Senate the Senate Met at 9:30 A.M

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

Vol. 148 WASHINGTON, THURSDAY, JULY 25, 2002 No. 103 Senate The Senate met at 9:30 a.m. and was PLEDGE OF ALLEGIANCE the two leaders that allows the major- called to order by the Honorable JACK The Honorable JACK REED led the ity leader to call up the legislative REED, Senator from the State of Rhode Pledge of Allegiance, as follows: branch appropriations bill, which prob- Island. ably will be done sometime today. Fol- I pledge allegiance to the Flag of the United States of America, and to the Repub- lowing that, we may even go to the De- PRAYER lic for which it stands, one nation under God, fense bill. The order is we go to that The PRESIDING OFFICER. The indivisible, with liberty and justice for all. before next Wednesday. In the meantime, there is work being prayer will be offered today by the f done. People worked in the Capitol guest Chaplain, the Rev. Dr. Frederick APPOINTMENT OF ACTING until late last night trying to come up W. Pfotenhauer, from Hilltop Lutheran PRESIDENT PRO TEMPORE with some sort of amendment dealing Church of the Ascension, South Bend, with prescription drugs. We need a bi- IN. The PRESIDING OFFICER. The clerk will please read a communication partisan agreement on that. It was a The guest Chaplain, offered the fol- to the Senate from the President pro bipartisan group meeting last night. lowing prayer: tempore (Mr. BYRD). The Senator from Oregon, the junior Holy God, Wisdom Eternal, at the The legislative clerk read the fol- Senator from Oregon, Senator SMITH, time Your Spirit breathed over the lowing letter: wishes to speak for a few minutes now, Earth and gave life and heart to all and I ask unanimous consent he be al- U.S. SENATE, that is, You also called all people to be PRESIDENT PRO TEMPORE, lowed up to 3 minutes to speak. participants in Your holy actions. En- Washington, DC, July 25, 2002. The ACTING PRESIDENT pro tem- able each of us, especially those elected To the Senate: pore. Without objection, it is so or- to this United States Senate and Under the provisions of rule I, paragraph 3, dered. charged with being the voice of the of the Standing Rules of the Senate, I hereby The Senator from Oregon. people who inhabit this beloved land, appoint the Honorable JACK REED, a Senator f from the State of Rhode Island, to perform to recognize our responsibility as con- GUEST CHAPLAIN DR. FREDERICK duits for these Your holy actions. Our the duties of the Chair. ROBERT C. BYRD, W. PFOTENHAUER prayer this morning, in voices lifted to President pro tempore. You, resonates not only with the men, Mr. SMITH of Oregon. Mr. President, women, and children of our country Mr. REED thereupon assumed the it is my privilege today to say a few but with the voice of humanity Chair as Acting President pro tempore. words about the reverend doctor who throughout the world and across the f offered a word of prayer on behalf of this country and this institution this centuries. And so we, the family of the RECOGNITION OF THE ACTING Senate, desiring to be filled anew this morning. MAJORITY LEADER The Rev. Dr. Fritz Pfotenhauer has day with Your Spirit, Your wisdom, The ACTING PRESIDENT pro tem- given me permission to refer to him and Your purpose, plead with You to pore. The acting majority leader is rec- personally as Fritz, but he is a most hear once more the prayer of Francis of ognized. distinguished pastor and minister of Assisi. f the gospel. He is the pastor of the Hill- Lord, make me an instrument of top Lutheran Church in South Bend, SCHEDULE Your peace; where there is hatred, let IN. He is descended from a long line of me sow love; where there is injury, par- Mr. REID. The first hour, as the Lutheran ministers in an unbroken fa- don; where there is doubt, faith; where Chair will shortly announce, will be a ther-son succession dating back to the there is despair, hope; where there is period of morning business. The Repub- time of the great reformer, Martin Lu- darkness, light; where there is sadness, lican leader has control of the first ther. joy. half, and the Democratic leader has Dr. Pfotenhauer completed his Ph.D. O Divine Master, grant that I may control of the second half. in pastoral theology at the University not so much seek to be consoled as to At 10:30, we will begin consideration of Notre Dame where he also taught for console, to be understood as to under- of the motion to waive the Budget Act 20 years until his retirement recently. stand; to be loved as to love. with respect to the Rockefeller amend- He will also retire at the end of this For it is in giving that we receive, it ment. There will be 1 hour of debate on year as the pastor of Hilltop Lutheran is in pardoning that we are pardoned. that and a vote thereafter. after 36 years of service to that com- And it is in dying that we are born to Last night, a unanimous consent munity and 46 years as an ordained Eternal Life. Amen. agreement was entered into between minister.

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

S7323

.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7324 CONGRESSIONAL RECORD — SENATE July 25, 2002 I think it is significant that this homes at a record pace and refinancing vious year’s budget, the budget that good brother is not just trained for the old ones, thus yielding either lower this Senator, as chairman, helped put ministry and knows the ivory tower payments or cash at hand which they together, is now impacting and will and knows the depths of theology, but are using to acquire what they believe through the remainder of this fiscal he knows how it is to minister, how it they need. year be impacting on what we can do in is to change the human heart and help Notice that those who claimed that Medicare. Clearly, it is saying we can lift people from the wrong path. This is the tax cut would lead to higher inter- only spend $300 billion over the next a man, as you meet with him, who can est rates have been very quiet of late, decade. That was the judgment of the talk deep in terms of gospel principles at least on that point. The Federal Re- Senate when it last voted in a budget but also knows personally what it is serve sees the economy as growing at resolution. like to change the human heart and to about a 3-percent rate in the second Things have not gotten better but set it on the course of righteousness. half of this year and even faster next perhaps have gotten somewhat worse Pastor Pfotenhauer is the father of year. The unemployment rate will during that intervening year. We are Kurt Pfotenhauer, who is my friend probably end the year at about 5.9 per- here on the floor discussing a Medicare and my former chief of staff for nearly cent. That is about right where it is bill that is much larger than what we 6 years. Dr. Pfotenhauer’s wife, Caro- now. talked about the year previous when lyn, is in the audience today. We wel- Next year, the jobless rate could drop we had a rather positive economy, not come her. We honor her, as well as her to about 5.4 percent. This does not one that was in the red but one that grandsons, Jon and Ben, and her daugh- mean the outlook lacks uncertainty. was in the black. ter-in-law, the pastor’s daughter-in- The recent weakness in the stock mar- Now the question is, What shall we law, Kurt’s wife, Nancy. They are all ket is important. The American people do for the remainder of this year, up with him today. are worried, concerned. Lower equity until October 1, when all the appropria- We honor you, sir. We thank you for prices create a negative wealth effect tions bills are subject to adoption in your service to us today. We thank God that will be a drag on consumer spend- both Houses, to go to conference, come for your service to his children. ing, as I have just indicated. Lower back, and then go to the President— I yield the floor. stock prices also make it tougher for when all the other measures on which businesses to acquire the capital they we have been going slow, or are in con- f need to invest. Slow business invest- ference, have to come up? Are we going RESERVATION OF LEADER TIME ment continues to be our economy’s to have no budget resolution nor budg- The ACTING PRESIDENT pro tem- weakest point. And, of course, we still et statement impacts on any of those pore. Under the previous order, the face the risk of further terrorist at- activities, the sum total of which are leadership time is reserved. tacks or other conflicts that could dis- the budget, and determine, starting Oc- rupt the energy market. tober 1, what we shall do? f Chairman Greenspan also observed: It makes it difficult. Even the distin- MORNING BUSINESS To a degree, the return to budget deficits guished chairman of the Appropria- has been the result of temporary factors, es- tions Committee, the President pro The ACTING PRESIDENT pro tem- pecially the falloff of revenue, of tax take, tempore, responding to a question pore. Under the previous order there and the increase in outlays associated with about how not having a budget would will now be a period for the transaction the economic downturn. affect the ability to work on appropria- of morning business not to extend be- But the chairman also observed that tions bills, said—and I quote from The yond the hour of 10:30 a.m. with Sen- unfortunately, despite these temporary Hill magazine: ators permitted to speak therein for up factors impacting the deficit, he also It makes it difficult because we don’t have to 10 minutes each. Under the previous saw signs that the underlying discipli- the disciplinary mechanisms at our finger- order, the first half of the floor time nary mechanisms that form the frame- tips that would otherwise be the case if we will be under the control of the Repub- work for Federal budgets over the last had a budget. lican leader or his designee, and the 15 years have eroded. The Appropriations Committee, final half of the time shall be under the I would say one of the most obvious under his leadership and that of Sen- control of the Democrat leader or his ‘‘disciplinary mechanisms,’’ to borrow ator STEVENS as ranking member, is designee. his words, is the adoption of a congres- fully aware their appropriations bills, The ACTING PRESIDENT pro tem- sional budget. I have spoken in the one by one, when added together are pore. The Senator from New Mexico. past here on the floor about the failure the sum total of the budget for the f to adopt a budget resolution this year. year starting October 1. They have rec- Clearly, this is the one thing we can do ommended on one of the bills that THE STATE OF THE ECONOMY in the Congress to send a message to there be a sense of the Senate that Mr. DOMENICI. The Republican lead- the American public and to the mar- they will engage in attempting, with er has designated the Senator from kets that we understand the impor- the Senate, to bind themselves to the New Mexico to control the time. I yield tance of having a budget in these dif- numbers in the appropriations bills, myself 10 minutes. ficult economic times. So far we have saying we will be bound by those even Mr. President, fellow Senators, a failed as elected officials to do the though we do not have a budget resolu- week ago the Federal Reserve Chair- most essential of our responsibilities— tion that would normally give the man, Alan Greenspan, testified before adopt a budget. numbers, prescribe them to the com- the Senate Banking Committee. It is Clearly, the other side of the aisle, mittee. important to take note of what he said the Democrats and their leadership, I gather that means the Budget Com- at that hearing and where he thinks bear that responsibility, the responsi- mittee chairman and ranking mem- our economy is headed. Despite the ob- bility to have continued on with the ber—with that language, that sense of vious bear market which prevailed budget process and to have produced a the Senate, saying that we will be until yesterday, when we had a rather budget resolution. We know that even bound by the sum total of the alloca- significant bull market for the day, our on this most serious of debates, with tions to the subcommittees—I gather economy’s fundamentals are strong. reference to prescription drugs for our they clearly are concerned that if we Despite this bear market, our econ- seniors, the absence of a budget resolu- do not have something, the bills even- omy is not headed for another reces- tion has found its way here to the tually will be subject to whatever the sion in the near future. Productivity floor. Senate would vote in and have no over- growth is rapid. Inflation is low. Mort- Because there is not a budget resolu- lying power that says you can’t go over gage rates are also low, as everyone tion that impacts for the remainder of this or you suffer some kind of penalty. knows. That has kept the housing mar- this year, we then look to the previous Senator BYRD and Dr. Greenspan ket very strong. year for the impacts, plus or minus im- have spoken. I tried on two or three oc- Families have been taking advantage pacts, on adopting a prescription drug casions on the floor to remind us, as of these low-income rates by buying bill. Lo and behold, we find the pre- Senator JUDD GREGG has, and some

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7325 Democrats have taken to the floor con- were a couple of years ago when we had ized and had to have 60 votes rather cerned about the fact that we don’t budgets, reserve funds, and all the than 51. have any discipline. It makes it dif- kinds of things we have grown to use That is wherein the drug bill lies in ficult because we don’t have the dis- around here. terms of the process. This is something ciplinary mechanisms at our fingertips. It is obvious we just have projections we can do. That is what the distinguished chair- and estimates of costs based on the I have introduced legislation to ex- man of the Appropriations Committee Congressional Budget Office and their tend the budget enforcement provi- said a few days ago. most current projections. But because sions, including the spending caps, es- A couple of weeks ago, absent a real we don’t have a budget resolution that tablishing firewalls that go between budget resolution, we came close to is based on current estimates, the pro- the nondefense and defense, pay-go adopting at least a poor version of a cedural points of order that lie against rules impacting the mandatory spend- budget by trying to set spending caps all of these amendments result from ing programs and tax revenues, limita- for the appropriations process, enforce- the fact that last year’s budget resolu- tions on the advanced appropriations, able only here in the Senate next year, tion is the only one we have, and it was and other provisions that I believe are and extending with Senate enforce- estimated using an entirely different the minimum needed to maintain some ment tools some expiring Budget En- set of projections. semblance of statutory and congres- forcement Act provisions. What this says is we are using en- sional budget authority. But let it be clear, this is not a budg- forcement tools that were in last year’s Let it be clear that this legislation is et resolution. budget based upon where we are going not a budget resolution, it is strictly The PRESIDING OFFICER. The Sen- to be with reference to expenditures, enforcement provisions. But it is the ator has used 10 minutes. tax intake, and, thus, deficits, or being heart and soul of budget enforcement mechanisms that would be here if we Mr. DOMENICI. I ask unanimous in the black and with a surplus. consent for 5 additional minutes. Regardless of whose amendment one were adopting a budget under the exist- The PRESIDING OFFICER. Without supports, not having a current budget ing budget law. It is essential that we do at least this much, and we ought to objection, the Senator may continue. resolution penalizes all proposals. This give serious consideration to doing it Mr. DOMENICI. Let it be clear this is not the way to consider one of the was not a Senate budget resolution on before this year ends. most important and probably most ex- I once again borrow the language of which we voted. It was an attempt to pensive legislative proposals to come Dr. Greenspan when he calls all these address just a small portion of the Fed- before the Congress in years; that is, things disciplinary mechanisms. We eral spending that indeed will take prescription drug provisions that we need to reassert them—something place between now and the end of next are debating. Chairman Greenspan and Chairman year. Let it be clear that this is not a We therefore see the failure to adopt BYRD reminded us that we need. This is budget resolution because it only ap- a budget resolution, we see it impact- important to the way we conduct busi- plied to appropriations, and budget res- ing on the way the Senate can conduct ness and the signal it sends to the mar- olutions go well beyond the appropria- business here on the floor. We are tied kets and the economy. tions bills which constitute about one- up in trying to consider a prescription Also, my colleagues joined in other third of the spending of our Nation. drug bill while bypassing the Senate legislation that I hope we can find Two-thirds are subject to other ap- Finance Committee. If the majority some way to have adopted before the proaches to spending, mandatory ap- leader chooses to proceed without wait- new fiscal year begins on October 1. I proaches—they are automatic, like So- ing for, or without expecting and rely- have heretofore introduced a summary cial Security, like Medicare. And the ing upon a bill that the Finance Com- of this proposal. After getting closer sum total of all those—Federal pen- mittee and committee debate produces and talking to more people, I put some sions, military pensions and on and and sends to the Senate, that is his more flesh on it. I don’t want to for- on—the sum total of all of those man- prerogative. mally introduce it, but I want to send datory, obligatory ones is two-thirds of I believe in these particular times, attendant to this speech, following it, a the spending. A real budget would ad- with all of the facts I have just de- proposal that will be called a bill. It in- dress the other two-thirds, that which scribed, that it is not the best way to deed would be the proposal I have sum- we call generally entitlement spending. do it. But there are even other reasons marized that, as a minimal, we would I think we are now beginning to see beyond budgetary that cry out for it need. I hope Senators will pay atten- firsthand what it means not to have a not being the best way to conduct busi- tion to it. budget resolution as we are here on the ness—be it an energy bill, which we did Perhaps by the end of the day today floor debating adding new spending to directly on the floor and didn’t have we can find out whether there is a gen- one of the largest Federal entitlement language from a committee as a formal uine interest. If there is not, then obvi- programs, the Medicare Program. The bill with the appropriate documents at- ously I believe I have done my best to process does matter. An updated budg- tendant thereto, to many others that call attention to it and to provide how et resolution would have updated our we are taking up out of the majority it might be done. I submit that there is spending estimates and we would now leader’s office and putting up here on indeed a possibility that if this were to be debating these prescription drug the floor without the committee au- pass and the Senate were to adopt it, amendments to the current Medicare thentication which comes from the and since it applies only to us—the Program in a more honest and trans- committee debate, which is a very her- House offers it through its Rules Com- parent manner. alded and important part of the Senate mittee—if we were to adopt it, I have I think it is important that we listen process. every reason to believe it would have a up and we pay attention. This is a very Chairman Greenspan also spoke spe- positive impact on those who are won- serious situation. If in fact spending cifically about the other rules that dering what is our fiscal policy after were to get out of hand, we hear Alan were incorporated into the Budget Act this October and into a year with new Greenspan warning us that one of the and, thus, are in the budget. They so-called disciplinary functions avail- able. most significant qualities, characteris- came into being when our country had I yield the floor. tics of this American economy—one of another bad time. We went out and met I suggest the absence of a quorum. the most serious ones would be for at Andrews Air Force Base. We came The ACTING PRESIDENT pro tem- those who understand budgets to con- back with a series of proposals, one of pore. The clerk will call the roll. clude that the fiscal policy is out of which was called a pay-go, and spend- The legislative clerk proceeded to hand, that we don’t know where it is ing caps. These are devices that helped call the roll. going, and we don’t know how much we at least provide some tools for statu- Mrs. CLINTON. Madam President, I are going to spend. I don’t think that is tory and congressional fiscal policy de- ask unanimous consent the order for the case. liberations. These were enforced by the quorum call be rescinded. But some who would look at what we points of order. The point of order lied. The PRESIDING OFFICER (Ms. STA- have done and not done might conclude These provisions were operative—or BENOW). Without objection, it is so or- that we are not as committed as we any one of them. Then we were penal- dered.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7326 CONGRESSIONAL RECORD — SENATE July 25, 2002 12TH ANNIVERSARY OF ENACT- This task force has been instru- work of reauthorizing this important MENT OF THE AMERICANS WITH mental in helping us understand the legislation. When it was passed in the DISABILITIES ACT challenges that still confront Ameri- Congress in 1975, we made a promise Mrs. CLINTON. Madam President, I cans with disabilities and in under- that the Federal Government would rise today to recognize the 12-year an- standing, despite the extraordinary pay 40 percent of the cost of educating niversary of an incredibly important progress we have made since the ADA children with disabilities. I thought step in America’s continuing effort to was passed, we still have a very long that was a fair bargain because, clear- expand the circle of opportunity and to way to go. ly, educating a child who is blind or realize a more perfect union. According to a recent survey of deaf or in a wheelchair and needs more Twelve years ago today, the Ameri- Americans with disabilities conducted help, therefore, requires more re- cans with Disabilities Act became law. in 2000, 56 percent of 18- to 64-year-olds sources which is going to raise the When we think about that remarkable with disabilities who were able to go to costs for local communities. But it was day in history, we remember the re- work were employed in 2000. That is up another example of America doing the lentless efforts of some of our col- from 47 percent in 1994. right thing. leagues who took such leadership in That is progress, but we also have to It has made such a difference. Any- this important expansion of civil rights recognize that 44 percent of Americans one who goes into schools today and protections. Senators HARKIN and KEN- with disabilities are still not working. sees bright young children raising their NEDY used their positions of power to Justin himself eloquently expressed hand from their wheelchair or walking fight for those with little or no power. the status of Americans with disabil- down the hallway on braces with their Their work opened the doors to people ities on the 7th anniversary of the ADA friends or having someone help with with disabilities in much the same way when he said: the reading because they are blind as the Civil Rights Act had done three The job of democracy is far from fin- knows what a difference it has made, decades earlier for other Americans. ished. Millions and millions of people not only for the children with disabil- We also remember the people who with disabilities, in America and other ities but for all children and for the fought behind the scenes, those who te- lands, are still outcast from the good kind of society we are. naciously and selflessly advocated for life. Unfortunately, the Federal Govern- equal access because they knew that In Justin’s honor, we simply have to ment has never paid its fair share. people with disabilities were being ex- do better. That is something that has to change. cluded from schools, from jobs, from One of the ways I will keep honoring That is something about which I often the most fundamental participation in Justin Dart’s legacy is to continue the talked to my friend Justin Dart. He our American way of life. fight for equal access and full funding would have wanted us to keep going One such person—someone whom I under the extraordinarily important with the fight to ensure that all Ameri- was very proud to call my friend—was legislation passed 25 years ago to pro- truly the heart and soul of the disabil- cans are treated with dignity. vide education for children with dis- He had a very astute way of looking ities civil rights movement. That per- abilities. The Individuals with Disabil- son was Justin Dart. We lost a great at life and actions in Washington. He ities in Education Act, known as IDEA, American and a great leader with once said: has literally transformed the lives of Justin’s death on June 22. But because The legitimate purpose of society and its countless American children. of his lifelong commitment to ensuring government is not to govern people and to I have a particular connection with the rights and dignity of every single promote the good life for them, but to em- that law because, as a young lawyer power them to govern themselves and to pro- American, we will never forget him. He just out of law school in 1973, I went to vide the good life for themselves and their was not only a great and tireless lead- fellow humans. er, he was an extraordinary human work for the Children’s Defense Fund. As usual, Justin Dart summed it up. being. Anyone who ever saw him, with We could not understand why, if you The Americans with Disabilities Act his cowboy hat and his infectious grin, looked at census tracks and saw how would never forget him. many children were living in a par- provided a firm foundation on which to Justin Dart’s passionate advocacy ticular area between the ages of 5 and build that empowerment, to ensure led many to refer to him as the Martin 18 and compared that with the number that every boy and girl, no matter Luther King of the disabilities move- of children enrolled in school, there what their physical or mental status ment. So on Martin Luther King’s was a discrepancy. There were children might be, is viewed with the same re- birthday, January 15, 1998, my husband, we knew living in an area but they spect and caring that every other President Bill Clinton, awarded Justin were not in school. Where were they? human being deserves as well. the Medal of Freedom, our Nation’s We could not understand it by just Justin Dart lived it. He advocated. highest civilian award. We also invited looking at the statistics so we literally He harassed. He reminded. He prodded Justin back to the White House when went door to door to door. I was knock- and promoted all of us to do better. He we honored the 10th anniversary of the ing on doors in New Bedford, MA, ask- himself was confined to a wheelchair. Americans with Disabilities Act. And ing people did they have a child who He lived with a great deal of pain, but throughout my tenure as First Lady, was not currently enrolled in school. I that smile never left his face. With his and since becoming a Senator from found blind children, deaf children, beloved wife and family, he showed up New York, I often sought his guidance children in wheelchairs, children who whenever the call was sounded for his on health and disabilities issues. were kept out of school because there championship on behalf of people who Justin Dart’s leadership changed the were no accommodations for their edu- he never forgot and for whom he never way we, as a society, think about peo- cation. stopped fighting. ple with disabilities. We all know— I remember going into a small apart- We will miss Justin Dart, but it is up those of us who have lived long ment that opened out on to a tiny ter- to us to continue his legacy and to en- enough—that at one time we presumed race where the family had constructed sure that the work to which he gave his a disability meant a lifetime of depend- a grape arbor, and it was a beautiful life continues in his honor and on be- ence. Now we know better. We know apartment with a small garden. A little half of the countless young Americans that we have countless Americans, of girl was sitting in a wheelchair out on who might never know his name but all ages, with disabilities who not only this little terrace on a summer after- who are given a chance to chart their want to but can lead independent lives noon. She had never been to school. own destinies because he came before. to contribute to the quality of our lives We then, working with many other I thank my friend Justin Dart and and our Nation’s prosperity. That is advocates for children and people with wish him and his wonderful family why, in 1998, the Clinton-Gore adminis- disabilities, wrote a report and engaged Godspeed. tration formed the Presidential Task in the debate which led to the passage I suggest the absence of a quorum. Force on Employment of Adults with of the Individuals with Disabilities in The PRESIDING OFFICER. The Disabilities, and then in the year 2000 Education Act in 1975. clerk will call the roll. expanded its mission to include young This year the HELP Committee, on The assistant legislative clerk pro- people. which I serve, is beginning the hard ceeded to call the roll.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7327 Ms. STABENOW. Madam President, I commitment made but a great Amer- plans and can no longer afford medications. ask unanimous consent that the order ican success story. It has worked, and I Many of them have more than $1,000 a month for the quorum call be rescinded. think often now of those people such as in prescription drug costs. The PRESIDING OFFICER (Mrs. Enron employees or WorldCom employ- The vets are lucky. We can provide the needed service. Their spouses and neighbors CLINTON). Without objection, it is so ees who have lost their life savings who are not so lucky. ordered. have said to me: Thank God for Social I also have such a neighbor. Al is 72, self- Ms. STABENOW. I thank the Senator Security and Medicare or I would have employed all his life with hypertension. from New York for stepping into the nothing. If Medicare was not there, When he runs out of his meds due to lack of Chair for a moment this morning so I they would have no health care. money, his blood pressure goes so high he might share a few comments. I also These are great American success has to go to the emergency room and be ad- congratulate her on a very eloquent stories. At this time in 2002, at this mo- mitted to prevent a stroke. I provide assist- statement about an extremely impor- ment in July, we have an opportunity ance through pharmaceutical programs, but tant gentleman, Justin Dart, whom I this is not guaranteed each month. We either to make history so that when others pay the $125 per month for his medications, knew not as well as the Senator from read the history books and look back, or Medicare pays $5,000-plus each time he is New York but for whom I had tremen- they will find we took the next step to admitted. It is pretty simple math to me. It dous admiration. I align myself with modernize a system that provided is pretty simple math. the comments concerning special edu- health care for older Americans and We can either help people with their cation and what needs to be done. I the disabled for over 35 years. blood pressure medicine or medicine thank the Senator for her advocacy I want to read a couple of stories for their heart or medicine for sugar this morning on that very important from Michigan. I have set up a pre- and all the other issues that need to be topic. scription drug people’s lobby in Michi- dealt with or we can pick up the pieces f gan and asked people to share their with hospitalization or worse that ulti- stories and to get involved because we PRESCRIPTION DRUGS mately costs more to the system. know there is such a large lobby on the I very much appreciate Christopher Ms. STABENOW. Madam President, I other side. Hermann sharing this story. I will not rise this morning to comment on an- As we all know and have said so share more this morning. I thank those other very important topic that is be- many times, there are six drug com- who have been sharing their stories fore us and to urge my colleagues to pany lobbyists for every one Member of with me. come together to get something done. the Senate. Their voice is heard every I will close with one other story that We have been talking a lot about Medi- day. It is also heard on TV. It is heard was shared with me that has stuck care and the fact it is outdated, that it on the radio. There is a full-page ad in with me since I read it a few weeks needs to be modernized to cover pre- Congress Daily from the drug company ago, and that was a little girl from Yp- scription drugs. lobby that was brought to my atten- silanti, MI. I have talked about this be- We had a very significant vote 2 days tion urging us to oppose the amend- fore, but I think this is important to ago. It was historic. It was the first ment we passed to open the border to remind us of what this legislation is time the Senate, since 1965, has come Canada. about. She wrote a letter to me telling together to vote to modernize Medi- Heaven forbid that we add more com- me that her grandma stopped taking care. A majority of us, 52 Members, petition. Heaven forbid that American her medicine at Christmas in order to voted yes. I commend my Republican citizens be able to buy American-made buy Christmas presents for the colleague—which was the one Repub- drugs that they helped create through grandkids. She later had health prob- lican vote joining us—the Senator from taxpayer dollars, but they are sold in lems and passed away. Illinois, for joining us in that effort. Canada for half the price they are sold There is something wrong with the A statement was made by a majority in the United States. Heaven forbid of the Senate, and I believe it reflects United States of America when grand- that American consumers would have mas are not taking lifesaving medicine the will of the majority of Americans. the chance to do that. So they have an We have a health care system for older to buy Christmas presents for their ad, and I am sure there are many more. grandchildren. Ultimately, that is Americans, a promise of comprehensive I am not sure how much it costs. I pre- health care for older Americans and what this debate is about. It is about fer the money that is being spent on taking a great American success story, the disabled that was put into place in this ad and other ads on television and 1965. It has worked. The only problem called Medicare, and simply updating the $10 million being spent on ads sup- it for the times. Let’s say no to the is that the health care system has porting the drug company version changed. We all know that. We have all drug companies and yes to all the would be put into a Medicare benefit or grandmas and the grandpas across the talked about it many times. lowering prices. That would be cer- What I find disturbing at this mo- country and to everyone who is count- tainly much more constructive in the ing on us to do the right thing. ment, in light of the fact that we need long run. 60 votes—we need 8 more people; we I thank the Chair, and I yield the The reality is that something has to floor. need 8 of our Republican colleagues be done because the system is just out from the other side of the aisle to join of control, and it will not change un- f us to actually make this happen—in less we act because there is too much GREATER ACCESS TO AFFORD- light of the success of Medicare, too money at stake. Just as we have de- ABLE PHARMACEUTICALS ACT many times I am hearing words such as bated corporate responsibility in other OF 2001 ‘‘big Government program’’ from my settings—and I applaud colleagues who The PRESIDING OFFICER. Under Republican colleagues in the House. have come together to agree on a final the previous order, the Senate will re- They refer to Medicare as a ‘‘big Gov- plan related to legislation for cor- sume consideration of S. 812, which the ernment program,’’ and there are times porate responsibility and account- clerk will report. I have heard that in this debate from ability—this, too, is an issue of cor- The legislative clerk read as follows: the other side of the aisle. porate responsibility, corporate ethics, A bill (S. 812) to amend the Federal Food, I am here to say I think Medicare is as it relates to pricing lifesaving medi- a big American success story. It is a Drug, and Cosmetic Act to provide greater cine. And how far is too far? access to affordable pharmaceuticals. big American success story, just as So- Let me share stories that have come Pending: cial Security is a big American success to me from various individuals in story and one that we should celebrate. Michigan. This is one from Christopher Reid (for Dorgan) amendment No. 4299, to permit commercial importation of prescrip- I worry, as I hear comments from our Hermann in Dearborn Heights, MI. He President about moving in the direc- tion drugs from Canada. writes: Rockefeller amendment No. 4316 (to tion of wanting to privatize Social Se- I am a nurse practitioner providing pri- amendment No. 4299), to provide temporary curity, wanting to move Medicare to mary care to veterans. I am receiving many State fiscal relief. the private sector and privatize it, that new patients seeking prescription assistance Gramm point of order that the emergency we are moving away from not only a after they have been dropped by traditional designation in section C of Rockefeller

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7328 CONGRESSIONAL RECORD — SENATE July 25, 2002 amendment No. 4316 (to amendment No. day in the history of the world, that we erally burned a great big hole in our 4299), listed above, violates section 205 of H. included this in the stimulus package. pocket. We literally could not spend Con. Res. 290, 2001 Congressional Budget Res- We did that prior to last Christmas, the money fast enough. olution. Now, interestingly enough, we have a Reid motion to waive section 205 of H. Con. which was a long time ago. We did it Res. 290, 2001 Congressional Budget Resolu- and we decided it was so important to deficit. The last projection by the Con- tion, with respect to the emergency designa- do, even at that time, it being a worse gressional Budget Office is that we are tion in section C of Rockefeller amendment situation now, that we would treat it going to spend, this year, $165 billion No. 4316 (to amendment No. 4299), listed in an emergency fashion and not re- more than we take in. That deficit above. quire it to be offset. Some people say seems to grow every time there is a The PRESIDING OFFICER. Under you need to offset that. When you get new projection. Yet our behavior is to- the previous order, there will be 1 hour into economic times like we have tally unchanged. In fact, I can say that of debate on the motion to waive the now—much worse than they were in almost 25 years of service in the Budget Act to be equally divided and then—the underpinnings are weaker in House and in the Senate, I have never controlled by the Senator from West general, and now we really do have to seen the urge to spend money more un- Virginia, Mr. ROCKEFELLER, and the act. checked in Congress than it is today. Senator from Texas, Mr. GRAMM. So what I am going to do is not use To me, it is a very frightening prospect Who yields time? up all of our time, but wait for some as to what this is going to mean when The Senator from West Virginia is colleagues to come down to speak on all these bills come due. recognized. this amendment and why it is impor- Let me try to respond to the proposal Mr. ROCKEFELLER. Madam Presi- tant that we waive the Budget Act and before us because in so many ways, it dent, this is an extremely important that we do the right thing by States is extraordinary. The logic of it is pret- vote. It is very important because in and Medicare. This is an extremely im- ty straightforward. The States are in a the Congress we worry not only about portant vote; it is a test vote about position that, because of the state of the Nation as a whole, but as a nation whether the Senate is really willing to the economy, many States are begin- of its individual parts, that is made up do anything for the States and for ning to have deficits that used to have of 50 different States, all of whom are health care. So far, we have failed on surpluses. In fact, it is projected now getting clobbered by something called all fronts. Now we have a chance to re- that unless something happens very a loss of Medicaid money. verse ourselves on a small, but impor- positive and very dramatic in the next We have a chance with the amend- tant, aspect of it. few months, that as many as 40 States ment before us to adjust that situa- We have, as I say, so many cospon- will run deficits next year, or at least tion. We felt so strongly about the sit- sors that I will not even take the time will face the prospects of deficits be- uation and the loss of Medicaid money to read them. But it is very bipartisan, cause many States, like my own, have for our most vulnerable citizens, and with 35 cosponsors, including 8 Repub- to balance their budget. They will have also the damage it does in the aggre- licans. We should, in fact, prevail on to come into session in January, and gate to our hospitals, nursing homes, this and get the 60 votes that we want they will have to make hard choices. and every part of our health infrastruc- because it is good. This is an emer- We don’t make hard choices in Con- ture. Whether you are in an urban or gency, I say to the Presiding Officer. gress, but they will have to make hard rural area—and the Presiding Officer’s This is important now even more so be- choices in the legislature. When you State includes both urban and rural— cause Medicaid bears all of the brunt of add up the cumulative projected defi- you are faced with hospitals and other the rising cost of prescription drugs be- cits for all 40 States that are looking facilities that depend overwhelmingly cause it is only Medicaid and the Vet- at potentially being in the red, that ac- on Medicaid. erans’ Administration that pays for cumulated aggregate deficit projection The States now have an enormous prescription drugs. This is not Medi- is about $40 billion. shortfall in their budgets. In fact, there care, this is Medicaid, and it is suf- Now, the proposal before us extraor- are deficits of $40 billion to $50 billion. fering terribly. This is an emergency. dinarily says let’s declare an emer- No State, with the exception of We deemed it such after 9/11. The situa- gency so that we can spend another $9 Vermont, can go into deficit financing tion is worse now. We have a chance to billion that we don’t have, every penny like we do in the Federal Government. do something about it. of which will come out of the Social They have to balance their budgets. So I yield the floor and reserve the re- Security trust fund; but let’s go ahead what happens if they get to a situation mainder of my time. and borrow that money now. Let’s take where they don’t have money? I was a The PRESIDING OFFICER (Ms. STA- it out of the Social Security trust fund Governor for 8 years, and I was in that BENOW). The Senator from Texas is rec- and spend it so that States will not be situation for a full 5 years, where we ognized. required to make tough choices. The actually had to lower moneys because Mr. GRAMM. Madam President, one only problem is, our projected deficit is the revenue was less than the previous of the reasons I love this job is that four times as great as the aggregate year. We had to lay off people and the you never reach a situation where you sum of all the deficits of all the States other things Governors have to do. are able to say I have heard it all be- in the Union combined. We are in a position to help now. We fore. In much of life, as you live longer In fact, it would have made more have done nothing on health care, basi- and longer, you get to the point where sense—I would not have supported it cally, except the children’s health in- there is nothing new under the sun, but it would have made more sense had surance program, which affects 2 mil- where any new event had so many our dear colleagues proposed that we lion children, but it needs to affect precedents for it that you understand reduce Medicaid reimbursement be- many more. We have done nothing it and you know it and you expect it. cause the States have a better finan- about universal health care, prescrip- The wonderful thing about this job is cial situation than we do and, there- tion drugs, or this Medicaid problem, that there is always a new proposal, al- fore, they are in a better position to and about virtually all of the areas of ways a new approach, always a new deal with this problem. health care that we talk about all the way of doing things that you would I would not have supported that pro- time and simply do not perform on. have never, ever thought of, and that posal because I do not think we want So this is a real test for the 100 peo- you would have never believed that to beggar our neighbor in terms of im- ple who will come here to vote on anyone else would have thought of. posing our problems on the States, but whether they want to see their States I have spent 18 years in the Senate at least it could have been argued, with drown in debt and have to cut Medicaid trying to deal with deficit spending. It a deficit projected to be four times as and hurt not only children but families has been a long, sometimes fruitful, big as all the State deficits combined, and hospitals and nursing homes and sometimes not so fruitful, battle. I that we cannot be as generous as we home health—all the aspects of where would have to say in the last year and wanted to be. That argument would Medicaid makes a difference. a half, it has been a very unfruitful make sense at Dicky Flatt’s Print We felt so strongly about this after battle from my point of view because Shop in Mexia, TX. People would un- September 11, which was an enormous we started out with a surplus which lit- derstand that argument in Oklahoma.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7329 They might not like it. They might op- nent so we do not penalize people for ment might stand, but what we are pose it, but they would understand it. the simple act of falling in love and really looking at is a partnership that They would say it made sense, but I do getting married, both of them good was created between the Federal Gov- not believe people at Hesser Drug Cof- things it seems to me, we are told that ernment and the States and it is called fee Bar in Ennis, TX, or people any- we would like to do that but we do not the Medicaid Program, a joint partner- where in any State in the Union, would have enough money because we are ship. The Federal Government under- find logic in the Federal Government now running a deficit. funded it because it said we will have a borrowing another $9 billion we do not Why is it we never, ever have enough match and our match will vary based have, taking the money out of the So- money to let people keep more of what on our particular situation as well as cial Security trust fund because every they earn but we always have enough the situation of the States. penny of this surplus is Social Security money to spend? Why is there this I remember as Governor of Nebraska surplus. I do not think they would un- huge difference? I would assert basi- when the Federal budget was being bal- derstand us declaring an emergency to cally because deep down many Mem- anced and the Federal match was re- spend this $9 billion to give it to bers of the Senate believe they can duced. At the State level, my par- States, that if we added up their total spend money better than families can ticular portion had to increase. So the deficit is not one-fourth of the deficit spend money. Federal Government balanced its budg- that we are running right now. I have raised a point of order against et on the basis of my budget and at the So we basically are down to a ques- this amendment, and I want to be sure expense at times of my budget. tion that we have to ask ourselves: Are my colleagues understand what the Now we are looking at a situation in we willing to declare an emergency to point of order is about. This amend- reverse. We have the States being chal- run a new deficit of $9 billion—spend $9 ment will force the Government to lenged by growing red ink, and the billion today, and in doing so, take $9 take $9 billion out of the Social Secu- Senator’s comment about a budget of billion out of the Social Security trust rity trust fund and give it to the States 40 States with deficits of somewhere fund? Are we willing to do that because at a time when all the States combined around $40 billion, in a news article in States are running a cumulative deficit have a deficit that is not one-quarter the Chicago Tribune this morning, it that is one-fourth as big as the deficit the deficit of the U.S. Government. was pointed out that the gap in those we are running? That basically is the This is a very bad decision. I can see States may be about $58 billion rather question that is before us. It is easy for how it would be popular in the legisla- than $40 billion. one to say this is a compassionate deci- The point is, this is a partnership, a tures, but it cannot be good public pol- sion because they do not want their federally mandated program partially icy to do this. So I urge my colleagues State to have to make a tough deci- funded under the idea that the State to sustain this budget point of order. sion, but compassion is what one does would have a responsibility and the If our colleagues want to come back with one’s own money, not what one Federal Government would have a re- and say, look, this is important, we does with somebody else’s money. This sponsibility. This is not about giving want to do this, and we are willing to money is coming out of the Social Se- away money, this is about stopping the take $9 billion away from something curity trust fund. This money is com- reduction in the Federal match for a else that is not as important, then de- ing from, ultimately, the taxpayer who period of 18 months and increasing it pending on what they take it away is going to have to pay it back, plus in- for a period of 18 months. It is not giv- terest. from I might be willing to support it. ing away money, it is assisting our If the proponents of this amendment To simply say we want to give this partners in the process they are going were anteing up out of their own pock- money away, even though we do not through as they make difficult choices. ets, we could say they are compas- have it, I do not believe that is a re- It has been suggested that this will sionate about their States; they are sponsible position. As a result, I have keep them from making difficult worried about what will happen in raised the budget point of order. choices. They have already cut edu- States that have deficits. But it is not I hope my colleagues who constantly cation funding. They have already cut compassion when it is somebody else’s talk about protecting the Social Secu- funding in many other programs. The money. The idea that we would run a $9 rity trust fund, I hope my colleagues cutting has only begun. We are hopeful billion deficit today, that we would who constantly talk about the fiscal ir- that the cutting in the area of Med- take $9 billion out of Social Security responsibility of letting working peo- icaid and/or in social services will not today to give to States that are run- ple keep more of what they earn cause the gains that have been made in ning a deficit, that when added up through tax cuts, will apply that stand- having people go from welfare reform among all the States in the Union is ard today when we are gratuitously to work reverse themselves and start a not one-fourth as big as the deficit we taking $9 billion out of the Social Se- spiral downward where the gains made are running, it makes absolutely no curity trust fund, borrowing it know- can be lost. sense. ing we are going to have to pay it back All we are saying to the Federal Gov- I think, at least where I am from, plus interest. This is irresponsible pol- ernment is, do not reduce our portion and maybe where I am from is different icy. It should be stopped, and I urge my right now and require, then, the States than where other people are from, but colleagues to sustain this budget point to make that choice about increasing in my State that would make abso- of order. theirs, which they cannot do; or cut- lutely no sense. I reserve the remainder of our time. ting eligibility for Medicaid and caus- Finally, every time we talk about The PRESIDING OFFICER. The Sen- ing, most likely, a downward spiral as letting people keep more of what they ator from West Virginia. they face the Medicaid uncertainties. earn, every time we have a debate Mr. ROCKEFELLER. I yield 5 min- In addition to recognizing this is a about letting working families keep utes to the distinguished Senator from responsibility we created—I was not more of what they earn, many of our Nebraska. here, but collectively the Federal Gov- colleagues stand up and say we cannot The PRESIDING OFFICER. The Sen- ernment created this under this Fed- afford it. We would like not to force ator from Nebraska. eral program—I think we have a re- families to sell their business or sell Mr. NELSON of Nebraska. I thank sponsibility. We are facing that respon- their farm when pappa dies so the Gov- my colleague from West Virginia. He sibility. Yes, we are having some dif- ernment can get 55 cents out of every has done such an able job in this chal- ficult times, but we need to share the dollar they have accumulated in their lenge of finding a way to make the difficult times together rather than whole lifetime, even though they have partnership between the States and the stand on the sideline and say it is up to paid taxes on every penny of it. Our Federal Government on the Medicaid the States to make the difficult colleagues tell us we do not like doing Program work in difficult times. choices and see them make choices that but we do not have any choice be- I respect a great deal my friend and that will have adverse, and maybe in cause we do not have the money; we colleague from Texas, who makes a some cases draconian, results at the are running a deficit now. very important point about spending in State level. When we talk about making the re- the Senate. If we were only talking I understand the importance of try- peal of the marriage penalty perma- about spending, then I think that argu- ing to develop offsets. How can anyone

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7330 CONGRESSIONAL RECORD — SENATE July 25, 2002 ever be against offsets? Let me state a short, the budget crisis was clearly a lion to upgrade port surveillance and few things that have flown in the face sudden and unexpected development for vessel tracking capability in the ports of asking for offsets—except where our partners as States. in Port Arthur, TX, Houston, and New maybe you are not interested in seeing The second relief our amendment York City, NY, and $12.6 million to the the program move forward. We passed provides is needed to address an urgent Pantex Plant in Texas for increased yesterday the supplemental at a $28.9 situation, another criterion. The latest safeguards and security needs. billion total cost, $2 billion offset. A figures show that 46 States are facing The point is, folks in Dicky Flatt’s or few of the things included $14.4 billion an aggregate budget shortfall exceed- Elm Creek, NB, or other small commu- for defense—no one argues with that— ing $50 billion. Many have already cut nities and/or locations around the or $6.7 billion for homeland security. or are considering cutting their Med- country, understand why some spend- How can anyone argue with that? Or icaid and social service programs. ing is necessary. They understand also $5.5 billion for New York, how can any- Finally, the relief provided by our that when you have a Federal program one argue with that? No request for amendment is not permanent, it is that is put together, as the Medicaid specific offset for New York, no specific short-term relief, narrowly tailored to Program has been, that both parties offset for homeland security, for de- address a fiscal crisis that the States have some responsibility to make sure fense. Or $1 billion for Pell grants, $417 are experiencing now. it is viable so when times get difficult, million for veterans medical care, and In short, our amendment is a text- one partner doesn’t say to the other $400 million for improvements to State book example of the definition of partner: Good luck, I hope you are able and local election procedures, we all ‘‘emergency’’ spending. It addresses a to make it. know how important those are. Or $205 sudden, unforeseen, urgent crisis, and Because now we have an opportunity million for Amtrak, we also know how provides temporary but much needed to say this is our program together, at important that is. But $2 billion worth relief. the Federal level and at the State of offset to $28.9 billion worth of budg- Finally, we should not forget as we level; we have an interest in seeing that the people who are the most vul- et. debate this issue what this is really all I am not saying these are not impor- about. It is about protecting health nerable in our society are appro- tant any more than anyone else is. I care and other essential social services priately served; that the nursing homes am suggesting that while they are im- for the neediest and most vulnerable do not cease to be able to provide serv- portant, so is this. citizens in this country. Medicaid pro- ices or that childcare provisions are I yield the floor. vides health insurance to approxi- not eliminated, which are transitional The PRESIDING OFFICER. The Sen- mately 40 million low-income Ameri- benefits to get, in many cases, single ator from West Virginia. cans, including 21 million children and parents off welfare and into the work- Mr. ROCKEFELLER. Madam Presi- young adults, 11 million elderly and force. So as we think about offsets, I think dent, I happily yield 5 minutes to the disabled individuals, and 8.6 million it is important that we recognize that distinguished Senator from Maine. adults in families, most of whom are one person’s offset is another person’s Ms. COLLINS. Madam President, single women. Without this critical idea of eliminating or destroying or in let’s put the budget point of order of safety net, millions of low-income men some way obstructing getting some- the Senator from Texas against our fis- and women and their families would be cal relief amendment into some con- thing accomplished. left with no health insurance. What we have to do is make sure off- text. The Senator’s point of order, in That is the bottom line in this de- sets are, in fact, included wherever we essence, claims that the fiscal relief bate. We need to help the States so can possibly include them. But one of provided by our bipartisan amendment they can continue to provide essential the reasons emergency spending issues is somehow not emergency spending. health care to the most vulnerable citi- and funding issues have not generally Let’s look at the facts. Let’s look at zens in our society. We are not taking required offsets is because it is very the situation. The Budget Enforcement the States off the hook. They are still difficult to be able to match it at the Act of 1990 established statutory limits going to have to make many tough time. We cannot wait on this and we on discretionary spending and a pay-as- choices in order to balance their budg- cannot fight out every offset people you-go requirement for new direct ets. But we can provide this meaning- would like to talk about. That is why spending and tax legislation. But it ful relief. We must do so now in order emergency disaster relief, in this case also exempted from the caps all discre- to preserve that critical safety net for emergency spending—to go to our tionary spending designated by the the most vulnerable in our society. States for our share of the program for President and the Congress as an emer- The PRESIDING OFFICER. The Sen- a period of time—just simply provides gency requirement. ator from West Virginia. the opportunity to continue something The law does not further define what Mr. ROCKEFELLER. How much time and it has to be done immediately and is an emergency requirement. That is is remaining to this side? the process then, I take it, is there for up to us. One place we can look for The PRESIDING OFFICER. There them. guidance, however, is to the criteria are 14 minutes 20 seconds. We only seem to talk about offsets developed by the Office of Management Mr. ROCKEFELLER. I yield to the when it is convenient, or where we do and Budget for the President to use Senator from Nebraska 4 minutes. talk about it and they are appropriate, when determining whether or not a Mr. NELSON of Nebraska. Madam it is when there is enough time to be spending provision qualifies for emer- President, how much time was yielded? able to put them together and get them gency treatment. The Office of Man- The PRESIDING OFFICER. Four accomplished. agement and Budget determined that minutes was yielded. The economic stimulus plan, when an emergency spending provision is Mr. ROCKEFELLER. We have 14 this was a part of it last year, did not ‘‘sudden, urgent, necessary, unforeseen, minutes left; is that correct? have an offset. There was not a lot of and not permanent.’’ The funds that The PRESIDING OFFICER. Four discussion about offsets at that time. the amendment allocates to the States minutes was yielded to the Senator Unfortunately, this particular provi- is all of those things. They meet the from Nebraska. sion did not get included in the stim- criteria precisely for emergency spend- Mr. NELSON of Nebraska. Thank ulus package that was passed earlier ing. you, Madam President, and I thank my this year, although it should have First, our amendment addresses a colleague from West Virginia. been. If it had been, it would not have sudden and unforeseen problem. That is I have never been to Dicky Flatt’s involved an offset. the unexpected drop in revenues States and I hope my good friend from Texas It seems to me we have the oppor- have experienced. Indeed, 39 States will take me to Dicky Flatt’s one of tunity to move forward as a partner were forced to reduce their already en- these days because it is, obviously, with our States and to be able to assist acted budgets for fiscal year 2002 by re- quite a place. them in very important policy matters ducing essential programs, tapping I imagine the folks in Dicky Flatt’s, and programs that I think will benefit rainy day funds, furloughing employ- though, will be interested in what the people of our country and will ben- ees, and cutting important services. In came from the supplemental—$22.9 mil- efit our economy. That is why this was

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7331 included earlier in the economic stim- House’s human services appropriations sub- passed the Senate Centrists Economic ulus package. There was a recognition committee. ‘‘The most we can do is try to Stimulus bill that I developed along it was part of the economic stimulus. I help existing clients.’’ with Senator BREAUX and others, and hope we will today recognize it, not Among other budget-saving measures, that proposal contained about $4.5 bil- Iowa has raised tuition at public colleges by only as the right thing and fair thing nearly 20 percent, and instituted a hiring lion in emergency Medicaid funding to to do with our partners, the States, but freeze for child protection services. With the the States. Unfortunately, we could also recognize that this has been con- number of workers down because of attrition not get a vote on the proposal in the sidered part of the economic stimulus and retirements, ‘‘caseloads continue to rise Senate. package. and, to be honest, the attitude out there in In January, I voted to support an I ask unanimous consent an article the field is very stressful,’’ said Heaton, a amendment by Senator HARKIN to the by Judith Graham entitled ‘‘States’ Republican from Mt. Pleaasant. ‘‘I can tell compromise economic stimulus bill Budgetary Shortfalls Deepen’’ be print- you staffing at our boys’ school and juvenile that would have increased the FMAP home, as well as our mental health facilities, ed in the RECORD, and I yield the floor. by 3 percent for all States and 1.5 per- is critical because of the cuts we’ve had to cent for States with higher than aver- There being no objection, the article make,’’ he said. ‘‘No matter how small you was ordered to be printed in the want government to be, there are still things age unemployment rates, but the RECORD, as follows: government has to do. And the problem I see amendment was defeated. [From the Chicago Tribune, July 25, 2002] now is we’re getting to the point where we Passage of this Rockefeller-Collins STATES’ BUDGETARY SHORTFALLS DEEPEN can’t afford to do them.’’ amendment would mean the infusion of (By Judith Graham) Ms. SNOWE. Mr. President, a par- about $54 million into my State of Maine—$36 million under the FMAP DENVER.—Concerned state legislators gath- ticular problem facing not only the ered here for their yearly meeting received American people but also the States provisions alone. Maine is currently sobering news Wednesday: State budget defi- themselves—and that certainly in- staring down the barrel of a $180 mil- cits have widened dramatically over the last cludes my home State of Maine—is the lion budget shortfall. Many States face several months, and the worst may be yet to rising cost of health care. similar circumstances and still others come. Budget gaps are projected to reach Today, Medicaid is the fastest grow- face a figure many times that amount. $57.9 billion for the fiscal year that began ing component of State budgets, ac- We do not want, and we certainly do July 1, up from the $35.9 billion deficit re- counting for up to 20 percent of the av- not need, our States to reduce essential corded during the previous 12-month period, erage State budget, as costs increased health care and social services to peo- according to a report by the National Con- ple in need in order to balance their ference of State Legislatures. by 11 percent last year and are ex- While states have plugged these holes by pected to increase by another 13.4 per- budgets. The low-income families and reducing spending and, in some cases, raising cent this year. One of the components seniors of this Nation should be able to taxes, these solutions may not be enough. of this increase has been a cor- rely on the continuation of these pro- With turnoil roiling Wall Street, investors in responding increase in prescription grams on which they have come to de- a state of shock and costs for health-care drug costs as many states have dis- pend. The states should receive the programs such as Medicaid escalating sharp- count prescription drug programs help they need to continue their pro- ly, ‘‘We’ve anticipating deficits are going to through Medicaid. grams offering prescription drugs to grow even larger in the months ahead,’’ said seniors and low-income individuals and Corina Eckl, the group’s fiscal affairs direc- In addition, the economic downturn tor. Consumers are feeling the bite of the has left many families out of a job and families. During these difficult fiscal states’ financial woes in the form of higher without their health insurance, forcing times, our States need more federal as- tuition for public colleges, fewer services for them to turn to Medicaid. This put an sistance in providing health care serv- at-risk kids, less help for elderly people try- enormous strain on the States, which ices through Medicaid, not less. ing to live independently in their homes, were already facing tough budget deci- I want to thank the Senator from larger elementary school class sizes, as well sions. In an effort to address their West Virginia, Mr. ROCKEFELLER, and as higher taxes. my colleague, Ms. COLLINS, for offering States including Illinois are being hit par- budgetary obligations, 22 States have cut Medicaid spending and 16 have cut this amendment and I urge my col- ticularly hard by the stock market’s trou- leagues to support our States and this bles, which have taken a big bite out of per- programs that help low-income people. sonal incomes and shaken consumer con- The situation strained further by the amendment. fidence. On average, more than one-third of fact that the Fiscal Year 02 FMAP allo- The PRESIDING OFFICER. Who state tax revenues comes from personal in- cations did not reflect the economic yields time? The Senator from West come taxes, with another sizable chunk com- downturn and the resulting upswing in Virginia. Mr. ROCKEFELLER. Madam Presi- ing from sales taxes. The falloff has been people needing assistance. In fact, due widespread: 26 states collected less money dent, I ask to retain 5 minutes to close to the formula used to determine the during their just-ended fiscal years than debate on this side. they did the year before, according to the match, 29 States found themselves with The PRESIDING OFFICER. Without conference’s new study. ‘‘For many states, a smaller Federal match than in Fiscal objection, it is so ordered. this is the first time this has ever hap- Year 01. Mr. ROCKEFELLER. I yield 2 min- pened,’’ said Arturo Perez, a budget analyst As a result, many states have scaled utes or so to the distinguished Senator with the legislative group. back eligibility, reduced benefits, in- from Maine. Reflecting a sense of pessimism, 46 percent creased beneficiary cost-sharing, and of legislators polled at a Wednesday morning The PRESIDING OFFICER (Mr. CAR- meeting said they thought revenues would cut or delayed payments to providers. PER). The Senator from Maine. remain flat or decline in the year ahead. Vir- Additional reductions in health care Ms. COLLINS. I thank the Senator tually all states are legally required to bal- assistance, as well as cuts in other from West Virginia. It has been a pleas- ance budgets. If so, hard choices may become State-funded programs that serve ure to work with him and the Senator even more difficult. many of those affected by the eco- from Nebraska, as well as the Senator This past year, 19 states tapped into rainy nomic downturn, are expected. At this from Oregon, on this important amend- day funds and 12 turned to tobacco settle- point in Maine’s financial crisis, sav- ment. ment funds to make up for lower-than-ex- ings have been found elsewhere in the pected revenues and keep spending cuts in The Senator from Nebraska raised a check. But those reserves are now substan- budget. However, my Governor has al- very good point. This amendment has tially smaller, leaving states with fewer op- ready made a call for a special session implications for all of our health care tions and more pressure to cut programs, of the State legislature, which ad- providers and that is why it enjoys said William Pound, the executive director journed back on April 25 of this year, such strong support of our nursing of the National Conference of State Legisla- so that they can hammer out a solu- homes, of our hospitals—our rural hos- tures. One state facing acute pressure is tion to the ballooning deficit. pitals are struggling with inadequate Iowa, where revenues slid nearly 9 percent I am particularly concerned about reimbursements—from disability advo- last year and spending was slashed nearly 6 the impact the State budget crunch percent below the previous year’s levels. ‘‘If cates and the Visiting Nurse Associa- you’re a parent and you walk into the human will have on the Medicaid Program and tions. services department and ask for help, you’ll the low-income children and families But let’s talk about what this means. be told no services are available,’’ said state who rely on this program for essential We have talked about it being nec- Rep. Dave Heaton, co-chairman of the Iowa health coverage. Last year, the House essary to protect the most vulnerable

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7332 CONGRESSIONAL RECORD — SENATE July 25, 2002 in our society. Let’s talk about what it ized to appoint conferees on the part of larger than the States’ deficits. The means for some individual States. the Senate with the ratio of 4 to 3, all Federal deficit, if you include Social I mentioned yesterday that this without intervening action or debate. Security, is $322 billion. Things may amendment would provide $54 million The PRESIDING OFFICER. Without have deteriorated for State revenues, in much needed relief to my home objection, it is so ordered. but they have deteriorated signifi- State of Maine. That would help avoid The bill (H.R. 3210), as amended, was cantly for Federal revenues. the necessity for draconian cuts in es- read the third time and passed. It is not just borrowing against So- sential social service programs such as The PRESIDING OFFICER appointed cial Security. It is borrowing against our Medicaid Program. But let’s look Mr. SARBANES, Mr. DODD, Mr. REED, the American people. The American at a few other States. Mr. SCHUMER, Mr. GRAMM, Mr. SHELBY, people are going to have to borrow this For Alabama, for example, this would and Mr. ENZI conferees on the part of $9 billion. They will have to pay inter- mean $92.6 million; for Alaska, it would the Senate. est on it. My biggest concern is that it be $32.2 million; for Arizona, $144 mil- f is not a $9 billion amendment. I know lion; for Arkansas, $80 million. the amendment is temporary. I know it GREATER ACCESS TO AFFORD- Let me skip down a bit. For Florida, is retroactive. ABLE PHARMACEUTICALS ACT $359 million; for Georgia, $208 million; It is kind of interesting how we are OF 2001—Continued for Hawaii, $28 million; for Idaho, $28.6 going to spend retroactive money. This million. Indeed, the Governor of Idaho, The PRESIDING OFFICER. Who goes back and says we are going to in- our former colleague, Governor Kemp- yields time? The Senator from Okla- crease spending going back to April of thorne, has worked very hard as an ad- homa. this year. And then presumably, we are vocate for this important legislation. Mr. NICKLES. Mr. President, how going to do it through this September, In other words, every single State in much time remains on both sides? and then next year. the Nation would be by this amend- The PRESIDING OFFICER. Almost It is an amendment that is for about ment provided with much needed relief. 17 minutes on the Republican side and 1 1⁄2 years. My concern is it won’t be a That is why we need to act. Otherwise, 7 minutes on the Democrat’s side. year and a half. If you increase these States are going to have no choice but Mr. NICKLES. Will the Senator yield formulas, States are going to still be in to slash essential programs. me 8 minutes? difficult times next year. They are We have new figures coming out Mr. GRAMM. I would yield him 10 going to say: Let’s make this perma- today that show the fiscal crisis affect- minutes. He deserves to be heard. nent. These formulas, in many re- ing our partners, the States, has wid- Mr. NICKLES. Mr. President, I rise spects, are good. We don’t want them ened still further. According to the Na- in support of the budget point of order to ever go down. We never want the tional Conference of State Legislators, that was raised by my colleague from States to get less. States have used up two-thirds of their Texas. I am a little disappointed that If it is temporary, and here is a 1.35 cash on hand. The gap between reve- the chairman of the Budget Committee percent increase in Federal match, nues and spending has hit $36 billion didn’t raise it. It is the responsibility what makes anybody think this won’t and is expected to be $58 billion, affect- of the Budget Committee. I have had be extended? This amendment is a $100 ing 46 States. We must act. I urge my the pleasure of serving with my col- billion amendment. If it is extended, I colleagues to reject the point of order. league from Texas on the Budget Com- can tell you if we pass this—and it may The PRESIDING OFFICER. The Sen- mittee. That is the reason why we have well be that my good friend from West ator has used 2 minutes. a Budget Committee and the reason Virginia has the votes. The administra- The Senator from West Virginia. why we tried to pass a budget. We tion is very opposed to it, illustrated in Mr. DASCHLE. Would my colleague didn’t pass a budget this year for the a letter from them that I have here. from West Virginia withhold for a mo- first time since 1974. Shame on this But if it becomes law, I have no doubt ment? If the Senator from West Vir- Congress. Shame on this Senate. whatsoever that a year from now col- ginia will yield, I appreciate my col- Shame on, frankly, the leadership in leagues will say: Let’s make this per- league’s courtesy. this Senate for not getting it done. manent. States are still in trouble. Mr. ROCKEFELLER. Mr. President, I It is maybe the most fiscally irre- Governors will say: Let’s make this yield. sponsible thing we have not done and, permanent. Let’s just increase the Fed- f as a result, there is no limit to how eral share. It is free. It came from the much money we can spend. Federal Government. TERRORISM RISK PROTECTION A budget point of order still lies on I just happen to disagree with that. If ACT an amendment such as this, or any this is made permanent, we are talking Mr. DASCHLE. Mr. President, as all amendment, until the end of Sep- about spending $100 billion—$9 billion of our colleagues know, over the last tember, so we are raising a budget basically for the first year—$100 bil- many weeks we have been attempting point of order for good reason. My col- lion. We are just going to do that? Next to work out an arrangement whereby league from Texas and the sponsors of year we may not be able to make a we can go to conference on terrorism the amendment, say this is a $9 billion budget point of order if we don’t figure insurance. I am very pleased to be able amendment. This will increase Federal out some way to get fiscal discipline. to report this morning that we are now spending. You can come up with a list We are just going to pass $100 billion, in a position to be able to do so. I have to show that every State is going to and have colleagues stand up and say: been in consultation with the Repub- benefit. I know my State is going to I can’t believe these deficits are so lican leader, and I am prepared now to benefit $93 million. I am sure my Gov- high. present a unanimous consent request ernor would send me a letter saying This amendment increases the Fed- in that regard. please vote for this; we need help. And eral share. It increases FMAP. Times I ask unanimous consent the Senate they do. are tough, and we are going to increase proceed to the immediate consider- I agree with my colleague and very the Federal share on Medicare. ation of Calendar No. 252, H.R. 3210, the good friend from Maine. A lot of States Wait a minute. Times were good in House-passed terrorism insurance bill, are in very difficult times. the last several years when we had the that all after the enacting clause be If you have an amendment on the largest surplus in the country. Did we stricken, the text of S. 2600 as passed floor that says here is $9 billion, and see an increase in the Federal share by the Senate be inserted in lieu there- cut it up, every State is going to ben- when States were doing very well? of, the bill as thus amended be read the efit. You could have every State Gov- We have never said this should be third time, passed, the motion to re- ernor saying pass this amendment. based on the economy or on States’ consider be laid upon the table; that What is wrong with it? Yes, states are ability to pay. The formula for the the Senate insist upon its amendment, having a difficult time. The Federal FMAP is based on the States’ income request a conference with the House Government is having a difficult time, relative to the Federal income. The upon the disagreeing votes of the two too. The Senator from Texas pointed States’ income was much higher than Houses, and that the Chair be author- out that the Federal deficit is much the norm with Federal income. They

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7333 paid a greater percentage, or they make it 80 percent. There has to be FMAP rates are not designed to change ac- weren’t subsidized to get as much. An- some kind of limit. The Federal Gov- cording to short-term economic develop- other way to say this is that the poorer ernment happens to have deficit prob- ments. Although FMAPs are based on State States were being subsidized more. lems, too. per capita income levels and other economic indicators, they have not typically risen and This just kind of inverts and says the Just to increase this entitlement and fallen with short-term economic trends. If States that had the significant growth really kind of turn the formula upside State logic suggests raising FMAPs now, last year are going to get the biggest down—this goes all the way back to then it would also imply lowering them in benefit out of this proposal. the creation of Medicaid, a successful times of economic boom. If we had followed It doesn’t do anything to fix some of program to help low-income States; a such a course, after nine years of economic the biggest fraud that is being per- program designed to benefit the poorer recovery, current FMAP rates would be petrated in this system right now—the States, to assist them. Medicaid is a much lower than they are today. Such cycli- upper payment limit. I wish my col- good program, but this amendment cal movements are contrary to the intent of leagues new something about it. Maybe the Medicaid statute, and in the long term, says, well, we want the Federal Gov- would serve the interest of neither the State some do. Maybe former Governors do. ernment to make up more, and when nor the Federal government. But there is a fraud, an accounting some States are abusing it, we don’t An FMAP increase is unlikely to increase scheme and scam that is going on stop that abuse. We are just going to health insurance coverage. Instead of using today called upper payment limit. It is have the Federal Government pick up increased funds to provide more health serv- being done by about 30 States that are more. We can hand out cards. Your ices, States would likely use the increase in ripping off the Medicaid Program and State is going to get so many billion Federal dollars to lower their spending on the Federal Government that is having dollars. We’ll just borrow some Federal health care. Increasing the FMAP would not difficulty. They devised a clever little money. lead to more coverage; it simply shifts addi- gimmick to have the Federal Govern- The Senator from Texas said it is So- tional health care costs onto the Federal government. ment—not pay 50 percent, not pay 60 cial Security money. It is Social Secu- percent, not pay 70 percent—pay 100 The President has introduced a nunber of rity, plus we are going into debt $165 initiatives to help alleviate State fiscal pres- percent of Medicaid costs. billion. sures and to increase access to health care Are we fixing that? No. If we are We will borrow every penny that we coverage for millions of uninsured Ameri- going to deal with Medicaid, I tell my are talking about. We will pay interest cans, including: colleague from West Virginia and oth- on that debt and write a check for that $89 billion over 10 years for health credits ers that we are going to deal with the interest. It is not just an accounting for the uninsured; upper payment limit. gimmick. It is not just crediting some A Medicaid drug rebate proposal that It is sickening to me to think we are fictitious trust fund. We will write a would save States billions of dollars over the telling people we are going to hold pri- check for every dime that is spent in next ten years; vate America to a strict accountability this program. A proposal to provide Federal funding for standard; we are going to have you sign I question the wisdom of doing that. prescription drug coverage to low-income truth-in-accounting statements, fiscal The administration is opposed. seniors prior to implementation of com- statements and financial statements; I will ask unanimous consent to have prehensive improvements in Medicare. Such a proposal has already passed the House and and, we have Governors who are rip- printed in the RECORD a letter from the ping off the taxpayers of this country would provide quick fiscal relief to States, Secretary of Health and Human Serv- which have had to take responsibility for with an upper payment scheme and ices, Tommy Thompson, dated July 18 prescription drug coverage in the absence of scam to where they get the Federal that says: Senate action; Government to pay 100 percent of their The Administration is opposed to this Medicaid coverage for families Medicaid costs. amendment. A temporary change in the transitioning from welfare to work through It is happening in State, after State, FMAP rate would be an unprecedented dis- FY 2003; after State, after State. ruption of the longstanding shared fiscal re- A proposal to make available State Chil- Have we fixed that? No. Should we fix sponsibility for the Medicaid program. dren’s Health Insurance Program (SCHIP) it? Yes. Let us deal with that. FMAP rates are not designed to change ac- funds that under current law would return to If we are going to get into Medicaid cording to short-term economic develop- the Treasury at the end of FY 2002 and 2003; reimbursements, let us wrestle with ments. Such cyclical movements are con- and that. Have we had a markup in the Fi- trary to the intent of the Medicaid statute, The Health Insurance Flexibility and Ac- and in the long term, would serve the inter- nance Committee? No. Have we re- countability Demonstration Initiative that est of neither the States nor the Federal gives States more flexibility using Medicaid quested it? Yes. Did we mark up this Government. FMAP proposal? No. and SCHIP funds to expand health insurance I believe that is exactly right. coverage to low-income Americans. Some said: We will deal with the I ask unanimous consent that this upper payment limits. This didn’t go All of these proposals would provide both letter be printed in the RECORD÷. temporary and long-term fiscal relief for through the Finance Committee. There being no objection, the letter States, which is the right policy response Maybe it is just a continual stream. was ordered to be printed in the given that State’ health care obligations are Maybe the Finance Committee, which RECORD, as follows: expected to continue to increase rapidly. In used to be an important committee, addition, these proposals would help provide THE SECRETARY OF HEALTH more secure and affordable health care as- doesn’t matter whatsoever. Maybe we AND HUMAN SERVICES, don’t need hearings anymore. Maybe Washington, DC, July 18, 2002. sistance for low-income Americans right away. These are far more effective ap- we don’t need markups in committee. Hon. TRENT LOTT, Maybe we will do everything on the Minority Leader, U.S. Senate, proaches than an increase in the FMAP. floor of the Senate. Washington, DC. The Administration also opposes the tem- I disagree with that. I disagree with DEAR MINORITY LEADER LOTT: We under- porary increase in funding for the Social Service Block Grant under Title XX of the the abuse that is being put on some stand that Senators Jay Rockefeller, Susan Collins, Ben Nelson, and Gordon Smith will Social Security Act. We believe that States States by the upper payment limit; offer an amendment to S. 812, the ‘‘Greater already have sufficient access to other Fed- and, then to come up with this amend- Access to Affordable Pharmaceuticals Act.’’ eral block grant funds to supplement the So- ment and say let us increase the Fed- The amendment would provide temporary in- cial Services Block Grant and other social eral share on Medicaid—a Federal- creases in the Federal Medical Assistance services-related programs. State program—and have the Federal Percentage (FMAP) under the Medicaid pro- We understand that some States continue Government take more and more of the gram under Title XIX of the Social Security to have financial difficulties and that Med- program. It used to be a Federal-State Act. It would also provide grants to States icaid constitutes a large share of State combination. Now there is this idea to through Title XX to be used for a variety of spending. However, we do not feel that this social services programs. temporary increase in FMAP is an effective let us make the Federal Government The Administration is opposed to this or proper way to address these final difficul- pay more. amendment. A temporary change in the ties. We will continue to work with the Sen- If you are going to do a 1.35 percent FMAP rate would be an unprecedented dis- ate to implement effective approaches of increase, why not make it all Federal? ruption of the longstanding shared fiscal re- providing relief to states while improving Make it 70 percent in every State, or sponsibility for the Medicaid program. health care coverage and affordability.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7334 CONGRESSIONAL RECORD — SENATE July 25, 2002 The Office of Management and Budget has It seems to me we have to be able to Mr. NICKLES. On my time. advised that there is no objection to the sub- look beyond what is being suggested Is the Senator saying that should his mission of this report from the standpoint of here. amendment become law, there will not the President’s program. I thank the Chair. be a request to extend this next year? Sincerely, The PRESIDING OFFICER. There TOMMY G. THOMPSON. Mr. ROCKEFELLER. No, I think are 5 minutes remaining for the Sen- Mr. NICKLES. Mr. President, I re- there probably will not be, No. 1. And, ator from West Virginia. No. 2, I would probably oppose that be- serve the remainder of our time. Mr. ROCKEFELLER. How much time The PRESIDING OFFICER. Who cause this is an emergency measure. is left? yields time? That is what the Senator understood The PRESIDING OFFICER. The Sen- Seven minutes remain on both sides. right after September 11. That is why Who yields time? ator has 5 minutes, and there are 7 it was in the emergency package. It is Mr. NELSON of Nebraska. Mr. Presi- minutes for the other side. an emergency measure, not a perma- dent, I ask my colleague from West Mr. ROCKEFELLER. I failed to hear nent measure. It is a way of helping Virginia if I might have 2 minutes. the Chair. people. The PRESIDING OFFICER. Who The PRESIDING OFFICER. There It is interesting, the Senator from yields time? are 5 minutes remaining for the Sen- Texas talked about the budget deficit. Mr. ROCKEFELLER. I yield to the ator from West Virginia and 7 minutes He never talked about people. This is Senator from Nebraska 2 minutes. remaining for the Senator from Texas. about 40 million people who are suf- The PRESIDING OFFICER. The Sen- And the Chair understands that the fering. ator from Nebraska is recognized. final 5 minutes to close belong to the Mr. NICKLES. Do I have the commit- Mr. NELSON of Nebraska. Thank Senator from West Virginia. ment of my colleague to oppose an ex- you, Mr. President. I thank Senator Mr. ROCKEFELLER. I say to the tension of this next year? ROCKEFELLER. Presiding Officer, I am not going to use Mr. ROCKEFELLER. I have no in- Back in the early nineties when I all my time at the present time. I will stinct to extend this program because tried to balance our budget as Gov- just make a couple very quick points. the States—— ernor and had a difficult time doing it, The Senator from Oklahoma—it is Mr. NICKLES. I thank my friend. the Federal Government reduced its very important my colleagues and Mr. ROCKEFELLER. All right. share and increased ours. their staffs, who may be listening to The PRESIDING OFFICER. Who Today, the Federal Government is this debate, understand this—used two yields time? not having the same difficulty the arguments, and only two arguments. Mr. ROCKEFELLER. I am going to One, he said, we may extend this. In State of Nebraska is having in terms of yield time—3 minutes—to the Senator other words, that is a classic argu- revenue. For only the second time in from Massachusetts, if he can arrive at ment. If you do not want to do some- history, Nebraska’s revenues are less his distinguished point of oratory. thing, you say, we may extend this. this year than they were last year. Mr. REID. Will the Senator from If we are trying to talk about who is That is why, just like when the tax cut West Virginia yield? going to do what during difficult times was written into law, it will not be ex- Mr. ROCKEFELLER. Of course. and how this partnership is going to tended. We have written into law that Mr. REID. It is my understanding the work, I think it is a little inconsistent will not be extended. Senator from West Virginia needs a lit- to say the Federal Government doesn’t The Senator from Oklahoma is say- tle more time. reduce its share. It does. If it reduces ing we do not want it extended because Mr. ROCKEFELLER. That is correct. it, it can increase it; and it does in the he does not want this to happen. And I ordinary course of events. understand that. It is a good debating Mr. REID. I ask the Senator, approxi- What we are saying is, this is an un- technique. But it isn’t going to be ex- mately how much time do you need on usual set of events—not a temporary tended. It is temporary. It is a year and your side? downturn, although we think it is but a half for a very specific reason. Mr. ROCKEFELLER. Four minutes. it is an unusual set of events where the Mr. NICKLES. Will the Senator yield Mr. REID. So 5 minutes on each side. Federal Government continues to have for a question? Is that OK with the Senator from Okla- growing income and the States are Mr. ROCKEFELLER. I will when I homa, an additional 5 minutes on each having a reduction in their income. am finished. side? It is a recognition that this partner- Mr. NICKLES. It is a very friendly I ask unanimous consent, Mr. Presi- ship, which was created by the Federal question. dent, that the Senator from West Vir- Government with the States, is one The PRESIDING OFFICER. The Sen- ginia be given 5 additional minutes and that needs to work as a partnership ator from West Virginia has the floor. the Senator from Texas 5 additional where the two partners can work to- Mr. ROCKEFELLER. The other is the minutes. gether to make this program work. upper payment limit, which in fact is The PRESIDING OFFICER. Is there That is what it is. understood by some of us. And I do not objection? Certainly, I am not suggesting the know whether the Senator is aware Without objection, it is so ordered. Federal Government take over the en- that the Bush administration, which The Senator from Massachusetts. tire partnership, take it over as a writes a letter against this—which Mr. KENNEDY. Mr. President, first, I stand-alone program at the Federal maybe is not surprising, I don’t know, thank our friend from West Virginia Government level. But I think it is in- but it is disappointing—has already for his excellent presentation and teresting to say that somehow the Fed- promulgated a new regulation, which strong support. eral Government’s share should not in- took effect in April, which solves most I welcome the opportunity to be a co- crease when, in fact, from time to time of the problem about which the Sen- sponsor of this legislation. I know it has increased, as well as from time ator is talking. The problem he is tak- there has been a good deal of debate to time it has decreased. ing about is real, but it has no place in and discussion about the technicalities I think it is important to recognize this debate. First, the administration of this amendment, but what we are that the program is about people. It is has moved to solve it. Secondly, it has really talking about are real people not about giving money to the States, no part in this debate. being hurt in the most egregious way if it is about recognizing the importance I yield the floor and reserve the re- we fail to respond. of the program to the people—the faces mainder of my time. We know that our States are facing of people who are elderly, working par- The PRESIDING OFFICER. The Sen- economic challenges, and those eco- ents, usually single parents who are ator has 3 minutes 14 seconds remain- nomic exigencies have required cut- struggling to get out of the welfare ing. backs in some of the very important system, who currently have transi- Mr. NICKLES. Will the Senator yield programs that reach out to the need- tional benefits in Medicaid, who could for a very brief question? iest people in these States. in fact lose those benefits and lose The PRESIDING OFFICER. Who We are talking about real people who their capacity to be able to work. yields time? are being hurt. Pregnant women in

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7335 Florida will lose their current Med- gram that provides services and care to years have been doing better than icaid coverage if their income just hap- the most vulnerable and needy in our other States, better than the country pens to fall between 150 and 185 percent society. That is the motivation behind as a whole, and unless we give them of poverty. our proposal. It is not to bail out the more money now, they may be ad- A North Carolina family of four, with States, it is to help the States, our versely affected by the formula. a child suffering from juvenile diabe- partners, provide essential services. The way the formula works is, the tes, could see their drug coverage The PRESIDING OFFICER. Who higher the State’s income relative to shrink, potentially limiting their ac- yields time? national income, the more of the Medi- cess to vital medicines. The Senator from Texas. care share they pay. Should it be the Some 45,000 children could be cut Mr. GRAMM. Mr. President, we are other way around? Should poorer from the Medicaid rolls in New Mexico coming to the end of this debate. I States pay a higher share? because of the proposed cuts to deal would like to make note of how deficits There is not one substantive argu- with the $47 million shortfall. occur. ment in favor of borrowing this $9 bil- Some 50,000 children, pregnant If anybody wants to understand why lion. If the American people knew this women, disabled, and elderly could lose the Federal Government, which is the debate was occurring at 11:35 this their Medicaid coverage in Oklahoma summation of all of the taxpayers in morning, if all 120 million taxpayers because of the $21 million shortfall. the country, owes trillions of dollars, were following this debate, this amend- It may be expressed in dollars, but it this is a classic example of how that ment would never have been offered is really being expressed in real peo- comes about. We are talking about and probably would not have gotten 20 ple’s lives: real suffering, real sacrifice, spending $9 billion. There are 140 mil- votes. and real pain. lion taxpayers. That is $64 per tax- The problem is, those 120 million tax- We have a chance to do something payer. payers are at work, and all the people about that. This can be an expression The problem is, taxpayers are at who want this money are looking over of our values as a society and our con- work. It is 11:30 on a Thursday. They their Senator’s right shoulder, sending cern about our fellow human beings. don’t know this debate is occurring. letters back home, telling people These are the neediest of the needy in But all the special interest groups that whether he cares about State finances our society, and this amendment will want this $9 million, members of the or she cares about Medicaid bene- help them. State legislatures who ran for office to ficiaries. I commend the Senator for bringing make decisions in the States, all the this matter to the attention of the That is the dilemma we are in. I urge people who want this money are look- my colleagues to look at the fact that Senate. I am very hopeful it will be ac- ing over their Senator’s right shoulder cepted and that the point of order will in 12 short months, we have gone from trying to tell them that they ought to $283 billion in the black to $165 billion be waived. care about people on Medicaid or about The PRESIDING OFFICER. Who in the red. When does it stop? We are the State legislature or about the broke, and we don’t act like it. When yields time? State’s deficit. The Senator from West Virginia. do we stop spending this money that That would be insignificant if the 140 Mr. ROCKEFELLER. Mr. President, I we do not have? million taxpayers were looking over yield 2 minutes to the distinguished I urge my colleagues to sustain this the left shoulder. The problem is, it is Senator from Maine. budget point of order. I urge everybody The PRESIDING OFFICER. The Sen- 11:31 on a Thursday morning and all who has ever lamented the spending of ator from Maine is recognized for 2 those 140 million taxpayers are at the Social Security surplus to put their minutes. work. They don’t even know this de- vote where their mouth is. I urge ev- Ms. COLLINS. I thank the Senator bate is occurring. So as a result, what eryone who has ever lamented the def- from West Virginia. tends to happen over and over and over icit, who has ever gone back to their Mr. President, I just want to make a again is that spending interests domi- State and said, I am for fiscal responsi- couple points. nate. bility, to put your vote where your Our colleagues tell us: States have First of all, an increase in the Fed- mouth is. I want to urge everybody difficulty. I remind my colleagues, the eral match under Medicaid was part of who has ever said, we can’t let working Federal Government has difficulty. A the Centrist Coalition’s economic re- people keep more of what they earn be- year ago we had a $283 billion surplus. covery package we considered. It was cause we have a deficit, we need the We were spending madly. Today we part of virtually every version. It had money, we can’t afford it; I urge them have a $165 billion deficit, and we are widespread support. It was supported to vote against this spending. still spending like drunken sailors, as by the administration. It did not make I don’t know how you can have any Ronald Reagan would say. Only drunk- it into the final package. But this is possibility of being consistent in tak- en sailors are spending their own not a new idea. This is an idea with ing the position that we ought to bor- money, and in all fairness, we are widespread bipartisan support. row this money. This is totally unjusti- The second point I want to make is spending somebody else’s money. We hear that the States in total fied. I know some people want it. If you in response to an argument made by spend $9 billion, you are going to ben- my friend and colleague from Okla- could run as much as a $40 billion def- icit this year. I certainly am unhappy efit somebody even if by mistake. I am homa. My friend from Oklahoma said not in any way denigrating that this $9 Medicaid spending does not get cut in about it. My State faces tough deci- sions. But we are running a $165 billion billion will help people. I am not say- economically good times. In fact, it is ing it won’t. But the point is, we have countercyclical. In good times, far deficit. We are running a deficit over four times as big as all the States com- a budget process. We have seen the sur- fewer people qualify for Medicaid. In plus go from $283 billion in the black to fact, Federal and State spending on bined. Our colleagues say: This fits an emer- $165 billion in the red. Let us stop that Medicaid declined dramatically during process here. the 1990s, when the economic times gency. This is unforeseen, unpredicted, unanticipated. Well, it is created by a I urge my colleagues to vote to sus- were good. tain the budget point of order. So there is a countercyclical aspect formula that has only existed for 37 The PRESIDING OFFICER. Who of Medicaid. It does go down when years. So for 37 years we have known yields time? times are good and the program is less what the formula was. What is unan- needed. ticipated, what is unpredicted about The Senator from West Virginia. Now times are not good. There are this? Mr. ROCKEFELLER. I yield 30 sec- more people in need of assistance from Finally, as if the argument to waive onds or such time as he might need to the Medicaid Program. We know 40 this budget point of order and bar this the distinguished Senator from Ne- million Americans rely on this pro- $9 billion and take it away from Social vada. gram. Security could be any weaker, the ar- APPOINTMENT OF CONFEREES What we are trying to do is preserve gument basically comes down to: There Mr. REID. Mr. President, I am sorry this essential, vital health care pro- are some States that in the last few I was not here when the unanimous

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7336 CONGRESSIONAL RECORD — SENATE July 25, 2002 consent agreement was entered assign- its dependency upon Medicaid. Forty Mr. NICKLES. I announce that the ing conferees to the antiterrorism leg- million people are going to be hurt, in- Senator from North Carolina (Mr. islation. It is very important legisla- cluding disabled people, children, sen- HELMS) is necessarily absent. tion. It is going to help all over the iors, and others, because of this mo- The PRESIDING OFFICER (Mrs. country. tion. CLINTON). Are there any other Senators I compliment and applaud Senator I need to tell you that this is not a in the Chamber desiring to vote? LOTT and others who allowed us to go bailout. This is temporary. This was in The yeas and nays resulted—yeas 75, forward. It is an important day. Con- the original emergency stimulus pack- nays 24, as follows: struction will be able to go forward as age. Nobody argued then. Now, all of a (Rollcall Vote No. 190 Leg.) soon as we complete this conference in sudden, they argue. It is very impor- YEAS—75 Nevada, Delaware, all over the coun- tant for the States to be healthy and Akaka Domenici Lugar try. It is important legislation. I com- for the States to be able to balance Allard Dorgan McCain pliment and applaud the Republican their budgets, and therefore I strongly Allen Durbin McConnell leader. urge colleagues to support the motion Baucus Edwards Mikulski Bayh Enzi Miller The PRESIDING OFFICER. The Sen- to waive the point of order. Bennett Feinstein Murkowski ator from West Virginia. The PRESIDING OFFICER. The time Biden Fitzgerald Murray Mr. ROCKEFELLER. Mr. President, of the Senator has expired. Bingaman Graham Nelson (FL) let me make a couple comments. Mr. GRAMM. How much time do I Boxer Hagel Nelson (NE) No. 1, my friend from Texas speaks Breaux Harkin Reed have remaining? Bunning Hatch Reid with enormous passion about the over- The PRESIDING OFFICER. The Sen- Burns Hollings Rockefeller riding power of the budget, and at the ator has 3 minutes 51 seconds remain- Byrd Hutchinson Sarbanes very last moment of his last state- ing. Campbell Hutchison Schumer Cantwell Inouye Sessions ment, for the first time he used the Mr. GRAMM. Mr. President, anybody Chafee Jeffords Shelby word ‘‘people.’’ I sat in the same Fi- who has not heard me talk about the Cleland Johnson Smith (OR) nance Committee with him for a long deficit has not been listening in the Clinton Kennedy Snowe time when we were debating tax cuts— Cochran Kerry Specter last days, weeks, and years. Collins Kohl Stabenow and I am not here to argue whether it Secondly, I ask unanimous consent Conrad Landrieu Stevens was a good or bad thing, but there was to have printed in the RECORD the ac- Corzine Leahy Torricelli no question that we went from a $5.6 counting of the Office of Management Daschle Levin Warner Dayton Lieberman Wellstone trillion surplus to a $165 billion annual and Budget on where this deficit has Dodd Lincoln Wyden deficit probably for the next 10 years, if come from. We have gone from $283 bil- nothing gets worse—and I never heard lion in the black to $165 billion in the NAYS—24 him make the argument—for some rea- red, and only 9 percent of that change Bond Feingold Nickles Brownback Frist Roberts son, maybe I missed it, maybe I wasn’t had anything to do with the tax cut. Carnahan Gramm Santorum there at the moment—that we There being no objection, the mate- Carper Grassley Smith (NH) shouldn’t do that tax cut which was rial was ordered to be printed in the Craig Gregg Thomas Crapo Inhofe Thompson the largest tax cut that this particular ECORD R , as follows: DeWine Kyl Thurmond Senator from West Virginia, who does Ensign Lott Voinovich not need it, has ever received from the CHANGE IN SURPLUS NOT VOTING—1 Federal Government—I never heard FY2002 FY2003 FY2002– Helms him talk about the possibility of budg- FY2011 et deficits. The PRESIDING OFFICER. On this Bil- Per- Bil- Per- Per- So it does become a matter of prior- lions cent lions cent Billions cent vote the yeas are 75, the nays are 24. ities. It is fair, as the Senators from Three-fifths of the Senators duly cho- Total surplus (OMB Feb- Nebraska, Massachusetts, and Maine ruary 2001)...... $283 ...... $334 ...... $5,637 ...... sen and sworn having voted in the af- have mentioned, to talk about 40 mil- firmative, the motion is agreed to. Economic and technical lion people. And to say we are doing changes ...... 278 64 194 49 1,669 43 Mr. REID. I move to reconsider the this to bail out the States, good grief, Bush tax cut ...... 41 9 94 24 1,491 38 vote. Appropriations ...... 45 10 40 10 409 10 it is quite the opposite. The States are Farm bill ...... 2 0 13 3 81 2 Mr. ROCKEFELLER. I move to lay not powerful in the same sense that the Stimulus ...... 59 14 39 10 42 1 that motion on the table. Federal Government is. The States Other ...... 9 2 15 4 228 6 The motion to lay on the table was cannot go into deficit financing—with Total change in agreed to. the exception of Vermont—as can the surplus ...... 434 100 395 100 3,920 100 Mr. REID. I suggest the absence of a Federal Government. They have to bal- Total deficit/ quorum. ance their budgets. surplus (OMB The PRESIDING OFFICER. The July 2002).... 150 ...... (62) ...... 1,718 ...... I was a Governor; I know that. The clerk will call the roll. Senator from Nebraska was a Gov- Source: CBO; provided by Senator Don Nickles, 7/16/02. The senior assistant bill clerk pro- ernor; he knows that. The States are Mr. GRAMM. Mr. President, I will ceeded to call the roll. not being bailed out. If the States cut conclude by saying that we have come Mr. DASCHLE. Madam President, I their Medicaid eligibility, they cannot down to a decision about whether or ask unanimous consent that the order receive any of this money, unless they not we are going to borrow $9 billion, for the quorum call be rescinded. restore their portion through legisla- which we don’t have. Given the state of The PRESIDING OFFICER. Without tive action to the proper eligibility the American economy and budget, objection, it is so ordered. rate and, only then, on a temporary given that our deficit is four times as f basis, for 1 and a half years, written big as the cumulative deficit of the into law, do they get this money. LEGISLATIVE BRANCH States, I urge my colleagues not to APPROPRIATIONS ACT, 2003 I want to close on the concept of peo- bust the budget, not to waive this ple. Sometimes it appears to me on budget point of order, but instead to be Mr. DASCHLE. Madam President, this floor that helping people is sort of fiscally responsible. under the authority granted to me and a bad thing to do because if you help I yield back the remainder of my after consulting with the Republican people, it implies that it might cost time. leader, I now call up Calendar No. 504, some money. It almost always does. It The PRESIDING OFFICER. All time H.R. 5121, the legislative branch appro- also costs an awful lot more money if has expired. priations bill. you don’t, on some occasions. This is The question is on agreeing to the The PRESIDING OFFICER. The lead- one of those occasions. If we do not motion. The yeas and nays have been er has that right. The clerk will report support the motion to waive, then ordered. the bill by title. health infrastructure all across this The clerk will call the roll. The assistant legislative clerk read country is going to be hurt because of The legislative clerk called the roll. as follows:

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7337 A bill (H.R. 5121) making appropriations the enacted level and $11 million below stand the important responsibility of for the Legislative Branch for the fiscal year the request. Significant increases are the Capitol Police which was enhanced ending September 30th, 2003, and for other provided for the Sergeant-at-Arms, di- and challenged by September 11. We purposes. rected at increasing the security of the want to make certain that we have the The PRESIDING OFFICER. Under Capitol complex, including new mail very best men and women to protect the previous order, the text of S. 2720, handling protocols and a new Office of this great national asset, all the people the Senate committee-reported bill, is Emergency Preparedness. who work here, and our visitors whom inserted in the appropriate place in the For the Architect of the Capitol, we treasure very much. measure. funding would total approximately $396 This bill will require that within 3 Who yields time? million compared to the request level years the Library of Congress, just The Senator from Illinois. of $363 million. The largest project in across the street, and Capitol Police of- AMENDMENT NO. 4319 the Architect’s budget that we are rec- ficers be merged in order to improve Mr. DURBIN. Madam President, I ask ommending is the expansion of the security. This has been an initiative unanimous consent to make a tech- Capitol power plant’s west refrigera- urged and encouraged by my colleague, nical correction to the bill relating to tion plant, which is critically needed Senator BENNETT. The 3-year imple- a House matter. This amendment sim- due to aging equipment and increased mentation period will allow time to ply strikes a requirement that the GAO capacity requirements, at a cost of $82 work out the details, differences in re- report to the House Administration million. In addition, a number of crit- tirement, training and equipment. Committee regarding its work on the ical security-related projects have been The Government Printing Office, $122 Architect of the Capitol. We have been included such as an alternate com- million is included with the directive informed the committee does not have puting facility for the legislative to the administration not to imple- oversight for the Architect and there- branch. ment the recently announced policy di- fore have been requested to delete this The bill includes language aimed at recting agencies to violate our law and reference. I have consulted with my helping the Architect of the Capitol bypass the Government Printing Office colleague and the ranking member, improve his operations by creating a for their printing needs. If such a direc- Senator BENNETT, and I ask unanimous new deputy Architect of the Capitol tive were implemented, not only would consent this technical correction be who will also serve as the chief oper- the law be broken, but the process by agreed to. ating officer. which 1,300 Federal depository libraries We have worked closely with the The PRESIDING OFFICER. Without receive Government publications would General Accounting Office in these ef- objection, it is so ordered. The clerk be decimated. forts to upgrade AOC operations, in- will report the amendment. For the Library of Congress, includ- cluding a greater focus on worker safe- The legislative clerk read as follows: ing the Congressional Research Serv- ty, and I might add significant progress ice, funding would total $497 million, The Senator from Illinois [Mr. DURBIN], for has been made in the last year due to an increase of $15 million over the en- himself and Mr. BENNETT, proposes an amendment numbered 4319. the efforts of this committee and the acted level, but $15 million below the cooperation of the Architect’s office, request, reflecting a more realistic pro- Mr. DURBIN. Madam President, I ask project management, accountability jection of the cost of new positions. unanimous consent that reading of the for performance, and coordination of New positions are provided for pre- amendment be dispensed with. roles and responsibilities. serving the access of the Library’s col- The PRESIDING OFFICER. Without The Architect of the Capitol oper- lections, including digital initiatives. objection, it is so ordered. ation has been making some improve- The General Accounting Office will The amendment was (No. 4319) was ments over the past year and the em- receive $455 million. This covers all agreed to, as follows: ployees worked very hard to do their mandatory and price level increases, On page 33, lines 19 and 20, strike ‘‘, the part in addressing the anthrax cleanup, and includes $1 million to continue Committee on House Administration of the an historic challenge to all who worked their important technology assessment House of Representatives,’’. on Capitol Hill. But there is much work which was initiated by Congress On page 34, line 24, through page 35, line 1, strike ‘‘, the Committee on House Adminis- more to be done in making AOC a best- last year. tration of the House of Representatives,’’. practices organization. The recommendation includes $13 They have been given tremendous ad- million for the Center for Foreign The PRESIDING OFFICER. The Sen- ditional responsibilities for executing a Leadership Development. We have ex- ator from Illinois. myriad of security projects, particu- panded what was originally the center Mr. DURBIN. Madam President, I larly the Capitol Visitor Center—which for Russian Leadership Development to thank my colleague and chairman of we want to ensure remains on schedule include newly independent states of the the committee, the Senator from West and on budget as it is today. Any vis- former Soviet Union including the Bal- Virginia, for his help in bringing this itor to Capitol Hill in the last 6 months tics. This program has proven success- matter to the floor. or a year has noted the extensive con- ful in bringing emerging political lead- Mr. President, I am honored to struction underway. The authorities ers in Russia to the United States to present to the Senate the fiscal year included in this bill should provide new learn democracy firsthand and to make 2003 legislative branch appropriations tools with the goal of making the AOC certain they take those lessons home. bill as reported by the Appropriations a model for facilities management and Expanding this program to include Committee. I thank the chairman and construction management. these additional countries will con- ranking member of the full committee, Funding for the Capitol Police totals tinue to promote that critical goal. Senate BYRD and Senator STEVENS, and roughly $210 million which reflects Before I turn it over to my colleague of course my ranking member Senator their latest payroll and expense esti- and friend Senator BENNETT, I want to BENNETT who has been a real partner in mates. Funding has been provided to particularly thank all the staff on the crafting this legislation. accommodate at 9.1 percent pay raise— Appropriations Committee for their The bill is within its budget author- which includes comparability pay—to work, and especially Carrie Apostolou, ity and outlay allocation, with total help the Capitol Police recruit and re- who has done a tremendous amount of funding of $2.417 billion. This excludes tain new officers as they attempt to in- work to make this bill ready for floor House amounts which is the normal crease significantly the force size over consideration, and Pat Souders of my protocol. the next few years to about 2,000 offi- own staff, who has worked closely with This is only $8 million—0.35 percent— cers. Also included is authority for in- her. over the request level and $164 million creasing pay for specialty assignments I thank Senator BENNETT for his co- or 7 percent over the fiscal year 2002 and providing authority and funding operation, and I yield the floor to my enacted level. Virtually all significant for full premium pay earned during the colleague. increases are focused on enhancing se- September 11th and October 15th inci- The PRESIDING OFFICER. The Sen- curity for the Capitol complex. dents. ator from Utah. Highlights of the bill include—$675 I can say that the hundreds of thou- Mr. BENNETT. Madam President, I million for the Senate, $31 million over sands of visitors to Capitol Hill under- am grateful for the generous remarks

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7338 CONGRESSIONAL RECORD — SENATE July 25, 2002 of my friend and chairman, the Senator I had been there. I was very pleasantly The Appropriations Committee voted from Illinois. I am grateful for the co- surprised at the high degree of pro- 29–0 on June 27 to adopt a set of non- operative way in which we have been American atmosphere we ran into. I binding sub-allocations for its 13 sub- able to work through this bill. was in Russia before when there was, committees totaling $768.1 billion in The Senator from Illinois had the frankly, an underlying current of sus- budget authority and $793.1 billion in challenge of taking over this sub- picion—I wouldn’t go so far as to say outlays. While the committee’s sub- committee in the middle of the session, anti-American attitude in Russia, but committee allocations are consistent and he had just come to the sub- suspicion of America and America’s with both the amendment supported by committee by virtue of his assignment motives. We got that over the issue of 59 Senators last month and with the to the Appropriations Committee. He the expansion of NATO, for which I President’s request for total discre- has demonstrated that he is a very voted and which I supported. tionary budget authority for fiscal quick study. He has moved quickly to The first time I met with members of get on top of these issues. the Russian Duma, they were auto- year 2003, they are not enforceable I do not want to repeat the various matically anti-expansion of NATO. And under either Senate budget rules or the elements of the bill he has described, no matter what we tried to talk about, Balanced Budget and Emergency Def- but it is a good bill and it is one that they would always bring it back to icit Control Act. While I applaud the I am happy to join in recommending to NATO and, what are you Americans committee for adopting its own set of the Senate. doing? sub-allocations, I urge the Senate to As the Senator from Illinois has indi- On this occasion, we met with offi- take up and pass the bipartisan resolu- cated, I have been advocating for some cers of the National Council. They told tion, which would make the commit- time a merger of the Capitol Police, at us they were going to rename it the tee’s sub-allocations enforceable under least with the Library of Congress Po- Senate because they indicated they did Senate rules and provide for other im- not get appropriate respect in their lice, and looking at the other police portant budgetary disciplines. agencies that are under our jurisdic- own country, when everybody thought For the Legislative Branch Sub- tion. We are now moving ahead with of the parliament being the Duma and this. I think it only makes sense, in they thought of themselves as the committee, the full committee allo- the new security environment in which upper house. We are very careful in cated $3.413 billion in budget authority we find ourselves. To have an area as this Congress that we never use that and $3.467 billion in total outlays for small as the Capitol campus be divided term. And they thought, if they re- 2003. The bill reported by the full com- up into jurisdictions under, not nec- named themselves the Russian Senate, mittee on July 11 is fully consistent essarily competing but certainly dif- they would get appropriate respect. with that allocation. In addition, S. One of the members of that council ferent police departments, does not 2720 does not include any emergency told me this story. He said: My grand- make a whole lot of sense. designations or advance appropria- mother told me that all her life she has I have made reference to this before, tions. been taught to mistrust, indeed fear, but I think it is appropriate here. One NATO. However, she said, in the I ask for unanimous consent that a of the things that was particularly sig- present atmosphere, if President Putin table displaying the budget committee nificant for the success of the Olympics tells me that NATO is no longer a scoring of this bill be printed in the in Utah was the coordination that oc- threat, I guess I am going to have to RECORD at this point. curred between competing law enforce- change my point of view. There being no objection, the mate- ment agencies. Of course, we were in- He told me that story to illustrate rial was ordered to be printed in the volved in a much bigger venue there, a President Putin’s popularity in Russia, RECORD, as follows: much larger geographic area, but it but I took that story to indicate a sig- was important that everybody got to- nificant change in Russian attitudes S. 2720, LEGISLATIVE BRANCH, 2003 gether and was able to communicate. toward Americans, and it has been the [Spending comparisions—Senate-Reported Bill (in million of dollars)] Given the small nature but highly Russian leadership group that has been visible nature of the Capitol campus, it participating in this function, that we General Manda- Total makes sense to have the police come have been funding out of this sub- purpose tory together. I am grateful to my friend committee, that has helped plant the Senate-reported bill:1 from Illinois for his support and leader- seeds of that kind of circumstance. Budget Authority ...... 2,417 102 2,519 ship on this particular issue. So even though it is a relatively Outlays ...... 2,547 101 2,648 We all know about the Visitor Cen- Senate committee allocation:2 small amount and has been a con- Budget Authority ...... 3,413 102 3,515 ter. We can’t come into the Capitol troversial program with Members of Outlays ...... 3,467 101 3,568 without having it in our face every House-reported bill: the House of Representatives, I can Budget Authority ...... 2,674 102 2,776 day. But the demands of the Architect give personal testimony, if you will, Outlays ...... 2,856 101 2,957 of the Capitol to bring that project President’s request:3 that it has borne fruit, that the fruit Budget Authority ...... 3,404 102 3,506 through are significant. So I think the has been significant, and I congratu- Outlays ...... 3,451 101 3,552 decision of the committee to fund a late Senator DURBIN on his continued SENATE—REPORTED BILL COMPARED Deputy Architect of the Capitol, cre- support of this program and its expan- TO: ating a full-time manager for the day- sion into other countries as well. Senate committee allocatin: to-day activities of the Architect of the Budget Authority ...... ¥996 0 ¥996 So, Madam President, I am happy to Outlays ...... ¥920 0 ¥920 Capitol, is the right decision. join with Senator DURBIN in recom- House-reported bill: Senator DURBIN has been particularly mending this bill to the other Members Budget Authority ...... ¥257 0 ¥257 Outlays ...... ¥309 0 ¥309 aggressive in trying to solve some of of the Senate and urging its passage. President’s request: the management challenges the Archi- Mr. CONRAD. Mr. President, I rise to Budget Authority ...... ¥987 0 ¥987 tect of the Capitol has had over the offer for the record the Budget Com- Outlays ...... ¥904 0 ¥904 past years. The decision to move to- mittee’s official scoring for S. 2720, the 1 Per tradition, the Senate bill does not include funding for exclusive House items, which will be added in conference. ward a Deputy Architect, toward an Legislative Branch Appropriations Act 2 The Senate has not adopted a 302(a) allocation for the Appropriations operating officer to run the office of for Fiscal Year 2003. Committee. The committee has set non-enforceable sub-allocations to its 13 The Senate bill provides $2.417 billion subcommittees. This table compares the committee-reported bill with the the Architect of the Capitol, is a good committee’s allocation to the Legislative Branch Subcommittee for informa- decision, and I think we need to high- in discretionary budget authority. Per tional purposes only. light that in this bill. tradition, that amount does not in- 3 The President requested total discretionary budget authority for 2003 of $768.1 billion, including a proposal to change how the budget records the Finally, I want to make a personal clude funding for exclusive House accrued cost of future pension and health retiree benefits earned by current comment about a very small but items, which will be added in con- federal employees. Because the Congress has not acted on that proposal, for comparability, the numbers in this table exclude the effects of the Presi- maybe high-profile aspect of this bill, ference. The discretionary budget au- dent’s accural proposal. which is the Russian Leadership Con- thority will result in new outlays in Notes: Details may not add to totals due to rounding. ference that now has been expanded, as 2003 of $1.935 billion. When outlays Prepared by majority staff, 07–25–02. Chairman Durbin has indicated, to in- from prior-year budget authority are clude other countries. taken into account, discretionary out- Mr. MCCAIN. Mr. President, I thank During the Fourth of July break, I lays for the Senate bill total l$2.547 bil- the managers of this bill for their hard was in Russia. This was the fourth time lion in 2002. work in putting forth this legislation

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7339 which provides Federal funding for the All these changes in the amendment The PRESIDING OFFICER. Is there legislative branch. have been requested by the new Chief further debate? In reviewing this bill to determine of Capitol Police, Terry Gainer, and Without objection, the amendment is whether it contains items that are low- the Capitol Police Board. agreed to. priority, unnecessary, wasteful, or Let me say briefly how proud we are The amendment (No. 4321) was agreed have not been appropriately reviewed that Terry Gainer is the new Chief of to. in the normal, merit-based Police. Those of us from Illinois and Mr. DURBIN. Madam President, I prioritization process, I applaud the Chicago know Terry Gainer well. He is move to reconsider the vote by which Appropriations Committee for their a former member of the Chicago Po- the amendment was agreed to. fiscal restraint in including a minimal lice, legal counsel for the Chicago Po- Mr. BENNETT. I move to lay that number of such items. lice Department, and superintendent of motion on the table. For this legislation, only two local- the Illinois State Police. He came to The motion to lay on the table was ity-specific earmarks appear to be in- Washington, DC, was second in com- agreed to. cluded. The bill itself includes $200,000 mand in this the Capital City, and was AMENDMENT NO. 4322 for Southern Illinois University for the then recruited to undertake this im- Mr. DURBIN. Madam President, I purpose of developing a permanent portant responsibility. I am certain he send an amendment to the desk. commemoration of the Lewis and is going to do an excellent, professional The PRESIDING OFFICER. The Clark Expedition. And an amendment job considering the new challenges fac- clerk will report. to this bill that was adopted on the ing this department. The assistant legislative clerk read Senate floor provides $500,000 for the The new authorities in the amend- as follows: Alexandria Museum of Art and the New ment authorize them to hire new offi- The Senator from Illinois [Mr. DURBIN], for Orleans Museum of Art for activities cers without regard to age. There are himself, Mr. COCHRAN, and Mr. BENNETT, pro- relating to the Louisiana Purchase Bi- technical corrections to existing au- poses an amendment numbered 4322. centennial Celebration. thorities regarding recruitment and re- Mr. DURBIN. Madam President, I ask How refreshing it would be if the Ap- location bonuses and premium pay for unanimous consent that reading of the propriations Committee would dem- unscheduled overtime. It also includes amendment be dispensed with. onstrate the same fiscal responsibility technical corrections to the committee The PRESIDING OFFICER. Without they showed in preparing this legisla- bill regarding the consolidated dis- objection, it is so ordered. tion in every one of the remaining ap- bursing function for the Capitol Police, The amendment is as follows: propriations bills. Unfortunately, this salaries, appropriations. All of those (Purpose: Provide funding for the bill is the exception to the rule, be- are technical in nature, and I urge the Congressional Award Act) cause, as evidenced by the recently adoption of the amendment. On page 28, line 11, strike ‘‘$108,743,000’’ and passed supplemental appropriations Mr. BENNETT. Madam President, as insert ‘‘$108,243,000’’. bill, the runaway pork-barrel gravy indicated by my cosponsorship of the On page 63, insert between lines 10 and 11 train shows no signs of slowing down amendment, I endorse what Chairman the following: SEC. 312. TITLE II OF THE CONGRESSIONAL DURBIN has said and urge the Senate to on Capitol Hill. AWARD ACT. We must remember that while the adopt the amendment. There are appropriated, out of any funds in amounts associated with each indi- The PRESIDING OFFICER. Is there the Treasury not otherwise appropriated, vidual earmark may not seem extrava- further debate on the amendment? $500,000, to remain available until expended, gant, taken together they represent a Without objection, the amendment is to carry out title II of the Congressional serious diversion of taxpayers’ hard- agreed to. Award Act 92 U.S.C. 811 et seq.). earned dollars at the expense of numer- The amendment (No. 4320) was agreed Mr. DURBIN. Madam President, this ous programs that have undergone the to. amendment which we are currently appropriate merit-based selection proc- AMENDMENT NO. 4321 considering provides $500,000 for the re- ess. During this time of mounting defi- Mr. DURBIN. Madam President, I cently reauthorized Congressional cits, we must be more prudent about send an amendment to the desk. Award Act offset by the reduction in where we devote limited fiscal re- The PRESIDING OFFICER. The the budget of the Architect of the Cap- sources. I urge all my colleagues to clerk will report. itol. I urge its adoption. curb the habit of directing hard-earned The assistant legislative clerk read Mr. BENNETT. Madam President, I taxpayer dollars to locality-specific as follows: have no objection to this amendment special interests. The Senator from Illinois [Mr. DURBIN], for as illustrated by my cosponsorship. The PRESIDING OFFICER. The Sen- Ms. LANDRIEU, proposes an amendment num- The PRESIDING OFFICER. Is there ator from Illinois. bered 4321. further debate? AMENDMENT NO. 4320 Mr. DURBIN. Madam President, I ask Without objection, the amendment is Mr. DURBIN. Madam President, I unanimous consent that reading of the agreed to. send to the desk an amendment on be- amendment be dispensed with. The amendment (No. 4322) was agreed half of myself and Senator BENNETT The PRESIDING OFFICER. Without to. and ask for its immediate consider- objection, it is so ordered. Mr. DURBIN. Madam President, I ation. The amendment is as follows: move to reconsider the vote. The PRESIDING OFFICER. The (Purpose: To set aside funds for activities re- Mr. BENNETT. I move to lay that clerk will report. lating to the Louisiana Purchase Bicenten- motion on the table. The legislative clerk read as follows: nial Celebration) The motion to lay on the table was On page 44, line 24, before the period, insert The Senator from Illinois (Mr. DURBIN), for agreed to. the following: ‘‘: Provided further, That, of himself and Mr. BENNETT, proposes an AMENDMENT NO. 4323 the total amount appropriated, $500,000 shall amendment numbered 4320. remain available until expended and shall be Mr. DURBIN. Madam President, I Mr. DURBIN. I ask unanimous con- equally divided and transferred to the Alex- send an amendment to the desk. sent the reading of the amendment be andria Museum of Arts and the New Orleans The PRESIDING OFFICER. The dispensed with. Museum of Art for activities relating to the clerk will report. The PRESIDING OFFICER. Without Louisiana Purchase Bicentennial Celebra- The assistant legislative clerk read objection, it is so ordered. tion’’. as follows: (The amendment is printed in today’s Mr. DURBIN. Madam President, the The Senator from Illinois [Mr. DURBIN], for RECORD under ‘‘Text of Amendments.’’) amendment would provide $500,000 himself and Mr. SPECTER, proposes an Mr. DURBIN. This amendment re- within the Library of Congress appro- amendment numbered 4323. lates to the Capitol Police. It will en- priations for activities related to the Mr. DURBIN. Madam President, I ask hance their ability to recruit and re- Louisiana Purchase Bicentennial Cele- unanimous consent that reading of the tain officers as they struggle to in- bration. I urge its adoption. amendment be dispensed with. crease their strength while losing offi- Mr. BENNETT. Madam President, I The PRESIDING OFFICER. Without cers to other law enforcement agencies. have no objection to this amendment. objection, it is so ordered.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7340 CONGRESSIONAL RECORD — SENATE July 25, 2002 The amendment is as follows: I want to take a brief period of time in this position or in any capacity, I (Purpose: To provide for a pilot program for to tell the two managers of this bill will continue to strive for that goal. mailings to town meetings) how impressed I am and how grateful I I believe pending before us now is the On page 5, line 26, insert before the period am for their recognition of the Capitol amendment relative to the account for ‘‘, of which up to $500,000 shall be made avail- Police. There has never been a time, in mailing of town meeting notices, which able for a pilot program for mailings of post- my opinion, where we have recognized Senator SPECTER of Pennsylvania has al patron postcards by Senators for the pur- the dedication of the Capitol Police as asked us to include. pose of providing notice of a town meeting it is recognized in this bill. I yield the floor. by a Senator in a county (or equivalent unit We went through a ceremony yester- The PRESIDING OFFICER. The Sen- of local government) with a population of day where we placed roses on the table ator from Pennsylvania. less than 250,000 and at which the Senator Mr. SPECTER. Madam President, at will personally attend: Provided, That any in front of the pictures of the two fall- amount allocated to a Senator for such mail- en police officers—Gibson and Chest- the outset, I thank my distinguished ing shall not exceed 50 percent of the cost of nut. When we walk in this building colleagues, the Senators from Illinois the mailing and the remaining cost shall be every day, these dedicated men and and Utah, for holding this matter until paid by the Senator from other funds avail- women are standing there, a lot of my arrival. I came as soon as I finished able to the Senator: Provided further, That times not doing a lot, but every day my round of questioning of the Attor- not later than October 31, 2003, the Sergeant they are there waiting to take bullets ney General, who is currently before at Arms and Doorkeeper of the Senate shall for us or for anyone who comes into the Judiciary Committee. submit a report to the Committee on Rules This amendment provides for $500,000 and Administration and Committee on Ap- this building which they are pro- tecting. They do such good work. to be made available for a pilot project propriations of the Senate on the results of for mailings of postal patron postcards the program’’. The Capitol Police Force is well by Senators for the purpose of pro- Mr. DURBIN. Madam President, this trained. They are as well trained as any police force in the country. As a viding notice of town meetings in coun- amendment, on behalf of Senator SPEC- result of this legislation, they will be ties with populations of less than TER, provides up to $500,000 in the mis- better trained, better paid, and better 250,000. cellaneous items account of the Senate recognized for the work they do. The reason for this amendment is to for a pilot program and additional I want this RECORD spread with the stimulate town meetings by Senators funds for town meeting notices, an appreciation of the Senate and the peo- and to make us more aware as a body, issue which Senator SPECTER has pur- ple of Nevada and every other State individually and collectively, of what sued for quite some time. where people come here and feel so safe our constituents are thinking. In the fiscal year 2002 appropriations, as a result of the Capitol Police. As I Until fairly recently, there was no we provided separate funds for town said, I want the RECORD spread with limitation on mail and notices could be meeting notices subject to a Rules the appreciation of the American peo- sent out to the largest of counties at a Committee authorization, which has ple for the work the Senator from Illi- very considerable expense as a matter not yet occurred. nois and the Senator from Utah have of record, so that the public knew how I would like to point out that Sen- done on this legislation. It is land- much a Senator was spending. Those ators, on average, spend less than half mark. It is so appreciated by me and figures were published with some fre- the amount budgeted for franked every Capitol policeman. And anyone quency as to the mail expense ac- mail—less than $3 million out of the who knows anything about this legisla- counts. $7.6 million budget. In addition, last tion—or could learn—would also feel My own thinking is that there is no year only a small number of Senators the same as I do. better use of our expense accounts than used town meeting notices. No Mem- Mr. DURBIN. Madam President, I to communicate with our citizens ber, other than the Senator from Penn- thank my colleague from the State of about where we go personally to hear sylvania, has indicated the budget is Nevada for those kind words on behalf what is on their minds. Within the inadequate. It doesn’t appear that we of myself and Senator BENNETT. I am beltway, we are very insulated. In fact, have a significant problem, but in glad he made reference to the memo- people beyond the beltway do not even order to determine whether or not rial service yesterday for Officers Gib- know what the ‘‘beltway’’ expression there is an interest in promoting town son and Chestnut, because it is a sad means. However, when we talk to each meetings with notices attendant there- reminder of the important responsi- other, and do not communicate with to, and how widespread that problem bility that the Capitol Police have un- our constituents, we do not have a feel might be, we have agreed to this pilot dertaken on behalf not only those of us for what is going on. The basis of rep- program for 1 year. who are privileged to work in this resentative democracy is that we are We have requested that by the end of building but the thousands and thou- reflecting the will of our constituents. the next fiscal year the Sergeant at sands of visitors who come here for the In order to do that, we have to know Arms and the Doorkeeper of the Senate thrill of a lifetime to see this seat of what it is. shall submit a report to the Committee democracy. Those two men gave their When I say reflecting the will of the on Rules and Administration and the lives in service to our country. We constituents, I do not mean taking a Committee on Appropriations. should be reminded at all times that public opinion poll, or even if there is Mr. REID. Madam President, if I may all the members of the Capitol Police an enormous preponderance of the con- take a few minutes, I will be very brief. Force are prepared to do the same. stituents, to follow that without ques- I wish to say a few things while the There is no stronger advocate for the tion. I think Edmond Burke, centuries two managers of this bill are here. I Capitol Police than Senator HARRY ago, laid down the proper standard, had the opportunity in several Con- REID of Nevada. He speaks to me annu- that an elected official in a representa- gresses to chair the Appropriations ally when this issue comes up to make tive democracy owes to his constitu- Legislative Branch Subcommittee. I certain we have not overlooked any ents his independent judgment. One of can truly say that it was one of the element in terms of modernizing and the factors Edmond Burke enumerated most rewarding experiences I have had professionalizing the Capitol Police. He was the concerns, sensibilities, and as a Member of Congress. is simply their strongest voice on the views of the constituent. I understand how important the Li- Senate floor. These town meetings are very dif- brary of Congress is to our country. We I might also add that a close second ficult affairs, perhaps even categorized have certainly learned that with this is Senator WELLSTONE of Minnesota, as rough affairs. I have done 19 of them bill. We were going through the years who has a close, personal friendship during the month of July, mostly dur- and there were cuts. No one wants to with so many of the members of the ing the Fourth of July recess. cut the Library of Congress. It is so im- Capitol Police. He comes to me regu- My practice, which I know is stand- portant to the people of our States and larly with observations that really ard for many of my colleagues who un- of our Nation. Of the 13 appropriations come from the heart. I thank him for dertake these meetings, is to make a bills, this one gets a lot of attention. It his inspiration as well. very short introductory statement, is as important as any of the appro- I think this bill meets the needs of limiting it to five, six, or seven min- priations bills. the Capitol Police. And as long as I am utes, and then to respond to questions.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7341 The questioning segment is the hot revelation. For the major banks to be Mr. DURBIN. Madam President, I spot. I know the Presiding Officer and complicit, at least according to public thank the Senator from Pennsylvania. the other Senators in the Chamber, and reports on Enron, is beyond shocking. If there is no further debate on this any who may be watching on C-SPAN, We really rely, in our society, on the amendment, I urge its adoption. know that because we have all had the accountants, the attorneys, and the The PRESIDING OFFICER. Is there experience. bankers, who are really in a quasi-fidu- further debate on the amendment? This is not puff mail which you send ciary, if not strictly fiduciary capacity, Without objection, the amendment is out, where the effort has been made to to catch these matters, and especially agreed to. limit what a Senator can do, sending where it is so lucrative. For them to The amendment (No. 4323) was agreed pieces extolling the virtues of the indi- yield to the pressure to cut corners and to. vidual Senator. This is an occasion to sanction fraud in order to keep a Mr. DURBIN. I move to reconsider where you are really on the line and customer or to please a customer is the vote. have to identify and justify your votes just really beyond the pale. Mr. BENNETT. I move to lay that and your positions. We have had a lot of problems in the motion on the table. Beyond the votes and existing posi- long history of this country, however, I The motion to lay on the table was tions, the town meetings acquaint a think this is one of the most extraor- agreed to. Senator with many issues the Senator dinary. The day before yesterday, we AMENDMENT NO. 4324 does not know about, and that is the found out about the bankers being Mr. DURBIN. Madam President, I educational process. So it is not only a complicit, or allegedly complicit, with send an amendment to the desk on be- matter of responding to constituents, Enron. We see the SEC investigation half of Senator DODD and ask for its rather it is learning from constituents disclosed yesterday, as stated in this immediate consideration. what the new issues are. morning’s press, about AOL having The PRESIDING OFFICER. The Since I completed the town meetings fraudulent transactions and boosting clerk will report. in July, I can say to my colleagues their profits fraudulently. It is a sur- The assistant legislative clerk read that there is great interest out there in prise to me that an entity as sophisti- as follows: cated as Time Warner would be taken Pennsylvania—and I believe Pennsyl- The Senator from Illinois [Mr. DURBIN], for vania is a very representative State in by corporate chicanery. Mr. DODD, proposes an amendment numbered with more than 12 million people— So these are matters which are very 4324. much on the minds of the American about the need for a prescription drug Mr. DURBIN. Madam President, I ask people. You have to go to a town meet- program. The seniors are really hurt- unanimous consent reading of the ing and take the temperature of the ing. Many instances were called to my amendment be dispensed with. people to really see how very serious it attention by individuals who have low The PRESIDING OFFICER. Without income with very high pharmaceutical is. This amendment provides that objection, it is so ordered. bills. This is something that is really The amendment is as follows: $500,000 will be used to send out postal at the very top of the agenda. Enron patron notices, providing that the Sen- (Purpose: Providing public safety, exception and corporate scandals, prescription ator pays 50 percent. So we have a good to inscriptions requirement on mobile of- drugs, and terrorism were the three fices) co-pay provision here. Senators are not major subjects I heard about in the On page 9, between lines 17 and 18, insert: going to be inclined to send these post- town meetings. SEC. . PUBLIC SAFETY EXCEPTION TO INSCRIP- al patron notices out without having to I am hopeful—and I have talked to TIONS REQUIREMENT ON MOBILE pay for one-half of the cost themselves, authors of the bills on both sides—we OFFICES. with the critical requirement that the will come to an agreement here and we (a) IN GENERAL.—Section 3(f)(3) under the Senator has to appear. The limitation heading ‘‘ADMINISTRATIVE PROVISIONS’’ will legislate on this subject and let it is put on counties with fewer than in the appropriation for the Senate in the go to conference with the House of 250,000 people because if you send it to Legislative Branch Appropriation Act, 1975 (2 Representatives. I believe our job is to a county such as Allegheny County, U.S.C. 59(f)(3)) is amended by adding at the reconcile the differences. While we are end the following flush sentence: which has Pittsburgh, or Philadelphia talking about substantial sums of County, it is an enormous expense. We ‘‘The Committee on Rules and Administra- money, in the overall picture, an ac- can communicate with our constitu- tion of the Senate may prescribe regulations to waive or modify the requirement under commodation is better than having ents in those major metropolitan areas Senators adhere strictly to some top- subparagraph (B) if such waiver or modifica- in ways other than by coming to the tion is necessary to provide for the public dollar figure and not go beyond that. I county. believe there is a majority in the Sen- safety of a Senator and the Senator’s staff However, if you talk about Potter and constituents.’’ ate to reach an accommodation some- County, in north central Pennsylvania, (b) EFFECTIVE DATE.—The amendment where between what the proposed bills on the northern tier abutting New made by this section shall take effect on the have specified. My soundings are that a York State, or you talk about Fulton date of enactment of this Act and apply to prescription drug program is some- County, on the Maryland border, those the fiscal year that includes such date and thing the American people not only folks really like to see you. You send each fiscal year thereafter. want, but really need. out a notice, and you get 35 people, and Mr. DURBIN. Madam President, this Along the same line, I sense over- you sit and talk to them. I was in For- amendment amends title II of the U.S. whelming anger about what is hap- est County, and we did not get 35 peo- Code to authorize the Rules Committee pening in corporate America and what ple, however, I learned a lot from being to establish regulations to waive or is happening with Enron and in Forest County. I think the people in modify requirements on mobile offices WorldCom, which were the subjects Forest County learned something, too. for public safety reasons. during the Fourth of July recess. This So I thank my colleagues for accept- Mr. BENNETT. Madam President, I is not some theoretical matter about ing this amendment. We had it in last am in favor of this amendment. fraud and criminal conduct that ought year at a higher figure, subject to au- Mr. DURBIN. Madam President, if to be prosecuted, this is a matter thorization. We could not get the hear- there is no further debate on the which is reaching Mr. Average Amer- ing worked out. However, I know that amendment, I urge adoption of the ican, Mr. Lower Income American, re- this is a test case. I am going to be en- amendment. garding retirement funds, which have couraging my colleagues to do these The PRESIDING OFFICER. The been fractionalized. I am glad to see town meetings, so when the audit question is on agreeing to the amend- the conferees agreed on a program yes- comes up, my name is not the only ment. terday, with the Senate bill taking name listed as a recipient. We will Without objection, the amendment is dominance. await the results of the audit on the agreed to. Even with the work I have had as a pilot program to see just how effective The amendment (No. 4324) was agreed prosecutor on fraud cases and business and important this program is. to. fraud, I am surprised at what has hap- Again, I thank my colleagues and Mr. DURBIN. I move to reconsider pened here. Every day there is a new thank the Chair, and I yield the floor. the vote.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7342 CONGRESSIONAL RECORD — SENATE July 25, 2002 Mr. BENNETT. I move to lay that ferences of opinion on the substance of fact that the Senate Finance Com- motion on the table. this legislation, I commend Senators mittee would have most likely have re- The motion to lay on the table was MCCAIN and SCHUMER, KENNEDY and jected any Democratic Medicare drug agreed to. EDWARDS for their efforts in this area. proposal in favor of the Tripartisan ap- Mr. DURBIN. Madam President, un- I especially wish to recognize the ef- proach. less the Senator from Utah has any forts of Senators KENNEDY, EDWARDS, To my great disappointment, al- further amendments or modifications, I and COLLINS for their work, which was though not anyone’s great surprise, we do not believe there are any additional almost a complete rewriting of the failed to arrive at the 60-vote con- actions on the bill. McCain-Schumer bill. Let me also has- sensus required to enact a Medicare Mr. BENNETT. Madam President, ten to commend Senators GREGG and drug bill in the Senate. Make no mis- one of the pleasures of handling this FRIST for working to improve the bill take about it. This is a great failure for bill is that there are almost always no that emerged from the HELP Com- the American people because for two additional amendments or complica- mittee and for their leadership during years now we have set aside $300 billion tions. the debate. in the federal budget to be spent over Mr. DURBIN. I thank the Senator Mr. President, last week, I provided a 10 years to provide prescription drug from Utah and yield back all my time. brief summary of the existing statute coverage for Medicare beneficiaries. The PRESIDING OFFICER. Does the that S. 812 seeks to amend, the Drug We have all heard from elderly con- Senator from Utah yield back his time Competition and Patent Term Restora- stituents many of whom live on lim- as well? tion Act of 1984. I happen to know ited, fixed-incomes—who have had sub- Mr. BENNETT. The Senator from something about this law, which is stantial difficulties in paying for pre- Utah yields back all his time. commonly referred to as the Waxman- scription drugs. Rather than rise to the The PRESIDING OFFICER. All time Hatch Act, or alternatively, the Hatch- occasion and make good on our prom- is yielded back. Waxman Act. ise to rectify that situation, and we are The question is on agreeing to the Last week, I gave an overview of my letting this abundant opportunity slip committee amendment. concerns with the HELP Committee between our fingers. The committee amendment was legislation. With those comments in I am very disappointed with the out- agreed to. mind, today, I want to delve further come of the votes Tuesday. It is my The PRESIDING OFFICER. Under into the details of the HELP Com- hope that we can find a way to come the previous order, the question is on mittee re-write of S. 812 the bill origi- together on the important issue of a Medicare drug benefit for our seniors. the engrossment of the amendments nally introduced by Senators MCCAIN At a minimum, we should use the and third reading of the bill. and SCHUMER. $300 billion already in the budget to ex- The amendments were ordered to be The central components of S.812 are pand drug coverage for those seniors engrossed and the bill to be read a aimed at rectifying concerns raised in who need the most help. What we third time. recent years over two features of the should not do is enact an expensive, The bill was read the third time. 1984 law: first, the statutory 30-month government-run scheme that could The PRESIDING OFFICER. The Sen- stay granted to a pioneer firm’s facing bankrupt our country and plunge our ator from Nevada. legal challenges to its patents by ge- economy further into the abyss when Mr. REID. Madam President, I ask neric competitors; and, second the 180- the government usurps what should le- unanimous consent that the vote on day period of marketing exclusivity gitimately be a private-sector-run ben- passage of H.R. 5121, the legislative awarded to generic drug firms that suc- cessfully challenge a pioneer firm’s efit. branch appropriations bill, occur at The collapse of any 60-vote consensus patents. 1:50 p.m. today, with rule XII, para- on the Medicare drug benefit does not During debate on S. 812, there have graph 4 being waived. show the public the type of bipartisan been a number of comments indicating The PRESIDING OFFICER. Without spirit that voters across the country that there is a substantial problem objection, it is so ordered. say they prefer, in poll after poll after with these two provisions. That may or f poll. may not be the case. One great dis- And so, we move back to the impor- MORNING BUSINESS advantage of holding the floor debate tant, if more mundane, matters in S. Mr. REID. Madam President, I ask at this time is that we do not have the 812. unanimous consent that there be a pe- benefit of an extensive Federal Trade One of the real marvels of this debate riod of morning business with Senators Commission survey of the pharma- is that we have finally found out who allowed to speak therein for a period ceutical industry that focuses on pre- the bad guys are in this debate. not to exceed 10 minutes each up until cisely these two issues that go to the It is not the government that has 1:50 today, the time set for the vote, heart of S. 812 and the substitute failed to make good on the promise to and the time to be equally divided and adopted by the HELP Committee. The provide needy seniors with pharma- controlled in the usual form between results of this long-awaited, extensive, ceutical coverage. the two leaders or their designees. industry-wide FTC survey are expected No, it’s the pharmaceutical industry, The PRESIDING OFFICER. Without in a few weeks. an industry that is working day and objection, it is so ordered. I have stated on numerous occasions night to bring us the medicines, the Mr. REID. I suggest the absence of a that before this body undertakes a sub- miracle cures that seniors seek. quorum. stantial rewrite of provisions central I just had no idea that is who was The PRESIDING OFFICER. The to the Hatch-Waxman Act, we should going to be blamed. clerk will call the roll. have the benefit of the FTC study and This game plan comes right out of The assistant legislative clerk pro- its implications. the Clintoncare play-book. As you hear ceeded to call the roll. The Senate could have taken a more attack after attack on the drug compa- Mr. HATCH. Mr. President, I ask prudent course. The Senate could have nies, I just want all of you listening to unanimous consent that the order for waited for the FTC report. We—and by this debate to know that a similar tac- the quorum call be rescinded. we I specifically include the Senate Ju- tic was employed by the Democrats The PRESIDING OFFICER. Without diciary Committee—could have held when they tried to foist Clintoncare on objection, it is so ordered. hearings on the FTC study, evaluated a very unreceptive public back in 1993 f the data, and then discussed, debated, and 1994. and refined the actual, now barely two- Here is how David Broder and Haynes GREATER ACCESS TO week old, legislative language that is Johnson, two highly respected journal- PHARMACEUTICALS ACT pending on the floor today. ists, described the tactics of the Clin- Mr. HATCH. Mr. President, I rise to But this was not possible due to the ton White House in trying to pass its speak on the pending legislation, S. tactical decision of the Majority to dis- too grand health care reform plan: 812, the Greater Access to Pharma- pense with the regular order so as to This quote is from ‘‘The System,’’ a ceuticals Act. Even if I had major dif- minimize the politically-inconvenient book by Haynes Johnson and David

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7343 Broder, two leading political writers in cialized raw materials are needed to make a the past 18 years since Waxman-Hatch this town, both of whom write for the little more than 2,200 pounds of the drug. In was adopted. We have seen enormous Washington Post. Neither of them all, Roche has invested $490 million in T–20’s strides in the treatment of heart dis- would be considered, by any stretch of development and manufacturing. ease, diabetes, arthritis, Alzheimer’s the imagination, conservative. This is Let us not be too quick to charac- and many others, including the 200 new what they had to say in this book terize as villains and enemies those sci- drugs that have been approved to treat called ‘‘The System,’’ talking about entists and companies who are working lower prevalence, so-called orphan dis- the American way of politics and how every day to overcome dread diseases eases another bill that I helped author. health care policy is formed: like AIDS. Think of the imagination I am proud to have been an author of In the campaign period, Clinton’s political and expertise required to design all 106 the Orphan Drug Act that has given advisors focused mainly on the message that, chemical reaction required to make T– hope to so many American families. for ‘‘the plain folks, it’s greed—greedy hos- 20. How many times must they have If our Nation is going to develop di- pitals, greedy doctors, greedy insurance failed to come up with the correct agnostic tests, treatments, and vac- companies. It was an us versus them issue, chemical pathway? cines to prevent and counter attacks of which Clinton was extremely good at ex- I might add, as Senator FRIST point- bioterrorism and potential chemical or ploiting. ed out on the floor last week, that in- even nuclear terrorism, just whom do This is the second quote: fectious disease experts like Dr. Tony you think is going to develop these Clinton’s political consultants—Carville, Fauci at NIH have said that despite the products? I will tell you who. It will be Begala, Grunwald, Greenberg—all thought substantial promise of T–20, there is those ‘‘villains’’ in the pharmaceutical ‘‘there had to be villains.’’ At that point, the still more work to be done on this industry, in partnership with govern- insurance companies and the pharmaceutical drug. Specifically, it is imperative to companies became the enemy. ment and academic researchers, unless develop a tablet form of this currently As you can see, here are two liberal we hamper their ability to do so, if we intravenous preparation if we will be do not watch ourselves carefully on political writers who summarized the able to effectively use the product in Clinton health plan. this Legislation. the Third World. At some point we must put aside this Villains . . . enemies all this sounds Some in this debate have minimized familiar in this debate. So, I will stipu- one-dimensional, simplistic vilification the importance of product formulation of the pharmaceutical industry and ex- late for the purpose of this debate that patents and have suggested that such the pharmaceutical industry is the des- amine more closely the actual sub- patents should not be eligible for the stance of the pending legislation. ignated villain. 30-month stay. But public health ex- It strikes me as curious at least that Are the PhRMA companies always perts such as Dr. Anthony Fauci one of right? No, they are not, and neither are the sector of the economy that plows the leading experts in the world, are back the highest portion of its reve- the generic companies always right. telling us that the formulation of drugs Hatch-Waxman created a delicate bal- nues back into research—and research like T–20 is critical. Who is to say that on life-threatening diseases no less—is ance so they were competitive against the steps in addition to the 106 steps al- each other, and it has worked very treated with such disdain, at times ready painstakingly identified to make even contempt, on the floor of the Sen- well. the IV preparation necessary to make a It is my strong preference to conduct ate. tablet form of the drug are not worthy Mr. President, from what has been the debate over amending the Hatch- of the same protection afforded other said on the floor of the Senate you Waxman Act with our eyes focused on pharmaceutical patents since 1984? would think that this industry is try- the policies, not the politics. And if it turns out that such a formu- As I said last week, the pending legis- ing to cause cancer, not trying to find lation patent issues more than 30-days cures. lation, S. 812, addresses important and after FDA can one-day approve a new complex issues of patent law, civil jus- I note that Senator KENNEDY has sug- drug application for a tablet form of T– gested our nation’s biomedical research tice reform and antitrust policy. A 20, why should this patent be given less establishment has not really made strong case could be made that Senate procedural protection than other re- much progress over the past few dec- consideration of this bill would be im- lated patents? But this differential ades in terms of developing new drugs. proved if the Judiciary Committee treatment of patents is exactly what I think the facts speak otherwise. were given the opportunity to study could occur if we adopt the pending For example, consider the array of the legislation, review the Federal legislation. medicines that have been developed to Trade Commission report, and make its Mr. President, the Hatch-Waxman treat HIV infection and the complica- voice heard in this debate. It seems un- Act has been called one of the most im- tions of AIDS. Through the unique pub- likely that anything resembling this portant consumer bills in history. It lic/private sector partnership that com- process will unfold given the decision has helped save consumers, by the Con- prises the U.S. biomedical research en- to rush the HELP Committee patent, gressional Budget Office reckoning, $8 terprise, AIDS is being transformed antitrust, civil justice reform bill to billion to $10 billion every year since from an invariably fatal disease into a the floor of the Senate. 1984. It created the modern generic chronic condition that we are so hope- As a threshold matter, it seems to drug industry by creating this delicate ful one day will have a cure. me that before we adopt S. 812, we balance between the pioneer research These advances do not come easily or should be certain that this bill is con- companies, and the generic companies on the cheap. I would note the exciting sistent with the longstanding goals of that could readily copy drugs under reports from the recent International the statute S. 812 seeks to amend, the Hatch-Waxman. The scientific work AIDS meeting in Barcelona concerning Drug Price Competition and Patent that had taken R & D firms up to 15 the new class of AIDS medications rep- Term Restoration Act. years, $800 million and at least 5,000 to resented by the new drug, T–20. Unlike Let me remind my colleagues, the 6,000 failed drug companies for each many of the current anti-retroviral goals of this law, passed in 1984, are successful new drug could be used by medications like AZT that seek to in- twofold: general firms under the 1984 law. hibit the replication of the HIV virus, First, to create a regulatory pathway I might add, the Hatch-Waxman Act T–20 attempts to block entry of the that allows the American public to has brought the generic industry from virus into healthy cells. gain access to more affordable generic Here is what one press account has little over 15 percent of the market- drugs; and, said about this still unapproved, but place to 47 percent as we speak, and it Second, to create incentives for man- highly promising drug: is going up all the time. That is what ufacturers of pioneer drug products to we thought should happen. see that the American public has ac- But it takes 106 steps more than 10 times We are at $490 million and still the usual number of chemical reactions to cess to the latest, cutting-edge medi- make the lengthy peptide, making produc- counting for this still unapproved cines. tion a serious factor in its price. Roche re- promising new AIDS drug, T–20. As I described last week, the 1984 law furbished a plant in Boulder, Colorado, just Remarkable progress in the field of is a carefully balanced statute and con- to make T–20. Almost 100,000 pounds of spe- drug development has been made over tains features designed to accomplish

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7344 CONGRESSIONAL RECORD — SENATE July 25, 2002 these two somewhat conflicting goals. Some in this debate have character- ticular generic drug application is filed This tension is inherent because of the ized that both of these problems are at with the agency, which cannot occur competing nature of the desire, on one epidemic proportions. While I think under the law until at least four years hand, to develop breakthrough drugs there is evidence that problems have have elapsed in the case of new chem- and, on the other hand, to make avail- occurred and it is important that we ical entities. At a minimum, I do not able generic copies of these pioneer work to modify the law so that the 30- see what justification exists to dif- products. month stay can not be misused in the ferentiate, for the purpose of the 30- As legislation is crafted to address next few years when so many block- month stay, patents issued prior to the problems that have arisen up in re- buster drugs come off-patent we should four years after the FDA first approves cent years with respect to the Wax- all take a close look at the FTC report a drug. man-Hatch law, we must be careful not before we conclude that as a general I would also add that in most Euro- to devise a remedy that upsets the deli- matter the entire research-based phar- pean nations and in Japan, it is my un- cate balance of the law. maceutical industry has systemati- derstanding that the law provides a 10- I am concerned that the manner in cally abused the 30-month stay. That is year period of data exclusivity—inde- which the HELP Committee substitute just a speculation at this point until pendent of patent term before a generic tries to fix the two most widely cited we see all the data. copy may be approved for marketing. shortcomings of the 1984 law may, in I will be very interested in what the The public policy behind these periods fact, disturb the balance of the statute FTC reports on a number of issues—the of data exclusivity is to recognize the by, in some areas, overcorrecting and, frequency of use of multiple 30-month fact that in approving generic drugs, in other areas, undercorrecting for the stays; stays stemming from late issued the government regulatory agency is observed problems. patents; the outcome of litigation on relying upon the extensive, expensive— and prior to enactment of Hatch-Wax- Specifically, while the manner in the merits when such multiple stays man, generally proprietary, trade se- which the Edwards-Collins HELP Com- have been employed; and 11th-hour mittee substitute addresses the 30- cret—safety and efficacy data supplied stays exercised due to late-issued pat- month stay issue represents a major by the pioneer firm. ents. improvement over McCain-Schumer At any rate, as I explained last week, It seems to me that we should be current U.S. law does not even allow a bill, I am afraid though, the 30-month highly skeptical whenever a patent is stay language represents a case of generic drug applicant to challenge a listed in the official FDA records, pioneer firm’s patents until four years overcorrection. called the Orange Book, years after the Last Thursday, I gave a short sum- have elapsed. Why shouldn’t, for exam- FDA approved the drug. One would mary of the key provisions of the ple, a formulation patent issued one have to think that all key patents Hatch-Waxman Act. It only took me 1 year after a drug is approved not be would have been at least applied for hour and 32 minutes. After providing protected by the 30-month stay if the this background and context, I ex- prior to the end of the lengthy FDA re- challenge cannot be made for 3 more plained why I thought that the provi- view. years? We all know of the now infamous sions of the pending legislation relat- The 30-month stay must be under- case of the drug, Buspar. An attempt ing to patent rights and the 30-month stood in the context of the complex- was made to take advantage of the 30- stay went too far. Let me reiterate my ities of the 1984 Waxman-Hatch law month stay by listing in the Orange concerns with the 30-month stay. that generally provides 5 years of mar- As has been stated by many during Book a new patent of the metabolite keting exclusivity to pioneer drug this debate, a pioneer drug patent hold- form of the active ingredient of the products as part of the recognition for er, whose patents are under challenge drug literally in the last day before the allowing the generic firms to rely on by a generic drug manufacturer, is ac- original patents were set to expire. A the pioneer’s expensive safety and effi- corded an automatic 30-month stay. Federal district court stepped in to cacy data. Moreover, I think that any This was not some giveaway to the in- limit the stay to four months, not 30- discussion of the 30-month stay is in- novator pharmaceutical industry. We months. The appellate court found, complete if it does not include the fact inserted this mechanism to protect the however, that this forced de-listing of that, under Hatch-Waxman, generic intellectual property of companies that the patent was improper. drug firms are given a unique advan- develop patented medications, compa- My opinion is that Congress, after tage under the patent code that allows nies, I might add, that were going to be getting the better understanding of the them to get a head start toward the afforded less intellectual property pro- facts that the FTC report can provide, market by allowing them to make and tections than any other industry as should address the consecutive stay use the patented drug product for the part of the 1984 law. We knowingly and last-minute stay problems. commercial and ordinarily patent in- added this provision because we wanted From what I know today, I am not fringing purpose of securing FDA ap- to give them a fair opportunity to de- prepared to conclude that the Edwards- proval and scaling up production. fend their patents. We know that pat- Collins substitute is a measured solu- Let me quickly review the general ent litigation is itself a risky endeavor tion to the cited problems. The bill rule against patent infringement that with the federal circuit court over- that passed the HELP Committee and is set forth in Title 35 of the United turning about 40 percent of the trial is pending on the floor would limit the States Code, section 271(a). It says: court decisions in some areas of patent 30-month stay to those patents issued . . . whoever without authority makes, uses, law. within 30-days of FDA approval of the offers to sell, or sells any patented invention The public policy purpose for this drug. The pending legislation contains . . . during the term of the patent . . . in- fringes the patent. stay is to allow time for the courts to major improvements over substantial determine the status of validity of drug elements of the McCain-Schumer bill, This is a clear, unambiguous protec- patents and/or to decide whether valid such as the language that would have tion of property rights, as it should be patents are, or are not, infringed by a completely eliminated the 30-month to protect the creative genius of Amer- generic drug challenger. stay in favor of a system that required ica’s inventors. That was the intent of the law. Many case-by-case application of injunctive Section 271(e) of title 35 contains the believe—and I share that view—that relief. It is also better than the lan- so-called Bolar amendment that was the 30-month stay provision has come guage the HELP Committee Chairman added to the patent code by the Hatch- to present problems in two areas: First, KENNEDY circulated briefly before the Waxman Act to create a special excep- later issued patents that trigger last mark-up that would have limited to 30- tion for generic drug manufacturers. minute 30-month stays; and, second, month stay to certain types of patents. Section 271(e)(1) states: multiple uses of the 30-month stay pro- As I laid out in detail last Thursday, It shall not be an act of infringement to vision in a consecutive, over-lapping given the facts available at this time, I make [or] use . . . a patented invention . . . solely for uses reasonably related to the de- manner that work to bar generic com- think a better policy may be to permit velopment and submission of information petition for as long as the litigation one, and only one, 30-month stay to under a federal law which regulates the man- can be made to drag on by lawyers who apply to all patents issued and listed ufacture, use, or sale of drugs or veterinary are paid by the hour. with FDA prior to the time a par- biological products.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7345 Essentially, this particular provision a private right of action, stating that forced to go to market upon a district I have just read gives generic drug the court could ‘‘see nothing in the court decision in a patent challenge manufacturers a head start over vir- Hatch-Waxman Amendments to alter’’ situation. That is why I am generally tually all other producers of generic the conclusion that private parties are sympathetic to the argument of ge- products. In other words, it gives the not authorized to bring suit to enforce neric manufacturers that current law generic industry a tremendous advan- the FDCA. should be overturned and any mar- tage. Normally, making and using a By seeking to create a private right keting exclusivity a generic firm might patented product for the purpose of se- of action, this provision represents a earn by beating a pioneer firm’s pat- curing regulatory approval would be a truly unprecedented step that runs ents should toll from an appellate clear case of patent infringement under contrary to 30 years of judicial inter- court decision. In the case of multiple section 271(a), but the Bolar Amend- pretation. I believe that this would cre- patents and multiple challengers, the ment—which overrode a 1984 Federal ate an unwise, and potentially dan- policy might have to be refined if the Circuit Court of Appeals decision that gerous precedent that could be used to result is that no generic product can precluded generic drug firms from justify future legislation authorizing reach the market within a reasonable using on-patent drugs to secure FDA private suits to enforce the numerous period of time. approval or gear up production, in and varied provisions of the FDCA. Al- As I pointed out, HELP Committee other words, the case overruled that though I understand—and am sympa- Edwards-Collins language is barely two right—allows the generic firms to vio- thetic to—the underlying rationale for weeks old, I am not alone in raising late customary patent rights because this provision, I simply do not think concerns about this new language. The we put it in Hatch-Waxman. Section that creating a private right of action Administration opposes this language. 271(e) is the Hatch-Waxman language. is an appropriate answer to the prob- The Statement of Administration Pol- The public policy purpose of the lems cited by the advocates of this pro- icy states, in part, that: Bolar Amendment meaning the Bolar vision. S. 812 would unnecessarily encourage liti- amendment provided by the Hatch- Second, as the Administration has gation around the initial approval of new Waxman Act is to allow generic drug succinctly stated: ‘‘this new cause of drugs and would complicate the process of makers to secure FDA approval and action is not necessary to address pat- filing and protecting patents on new drugs. come onto the market the day after ent abuses,’’ and may ‘‘unnecessarily The resulting higher costs and delays in the patent on the pioneer drug expires. encourage litigation’’ surrounding the making new drugs available will reduce ac- As I explained last week, there is a bal- approval of new drugs. I certainly cess to new breakthrough drugs. ance between the head start that the agree. Authorizing this new cause of That is important. Bolar Amendment gives to generic action will not effectively address the I look forward in the next weeks to manufacturers and the protection that alleged patent abuses. hearing the detailed comments from the 30-month stay gives pioneer firms Now, I want to emphasize here that I Administration experts on these mat- to litigate the validity of their patents. strongly support efforts to halt anti- ters as we get the FTC report. Given the unique head start that the competitive abuses of the patent laws We are also starting to hear from Bolar Amendment grants generic drug and the laws and regulations involving others on this new, substantially manufacturers over virtually all other the listing of patent information in the changed, language. Senator FRIST generic product manufacturer and the FDA ‘‘Orange Book.’’ I am willing to placed in the RECORD last week a letter other factors I have discussed, I ques- work with members from either side of from the Biotechnology Industry Orga- tion whether restricting the 30-month the aisle on this issue. However, I am nization that complains about the stay to only those patents issued with- convinced that creating a private right manner in which the bill undermines in 30-days of FDA approval is either of action will not only fail to stop the existing patent protection. necessary, fair, or wise. patent abuses at issue, but will likely I would just note that the organiza- Moreover, the HELP Committee bill have substantial unintended detri- tion representing our nation’s cutting contains file-it-or-lose-it and sue-on-it- mental effects on the drug approval edge biotechnology companies, BIO, ex- or-lose-it provisions as well as a new process. pressed great dissatisfaction with this private right of action which also act The file-it-or-lose-it provision that new bill language. The July 15th BIO to further diminish the value of phar- says patent rights are waived if each letter says in part: maceutical patents, or should say phar- new patent is not promptly filed with If enacted, these proposals would signifi- maceutical patents, to be more accu- FDA and the sue-on-it-or-lose-it provi- cantly erode the measures in Hatch-Waxman rate. sion that would result in the forfeiture to ensure an effective patent incentive for Let me first address my concerns re- of patent rights if a pioneer drug firm new drug development, and would create un- garding the creation of a private right does not sue within 45 days of being no- desirable precedents for sound science-based of action, and then move on to the seri- tified of a patent challenge should be regulations of drug products in the United ous and detrimental effects that the contrasted with current law for all States. file-it-or-lose-it and sue-on-it-or-lose-it other types of patents. Section 286 of BIO also has some sharp criticism of provisions would have on pharma- the federal patent code establishes a the patent forfeiture provisions set ceutical patent holders. six-year statute of limitations on seek- forth in the file-it-or-lose-it and sue- I have two fundamental concerns ing damages for patent infringement. on-it-or-lose-it clauses in the bill. BIO with authorizing a private cause of ac- Why should this usual six-year period says: tion that would allow applicants to be decreased to 45-days for pharma- This forfeiture will occur without com- bring declaratory actions to correct or ceutical patents? pensation, without a right of appeal and delete patent information contained in I should also note the section 284 of without any recourse. This provision is prob- the FDA ‘‘Orange Book.’’ the patent code explicitly authorizes ably unconstitutional, and in any event is First, over the past 30 years, the the courts to award treble damages in totally unconscionable. courts have explicitly held that no pri- patent infringement actions. This is a Also adding its voice to the debate vate right of action is authorized under strong signal that Congress wants to over this new, unvetted language is the the Federal Food, Drug, and Cosmetic protect intellectual property. We American Intellectual Property Law Act or ‘‘FDCA’’ e.g., ‘‘It is well settled should think twice when we are consid- Association. The AIPLA is a national . . . that the FDCA creates no private ering adopting measures, such as the bar association representing a diverse right of action.’’ In re: Orthopedic Bone Edwards-Collins language, that act to group of more than 14,000 individuals Screw Products Liability Litigation, undermine longstanding patent rights from private, corporate, academic and 193 F.3d 781, 788 (3d Cir. 1999). such as the six-year statute of limita- governmental practice of intellectual Moreover, the Court of Appeals for tion on patent damage actions. property law. the Federal Circuit specifically ad- As I said last week, I am mindful Mr. President, I ask unanimous con- dressed whether the Waxman-Hatch that the treble damage provision places sent to have printed in the RECORD a amendments to the FDCA did not indi- a generic firm patent challenger in a copy of a July 22, 2002 letter from the cate any congressional intent to create difficult decision if the firm were AIPLA.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7346 CONGRESSIONAL RECORD — SENATE July 25, 2002 There being no objection, the mate- a remedy guaranteed to patent holders in all INNOVATION IN HEALTH CARE AND THE RESULT- rial was ordered to be printed in the fields of technology. ING IMPROVEMENTS IN MORTALITY AND RECORD, as follows: We also point out that the denials of relief HEALTH OUTCOMES WILL SUFFER FROM THE RETROACTIVE TAKING OF PROPERTY RIGHTS AMERICAN INTELLECTUAL PROPERTY noted in the preceding paragraph would be POSED BY THE SENATE H.E.L.P. COMMITTEE LAW ASSOCIATION limitations on pharmaceutical patents which PASSAGE OF THE EDWARDS SUBSTITUTE TO S. Arlington, Virginia could implicate certain non-discriminatory 812 Hon. ORRIN G. HATCH, obligations of the United States under the U.S. Senate, Agreement on the Trade-Related Aspects of In the last 50 years there have been dra- Washington, DC. Intellectual Property Rights (TRIPs), part of matic improvements in life expectancy and DEAR SENATOR HATCH: I am writing on be- the Uruguay Round Agreements. At a time better health care outcomes, in pertinent half of the American Intellectual Property when the Agreement is under challenge from part, because of new drugs and therapies. Law Association to express our concerns many quarters following the Doha Ministe- These advances have occurred because the about provisions in S. 812 that would under- rial Conference, certainly these provisions of United States, unlike some other nations, has used a strong patent system to help cre- cut long standing principles of patent law S. 812 should be vetted with the Office of the ate a balanced set of incentives. That system and would set an unfortunate example for U.S. Trade Representative for their consist- of incentives for innovation is at risk, if as other nations to emulate. ency with TRIPs. The AIPLA is a national bar association of proposed in the pending bill, the investment more than 14,000 members engaged in private In summary, while we take no position on backed and settled property rights in patents and corporate practice, in government serv- the need for legislation to change the provi- are retroactively taken away. ice, and in the academic community. The sions of the 1984 Hatch-Waxman Act or on The substitute amendment to the Schu- AIPLA represents a wide and diverse spec- the merits of the respective positions of in- mer-McCain bill adopted July 11 proposes to trum of individuals, companies and institu- novator drug companies and generic drug deprive property owners—in this case patent tions involved directly or indirectly in the companies, we are concerned that these pro- holders—of the most fundamental of prop- practice of patent, trademark, copyright, visions of S. 812 are contrary to good patent erty rights, the right to exclude others from and unfair competition law, as well as other law policy and enforcement. Indeed, they using their property without just compensa- fields of law affecting intellectual property. would establish principles that would do tion. The bill works this result by taking Our members represent both owners and great harm to the ability of innovators to re- away the right to sue. As explained in great- users of intellectual property. alize adequate and effective patent protec- er detail, the bill proposes to prevent holders While we take no position on the need for tion and set bad examples by the United of valid patents from suing generic drug revisions in the practice of ‘‘patent listings’’ States when viewed by other nations that companies. This proposal is not only bad pol- in applications for drug approvals before the are seeking ways to avoid providing such icy but poses at least three serious legal FDA, AIPLA believes that providing a new protection. If reform is needed, it should problems. civil action to delist patents is ill advised. take other forms and directions. First, the proposed bill takes away an es- Such actions would involve the issues of (a) Sincerely, sential attribute of a patent—the right to whether the innovator’s product is actually MICHAEL K. KIRK, enforce it against copiers. This deprivation covered by the patent-at-issue and (b) poten- Executive Director. is either a per se taking of property under tially, the validity of the patent. Irrespec- the relevant Supreme Court case law, or tive of the merits of allowing challenges to Mr. HATCH. While taking no position works a taking in light of the case by case the listing on the basis of its accuracy, vest- on the need for changing the patent constitutional test outlined by the same ing courts with jurisdiction over patent listing provisions of Hatch-Waxman, court. The pending bill would work a per se issues in this circumstance where there is no the AIPLA said that it believes that: taking if a Court determined that the loss of case or controversy is inappropriate. Such a fundamental right—like the right to sue— proposed new civil actions would be invita- Providing a new civil action to delist pat- was the equivalent of a total physical occu- tions to increased litigation and threats of ents is ill advised . . . Irrespective of the pation of a piece of real property. There is a litigation over such issues without cor- merits of allowing challenges to the listing good case that a court would so find. But re- responding public benefit. on the basis of its accuracy, vesting courts gardless of whether this proposal would meet If a generic drug company wished to chal- with jurisdiction over patent issues in this that test, the courts would most surely find lenge the validity of a listed patent, we circumstance where there is no case or con- that the loss of the right to sue would be a would suggest that a far better alternative troversy is inappropriate. taking of property that required just com- would be to require that it be through the pensation under the other applicable con- normal procedure of a request for patent re- The AIPLA also red flags the file-it- stitutional test. examination. To the extent that the existing or-lose-it patent forfeiture provisions Under current Supreme Court precedent, if proceedings might not be considered ade- of the pending legislation by pointing enacted, these amendments would be evalu- quate for such challenges, not only are there out that these, and I quote, ated under a taking analysis that would bills to strengthen them (H.R. 1866, H.R. 1886, measure the nature of the property involved, and S. 1754), but there is currently a proposal . . . would be limitations on pharma- the nature of the economic right and the de- being developed by the U.S. Patent and ceutical patents which could implicate cer- gree of governmental interference. In this Trademark Office to establish a post-grant tain nondiscriminatory obligations of the case, it is well settled law that a patent is a opposition proceeding that would provide a United States under the Agreement on the property right. It would be absurd to uphold more robust challenge procedure. Such pro- Trade Related Aspects of Intellectual Prop- that right and then claim that barring ac- ceedings are not only handled by the experts erty Rights (TRIPS). At a time when the cess to the courthouse does not violate that in the U.S. Patent and Trademark Office in Agreement is under challenge from many right. Because this amendment would work a the first instance, but all appeals would go quarters following the Doha Ministerial Con- fundamental and retroactive deprivation of to the Court of Appeals for the Federal Cir- ference, certainly these provisions of S. 812 those economic rights courts would likely cuit which handles almost all patent appeals should be vetted with the Office of the U.S. hold that these changes are a taking. Such a from normal infringement litigation. Trade Representative for their consistency finding triggers a requirement of govern- Another aspect of S. 812 which we find with TRIPS. ment compensation of the property owners. troubling is the proposed prohibition against At the President’s Council of Economic Ad- a patentee bringing a patent infringement I agree we should hear from United visers recognized in their report to the Presi- action against a generic drug company for a States Trade Representative on this dent earlier this year, the kinds of inven- patent not listed (and/or not properly listed) matter. I also agree with the American tions at risk here—both breakthroughs and in an application for FDA approval. Under incremental improvements in existing prod- current provisions in the law, a patent owner Intellectual Property Law Association ucts—are critical to improved health out- loses the right to file a patent infringement when it closed its letter with the fol- comes. That same report also recognized law suit which has the effect of staying the lowing statement: ‘‘If reform is needed, that these products require the free market FDA’s approval of a generic drug for 30 it should take other forms and direc- possibility of substantial profits to sustain months to allow resolution of the law suit if tions.’’ the magnitude of the R+D necessary to over- (a) the patent is not listed with the FDA or come the risk of research failures, and com- (b) the suit is not brought against the ge- Finally, Mr. President, I would like petition from others also racing to be first neric drug company within 45 days of receiv- to make my colleagues aware of, and on the market with new medical innova- ing an appropriate certification notice that ask unanimous consent to have printed tions. This reality would mean that a suc- is listed patent is either invalid or not in- in the RECORD, a statement from the cessful taking suit would implicate many fringed. They do, however, retain the right law offices of David Beier. claims of significant economic loss. Thus, it to bring an infringement suit at a later date. is likely that any finding would have very The effect of the present amendments would There being no objection, the mate- serious implications for the Federal budget. be to take that right away from the patent rial was ordered to be printed in the Second, there is a strong argument that holder. This would be an arbitrary denial of RECORD, as follows: this amendment interferes with the right of

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7347 patent holders to petition their government WHO, result in the imposition of retaliatory rule coupled with the file-it-or-lose-it through the judicial system for a redress of tariffs on American exports. and sue-on-it-or-lose-it provisions and their grievances. In this case, much like the Mr. President, I share these concerns. the new private right of action efforts of others in an earlier time, seeks to I urge my colleagues to consider the amounts to legislative overkill that prevent courts from enforcing rights guaran- views of BIO, the AIPLA, and David teed by the Constitution. This approach can creates a host of new problems. not be justified in light of the compelling Beier, as well as the other organiza- In contrast to this over-correction constitutional right to have full and fair ac- tions cited by Senator FRIST last week, with regard to the 30-month stay, I am cess to redress grievances. before we rush to adopt this virtually concerned that the Edwards-Collins Third, and finally, this amendment makes unvetted, far-reaching language that HELP Committee Substitute under- artificial and illegal distinctions between has not been the subject of a hearing in corrects in fixing the 180-day mar- types of patents in violation of the United any committee of Congress. Not the keting exclusivity issue. States’ obligations under international law. HELP Committee, not the Judiciary Perhaps no single provision of the One of the important advances in law, se- Committee, not the Commerce Com- 1984 law has caused so much con- cured at the request of the United States, in mittee, and not the Finance Com- the World Trade Organization’s Trade Re- troversy as the 180-day marketing ex- lated Intellectual Property system was a bar mittee which has jurisdiction over clusivity rule. on discrimination between different tech- matters of international trade. As I explained last week, the statute nologies. In this case, the amendment pro- But more important than any pay- contains this incentive to encourage poses to withdraw significant patent rights ments that the Treasury might be com- challenges that help test the validity from the holders of certain innovative drug pelled to pay due to judgments related of pioneer drug patents and to encour- patents that continue to be guaranteed to all to the Takings Clause or than any re- age the development of non-patent in- other patent holders. Imagine if another na- taliatory trade sanctions that the WHO fringing ways to produce generic drugs. tion proposed to cut off the right to sue for may impose on the United States down infringement for the violation of an aero- The policy motivation behind the 180- the road, we need to consider what the day rule is to benefit consumers by ear- space, computer or computer software pat- public health consequences might be if ent, we certainly would assert that it vio- lier entry of cost-saving generic prod- lated our Nation’s rights under TRIPS. The we unjustifiably lower protections on ucts onto the market in situations pending amendment offers the same kind of pharmaceutical patents. where patents were invalid or could be flawed and illegal approach. In the case of a Don’t get me wrong. I am in favor of legally circumnavigated. TRIPS violation the penalty could, after ad- fierce price competition in the pharma- For many years as we intended and judication in the WTO, result in the imposi- ceutical marketplace. I favor not just envisioned FDA awarded this 180-day tion of retaliatory tariffs on American ex- less expensive general drugs today, but exclusivity only to a generic drug ap- ports. also better breakthrough drugs tomor- In sum, the pending amendment is a bad plicant that was successful in patent row. We need to keep in mind the rela- litigation against the pioneer firm. In idea on policy grounds, procedurally suspect tionship between public health and in- and legally subject to challenge. Congress 1997, FDA’s longstanding successful de- tellectual property. As David Beier has should carefully consider the risks to the fense requirement was struck down by observed with respect to this linkage Federal Treasury that could result if this the D.C. Circuit Court of Appeals in the and the threat of this bill: bill were enacted and the courts uphold a case of Mova Pharma v. Shalala. strong ‘‘taking’’ of property claim. More- In the last 50 years there have been dra- The next year, the D.C. Circuit issued matic improvements in life expectancy and over, legislators should also be cognizant of its opinion in Purepac Pharm v. the bad precedent they would be creating by better health care outcomes, in pertinent barring access to judicial remedies. Finally, part, because of new drugs and therapies. Shalala which upheld FDA’s new sys- Congress should recognize that if approaches These advances have occurred because the tem of granting the 180-day exclusivity to international obligations like this are United States, unlike other nations, has used to the first filer of a generic drug appli- adopted, other countries will be more likely a strong patent system to help create a bal- cation even if the pioneer firm did not to punish American inventions in other sec- anced set of incentives. That system of in- sue for patent infringement. Also in tors, including information technology and centives for innovation is at risk, if as pro- 1998, the Fourth Circuit Court of Ap- aerospace. posed in the pending legislation, the invest- ment backed and settled property rights in peals held in Granutec v. Shalala that Mr. HATCH. Mr. Beier was a member a court decision with respect to a sec- of the staff of the House Judiciary patents are retroactively taken away. In short, while better in some key re- ond or third filer could trigger the ex- Committee when Hatch-Waxman was clusivity period of a first filer. adopted in 1984. After that, for many spects than McCain-Schumer, I am afraid that the HELP Committee-re- Taken together, these decisions, years he headed the Washington office which strictly construed the statutory of the biotechnology company, ported bill goes too far with respect to the 30-month stay. As I testified before language, awarded the exclusivity to Genentech. Mr. Beier then spent four the first filer of a generic drug applica- years serving as the chief domestic pol- the HELP Committee in May, if the problems we are trying to solve are the tion. As a co-author of the legislation, icy advisor for Vice President Gore. He I will be the first to concede that we is recognized as an expert in high tech- multiple use of 30-month stays and 11th hour-issued patents that unfairly trig- drafters of the 1984 law came up short nology issues and is now a partner in in this area because we were attempt- highly respected Washington law firm. ger the stay, it seems to me that a more appropriate—and more narrowly- ing to reward the first successful chal- David is certainly not a conservative lenger, not the first to file papers with Republican although I still have my tailored—legislative response might be a rule that allows one stay, and one the FDA. hopes for him! Once the successful defense require- In Mr. Beier’s view, ‘‘the pending stay only. Further, it might be appropriate to ment was struck down, the mismatch amendment is a bad idea on policy restrict the use of the sole stay only between first filers of generic drug ap- grounds, procedurally suspect and le- with respect to those patents listed in plications and the generic drug firms gally subject to challenge.’’ Mr. Beier the FDA Orange Book at the time actually litigating the patents resulted lays out the Takings Clause problems, when a particular generic drug applica- in a number of controversial contrac- the procedural due process concerns, tion is submitted. I will be interested if tual arrangements in which generic and the TRIPS considerations. such a rule satisfies the problems that firms in the first-to-file blocking posi- With respect to the potential for neg- the FTC finds with respect to abuses of tion were paid by pioneer firms not to ative impact on foreign trade Mr. Beier the 30-month stay and how the FTC, go to market. These agreements pre- warns: FDA, DOJ and other experts and inter- vented the 180-day marketing exclu- Imagine if another nation proposed to cut ested parties think about this perspec- sivity clock from ever starting, and the off the right to sue for infringement for the tive. statute prevented FDA from approving violation of an aerospace, computer or com- I am open to other alternatives as second and subsequent filers from puter software patent. We would certainly assert that it violated our Nation’s rights more information becomes available going to market. under TRIPS. The pending Amendment of- and more discussion takes place among Here is how my good friend, Bill fers the same kind of flawed and illegal ap- interested parties. Haddad, an astute political analyst, ge- proach. In the case of a TRIPS violation the For now at least, I am forced to con- neric drug manufacturer, gifted writer, penalty could, after adjudication in the clude that this new NDA-plus 30-day incorrigible liberal, and participant in

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7348 CONGRESSIONAL RECORD — SENATE July 25, 2002 the 1984 negotiations recalled the in- verse payments situation by adopting a principle may not hold up if any form tent of the 180-day marketing exclu- so-called rolling exclusivity policy. If of rolling exclusivity is adopted or if sivity provision: the eligible generic drug filer does not we have multiple patents and multiple There was never any doubt that the goal .. go to market within a specified time challengers, some of whom are attack- was to bring generics to the market earlier period, the 180-day exclusivity rolls to ing on invalidity and some of whom or using the route of legal challenge with a re- the next filer. attacking on non-infringement. ward to be paid to the entrepreneur with the As I testified before the HELP Com- I must say I am troubled by the pro- courage and facts to successfully challenge. mittee, I do not favor rolling exclu- vision of the bill that appears to grant It was and is very clear that the law sivity. Here’s what Gary Buehler, then each generic firm that qualifies for the was not designed to allow deals be- Acting Director of FDA’s Office of Ge- benefit of the 18-month marketing ex- tween brand and generic companies to neric Drugs, said before the Judiciary clusivity incentive a 30-month period delay competition. Committee last year: to secure FDA approval, measured Unfortunately, the string of court de- We believe that rolling exclusivity would from the from the time of the filing of cisions that interpreted these impre- actually be an impediment to generic com- the generic drug application. cisely drafted statutory clauses has re- petition in that the exclusivity would con- Let’s say that the first firm eligible sulted in a wholly unintended result. tinue to bounce from the first to the second to take advantage of the 180-day ben- As David Balto, a former senior offi- to the third if, somehow or other, the first efit drops out for some reason. Assume cial at the FTC, has described the prob- was disqualified. also that the next firm eligible under lem: In 1999, FDA proposed a rule which the terms of Section 5 is in the midst The 180-day exclusivity provision appears embraced a use it or lose it policy of, for example, a negative good manu- to have led to strategic conduct that has de- whereby if the first eligible generic facturing inspection and can’t go to layed and not fostered the competitive proc- drug applicant did not promptly go to market, but has say 14 months remain- ess. market, all other approved applicants ing on the 30-month clock. It would Mr. Balto assessed: could commence sales. Molly Boast, hardly seem like an appropriate out- The competitive concern is that the 180- Director of the FTC Bureau of Com- come if, for example, the next firm eli- day exclusivity provision can be used strate- petition, testified last May that, at the gible on the list already has satisfied gically by a patent holder to prolong its all of the FDA requirements and has market power in ways that go beyond the in- staff level, FTC supported FDA’s use it or lose it proposal. If our goal is to received tentative final approval, but tent of the patent laws and the Hatch-Wax- must wait until the 30-month clock man Act by delaying generic entry for a sub- maximize consumer savings after a stantial period. patent has been defeated, I find it dif- runs out. I hope that the proponents of the sub- He is right. He is absolutely right. ficult to see how rolling exclusivity stitute amendment will help us all un- This wholly unintended dynamic has achieves this goal. I certainly prefer derstand just how Section 5 is intended properly brought intense antitrust FDA’s use it or lose it policy over the to work. It is difficult for me to see scrutiny. As a matter of fact, in May of McCain-Schumer brand of rolling ex- why we should adopt a policy whereby 2001, the Judiciary Committee exam- clusivity. the balance of the 30-month period de- ined the antitrust implications of phar- In that regard, I must again com- scribed in Section maceutical patent settlements inspired mend the sponsors of the Edwards-Col- 5(a)(2)‘‘(D)(i)(III)(dd)’’ on page 44 of the by the 180-day rule. lins Substitute for rejecting the bill, could conceivably be greater than The Federal Trade Commission has McCain-Schumer rolling exclusivity the 180-days of marketing exclusivity. been very active in this area. The FTC policy in favor of what Senator Upon default of the first qualified ap- has brought and settled three of these EDWARDS calls modified use-it-or-lose- plicant, why should we wait for a sec- cases in which brand name companies it. Having said that, I was alarmed to ond eligible drug firm to obtain FDA pay generic firms not to compete. At learn that during mark-up Senator approval when there may be a third, this point I will not go into the details EDWARDS responded to a question by fourth, or fifth applicant in line with of the consent decrees in the Abbott— stating it was conceivable that his FDA approval ready to go? Geneva case, the Hoescht—Andrx modified use-it-or-lose-it language I hope the sponsors of the legislation agreement, and the FTC’s settlement might actually roll indefinitely. This are not locked into their so-called with American Home Products. FTC disturbs me. Every time the exclu- modified use it or lose it policy, be- Chairman Tim Muris provided a great sivity would roll to another drug firm, cause I think it would be wise for Con- deal of information in his testimony consumers will be further away from gress to step back and reassess the wis- before the Senate Commerce Com- the day when multi-firm generic price dom of retaining the 180-day marketing mittee in April. competition can begin in the market- exclusivity provision in essentially the The FTC is doing the right thing in place. same form as enacted in 1984. Why not taking enforcement actions against Frankly, I am not certain that I com- take this opportunity to re-think the those who enter into anti-competitive pletely understand how the forfeiture 180-day rule? agreements that violate our Nation’s language in Section 5 of the bill works. At one extreme are those who have antitrust laws. Probably in no small I do not think I am alone in this confu- suggested that the 180-day marketing part due to the FTC’s vigorous enforce- sion. At some point, I would like to en- exclusivity provision may not even be ment under the existing antitrust laws gage in a colloquy with the bill man- necessary at all. Liz Dickinson, a top- and the development of Senator agers to ask some questions designed notch career attorney at FDA, has LEAHY’s Bill, The Drug Competition to clarify precisely how this provision asked: ‘‘I suggest we look at whether Act, S. 754, I understand that no more works. 180-day exclusivity is even necessary, of these type of anti-competitive agree- Let me say that if the bill reinstates and I know that there is this idea that ments have been initiated for over two the successful defense requirement and it is an incentive to take the risk. I say years. The FTC report will no doubt gives awards to the successful chal- the facts speak otherwise. If you have shed light on this area In a post-Enron, lenger so long as the firm goes to mar- a second, third, fourth, fifth generic in post-WorldCom environment, who ket in a timely fashion, I am sup- line for the same blockbuster drug . . . would be so reckless as to enter into portive of the general concept. But I undertaking the risk of litigation with- such an agreement? Nevertheless, I must say that I think that there are out the hope of exclusivity, is that ex- must also point out that the agency re- some real advantages to Senator clusivity even necessary?’’ cently suffered a set back when the GREGG’s simple and straight-forward Ms. Dickinson went on to make the FTC administrative law judge issued a policy of more closely following FDA’s following observation with respect to ruling in the on-going K-Dur litigation old-fashioned use-it-or-lose-it proposal. the 180- day rule, ‘‘We have got a provi- that reminds us that not all pharma- As I stated earlier, I am generally sion that is supposed to encourage ceutical patent settlements are per se sympathetic to the concerns of generic competition by delaying competition. violations of federal antitrust law. drug firms that any exclusivity award- It has got a built in contradiction, and In any event, the McCain-Schumer ed should be measured from the time of that contradiction . . . is bringing bill addressed the 180-day collusive re- an appellate court decision. But this down part of the statute.’’

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7349 At the Judiciary Committee hearing other non-infringer comes along. Con- This is so because during the 180-day on May 24, 2001, Gary Buehler, FDA’s versely, doesn’t the 180-day floor work time frame, when there is only one ge- top official in the Office of Generic to the detriment of consumers when- neric competitor, the pioneer firm does Drugs agreed with his colleague’s as- ever it acts to block market entry of a not take anywhere near the hit on sessment: second non-infringer during the 180-day market share and profits that occurs . . . we often have the second, third, period ? Why shouldn’t a second or when multiple generic firms enter the fourth, fifth challengers to the same patent, third non-infringer be granted imme- market. Similarly, the first generic on oftentimes when the challengers actually re- diate access to the market as would the market is under no pressure to cut alize that they are not the first and there is occur in any other industry? Con- the price anywhere near as much as no hope for them to get the 180-day exclu- sumers would reap immediate benefits when there is competition from mul- sivity. So with that in mind, I would agree for price competition. tiple generic firms. with Liz’s statement that generic firms will The report, Drug Trend: 2001, pub- continue to challenge patents. Whether the I hope that my colleagues working on 180-day exclusivity is a necessary reward for the bill will consider the distinction lished by Express Scripts, notes this that challenge is unknown, but it does not between invalidity and non-infringe- dynamic: appear that it is. ment as this debate continues over the The AWP [average wholesale price] for the Keep in mind that both of these FDA next week. While I am of the mind to first generic is usually about 10 percent retain a strong financial incentive to below the brand. After the six month exclu- officials are career civil servants with sivity granted to the first generic manufac- no political axe to grind. I personally encourage vigorous patent challenges turer, the price paid . . . for the generic favor retaining some financial incen- by generic drug firms, we must ask quickly falls, often by 40 percent or more, as tive to encourage patent challenges, why identical rewards are granted for multiple manufacturers of the same generic but in light of this testimony and other successful invalidity and non-infringe- product compete for market share. It seems factors, I do not think we need to be ment claims. I welcome the comments likely that the value of the 180-day mar- wedded to the current form of the 180- and suggestions of my colleagues and keting exclusivity award today may be day exclusivity benefit. other interested parties on this matter worth much more that it was back in 1984— Frankly, I think we need more public perhaps several hundred million dollars more Frankly, I am surprised that neither per blockbuster drug. the McCain-Schumer bill, nor the Ken- discussion and debate about the wis- Given the dramatic increase in drug nedy mark, nor the Edwards-Collins dom of retaining—lock, stock, and bar- sales for today’s blockbuster products, amendment, proposed any changes in rel—the old 180-day exclusivity award. it does not seem far-fetched to project the current regime in light of the views For example, even if we adopt the modified use it or lose it approach of that the 180-marketing exclusivity re- of the FDA officials among other con- ward can amount to hundreds of mil- siderations. But, of course, neither the the HELP Committee bill and the first qualified generic manufacturer cannot, lions of dollars—and perhaps over one FDA nor FTC nor any representatives billion dollars—in profits to the fortu- from the Administration testified at or will not, commence marketing and the exclusivity moves to the next nate generic drug manufacturer. I am the HELP Committee hearing on May all for assuring that there are suffi- qualified applicant, why should the sec- 8th. cient incentives to ensure patent chal- Senator SCHUMER argues that the ond manufacturer get the full 180-days? lenges, but isn’t there a limit beyond Why not 90 days? Why not 60 days? task of this legislation is to curb ex- which we should direct these excess cesses in order to return to the original After all, once the exclusivity begins to roll and roll and we move away from profits back to consumers? balance in the 1984 law. But what if Would we rather see 25 percent to 40 granting the marketing exclusivity to conditions have changed and the origi- percent of that money in the hands of the successful generic litigant and nal balance of the 1984 need to be reas- the trial attorneys who brought the sessed? Or what if there was an area Americans always prefer actual win- case? Or, would we rather see at least that we didn’t get right the first time? ners—we may end up with a mere sec- some of those funds earmarked for at- For example, consider how Paragraph ond filer—and since when does our soci- torneys’ fees, be channeled to help citi- IV litigation treats patent invalidity ety grant such lucrative rewards to zens lacking access to prescription and patent non-infringement chal- someone who merely files some papers? drugs? lenges identically under the 180-day And what is so sacrosanct about 180- Shouldn’t we get the facts con- marketing exclusivity rule. But inva- days in the first place? It is my infor- cerning the change in value of the 180- lidity and non-infringement are two mation that in 1984 the number-one day marketing exclusivity today com- very different theories of the case. Here selling drug in the United States was pared to 1984 and make any appropriate is what Al Engelberg, a smart and te- Tagamet, with domestic sales of about adjustment to this incentive? We don’t nacious attorney who specialized in at- $500 million. I am told that today the want to set the incentive so low as to tacking drug patents on behalf of ge- cholesterol-controlling medicine, discourage challenges to non-block- neric drug firm clients, has said about Lipitor, has domestic U.S. sales of over buster patents. this difference: $5 billion. Lipitor sales are 10-times My purpose in rasing these points is In cases involving an assertion of non-in- higher in the U.S. than domestic to get an indication from the sponsors fringement, an adjudication in favor of one Tagamet sales were in 1984. I under- of this legislation and other interested challenger is of no immediate benefit to any stand that worldwide sales of Lipitor parties, such as patient advocacy orga- other challenger and does not lead to multi- are about $7 billion. nization, state Medicaid agencies, and source competition. Each case involving Even adjusting for inflation, it seems insurers, whether there is interest in non-infringement is decided on the specific clear that 180-days of marketing exclu- discussing the advisability of passing facts related to that challenger’s product sivity is worth more, and a lot more, and provides no direct benefit to any other on more of the value associated with challenger. In contrast, a judgment of patent today than it was worth in 1984. the marketing exclusivity to con- invalidity or enforceability creates an estop- What might 180-days of marketing sumers if it appears it is fair to do so. pel against any subsequent attempt to en- exclusivity for today’s blockbuster If there is interest, I would be willing force the patent against any party. The drugs be worth in profits to the generic to help fashion an appropriate amend- drafters of the 180-day exclusivity provision firm holding the 180-day marketing ex- ment. It seems to me that we need to failed to consider this important distinction. clusivity rights? provide enough of an incentive to as- As one of the drafters, I must accept Let’s be frank about what is going on sure vigorous patent challenges, but we my share of responsibility for not fully here: Retention of the 180-day mar- should give away no more exclusivity appreciating the implications of this keting exclusivity provision is one of than is necessary. Every day of mar- distinction. I think what Mr. those areas in which both the generic keting exclusivity awarded to a generic ENGELberg is pointing out that the 180- sector and the R&D sector have some- firm comes at the expense of con- day rule acts as only a floor in non-in- thing of a mutual interest. And when sumers. fringement cases. As long as any pat- all is said and done, I think that the I think we can and should explore ents stand, a particular non-infringer’s joint interest of the generics and the this area further. marketing exclusivity can extend well pioneer firms is not in perfect align- Let us not too quickly and too blind- beyond 180 days until such time as an- ment with the interests of consumers. ly retain the basic structure of reward

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7350 CONGRESSIONAL RECORD — SENATE July 25, 2002 under the 180-day marketing exclu- Transparency Act of 2002, and that it Mr. DURBIN. Madam President, I sivity provision. Before we change the be considered under the following limi- move to reconsider the vote. law, let us have a serious re-examina- tations: That there be a time limita- Mr. REID. I move to lay that motion tion of whether to retain the 180-day tion of 2 hours equally divided and con- on the table. marketing exclusivity in its current trolled between the chair and ranking The motion to lay on the table was form both in terms of the length of the member of the committee or their des- agreed to. exclusivity period and whether the re- ignees; that upon the use or yielding The PRESIDING OFFICER. Under wards for successful invalidity and back of time, without further inter- the previous order, the Senate insists non-infringement challenges should be vening action or debate, the Senate on its amendments and requests a con- treated identically. proceed to vote on adoption of the con- ference with the House on the dis- I urge my colleagues, as well as con- ference report. agreeing votes of the two Houses. sumer organizations and pharma- The PRESIDING OFFICER. Is there The PRESIDING OFFICER appointed ceutical purchasers such as insurers objection? Mr. DURBIN, Mr. JOHNSON, Mr. REED of and self-insured businesses to reflect Without objection, it is so ordered. Rhode Island, Mr. BYRD, Mr. BENNETT, Mr. STEVENS, and Mr. COCHRAN con- upon what I have said on this subject f today. ferees on the part of the Senate. This is an area in which I think we LEGISLATIVE BRANCH APPRO- f PRIATIONS ACT, 2003—Resumed would be wise to reject Senator SCHU- GREATER ACCESS TO AFFORD- MER’s argument that all we are doing The PRESIDING OFFICER. Under ABLE PHARMACEUTICALS ACT with this legislation is restoring the the previous order, the Senate will pro- OF 2001—Continued integrity of the old Hatch-Waxman ceed to vote on H.R. 5121, the Legisla- The PRESIDING OFFICER. Under Act. But why should we be governed by tive Branch Appropriations Act. the previous order, the Senate will re- the world of 1984 when, for example, Mr. REID. Mr. President, I ask for sume consideration of S. 812. The the best selling drugs in this country the yeas and nays on the legislative Rockefeller amendment No. 4316 is have increased sales by a factor of 10? branch appropriations bill. agreed to, and the motion to reconsider Why should the value of the marketing The PRESIDING OFFICER. Is there a that vote is laid on the table. exclusivity reward increase in direct sufficient second? proportion? The amendment (No. 4316) was agreed There is a sufficient second. to. On a number of occasions, I have The question is on agreeing to the commended Senator SCHUMER and Sen- conference report. The clerk will call f ator MCCAIN for moving their legisla- the roll. SARBANES-OXLEY ACT OF 2002— tion forward, even if the bill that came The legislative clerk called the roll. CONFERENCE REPORT out of the HELP Committee does not Mr. NICKLES. I announce that the The PRESIDING OFFICER. Under resemble very closely their bill, and I Senator from North Carolina (Mr. the previous order, the Senate will pro- still have problems with the floor vehi- HELMS) is necessarily absent. ceed to the consideration of the con- cle as I have laid out in some detail. I The PRESIDING OFFICER (Mrs. ference report to acompany H.R. 3763, commend them again today. CARNAHAN). Are there any other Sen- which the clerk will report. I hope to return to the floor before ators in the Chamber desiring to vote? The legislative clerk read as follows: this debate ends to offer a few sugges- The result was announced—yeas 85, The committee of conference on the dis- tions for a more comprehensive ap- nays 14, as follows: agreeing votes of the two Houses on the proach to reforming the Drug Price [Rollcall Vote No. 191 Leg.] amendment of the Senate to the bill (H.R. Competition and Patent Term Restora- YEAS —- 85 3763), to protect investors by improving the tion Act. accuracy and reliability of corporate disclo- This in no way minimizes the impor- Akaka Durbin McConnell sures made pursuant to the securities laws, Allen Edwards Mikulski and for other purposes, having met, have tance of he matters that are the sub- Baucus Feingold Miller ject of the pending legislation, because Bennett Feinstein Murkowski agreed that the House recede from its dis- they are important areas. I do not be- Biden Frist Murray agreement to the amendment of the Senate, Bingaman Graham Nelson (FL) and agree to the same with an amendment, lieve, however, that these are the most Bond Grassley and the Senate agree to the same, signed by important issues we can address. Nelson (NE) Boxer Gregg Nickles a majority of the conferees on the part of Breaux Hagel Rather than focusing on how best to Reed both Houses. Burns Harkin bring the law back to the old days of Reid Byrd Hatch The PRESIDING OFFICER. The Sen- 1984, as Senator SCHUMER suggests, I Campbell Hollings Rockefeller ate will proceed to the consideration of want to discuss ways to modify the law Cantwell Hutchinson Santorum Sarbanes the conference report. to help usher in a new era of drug dis- Carnahan Hutchison (The report is printed in the House Carper Inouye Schumer covery while, at the same time, in- Chafee Jeffords Sessions proceedings of the RECORD of July 24, creasing patient access to the latest Cleland Johnson Shelby 2002.) medicines. Clinton Kennedy Smith (OR) The PRESIDING OFFICER. The Sen- Mr. President, I yield the floor. Cochran Kerry Snowe ator from Nevada is recognized. Collins Kohl Specter f Corzine Kyl Stabenow Mr. REID. Madam President, I sug- Craig Landrieu gest the absence of a quorum and ask ORDER OF PROCEDURE Stevens Crapo Leahy Thompson that the time not be charged against Mr. REID. Mr. President, I ask unan- Daschle Levin Thurmond Dayton Lieberman either manager. imous consent that following disposi- Torricelli The PRESIDING OFFICER. Without DeWine Lincoln Warner tion of H.R. 5121, the legislative branch Dodd Lott Wellstone objection, it is so ordered. The clerk Domenici Lugar appropriations bill, Rockefeller amend- Wyden will call the roll. ment No. 4316 be agreed to, and the mo- Dorgan McCain The legislative clerk proceeded to tion to reconsider be laid on the table. NAYS —- 14 call the roll. The PRESIDING OFFICER. Is there Allard Ensign Roberts Mr. SARBANES. Madam President, I objection? Bayh Enzi Smith (NH) ask unanimous consent that the order Without objection, it is so ordered. Brownback Fitzgerald Thomas Bunning Gramm Voinovich for the quorum call be rescinded. Mr. REID. Mr. President, I ask unan- Conrad Inhofe The PRESIDING OFFICER. Without imous consent that immediately fol- objection, it is so ordered. NOT VOTING—1 lowing action on adoption of the Mr. SARBANES. Madam President, Rockefeller amendment, the Senate Helms parliamentary inquiry of the Chair: proceed to the consideration of the The bill (H.R. 5121) was passed, as fol- What is pending before the Senate? conference report to accompany H.R. lows: The PRESIDING OFFICER. The de- 3763, the Corporate and Auditing Ac- (The bill will be printed in a future bate on the conference report is lim- countability, Responsibility, and edition of the RECORD.) ited to 2 hours equally divided.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7351 Mr. SARBANES. So there is 1 hour him very much for all his contribu- seeks to address the statement of pro on each side. tions. forma earnings, in order to assure a The PRESIDING OFFICER. The Sen- Before addressing the major provi- more complete and accurate picture of ator is correct. sions of the legislation, let me make a public company’s financial position. Mr. SARBANES. Madam President, I very clear that it applies exclusively to It also addresses the conflicts of in- yield myself 10 minutes. public companies—that is, to compa- terests that arise for stock analysts to The PRESIDING OFFICER. Without nies registered with the Securities and whom investors look for impartial re- objection, it is so ordered. Exchange Commission. It is not appli- search-based advice about stocks. Un- Mr. SARBANES. Madam President, I cable to provide companies, who make fortunately, many of these analysts are am very pleased that we are now con- up the vast majority of companies under pressure to promote stocks in sidering the conference report on the across the country. which their broker-dealer firms may Public Company Accounting Reform This legislation prohibits accounting have an investment banking interest; and Investor Protection Act of 2002. firms from providing certain specified on the one hand they are supposed to The Senate approved this legislation consulting services if they are also the give unbiased advice to potential pur- on July 15 on a 97–0 vote. Conferees auditors of the company. In our consid- chasers of stock, whether to buy or were named promptly both here and in ered judgment, there are certain con- sell, but at the same time the firm of the House, and the conference com- sulting services which inherently carry which they are a part is interested in mittee immediately went to work. with them significant conflicts of in- developing a business relationship with Agreement was reached yesterday in terest. Auditors, in effect, find them- the company on which the analyst is the early evening, about 7 o’clock, by selves in the position of auditing their passing judgment. It has been sobering the conference committee, and the own work. They may be acting as man- to discover that analysts have been for- House took up the conference report agement of the company, for instance, mally recommending certain stocks to this morning and acted on it earlier in on personnel matters when, as the out- the investing public, while at the same the day. The vote, I believe, was 422—3. side auditor, they were supposed to be time discussing them contemptuously The conference report has now come standing one step removed from the among themselves. We have had too over to us, and obviously, under our company as the outside auditor. This is many demonstrations of this occur- procedures, it is our turn to proceed to the reasoning behind the prohibition. ring. consider it. What has happened in recent years is The legislation includes provisions to This legislation establishes a care- that the fees earned from the con- protect analysts against retaliation, in fully constructed statutory framework sulting work have dwarfed the fees cases where a negative recommenda- to deal with the numerous conflicts of earned from the auditors, which inevi- tion may invite retaliation. Further- interest that in recent years have un- tably leads to concerns that punches more, the bill authorizes significant in- dermined the integrity of our capital may be pulled on the audit to accom- creases in funding for the Securities markets and betrayed the trust of mil- modate the significant and remunera- and Exchange Commission, which for lions of investors. tive involvement on the consulting the first time in many years will give I say to my colleagues that in every side. Certain enumerated consulting it something close to the funding re- one of its central provisions, the con- practices are therefore not allowed, sources it needs. ference report closely tracks or par- with the exception that a case-by-case There are also extensive criminal allels the provisions in the Senate bill exemption can be obtained from the penalties contained in this legislation. for which, as I indicated earlier, all the oversight board that this legislation These were initially included in legis- Members present at the time, 97 of us, establishes. lation reported by the Judiciary Com- voted only a short time ago. The auditor can engage in the bal- mittee, which Senator LEAHY offered as This legislation establishes a strong ance of consulting services with the an amendment to the bill. The House independent accounting oversight pre-approval of the audit committee of then passed its own bill with respect to board, thereby bringing to an end the the corporation. And of course an audi- criminal penalties, a separate standing system of self-regulation in the ac- tor can engage in whatever consulting bill, which in many instances doubled counting profession which, regrettably, services the firm and the corporation or even tripled the penalties in the has not only failed to protect inves- agree upon so long as the firm is not Leahy proposal as it came to the floor, tors, as we have seen in recent months, also acting as the corporation’s audi- and the Leahy proposals were further but which has in effect abused the con- tor. supplemented by an amendment from fidence in the markets, whose integrity The bill sets significantly higher Senators BIDEN and HATCH and another investors have taken almost as an arti- standards for corporate responsibility from Senator LOTT. cle of faith. governance. It requires public compa- The PRESIDING OFFICER. The Sen- This legislation reflects the extraor- nies to have independent audit com- ator has consumed 10 minutes. dinary efforts of many colleagues on mittees and also enhances the role of Mr. SARBANES. I yield myself 4 ad- both sides of the Capitol. I want espe- the audit committee, which will have ditional minutes. cially to recognize and express my deep responsibility for hiring and firing the The PRESIDING OFFICER. The Sen- gratitude to Senators DODD and auditors and setting their compensa- ator has that right. CORZINE who early on introduced legis- tion. Mr. SARBANES. These provisions, lation that in many respects serves as The legislation requires full and among other things, require the CEOs the basis for titles 1 and 2 of this legis- prompt disclosure of stock sales by and CFOs to certify their company’s fi- lation. company executives. Senator CARNA- nancial statements under penalty of On the House side, Congressman LA- HAN added an important provision to potentially severe punishments. FALCE introduced comprehensive legis- the bill, requiring electronic filing We provide a $776 million authoriza- lation on which we drew. with respect to such sales. That re- tion for the SEC. I want to spend a I also wish to acknowledge the many quirement would take effect in a year’s minute on this point, because it is very important contributions that my Re- time, to allow time for the necessary important. The Senate Appropriations publican colleague, Senator ENZI, made systems to be put in place; once in Committee is now working on an ap- at every step in the process. Senator place it will assure prompt and accu- propriation that would contain $750 ENZI had legislation of his own, but in rate disclosure of these very significant million for the SEC. It is urgent that addition we worked very closely in the transactions. we provide adequate funding for the course of developing this legislation. The legislation places limits on loans Commission, whose responsibilities Again and again I was struck by the by corporations to their executive offi- have expanded as the volume of market thoughtfulness and reasonableness of cers. It sets certain requirements for activity has grown, but whose funding his proposals for improving in the leg- disclosure with respect to special pur- has lagged. Clearly, the Commission islation. While in the end not all of pose entities, which were used by some must have the resources necessary to them were included in the legislation, corporations that have run into such ensure a decisive and expeditious re- a significant number are, and I thank serious difficulty in recent months. It sponse to the scandals we have seen in

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7352 CONGRESSIONAL RECORD — SENATE July 25, 2002 recent months, and to minimize the framework, which has served us well, a Member is, this is an improvement likelihood that we will see others in and I believe it will stand the test of over the status quo, and for two rea- the future. time. sons. One is obvious. That is, we needed I must underscore this point. The Our markets, which have the reputa- stiffer criminal penalties. And, second, Commission has been underfunded, and tion of being the fairest, the most effi- we needed to create an independently the result has been understaffing, high cient, the most transparent in the funded and an independently operating staff turnover and low morale as the world, have suffered greatly in recent accounting oversight board so that we Commission seeks to carry out its times, so much so that they seem to could deal with ethics questions in a work. The SEC must be in a position to have lost the confidence of our inves- framework that will promote high eth- address immediately the problems of tors. It is our purpose, with this legis- ical standards, in the framework of inadequate staff resources and inad- lation and through other actions that independence. In addition, we des- equate pay. will have to be taken by the regulatory perately needed to have an independ- At the moment, the SEC cannot offer agencies and by the private sector, to ently funded FASB. its attorneys and accountants the same see that once again our capital mar- I would just say as an aside, Madam level of salary and benefits that their kets deserve the enviable reputation President, over the years I have agreed counterparts receive at the five Fed- for fairness, efficiency, and trans- with FASB in some of their decisions; eral bank regulatory agencies. Tal- parency that they have enjoyed I have disagreed with FASB on some of ented and dedicated staff attorneys and through the years. their decisions. However, I am proud to accountants can increase their com- I yield the floor. be able to say today I have never taken pensation by as much as one-third sim- The PRESIDING OFFICER. The Sen- the position that Congress ought to ply by moving to another agency. This ator from Texas. override FASB. As incomprehensible as is an intolerable situation. Pay parity Mr. GRAMM. Madam President, I some of their rulings have been to my has been authorized and now must be yield myself such time as I may con- way of thinking, having Congress vote funded; this legislation specifically sume. on accounting standards is a very dan- provide the necessary funding. I want to begin with some thank- gerous thing. In addition, the authorization pro- yous and congratulations. First, I want Some of our colleagues want to vote vides funding that will enable the Com- to congratulate Senator SARBANES on on the whole issue of expensing stock mission to upgrade its technical capac- this bill, and I want to make note that options. Wherever you come down on ities, its computer systems, and it pro- in a very difficult period, where so that issue, having Congress vote on ac- vides significant resources so that the many were trying to point the finger of counting standards is very dangerous, Commission can augment its staff of blame, when it seemed almost every very counterproductive. I hope that attorneys, accountants and examiners day that people were clamoring to will not happen. Certainly, I am not at a time when they are needed to ad- make the strongest statement they going to vote to impose accounting dress a very heavy workload burden. could make to get the sound bite on standards on this board. We want As an aside, I mention that this television, Senator SARBANES could FASB to set accounting standards. We morning the committee reported to the have taken that same route in the want to be sure they have the inde- Senate four nominees to bring the Se- Banking Committee. We are the com- pendence that is necessary to allow curities and Exchange Commission to mittee that has jurisdiction over the them to do it. its full complement of five members. I issues that had been at the very heart In those areas there has never been a very much hope we will be able to ap- of our recent concerns in the capital disagreement on this bill. The dis- prove them next week so that they will markets. agreements that have occurred have be able to take their positions before However, Senator SARBANES did not had to do with the perception of indi- the August recess. If we do, the Com- take that route. I congratulate him. He vidual Members as to what was prac- mission will be at full strength. They not only brought good reflection on tical, what was workable, what was de- will all be in place and ready to do the himself, but he helped raise the esteem sirable. The one view I have always job, and I think that is highly desir- that the Banking Committee is held in subscribed to, and I would have to say able. and reflected well on the Senate. We given my period of service in public life In closing, let me say that I believe had hearings but we were focusing on I am more convinced of it than ever, is this conference report reflects our best what could be done to fix the problem. that Thomas Jefferson was right when efforts to deal with issues which we As a result, those hearings were the he said good men—he would say good know to be numerous and complex. most productive that were held. They people today, of course—good men with Throughout the process, we have contributed to bringing us to where we the same information are prone to have worked together carefully on these are. different opinions. issues. We have sought advice from the Now let me make it clear, from the There is a natural tendency in the most distinguished and experienced very beginning there has been a broad human mind to think, if people dis- practitioners in the field. We held 10 consensus, and a very deep consensus, agree with you, that either, A, they hearings in March with some of the on 90 percent of the issues in this bill. don’t know what they are talking very best experts in the country as our One of my frustrations in this debate— about; or B, they don’t have good in- witnesses. We have consulted exten- and when you are debating something tentions. I subscribe to the Jefferson sively, and I hope my colleagues will as high profile as this is, there are frus- thesis. agree in good faith and across party trations. I am not complaining—as my The areas where I disagree with the lines. Our vision has been broad, our wife says whenever I complain about bill are pretty straightforward. First of purpose steady. I think our approach this job, not only did nobody force you all, I believe there is a very real prob- has been reasonable. to take it, but a lot of good people lem in auditor independence. If I were We will send to the President legisla- worked hard to keep you from getting a member of this new accounting over- tion establishing a solid statutory it—I am not complaining, but part of sight board that we are going to put framework for the reforms we know are our problem has been that the media into place and I had to vote on the nine urgently needed. has wanted to present this as a debate prohibited areas that are written into Our markets have benefited beyond that had to do with how tough people law in the bill, I would want to study measure from the statutory framework were being, to the exclusion, often, in them in detail. I might very well sup- that created the SEC nearly 70 years my opinion, of how reasonable we need port all nine of them. I do not believe ago. Indeed, I think we have had a to be. they should be written into law. tendency to take that for granted. We have before the Senate a bill that The advantages of letting the board Those markets have been a very sig- is clearly an improvement over the sta- set these standards—it seems to me nificant economic asset for the United tus quo. I don’t care how disappointed that there are three: States, and an integral part of our eco- you are in any one provision—and on No. 1, the board is going to have nomic strength. This legislation will several provisions I am very dis- more time and more expertise than we serve to complement and reinforce that appointed. No matter how disappointed have and is likely to do a better job.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7353 No. 2, if we make a mistake and we principle, and if your company meets codified a 1991 Supreme Court decision write it into law, it is hard to fix these conditions, you are granted the that addressed what happens if you things that are written into law. As waiver? Then, all they have to do is think you have been wronged. We are Alan Greenspan has said, if Glass- prove they meet the conditions. not talking about criminal activity. Steagall, Depression-era banking legis- My concern—and who knows, maybe We are not talking about SEC enforce- lation, had been a regulation, it clearly this will be true, maybe it will not. The ment. We are not talking about the would have been changed by the 1950s. problem is we are legislating. We don’t Justice Department. We are talking We did not change it until 1999. It took know. We can’t look into the future. about civil disputes that people have. a long time to change it. My concern is that by not granting Under that law, in codifying what the Finally, and probably of greatest im- them the ability to provide blanket 1991 Supreme Court decision said, we portance, there is a natural tendency waivers we are going to force a lot of said that within a year after you be- when we are talking about the problem smaller companies to hire lawyers and lieve you have been wronged, you have in an era where we are all reading lobbyists to come to Washington to pe- to file your lawsuit, and within 3 years about Enron and WorldCom and the tition the SEC and the board. My con- after the event happens, you have to huge companies, to forget this law will cern is that this is going to use up file your lawsuit. apply to 16,254 companies. Many of their time and use up the resources of One of the things this bill does, these companies are quite small. One companies. which I oppose, is it raises that to 2 of the advantages of allowing the ac- There is another side of this story years and 5 years, respectively. I would counting oversight board to set out and that is the concern that blanket say that if there were evidence that prohibitions on auditors performing waivers could be used to get around the people were not getting these lawsuits other services in regulation, instead of intent of the law. How do you deal with filed because of a lack of time, that prescribing them in law, is that the that? How do you find a happy balance? under the circumstances I think that board can find a system whereby they It is not an easy question. I would have increasing the statute of limitations can recognize what is practical in deal- to say I believe we have imposed a one- would have been justified. But as we ing with smaller companies and how size-fits-all regimentation that is going have looked at the data, the mean av- that might differ from what is prac- to be difficult to deal with—not impos- erage lawsuit is filed 11 days after the tical for General Motors. sible to deal with, but I think it is injury is discovered. Something like 90 An example that has come to my going to be difficult. percent of the lawsuits are filed in the mind is one where I am operating a Another problem I have is that we first 6 months. It seems to me that this small public company, stock traded on have in this bill an accounting over- provision and other provisions of the an exchange or on Nasdaq, and I em- sight board. Its members are not elect- bill that expand the ability of people to ploy an accounting firm that has a ed officials. They are not appointed in sue may have a positive effect in mak- CPA who basically does my auditing. the sense that they are not Govern- ing people pay attention to their busi- He is in Houston. I am trying to hire a ment officials. They will have the abil- ness, but we all know, based on our new bookkeeper in my company. I have ity to make decisions that will affect legal system, that it is going to be three candidates. When my auditor is the livelihood of Americans who are in abused and that very heavy costs are in town auditing my books, I say: I the accounting profession. They will going to be imposed on the private sec- have these three candidates. I majored literally have the ability to say to a tor of the economy as litigation costs in physics in college, and I don’t know CPA: We are taking your license away ultimately are added to the cost of the anything about accounting. Could you and you can never practice again in product that is produced and reduced interview these three bookkeepers and providing accounting services to a pub- from the stock value held by share- tell me who you think would be best? licly traded company. holders. Under this bill, that would be illegal. Clearly, there are cases where that is I could go on and on. There are other That would be providing a personnel justified. Clearly, there are cases where people who want to speak. We are service. It is prohibited for my auditor people ought to be fined and, clearly, under a time limit. But let me sum up. to provide that service for me as well. there are cases where people ought to For General Motors, should your be put in prison. But I think when you I thought about this long and hard, auditor be providing a personnel serv- are taking people’s livelihoods, they and as I thought about this bill, I had ice? My guess is they probably should ought to have an opportunity to appeal to weigh, Does it do more good than not. But for this small company in Col- to the Federal district court where harm? I have concluded that it does. It lege Station, Texas, what this prohibi- they live. does less good than it could have done; tion ultimately will do is force them to I think there ought to be a burden on it does more harm than it should have do one of three things: In all prob- them to make their case, and obviously done—we could have corrected these ability, they will hire the bookkeeper the court is going to take into account things—but, quite frankly, in the envi- without ever getting the advice of a that this board, that was duly con- ronment we were in it was impossible. CPA; No. 2, they can hire another CPA stituted, made a decision. But I think In the environment we were in, where to interview these three candidates for that is an opportunity that people everything was judged on some concept a bookkeeper and pay them; No. 3, they ought to have that they do not have of being tough rather than on practi- can file for a waiver through the SEC under this bill. cality and workability, it was impos- and through the board. Each option is I am also concerned about litigation. sible for us to come back and deal with a worse choice from those available to During the whole Clinton administra- these problems. such a small company today, and a tion, there was only one bill where we Finally, in the timeframe that we all worse choice for its shareholders. overrode the President’s veto, and that faced in conference, we never really got The bill allows a waiver on an indi- was a bill having to do with private se- around to discussing the practical vidual company by company basis. I re- curities litigation reform. We had a kinds of things that do not seem im- joice that is the case. I personally be- massive number of predatory strike portant when you are writing law but lieve we should have given the board, suits where people filed lawsuits seem very important 2 or 5 years later with the agreement of the SEC, the against companies. They almost al- when you are implementing it. ability to grant blanket waivers based ways settled out of court. We had one Having said all that, I cannot stand on the circumstances of classes of indi- law firm that filed the lion’s share of up here and argue that this bill has vidual companies. the lawsuits. And the chief lawyer in worsened the status quo. This bill is For example, if you have already that company said, in effect, ‘‘It is better than the status quo for two rea- granted 1,000 waivers where companies wonderful to practice law where you sons. No. 1, change needs to be made have applied for a waiver for a certain don’t have clients.’’ and criminal penalties need to be requirement based on their size, their That was a mistake when he said raised. These independent boards need location, practicality, the cost, what- that, but he said it. to be established, and 90 percent of this ever, at that point shouldn’t the board We took action to try to eliminate or bill, in my opinion, clearly represents a be able to say: We have established this minimize this abuse. In doing so, we step in the right direction.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7354 CONGRESSIONAL RECORD — SENATE July 25, 2002 But, second—and this may sound like how the whole thing played out, it ance to small businesses and small ac- strange logic but I think it is impor- worked out from that point of view counting firms that they can continue tant. I think to understand American pretty much right. to operate the way they have in the government you have to understand it. If people on Wall Street are listening past. The American people expect Congress to the debate and trying to figure out We have given encouragement to the to respond to a problem. We may not whether they should be concerned States not to run out and apply the know the answer. We may not have about this bill, I think they can rightly same types of laws. I hope the States perfect knowledge. But they expect us feel that this bill could have been much are paying attention because they will to try to do something about it. That worse. I think if people had wanted to ruin a very good thing if they destroy in and of itself is an argument to which be irresponsible, this is a bill on which small business. Keep the eye on small we should respond. they could have been irresponsible and business, and we will continue to have I would argue—being a conservative, almost anything would have passed on big business. as everyone engaged in this debate the floor of the Senate. Corporations have been checking knows—I would argue we need to be I think given where we are on this what has been going on in their firms careful. But in the end this bill is an bill that it is a testament to the fact to a greater extent than they have ever improvement on the status quo. It that our system works pretty well. before. Boards, CEOs, CFOs, and audit could have been better. There are I yield the floor. committees have been checking to see changes that could have been made The PRESIDING OFFICER (Mr. if they have the kinds of problems that that were not. But in the end, I cannot EDWARDS). Who yields time? brought down these other companies. Mr. GRAMM. Mr. President, I yield argue that this bill should not pass, It is much like when there is a plane 12 minutes to the Senator from Wyo- should not become law. The President crash. Right after a plane crash is ming. probably the safest time in the world is going to sign the bill, and clearly he The PRESIDING OFFICER. The Sen- to fly because everybody checks their should. ator from Wyoming. I do believe we will have to come Mr. ENZI. Thank you, Mr. President. equipment ever so much more carefully back after the fact and we will have to I am here today to speak in support to make sure that the kind of defects correct some of these issues. I think as of the conference report to the ac- that may have caused other problems time goes on we will see we may not counting reform bill. I will be encour- will not happen to them. And the effect have done enough in one area. Maybe aging all Senators to vote for the con- lasts for a long time afterwards. we went overboard in another area. But ference report. Corporations have been checking the Congress will meet again, people This is earthshaking legislation that their books. They have begun changing will be paid to do this work, and I am has been done with tremendous speed. procedures. Some of the changes they confident that it will be done. It had to be earthshaking because we have made have resulted in restate- So let me conclude on this thought. I are trying to counteract the tremors ments. They have paid a price for doing believe the marketplace has gone a from the volcanic action of the moun- restatements. But they have done the long way toward solving this problem. taintop being blown off such companies right thing by doing a restatement, I think the New York Stock Exchange as Enron, WorldCom, Global Crossing, and they should be recognized for that. action was excellent. Once again, they and others. Those collapses have set up I mentioned speed before. The Senate are proving that they are a great insti- a series of tremors across this country. is not designed for speed. We started tution. As I have often said about the Congress is not the one to solve all out slow. We held 10 hearings. We New York Stock Exchange, I feel as if the problems. But as Senator GRAMM looked at the issues very carefully, ev- I am standing on holy ground at the just mentioned, we are expected to erybody resolved in writing their own New York Stock Exchange. work at solving all of the problems. We ideas. Every boardroom is different from have put in a huge effort on this bill, One of the tough things about legis- what it was before this crisis started. and it will make a difference. lating is putting it down in writing. No one sitting on a board, corporate While we have been working, the The concepts are so easy, but the de- board or an audit committee, will ever stock market has been going through tails are so tough. be the same. No auditors will ever look some tremendous gyrations. I think There are a number of people who at their task the way they did before some of those reactions in the stock drafted bills on this—both in the House all of this started, at least for a very market were to see how carefully we and in the Senate. On this side, Sen- long time. or at least for a very long would consider and resolve this issue. I ator GRAMM and I drafted a bill. Sen- time. believe, the stock market was worried ator CORZINE and Senator DODD intro- One of the advantages of having that we would overreact. The market duced a bill. Of course, Senator SAR- structure is when they forget, the watched to see if Congress would keep BANES had the overreaching bill, and I structure won’t forget. I totally agree adding and adding things, until we de- believe his benefited a little bit from with that. I think this represents a stroyed the whole system. They can having copies of both the House and complement to it. now see that did not happen—Congress Senate bills on which to build his bill. There is much in here I would have acted responsibly. We took a long and I compliment him for the way he took done differently. But in the end, I tough look at the problem and reacted, ideas from all of these different ap- think this is a response that people can but we did not overreact. At the same proaches. say the Government did hear, the Gov- time corporations across the country Again, it shows the value of legis- ernment did care, and Congress did try have been making sure they did not lating by a wide variety of people. You to fix it. I don’t doubt that there are have the kinds of problems brought to get a wide variety of viewpoints, which mistakes in here. I think I could name light in a few of these companies. actually provides some insights into some, if asked to. But, on the whole, ‘‘Corporations’’ should not be a bad areas that a person might not have this is a response that was aimed at word in this country. This country was thought about. the problem. People went about it in a built on business. But, at any rate, we concluded the reasonable manner. I always like to mention that it was hearings, and we merged the bill. This Certainly, the authors of this bill in- primarily built on small business— came to committee the week before the tended to do as good a job as they small businesses that grew up, in many Fourth of July. It passed out of com- could do. cases, but nevertheless ideas that mittee in one day. It came to the floor I again want to congratulate Senator started out as a small business. of this body just 2 weeks ago. And now, SARBANES. I also want to thank him, We have to keep our focus on those it has already been conferenced, and looking back now at how quickly the small businesses, and make sure they come back to us for final passage. Part conference went. I know people were are able to continue to operate in the of that is a result of the atmosphere we unhappy when we had this period when climate that we have in the United are in, and the need for action. Timing the floor was tied up, and there were States and under the laws that we pass. can be everything on a bill. But part of numerous amendments people wanted I am pleased to say that the actions it is because of the concentration of to add to the bill. But I think, given we took in this bill provide some assur- people who worked on this.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7355 This legislation is a response to prob- and CORZINE and GRAMM. Senator expensive to require these companies lems highlighted by the recent corpora- EDWARDS worked with me on one provi- to hire a separate auditing firm to per- tion failures of Enron, WorldCom, and sion that is in this bill to make sure form this responsibility. That problem others. It does send a clear signal to that not only accountants, analysts, was also recognized, and the needed corporate America that executives can CEOs, CFOs, Boards and audit commit- changes were made. no longer abuse the trust their share- tees were addressed under this bill, but However, I also understand that due holders place in them without severe lawyers have some responsibility, too. to the time constraints, a report will consequences. I find it very exciting we are going to not be filed with the bill. I think this This legislation builds a strong and make lawyers have a code of ethics will pose a series of problems because independent board to oversee the ac- when they are dealing with the Securi- we will not be defining what the au- counting industry. It will eliminate the ties and Exchange Commission, and thors actually intended with certain climate of self-regulation that has his- that they are going to have an obliga- sections of the bill and allowing the torically guided accounting. tion to report things when they find same written discourse that there However, I would like to make one them. I know that causes some con- would be on the bill. I think this may point clear. I believe that, overall, ac- sternation among some attorneys, but especially cause problems with the ex- countants take their responsibilities I think it will make, overall, the same traordinary number of regulations that very seriously. They did before, and kind of improvements we are expecting are going to have to be written to im- they do now. We have the best system from everybody else. plement the bill. in the world. What we are doing with Senators ALLEN, GREGG, BAUCUS, As the ranking member of the sub- this is to maintain that we have the GRASSLEY, and KENNEDY all worked on committee with jurisdiction over the best system in the world. Most ac- some provisions that we don’t talk Securities and Exchange Commission, I countants are honest and hard work- about too much; again, it is in the de- do intend to work closely with the ing. They work for the benefit of the tail area, but it has to do with the Commission to ensure that the new investors with probably the same per- blackout period when you are dealing regulations are consistent with what I centage of exceptions as other profes- with pension and other stock sales by see as congressional intent. I will work sions. executives. I know the intense hours it with others to make sure these regula- This legislation will also provide for took to come up with a solution that tions conform. strong disciplinary action against ex- would work. And if you have that many I ask the ranking member, could I ecutives who break the law. No longer people agreeing on it, there is probably have an additional 3 minutes? will they be disciplined with a slap on a good chance it will work. Mr. GRAMM. Sure. the wrist. The bill recognizes that ex- Again, I congratulate all those people Mr. President, I yield an additional 3 ecutives who destroy the dreams of in- for their constraint in limiting their minutes to the Senator from Wyoming. vestors by irresponsible and unethical ideas to what needed to be done for this The PRESIDING OFFICER. The Sen- behavior will be given the severe pun- bill. A lot of ideas were floating around ator from Wyoming. ishment they deserve. here on lots of things we can with cor- Mr. ENZI. I thank the Senator. I also want to again thank Senator porations and executives that people Mr. President, some of the issues SARBANES and Senator GRAMM for their want to have fixed, but this bill did that did not come up in this bill dealt leadership on this issue. They both maintain some real constraint to stay with FASB. We did something mar- have worked tirelessly the past few on topic. velous for FASB. We made sure of its months to get this bill finished in a I do believe the conference report is independence. One way we made sure of timely manner. I particularly appre- an improved bill from the one that its independence, besides citing in the ciate some of the insights Senator passed the Senate. Again, I appreciate law, was to make sure FASB has inde- GRAMM gave me as he worked on this Senator SARBANES working with me to pendent funding. They will not have to bill in more detail than most people make some of the changes about which come to Congress with a budget. And ever achieve. It is his standard, and he I spoke. they will not have to go to corporate carried that out again this time, which One change we made changes the im- America for funding. They will get did resolve a number of the problems. I plication that not all nonaudited serv- independent funding to be able to do want to congratulate Senator SAR- ices should be presumed illegal. The the job they need to do. That will in- BANES, and thank him for the way he bill has been changed to clearly allow hibit us from trying to change what conducted the hearings. A lot of people the audit committee to make that de- they are doing in setting accounting do not realize that the Chairman of a termination without the law implying standards. committee usually gets to pick most of that it is illegal. I am pleased to state that we have the witnesses, and the ranking member In addition, he made some changes taken a look at the things they are gets to pick a few of the witnesses. dealing with the testing of internal working on right now. They are work- As we went through these 10 hear- compliance. I believe the new language ing on four issues that are extremely ings, I couldn’t find any witnesses that more clearly represents the true role of important to make sure what happened I wouldn’t have picked were I given the auditors. One of the problems we dealt with other companies will not happen selection. There were some very quali- with throughout this process is edu- again. fied people who testified. Some of them cating Members on exactly what the I have to tell you, in those four were even accountants. I did appreciate role of an auditor is. I believe the new things they have listed as a priority, that. I apologize for asking some ques- language represents that realization, one of them is not stock options and tions of them but it was such a great and I thank the chairman for making what to do with them. They do need to opportunity for me. My staff noticed the change. address that, but I certainly hope that that when the camera focused in on the There is another important change in Congress does not decide that what we person giving the answer, the wedge of the provision dealing with corporate see as a problem does supersede other people behind them were all asleep. loans. The provision would still pro- problems that may have caused col- So what we dealt with is not the kind hibit corporate executives from reap- lapses such as Enron’s. of thing that Americans get really ex- ing millions of dollars in loans from So I hope we will not get in a posi- cited about. It is far too detailed for us their companies, but the new language tion of dictating now to FASB what to get too excited about it. For ac- also realizes that executives need to they should be working on, and in what countants, these kinds of discussions use things such as credit cards to con- order, and to what degree, or, worse are almost like watching ESPN. duct their business. So this section is a yet, just going ahead and passing ac- Senator SARBANES did continue to vast improvement. counting standards on our own. meet with me and other Members and Another item I would like to com- With respect to section 302, the con- continued to make changes that im- ment on is the understanding that in- ference recognizes that results pre- proved the bill. There was a wide vari- surance companies, many times, have sented in financial statements often ety of Senators who worked on this audits they must file with their State necessarily require accompanying dis- bill. I have mentioned Senators DODD regulators. It would be burdensome and closures in order to apprise investors of

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7356 CONGRESSIONAL RECORD — SENATE July 25, 2002 the company’s true financial condition enact implementing regulations that that I suspect, within an hour or so, we and results of operations. The supple- are ‘‘necessary or appropriate in the will adopt, and, hopefully, unani- mental information contained in these public interest.’’ I believe it is the in- mously, as we did the original bill that additional disclosures increases trans- tent of the conferees to permit the came out of the Senate. parency for investors. Accordingly, the Commission wide latitude in using I think it is historic. I think it is relevant officers must certify that the their rulemaking authority to deal truly critical in bringing about the financial statements together with the with technical matters such as the kind of important reforms that will disclosures contained in the periodic scope of the definitions and their appli- make a real difference to our financial report, taken as a whole, are appro- cability to foreign issuers. I would en- system, not just today but I think as a priate and fairly represent, in all mate- courage the SEC to use its authority to standard it will be very much an im- rial respects, the operations and finan- make the act as workable as possible portant part of the structure of our fi- cial condition of the issuer. consistent with longstanding SEC in- nancial system for decades to come. I also believe the conferees con- terpretations. I have said often, since we have template that the Board will have dis- Finally, I not only thank the Sen- talked about this legislation, that it cretion to contract or outsource cer- ators I have been able to work with on really does, in my mind, fill a large gap tain tasks to be undertaken pursuant this, but I also thank the staffs. I that has been missing in our securities to this legislation and the regulations thank particularly Katherine McGuire, laws that were written 70 years ago. I promulgated under the Act. The Board my legislative director, and Mike think it very well may be the most im- may outsource functions which can be Thompson, who handles my banking portant step we will have taken in that done more efficiently by existing and issues. I also thank Kristi Sansonetti, interim period, to make sure we have a established organization. An exercise who works on all of my legal issues, measured but strong securities and re- of discretion in this manner does not and Ilyse Schuman, who played a very porting structure in our Nation that absolve the Board of responsibility for important role in the blackout pension makes for the depth and breadth and the proper execution of the contracted period. beauty and effectiveness of our finan- cial markets. or outsourced tasks. I thank, on Senator SARBANES’s staff, This legislation, as has been noted, I also believe that the Conferees ex- Steve Harris, Marty Gruenberg, Steve comprehensively deals with reform of pect that the Board and the standard Kroll, Dean Shahinian, Lynsey Gra- our accounting profession, enhances setting body will deem investment ham, and Vince Meehan. corporate accountability, improves companies registered under Section 8 I thank, on Senator GRAMM’s staff, transparency, moderates conflicts in a of the Investment Company Act of 1940 Wayne Abernathy, Linda Lord, who is number of parts of our financial world, to be a class of issuers for purposes of probably one of the most knowledge- deals with the transparency of cor- establishing the fees pursuant to this able lawyers in this area I have ever porate financial statements, strength- section, and that investment compa- encountered, Michelle Jackson and ens the SEC, tightens penalties and nies as a class will pay a fee rate that Stacie Thomas. more securely sets the law, and ulti- is consistent with the reduced risk And, on Senator DODD’s staff, I thank mately, I believe, will restore the they pose to investors when compared Alex Sternhell. trust, the needed trust, and investor to an individual company. Audits of in- America will never know all the confidence in the integrity of Amer- vestment companies are substantially work these people have done on this ica’s capital markets. less complex than audits of corporate bill, the hours they have spent on it, This was an absolutely necessary entities. The failure to treat invest- daytime and nighttime. I have seen step at this time in our Nation’s his- ment companies as a separate class of them working in the early morning tory. There has been an enormous be- issuers would result in investment hours on this, and that is after spend- trayal of trust, demonstrated, cer- companies paying a disproportionate ing the previous night working on it. tainly, by the headlines and the litany level of fees. They have just spent incredible time of corporate abuses. Let me say, it goes In addition, I believe we need to be on this. deeper than just the headlines. There clear with respect to the area of for- There is some incredible expertise have been 1,100 corporate earnings re- eign issuers and their coverage under among these people. Without their statements in the last 4 years. There is the bill’s broad definitions. While for- help, we would have never gotten to a basic loss of more than just the sim- eign issuers can be listed and traded in this point. So I thank all of them. ple sense of trust that people get from the U.S. if they agree to conform to I thank the chairman and Senator the headlines. It is hard for people to GAAP and New York Stock Exchange GRAMM and all the others who have had make investment decisions when they rules, the SEC historically has per- a part in this. It is time we adopt this don’t have good facts, good numbers, mitted the home country of the issuer bill. and the ability to draw good conclu- to implement corporate governance I yield the floor. sions about where the investor dollar standards. Foreign issuers are not part The PRESIDING OFFICER. The Sen- should go. of the current problems being seen in ator from Maryland. It has led to a misallocation of cap- the U.S. capital markets, and I do not Mr. SARBANES. Mr. President, let ital. And there was a serious need for believe it was the intent of the con- me first say, I think Senator ENZI has people to have reform in this area be- ferees to export U.S. standards dis- been extremely gracious in recognizing cause this betrayal really went at the regarding the sovereignty of other the extraordinary contribution that heart of why people were employees of countries as well as their regulators. has been made by the staff as we have various firms, why investors put their I also realize inconsistencies appear formulated this legislation. I appre- trust in investing in companies, and in sections 302 and 906. The SEC is re- ciate him doing that. I certainly asso- why the American system, which so re- quired to complete rulemaking within ciate myself with his remarks about lies on trust, has been called into ques- 30 days after the date of enactment the dedication and the perseverance tion with respect to the integrity of with regard to CEO certification under and the extraordinarily high level of our financial markets in recent days. section 302. However, section 906 sug- competence that is brought to this It is an extraordinary step. I am gests that certification would be re- matter by staff on both sides of the pleased to have been a part of it. quired upon enactment, thus the pen- aisle—committee staff and personal I see the chairman just left the alties would go into effect before the staff. Chamber. I want to take a few mo- certification requirement is completed Mr. President, I yield 10 minutes to ments to make sure he knows how through the rulemaking process. I be- the Senator from New Jersey. strongly I feel about the leadership he lieve it was the intent of the Conferees The PRESIDING OFFICER. The Sen- played. For those who were not a part that the penalties under section 906 ator from New Jersey. of this measured process that Chair- should not become effective until the Mr. CORZINE. Mr. President, I am man SARBANES put forward—I have rulemaking process is finalized. honored today to stand before the Sen- said this to him personally—the 10 Under the conference report, section ate to express my strong support and hearings we had were the moral equiva- 3(a) gives the SEC wide authority to appreciation for the conference report lent of a graduate finance program. I

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7357 suspect that very few times in congres- could work together in a bipartisan tors and employees and the public need sional history have we seen the break- way to come to a thoughtful, measured to see addressed, and that is pension down in the detail and presentation of response that will make a difference, reform. I know working their way sophisticated information, complicated that really will move our securities through Congress right now are a num- topics, presented with the security and laws in a direction that will give the ber of initiatives on it. Fewer than 50 integrity that were presented in our American people confidence in how percent of Americans have pensions. hearings that led to the creation of they read an income statement, when We have a major need to address this. this legislation. He did an incredible they look at a balance sheet and when We should pull it together in as job of putting together a bill. they judge where they want to work, thoughtful a way as Chairman Sar- I get a little nervous when I hear peo- that they will have the necessary infor- banes has led our Senate to this con- ple say this was a rush to justice, a mation. clusion, led this debate to a positive rush to an answer. This was one of the I am not going to go into detail on conclusion. I hope we will address that most thoughtful and measured pro- the bill. Senator SARBANES and Sen- in the future. So, once again, I express grams of review put in place before the ator ENZI did that. It is a great piece of my great gratitude to all those in- legislation was written that absolutely legislation. I don’t think it went too volved. I particularly thank Chairman could ever have been conceived. He de- far at all. In fact, I think it is about SARBANES for his strong leadership. serves enormous credit for making sure spot on. I am sure there will be things Mr. SARBANES. Mr. President, I we were thoughtful in the process. we will need to review in time, tweak thank the able Senator from New Jer- Like Senator ENZI, I compliment all with, but this is a good set of initia- sey for his kind and gracious remarks the staffs who were involved in this. tives which will make a difference in about my efforts. I underscore the This was an incredible effort on all of America’s financial system. enormously valuable contribution that their parts. From the bottom of my When we address these issues, it does Senator CORZINE made to the develop- heart—and I am sure all those others beg to recognize that there are addi- ment not only of this legislation but who were involved in this process—I tional tasks that need to be addressed. all of the work that has come before truly appreciate the thoughtfulness I heard the chairman talk about it is the committee. He brought a perspec- and care they all gave to it. not good enough to authorize; we have tive and perception here that were ex- I also would be remiss if I did not to appropriate the funds to go with the tremely important, enabling us to mention Senator DODD for his great necessary obligations we put on the work through some difficult issues. I help in originally putting together our SEC; we need to make sure our new ad- appreciate that. initiatives with regard to accounting visory board actually has the re- I yield 7 minutes to the Senator from reform, corporate oversight, and sources. I think we do. But their inde- Vermont, chairman of the Judiciary resourcing the SEC, which I think are pendence, their ability to function, will Committee. The PRESIDING OFFICER. The Sen- fundamental parts of the legislation. come because they have the resources. ator from Vermont is recognized. We feel good about that. I think Sen- The same as the SEC; we have to do Mr. LEAHY. Mr. President, I thank ator DODD has taken an extraordinary our job in the second part of this to the chairman. The Senator from Cali- step in leadership. make sure those resources are avail- fornia wishes 1 minute. I yield 1 minute Once again, I say to the Senator from able. to her. Wyoming, this is about making Amer- We do need to make sure the SEC Mrs. BOXER. Mr. President, I came ica better. It is fundamentally about Commissioners are in place so that we to the floor to give my deepest thanks doing the right thing at the right time. can have a credible process of looking to Senator SARBANES and Senator His leadership on that, to make sure at enforcement and review of laws and LEAHY for leading us in just the way we we stayed constrained, as he says, making sure that as we structure the needed to be led toward a tough, fair thoughtful, and measured about how SEC in the days going forward, we have reform that would lead to confidence in we addressed the problem, has been the best of minds brought to bear our financial system. I also thank Sen- most appropriate, and I have appre- there. I hope we can vote on these ator ENZI for his work. ciated the opportunity to work with Commissioners very quickly. I was a stockbroker years ago, dec- him. I compliment him for that effort. For myself—I know there are dif- ades ago, and in those days the big ac- I would say the same about the Pre- ferences of views about this—there are counting firms were known for their siding Officer. The addition of a num- other unmet items on the agenda. Not integrity, and CEOs were highly re- ber of the amendments that have come, necessarily do they apply to this bill, spected. That check and balance was particularly with regard to bringing in but in my view we should, as a nation, lost along the way and it must be re- the responsibility that is associated deal with the stock options issue. I stored. with lawyering in America, as impor- don’t think Congress should write the I believe this bill will do it and our tant as it is for accountants and CFOs accounting rules, but I believe to rec- people will, once again, have trust and and CEOs, I think was an important ognize that stock options are an ex- confidence in our financial system. step. There has been a lot of really pense is relatively self-evident to those They will know when they read an an- great effort here. who have operated in business. They nual report and it is signed off on by an Now that the chairman is back in the are used as a substitute for compensa- accounting firm that it means what it Chamber, I want to say again, this is a tion. Compensation is an expense. That says and says what it means. That will classic example of quality leadership, is why you see Chairman Greenspan bring the stock market back into bal- of thoughtful leadership, and getting to and all of what I think is the critical ance. It will not happen tomorrow. a result that will make a difference in weight of those who have observed on This isn’t magic legislation. But over the lives of Americans in the years this issue speaking out that this is an time confidence will be restored and ahead. issue that needs to be addressed. The our economy will be on solid footing This is a little more personal for me Bermuda registry of companies, deriva- once again. I thank my friends. because for the 5 years before I came tives regulation are also issues. Mr. LEAHY. Mr. President, I thank here, I was a CEO. Sometimes you Could I have 1 additional minute? Chairman SARBANES for his leadership want to hide from that moniker these Mr. SARBANES. I yield an additional on this impressive bill and on the con- days since it is not so popular. I think minute. ference agreement. The then-Congress- these days about the words of Andy The PRESIDING OFFICER. The Sen- man SARBANES was one of the first peo- Grove, who said that he was ashamed ator may continue. ple I met when I came to Washington and embarrassed by some of the ac- Mr. CORZINE. We need to address as an elected Member of this body. We tions and many of the actions that are these issues. There are missing gaps in have been friends from that time for- associated with the abuse we have other parts of our oversight of our se- ward. I have been so pleased to work seen. I stand with Andy Grove on that. curities markets and financial markets with him. This is not one of our prouder mo- that need to be addressed. I am proud that the conference agree- ments in our financial system. But Finally, I believe there is a gaping ment includes and adopts the provi- what does make me proud is that we hole in our oversight of what our inves- sions of the Leahy-McCain amendment,

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7358 CONGRESSIONAL RECORD — SENATE July 25, 2002 which the Senate adopted by a 97-to-0 out in Judiciary Committee make sure This comes on the heels of the disclo- vote—again, with the strong help and whistleblowers are protected. sure of corporate corruption that has support of the Senator from Maryland. Third, we include new anti-shredding been endemic in recent months, where These provisions are nearly identical crimes and the requirement that cor- we have witnessed lost jobs, lost sav- to the Corporate and Criminal Fraud porate audit documents be preserved ings, lost pensions, and ultimately lost Accountability Act, which I introduced for 5 years with a 10 year maximum confidence worldwide in America’s cap- with Majority Leader DASCHLE and penalty for willful violations. Prosecu- ital markets. others in February. It was reported tors cannot prove their cases without There is an urgency that strong leg- unanimously by the Senate Judiciary evidence. As the Andersen case showed, islation be passed by this body and the Committee in April. instead of just incorporating the loop- Congress to restore confidence—restore The Presiding Officer helped get this holes from existing crimes and raising both the perception and the reality of through the Judiciary Committee. The the penalties, we need tough new provi- integrity in our capital markets. Leahy-McCain amendment provides sions that will make sure key docu- This legislation is strong legislation. new crimes with tough criminal pen- ments do not get shredded in the first That is why it has been applauded by alties to restore accountability and place. editorial writers from the east coast to transparency in our markets. It accom- It only takes a minute to warm up the west coast. Senator SARBANES has plishes this in three ways: No. 1. It the shredder, but it can take years for been the subject of much congratula- punishes criminals who commit cor- prosecutors and victims to prove a tory observation on the part of so porate fraud. No. 2. It preserves evi- case. many. This comes on the heels of, dence that can prove corporate fraud. The conference report also maintains frankly, much weaker legislation that No. 3. It protects victims of corporate almost identical provisions to those had been passed previously in the fraud. authored by Senator BIDEN and ap- House of Representatives, the other As a former prosecutor, I know noth- proved unanimously by the Senate. body. ing focuses one’s attention on the ques- These include enhanced criminal pen- By passing a strong Senate bill, we tion of morality like seeing steel bars alties for pension fraud, mail fraud, were able to go to conference. I am closing on them for a number of years wire fraud, and a new crime for certi- proud to have served on that con- because of what they did. fying false financial reports. As chair- ference committee and to craft legisla- The conference report includes a man of the Judiciary’s Subcommittee tion there that goes in the direction of tough new crime of securities fraud on Crime and Drugs, Senator BIDEN de- the Senate rather than in the direction which will cover any scheme or artifice serves praise for his leadership of these of the other body and gives this Nation to defraud investors. We added the issues. strong securities legislation. It pro- longer jail term of the other body. It is time for action—decisive and vides a stiff penalty for corporate There are three key provisions of the comprehensive reforms that will re- wrongdoing, creates a strong oversight Senate-passed bill that were not in the store confidence and accountability in board to ensure that corporate audits recently passed House bill but are now our public markets for the millions of are done properly, and that the books, in the conference agreement. I think Americans whose economic security is in fact, are not cooked. It imposes they are truly an essential part of a threatened by corporate greed. tough new corporate responsibility comprehensive reform measure. First, We cannot stop greed, but we can standards and implements control over we extend the statute of limitations in keep greed from succeeding. stock analysts’ conflicts of interest, so We have seized this moment to make securities fraud cases. In many of the they are not making a fortune while a good beginning to fashion protections State pension funds cases, the current advising their clients to invest. It re- for corporate fraud victims, preserve quires public companies to quickly and short statute has barred fraud victims evidence of corporate crimes and hold from seeking recovery for Enron’s mis- accurately disclose financial informa- corporate wrongdoers accountable. We tion. It ensures that the Securities and deeds in 1997 and 1998. For example, have much to do to help repair the Exchange Commission has the re- Washington State’s policemen, fire- breaches of trust that have so shat- sources to accomplish its mission of fighters, and teachers were blocked tered confidence in our markets and regulating the securities markets. from recovery of nearly $50 million in market information. We have made a These important provisions will en- Enron investments by the short statute good start today toward restoring that sure that America’s financial markets of limitations. That is why the last two confidence but more will be needed. In remain efficient and transparent and SEC Chairmen—one a Republican and addition we will need swift and strong the envy of the world. It will benefit the other a Democrat—endorsed a enforcement actions and good faith ad- average people who may not have had longer short statute of limitations to ministration of the reform set forth in enough information to make informed provide victims with a fair chance to our conference report. Our conference decisions in the past and certainly recoup their losses. is concluding but our work is just be- could not have possibly known that the Secondly, we include meaningful pro- ginning. books were cooked, that the audits tections for corporate whistleblowers, Again, I thank the Senator from were incorrect, and that corruption as passed by the Senate. We learned Maryland. was running rife. They had no way of from Sherron Watkins of Enron that Mr. SARBANES. Mr. President, I knowing that. these corporate insiders are the key thank the Senator from Vermont. I un- This will turn that around. This is witnesses that need to be encouraged derscore again how important his con- not the last word, but this is a criti- to report fraud and help prove it in tributions were. The Senate Judiciary cally important step in the right direc- court. Enron wanted to silence her as a Committee reported out a bill without tion to returning integrity to our mar- whistleblower because Texas law would opposition in the committee. That is kets. We can observe, having come allow them to do it. Look what they something which accompanied this leg- through this horrible experience in re- were doing on this chart. There is no islation. cent months of disclosure after disclo- way we could have known about this I yield 4 minutes to the Senator from sure of corruption having taken place, without that kind of a whistleblower. South Dakota, and then it is my inten- a recognition that free market econo- Look at this. They had all these hidden tion to go to the Senator from North mies can only work when there is a cop corporations—Jedi, Kenobi, Chewco, Carolina. on the beat. Free market economies Big Doe—I guess they must have had Mr. JOHNSON. Mr. President, most can only work when there are fair, ‘‘little doe’’—Yosemite, Cactus, Pon- of all I thank him for his extraordinary well-enforced, and strictly enforced derosa, Raptor, Braveheart. I think leadership on the development of this rules. A free market economy without they were probably watching too many landmark legislation. I think it is fair rules, without a cop on the beat, is not old reruns when they put this together. to say this is the most critically im- an economy that will ever work at all. The fact is, they were hiding hundreds portant piece of investor protection This goes a long way, I believe, to re- of millions of dollars of stockholders’ legislation since the Securities Act of viving confidence in America’s eco- money in their pension funds. The pro- 1933 or the Securities Exchange Act of nomic future. It goes a long way to re- visions Senator GRASSLEY and I worked 1934. storing the fairness and transparency

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7359 so that people may make their invest- their homes. I have been in homes and I believe it goes way beyond mere ac- ments—and investments may go up, spent time with families whose child counting issues. What we are agreeing and they may go down, but they can will never walk, who have been blinded to today deals with the financial secu- know when they make those invest- for life, who have been crippled for life, rity of millions of individual investors ments, they are making those invest- who have suffered injuries from which across this country, the security of ments based on true and accurate anal- they will never recover. their pensions, their 401(k) programs, ysis and not on bogus numbers that These children blinded for life, crip- and their other investments for the fu- some audit firm on the take has been pled for life, severely injured for life— ture of their children and their grand- willing to put forward as the truth there is a description in the HHS re- children. when, in fact, they are not the truth. port on which the President is relying What we are talking about today in- Again, the whole Nation owes a great which talks about when juries find volves the very vitality of our econ- deal of gratitude to Chairman SAR- they have been hurt and award money omy, the amount of investment that BANES and to the Senate, in this case, to them, they describe it as ‘‘winning will take place in the economy, the for what I am confident is going to be the lottery ticket.’’ The parents of a number of jobs that will be created, an overwhelming vote in favor of this child who has been blinded for life, the and the vitality of farms. It involves legislation. parents of a child who will never walk, the standing of AMERICA in the inter- I yield the floor. rest assured they do not believe they national economy, whether we will Mr. SARBANES. Mr. President, I have the winning lottery ticket. continue to be a safe haven for invest- yield 6 minutes to the Senator from My question is: How many of those ments from those abroad, attracting North Carolina. people are the President talking to the capital that helps us build a strong The PRESIDING OFFICER (Mr. when he is in North Carolina today? foundation for America’s economy. CORZINE). The Senator from North The next time he comes back to North More than anything else, this bill Carolina. Carolina, we invite him to talk to some embodies the basic values upon which Mr. EDWARDS. Mr. President, I of those people because those are the this has been based. It clearly answers thank, along with all my colleagues, ordinary Americans to whom he should the question: Will we continue to en- Senator SARBANES for the extraor- be talking. Those are the people who courage those virtues that have always dinary work he has done on this bill. are going to be impacted. The children characterized America and will our Na- We are proud of him. America appre- who have suffered serious injuries are tion continue to be the land of oppor- ciates very much what he and others the ones who are going to have the tunity based upon hard work, honesty, who have worked with him have done. greatest impact and have their rights and playing by the rules or, will we be I also thank Senator ENZI, who is in taken away by what the President is perceived as the land of opportunity the Chamber, and Senator CORZINE, proposing. based upon deceit. I believe that the who is presiding, for the work they Unfortunately, listening to ordinary right answer, based upon traditional have done with me on what I think is people is not what this administration values and virtues, is embodied in the an important part of this legislation does. They have done it time and time accounting reform and corporate re- which, in addition to corporate CEOs again. It is stunning, but it is sad and sponsibility bill. and accountants, is holding the law- consistent. When this administration I congratulate our colleagues, Sen- yers involved in these transactions re- has a choice between protecting the ators SARBANES, DODD, CORZINE and sponsible and accountable; that if they rights of big companies, big insurance ENZI. They demonstrated leadership see something wrong occurring, they companies versus the rights of ordi- and foresight in this issue. should do something about it—report it nary people, they choose the big insur- Since the tragedies of 9/11, our coun- to their client, to the corporation, re- ance company, the big companies every try has been involved in twin struggles: port it to the CEO, the chief legal offi- single time. They have been dragged One, the physical national security of cer and, if necessary, report it to the kicking and screaming to do something this country; and, second, getting this board. about corporate responsibility, which economy moving again to ensure the In Congress, we are doing what needs we are doing in the Congress. economic security of Americans across to be done and stepping to the plate On the Patients’ Bill of Rights, on this country. There are parallels be- with regard to corporate responsibility. which Senator KENNEDY, Senator tween these two challenges. Both oc- That is in striking contrast to what is MCCAIN, and I have worked so hard, curred as a result of unexpected trage- going on in my home State right now. they have consistently sided with the dies but have presented us with oppor- At a time when Americans are de- big HMOs, which is why we do not have tunities to make this an even better, manding more corporate responsi- a Patients’ Bill of Rights in this coun- stronger, more secure Nation. Both in- bility, when Congress is stepping up try. volve breaking the political gridlock and doing what needs to be done, the On prescription drugs, when we tried and the bureaucratic inertia that all President has gone to North Carolina to do something about the cost of pre- too often make progress in this Capitol today to ask for less corporate respon- scription drugs on the floor of the Sen- difficult. And both involve striking the sibility, to make it easier on insurance ate, this administration consistently right balance between individual free- companies and to make it harder on sided with the big drug companies. dom and liberty on the one hand, that victims. When it comes to the environment, we cherish, and collective security, The President is in North Carolina this administration has weakened which makes individual liberty mean- today proposing some of the smallest clean air laws that protect the air for ingful, on the other. limits that have ever been proposed for our children and consistently sided Let me conclude where I began. This families who have suffered tragedies, with the big energy companies that are issue goes a long way beyond mere ac- serious problems, as a result of poor polluting our air. counting issues. It goes a long way be- medical care at a time when medical Today the President adds to that list, yond economic policy. It goes to the malpractice insurance premiums con- in going to the State of North Caro- very heart of who we are, what we stitute way less than 1 percent, sub- lina, the big insurance companies. This stand for as a people, and the kind of stantially less than 1 percent, of med- President loves to talk about compas- values we cherish in the United States ical care costs in this country. sion. My question to him is: Where is of America. This will protect indi- The President is holding a round- his compassion for the victims? vidual investors. It will help to ensure table, as I speak, on this subject. I Mr. President, I yield the floor. the integrity of our economy. But more would like to see how many victims of Mr. BAYH. Mr. President, I rise than anything else, it will ensure that medical negligence, of medical mal- today in support of the accounting re- those Americans who have embraced practice, people who have been dev- form and corporate responsibility con- our tradition with virtues, who have astated and their lives devastated, are ference agreement. I do so, because I worked hard and saved their money, participating in this roundtable. I believe very strongly that it is in the who have played by the rules, and are know these people. For many years I best interests of America at this crit- honest are able to get ahead in this so- have represented them. I have been in ical time in our history. ciety.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7360 CONGRESSIONAL RECORD — SENATE July 25, 2002 It will send a loud and clear signal to The conference report requires CEOs the headlines read ‘‘Sarbanes bill dead’’ those who practice corporate fraud to certify their financial statements or or ‘‘Accounting Reform Fading.’’ that they do not have an avenue to suc- face up to 20 years in prison for fal- In the wake of recent revelations cess in this country. That does not em- sifying information on reports. It keeps about WorldCom and just 2 days ago body the best values of America. I executives from obtaining corporate Merck, corporate corruption has strongly support the accounting reform loans that are not available to out- reached an all-time high; we are now at and corporate responsibility conference siders. It requires public companies to a new level of corporate corruption. agreement. I urge my colleagues to provide periodic reports to the SEC on We’ve reached a new low and the ques- enact this important legislation. off-balance transactions, arrange- tion every member of the Senate must Mr. KERRY. Mr. President, I strong- ments, obligations and other relation- be asking is: ‘‘Where does it end?’’ ly support the Sarbanes-Oxley Act of ships that may have a material current Buzzwords like ‘‘accounting fraud,’’ 2002 because it will help end the cor- or future effect on the company’s fi- ‘‘corporate corruption,’’ ‘‘Restate- porate abuses that in recent months nancial condition. It requires directors, ments,’’ ‘‘Cooking the books,’’ are have plagued our economy and will officers and 10 percent equity holders being bandied about in the press, in the help restore confidence in our econ- to report their purchases and sales of coffee shops, at the dinner tables omy. I would like to take this oppor- company securities within two days of across America. Just this weekend at tunity to express my appreciation for the transaction. the Taste of Buffalo, people came up to the efforts that Senator PAUL SAR- I am pleased that the conference re- me and said ‘‘Throw ‘em in jail, BANES, Chairman of the Senate Bank- port includes the Corporate Fraud and Chuck!’’ They were talking about the ing, Housing and Urban Affairs Com- Criminal Fraud Accountability Act Ken Lay’s, Bernard Ebers’, the Andrew mittee, has made to develop and enact which will provide for criminal pros- Fasdow’s of the corporate world. White this important legislation. As a former ecution and enhanced penalties of per- collar criminals who ran giant corpora- member of the Banking Committee, I sons who defraud investors in publicly tions and used tricky gimmicks to rob know how difficult it is to respond traded securities or alter or destroy investors of not only their hard money quickly to recent events that affected evidence in Federal investigations. It but also their confidence in the strong- our capital markets. However, Senator will also prohibit debts incurred in vio- est and fairest markets in the world. SARBANES has put together a coalition lation of securities fraud laws from * * * They are the investment giants: which led to a unanimous vote in sup- being discharged in bankruptcy and Enron, Arthur Andersen, Adelphia, port of his bill in the Senate, and the protect whistle blowers who report CMS Energy, Reliant Resources, provisions of which is the base text for fraud against retaliation by their em- Dynergy, Tyco International, and now this conference report. ployers. Xerox and WorldCom. A mere handful The United States must stand for the The conference report requires the of our nations top companies who have fairest, most transparent and efficient SEC to adopt rules to foster greater gone under as a result of misrepre- financial markets in the world. How- public confidence in securities research sented earnings and poor management. ever, the trust and confidence of the including: protecting the objectivity In less than a years time, these so- American people in their financial and independence of stock analysts called investment giants through the markets have been dangerously eroded who publish research intended for the great gift of deceit and tricky account- by the emergence of serious accounting public by prohibiting the pre-publica- ing practices have reduced themselves irregularities by some companies and tion clearance of such research or rec- to mere shells of their former exist- possible fraudulent actions by compa- ommendations by investment banking ence. nies like WorldCom, Inc., Enron, Ar- or other staff not directly responsible As a result, their use of tricky gim- thur Andersen and others. Some in- for investment research; disclosing micks to hide the real picture and lit- vestment banks have been charged whether the public company being ana- erally milk the system dry have caused with publicly recommending stocks for lyzed has been a client of the analyst’s investors around the globe to question public purchase that their own ana- firm and what services the firm pro- integrity of our nations markets, lysts regarded as junk. vided; limiting the supervision of re- which are supposed to be the strongest The shocking malfeasance by these search analysts to officials not engaged and most resilient because they are businesses and accounting firms has in investment banking activities; pro- perceived as the most open, most put a strain on the growth of our econ- tecting securities analysts from retal- transparent markets in the world. Up omy. The misconduct by a few senior iation by investment banking staff. until now, the United States had been executives has cost the jobs of hard- The provisions included in this legis- a magnet for foreign investment. Yet, working Americans, including 17,000 at lation will help restore confidence in the selfish, greedy actions of a small WorldCom and thousands more at com- our capital markets and in turn will few have led to a steady and precipi- panies accused of similar wrongdoing. help provide for future economic tous drop in foreign investment in our The lack of faith in our financial mar- growth. It is an important first step, financial markets. kets contributed to an overall decline not a last. Mr. President, I am pleased It is no secret that greed played a in stock values and has caused grave to support the Conference Report and major role in our markets rapid decline losses to individual investors and pen- will continue to look for ways to im- and slow demise. The heads of these en- sion funds. For example, the losses to prove investor confidence in our finan- tities stole millions, some billions of the California Public Employees Re- cial markets. dollars from investors, and it is now tirement System from the recent Mr. SCHUMER. Mr. President, every- time that we make them pay for their WorldCom disclosures total more than one knows that New York City is the actions. $580 million. financial capital of the world. Yet as I commend the NASDAQ and the New The conference report creates a new we continue to rebuild our city in light York Stock Exchange for their an- Public Company Accounting Oversight of the tragic events of September 11, nouncements of new, tough corporate Board to oversee the auditing of com- we are now faced with the devastating governance standards. The New York panies that are subject to the federal effects of depressed markets and un- markets have taken the first steps to securities laws. The Board will estab- sure investors, who are once again vic- correct corporate corruption, and now lish auditing, quality control, and eth- tims. With more than half of American it is our turn to find the right balance ical standards for accounting firms. households investing in the markets, in light of these unsteady markets and The conference report restricts ac- we’re all affected by a crisis in investor times. counting firms from providing a num- confidence. So what is the right balance? The ber of non-audit services to its audit I can’t think of a more appropriate right balance is one that will not only clients to preserve the firm’s independ- time than the present for the Senate to offer strict corporate governance laws, ence. It also requires accounting firms debate legislation to restore dwindling protect the average investor from to change the lead or coordinating investor confidence and bring sound being swindled out of his or her hard partners for a company every five footing back to our financial markets. earned savings by a fast-talking, years. Isn’t it ironic? Just a few weeks ago, wheeling and dealing broker, but will

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7361 also severely punish those individuals tion. But the legislation goes much fur- section in the Sarbanes-Oxley Act, pro- who intentionally mislead investors ther, as it should, because the problem vides for regular and systematic re- with faulty practices. That is why I am goes much deeper. We are faced with views by the Securities and Exchange introducing the following amendments more than the wrong doing of indi- Commission of the periodic reports to the Public Company Accounting Re- vidual executives, we are faced with a filed by public companies that are list- form and Investor Protection Act of crisis in confidence in American cap- ed on a national securities exchange or 2002 to further limit the ability of com- ital markets and American business. on Nasdaq. The section requires that pany execs from personally manipu- This conference report retains the there be some review of issuers’ disclo- lating and rigging the system for their strong Senate reforms virtually intact. sures at least once every three years. personal benefit and interest. It bars an auditor from offering audit The bill identifies factors which the The first amendment prohibits com- services and other consulting services Commission should consider in sched- panies from issuing personal loans to to the same client. It says publically uling reviews, including the issuer’s company executives as seen with traded companies must change the capitalization, stock price volatility Worldcom, whose CEO received more partner in charge of the audit every and restatements of earnings. We ex- than $300,000 in loans from the tech- five years. It strengthens oversight of pect the Commission to exercise its nology giant. Instead, CEOs will have accountants, by establishing an inde- discretion to determine the appro- to go to the bank, just like everyone pendent board to set and enforce stand- priate level and scope of review for else, to acquire a loan; which, will re- ards. And it enhances disclosure. This each company’s reports in the further- duce the risk of CEOs ability to use alone is real reform. But the bill does ance of the protection of investors and company funds for personal purposes. more. It makes corporate executives the public interest. The second amendment requires com- more accountable to their share- The PRESIDING OFFICER. Who pany execs to forfeit any and all bo- holders. It makes investment analysts yields time? nuses and additional compensation if more accountable to the public. And Mr. SARBANES. Mr. President, may their restatements occur along with it’s bill contains strong penalties for I ask what the time situation is? criminal liability. corporate wrong-doers. The PRESIDING OFFICER. The Sen- It is my hope that by revealing the All and all, this legislation lets the ator from Maryland has 15 minutes 10 few bad apples at the bottom of the sunshine back into the smoke-filled seconds. The Senator from Wyoming barrel, and punishing these individuals corporate board rooms so that insiders has 21 minutes 30 seconds. for their immoral behavior, we can have harder time cheating the out- Mr. SARBANES. I yield 3 minutes to save the rest of the industry and re- siders. It is structural reform that re- the Senator from New York. store confidence in our markets. stores checks and balances that will The PRESIDING OFFICER. The Sen- The legislation pending before us will protect against fraud, deception, and ator from New York. make it harder for companies to lie reckless carelessness. Mr. SCHUMER. I thank the Chair. about their assets. Thats the least we We need to restore America’s faith in Mr. President, this is an extremely can do in re-establishing public con- corporate America. It has gone beyond important day for our capital markets, fidence in corporate America. Our com- individual wrong doing. The system for our country, and for the future of mon purpose today is to ensure that hides and encourages corruption. our economy. As we all know, cap- the Enron’s, the Tyco’s, and the Today the Congress passes strong re- italism has its ups and downs and WorldCom’s never happen again. works in ups and downs, and there have Now is the time for us to act. It is form. Now I call on the President to been periods throughout our history—I the least we can do to shore up the in- make enactment and enforcement of can think of the S&L crisis a decade vesting public’s confidence in our mar- this new law a priority. ago—where things get off track, out of kets. Mr. BOND. Mr. President, last night, Mr. WELLSTONE. Mr. President, 2 the conference committee released its control. It is our job as Government years ago it was pretty lonely being in final report on comprehensive account- not to interfere with entrepreneurial favor of the auditor independence re- ing reform and corporate governance vigor, not to create such regulation forms that then-SEC Chairman Arthur legislation. The reaction of our finan- that they become a straitjacketed Levitt said were necessary to guard cial markets confirms that this legisla- company, but at the time when the against unprecedented accounting tion is absolutely necessary to help re- markets show that things have gotten scandals. I am proud that I was one of store integrity and confidence to our off track, it is our job to help put them the few who thought Chairman Levitt free market system and our investment back on track. was going in the right direction. Unfor- community. There is a bottom line principle here: tunately it took the implosion of sev- However, in our rush to enact broad If investors, whether throughout the eral multi-billion dollar firms, and a reforms, we may be damaging the eco- United States or the rest of the world, loss of tens of thousands of jobs and nomic framework for small companies do not believe companies are on the hundreds of billions of dollars in inves- to reach our capital markets. In the level, they will not invest. Unfortu- tor equity, to prove that he was right. long term, the reforms will make our nately, the revelations of the last year Now America’s capital markets have economy stronger. In the short term, have given people the view that they been shaken by a dramatic loss in in- we will be creating complete chaos for are not on the level. That it is not the vestor confidence, threatening the eco- small publicly traded companies and same for them in terms of even infor- nomic recovery. companies trying to gain the capital mation as it is for somebody at the top, But today, Congress has acted. I rise for growth through stock offerings. that the information they may be get- today in strong support of the Public I am extremely disappointed in the ting may be wrong or distorted far be- Company Accounting Reform and In- conferees’ decision not to recognize yond what they normally would in the vestor Protection Act conference re- this fact and provide the Securities and world. So this bill puts that back. port. I commend the Senator from Exchange Commission and the pro- I think it is a carefully balanced bill. Maryland, the Chairman of the Bank- posed Public Company Accounting There are some changes in it. There are ing Committee for putting together Oversight Board with greater flexi- some changes not in it that I would significant, structural reform of cor- bility in dealing with small firms. like to have seen, but the perfect porate governance and auditor inde- Small business has been the driving should not be the enemy of the good. It pendence and for defending it in con- force of our economy for well over a is a good bill, a fine bill. In fact, when ference. decade. The high hurdles in the legisla- the agreement was reached, the Dow And I am heartened that the Presi- tion are necessary for large, conglom- Jones went up 400 points. I do not dent and the House leadership have fi- erate companies but they may be a trip think it was coincidental. Whether it nally agreed to comprehensive reform wire for our small business entrepre- be CEOs of large companies or indi- instead of mere half-measures and neurial community. vidual investors, the public is saying to tough rhetoric. Mr. SARBANES. Mr. President, I us, make it right. Look at the abuses This bill holds the bad actors ac- note that the Congress, in the En- that occurred in the past and make countable for their fraud and decep- hanced Review of Periodic Disclosures sure they cannot occur again, and do it

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7362 CONGRESSIONAL RECORD — SENATE July 25, 2002 in a careful way that keeps our mar- mous way we achieved the result and here without him. I tip my hat to him kets fluid, liquid, deep, and important. overwhelming support of the Senate and to MIKE ENZI, the only Member of I think this bill does it. and the House fulfill a responsibility of this Chamber who actually knew some- I want to pay a great deal of tribute Congress to protect investors. There is thing at a practical level about what it to our chairman, Senator SARBANES, more work to be done, but we have was to be an accountant and what life and to so many others who made this begun a significant part of the journey. was like in the trenches. bill a reality. With the passage of this In fact, we traveled a great distance For the staff and others who worked bill, we can tell investors, while we down the road in fulfilling a congres- on this legislation, this was not the have not cleared up every problem, and sional responsibility in responding to most popular idea in the world. Had it perhaps we will come back and address the events that began to unfold, at not been for unfolding events, I am not this later—I think we will have to in a least to the public’s awareness, last Oc- sure we would have developed that couple areas—we have certainly made tober. And the story is not yet com- kind of support. I will love to one day things better. plete. We do not know the final results. tell my daughter, who is only an in- A few weeks ago, Washington looked I have a few minutes in which to fant, that it was the power of our per- as if it was dithering in the face of cri- share some thoughts. I am going to suasion which convinced a majority sis, but today we proudly act in a bi- move quickly to share comments. I here to go along. partisan way to restore faith in our begin by commending my colleague Not many understood the value, the markets, the deepest, strongest, and from Maryland, the chairman of the substantive value, of this bill. MIKE best markets in the world. Banking Committee, for the tremen- ENZI did, a number of others did, there I dare say, I know there are some dous job he has done. I said yesterday, were many in the House who did, but who are against any change or any reg- any students of the Congress of the an awful lot of people, even as late as ulation, but our markets will be United States who want to seek out a week ago, were suggesting maybe stronger tomorrow than they were this good examples of how a legislative this bill was a bad idea, and that it morning when this bill passes the product can be developed, nurtured, would not go anywhere, and it House, the Senate, and is signed by the analyzed, discussed, debated, and fi- shouldn’t go anywhere; we ought to President. nally passed, this is about as good an spend another couple of months think- The PRESIDING OFFICER. Who example as I have seen in recent years ing about it. yields time? of how one ought to proceed. Certainly Those notices were not a month old, Mr. SARBANES. Mr. President, we the hearings we held in the Banking or 2 months old; that was 5 or 6 day are down quite far in our time. Senator Committee I don’t recall attracting ago. I understand it was the public’s demand that we respond to this that DODD, who wishes to speak, is at a me- much attention. I don’t recall a single had an awful lot to do with the support morial service. I suggest if the other one of the 12 hearings we held appear- we garnered. That is all right. I never side could use some of its time, it ing on the nightly news or being lead argue about how you get support would be helpful in balancing this out. stories on some of the 24-hour news around here as long as you get it in the I ask unanimous consent that while we stations. end. We got it in the end, and that is are trying to work this out the time I recall a great many hearings where people sat there, raised their right the important news. not be charged to either party, and I The fact is, we are about to vote hand, and took the fifth amendment. suggest the absence of a quorum. overwhelmingly to support a very crit- That got a lot of attention. The 12 The PRESIDING OFFICER. The ical piece of legislation. I am con- hearings held in the Banking Com- clerk will call the roll. fident, as he has already indicated, mittee of the Senate, where we went The legislative clerk proceeded to that the President will sign this bill through the deliberate, slow, ponderous call the roll. into law. We are already seeing mar- Mr. ENZI. Mr. President, I ask unani- process of actually listening to people kets respond, not entirely because of mous consent that the order for the who had something to say about what this, but certainly in no small measure quorum call be rescinded. ought to be done to clean up this mess, because of the events that have un- The PRESIDING OFFICER. Without never made it on the nightly news that folded and the parts Congress played. objection, it is so ordered. I am aware of. The chairman of the committee has Mr. ENZI. I suggest the absence of a I commend again my friend and col- talked about part of the bill. There are quorum. league with whom I have enjoyed my very important pieces, including the The PRESIDING OFFICER. The service in the Congress of the United auditor independence. The board will clerk will call the roll. States for more than a quarter of a be revolutionary in how it operates. The assistant legislative clerk pro- century. We have sat next to each Someone pointed out today, a lot of ceeded to call the roll. other for a good part of that time in what the regulators do will determine Mr. SARBANES. Mr. President, I ask both the House and in this Chamber. I the value of what we have written leg- unanimous consent that the order for sit next to him on the Foreign Affairs islatively. I am confident that will be the quorum call be rescinded. Committee and on the Banking Com- the case. The PRESIDING OFFICER. Without mittee. If I could make the choice and Having FASB now be compensated objection, it is so ordered. it would not be determined by senior- for and paid for from public money and Mr. SARBANES. Mr. President, I ity, I would make him my choice for not relying on the largess and gen- yield 8 minutes to the distinguished seatmate. I have great respect for him erosity of the accounting industry to Senator from Connecticut. and admire him immensely. He has receive compensation will make a sig- The PRESIDING OFFICER. The Sen- proven the value of having PAUL SAR- nificant difference in establishing ac- ator from Connecticut. BANES as a Member of this body. counting rules and procedures. Cer- Mr. DODD. Mr. President, when we I also point out the Presiding Officer, tainly having prohibitions against opened the conference on this legisla- one of the most junior Members of this those going from the industry, working tion a week or so ago, I said my hope Chamber, who provided an incredible, for the clients for whom they have was the passage of this bill would be invaluable support and source of ideas, done audits, will have a beneficial ef- quick, decisive, and unanimous. Two guidance. Rarely does a new Member fect on slowing down this not only ap- out of three is not bad. We got quick play such an important role on such an pearance of conflict, but certainly the and decisive and almost unanimous. important piece of legislation. Of any conflicts of interest that have occurred Our colleague from Texas, and our Member who was involved in this proc- too often. friend, was unable to support the final ess, MIKE ENZI of Wyoming and others There are many other parts of the product for reasons he has already ex- all would agree, in any history written bill, including corporate penalties, that plained. of the development of the bill, the role were crafted by our colleague from I thought we did an excellent job in of a freshman Senator from the State Vermont and other Members of the Ju- moving as quickly as we did. I believe of New Jersey named JON CORZINE diciary Committee, that deserve a passage of the legislation and the quick needs to be talked about. He played a great deal of credit for their contribu- and decisive manner and nearly unani- very important role. We would not be tion to this process. The leadership,

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7363 Senator DASCHLE, certainly for insist- I look forward to your vibrancy, your to talk with me about the need for ing we move as rapidly as we did to get ideas, and your passion in whatever audit independence. Senator SARBANES the product done in committee and get role you decide to assume in the next and others have made that possible. it on the floor of the Senate, under- part of your life, and thank you for the Many people took their savings, con- standing how important this issue tremendous work you have given to the verted it to stock, and thought it would be to the shareholder interests committee and this body through your would be there for their children or and pensioners and to others who de- service. grandchildren. Many people had 401(k)s pend upon a solid, strong economy for I thank again the chairman and they were counting on. All of this has their well-being—certainly their con- other members of the committee for eroded in value. Investors do not have tribution is extremely important as contributing to what may be one of the the confidence in the economy. I think well. most important pieces of legislation the key is to make the structural We have seen the economy begin to this body will consider in the 107th change and make sure people can count do a bit better. I don’t think our work Congress and one of the most impor- on the independent audits, that no one is done, despite the accomplishments tant in the area of financial services in is cooking their books. This is the best in this legislation. My hope would be many, many decades. of government oversight. I am very that before this Senate adjourns in a I yield the floor. proud to support this legislation. week and a half from now, we might The PRESIDING OFFICER. Who Once again, I thank the chair of the deal with the pension issue. I don’t yields time? Banking Committee for exceptional know if that will be possible. I know Mr. GRAMM. Mr. President, how leadership. there are a lot of other issues that need much time do we have? I yield the floor. to be considered. My hope is if we are The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- not able to do that in the next week ator from Texas has 14 minutes. ator from Maryland. and a half, we will come back soon Mr. GRAMM. We were going to shoot Mr. SARBANES. Mr. President, as after we reconvene in September. for about 4:30 so I may yield some of it Senator GRAMM was speaking earlier I I sit on the Health, Education, Labor, back, depending on who comes over. was thinking to myself that he really and Pensions Committee with the pre- Let me, first, thank my dear col- was exemplifying on the floor of the siding officer who is interested in that league, Senator DODD, for his kind Senate the sort of dialog we went committee. My hope is that we can comments. I have enjoyed working through in the committee. As he was deal with the pension reform matters with him over the years. I very much making an argument about auditor that are necessary, as well, for adop- appreciate the comments he made. independence, I was thinking that is tion by this Congress before the 107th I want to say something about my really a very reasonable argument and Congress adjourns. staff. A famous philosopher once said: one to which we really paid attention. Again, I commend all those involved. In no way can you get a keener insight I want to give the counterargument, I thank Alex Sternhill of my office, into the true nature of a leader than by and then make a concluding comment Steve Harris, Marty Gruenberg, all the looking at the people by whom he sur- about the terrific work of the staff on Members who worked with the chair- rounds himself. this bill. man’s committee and the full com- I would always be happy to have any- Senator GRAMM has suggested that mittee of the Senate Banking Com- body judge me by Linda Lord and by the conference report should be mittee, and those on the minority side, Wayne Abernathy. It is amazing how changed to give the SEC or the Over- as well, who played an extremely im- much impact staffers have on the Sen- sight Board authority to grant broad portant role. ate. I am blessed in this area to have categorical exemptions from the list of While he disagreed with the final out- two of the best staff people who have non-audit services that Section 201 of come of the bill, the Senator from ever served any Senator in the history Texas and I have had a great relation- the bill prohibits registered public ac- of this country. On most issues on ship over these many years we have counting firms to provide to public which I worked with Linda Lord, she served together. I have always enjoyed company audit clients. knows more about this subject than Such a change, in my view, would being on his side. He is a tough oppo- anybody, and generally more than ev- weaken one of the fundamental objec- nent, but when we worked together we erybody else combined. In working tives of the conference report: to draw have done some pretty good work with her, I see that the Lord was a a bright line around a limited list of around here and passed some pretty great discriminator; he gave some peo- non-audit services that accounting good bills. He is leaving and I believe the Senate ple incredible ability and most of us he firms may not provide to public com- will be less vibrant an institution be- gave relatively few, in the way of tal- pany audit clients because their doing cause of his absence. It is important ents. I thank her for the great job she so creates a fundamental conflict of in- that this place be a place of ideas for has done. terest for the accounting firms. debate to occur, and the Senator from I thank Wayne Abernathy. In the This limited list is based on a set of Texas has always made that kind of years I was chairman of the Banking simple principles: contribution. Committee, Wayne Abernathy was A public company auditor, in order The PRESIDING OFFICER. The time chairman of the Banking Committee. to be independent, should not audit its of the Senator has expired. In the day-to-day work, he has made an own work (as it would if it provided in- Mr. DODD. Hang on. I am com- incredible contribution. If there is an ternal audit outsourcing services, fi- mending him. He is going to give me unfairness to it, it is that I have gotten nancial information systems design, more time. credit for all the good work that they appraisal or valuation services, actu- Mr. GRAMM. The Senator can have have done, and I am grateful for that. arial services, or bookkeeping services all the time he wants. I reserve the remainder of my time. to an audit client). Mr. DODD. Mr. President, I have The PRESIDING OFFICER. Who A public company auditor should not learned after more than 20 years that if yields time? function as part of management or as you want the minority to give you a Mr. SARBANES. How much time do I an employee of the audit client (as it little more time, start complementing have remaining? would if it provided human resources them. It is amazing. Egos are alive and The PRESIDING OFFICER. The Sen- services such as recruiting, hiring, and well in the Senate. ator has 3 minutes remaining. designing compensation packages for I am going to miss him. He is not Mr. SARBANES. I yield 1 minute to the officers, directors, and managers of done. We have more work, obviously, in the Senator from Minnesota. an audit client). the remaining weeks, but this may be Mr. WELLSTONE. I thank the Sen- A public company auditor, to be inde- one of the last major bills the Banking ator from Maryland. I thank him forhis pendent, should not act as an advocate Committee considers. I don’t know great leadership and the other Sen- of its audit client (as it would if it pro- what life holds for him down the road, ators working on this. I can only say vided legal and expert services to an but the good Lord is not done with him this in 1 minute: I remember when Ar- audit client in judicial or regulatory yet. thur Levitt came by several years ago proceedings.)

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7364 CONGRESSIONAL RECORD — SENATE July 25, 2002 A public company auditor should not tioning as the president of the com- former Comptroller General Charles be a promoter of the company’s stock pany. There would have been no need Bowsher, former SEC Chairman Arthur or other financial interests (as it would for an SEC action if the non-audit serv- Levitt, and former Federal Reserve be if it served as a broker-dealer, in- ice were simply prohibited. Board Chairman Paul Volcker. vestment adviser, or investment bank- The inherent conflict created by The argument is made that small er for the company). these consulting services has been ex- companies, in particular, may be bur- I want to emphasize that Section 201 acerbated by their rapid growth in the dened by this requirement and that the does not bar accounting firms from of- last 15 years. According to the SEC, 55 SEC should have broad authority to fering consulting services. It simply re- percent of the average revenue of the grant categorical exemptions. It is quires that they not offer certain con- big five accounting firms came from even argued that so many companies sulting services to public companies accounting and auditing services in would seek case-by-case exemptions for which they wish to serve as ‘‘inde- 1988. Twenty-two percent of the aver- that the SEC would become over- pendent auditor.’’ An accounting firm age revenue came from management whelmed and would be unable to proc- is free to offer any services it wants to consulting services. By 1999, those fig- ess the exemptions in a timely manner. any public companies it does not audit ures had fallen to 31 percent for ac- The point is that if the provision of a (or to any private companies). It also counting and auditing services, and non-audit service to a public company may engage in any non-audit service, risen to 50 percent for management audit client creates a conflict of inter- including tax services, that is not on consulting services. Recent data re- est for the accounting firm that non- the list for an audit client if the activ- ported to the SEC showed on average audit service should be prohibited, ity is approved in advance by the audit public accounting firms’ non-audit fees whether the public company is large or committee of the public company. comprised 73 percent of their total fees, small. Investors rely on the audit in The conference report does authorize or $2.69 in non-audit fees for every $1.00 making their investment decisions, and the new Oversight Board, on a case-by- in audit fees. the independence of the audit should case basis, to exempt any person, A number of the most knowledgeable not be compromised by the provision of issuer, public accounting firm, or and thoughtful witnesses who testified the non-audit service. If a legitimate transaction from the prohibition on before the Senate Banking Committee exceptional hardship is imposed, then the provision of non-audit services to in the hearings held in preparation for the Oversight Board would have the au- the extent that such exemption is nec- this legislation argued that the growth thority to grant case-by-case exemp- essary or appropriate in the public in- in the non-audit consulting business tions. terest and is consistent with the pro- done by the large accounting firms for The present Comptroller General, tection of investors. their audit clients has so compromised David Walker, issued a particularly The exemptive authority provided the independence of the audits that a strong statement in support of the ap- the Board is intentionally narrow to complete prohibition on the provision proach to auditor independence taken apply to individual cases where the ap- of consulting services by accounting in the bill conference report I would plication of the statutory requirement firms to their public audit clients is re- like to quote: would impose some extraordinary hard- quired. Perhaps the strongest advo- I believe that legislation that will provide ship or circumstance that would merit cates of this view have been the man- a framework and guidance for the SEC to use in setting independence standards for public an exemption consistent with the pro- agers of large pension funds who are entrusted with people’s retirement sav- company audits is needed. History has shown tection of the public interest and the that the AICPA [American Institute of Cer- protection of investors. ings. tified Public Accountants] and the SEC have But the fundamental presumption of For example, the California Public failed to update their independence stand- the provision is that these non-audit Employees’ Retirement System ards in a timely fashion and that past up- services, by their very nature, present (CalPERS), manages pension and dates have not adequately protected the a conflict of interest for an accounting health benefits for more than 1.3 mil- public’s interests. In addition, the account- firm if provided to a public company lion members and has aggregate hold- ing profession has placed too much emphasis audit client. ings totaling almost $150 billion. Ac- on growing non-audit fees and not enough emphasis on modernizing the auditing pro- Arthur Andersen was conflicted be- cording to CalPERS CEO, James E. Burton: fession for the 21st century environment. cause it served Enron as both an audi- Congress is the proper body to promulgate a tor and a consultant, and for two years the inherent conflicts created when an ex- framework for the SEC to use in connection it also served as Enron’s internal audi- ternal auditor is simultaneously receiving with independence related regulatory and en- tor, essentially auditing its own work. fees from a company for non-audit work can- forcement actions in order to help ensure not be remedied by anything less than a Enron was Andersen’s largest client, confidence in financial reporting and safe- bright-line ban. An accounting firm should guard investors and the public’s interests. and in 2000 Andersen earned $27 million be an auditor or a consultant, but not both in consulting fees from the company The independence provision [of the bill] . . . to the same client. strikes a reasoned and reasonable balance ($25 million in audit fees). John Biggs is CEO of Teachers Insur- that will enable auditors to perform a range In its oversight hearing earlier this ance and Annuity Association College of non-audit services for their audit clients year on the failure of Superior Bank in Retirement Equities Fund (TIAA- and an unlimited range of non-audit services Hinsdale, Illinois, the Senate Banking CREF), the largest private pension sys- for their non-audit clients. . . . In my opin- Committee learned first-hand the risks tem in the world, which manages ap- ion, the time to act on independence legisla- associated with allowing accounting proximately $275 billion in pension as- tion is now. firms to audit their own work. In that sets for over 2 million participants in This auditor independence provision case, the accounting firm audited and the education and research commu- is at the very center of this legislation. certified a valuation of risky residual nity. Mr. Biggs was also a member of It goes to the public trust granted to assets calculated according to a meth- the last Public Oversight Board. He public accounting firms by our securi- odology it had provided as a consult- told the Committee that: ties laws which require comprehensive ant. The valuation was excessive and TIAA-CREF does not allow our public financial statements that must be pre- led to the failure of the institution. audit firm to provide any consulting services pared, in the words of the Securities The SEC’s recent actions against one to us, and our policy even bars our auditor Act of 1933, by ‘‘an independent public of the large public accounting firms from providing tax services. or certified accountant.’’ (KPMG) in an enforcement case illus- The conference report chose not to The statutory independent audit re- trates the danger of allowing an ac- follow the approach of imposing a com- quirement has two sides, a private counting firm to serve as a broker deal- plete prohibition on the provision of franchise and a public trust. It grants a er, investment advisor, or investment non-audit services to audit clients. In- franchise to the nation’s public ac- banker for a public company audit cli- stead it chose the approach of identi- countants—their services, and only ent (Porta Systems). In that case, the fying the non-audit services which by their services—must be secured before accounting firm set up an affiliate and their very nature pose a conflict of in- an issuer of securities can go to mar- the affiliate provided ‘‘turn around’’ terest and should be prohibited. Among ket, have the securities listed on the services to the issuer, including func- those supporting this approach are nation’s stock exchanges, or comply

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7365 with the reporting requirements of the Mr. SARBANES. How much time is NOT VOTING—1 securities laws. This is a source of sig- remaining? Helms nificant private benefit. The PRESIDING OFFICER. The Sen- The conference report was agreed to. But the franchise is conditional. It ator from Maryland is without time. Mr. SARBANES. Mr. President, I comes in return for the CPA’s assump- There are 12 minutes for the Senator move to reconsider the vote. tion of a public duty and obligation. As from Texas. Mr. DASCHLE. I move to lay that a unanimous Supreme Court noted Mr. GRAMM. Mr. President, we have motion on the table. nearly 20 years ago: reached the hour that we set for a vote. The motion to lay on the table was In certifying the public reports that collec- I am ready to yield back the 12 minutes agreed to. tively depict a corporation’s financial status, and have the vote proceed. the independent auditor assumes a public re- Mr. REID. I suggest the absence of a I reiterate that this is a bill that was quorum. sponsibility. . . . [That auditor] owes ulti- fraught with danger in the environ- mate allegiance to the corporation’s credi- The PRESIDING OFFICER (Mr. DAY- tors and stockholders, as well as to the in- ment that we were in. Literally any- TON). The clerk will call the roll. vesting public. This ‘‘public watchdog’’ func- thing could have passed. I think, by a The assistant legislative clerk pro- tion demands that the accountant maintain combination of good work and some ceeded to call the roll. total independence from the client at all good fortune, that has not been the Mr. REID. Madam President, I ask times and requires complete fidelity to the case. We have a vehicle before us that unanimous consent that the order for public trust. I think will be complicated. It will be the quorum call be rescinded. We must cut the chord between the difficult to implement. The PRESIDING OFFICER (Ms. audit and the consulting services which I think we will probably change it in CANTWELL). Without objection, it is so by their very nature undermine the the future. But I think in terms of our ordered. independence of the audit. We must ability to prosper under the bill, and break this culture that exists, and to for the economy to survive not only f do that we need a bright line. In my the illness but the prescription of the ORDER OF PROCEDURE view granting broad exemption author- doctor in this case, I think it is doable. Mr. REID. Madam President, I ask ity to the Oversight Board or the SEC I yield the remainder of our time. unanimous consent that immediately to permit these non-audit services The PRESIDING OFFICER. The after the cloture vote on the nomina- would undermine the separation the question is on agreeing to the con- tion of Julia Smith Gibbons, all time conference report is intended to estab- ference report. postcloture be considered used, and lish. Mr. SARBANES. Mr. President, I ask that on Monday, July 29, at 5:30 p.m., I wanted to underscore the fact that for the yeas and nays. the Senate proceed to executive session there was a very reasoned, intense dis- The PRESIDING OFFICER. Is there a to vote on the nomination of Julia cussion of these issues. There is reason sufficient second? Smith Gibbons, to be a U.S. circuit on both sides. I thought the Senator There is a sufficient second. judge; that upon confirmation, the made a very strong statement. I want- The clerk will call the roll. President be immediately notified of ed to give the counterstatement here. The assistant legislative clerk called the Senate’s action and that the Sen- I share Senator DODD’s view about the roll. this exchange of ideas and its impor- ate return to legislative session; fur- Mr. NICKLES. I announce that the ther, that on Friday, July 26, imme- tance to the functioning of this institu- Senator from North Carolina (Mr. tion. The Senator from Texas has cer- diately following the cloture vote on HELMS) is necessarily absent. tainly made an important contribution the nomination, the Senate return to I further announce that if present in that regard. legislative session and resume consid- and voting the Senator from North I wish to take a moment to recognize eration of S. 812; that Senator GREGG Carolina (Mr. HELMS) would vote the terrific work of the staff. Senator or his designee be recognized to offer a ‘‘yea.’’ GRAMM referred to Wayne Abernathy second-degree amendment; that during The PRESIDING OFFICER. Are there and Linda Lord, and of course Mike Friday’s session, there be up to 3 hours any other Senators in the Chamber de- Thompson and Katherine McGuire of for debate with respect to the amend- siring to vote? Senator ENZI’s staff; Laura Ayoud of ment, with the time equally divided the legislative counsel who worked day The result was announced—yeas 99, and controlled between Senators KEN- and night to put this thing in legisla- nays 0, as follows: NEDY and GREGG or their designees; and tive language; the staff of the Banking [Rollcall Vote No. 192 Leg.] that whenever the Senate resumes con- Committee led by Steve Harris, Dean YEAS—99 sideration of S. 812, the Gregg or des- Shahinian, Steve Kroll, Lynsey Gra- Akaka Dorgan Lugar ignee amendment remain debatable. ham, Vincent Meehan, Sarah Kline, Allard Durbin McCain The PRESIDING OFFICER. Without Allen Edwards McConnell objection, it is so ordered. Judy Keenan, Jesse Jacobs, Craig Baucus Ensign Mikulski Davis, Marty Gruenberg, Gary Gensler, Bayh Enzi Miller Mr. REID. I suggest the absence of a and, as I said, all led so ably by Steve Bennett Feingold Murkowski quorum. Harris. Biden Feinstein Murray The PRESIDING OFFICER. The Bingaman Fitzgerald Nelson (FL) clerk will call the roll. We had the very able staff of the Sen- Bond Frist Nelson (NE) ators on the committee: Alex Boxer Graham Nickles The assistant legislative clerk pro- Sternhell, Naomi Camper, Jon Berger, Breaux Gramm Reed ceeded to call the roll. Brownback Grassley Reid Mr. REID. Madam President, I ask Jimmy Williams, Catherine Cruz Bunning Gregg Roberts Wojtasik, Leslie Wooley, Margaret Burns Hagel Rockefeller unanimous consent that the order for Simmons, Matt Young, Roger Hollings- Byrd Harkin Santorum the quorum call be rescinded. worth, and Matt Pippin. Campbell Hatch Sarbanes The PRESIDING OFFICER. Without Cantwell Hollings Schumer objection, it is so ordered. I thank again all my colleagues who Carnahan Hutchinson Sessions participated. I think I recognized most Carper Hutchison Shelby f of them in the course of the day, and I Chafee Inhofe Smith (NH) want to say just a word about Chair- Cleland Inouye Smith (OR) UNANIMOUS CONSENT AGREE- Clinton Jeffords Snowe MENT— EXECUTIVE CALENDAR man OXLEY and Congressman LAFALCE Cochran Johnson Specter on the House side, who made it possible Collins Kennedy Stabenow Mr. REID. Madam President, we have for us to work through this conference Conrad Kerry Stevens spent considerable time this evening in Corzine Kohl Thomas and with whom we have worked so co- Craig Kyl Thompson a quorum call, but in spite of that, we operatively on so many issues that Crapo Landrieu Thurmond have had a very productive legislative have come before our committee. Daschle Leahy Torricelli day. We have passed the conference re- The PRESIDING OFFICER. The time Dayton Levin Voinovich port on corporate governance; the Ap- DeWine Lieberman Warner of the Senator has expired. Who yields Dodd Lincoln Wellstone propriations Committee this afternoon time? Domenici Lott Wyden reported the final four bills out of the

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7366 CONGRESSIONAL RECORD — SENATE July 25, 2002 Appropriations Committee; and we are able prescription drug coverage for all found money to fund a large tax cut finished with those and will bring them Medicare beneficiaries. Though the ma- costing $1.35 trillion last year a tax cut to the floor. We have gotten permission jority of the Senate supported this pro- that primarily benefit the very to go to the conference committee on posal, it lacked the votes necessary to wealthiest Americans. Many of my terrorism, which we have been trying proceed. fears about the decision to pass such a to do for weeks. There was significant We know that more than 1 in 3 Medi- large and unreasonable tax cut have progress made today with passage of care beneficiaries lack prescription been realized raids on Social Security the bankruptcy conference report, and drug coverage. We know, too, many and Medicare, a return to budget defi- there were other things. seniors struggle to pay for the medi- cits, instability in the financial mar- But finally, what I want to say, we cine they need to keep them healthy kets. It has forced us unnecessarily to will shortly approve in a matter of a and treat their diseases and illnesses. limit resources for those things that few minutes, four members to the Se- We know that doctors are now put in should be national priorities. I remain curities and Exchange Commission. the unthinkable position of considering astonished that some believe tax cuts That goes hand and glove with the a patient’s financial situation when de- should be a priority over providing pre- work we have done on corporate gov- veloping a course of treatment. Doc- scription drug coverage to everyday ernance. We are going to approve Cyn- tors are conflicted by this, but know Americans who have worked hard and thia Glassman to be a member, Harvey that it does not benefit the patient to paid their taxes all their lives. Jerome Goldschmid to be a member, prescribe a drug, even though it may be Yesterday, we had the chance to Roel C. Campos to be a member of the the best method of treating or curing mark the 107th Congress with the Securities and Exchange Commission, an illness, if the patient cannot afford greatest overhaul of Medicare benefits and Paul S. Atkins will also be ap- the medicine. since its inception 37 years ago. I sup- proved. We have had a very successful More importantly, I, like most of my ported the Graham prescription drug day. colleagues, continually hear from con- plan along with 51 of my colleagues be- For those watching, whether it is stituents who face this dilemma di- cause I believe it is the only proposal staff or people around the country, rectly. They are ill, they are frus- that would provide Medicare bene- sometimes during the downtimes a lot trated, and too many times, they are ficiaries with real comprehensive pre- of progress is made. Even as we speak, embarrassed to have made it this far in scription drug coverage. I only hope there is work being done to see if we life and have to ask for help after years that we can find a way to enact a can come up with a bipartisan amend- of independence. I have heard from meaningful Medicare prescription drug ment to handle the prescription drug those who may not have a direct need, benefit this year. Our older Americans problems that senior citizens have in but who are desperately seeking assist- deserve no less. America today. All in all, it was a good ance for a loved one who needs help. f day for the country. They are frustrated to learn that there I ask unanimous consent that imme- is nowhere for them to turn because IMMUNOSUPPRESSIVE DRUG diately following the cloture vote to- Medicare provides nothing for out- COVERAGE AMENDMENT morrow, Friday, the Senate proceed to patient drugs, yet they have too much Mr. DEWINE. Madam President, I executive session to consider Executive income or too many assets to qualify wish to speak to an amendment of Calendar No. 826, Christopher C. for state offered assistance. mine and my friend and colleague, Sen- Conner to be United States district The Graham proposal would provide ator DURBIN, to help organ transplant judge; that the Senate vote imme- drug coverage for all Medicare bene- patients maintain access to the life- diately on confirmation of the nomina- ficiaries for a $25 monthly premium, no saving drugs necessary to prevent their tion, the motion to reconsider be laid deductible, a $10 copayment for generic immune systems from rejecting their upon the table, and any statements be drugs, and a $40 copayment for pre- new organs. printed at the appropriate place; that ferred brand name drugs. In addition, Every year, nearly 6,000 people die the President be immediately notified Medicare beneficiaries would have all waiting for an organ transplant. Cur- of the Senate’s action, the Senate re- of their prescription costs covered after rently, over 67,000 Americans are wait- turn to legislative session, and that the they spend $4,000 in out-of-pocket ing for a donor organ. Those individ- proceeding all occur without any inter- costs. Assistance would begin with the uals who are blessed to receive an vening action or debate. very first prescription, and there would organ transplant must take immuno- The PRESIDING OFFICER. Without be no gaps or limits on the coverage suppressive drugs every day for the life objection, it is so ordered. provided. Under Senator GRAHAM’s pro- of their transplant. Failure to take f posal, low-income seniors would not be these drugs significantly increases the required to pay premiums or copay- risk of the transplanted organ being re- MORNING BUSINESS ments for their coverage. jected. Mr. REED. I ask unanimous consent Regrettably, some of my colleagues We need this amendment, because that we now proceed to a period of did not support the Graham amend- Federal law is compromising the suc- morning business with Senators al- ment. They voted instead for an alter- cess of organ transplants. Let me ex- lowed to speak for not to exceed 5 min- native that required seniors to pay a plain. Right now, current Medicare pol- utes each. $250 deductible, while only covering 50 icy denies certain transplant patients The PRESIDING OFFICER. Without percent of their prescription costs up coverage for the drugs needed to pre- objection, it is so ordered. to $3450. After a Medicare beneficiary’s vent rejection. f costs exceed $3450, he or she would re- Medicare does not pay for anti-rejec- ceive no assistance whatsoever until tion drugs for Medicare beneficiaries, MEDICARE PRESCRIPTION DRUG his or her costs reach $3700. Above who received their transplants prior to COVERAGE $3700, the government would then only becoming a Medicare beneficiary. So, Mr. SARBANES. Madam President, I pay 90 percent of drug costs. Under this for instance, if a person received a rise to express my disappointment proposal, those who are the sickest, transplant at age 64 through his or her about the outcome of the Senate’s re- with the highest drug costs, would be health insurance plan, when that per- cent vote on Medicare prescription forced to pay more when they require son retires and relies on Medicare for drug coverage. The Senate missed an assistance the most. health care coverage, he or she would opportunity to provide one of the most Many of those who opposed the Gra- no longer have immunosuppressive important expansions of Medicare ben- ham proposal complained about the drug coverage. efits since the system was created in cost of this proposal. I find it per- Medicare only pays for anti-rejection 1965. Senator GRAHAM’s proposal, of plexing that we can find money for drugs for transplants performed in a which I was proud to be an original co- other things, but not for the mothers, Medicare-approved transplant facility. sponsor with a number of my Demo- fathers, grandparents and other Ameri- However, many beneficiaries are com- cratic colleagues, would have provided cans that need our help in their older pletely unaware of this fact and how it comprehensive, voluntary, and afford- years. Opponents of the Graham bill can jeopardize their future coverage of

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7367 immunosuppressive drugs. To receive ing military operations, when it comes we decide to take to secure a more an organ transplant, a person must be to Iraq. And the argument that an open peaceful future. I don’t think the very ill and many are far too ill at the discussion of military action could, in American public has an adequate sense time of transplantation to be research- effect, become self-fulfilling is too cir- yet of the threats, dangers or options ing the complexities of Medicare cov- cular to be credible. that exist in Iraq. I don’t think Con- erage policy. I am concerned with the dangers gress has an adequate grasp of the End Stage Renal Disease, ESRD, pa- posed by Saddam Hussein, as well as issues either. And that is why addi- tients qualify for Medicare on the basis with the humanitarian situation in tional hearings and debates are so nec- of needing dialysis. If End Stage Renal Iraq. But I am also very concerned essary. Disease patients receive a kidney about the constitutional issues at Finally, I have always said that an- transplant, they qualify for Medicare stake here. This may well be one of our other military campaign against Iraq coverage for three years after the last opportunities to preserve the con- may eventually become unavoidable. transplant. After the three years are stitutionally mandated role of Con- As a result, I am pleased that S.J. Res up, they lose not only their general gress in making decisions about war 41 is neutral on the need for a military Medicare coverage, but also their cov- and peace. response, while recognizing the intrin- erage for immunosuppressive drugs. On April 17, 2002, I chaired a hearing sic value of open and honest debate. The amendment that Senator Durbin before the Constitution Subcommittee Following a vigorous debate, if we de- and I are introducing today would re- on the application of the War Powers cide that America’s interests require a move the Medicare limitations and Resolution to our current direct military response to confront make clear that all Medicare bene- antiterrorism operations. The focus of Iraqi aggression, such a response would ficiaries including End Stage Renal that hearing was to explore the limits be taken from a constitutionally uni- Disease patients who have had a trans- of the use of force authorization that fied, and inherently stronger, political plant and need immunosuppressive Congress passed in response to the at- position. We must also remember that drugs to prevent rejection of their tacks of September 11. At the hearing, constitutional unity on this question transplant, will be covered as long as leading constitutional scholars con- presents a stronger international such anti-rejection drugs are needed. cluded that the use of force resolution image of the United States to our In the Medicare, Medicaid, and for September 11 would not authorize a friends and foes, and, at the same time, SCHIP Benefits Improvement and Pro- future military strike against Iraq, un- a more comforting image of U.S. power tection Act, Congress eliminated the less some additional evidence linking to many of our close allies in the cam- 36-month time limitation for trans- Saddam Hussein directly to the at- paign against terrorism. plant recipients who: 1. received a tacks of Sept. 11 came to light. Many I am pleased to cosponsor S.J. Res. Medicare eligible transplant and 2. who of the experts also questioned the dubi- 41, and I look forward to a vigorous de- are eligible for Medicare based on age ous assertion that congressional au- bate on this issue. or disability. Our amendment would thorization from more than 10 years provide the same indefinite coverage to ago for Desert Storm could somehow f kidney transplant recipients who are lend ongoing authority for a new strike not Medicare aged or Medicare dis- on Iraq. PATIENT SAFETY AND QUALITY On June 10, I delivered a speech on abled. IMPROVEMENT ACT I urge my colleagues to support this the floor of the Senate in which I out- amendment and help those who receive lined my findings from the April hear- Mr. FRIST. Madam President, I rise Medicare-eligible transplants gain ac- ing. As I said then, I have concluded today to discuss a very critical bill—S. cess to the immunosuppressive drugs that the Constitution requires the 2590, the ‘‘Patient Safety and Quality they need to live healthy productive President to seek additional authoriza- Improvement Act.’’ This bill, which lives. tion before he can embark on a major Senators JEFFORDS, BREAUX, GREGG, and I introduced in May, represents our f new military undertaking in Iraq. I am pleased that S.J. Resolution 41 makes next step in reducing the number of pa- U.S. POLICY ON IRAQ that point in forceful legislative terms. tients harmed each year by medical er- Mr. FEINGOLD. Madam President, I So this is indeed an appropriate time rors. Although a variety of patient am pleased to cosponsor S.J. Res 41. As to consider our policy toward Iraq in safety initiatives are underway in the the resolution makes clear, the time is more detail. I look forward to hearings private sector as well as within the De- ripe for an open debate on our plans for that Senator BIDEN will chair before partment of Health and Human Serv- Iraq. the Foreign Relations Committee. I ices, Congress has an important role to Some are concerned that an open de- also look forward to additional debate play in reinforcing and assisting these bate on our policy toward Iraq could and discussion on the floor of the Sen- efforts. expose sensitive intelligence informa- ate, and, when appropriate, in secure Today, the House Ways and Means tion or that such a debate would tip settings, where the administration can Committee is expected to report a bi- our hand too much. Others fear that a make its case for a given policy re- partisan bill—a bill that is almost meaningful debate could back the ad- sponse, and the Congress can ask ques- identical to its Senate counterpart— ministration into a corner, and in so tions, probe assumptions, and gen- that will help improve the safety of our doing encourage the administration to erally exercise the oversight that the health care system. Additionally, adopt a tougher military response. American people expect of us. President Bush has highlighted the im- Ultimately, all of these arguments Through these hearings and debates, portance of this issue by formally sup- against an open and honest debate on it will be important to assess the level porting this crucial legislation. More- Iraq could be made with respect to of the threat that exists, along with over, this bill is supported by over thir- nearly any military decision, and if the relative dangers that would be ty different health care organizations. taken to their extreme, these argu- posed by a massive assault on Iraq— Mr. President, I will ask that a list of ments would challenge the balance of dangers that include risks to American those supporting organizations be in- powers in the Constitution by exclud- soldiers and to our relations with some cluded in the RECORD. ing Congress from future war-making of our strongest allies in our current As a physician and a scientist, I decisions. Moreover, to answer some of anti-terror campaign. And it will be know the enormous complexities of these concerns more directly, I would crucially important to think through medicine today and the intricate sys- also note that the almost daily leaks the aftermath of any military strike. tem in which providers deliver care. I from the administration on our Iraq We don’t have to divulge secret infor- also recognize the need to examine policy have tipped our hand even more mation to begin to weigh the risks and medical errors closely in order to de- than responsible congressional hear- opportunities that confront us. But the termine where the system has filed the ings and debate would. It is hardly a American people must understand the patient. One method used in hospitals secret that the United States is consid- general nature of the threats, and they is the Mortality and Morbidity Con- ering a range of policy options, includ- must ultimately support any risks that ferences, in which individuals can

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7368 CONGRESSIONAL RECORD — SENATE July 25, 2002 openly discuss patients’ cases and ex- ease Control and Prevention’s National medical errors. QIOs use data to track amine problems in detail. Unfortu- Nosocomial Infections Surveillance progress towards eliminating errors nately, because those conferences rep- System, NNIS, the Food and Drug Ad- and improving treatment processes. resent a single, internal hospital event, ministration’s MedWatch, Veterans For example, the latest available na- we cannot obtain valuable, systematic Health Administration, VHA, and the tional data, 1996–1998, show QIO information about problems or infor- Centers for Medicare & Medicaid Serv- projects resulted in 34 percent more pa- mation that could be shared to allow ices Quality Improvement Organiza- tients getting medications to prevent a providers to learn from each other’s tions, QIOs. Each of these confiden- second heart attack; 23 percent more mishaps. Therefore, there is a need to tiality and peer review protections stroke patients receiving drugs that create a broader, more inclusive learn- have improved the delivery of health prevent subsequent strokes; 12 percent ing system that encompasses all com- care. more heart failure patients getting ponents of the health care system. NNIS is a voluntary, hospital-based treatment needed to extend their ac- One impediment to that learning sys- reporting system established to mon- tive lives; and 20 percent more patients tem is an inability to more closely ex- itor hospital-acquired infections and hospitalized with pneumonia receiving amine patient safety events without guide the prevention efforts through rapid antibiotic therapy. description of the epidemiology of the threat of increased litigation. The I appreciate the efforts made by Sen- Institute of Medicine’s report, To Err nosocomial infections, antimicrobial ators JEFFORDS, BREAUX, and GREGG resistance trends, and nosocomial in- is Human, as well as experts who testi- thus far and look forward to working fection rates to use for comparison pur- fied for the past few years in a series of with them and others to pass this bi- poses. Since its inception in 1970, there Senate and House hearings, strongly partisan legislation. I also value the has been a 34 percent reduction in the recommended that Congress provide leadership of the Bush Administration number of nosocomial infections. This legal protections for information gath- and my House colleagues on this crit- dramatic decrease can be attributed, in ered to improve health care quality ical issue. I hope that the Senate can part, to the availability of data for and increase patient safety. Without also consider this important issue and analysis and identification of system these protections, patient safety im- come to a resolution in the near future. provements will continue to be ham- errors that were contributing to high pered by fears of retribution and re- rates. By law, CDC assures partici- I ask unanimous consent that the list crimination. If we are to change the pating hospitals that any information of supporting organizations be printed health care culture from ‘‘name, that would permit identification of any in the RECORD. shame, and blame’’ to a culture of safe- individual or institution will be held in There being no objection, the mate- ty and continuous quality improve- strict confidence. This allows hospitals rial was ordered to be printed in the ment, we must provide these basic pro- to report accurately without fear of RECORD, as follows: tections. negative repercussions. However, we must be careful not to MedWatch is a voluntary Medical ORGANIZATIONS SUPPORTING THE ‘‘PATIENT SAFETY AND QUALITY IMPROVEMENT ACT’’ provide legal immunity for informa- Products Reporting Program for quick- JUNE 6, 2002 tion that would normally be available ly identifying unsafe medical products for litigation, such as medical records. on the market. Through MedWatch, Alliance of Community Health Plans, Alli- Rather, we should protect information the Food and Drug Administration offi- ance of Medical Societies, American Acad- that would be gleaned from providers’ cials work to improve the safety of emy of Dermatology Association, American drugs, biologics, medical devices, die- Academy of Family Physicians, American investigations of patient safety events. Academy of Neurology, American Academy This information is not currently being tary supplements, medical foods, infant of Pediatrics, American Association of reported in a way that would allow us formulas, and other regulated products Health Plans, Association of American Med- to learn from our errors and improve by encouraging health professionals to ical Colleges, American Association of Neu- the safety and quality of care for our report serious adverse events and prod- rological Surgeons, American Association of patients. uct defects. Once an adverse event or Orthopaedic Surgeons, American Association Additionally, we must ensure that, in product problem is identified, FDA can of Thoracic Surgery, American College of extreme circumstances, such as a take any of the following actions: la- Cardiology, American College of Emergency criminal or disciplinary proceeding, beling changes, boxed warnings, prod- Physicians, American College of Osteopathic Family Physicians, American College of Os- the patient safety data is not used as a uct recalls and withdrawals, and med- teopathic Surgeons, American College of shield. In those circumstances, it is im- ical and safety alerts. The aggregation Physicians-American Society of Internal perative that the information be of information through MedWatch has Medicine. shared, as disclosing that information lead to drug recalls, such as Felbatol American College of Radiology, Amer- is material to the proceeding, within and Omniflox, and to label changes on ican Gastroenterological Association, the public interest, and not available approximately 30 percent of the New American Geriatrics Society, Amer- for any other source. In this manner, Molecular Entities each year. ican Hospital Association, American we provide a balancing test—weighing To address the need for a non-puni- Medical Association, American Medical tive confidential reporting system, the Group Association, American Osteo- the public good in sharing the informa- pathic Association, American Pharma- tion and providing the appropriate VHA developed and continues to imple- ceutical Association, American Psy- legal protections so that the system ment an innovative systems approach chiatric Association, American Society can be improved with the people good to prevent harm to patients within for Clinical Pathology, American Soci- in weeding out the ‘‘bad apples.’’ Veterans Administration’s 163 medical ety for Quality, American Society of In crafting this legislation with Sen- centers. VHA has already implemented Anesthesiologists, American Society of ators JEFFORDS, BREAUX, and GREGG, nationwide internal and external re- Cataract and Refractive Surgery, Con- we were careful to concentrate on the porting systems that supplement the gress of Neurological Surgeons, learning system and provide appro- current accountability systems. Thus eHealth Initiative, Federation of Amer- ican Hospitals. priate legal protections for that sys- far, efforts have led to the implementa- General Motors, Healthcare Leadership tem. We view this as an essential first tion of physician ordering systems and Council, Institute for Safe Medication step in the ongoing, dynamic process of safety bulletins, such as the proper Practices, Joint Commission on the improving patient safety. handling of MRI equipment. Accreditation of Healthcare Organiza- I also want to reassure my colleagues QIOs monitor and improve the qual- tions, Joseph H. Kanter Family Foun- that this approach to improving med- ity of care delivered to Medicare bene- dation, Marshfield Clinic, Medical ical care—providing limited confiden- ficiaries. All information collected by Group Management Association, Na- tiality protections to ensure that we QIOs for quality improvement work is tional Association of Manufacturers, learn from the system—is not new to non-discoverable. QIOs work directly Premier, Society of Critical Care Medi- cine, Society of Thoracic Surgeons, health care. Currently, there are at and cooperatively with hospitals and Tennessee Hospital Association, U.S. least five health care examples which medical professionals across the coun- Chamber of Commerce, U.S. Pharma- use Federal confidentiality and peer re- try to implement quality improvement copeia, Vanderbilt University Medical view protections—the Centers for Dis- projects that address the root causes of Center, VHA Inc.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7369 WE SHALL NOT FORGET: KOREA Six years ago, we dedicated the Ko- I would like to describe a terrible 1950–1953 rean War Memorial. This stirring trib- crime that occurred on October 14, 2000 Mr. ROCKEFELLER. Madam Presi- ute to the veterans of this war poign- in Billings, MT. Chris Lehman, 23, shot dent, I rise on this day to commemo- antly bears out the hardships of the Roderick Pierson, 44, with a BB gun. rate the end of the Korean War, an conflict. Mr. Lehman later admitted to shooting often overlooked, yet very important The Memorial depicts, with stainless Pierson because he was black. Mr. Pier- event in history. ‘‘Forgotten’’ is a term steel statues, a squad of 19 soldiers on son was shot while walking with his 6 used too often about the Korean War; patrol. The ground on which they ad- year-old daughter. for veterans and their families, the war vance is reminiscent of the rugged Ko- I believe that government’s first duty is very real, and something they can rean terrain that they encountered, is to defend its citizens, to defend them never forget. and their wind-blown ponchos depict against the harms that come out of Officially, the war was the first mili- the treacherous weather that ensued hate. The Local Law Enforcement En- tary effort of the United Nations, but throughout the war. Our soldiers land- hancement Act of 2001 is now a symbol American involvement was dominant ed in South Korea poorly equipped to that can become substance. I believe throughout the conflict. Thousands of face the icy temperatures of 30 degrees that by passing this legislation and Americans were shipped off to that dis- below zero, their weaponry outdated changing current law, we can change tant land, joining with other soldiers and inadequate. As a result of the ex- hearts and minds as well. from other allied nations, to help de- treme cold, many veterans still suffer f fend the rights of strangers against a today from cold-related injuries, in- hostile and merciless invasion. Unfor- cluding frostbite, cold sensitization, BURMESE MILITARY RAPES tunately, many who fought bravely to numbness, tingling and burning, cir- Mr. MCCONNELL. Madam President, aid the Koreans lost their lives while culatory problems, skin cancer, fungal the military junta in Burma must be waging the war. infections, and arthritis. Furthermore, judged not by what it says, but rather Today, I want to pay homage to all the psychological tolls of war have who served in this war. The troops by what it does. caused great hardship for many vet- The recent editorial in the Wash- from the United States and the 20 erans. other United Nations countries who ington Post on the rape of ethnic mi- As a background to the soldiers’ stat- nority women and girls by Burmese provided aid to the South Koreans de- ues at the Memorial, the images of serve our great acclaim every day, but military officials is heartbreaking and 2,400 unnamed men and women stand horrific. It is by no means a stretch to even more so on this special anniver- etched into a granite wall, symbolizing sary. These great countries united to characterize the junta’s mismanage- the determination of the United States ment and oppression of the people of preserve the rights of South Korea, a workforce and the millions of family small democracy threatened by the Burma as a ‘‘reign of terror.’’ members and friends who supported the I join my colleagues in both the Sen- overwhelming power of the Communist efforts of those at war. Looking at the government. South Korea did not have ate and House who have called for jus- steadfast, resolute faces of these indi- sufficient military resources to protect tice for these heinous crimes, and for viduals invokes in the viewer a deep its interests. Fortunately, the United continued pressure on the illegitimate admiration and appreciation for their Nations member countries were unwill- regime in Burma to relinquish power to importance to the war effort. ing to sit back and watch North Korea, the sole legitimate representative of Author James Brady, a veteran of with the aid of China and the Soviet the people of Burma, the National the Korean War, spoke for all those Union, drive democracy from the con- League for Democracy. As the editorial who served in the war when he wrote, tinent of Asia. rightly states ‘‘Burma’s leaders cannot On June 25, 1950, troops from Com- ‘‘We were all proudly putting our lives bring the criminals to justice because munist-ruled North Korea invaded on the line for our country. But I would they are the criminals.’’ South Korea, meeting little resistance later come to realize that the Korean I ask unanimous consent that a copy to their attack. A few days later, on War was like the middle child in a fam- of the editorial ‘‘The Rape of Burma’’ ily, falling between World War II and the morning of July 5th—still Inde- be printed in the RECORD following my pendence Day in the United States, Vietnam. It became an overlooked remarks. Private Kenny Shadrick of Skin Fork, war.’’ Mr. BRADY conveys the senti- There being no objection, the article WV, became the war’s first American ments of many of the veterans who was ordered to be printed in the served in this war and underscores our casualty. Kenny was the first, but RECORD, as follows: need to give these veterans the rec- many more West Virginians were des- [From the Washington Post, July 23, 2002] tined to die in the conflict , in fact, ognition they are long overdue. THE RAPE OF BURMA more West Virginians were killed in Today, I salute the courage of those combat during the three years of the who answered the call to defend a RECENT EVENTS have led some people to predict that one of the world’s most repres- Korean War than during the 10 years country they never knew and a people they never met. Through their selfless sive regimes may be growing a bit less so. that we fought in Vietnam. The generals who rule, or misrule, the At the end of the Korean War, a U.S. determination and valor in the battle, Southeast Asian nation of Burma, which casualty report confirmed 36,940 battle these men and women sent an impor- they call Myanmar, released from house ar- deaths. An additional 103,284 tant message to future generations. I rest the woman who should in fact be the na- servicemembers were wounded in bat- thank our Korean War veterans; their tion’s prime minister, Aung San Suu Kyi. tle. More than 8,000 Americans are still bravery reminds us of the value we put They have allowed her to travel a bit, and missing in action and unaccounted. on freedom, while their sacrifices re- they have released from unspeakable prisons How can we possibly call one of the mind us that, as it says at the Korean a few of her supporters. Grounds for hope, bloodiest wars in history a ‘‘forgotten War Memorial, ‘‘Freedom is not free.’’ you might think. Then came release of a report, documented war?’’ Are those who served in Korea We shall never forget. in horrifying detail, of how Burma’s army ‘‘forgotten soldiers?’’ f uses rape as a weapon of war. The rapes take Make no mistake, those who fought LOCAL LAW ENFORCEMENT ACT place as part of the junta’s perpetual—and, in Korea will never be forgotten. They outside Burma, little-noticed—war against serve as examples of true Americans, OF 2001 ethnic nationalities, in this case in Shan and the debt we owe to our Korean War Mr. SMITH of Oregon. Madam Presi- state. The Shan Human Rights Foundation veterans, like the veterans of all other dent, I rise today to speak about hate and Shan Women’s Action Network docu- wars, is immeasurable. Unfortunately, crimes legislation I introduced with mented 173 incidents involving 625 girls and these soldiers, like the Vietnam vet- Senator KENNEDY in March of last women, some as young as five years old, tak- year. The Local Law Enforcement Act ing place mostly between 1996 and 2001. Most erans who followed, received no parade of the rapes were perpetrated by officers, in when they returned home. They quiet- of 2001 would add new categories to front of their men, and with utmost bru- ly went back to the lives they left and current hate crimes legislation sending tality; one-quarter of the victims died. blended into their communities, un- a signal that violence of any kind is What is telling is the response of the re- sung heroes of a faraway war. unacceptable in our society. gime to the report. Rather than seeking to

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7370 CONGRESSIONAL RECORD — SENATE July 25, 2002 bring the criminals to justice, it has un- service, Marian O’Donnell was regarded concurrent resolution, in which it re- leashed vitriol against the human rights or- as the thread resulting in smooth and quests the concurrence of the Senate: ganizations, accusing them of drug-running flawless changes to the Army’s con- H. Con. Res. 188. Concurrent resolution ex- and the like. This is the junta’s usual pat- gressional liaison leadership. pressing the sense of Congress that the Gov- tern, whenever it is found to be scraping the Despite the demands of her career ernment of the People’s Republic of China bottom of the morality barrel: child labor, Marian still found time to do volunteer should cease its persecution of Falun Gong forced labor, torture. It denies all and at- practitioners. tacks the truth-tellers. Yet, over the years work with her Church and serve as the evidence of barbarity has been so ines- counselor with its Pregnancy Crisis At 4:02 p.m., a message from the capable that even the junta’s would-be Center. She is truly a civil servant of House of Representatives, delivered by friends have found it impossible to overlook the first order and an outstanding cit- Ms. Niland, one of its reading clerks, it. Burma’s leaders cannot bring the crimi- izen. On behalf of the Congress of the announced that the House has passed nals to justice because they are the crimi- United States and the people of this the following bill, in which it requests nals. great Nation, I offer my heartfelt the concurrence of the Senate: Later this month Secretary of State Colin H.R. 4946. An act to amend the Internal Powell will travel to the region for meetings thanks for her years of service and best Revenue Code of 1986 to provide health care with senior officials. Earlier this month he wishes for a well-deserved retirement.∑ incentives. instructed his diplomats to express outrage f over the reported use of rape as a tactic of The message also announced that the war; he should personally express the same MESSAGES FROM THE PRESIDENT House has agreed to the following con- outrage. He also should make clear that Messages from the President of the current resolutions, in which it re- Aung San Suu Kyi—whose democratic party United States were communicated to quests the concurrence of the Senate: won an overwhelming victory in 1990 elec- the Senate by Ms. Evans, one of his H. Con. Res. 448. A concurrent resolution tions that the junta nullified—should be per- secretaries. providing for a special meeting of the Con- mitted more room to maneuver: permission f gress in New York, New York, on Friday, to publish a newspaper, for starters. The September 6, 2002, in remembrance of the Burmese regime should not receive rewards EXECUTIVE MESSAGES REFERRED victims and the heroes of September 11, 2001, for cosmetic liberalization. As in executive session the PRE- in recognition of the courage and spirit of f SIDING OFFICER laid before the Sen- the City of New York, and for other pur- ADDITIONAL STATEMENTS poses. ate messages from the President of the H. Con. Res. 449. A concurrent resolution United States submitting sundry nomi- providing for representation by Congress at a nations which were referred to the ap- special meeting in New York, New York, on TRIBUTE TO MRS. MARIAN C. propriate committees. Friday, September 6, 2002. O’DONNELL (The nominations received today are At 5:06 p.m. a message from the ∑ Mr. SESSIONS. Madam President, I printed at the end of the Senate pro- House of Representatives, delivered by rise today to pay tribute to Mrs. Mar- ceedings.) Mr. Hayes, one of its reading clerks, ian C. O’Donnell, an outstanding Civil f announced that the House insists upon Servant who will retire from the Fed- MESSAGES FROM THE HOUSE its amendment to the amendment of eral Government on August 3, 2002 the Senate to the bill (H.R. 4546) to au- At 9:33 a.m., a message from the after distinguishing herself with over thorize appropriations for fiscal year House of Representatives, delivered by 31 years of dedicated service. During 2003 for military activities of the De- Ms. Niland, one of its reading clerks, her career, Mrs. O’Donnell has served partment of Defense for military con- announced that the Speaker has signed in a succession of key positions where struction and for defense activities of the following enrolled bill: she has established a pattern of clearly the Department of Energy, to prescribe exceptional performance and service H.R. 4775. An act making supplemental ap- personnel strengths for such fiscal year leading to outstanding results in all propriations for further recovery from and response to terrorist attacks on the United for the Armed Forces, and for other her duties for the Department of the States for the fiscal year ending September purposes, and ask a conference with Army and the Department of Defense. 30, 2002, and for other purposes. the Senate on the disagreeing votes of Mrs. O’Donnell served in a succession At 1:51 p.m., a message from the the two Houses thereon; and appoints of administrative and secretarial posi- House of Representatives, delivered by the following Members as the managers tions of ever increasing responsibility Ms. Niland, one of its reading clerks, of the conference on the part of the in Germany and the United States cul- announced that the House agrees to House; minating in her current assignment for the report of the committee of con- From the Committee on Armed Serv- the past 15 years as the personal assist- ference on the disagreeing votes of the ices, for consideration of the House ant to the Army’s Chief of Legislative two Houses on the amendment of the amendment and the Senate amend- Liaison. Marian O’Donnell’s efforts and Senate to the bill (H.R. 3763) to protect ment, and modifications committed to accomplishments are examples of ex- investors by improving the accuracy conference: Mr. STUMP, Mr. HUNTER, traordinary dedication and profes- and reliability of corporate disclosures Mr. HANSEN, Mr. WELDON of Pennsyl- sionalism. Throughout her career, she made pursuant to the securities laws, vania, Mr. HEFLEY, Mr. SAXTON, Mr. was honored repeatedly by her superi- and for other purposes. MCHUGH, Mr. EVERETT, Mr. BARTLETT ors because of her efficiency, meticu- The message also announced that the of Maryland, Mr. MCKEON, Mr. WATTS lous attention to detail, and ability to House has passed the following bills, in of Oklahoma, Mr. THORNBERRY, Mr. handle a multitude of tasks simulta- which it requests the concurrence of HOSTETTLER, Mr. CHAMBLISS, Mr. JONES neously. Marion’s understated charm the Senate: of North Carolina, Mr. HILLEARY, Mr. resulted in numerous outstanding per- GRAHAM, Mr. SKELTON, Mr. SPRATT, Mr. formance ratings, quality step in- H.R. 5120. An act making appropriations for the Treasury Department, the United ORTIZ, Mr. EVANS, Mr. TAYLOR of Mis- creases, and two Commander’s Award States Postal Service, the Executive Office sissippi, Mr. ABERCROMBIE, Mr. MEE- for Civilian Service which so many of of the President, and certain Independent HAN, Mr. UNDERWOOD, Mr. ALLEN, Mr. her peers have tried to emulate. Agencies, for the fiscal year ending Sep- SNYDER, Mr. REYES, Mr. TURNER, and While serving as the personal assist- tember 30, 2003, and for other purposes. Mrs. TAUSCHER. ant to the Chief, Legislative Liaison H.R. 4628. An act to authorize appropria- From the Permanent Select Com- Marian O’Donnell played a key role in tions for fiscal year 2003 for intelligence and mittee on Intelligence, for consider- the Army’s congressional liaison ef- intelligence-related activities of the United ation of matters within the jurisdic- States Government, the Community Man- forts. She is the conduit though which agement Account, and the Central Intel- tion of that committee under clause 11 Members of Congress, their staffs, sen- ligence Agency Retirement and Disability of rule X: Mr. GOSS, Mr. BEREUTER, and ior Army and Defense officials dealt System, and for other purposes. Ms. PELOSI. with the Army’s leadership. A com- H.R. 4965. An act to prohibit the procedure From the Committee on Education petent and unflappable professional, commonly known as partial-birth abortion. and the Workforce, for consideration of Marion has always placed the Army The message further announced that sections 341–343, and 366 of the House and our Nation first. Throughout her the House has agreed to the following amendment, and sections 331–333, 542,

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7371 656, 1064, and 1107 of the Senate amend- MEASURES REFERRED—JULY 24, the fiscal year ending September 30, 2003, and ment, and modifications committed to 2002 for other purposes. (Rept. No. 107–222). conference: Mr. ISAKSON, Mr. WILSON of By Mr. KOHL, from the Committee on Ap- The following bills were read the first propriations, without amendment: South Carolina, and Mr. GEORGE MIL- and the second times by unanimous S. 2801: An original bill making appropria- LER of California. consent, and referred as indicated: tions for Agriculture, Rural Development, From the Committee on Energy and H.R. 3609. An act to amend title 49, United Food and Drug Administration, and Related Commerce, for consideration of sec- States Code, to enhance the security and Agencies programs for the fiscal year ending tions 601 and 3201 of the House amend- safety of pipelines; to the Committee on September 30, 2003, and for other purposes. ment, and sections 311, 312, 601, 3135, Commerce, Science, and Transportation. (Rept. No. 107–223). 3171–3173, and 3201 of the House amend- H.R. 4547. An act to authorize appropria- By Mr. BIDEN, from the Committee on Foreign Relations, with an amendment and ment, and modifications committed to tions for fiscal year 2003 for military activi- ties of the Department of Defense and to pre- with an amended preamble: conference; Mr. TAUZIN, Mr. BARTON, scribe military personnel strengths for fiscal S. Res. 300: A resolution encouraging the and Mr. DINGELL. year 2003; to the Committee on Armed Serv- peace process in Sri Lanka. From the Committee on Government ices. f Reform, for consideration of sections f 323, 804, 805, 1003, 1004, 1101–1106, 2811 EXECUTIVE REPORTS OF and 2813 of the House amendment, and MEASURES REFERRED COMMITTEES sections 241, 654, 817, 907, 1007–1009, 1061, The following bills were read the first The following executive reports of 1101–1106, 2811, and 3173 of the Senate and the second times by unanimous committees were submitted: amendment, and modifications com- consent, and referred as indicated: By Mr. SARBANES for the Committee on mitted to conference: Mr. BURTON, Mr. H.R. 4628. An act to authorize appropria- Banking, Housing, and Urban Affairs: WELDON of Florida, and Mr. WAXMAN. tions for fiscal year 2003 for intelligence and *Paul S. Atkins, of Virginia, to be a Mem- From the Committee on Inter- intelligence-related activities of the United ber of the Securities and Exchange Commis- national Relations, for consideration of States Government, the Community Man- sion for the remainder of the term expiring sections 1201, 1202, 1204, title XIII, and agement Account, and the Central Intel- June 5, 2003. *Cynthia A. Glassman, of Virginia, to be a section 3142 of the House amendment, ligence Agency Retirement and Disability System, and for other purposes; to the Com- Member of the Securities and Exchange and subtitle A of title XII, sections mittee on Intelligence. Commission for a term expiring June 5, 2006. 1212–1216, 3136, 3151, and 3156–3161 of the H.R. 4946. An act to amend the Internal *Harvey Jerome Goldschmid, of New York, Senate amendment, and modifications Revenue Code to provide health care incen- to be a Member of the Securities and Ex- committed to conference; Mr. HYDE, tives related to long-term care; to the Com- change Commission for the term expiring Mr. GILMAN, and Mr. LANTOS. mittee on Finance. June 5, 2004. The following concurrent resolution *Roel C. Campos, of Texas, to be a Member From the Committee on the Judici- of the Securities and Exchange Commission ary, for consideration of sections 811 was read, and referred as indicated: for a term expiring June 5, 2005. and 1033 of the House amendment, and H. Con. Res. 188. Concurrent resolution ex- By Mr. JEFFORDS for the Committee on sections 1067 and 1070 of the Senate pressing the sense of Congress that the gov- Environment and Public Works: amendment, and modifications com- ernment of the People’s Republic of China *John Peter Suarez, of New Jersey, to be mitted to conference: Mr. SENSEN- should cease its persecution of Falun Gong an Assistant Administrator of the Environ- practitioners; to the Committee on Foreign BRENNER, Mr. SMITH of Texas, and Mr. mental Protection Agency. Relations. *Carolyn W. Merritt, of Illinois, to be CONYERS. f chairperson of the Chemical Safety and Haz- From the Committee on Resources, ard Investigation Board for a term of five for consideration of sections 311, 312, MEASURES PLACED ON THE years. 601, title XIV, sections 2821, 2832, and CALENDAR *Carolyn W. Merritt, of Illinois, to be a 2863 of the House amendment, and sec- Member of the Chemical Safety and Hazard The following bill was read the first Investigation Board for a term of five years. tions 601, 2821, 2823, 2828, and 2841 of the and second times by unanimous con- Senate amendment, and modifications *John S. Bresland, of New Jersey, to be a sent, and placed on the calendar: Member of the Chemical Safety and Hazard committed to conference: Mr. DUNCAN, H.R. 5120. An act making appropriations Investigation Board for a term of five years. Mr. GIBBONS, and Mr. RAHALL. for the Treasury Department, the United By Mr. BIDEN for the Committee on For- From the Committee on Science, for States Postal Service, the Executive Office eign Relations. consideration of sections 244, 246, 1216, of the President, and certain Independent *James Franklin Jeffrey, of Virginia, a Ca- 3155, and 3163 of the Senate amend- Agencies, for the fiscal year ending Sep- reer Member of the Senior Foreign Service, ment, and modifications committted to tember 30, 2003, and for other purposes. Class of Minister-Counselor, to be Ambas- sador Extraordinary and Plenipotentiary of conference: Mr. BOEHLERT, Mr. SMITH f the United States of America to the Republic of Michigan, and Mr. HALL of Texas. MEASURES READ THE FIRST TIME of Albania. From the Committee on Science, for Nominee: James Franklin Jeffrey. consideration of sections 244, 246, 1216, The following bill was read the first Post: Albania. 3155, and 3163 of the Senate amendment time: The following is a list of all members of and modifications committed to con- H.R. 4965. An act to prohibit the procedure my immediate family and their spouses. I ference: Mr. BOEHLERT, Mr. SMITH of commonly known as partial-birth abortion. have asked each of these persons to inform me of the pertinent contributions made by Michigan, and Mr. HALL of Texas. f them. To the best of my knowledge, the in- From the Committee on Transpor- REPORTS OF COMMITTEES formation contained in this report is com- tation and Infrastructure, for consider- plete and accurate. ation of section 601 of the House The following reports of committees Contributions, amount, date, donee: amendment, and section 601 and 1063 of were submitted: 1. Self, none. the Senate amendment, and modifica- By Mr. BAUCUS, from the Committee on 2. Spouse, Gudrun Jeffrey, none. tions committed to conference; Mr. Finance, with an amendment in the nature 3. Children and Spouses: of a substitute: Jahn Jeffrey, none. YOUNG of Alaska, Mr. LOBIONDO, and H.R. 4737: A bill to reauthorize and improve Julia Jeffrey, none. Ms. BROWN of Florida. the program of block grants to States for 4. Parents: From the Committee on Veterans’ temporary assistance for needy families, im- Herbert F. Jeffrey, (deceased 1973). Affairs, for the consideration of sec- prove access to quality child care, and for Helen Grace Jeffrey, (deceased 1974). tions 641, 651, 721, 727, 724, 726, 728 of the other purposes. (Rept. No. 107–221). 5. Grandparents: House amendment, and sections 541 and By Ms. MIKULSKI, from the Committee on Herbert Jeffrey, (deceased 1969). 641 of the Senate amendment and modi- Appropriations, without amendment: Joseph O’Neill, (deceased 1960). S. 2797: An original bill making appropria- Helen Jeffrey, (deceased 1961). fications committed to conference: Mr. tions for the Departments of Veterans Af- Margaret O’Neill, (deceased 1977). SMITH of New Jersey, Mr. BILIRAKIS, fairs and Housing and Urban Development, 6. Brothers and spouses: Mr. JEFF of Florida, Mr. FILNER, and and for sundry independent agencies, boards, Names: MS. CARSON of Indiana. commissions, corporations, and offices for Edward Jeffrey, none.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7372 CONGRESSIONAL RECORD — SENATE July 25, 2002 Linda Jeffrey, none. the nominee’s commitment to respond to re- Gila River Pima-Maricopa Indian Commu- 7. Sisters and Spouses: Not applicable. quests to appear and testify before any duly nity, and for other purposes; to the Com- constituted committee of the Senate. mittee on Indian Affairs. *James Irvin Gadsden, of Maryland, a Ca- f By Mr. BAUCUS (for himself, Mr. reer Member of the Senior Foreign Service, INTRODUCTION OF BILLS AND BURNS, Mr. DASCHLE, and Mr. JOHN- Class of Minister-Counselor, to be Ambas- SON): sador Extraordinary and Plenipotentiary of JOINT RESOLUTIONS S. 2800. A bill to provide emergency dis- the United States of America to the Republic The following bills and joint resolu- aster assistance to agricultural producers; to of Iceland. tions were introduced, read the first the Committee on Agriculture, Nutrition, Nominee: James Irvin Gadsden. and Forestry. Post: Iceland. and second times by unanimous con- The following is a list of all members of sent, and referred as indicated: By Mr. KOHL: S. 2801. An original bill making appropria- my immediate family and their spouses. I By Ms. CANTWELL (for herself, Mr. tions for Agriculture, Rural Development, have asked each of these persons to inform WARNER, Mr. CHAFEE, Mr. CLELAND, Food and Drug Administration, and Related me of the pertinent contributions made by Mr. ROCKEFELLER, and Mr. BINGA- Agencies programs for the fiscal year ending them. To the best of my knowledge, the in- MAN): formation contained in this report is com- S. 2790. A bill to provide lasting protection September 30, 2003, and for other purposes; plete and accurate. for inventoried roadless areas within the Na- from the Committee on Appropriations; Contributions, amount, date, donee: tional Forest System; to the Committee on placed on the calendar. 1. Self: James Irvin Gadsden, none. Energy and Natural Resources. By Mr. KENNEDY: 2. Spouse: Sally Freeman Gadsden, none. By Mr. DOMENICI (for himself and Mr. S.J. Res. 42. A joint resolution com- 3. Children and spouses: FEINGOLD): mending Sail Boston for its continuing ad- James Jeremy Gadsden, none. S. 2791. A bill to provide budget discipline vancement of the maritime heritage of na- Jonathan Joel Gadsden, none. and enforcement for fiscal year 2003 and be- tions, its commemoration of the nautical 4. Parents: yond; to the Committee on the Budget and history of the United States, and its pro- James David Gadsden (deceased). motion, encouragement, and support of Hazel Gaines Gadsden (deceased). the Committee on Governmental Affairs, 5. Grandparents: jointly, pursuant to the order of August 4, young cadets through training ;to the Com- Elizabeth Gaines (deceased). 1977, with instructions that if one Committee mittee on Commerce, Science, and Transpor- Charlotte Morgan (deceased). reports, the other Committee have thirty tation. 6. Brothers and spouses: days to report or be discharged. Glenn and Valerie Gadsden, none. By Mr. LEVIN: f Allen Carl Gadsden, none. S. 2792. A bill to amend the Solid Waste David Bernard Gadsden, none. Disposal Act to authorize the Administrator SUBMISSION OF CONCURRENT AND 7. Sisters and spouses: of the Environmental Protection Agency to Genita Elizabeth Hanna, none. carry out certain authorities relating to the SENATE RESOLUTIONS Benjamin Hanna, none. importation of municipal solid waste under The following concurrent resolutions *Michael Klosson, of Maryland, a Career the Agreement Concerning the Transbound- and Senate resolutions were read, and Member of the Senior Foreign Service, Class ary Movement of Hazardous Waste between referred (or acted upon), as indicated: of Minister-Counselor, to be Ambassador Ex- the United States and Canada; to the Com- mittee on Environment and Public Works. By Mr. THURMOND: traordinary and Plenipotentiary of the S. Res. 305. A resolution designating the United States of America to the Republic of By Mr. ENSIGN: S. 2793. A bill to improve patient access to week beginning September 15, 2002, as ‘‘Na- Cyprus. health care services and provide improved tional Historically Black Colleges and Uni- Nominee: Michael Klosson. versities Week’’; to the Committee on the Post: American Embassy Cyprus. medical care by reducing the excessive bur- The following is a list of all members of den the liability system places on the health Judiciary. my immediate family and their spouses. I care delivery system; to the Committee on By Mr. BROWNBACK (for himself, Mr. have asked each of these persons to inform the Judiciary. WYDEN, Ms. COLLINS, Mr. DORGAN, me of the pertinent contributions made by By Mr. GRAMM (for himself, Mr. MIL- Mr. GRASSLEY, Mr. CONRAD, Mr. them. To the best of my knowledge, the in- LER, and Mr. MCCONNELL): SMITH of New Hampshire, and Mrs. formation contained in this report is com- S. 2794. A bill to establish a Department of BOXER): plete and accurate. Homeland Security, and for other purposes; S. Res. 306. A resolution expressing the Contributions, amount, date, donee: to the Committee on Governmental Affairs. sense of the Senate concerning the contin- 1. Self, Michael Klosson, none. By Mr. KERRY: uous repression of freedoms within Iran and 2. Spouse, Bonita Bender-Klosson, none. S. 2795. A bill to amend title XVIII of the of individual human rights abuses, particu- 3. Children and Spouses: Social Security Act to provide for payment larly with regard to women; to the Com- Emily Klosson, none. under the prospective payment system for mittee on Foreign Relations. Karen Klosson, none. hospital outpatient department services By Mr. INOUYE: 4. Parents: under the medicare program for new drugs S. Con. Res. 131. A concurrent resolution Boris H. Klosson (deceased), none. administered in such departments as soon as designating the month of November 2002, as Harriet F. C. Klosson, none. the drugs administered in such departments ‘‘National Military Family Month’’; to the 5. Grandparents: as soon as the drug is approved for mar- Committee on the Judiciary. Michael Mathew Klosson (deceased), none. keting by the Commissioner of Food and Keneena Hansen Klosson (deceased), none. Drugs; to the Committee on Finance. Charles Steele Cheston (deceased), none. f By Mr. LUGAR (for himself, Mr. 6. Brothers and Spouses: Charles S.C. Klosson, none. BREAUX, Mr. CHAFEE, Mr. GRASSLEY, Christopher Klosson, none. Mr. NICKLES, Mr. GRAHAM, Mr. ADDITIONAL COSPONSORS HAGEL, Mr. SPECTER, Mr. HATCH, and 7. Sisters and Spouse: S. 683 Harriet F. C. Klosson DiCicco, none. Mr. COCHRAN): Stephen DiCicco, none. S. 2796. A bill to authorize the negotiation At the request of Mr. SANTORUM, the *Randolph Bell, of Virginia, a Career Mem- of a free trade agreement with Uruguay; to name of the Senator from Arkansas ber of the Senior Foreign Service, Class of the Committee on Finance. (Mr. HUTCHINSON) was added as a co- Minister-Counselor, for the rank of Ambas- By Ms. MIKULSKI: sponsor of S. 683, a bill to amend the sador during his tenure of service as Special S. 2797. An original bill making appropria- Internal Revenue Code of 1986 to allow tions for the Departments of Veterans Af- Envoy for Holocaust Issues. individuals a refundable credit against *Mark Sullivan, of Maryland, to be United fairs and Housing and Urban Development, States Director of the European Bank for and for sundry independent agencies, boards, income tax for the purchase of private Reconstruction and Development. commissions, corporations, and offices for health insurance, and to establish *Paul William Speltz, of Texas, to be the fiscal year ending September 30, 2003, and State health insurance safety-net pro- United States Director of the Asian Develop- for other purposes; from the Committee on grams. Appropriations; placed on the calendar. ment Bank, with the rank of Ambassador. S. 1350 *Kenneth Y. Tomlinson, of Virginia, to be By Mr. DURBIN (for himself and Mr. a Member of the Broadcasting Board of Gov- LEAHY): At the request of Mr. DAYTON, the ernors for a term expiring August 13, 2004. S. 2798. A bill to protect employees and re- name of the Senator from Minnesota *Kenneth Y. Tomlinson, of Virginia, to be tirees from corporate practices that deprive (Mr. WELLSTONE) was added as a co- Chairman of the Broadcasting Board of Gov- them of their earnings and retirement sav- sponsor of S. 1350, a bill to amend the ernors. ings when a business files for bankruptcy title XVIII of the Social Security Act *Norman J. Pattiz, of California, to be a under title 11, United States Code; to the to provide payment to medicare ambu- Member of the Broadcasting Board of Gov- Committee on the Judiciary. ernors for a term expiring August 13, 2004. By Mr. McCAIN: lance suppliers of the full costs of pro- *Nomination was reported with rec- S. 2799. A bill to provide for the use of and viding such services, and for other pur- ommendation that it be confirmed subject to distribution of certain funds awarded to the poses.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7373 S. 1785 S. 2790. A bill to provide lasting pro- reason, we have provided further clari- At the request of Mr. CLELAND, the tection for inventoried roadless areas fication that the Forest Service has name of the Senator from Oregon (Mr. within the National Forest System; to every authority to prevent fires or to SMITH) was added as a cosponsor of S. the Committee on Energy and Natural respond to fires, and to use appro- 1785, a bill to urge the President to es- Resources. priated funds to undertake fire sup- tablish the White House Commission Mr. WARNER. Madam President, I pression activities in roadless areas. on National Military Appreciation rise today to join with my colleague This rule is a balanced approach to Month, and for other purposes. from Washington, Senator CANTWELL, forest service management because it S. 1931 to ensure that the remaining, undis- provides for reasonable exceptions for At the request of Mr. LIEBERMAN, the turbed areas within our National For- activities in roadless areas. I remain name of the Senator from Minnesota est system are permanently preserved. committed to the multiple-use man- (Mr. DAYTON) was added as a cosponsor Like many of my colleagues, I have agement of our national forests. Tim- of S. 1931, a bill to amend title XVIII of worked with the Forest Service and ber and mineral resources on these the Social Security Act to improve pa- participated in the public comment public lands are assets that should be tient access to, and utilization of, the process on the development of the cur- appropriately utilized and available for colorectal cancer screening benefit rent Roadless Area Conservation Rule. all Americans. My view of multiple-use under the medicare program. This administrative procedure was sev- management also recognizes and ad- eral years in the making with exten- vances the recreational and environ- S. 2239 sive public outreach of public hearings mental assets of these roadless areas. At the request of Mr. SARBANES, the across the country. Thousands of The remaining roadless areas in our name of the Senator from New Mexico Americans voiced support for pro- national forests are important for pro- (Mr. DOMENICI) was added as a cospon- tecting these areas from road building viding outstanding recreational oppor- sor of S. 2239, a bill to amend the Na- and other development. tunities for the public. These lands also tional Housing Act to simplify the For my part, this legislation today provide wildlife habitat and protect the downpayment requirements for FHA continues efforts I have undertaken water quality of many watersheds that mortgage insurance for single family with my colleagues from the Southeast serve as downstream drinking water homebuyers. to protect the existing roadless areas sources for our communities. S. 2554 in the Southern Appalachia forests. In The Roadless Area Conservation rule At the request of Mr. SMITH of New 1997 I urged the Secretary of Agri- is also sound fiscal policy for our na- Hampshire, the names of the Senator culture to impose a moratorium on tional forests. The Forest Service has from Virginia (Mr. ALLEN), the Senator new road construction in these inven- documented an $8.4 billion backlog in from Virginia (Mr. WARNER) and the toried roadless areas. Last year, I maintaining existing roads within our Senator from Massachusetts (Mr. urged President Bush to embrace and national forests. Continuing to build KERRY) were added as cosponsors of S. implement this important resource new roads in these fragile areas will 2554, a bill to amend title 49, United conservation policy. I was very encour- only further strain the scarce dollars States Code, to establish a program for aged that the President announced his within the Forest Service. Federal flight deck officers, and for administration’s support for this rule As I have indicated, the legislation other purposes. on May 4, 2001. we are introducing today does not S. 2572 Today, with this rule under legal change the substance or spirit of the At the request of Mr. KERRY, the challenge, I believe that it is impor- Roadless rule in any way. To be clear, name of the Senator from Michigan tant to take another step forward with this legislation preserves the exemp- (Ms. STABENOW) was added as a cospon- ensuring that this rule is codified so tions in the rule to allow for road con- sor of S. 2572, a bill to amend title VII that it has the full force of law. While struction where needed to protect of the Civil Rights Act of 1964 to estab- some may advocate changes to the cur- these lands from floods, fires, and pest lish provisions with respect to religious rent rule to gain advantages for great- infestation. It ensures public access to accommodation in employment, and er use or greater restrictions on these private lands, and recognizes the exist- for other purposes. inventoried roadless areas, I want to ing rights to ongoing oil and gas leases. S. 2637 assure my colleagues that our legisla- For Virginia, this legislation ensures tion today mirrors the current rule. At the request of Mr. CONRAD, the that 394,000 acres of inventoried name of the Senator from Mississippi With the extensive efforts of the Forest roadless areas in the George Wash- Service to analyze the impact of the (Mr. COCHRAN) was added as a cospon- ington and Jefferson National Forests sor of S. 2637, a bill to amend the Inter- rule and the large number of public are permanently protected. During the nal Revenue Code of 1986 and the Sur- comments in support, we must stay public comment period on the Draft face Mining Control and Reclamation true to this effort. Environmental Impact Statement, the Act of 1977 to protect the health bene- The devastating fires on Forest Serv- Forest Service received 68,586 com- fits of retired miners and to restore ice lands in the West this summer have ments from residents of Virginia. The stability and equity to the financing of renewed our commitment to programs Forest Service advises me that of this the United Mine Workers of America to reduce the fuel load on forest lands. amount more than 98 percent of the Combined Benefit Fund and 1992 Ben- I support Sen. Domenici’s initiatives to comments supported full protection of efit Plan by providing additional redirect Forest Service funding of fuel these roadless areas. sources of revenue to the Fund and reduction projects in areas adjoining I am pleased to support this legisla- Plan, and for other purposes. residential areas, and remain com- tion that is important to all regions of mitted to giving the Forest Service all the country. The public has voiced its S. 2674 of the tools it needs to reduce the loss overwhelming support for this impor- At the request of Mr. BROWNBACK, the of life and property from fires. tant conservation initiative, and I name of the Senator from Oklahoma An important reason for my support trust that my colleagues will respond (Mr. INHOFE) was added as a cosponsor today is because I am convinced that by passing this bill this year. of S. 2674, a bill to improve access to the Roadless Rule does not prevent the health care medically underserved Forest Service from undertaking any By Mr. LEVIN: areas. fire prevention activities in roadless S. 2792. A bill to amend the Solid f areas. Nor, when a fire exists, does the Waste Disposal Act to authorize the rule prevent the Forest Service from Administrator of the Environmental STATEMENTS ON INTRODUCED taking any appropriate action, includ- Protection Agency to carry out certain BILLS AND JOINT RESOLUTIONS ing building roads in roadless areas, to authorities relating to the importation By Ms. CANTWELL (for herself, create fire breaks or other means to of municipal solid waste under the Mr. WARNER, Mr. CHAFEE, Mr. control a wildfire. Agreement Concerning the Trans- CLELAND, Mr. ROCKEFELLER, But, Mr. President, there must be no boundary Movement of Hazardous and Mr. BINGAMAN): doubt on this important issue. For that Waste between the United

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7374 CONGRESSIONAL RECORD — SENATE July 25, 2002 States and Canada; to the Committee put additional pressure on the EPA to Mr. LUGAR. Madam President, I rise on Environment and Public Works. enforce it. today to introduce legislation author- Mr. LEVIN. Madam President, I am izing President Bush and his Adminis- introducing legislation today with Con- By Mr. KERRY: tration to negotiate a free trade agree- gressman DINGELL that will give a S. 2795. A bill to amend title XVIII of ment with Uruguay. I am pleased to be voice to the people of Michigan with the Social Security Act to provide for joined by the following co-sponsors: regard to the importation of Canadian payment under the prospective pay- Senators BREAUX, CHAFEE, GRASSLEY, municipal waste. ment system for hospital outpatient NICKLES, GRAHAM, HAGEL, SPECTER, Over the past two years, imports department services under the medi- HATCH, and COCHRAN. from Canada have risen 152 percent and care program for new drugs adminis- President Bush has instructed U.S. now constitute about half of the im- tered in such departments as soon as Trade Representative, Robert Zoellick, ported waste received at Michigan the drugs administered in such depart- to pursue a Free Trade Area of the landfills. Currently, approximately 110– ments as soon as the drug is approved Americas. I support this effort and this 130 truckloads of waste come in to for marketing by the Commissioner of bill is not intended to compete with or Michigan each day from Canada. And Food and Drugs; to the Committee on replace that important undertaking. this problem isn’t going to get any bet- Finance. Instead, this legislation seeks to high- ter. These shipments of waste are ex- Mr. KERRY. Madam President, I am light the important relationship the pected to continue as Toronto and pleased to introduce legislation today U.S. enjoys with Uruguay and promote that will fix a flaw in Medicare’s other Ontario sources phase out local the need for extending free-trade to claims processing system that cur- disposal sites. On December 4, 2001, the South America. rently denies thousands of cancer pa- Toronto City Council voted 38–2 to ap- Uruguayan economic reforms focused tients timely access to lifesaving treat- prove a new solid waste disposal con- on the attraction of foreign trade and ments. This legislation will ensure that tract that would ship an additional capital have proven successful. The administrative delays do not force 700,000 tons of waste per year to the economy of Uruguay grew steadily Americans with cancer to wait to be Carleton Farms landfill in Wayne until low commodity prices and eco- treated with existing innovative drug County, MI, in the near future. In addi- nomic difficulties in export markets therapies that stand to improve and tion, two other Ontario communities caused a recession in 1999. President prolong their lives. that generate hundreds of thousands of Jorge Batlle has stated his intention to The Food and Drug Administration, continue the promotion of economic tons of waste annually have signed FDA, recently granted fast track au- contracts to ship their waste to growth, international trade, lower tar- thority to a new class of cancer thera- iffs, and attracting foreign investment. Carleton Farms. pies. These therapies, which combine Based on current usage statistics, the More than one hundred U.S.-owned immunotherapy and radiological treat- companies operate in Uruguay, and Michigan Department of Environ- ments, offer promise and hope for mental Quality estimates that Michi- many more market U.S. goods and many cancer patients. Under current services. gan has capacity for 15–17 years of dis- Medicare policy, however, reimburse- posal in landfills. However, with the Uruguay is a member of the World ment for FDA-approved drugs in an Trade Organization and a dynamic proposed dramatic increase in the im- outpatient setting does not begin until portation of waste, this capacity is less member of the Southern Cone Common Medicare issues a billing code for the Market, MERCOSUR, with Argentina, than 10 years. The Michigan Depart- drug. Consequently, there is often a ment of Environmental Quality esti- Brazil, and Paraguay. Furthermore, it delay of several months between FDA is an active participant and proponent mates that, for every five years of dis- approval of and patient access to a of the Free Trade Area of the Americas posal of Canadian waste at the current drug. process and is coordinator of the e- usage volume, Michigan is losing a full Prior to the designation of a Medi- commerce group and sub-coordinator of year of landfill capacity. care billing code, doctors will not pre- We have protections contained in an the agricultural subsidies group. scribe innovative treatments for pa- If the United States hopes to sustain international agreement with Canada. tients in an outpatient setting for fear its economic strength in the 21st Cen- In 1986, the U.S. and Canada entered of their being denied reimbursement by tury, we must participate in an ex- into an agreement allowing the ship- Medicare. However, within the inpa- panding global economy. We must ag- ment of hazardous waste across the tient setting, Medicare will reimburse gressively pursue opportunities in new U.S./Canadian border for treatment, hospitals immediately after FDA ap- and emerging markets. We must main- storage or disposal. In 1992, the two proval. Given this discrepancy in cur- tain our technological and competitive countries decided to add municipal rent policy, I am introducing legisla- advantage and sell our products, serv- solid waste to the agreement. However, tion that will allow doctors to submit ices and agricultural commodities in although the Agreement requires noti- claims retroactively and require Medi- these areas. American agriculture, fication to the importing country and care to pay for innovative drugs admin- telecommunications, computer serv- also allows the importing country to istered in hospital outpatient settings ices, and other sectors will benefit reject shipments, its provisions have immediately after FDA approval. from the opportunity to compete in not been enforced. Cancer patients cannot afford to wait Uruguay under a free trade agreement. Further, the EPA has said that it for drugs that have the potential to im- As South America continues to re- would not object to municipal waste prove their health and even save their cover from the Argentinian economic shipments. We believe that in order to lives. For Americans battling cancer, crisis we must look for opportunities protect the health and welfare of the time is of the essence. This legislation to engage the region in free trade. A citizens of Michigan and their environ- will provide cancer patients with both free trade agreement with Uruguay ment, the impact of the importation on the hope and the opportunity to live would provide American business with State and local recycling efforts, land- longer and healthier lives. I urge my unfettered access to another lucrative fill capacity, air emissions and road de- colleagues to join me in support of this market and Uruguayan business will terioration resulting from increased legislation. have better access to American mar- vehicular traffic and public health and kets to successfully weather the re- the environment should all be consid- By Mr. LUGAR (for himself, Mr. gion’s economic fallout. A U.S.-Uru- ered. The shipments should be rejected BREAUX, Mr. CHAFEE, Mr. guayan free trade agreement is a win- by the EPA. GRASSLEY, Mr. NICKLES, Mr. win for the United States and Uruguay. Canada could not export waste to GRAHAM, Mr. HAGEL, Mr. SPEC- I am hopeful the Senate will approve Michigan without the Agreement, but TER, Mr. HATCH, and Mr. COCH- this important legislation in the near the U.S. refuses to implement the pro- RAN): future. visions that would protect the people S. 2796. A bill to authorize the nego- of Michigan. We believe that the EPA tiation of a free trade agreement with By Mr. MCCAIN: has the authority to enforce this Uruguay; to the Committee on Fi- S. 2799. A bill to provide for the use Agreement, but this legislation would nance. of and distribution of certain funds

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7375 awarded to the Gila River Pima-Mari- tions to protect the Community’s use of There being no objection, the addi- copa Indian Community, and for other water from the Salt River; tional material was ordered to be Whereas, in Gila River Pima-Maricopa In- purposes; to the Committee on Indian printed in the RECORD, as follows: dian Community v. U.S. 29 Ind. C1.Comm. Affairs. 144. (1972), the Indian Claims Commission Be it enacted by the Senate and House of Rep- Mr. MCCAIN. Madam President, I rise held that the United States, as trustee, was resentatives of the United States of America in to introduce legislation to authorize liable towards its beneficiary, the Commu- Congress assembled, the distribution of judgement funds to nity, as to the Docket 236–C claims: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Whereas, in Gila River Pima-Maricopa In- eligible tribal members of the Gila (a) SHORT TITLE.—This Act may be cited as dian Community v. U.S., 684 F.2d 852 (1982), River Indian Community in Arizona. the ‘‘Gila River Indian Community Judg- the United States Court of Claims held that ment Fund Distribution Act of 2002’’. Representative HAYWORTH recently in- the United States, as trustee, was liable to- troduced companion legislation in the ward its beneficiary, the Community, as to (b) TABLE OF CONTENTS.—The table of con- House of Representatives. the Docket 236–D claims; tents of this Act is as follows: The Gila River Indian Community Whereas, with approval by the Community Sec. 1. Short title; table of contents. under Resolution GR–98–98, the Community Judgement Fund Distribution Act re- Sec. 2. Findings. entered into a settlement of Docket 236–C solves two half-century old claims by Sec. 3. Definitions. the Gila River tribe against the United and Docket 236–D with the United States on April 27, 1999 regarding the amount of liabil- TITLE I—GILA RIVER JUDGMENT FUND States for failure to meet Federal obli- ity for the sum of Seven Million Dollars DISTRIBUTION gations to protect the Community’s ($7,000,000.00); use of water from the Gila River and Whereas, on May 5, 1999, the United States Sec. 101. Distribution of judgment funds. Salt River in Arizona. The original certified the judgment for the Community, Sec. 102. Responsibility of Secretary; appli- complaint was filed before the Indian which allowed payment to be made into the cable law. Claims Commission on August 8, 1951. trust account on behalf of the Gila River In- TITLE II—CONDITIONS RELATING TO dian Community and which such payment COMMUNITY JUDGMENT FUND PLANS In 1982, the United States Court of was made into the trust account managed by Claims confirmed liability of the the Office of Trust Funds Management in Al- Sec. 201. Plan for use and distribution of United States to the Community, and buquerque, New Mexico and is accruing in- judgment funds awarded in recently the settlement of these two terest; Docket No. 228. claims was determined to be seven mil- Whereas, the Indian Judgment Funds Act Sec. 202. Plan for use and distribution of lion dollars. of October 19, 1973, 87 Stat. 466, as amended judgment funds awarded in and implemented by 25 CFR Part 87, requires Docket No. 236–N. So much time has passed that the In- the Secretary of the Interior to submit a TITLE III—EXPERT ASSISTANCE LOANS dian Claims Commission formerly in plan of distribution for docket funds to the charge of fund distributions no longer United States Congress; and Sec. 301. Waiver of repayment of expert as- exists. However, a debt does not dis- Whereas, the Community had developed sistance loans to certain Indian appear. The judgement award has since the attached plan of distribution, entitled tribes. ‘‘Plan for the Use of the Gila River Indian been transferred from the Indian SEC. 2. FINDINGS. Community Indian Judgment Funds in Claims Commission to a trust account Docket 236–C and Docket 236–D before the Congress finds that— on behalf of the Community, managed United States Court of Federal Claims’’ (the (1) on August 8, 1951, the Gila River Indian by the Office of Trust Management at ‘‘Plan of Distribution’’), to be submitted to Community filed a complaint before the In- the Department of Interior. the Secretary of the Interior for consider- dian Claims Commission in Gila River Pima- This judgement award was certified ation and approval. Now, therefore be it Maricopa Indian Community v. United by the Treasury Department on Octo- Resolved, That the Gila River Indian Com- States, Docket No. 236, for the failure of the United States to carry out its obligation to ber 6, 1999 for the final portion of the munity Council adopts and approves the at- tached Plan of Distribution, be it further protect the use by the Community of water litigation to the two remaining dock- Resolved, That the Governor, or in the Gov- from the Gila River and the Salt River in the ets of the Gila River Indian Commu- ernor’s absence the Lieutenant Governor, is State of Arizona; nity. Since that time, the Community authorized and directed to submit the at- (2) except for Docket Nos. 236–C and 236–D, has been working with the BIA in an tached Plan of Distribution to the Secretary which remain undistributed, all 14 original attempt to finalize a use and distribu- of the Interior for approval, be it finally dockets under Docket No. 236 have been re- tion plan to submit to Congress for ap- Resolved, That the Governor, or in the Gov- solved and distributed; ernor’s absence the Lieutenant Governor, is proval. As outlined in its plan, the (3) in Gila River Pima-Maricopa Indian authorized and directed to execute and sign Community v. United States, 29 Ind. Cl. Community has decided to distribute necessary documents to fulfill the intent of Comm. 144 (1972), the Indian Claims Commis- the judgement award equally to eligi- this Resolution. sion held that the United States, as trustee, ble tribal members. The purpose of this legislation is to was liable to the Community with respect to I ask unanimous consent to print the comply with Federal regulations which the claims made in Docket No. 236–C; tribal resolution approved by the Gila requires congressional approval for dis- (4) in Gila River Pima-Maricopa Indian River Indian Community in support of tribution of judgment funds to tribal Community v. United States, 684 F.2d 852 this payment plan in the RECORD. (1982), the United States Claims Court held members. The terms of the legislation that the United States, as trustee, was liable There being no objection, the resolu- reflect an agreement by all parties for tion was ordered to be printed in the to the Community with respect to the claims a distribution plan for final approval made in Docket No. 236–D; RECORD, as follows: by the Congress. As part of this legisla- (5) with the approval of the Community GILA RIVER INDIAN COMMUNITY, SACATON, AZ tion, the BIA is also seeking to resolve under Community Resolution GR–98–98, the Resolution GR–30–01—a resolution to ap- remaining expert assistance loans by Community entered into a settlement with prove a payment plan for the distribution the Gila River Indian Community, the the United States on April 27, 1999, for of funds awarded under dockets 236–C and Oglala Sioux Tribe, and the Seminole claims made under Dockets Nos. 236–C and 236–D Tribe of Florida, as originally author- 236–D for an aggregate total of $7,000,000; Whereas, the Gila River Indian Community (6) on May 3, 1999, the United States Court ized by the Indian Claims Commission. of Federal Claims ordered that a final judg- (the ‘‘Community’’) and the United States Members of the Gila River Indian have been involved in litigation regarding ment be entered in consolidated Dockets Docket 236 since August 8, 1951 and two of Community have waited half a century Nos. 236–C and 236–D for $7,000,000 in favor of the original fourteen dockets, Docket 236–C for final resolution of all their legal the Community and against the United and Docket 236–D, remain to be resolved as claims regarding this matter. After States; to distribution; considerable delay, it is only fair to re- (7)(A) on October 6, 1999, the Department of Whereas, Docket 236–C sought monetary solve this matter and provide com- the Treasury certified the payment of compensation from the United States for its pensation as soon as possible. With the $7,000,000, less attorney fees, to be deposited failure to engage in fair and honorable deal- short time remaining in this session, I in a trust account on behalf of the Commu- ings through failure to carry out its obliga- hope that the Senate will act quickly nity; and tion to protect the Community’s use of (B) that payment was deposited in a trust water from the Gila River; to move this legislation through the account managed by the Office of Trust Whereas, Docket 236–D sought monetary process. Funds Management of the Department of the compensation from the United States for its I ask unanimous consent to print the Interior; and failure to engage in fair and honorable deal- text of the bill and a section-by-section (8) in accordance with the Indian Tribal ings through failure to carry out its obliga- summary in the RECORD. Judgment Funds Use or Distribution Act (25

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7376 CONGRESSIONAL RECORD — SENATE July 25, 2002 U.S.C. 1401 et seq.), the Secretary is required (iii) All enrolled Community members who legatees, the per capita share of the deceased to submit an Indian judgment fund use or died— individual and the interest earned on that distribution plan to Congress for approval. (I) after the effective date of the payment share shall— SEC. 3. DEFINITIONS. plan for Docket No. 236–N; but (A) revert to the Community; and In this Act: (II) on or before the date of enactment of (B) be deposited into the general fund of (1) ADULT.—The term ‘‘adult’’ means an in- this Act. the Community. dividual who— (B) INDIVIDUALS INELIGIBLE TO RECEIVE PAY- (g) SHARES OF LEGALLY INCOMPETENT INDI- (A) is 18 years of age or older as of the date MENTS.—The following individuals shall be VIDUALS.— on which the payment roll is approved by the ineligible to be listed on the payment roll (1) IN GENERAL.—The Secretary shall de- Community; or and ineligible to receive a per capita pay- posit the shares of legally incompetent indi- (B) will reach 18 years of age not later than ment under subsection (a): viduals described in subsection (c)(2) in su- 30 days after the date on which the payment (i) Any individual who, before the date on pervised IIM accounts. roll is approved by the Community. which the Community approves the payment (2) ADMINISTRATION.—The IIM accounts de- (2) COMMUNITY.—The term ‘‘Community’’ roll, relinquished membership in the Com- scribed in paragraph (1) shall be adminis- means the Gila River Indian Community. munity. tered in accordance with regulations and (3) COMMUNITY-OWNED FUNDS.—The term (ii) Any minor who relinquishes member- procedures established by the Secretary and ‘‘Community-owned funds’’ means— ship in the Community, or whose parent or in effect as of the date of enactment of this (A) funds held in trust by the Secretary as legal guardian relinquishes membership on Act. of the date of enactment of this Act that behalf of the minor, before the date on which (h) SHARES OF MINORS.— may be made available to make payments the minor reaches 18 years of age. (1) IN GENERAL.—The Secretary shall de- under section 101; or (iii) Any individual who is disenrolled by posit the shares of minors described in sub- (B) revenues held by the Community that the Community for just cause (such as dual section (c)(2) in supervised IIM accounts. are derived from Community-owned enter- enrollment or failure to meet the eligibility (2) ADMINISTRATION.— prises. requirements for enrollment). (A) IN GENERAL.—The Secretary shall hold (4) IIM ACCOUNT.—The term ‘‘IIM account’’ (iv) Any individual who is determined or the per capita share of a minor described in means an individual Indian money account. certified by the Secretary to be eligible to subsection (c)(2) in trust until such date as (5) JUDGMENT FUNDS.—The term ‘‘judgment receive a per capita payment of funds relat- the minor reaches 18 years of age. funds’’ means the aggregate amount awarded ing to a judgment— (B) NONAPPLICABLE LAW.—Section 3(b)(3) of to the Community by the Court of Federal (I) awarded to another community, Indian the Indian Tribal Judgment Funds Use or Claims in Dockets Nos. 236–C and 236–D. tribe, or tribal entity; and Distribution Act (25 U.S.C. 1403(b)(3)) shall (6) LEGALLY INCOMPETENT INDIVIDUAL.—The (II) appropriated on or before the date of not apply to any per capita share of a minor term ‘‘legally incompetent individual’’ enactment of this Act. that is held by the Secretary under this Act. means an individual who has been deter- (v) Any individual who is not enrolled as a (C) DISBURSEMENT.—No judgment funds, mined to be incapable of managing his or her member of the Community on or before the nor any interest earned on judgment funds, own affairs by a court of competent jurisdic- date that is 90 days after the date of enact- shall be disbursed from the account of a tion. ment of this Act. minor described in subsection (c)(2) until (7) MINOR.—The term ‘‘minor’’ means an (c) NOTICE TO SECRETARY.—On approval by such date as the minor reaches 18 years of individual who is not an adult. the Community of the payment roll, the age. (8) PAYMENT ROLL.—The term ‘‘payment Community shall submit to the Secretary a (i) PAYMENT OF ELIGIBLE INDIVIDUALS NOT roll’’ means the list of eligible, enrolled notice that indicates the total number of in- LISTED ON PAYMENT ROLL.— members of the Community who are eligible dividuals eligible to share in the per capita (1) IN GENERAL.—An individual who is not to receive a payment under section 101(a), as distribution under subsection (a), as ex- listed on the payment roll, but is eligible to prepared by the Community under section pressed in subdivisions that reflect— receive a payment under this Act, as deter- 101(b). (1) the number of shares that are attrib- mined by the Community, may be paid from (9) SECRETARY.—The term ‘‘Secretary’’ utable to eligible living adult Community any remaining judgment funds after the date means the Secretary of the Interior. members; and on which— TITLE I—GILA RIVER JUDGMENT FUND (2) the number of shares that are attrib- (A) the Community makes the per capita DISTRIBUTION utable to deceased individuals, legally in- distribution under subsection (a); and SEC. 101. DISTRIBUTION OF JUDGMENT FUNDS. competent individuals, and minors. (B) all appropriate IIM accounts are estab- (a) PER CAPITA PAYMENTS.—Notwith- (d) INFORMATION PROVIDED TO SECRETARY.— lished under subsections (g) and (h). standing the Indian Tribal Judgment Funds The Community shall provide to the Sec- (2) INSUFFICIENT FUNDS.—If insufficient Use or Distribution Act (25 U.S.C. 1401 et retary enrollment information necessary to judgment funds remain to cover the cost of a seq.) or any other provision of law (including allow the Secretary to establish— payment described in paragraph (1), the any regulation promulgated or plan devel- (1) estate accounts for deceased individuals Community may use Community-owned oped under such a law), the amounts paid in described in subsection (c)(2); and funds to make the payment. satisfaction of an award granted to the Gila (2) IIM accounts for legally incompetent (3) MINORS, LEGALLY INCOMPETENT INDIVID- River Indian Community in Dockets Nos. individuals and minors described in sub- UALS, AND DECEASED INDIVIDUALS.—In a case 236–C and 236–D before the United States section (c)(2). in which a payment described in paragraph Court of Federal Claims, less attorney fees (e) DISBURSEMENT OF FUNDS.— (2) is to be made to a minor, a legally incom- and litigation expenses and including all ac- (1) IN GENERAL.—Not later than 30 days petent individual, or a deceased individual, crued interest, shall be distributed in the after the date on which the payment roll is the Secretary— form of per capita payments (in amounts as approved by the Community and the Com- (A) is authorized to accept and deposit equal as practicable) to all eligible enrolled munity has reconciled the number of shares funds from the payment in an IIM account or members of the Community. that belong in each payment subdivision de- estate account established for the minor, le- (b) PREPARATION OF PAYMENT ROLL.— scribed in subsection (c), the Secretary shall gally incompetent individual, or deceased in- (1) IN GENERAL.—The Community shall pre- disburse to the Community the funds nec- dividual; and pare a payment roll of eligible, enrolled essary to make the per capita distribution (B) shall invest those funds in accordance members of the Community that are eligible under subsection (a) to eligible living adult with applicable law. to receive payments under this section in ac- members of the Community described in sub- (j) USE OF RESIDUAL FUNDS.—On request by cordance with the criteria described in para- section (c)(1). the Community, any judgment funds remain- graph (2). (2) ADMINISTRATION AND DISTRIBUTION.—On ing after the date on which the Community (2) CRITERIA.— disbursement of the funds under paragraph completes the per capita distribution under (A) INDIVIDUALS ELIGIBLE TO RECEIVE PAY- (1), the Community shall bear sole responsi- subsection (a) and makes any appropriate MENTS.—Subject to subparagraph (B), the bility for administration and distribution of payments under subsection (i) shall be dis- following individuals shall be eligible to be the funds. bursed to, and deposited in the general fund listed on the payment roll and eligible to re- (f) SHARES OF DECEASED INDIVIDUALS.— of, the Community. ceive a per capita payment under subsection (1) IN GENERAL.—The Secretary, in accord- (k) NONAPPLICABILITY OF CERTAIN LAW.— (a): ance with regulations promulgated by the Notwithstanding any other provision of law, (i) All enrolled Community members who Secretary and in effect as of the date of en- the Indian Gaming Regulatory Act (25 U.S.C. are eligible to be listed on the per capita actment of this Act, shall distribute to the 2701 et seq.) shall not apply to Community- payment roll that was approved by the Sec- appropriate heirs and legatees of deceased owned funds used by the Community to retary for the distribution of the funds individuals described in subsection (c)(2) the make payments under subsection (i). awarded to the Community in Docket No. per capita shares of those deceased individ- SEC. 102. RESPONSIBILITY OF SECRETARY; AP- 236–N (including any individual who was in- uals. PLICABLE LAW. advertently omitted from that roll). (2) ABSENCE OF HEIRS AND LEGATEES.—If the (a) RESPONSIBILITY FOR FUNDS—After the (ii) All enrolled Community members who Secretary and the Community make a final date on which funds are disbursed to the are living on the date of enactment of this determination that a deceased individual de- Community under section 101(e)(1), the Act. scribed in subsection (c)(2) has no heirs or United States and the Secretary shall have

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7377

no trust responsibility for the investment, ‘‘Section 3(b)(3) of the Indian Tribal Judg- TITLE I: GILA RIVER JUDGEMENT FUND supervision, administration, or expenditure ment Funds Use or Distribution Act (25 DISTRIBUTION of the funds disbursed. U.S.C. 1403(b)(3)) shall not apply to any per SECTION 101: DISTRIBUTION OF JUDGEMENT (b) DECEASED AND LEGALLY INCOMPETENT capita share of a minor that is held, as of the FUNDS. INDIVIDUALS.—Funds subject to subsections date of enactment of the Gila River Indian (a) Per Capita Payments. Authorizes dis- (f) and (g) of section 101 shall continue to be Community Judgment Fund Distribution tribution of judgement fund amount, less at- held in trust by the Secretary until the date Act of 2002, by the Secretary. The Secretary torneys fees and litigation expenses, includ- on which those funds are disbursed under shall hold a per capita share of a minor in ing all accrued interest, to all eligible en- this Act. trust until such date as the minor reaches 18 rolled members of the Community on a per (c) APPLICABILITY OF OTHER LAW.—Except years of age. No judgment funds, or any in- as otherwise provided in this Act, all funds capita basis. terest earned on judgment funds, shall be (b) Preparation of Payment Roll. Requires distributed under this Act shall be subject to disbursed from the account of a minor until sections 7 and 8 of the Indian Tribal Judg- the Community to prepare the payment roll such date as the minor reaches 18 years of of eligible enrolled members according to ment Funds Use or Distribution Act (25 age.’’. U.S.C. 1407, 1408). specific criteria, and includes description of TITLE III—EXPERT ASSISTANCE LOANS TITLE II—CONDITIONS RELATING TO individuals who shall be deemed ineligible to COMMUNITY JUDGMENT FUND PLANS SEC. 301. WAIVER OF REPAYMENT OF EXPERT AS- receive per capita payment. SISTANCE LOANS TO CERTAIN IN- (c) Notice to Secretary. Requires the Com- SEC. 201. PLAN FOR USE AND DISTRIBUTION OF DIAN TRIBES. munity to notify the Secretary of Interior of JUDGMENT FUNDS AWARDED IN (a) GILA RIVER INDIAN COMMUNITY.—Not- the total number of individuals eligible to DOCKET NO. 228. withstanding any other provision of law— (a) DEFINITION OF PLAN.—In this section, share in the per capita distribution after the (1) the balance of all outstanding expert as- the term ‘‘plan’’ means the plan for the use Community’s preparation of the payment sistance loans made to the Community under and distribution of judgment funds awarded roll. Public Law 88–168 (77 Stat. 301) and relating to the Community in Docket No. 228 of the (d) Information Provided to Secretary. Re- to Gila River Indian Community v. United United States Claims Court (52 Fed. Reg. 6887 quires the Community to provide the Sec- States (United States Court of Federal (March 5, 1987)), as modified in accordance retary of Interior with information nec- Claims Docket Nos. 228 and 236 and associ- with Public Law 99–493 (100 Stat. 1241). essary to allow the Secretary to establish es- (b) CONDITIONS.—Notwithstanding any ated subdockets) are canceled; and tate accounts for deceased individuals and other provision of law, the Community shall (2) the Secretary shall take such action as Individual Indian Money accounts for legally modify the plan to include the following con- is necessary— incompetent individuals and minors. ditions with respect to funds distributed (A) to document the cancellation of loans (e) Disbursement of Funds. Requires the under the plan: under paragraph (1); and Secretary to disburse to the Community the (1) APPLICABILITY OF OTHER LAW RELATING (B) to release the Community from any li- funds necessary to make the per capita pay- TO MINORS.—Section 3(b)(3) of the Indian ability associated with those loans. ment, not later than 30 days after the pay- Tribal Judgment Funds Use or Distribution (b) OGLALA SIOUX TRIBE.—Notwithstanding ment roll has been approved by the Commu- Act (25 U.S.C. 1403(b)(3)) shall not apply to any other provision of law— nity and the Community has reconciled the any per capita share of a minor that is held, (1) the balances of all outstanding expert number of shares that belong in each pay- as of the date of enactment of this Act, by assistance loans made to the Oglala Sioux ment category. Provides that once the funds the Secretary. Tribe under Public Law 88–168 (77 Stat. 301) are disbursed to the Community, the Com- and relating to Oglala Sioux Tribe v. United (2) SHARE OF MINORS IN TRUST.—The Sec- munity shall be responsible for admin- retary shall hold a per capita share of a States (United States Court of Federal istering and distributing the funds. minor described in paragraph (1) in trust Claims Docket No. 117 and associated sub- (f) Shares of Deceased Individuals. Re- until such date as the minor reaches 18 years dockets) are canceled; and quires the Secretary of Interior to distribute of age. (2) the Secretary shall take such action as per capita shares of deceased individuals to is necessary— (3) DISBURSAL OF FUNDS FOR MINORS.—No their heirs and legatees in accordance with judgment funds, nor any interest earned on (A) to document the cancellation of loans existing regulations. Where there are no judgment funds, shall be disbursed from the under paragraph (1); and heirs, provides that funds revert to the Com- account of a minor described in paragraph (1) (B) to release the Oglala Sioux Tribe from munity and shall be deposited in the Com- until such date as the minor reaches 18 years any liability associated with those loans. munity’s general fund. (c) SEMINOLE NATION OF OKLAHOMA.—Not- of age. (g) Shares of Legally Incompetent Individ- withstanding any other provision of law— (4) USE OF REMAINING JUDGMENT FUNDS.—On uals. Requires the Secretary of Interior to (1) the balances of all outstanding expert request by the governing body of the Com- deposit shares of legally incompetent indi- assistance loans made to the Seminole Na- munity, as manifested by the appropriate viduals into supervised Individual Indian tion of Oklahoma under Public Law 88–168 (77 tribal council resolution, any judgment Money accounts to be administered pursuant Stat. 301) and relating to Seminole Nation v. funds remaining after the date of completion to existing regulations. United States (United States Court of Fed- of the per capita distribution under section (h) Shares of Minors. Requires the Sec- eral Claims Docket No. 247) are canceled; and 101(a) shall be disbursed to, and deposited in retary of Interior to deposit shares of minors (2) the Secretary shall take such action as the general fund of, the Community. into supervised Individual Indian Manage- is necessary— SEC. 202. PLAN FOR USE AND DISTRIBUTION OF ment accounts and requires the Secretary to JUDGMENT FUNDS AWARDED IN (A) to document the cancellation of loans hold the funds in trust until the minor is 18 DOCKET NO. 236–N. under paragraph (1); and years of age. Provides that section 3(b)(3) of (a) DEFINITION OF PLAN.—In this section, (B) to release the Seminole Nation of Okla- the Indian Tribal Judgement Funds Act does the term ‘‘plan’’ means the plan for the use homa from any liability associated with not apply, the effect of which is to prevent and distribution of judgment funds awarded those loans. parents and guardians of minors from being to the Community in Docket No. 236–N of the able to receive shares on behalf of minors be- United States Court of Federal Claims (59 SECTION-BY-SECTION ANALYSIS—GILA RIVER fore they turn 18. Fed. Reg. 31092 (June 16, 1994)). INDIAN COMMUNITY-JUDGEMENT FUND USE (i) Payment of Eligible Individuals Not (b) CONDITIONS.— AND DISTRIBUTION LEGISLATION Listed on Payment Roll. Provides that indi- (1) PER CAPITA ASPECT.—Notwithstanding SECTION 1: SHORT TITLE AND TABLE OF viduals not listed on payment roll, but eligi- any other provision of law, the Community CONTENTS ble for payment, can be paid from any resid- shall modify the last sentence of the para- Short Title: Gila River Indian Community ual principal or interest fund remaining graph under the heading ‘‘Per Capita As- Judgement Fund Distribution Act of 2002; after the Community has made its per capita pect’’ in the plan to read as follows: ‘‘Upon and Table of Contents. distribution and the Individual Indian Money request from the Community, any residual accounts have been established. Authorizes SECTION 2: FINDINGS principal and interest funds remaining after the Community to pay these individuals the Community has declared the per capita Provides factual background regarding the from Community-owned funds if the residual distribution complete shall be disbursed to, litigation that led to the seven million set- funds are insufficient. Authorizes the Sec- and deposited in the general fund of, the tlement awarded to Gila River Indian Com- retary to accept and deposit Community- Community.’’. munity for the United States’ failure to pro- owned funds into an Individual Indian Money tect the Community’s use of water from the (2) GENERAL PROVISIONS.—Notwithstanding or estate account established for a minor, any other provision of law, the Community Gila River and Salt River under Dockets 236– legal incompetent or deceased beneficiary shall— C and 236–D of Gila River Pima-Maricopa In- who is eligible to receive payment, but who (A) modify the third sentence of the first dian Community v. United States, filed on was not paid from the judgment fund. Pro- paragraph under the heading ‘‘General Provi- August 8, 1951 before the Indian Claims Com- vides that the Secretary shall invest such sions’’ of the plan to strike the word ‘‘mi- mission. funds pursuant to existing regulation. nors’’; and SECTION 3: DEFINITIONS (j) Use of Residual Funds. Provides that if (B) insert between the first and second Provides definitions as utilized in the leg- the Community requests it, residual prin- paragraphs under that heading the following: islation. cipal and interest funds remaining after the

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7378 CONGRESSIONAL RECORD — SENATE July 25, 2002 Community’s per capita distribution is com- Mr. BAUCUS. Madam President, on Unfortunately natural disaster is no plete shall be disbursed to the Community March 28, 2002, Secretary Veneman de- longer an issue for just a few States. As and deposited into the Community’s general clared Montana a drought disaster. of July 22, forty-nine of 50 States are fund. (k) Non-applicability of Certain Law. Pro- This drought designation came two impacted by drought and 36 percent of vides that the Indian Gaming Regulatory months earlier than in 2001, and eight our country is currently classified as Act shall not apply to Community-owned months earlier than in 2000. some level of drought. This is an issue funds used by the Community to cover short- The unrelenting drought Montana is that can no longer be ignored. falls in funding necessary to make payments suffering has brought economic hard- I am pleased today to introduce with to individuals not listed on the payment roll, ship to our agriculture producers and Senator BURNS a natural disaster pack- but determined to be eligible. Added to en- rural communities. In 1996, the year be- age that will provide assistance to pro- sure that the Indian Gaming Regulatory fore the drought, Montana received Act’s prohibition on distribution of gaming ducers who have had losses due to nat- funds as per capita payments would not pre- $847 million in cash receipts from ural disasters in 2001 and 2002. It also vent Community-owned funds, including rev- wheat sales. In 2001, four years into the includes funding for 2001 and 2001 for enues from gaming, from being used to cover drought, Montana received $317 million the Livestock Assistance Program and shortfalls. in cash receipts, a 62 percent decline. the American Indian Livestock Feed SECTION 102: RESPONSIBILITY OF SECRETARY; Agriculture is more than 50 percent Program. The package that we intro- APPLICABLE LAW. of my State’s economy, and is truly duce today is the same policy that 69 of (a) Responsibility For Funds. Provides the backbone of my State. The drought my Senate Colleagues supported when that after disbursement of funds to Commu- not only affects our farmers and ranch- Senator ENZI and I offered the amend- nity, the Secretary of Interior shall no ers. It is felt throughout our rural com- ment to the Farm Bill but extended to longer have trust responsibility for the judg- munities. Small businesses are being ment funds. cover the 2002 crop year as well. (b) Deceased and Legally Incompetent In- forced to close their doors. Families It is true that the U.S. Department of dividuals. Provides that Secretary shall con- are moving away to find work. It would Agriculture has utilized the tools that tinue to have trust responsibility over funds be virtually impossible to find a single they have available to them. Access to retained in accounts for deceased bene- person who has not been either directly low interest loans, grazing and haying ficiaries and legally incompetent individ- or indirectly affected by the dry condi- on CRP acreage are important pieces uals. tions that we have. to ensuring that our producers stay in (c) Applicability of other Law. Provides Without our help, without passing that pursuant to sections 7 and 8 of the In- business. However, there is still one dian Tribal Judgment Funds Use or Distribu- natural disaster assistance, it is esti- major piece of the puzzle missing and tion Act, per capita payments are not tax- mated that 40 percent of Montana’s that is natural disaster assistance. able to individuals under state or federal law farmers and ranchers will not qualify It is also true that crop insurance is as income. for operating loans for the 2002 crop a very important risk management TITLE II—CONDITIONS RELATING TO COMMUNITY year. A large percentage of these hard- tool. I supported the crop insurance re- JUDGEMENT FUND PLANS working people will lose their land, form bill and I support and understand SECTION 201 their homes, their jobs, and their way the importance of crop insurance. More Provides definition and conditions of the of life. They will not be purchasing than 90 percent of insurable acres in plan for use and distribution of judgement clothes, seed, feed, fertilizer, or equip- Montana are insured. Unfortunately funds awarded in Docket No. 228. Adds para- ment in their local stores. They will for the program to be run in an actu- graph providing that Indian Tribal Judge- have to move, take their kids out of ment Funds Use and Distribution shall not arially sound fashion, producers are apply to minors’ per capita shares held by school. Small towns will die. helped the least when they hurt the the Secretary under the plan (effect is to It is unfortunate that farmers and most. When a producer is suffering prevent shares from being distributed to par- ranchers from Montana have to suffer from consecutive years of drought, ents and guardians of minors prior to age 18) the effects of prolonged drought with- their premium increases and their cov- and that Secretary shall hold the minors’ per out Federal assistance because disaster erage decreases. capita shares in trust until they reach age was not as wide spread in 2001 as it has We have the opportunity to stop that 18. Also adds paragraph stating that upon been in 2002. The farmers and ranchers Community’s request, any residual principal process. To keep our rural commu- and interest funds remaining after the Com- who suffered from severe drought in nities and economies alive. Rural munity has declared the per capita payment 2001 should not be penalized, rather re- America is resilient. And like them, I complete shall be distributed to the Commu- warded for their persistence and dedi- will not give up. Thousands of people nity and deposited into the Community’s cation to Montana’s vital industry. We are suffering from a relentless drought. general fund. desperately need cooperation and sup- They deserve natural disaster assist- SECTION 202 port from all sides to prove relief to ance and I will continue to fight to en- Provides definition and conditions of the our producers that have struggled sure they get it. plan for use and distribution of judgement through dry conditions for so long. We I am pleased to be working with my funds awarded in Docket No. 236–N. Amends need disaster assistance immediately fellow Senator from Montana, and I the plan to authorize disbursement of resid- and we need to provide extra assistance ask each of my Senate colleagues to ual principal and interest funds to the Com- for those who have endured drought in munity. Provides that provision of Indian join us in this effort. Tribal Judgment Funds Act permitting pay- 2001 and 2002. It is time to take action Mr. BURNS. Madam President, I rise ment to parents and legal guardians of mi- and to provide for those who have pro- today to express my support of the nors is not applicable, and requires Sec- duced so many vital resources for the Emergency Disaster Assistance Act of retary to hold minors’ shares in trust until people of the United States. 2002. I am proud to join my colleague they turn 18. I am disappointed that we have not from Montana, Senator BAUCUS, in in- TITLE III—EXPERT ASSISTANCE LOANS been able to produce legislation that is troducing this legislation. SECTION 301 much needed and long overdue to ben- However, more importantly I rise Waiver of repayment of expert assistance efit the hard working farmers and today in support of America’s farmers loans to certain Indian tribes. Waives repay- ranchers of the state of Montana and and ranchers. In my home State of ment of expert assistance loans made by the across the country. Many of the agri- Montana, we are looking at our fifth Department of Interior to Gila River Indian cultural producers in Montana who summer of severe drought. Many places Community, Oglala Sioux Tribe, Pueblo of have worked the same land for genera- in my great State are drying up and Santo Domingo, and Seminole Nation of Oklahoma. tions will no longer be able to survive blowing away. Dirt fills the ditches as farmers or ranchers without disaster alongside the roads and so many By Mr. BAUCUS (for himself, Mr. relief. Consecutive years of drought tumbleweeds clog the fences. I fear this BURNS, Mr. DASCHLE, and Mr. have caused economic devastation that may be the case for much of the West JOHNSON): soon prevent these agricultural pro- and Midwest after this summer. S. 2800. A bill to provide emergency ducers from doing their jobs. The ef- This legislation would provide much disaster assistance to agricultural pro- fects of this cycle will be devastating needed relief to those farmers and ducers; to the Committee on Agri- to the economy and the people of my ranchers hit the hardest by the culture, Nutrition, and Forestry. state. drought. Many have argued the Farm

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7379 Bill adequately met the needs of those and Universities Week. This resolution tion, arbitrary imprisonment of students, earning their living in agriculture. I is an appropriate tribute to the count- and public executions have increased since disagree. The Farm Bill provides eco- less academic contributions these in- President Khatami’s inauguration in 1997; Whereas men and women are not equal nomic assistance, but not weather re- stitutions of higher education have under the laws of Iran and women are legally lated disaster assistance. made throughout this fine Nation and deprived of their basic rights; In fact, it does not help farmers the State of South Carolina. Whereas the Iranian government shipped ‘‘when times are tough,’’ and the I am proud to have eight of the 105 50-tons of sophisticated weaponry to the Pal- drought conditions of the past several Historically Black Colleges located in estinian Authority despite Chairman Ara- years indicate that these are indeed my home State. They have long pro- fat’s cease-fire agreement, consistently very difficult times. The very reason I vided a quality education that has seeks to undermine the Middle East peace am requesting drought assistance is greatly contributed to our economic process, provides safe-haven to al-Qa’ida and Taliban terrorists, allows transit of arms for precisely because this farm bill does and social well-being, and I commend guerrillas seeking to undermine our ally not sufficiently meet the needs of those them for a job well done. In addition, Turkey, provides transit of terrorists seek- farmers who have suffered loss due to these colleges and universities will ing to destabilize the United States-pro- natural conditions during the past 4 help lead our country into the future, tected safe-haven in Iraq, and develops weap- years. I believe the farmers in the most with programs that prepare their stu- ons of mass destruction; extreme situations are the very ones dents for our increasingly sophisti- Whereas since the terrorist attacks of Sep- we should be helping. cated economy. The alumni of these in- tember 11, 2001, and despite rhetorical prot- estations to the contrary, the Government of I am committed to working with my stitutions have made many contribu- Iran has actively and repeatedly sought to colleagues to get this much-needed as- tions to our Nation and I hope this res- undermine the United States war on terror; sistance out to our rural areas, to the olution serves to recognize their Whereas there is a broad-based movement places that need it the most. I am also achievements as well. for change in Iran that represents all sectors committed to doing this in the most The passage of this resolution reaf- of Iranian society, including youth, women, responsible way possible. I believe we firms our support for these institu- student bodies, military personnel, and even can reach an agreement and find a real- tions. The Resolution requests the religious figures, that is pro-democratic, be- lieves in secular government, and is yearning istic amount that helps producers, yet President of the United States to issue an appropriate proclamation and calls to live in freedom; is fiscally responsible. Whereas following the tragedies of Sep- f on the people of the United States to tember 11, 2001, tens of thousands of Iranians observe the week with ceremonies, ac- filled the streets spontaneously and in soli- STATEMENTS ON SUBMITTED tivities and programs to demonstrate darity with the United States and the vic- RESOLUTIONS support for Historically Black Colleges tims of the terrorist attacks; and and Universities throughout this Na- Whereas the people of Iran deserve the sup- tion. port of the American people: Now, therefore, SENATE RESOLUTION 305—DESIG- be it NATING THE WEEK BEGINNING f Resolved, That it is the sense of the Senate SEPTEMBER 15, 2002, AS ‘‘NA- SENATE RESOLUTION 306—EX- that— TIONAL HISTORICALLY BLACK PRESSING THE SENSE OF THE (1) legitimizing the regime in Iran stifles SENATE CONCERNING THE CON- the growth of the genuine democratic forces COLLEGES AND UNIVERSITIES in Iran and does not serve the national secu- WEEK’’ TINUOUS REPRESSION OF FREE- rity interest of the United States; Mr. THURMOND submitted the fol- DOMS WITHIN IRAN AND OF IN- (2) positive gestures of the United States lowing resolution; which was referred DIVIDUAL HUMAN RIGHTS toward Iran should be directed toward the to the Committee on the Judiciary. ABUSES, PARTICULARLY WITH people of Iran, and not political figures REGARD TO WOMEN whose survival depends upon preservation of S. RES. 305 Mr. BROWNBACK (for himself, Mr. the current regime; and Whereas there are 105 historically black (3) it should be the policy of the United colleges and universities in the United WYDEN, Ms. COLLINS, Mr. DORGAN, Mr. States to seek a genuine democratic govern- States; GRASSLEY, Mr. CONRAD, Mr. SMITH of ment in Iran that will restore freedom to the Whereas black colleges and universities New Hampshire, and Mrs. BOXER) sub- Iranian people, abandon terrorism, and live provide the quality education so essential to mitted the following resolution; which in peace and security with the international full participation in a complex, highly tech- was referred to the Committee on For- community. nological society; eign Relations: Mr. WYDEN. Madam President, Whereas black colleges and universities S. RES. 306 today we are resolved to see a new, ra- have a rich heritage and have played a tional foreign policy toward Iran, a prominent role in American history; Whereas the people of the United States re- spect the Iranian people and value the con- policy that will engage the proud peo- Whereas black colleges and universities ple of that nation and support their as- have allowed many underprivileged students tributions that Iran’s culture has made to to attain their full potential through higher world civilization for over 3 millennia; pirations to be free of the theocratic education; and Whereas the Iranian people aspire to de- state that abuses and oppresses them. Whereas the achievements and goals of his- mocracy, civil, political, and religious It is time that we recognized that the torically black colleges and universities are rights, and the rule of law, as evidenced by forces of extremist clerics and their al- deserving of national recognition: Now, increasingly frequent antigovernment and lies have so completely dominated the therefore, be it anti-Khatami demonstrations within Iran government of Iran that there is no Resolved, and by statements of numerous Iranian expa- means to achieve political liberaliza- triates and dissidents; SECTION 1. DESIGNATION OF NATIONAL HIS- tion within the current system. While Whereas Iran is an ideological dictatorship TORICALLY BLACK COLLEGES AND President Khatami has often spoken of UNIVERSITIES WEEK. presided over by an unelected Supreme Lead- er with limitless veto power, an unelected liberalization, the last 5 years show The Senate— that either he is unwilling or unable to (1) designates the week beginning Sep- Expediency Council and Council of Guard- tember 15, 2002, as ‘‘National Historically ians capable of eviscerating any reforms, and effect any democratic change. Black Colleges and Universities Week’’; and a President elected only after the aforemen- In fact, the record of his administra- (2) requests that the President of the tioned disqualified 234 other candidates for tion has been increasing censorship, re- United States issue a proclamation calling being too liberal, reformist, or secular; ligious vigilantes and intimidation, on the people of the United States and inter- Whereas the United States recognizes the and wide-spread political repression. ested groups to observe the week with appro- Iranian peoples’ concerns that President Mu- The State Department has identified priate ceremonies, activities, and programs hammad Khatami’s rhetoric has not been systematic abuses including summary to demonstrate support for historically matched by his actions; executions, disappearances, and wide- Whereas President Khatami clearly lacks black colleges and universities in the United spread use of torture and other forms States. the ability and inclination to change the be- havior of the State of Iran either toward the of degradation. Mr. THURMOND. Madam President, I vast majority of Iranians who seek freedom Student dissidents within Iran have rise to submit a resolution recognizing or toward the international community; become increasingly better organized, the week of September 15–21, 2002 as Whereas political repression, newspaper and have been faced with greater re- National Historically Black Colleges censorship, corruption, vigilante intimida- pression. The frequent demonstrations

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7380 CONGRESSIONAL RECORD — SENATE July 25, 2002 by these students, women, and even re- Family Week in late November since SEC. 109A. PROVISIONS RELATING TO HIRING ligious dissidents, as well as the grow- 1996. However, due to frequent ‘short AND COMPENSATION OF CAPITOL HILL POLICE. ing movements of expatriates show week’ conflicts around the Thanks- (a) RECRUITMENT OF INDIVIDUALS WITHOUT that there is a yearning for democratic giving holidays, the designated week REGARD TO AGE.— change within the Iranian people. It has not always afforded enough time to (1) IN GENERAL.—The Chief of the Capitol should be a core value of our foreign schedule observance on and near our Police shall carry out any activities and pro- policy to encourage and support any military bases. grams to recruit individuals to serve as people who seek only the fundamental I believe a month long observation members of the Capitol Police without re- human freedoms laid out in our own will allow greater opportunity to plan gard to the age of the individuals. (2) RULE OF CONSTRUCTION.—Nothing in this bill of rights. events. Moreover, it will provide a subsection may be construed to affect any There is also self-interest involved in greater opportunity to stimulate media provision of law of any rule or regulation this move. The Iranian regime has been support. providing for the mandatory separation of supplying arms and cadre to terrorist A Concurrent Resolution will help members of the Capitol Police on the basis of movements attacking our allies in Tur- pave the way for this effort. I ask my age, or any provision of law or any rule or key, Armenia, and Israel, and has colleagues to join me in supporting regulation regarding the calculation of re- striven to be a destabilizing force this tribute to our military families. tirement or other benefits for members of throughout the middle-east and central the Capitol Police. f (b) RECRUITMENT AND RELOCATION BONUSES, Asia. This is not the fault of the Ira- AMENDMENTS SUBMITTED AND RETENTION BONUSES, AND TUITION ALLOW- nian people, but of a criminal class ANCES.— that dominates them and strangles PROPOSED (1) RECRUITMENT AND RELOCATION BO- their hopes for a peaceful and progres- SA 4319. Mr. DURBIN (for himself and Mr. NUSES.—Section 909(a) of chapter 9 of the sive future. In the days following the BENNETT) proposed an amendment to the bill Emergency Supplemental Act, 2002 (40 U.S.C. tragedy of September 11, it is the peo- H.R. 5121, making appropriations for the 207b–2; Public Law 107–117; 115 Stat. 2320) (in ple of Iran who spontaneously filled the Legislative Branch for the fiscal year ending this section referred to as the ‘‘Act’’) is amended— streets in shared grieving over the loss September 30, 2003, and for other purposes. SA 4320. Mr. DURBIN (for himself and Mr. (A) in paragraph (1), by striking ‘‘the of American lives. BENNETT) proposed an amendment to the bill Board determines that the Capitol Police In dealing with Iran we must focus H.R. 5121, supra. would be likely, in the absence of such a all of our efforts on the people, and SA 4321. Mr. DURBIN (for Ms. LANDRIEU bonus, to encounter difficulty in filling the their hopes for a free and democratic (for himself and Mr. DURBIN)) proposed an position’’ and inserting ‘‘the Chief, in the nation. The Voice of America, Radio amendment to the bill H.R. 5121, supra. Chief’s sole discretion, determines that such Free Europe, and Radio Liberty must SA 4322. Mr. DURBIN (for Mr. COCHRAN (for a bonus will assist the Capitol Police in re- redouble their efforts to provide uncen- himself, Mr. DURBIN, and Mr. BENNETT)) pro- cruitment efforts’’; and (B) by adding at the end the following: sored truth to the Iranian people. The posed an amendment to the bill H.R. 5121, supra. ‘‘(6) DETERMINATIONS NOT APPEALABLE OR State Department must cease lending SA 4323. Mr. DURBIN (for Mr. SPECTER (for REVIEWABLE.—Any determination of the legitimacy to the current regime and himself and Mr. DURBIN)) proposed an Chief under this subsection shall not be ap- pursue a policy of fundamental demo- amendment to the bill H.R. 5121, supra. pealable or reviewable in any manner.’’ cratic change; this administration SA 4324. Mr. DURBIN (for Mr. DODD) pro- (2) RETENTION ALLOWANCES.—Section 909(b) must seek ways to aid and sustain posed an amendment to the bill H.R. 5121, of the Act is amended— those movements that will effect that supra. (A) in paragraph (1)— change, to the benefit of the Iranian SA 4325. Mr. DURBIN (for himself and Mr. (i) by striking subparagraphs (A) and (B); and and American people alike. VOINOVICH) submitted an amendment in- tended to be proposed by him to the bill S. (ii) by striking ‘‘if—’’ and inserting ‘‘if the f 812, to amend the Federal Food, Drug, and Chief, in the Chief’s sole discretion, deter- Cosmetic Act to provide greater access to af- mines that such a bonus will assist the Cap- SENATE CONCURRENT RESOLU- fordable pharmaceuticals; which was ordered itol Police in retention efforts.’’; and TION 131—DESIGNATING THE to lie on the table. (B) in paragraph (3), by striking ‘‘the re- MONTH OF NOVEMBER 2002, AS duction or the elimination of a retention al- f ‘‘NATIONAL MILITARY FAMILY lowance may not be appealed’’ and inserting MONTH’’ TEXT OF AMENDMENTS ‘‘any determination of the Chief under this subsection, or the reduction or elimination Mr. INOUYE submitted the following SA 4319. Mr. DURBIN (for himself of a retention allowance, shall not be appeal- concurrent resolution; which was re- and Mr. BENNETT) proposed an amend- able or reviewable in any manner’’. ferred to the Committee on the Judici- ment to the bill H.R. 5121, making ap- (3) TUITION ALLOWANCES.—Section 909 of ary. propriations for the Legislative Branch the Act is amended— S. CON. RES. 131 for the fiscal year ending September 30, (A) by redesignating subsections (f) and (g) 2003, and for other purposes; as follows: as subsections (g) and (h), respectively; and Resolved by the Senate (the House of Rep- (B) by inserting after subsection (e) the fol- On page 33, lines 19 and 20, strike ‘‘,the resentatives concurring), That Congress— lowing: (1) designates the month of November 2002, Committee on House Administration of the ‘‘(f) TUITION ALLOWANCES.—The Chief of as ‘‘National Military Family Month’’; and House of Representatives,’’. the Capitol Police may pay tuition allow- (2) requests that the President issue a On page 34, lined 24, through page 35, line ances for payment or reimbursement of edu- proclamation calling upon the people of the 1, strike ‘‘,the Committee on House Adminis- cation expenses in the same manner and to United States to observe the month with ap- tration of the House of Representatives,’’. the same extent as retention allowances propriate ceremonies and activities. under subsection (b).’’ Mr. INOUYE. Madam President, SA 4320. Mr. DURBIN (for himself (c) AUTHORIZING PREMIUM PAY TO ENSURE today I rise to honor all our military and Mr. BENNETT) proposed an amend- AVAILABILITY OF PERSONNEL.— families by submitting a Concurrent ment to the bill H.R. 5121, making ap- (1) IN GENERAL.—The Chief of the Capitol Resolution to designate November 2002, propriations for the Legislative Branch Police may provide premium pay to officers as National Military Family Month. As for the fiscal year ending September 30, and members of the Capitol Police to ensure 2003, and for other purposes; as follows: the availability of such officers and members we all know, memories fade and the for unscheduled duty in excess of a 40-hour On page 12, line 4, strike ‘‘Board’’. hardships experienced by our military work week, based on the needs of the Capitol On page 12, line 8, insert before the period families are easily forgotten unless Police, in the same manner and subject to ‘‘, to be disbursed by the Capitol Police’’. they touch our own immediate family. the same terms and conditions as premium On page 12, line 10, strike ‘‘Board’’. pay provided to criminal investigators under Today, we have our men and women On page 12, line 20, strike ‘‘Board or their section 5545a of title 5, United States Code deployed all over the world, engaged in delegee’’. (subject to paragraph (2)). this war on terrorism. These far-rang- On page 16, between lines 19 and 20, insert (2) CAP ON TOTAL AMOUNT PAID.—Premium ing military deployments are ex- the following: pay for an officer or member under this sub- tremely difficult on the families who ‘‘This subsection shall not apply to an indi- section may not be paid in a calendar year to bear this heavy burden. vidual who is an employee of the Capitol Po- the extent that, when added to the total To honor these families the Armed lice immediately before the appointment.’’ basic pay paid or payable to such officer or Services YMCA has sponsored Military On page 25, add after line 25 the following: member for service performed in the year,

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7381 such pay would cause the total to exceed the ury accounts established under subsection are hereby superseded to the extent of the annual rate of basic pay payable for level II (b) and be available to the Chief for the same inconsistency. of the Executive Schedule, as of the end of purposes as, and in like manner and subject (h) CONFORMING AMENDMENTS.—(1) Section such year. to the same conditions as, the funds prior to 1821 of the Revised Statutes of the United (d) EFFECTIVE DATE AND REGULATIONS.— the transfer. States (40 U.S.C. 206) is amended by striking (1) EFFECTIVE DATE.—The provisions of, (2) EXISTING TRANSFER AUTHORITY.—Any the third sentence. and the amendments made by, this section transfer authority existing before the date of (2) Section 1822 of the Revised Statutes of shall apply to fiscal year 2003 and each fiscal enactment of this Act granted to the Chief the United States (40 U.S.C. 207) is repealed. year thereafter. Administrative Officer of the House of Rep- (3) Section 111 of title I of the Act entitled (2) REGULATIONS.— resentatives or the Secretary of the Senate ‘‘Making supplemental appropriations for (A) IN GENERAL.—Notwithstanding section for salaries, expenses, and operations of the the fiscal year ending September 30, 1977, and 909(g) of chapter 9 of the Emergency Supple- Capitol Police shall be transferred to the for other purposes’’, approved May 4, 1977 (2 mental Act, 2002 (40 U.S.C. 207b–2), the Chief Chief. U.S.C. 64–3), is amended— of the Capitol Police shall, not later than 60 (d) UNEXPENDED BALANCES.—Notwith- (A) by striking ‘‘Secretary of the Senate’’ days after the date of the enactment of this standing the provisions of any other law, the and inserting ‘‘Chief of the Capitol Police’’; Act, promulgate any regulations required to unexpended balances of appropriations for and carry out the provisions of, and the amend- the fiscal year 2003 and succeeding fiscal (B) by striking ‘‘United States Senate’’ and ments made by, this section and sections 105, years that are subject to disbursement by inserting ‘‘Capitol Police’’. 106, and 107. the Chief of the Capitol Police shall be with- (i) EFFECTIVE DATE.—This section and the (B) REVIEW AND APPROVAL.— drawn as of September 30 of the second fiscal amendments made by this section shall take (i) REVIEW.—The Chief shall submit regula- year following the period or year for which effect October 1, 2002, or the date of enact- tions prescribed under subparagraph (A) to provided. Unpaid obligations chargeable to ment of this Act, whichever is later, and the Capitol Police Board for review. any of the balances so withdrawn or appro- shall apply to the fiscal year in which such (ii) APPROVAL.—The regulations prescribed priations for prior years shall be liquidated date occurs and each fiscal year thereafter. under subparagraph (A) shall be subject to from any appropriations for the same gen- the approval of the Committee on Rules and eral purpose, which, at the time of payment, SA 4321. Mr. DURBIN (for Ms. LAN- are available for disbursement. Administration of the Senate and the Com- DRIEU (for himself and Mr. DURBIN)) (e) HIRING AUTHORITY; ELIGIBILITY FOR mittee on House Administration of the SAME BENEFITS AS HOUSE EMPLOYEES.— proposed an amendment to the bill House of Representatives. (1) AUTHORITY.— H.R. 5121, making appropriations for SEC. 109B. TRANSFER OF DISBURSING FUNCTION. (A) IN GENERAL.—Subject to subparagraph the Legislative Branch for the fiscal (a) IN GENERAL.— (B), the Chief of the Capitol Police, in car- year ending September 30, 2003, and for (1) DISBURSING OFFICER.—The Chief of the rying out the duties of office, is authorized other purposes; as follows: Capitol Police shall be the disbursing officer to appoint, hire, discharge, and set the On page 44, line 24, before the period, insert for the Capitol Police. Any reference in any terms, conditions, and privileges of employ- law or resolution before the date of enact- the following: ‘‘:Provided further, That, of the ment of officers, members, and employees of total amount appropriated, $500,000 shall re- ment of this section to funds paid or dis- the Capitol Police, subject to and in accord- bursed by the Chief Administrative Officer of main available until expended and shall be ance with applicable laws and regulations. equally divided and transferred to the Alex- the House of Representatives and the Sec- EVIEW OR APPROVAL.—In carrying out (B) R andria Museum of Art and the New Orleans retary of the Senate relating to the pay and the authority provided under this paragraph, Museum of Art for activities relating to the allowances of Capitol Police officers, mem- the Chief of the Capitol Police shall be sub- Louisiana Purchase Bicentennial Celebra- bers, and employees shall be deemed to refer ject to the same statutory requirements for tion’’ to the Chief of the Capitol Police. review or approval by committees of Con- (2) TRANSFER.—Any statutory function, gress that were applicable to the Capitol Po- SA 4322. Mr. DURBIN (for Mr. COCH- duty, or authority of the Chief Administra- lice Board on the day before the date of en- tive Officer of the House of Representatives actment of this Act. RAN (for himself, Mr. DURBIN, and Mr. or the Secretary of the Senate as disbursing (2) BENEFITS.—Officers, members, and em- BENNETT)) proposed an amendment to officers for the Capitol Police shall transfer ployees of the Capitol Police who are ap- the bill H.R. 5121, making appropria- to the Chief as the single disbursing officer pointed by the Chief under the authority of tions for the Legislative Branch for the for the Capitol Police. this subsection shall be subject to the same fiscal year ending September 30, 2003, (3) CONTINUITY OF FUNCTION.—Until such type of benefits (including the payment of and for other purposes; as follows: time as the Chief notifies the Chief Adminis- death gratuities, the withholding of debt, On page 28, line 11, strike ‘‘$108,743,000’’ and trative Officer of the House of Representa- and health, retirement, Social Security, and insert ‘‘$108,243,000’’. tives and the Secretary of the Senate that other applicable employee benefits) as are systems are in place for discharging the dis- provided to employees of the House of Rep- On page 63, insert between lines 10 and 11 bursing functions under this subsection, the resentatives, and any such individuals serv- the following: House of Representatives and the Senate ing as officers, members, and employees of SEC. 312. TITLE II OF THE CONGRESSIONAL shall continue to serve as the disbursing au- the Capitol Police as of the date of enact- AWARD ACT. thority on behalf of the Capitol Police. ment of this Act shall be subject to the same There are appropriated, out of any funds in (b) TREASURY ACCOUNTS.— rules governing rights, protections, pay, and the Treasury not otherwise appropriated, (1) SALARIES.—There is established in the benefits in effect immediately before such $500,000, to remain available until expended, Treasury of the United States a separate ac- date until such rules are changed under ap- to carry out title II of the Congressional count for the Capitol Police, into which shall plicable laws or regulations. Award Act (2 U.S.C. 811 et seq.). be deposited appropriations received by the (f) WORKER’S COMPENSATION.— Chief of the Capitol Police and available for (1) ACCOUNT.—There shall be established a SA 4323. Mr. DURBIN (for Mr. SPEC- the salaries of the Capitol Police. separate account in the Capitol Police for TER (for himself and Mr. DURBIN)) pro- (2) GENERAL EXPENSES.—There is estab- purposes of making payments for officers, posed an amendment to the bill H.R. lished in the Treasury of the United States a members, and employees of the Capitol Po- 5121, making appropriations for the separate account for the Capitol Police, into lice under section 8147 of title 5, United Legislative Branch for the fiscal year which shall be deposited appropriations re- States Code. ending September 30, 2003, and for ceived by the Chief of the Capitol Police and (2) PAYMENTS WITHOUT FISCAL YEAR LIMITA- available for the general expenses of the Cap- TION.—Notwithstanding any other provision other purposes; as follows: itol Police. of law, payments may be made from the ac- On page 5, line 26, insert before the period (c) TRANSFER OF FUNDS, ASSETS, ACCOUNTS, count established under paragraph (1) of this ‘‘,of which up to $500,000 shall be made avail- RECORDS, AND AUTHORITY.— subsection without regard to the fiscal year able for a pilot program for mailings of post- (1) IN GENERAL.—The Chief Administrative for which the obligation to make such pay- al patron postcards by Senators for the pur- Officer of the House of Representatives and ments is incurred. poses of providing notice of a town meeting the Secretary of the Senate are authorized (g) EFFECT ON EXISTING LAW.— by a Senator in a county (or equivalent unit and directed to transfer to the Chief of the (1) IN GENERAL.—The provisions of this sec- of local government) with a population of Capitol Police all funds, assets, accounts, tion shall not be construed to reduce the pay less than 250,000 and at which the Senator and copies of original records of the Capitol or benefits of any officer, member, or em- will personally attend: Provided, That any Police that are in the possession or under ployee of the Capitol Police whose pay was amount allocated to a Senator for such mail- the control of the Chief Administrative Offi- disbursed by the Chief Administrative Offi- ing shall not exceed 50 percent of the cost of cer of the House of Representatives or the cer of the House of Representatives or the the mailing and the remaining cost shall be Secretary of the Senate in order that all Secretary of the Senate before the date of paid by the Senator from other funds avail- such items may be available for the unified enactment of this Act. able to the Senator: Provided further, That operation of the Capitol Police. Any funds so (2) SUPERSEDING PROVISIONS.—All provi- not later than October 31, 2003, the Sergeant transferred shall be deposited in the Treas- sions of law inconsistent with this section at Arms and Doorkeeper of the Senate shall

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7382 CONGRESSIONAL RECORD — SENATE July 25, 2002 submit a report to the Committee on Rules care program and their health care pro- drug described in paragraph (1) that is not a and Administration and Committee on Ap- viders. brand name drug. propriations of the Senate on the Senate of (2) CALCULATION OF AVERAGE RETAIL f the program’’. PRICES.—Using the data collected under paragraph (1), the Secretary shall calculate NOTICES OF HEARINGS/MEETINGS SA 4324. Mr. DURBIN (for Mr. DODD) an average retail price for each prescription proposed an amendment to the bill drug for which data is collected under such COMMITTEE ON ENERGY AND NATURAL H.R. 5121, making appropriations for subsection. RESOURCES the Legislative Branch for the fiscal (3) AUTHORITY TO CONTRACT WITH A PRIVATE Mr. BINGAMAN. Mr. President, I ENTITY TO COLLECT DATA AND CALCULATE year ending September 30, 2003, and for would like to announce for the infor- PRICES.—If determined appropriate by the mation of the Senate and the public other purposes; as follows: Secretary, the Secretary may contract with On page 9, between lines 17 and 18, insert: a private entity to— that a hearing has been scheduled be- SEC. ll. PUBLIC SAFETY EXCEPTION TO IN- (A) collect the data under paragraph (1); fore the committee on Energy and Nat- SCRIPTIONS REQUIREMENT ON MO- and ural Resources. BILE OFFICES. (B) make the calculations under paragraph The hearing will take place on (a) IN GENERAL.—Section 3(f)(3) under the (2). Wednesday, August 7, 2002, from 9:00 heading ‘‘ADMINISTRATIVE PROVISIONS’’ in the (c) CONSUMER GUIDE TO PRESCRIPTION appropriation for the Senate in the Legisla- a.m. until 11:00 a.m. at the Genoveva DRUGS.— Chavez Community Center, 3221 Rodeo tive Branch Appropriation Act, 1975 (2 U.S.C. (1) IN GENERAL.—The Secretary shall— 59(f)(3)) is amended by adding at the end the (A) annually publish a Consumer Guide to Road, in Santa Fe, New Mexico. following flush sentence: Prescription Drugs; The purpose of the hearing is to re- ‘‘The Committee on Rules and Administra- (B) annually distribute such Guide to bene- ceive testimony on S. 2776, a bill to tion of the Senate may prescribe regulations ficiaries under the medicare program; provide for the protection of archae- to waive or modify the requirement under (C) make such Guide available to health ological sites in the Galisteo Basin in subparagraph (B) if such waiver or modifica- care providers; and New Mexico, and for other purposes. tion is necessary to provide for the public (D) maintain the information contained in Because of the limited time available such Guide on the Medicare Internet site of safety of a Senator and the Senator’s staff for the hearing, witnesses may testify and constituents.’’ the Department of Health and Human Serv- (b) EFFECTIVE DATE.—The amendment ices. by invitation only. However, those made by this section shall take effect on the (2) REQUIREMENTS.—The Consumer Guide wishing to submit written testimony date of enactment of this Act and apply to to Prescription Drugs established under for the hearing record should send two the fiscal year that includes such date and paragraph (1) shall, with respect to the drugs copies of their testimony to the Com- each fiscal year thereafter. for which data is collected under subsection mittee on Energy and Natural Re- (b)— sources, United States Senate, 312 SA 4325. Mr. DURBIN (for himself (A) provide beneficiaries under the medi- care program and health care providers Dirksen Senate Office Building, Wash- and Mr. VOINOVICH) submitted an ington, DC 20510, or to Senator Binga- amendment intended to be proposed by with— (i) easy-to-understand information about man’s office in Santa Fe, 119 E. Marcy him to the bill S. 812, to amend the such prescription drugs and information on Street, Suite 101, Santa Fe, NM 87501. Federal Food, Drug, and Cosmetic Act the requirement under the Federal Food, For further information, please con- to provide greater access to affordable Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) tact David Brooks of the Committee pharmaceuticals; which was ordered to that a generic drug be bioequivalent to the staff at (202) 224–4103. lie on the table; as follows: brand name drug for which it is a substitute; At the appropriate place, insert the fol- and f lowing: (ii) information to assist such beneficiaries AUTHORITY FOR COMMITTEES TO SEC. ll. COLLECTION OF PRESCRIPTION DRUG and providers in comparing the costs of such PRICES; CALCULATION OF AVERAGE prescription drugs by therapeutic category; MEET RETAIL PRICES; CONSUMER GUIDE and COMMITTEE ON ARMED SERVICES TO PRESCRIPTION DRUGS. (iii) information regarding the wide vari- (a) PURPOSES.—The purposes of this section ation in drug prices across the country; Mr. REID. Mr. President, I ask unan- are the following: (B) group such prescription drugs within imous consent that the Committee on (1) To provide beneficiaries under the their therapeutic classes; Armed Services be authorized to meet medicare program under title XVIII of the (C) identify generic equivalents where during the session of the Senate on Social Security Act with information on the available for brand name drugs in a manner Thursday, July 25, 2002, at 9:30 a.m., in prices of prescription drugs so that they can that allows the beneficiary and the health open session to receive testimony on decide, in consultation with their health care provider to compare the relative prices the national security implications of care providers, whether a brand name drug of generic and brand name drugs; and the strategic offensive reductions trea- or its therapeutic or generic equivalent (D) include a list of the average retail price would be appropriate. of each such prescription drug (as deter- ty. (2) To provide information to health care mined under subsection (b)). The PRESIDING OFFICER. Without providers on the prices of prescription drugs (3) TIMEFRAME.—The Secretary shall pub- objection, it is so ordered. and the generic equivalents of such drugs. lish the Consumer Guide to Prescription COMMITTEE ON BANKING, HOUSING, AND URBAN (3) To inform beneficiaries under the medi- Drugs within 24 months of the date of enact- AFFAIRS care program of the role of the Food and ment of this Act and shall publish an up- Mr. President, I ask unanimous con- Drug Administration in ensuring that ge- dated version of the Guide annually there- sent that the Committee on Banking, neric drugs are as safe as brand name drugs after. The Secretary may publish periodic and equivalent to brand name drugs. bulletins to such Guide that reflect changes Housing, and Urban Affairs be author- (b) CALCULATION OF AVERAGE RETAIL in the prices of prescription drugs in the ized to meet during the session of the PRICES.— Guide between the dates of annual publica- Senate on Thursday, July 25, 2002, im- (1) COLLECTION OF RETAIL PRESCRIPTION tion of the Guide. mediately following the first rollcall DRUG PRICES.— (4) INCLUSION IN MEDICARE HANDBOOK.—If vote, to conduct a mark up on the (A) RETAIL PRICES OF 200 MOST COMMONLY the Secretary determines that it is appro- nominations of Mr. Paul S. Atkins, of USED DRUGS BY MEDICARE BENEFICIARIES.— priate to do so, the Secretary may publish Virginia, to be a member of the Securi- The Secretary of Health and Human Services the Consumer Guide to Prescription Drugs as ties and Exchange Commission; Mr. (in this section referred to as the ‘‘Sec- part of the notice of medicare benefits re- retary’’) shall establish a process for the col- quired by section 1804(a) of the Social Secu- Harvey Jerome Goldschmid, of New lection of sample data nationwide on the re- rity Act (42 U.S.C. 1395b–2(a)). York, to be a member of the Securities tail prices of the 200 most commonly used (d) GENERIC DRUG DEFINED.—In this sec- and Exchange Commission; Ms. Cyn- prescription drugs by beneficiaries under the tion, the term ‘‘generic drug’’ means— thia A. Glassman, of Virginia, to be a medicare program. (1) a drug approved under subsection (b)(2) member of the Securities and Ex- (B) RETAIL PRICES OF ADDITIONAL DRUGS.— or (j) of section 505 of the Federal Food, change Commission; and Mr. Roel C. The process established under paragraph (1) Drug, and Cosmetic Act (21 U.S.C. 355) and Campos, of Texas, to be a member of may provide for the collection of retail for which the brand name drug is the listed prices on prescription drugs not described in drug for the drug approved under such a sub- the Securities and Exchange Commis- such paragraph if the Secretary determines section; and sion. that such collection is feasible and would be (2) a drug that the Secretary has deter- The PRESIDING OFFICER. Without beneficial to beneficiaries under the medi- mined is therapeutically equivalent to a objection, it is so ordered.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7383 COMMITTEE ON COMMERCE, SCIENCE, AND cember 18, 1979, and signed on behalf of COMMITTEE ON HEALTH, EDUCATION, LABOR, TRANSPORTATION the United States of America on July AND PENSIONS Mr. REID. Mr. President, I ask unan- 17, 1980. Mr. REID. Mr. President, I ask unan- imous consent that the Committee on 2. Treaty Doc. 105–32, An agreement imous consent that the Committee on Commerce, Science, and Transpor- Establishing the South Pacific Re- Health, Education, Labor, and Pen- tation be authorized to meet on Thurs- gional Environment Programme, done sions be authorized to meet for a hear- day, July 25, 2002, at 9:30 a.m. on avia- at Apia on June 16, 1993. ing on Violence against Women in the tion security in transition. 3. Treaty Doc. 105–53, A Treaty Be- Workplace: The Extent of the Problem The PRESIDING OFFICER. Without tween the Government of the United and What Government and Businesses objection, it is so ordered. States of America and the Government Are Doing About It, during the session COMMITTEE ON ENVIRONMENT AND PUBLIC of Niue on the Delimitation of a Mari- of the Senate on Thursday, July 25, WORKS time Boundary. 2002 at 10:00 a.m. in SD–430. Mr. REID. Mr. President, I ask unan- THE PRESIDING OFFICER. Without Legislation: imous consent that the Committee on objection, it is so ordered. Environment and Public Works be au- 4. S. Res. 300, A resolution encour- COMMITTEE ON INDIAN AFFAIRS aging the peace process in Sri Lanka, thorized to meet on Thursday, July 25, Mr. REID. Mr. President, I ask unan- with amendments. 2002, at 11:00 a.m. to consider pending imous consent that the Committee on legislation, nominations, and resolu- Nominations: Indian Affairs be authorized to meet on tions. The meeting will be held in SD– 5. Mr. Randolph Bell, of Virginia, for Thursday, July 25, 2002, at 10:00 a.m. in 406. the rank of Ambassador during his ten- Room 485 of the Russell Senate Office Agenda ure of service as Special Envoy for Hol- Building to conduct a hearing on the July 2, 2002 Report of the U.S. Depart- Legislation: ocaust Issues. 6. Mr. James Gadsden, of Maryland, ment of the Interior to the Congress on S. 1602, the Chemical Security Act of to be Ambassador to the Republic of the Historical Accounting of Individual 2001 Iceland. Indian Money Accounts. S. 1746, the Nuclear Security Act of 7. Mr. James Jeffrey, of Virginia, to The PRESIDING OFFICER. Without 2001 be Ambassador to the Republic of Alba- objection, it is so ordered. S. 1850, the Underground Storage nia. COMMITTEE ON THE JUDICIARY Tank Compliance Act of 2001 8. Mr. Michael Klosson, of Maryland, Mr. REID. Mr. President, I ask unan- S. 2771, the John F. Kennedy Center to be Ambassador to the Republic of imous consent that the Committee on Plaza Authorization Act of 2002 Cyprus. the Judiciary be authorized to meet to Nominations: 9. Mr. Norman J. Pattiz, of Cali- conduct a hearing on ‘‘Oversight of the fornia, to be a Member of the Broad- Department of Justice,’’ on Thursday, Nomination of John S. Bresland to be casting Board of Governors for a term July 25, 2002 in Dirksen Room 226 at a Member and Chair of the Chemical expiring August 13, 2004. 10:00 a.m. Safety and Hazard Investigation Board 10. Mr. Paul Speltz, of Texas, to be Nomination of Carolyn W. Merritt to United States Executive Director of Witness List be a Member and Chair of the Chemical the Asian Development Bank, with the The Honorable John D. Ashcroft, At- Safety and Hazard Investigation Board rank of Ambassador. torney General, Department of Justice, Nomination of John P. Suarez to be 11. Mr. Mark Sullivan, III, of Mary- Washington, DC. Assistant Administrator for Enforce- land, to be United States Executive Di- The PRESIDING OFFICER. Without ment and Compliance, Environmental rector of the European Bank for Recon- objection, it is so ordered. Protection Agency struction and Development. SELECT COMMITTEE ON INTELLIGENCE Resolutions: 12. Mr. Kenneth Y. Tomlinson, of Vir- Mr. REID. Mr. President, I ask unan- ginia, to be a Member and Chairman of Study Resolution for Brush Creek imous consent that the Select Com- the Broadcasting Board of Governors mittee on Intelligence be authorized to Basin, Kansas and Missouri for a term expiring August 13, 2004. Study Resolution for Walton County, meet during the session of the Senate The PRESIDING OFFICER. Without on Thursday, July 25, 2002 at 10:00 a.m. Florida objection, it is so ordered. Study Resolution for Mercer County, to hold a closed hearing on the Joint COMMITTEE ON GOVERNMENTAL AFFAIRS Inquiry into the events of September New Jersey Mr. REID. Mr. President, I ask unan- Study Resolution for Camden and 11, 2001. imous consent that the Committee on The PRESIDING OFFICER. Without Gloucester Counties, New Jersey Governmental Affairs be authorized to Study Resolution for Indian River objection, it is so ordered. meet on Thursday, July 25, 2002 at 9:30 SUBCOMMITTEE ON PUBLIC LANDS AND FORESTS and Bay, Delaware a.m. for a business meeting to consider Mr. REID. Mr. President, I ask unan- Study Resolution for Sand Creek, pending business. Oklahoma imous consent that the Public Lands Study Resolution for Shellpot Creek, Agenda and Forests Subcommittee of the Com- Delaware 1. To authorize withdrawal of the mittee on Energy and Natural Re- The PRESIDING OFFICER. Without Committee amendments and offering of sources be authorized to hold a Hearing objection, it is so ordered. a floor amendment in the nature of a during the session of the Senate on COMMITTEE ON FOREIGN RELATIONS substitute to the National Homeland Thursday, July 25, at 2:30 p.m. in SD– Mr. REID. Mr. President, I ask unan- Security and Combating Terrorism Act 366. imous consent that the Committee on of 2002 (S. 2452) which the Committee The purpose of this hearing is to re- Foreign Relations be authorized to ordered reported on May 22, 2002. ceive testimony on S. 2672, to provide opportunities for collaborative restora- meet during the session of the Senate Nominations: on Thursday, July 25, 2002 at 10:30 a.m. tion projects on National Forest Sys- to hold a business meeting. a. James ‘‘Jeb’’ E. Boasberg to be an tem and other public lands. Associate Judge of the Superior Court The PRESIDING OFFICER. Without Agenda of the District of Columbia. objection, it is so ordered. The Committee will consider and b. Michael D. Brown to be Deputy Di- f vote on the following agenda items: rector of the Federal Emergency Man- agement Agency. EXECUTIVE SESSION Treaties: c. The Honorable Mark W. Everson to 1. Treaty Doc. 96–53, Convention on be Deputy Director for Management, the Elimination of All Forms of Dis- Office for Management and Budget EXECUTIVE CALENDAR crimination Against Women, adopted THE PRESIDING OFFICER. Without Mr. REID. Madam President, I ask by the U.N. General Assembly on De- objection, it is so ordered. unanimous consent that the Senate

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7384 CONGRESSIONAL RECORD — SENATE July 25, 2002 proceed to executive session to con- THE NOMINATION OF DAVID WILLIAM THOMAS TO The Chair, on behalf of the Repub- sider the following nominations en BE US MARSHAL FOR THE DISTRICT OF DELA- lican Leader, pursuant to Public Law bloc: Calendar Nos. 829, 830, 832, 837, 838, WARE. 107–171, announces the appointment of 839, 841, 842, 843, 844, 845, 931, 932, 933, Mr. CARPER. Madam President, I Mr. Robert H. Forney, of Indiana, to and 934. rise to enthusiastically support the serve as a member of the Board of The PRESIDING OFFICER. Without nomination of David William Thomas Trustees of the Congressional Hunger objection, it is so ordered. to be the next United States Marshal Fellows Program. for the District of Delaware. Mr. REID. I further ask that the f nominations be confirmed en bloc, the It has been my pleasure to know Sgt. motions to reconsider be laid upon the Thomas for many years. He is a good MEASURE READ THE FIRST table; and any statements be printed in and decent person, a devoted and com- TIME—H.R. 4965 mitted husband and father, a fine po- the Record; that the President be im- Mr. REID. It is my understanding lice officer, a volunteer fire fighter and mediately notified of the Senate’s ac- H.R. 4965 is now at the desk. I therefore tion; and that the Senate then return an all around ‘‘great guy.’’ I believe he will serve both Delaware and the ask for its first reading. to legislative session, with the pre- United States very, very well. The PRESIDING OFFICER. The ceding all occurring without any inter- ‘‘Tito,’’ as many call him, has been a clerk will read the bill by title for the vening action or debate. police officer for more than 20 years. first time. The PRESIDING OFFICER. Without He began his career as a patrol officer The assistant legislative clerk read objection, it is so ordered. with the University of Delaware Police as follows: The nominations were considered and where he quickly developed a reputa- A bill (H.R. 4965) to prohibit the procedure confirmed en bloc, as follows: tion for firmness in his enforcement of commonly known as partial-birth abortion. CONSUMER PRODUCT SAFETY COMMISSION the law and university policy as well as Mr. REID. I now ask for the second Harold D. Stratton, of New Mexico, to be for sensitivity to the particular needs reading and object to my own request. Chairman of the Consumer Products Safety and concerns of the student body. After The PRESIDING OFFICER. Objec- Commission. Harold D. Stratton, of New Mexico, to be a three years, Sgt. Thomas moved to the tion is heard. Commissioner of the Consumer Product Delaware State Police where he served f Safety Commission for the remainder of the in several different capacities ranging term expiring October 26, 2006. from Patrol Trooper, where the rubber ORDERS FOR FRIDAY, JULY 26, 2002 FEDERAL EMERGENCY MANAGEMENT AGENCY literally hits the road, to public infor- Mr. REID. I ask unanimous consent Anthony Lowe, of Washington, to be Fed- mation officer, interacting with the that when the Senate completes its eral Insurance Administrator, Federal Emer- public and the media. business today, it stand in adjourn- gency Management Agency. During his tenure with the State Po- ment until 9:55 a.m., Friday, July 26; THE JUDICIARY lice, ‘‘Tito’’ Thomas worked directly that following the prayer and the Robert R. Rigsby, of the District of Colum- for two governors of Delaware. During pledge, the morning hour be deemed bia, to be an Associate Judge of the Superior the second term of former Governor expired, the Journal of proceedings be Court of the District of Columbia for the Mike Castle who is now Delaware’s approved to date, the time for the two term of fifteen years. congressman, Sgt. Thomas provided se- leaders be reserved for their use later DISTRICT OF COLUMBIA OFFENDER SUPERVISION, curity as a member of the Executive in the day, and the Senate proceed to DEFENDER, AND COURTS SERVICES AGENCY Protection Unit. During my own sec- executive session to vote on cloture on Paul A. Quander, Jr., of the District of Co- ond term as Governor, ‘‘Tito’’ served as Executive Calendar No. 810. lumbia, to be Director of the District of Co- Legislative Liaison for my Department The PRESIDING OFFICER. Without lumbia Offender Supervision, Defender, and of Public Safety, promoting public objection, it is so ordered. Courts Services Agency for a term of six safety legislation in our state general years. Mr. REID. The next rollcall vote will assembly. occur at approximately 10 a.m. on clo- DEPARTMENT OF JUSTICE In addition to his employment as a ture on the nomination of Julia Smith Todd Walther Dillard, of Maryland, to be police officer, Sgt. Thomas has served Gibbons to be United States Circuit United States Marshal for the Superior his community as a volunteer in other Judge for the Sixth Circuit and a sec- Court of the District of Columbia for the capacities. Notably, he is a member of term of four years. ond rollcall vote on an additional judi- the Aetna Hose Hook and Ladder Vol- DEPARTMENT OF JUSTICE cial nomination is possible tomorrow. unteer Fire Company in Newark, Dela- f Roslynn R. Mauskopf, of New York, to be ware and a volunteer CPR Instructor United States Attorney for the Eastern Dis- trict of New York for the term of four years. with the American Heart Association. ADJOURNMENT UNTIL 9:55 A.M. Steven D. Deatherage, of Illinois, to be David Thomas’ extensive and varied TOMORROW United States Marshal for the Central Dis- background in law enforcement, his Mr. REID. If there is no further busi- trict of Illinois for the term of four years. demonstrated sense of commitment to ness to come before the Senate, I now Thomas M. Fitzgerald, of Pennsylvania, to his community, his devotion to his ask unanimous consent the Senate be United States Marshal for the Western growing family and his exemplary District of Pennsylvania for the term of four stand in adjournment under the pre- moral character all serve to qualify vious order. years. him well to be United States Marshall G. Wayne Pike, of Virginia, to be United There being no objection, the Senate, States Marshal for the Western District of for the District of Delaware. at 6:59 p.m., adjourned until Friday, Virginia for the term of four years. f July 26, 2002, at 9:55 a.m. David William Thomas, of Delaware, to be LEGISLATIVE SESSION United States Marshal for the District of f Delaware for the term of four years. The PRESIDING OFFICER. Under NOMINATIONS SECURITIES AND EXCHANGE COMMISSION the previous order, the Senate will re- tire to legislative session. Executive nominations received by Paul S. Atkins, of Virginia, to be a Mem- the Senate July 25, 2002: ber of the Securities and Exchange Commis- f THE JUDICIARY sion for the remainder of the term expiring APPOINTMENTS June 5, 2003. JEFFREY S. WHITE, OF CALIFORNIA, TO BE UNITED Cynthia A. Glassman, of Virginia, to be a The PRESIDING OFFICER. The STATES DISTRICT JUDGE FOR THE NORTHERN DISTRICT OF CALIFORNIA, VICE CHARLES A. LEGGE, RETIRED. Member of the Securities and Exchange Chair, on behalf of the President pro KENT A. JORDAN, OF DELAWARE, TO BE UNITED Commission for a term expiring June 5, 2006. tempore, pursuant to P.L. 103–227, ap- STATES DISTRICT JUDGE FOR THE DISTRICT OF DELA- Harvey Jerome Goldschmid, of New York, WARE, VICE RODERICK R. MCKELVIE, RETIRED. points the following individual to the SANDRA J. FEUERSTEIN, OF NEW YORK, TO BE UNITED to be a Member of the Securities and Ex- National Skill Standards Board for a STATES DISTRICT JUDGE FOR THE EASTERN DISTRICT change Commission for the term expiring OF NEW YORK, VICE THOMAS C. PLATT, JR., RETIRED. term of four years: Upon the rec- June 5, 2004. IN THE AIR FORCE Roel C. Campos, of Texas, to be a Member ommendation of the Republican Lead- er: Betty W. DeVinney of Tennessee, THE FOLLOWING NAMED OFFICER FOR APPOINTMENT of the Securities and Exchange Commission IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- for a term expiring June 5, 2005. Representative of Business. CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 9801 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7385

AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTIONS DAVID W. PFAFFENBICHLER, 0000 ARTHUR L CAMPBELL III, 0000 8036 AND 601: ROBERT F. ROCCO, 0000 ROBERT A CARDONA, 0000 JAIME L. ROSADO JR., 0000 DAVID J CASEY, 0000 To be lieutenant general DAWN E. ROWE, 0000 JOHN R CHANCE, 0000 MAJ. GEN. GEORGE P. TAYLOR JR., 0000 SCOTT J. SANCHEZ, 0000 DIANE M CHIRICO, 0000 MICHELE M. SCHOTT, 0000 CHARLES J CHITWOOD, 0000 IN THE ARMY JIMMY L. STERLING, 0000 GREGORY T CHOE, 0000 RICHARD N. TERRY, 0000 ANNETTE R CLARKBROWN, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT PORTIA A. THOMAS, 0000 DAVID W COLE, 0000 IN THE UNITED STATES ARMY TO THE GRADE INDICATED JUDITH E. VALDEZ, 0000 MICHAEL A COLE, 0000 WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND TIMOTHY VALLADARES, 0000 JAMES P COLEMAN III, 0000 RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: KIRSTEN F. WATKINS, 0000 GEORGE R COLLINS, 0000 To be lieutenant general JON C. WELCH, 0000 JOHN W COLLINS, 0000 GILMER G. WESTON III, 0000 BRENDON R CONNOLLY, 0000 MAJ. GEN. RICHARD A. CODY, 0000 ALAN D CONWAY, 0000 IN THE ARMY PATRICK R COOK, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT CHRISTOPHER R COTE, 0000 THE FOLLOWING NAMED ARMY NATIONAL GUARD OF IN THE UNITED STATES ARMY TO THE GRADE INDICATED RICHARD J CRETTELA, 0000 THE UNITED STATES OFFICERS FOR APPOINTMENT TO WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND ROBERT F CROWE, 0000 THE GRADE INDICATED IN THE RESERVE OF THE ARMY RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: PAUL J CUNNINGHAM, 0000 UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: To be lieutenant general GREGORY G DAMMANN, 0000 To be colonel COLIN Y DANIELS, 0000 MAJ. GEN. BANTZ J. CRADDOCK, 0000 JASMINE T DANIELS, 0000 ANTONIO CORTESSANCHEZ, 0000 KURT G DAVIS, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT KIMBERLY D. WILSON, 0000 RUSSELL O DAVIS, 0000 IN THE UNITED STATES ARMY TO THE GRADE INDICATED THE FOLLOWING NAMED ARMY NATIONAL GUARD OF JEFFREY A DEAN, 0000 WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND THE UNITED STATES OFFICERS FOR APPOINTMENT TO CARL W DECKER, 0000 RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: THE GRADE INDICATED IN THE RESERVE OF THE ARMY RHONDA DEEN, 0000 To be lieutenant general UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: SHAD H DEERING, 0000 KENT J DEZEE, 0000 MAJ. GEN. WILLIAM E. WARD, 0000 To be colonel BRIAN P DEZZUTTI, 0000 CHARLES S DIETRICH III, 0000 HENRY G. BERNREUTER, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT ANDREW E DOYLE, 0000 LAWRENCE W. BROCK III, 0000 IN THE RESERVE OF THE ARMY TO THE GRADE INDI- GARY P DUPUY, 0000 MATTHEW B. CHANDLER, 0000 CATED UNDER TITLE 10, U.S.C., SECTION 12203: TRECIA L ELAHEE, 0000 MARK C. CHUN, 0000 MICHAEL W ELLIS, 0000 ANTHONY C. CRAWFORD, 0000 To be major general BARRY R FLEISCHER, 0000 EDDIE H. GOFF, 0000 MICHELLE S FLORES, 0000 BRIG. GEN. WILLIAM S. CRUPE, 0000 JESUS G. RAMIREZ JR., 0000 JAN H FLOYD, 0000 MARK D. SCRABA, 0000 THE FOLLOWING ARMY NATIONAL GUARD OFFICERS ANTHONY M FOLEY, 0000 FOR APPOINTMENT IN THE RESERVE OF THE ARMY TO THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT LOUIS F FOLEY, 0000 THE GRADES INDICATED UNDER TITLE 10, U.S.C., SEC- TO THE GRADE INDICATED IN THE UNITED STATES ARMY BRUCE M FOOTIT, 0000 TION 12203: DENTAL CORPS, UNDER TITLE 10, U.S.C., SECTIONS 624 FRANKLIN W FREDERICK, 0000 To be major general AND 3064: MARK C FRIBERG, 0000 To be major TODD A FUNKHOUSER, 0000 BRIGADIER GENERAL HARRY B. BURCHSTEAD JR., 0000 PAUL D GARRETT, 0000 BRIGADIER GENERAL GEORGE A. BUSKIRK JR., 0000 RALF C BEILHARDT, 0000 CASEY J GEANEY, 0000 BRIGADIER GENERAL JAMES A. COZINE, 0000 ROBERT E BESSEY, 0000 PHILIP J GENTLESK, 0000 BRIGADIER GENERAL RICKY D. ERLANDSON, 0000 JOHN E BROCK, 0000 JAMES J GERACCI, 0000 BRIGADIER GENERAL GREGORY J. VADNAIS, 0000 EDA P DEMETRIUS, 0000 LYNN M GIARRIZZO, 0000 WILLIAM J GREENWOOD, 0000 KELLY R GILLESPIE, 0000 To be brigadier general THEODORE R GRIGG, 0000 MELISSA L GIVENS, 0000 NICHOLE R GLASS, 0000 COLONEL BRUCE E. BECK, 0000 IKE B HARDY, 0000 LISA B GOFF, 0000 COLONEL RICHARD M. BLUNT, 0000 DOXIADES A HILL, 0000 RAYMOND G GOOD, 0000 COLONEL TOD J. CARMONY, 0000 HERMANN F HINZE, 0000 ERIC J GOURLEY, 0000 COLONEL MICHAEL J. CURTIN, 0000 PHUONG C HUYNH, 0000 JOSEPH D GRAMLING, 0000 COLONEL HUNTINGTON B. DOWNER JR., 0000 CHRISTOPHER S LEA, 0000 JENNIFER A GRECO, 0000 COLONEL MICHAEL P. FLEMING, 0000 WILLIAM K LIN, 0000 BRETT A GUIDRY, 0000 COLONEL RALPH R. GRIFFIN, 0000 TAWANNA MCGHEE, 0000 JOHN W HAMMOCK, 0000 COLONEL GREGORY A. HOWARD, 0000 RICHARD RITTER V, 0000 JOHN W HARIADI, 0000 COLONEL ARTHUR V. JEWETT, 0000 JEAN C SENECAL, 0000 KYLE C HARNER, 0000 COLONEL MICHAEL A. KIEFER, 0000 JAMES M SUTTON, 0000 ADAM W HARRIS, 0000 COLONEL THOMAS C. LAWING, 0000 TIMOTHY J SWANSON, 0000 DARREN L HARRIS, 0000 COLONEL JOHN E. LEATHERMAN, 0000 JOHN T THOMPSON, 0000 FREDERICK B HARRIS, 0000 COLONEL HERBERT L. NEWTON, 0000 EDWARD J VANISKY, 0000 DONALD L HELMAN JR., 0000 COLONEL PATRICK M. O’HARA, 0000 BRUCE M WHEELER, 0000 MAXWELL P HENDRIX, 0000 COLONEL DARREN G. OWENS, 0000 RICHARD L WILLIAMS, 0000 JEFFREY V HILL, 0000 COLONEL STEWART A. REEVE, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT CHRIS A HOFLAND, 0000 COLONEL LAWRENCE H. ROSS, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY ROBERT H HOLLAND, 0000 COLONEL TERRY W. SALTSMAN, 0000 MEDICAL CORPS UNDER TITLE 10, U.S.C., SECTIONS 624 SEAN A HOLLONBECK, 0000 COLONEL JOHN E. SAYERS JR., 0000 AND 3064: CONCETTA R HOLLOWAY, 0000 COLONEL THEODORE G. SHUEY JR., 0000 LAURENCE C HOOD, 0000 COLONEL ANTHONY M. STANICH JR., 0000 To be major LYNN L HORVATH, 0000 COLONEL ROBIN C. TIMMONS, 0000 MICHAEL P ABEL, 0000 JAMIA E HOWELL, 0000 COLONEL JODI S. TYMESON, 0000 VICTOR A AGNELLO, 0000 NABEEN HUSSAIN, 0000 COLONEL EDWARD L. WRIGHT, 0000 ELIZABETH G AKAKA, 0000 THOMAS R HUSTEAD, 0000 COLONEL MARK E. ZIRKELBACH, 0000 MICHAEL C ALBRECHT, 0000 CHRISTOPHER L HUTSON, 0000 IN THE AIR FORCE WARREN L ALEXANDER, 0000 CAESAR S INES, 0000 HERMINEE ALEXANIAN, 0000 DANIEL J IRIZARRY, 0000 THE FOLLOWING NAMED OFFICERS FOR A REGULAR RONALD D ALLEN, 0000 JOHNSON ISAAC, 0000 APPOINTMENT IN THE GRADE INDICATED IN THE UNITED JOHN G ALLRED, 0000 WILLIAM L JACKSON, 0000 STATES AIR FORCE UNDER TITLE 10, U. S. C., SECTION 531: CRAIG J AMNOTT, 0000 TYLER M JAMES, 0000 To be colonel JIMIE D ANDERSON, 0000 CHRISTOPHER G JARVIS, 0000 CHRISTOPHER D APPLETON, 0000 JEREMY S JOHNSON, 0000 BUENAVENTURA Q. ALDANA, 0000 MARIA E ARCILA, 0000 JONI J JOHNSON, 0000 EDWARD TAXIN, 0000 EDWARD H BAILEY, 0000 CHRISTOPHER B JONES, 0000 ANDREW W. TICE, 0000 TIMOTHY J BALLING, 0000 JENNIFER E JORGENSEN, 0000 KATHERIN BALTURSHOT, 0000 JAMES W JOSEPH, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT CHRISTINA M BALUM, 0000 VALLIE KAPRELIAN, 0000 TO THE GRADE INDICATED IN THE UNITED STATES AIR DONALD A BALUN, 0000 SANGEETA KAUSHIK, 0000 FORCE UNDER TITLE 10, U.S.C., SECTION 624: BRIAN E BARDEN, 0000 DWIGHT C KELLICUT, 0000 To Be Lieutenant Colonel JEFFREY G BARNES, 0000 DARIN N KENNEDY, 0000 LEE J BARTON, 0000 BRADFORD A KILCLINE, 0000 SUSAN S. BAKER, 0000 STEVEN E BATTLE, 0000 ISAAC K KIM, 0000 CAROLYN M. BELL, 0000 CHRISTOPHER J BENNETT, 0000 JAMES Y KIM, 0000 JOSEPH P. BURGER III, 0000 JOHN A BENSON, 0000 KURT G KINNEY, 0000 DONALD COLE, 0000 JEROME V BENZ JR., 0000 MARY M KLOTE, 0000 CORI A. CULVER, 0000 KENNETH R BERGMAN, 0000 JEFFREY K KLOTZ, 0000 KENNETH R. DARLING, 0000 RICHARD A BICKEL JR., 0000 JONATHAN M KOFF, 0000 ARTHUR R. DAVENPORT JR., 0000 PHILIP J BILLONI, 0000 CHRISTIAN L KOOPMAN, 0000 KATHRYN D. DRAKE, 0000 RACHEL J BISHOP, 0000 CRAIG T KOPECKY, 0000 JOHN L. FLYNN, 0000 WILLIAM B BIVENS, 0000 KURTIS L KOWALSKI, 0000 DAVID W. GARRISON, 0000 ROBERT B BLANKENSHIP, 0000 JAMES G LAMPHEAR, 0000 HENRI T. HAMMOND, 0000 SCOTT C BLEDSOE, 0000 GREGORY T LANG, 0000 RICHARD C. HART, 0000 DENNIS E BLEY, 0000 CHRISTOPHER L LANGE, 0000 LORN W. HEYNE, 0000 JASON A BOARDMAN, 0000 JENNIFER T LANGE, 0000 JOSEPH C. KENNEDY, 0000 JESSE D BOLTON, 0000 DAVID LAW, 0000 KRZYSZTOF KRAS, 0000 GREGORY T BRAMBLETT, 0000 BRENT L LECHNER, 0000 JOHN M. LOPARDI, 0000 STEPHEN A BRASSELL, 0000 JOSEPH Y LEE, 0000 STEVEN S. LOWRY, 0000 LORANEE E BRAUN, 0000 SOOK L LEE, 0000 TROY P. MCGILVRA, 0000 SCOTT E BRIETZKE, 0000 RONALD LEHMAN, 0000 RICHARD A. MCMILLAN, 0000 WILLIAMS Q BRITTON, 0000 ERIC N LEONG, 0000 DONALD T. MOLNAR, 0000 STEPHEN J BUETOW, 0000 WILLIAM D LEUSINK, 0000 CHARLES W. NELSEN, 0000 JOHN M BURBIDGE, 0000 HWEI T LIN, 0000 WILLIAM D. PARKER, 0000 RICHARD O BURNEY, 0000 BRIAN J LOHNES, 0000 MICHELLE N. PELL, 0000 DAVID M BUSHLEY, 0000 DARA D LOWE, 0000

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 9801 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7386 CONGRESSIONAL RECORD — SENATE July 25, 2002 JAMES B LUCAS II, 0000 KIMBERLY A WENNER, 0000 To be lieutenant commander TODD J LUCAS, 0000 KENNETH R WEST, 0000 PEDRO F LUCERO, 0000 CHRISTOPHER E WHITE, 0000 AMADO F ABAYA, 0000 KIMBERLY K LUND, 0000 WENDY J WHITFORD, 0000 JAMES R ACKERMAN II, 0000 SHAWN A MACLEOD, 0000 KIMBERLY L WHITTINGTON, 0000 CHRISTINE N ACTON, 0000 ANDREW D MAGNET, 0000 DONALD K WILLIAMS, 0000 CHRISTOPHER J ADAMS, 0000 JOHN R MAGPANTAY, 0000 JOSEPH A WILLIAMS, 0000 DOUGLAS J ADAMS, 0000 ROBERT F MALSBY III, 0000 JEFFREY L WILSON, 0000 NEAL D AGAMAITE, 0000 GREGORY J MARTIN, 0000 WILLIAM K WONG JR., 0000 GEORGE R AGUILAR, 0000 ROBERT T MATHIS, 0000 BRADLEY K WOODS, 0000 MARIO A AGUILAR, 0000 LARRY J MCCORD, 0000 JUSTIN T WOODSON, 0000 ROBERT W AGUILERA, 0000 RAAP J MCELHINNY, 0000 PHILIP A WOODWORTH, 0000 IVAN L AGUIRRE, 0000 MARK E MCGRANAHAN, 0000 JOHNNIE WRIGHT JR., 0000 ELLER V AIELLO, 0000 IAN K MCLEOD, 0000 GERALD E YORK II, 0000 LEOPOLDO S J ALBEA, 0000 LEAH P MCMANN, 0000 WESLEY G ZEGER, 0000 KRISTINE E ALEXANDER, 0000 MICHAEL A MCMANN, 0000 BRENT A ALFONZO, 0000 IN THE NAVY SEAN K MCVEIGH, 0000 BENJAMIN J ALLBRITTON, 0000 CHRISTOPHER D MEDELLIN, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT JASON C ALLEYNE, 0000 GARY W MENEFEE, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY QUINO P ALONZO JR., 0000 JOHN W MERCER JR., 0000 UNDER TITLE 10, U.S.C., SECTION 624: CHRISTOPHER S AMADOR, 0000 MICHAEL J MINES, 0000 GARY T AMBROSE, 0000 MICHAEL J MOFFATT, 0000 To be captain MICHAEL T AMOS, 0000 SEAN P MONTGOMERY, 0000 KEVIN W ANDERSEN, 0000 STEVEN D. KORNATZ, 0000 DOROTHY K MORGAN, 0000 DAVID R ANDERSON, 0000 JEFFREY S MORGAN, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT EDWARD T ANDERSON, 0000 STEPHEN M MORRIS, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY JAMES A ANDERSON, 0000 JEANNIE M MUIRPADILLA, 0000 UNDER TITLE 10, U.S.C., SECTION 624: MARK E ANDERSON, 0000 SEAN W MULVANEY, 0000 ROBERT W ANDERSON, 0000 MICHAEL E MURPHY, 0000 To be lieutenant commander ERIC J ANDUZE, 0000 MALCOLM G NAPIER, 0000 MARY B. GERASCH, 0000 DAVID R APPEL, 0000 RAJEEV NARAYAN, 0000 CHRISTOPHER E ARCHER, 0000 ROBERT H NELSON, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT MATTHEW L ARNY, 0000 ROMEO NG, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY MARTIN F ARRIOLA, 0000 THERESA M NGUYEN, 0000 UNDER TITLE 10, U.S.C., SECTION 624: GARRETT C ARTZ, 0000 TOM L NGUYEN, 0000 ARLEN E ASPENSON, 0000 NERIS M NIEVESCOLBERG, 0000 To be lieutenant commander MARK R ASUNCION, 0000 ERIK B NUCKOLS, 0000 BARON D. JOLIE, 0000 ROBERTO J ATHA JR., 0000 RONALD P OBERFOELL, 0000 TINA M ATHANS, 0000 SARAH K OKADA, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT CHRISTOPHER J ATKINSON, 0000 SEAN T OMARA, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY KEVIN L AUSTIN, 0000 ROBERT J ORGAN, 0000 UNDER TITLE 10, U.S.C., SECTION 624: ARVIS V I AVERETTE, 0000 SHAWN S OSTERHOLT, 0000 To be lieutenant commander ROBERT L BAHR, 0000 ELIZABETH A OTTNEY, 0000 EUGENE R BAILEY, 0000 ROBERT H OVERBAUGH, 0000 TODD A. MASTERS, 0000 ANTHONY P BAKER, 0000 KAREN L PALMER, 0000 BOBBY J BAKER, 0000 SOHYUN C PARK, 0000 To be lieutenant commander BRETT T BAKER, 0000 MICHAEL E PARKER, 0000 PERRY W. SUTER, 0000 CHAD E BAKER, 0000 TARAK H PATEL, 0000 JEFFREY W BAKER, 0000 CHARLES L PEDERSON, 0000 THE FOLLOWING NAMED OFFICERS FOR TEMPORARY THOMAS R BAKER, 0000 ANA E PERALTA, 0000 APPOINTMENT TO THE GRADE INDICATED IN THE THOMAS A BALCH, 0000 JEREMY G PERKINS, 0000 UNITED STATES NAVY UNDER TITLE 10, U.S.C., SECTION JOHN A BALTES, 0000 JEROME V PONDER, 0000 5721: ROBERT J BANASIEWICZ, 0000 JENNIFER POTTER, 0000 To be lieutenant commander THOMAS D BARBER, 0000 DAVID N PRESSMAN, 0000 CHARLES E BARE II, 0000 JOSEPH PUSKAR, 0000 WILLIAM L ABBOTT, 0000 BUFORD D BARKER, 0000 DAVID M QUINN, 0000 SCOTT B CURTIS, 0000 JOSEPH W BARNES, 0000 GAURI RADKAR V, 0000 TODD A FIGANBAUM, 0000 TIMOTHY A BARNEY, 0000 BRADEN R RANCE, 0000 ANDREW G GRANT, 0000 JONATHAN B BARON, 0000 MATTHEW S RICE, 0000 WILLIAM A HALE, 0000 WILLIAM A BARTLE, 0000 THOMAS J RICHARD, 0000 JOEL HARVEY, 0000 JAMES L BASFORD, 0000 SUSAN M ROBINSON, 0000 JAMES H HUMPHREY, 0000 SHANNON S BASSI, 0000 STEVEN W ROBISON, 0000 MICHAEL E HUTCHENS, 0000 KENNETH R BATES, 0000 FALCON W RODRIGUEZ, 0000 FRANK J KORFIAS, 0000 DANIEL V BAXTER, 0000 JORGE L ROMEU, 0000 THOMAS P MONINGER, 0000 JOSEPH M BAXTER, 0000 INGER L ROSNER, 0000 MARTIN J MUCKIAN, 0000 JAMES R BEASLEY, 0000 ROBERT RUSSELL, 0000 CHRISTOPHER A NERAD, 0000 ANDREW E BECKER, 0000 GAYLE B RYAN, 0000 BENJAMIN R NICHOLSON, 0000 CURTIS A BECKER JR., 0000 MEG E RYAN, 0000 ROBERT D SANDERS, 0000 BRIAN R BEHLKE, 0000 DAVID S SACHAR, 0000 DAVID E SMITH, 0000 RODNEY T BEHREND, 0000 SCOTT A SALMON, 0000 RAYMOND C SPEARS, 0000 JAMES W BELL, 0000 CHRISTOPHER K SANBORN, 0000 HENRY P STEWART, 0000 SCOTT A BELL, 0000 DON J SARMIENTO, 0000 LAUREN L TROYAN, 0000 DOUGLAS S BELVIN, 0000 TIMOTHY M SASALA, 0000 JOHN M WENKE JR., 0000 JAMES A BELZ, 0000 STEVEN A SAWYER, 0000 DONALD E WYATT, 0000 JEFFREY A BENSON, 0000 ANTHONY SCHULTZ, 0000 ANDREW R BENZ, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT DEAN A SEEHUSEN, 0000 BUDD E BERGLOFF, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY ERNEST C SEVERN, 0000 PAUL J BERNARD, 0000 UNDER TITLE 10, U.S.C., SECTION 624: RICHARD A SEXTON, 0000 JEFFREY A BERNHARD, 0000 ANDREW J SHAPIRO, 0000 To be lieutenant commander PETER R BERNING, 0000 DAVID J SHAW, 0000 JAMES M BILOTTA, 0000 ERIK J SHELSTAD, 0000 VANESSA P AMBERS, 0000 ANDREW T BISHOP, 0000 PAULA J SHEPHERD, 0000 JOHN D BANDY, 0000 TANIA M BISHOP, 0000 JOSEPH E BRENNAN, 0000 SEAN M SHOCKEY, 0000 KEVIN T BLACK, 0000 JAMES L CAROLAND, 0000 RENEE M SIEGMANN, 0000 MICHAEL F BLACK, 0000 MICHAEL S COONEY, 0000 CASTANEDA A SIEROCKA, 0000 MICHAEL S BOBULINSKI, 0000 SAMMY CUEVAS, 0000 LINDA G SLAYTON, 0000 JOSEPH W BOCHENEK, 0000 MARIA E DESANDRE, 0000 BRYAN C SLEIGH, 0000 SCOTT A BOEDEKER, 0000 GREGORY L DIXON, 0000 JOHNNY D SMITH, 0000 MATTHEW D BOHLIN, 0000 JOSEPH E DUPRE, 0000 JONATHAN K SMITH, 0000 DELONG BONNER, 0000 ROB E ENDERLIN, 0000 KAREN E SMITH, 0000 MATTHEW J BONNER, 0000 SHELLY V FRANK, 0000 RICHARD R SMITH, 0000 SCOTT P BONZ, 0000 BRYANT L FRAZIER, 0000 PATRICK J SNOWMAN, 0000 JOHN S GALIPEAU, 0000 JOHN D BOONE, 0000 TAIIL T SONG, 0000 PETER GIANGRASSO, 0000 MICHAEL J BOONE, 0000 RONALD J STUKEY, 0000 MELVIN P GORDON, 0000 NATHAN P BORCHERS, 0000 LANCE E SULLENBERGER, 0000 JOSHUA C HANSEN, 0000 JAMES P M BORGHARDT, 0000 NAOMI R SULLIVAN, 0000 LINDA M HATCHER, 0000 KELLY K BORING, 0000 DANIELLE C SUYKERBUYK, 0000 STEPHEN M HEINSINGER, 0000 JEFFREY S BOROS, 0000 ROBERT A SUYKERBUYK, 0000 CHRISTOPHER E HOWSE, 0000 CATHERINE S BOULWARE, 0000 COSIMA C SWINTAK, 0000 SHAWN W MCGINNIS, 0000 BRIAN J BOUTOT, 0000 HUNTER E SWITZER, 0000 STUART R MCKENNA, 0000 MATTHEW R BOWMAN, 0000 TIMOTHY S TALBOT, 0000 CHERYL A MUIRHEAD, 0000 COLIN A BOWSER, 0000 OVERPECK T TENEWITZ, 0000 WILLIAM S MYERS, 0000 DIMITRI C BOYACI, 0000 BRIGILDA C TENEZA, 0000 DAVID I ODOM, 0000 LESLIE W BOYER III, 0000 SEAN F THOMAS, 0000 BOSWYCK D OFFORD, 0000 KEVIN P BOYKIN, 0000 JOHN E THORDSEN JR., 0000 SONJA M PERRY, 0000 JAMES G BOYLAND, 0000 MARIA D THORDSENVELEZ, 0000 MICHAEL RIGGINS, 0000 JOSEPH P BOZZELLI, 0000 LEROY J TROMBETTA, 0000 PAMELA R RUSSELL, 0000 GREGORY M BRADLEY, 0000 JOSEPH C TURBYVILLE, 0000 CHRISTOPHER P SLATTERY, 0000 ABABETH M BRAMAN, 0000 BRADLEY S VANDERVEEN, 0000 ABRAHAM A THOMPSON, 0000 KEVIN M BRAND, 0000 RODNEY A VILLANUEVA, 0000 RICHARD L WATERS, 0000 MICHAEL S BRAUN, 0000 GEORGE VONHILSHEIMER, 0000 ROBERT E WHITE II, 0000 NEIL M BRENNAN, 0000 JEFFREY A VOS, 0000 CHRISTOPHER J WILLIAMS, 0000 DAVID A BRETZ, 0000 PHILIP M WAALKES, 0000 DOUGLAS M ZANDER, 0000 PETER J BREWSTER, 0000 KIRK H WAIBEL, 0000 ANTHONY R BREYER, 0000 JACQUELINE A WARDGAINES, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT GEORGE D BRICKHOUSE III, 0000 CHRISTOPHER L WATHIER, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY BRADEN O BRILLER, 0000 EMERY S WEAVER, 0000 UNDER TITLE 10, U.S.C., SECTION 624: JENKS D BRITT, 0000

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 9801 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7387

JESSE L BRITTAIN, 0000 STEVEN H DEMOSS, 0000 KYLE P GORDY, 0000 LARON B BROADNAX, 0000 HOMER R DENIUS III, 0000 TUAN A GORMICAN, 0000 ROBERT D BRODIE, 0000 ROBERT DENTON III, 0000 MICHAEL J GRABOWSKI, 0000 AARON G BRODSKY, 0000 TERENCE P DERMODY, 0000 GREGORY L GRADY, 0000 BRIAN B BRONK, 0000 STEVEN F DESANTIS, 0000 MATTHEW M GRAHAM, 0000 DAVID L BROOKS, 0000 STANLEY J DESLICH, 0000 ANDREW G GRANT, 0000 CHARLES W BROWN IV, 0000 RALPH F DEWALT II, 0000 WAYNE G GRASDOCK, 0000 CHRISTOPHER K BROWN, 0000 MICHAEL D DEWULF, 0000 CHARLES R GRASSI, 0000 COREY L BROWN, 0000 BRIEN W DICKSON, 0000 MARIA L GRAUERHOLZ, 0000 JAMES E BROWN, 0000 MICHAEL R DICKSON, 0000 HOWARD C GRAY, 0000 CHADWICK B BRYANT, 0000 CHRISTOPHER S DIGNAN, 0000 DANIEL E GREENE, 0000 WILLIAM A BUCKNER, 0000 RODRIGO M DILL, 0000 JASON P GREENE, 0000 ROSS S BUDGE, 0000 PHILLIP S DOBBS, 0000 DARRELL S GREGG, 0000 NICHOLIE T BUFKIN, 0000 SHAWN C DOMINGUEZ, 0000 JOHN D GREMILLION, 0000 DWAYNE E BURBRIDGE, 0000 PETER J DONAHER III, 0000 ERIK W GREVE, 0000 MARK E BURCHER, 0000 MARK M DONAHUE, 0000 MARK D GROB, 0000 MICHAEL L BURD, 0000 ELLIOTT J DONALD, 0000 DAVID E GROGAN, 0000 ROBERT C BURDEAUX, 0000 LEE A DONALDSON, 0000 EDWIN J GROHE JR., 0000 COLVERT P BURGOS, 0000 DENISE M DONNELL, 0000 TIMOTHY S GUDUKAS, 0000 MICHAEL J BURIANEK, 0000 BRAD P DONNELLY, 0000 WAYNE D GUNTHER, 0000 THEODORE M BURK, 0000 JOHN W DOOLITTLE, 0000 GENE M GUTTROMSON, 0000 BRIAN J BURKE, 0000 THOMAS C DORAN, 0000 THOMAS D HACKER, 0000 VORRICE J BURKS, 0000 LAWRENCE T DORN, 0000 FERDINAND G HAFNER, 0000 JASON A BURNS, 0000 RANDY A DOSSEY, 0000 ORLOFF L R HAGENDORF, 0000 MATTHEW J BURNS, 0000 BRIAN P DOUGLASS, 0000 GREGORY C HAIRSTON, 0000 GREGORY D BYERS, 0000 DAVID M DOWLER, 0000 WILLIAM E HAMILTON, 0000 JOSEPH M BYRD, 0000 GEORGE B DOYON JR., 0000 JASON G HAMMOND, 0000 KEVIN P BYRNE, 0000 BRIAN C DOZIER, 0000 TIMOTHY J HANLEY, 0000 MARCELLO D CACERES, 0000 JEFFREY J DRAEGER, 0000 PATRICK D HANRAHAN, 0000 JOSEPH F CAHILL III, 0000 MARC E DROBNY, 0000 GERALD J HANSEN JR., 0000 MARK A CALDERON, 0000 RICHARD F DUBNANSKY JR., 0000 KEVIN K HANSON, 0000 DANIEL W CALDWELL, 0000 TODD C DUDLEY, 0000 DOUGLAS A HARBOLD, 0000 PAUL F CAMPAGNA, 0000 JUSTIN E DUGGER, 0000 CHRISTOPHER G HARDING, 0000 KYLE R CAMPBELL, 0000 CHRISTIAN A DUNBAR, 0000 JENNIFER L HARDING, 0000 RONNIE M CANDILORO, 0000 CURTIS B DUNCAN, 0000 MICHAEL D HARDWICK, 0000 JOHN E CAPIZZI, 0000 BRYAN W DURKEE, 0000 BRANDAN D HARRIS, 0000 MARC G CARLSON, 0000 KEVIN L DUZAN, 0000 GALEN R HARTMAN, 0000 ARON S CARMAN, 0000 CLINTON S EANES, 0000 JASPER C HARTSFIELD, 0000 JOSEPH A CARNELL, 0000 MICHAEL G EARL, 0000 JOEL HARVEY, 0000 GREGORY P CARO, 0000 DOUGLAS E EDGE, 0000 MONTY L HASENBANK, 0000 JOHN G CARPENTIER, 0000 JEFFREY W EGGERS, 0000 VERNON HASTEN, 0000 JOSEPH CARRIGAN, 0000 ANDREW C EHLERS, 0000 PAUL F HASTIE, 0000 CHRISTOPHER S CARROLL, 0000 KEITH D EITNER, 0000 MICHAEL E HAYES, 0000 DANIEL G CASE, 0000 NATHAN J ELDER, 0000 GREGORY T HAYNES, 0000 ROBERT A CASPER JR., 0000 JAMES J ELIAS, 0000 ALBON O HEAD III, 0000 CHRISTOPHER J CASSIDY, 0000 MATTHEW S ELLIA, 0000 KEVIN P HEALY, 0000 CLINTON J CATES, 0000 JENNIFER L ELLINGER, 0000 BRYN J HENDERSON JR., 0000 SEAN P CAVAN, 0000 CARLTON T ELLIOTT, 0000 SCOTT A HENDRIX, 0000 CHRISTOPHER J CAVANAUGH, 0000 MICHAEL ELLIOTT, 0000 DARRYL W HENSLEY, 0000 THOMAS C CECIL, 0000 TONY L ELLIS, 0000 SCOTT M HIELEN, 0000 PETER J CECILIA JR., 0000 WILLIAM R ELLIS JR., 0000 SEAN P HIGGINS, 0000 JONATHAN L CHADWICK, 0000 II T S ELLISON, 0000 ROBIN L HIGGS, 0000 JOHN L CHAPLA, 0000 PHILIP L ENGLE JR., 0000 STEPHEN F HIGUERA, 0000 GREGORY F CHAPMAN, 0000 JOSHUA G ENGLISH, 0000 CLAYTON O HILL, 0000 STEPHEN C CHAPMAN, 0000 BRIAN ERICKSON, 0000 CRAIG A HILL, 0000 STEPHEN P CHEELEY, 0000 DAVID G ERICKSON, 0000 JEREMY R HILL, 0000 CHI K CHEUNG, 0000 GREGORY J ERICKSON, 0000 ROBERT A HILL, 0000 JEFFREY A CHILDERS, 0000 ERIK J ESLICH, 0000 ALLEN L HOBBS, 0000 JOHN S CHRISTENSEN, 0000 DANILO A ESPIRITU, 0000 BERTRAM C HODGE, 0000 RYAN G CHRISTOPHERSON, 0000 KEVIN W EVANS, 0000 TODD A HOFSTEDT, 0000 BRYANT T CHURCH, 0000 THOMAS E EWING, 0000 AARON M HOLDAWAY, 0000 CARLOS J CINTRON, 0000 DOUGLAS A FACTOR, 0000 MARK D HOLMES, 0000 CHRISTOPHER J CIZEK, 0000 DANIEL S FAHEY, 0000 MARK F HOLZRICHTER, 0000 JEFFREY J CLARKSON, 0000 JEFFREY N FARAH, 0000 PATRICK C HONECK, 0000 PHILLIP Z CLAY, 0000 MICHAEL G FARREN, 0000 DALE C HOOVER, 0000 DUNCAN M CLENDENIN, 0000 STEPHEN T FAUST, 0000 DAVID HOPPER, 0000 GWEN D G CLIFFORD, 0000 ROBERT K FEDERAL III, 0000 MONROE M HOWELL II, 0000 BRYAN M COCHRAN, 0000 BRIAN M FERGUSON, 0000 CORY R HOWES, 0000 LANCE A COLLIER, 0000 JOHN H FERGUSON, 0000 JOHN L HOWLAND, 0000 CHRISTOPHER I COLLING, 0000 KENNETH L FERGUSON, 0000 MICHAEL M H HSU, 0000 MATTHEW B COMMERFORD, 0000 BRYAN J FETTER, 0000 GREGORY W HUBBARD, 0000 CHARLES P CONE, 0000 LESLEY J FIERST, 0000 MARC A HUDSON, 0000 MICHAEL P CONNOR, 0000 MATTHEW D FINNEY, 0000 ANTONIO D HULL, 0000 ERIC L CONZEN, 0000 FULVIA M FIORANI, 0000 JAMES H HUMPHREY, 0000 TIMOTHY M COOPER, 0000 NICHOLAS J FIORE, 0000 KELLY S HURST, 0000 PETER A CORRAO JR., 0000 STEPHEN B FIRESTONE, 0000 MARK C HUSTIS, 0000 RICKY R COSTNER, 0000 THOMAS J FLANNERY, 0000 CRAIG D HUTCHINSON, 0000 GREGORY B COTTEN, 0000 MICHAEL T FLEETWOOD, 0000 JOSEPH A HUTCHINSON, 0000 FREDERICK D COTTS, 0000 JACK C FLETCHER II, 0000 MATTHEW P HYDE, 0000 ROBERT COUGHLIN, 0000 JORGE R FLORES, 0000 ROBERT H HYDE, 0000 SHAWN R COWAN, 0000 IDELLA R FOLGATE, 0000 DANIEL D IMBAT, 0000 WILLIAM T COX JR., 0000 JOSEPH C FORAKER III, 0000 MARK A IMBLUM, 0000 RAYMOND T COZINE, 0000 DARYL D FOSTER, 0000 JOSEPH P IRETON JR., 0000 JOHN S CRANSTON, 0000 MICHAEL A FOX, 0000 CHRISTOPHER C ISBELL, 0000 FREDERICK E CRECELIUS, 0000 RONALD A FOY, 0000 JONATHAN L JACKSON, 0000 RONALD L CREEL, 0000 RAY A FRANKLIN II, 0000 STEPHEN J JACKSON, 0000 MICHAEL C CRISP, 0000 MICHAEL G FRANTZ, 0000 TIMOTHY C JACKSON, 0000 ROBERT D CROXSON, 0000 FRANK R FULLER, 0000 BRADLEY D JACOBS, 0000 PAUL A CRUMP, 0000 WARDELL C FULLER, 0000 GERALD D JACQUES, 0000 ADAN G CRUZ, 0000 BRETT T FULLERTON, 0000 DAVID C JAMES, 0000 YNIOL A CRUZ, 0000 GEORGE G FUTCH, 0000 OMAR E JANA, 0000 KRISTEN W CULLER, 0000 DAVID O GADDIS, 0000 THOMAS J JANKOWSKI, 0000 CORY L CULVER, 0000 GREGORY J GAHLINGER, 0000 JOEL W JANOPOULOS, 0000 PATRICK J CUMMINGS, 0000 ANDREW D GAINER, 0000 BYRON W JENKINS, 0000 WILSON J CURRENT, 0000 MICHAEL P GALLAGHER, 0000 JOHN D JESSUP II, 0000 TIMOTHY S CURRY, 0000 TIMOTHY J GALLAGHER, 0000 WILLIAM H JEWETT III, 0000 SCOTT B CURTIS, 0000 DAVID M GALLOWAY, 0000 DAVID E JOHNSON, 0000 SEAN T CUSHING, 0000 FERNANDO GARCIA, 0000 DAVID R JOHNSON, 0000 PETER M CUTSUMBIS, 0000 KARL GARCIA, 0000 ERIC R JOHNSON, 0000 SARAH A DACHOS, 0000 ERIC J GARDNER, 0000 HIRAM S JOHNSON, 0000 WILLIAM R DALY, 0000 JOSHUA H GATES, 0000 MARK E JOHNSON, 0000 MICHAEL J DAMICO, 0000 JOHN A GEARHART, 0000 MICHAEL B JOHNSON, 0000 RODNEY D DANIELS, 0000 JAMES L GEICK, 0000 MICHAEL D JOHNSON, 0000 ANDREW D DANKO, 0000 DANIEL GEIGER, 0000 STEVIN S JOHNSON, 0000 JOHN C DANKS, 0000 MARC A GENUALDI, 0000 VINCENT R JOHNSON, 0000 WILLIAM A DAROSA, 0000 MELISSA J GERACE, 0000 WILLIAM D JOHNSTON, 0000 TODD J DARWIN, 0000 JOHN D GERKEN, 0000 ETTA C JONES, 0000 JACE F DASENBROCK, 0000 JEFFREY T GIBBONS, 0000 JEFFREY E JONES, 0000 GEORGE A DAVIS, 0000 LEANA R GILLI, 0000 THOMAS C KAIT JR., 0000 GREGORY P DAVIS, 0000 DENNIS T GINN, 0000 WLANCE KALLEBERG, 0000 STEPHEN C DAVIS, 0000 DAVID A GIVEY, 0000 SCOTT C KANE, 0000 DAVID C DAYS, 0000 DARREN W GLASER, 0000 WILLIAM R KANE, 0000 DENNIS A DEBOBES, 0000 GEORGE F GLAZE III, 0000 RONALD J KARUN JR., 0000 ANTONIO DEFRIAS JR., 0000 ANTHONY S GLOVER, 0000 TAMARA L KARWOSKI, 0000 DANIEL M DEGNER, 0000 BENNETT R GLOVER, 0000 KRISTOPHER M KASCHAK, 0000 STEPHEN J DELANTY, 0000 FREDERIC C GOLDHAMMER, 0000 PHILIP J KASE, 0000 DINO S DELEO, 0000 ISSAC GONZALEZ, 0000 DANIEL J KECK, 0000

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00065 Fmt 4624 Sfmt 9801 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7388 CONGRESSIONAL RECORD — SENATE July 25, 2002

MARK W KEKEISEN, 0000 CHRISTOPER T MARTIN, 0000 MATTHEW C PARADISE, 0000 STEPHEN A KELLEY, 0000 VINCENT S MARTIN, 0000 CORINNE R PARKER, 0000 RICHARD M KELLY, 0000 TODD R MARZANO, 0000 JAMES B PARKERSON, 0000 GLENN D KELSO, 0000 MARK A MARZONIE, 0000 KEVIN J PARKS, 0000 MARK T KELSO, 0000 MATTHEW J MASON, 0000 ERIK R PATTON, 0000 MARK P KEMPF, 0000 RICHARD N MASSIE, 0000 THOMAS C PAUDLER, 0000 COREY J KENISTON, 0000 ANTHONY P MASSLOFSKY, 0000 RICHARD H PAYNE, 0000 JOHN D KENNARD, 0000 STEVEN J MATHEWS, 0000 DONALD E PEACOCK II, 0000 MATTHEW J KENNEDY, 0000 STUART M MATTFIELD, 0000 GREGORY P PEDERSON, 0000 PHILLIP A KENT, 0000 THOMAS L MATTOX, 0000 JIMMY W PELTON, 0000 ROBERT R KENYON, 0000 JAY A MATZKO, 0000 MARK C PERREAULT, 0000 GREGORY R KERCHER, 0000 TODD A MAUERHAN, 0000 SIL A PERRELLA, 0000 CALEB A KERR, 0000 SHAUN C MCANDREW, 0000 BRADLEY S PERRIN, 0000 DAVID S KERSEY, 0000 JAMES A MCCALL III, 0000 JOHN E PERRONE, 0000 TIMOTHY N KETTER, 0000 WILLIAM D MCCARTHY, 0000 DAVID R PERRY, 0000 LISA L KETTERMAN, 0000 ERIC D MCCARTY, 0000 GEORGE M PERRY, 0000 PAUL R KEYES, 0000 ROBERT A MCCORMICK JR., 0000 VINCENT J PERRY, 0000 MICHAEL M KIBLER, 0000 ARNOLD S MCCOY, 0000 KENT E PETERSON, 0000 MARTIN P KIESEL, 0000 LARRY G MCCULLEN, 0000 WILLIAM A PETERSON, 0000 JENNIFER A KIGGANS, 0000 RICHARD C MCDANIEL, 0000 ROBERT A PETRICK, 0000 STEVEN W KIGGANS, 0000 SEAN P MCDERMOTT, 0000 TODD O PETTIBON, 0000 ANDREW J KIMSEY, 0000 ANDREW J MCFARLAND, 0000 JAMES B PFEIFFER, 0000 JEFFERY T KING, 0000 KATHERINE L MCGILL, 0000 DOUGLAS M PHELAN, 0000 KEITH R KINTZLEY, 0000 CHRISTOPHER F MCHUGH, 0000 JOHN B PICCO, 0000 CHRISTOPHER J KIPP, 0000 JAMES S MCJOYNT, 0000 DUSTINE PIERSON, 0000 BRIAN D KIRK, 0000 JOHN M MCKEON JR., 0000 JASON L PIKE, 0000 ANDREW A KISS, 0000 KEVIN M MCLAUGHLIN, 0000 JAMES M PIOTROWSKI, 0000 JEFFREY M KLAMERUS, 0000 COLIN M MCLEAN, 0000 THOMAS E PLOTT II, 0000 DENNIS J KLEIN, 0000 BOBBY D MCPHERSON II, 0000 MICHAEL J PLOWMAN, 0000 KEVIN J KLEIN, 0000 GREGORY E MCRAE, 0000 DARREN R POORE, 0000 DAVID W KLIEMANN, 0000 BRYAN S MCROBERTS, 0000 JOHN R POPE, 0000 MITCHEL J KLOEWER, 0000 MICHAEL T MCVAY, 0000 MICHAEL A PORTER, 0000 GREGORY D KNEPPER, 0000 JOHN J MEAGHER, 0000 MATTHEW R POTHIER, 0000 CARY M KNOX, 0000 NICHOLAS J MELFI III, 0000 STEVEN N POTOCHNIAK, 0000 KIRK A KNOX, 0000 WILLIAM R MELLEN, 0000 GERALD R PRENDERGAST, 0000 ANDREW P KOELSCH, 0000 MARK A MELSON, 0000 CHRISTOPHER A PRESZ, 0000 MICHAEL J KOEN, 0000 JOHN P MERLI, 0000 JOB W PRICE, 0000 RICHARD W KOENIG, 0000 CHARLES S MERRILL IV, 0000 JOSHUA D PRICE, 0000 BRYAN W KOON, 0000 ROGER E MEYER, 0000 KARL F PRIGGE, 0000 ROBERT A KOONCE, 0000 JAMES E MILLER, 0000 THEODORE A PRINCE, 0000 KARL W KOTTKE, 0000 JEFFREY A MILLER, 0000 WILLIAM C PUGH, 0000 PHILIP J KOTWICK, 0000 DENNIS I MILLS, 0000 MICHAEL G QUAN, 0000 SCOTT H KRAFT, 0000 PETER A MILNES, 0000 KEVIN M QUARDERER, 0000 JEFFREY K KRAUSE JR., 0000 KENNETH MILVID JR., 0000 VICTORIA L QUINN, 0000 JAMES W KUEHL, 0000 LUIS E MOLINA, 0000 KENNETH N RADFORD, 0000 PATRICK E KULAKOWSKI, 0000 JOHN J MOLINARI, 0000 KEVIN S RAFFERTY, 0000 DOUGLAS W KUNZMAN, 0000 KURT A MONDLAK, 0000 ANDRE L RAGIN, 0000 ARMEN H KURDIAN, 0000 THOMAS P MONINGER, 0000 ROLANDO RAMIREZ, 0000 MATTHEW A LABONTE, 0000 CHRISTOPHER T MONROE, 0000 PAUL E RASMUSSEN, 0000 THOMAS P LABOR, 0000 BENNETT N MONTERO, 0000 WERNER J RAUCHENSTEIN, 0000 JON P R LABRUZZO, 0000 DAVID J MONTGOMERY II, 0000 JAMES G REA, 0000 KEVIN R LACKIE, 0000 JOHN F MONTGOMERY, 0000 STEPHEN E READY, 0000 ROBERT T LACY, 0000 RICHARD S MONTGOMERY, 0000 MICHAEL J REAGAN, 0000 ANDREW D LAMORIE, 0000 JAMES E MOONIER III, 0000 TOBY E REAM, 0000 HANS P LANDEFELD, 0000 KENT W MOORE, 0000 CHAD B REED, 0000 GEORGE M LANDIS III, 0000 MARC H MOORE, 0000 JEFFREY R REGISTER, 0000 PATRICK S LANEY, 0000 CHRISTOPHER L MOOREHEAD, 0000 JOHN K REILLEY, 0000 CHAD M LARGES, 0000 BRETT J MORASH, 0000 PAUL M REIS, 0000 CRAIG R LARSON, 0000 DENNIS D J MOREK, 0000 CRAIG M REMALY, 0000 WILLIAM M LAUPER, 0000 EDGARDO A MORENO, 0000 JEFFREY S REUTER, 0000 WILLIAM T LAYTON, 0000 CHARLES D MORGAN JR., 0000 MANUEL REYES, 0000 MARK S LEAVITT, 0000 WALTER S MORGAN, 0000 MARK C REYES, 0000 SCOTT H LEDIG, 0000 DANIEL MORITSCH, 0000 JOSHUA S REYHER, 0000 FITZHUGH S LEE, 0000 MATTHEW G MORRIS, 0000 JAMES P REYNOLDS, 0000 HEATHER B LEE, 0000 DONALD E MORROW, 0000 LORN D REYNOLDS, 0000 STEVEN S LEE, 0000 BRANDT A MOSLENER, 0000 PATRICK L REYNOLDS, 0000 JERRY W LEGERE, 0000 JOEL E MOSS, 0000 ALBERT E RICE, 0000 CHRISTOPHER L LEGRAND, 0000 NATHAN J MOYER, 0000 THOMAS D RICH, 0000 PATRICK R LEHMAN, 0000 BRETT D MOYES, 0000 JUSTIN B RICHARDS, 0000 JOHN R LESKOVICH, 0000 TEDD N MUERY, 0000 DAVID B RICHARDSON, 0000 CHRIS W LEWIS, 0000 THOMAS H MULDROW JR., 0000 JASON L RIDER, 0000 JAMES G LEWIS, 0000 JEFFREY D MULKEY, 0000 RICHARD C RIGGS, 0000 SEAN M LEYDEN, 0000 MICHAEL MULLEN, 0000 STEVEN C ROBERTO JR., 0000 MICHAEL LIBERATORE, 0000 KURT W MULLER, 0000 BUCKY J ROBERTS, 0000 CARL M LIBERMAN, 0000 MICHAEL D MULLOY, 0000 MATTHEW C ROBERTS, 0000 DARYL W LIERMAN, 0000 SCOTT T MULVEHILL, 0000 MATTHEW P ROBERTS, 0000 ROBERT W LINDER, 0000 STEVEN P MURLEY, 0000 DANIEL S ROBERTSON JR., 0000 ERIC C LINDFORS, 0000 CHARLES G MURPHY, 0000 DENNIS A ROBERTSON, 0000 ROBERT J LINEBARGER, 0000 THOMAS P MURPHY, 0000 MICHAEL P ROBERTSON, 0000 HOWARD B LINK JR., 0000 JAMES M MUSE, 0000 MICHAEL P ROBLES, 0000 JEFFREY G LINVILLE, 0000 JERRY L MYERS JR., 0000 DAVID G ROCKWELL, 0000 STEVEN C LIPPINCOTT, 0000 MICHAEL J NADEAU, 0000 MARC D RODRIGUEZ, 0000 JONATHAN D LIPPS, 0000 VAL D NAFTALI, 0000 ERICH P ROETZ, 0000 DOUGLAS W LITO, 0000 WYATT J NASH, 0000 VICTOR M ROMAN JR., 0000 KIRK J LOFTUS, 0000 STEVEN T NASSAU, 0000 ROBERT J ROSALES, 0000 ROBERT M LOHMAN JR., 0000 ANDREW C NELSON, 0000 HOLLY A ROSENBERG, 0000 CHARLES E LOISELLE, 0000 JACOB A NELSON, 0000 DAVID R ROSETTER, 0000 KEVIN D LONG, 0000 JOSEPH W NELSON, 0000 REY R ROSS, 0000 TIFFANY L LORD, 0000 MARK B NELSON, 0000 RICHARD K ROSSETTI, 0000 THOMAS D LOUWERS, 0000 LAWRENCE J NEVEL, 0000 KENNETH S ROTHAERMEL, 0000 ROY LOVE, 0000 GREGORY D NEWKIRK, 0000 DAVID M ROWLAND, 0000 JAMES P LOWELL, 0000 JOSHUA G NEWSTEDER, 0000 MICHAEL R ROYLE, 0000 RODGER D LOWER, 0000 BENJAMIN R NICHOLSON, 0000 JONATHAN E RUCKER, 0000 MICHAEL D LOWRY, 0000 JEREMY C NIKEL, 0000 JOHN C RUDELLA, 0000 MICHAEL E LOWRY, 0000 ERIK R NILSSON, 0000 ANDREW M RUIZ, 0000 JAMES J LUCAS, 0000 JEFFREY J NOLAN, 0000 ROME RUIZ, 0000 JEFFREY R LUCE, 0000 FRANCIS P NOTZ, 0000 BRET A RUSSELL, 0000 LANCE J LUKSIK, 0000 JAMES P NUNN, 0000 JONATHAN C RUSSELL, 0000 STEVEN J LUND, 0000 JOSEPH R OBRIEN, 0000 DANIEL K RYAN JR., 0000 RICHARD P MACCABE, 0000 DONALD C ODEN, 0000 DANIELLE A RYAN, 0000 JONATHAN D MACDONALD, 0000 KEVIN H ODLUM, 0000 DOUGLAS A SAARELA, 0000 GERALD J MACENAS II, 0000 WAYNE D OETINGER, 0000 GREGORY A SAKRYD, 0000 LLOYD B MACK, 0000 NATHAN R OGLE, 0000 MICHAEL S SALING, 0000 JOSEPH R MACKAY, 0000 NORA C OHARA, 0000 WESLEY S SANDERS, 0000 IAN A MACKINNON, 0000 DAVIN J OHORA, 0000 DAVID M SANFIELD, 0000 MICHAEL D MACNICHOLL, 0000 JOHN W OLIVER JR., 0000 THOMAS M SANTOMAURO, 0000 CHRISTOPHER D MAJORS, 0000 LAWRENCE D OLLICE JR., 0000 DOUGLAS W SASSE III, 0000 RAMON A MALDONADO, 0000 BRIAN J OLSWOLD, 0000 DAVID C SASSER, 0000 PHILIP E MALONE, 0000 DANIEL P ONEAL, 0000 SAMANTHA J SAXTON, 0000 MICHAEL R MANSISIDOR, 0000 CHRISTOPHER D ORR, 0000 MICHAEL D SCHAFER, 0000 NORMAN E MAPLE, 0000 ALEJANDRO E ORTIZ, 0000 DAVID J SCHLESINGER, 0000 RAYMOND MARCIANO II, 0000 ERIK W OSTROM, 0000 KEVIN J SCHMIDT, 0000 MARK L MARINAC, 0000 GREGORY A OUELLETTE, 0000 ROBERT D SCHOEFFLING, 0000 JON C MARLAR, 0000 ALFRED J OWINGS II, 0000 MARK A SCHRAM, 0000 MICHAEL H MARRINAN, 0000 BRAULIO PAIZ, 0000 KORY L SCHROEDER, 0000 CHRISTOPHER D MARSH, 0000 TERRELL K PANKHURST, 0000 JOHN P SCHULTZ, 0000 FRANKLIN K MARSTON, 0000 CAREY M PANTLING, 0000 KARL U SCHULTZ, 0000

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00066 Fmt 4624 Sfmt 9801 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 25, 2002 CONGRESSIONAL RECORD — SENATE S7389

PATRICK B SCOTT, 0000 MATTHEW A TESTERMAN, 0000 MICHAEL S WOSJE, 0000 RICHARD I SCRITCHFIELD, 0000 JOSEPH C THOMAS, 0000 GEORGE C WRIGHT, 0000 FRANK A SCRIVENER III, 0000 PATRICK W THOMPSON, 0000 WALTER C WRYE IV, 0000 JEFFREY L SCUDDER, 0000 ROBERT S THOMPSON, 0000 DONALD E WYATT, 0000 DAVID C SEARS, 0000 WILLARD L THOMPSON, 0000 TERRI A YACKLE, 0000 HIPOLITO D SEBASTIAN, 0000 COURTNEY L TIERNEY, 0000 MICHAEL J YAGER, 0000 MATTHEW T SECREST, 0000 JOHN A TIERNEY, 0000 MELVIN K YOKOYAMA, 0000 ERIC O SEIB, 0000 NICHOLAS R TILBROOK, 0000 LAURENCE M YOUNG, 0000 MARK R SEIGH, 0000 KELLY M TIN, 0000 PAUL D YOUNG, 0000 DAVID G SELANDER, 0000 JEFFREY S TODD, 0000 PHILIP W YU, 0000 ANTONIN Z SERGELIN, 0000 JOHN D TOLG, 0000 MICHAEL S ZANGER, 0000 SHANTI R SETHI, 0000 JAMES H TOOLE, 0000 EDMUND L ZUKOWSKI, 0000 SCOTT R SEYFARTH, 0000 RAMBERTO A TORRUELLA, 0000 MARK T ZWOLSKI, 0000 DAVID K SHAFFER, 0000 RICHARD A TREVISAN, 0000 ANDREW J SHANK, 0000 BRENT A TRICKEL, 0000 f ROBERT C SHASSBERGER, 0000 JEFFREY D TROYANEK, 0000 TRACY J SHAY, 0000 SCOTT S TROYER, 0000 FRANK C SHELLY, 0000 CARIN C TULLOS, 0000 CONFIRMATIONS JAMES A SHOENBERGER, 0000 RODNEY L TURBAK, 0000 JUSTIN L SHOGER, 0000 KYLE T TURCO, 0000 Executive nominations confirmed by MAXWELL J SHUMAN, 0000 EDWARD D TURCOTTE, 0000 the Senate July 25, 2002: DEAN W SIBLEY, 0000 JOHN N TURNIPSEED, 0000 LARRY A SIDBURY, 0000 RONALD W UHLIG, 0000 CONSUMER PRODUCT SAFETY COMMISSION DOUGLAS J SIEMONSMA, 0000 STEPHEN O ULATE, 0000 KEITH R SILINSKY, 0000 DAVID F USON, 0000 HAROLD D. STRATTON, OF NEW MEXICO, TO BE CHAIR- TIMOTHY L SIMONSON, 0000 RICHARD A VACCARO, 0000 MAN OF THE CONSUMER PRODUCT SAFETY COMMISSION. TYREL T SIMPSON, 0000 SAM J VALENCIA, 0000 HAROLD D. STRATTON, OF NEW MEXICO, TO BE A COM- THOMAS W SINGLETON, 0000 WESLEY W VALUS, 0000 MISSIONER OF THE CONSUMER PRODUCT SAFETY COM- LEE P SISCO, 0000 CHRISTOPHER E VANAVERY, 0000 MISSION FOR THE REMAINDER OF THE TERM EXPIRING WARREN E SISSON, 0000 TODD D VANDEGRIFT, 0000 OCTOBER 26, 2006. CHARLES W SITES, 0000 STEPHEN J VANLANDINGHAM, 0000 FEDERAL EMERGENCY MANAGEMENT AGENCY BRIAN L SITTLOW, 0000 JONATHON J VANSLYKE, 0000 DARREN J SKINNER, 0000 TIMOTHY T VECCIA, 0000 ANTHONY LOWE, OF WASHINGTON, TO BE FEDERAL IN- QUINN D SKINNER, 0000 BILLY J VEGARA, 0000 SURANCE ADMINISTRATOR, FEDERAL EMERGENCY MAN- STEVEN J SKRETKOWICZ, 0000 FRANK M VERDUCCI JR., 0000 AGEMENT AGENCY. JAMES C SLAIGHT, 0000 GUSTAVO J VERGARA, 0000 STEVEN J SLATER, 0000 JIANCARLO VILLA, 0000 DISTRICT OF COLUMBIA OFFENDER SUPERVISION, JULIA L SLATTERY, 0000 PETER VILLANO, 0000 DEFENDER, AND COURTS SERVICES AGENCY TIMOTHY J SLENTZ, 0000 CHAD P VINCELETTE, 0000 STEPHEN E SMALL, 0000 FREDRICK S VINCENZO, 0000 PAUL A. QUANDER, JR., OF THE DISTRICT OF COLUM- CARL C SMART, 0000 JESSE L VIRANT, 0000 BIA, TO BE DIRECTOR OF THE DISTRICT OF COLUMBIA BENJAMIN P SMITH, 0000 KEVIN S VOAS, 0000 OFFENDER SUPERVISION, DEFENDER, AND COURTS BRIAN E SMITH, 0000 FRANK P VOLPE JR., 0000 SERVICES AGENCY FOR A TERM OF SIX YEARS. CHRISTOPHER P SMITH, 0000 CHAD G WAHLIN, 0000 DEPARTMENT OF JUSTICE GREGORY A SMITH, 0000 GEORGE A WALBORN II, 0000 QUWAN A SMITH, 0000 PETER J WALCZAK, 0000 TODD WALTHER DILLARD, OF MARYLAND, TO BE ROBERT S SMITH, 0000 PHILIP W WALKER, 0000 UNITED STATES MARSHAL FOR THE SUPERIOR COURT OF THADEOUS C SMITH, 0000 RICHARD G WALKER, 0000 THE DISTRICT OF COLUMBIA FOR THE TERM OF FOUR WILLIAM A SMITH IV, 0000 JON B WALSH, 0000 YEARS. CRAIG M SNYDER, 0000 ANDREW R WALTON, 0000 WILLIAM H SNYDER III, 0000 DODD D WAMBERG, 0000 SECURITIES AND EXCHANGE COMMISSION ERIC A SODERBERG, 0000 KJELL A WANDER, 0000 PAUL S. ATKINS, OF VIRGINIA, TO BE A MEMBER OF TROY A SOLBERG, 0000 JOHN M WARD, 0000 THE SECURITIES AND EXCHANGE COMMISSION FOR THE DAVID M SOUZA, 0000 JASON D WARTELL, 0000 REMAINDER OF THE TERM EXPIRING JUNE 5, 2003. JOHN D SOWERS, 0000 DEREK L WATSON, 0000 CYNTHIA A. GLASSMAN, OF VIRGINIA, TO BE A MEMBER JEFFREY R SOWINSKI, 0000 BRUCE J WEBB, 0000 OF THE SECURITIES AND EXCHANGE COMMISSION FOR A MICHAEL T SPENCER, 0000 CHAD E WEBSTER, 0000 TERM EXPIRING JUNE 5, 2006. STEPHEN O SPRAGUE, 0000 ROBERT W WEDERTZ, 0000 HARVEY JEROME GOLDSCHMID, OF NEW YORK, TO BE A SCOTT S SPRINGER, 0000 TODD S WEEKS, 0000 MEMBER OF THE SECURITIES AND EXCHANGE COMMIS- WILLIAM B STAFFORD, 0000 HERSCHEL W WEINSTOCK, 0000 SION FOR THE TERM EXPIRING JUNE 5, 2004. BRUCE R STANLEY JR., 0000 MICHAEL C WELDON, 0000 ROEL C. CAMPOS, OF TEXAS, TO BE A MEMBER OF THE JOSEPH M STAUD, 0000 JOHN M WENKE JR., 0000 SECURITIES AND EXCHANGE COMMISSION FOR A TERM PETER S STAVELEY, 0000 STEWART M WENNERSTEN, 0000 EXPIRING JUNE 5, 2005. MARK O STEARNS, 0000 MARC A WENTZ, 0000 THE ABOVE NOMINATIONS WERE APPROVED SUBJECT JEFFREY C STEVENS, 0000 DEREK S WESSMAN, 0000 TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- AMOS STIBOLT, 0000 MICHAEL T WESTBROOK, 0000 QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY JONATHAN L STILL, 0000 ROBERT D WESTENDORFF, 0000 CONSTITUTED COMMITTEE OF THE SENATE. THOMAS D STOREY, 0000 JOSEPH P WHALEN, 0000 GREGORY P STPIERRE, 0000 CORY J WHIPPLE, 0000 THE JUDICIARY TABB B STRINGER, 0000 BENJAMIN W WHITE, 0000 KENNETH A STRONG, 0000 DAVID G WHITEHEAD, 0000 ROBERT R. RIGSBY, OF THE DISTRICT OF COLUMBIA, TO JASON J STRUCK, 0000 MATTHEW S WHITEHURST, 0000 BE AN ASSOCIATE JUDGE OF THE SUPERIOR COURT OF MICHAEL D STULL, 0000 RICHARD S WHITELEY, 0000 THE DISTRICT OF COLUMBIA FOR THE TERM OF FIFTEEN ALBERT F STUMM III, 0000 WILLIAM C WHITSITT, 0000 YEARS. NATHAN B SUKOLS, 0000 THOMAS D WHYTLAW, 0000 DEPARTMENT OF JUSTICE DANIEL J SULLIVAN IV, 0000 JEFFREY S WILCOX, 0000 JEFFREY M SULLIVAN, 0000 STEVEN R WILKINSON, 0000 ROSLYNN R. MAUSKOPF, OF NEW YORK, TO BE UNITED JOHN D SULLIVAN, 0000 CLAY G WILLIAMS, 0000 STATES ATTORNEY FOR THE EASTERN DISTRICT OF NEW MICHAEL T SULLIVAN, 0000 JEROMY B WILLIAMS, 0000 YORK FOR THE TERM OF FOUR YEARS. MICHAEL R SUTTON, 0000 MICHAEL B WILLIAMS, 0000 STEVEN D. DEATHERAGE, OF ILLINOIS, TO BE UNITED TIMOTHY E SYMONS, 0000 THOMAS R WILLIAMS II, 0000 STATES MARSHAL FOR THE CENTRAL DISTRICT OF ILLI- PAUL J TABAKA, 0000 TIMOTHY G WILLIAMS, 0000 NOIS FOR THE TERM OF FOUR YEARS. GREGORY J TACZAK, 0000 TROY S WILLIAMS, 0000 THOMAS M. FITZGERALD, OF PENNSYLVANIA, TO BE SCOTT A TAIT, 0000 IAN O WILLIAMSON, 0000 UNITED STATES MARSHAL FOR THE WESTERN DISTRICT SHANE P TALLANT, 0000 BRIAN A WILSON, 0000 OF PENNSYLVANIA FOR THE TERM OF FOUR YEARS. MARK W TANKERSLEY, 0000 THOMAS A WINTER, 0000 G. WAYNE PIKE, OF VIRGINIA, TO BE UNITED STATES JON M TAYLOR, 0000 JONATHAN R WISE, 0000 MARSHAL FOR THE WESTERN DISTRICT OF VIRGINIA BENJAMIN J TEICH, 0000 DONALD WOLFE, 0000 FOR THE TERM OF FOUR YEARS. ANTONIO TELLADO, 0000 EUGENE M WOODRUFF, 0000 DAVID WILLIAM THOMAS, OF DELAWARE, TO BE JASON A TEMPLE, 0000 BENJAMIN R WOODS, 0000 UNITED STATES MARSHAL FOR THE DISTRICT OF DELA- CRAIG R TESSIN, 0000 ALAN M WORTHY, 0000 WARE FOR THE TERM OF FOUR YEARS.

VerDate Mar 15 2010 20:55 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00067 Fmt 4624 Sfmt 9801 E:\2002SENATE\S25JY2.REC S25JY2 mmaher on DSKCGSP4G1 with SOCIALSECURITY