of title II, add the following: Sec. 205. Improved biomass use research pro- gram. Sec. 1108. Collaborative monitoring. SEC. 216. DISPOSAL OF CONSUMER REPORT IN- Sec. 206. Rural revitalization through for- Sec. 1109. Best-value contracting. FORMATION AND RECORDS. estry. Sec. 1110. Suburban and community forestry (a) IN GENERAL.—The Fair Credit Report- and open space program; Forest TITLE III—WATERSHED FORESTRY ing Act (15 U.S.C. 1681m) is amended by add- Legacy Program. ASSISTANCE ing at the end the following: Sec. 1111. Wildland firefighter safety. ‘‘§ 627. Disposal of records Sec. 301. Findings and purposes. Sec. 1112. Green Mountain National Forest Sec. 302. Watershed forestry assistance pro- boundary adjustment. ‘‘(a) REGULATIONS.— gram. ‘‘(1) IN GENERAL.—Not later than 1 year Sec. 1113. Puerto Rico karst conservation. Sec. 303. Tribal watershed forestry assist- Sec. 1114. Farm Security and Rural Develop- after the date of enactment of this section, ance. the Federal Trade Commission shall issue ment Act. final regulations requiring any person that TITLE IV—INSECT INFESTATIONS AND Sec. 1115. Enforcement of animal fighting maintains or otherwise possesses consumer RELATED DISEASES prohibitions under the Animal information or any compilation of consumer Sec. 401. Findings and purpose. Welfare Act. information derived from consumer reports Sec. 402. Definitions. Sec. 1116. Increase in maximum fines for for a business purpose to properly dispose of Sec. 403. Accelerated information gathering violation of public land regula- any such information or compilation. regarding forest-damaging in- tions and establishment of min- imum fine for violation of pub- ‘‘(2) EXEMPTION AUTHORITY.—In issuing reg- sects. ulations under this section, the Federal Sec. 404. Applied silvicultural assessments. lic land fire regulations during Trade Commission may exempt any person Sec. 405. Relation to other laws. fire ban. or class of persons from application of those Sec. 406. Authorization of appropriations. SEC. 2. PURPOSES. regulations, as the Commission deems appro- TITLE V—HEALTHY FORESTS RESERVE The purposes of this division are— priate to carry out the purpose of this sec- PROGRAM (1) to reduce wildfire risk to communities, tion. Sec. 501. Establishment of healthy forests municipal water supplies, and other at-risk ‘‘(b) RULE OF CONSTRUCTION.—Nothing in reserve program. Federal land through a collaborative process this section may be construed to alter or af- Sec. 502. Eligibility and enrollment of lands of planning, prioritizing, and implementing fect any requirement imposed under any in program. hazardous fuel reduction projects; other provision of law to maintain any Sec. 503. Restoration plans. (2) to authorize grant programs to improve record.’’. Sec. 504. Financial assistance. the commercial value of forest biomass (that (b) CLERICAL AMENDMENT.—The table of Sec. 505. Technical assistance. otherwise contributes to the risk of cata- sections for the Fair Credit Reporting Act Sec. 506. Protections and measures strophic fire or insect or disease infestation) (15 U.S.C. 1681 et seq.), as amended by this Sec. 507. Involvement by other agencies and for producing electric energy, useful heat, Act, is amended by adding at the end the fol- organizations. transportation fuel, and petroleum-based lowing: Sec. 508. Authorization of appropriations. product substitutes, and for other commer- ‘‘627. Disposal of records.’’. TITLE VI—PUBLIC LAND CORPS cial purposes; Sec. 601. Purposes. (3) to enhance efforts to protect watersheds SA 2068. Mr. CRAPO (for himself and Sec. 602. Definitions. and address threats to forest and rangeland Sec. 603. Public Land Corps. health, including catastrophic wildfire, Mr. SMITH) submitted an amendment across the landscape; intended to be proposed by him to the Sec. 604. Nondisplacement. Sec. 605. Authorization of appropriations. (4) to promote systematic gathering of in- bill H.R. 2673, making appropriations formation to address the impact of insect TITLE VII—RURAL COMMUNITY for Agriculture, Rural Development, and disease infestations and other damaging FORESTRY ENTERPRISE PROGRAM Food and Drug Administration, and agents on forest and rangeland health; Sec. 701. Purpose Related Agencies for the fiscal year (5) to improve the capacity to detect insect Sec. 702. Definitions. and disease infestations at an early stage, ending September 30, 2004, and for Sec. 703. Rural community forestry enter- other purposes; which was ordered to particularly with respect to hardwood for- prise program. ests; and lie on the table; as follows: TITLE VIII—FIREFIGHTERS MEDICAL (6) to protect, restore, and enhance forest On page 79, strike line 7 and insert the fol- MONITORING ACT ecosystem components— lowing: Sec. 801. Short Title. (A) to promote the recovery of threatened the provisions of this title.’’. Sec. 802. Monitoring of firefighters in dis- and endangered species; DIVISION B—HEALTHY FORESTS aster areas. (B) to improve biological diversity; and RESTORATION TITLE IX—DISASTER AIR QUALITY (C) to enhance productivity and carbon se- SEC. 1. SHORT TITLE; TABLE OF CONTENTS. MONITORING ACT questration. (a) SHORT TITLE.—This division may be Sec. 901. Short Title. SEC. 3. DEFINITIONS. cited as the ‘‘Healthy Forests Restoration Sec. 902. Monitoring of air quality in dis- In this division: Act of 2003’’. aster areas. (1) FEDERAL LAND.—The term ‘‘Federal land’’ means— (b) TABLE OF CONTENTS.—The table of con- TITLE X—HIGHLANDS REGION (A) land of the National Forest System (as tents of this division is as follows: CONSERVATION defined in section 11(a) of the Forest and Sec. 1. Short title; table of contents. Sec. 1001. Short title. Rangeland Renewable Resources Planning Sec. 2. Purposes. Sec. 1002. Findings. Act of 1974 (16 U.S.C 1609(a))) administered by Sec. 3. Definitions. Sec. 1003. Purposes. the Secretary of Agriculture, acting through TITLE I—HAZARDOUS FUEL REDUCTION Sec. 1004. Definitions. the Chief of the Forest Service; and ON FEDERAL LAND Sec. 1005. Land conservation partnership (B) public lands (as defined in section 103 of Sec. 101. Definitions. projects in the Highlands re- the Federal Land Policy and Management Sec. 102. Authorized hazardous fuel reduc- gion. Act of 1976 (43 U.S.C 1702)), the surface of tion projects. Sec. 1006. Forest Service and USDA pro- which is administered by the Secretary of Sec. 103. Prioritization. grams in the Highlands region. the Interior, acting through the Director of Sec. 1007. Private property protection and Sec. 104. Environmental analysis. the Bureau of Land Management. lack of regulatory effect. Sec. 105. Special administrative review proc- (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ ess. TITLE XI—MISCELLANEOUS PROVISIONS has the meaning given the term in section 4 Sec. 106. Judicial review in United States Sec. 1101. Forest inventory and manage- of the Indian Self-Determination and Edu- district courts. ment. cation Assistance Act (25 U.S.C. 450b).

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TITLE I—HAZARDOUS FUEL REDUCTION search Station in the general technical re- (14) SECRETARY.—The term ‘‘Secretary’’ ON FEDERAL LAND port referred to in paragraph (4) (including means— SEC. 101. DEFINITIONS. any subsequent revision to the report), under (A) the Secretary of Agriculture, with re- In this title: which— spect to land of the National Forest System (1) AT-RISK COMMUNITY.—The term ‘‘at-risk (A) fire regimes on land have been signifi- described in section 3(1)(A); and community’’ means an area— cantly altered from historical ranges; (B) the Secretary of the Interior, with re- (A) that is comprised of— (B) there exists a high risk of losing key spect to public lands described in section (i) an interface community as defined in ecosystem components from fire; 3(1)(B). the notice entitled ‘‘Wildland Urban Inter- (C) fire frequencies have departed from his- (15) THREATENED AND ENDANGERED SPECIES face Communities Within the Vicinity of torical frequencies by multiple return inter- HABITAT.—The term ‘‘threatened and endan- Federal Lands That Are at High Risk From vals, resulting in dramatic changes to— gered species habitat’’ means Federal land Wildfire’’ issued by the Secretary of Agri- (i) the size, frequency, intensity, or sever- identified in— culture and the Secretary of the Interior in ity of fires; or (A) a determination that a species is an en- accordance with title IV of the Department (ii) landscape patterns; and dangered species or a threatened species of the Interior and Related Agencies Appro- (D) vegetation attributes have been signifi- under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); priations Act, 2001 (114 Stat. 1009) (66 Fed. cantly altered from the historical range of (B) a designation of critical habitat of the Reg. 753, January 4, 2001); or the attributes. species under that Act; or (ii) a group of homes and other structures (6) DAY.—The term ‘‘day’’ means— (C) a recovery plan prepared for the species with basic infrastructure and services (such (A) a calendar day; or under that Act. as utilities and collectively maintained (B) if a deadline imposed by this title (16) WILDLAND-URBAN INTERFACE.—The transportation routes) within or adjacent to would expire on a nonbusiness day, the end term ‘‘wildland-urban interface’’ means— Federal land; of the next business day. (A) an area within or adjacent to an at-risk (B) in which conditions are conducive to a (7) DECISION DOCUMENT.—The term ‘‘deci- community that is identified in rec- large-scale wildland fire disturbance event; sion document’’ means— ommendations to the Secretary in a commu- (A) a decision notice (as that term is used and nity wildfire protection plan; or (C) for which a significant threat to human in the Forest Service Handbook); (B) in the case of any area for which a com- life or property exists as a result of a (B) a decision record (as that term is used munity wildfire protection plan is not in ef- wildland fire disturbance event. in the Bureau of Land Management Hand- fect— (2) AUTHORIZED HAZARDOUS FUEL REDUCTION book); and (i) an area extending 1⁄2-mile from the PROJECT.—The term ‘‘authorized hazardous (C) a record of decision (as that term is boundary of an at-risk community; fuel reduction project’’ means the measures used in applicable regulations of the Council (ii) an area extending more than 1⁄2-mile and methods described in the definition of on Environmental Quality). from the boundary of an at-risk community, ‘‘appropriate tools’’ contained in the glos- (8) FIRE REGIME I.—The term ‘‘fire regime if the land adjacent to the at-risk commu- sary of the Implementation Plan, on Federal I’’ means an area— nity— land described in section 102(a) and con- (A) in which historically there have been (I) has a sustained steep slope that creates ducted under sections 103 and 104. low-severity fires with a frequency of 0 the potential for wildfire behavior endan- (3) COMMUNITY WILDFIRE PROTECTION through 35 years; and gering the at-risk community; or PLAN.—The term ‘‘community wildfire pro- (B) that is located primarily in low ele- (II) has a geographic feature that aids in tection plan’’ means a plan for an at-risk vation forests of pine, oak, or pinyon juni- creating an effective fire break, such as a community that— per. road or ridge top, within 3⁄4-mile of the near- (A) is developed within the context of the (9) FIRE REGIME II.—The term ‘‘fire regime est at-risk community boundary; and collaborative agreements and the guidance II’’ means an area— (iii) an area that is adjacent to an evacu- established by the Wildland Fire Leadership (A) in which historically there are stand ation route for an at-risk community that Council and agreed to by the applicable local replacement severity fires with a frequency the Secretary determines, in cooperation government, local fire department, and of 0 through 35 years; and with the at-risk community, requires haz- State agency responsibile for forest manage- (B) that is located primarily in low- to ardous fuel reduction to provide safer evacu- ment, in consultation with interested parties mid-elevation rangeland, grassland, or ation from the at-risk community. and the Federal land management agencies shrubland. SEC. 102. AUTHORIZED HAZARDOUS FUEL RE- managing land in the vicinity of the at-risk (10) FIRE REGIME III.—The term ‘‘fire re- DUCTION PROJECTS. community; gime III’’ means an area— (a) AUTHORIZED PROJECTS.—As soon as (B) identifies and prioritizes areas for haz- (A) in which historically there are mixed practicable after the date of enactment of ardous fuel reduction treatments and rec- severity fires with a frequency of 35 through this Act, the Secretary shall implement au- ommends the types and methods of treat- 100 years; and thorized hazardous fuel reduction projects, ment on Federal and non-Federal land that (B) that is located primarily in forests of consistent with the Implementation Plan, will protect 1 or more at-risk communities mixed conifer, dry Douglas fir, or wet Pon- on— and essential infrastructure; and derosa pine. (1) Federal land in wildland-urban inter- (C) recommends measures to reduce struc- (11) IMPLEMENTATION PLAN.—The term ‘‘Im- face areas; tural ignitability throughout the at-risk plementation Plan’’ means the Implementa- (2) condition class 3 Federal land, in such community. tion Plan for the Comprehensive Strategy proximity to a municipal water supply sys- (4) CONDITION CLASS 2.—The term ‘‘condi- for a Collaborative Approach for Reducing tem or a stream feeding such a system with- tion class 2’’, with respect to an area of Fed- Wildland Fire Risks to Communities and the in a municipal watershed that a significant eral land, means the condition class descrip- Environment, dated May 2002, developed pur- risk exists that a fire disturbance event tion developed by the Forest Service Rocky suant to the conference report to accompany would have adverse effects on the water Mountain Research Station in the general the Department of the Interior and Related quality of the municipal water supply or the technical report entitled ‘‘Development of Agencies Appropriations Act, 2001 (House Re- maintenance of the system, including a risk Coarse-Scale Spatial Data for Wildland Fire port 106–64) (and subsequent revisions). to water quality posed by erosion following and Fuel Management’’ (RMRS–87), dated (12) MUNICIPAL WATER SUPPLY SYSTEM.— such a fire disturbance event; April 2000 (including any subsequent revision The term ‘‘municipal water supply system’’ (3) condition class 2 Federal land located to the report), under which— means the reservoirs, canals, ditches, flumes, within fire regime I, fire regime II, or fire re- (A) fire regimes on the land have been laterals, pipes, pipelines, and other surface gime III, in such proximity to a municipal moderately altered from historical ranges; facilities and systems constructed or in- water supply system or a stream feeding (B) there exists a moderate risk of losing stalled for the collection, impoundment, such a system within a municipal watershed key ecosystem components from fire; storage, transportation, or distribution of that a significant risk exists that a fire dis- (C) fire frequencies have increased or de- drinking water. turbance event would have adverse effects on creased from historical frequencies by 1 or (13) RESOURCE MANAGEMENT PLAN.—The the water quality of the municipal water more return intervals, resulting in moderate term ‘‘resource management plan’’ means— supply or the maintenance of the system, in- changes to— (A) a land and resource management plan cluding a risk to water quality posed by ero- (i) the size, frequency, intensity, or sever- prepared for 1 or more units of land of the sion following such a fire disturbance event; ity of fires; or National Forest System described in section (4) Federal land on which windthrow or (ii) landscape patterns; and 3(1)(A) under section 6 of the Forest and blowdown, ice storm damage, or the exist- (D) vegetation attributes have been mod- Rangeland Renewable Resources Planning ence of disease or insect infestation, poses a erately altered from the historical range of Act of 1974 (16 U.S.C. 1604); or significant threat to an ecosystem compo- the attributes. (B) a land use plan prepared for 1 or more nent, or forest or rangeland resource, on the (5) CONDITION CLASS 3.—The term ‘‘condi- units of the public land described in section Federal land or adjacent non-Federal land; tion class 3’’, with respect to an area of Fed- 3(1)(B) under section 202 of the Federal Land (5) Federal land not covered by paragraphs eral land, means the condition class descrip- Policy and Management Act of 1976 (43 (1) through (4) that contains threatened and tion developed by the Rocky Mountain Re- U.S.C. 1712). endangered species habitat, if—

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(A) natural fire regimes on that land are (B) AMENDMENTS OR REVISIONS.—Any (i) an evaluation of the progress towards identified as being important for, or wildfire amendment or revision to standards for project goals; and is identified as a threat to, an endangered which final administrative approval is grant- (ii) recommendations for modifications to species, a threatened species, or habitat of ed after the date of enactment of this Act the projects and management treatments. an endangered species or threatened species shall be consistent with paragraph (2) for the (2) CONSISTENCY OF PROJECTS WITH REC- in a species recovery plan prepared under purpose of carrying out covered projects. OMMENDATIONS.—An authorized hazardous section 4 of the Endangered Species Act of (4) OLDER STANDARDS.— fuel reduction project approved following the 1973 (16 U.S.C. 1533), or a notice published in (A) IN GENERAL.—If the standards for an issuance of a monitoring report shall, to the the Federal Register determining a species old growth stand were established before the maximum extent practicable, be consistent to be an endangered species or a threatened 10-year period described in paragraph (3)(A), with any applicable recommendations in the species or designating critical habitat; the Secretary shall meet the requirements of report. (B) the authorized hazardous fuel reduction paragraph (2) in carrying out a covered (3) SIMILAR VEGETATION TYPES.—The re- project will provide enhanced protection project by implementing the standards— sults of a monitoring report shall be made from catastrophic wildfire for the endan- (i) during the 2-year period beginning on available in, and (if appropriate) used for, a gered species, threatened species, or habitat the date of enactment of this Act; or project conducted in a similar vegetation of the endangered species or threatened spe- (ii) if the Secretary is in the process of re- type on land under the jurisdiction of the cies; and vising a resource management plan as of the Secretary. (C) the Secretary complies with any appli- date of enactment of this Act, during the 3- (4) MONITORING AND ASSESSMENTS.—From a cable guidelines specified in any manage- year period beginning on the date of enact- representative sample of authorized haz- ment or recovery plan described in subpara- ment of this Act. ardous fuel reduction projects, for each man- graph (A). (B) REVIEW REQUIRED.—During the applica- agement unit, monitoring and assessment (b) RELATION TO AGENCY PLANS.—An au- ble period described in subparagraph (A) for shall include a description of the effects on thorized hazardous fuel reduction project the standards for an old growth stand under changes in condition class, using the Fire shall be conducted consistent with the re- a resource management plan, the Secretary Regime Condition Class Guidebook or suc- source management plan and other relevant shall— cessor guidance, specifically comparing end administrative policies or decisions applica- (i) review the standards, taking into ac- results to— ble to the Federal land covered by the count any relevant scientific information (A) pretreatment conditions; project. made available since the adoption of the (B) historical fire regimes; and (c) ACREAGE LIMITATION.—Not more than a standards; and (C) any applicable watershed or landscape total of 20,000,000 acres of Federal land may (ii) revise the standards to be consistent goals or objectives in the resource manage- be treated under authorized hazardous fuel with paragraph (2), if necessary to reflect ment plan or other relevant direction. reduction projects. relevant scientific information the Secretary (5) TRACKING.—For each management unit, (d) EXCLUSION OF CERTAIN FEDERAL LAND.— did not consider in formulating the resource the Secretary shall track acres burned, by The Secretary may not conduct an author- the degree of severity, by large wildfires (as ized hazardous fuel reduction project that management plan. (C) REVIEW NOT COMPLETED.— defined by the Secretary). would occur on— (6) MONITORING AND MAINTENANCE OF TREAT- (1) a component of the National Wilderness (i) IN GENERAL.—If the Secretary does not complete the review of the standards in ac- ED AREAS.—The Secretary shall, to the max- Preservation System; imum extent practicable, develop a process (2) Federal land on which the removal of cordance with subparagraph (B), during the applicable period described in subparagraph for monitoring the need for maintenance of vegetation is prohibited or restricted by Act treated areas, over time, in order to preserve of Congress or Presidential proclamation (in- (A), the Secretary shall not carry out any portion of a covered project in a stand that the forest health benefits achieved. cluding the applicable implementation plan); SEC. 103. PRIORITIZATION. or is identified as an old growth stand (based on substantial supporting evidence) by any per- (a) IN GENERAL.—In accordance with the (3) a Wilderness Study Area. Implementation Plan, the Secretary shall (e) OLD GROWTH STANDS.— son during scoping. (ii) PERIOD.—Clause (i) applies during the develop an annual program of work for Fed- (1) DEFINITIONS.—In this subsection and eral land that gives priority to authorized subsection (f): period— (I) beginning on the termination of the ap- hazardous fuel reduction projects that pro- (A) COVERED PROJECT.—The term ‘‘covered vide for the protection of at-risk commu- project’’ means an authorized hazardous fuel plicable period for the standards described in subparagraph (A); and nities or watersheds or that implement com- reduction project carried out under para- munity wildfire protection plans. (II) ending on the earlier of— graph (1), (2), (3), or (5) of subsection (a). (b) COLLABORATION.— (aa) the date the Secretary completes the (B) OLD GROWTH STAND.—The term ‘‘old (1) IN GENERAL.—The Secretary shall con- action required by subparagraph (B) for the growth stand’’ has the meaning given the sider recommendations under subsection (a) standards; or term under standards used pursuant to para- that are made by at-risk communities that (bb) the date on which the acreage limita- graphs (3) and (4), based on the structure and have developed community wildfire protec- tion specified in subsection (c) (as that limi- composition characteristic of the forest tion plans. tation may be adjusted by subsequent Act of type, and in accordance with applicable law, (2) EXEMPTION.—The Federal Advisory Congress) is reached. including section 6(g)(3)(B) of the Forest and Committee Act (5 U.S.C. App.) shall not Rangeland Renewable Resources Planning (f) LARGE TREE RETENTION.—Except in old apply to the planning process and rec- Act of 1974 (16 U.S.C. 1604(g)(3)(B)). growth stands where the standards are con- ommendations concerning community wild- (C) STANDARDS.—The term ‘‘standards’’ sistent with subsection (e)(2), the Secretary fire protection plans. means definitions, designations, standards, shall carry out a covered project in a manner (c) ADMINISTRATION.— guidelines, goals, or objectives established that— (1) IN GENERAL.—Federal agency involve- for an old growth stand under a resource (1) focuses largely on small diameter trees, ment in a community wildfire protection management plan developed in accordance thinning, strategic fuel breaks, and pre- plan, or a recommendation made in a com- with applicable law, including section scribed fire to modify fire behavior, as meas- munity wildfire protection plan, shall not be 6(g)(3)(B) of the Forest and Rangeland Re- ured by the projected reduction of considered a Federal agency action under the newable Resources Planning Act of 1974 (16 uncharacteristically severe wildfire effects National Environmental Policy Act of 1969 U.S.C. 1604(g)(3)(B)). for the forest type (such as adverse soil im- (42 U.S.C. 4321 et seq.). (2) PROJECT REQUIREMENTS.—In carrying pacts, tree mortality or other impacts); and (2) COMPLIANCE.—In implementing author- out a covered project, the Secretary shall (2) maximizes the retention of large trees, ized hazardous fuel reduction projects on fully maintain, or contribute toward the res- as appropriate for the forest type, to the ex- Federal land, the Secretary shall, in accord- toration of, the structure and composition of tent that the trees promote fire-resilient ance with section 104, comply with the Na- old growth stands according to the pre-fire stands and the purposes of section 6(g)(3)(B) tional Environmental Policy Act of 1969 (42 suppression old growth conditions char- of the Forest and Rangeland Renewable Re- U.S.C. 4321 et seq.). acteristic of the forest type, taking into ac- sources Planning Act of 1976 (16 U.S.C. (d) FUNDING ALLOCATION.— count the contribution of the stand to land- 1604(g)(3)(B)). (1) FEDERAL LAND.— scape fire adaptation and watershed health, (g) MONITORING AND ASSESSING FOREST AND (A) IN GENERAL.—Subject to subparagraph and retaining the large trees contributing to RANGELAND HEALTH.— (B), the Secretary shall use not less than 50 old growth structure. (1) IN GENERAL.—For each Forest Service percent of the funds allocated for authorized (3) NEWER STANDARDS.— administrative region and each Bureau of hazardous fuel reduction projects in the (A) IN GENERAL.—If the standards for an Land Management State Office, the Sec- wildland-urban interface. old growth stand were established during the retary shall— (B) APPLICABILITY AND ALLOCATION.—The 10-year period ending on the date of enact- (A) monitor the results of the projects au- funding allocation in subparagraph (A) shall ment of this Act, the Secretary shall meet thorized under this section; and apply at the national level, and the Sec- the requirements of paragraph (2) in carrying (B) not later than 5 years after the date of retary may allocate the proportion of funds out a covered project by implementing the enactment of this Act, and each 5 years differently than is required under subpara- standards. thereafter, issue a report that includes— graph (A) within individual management

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.071 S04PT1 S13930 CONGRESSIONAL RECORD — SENATE November 4, 2003 units as appropriate, in particular to con- hazardous fuel reduction projects and pro- carried out under this title shall not exceed duct authorized hazardous fuel reduction vide notice of the final agency actions. 60 days. projects on land described in section SEC. 105. SPECIAL ADMINISTRATIVE REVIEW (2) RENEWAL.— 102(a)(4). PROCESS. (A) IN GENERAL.—A court of competent ju- (2) NON-FEDERAL LAND.—In providing finan- (a) INTERIM FINAL REGULATIONS.— risdiction may issue 1 or more renewals of cial assistance under any provision of law for (1) IN GENERAL.—Not later than 30 days any preliminary injunction, or stay pending hazardous fuel reduction projects on non- after the date of the enactment of this Act, appeal, granted under paragraph (1). Federal land, the Secretary shall consider the Secretary of Agriculture shall promul- (B) UPDATES.—In each renewal of an in- recommendations made by at-risk commu- gate interim final regulations to establish a junction in an action, the parties to the ac- nities that have developed community wild- predecisional administrative review process tion shall present the court with updated in- fire protection plans. for the period described in paragraph (2) that formation on the status of the authorized SEC. 104. ENVIRONMENTAL ANALYSIS. will serve as the sole means by which a per- hazardous fuel reduction project. (a) AUTHORIZED HAZARDOUS FUEL REDUC- son can seek administrative review regard- (3) BALANCING OF SHORT- AND LONG-TERM TION PROJECTS.—Except as otherwise pro- ing an authorized hazardous fuel reduction EFFECTS.—As part of its weighing the equi- vided in this title, the Secretary shall con- project on Forest Service land. ties while considering any request for an in- duct authorized hazardous fuel reduction (2) PERIOD.—The predecisional administra- junction that applies to an agency action projects in accordance with— tive review process required under paragraph under an authorized hazardous fuel reduction (1) the National Environmental Policy Act (1) shall occur during the period— project, the court reviewing the project shall of 1969 (42 U.S.C. 4331 et seq.); and (A) beginning after the completion of the balance the impact to the ecosystem likely (2) other applicable laws. environmental assessment or environmental affected by the project of— (b) ENVIRONMENTAL ASSESSMENT OR IMPACT impact statement; and (A) the short- and long-term effects of un- STATEMENTS.— (B) ending not later than the date of the dertaking the agency action; against (1) IN GENERAL.—The Secretary shall pre- issuance of the final decision approving the (B) the short- and long-term effects of not pare an environmental assessment or an en- project. undertaking the agency action. vironmental impact statement (pursuant to (3) EFFECTIVE DATE.—The interim final reg- SEC. 107. EFFECT OF TITLE. section 102(2) of the National Environmental ulations promulgated under paragraph (1) (a) OTHER AUTHORITY.—Nothing in this Policy Act of 1969 (42 U.S.C. 4332(2))) for any shall take effect on the date of promulgation title affects, or otherwise biases, the use by authorized hazardous fuel reduction project. of the regulations. the Secretary of other statutory or adminis- (2) ALTERNATIVES.—In the environmental (b) FINAL REGULATIONS.—The Secretary trative authority (including categorical ex- assessment or environmental impact state- shall promulgate final regulations to estab- clusions adopted to implement the National ment prepared under paragraph (1), the Sec- lish the process described in subsection (a)(1) Environmental Policy Act of 1969 (42 U.S.C. retary shall study, develop, and describe— after the interim final regulations have been 4321 et seq.)) to conduct a hazardous fuel re- (A) the proposed agency action; published and reasonable time has been pro- duction project on Federal land (including (B) the alternative of no action; and vided for public comment. Federal land identified in section 102(d)) that (C) an additional action alternative, if the (c) ADMINISTRATIVE REVIEW.— is not conducted using the process author- additional alternative— (1) IN GENERAL.—A person may bring a civil ized by section 104. (i) is proposed during scoping or the col- action challenging an authorized hazardous (b) NATIONAL FOREST SYSTEM.—For laborative process; and fuel reduction project in a Federal district projects and activities of the National Forest (ii) meets the purpose and need of the court only if the person has challenged the System other than authorized hazardous fuel project, in accordance with regulations pro- authorized hazardous fuel reduction project reduction projects, nothing in this title af- mulgated by the Council on Environmental by exhausting— fects, or otherwise biases, the notice, com- Quality. (A) the administrative review process es- ment, and appeal procedures for projects and (3) MULTIPLE ADDITIONAL ALTERNATIVES.—If tablished by the Secretary of Agriculture activities of the National Forest System more than 1 additional alternative is pro- under this section; or contained in part 215 of title 36, Code of Fed- posed under paragraph (2)(C), the Secretary (B) the administrative hearings and ap- eral Regulations, or the consideration or dis- shall— peals procedures established by the Depart- position of any legal action brought with re- (A) select which additional alternative to ment of the Interior. spect to the procedures. consider; and (2) ISSUES.—An issue may be considered in SEC. 108. AUTHORIZATION OF APPROPRIATIONS. (B) provide a written record describing the the judicial review of an action under section There is authorized to be appropriated reasons for the selection. 106 only if the issue was raised in an admin- $760,000,000 for each fiscal year to carry out— (c) PUBLIC NOTICE AND MEETING.— istrative review process described in para- (1) activities authorized by this title; and (1) PUBLIC NOTICE.—The Secretary shall graph (1). (2) other hazardous fuel reduction activi- provide notice of each authorized hazardous (3) EXCEPTION.—An exception to the re- ties of the Secretary, including making fuel reduction project in accordance with ap- quirement of exhausting the administrative grants to States for activities authorized by plicable regulations and administrative review process before seeking judicial review law. guidelines. shall be available if a Federal court finds TITLE II—BIOMASS (2) PUBLIC MEETING.—During the prepara- that the futility or inadequacy exception ap- SEC. 201. FINDINGS. tion stage of each authorized hazardous fuel plies to a specific plaintiff or claim. Congress finds that— reduction project, the Secretary shall— SEC. 106. JUDICIAL REVIEW IN UNITED STATES (1)(A) thousands of communities in the (A) conduct a public meeting at an appro- DISTRICT COURTS. United States, many located near Federal priate location proximate to the administra- (a) VENUE.—Notwithstanding section 1391 land, are at risk of wildfire; tive unit of the Federal land on which the of title 28, United States Code, or other ap- (B) more than 100,000,000 acres of land man- authorized hazardous fuel reduction project plicable law, an authorized hazardous fuels aged by the Secretary of Agriculture and the will be conducted; and reduction project conducted under this title Secretary of the Interior are at risk of cata- (B) provide advance notice of the location, shall be subject to judicial review only in the strophic fire in the near future; and date, and time of the meeting. United States district court for the district (C) the accumulation of heavy forest and (d) PUBLIC COLLABORATION.—In order to en- courage meaningful public participation dur- in which the Federal land to be treated rangeland fuel loads continues to increase as ing preparation of authorized hazardous fuel under the authorized hazardous fuels reduc- a result of fire exclusion, disease, insect in- reduction projects, the Secretary shall facili- tion project is located. festations, and drought, further raising the tate collaboration among State and local (b) EXPEDITIOUS COMPLETION OF JUDICIAL risk of fire each year; governments and Indian tribes, and partici- REVIEW.—In the judicial review of an action (2)(A) more than 70,000,000 acres across all pation of interested persons, during the prep- challenging an authorized hazardous fuel re- land ownerships are at risk of higher than aration of each authorized fuel reduction duction project under subsection (a), Con- normal mortality during the 15-year period project in a manner consistent with the Im- gress encourages a court of competent juris- beginning on the date of enactment of this plementation Plan. diction to expedite, to the maximum extent Act because of insect infestation and disease; (e) ENVIRONMENTAL ANALYSIS AND PUBLIC practicable, the proceedings in the action and COMMENT.—In accordance with section 102(2) with the goal of rendering a final determina- (B) high levels of tree mortality from in- of the National Environmental Policy Act of tion on jurisdiction, and (if jurisdiction ex- sects and disease result in— 1969 (42 U.S.C. 4332(2)) and the applicable reg- ists) a final determination on the merits, as (i) increased fire risk; ulations and administrative guidelines, the soon as practicable after the date on which a (ii) loss of older trees and old growth; Secretary shall provide an opportunity for complaint or appeal is filed to initiate the (iii) degraded watershed conditions; public comment during the preparation of action. (iv) changes in species diversity and pro- any environmental assessment or environ- (c) INJUNCTIONS.— ductivity; mental impact statement for an authorized (1) IN GENERAL.—Subject to paragraph (2), (v) diminished fish and wildlife habitat; hazardous fuel reduction project. the length of any preliminary injunctive re- (vi) decreased timber values; and (f) DECISION DOCUMENT.—The Secretary lief and stays pending appeal covering an au- (vii) increased threats to homes, busi- shall sign a decision document for authorized thorized hazardous fuel reduction project nesses, and community watersheds;

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.071 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13931 (3)(A) preventive treatments (such as re- (i) is not wholly contained within a metro- SEC. 204. REPORTING REQUIREMENT. ducing fuel loads, crown density, ladder politan statistical area; and (a) REPORT REQUIRED.—Not later than Oc- fuels, and hazard trees), planting proper spe- (ii) the Secretary, in the sole discretion of tober 1, 2008, the Secretary of Agriculture, in cies mix, restoring and protecting early suc- the Secretary, determines contains or is lo- consultation with the Secretary of the Inte- cessional habitat, and completing other spe- cated near, or with a water supply system rior, shall submit to the Committee on Re- cific restoration treatments designed to re- that contains or is located near, land— sources and the Committee on Agriculture of duce the susceptibility of forest and range- (I) the condition of which is at significant the House of Representatives and the Com- land to insect outbreaks, disease, and cata- risk of catastrophic wildfire, disease, or in- mittee on Energy and Natural Resources and strophic fire present the greatest oppor- sect infestation; or the Committee on Agriculture, Nutrition, tunity for long-term forest and rangeland (II) that suffers from disease or insect in- and Forestry of the Senate a report describ- health, maintenance, and enhancement by festation. ing the results of the grant programs author- creating a mosaic of species-mix and age dis- (4) SECRETARY.—The term ‘‘Secretary’’ ized by section 203. tribution; and means— (b) CONTENTS OF REPORT.—The report shall (B) those vegetation management treat- (A) the Secretary of Agriculture, with re- include— ments are widely acknowledged to be more spect to National Forest System land; and (1) an identification of the source, size, successful and cost-effective than suppres- (B) the Secretary of the Interior, with re- type, and the end-use of biomass by persons sion treatments in the case of insects, dis- spect to Federal land under the jurisdiction that receive grants under section 203; ease, and fire; of the Secretary of the Interior (including (2) the haul costs incurred and the distance (4)(A) the byproducts of vegetative man- land held in trust for the benefit of an Indian between the land from which the biomass agement treatment (such as trees, brush, tribe). was removed and the facilities that used the thinnings, chips, slash, and other hazardous SEC. 203. GRANTS TO IMPROVE COMMERCIAL biomass; fuels) removed from forest and rangeland VALUE OF FOREST BIOMASS FOR (3) the economic impacts, particularly new represent an abundant supply of— ELECTRIC ENERGY, USEFUL HEAT, job creation, resulting from the grants to TRANSPORTATION FUELS, COM- (i) biomass for biomass-to-energy facili- and operation of the eligible operations; and POST, VALUE-ADDED PRODUCTS, (4) the environmental effects of the activi- ties; and AND PETROLEUM-BASED PRODUCT (ii) raw material for business; and SUBSTITUTES. ties described in this section. (B) there are currently few markets for the (a) BIOMASS COMMERCIAL UTILIZATION SEC. 205. IMPROVED BIOMASS USE RESEARCH PROGRAM. extraordinary volumes of by-products being GRANT PROGRAM.— (a) USES OF GRANTS, CONTRACTS, AND AS- generated as a result of the necessary large- (1) IN GENERAL.—The Secretary may make scale preventive treatment activities; and grants to any person that owns or operates a SISTANCE.—Section 307(d) of the Biomass Re- search and Development Act of 2000 (7 U.S.C. (5) the United States should— facility that uses biomass as a raw material 7624 note; Public Law 106–224) is amended— (A) promote economic and entrepreneurial to produce electric energy, sensible heat, (1) in paragraph (3), by striking ‘‘or’’ at the opportunities in using by-products removed transportation fuels, substitutes for petro- end; through vegetation treatment activities re- leum-based products, wood-based products, (2) in paragraph (4), by striking the period lating to hazardous fuels reduction, disease, pulp, or other commercial products to offset at the end and inserting ‘‘; or’’; and and insect infestation; the costs incurred to purchase biomass for (3) by adding at the end the following: (B) develop and expand markets for tradi- use by the facility. ‘‘(5) research to integrate silviculture, har- tionally underused wood and biomass as an (2) GRANT AMOUNTS.—A grant under this vesting, product development, processing in- outlet for by-products of preventive treat- subsection may not exceed $20 per green ton formation, and economic evaluation to pro- ment activities; and of biomass delivered. vide the science, technology, and tools to (C) promote research and development to (3) MONITORING OF GRANT RECIPIENT ACTIVI- forest managers and community developers provide, for the by-products, economically TIES.— for use in evaluating forest treatment and and environmentally sound— (A) IN GENERAL.—As a condition of a grant production alternatives, including— (i) management systems; under this subsection, the grant recipient ‘‘(A) to develop tools that would enable (ii) harvest and transport systems; and shall keep such records as the Secretary may land managers, locally or in a several-State (iii) utilization options. require to fully and correctly disclose the use of the grant funds and all transactions region, to estimate— SEC. 202. DEFINITIONS. involved in the purchase of biomass. ‘‘(i) the cost to deliver varying quantities In this title: (B) ACCESS.—On notice by a representative of wood to a particular location; and IOMASS.—The term ‘‘biomass’’ means (1) B of the Secretary, the grant recipient shall af- ‘‘(ii) the amount that could be paid for trees and woody plants (including limbs, ford the representative— stumpage if delivered wood was used for a tops, needles, other woody parts, and wood (i) reasonable access to the facility that specific mix of products; waste) and byproducts of preventive treat- purchases or uses biomass; and ‘‘(B) to conduct research focused on devel- ment (such as wood, brush, thinnings, chips, (ii) an opportunity to examine the inven- oping appropriate thinning systems and and slash) that are removed— tory and records of the facility. equipment designs that are— (A) to reduce hazardous fuels; (b) VALUE-ADDED GRANT PROGRAM.— ‘‘(i) capable of being used on land without (B) to reduce the risk of or to contain dis- (1) IN GENERAL.—The Secretary— significant adverse effects on the land; ease or insect infestation; or (A) may make grants to persons to offset ‘‘(ii) capable of handling large and varied (C) to improve forest health and wildlife the cost of projects to add value to biomass; landscapes; habitat conditions. and ‘‘(iii) adaptable to handling a wide variety (2) PERSON.—The term ‘‘person’’ includes— (B) in making a grant under subparagraph of tree sizes; (A) an individual; (A), shall give preference to persons in pre- ‘‘(iv) inexpensive; and (B) a community (as determined by the ferred communities. ‘‘(v) adaptable to various terrains; and Secretary); (2) SELECTION.—The Secretary shall select ‘‘(C) to develop, test, and employ in the (C) an Indian tribe; a grant recipient under paragraph (1)(A) training of forestry managers and commu- (D) a small business, microbusiness, or a after giving consideration to— nity developers curricula materials and corporation that is incorporated in the (A) the anticipated public benefits of the training programs on matters described in United States; and project; subparagraphs (A) and (B).’’. (E) a nonprofit organization. (B) opportunities for the creation or expan- (b) FUNDING.—Section 310(b) of the Biomass (3) PREFERRED COMMUNITY.—The term sion of small businesses and microbusinesses Research and Development Act of 2000 (7 ‘‘preferred community’’ means— resulting from the project; and U.S.C. 7624 note; Public Law 106–224) is (A) any town, township, municipality, In- (C) the potential for new job creation as a amended by striking ‘‘$49,000,000’’ and insert- dian tribe, or other similar unit of local gov- result of the project. ing ‘‘$54,000,000’’. ernment (as determined by the Secretary) (3) GRANT AMOUNT.—A grant under this SEC. 206. RURAL REVITALIZATION THROUGH that— subsection shall not exceed $100,000. FORESTRY. (i) has a population of not more than 50,000 (c) RELATION TO OTHER ENDANGERED SPE- Section 2371 of the Food, Agriculture, Con- individuals; and CIES AND RIPARIAN PROTECTIONS.— servation, and Trade Act of 1990 (7 U.S.C. (ii) the Secretary, in the sole discretion of (1) IN GENERAL.—The Secretary shall com- 6601) is amended by adding at the end the fol- the Secretary, determines contains or is lo- ply with applicable endangered species and lowing: cated near, or with a water supply system riparian protections in making grants under ‘‘(d) RURAL REVITALIZATION TECH- that contains or is located near, land that— this section. NOLOGIES.— (I) is at significant risk of catastrophic (2) PROJECTS.—Projects funded using grant ‘‘(1) IN GENERAL.—The Secretary of Agri- wildfire, disease, or insect infestation; or proceeds shall be required to comply with culture, acting through the Chief of the For- (II) suffers from disease or insect infesta- the protections. est Service, in consultation with the State tion; or (d) AUTHORIZATION OF APPROPRIATIONS.— and Private Forestry Technology Marketing (B) any area or unincorporated area rep- There is authorized to be appropriated to Unit at the Forest Products Laboratory, and resented by a nonprofit organization ap- carry out this section $25,000,000 for each of in collaboration with eligible institutions, proved by the Secretary, that— fiscal years 2004 through 2008. may carry out a program—

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00093 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.071 S04PT1 S13932 CONGRESSIONAL RECORD — SENATE November 4, 2003 ‘‘(A) to accelerate adoption of technologies Education, and Extension Service for the management practices relating to watershed using biomass and small-diameter materials; purpose of expanding State forest steward- forestry; ‘‘(B) to create community-based enter- ship capacities and activities through State ‘‘(D) watershed-scale forest management prises through marketing activities and forestry best-management practices and activities and conservation planning; and demonstration projects; and other means at the State level to address wa- ‘‘(E)(i) the restoration of wetland (as de- ‘‘(C) to establish small-scale business en- tershed issues on non-Federal forested land fined by the States) and stream-side forests; terprises to make use of biomass and small- and potentially forested land. and diameter materials. ‘‘(c) TECHNICAL ASSISTANCE TO PROTECT ‘‘(ii) the establishment of riparian vegeta- ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— WATER QUALITY.— tive buffers. There is authorized to be appropriated to ‘‘(1) IN GENERAL.—The Secretary, in co- ‘‘(4) COST-SHARING.— carry out this subsection $5,000,000 for each operation with State foresters, officials of ‘‘(A) FEDERAL SHARE.— of fiscal years 2004 through 2008.’’. the Cooperative State Research, Education, ‘‘(i) FUNDS UNDER THIS SUBSECTION.—Funds TITLE III—WATERSHED FORESTRY and Extension Service, or equivalent State provided under this subsection for a water- ASSISTANCE officials, shall engage interested members of shed forestry project may not exceed 75 per- cent of the cost of the project. SEC. 301. FINDINGS AND PURPOSES. the public, including nonprofit organizations ‘‘(ii) OTHER FEDERAL FUNDS.—The percent- (a) FINDINGS.—Congress finds that— and local watershed councils, to develop a program of technical assistance to protect age of the cost of a project described in (1) there has been a dramatic shift in pub- clause (i) that is not covered by funds made lic attitudes and perceptions about forest water quality described in paragraph (2). ‘‘(2) PURPOSE OF PROGRAM.—The program available under this subsection may be paid management, particularly in the under- using other Federal funding sources, except standing and practice of sustainable forest under this subsection shall be designed— ‘‘(A) to build and strengthen watershed that the total Federal share of the costs of management; the project may not exceed 90 percent. (2) it is commonly recognized that the partnerships that focus on forested land- scapes at the State, regional, and local lev- ‘‘(B) FORM.—The non-Federal share of the proper stewardship of forest land is essential costs of a project may be provided in the to sustaining and restoring the health of wa- els; ‘‘(B) to provide State forestry best-man- form of cash, services, or other in-kind con- tersheds; tributions. (3) forests can provide essential ecological agement practices and water quality tech- nical assistance directly to owners of non- ‘‘(5) PRIORITIZATION.—The State Forest services in filtering pollutants, buffering im- Stewardship Coordinating Committee for a portant rivers and estuaries, and minimizing industrial private forest land; ‘‘(C) to provide technical guidance to land State, or equivalent State committee, shall flooding, which makes forest restoration prioritize watersheds in that State to target worthy of special focus; and managers and policymakers for water qual- ity protection through forest management; watershed forestry projects funded under (4) strengthened education, technical as- this subsection. sistance, and financial assistance for non- ‘‘(D) to complement State and local efforts ‘‘(6) WATERSHED FORESTER.—Financial and industrial private forest landowners and to protect water quality and provide en- hanced opportunities for consultation and technical assistance shall be made available communities, relating to the protection of to the State Forester or equivalent State of- watershed health, is needed to realize the ex- cooperation among Federal and State agen- cies charged with responsibility for water ficial to create a State watershed or best- pectations of the general public. management practice forester position to— (b) PURPOSES.—The purposes of this title and watershed management; and ‘‘(A) lead statewide programs; and are— ‘‘(E) to provide enhanced forest resource data and support for improved implementa- ‘‘(B) coordinate watershed-level projects. (1) to improve landowner and public under- ‘‘(e) DISTRIBUTION.— tion and monitoring of State forestry best- standing of the connection between forest ‘‘(1) IN GENERAL.—Of the funds made avail- management practices. management and watershed health; able for a fiscal year under subsection (g), ‘‘(3) IMPLEMENTATION.—In the case of a par- (2) to encourage landowners to maintain the Secretary shall use— ticipating State, the program of technical tree cover on property and to use tree plant- ‘‘(A) at least 75 percent of the funds to assistance shall be implemented by State ings and vegetative treatments as creative carry out the cost-share program under sub- foresters or equivalent State officials. solutions to watershed problems associated section (d); and with varying land uses; ‘‘(d) WATERSHED FORESTRY COST-SHARE ‘‘(B) the remainder of the funds to deliver (3) to enhance and complement forest man- PROGRAM.— technical assistance, education, and plan- agement and buffer use for watersheds, with ‘‘(1) IN GENERAL.—The Secretary shall es- ning, at the local level, through the State an emphasis on community watersheds; tablish a watershed forestry cost-share pro- Forester or equivalent State official. gram— (4) to establish new partnerships and col- ‘‘(2) SPECIAL CONSIDERATIONS.—Distribu- laborative watershed approaches to forest ‘‘(A) which shall be— tion of funds by the Secretary among States management, stewardship, and conservation; ‘‘(i) administered by the Forest Service; under paragraph (1) shall be made only after (5) to provide technical and financial as- and giving appropriate consideration to— sistance to States to deliver a coordinated ‘‘(ii) implemented by State foresters or ‘‘(A) the acres of agricultural land, non- program that enhances State forestry best- equivalent State officials in participating industrial private forest land, and highly management practices programs, and con- States; and erodible land in each State; serves and improves forested land and poten- ‘‘(B) under which funds or other support ‘‘(B) the miles of riparian buffer needed; tially forested land, through technical, fi- provided to participating States shall be ‘‘(C) the miles of impaired stream seg- nancial, and educational assistance to quali- made available for State forestry best-man- ments and other impaired water bodies fying individuals and entities; and agement practices programs and watershed where forestry practices can be used to re- (6) to maximize the proper management forestry projects. store or protect water resources; and conservation of wetland forests and to ‘‘(2) WATERSHED FORESTRY PROJECTS.—The ‘‘(D) the number of owners of nonindustrial assist in the restoration of those forests. State forester, State Research, Education private forest land in each State; and SEC. 302. WATERSHED FORESTRY ASSISTANCE and Extension official, or equivalent State ‘‘(E) water quality cost savings that can be PROGRAM. official of a participating State, in coordina- achieved through forest watershed manage- The Cooperative Forestry Assistance Act tion with the State Forest Stewardship Co- ment. of 1978 is amended by inserting after section ordinating Committee established under sec- ‘‘(f) WILLING OWNERS.— 5 (16 U.S.C. 2103a) the following: tion 19(b) (or an equivalent committee) for ‘‘(1) IN GENERAL.—Participation of an ‘‘SEC. 6. WATERSHED FORESTRY ASSISTANCE that State, shall make awards to commu- owner of nonindustrial private forest land in PROGRAM. nities, nonprofit groups, and owners of non- the watershed forestry assistance program ‘‘(a) DEFINITION OF NONINDUSTRIAL PRIVATE industrial private forest land under the pro- under this section is voluntary. FOREST LAND.—In this section, the term gram for watershed forestry projects de- ‘‘(2) WRITTEN CONSENT.—The watershed for- ‘nonindustrial private forest land’ means scribed in paragraph (3). estry assistance program shall not be carried rural land, as determined by the Secretary, ‘‘(3) PROJECT ELEMENTS AND OBJECTIVES.—A out on nonindustrial private forest land that— watershed forestry project shall accomplish without the written consent of the owner of, ‘‘(1) has existing tree cover or that is suit- critical forest stewardship, watershed pro- or entity having definitive decisionmaking able for growing trees; and tection, and restoration needs within a State over, the nonindustrial private forest land. ‘‘(2) is owned by any nonindustrial private by demonstrating the value of trees and for- ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— individual, group, association, corporation, ests to watershed health and condition There is authorized to be appropriated to or other private legal entity, that has defini- through— carry out this section $15,000,000 for each of tive decisionmaking authority over the land. ‘‘(A) the use of trees as solutions to water fiscal years 2004 through 2008.’’. ‘‘(b) GENERAL AUTHORITY AND PURPOSE.— quality problems in urban and rural areas; SEC. 303. TRIBAL WATERSHED FORESTRY ASSIST- The Secretary, acting through the Chief of ‘‘(B) community-based planning, involve- ANCE. the Forest Service, may provide technical, ment, and action through State, local and (a) IN GENERAL.—The Secretary of Agri- financial, and related assistance to State nonprofit partnerships; culture (referred to in this section as the foresters, equivalent State officials, and offi- ‘‘(C) application of and dissemination of ‘‘Secretary’’), acting through the Chief of cials of the Cooperative State Research, monitoring information on forestry best- the Forest Service, shall provide technical,

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00094 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.071 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13933 financial, and related assistance to Indian (1) at least 75 percent of the funds made (10) only through the full funding, develop- tribes for the purpose of expanding tribal available for a fiscal year under subsection ment, and assessment of potential applied stewardship capacities and activities (e) to the program under subsection (c); and silvicultural assessments over specific time through tribal forestry best-management (2) the remainder of the funds to deliver frames across an array of environmental and practices and other means at the tribal level technical assistance, education, and plan- climatic conditions can the most innovative to address watershed issues on land under ning on the ground to Indian tribes. and cost effective management applications the jurisdiction of or administered by the In- (e) AUTHORIZATION OF APPROPRIATIONS.— be determined that will help reduce the sus- dian tribes. There is authorized to be appropriated to ceptibility of forest ecosystems to attack by carry out this section $2,500,000 for each of forest pests; (b) TECHNICAL ASSISTANCE TO PROTECT fiscal years 2004 through 2008. (11)(A) often, there are significant inter- WATER QUALITY.— TITLE IV—INSECT INFESTATIONS AND actions between insects and diseases; (1) IN GENERAL.—The Secretary, in coopera- RELATED DISEASES (B) many diseases (such as white pine blis- tion with Indian tribes, shall develop a pro- ter rust, beech bark disease, and many other gram to provide technical assistance to pro- SEC. 401. FINDINGS AND PURPOSE. diseases) can weaken trees and forest stands tect water quality, as described in paragraph (a) FINDINGS.—Congress finds that— and predispose trees and forest stands to in- (2). (1) high levels of tree mortality resulting from insect infestation (including the inter- sect attack; and (2) PURPOSE OF PROGRAM.—The program (C) certain diseases are spread using in- under this subsection shall be designed— action between insects and diseases) may re- sects as vectors (including Dutch elm disease (A) to build and strengthen watershed sult in— and pine pitch canker); and partnerships that focus on forested land- (A) increased fire risk; (B) loss of old trees and old growth; (12) funding and implementation of an ini- scapes at the State, regional, tribal, and (C) loss of threatened and endangered spe- tiative to combat forest pest infestations local levels; cies; and associated diseases should not come at (B) to provide tribal forestry best-manage- (D) loss of species diversity; the expense of supporting other programs ment practices and water quality technical (E) degraded watershed conditions; and initiatives of the Secretary. assistance directly to Indian tribes; (F) increased potential for damage from (C) to provide technical guidance to tribal (b) PURPOSES.—The purposes of this title other agents of disturbance, including ex- land managers and policy makers for water are— otic, invasive species; and quality protection through forest manage- (1) to require the Secretary to develop an (G) decreased timber values; ment; accelerated basic and applied assessment (2)(A) forest-damaging insects destroy hun- program to combat infestations by forest- (D) to complement tribal efforts to protect dreds of thousands of acres of trees each water quality and provide enhanced opportu- damaging insects and associated diseases; year; (2) to enlist the assistance of colleges and nities for consultation and cooperation (B) in the West, more than 21,000,000 acres among Federal agencies and tribal entities universities (including forestry schools, land are at high risk of forest-damaging insect in- grant colleges and universities, and 1890 In- charged with responsibility for water and festation, and in the South, more than watershed management; and stitutions), State agencies, and private land- 57,000,000 acres are at risk across all land owners to carry out the program; and (E) to provide enhanced forest resource ownerships; and data and support for improved implementa- (3) to carry out applied silvicultural assess- (C) severe drought conditions in many ments. tion and monitoring of tribal forestry best- areas of the South and West will increase the management practices. risk of forest-damaging insect infestations; SEC. 402. DEFINITIONS. (c) WATERSHED FORESTRY PROGRAM.— (3) the hemlock woolly adelgid is— In this title: (1) IN GENERAL.—The Secretary shall estab- (A) destroying streamside forests through- (1) APPLIED SILVICULTURAL ASSESSMENT.— lish a watershed forestry program to be ad- out the mid-Atlantic and Appalachian re- (A) IN GENERAL.—The term ‘‘applied sil- ministered by Indian tribes. gions; vicultural assessment’’ means any vegeta- (2) PROGRAMS AND PROJECTS.—Funds or (B) threatening water quality and sensitive tive or other treatment carried out for a pur- other support provided under the program aquatic species; and pose described in section 403. shall be made available for tribal forestry (C) posing a potential threat to valuable (B) INCLUSIONS.—The term ‘‘applied sil- best-management practices programs and commercial timber land in northern New vicultural assessment’’ includes (but is not watershed forestry projects. England; limited to) timber harvesting, thinning, pre- (3) ANNUAL AWARDS.—The Secretary shall (4)(A) the emerald ash borer is a nonnative, scribed burning, pruning, and any combina- annually make awards to Indian tribes to invasive pest that has quickly become a tion of those activities. carry out this subsection. major threat to hardwood forests because an (2) 1890 INSTITUTION.— (4) PROJECT ELEMENTS AND OBJECTIVES.—A emerald ash borer infestation is almost al- (A) IN GENERAL.—The term ‘‘1890 Institu- watershed forestry project shall accomplish ways fatal to affected trees; and tion’’ means a college or university that is critical forest stewardship, watershed pro- (B) the emerald ash borer pest threatens to eligible to receive funds under the Act of Au- tection, and restoration needs within land destroy more than 692,000,000 ash trees in for- gust 30, 1890 (7 U.S.C. 321 et seq.). under the jurisdiction of or administered by ests in Michigan and Ohio alone, and be- (B) INCLUSION.—The term ‘‘1890 Institu- an Indian tribe by demonstrating the value tween 5 and 10 percent of urban street trees tion’’ includes Tuskegee University. of trees and forests to watershed health and in the Upper Midwest; (3) FOREST-DAMAGING INSECT.—The term condition through— (5)(A) epidemic populations of Southern ‘‘forest-damaging insect’’ means— (A) the use of trees as solutions to water pine beetles are ravaging forests in Alabama, (A) a Southern pine beetle; quality problems; Arkansas, Florida, Georgia, Kentucky, Mis- (B) a mountain pine beetle; (B) application of and dissemination of sissippi, North Carolina, South Carolina, (C) a spruce bark beetle; monitoring information on forestry best- Tennessee, and Virginia; and (D) a gypsy moth; management practices relating to watershed (B) in 2001, Florida and Kentucky experi- (E) a hemlock woolly adelgid; forestry; enced 146 percent and 111 percent increases, (F) an emerald ash borer; (C) watershed-scale forest management ac- respectively, in Southern pine beetle popu- (G) a red oak borer; tivities and conservation planning; lations; (H) a white oak borer; and (6) those epidemic outbreaks of Southern (D) the restoration of wetland and stream- (I) such other insects as may be identified pine beetles have forced private landowners side forests and the establishment of ripar- by the Secretary. to harvest dead and dying trees, in rural ian vegetative buffers; and (4) SECRETARY.—The term ‘‘Secretary’’ areas and increasingly urbanized settings; (E) tribal-based planning, involvement, means— (7) according to the Forest Service, recent and action through State, tribal, local, and (A) the Secretary of Agriculture, acting outbreaks of the red oak borer in Arkansas nonprofit partnerships. through the Forest Service, with respect to and Missouri have been unprecedented, with (5) PRIORITIZATION.—An Indian tribe that National Forest System land; and more than 1,000,000 acres infested at popu- participates in the program under this sub- (B) the Secretary of the Interior, acting lation levels never seen before; section shall prioritize watersheds in land through appropriate offices of the United (8) much of the damage from the red oak under the jurisdiction of or administered by borer has taken place in national forests, States Geological Survey, with respect to the Indian tribe to target watershed forestry and the Federal response has been inad- federally owned land administered by the projects funded under this subsection. equate to protect forest ecosystems and Secretary of the Interior. (6) WATERSHED FORESTER.—The Secretary other ecological and economic resources; SEC. 403. ACCELERATED INFORMATION GATH- may provide to Indian tribes under this sec- (9)(A) previous silvicultural assessments, ERING REGARDING FOREST-DAM- tion financial and technical assistance to es- while useful and informative, have been lim- AGING INSECTS. tablish a position of tribal forester to lead ited in scale and scope of application; and (a) INFORMATION GATHERING.—The Sec- tribal programs and coordinate small water- (B) there have not been sufficient resources retary, acting through the Forest Service shed-level projects. available to adequately test a full array of and United States Geological Survey, as ap- (d) DISTRIBUTION.—The Secretary shall de- individual and combined applied silvicul- propriate, shall establish an accelerated pro- vote— tural assessments; gram—

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.072 S04PT1 S13934 CONGRESSIONAL RECORD — SENATE November 4, 2003 (1) to plan, conduct, and promote com- categorically excluded from documentation the healthy forests reserve program only prehensive and systematic information gath- in an environmental impact statement and with the consent of the owner of the land. ering on forest-damaging insects and associ- environmental assessment under the Na- (e) MAXIMUM ENROLLMENT.—The total ated diseases, including an evaluation of— tional Environmental Policy Act of 1969 (42 number of acres enrolled in the healthy for- (A) infestation, prevention, and suppres- U.S.C. 4321 et seq.). ests reserve program shall not exceed sion methods; (2) ADMINISTRATION.—Applied silvicultural 2,000,000 acres. (B) effects of infestations and associated assessments and research treatments cat- (f) METHODS OF ENROLLMENT.— disease interactions on forest ecosystems; egorically excluded under paragraph (1)— (1) IN GENERAL.—Land may be enrolled in (C) restoration of forest ecosystem efforts; (A) shall not be carried out in an area that the healthy forests reserve program in ac- (D) utilization options regarding infested is adjacent to another area that is categori- cordance with— trees; and cally excluded under paragraph (1) that is (A) a 10-year cost-share agreement; (E) models to predict the occurrence, dis- being treated with similar methods; and (B) a 30-year agreement; or tribution, and impact of outbreaks of forest- (B) shall be subject to the extraordinary (C) an agreement of not more than 99 damaging insects and associated diseases; circumstances procedures established by the years. (2) to assist land managers in the develop- Secretary pursuant to section 1508.4 of title (2) PROPORTION.—The extent to which each ment of treatments and strategies to im- 40, Code of Federal Regulations. enrollment method is used shall be based on prove forest health and reduce the suscepti- (3) MAXIMUM CATEGORICAL EXCLUSION.—The the approximate proportion of owner inter- bility of forest ecosystems to severe infesta- total number of acres categorically excluded est expressed in that method in comparison tions of forest-damaging insects and associ- under paragraph (1) shall not exceed 250,000 to the other methods. ated diseases on Federal land and State and acres. (g) ENROLLMENT PRIORITY.— private land; and (4) NO ADDITIONAL FINDINGS REQUIRED.—In (1) SPECIES.—The Secretary of Agriculture (3) to disseminate the results of the infor- accordance with paragraph (1), the Secretary shall give priority to the enrollment of land mation gathering, treatments, and strate- shall not be required to make any findings as that provides the greatest conservation ben- gies. to whether an applied silvicultural assess- efit to— (b) COOPERATION AND ASSISTANCE.—The ment project, either individually or cumula- (A) primarily, species listed as endangered Secretary shall— tively, has a significant effect on the envi- or threatened under section 4 of the Endan- (1) establish and carry out the program in ronment. gered Species Act of 1973 (16 U.S.C. 1533); and cooperation with— SEC. 405. RELATION TO OTHER LAWS. (B) secondarily, species that— (A) scientists from colleges and univer- The authority provided to each Secretary (i) are not listed as endangered or threat- sities (including forestry schools, land grant under this title is supplemental to, and not ened under section 4 of the Endangered Spe- colleges and universities, and 1890 Institu- in lieu of, any authority provided to the Sec- cies Act of 1973 (16 U.S.C. 1533); but tions); retaries under any other law. (ii) are candidates for such listing, State- (B) Federal, State, and local agencies; and SEC. 406. AUTHORIZATION OF APPROPRIATIONS. listed species, or special concern species. (C) private and industrial landowners; and There are authorized to be appropriated (2) COST-EFFECTIVENESS.—The Secretary of (2) designate such colleges and universities such sums as are necessary to carry out this Agriculture shall also consider the cost-ef- to assist in carrying out the program. title for each of fiscal years 2004 through fectiveness of each agreement, and associ- SEC. 404. APPLIED SILVICULTURAL ASSESS- 2008. ated restoration plans, so as to maximize the MENTS. TITLE V—HEALTHY FORESTS RESERVE environmental benefits per dollar expended. (a) ASSESSMENT EFFORTS.—For informa- PROGRAM SEC. 503. RESTORATION PLANS. tion gathering and research purposes, the (a) IN GENERAL.—Land enrolled in the Secretary may conduct applied silvicultural SEC. 501. ESTABLISHMENT OF HEALTHY FORESTS healthy forests reserve program shall be sub- assessments on Federal land that the Sec- RESERVE PROGRAM. (a) ESTABLISHMENT.—The Secretary of Ag- ject to a restoration plan, to be developed retary determines is at risk of infestation riculture shall establish the healthy forests jointly by the landowner and the Secretary by, or is infested with, forest-damaging in- reserve program for the purpose of restoring sects. of Agriculture. and enhancing forest ecosystems— (b) LIMITATIONS.— (b) PRACTICES.—The restoration plan shall (1) to promote the recovery of threatened (1) EXCLUSION OF CERTAIN AREAS.—Sub- require such restoration practices as are nec- section (a) does not apply to— and endangered species; essary to restore and enhance habitat for— (A) a component of the National Wilder- (2) to improve biodiversity; and (1) species listed as endangered or threat- ness Preservation System; (3) to enhance carbon sequestration. ened under section 4 of the Endangered Spe- (b) COORDINATION.—The Secretary of Agri- (B) any Federal land on which, by Act of cies Act of 1973 (16 U.S.C. 1533); and culture shall carry out the healthy forests Congress or Presidential proclamation, the (2) animal or plant species before the spe- reserve program in coordination with the removal of vegetation is restricted or prohib- cies reach threatened or endangered status, Secretary of the Interior and the Secretary such as candidate, State-listed species, and ited; of Commerce. (C) a congressionally-designated wilderness special concern species. SEC. 502. ELIGIBILITY AND ENROLLMENT OF SEC. 504. FINANCIAL ASSISTANCE. study area; or LANDS IN PROGRAM. (a) AGREEMENTS OF NOT MORE THAN 99 (D) an area in which activities under sub- (a) IN GENERAL.—The Secretary of Agri- YEARS.—In the case of land enrolled in the section (a) would be inconsistent with the culture, in coordination with the Secretary healthy forests reserve program using an applicable land and resource management of the Interior and the Secretary of Com- plan. merce, shall describe and define forest eco- agreement of not more than 99 years de- (2) CERTAIN TREATMENT PROHIBITED.—Noth- systems that are eligible for enrollment in scribed in section 502(f)(1)(C), the Secretary ing in subsection (a) authorizes the applica- the healthy forests reserve program. of Agriculture shall pay the owner of the tion of insecticides in municipal watersheds (b) ELIGIBILITY.—To be eligible for enroll- land an amount equal to not less than 75 per- or associated riparian areas. ment in the healthy forests reserve program, cent, nor more than 100 percent, of (as deter- (3) PEER REVIEW.— land shall be— mined by the Secretary)— (A) IN GENERAL.—Before being carried out, (1) private land the enrollment of which (1) the fair market value of the enrolled each applied silvicultural assessment under will restore, enhance, or otherwise measur- land during the period the land is subject to this title shall be peer reviewed by scientific ably increase the likelihood of recovery of a the agreement, less the fair market value of experts selected by the Secretary, which species listed as endangered or threatened the land encumbered by the agreement; and shall include non-Federal experts. under section 4 of the Endangered Species (2) the actual costs of the approved con- (B) EXISTING PEER REVIEW PROCESSES.—The Act of 1973 (16 U.S.C. 1533); and servation practices or the average cost of ap- Secretary may use existing peer review proc- (2) private land the enrollment of which proved practices carried out on the land dur- esses to the extent the processes comply will restore, enhance, or otherwise measur- ing the period in which the land is subject to with subparagraph (A). ably improve the well-being of species that— the agreement. (c) PUBLIC NOTICE AND COMMENT.— (A) are not listed as endangered or threat- (b) 30-YEAR AGREEMENT.— In the case of (1) PUBLIC NOTICE.—The Secretary shall ened under section 4 of the Endangered Spe- land enrolled in the healthy forests reserve provide notice of each applied silvicultural cies Act of 1973 (16 U.S.C. 1533); but program using a 30-year agreement, the Sec- assessment proposed to be carried out under (B) are candidates for such listing, State- retary of Agriculture shall pay the owner of this section. listed species, or special concern species. the land an amount equal to not more than (2) PUBLIC COMMENT.—The Secretary shall (c) OTHER CONSIDERATIONS.—In enrolling (as determined by the Secretary)— provide an opportunity for public comment land that satisfies the criteria under sub- (1) 75 percent of the fair market value of before carrying out an applied silviculture section (b), the Secretary of Agriculture the land, less the fair market value of the assessment under this section. shall give additional consideration to land land encumbered by the agreement; and (d) CATEGORICAL EXCLUSION.— the enrollment of which will— (2) 75 percent of the actual costs of the ap- (1) IN GENERAL.—Applied silvicultural as- (1) improve biological diversity; and proved conservation practices or 75 percent sessment and research treatments carried (2) increase carbon sequestration. of the average cost of approved practices. out under this section on not more than 1,000 (d) ENROLLMENT BY WILLING OWNERS.—The (c) 10-YEAR AGREEMENT.—In the case of acres for an assessment or treatment may be Secretary of Agriculture shall enroll land in land enrolled in the healthy forests reserve

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00096 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.072 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13935 program using a 10-year cost-share agree- SEC. 602. DEFINITIONS. (1) provide long-term benefits by reducing ment, the Secretary of Agriculture shall pay In this title: hazardous fuels on Federal land; the owner of the land an amount equal to not (1) ALASKA NATIVE CORPORATION.—The term (2) instill in members of the service and more than (as determined by the Sec- ‘‘Alaska Native Corporation’’ means a Re- conservation corps— retary)— gional Corporation or Village Corporation, (A) a work ethic; (1) 50 percent of the actual costs of the ap- as defined in section 101(11) of the National (B) a sense of personal responsibility; and proved conservation practices; or and Community Service Act of 1990 (42 U.S.C. (C) a sense of public service; (2) 50 percent of the average cost of ap- 12511(11)). (3) be labor intensive; and proved practices. (2) CORPS.—The term ‘‘Corps’’ means the (4) be planned and initiated promptly. (d) ACCEPTANCE OF CONTRIBUTIONS.—The Public Land Corps established under section (f) SUPPORTIVE SERVICES.—The Secretaries Secretary of Agriculture may accept and use 603(a). may provide such services as the Secretaries contributions of non-Federal funds to make (3) HAWAIIAN HOME LANDS.—The term ‘‘Ha- consider necessary to carry out this title. payments under this section. waiian home lands’’ means that term, within (g) TECHNICAL ASSISTANCE.—To carry out SEC. 505. TECHNICAL ASSISTANCE. the meaning of the National and Community this title, the Secretaries shall provide tech- (a) IN GENERAL.—The Secretary of Agri- Service Act of 1990 (42 U.S.C. 12501 et seq.). nical assistance, oversight, monitoring, and culture shall provide landowners with tech- (4) INDIAN LANDS.—The term ‘‘Indian evaluation to— nical assistance to assist the owners in com- lands’’ has the meaning given the term in (1) State Departments of Natural Re- plying with the terms of plans (as included section 101 of the National and Community sources and Agriculture (or equivalent agen- in agreements) under the healthy forests re- Service Act of 1990 (42 U.S.C. 12511). cies); and serve program. (5) SECRETARIES.—The term ‘‘Secretaries’’ (2) members of service and conservation (b) TECHNICAL SERVICE PROVIDERS.—The means— corps. Secretary of Agriculture may request the (A) the Secretary of Agriculture; and SEC. 604. NONDISPLACEMENT. services of, and enter into cooperative agree- (B) the Secretary of the Interior. The nondisplacement requirements of sec- ments with, individuals or entities certified (6) SERVICE AND CONSERVATION CORPS.—The tion 177(b) of the National and Community as technical service providers under section term ‘‘service and conservation corps’’ Service Act of 1990 (42 U.S.C. 12637(b)) shall 1242 of the Food Security Act of 1985 (16 means any organization established by a apply to activities carried out by the Corps U.S.C. 3842), to assist the Secretary in pro- State or local government, nonprofit organi- under this title. viding technical assistance necessary to de- zation, or Indian tribe that— SEC. 605. AUTHORIZATION OF APPROPRIATIONS. velop and implement the healthy forests re- (A) has a demonstrable capability to pro- There are authorized to be appropriated to serve program. vide productive work to individuals; carry out this title $15,000,000 for each of fis- SEC. 506. PROTECTIONS AND MEASURES (B) gives participants a combination of cal years 2004 through 2008. (a) PROTECTIONS.—In the case of a land- work experience, basic and life skills, edu- TITLE VII—RURAL COMMUNITY owner that enrolls land in the program and cation, training, and support services; and FORESTRY ENTERPRISE PROGRAM (C) provides participants with the oppor- whose conservation activities result in a net SEC. 701. PURPOSE conservation benefit for listed, candidate, or tunity to develop citizenship values through The purpose of this title is to assist in the other species, the Secretary of Agriculture service to their communities and the United economic revitalization of rural forest re- shall make available to the landowner safe States. source-dependent communities through in- harbor or similar assurances and protection (7) STATE.—The term ‘‘State’’ means— centives and collaboration to promote in- under— (A) a State; vestment in private enterprise and commu- (1) section 7(b)(4) of the Endangered Spe- (B) the District of Columbia; nity development by— cies Act of 1973 (16 U.S.C. 1536(b)(4)); or (C) the Commonwealth of Puerto Rico; (1) the Department of Agriculture; (2) section 10(a)(1) of that Act (16 U.S.C. (D) Guam; (2) the Department of the Interior; 1539(a)(1)). (E) American Samoa; (3) the Department of Commerce; (b) MEASURES.—If protection under sub- (F) the Commonwealth of the Northern (4) the Small Business Administration; section (a) requires the taking of measures Mariana Islands; (5) land grant colleges and universities; that are in addition to the measures covered (G) the Federated States of Micronesia; and by the applicable restoration plan agreed to (H) the Republic of the Marshall Islands; (6) 1890 Institutions. under section 503, the cost of the additional (I) the Republic of Palau; and SEC. 702. DEFINITIONS. (J) the United States Virgin Islands. measures, as well as the cost of any permit, In this title: shall be considered part of the restoration SEC. 603. PUBLIC LAND CORPS. (1) 1890 INSTITUTION.—The term ‘‘1890 Insti- plan for purposes of financial assistance (a) ESTABLISHMENT.—There is established a tution’’ has the meaning given the term in Public Land Corps. under section 504. section 2 of the Agricultural Research, Ex- SEC. 507. INVOLVEMENT BY OTHER AGENCIES (b) PARTICIPANTS.—The Corps shall consist of individuals who are enrolled as members tension, and Education Reform Act of 1998 (7 AND ORGANIZATIONS. U.S.C. 7601). In carrying out this title, the Secretary of of a service or conservation corps. (2) ELIGIBLE ENTITY.—The term ‘‘eligible Agriculture may consult with— (c) CONTRACTS OR AGREEMENTS.—The Sec- entity’’ means— (1) nonindustrial private forest landowners; retaries may enter into contracts or coopera- (A) a unit of State or local government; (2) other Federal agencies; tive agreements— (B) an Indian tribe; (3) State fish and wildlife agencies; (1) directly with any service and conserva- (C) a nonprofit organization; (4) State forestry agencies; tion corps to perform appropriate rehabilita- (D) a small forest products business; (5) State environmental quality agencies; tion, enhancement, or beautification (E) a rural forest resource-dependent com- (6) other State conservation agencies; and projects; or munity; (7) nonprofit conservation organizations. (2) with a department of natural resources, agriculture, or forestry (or an equivalent de- (F) a land grant college or university; or SEC. 508. AUTHORIZATION OF APPROPRIATIONS. (G) an 1890 institution. There are authorized to be appropriated to partment) of any State that has entered into a contract or cooperative agreement with a (3) ELIGIBLE PROJECT.—The term ‘‘eligible carry out this title— project’’ means a project described in section (1) $25,000,000 for fiscal year 2004; and service and conservation corps to perform appropriate rehabilitation, enhancement, or 703 that will promote the economic develop- (2) such sums as are necessary for each of ment in rural forest resource-dependent fiscal years 2005 through 2008. beautification projects. (d) PROJECTS.— communities based on— TITLE VI—PUBLIC LAND CORPS (1) IN GENERAL.—The Secretaries may use (A) responsible forest stewardship; SEC. 601. PURPOSES. the members of a service and conservation (B) the production of sustainable forest The purposes of this title are— corps to perform rehabilitation, enhance- products; or (1) to carry out, in a cost-effective and effi- ment, or beautification projects authorized (C) the development of forest related tour- cient manner, rehabilitation, enhancement, by law. ism and recreation activities. and beautification projects; (2) INCLUDED LAND.—In addition to Federal (4) FOREST PRODUCTS.—The term ‘‘forest (2) to offer young people, ages 16 through and State lands, the projects may be carried products’’ means— 25, particularly those who are at-risk or eco- out on— (A) logs; nomically disadvantaged, the opportunity to (A) Indian lands, with the approval of the (B) lumber; gain productive employment and exposure to applicable Indian tribe; (C) chips; the world of work; (B) Hawaiian home lands, with the ap- (D) small-diameter finished wood products; (3) to give those young people the oppor- proval of the relevant State agency in the (E) energy biomass; tunity to serve their communities and their State of Hawaii; and (F) mulch; and country; and (C) Alaska native lands, with the approval (G) any other material derived from forest (4) to expand educational opportunities by of the applicable Alaska Native Corporation. vegetation or individual trees or shrubs. rewarding individuals who participate in the (e) PREFERENCE.—In carrying out this title, (5) NONPROFIT ORGANIZATION.—The term Public Land Corps with an increased ability the Secretaries shall give preference to ‘‘nonprofit organization’’ means an organiza- to pursue higher education or job training. projects that will— tion that is—

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(A) described in section 501(c) of the Inter- (2) LOCATION.—A Center shall be located lutants in areas declared a disaster as re- nal Revenue Code of 1986; and within close proximity of rural forest-de- ferred to in subsection (b), and publish such (B) exempt from taxation under 501(a) of pendent communities served by the Center, information on a daily basis on its web site that Code. with at least 1 center located in each of the and in other forums, until such time as the (6) PROGRAM.—The term ‘‘program’’ means States of California, Idaho, Oregon, Mon- Environmental Protection Agency has deter- the rural community forestry enterprise pro- tana, New Mexico, Vermont, and Wash- mined that the danger has subsided. gram established under section 703. ington. (b) DISASTER AREAS.—The areas referred to (7) SMALL FOREST PRODUCTS BUSINESS.—The (3) DUTIES.—A Center shall— in subsection (a) are those areas declared a term ‘‘small forest products business’’ means (A) carry out eligible projects; and disaster area by the Federal Government. a small business concern (as defined under (B) coordinate assistance provided to small (c) CONTINUOUS MONITORING.—The moni- section 3 of the Small Business Act (15 U.S.C. forest products businesses with— toring referred to in subsection (a) shall in- 632)) that is classified under subsector 113 or (i) the Small Business Administration, in- clude the continuous and spontaneous moni- code number 115310 of the North American cluding the timber set-aside program carried toring of hazardous air pollutants, as defined Industrial Classification System. out by the Small Business Administration; in Public Law 95–95, section 112(b). (8) RURAL FOREST RESOURCE-DEPENDENT (ii) the Rural Utilities Service, the Rural (d) AUTHORIZATION.—To carry out this COMMUNITY.— Housing Service, and the Rural Business-Co- title, there are authorized to be appropriated (A) IN GENERAL.—The term ‘‘rural forest operative Service of the Department of Agri- $8,000,000. resource-dependent community’’ means a culture; TITLE X—HIGHLANDS REGION community located in a rural area of the (iii) the Economic Development Adminis- CONSERVATION United States that is traditionally depend- tration, including the local technical assist- SEC. 1001. SHORT TITLE. ent on forestry products as a primary source ance program of the Economic Development This title may be cited as the ‘‘Highlands of community infrastructure. Administration; and Conservation Act’’. (B) INCLUSIONS.—The term ‘‘rural forest re- (iv) research stations and laboratories of source-dependent community’’ includes a SEC. 1002. FINDINGS. the Forest Service. Congress finds the following: community described in subparagraph (A) lo- (d) FOREST ENTERPRISE TECHNICAL ASSIST- (1) The Highlands region is a physiographic cated in— ANCE AND GRANT PROGRAM.— (i) the northern forest land of Maine; province that encompasses more than (1) IN GENERAL.—The Secretary, acting 2,000,000 acres extending from eastern Penn- (ii) New Hampshire; through the Forest Enterprise Centers estab- (iii) New York; sylvania through the States of New Jersey lished under subsection (c), shall establish a and New York to northwestern Connecticut. (iv) Vermont; program to provide technical assistance and (v) the Upper Peninsula of Michigan; (2) The Highlands region is an environ- grants to eligible entities to carry out eligi- mentally unique area that— (vi) northern California; and ble projects. (vii) eastern Oregon. (A) provides clean drinking water to over (2) CRITERIA.—The Secretary shall work (9) SECRETARY.—The term ‘‘Secretary’’ 15,000,000 people in metropolitan areas in the with each Forest Enterprise Center to de- States of Connecticut, New Jersey, New means the Secretary of Agriculture, acting velop appropriate program review and through the Chief of the Forest Service. York, and Pennsylvania; prioritization criteria for each Research Sta- (B) provides critical wildlife habitat, in- SEC. 703. RURAL COMMUNITY FORESTRY ENTER- tion. PRISE PROGRAM. cluding habitat for 247 threatened and endan- (3) MATCHING FUNDS.—Grants under this (a) IN GENERAL.— gered species; section shall— (1) ESTABLISHMENT.—The Secretary shall (C) maintains an important historic con- (A) not exceed 50 percent of the cost of an establish within the Forest Service a pro- nection to early Native American culture, eligible project; and gram to be known as the ‘‘Rural Community colonial settlement, the American Revolu- (B) be made on the condition that non-Fed- Forestry Enterprise Program’’. tion, and the Civil War; eral sources pay for the remainder of the (2) CONSULTATION.—In carrying out the pro- (D) contains recreational resources for 14 cost of an eligible project (including pay- gram, the Secretary shall consult with— million visitors annually; ment through in-kind contributions of serv- (A) the Small Business Administration; (E) provides other significant ecological, ices or materials). (B) the Economic Development Adminis- natural, tourism, recreational, educational, (4) AUTHORIZATION OF APPROPRIATIONS.— tration; and economic benefits; and There is authorized to be appropriated to (C) land grant colleges and universities; (F) provides homeownership opportunities carry out this subsection $15,000,000 for each (D) 1890 institutions; and access to affordable housing that is safe, of fiscal years 2004 through 2008. (E) research stations and laboratories of clean, and healthy; the Forest Service; TITLE VIII—FIREFIGHTERS MEDICAL (3) An estimated 1 in 12 citizens of the (F) other agencies of the Department of MONITORING ACT United States live within a 2-hour drive of Agriculture that administer rural develop- SEC. 801. SHORT TITLE. the Highlands region. ment programs; and This title shall be referred to as the ‘‘Fire- (4) More than 1,400,000 residents live in the (G) private nonprofit organizations. fighters Medical Monitoring Act of 2003’’. Highlands region. (5) The Highlands region forms a greenbelt (b) PURPOSES.—The purposes of the pro- SEC. 802. MONITORING OF FIREFIGHTERS IN DIS- gram are— ASTER AREAS. adjacent to the Philadelphia-New York City- (1) to enhance technical and business man- (a) IN GENERAL.—The National Institute Hartford urban corridor that offers the op- agement skills training; for Occupational Safety and Health shall portunity to preserve water, forest and agri- (2) to organize cooperatives and marketing monitor the long-term medical health of cultural resources, wildlife habitat, rec- programs; those firefighters who fought fires in any reational areas, and historic sites, while en- (3) to establish and maintain timber work- area declared a disaster area by the Federal couraging sustainable economic growth and er skill pools; Government. development in a fiscally and environ- (4) to establish and maintain forest prod- (b) HEALTH MONITORING.—The long-term mentally sound manner. uct distribution networks and collection cen- health monitoring referred to in subsection (6) Continued population growth and land ters; (a) shall include, but not be limited to, pul- use patterns in the Highlands region— (5) to facilitate technology transfer for monary illness, neurological damage, and (A) reduce the availability and quality of processing small diameter trees and brush cardiovascular damage, and shall utilize the water; into useful products; medical expertise in the local areas affected. (B) reduce air quality; (6) to develop, where support exists, a pro- (c) AUTHORIZATION.—To carry out this (C) fragment the forests; gram to promote science-based technology title, there are authorized to be appropriated (D) destroy critical migration corridors implementation and technology transfer such sums as may be necessary in each of fis- and forest habitat; and that expands the capacity for small forest cal years 2004 through 2008. (E) result in the loss of recreational oppor- product businesses to work within market tunities and scenic, historic, and cultural re- TITLE IX—DISASTER AIR QUALITY areas; sources; MONITORING ACT (7) to promote forest-related tourism and (7) The water, forest, wildlife, recreational, recreational activities; SEC. 901. SHORT TITLE. agricultural, and cultural resources of the (8) to enhance the rural forest business in- This title shall be referred to as the ‘‘Dis- Highlands region, in combination with the frastructure needed to reduce hazardous aster Air Quality Monitoring Act of 2003’’. proximity of the Highlands region to the fuels on public and private land; and SEC. 902. MONITORING OF AIR QUALITY IN DIS- largest metropolitan areas in the United (9) to carry out related programs and ac- ASTER AREAS. States, make the Highlands region nation- tivities, as determined by the Secretary. (a) IN GENERAL.—No later than six (6) ally significant. (c) FOREST ENTERPRISE CENTERS.— months after the enactment of this legisla- (8) The national significance of the High- (1) IN GENERAL.—The Secretary shall estab- tion, the Environmental Protection Agency lands region has been documented in— lish Forest Enterprise Centers to provide shall provide each of its regional offices a (A) the New York-New Jersey Highlands services to rural forest-dependent commu- mobile air pollution monitoring network to Regional Study conducted by the Forest nities. monitor the emissions of hazardous air pol- Service in 1990;

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.072 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13937 (B) the New York-New Jersey Highlands (3) To continue the ongoing Forest Service inconsistent with the purpose for which the Regional Study: 2002 Update conducted by programs in the Highlands region to assist assistance was provided, as determined by the Forest Service; the Highlands States, local units of govern- the Secretary of the Interior, the United (C) the bi-State Skylands Greenway Task ment and private forest and farm landowners States may seek specific performance of the Force Report; in the conservation of lands and natural re- conditions of financial assistance in accord- (D) the New Jersey State Development and sources in the Highlands region. ance with paragraph (3) in Federal court and Redevelopment Plan; SEC. 1004. DEFINITIONS. shall be entitled to reimbursement from the (E) the New York State Open Space Con- In this title: non-Federal entity in an amount that is, as servation Plan; (1) HIGHLANDS REGION.—The term ‘‘High- determined at the time of conversion, use, or (F) the Connecticut Green Plan: Open lands region’’ means the physiographic prov- disposal, the greater of— Space Acquisition FY 2001–2006; ince, defined by the Reading Prong and eco- (A) the total amount of the financial as- (G) the open space plans of the State of logically similar adjacent upland areas, that sistance provided for the project by the Fed- Pennsylvania; and encompasses more than 2,000,000 acres ex- eral Government under this section; or (H) other open space conservation plans for tending from eastern Pennsylvania through (B) the amount by which the financial as- States in the Highlands region; the States of New Jersey and New York to sistance increased the value of the land or (9) The Highlands region includes or is ad- northwestern Connecticut. interest in land; and jacent to numerous parcels of land owned by (2) HIGHLANDS STATE.—The term ‘‘High- (5) provides that land conservation part- the Federal Government or federally des- lands State’’ means— nership projects will be consistent with areas ignated areas that protect, conserve, or re- (A) the State of Connecticut; identified as having high conservation value store resources of the Highlands region, in- (B) the State of New Jersey; in the following: cluding— (C) the State of New York; (A) Important Areas portion of the Forest (A) the Wallkill River National Wildlife (D) the State of Pennsylvania; and Service study. Refuge; (E) any agency or department of any High- (B) Conservation Focal Areas portion of (B) the Shawanagunk Grasslands Wildlife lands State. the Forest Service update. Refuge; (3) LAND CONSERVATION PARTNERSHIP (C) Conservation Priorities portion of the (C) the Morristown National Historical PROJECT.—The term ‘‘land conservation part- update. Park; nership project’’ means a land conservation (D) Lands identified as having higher or (D) the Delaware and Lehigh Canal Cor- project located within the Highlands region highest resource value in the Conservation ridors; identified as having high conservation value Values Assessment portion of the update. (E) the Hudson River Valley National Her- by the Forest Service in which a non-Federal (d) NON-FEDERAL SHARE REQUIREMENT.— itage Area; entity acquires land or an interest in land The Federal share of the cost of carrying out (F) the Delaware River Basin; from a willing seller for the purpose of per- a land conservation partnership project (G) the Delaware Water Gap National manently protecting, conserving, or pre- under this section shall not exceed 50 percent Recreation Area; serving the land through a partnership with of the total cost of the land conservation (H) the Upper Delaware Scenic and Rec- the Federal Government. partnership project. (e) AUTHORIZATION OF APPROPRIATIONS.— reational River; (4) NON-FEDERAL ENTITY.—The term ‘‘non- There is authorized to be appropriated to the (I) the Appalachian National Scenic Trail; Federal entity’’ means any Highlands State, Secretary of the Interior from the general (J) the United States Military Academy at or any agency or department of any High- West Point, New York; funds of the Treasury or the Land and Water lands State with authority to own and man- Conservation Fund to carry out this section (K) the Highlands National Millenium age land for conservation purpose, including Trail; $10,000,000 for each of the fiscal years 2005 the Palisades Interstate Park Commission. through 2014. Amounts appropriated pursu- (L) the Great Swamp National Wildlife (5) STUDY.—The term ‘‘study’’ means the Refuge; ant to this authorization of appropriations New York-New Jersey Highlands Regional shall remain available until expended. (M) the proposed Crossroads of the Revolu- Study conducted by the Forest Service in SEC. 1006. FOREST SERVICE AND USDA PRO- tion National Heritage Area; 1990. (N) the proposed Musconetcong National GRAMS IN THE HIGHLANDS REGION. (6) UPDATE.—The term ‘‘update’’ means the (a) IN GENERAL.—In order to meet the land Scenic and Recreational River in New Jer- New York-New Jersey Highlands Regional resource goals of, and the scientific and con- sey; and Study: 2002 Update conducted by the Forest servation challenges identified in, the study, (O) the Farmington River Wild and Scenic Service. update, and any future study that the Forest Area in Connecticut; SEC. 1005. LAND CONSERVATION PARTNERSHIP Service may undertake in the Highlands re- (10) It is in the interest of the United PROJECTS IN THE HIGHLANDS RE- gion, the Secretary of Agriculture, acting States to protect, conserve, and restore the GION. through the Chief of the Forest Service and resources of the Highlands region for the (a) SUBMISSION OF PROPOSED PROJECTS.— in consultation with the Chief of the Natural residents of, and visitors to, the Highlands Annually, the Governors of the Highlands Resource Conservation Service, shall con- region. States, with input from pertinent units of tinue to assist the Highlands States, local (11) The States of Connecticut, New Jersey, local government and the public, may jointly units of government, and private forest and New York, and Pennsylvania, and units of identify land conservation partnership farm landowners in the conservation of lands local government in the Highlands region projects in the Highlands region that shall and natural resources in the Highlands re- have the primary responsibility for pro- be proposed for Federal financial assistance gion. tecting, conserving, preserving, restoring and submit a list of those projects to the (b) DUTIES.—The Forest Service shall— and promoting the resources of the High- Secretary of the Interior. (1) in consultation with the Highlands lands region. (b) CONSIDERATION OF PROJECTS.—The Sec- States, undertake other studies and research (12) Because of the longstanding Federal retary of the Interior, in consultation with as appropriate in the Highlands region con- practice of assisting States in creating, pro- the Secretary of Agriculture, shall annually sistent with the purposes of this title; tecting, conserving, and restoring areas of submit to Congress a list of those land con- (2) communicate the findings of the study significant natural and cultural importance, servation partnership projects submitted and update and maintain a public dialogue and the national significance of the High- under subsection (a) that are eligible to re- regarding implementation of the study and lands region, the Federal Government ceive financial assistance under this section. update; and should, in partnership with the Highlands (c) ELIGIBILITY CONDITIONS.—To be eligible (3) assist the Highland States, local units States and units of local government in the for financial assistance under this section for of government, individual landowners, and Highlands region, protect, restore, and pre- a land conservation partnership project, a private organizations in identifying and serve the water, forest, agricultural, wildlife, non-Federal entity shall enter into an agree- using Forest Service and other technical and recreational and cultural resources of the ment with the Secretary of the Interior financial assistance programs of the Depart- Highlands region. that— ment of Agriculture. SEC. 1003. PURPOSES. (1) identifies the non-Federal entity that (c) AUTHORIZATION OF APPROPRIATIONS.— The purposes of this title are as follows: shall own or hold and manage the land or in- There is authorized to be appropriated to the (1) To recognize the importance of the terest in land; Secretary of Agriculture to carry out this water, forest, agricultural, wildlife, rec- (2) identifies the source of funds to provide section $1,000,000 for each of the fiscal years reational and cultural resources of the High- the non-Federal share required under sub- 2005 through 2014. lands, and the national significance of the section (d); SEC. 1007. PRIVATE PROPERTY PROTECTION AND Highlands region to the United States. (3) describes the management objectives LACK OF REGULATORY EFFECT. (2) To authorize the Secretary of Interior for the land that will assure permanent pro- (a) ACCESS TO PRIVATE PROPERTY.—Noth- to work in partnership with the Secretary of tection and use of the land for the purpose ing in this title shall be construed to— Agriculture to provide financial assistance for which the assistance will be provided; (1) require any private property owner to to the Highlands States to preserve and pro- (4) provides that, if the non-Federal entity permit public access (including Federal, tect high priority conservation lands in the converts, uses, or disposes of the land con- State, or local government access) to such Highlands region. servation partnership project for a purpose private property; and

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.072 S04PT1 S13938 CONGRESSIONAL RECORD — SENATE November 4, 2003 (2) modify any provision of Federal, State, twentieth century, that could be environ- tribal government, or a private landowner to or local law with regard to public access to mentally and economically devastating to pose a serious threat to— or use of private lands. forests. (A) property; (b) LIABILITY.—Nothing in this title shall ‘‘(e) ADMINISTRATION.—To carry out this (B) human life; or be construed to create any liability, or to section, the Secretary shall— (C) the ecological stability of an area; and have any effect on any liability under any ‘‘(1) designate a facility within Forest (3) involve the removal of nonnative other law, of any private property owner Service Region 8 that— invasive plants. with respect to any persons injured on such ‘‘(A) is best-suited to take advantage of ex- (d) USE OF FUNDS.—Funds made available private property. isting resources to coordinate and carry out for a project under the program shall be used (c) RECOGNITION OF AUTHORITY TO CONTROL the program through the means described in only for— LAND USE.—Nothing in this title shall be subsection (b); and (1) the removal of plants or other potential construed to modify any authority of Fed- ‘‘(B) will address the issues described in fuels that are— eral, State, or local governments to regulate subsection (c), with a particular emphasis on (A) adjacent to or within the wildland land use. hardwood forest stands in the Eastern United urban interface; or (d) PARTICIPATION OF PRIVATE PROPERTY States; and (B) adjacent to a municipal watershed, OWNERS.—Nothing in this title shall be con- ‘‘(2) designate a facility in the Ochoco Na- river, or water course; strued to require the owner of any private tional Forest headquarters within Forest (2) the removal of erosion structures that property located in the Highlands region to Service Region 6 that will address the issues impede the removal of nonnative plants; or participate in the land conservation, finan- described in subsection (c), with a particular (3) the replanting of native vegetation to cial, or technical assistance or any other emphasis on coniferous forest stands in the reduce the reestablishment of nonnative programs established under this title. Western United States. invasive plants in a treatment area. (e) PURCHASE OF LANDS OR INTERESTS IN ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— (e) REVOLVING FUND.— LANDS FROM WILLING SELLERS ONLY.—Funds There are authorized to be appropriated such (1) IN GENERAL.—In the case of a grant pro- appropriated to carry out this title shall be sums as are necessary to carry out this sec- vided to a willing owner to carry out a used to purchase lands or interests in lands tion.’’. project on non-Federal land under this sec- only from willing sellers. SEC. 1102. PROGRAM FOR EMERGENCY TREAT- tion, the owner shall deposit into a revolving TITLE XI—MISCELLANEOUS PROVISIONS MENT AND REDUCTION OF NON- fund established by the Secretaries any pro- SEC. 1101. FOREST INVENTORY AND MANAGE- NATIVE INVASIVE PLANTS. ceeds derived from the sale of timber or bio- MENT. (a) DEFINITIONS.—In this section: mass removed from the non-Federal land Section 17 of the Cooperative Forestry As- (1) INTERFACE COMMUNITY.—The term under the project. sistance Act of 1978 (16 U.S.C. 2101 note; Pub- ‘‘interface community’’ has the meaning (2) USE.—The Secretaries shall use lic Law 95313) is amended to read as follows: given the term in the notice published at 66 amounts in the revolving fund to make addi- ‘‘SEC. 17. FOREST INVENTORY AND MANAGE- Fed. Reg. 751 (January 4, 2001) (including any tional grants under this section. MENT. subsequent revision to the notice). (f) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(a) IN GENERAL.—The Secretary shall (2) INTERMIX COMMUNITY.—The term There are authorized to be appropriated such carry out a program using geospatial and in- ‘‘intermix community’’ has the meaning sums as are necessary to carry out this sec- formation management technologies (includ- given the term in the notice published at 66 tion, to remain available until expended. ing remote sensing imaging and decision sup- Fed. Reg. 751 (January 4, 2001) (including any SEC. 1103. USDA NATIONAL AGROFORESTRY CEN- port systems) to inventory, monitor, charac- subsequent revision to the notice). TER. terize, assess, and identify forest stands and (3) PLANT.—The term ‘‘plant’’ includes— (a) IN GENERAL.—Section 1243 of the Food, potential forest stands on— (A) a tree; Agriculture, Conservation, and Trade Act of ‘‘(1) units of the National Forest System; (B) a shrub; and 1990 (16 U.S.C. 1642 note; Public Law 101–624) and (C) a vine. is amended— ‘‘(2) private forest land, with the consent of (4) PROGRAM.—The term ‘‘program’’ means (1) by striking the section heading and in- the owner of the land. the program for emergency treatment and serting the following: ‘‘(b) MEANS.—The Secretary shall carry out reduction of nonnative invasive plants estab- ‘‘SEC. 1243. USDA NATIONAL AGROFORESTRY the program through the use of— lished under subsection (b)(1). CENTER.’’; ‘‘(1) remote sensing technology of the Na- (5) SECRETARIES.—The term ‘‘Secretaries’’ and tional Aeronautics and Space Administra- means the Secretary of Agriculture and the (2) in subsection (a)— tion and the United States Geological Sur- Secretary of the Interior, acting jointly. (A) by striking ‘‘SEMIARID’’ and inserting vey; (b) ESTABLISHMENT.— ‘‘USDA NATIONAL’’; and ‘‘(2) emerging geospatial capabilities in re- (1) IN GENERAL.—The Secretaries shall es- (B) by striking ‘‘Semiarid’’ and inserting search activities; tablish a program for emergency treatment ‘‘USDA National’’. ‘‘(3) validating techniques, including co- and reduction of nonnative invasive plants (b) PROGRAM.—Section 1243(b) of the Food, ordination and reconciliation with existing to provide to State and local governments Agriculture, Conservation, and Trade Act of data through field verification, using appli- and agencies, conservation districts, tribal 1990 (16 U.S.C. 1642 note; Public Law 101–624) cation demonstrations; and governments, and willing private landowners is amended— ‘‘(4) integration of results into pilot oper- grants for use in carrying out hazardous fuel (1) by inserting ‘‘local governments, com- ational systems. reduction projects to address threats of cata- munity organizations, the Institute of Trop- ‘‘(c) ISSUES TO BE ADDRESSED.—In carrying strophic fires that have been determined by ical Forestry and the Institute of Pacific Is- out the program, the Secretary shall address the Secretaries to pose a serious threat to— lands Forestry of the Forest Service,’’ after issues including— (A) property; ‘‘entities,’’; ‘‘(1) early detection, identification, and as- (B) human life; or (2) in paragraph (1), by striking ‘‘on semi- sessment of environmental threats (includ- (C) the ecological stability of an area. arid lands’’; ing insect, disease, invasive species, fire, (2) COORDINATION.—In carrying out the pro- (3) in paragraph (3), by striking ‘‘from acid deposition, and weather-related risks gram, the Secretaries shall coordinate with semiarid land’’; and other episodic events); such Federal agencies, State and local gov- (4) by striking paragraph (4) and inserting ‘‘(2) loss or degradation of forests; ernments and agencies, and conservation dis- the following: ‘‘(3) degradation of the quality forest tricts as are affected by projects under the ‘‘(4) collect information on the design, in- stands caused by inadequate forest regenera- program. stallation, and function of forested riparian tion practices; (c) ELIGIBLE LAND.—A project under the and upland buffers to— ‘‘(4) quantification of carbon uptake rates; program shall— ‘‘(A) protect water quality; and ‘‘(5) management practices that focus on (1) be carried out only on land that is lo- ‘‘(B) manage water flow;’’; preventing further forest degradation; and cated— (5) in paragraphs (6) and (7), by striking ‘‘(6) characterization of vegetation types, (A) in an interface community or intermix ‘‘on semiarid lands’’ each place it appears; density, fire regimes, post-fire effects, and community; or (6) by striking paragraph (8) and inserting condition class. (B) in such proximity to an interface com- the following: ‘‘(d) EARLY WARNING SYSTEM.—In carrying munity or intermix community as would ‘‘(8) provide international leadership in the out the program, the Secretary shall develop pose a significant risk in the event of the worldwide development and exchange of a comprehensive early warning system for spread of a fire disturbance event from the agroforestry practices;’’; potential catastrophic environmental land (including a risk that would threaten (7) in paragraph (9), by striking ‘‘on semi- threats to forests to increase the likelihood human life or property in proximity to or arid lands’’; that forest managers will be able to— within the interface community or intermix (8) in paragraph (10), by striking ‘‘and’’ at ‘‘(1) isolate and treat a threat before the community), as determined by the Secre- the end; threat gets out of control; and taries; (9) in paragraph (11), by striking the period ‘‘(2) prevent epidemics, such as the Amer- (2) remove fuel loads determined by the at the end and inserting a semicolon; and ican chestnut blight in the first half of the Secretaries, a State or local government, a (10) by adding at the end the following:

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.073 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13939 ‘‘(12) quantify the carbon storage potential (1) be surrounded by or immediately adja- crews or related partnerships with State, of agroforestry practices such as— cent to the boundary of a national forest; local, and other non-Federal conservation ‘‘(A) windbreaks; (2) be determined to be of paramount ur- corps. ‘‘(B) forested riparian buffers; gency, as indicated by declarations to that (c) FUNDS.—Funds to implement this sec- ‘‘(C) silvopasture timber and grazing sys- effect by both local officials and the Gov- tion shall be derived from hazardous fuels tems; and ernor of the State in which in the project is operations funds. ‘‘(D) alley cropping; and to be carried out; and SEC. 1109. BEST-VALUE CONTRACTING. ‘‘(13) modify and adapt riparian forest buff- (3) remove fuel loading that poses a serious To conduct a project under this division, er technology used on agricultural land for threat to human life, as determined by the the Secretaries may use best value con- use by communities to manage stormwater Forest Service. tracting criteria in awarding contracts and runoff.’’. (c) USES OF GRANTS.—A grant under the agreements. Best-value contracting criteria includes— SEC. 1104. UPLAND HARDWOODS RESEARCH CEN- program may be used only— TER. (1) to remove trees, shrubs, or other poten- (1) the ability of the contractor to meet the ecological goals of the projects; (a) IN GENERAL.—Not later than 180 days tial fuel adjacent to a primary evacuation after the date of enactment of this Act, the route; (2) the use of equipment that will minimize Secretary of Agriculture shall establish an (2) to remove trees, shrubs, or other poten- or eliminate impacts on soils; and Upland Hardwood Research Center. tial fuel that are adjacent to an emergency (3) benefits to local communities such as ensuring that the byproducts are processed (b) LOCATION.—The Secretary of Agri- response center, emergency communication culture shall locate the Research Center in facility, or site designated as a shelter-in- locally. an area that, as determined by the Secretary place facility; or SEC. 1110. SUBURBAN AND COMMUNITY FOR- of Agriculture, would best use and study the (3) to conduct an evacuation drill or prepa- ESTRY AND OPEN SPACE PROGRAM; FOREST LEGACY PROGRAM. upland hardwood resources of the Ozark ration. (a) SUBURBAN AND COMMUNITY FORESTRY Mountains and the South. (d) REVOLVING FUND.— AND OPEN SPACE PROGRAM.—The Cooperative (1) IN GENERAL.—In the case of a grant (c) DUTIES.—The Upland Hardwood Re- Forestry Assistance Act of 1978 (16 U.S.C. under the program that is used to carry out search Center shall, in conjunction with the 2101 et seq.) is amended by adding at the end a project on private or county land, the Southern Forest Research Station of the De- the following: grant recipient shall deposit in a revolving partment of Agriculture— ‘‘SEC. 21. SUBURBAN AND COMMUNITY FORESTRY (1) provide the scientific basis for sustain- fund maintained by the Secretary any pro- AND OPEN SPACE PROGRAM. ceeds from the sale of timber or biomass as able management of southern upland hard- ‘‘(a) DEFINITIONS.—In this section: a result of the project. wood forests, particularly in the Ozark ‘‘(1) COMMITTEE.—The term ‘Committee’ Mountains and associated mountain and up- (2) USE.—The Secretary shall use amounts means a State Forest Stewardship Coordi- land forests; and in the revolving fund to make other grants nating Committee established under section (2) conduct research in all areas to empha- under this section, without further appro- 19(b). priation. size practical application toward the use and ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible preservation of upland hardwood forests, par- (e) AUTHORIZATION OF APPROPRIATIONS.— entity’ means a unit of local government or ticularly— There are authorized to be appropriated to a nonprofit organization that— (A) the effects of pests and pathogens on the Secretary of Agriculture to carry out ‘‘(A) the Secretary determines, in accord- upland hardwoods; this section $50,000,000 for each fiscal year. ance with the criteria established under sub- (B) hardwood stand regeneration and re- SEC. 1106. EASTERN NEVADA LANDSCAPE COALI- section (c)(1)(A)(ii)(II) is eligible to receive a productive biology; TION. grant under subsection (c)(2); and (C) upland hardwood stand management (a) IN GENERAL.—(1) The Secretary of Agri- ‘‘(B) the State forester, in consultation and forest health; culture and the Secretary of the Interior are with the Committee, determines— (D) threatened, endangered, and sensitive authorized to make grants to the Eastern ‘‘(i) has the abilities necessary to acquire aquatic and terrestrial fauna; Nevada Landscape Coalition for the study and manage interests in real property; and (E) ecological processes and hardwood eco- and restoration of rangeland and other lands ‘‘(ii) has the resources necessary to mon- system restoration; and in Nevada’s Great Basin in order to help as- itor and enforce any terms applicable to the (F) education and outreach to nonindus- sure the reduction of hazardous fuels and for eligible project. trial private forest landowners and associa- related purposes. ‘‘(3) ELIGIBLE PROJECT.—The term ‘eligible tions. (2) Notwithstanding sections 6301 through project’ means a fee purchase, easement, or (d) RESEARCH.—In carrying out the duties 6308 of title 31, United States Code, the Di- donation of land to conserve private forest under subsection (c), the Upland Hardwood rector of the Bureau of Land Management land identified for conservation under sub- Research Center shall— shall enter into a cooperative agreement section (c)(1)(A)(ii)(I). (1) cooperate with the Center for Bottom- with the Eastern Nevada Landscape Coali- ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’ land Hardwood Research of the Southern tion for the Great Basin Restoration Project, has the meaning given the term in section 4 Forest Research Station of the Department including hazardous fuels and mechanical of the Indian Self-Determination and Edu- of Agriculture, located in Stoneville, Mis- treatments and related work. cation Assistance Act (25 U.S.C. 450b). sissippi; and (b) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(5) NONPROFIT ORGANIZATION.—The term (2) provide comprehensive research in the There are authorized to be appropriated such ‘nonprofit organization’ means any organiza- Mid-South region of the United States, the sums as are necessary to carry out this sec- tion that is— Upland Forests Ecosystems Unit of the tion. ‘‘(A) described in section 501(c) of the In- Southern Forest Research Station of the De- SEC. 1107. SENSE OF CONGRESS REGARDING EN- ternal Revenue Code of 1986; and partment of Agriculture, located in Monti- HANCED COMMUNITY FIRE PROTEC- ‘‘(B) exempt from taxation under 501(a) of cello, Arkansas. TION. the Internal Revenue Code of 1986. (e) PARTICIPATION OF PRIVATE LAND- It is the sense of Congress to reaffirm the ‘‘(6) PRIVATE FOREST LAND.—The term ‘pri- OWNERS.—The Secretary of Agriculture shall importance of enhanced community fire pro- vate forest land’ means land that is— encourage and facilitate the participation of tection program, as described in section 10A ‘‘(A) capable of producing commercial for- private landowners in the program under of the Cooperative Forestry Assistance Act est products; and this section. of 1978 (16 U.S.C. 2106c) (as added by section ‘‘(B) owned by— (f) AUTHORIZATION OF APPROPRIATIONS.— 8003(b) of the Farm Security and Rural In- ‘‘(i) a private entity; or There is authorized to be appropriated to vestment Act of 2002 (Public Law 107–171; 116 ‘‘(ii) an Indian tribe. carry out this section $2,500,000 for each fis- Stat. 473)). ‘‘(7) PROGRAM.—The term ‘program’ means cal year. SEC. 1108. COLLABORATIVE MONITORING. the Suburban and Community Forestry and SEC. 1105. EMERGENCY FUEL REDUCTION (a) IN GENERAL.—The Secretaries shall es- Open Space Program established by sub- GRANTS. tablish a collaborative monitoring, evalua- section (b). (a) IN GENERAL.—The Secretary of Agri- tion, and accountability process in order to ‘‘(8) SECRETARY.—The term ‘Secretary’ culture shall establish an emergency fuel re- assess the positive or negative ecological and means the Secretary of Agriculture, acting duction grant program under which the Sec- social effects of a representative sampling of through the Chief of the Forest Service. retary shall provide grants to State and projects implemented pursuant to title I and ‘‘(b) ESTABLISHMENT.— local agencies to carry out hazardous fuel re- section 404 of this Act. The Secretaries shall ‘‘(1) IN GENERAL.—There is established duction projects addressing threats of cata- include diverse stakeholders, including in- within the Forest Service a program to be strophic fire that pose a serious threat to terested citizens and Indian tribes, in the known as the ‘Suburban and Community human life, as determined by the Forest monitoring and evaluation process. Forestry and Open Space Program’. Service. (b) MEANS.—The Secretaries may collect ‘‘(2) PURPOSE.—The purpose of the program (b) ELIGIBLE PROJECTS.—To be eligible to monitoring data using cooperative agree- is to provide assistance to eligible entities to be carried out with a grant under the pro- ments, grants or contracts with small or carry out eligible projects in States in which gram, a hazardous fuel reduction project micro-businesses, cooperatives, nonprofit or- less than 25 percent of the land is owned by shall— ganizations, Youth Conservation Corps work the United States to—

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‘‘(A) conserve private forest land and main- subparagraph (C)(ii) or a resubmission under ‘‘(B) CONVEYANCE TO ANOTHER UNIT OF tain working forests in areas threatened by subclause (II)(bb)(BB), the Secretary shall— LOCAL GOVERNMENT OR NONPROFIT ORGANIZA- significant suburban sprawl or by conversion ‘‘(I) review the application; and TION.—If the State makes a determination to nonforest uses; and ‘‘(II)(aa) award a grant to the applicant; or under subparagraph (A), the State may con- ‘‘(B) provide communities a means by ‘‘(bb)(AA) disapprove the application; and vey or authorize the unit of local govern- which to address significant suburban ‘‘(BB) provide the applicant a statement ment or nonprofit organization to convey sprawl. that describes the reasons why the applica- the conservation easement to another unit of ‘‘(c) GRANT PROGRAM.— tion was disapproved (including a deadline local government or nonprofit organization. ‘‘(1) IDENTIFICATION OF ELIGIBLE PRIVATE by which the applicant may resubmit the ap- ‘‘(e) ADMINISTRATIVE COSTS.—The State, on FOREST LAND.— plication). approval of the Secretary and subject to any ‘‘(A) CRITERIA.— ‘‘(ii) CONSIDERATIONS; PRIORITY.—In award- regulations promulgated by the Secretary, ‘‘(i) NATIONAL CRITERIA.—The Secretary ing grants under this section, the Secretary may use amounts made available under sub- shall establish national eligibility criteria shall— section (g) to pay the administrative costs of for the identification of private forest land ‘‘(I) consider the need for the eligible the State relating to the program. that may be conserved under this section. project based on the assessment of need sub- ‘‘(f) REPORT.—The Secretary shall submit ‘‘(ii) STATE CRITERIA.—The State forester, mitted under subparagraph (C) and subject to Congress a report on the eligible projects in consultation with the Committee, shall, to any criteria under paragraph (1); and carried out under this section in accordance based on the criteria established under ‘‘(II) give priority to applicants that pro- with section 8(c) of the Forest and Range- clause (i), and subject to the approval of the pose to fund eligible projects that promote— land Renewable Resources Planning Act of 1974 (16 U.S.C. 1606(c)). Secretary, establish criteria for— ‘‘(aa) the preservation of suburban forest ‘‘(I) the identification, subject to subpara- ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— land and open space; There are authorized to be appropriated to graph (B), of private forest land in each ‘‘(bb) the containment of suburban sprawl; State that may be conserved under this sec- carry out this section— ‘‘(cc) the sustainable management of pri- ‘‘(1) $50,000,000 for fiscal year 2004; and tion; and vate forest land; ‘‘(II) the identification of eligible entities. ‘‘(2) such sums as are necessary for each ‘‘(dd) community involvement in deter- fiscal year thereafter.’’. ‘‘(B) CONDITIONS FOR ELIGIBLE PRIVATE FOR- mining the objectives for eligible projects EST LAND.—Private forest land identified for (b) FOREST LEGACY PROGRAM.—Section 7 of that are funded under this section; and the Cooperative Forestry Assistance Act of conservation under subparagraph (A)(ii)(I) ‘‘(ee) community and school education pro- shall be land that— 1978 (16 U.S.C. 2103c) is amended— grams and curricula relating to sustainable ‘‘(i) is located in a State in which less than (1) in subsection (c), by striking the last forestry. 25 percent of the land is owned by the United sentence; ‘‘(3) COST SHARING.— States; and (2) in subsection (i), by striking ‘‘sub- ‘‘(A) IN GENERAL.—The amount of a grant ‘‘(ii) as determined by the State forester, section (b)’’ and inserting ‘‘this section’’; awarded under this section to carry out an in consultation with the Committee and sub- (3) in subsection (j)(1), by inserting ‘‘(other eligible project shall not exceed 50 percent of ject to the approval of the Secretary— than by donation)’’ after ‘‘acquired’’; the total cost of the eligible project. ‘‘(I) is located in an area that is affected, (4) in subsection (k)(2), by striking ‘‘the ‘‘(B) ASSURANCES.—As a condition of re- or threatened to be affected, by significant United States or its’’ and inserting ‘‘the ceipt of a grant under this section, an eligi- suburban sprawl, taking into account hous- United States, a State, or other entity, or ble entity shall provide to the Secretary ing needs in the area; and their’’; and ‘‘(II) is threatened by present or future such assurances as the Secretary determines (5) in subsection (l), by adding at the end conversion to nonforest use. are sufficient to demonstrate that the share the following: of the cost of each eligible project that is not ‘‘(2) GRANTS.— ‘‘(3) STATE AUTHORIZATION.— funded by the grant awarded under this sec- ‘‘(A) ELIGIBLE PROJECTS.— ‘‘(A) DEFINITION OF STATE FORESTER.—The tion has been secured. ‘‘(i) IN GENERAL.—In carrying out this sec- term ‘State forester’ has the meaning given tion, the Secretary shall award competitive ‘‘(C) FORM.—The share of the cost of car- the term in section 4(k). grants to eligible entities to carry out eligi- rying out any eligible project described in ‘‘(B) IN GENERAL.—Notwithstanding sub- ble projects. subparagraph (A) that is not funded by a section (c) and paragraph (2)(B), the Sec- ‘‘(ii) PUBLIC ACCESS.—Eligible entities are grant awarded under this section may be retary shall, on request by a State, authorize encouraged to provide public access to land provided in cash or in kind (including a do- the State to allow a qualified organization on which an eligible project is carried out. nation of land). (as defined in section 170(h)(3) of the Internal ‘‘(B) APPLICATION; STEWARDSHIP PLAN.—An ‘‘(d) USE OF GRANT FUNDS FOR PURCHASES Revenue Code of 1986) and that is organized eligible entity that seeks to receive a grant OF LAND OR EASEMENTS.— for at least 1 of the purposes described in sec- under this section shall submit to the State ‘‘(1) PURCHASES.— tion 170(h)(4)(A) of that Code, using amounts forester— ‘‘(A) IN GENERAL.—Except as provided in granted to a State under this paragraph, to ‘‘(i) at such time and in such form as the subparagraph (B), funds made available, and acquire 1 or more conservation easements to Secretary shall prescribe, an application for grants awarded, under this section may be carry out the Forest Legacy Program in the the grant (including a description of any pri- used to purchase private forest land or inter- State. vate forest land to be conserved using funds ests in private forest land (including con- ‘‘(C) ELIGIBILITY.—To be eligible to acquire from the grant and a description of the ex- servation easements) only from willing sell- and manage conservation easements under tent of the threat of conversion to nonforest ers at fair market value. this paragraph, a qualified organization de- use); and ‘‘(B) SALES AT LESS THAN FAIR MARKET scribed in subparagraph (B) shall, as deter- ‘‘(ii) a stewardship plan that describes the VALUE.—A sale of private forest land or an mined by the Secretary, acting through the manner in which— interest in private forest land at less than State forester, demonstrate the abilities nec- ‘‘(I) any private forest land to be conserved fair market value shall be permitted only on essary to acquire, monitor, and enforce in- using funds from the grant will be managed certification by the landowner that the sale terests in forest land consistent with the in accordance with this section; is being entered into willingly and without Forest Legacy Program and the assessment ‘‘(II) the stewardship plan will be imple- coercion. of need for the State. mented; and ‘‘(2) TITLE.—Title to private forest land or ‘‘(D) MONITORING AND ENFORCEMENT.— ‘‘(III) the public benefits to be achieved an interest in private forest land purchased ‘‘(i) IN GENERAL.—A qualified organization from implementation of the stewardship under paragraph (1) may be held, as deter- that acquires a conservation easement under plan. mined appropriate by the Secretary, by— this paragraph shall be responsible for moni- ‘‘(C) ASSESSMENT OF NEED.—With respect to ‘‘(A) a State; toring and enforcing the terms of the con- an application submitted under subpara- ‘‘(B) a unit of local government; or servation easement and any of the costs of graph (B), the State forester shall— ‘‘(C) a nonprofit organization. the qualified organization associated with ‘‘(i) assess the need for preserving subur- ‘‘(3) TERMINATION OF EASEMENT.— such monitoring and enforcement. ban forest land and open space and con- ‘‘(A) IN GENERAL.—Except as provided in ‘‘(ii) CONTINGENT RIGHTS.—If a qualified or- taining suburban sprawl in the State, taking subparagraph (B), all right, title, and inter- ganization that acquires a conservation ease- into account the housing needs of the area in est of a unit of local government or non- ment under this paragraph fails to enforce which the eligible project is to be carried profit organization in and to a conservation the terms of the conservation easement, as out; and easement shall terminate and vest in the determined by the State, the State or the ‘‘(ii) submit to the Secretary— State if the State determines that— Secretary shall have the right to enforce the ‘‘(I) the application submitted under sub- ‘‘(i) the unit of local government or non- terms of the conservation easement under paragraph (B); and profit organization is unable or unwilling to Federal or State law. ‘‘(II) the assessment of need. enforce the terms of the conservation ease- ‘‘(iii) AMENDMENTS.—Any amendments to a ‘‘(D) APPROVAL OR DISAPPROVAL.— ment; or conservation easement that materially af- ‘‘(i) IN GENERAL.—Subject to clause (ii), as ‘‘(ii) the conservation easement has been fect the terms of the conservation easement soon as practicable after the date on which modified in a way that is inconsistent with shall be subject to approval by the Secretary the Secretary receives an application under the purposes of the program. or the State, as appropriate.

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‘‘(E) TERMINATION OF EASEMENT.— U.S.C. 460–9), the boundaries of the Green menting related natural resource conserva- ‘‘(i) IN GENERAL.—Except as provided in Mountain National Forest, as adjusted by tion strategies, the Secretary may— clause (ii), all right, title, and interest of a this division, shall be considered to be the (A) make grants to and enter into con- qualified organization described in subpara- boundaries of the national forest as of Janu- tracts and cooperative agreements with the graph (B) in and to a conservation easement ary 1, 1965. Commonwealth, other Federal agencies, or- shall terminate and vest in the State or a SEC. 1113. PUERTO RICO KARST CONSERVATION. ganizations, corporations, and individuals; qualified designee if the State determines (a) SHORT TITLE.—This section may be and that— cited as the ‘‘Puerto Rico Karst Conserva- (B) use all authorities available to the Sec- ‘‘(I) the qualified organization fails to en- tion Act of 2003’’. retary, including— force the terms of the conservation ease- (b) FINDINGS.—Congress finds that— (i) the Forest and Rangeland Renewable ment; (1) in the Karst Region of the Common- Resources Research Act of 1978 (16 U.S.C. 1641 ‘‘(II) the conservation easement has been wealth of Puerto Rico there are— et seq.); modified in a way that is inconsistent with (A) some of the largest areas of tropical (ii) section 1472 of the National Agricul- the purposes of the Forest Legacy Program forests in Puerto Rico, with a higher density tural Research, Extension, and Teaching or the assessment of need for the State; or of tree species than any other area in the Policy Act of 1977 (7 U.S.C. 3318); and ‘‘(III) the conservation easement has been Commonwealth; and (iii) section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. conveyed to another person (other than to a (B) unique geological formations that are 3710a). qualified organization). critical to the maintenance of aquifers and (2) FUNDING SOURCES.—The activities au- ‘‘(ii) CONVEYANCE TO ANOTHER QUALIFIED watersheds that constitute a principal water thorized by this subsection may be carried ORGANIZATION.—If the State makes a deter- supply for much of the Commonwealth; out using— mination under clause (i), the State may (2) the Karst Region is threatened by de- (A) amounts in the Fund; convey or authorize the qualified organiza- velopment that, if unchecked, could perma- (B) amounts in the fund established by sec- tion to convey the conservation easement to nently damage the aquifers and cause irrep- tion 4(b) of the Forest and Rangeland Renew- another qualified organization. arable damage to natural and environmental ‘‘(F) IMPLEMENTATION.—The Secretary, act- able Resources Research Act of 1978 (16 assets that are unique to the United States; U.S.C. 1643(b)); ing through the State forester, shall imple- (3) the Commonwealth has 1 of the highest ment this paragraph in accordance with the (C) funds appropriated from the Land and population densities in the United States, Water Conservation Fund; assessment of need for the State as approved which makes the protection of the Karst Re- by the Secretary.’’. (D) funds appropriated for the Forest Leg- gion imperative for the maintenance of the acy Program; and SEC. 1111. WILDLAND FIREFIGHTER SAFETY. public health and welfare of the citizens of (E) any other funds made available for (a) DEFINITION OF SECRETARY.—In this sec- the Commonwealth; those activities. tion, the term ‘‘Secretary’’ means— (4) the Karst Region— (3) MANAGEMENT.— (1) the Secretary of Agriculture, with re- (A) possesses extraordinary ecological di- (A) IN GENERAL.—Land acquired under this spect to land of the National Forest System versity, including the habitats of several en- subsection shall be managed, in accordance described in section 3(1)(A); and dangered and threatened species and tropical with the Forest and Rangeland Renewable (2) the Secretary of the Interior, with re- migrants; and Resources Research Act of 1978 (16 U.S.C. 1641 spect to public lands described in section (B) is an area of critical value to research et seq.), in a manner to protect and conserve 3(1)(B). in tropical forest management; and the water quality and aquifers and the geo- (b) FIREFIGHTER SAFETY AND TRAINING (5) coordinated efforts at land protection logical, ecological, fish and wildlife, and BUDGET.—The Secretary shall— by the Federal Government and the Com- other natural values of the Karst Region. (1) track funds expended for firefighter monwealth are necessary to conserve the en- (B) FAILURE TO MANAGE AS REQUIRED.—In safety and training programs and activities; vironmentally critical Karst Region. any deed, grant, contract, or cooperative and (c) PURPOSES.—The purposes of this section agreement implementing this subsection and (2) include a line item for such expendi- are— the Forest Legacy Program in the Common- tures in each budget request submitted after (1) to authorize and support conservation wealth, the Secretary may require that, if the date of enactment of this Act. efforts to acquire, manage, and protect the land acquired by the Commonwealth or other (c) ANNUAL REPORT TO CONGRESS.—The tropical forest areas of the Karst Region, cooperating entity under this section is sold Secretaries shall, on an annual basis, jointly with particular emphasis on water quality or conveyed in whole or part, or is not man- submit to Congress a report on the imple- and the protection of the aquifers that are aged in conformity with subparagraph (A), mentation and efficacy of wildland fire- vital to the health and wellbeing of the citi- title to the land shall, at the discretion of fighter safety and training programs and ac- zens of the Commonwealth; and the Secretary, vest in the United States. tivities.— (2) to promote cooperation among the (4) WILLING SELLERS.—Any land acquired (d) SAFETY QUALIFICATION OF PRIVATE CON- Commonwealth, Federal agencies, corpora- by the Secretary in the Karst Region shall TRACTORS.— tions, organizations, and individuals in those be acquired only from a willing seller. (1) IN GENERAL.—The Secretaries shall en- conservation efforts. (5) RELATION TO OTHER AUTHORITIES.—Noth- sure that any Federal contract or agreement (d) DEFINITIONS.—In this section: ing in this subsection— entered into with a private entity for (1) COMMONWEALTH.—The term ‘‘Common- (A) diminishes any other authority that wildland firefighting services requires the wealth’’ means the Commonwealth of Puerto the Secretary may have to acquire, protect, entity to provide firefighter training that is Rico. and manage land and natural resources in consistent with qualification standards es- (2) FOREST LEGACY PROGRAM.—The term the Commonwealth; or tablished by the National Wildfire Coordi- ‘‘Forest Legacy Program’’ means the pro- (B) exempts the Federal Government from nating Group. gram established under section 7 of the Coop- Commonwealth water laws. (2) COMPLIANCE.—The Secretaries shall de- erative Forestry Assistance Act of 1978 (16 (f) PUERTO RICO KARST CONSERVATION velop a program to monitor and enforce com- U.S.C. 2103c). FUND.— pliance with the requirements of paragraph (3) FUND.—The term ‘‘Fund’’ means the (1) ESTABLISHMENT.—There is established (1). Puerto Rico Karst Conservation Fund estab- in the Treasury an interest-bearing account SEC. 1112. GREEN MOUNTAIN NATIONAL FOREST lished by subsection (f). to be known as the ‘‘Puerto Rico Karst Con- BOUNDARY ADJUSTMENT. (4) KARST REGION.—The term ‘‘Karst Re- servation Fund’’. (a) IN GENERAL.—The boundaries of the gion’’ means the areas in the Commonwealth (2) CREDITS TO FUND.—There shall be cred- Green Mountain National Forest are modi- generally depicted on the map entitled ited to the Fund— fied to include all parcels of land depicted on ‘‘Karst Region Conservation Area’’ and dated (A) amounts appropriated to the Fund; the forest maps entitled ‘‘Green Mountain March 2001, which shall be on file and avail- (B) all amounts donated to the Fund; Expansion Area Map I’’ and ‘‘Green Moun- able for public inspection in— (C) all amounts generated from the Carib- tain Expansion Area Map II’’, each dated (A) the Office of the Secretary, Puerto bean National Forest that would, but for this February 20, 2002, which shall be on file and Rico Department of Natural and Environ- paragraph, be deposited as miscellaneous re- available for public inspection in the Office mental Resources; and ceipts in the Treasury of the United States, of the Chief of the Forest Service, Wash- (B) the Office of the Chief of the Forest but not including amounts authorized by law ington, District of Columbia. Service. for payments to the Commonwealth or au- (b) MANAGEMENT.—Federally owned land (5) LAND.—The term ‘‘land’’ includes land, thorized by law for retention by the Sec- delineated on the maps acquired for National water, and an interest in land or water. retary for any purpose; Forest purposes shall continue to be man- (6) SECRETARY.—The term ‘‘Secretary’’ (D) all amounts received by the Adminis- aged in accordance with the laws (including means the Secretary of Agriculture. trator of General Services from the disposal regulations) applicable to the National For- (e) CONSERVATION OF THE KARST REGION.— of surplus real property in the Common- est System. (1) FEDERAL COOPERATION AND ASSIST- wealth under subtitle I of title 40, United (c) LAND AND WATER CONSERVATION FUND.— ANCE.—In furtherance of the acquisition, pro- States Code; and For the purposes of section 7 of the Land and tection, and management of land in and ad- (E) interest derived from amounts in the Water Conservation Fund Act of 1965 (16 jacent to the Karst Region and in imple- Fund.

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(3) USE OF FUND.—Amounts in the Fund cated an animal, paraphernalia, instrument, ‘‘(ii) RENEWAL.—The owner, custodian, or shall be available to the Secretary until ex- or other property or thing that there is prob- other person claiming an interest in a seized pended, without further appropriation, to able cause to believe was involved, is about animal may renew a bond, or be ordered to carry out subsection (e). to be involved, or is intended to be involved renew a bond, by posting a new bond, in an (g) MISCELLANEOUS PROVISIONS.— in a violation of this section shall issue a amount sufficient to provide for the care of (1) DONATIONS.— warrant to search for and seize the animal or the animal for at least an additional 30 days, (A) IN GENERAL.—The Secretary may ac- other property or thing. not later than 10 days after the expiration of cept donations, including land and money, ‘‘(B) APPLICATION; EXECUTION.—A United the period for which a previous bond was made by public and private agencies, cor- States marshal or any person authorized posted. porations, organizations, and individuals in under this section to conduct an investiga- ‘‘(iii) DISPOSITION.—If a bond expires and is furtherance of the purposes of this sub- tion may apply for and execute a warrant not renewed, the animal may be disposed of section. issued under subparagraph (A), and any ani- as provided in subparagraph (A). (B) CONFLICTS OF INTEREST.—The Secretary mal, paraphernalia, instrument, or other ‘‘(7) EUTHANIZATION.—Notwithstanding may accept donations even if the donor con- property or thing seized under such a war- paragraphs (1) through (6), an animal may be ducts business with or is regulated by the rant shall be held by the authorized person humanely euthanized if a veterinarian deter- Department of Agriculture or any other Fed- pending disposition of the animal, para- mines that the animal is suffering extreme eral agency. phernalia, instrument, or other property or pain.’’; and (C) APPLICABLE LAW.—Public Law 95–442 (7 thing by a court in accordance with this sub- U.S.C. 2269) shall apply to donations accept- section. SA 2069. Mr. AKAKA submitted an ed by the Secretary under this paragraph. ‘‘(4) STORAGE OF ANIMALS.— amendment intended to be proposed by (2) RELATION TO FOREST LEGACY PROGRAM.— ‘‘(A) IN GENERAL.—An animal seized by a him to the bill S. 1753, to amend the (A) IN GENERAL.—All land in the Karst Re- United States marshal or other authorized Fair Credit Reporting Act in order to gion shall be eligible for inclusion in the person under paragraph (3) shall be taken prevent identity theft, to improve the Forest Legacy Program. promptly to an animal housing facility in (B) COST SHARING.—The Secretary may use of and consumer access to con- which the animal shall be stored humanely. sumer reports, to enhance the accuracy credit donations made under paragraph (1) to ‘‘(B) NO FACILITY AVAILABLE.—If there is satisfy any cost-sharing requirements of the not available a suitable animal storage facil- of consumer reports, to limit the shar- Forest Legacy Program. ity sufficient in size to hold all of the ani- ing of certain consumer information, (h) AUTHORIZATION OF APPROPRIATIONS.— mals involved in a violation, a United States to improve financial education and lit- There are authorized to be appropriated marshal or other authorized person shall— eracy, and for other purposes; which such sums as are necessary to carry out this ‘‘(i) seize a representative sample of the section. was ordered to lie on the table; as fol- animals for evidentiary purposes to be trans- SEC. 1114. FARM SECURITY AND RURAL INVEST- lows: ported to an animal storage facility in which MENT ACT. On page 96, after line 25, insert the fol- Section 10806(b)(1) of the Farm Security the animals shall be stored humanely; and lowing: ‘‘(ii)(I) keep the remaining animals at the and Rural Investment Act of 2002 (21 U.S.C. SEC. 519. THE NATIONAL PUBLIC SERVICE 321d; 116 Stat. 526), is deemed to have first location where the animals were seized; MULTIMEDIA CAMPAIGN TO EN- become effective 15 days after the date of the ‘‘(II) provide for the humane care of the HANCE THE STATE OF FINANCIAL enactment of this Act. animals; and LITERACY. ‘‘(III) cause the animals to be banded, SEC. 1115. ENFORCEMENT OF ANIMAL FIGHTING (a) IN GENERAL.—The Commission, as part PROHIBITIONS UNDER THE ANIMAL tagged, or marked by microchip and photo- of any national strategy, shall develop, im- WELFARE ACT. graphed or videotaped for evidentiary pur- plement, and conduct a pilot national public (a) IN GENERAL.—Section 26 of the Animal poses. service multimedia campaign to enhance the Welfare Act (7 U.S.C. 2156) is amended— ‘‘(5) CARE.—While a seized animal is held in state of financial literacy and education in (1) by redesignating subsections (c) custody, a United States marshal or other the United States. through (h) as subsections (d) through (i), re- authorized person shall ensure that the ani- (b) PROGRAM REQUIREMENTS.— spectively; mal is provided necessary care (including (1) PUBLIC SERVICE CAMPAIGN.—The Com- (2) by inserting after subsection (b) the fol- housing, feeding, and veterinary treatment). mission shall select and work with an orga- lowing: ‘‘(6) FORFEITURE.— nization that is especially well-qualified in ‘‘(c) SHARP INSTRUMENTS.—It shall be un- ‘‘(A) IN GENERAL.—Any animal, para- the distribution of public service campaigns lawful for any person to knowingly sell, buy, phernalia, instrument, vehicle, money, or and has secured private sector funds to transport, or deliver in interstate or foreign other property or thing involved in a viola- produce the pilot national public service commerce a knife, a gaff, or any other sharp tion of this section shall be liable to be pro- multimedia campaign. instrument attached, or designed or intended ceeded against and forfeited to the United (2) DEVELOPMENT OF MULTIMEDIA CAM- to be attached, to the leg of a bird for use in States at any time on complaint filed in any PAIGN.—The Commission shall develop, in an animal fighting venture.’’; United States district court or other court of consultation with nonprofit, public, or pri- (3) in subsection (e) (as redesignated by the United States for any jurisdiction in vate organizations, especially those that are paragraph (1)), by striking ‘‘(c)’’ and insert- which the animal, paraphernalia, instru- well qualified by virtue of their experience in ing ‘‘(d)’’; ment, vehicle, money, or other property or the field of financial literacy and education, (4) in subsection (f) (as redesignated by thing is found. to develop the financial literacy national paragraph (1))— ‘‘(B) DISPOSITION.—On entry of a judgment public service multimedia campaign. (A) by striking ‘‘(a), (b), or (c)’’ and insert- of forfeiture, a forfeited animal shall be dis- (3) FOCUS OF CAMPAIGN.—The pilot national ing ‘‘(a), (b), (c), or (d)’’; and posed of by humane means, as the court may public service multimedia campaign shall be (B) by striking ‘‘1 year’’ and inserting ‘‘2 direct. consistent with the national strategy devel- years’’; ‘‘(C) COSTS.—Costs incurred by the United oped by the Commission. (5) by striking subsection (g) (as redesig- States for care of an animal seized and for- (c) AUTHORIZATION OF APPROPRIATIONS.— nated by paragraph (1)) and inserting the fol- feited under this section shall be recoverable There are authorized to be appropriated to lowing: from the owner of the animal— the Commission not to exceed $3,000,000 for ‘‘(g) INVESTIGATIONS.— ‘‘(i) in the forfeiture proceeding, if the fiscal years 2004, 2005, and 2006 for the devel- ‘‘(1) IN GENERAL.—The Secretary or any owner appears in the forfeiture proceeding; opment, production, and distribution of a person authorized by the Secretary shall or pilot national public service multimedia make such investigations as the Secretary ‘‘(ii) in a separate civil action brought in campaign. considers necessary to determine whether the jurisdiction in which the owner is found, (d) PERFORMANCE MEASURES.—The Com- any person has violated or is violating any resides, or transacts business. mission shall develop measures to evaluate provision of this section. ‘‘(D) CLAIM TO PROPERTY.— the effectiveness of the pilot national public ‘‘(2) ASSISTANCE.—Through cooperative ‘‘(i) IN GENERAL.—The owner, custodian, or service multimedia campaign, as measured agreements, the Secretary may obtain the other person claiming an interest in a seized by improved financial decision making assistance of the Federal Bureau of Inves- animal may prevent disposition of the ani- among individuals. tigation, the Department of the Treasury, mal by posting, or may be ordered by any (e) REPORT.—For each fiscal year for which and other law enforcement agencies of the United States district court or other court of there are appropriations pursuant to the au- United States and of State, tribal, and local the United States, or by any tribal court, for thorization in subsection (c), the Commis- governmental agencies in the conduct of an any jurisdiction in which the animal is found sion shall submit a report to the Committee investigation under paragraph (1). to post, not later than 10 days after the ani- on Banking, Housing, and Urban Affairs and ‘‘(3) WARRANTS.— mal is seized, a bond with the court in an the Committee on Appropriations of the Sen- ‘‘(A) ISSUANCE.—A judge of the United amount sufficient to provide for the care of ate and the Committee on Financial Services States, United States magistrate judge, or the animal (including housing, feeding, and and the Committee on Appropriations of the judge of a State or tribal court of competent veterinary treatment) for not less than 30 House of Representatives describing the sta- jurisdiction in the district in which is lo- days. tus and implementation of the provisions of

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00104 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.073 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13943 this section and the state of financial lit- NOTICES OF HEARINGS/MEETINGS The PRESIDING OFFICER. Without eracy in the United States. COMMITTEE ON ENERGY AND NATURAL objection, it is so ordered. RESOURCES COMMITTEE ON THE JUDICIARY SA 2070. Mr. ALEXANDER submitted Mr. DOMENICI. Mr. President, I an- Mr. SUNUNU. Mr. President, I ask an amendment intended to be proposed nounce for the information of the Sen- unanimous consent that the Senate by him to the bill S. 150, to make per- ate and the public that a hearing has Committee on the Judiciary Sub- manent the moratorium on taxes on been scheduled before the Committee committees on Terrorism, Technology Internet access and multiple and dis- on Energy and Natural Resources. and Homeland Security be authorized criminatory taxes on electronic com- The hearing will be held on Wednes- to meet to conduct a hearing on ‘‘Data- merce imposed by the Internet Tax day, November 12 at 10 a.m. in Room base Security: Finding Out When Your Freedom Act; which was ordered to lie SD–366 of the Dirksen Senate Office Information Has Been Compromised,’’ on the table; as follows: Building. on Tuesday, November 4, 2003, at 10:00 The purpose of the hearing is to con- At the appropriate place, insert the fol- a.m. in Room 226 of the Dirksen Senate lowing: duct oversight of the implementation Office Building. of the Energy Employees Occupational SEC. ll. REIMBURSEMENT OF LOST STATE REV- Witness list: Mr. Mark MacCarthy, ENUE. Illness Compensation Program. Senior Vice President of Public Policy, Because of the limited time available Visa U.S.A., Inc., Washington, DC; Mr. (A) REPORT.— for the hearing, witnesses may testify (1) OMB.—Not later than November 1 of David McIntyre, President and CEO, each year, the Director of Office of Manage- by invitation only. However, those TriWest Healthcare Alliance, Phoenix, ment and Budget shall report to the Sec- wishing to submit written testimony AZ; and Mr. Evan Hendricks, Editor, retary of the Treasury the State tax revenue for the hearing record should send two Privacy Times, Cabin John, MD. amount for each State and local government copies of their testimony to the Com- The PRESIDING OFFICER. Without that was not received by that State or local mittee on Energy and Natural Re- objection, it is so ordered. government during the most recent fiscal sources, United States Senate, Wash- subcommittee on substance abuse year ending September 30 as a result of the ington, DC 20510–6150. Internet Tax Freedom Act. and mental health services (2) CBO.—Not later than November 5 of f Mr. SUNUNU. Mr. President, I ask each year, the Director of the Congressional AUTHORITY FOR COMMITTEES TO unanimous consent that the Com- Budget Office shall report to Congress the in- MEET mittee on Health, Education, Labor, formation required by paragraph (1) and in- and Pensions, Subcommittee on Sub- COMMITTEE ON COMMERCE, SCIENCE, AND clude an explanation of any differences with stance Abuse and Mental Health Serv- the report submitted under paragraph (1). TRANSPORTATION Mr. SUNUNU. Mr. President, I ask ices be authorized to meet for a hear- (b) PAYMENT.—Not later than November 20 unanimous consent that the Com- ing on ‘‘Recommendations to Improve of each year and subject to appropriations, Mental Health Care in America: Report the Secretary of the Treasury shall make a mittee on Commerce, Science, and payment out of the Treasury to each State Transportation be authorized to meet from the President’s New Freedom in an amount equal to the amount deter- on Tuesday, November 4, 2003, at 9:30 Commission on Mental Health’’ during mined for that State and local governments a.m. on the nominations of Kirk Van the session of the Senate on Tuesday, in that State under subsection (a)(1). Each Tine and Jeffrey Rosen, DOT; Michael November 4, 2003, at 10 a.m. State shall distribute the amounts attrib- Gallagher, DOC; Cheryl Halpern and The PRESIDING OFFICER. Without utable to local governments in that State to objection, it is so ordered. the local governments. Elizabeth Courtney, CPB. The PRESIDING OFFICER. Without SUBCOMMITTEE ON INTERNATIONAL TRADE AND (c) APPROPRIATION.—There are authorized objection, it is so ordered. FINANCE to be appropriated such sums as are nec- Mr. SUNUNU. Mr. President, I ask essary to carry out this section. COMMITTEE ON FINANCE Mr. SUNUNU. Mr. President, I ask unanimous consent that the Sub- unanimous consent that the Com- committee on International Trade and Mr. COLEMAN submitted an SA 2071. mittee on Finance be authorized to Finance of the Committee on Banking, amendment intended to be proposed by meet during the session on Tuesday, Housing, and Urban Affairs be author- him to the bill H.R. 2673, making ap- November 4, 2003, at 10 a.m., to hear ized to meet during the session of the propriations for Agriculture, Rural De- testimony on nominations of Michael Senate on November 4, 2003, at 2:30 p.m. velopment, Food and Drug Administra- O’Grady, to be Assistant Secretary of to conduct a hearing on ‘‘Financial Re- tion, and Related Agencies for the fis- Health and Human Services, Depart- construction in Iraq.’’ cal year ending September 30, 2004, and ment of Health and Human Services; The PRESIDING OFFICER. Without for other purposes; which was ordered Jennifer Young, to be Assistant Sec- objection, it is so ordered. to lie on the table; as follows: retary of Health and Human Services, f On page 79, between lines 7 and 8, insert Department of Health and Human PRIVILEGE OF THE FLOOR the following: Services; and Bradley G. Belt, to be SEC. 7ll. USE OF ELIGIBLE COMMODITIES. Member of the Social Security Advi- Mr. JOHNSON. Mr. President, I ask (a) AVAILABILITY.—Section 416(b)(1) of the sory Board, Social Security Adminis- unanimous consent that Naomi Camp- Agricultural Act of 1949 (7 U.S.C. 1431(b)(1)) tration. er, Adam Healy, and Elizabeth Canter is amended in the first sentence by striking The PRESIDING OFFICER. Without of my staff be granted the privilege of ‘‘1954 and under the Food for Progress Act of objection, it is so ordered. the floor during debate on S. 1753, the 1985,’’ and inserting ‘‘1954 (7 U.S.C. 1721 et COMMITTEE ON FOREIGN RELATIONS National Consumer Credit Reporting seq.), the Food for Progress Act of 1985 (7 Mr. SUNUNU. Mr. President, I ask System Improvement Act. U.S.C. 1736o), and section 3107 of the Farm unanimous consent that the Com- The PRESIDING OFFICER. Without Security and Rural Investment Act of 2002 (7 objection, it is so ordered. U.S.C. 1736o–1),’’. mittee on Foreign Relations be author- ized to meet during the session on (b) MCGOVERN-DOLE INTERNATIONAL FOOD f FOR EDUCATION AND CHILD NUTRITION PRO- Tuesday, November 4, 2003 at 9:30 a.m. to hold a hearing on nominations. UNANIMOUS CONSENT REQUEST— GRAM.—Section 3107(l) of the Farm Security EXECUTIVE CALENDAR and Rural Investment Act of 2002 (7 U.S.C. The PRESIDING OFFICER. Without 1736o–1(l)) is amended by adding at the end objection, it is so ordered. Mr. SANTORUM. Mr. President, I the following: COMMITTEE ON FOREIGN RELATIONS have a unanimous consent request that ‘‘(4) USE OF ELIGIBLE COMMODITIES.—In ad- Mr. SUNUNU. Mr. President, I ask we proceed to the Pryor nomination. dition to other funds that are available unanimous consent that the Com- But I would just ask the Senator from under other provisions of law, the President mittee on Foreign Relations be author- Nevada if there is a possibility that we may use commodities and funds made avail- able under section 416(b) of the Agricultural ized to meet during the session on could get a unanimous consent agree- Act of 1949 (7 U.S.C. 1431(b)) to carry out this Tuesday, November 4, 2003 at 2:30 p.m. ment, however much time the minority section (including payment for transpor- to hold a subcommittee hearing on would need, to debate this nominee so tation of eligible commodities).’’. North Korea. we can give the attorney general of

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00105 Fmt 0624 Sfmt 0634 E:\CR\FM\A04NO6.074 S04PT1 S13944 CONGRESSIONAL RECORD — SENATE November 4, 2003 Alabama, who has been nominated to EXECUTIVE CALENDAR assure him that I do not believe the the Eleventh Circuit, the opportunity Mr. SANTORUM. Mr. President, I Governmental Affairs Committee’s ju- to have an up-or-down vote on the floor ask unanimous consent that the Sen- risdiction affects in any way the Judi- of the Senate, which has been the cus- ate immediately proceed to consider ciary Committee’s jurisdiction over tom here for over 22 years. the following nomination on today’s immigration and naturalization mat- The PRESIDING OFFICER. Is there Executive Calendar: Calendar No. 420. I ters, as set forth in Senate Rule XXV. objection? further ask unanimous consent that The Governmental Affairs Committee Mr. REID. Mr. President, I would say the nomination be confirmed, the mo- was responsible for the Homeland Secu- to my friend, and the entire Senate, we tion to reconsider be laid upon the rity Act of 2002 which created the new have already spoken on this. There has table, and the President be imme- Department of Homeland Security. The been a vote to invoke cloture. That diately notified of the Senate’s action. committee has conducted wide-ranging failed. I am confident if this comes up The PRESIDING OFFICER. Without and vigorous oversight of the Depart- again, the vote will be the same. So I objection, it is so ordered. ment and, this year alone, has reported think that actually we are just wasting The nomination considered and con- out six bills that address homeland se- the time of the Senate, with all the firmed is as follows: curity concerns. In total, the Govern- many important things we have to do, NATIONAL AERONAUTICS AND SPACE mental Affairs Committee has held and it would just be a repeat of the ADMINISTRATION over 30 hearings on homeland security prior effort to invoke cloture, which Gwendolyn Brown, of Virginia, to be Chief matters, thus reflecting the paramount failed. Financial Officer, National Aeronautics and role it plays with respect to these mat- So I object to my friend’s request. Space Administration. ters. The PRESIDING OFFICER. The ob- REFERRAL OF NOMINATION—EXECUTIVE The committee also has handled the jection is heard. CALENDAR NO. 299 nominations of almost all of the De- Mr. HATCH. Mr. President, I appre- partment’s nominees. On June 5 of this f ciate Senator COLLINS, chair of the year, our committee held a hearing on EXECUTIVE SESSION Governmental Affairs Committee, en- Mr. Garcia’s nomination. We reported tering into a colloquy on a matter that his nomination to the full Senate on concerns the Judiciary Committee. In June 17. We then agreed to a referral of NOMINATION OF WILLIAM H. particular, our colloquy involves the Mr. Garcia’s nomination to the Judici- PRYOR, JR., OF ALABAMA, TO BE nomination of Michael Garcia to be As- ary Committee. I understand that my UNITED STATES CIRCUIT JUDGE sistant Secretary of Homeland Secu- colleague, the distinguished chairman FOR THE ELEVENTH CIRCUIT rity. Following our statements, I will of the Judiciary Committee, now seeks Mr. SANTORUM. Mr. President, I seek an unanimous consent agreement a second referral of the nomination in now ask unanimous consent that the to refer Mr. Garcia’s nomination to the order to complete its work thereon. I Senate proceed to executive session for Judiciary Committee. have no objection to my colleagues’ re- the consideration of Calendar No. 310, All committees derive their ‘‘respec- quest. the nomination of William Pryor, to be tive jurisdictions’’ from Senate Rule Mr. HATCH. I thank the chair of the U.S. circuit judge for the Eleventh Cir- XXV, among other sources. As such, Governmental Affairs Committee for cuit. the Governmental Affairs Committee, her comments and efforts on this mat- The PRESIDING OFFICER. Is there in its responsibility for the ‘‘organiza- ter. objection? tion and reorganization of the execu- Mr. SANTORUM. Mr. President, I Without objection, it is so ordered. tive branch of the Government,’’ ask unanimous consent that Executive Mr. SANTORUM. The clerk will re- played a crucial role in establishing Calendar No. 299, the nomination of Mi- port. the new Department of Homeland Se- chael Garcia, to be an Assistant Sec- The legislative clerk read the nomi- curity. I would like to compliment retary of Homeland Security, be re- nation of William H. Pryor, Jr., of Ala- Senator COLLINS on her leadership and ferred to the Committee on the Judici- bama, to be United States Circuit the significant improvements that ary for a period not to exceed 30 days of Judge for the Eleventh Circuit. have resulted in our Nation’s security Senate session, and that the Senate re- CLOTURE MOTION since September 11. turn to legislative session. The PRESIDING OFFICER. Without Mr. SANTORUM. Mr. President, on Also, under Senate Rule XXV, the objection, it is so ordered. behalf of the majority leader, I now Committee on the Judiciary has juris- send a cloture motion to the desk. diction over ‘‘immigration and natu- f The PRESIDING OFFICER. The clo- ralization.’’ It is important for the im- LEGISLATIVE SESSION ture motion having been presented migration and naturalization functions The PRESIDING OFFICER. Under under rule XXII, the Chair directs the which have been transferred from the the previous order, the Senate will now clerk to read the motion. Department of Justice and other law return to legislative session. The legislative clerk read as follows: enforcement agencies to the Depart- f CLOTURE MOTION ment of Homeland Security to remain We the undersigned Senators, in accord- under the jurisdiction of the Judiciary FEDERAL COURT PROCEEDINGS IN ance with the provisions of Rule XXII of the Committee. PLANO, TX Standing Rules of the Senate, do hereby With the formation of three new bu- Mr. SANTORUM. Mr. President, I move to bring to a close debate on Executive reaus for immigration policy in the De- ask unanimous consent that the Sen- Calendar No. 310, the nomination of William partment of Homeland Security, count- ate proceed to the immediate consider- H. Pryor, Jr., to be United States Circuit less situations—from day-to-day immi- ation of Calendar No. 355, S. 1720. Judge for the Eleventh Circuit. gration services and enforcement to The PRESIDING OFFICER. The Bill Frist, Rick Santorum, Ben long-term border security planning— Nighthorse Campbell, Lindsey Graham, clerk will report the title of the bill. Norm Coleman, John Sununu, Jon Kyl, will arise in which legislation affecting The legislative clerk read as follows: Mike DeWine, Wayne Allard, Elizabeth these bureaus and oversight of these A bill (S. 1720) to provide for the Federal Dole, Pete Domenici, Mitch McConnell, bureaus is an essential role of the Judi- court proceedings in Plano, Texas. Robert F. Bennett, Jeff Sessions, Mi- ciary Committee. I appreciate my col- There being no objection, the Senate chael B. Enzi, John Ensign, John league taking the time to clarify the proceeded to consider the bill which Cornyn. confirmation process for Mr. Garcia had been reported from the Committee Mr. SANTORUM. Mr. President, I and the commitment to Senate Rules on the Judiciary with an amendment further ask unanimous consent that XXI and XXVI, Section 8 as it affects to strike all after the enacting clause the live quorum provided for under rule the Judiciary Committee’s jurisdic- and inserting in lieu thereof the fol- XXII be waived. tion. lowing: The PRESIDING OFFICER. Is there Ms. COLLINS. I appreciate the Sen- (Strike the part shown in black objection? ator’s comments, and I look forward to brackets and insert the part shown in Without objection, it is so ordered. working with him. I would also like to italic.)

VerDate jul 14 2003 06:18 Nov 05, 2003 Jkt 029060 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 E:\CR\FM\G04NO6.128 S04PT1 November 4, 2003 CONGRESSIONAL RECORD — SENATE S13945 S. 1720 The bill (S. 1720), as amended, was PROGRAM Be it enacted by the Senate and House of Rep- read the third time and passed. Mr. SANTORUM. For the informa- resentatives of the United States of America in f tion of all Senators, tomorrow, fol- Congress assembled, lowing morning business, the Senate øSECTION 1. FEDERAL COURT PROCEEDINGS IN FALLEN PATRIOTS TAX RELIEF PLANO, TEXAS. ACT will begin consideration of H.R. 2673, ø the Agriculture appropriations bill. Section 124(c)(3) of title 28, United States AMENDMENT NO. 2051, AS MODIFIED Code, is amended by inserting ‘‘and Plano’’ The bill managers will be here in the after ‘‘held at Sherman’’.¿ Mr. SANTORUM. Mr. President, I morning to begin working through the ask unanimous consent that notwith- SECTION 1. CHANGE IN COMPOSITION OF DIVI- amendments to the bill. It is the ma- SIONS OF EASTERN DISTRICT OF standing the passage of H.R. 3365, jority leader’s intention to complete TEXAS. amendment No. 2051 be modified with action on the bill during tomorrow’s (a) IN GENERAL.—Section 124(c) of title 28, the technical correction at the desk. session. Senators who have amend- United States Code, is amended— The PRESIDING OFFICER. Without (1) in paragraph (3)— ments are encouraged to contact the objection, it is so ordered. bill managers as soon as possible. (A) by striking ‘‘Denton, and Grayson’’ and The modification is as follows: inserting ‘‘Delta, Denton, Fannin, Grayson, Strike all after the enacting clause and in- In addition to the Agriculture appro- Hopkins, and Lamar’’; and sert the following: priations bill, the Senate will also (B) by inserting ‘‘and Plano’’ after ‘‘held at complete action on both the fair credit Sherman’’; SECTION 1. SHORT TITLE, ETC. (a) SHORT TITLE.—This Act may be cited as reporting bill and the Syria Account- (2) by striking paragraph (4) and redesig- ability Act during tomorrow’s session. nating paragraphs (5) through (7) as para- the ‘‘Military Family Tax Relief Act of graphs (4) through (6), respectively; and 2003’’. Therefore, Senators should expect a (3) in paragraph (5), as so redesignated, by in- (b) AMENDMENT OF 1986 CODE.—Except as very busy day tomorrow, with rollcall serting ‘‘Red River,’’ after ‘‘Franklin,’’. otherwise expressly provided, whenever in votes occurring throughout the day. this Act an amend- (b) EFFECTIVE DATE.— (1) IN GENERAL.—This section and the amend- f f ments made by this section shall take effect on ORDERS FOR WEDNESDAY, the date of the enactment of this Act. NOVEMBER 5, 2003 (2) PENDING CASES NOT AFFECTED.—This sec- ADJOURNMENT UNTIL 9:30 A.M. tion and the amendments made by this section Mr. SANTORUM. Mr. President, I TOMORROW shall not affect any action commenced before ask unanimous consent that when the Mr. SANTORUM. Mr. President, if the effective date of this section and pending in Senate completes its business today, it there is no further business to come be- the United States District Court for the Eastern adjourn until 9:30 a.m., Wednesday, No- fore the Senate, I ask unanimous con- District of Texas on such date. vember 5. I further ask that following (3) JURIES NOT AFFECTED.—This section and sent that the Senate stand in adjourn- the amendments made by this section shall not the prayer and the pledge, the morning ment under the previous order. affect the composition, or preclude the service, hour be deemed expired, the Journal of There being no objection, the Senate, of any grand or petit jury summoned, proceedings be approved to date, the at 7:58 p.m., adjourned until Wednes- impaneled, or actually serving in the Eastern time for the two leaders be reserved for day, November 5, 2003, at 9:30 a.m. Judicial District of Texas on the effective date of their use later in the day, and the Sen- this section. ate then begin a period of morning f Mr. SANTORUM. Mr. President, I business for 60 minutes, with the first ask unanimous consent that the com- 30 minutes under the control of Sen- CONFIRMATION mittee amendment be agreed to, the ator ROBERTS or his designee and the bill, as amended, be read for the third second 30 minutes under the control of Executive nomination confirmed by time and passed, the motion to recon- the minority leader or his designee; the Senate November 4, 2003: sider be laid upon the table en bloc, provided that following morning busi- NATIONAL AERONAUTICS AND SPACE and that any statements relating to ness, the Senate proceed to the consid- ADMINISTRATION the bill be printed in the RECORD. eration of H.R. 2673, the Agriculture GWENDOLYN BROWN, OF VIRGINIA, TO BE CHIEF FINAN- The PRESIDING OFFICER. Without CIAL OFFICER, NATIONAL AERONAUTICS AND SPACE AD- appropriations bill, as provided under MINISTRATION. objection, it is so ordered. the previous order. THE ABOVE NOMINATION WAS APPROVED SUBJECT TO The committee amendment in the The PRESIDING OFFICER. Without THE NOMINEE’S COMMITMENT TO RESPOND TO RE- QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY nature of a substitute was agreed to. objection, it is so ordered. CONSTITUTED COMMITTEE OF THE SENATE.

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