E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, THURSDAY, OCTOBER 26, 1995 No. 167—Part II Senate

BALANCED BUDGET Mrs. KASSEBAUM. Mr. President, fered by Senator KENNEDY, is that we RECONCILIATION ACT OF 1995 the purpose of this amendment is to leave intact provisions in the budget The Senate continued with the con- strike the provisions relating to loan bill that would decrease the size of the sideration of the bill. payments from institutions, the elimi- direct loan program to a more appro- Mr. DOMENICI. Mr. President, I un- nation of the grace period interest sub- priate demonstration size, until we can sidy, and the PLUS loan interest rate fully assess the merits and feasibility derstand Senator KASSEBAUM is pre- pared to offer an amendment with ref- and rebate. of direct lending. Direct lending does erence to education. I understand we I will just briefly speak to this, Mr. not affect student eligibility for Fed- have 10 minutes on our side and they President, because this has been some- eral student loans, nor does it affect have 10 minutes on their side. thing the Labor and Human Resources the amount of funds available for loans The PRESIDING OFFICER. The Sen- Committee has worked long and hard or the rates and fees charged to stu- ator from New Mexico is not correct in on. We passed the budget resolution dents. They do not make financial aid that. There is 10 minutes equally di- earlier this year in the U.S. Senate. more affordable or more accessible. vided, 5 minutes to a side. The Labor Committee, as a whole, ex- Mr. President, I just add that there Mrs. KASSEBAUM addressed the pressed reservations at that time about are two members—one, a member of Chair. the magnitude of the cuts that the res- the committee, Senator JEFFORDS from The PRESIDING OFFICER. The Sen- olution directed us to make in the Fed- Vermont, and the other is Senator ator from Kansas. eral student loan programs. However, SNOWE from Maine—who have felt we agreed to try and meet the rec- strongly from the very beginning that AMENDMENT NO. 2962 onciliation instruction, and we did so. we simply should not cut into the edu- (Purpose: To strike the provisions relating As chairman of the Committee on cation funds as much as the reconcili- to loan payments from institutions, the Labor and Human Resources, on behalf ation request required. They have elimination of the grace period interest subsidy, and the PLUS loan interest rate of the majority members of this com- fought long and hard. and rebate) mittee, we worked to get a package I will yield what time I have remain- Mrs. KASSEBAUM. Mr. President, I that met the reconciliation instruction ing to Senator JEFFORDS and Senator send an amendment to the desk on be- and had the least impact on students. SNOWE but I want to point out that a half of myself, Ms. SNOWE, Mr. JEF- Much has been said on the Senate majority of the committee is cospon- FORDS, Mr. COATS, Mr. GREGG, Mr. floor about the impact on students. We soring this amendment. We are all FRIST, Mr. DEWINE, Mr. ASHCROFT, Mr. consciously directed the effort so that united behind this amendment, and it ABRAHAM, and Mr. GORTON, and ask for it would not impact strongly on stu- has been a dedicated effort on the part its immediate consideration. dents. This amendment would reduce of the committee majority members. The PRESIDING OFFICER. The savings by about $6 billion from the I yield the floor to the Senator from clerk will report. original $10.8 billion that was requested Vermont. The legislative clerk read as follows: from and produced by the committee. The PRESIDING OFFICER. The Sen- Those costs will be offset by excess sav- ator from Vermont has 1 minute, 21 The Senator from Kansas [Mrs. KASSE- ings from the entire budget package. seconds. BAUM], for herself, Ms. SNOWE, Mr. JEFFORDS, Mr. COATS, Mr. GREGG, Mr. FRIST, Mr. Mr. President, this amendment would Mr. JEFFORDS. Mr. President, let DEWINE, Mr. ASHCROFT, Mr. ABRAHAM, and eliminate the provision of the bill that me briefly remind everybody that a Mr. GORTON, proposes an amendment num- would require students to pay for the while back, when we were dealing with bered 2962. interest on their subsidized Stafford the budget resolution, 67 of us voted Mrs. KASSEBAUM. Mr. President, I loans in the 6 months after they leave not to cut more than $4 billion out of ask unanimous consent that the read- school. This would have only applied to higher education. This amendment ing of the amendment be dispensed new borrowers, but we now eliminate would bring this level closer to where with. that provision. It would eliminate a we in the Senate voted earlier this year The PRESIDING OFFICER. Without raise in interest rate and the interest to be—a $5 billion cut from the $10.8 objection, it is so ordered. rate cap on the PLUS parent loans and billion. I remind my colleagues of that. The amendment is as follows: would also repeal the assessment of a I hate to see anybody be inconsistent On page 1421, beginning with line 15, strike participation fee on institutions of with their voting, and since 67 voted all through page 1423, line 13. higher education. for something a little more draconian On page 1424, beginning with line 2, strike The main difference between this than this, I hope those Senators will all through page 1426 line 9. amendment and the amendment of- stay with us on this amendment.

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

S 15773 S 15774 CONGRESSIONAL RECORD — SENATE October 26, 1995 I will also say, while I believe that Certainly, we must balance the budg- tial of individuals with a postsecondary we should have direct lending stay in et but we must cut expenditure not in- degree, this statistic is most disheart- as it creates great competition for the vestment. That is what this amend- ening. programs, and am in favor of having a ment does. It strikes the .85 percent in- I urge my colleagues to support this rate higher than 20 percent that is in stitution fee, restores the 6-month amendment and tell the nation that the bill now, I could not go with the grace period, and eliminates the in- the issue of education spending is a bi- Democratic amendment because it es- crease in the PLUS interest rate. Sup- partisan issue. sentially opens up direct lending fully. port for this amendment will provide I see that the Senator from Maine I will therefore be voting against the savings to parents, students, and insti- has arrived. I am happy to yield to her. Kennedy amendment. But I will be vot- tutions. The PRESIDING OFFICER. All time ing in favor, obviously, of the Kasse- Eliminating the interest subsidy dur- has expired. baum–Snowe-Jeffords amendment. ing the 6-month grace period could in- Mr. KENNEDY addressed the Chair. Our amendment restores the 6-month crease the debt of an undergraduate The PRESIDING OFFICER. The Sen- grace period, eliminates the .85 percent who borrows the maximum $23,000 by ator from Massachusetts. institution fee, and lowers the interest almost $1,000, resulting in additional rate on PLUS loans. Reducing the payments of nearly $1,400 over the life Mr. KENNEDY. Mr. President, I have labor committee’s instruction from of the loan. For a graduate student who 5 minutes, as I understand it. I will 1 $10.85 billion over 7 years to $5 billion. borrows the maximum $65,500, the re- speak for 2 minutes and then yield 2 ⁄2 Let me lay aside the issue of reduc- sult would be $2,700 in additional debt minutes to the Senator from Illinois. ing education cuts for one quick mo- and almost $4,000 in additional pay- Mr. President, this is, first of all, an ment and explain why this amendment ments. extraordinary moment because it is an is so important. Raising the interest rate and the in- initial victory for the students of this The amendment offered by my demo- terest rate cap on PLUS loans would country and their parents that our Re- cratic colleagues restored direct lend- increase the total payments of parents publican friends are hearing their mes- ing to current law—or a transition to who borrow $20,000 for their children’s sage about the unfair, unwise, unjusti- 100 percent. I simply could not support education by $1,300. fied additional burden on working fam- such a provision. It simply doesn’t pay to cut edu- ilies. So that is the good news. I have always been a supporter of cation. The bad news is that what Senator testing the direct lending program and Consider the following: More highly KASSEBAUM’s amendment will effec- am on record as opposing the labor educated workers not only earn more, tively do is to say to the 1,400 schools committee’s bill to limit it to 20 per- but they work and pay taxes longer that now have direct lending that half cent. Twenty percent in my view is too then less educated workers. of them are out. Half of them are out. small, it cuts out schools that cur- Between 1973 and 1993, median family in- There is no suggestion about how you rently participate in the program— come dropped by over 20 percent for families are going to cut those out. that to me is wrong. headed by a person with a high school di- Under our amendment, we are leav- However, as I stated during debate of ploma or less; but it held steady for those ing the choice to the schools, to the the 1993 reconciliation, I believe in a families headed by someone with 4 years of colleges. It is so interesting that our slow, implementation of direct lending. college; and increased for families head by Republican friends want to close the It should be undertaken thoughtfully someone with 5 years of college or more. (Mortenson, June 1995) option for local control out. We leave it and carefully. The amendment offered up to the schools. If they want to get We need to encourage our young peo- by my democratic colleagues is tanta- in, they can—maximum choice—and we ple to pursue higher education both to mount to a phase-in of direct lending. leave it up to the schools to have com- keep us competitive and to help bal- A phase-in suggests something very petition between the direct loan pro- ance the budget. different than a thoughtful analysis of gram and the guaranteed loan pro- Higher education funds cannot be cut the two programs. My fear is that we gram. have already made the decision to go any further. Unfortunately, the opportunity for Under the amendment of the Repub- full force without really looking at the licans, they will be preserving the $77 advisability of such a move. It is like individuals to go on to postsecondary education is getting slimmer and slim- billion that will flow through the guar- saying ‘‘ready, fire, and then aim.’’ antee agencies and guarantee $5 mil- For this reason I support a firm cap mer. Pell grant awards have not kept lion in profits. That is not competition. on direct lending. That cap, in my pace with college costs. Students have Where is the voice for competition mind should be set at a point which had to increase borrowing in order to among the Republicans? Where is the protects the schools that are current make up the difference. description about what colleges are participants and allows some room for In 1985–86, the actual maximum Pell going to be in and what colleges are growth. I suggest that number be set grant of $2,100 paid 58 percent of the going out? between 30–40 percent. total annual cost of attendance for a 4- Mr. President, that is not the amend- year public institution $3,637. In 1993– The amendment that has been intro- ment we are currently considering. I 94, the maximum Pell grant of $2,300 duced by myself and Senator SIMON offered that suggestion to my col- paid only 36 percent of the total cost, goes back to what was agreed to in leagues as a bipartisan approach. Un- $6,454. terms of direct loans in 1993. We permit fortunately, that amendment coupled Because Federal grant programs have the colleges that want to get in, and we with billions of dollars in additional grown much more slowly than the cost establish a ceiling. That was biparti- student aid, was rejected by the demo- of attending college, loans now, 1994–95 san. Someone tell me what happened in crats and interestingly also by groups account for 56 percent of all student the 1994 election that was to say that purporting to represent higher edu- aid, up from 49 percent in 1985–96. we are going to jiggle the system and cation. In particular the council on Borrowing has skyrocketed in recent force the students into the guaranty education. years to such an extent that the system. I am truly disheartened that today amount borrowed through the FFEL I yield to the Senator from Illinois. we may have lost an opportunity to program from 1990 to 1995 is greater Mr. SIMON. Mr. President, I agree demonstrate to this Congress, the ad- than the total amount borrowed from this is a step forward. But it elimi- ministration and the people of this its inception in 1965 through 1989. nates—cuts down to 20 percent direct country that education is not a par- With such statistics it is no wonder lending. This is, frankly, a brazen kind tisan issue. Unfortunately, we gave up that polls show more and more stu- of pandering to the banks and the guar- the chance to show that politics takes dents and families deciding that col- anty agencies. There is not a college or a back seat to sound policy. lege is simply out of their reach. In university in this Nation that has a di- I wish we could have put differences fact, close to 20 percent of students rect lending program that does not aside and discussed the real issue—re- consider leaving school because of want to keep it. And as our friend and ducing the labor committee’s instruc- debt. Considering the impact on our former colleague, DAVE DURENBERGER, tion and restore funding for education. economy and the future earning poten- said, ‘‘This is not free enterprise, the October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15775 old system, this is free lunch for the If you wish further details, we will be CBO estimate for the accelerated phase-in guaranty agencies and the banks.’’ We pleased to provide them. The CBO staff con- under the Credit Reform Act? write into the law their profit. tact is Deborah Kalcevic. Answer: The President’s fiscal year 1996 In terms of the taxpayer, we wrote Sincerely, budget request included a proposal to expand JUNE E. O’NEILL, the budget resolution so that you the direct student loan program to cover 100 Director. percent of loan volume by July 1997. This would count the administrative cost Attachment. proposed change was estimated to save $4.1 for direct lending but not for the guar- RESPONSES TO QUESTIONS FROM CHAIRMAN billion from the CBO baseline over the 1996– anty student program. CBO says, under DOMENICI 2002 period. That baseline incorporated current law, that leaving this 20 per- CBO’s February 1995 economic and technical The Credit Reform Act of 1990 provided assumptions and the direct loan phase-in cent, as the Kassebaum amendment that the federal budget would record the cost schedule provided under current law. This does, will cost the Nation $4.64 billion. of direct loans and guaranteed loans on a baseline reflected the rules that are cur- All colleges and universities, again, subsidy basis rather than a cash basis. The rently in law for estimating the cost of cred- who are in the program like it. It saves act defined the subsidy cost of a loan to it programs. a huge amount of paperwork. Students equal the present discounted value of all The 1996 budget resolution specified that like it, parents like it, taxpayers like loan disbursements, repayments, default costs, interest subsidies, and other payments the direct administrative costs of direct stu- it. dent loans should be included in the subsidy The Kennedy amendment is budget associated with the loan, excluding federal administrative costs. Federal administrative estimates for that program for purposes of neutral. We do not add to the deficit. costs of loan programs continued to be ac- Congressional scorekeeping. This change Why are we doing something that col- corded a cash-accounting treatment. Esti- conformed the treatment of the administra- leges like, students like, and taxpayers mates of proposals affecting student loans tive costs of direct student loans with that benefit from? We are doing it for one made from 1992 through early 1995 used the for guaranteed student loans. For purposes reason and one reason only: To benefit accounting rules established in the Credit of Congressional budget scorekeeping, the Reform Act. change overrides the Credit Reform Act, the banks and the guaranty agencies. which requires that the federal administra- If we want to call this a bank assist- The budget resolution for fiscal year 1996, adopted in June 1995, specified that the di- tive costs for direct loan programs be ac- ance bill—and they have record-break- corded a cash-accounting treatment. ing profits right now—we ought to do rect administrative costs of direct student loans should be included in the subsidy esti- For estimating legislation under the 1996 that. If we want to call this an assist- mates of that program for purposes of Con- budget resolution, CBO modified its baseline ance to guaranty agencies, we ought to gressional scorekeeping. Since June, for esti- for direct student loans to include in the do that; but if we want to call it an as- mating legislation under the 1996 budget res- subsidy calculations the present value of di- sistance to students bill, then we ought olution, the Congressional Budget Office rect federal administrative costs, including to vote for the Kennedy amendment. (CBO) has used this alternative definition of the loans’ servicing costs. This change Let me just point out that this idea subsidy costs. In addition, changes in eco- means that direct loans issued in a given year have their administrative costs cal- came from Congressman TOM PETRI, a nomic and technical estimating assumptions complicate the comparison of estimates culated over the life of the loan portfolio, Republican from Wisconsin. DAVE made at different times. The following ques- with adjustments for the time value of the DURENBERGER, Republican from Min- tions and answers explore the implications of funds. Therefore, the subsidy costs of any nesota, was the chief cosponsor of this. the change in accounting for direct student year’s direct loans will include the dis- This should not be a partisan thing. I loans. counted future administrative costs of serv- hope Members on both sides will vote Question 1: The President proposed, and icing loans which may be in repayment (or for the Kennedy-Simon amendment. It signed into law in 1993, the Federal Direct collection) for as long as 25 to 30 years. The makes sense for everyone. I just appeal Student Loan Program to replace the guar- inclusion of these administrative costs in the subsidy calculations for direct loans in- to you on behalf of America’s students. anteed lending program. What was the time frame adopted for the phase-in of that pro- creases the subsidy rates for these loans by Mr. KENNEDY. Do I have 30 seconds? about 7 percentage points. Consequently, the The PRESIDING OFFICER (Mr. gram when it was initially enacted and what savings estimate was provided by CBO? resolution baseline for student loans is high- THOMPSON). Ten seconds. Answer: The President’s fiscal 1994 budget er than the current CBO baseline. Under the Mr. KENNEDY. Mr. President, this is proposed expanding the direct student loan assumptions of the budget resolution base- a clear attempt to strike one of the ini- program from a pilot program (which was line, the President’s 100 percent direct lend- tiatives of President Clinton—elimi- about 4 percent of loan volume) to a program ing proposal would save $115 million over the nate National Service, eliminate Goals that would provide 100 percent of all student 1996–2002 period. 2000, eliminate direct lending for edu- loans by the 1997–1998 academic year. As part Question 3: What would be the long term cation. of the request, the President proposed to costs, under scoring rules in effect prior to Our Republican friends cannot stand lower interest rates to borrowers as of July the 1995 budget resolution, for the above pro- 1997, substantially increase the annual posal? How would those savings be affected a good idea when they see one. over the life of the loan? How would those The PRESIDING OFFICER. All time capped entitlement levels for direct loan ad- ministrative costs, and subsidize schools for costs be compared with the same volume of under the amendment has expired. loan origination. The budget proposed no loans made under the guaranteed program? Mr. DOMENICI. Mr. President, I ask changes in the guaranteed loan program ex- Answer: The response to the first part of unanimous consent to have printed in cept to phase it out. CBO estimated that the this question is addressed in the previous an- the RECORD a letter from the Congres- proposal would save $4.3 billion over the swer. Compared to the CBO baseline, the sional Budget Office dated October 26 1994–1998 period. These estimates were com- President’s 1996 budget proposal was esti- saying there has been no scorekeeping pleted using the CBO February 1993 baseline mated to save $4.1 billion over the next seven activities that try to prejudice one of economic and technical assumptions. The years. In order to provide an estimate of a President’s proposal became the policy as- proposal to return to 100 percent guaranteed the programs versus another; that is, lending by July 1997 under either the CBO or that guaranteed one versus another. sumed in that year’s budget resolution. The legislation passed by the Congress dif- the resolution baseline, we would need more There being no objection, the mate- fered significantly from the policies assumed detail than has been provided on how the rial was ordered to be printed in the in the budget resolution. The bill met the re- program would be restructured. RECORD, as follows: quirement to save $4.3 billion by limiting the Question 4: Did the credit reform amend- U.S. CONGRESS, volume in the direct lending program to 60 ment adopted as part of the budget resolu- CONGRESSIONAL BUDGET OFFICE, percent of the total and substantially cut- tion direct the Congressional Budget Office Washington, DC, October 26, 1995. ting subsidies in the guaranteed loan pro- to exclude any costs for guaranteed loans? Hon. PETE V. DOMENICI, gram. Specifically, direct loans were to rep- Answer: This year’s budget resolution ad- Chairman, Committee on the Budget, U.S. Sen- resent 5 percent of total volume for aca- dressed only the budgetary treatment of the ate, Washington, DC. demic year 1994–1995, 40 percent for 1995–1996, administrative costs of direct student loans. DEAR MR. CHAIRMAN: In your letter of Sep- 50 percent for 1996–1997 and 1997–1998, and 60 By defining the direct administrative costs tember 5, 1995, you asked the Congressional percent for 1998–1999. The legislation also of direct loans and requiring these costs be Budget Office (CBO) to respond to several provided that the ceiling could be exceeded if calculated over the life of the loan portfolio, questions regarding the Credit Reform Act demand required it. the resolution allowed for the costs of direct and section 207 of the 1966 budget resolution Question 2: In his FY96 budget, the Presi- and guaranteed loans to be evaluated on a related to the treatment of administrative dent proposed an acceleration of that plan so similar basis. Thus, all of the program costs expenses in the student loan programs. At- that all student loans would be provided di- for both programs are included in the resolu- tached are CBO’s responses to your ques- rectly from the government no later than tion baseline and are accounted for in the tions. July 1, 1997. What ‘‘additional’’ savings did same way, whether they are calculated on S 15776 CONGRESSIONAL RECORD — SENATE October 26, 1995 the basis of subsidy or cash-based account- cluded in the subsidy calculation would re- lending but not for the guaranteed pro- ing. quire a more thorough review of the current gram, and we asked CBO, how do you Question 5: Are there any expenses of di- expenditures of the Department of Education score it under current law? There is a rect or guaranteed loans that are currently than has been conducted to date. savings of $4.6 billion under direct lend- excluded from the government subsidy costs Question 7: Does the credit reform rule that would be more appropriately be in- adopted as part of the budget resolution pro- ing. cluded in that subsidy? If so, what are they vide the proper framework to fairly assess Mr. DOMENICI. There is a statement and why have they been excluded from the all direct federal expenses of guaranteed and in the letter from CBO on that issue. subsidy cost? For example, some have argued direct loans? Mr. SIMON. I will read it, and I that the credit reform amendment did not Answer: In general, the Credit Reform Act thank my colleague. amendment allows direct comparisons be- include the administrative cost allowance Mr. DOMENICI. I want 30 seconds to which is paid to guarantee agencies. tween the costs of the guaranteed and direct Answer: Indirect administrative costs— loan programs. say thanks to Senator KASSEBAUM and those not directly tied to loan servicing and Question 8: Some have claimed that sav- the other Senators who worked on our collection—are included in the budget on a ings associated with the Goodling proposal side. I think they have come up with a cash basis for both programs. Some have to repeal direct lending were a result of ex- very good amendment, and I think ulti- asked whether these costs would be more ap- cluding administrative costs of guaranteed mately the students across America propriately included in the loan subsidy cal- loans. What is the primary reason for the $1.5 who have been concerned will find they culations. Although it might be appropriate billion in savings associated with the Good- ling proposal under the new scoring rule? have done an excellent job in taking to include some or all of these costs in the care of an overwhelming percentage of subsidy calculation, as a practical matter it Answer: On July 26, 1995, CBO prepared an is not straightforward to determine which estimate of the original Goodling proposal. their issues. costs to account for in this manner. For the The proposal had three components: (1) We thank you for it. eliminate the authority for new direct stu- most part the costs of government oversight, VOTE ON ROCKEFELLER MOTION TO COMMIT regulation writing, Pell grant certification, dent and parent loans effective in academic year 1996–1997; (2) change the annual and cu- The PRESIDING OFFICER. Under and other similar expenditures are personnel the previous order, the question is on costs of the Department of Education or con- mulative budget authority levels under Sec- tracted services. In addition, many of the tion 458 to reflect the elimination of indirect agreeing to the motion of the Senator costs, such as program oversight, are not administrative cost anticipated for new di- from West Virginia. The yeas and nays tied to a single loan portfolio but affect rect loans and the termination of payments have not been ordered. many portfolios and both programs. Allocat- of Section 458 funds to guarantee agencies Mr. DOMENICI. I ask for the yeas ing these costs to specific portfolios and pro- and limit the funds to $24 million annually; and (3) reestablish an administrative cost al- and nays. grams for specific fiscal years would be dif- The PRESIDING OFFICER. Is there a ficult. lowance (ACA) for guarantee agencies at 0.85 The Omnibus Budget Reconciliation Act of percent of new loan volume or 0.08 percent of sufficient second? 1993 (OBRA–93) eliminated administrative outstanding volume, with an annual limita- There is a sufficient second. The cost allowance (ACA) payments to guaranty tion on ACA subsides of $200 million. Assum- question is on the motion. The yeas agencies. Until that time, the volume-based ing an enactment date of October 1995, the and nays have been ordered. The clerk payments were always included in the sub- proposals would reduce outlays for student will call the roll. loans by $227 million for fiscal year 1996 and sidy costs of guaranteed student loans. How- The legislative clerk called the roll. ever, OBRA–93 gave the Secretary of Edu- by $1.5 billion over the 1996–2002 period. Relative to the budget resolution baseline, The PRESIDING OFFICER. Are there cation authority to make such payments out shifting loan volume to guaranteed loans of the $2.5 billion capped entitlement fund any other Senators in the Chamber de- would save $855 million over the 1996–2002 pe- for the direct loan program. Any expendi- siring to vote? The result was an- riod. Administrative expenditures would be tures from this fund would be accounted for nounced—yeas 46, nays 53, as follows: reduced by $1.97 billion over the next seven on a cash basis. If the Secretary chose not years by lowering the cap. Of this amount, [Rollcall Vote No. 499 Leg.] allocate any funds for this purpose, then $824 million reflects the elimination of the YEAS—46 there would be no payments to guaranty discretionary guaranty agency payments, agencies. Akaka Feinstein Lieberman and the remainder reflects the elimination of As part of its current services budget esti- Baucus Ford Mikulski the discretionary guaranty agency pay- Biden Glenn mates, the Department of Education an- Moseley-Braun ments, and the remainder reflects the elimi- Bingaman Graham Moynihan nounced plans to use funds available under nation of the indirect costs for the phased- Boxer Harkin Murray the capped entitlement to pay administra- out direct loan program. Reestablishing the Bradley Heflin Pell tive cost allowances to guaranty agencies at Breaux Hollings ACA for a 100 percent guaranteed loan pro- Pryor one percent of new loan volume for the next Bryan Inouye Reid gram would cost $1.3 billion over seven Bumpers Johnston five years. Both the CBO baseline and the Robb years. Byrd Kennedy budget resolution baseline include these Rockefeller Although the Goodling proposal would Conrad Kerrey planned administrative expenses on a cash Sarbanes have eliminated most of the funds to funds a Daschle Kerry basis under the capped entitlement account Simon oversee the phased-out direct loan program Dodd Kohl at the Department’s current services levels. Specter by reducing the capped entitlement level for Dorgan Lautenberg It makes little budgetary difference wheth- Exon Leahy Wellstone these funds, it did not address the level of er these payments are computed on a cash or Feingold Levin appropriated funds that would be necessary subsidy basis. Because the payments are to oversee the larger guaranteed loan pro- NAYS—53 made at the time of loan disbursement, their gram. Abraham Frist McCain estimated costs on a cash basis or subsidy Question 9: Did the Goodling proposal to basis would be essentially the same. As a re- Ashcroft Gorton McConnell eliminate the direct loan program and make Bennett Gramm sult, over the 1996–2002 period the cost of the Murkowski changes to the guaranteed program you were Bond Grams Nickles student loan programs and the budget totals asked to score, address all federal adminis- Brown Grassley Nunn would be changed only marginally by ac- trative costs of direct and guaranteed loans? Burns Gregg Pressler counting for these payments on a subsidy When you applied the new scoring rule, were Campbell Hatch Roth basis. Chafee Hatfield Santorum you able to properly categorize those ex- Coats Helms Question 6: What possible mechanisms Shelby penses to provide a completed fair calcula- Cochran Hutchison exist to reclassify these costs as part of the Simpson tion of the cost differential? Cohen Inhofe Smith federal subsidy, to be scored on a present Answer: All of the cost analyses of the Coverdell Jeffords value basis? Goodling proposal for both the direct and Craig Kassebaum Snowe Answer: The guaranty agency cost allow- guaranteed loan programs were completed D’Amato Kempthorne Stevens ance could again be made an automatic gov- DeWine Kyl Thomas using the same budgetary treatment for both Thompson ernment payment under the guaranteed stu- programs. The Goodling proposal, however, Dole Lott dent loan law. Including the current cash- Domenici Lugar Thurmond did not address the level of discretionary ap- Faircloth Mack Warner based indirect administrative expenses for propriations necessary to oversee the larger both the direct and guaranteed loans in the guaranteed loan program. So the motion to lay on the table the subsidy estimates would require amending Mr. SIMON. Will my colleague yield motion to commit was rejected. the Credit Reform Act, but it would be dif- Mr. DOMENICI. Mr. President, I ficult to estimate a wide range of federal for a question? personnel-related expenses over a 25- to 30- Mr. DOMENICI. Yes. move to reconsider the vote by which year period. Determining whether some Mr. SIMON. Under the scorekeeping the motion was rejected. types of expenditures that are now ac- in the budget resolution, you say count Mr. NICKLES. I move to lay that mo- counted for on a cash basis should be in- the administrative costs for direct tion on the table. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15777 The motion to lay on the table was will be coming up for a vote, which pro- Chair recognizing the Senator from agreed to. vides for some tough measures. We will New Jersey for the purpose of a 1- AMENDMENT NO. 2950 talk about that later. This amendment minute statement. The PRESIDING OFFICER. Under is a good amendment. I intend to sup- The PRESIDING OFFICER. The Sen- the previous order, there will now be 2 port it. It is in keeping with trying to ator from New Jersey. minutes of explanation equally divided give the Secretary more power to cut Mr. BRADLEY. Mr. President, this on the Abraham amendment. down on waste, fraud, and abuse. amendment eliminates the tax increase Mr. BYRD. Mr. President, may we So it is a good amendment. We will on people making under $30,000 a year. have order in the Chamber? certainly support it. This bill contains a tax cut for estates The PRESIDING OFFICER. The The PRESIDING OFFICER. The of $5 million, a tax cut in the amount Chamber will be in order. question is on agreeing to the amend- of $1.7 million. The Senator from Michigan. ment. The yeas and nays have not been We are not touching that tax cut, but Mr. ABRAHAM. Mr. President, the ordered. we are trying to prevent the tax in- next amendment before us is very sim- Mr. DOMENICI. Mr. President, I ask crease that will come in this bill for ple. for the yeas and nays. people making under $30,000 a year. Mr. BYRD. Mr. President, the re- The PRESIDING OFFICER. Is there a The EIC offsets income taxes, Social marks do not mean anything if we can- sufficient second? Security, and excise taxes. The other not hear them. May we have order? There is a sufficient second. side has talked only about income The PRESIDING OFFICER. The The yeas and nays were ordered. taxes. Chamber will be in order. The PRESIDING OFFICER. The Last year, with $114 billion in Fed- Mr. BYRD. Mr. President, I thank question is on agreeing to the amend- eral taxes, only $12 billion of that was the Chair. ment of the Senator from Michigan. On income taxes from people making The PRESIDING OFFICER. The Sen- this question, the yeas and nays have under $30,000 a year. Why increase ator from Michigan. been ordered, and the clerk will call taxes on those hard-working Ameri- Mr. ABRAHAM. I thank you, Mr. the roll. cans? These are Americans who work President. The bill clerk called the roll. every day, and they pay their taxes, The next amendment I will offer is The PRESIDING OFFICER. Are there and they support their families. pretty straightforward. It basically any other Senators in the Chamber This motion is progrowth and creates a mechanism by which the who desire to vote? profamily. It deserves to be supported Medicare beneficiaries can be rewarded The result was announced—yeas 99, because it is a tax cut for individual for assisting us in ferreting out the nays 0, as follows: working families. waste, the fraud, and abuse in the Med- [Rollcall Vote No. 500 Leg.] The PRESIDING OFFICER. The time icare program. YEAS—99 has expired. Under the amendment, the Secretary Abraham Feingold Lott Mr. DOMENICI. I yield our time to of HHS has the responsibility of setting Akaka Feinstein Lugar Senator NICKLES. up two programs—one program that in Ashcroft Ford Mack effect is a whistle-blower program Baucus Frist McCain Mr. NICKLES. Mr. President, one, let Bennett Glenn McConnell me just tell my colleague from New which would provide bonuses to Medi- Biden Gorton Mikulski care beneficiaries who will identify Jersey, and other colleagues, there is Bingaman Graham Moseley-Braun no tax increase for individuals making Medicare fraud and abuse. The other Bond Gramm Moynihan program would be designed to provide Boxer Grams Murkowski less than $30,000. That claim has been Bradley Grassley Murray bonuses to Medicare beneficiaries who refuted by the Joint Tax Committee. It Breaux Gregg Nickles is totally false, and people making that identify waste, and to streamline and Brown Harkin Nunn make more efficient and less costly the Bryan Hatch Pell claim should really be ashamed of Medicare system. Bumpers Hatfield Pressler themselves. Burns Heflin Pryor Mr. President, I am going to put in Mr. President, I think this will help Byrd Helms Reid us to achieve cost savings in Medicare Campbell Hollings Robb the RECORD the facts. The facts are, the while at the same time providing bene- Chafee Hutchison Rockefeller earned income tax credit grows even Coats Inhofe Roth under our proposal. It grows. The maxi- fits to Medicare beneficiaries who as- Cochran Inouye Santorum sist us in that effort. Cohen Jeffords Sarbanes mum benefit that anybody can receive I urge its adoption. Conrad Johnston Shelby today is $3,100. It grows next year to The PRESIDING OFFICER. Who Coverdell Kassebaum Simon $3,200. And in 7 years it grows to $3,888. Craig Kempthorne Simpson It is an increase. yields time? D’Amato Kennedy Smith Mr. EXON. Mr. President, I yield 1 Daschle Kerrey Snowe This is a program that is a cash out- minute to Senator HARKIN. DeWine Kerry Specter lay program. Eighty-five percent of Dodd Kohl Stevens this program is Uncle Sam writing The PRESIDING OFFICER. The Sen- Dole Kyl Thomas ator from Iowa. Domenici Lautenberg Thompson checks, not reducing liability, but Mr. HARKIN. Thank you, Mr. Presi- Dorgan Leahy Thurmond writing checks. And it is the most dent. I thank the Senator from Ne- Exon Levin Warner fraudulent program we have in Govern- braska for yielding. Faircloth Lieberman Wellstone ment today. GAO said 30 to 40 percent As I said, I support the Abraham So, the amendment (No. 2950) was of it was in fraud and in error. amendment. It is not a bad amend- agreed to. It needs to be reformed. That is what ment. It is a good amendment. There is Mr. DOMENICI. I move to reconsider we do. This program should be re- nothing wrong with it. I would just the vote. formed. These proposals that we have point out it is sort of voluntary on the Mr. EXON. I move to lay that motion made, I think, are the right things to Secretary’s part. It does not mandate on the table. do for American families. that they have to do this. It says the The motion to lay on the table was Mr. President, I ask unanimous con- Secretary may set these up. That is agreed to. sent that the table be printed in the fine, as far as it goes. I would just say BRADLEY MOTION TO COMMIT RECORD. that probably later on today or tomor- Mr. EXON. Mr. President, I under- There being no objection, the table row, the amendment that I had offered stand that the Bradley motion is next. was ordered to be printed in the to the Abraham amendment last night I would appreciate, if possible, the RECORD, as follows: S 15778 CONGRESSIONAL RECORD — SENATE October 26, 1995 FISCAL YEAR 1996: TWO PARENTS, TWO CHILDREN

EIC: Two or more children Tax burden EIC relief: As a percent of tax burden Income Current law Senate re- Income FICA (15.3 Total Senate re- form taxes percent) Current law form

$1 ...... $0 $0 $0 $0 $0 261 235 $1,000 ...... 400 360 0 153 153 261 235 $2,000 ...... 800 720 0 306 306 261 235 $3,000 ...... 1,200 1,080 0 459 459 261 235 $4,000 ...... 1,600 1,400 0 612 612 251 235 $5,000 ...... 2,000 1,800 0 765 765 261 235 $6,000 ...... 2,400 2,160 0 918 918 261 235 $7,000 ...... 2,800 2,520 0 1,071 1,071 251 235 $8,000 ...... 3,200 2,880 0 1,224 1,224 261 235 $8,910 ...... 3,564 3,208 0 1,363 1,363 261 235 $9,000 ...... 3,564 3,208 0 1,377 1,377 259 233 $10,000 ...... 3,564 3,208 0 1,530 1,530 233 210 $11,000 ...... 3,564 3,208 0 1,683 1,683 212 191 $11,630 ...... 3,564 3,208 0 1,779 1,779 200 180 $12,000 ...... 3,486 3,124 0 1,836 1,836 190 170 $13,000 ...... 3,275 2,912 0 1,989 1,989 165 146 $14,000 ...... 3,065 2,700 0 2,142 2,142 143 126 $15,000 ...... 2,854 2,488 0 2,295 2,295 124 108 $16,000 ...... 2,644 2,276 0 2,448 2,448 108 93 $17,000 ...... 2,433 2,065 15 2,601 2,616 93 79 $18,000 ...... 2,222 1,853 165 2,754 2,929 76 63 $19,000 ...... 2,012 1,641 315 2,907 3,222 62 51 $20,000 ...... 1,801 1,429 465 3,060 3,525 51 41 $21,000 ...... 1,591 1,218 615 3,213 3,828 42 32 $22,000 ...... 1,380 1,006 765 3,366 4,131 33 24 $23,000 ...... 1,169 794 915 3,519 4,434 26 18 $24,000 ...... 959 583 1,065 3,672 4,737 20 12 $25,000 ...... 748 371 1,215 3,825 5,040 15 7 $26,000 ...... 538 159 1,365 3,978 5,343 10 3 $26,731 ...... 384 0 1,475 4,090 5,564 7 0 $27,000 ...... 327 0 1,515 4,131 5,646 6 0 $28,000 ...... 116 0 1,665 4,284 5,949 2 0 $28,553 ...... 0 0 1,748 4,369 6,117 0 0 $29,000 ...... 0 0 1,815 4,437 6,252 0 0 $30,000 ...... 0 0 1,965 4,590 6,555 0 0

The PRESIDING OFFICER. The time Mikulski Pell Sarbanes The Senator from New Mexico. has expired. Moseley-Braun Pryor Simon Mr. DOMENICI. Mr. President, the Moynihan Reid Wellstone Mr. DOMENICI. Mr. President, I Murray Robb biggest risk is that we not balance our move to table the Bradley motion and Nunn Rockefeller budget, and that we continue to spend ask for the yeas and nays. So, the motion to lay on the table your children’s and grandchildren’s The PRESIDING OFFICER. Is there a the motion to commit was agreed to. money to pay for programs we cannot sufficient second? Mr. DOMENICI. Mr. President, I afford. There appears to be a sufficient sec- move to reconsider the vote and I move Obviously, this program is growing ond. to lay that motion on the table. so fast, it is unsustainable. Anyone The yeas and nays were ordered. The motion to lay on the table was who thinks it is being cut is not hear- The PRESIDING OFFICER. The agreed to. ing the facts. We are going to increase question now occurs on agreeing to the GRAHAM MOTION TO COMMIT this program to more than $94 billion motion to table the Bradley motion to The PRESIDING OFFICER (Mr. GOR- next year, $124 billion in 2002. And over commit. The yeas and nays have been TON). The pending business is the mo- the entire period of time, this program ordered. The clerk will call the roll. tion of Senator GRAHAM to commit the will increase at a rather healthy rate, The assistant legislative clerk called bill with instructions. There are 2 min- while most programs in the National the roll. utes of debate equally divided. Government are either frozen or re- The Senator from Florida is recog- The result was announced—yeas 53, duced. nized. It is time that we reform this system nays 46, as follows: Mr. GRAHAM. Mr. President, this [Rollcall Vote No. 501 Leg.] so we can deliver on what we promise. reconciliation proposal is filled with But we also have to deliver on a prom- YEAS—53 risk—risk of the unknown, risks that ise to get interest rates down, to have Abraham Frist McCain have consequences that are beyond our growth and jobs for our children. We Ashcroft Gorton McConnell ability to forecast. There is no area in cannot have the status quo and do that Bennett Gramm Murkowski this entire legislation that has a great- Bond Grams also. Nickles er risk to the people of this country Brown Grassley Pressler The PRESIDING OFFICER. The time Burns Gregg than the proposals in Medicaid. Roth of the Senator from New Mexico has Campbell Hatch We are proposing to cut Medicaid by Santorum expired. Chafee Hatfield Shelby $187 billion—I repeat, a program which, Coats Helms Simpson Mr. DOMENICI. Mr. President, I Cochran Hutchison last year, had a total Federal expendi- Smith move to table the motion and ask for Cohen Inhofe ture of $89 billion, we are going to cut, Snowe Coverdell Jeffords over 7 years, by $187 billion. It is at the yeas and nays. Craig Kassebaum Specter The PRESIDING OFFICER. Is there a Stevens risk because we are proposing, for D’Amato Kempthorne sufficient second? DeWine Kyl Thomas those funds that are left, to place them Dole Lott Thompson in an inflexible block grant, without There is a sufficient second. Domenici Lugar Thurmond Federal participation, in terms of deal- The yeas and nays were ordered. Warner Faircloth Mack ing with unexpected circumstances, The PRESIDING OFFICER. The NAYS—46 and we are freezing in many of the in- question is on the motion to table the Akaka Daschle Hollings equities that have made this program motion to commit proposed by the Sen- Baucus Dodd Inouye inappropriate in the past. ator from Florida. Biden Dorgan Johnston Mr. President, we are putting at risk The clerk will call the roll. Bingaman Exon Kennedy Boxer Feingold Kerrey poor children, our elderly and, particu- The legislative clerk called the roll. Bradley Feinstein Kerry larly, the States of America, as they The PRESIDING OFFICER. Are there Breaux Ford Kohl are all being removed from the safety any other Senators in the Chamber de- Bryan Glenn Lautenberg siring to vote? Bumpers Graham Leahy net that Medicaid has provided. Byrd Harkin Levin The PRESIDING OFFICER. The time The result was announced—yeas 51, Conrad Heflin Lieberman of the Senator has expired. nays 48, as follows: October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15779 [Rollcall Vote No. 502 Leg.] at the local level, and wrongfully pro- Mr. DOLE addressed the Chair. YEAS—51 vides a Government-mandated monop- The PRESIDING OFFICER. The ma- Abraham Frist Mack oly to the powerful special interests in jority leader. Ashcroft Gorton McCain the student loan industry. Mr. DOLE. Could I be advised how Bennett Gramm McConnell I hope my amendment will be accept- long that vote took? Bond Grams Murkowski Brown Grassley Nickles ed. The PRESIDING OFFICER. The last Burns Gregg Pressler The PRESIDING OFFICER. The Sen- rollcall lasted approximately 13 min- Campbell Hatch Roth ator from New Mexico. utes. Chafee Hatfield Santorum Mr. DOMENICI. Mr. President, the Coats Helms Shelby Mr. DOLE. Let me remind my col- Cochran Hutchison Simpson Senate will vote on an amendment of- leagues three times 60 is a long time— Coverdell Inhofe Smith fered by Senators KASSEBAUM, JEF- we were about 3 minutes late on that Craig Jeffords Snowe FORDS, and SNOWE that removes all vote—if we start slipping these votes D’Amato Kassebaum Stevens cuts affecting students. The Senate Re- DeWine Kempthorne Thomas for everybody who wants to step out Dole Kyl Thompson publicans do this without raising taxes for 5 minutes. If we just stay in the Domenici Lott Thurmond or taxing investment. The Republican Chamber, we can do this in 10 minutes. Faircloth Lugar Warner plan will result in lower interest rates I say to my colleagues, we are going to NAYS—48 which will benefit all students and all start ringing the bell here in 10 min- Akaka Feingold Levin Americans. That is what our entire def- utes. Baucus Feinstein Lieberman icit reduction package is all about. The PRESIDING OFFICER. The Sen- Biden Ford Mikulski I yield any time I have and I move to Bingaman Glenn Moseley-Braun ate will be in order. It also slows down Boxer Graham Moynihan table. the Senate when conversations are Bradley Harkin Murray Mr. President, I ask for the yeas and going on during debate time. Breaux Heflin Nunn nays. AMENDMENT NO. 2962 Bryan Hollings Pell The PRESIDING OFFICER. Is there a Bumpers Inouye Pryor sufficient second? The PRESIDING OFFICER. The issue Byrd Johnston Reid before the Senate is amendment No. Cohen Kennedy Robb There is a sufficient second. Conrad Kerrey Rockefeller The yeas and nays were ordered. 2962 by the Senator from Kansas, [Mrs. Daschle Kerry Sarbanes The PRESIDING OFFICER. The KASSEBAUM]. There are 2 minutes Dodd Kohl Simon question is on the motion to lay on the equally divided. Dorgan Lautenberg Specter Senator KASSEBAUM will be recog- Exon Leahy Wellstone table the amendment by the Senator from Massachusetts. nized when the Senate is in order. So the motion to lay on the table the The clerk will call the roll. The Senator from Kansas is recog- Graham motion to commit was agreed The assistant legislative clerk called nized. to. the roll. Mrs. KASSEBAUM. Mr. President, I Mr. DOMENICI. Mr. President, I The PRESIDING OFFICER. Are there yield the time remaining to the Sen- move to reconsider the vote. any other Senators in the Chamber ator from Maine [Ms. SNOWE]. Mr. EXON. I move to lay that motion who desire to vote? The PRESIDING OFFICER. The Sen- on the table. The result was announced, yeas 51, ator from Maine. The motion to lay on the table was nays 48, as follows: Ms. SNOWE. I thank the Chair. I agreed to. [Rollcall Vote No. 503 Leg.] thank Senator KASSEBAUM for yielding. AMENDMENT NO. 2959 YEAS—51 Mr. President, I want to first recog- Mr. EXON. Mr. President, I under- Abraham Frist McCain nize several of my colleagues who have stand the next vote is on the Kennedy Ashcroft Gorton McConnell been instrumental in helping to craft amendment. Have the yeas and nays Bennett Gramm Murkowski this amendment and reach a com- been ordered? Bond Grams Nickles promise on student loan funding. Brown Grassley Pressler The PRESIDING OFFICER. They Burns Gregg Roth First, the chairwoman of the Labor have not been. Campbell Hatch Santorum and Human Resources Committee, Sen- Mr. EXON. Mr. President, I ask for Chafee Helms Shelby ator KASSEBAUM, who has been a real Coats Hutchison Simpson the yeas and nays. Cochran Inhofe Smith leader on this issue. She has had to The PRESIDING OFFICER. Is there a Coverdell Jeffords Snowe make difficult choices and tough deci- sufficient second? Craig Kassebaum Specter sions throughout this process—espe- There is a sufficient second. D’Amato Kempthorne Stevens cially meeting instructions of $10.8 bil- DeWine Kyl Thomas The yeas and nays were ordered. Dole Lott Thompson lion in savings for her committee, so I The PRESIDING OFFICER. The Domenici Lugar Thurmond thank her for her work and for offering question is on amendment No. 2959 by Faircloth Mack Warner this amendment. the Senator from Massachusetts [Mr. NAYS—48 Second, the majority leader and the KENNEDY] and others. Akaka Feingold Leahy chair of the Budget Committee, Sen- The Senate will be in order. Baucus Feinstein Levin ator DOLE and Senator DOMENICI—for Mr. EXON. Mr. President, the Senate Biden Ford Lieberman meeting our concerns and being respon- Bingaman Glenn Mikulski is not in order. Boxer Graham Moseley-Braun sive to our requests all along. Their The PRESIDING OFFICER. Until Bradley Harkin Moynihan support was obviously instrumental in conversations cease, we will just have Breaux Hatfield Murray crafting this amendment. to hold up. Bryan Heflin Nunn Finally, one of the main cosponsor of Bumpers Hollings Pell The Senator from Massachusetts is Byrd Inouye Pryor this amendment, Senator JEFFORDS of recognized for 1 minute. Cohen Johnston Reid Vermont, for his concern, his support, Mr. KENNEDY. Mr. President, I Conrad Kennedy Robb and his compassion for the needs of Daschle Kerrey Rockefeller thank the Chair. This is an easy Dodd Kerry Sarbanes America’s students. choice. My amendment strikes all pro- Dorgan Kohl Simon Mr. President, let there be no doubt visions of the bill that increase the Exon Lautenberg Wellstone about it, we are setting a course for cost for students and families, and pre- So, the motion to lay on the table America for the next 7 years and be- serves choice and competition in the the amendment (No. 2959) was agreed yond as we debate the measure before student loan program at the local to. us today. That is a heavy responsibil- level. Mr. EXON. Mr. President, I move to ity. Senator KASSEBAUM’s amendment reconsider the vote by which the mo- But the image of a better America, a rightfully pulls back the unfair and ex- tion was agreed to. stronger America, and a more fiscally treme provisions that increase the Mr. DOMENICI. I move to lay that secure America is incomplete for the costs for students. It wrongfully pre- motion on the table. next generations without one critical vents schools from choosing the loan The motion to lay on the table was component: that is, a commitment to program that best serves their students agreed to. education funding and to students. S 15780 CONGRESSIONAL RECORD — SENATE October 26, 1995 I believe one of our duties in this sities, and therefore locked out of percent. Since this rise outpaces in- process is to keep the American Dream America’s work force and a successful come growth in America, there’s heavy alive for our generation as well as the career. borrowing for a college education—up next generation of students—because And, with bipartisan support from an average of 17 percent yearly since we all know that educating today’s both sides of the aisle, my colleague 1990. students is also about preparing tomor- from Illinois, Senator SIMON, and I au- Each year, college costs rise 6.6 per- row’s workers. thorized and passed an amendment cent for private college while we have While I firmly believed that bal- that restored $9.4 billion for student recorded a rise in disposable personal ancing the budget is the greatest leg- loans. No other amendment, except income of only 4.4 percent. That 2 per- acy we can bequeath to our children one, received as much bipartisan sup- cent disparity is what is making stu- and grandchildren, I do not believe it port during the consideration of the dent loans a pipe dream for our college- requires the sacrifice of educational Senate budget resolution. bound students. opportunities to the children and stu- We should reaffirm that same level of In fact, since 1988, college costs have dents today. commitment again today, and with risen by 54 percent—well ahead of a 16 Let us be clear about this: our two this amendment, we now have an op- percent increase in the cost of living. objectives—balancing the budget and portunity to do so. And, more tellingly, student borrowing providing quality educational opportu- If we pass this amendment, the Sen- has increased by 219 percent since that nities—are not mutually exclusive en- ate’s strong support for this level of time. funding will be a strong instruction to tities. Without student aid, increasing costs I believe we can identify and set the Senate conferees to maintain this make higher education out of reach for budget priorities within the framework level of funding during the upcoming millions of Americans. of a balanced budget. I believe it is pos- House-Senate Reconciliation con- sible to be fiscally responsible and also ference. We should not have to bankrupt the be visionary about our education needs Now, I know that many of my col- families of students in order to allow into the next century for the next gen- leagues on the other side of the aisle them to send their children to receive eration. would have wanted more, especially a solid college education. That is basically what this amend- when it come to direct lending. Obvi- You see, when we allow students to ment accomplishes. It is prudent. It is ously, there is a difference of opinion get the loans they need to complete responsible. It’s fair. And it maintains on direct lending. their college education, we are making our commitment to excellence in edu- While the amendment we are offering a sizable, long-term investment in not cation. restores critical funding for loans, it only personal incomes, but our econ- The amendment we are offering maintains the bills current cap on di- omy as well. today would restore $5.9 billion in stu- rect lending at 20 percent. I could sup- Men and women who continue their dent loan funding that is sorely needed port raising this cap to 30 percent, education beyond high school, as we by America’s youth to continue their which would cover the 1,300 education have seen in study after study, have education. institutions currently involved in the consistently earned more money on av- Basically, we are removing the most direct lending program. erage each year than those who do not. onerous and punitive provisions on stu- However, the sole purpose of this In 1990, for example, the average in- dents that are currently contained in amendment is to restore funding for come for high school graduates was al- this package. student loan programs. other opportu- most $18,000. For those who had 1 to 3 Those provisions we are targeting for nities may arise on the floor today or years of a college education, earned on removal include the following: the im- tomorrow to increase the cap on direct the average $24,000. Those who grad- position of a 0.85 percent fee on the stu- lending. uated from college and received a col- dent loan volume of institutions of I have worked with many of my col- lege diploma received on average sal- higher learning; the provision increas- leagues across the aisle, and I know ary of $31,000. ing the interest rate on parent PLUS that—in the final analysis—we share According to the U.S. Department of loans from T-bill plus 3.1 percent, to T- the same goals on funding for student Commerce, a person with a bachelor’s bill 4.0 percent; and—most impor- education. That is the most impor- degree will average 50 to 55 percent tantly—the provision charging interest tant—the most critical-issue here. more in lifetime earnings than a person on student loans during the so-called 6- Why is this amendment important to with a high school diploma. month grace period. our students and to our future as a na- The entire country benefits, as well I believe we must support this tion? What is the value of student from student loans. For every $1 we in- amendment because student loans level loans? vest in education we get enormous re- the education playing field for so many it is unmistakable. Student loans turns as a result. Back in 1990, another in this country. In the world of edu- have a tremendous impact on our na- study was conducted that analyzed the cation, student loans are the great ‘‘en- tion’s economy . . . on personal in- school assistance that was provided to abler’’. They afford everyone the equal comes . . . on careers . . . and espe- high school students back in 1972. opportunity to profit from a college cially on providing education to needy For every $1 that the Federal Gov- education. citizens. ernment invested in the student loan I should know, I owe my education Student loans have given millions of programs at that time, the Govern- and much of my career in public serv- young Americans a fighting chance at ment received $4.3 in return in tax rev- ice to the student loan program, which reaching their own American Dream: enues. sustained me at the University of in 1993, it gave 5.6 million Americans Maine. that chance, and that was almost dou- According to a study by the Brook- Now, it is important to add that the ble the number of loans made 10 years ings Institute, over the last 60 years, Senate has already gone on record and earlier, when it was 3 million, in fact, education and advancements in knowl- has made a strong statement in sup- statistics show that almost half of all edge have accounted for 37 percent of port of increased student loan funding. college students receive some kind of America’s economic growth. Back in May, when the Budget Com- financial aid—many through student At a time in which education is be- mittee reported out a resolution that loans. coming paramount in this global arena, included a cut of more than $13 billion They have become especially impor- where it is going to make the dif- in student loan funding over 7 years— tant considering that the cost of col- ference for an individual and the kind and when the House reported out a ver- lege education and post-secondary edu- of living that can be enjoying for them- sion that included a cut of over $18 bil- cation has become a very, very expen- selves and their families, education lion, I joined several of my colleagues sive proposition for students, as well as puts them on the cutting edge. in taking action—because student loan their families. Most of all, it puts America on the funding programs would clearly result For example, a College Board survey threshold of competition for the future. in leaving some needy students locked says that 1995–1996 is the third straight If we deny individuals the oppor- out of our Nation’s colleges and univer- year that tuition costs have risen by 6 tunity to receive an education because October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15781 they lack the financial assistance or costs on students, their parents or Lott Nunn Simon Lugar Pell Simpson the access to financial assistance, schools. Mack Pressler Smith clearly, we—as a nation, a superpower, This bill also benefits students by al- McCain Pryor Snowe and the world’s greatest democracy— lowing those who have paid interest on McConnell Reid Specter are going to suffer. education loans a credit against in- Mikulski Robb Stevens Moseley-Braun Rockefeller Thomas Today, let’s make sure that we retain come tax liability equal to 20 percent Moynihan Roth Thompson policies that will make higher edu- of such interest up to $500. Murkowski Santorum Thurmond cation accessible to millions of low— As the father of three young chil- Murray Sarbanes Warner and middle-income families. dren, I believe that education is one of Nickles Shelby Wellstone Today, let us make a significant con- the most important issues facing our So the amendment (No. 2962) was tribution to students pursuing a higher nation today. We must continue to agreed to. education. Thank you, Mr. President. offer students across the country the Mr. DOMENICI. Mr. President, I Mr. President and Members of the opportunity to excel and obtain their move to reconsider the vote by which Senate, I am very pleased to have goals. Many students depend on the the amendment was agreed to. joined Senator KASSEBAUM and Senator federal student loan programs as their Mr. EXON. I move to lay that motion JEFFORDS offering this amendment only chance to go to college. This on the table. that essentially restores $5.9 billion to amendment will allow us to preserve The motion to lay on the table was the student loan program. This essen- those programs without imposing addi- agreed to. tially reaffirms the position that has tional costs on students. BUMPERS MOTION TO COMMIT been taken by 67 Members of this body Mr. EXON. Mr. President, I yield 1 The PRESIDING OFFICER. The when we had a vote on this issue last minute to the distinguished Senator order of business is the Bumpers mo- spring to the budget resolution. from Illinois, Senator SIMON. tion to commit to the Committee on This amendment removes the provi- The PRESIDING OFFICER. The Sen- Finance with instructions. sion that increases the origination fee ator from Illinois. Mr. EXON. Mr. President, I yield 1 on student loans. It removes the provi- Mr. SIMON. Mr. President, I shall minute to the Senator from Arkansas. sion that allows interest rates to ac- vote for the Kassebaum amendment, crue during the so-called 6-month grace The PRESIDING OFFICER. The Sen- but I have to say I am doing it with ator from Arkansas is recognized. period, and it also eliminates the provi- real mixed feelings because it fails to Mr. BUMPERS. Mr. President, in sion that allowed interest rates to in- address something that every higher 1981, this body, all but 11 Senators, crease on the PLUS loans from 3.1 per- education association favors, and that voted for a massive tax cut on the ar- cent to 4 percent. is direct lending. The colleges and uni- gument that it would help balance the I think we all acknowledge that col- versities in your States want direct budget. Eight years and $2 trillion lege costs have increased in this coun- lending. The bankers in your States later, we all knew we had made a mas- try. In fact, since 1988, they have in- and the guarantee agencies do not sive mistake. We are about to repeat it, creased more than 54 percent—16 per- want it because they have a cushy deal though not quite the magnitude of cent beyond the growth of income for going right now. that. most families in America. That has re- The Kassebaum amendment is an im- This amendment simply says what sulted in increased borrowing of 219 provement over the resolution as it is my good friend from New Mexico, the percent for individuals and families all right now, so I will vote yes for it. chairman of the Budget Committee, across this Nation so that their family The PRESIDING OFFICER. The said on May 30 of this year, that there and their children can pursue higher question is on agreeing to the amend- is one thing our side has agreed on: education. ment. There will be no tax cut until we bal- I think it essential for this country The Senator from New Mexico. ance the budget. to retain the policies that ensure ac- Mr. DOMENICI. I ask for the yeas Senator DOMENICI was right on May cess for low- and middle-income fami- and nays. 30, and to vote a different way now is lies through these policies. The PRESIDING OFFICER. The yeas wrong. I also ask unanimous consent to in- and nays are requested. The New York Times this very morn- clude as cosponsors of this amendment Is there a sufficient second? There is ing shows that a vast majority of the Senators ROTH, DOMENICI, PRESSLER, a sufficient second. American people, even the wealthy who STEVENS, and SPECTER. The yeas and nays were ordered. benefit most from this, are all opposed The PRESIDING OFFICER. Without The PRESIDING OFFICER. The to a tax cut until we balance the budg- objection, it is so ordered. clerk will call the roll. et. It is fiscal responsibility, and that Ms. SNOWE. I yield the floor. The legislative clerk called the roll. is the reason we call this the fiscal re- The PRESIDING OFFICER. The time The PRESIDING OFFICER. Are there sponsibility amendment. of the Senator from Maine has expired. any other Senators in the Chamber I yield the floor, Mr. President. Mr. FRIST. Mr. President, I rise in who desire to vote? support of the Kassebaum amendment The result was announced—yeas 99, The PRESIDING OFFICER. The Sen- which strikes from the budget rec- nays 0, as follows: ator from New Mexico has 1 minute. onciliation bill the provisions relating Mr. DOMENICI. Mr. President, this [Rollcall Vote No. 504 Leg.] to a .85 percent school fee, the elimi- amendment, I think, points up the dif- nation of the grace period interest sub- YEAS—99 ference between the two parties. We sidy, and the PLUS loan interest rate Abraham Coverdell Harkin have a balanced budget. It has been Akaka Craig Hatch increase. Ashcroft D’Amato Hatfield certified by the Congressional Budget Mr. President, I am committed to Baucus Daschle Heflin Office. Once we adopt this reconcili- balancing the budget—this is probably Bennett DeWine Helms ation instruction, we will have a bal- Biden Dodd Hollings anced budget. Then it is time to give the single most important thing we can Bingaman Dole Hutchison do for our children and our country. Bond Domenici Inhofe the taxpayers of America some relief. Today’s students will save money if we Boxer Dorgan Inouye We get a $170 billion economic divi- succeed in balancing the budget. Ac- Bradley Exon Jeffords dend for getting a balanced budget. Breaux Faircloth Johnston cording to Federal Reserve Chairman Brown Feingold Kassebaum What should we do with that money? Alan Greenspan, a balanced budget will Bryan Feinstein Kempthorne Should we spend it, or should we give it lower interest rates by 1–2 percent for Bumpers Ford Kennedy back to Americans, especially families Burns Frist Kerrey who are having difficulty raising their everyone. Byrd Glenn Kerry I am pleased that the leadership has Campbell Gorton Kohl children because we whittled down found offsets which will make the Chafee Graham Kyl their deduction such that they are kind Kassebaum amendment revenue neu- Coats Gramm Lautenberg of on their own? Cochran Grams Leahy tral. It will allow us to balance the Cohen Grassley Levin I believe it is right when you have budget without imposing additional Conrad Gregg Lieberman made savings and have a balanced S 15782 CONGRESSIONAL RECORD — SENATE October 26, 1995 budget, according to the Congressional bill cuts health care, disproportion- Robb Sarbanes Snowe Budget Office, that you ought to give ately affecting rural America because Rockefeller Simon Wellstone money back to the people and not let our hospitals have so many seniors. NAYS—53 the dividends sit around so we can Medicaid is cut, hurting rural America. Abraham Faircloth Mack spend it. The people want to spend There is already a tendency for people Ashcroft Frist McCain their own money. It happens to be to leave the farm and go to the city to Bennett Gorton McConnell Bond Gramm Murkowski theirs, not ours. seek some job to survive. We here Bradley Grams Nickles Mr. President, I move to table the should be sensitive to rural America, Brown Grassley Pressler Bumpers motion, and I ask for the yeas not insensitive, by raiding rural Amer- Burns Gregg Roth Campbell Hatch Santorum and nays. ica. This bill before us raids rural Chafee Hatfield Shelby The PRESIDING OFFICER. Is there a America, accelerates the transfer of Coats Helms Simpson Cochran Hutchison sufficient second? people from rural America to the city, Smith There is a sufficient second. Cohen Inhofe which is something we should not do. Coverdell Jeffords Specter The yeas and nays were ordered. So my amendment simply says to the Craig Kassebaum Stevens The PRESIDING OFFICER. The Finance Committee, go back and re- D’Amato Kempthorne Thomas Thompson question is on agreeing to the motion store some of these provisions that af- DeWine Kyl to table the Bumpers motion to com- Dole Lott Thurmond fect rural America, but still balance Domenici Lugar Warner mit. The yeas and nays have been or- the budget. dered. The clerk will call the roll. The PRESIDING OFFICER. On this I urge adoption of the amendment. question, the yeas are 46, the nays are The bill clerk called the roll. Mr. DOMENICI. Mr. President, under The PRESIDING OFFICER (Mr. 53. Three-fifths of the Senators duly the proposed reforms in this bill, the SANTORUM). Are there any other Sen- chosen and sworn not having voted in Federal Government will be spending ators in the Chamber desiring to vote? the affirmative, the motion is rejected. and continue to spend $64.8 billion in The result was announced—yeas 53, The point of order is sustained and outlays over the next 7 years for com- nays 46, as follows: the motion falls. modity-related programs. [Rollcall Vote No. 505 Leg.] Mr. ABRAHAM. Mr. President, I Farmers will benefit the most of all YEAS—53 move to reconsider the vote, and I groups of Americans if interest rates move to lay that motion on the table. Abraham Faircloth Lugar come down because they rely most on Ashcroft Feinstein Mack The motion to lay on the table was Baucus Frist McCain borrowed money, as compared with any agreed to. Bennett Gorton McConnell other group of business men or women Mr. DOMENICI addressed the Chair. Biden Gramm Murkowski in the country. The PRESIDING OFFICER. The Sen- Bond Grams Nickles Brown Grassley Farmers and rural America will also ator from New Mexico. Pressler benefit from the capital gains reduc- Burns Gregg Roth Mr. DOMENICI. Mr. President, I sug- Campbell Hatch Santorum tion in this bill. gest the absence of a quorum and ask Chafee Hatfield Shelby Coats Helms In addition, this amendment in- unanimous consent that time be Simpson Cochran Hutchison structs the Finance Committee to charged to neither side. Coverdell Inhofe Smith make changes in programs that are not Stevens The PRESIDING OFFICER. Without Craig Kassebaum even within their jurisdiction. D’Amato Kempthorne Thomas objection, it is so ordered. DeWine Kyl Thompson Mr. President, since that makes it The clerk will call the roll. Dole Lieberman Thurmond not germane, I raise a point of order The bill clerk proceeded to call the Domenici Lott Warner that this motion violates the Budget roll. NAYS—46 Act. Mr. DOMENICI. Mr. President, I ask Akaka Glenn Moseley-Braun Mr. EXON. Mr. President, pursuant unanimous consent that the order for Bingaman Graham Moynihan to section 904 of the Congressional the quorum call be rescinded. Boxer Harkin Murray Budget Act of 1974, I move to waive the The PRESIDING OFFICER. Without Bradley Heflin Nunn Breaux Hollings Pell applicable sections of that act for the objection, it is so ordered. Bryan Inouye Pryor consideration of the pending motion, Mr. DOMENICI. Mr. President, I un- Bumpers Jeffords Reid and I ask for the yeas and nays on the derstand that it is our turn for three Byrd Johnston Robb Cohen Kennedy motion to waive. successive amendments, and the first Rockefeller Conrad Kerrey The PRESIDING OFFICER. Is there a of those three that we have on our side Sarbanes Daschle Kerry Simon sufficient second? will be the Social Security earnings Dodd Kohl test by Senator MCCAIN. Dorgan Lautenberg Snowe There is a sufficient second. Exon Leahy Specter The yeas and nays were ordered. Will the Chair announce how much Feingold Levin Wellstone The PRESIDING OFFICER. The time is on these three amendments? Ford Mikulski question is on agreeing to the motion The PRESIDING OFFICER. Ten min- So the motion to lay on the table the to waive the Budget Act. utes equally divided. Bumpers motion to commit was agreed The clerk will call the roll. The Senator from Arizona. to. The legislative clerk called the roll. Mr. FORD. Mr. President, will the Mr. DOMENICI. Mr. President, I Senator yield for just a minute? We The PRESIDING OFFICER. Are there move to reconsider the vote. were looking for what these amend- any other Senators in the Chamber de- Mr. EXON. I move to lay that motion ment are. Can we have those? It just siring to vote? on the table. says ‘‘Finance Committee amend- The yeas and nays resulted—yeas 46, The motion to lay on the table was ment,’’ and we do not know what it is. nays 53, as follows: agreed to. We need a little bit of information. [Rollcall Vote No. 506 Leg.] BAUCUS MOTION TO COMMIT That was required of us last night. Mr. EXON. Mr. President, according YEAS—46 I thank the Chair. to the pending business, the next item Akaka Feingold Lautenberg I am grateful to the Senator. I thank of business is the rural restoration mo- Baucus Feinstein Leahy him. Biden Ford Levin AMENDMENT NO. 2964 tion. Bingaman Glenn Lieberman I yield to the Senator from Montana Boxer Graham Mikulski (Purpose: To express the sense of the Senate for 1 minute. Breaux Harkin Moseley-Braun regarding the need to raise the Social Se- Mr. BAUCUS. Mr. President, the Bryan Heflin Moynihan curity earnings limit) Bumpers Hollings Murray budget bill before us is a raid on rural Byrd Inouye The PRESIDING OFFICER. The Nunn Conrad Johnston America. It cuts the farm program and Pell clerk will report the amendment. Daschle Kennedy begins to eviscerate, obliterate the Pryor The legislative clerk read as follows: Dodd Kerrey farm program by cutting $13.4 billion Dorgan Kerry Reid The Senator from Arizona (Mr. MCCAIN), over 7 years, 25 percent cut. The budget Exon Kohl for himself, Mr. DOLE, Mr. COATS, and Mr. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15783 NICKLES, proposes an amendment numbered able. It only applies to low-income and should we discourage our senior citi- 2964. middle-income Americans who in our zens from meeting that challenge? At the appropriate place in the Act, add society today have to go to work trag- The PRESIDING OFFICER. The Sen- the following: ically for a broad variety of reasons. ator’s time has expired. SEC. . SENSE OF THE SENATE.—The Senate finds that Mr. President, there has been a lot of Mr. EXON. Mr. President, in order to (a) The Senate has held hearings on the so- partisanship back and forth today, move things along, we have a great cial security earnings limit in 1994 and 1995 some regrettably and some of it is a amount of work to do, we yield back and the House has held two hearings on the natural happenstance when a revolu- our allotted 5 minutes. social security earnings limit in 1995; tion is taking place because that is ba- Mr. MCCAIN. Mr. President, I ask for (b) The Senate has overwhelmingly passed sically what this is all about. the yeas and nays. Sense of the Senate language calling for sub- Let me point out that I heard a lot of The PRESIDING OFFICER. Is there a stantial reform of the social security earn- ings limit; pleas and cries in behalf of seniors on sufficient second? (c) The House of Representatives has over- the part of friends on the other side of There is a sufficient second. whelmingly passed legislation to raise the the aisle. In 1987, I came to the floor of The yeas and nays were ordered. exempt amount under the social security this body and sought repeal of the So- Mr. MCCAIN. Mr. President, I ask earnings limit three times, in 1989, 1992, and cial Security earnings test. There was unanimous consent that editorial en- 1995; a hearing in the Finance Committee dorsements from several newspapers, (d) Such legislation is a key provision of chaired by former chairman and former and also from various organizations, the Contract with America; (e) The President in his 1992 campaign doc- Secretary of Treasury Bentsen. ranging from the Seniors Coalition to ument ‘‘Putting People First’’ pledged to lift In 1988, I brought this amendment to the National Council of Senior Citi- the social security earnings limit; the floor, and in 1989 I brought it to the zens, and others, be printed in the (f) The social security earnings limit is a floor, and in 1990, 1991, 1992, 1993, and RECORD. depression-era relic that unfairly punishes 1994. And each time on the other side of There being no objection, the mate- working seniors; therefore, the aisle it was turned down. rial was ordered to be printed in the (g) It is the intent of the Congress that leg- I am happy to say that now this side RECORD, as follows: islation will be passed before the end of 1995 is in the majority. In both bodies we to raise the social security earnings limit for EDITORIAL ENDORSEMENTS working seniors aged 65 through 69 in a man- will repeal the onerous and outrageous Chicago Tribune: The skill and expertise of ner which will ensure the financial integrity earnings test which on the other side the elderly could be used to train future of the social security trust funds and will be they failed to do. workers, while bringing in more tax dollars consistent with the goal of achieving a bal- Mr. President, if I sound a little ex- and helping America stay competitive in the anced budget in 7 years. cited about that, it is because we have 21st century. Mr. MCCAIN. Mr. President, this had a lot of rhetoric today about how Los Angeles Times: As the senior popu- amendment signals the Senate’s intent cruel Members on this side of the aisle lation expands and the younger population shrinks in the decades ahead, there will be to move forward expeditiously on re- are to senior citizens. an increasing need to encourage older work- forming the earnings test. The major- The best way, the most effective way ers to stay on the job to maintain the na- ity leader has let it be known that he that we can help senior citizens today tion’s productivity. will move this matter soon, as early as is for those who seek to go to work and The Baltimore Sun: The Social Security next week depending on the action of have to work for a broad variety of rea- landscape is littered with a great irony: the House of Representatives. I appre- sons to be allowed to keep their earn- While the program is built on the strength of ciate the leadership of the majority ings. And, by the way, it would only be the work ethic, its earnings test actually leader, and I also want to thank former raised up to $30,000. provides a disincentive to work . . . One con- sequence of this skewed policy is the emer- Finance Committee chairman, Senator Mr. President, there is a couple who gence of a gray, underground economy—a Packwood, and Senator MOYNIHAN for are friends of mine who live near me in cadre of senior citizens forced to work for ex- their help and for their support on this northern Arizona. They are low-income tremely low wages or with no benefits in ex- matter. Americans. They have a son who had change for being paid under the table. Additionally, I want to note that the prostate cancer. The son has a daugh- Dallas Morning News: Both individual citi- House of Representatives today passed ter that he has to take care of in a zens and society as a whole would benefit a similar amendment by the over- home. My friend’s wife had to go back from a repeal of the law that limits what So- whelming vote of 414 to 5. to work in order to support her son and cial Security recipients may earn before her granddaughter. She went to work their benefits are reduced. Mr. President, the Social Security The San Diego Tribune: The benefit-reac- earnings test was created during the in a hospital where she has been work- tion law made some economic sense when Depression era when senior citizens ing. She dramatically increased her Social Security was established in the 1930s were being discouraged from working. hours because she is now helping her and the government wanted to encourage the This may have been appropriate then son who had prostate cancer and was elderly to leave the labor force and open up when 50 percent of Americans were out out of work. And she gets what? She jobs for younger workers. But with declining of work. But it is certainly not appro- found out 2 weeks ago that she owes birth rates and the nation’s need for more, priate today. It is not appropriate the Federal Government $1,200 because not fewer, experienced workers, the measure she exceeded the $11,000 limit. is bad for the nation as well as its older today when seniors are struggling to workers. get ahead and survive on limited in- So her ability to care for herself, her Wall Street Journal: The punitive taxation comes. Many of these seniors are work- husband, her son and her grand- of the earnings limit sends the message to ing to survive and make it on a day-to- daughter is dramatically penalized be- seniors that their country doesn’t want them day basis. cause this earnings test puts her in the to work, or that they are fools if they do. Mr. President, most Americans are highest tax bracket of anyone in Amer- The New York Times: . . . it is not wrong amazed to find that older Americans ica, amongst the richest. to encourage willing older adults to remain are actually penalized by the Social Mr. President, as I said before, there in the work force. Security earnings test for their produc- is also a myth that repeal of the earn- The Orange County Register: Indeed, re- pealing the tax might actually increase reve- tivity. For every $3 earned by a retiree ings test would only benefit the rich. nues. More people would be working, paying over the $11,160 limit, they lose $1 in Nothing could be further from the more taxes of all kinds, including the Social Social Security benefits. Due to this truth. The highest effective marginal Security tax. If our government bureaucrats cap on earnings, our senior citizens, rates are imposed on the middle-in- want us to keep paying their salaries, the many of whom are existing on low in- come elderly who must work to supple- least they can do is make it possible to work comes, are effectively burdened with a ment their income. in the first place. 33-percent tax on their earned income. Mr. President, finally it is simply Houston Post: Equity and common sense I want to point out this only applies outrageous to continue two separate demand that this disincentive to work be scrapped. to people who have to go to work. If policies that both keep people out of The Cincinnati Enquirer: No American someone is very rich and has a trust the work force who are experienced and should be discouraged from working, as long fund, pension, stocks, all of the gain who want to work. We have been as he wants to and is physically able to do that is accrued from that is not tax- warned to expect a labor shortage. Why so. S 15784 CONGRESSIONAL RECORD — SENATE October 26, 1995 The Indianapolis Star: On the face of it, The cap on earnings—set at $9,720 for retir- from working and make room for younger the game appears rigged in favor of those ees age 65 to 70—is ‘‘age discrimination of Americans to enter the work force. Whether who stop working at 65 and against those the worst kind,’’ the senator said, and that this was a good idea at the time is hardly who keep working, in favor of well-to-do re- ‘‘is plainly wrong.’’ For every $3 earned relevant; as the U.S. population ages, seniors tirees and against middle- and low-income above the cap, seniors lose $1 in benefits. are becoming an increasingly important seg- retirees who need a part-time job to help As Mr. McCain points out, it is foolish to ment of the labor force. The government with expenses. maintain a policy that keeps people with ex- should support them, rather than financially Forbes: Moreover, people are living longer; perience and a willingness to apply their penalize them, for remaining active and pro- the economy is hurt when artificial barriers skills out of the work force, especially when ductive. block the full use of our most productive the country faces economic stagnation and By the end of this decade, there will be 1.5 asset, people. declining international competitiveness. million fewer members of the work force Detroit News: Work is important to many Punishing people for working is wrong in aged 16 to 24. Coupled with this trend is the of the elderly, who are living longer. They an even more fundamental way. It violates fact that there is a sharply increasing num- shouldn’t be faced with a confiscatory tax an American principle known as the work ber of older persons relative to the working for remaining productive. ethic. Surely it is poor social policy to main- population. To respond to these challenges, tain disincentives to productive labor. Better [From the Los Angeles Times, Nov. 17, 1991] the United States needs to attract more peo- to let seniors who have something to con- ple to participate in the labor force. WHY PUSH THEM OUT OF WORK? tribute slip back into harness. Besides, many I have introduced legislation that would CONGRESS SHOULD ELIMINATE OUTMODED of them need the extra income. help our businesses adapt to the demands of SOCIAL SECURITY EARNINGS TEST The Bush administration argues that the international marketplace by making There are more than 40 million Americans eliminating the earnings test would cost $3.9 our work force more productive. My bill, age 60 or older, many of whom are eager to billion in fiscal 1992. Sen. McCain disagrees. H.R. , the Older Americans Freedom to work beyond normal retirement age but He argues that lifting the cap would save Work Act, has a majority of House members can’t afford to, thanks to an outmoded earn- money, both through the collection of addi- as co-sponsors, as well as considerable sup- ings test applied to Social Security recipi- tional taxes on the earnings of seniors and port in the Senate (Sen. Rudy Boschwitz, R- ents. The Senate, in a provision attached to administrative savings. Minn., introduced the Senate version). But the extension of the Older Americans Act, A Senate-passed measure to lift the cap is many in the House leadership remain op- has voted to eliminate this punitive restric- now in a conference committee, where it posed to it. The Ways and Means Committee tion. The measure now goes to a congres- must be reconciled with a House-approved chairman, Rep. Dan Rostenkowski (D-Ill.), sional conference committee, where House bill that would not eliminate the earnings and Social Security subcommittee chairman, conferees will have a chance to accept the penalty. If the House cares anything at all Rep. Andrew Jacobs (D-Ind.), are laboring Senate’s provision. They should do so, and about fairness, it will end the discrimination under the incorrect assumption that repeal the House should adopt it. Millions of work- now in place and free older Americans to of the Earnings Test will lead to a shortfall ers would be the better for it, and so would work. in government revenue, when exactly the op- government and society. posite is true. Current law says that people between the [From the Chicago Tribune, Jan. 5, 1991] If the Earnings Test is repealed, more sen- ages of 65 and 70 who draw Social Security END SOCIAL SECURITY EARNING CURBS and who earn more than $9,720 a year must iors—up to 700,000, according to the National lost $1 in Social Security benefits for every (By U.S. Rep. J. Dennis Hastert) Center for Policy Analysis, an economic re- $3 they earn over that limit. This rule effec- When a country doesn’t support its stated search group—would rejoin the work force, tively applies to those workers a 33% mar- goals by adopting policies to achieve those expanding the tax base and increasing the ginal tax rate—higher than anyone else must goals, its aims become unattainable. Such is amount of tax revenue the government re- pay—but there is more. Sen. John McCain the case with our goal of restoring U.S. com- ceives from these returning workers and tax- (R-Ariz.) says that when federal, state and petitiveness in the global market. We say we payers. As a result, the NCPA reported, the other Social Security taxes are factored in, want to regain our competitive edge, yet we annual output of goods would increase by at the tax bite approaches nearly 70%. If that follow obsolete policies that preclude us least $15.4 billion. isn’t age discrimination, McCain suggests, from fielding the most productive work force The NCPA, in concert with the Institute nothing is. possible. for Policy Innovation, another research There is no earnings ceiling for Social Se- The most pernicious example of this prac- group, revealed these findings in a recently curity recipients age 70 or older. It’s nonsen- tice is the continued application of the So- published report, ‘‘Paying People Not to sical to have one for those younger. Main- cial Security Earnings Test, a Depression- Work: The Economic Cost of the Social Se- taining the arbitrary ceiling and taxing era relic that penalizes senior citizens who curity Earnings Limit.’’ away 33 cents out of every dollar earned work after they retire. By forcing seniors to, Repealing the Earnings Test would also be from those who exceed it drives millions of forfeit one-third of their Social Security a federal revenue gainer, the groups re- productive workers into forced retirement. benefits after they earn more than a ridicu- ported. ‘‘Government revenue would increase The nation’s economy is not so robust that it lously low amount, the Earnings Test tells by $4.9 billion, more than offsetting the addi- can afford to lose willing, able and experi- the elderly we no longer value their exper- tional Social Security benefits that would be enced employees. Federal and state treasur- tise and experience. paid,’’ the report stated. Seniors between 65 and 70 who earn more ies are not so flush they can pass up the rev- The few remaining naysayers who continue than $9,360 are slapped with a 33 percent pen- enues that could be had from taxes on the to oppose repeal of the Earnings Test base alty. In short, the government siphons $1 in higher earnings of older workers. their opposition on the belief that Social Se- Why chase people who want to work out of penalties for every $3 a productive senior curity is an insurance policy. Specifically, the labor force? Why make this pool of tal- earns over the limit. When coupled with fed- Jacobs argues that benefits should be allo- ent lie stagnant? The earnings ceiling is an eral taxes, seniors who earn a penalty $10,000 cated only to those who are ‘‘retired’’—and if echo of an earlier time when it was argued a year are faced with a 56 percent marginal someone is still working, and hence not ‘‘re- that older workers had to be pushed into re- income tax rate—twice the rate of million- tired,’’ he or she should not receive full bene- tirement to make jobs available for new en- aires. fits. trants into the work force. Demographics The Social Security Earnings Test is age and the needs of the economy have changed. discrimination, pure and simple. Not only This reasoning ignores the difficulty sen- Millions of those older workers want to go does it discriminate against one age group, it iors encounter in attempting to survive sole- on working without being punished if they also afflicts the seniors who need extra in- ly on Social Security or working at a job; earn too much. The time has come to let come the most. Seniors can receive stock seniors frequently need both to make ends them do so. dividends and interest payments without los- meet. Because economic realities necessitate ing Social Security benefits, but those who more money than Social Security or, say, a [From the Arizona Republic, Nov. 17, 1991] work at low-paying jobs to make ends meet job at McDonald’s provides, the Earnings AGE DISCRIMINATION: LIFT EARNINGS CAP are punished for attempting to remain finan- Test must be repealed. Jacobs is simply out of step with the realities of the cost of living Congress dotes on its anti-discrimination cially independent. in the 1990’s. record. How then to explain why its continu- At a time in our nation’s history when the ing prejudice is targeted at a particular mi- operative buzz word is ‘‘competitiveness,’’ It is disturbing that two powerful commit- nority? policymakers are hypocrites when they tee chairmen are in a position to block land- The earnings cap on Social Security bene- preach the gospel of working harder while re- mark legislation that has the official sup- fits is a form of discrimination. ‘‘The earn- taining outdated policies that strip our labor port of a majority in the House. ings test translates into an effective tax bur- force of productive and experienced workers. It would be one thing to have the Older den of 33 percent,’’ Sen. John McCain told a Just as business leaders must modernize Americans Freedom to Work Act deliberated Senate committee. ‘‘Combined with federal, their factories, congressional leaders must on the House floor and tabled. At least then state and other Social Security taxes, it can update public policy. the merits—or what some believe to be the amount to a stunning tax bite of nearly 70 The Social Security Earnings Test was in- lack thereof—would have been put in the percent.’’ stituted in the 1930s to discourage seniors open and subject to public inspection. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15785 But a powerful minority of House leaders maintain a quality of life that is becoming ance, research and demonstration, and em- are doing everything in their power to make evermore expensive. ployment opportunities. sure this bill is never debated on the House Our opinion is formulated by the following As a network of over 200 Jewish Federa- floor. Because of their refusal to allow delib- compelling issues: tions and their affiliated social service agen- eration on the proposed repeal of the Earn- Our nation is faced with a shrinking labor cies, we are charged with the responsibility ings Test, one can only conclude that they supply for one of the fastest growing sectors for providing thousands of elderly people are fearful open discussion would lead to an of the economy—the service sector. Many with a life of quality. The Older Americans even greater groundswell of public support seniors are fully capable of and interested in Act, with its coordination between local, and a demand that Congress move swiftly to filing these openings. state, and federal agencies, enables us to do approve the bill. As stated in your fact sheet, we should not this. As our country takes steps to make itself have a system that has built-in disincentives The Older Americans Act, originally en- more economically competitive for the 21st that inhibit seniors from working. acted in 1965, has been a framework for pro- The current ‘‘cap’’ of $8,040 does not permit Century, it is clear that we will have to use viding vital nutritional and social services a senior in the 62–64 age group to work in a every available resource, especially in the to the elderly community for over 25 years. minimum wage ($4.25/hour) job for an entire U.S. work force. Remaining competitive in At a time when seniors are growing as a pop- year without incurring a penalty on the last the next century requires adopting policies ulation, the Older Americans Act should not 10% of their income. that foster economic vibrancy and doing be pulled from them. By passing the Older Seniors represent a growing part of our away with outdated policies that inhibit it. Americans Act the Senate will move one population who possess skill and attributes Repealing the Social Security Earnings Test step further along in the process necessary that employers are seeking. Seniors offer ex- will both encourage a large portion of the to ensure that the elderly may continue to perience and an excellent work ethic to an population to remain productive and help receive the quality care they need. bolster the economy. The realities of our employer. Also, in light of the health care reform We urge you to pass this critical legisla- economic situation demand that we do so. issue that is on everyone’s mind, by raising tion immediately. the earnings ‘‘cap,’’ this will allow seniors to Sincerely, AIR FORCE SERGEANTS ASSOCIATION, avoid the Catch–22 of not being able to work MARK E. TALISMAN, INTERNATIONAL HEADQUARTERS, enough hours to qualify for health care at Director. Temple Hills, MD, January 8, 1992. most corporations. Hon. JOHN MCCAIN, In conclusion, we believe that seniors OLDER WOMEN’S LEAGUE, U.S. Senate, Washington, DC should always be able to work in a minimum Washington, DC, September 9, 1992. DEAR SENATOR MCCAIN: The Air Force Ser- wage paying job full time (40 hours per week) DEAR SENATOR: On behalf of the Older geants Association strongly supports your without being penalized. To ensure that this Women’s League, I am writing to urge you to amendment to S. 243 to repeal the Social Se- is not a future problem, we recommend that pass the Older Americans Act, S.3008, before curity Earnings Test. We have written to the the Social Security Earnings Limit be in- Congress adjourns. House and Senate conferees expressing this dexed at 25% above the annual full time in- I cannot stress strongly enough how im- support and are ready to assist in any way come based on prevailing federally mandated portant it is to pass the Older Americans possible. minimum wage. Currently, that would in- Act. The reauthorization of this legislation Sincerely, crease the cap to $11,050. Internally, this and its programs is critical to providing con- JAMES D. STATON, would allow us to hire a senior, have them tinuing supportive services for millions of Executive Director. work 30 hours per week, and penetrate the older Americans, most of whom are low-in- rate range to the second step before reaching come and women. Without final passage, im- THE SENIORS COALITION, this new ceiling. portant new programs cannot be initiated Washington, DC, January 26, 1995. Thank you for the opportunity to express and the White House Conference on Aging Hon. JOHN MCCAIN, our views on this important issue. cannot take place. Amendments of particu- U.S. Senate, Washington, DC. Sincerely, lar importance to OWL are those requiring DEAR SENATOR MCCAIN: I wanted to take DIANNA MORGAN. data collection on long-term care workers, just a moment to thank you for introducing and supportive services for family the Senate measure to repeal the Social Se- NATIONAL COUNCIL OF SENIOR CITIZENS, caregivers. curity Earnings Test. Washington, DC, September 9, 1992. From its inception, the Older Women’s The Seniors Coalition has made this issue Hon. JOHN MCCAIN, the cornerstone of our legislative agenda League has sought changes in Social Secu- U.S. Senate, Russell Senate Office Building, rity that would make the system more equi- over the past three years. We have worked Washington, DC. closely with Rep. Dennis Hastert in the table for women. While OWL has endorsed DEAR SENATOR MCCAIN: We urge your sup- the Social Security provisions attached to House of Representatives and will continue port of an early and positive vote for S. 3008, to work with the House Republican Con- the OAA conference bill passed by the House the Older Americans Act (OAA) reauthoriza- of Representatives, we believe that these and ference now that the Contract With America tion. We believe that further delay in reau- addresses the earnings limit. other changes to Social Security should be thorizing the Act is a disservice to the mil- dealt with in a more appropriate legislative I am enclosing for your information our lions of seniors and their families who de- Issue Paper on the earnings limit, as well as measure. We hope to continue working with pend on vital OAA programs. Congress next year to make Social Security my recent testimony to the Ways and Means The National Council of Senior Citizens, Social Security Subcommittee. The Seniors equitable for beneficiaries, particularly comprised of five million seniors active in women. Coalition is ready to assist you in any way five thousand clubs and Councils, has made Passage of the Older Americans Act is long possible to ensure the success of your meas- passage of the OAA reauthorization one of overdue. The Act is the cornerstone of serv- ure. This issue is very important to our two our highest priorities for this Session. The ices for this country’s most vulnerable older million members and they love being asked Council has historically supported a sound population. Congress must reaffirm its com- to get involved with legislative issues. Social Security retirement test amendment mitment to assure the quality of life sought Please feel free to contact may assistant, has caused a yearlong delay in final passage for older Americans as declared in Title I of Kimberly Schuld at (703) 591–0663 if there is of the OAA. The two issues should be sepa- the Act. anything we can do to help. rated now and support of S. 3008 is the best Sincerely, Sincerely, way of resolving this matter. LOU GLASSE, JAKE HANSEN, Inaction on S. 3008 will be the cause of fur- Vice President for Government Relations. ther loss of resources and a weakening of the President. national commitment to meet the needs of WALT DISNEY WORLD CO., older persons at risk. We trust that we can NATIONAL COUNCIL ON THE AGING, INC., June 9, 1994. count on your vigorous support of S. 3008. Washington, DC, September 9, 1992. Hon. JOHN MCCAIN, Sincerely, DEAR SENATOR: The National Council on U.S. Senate, Senate Russell Building, Washing- LAWRENCE T. SMEDLEY, the Aging, Inc. urges you to support for im- ton, DC. Executive Director. mediate Senate action to reauthorize the DEAR SENATOR MCCAIN. We fully support Older Americans Act, S. 3008. your proposal to eliminate the Social Secu- COUNCIL OF JEWISH FEDERATIONS, Today, we are joining forces with many rity Earning Limit for senior citizens age 65 Washington, DC, July 23, 1992. other national organizations to seek your to 69. Furthermore, we favor additional relief DEAR SENATOR: On behalf of the Council of help in passing a clean Older Americas Act. for senior citizens in the age group 62 to 64 Jewish Federations, I am writing to urge the For the past two decades, the OAA has pro- who are faced with an even more stringent immediate passage of the reauthorization of vided vital services including congregate and limit on their earnings. the Older Americans Act, S3008. Millions of home-delivered meals, transportation, infor- In today’s society, Social Security is a sup- older citizens depend on the programs funded mation and referral, advocacy assistance, plement to a senior’s income which is tradi- in this Act for community and social serv- visiting and telephone reassurance, home- tionally pension and investments. Unfortu- ices, nutrition programs, senior centers, maker services, legal and employment serv- nately, some must continue to work to legal assistance, homebound care and assist- ices. S 15786 CONGRESSIONAL RECORD — SENATE October 26, 1995

Failure to take action on the reauthoriza- ing millions of older Americans will be able THE RETIRED ENLISTED ASSOCIATION, tion means that none of the many signifi- to continue uninterrupted. Alexandria, VA, January 14, 1992. cant improvements in OAA services crafted Sincerely, Hon. JOHN MCCAIN, after long Congressional scrutiny will be ini- HAROLD PRICE, U.S. Senate, Russell SOB, Washington, DC. tiated. Inaction has already had an effect on President. DEAR SENATOR MCCAIN: On behalf of the the current appropriation process in the more than 54,000 members of The Retired En- House. NATIONAL ASSOCIATION OF STATE listed Association (TREA) it is my pleasure The delay in passing the OAA jeopardizes UNITS ON AGING, to offer TREA’s support to you in your ef- those services that allow millions of older Washington, DC, August 28, 1992. forts to repeal the Social Security Earnings Americans to maintain their independence Test. DEAR SENATOR MCCAIN: The National Asso- and dignity. This year’s amendments, many ciation of State Units on Aging urges your We of TREA appreciate your willingness to of which enhance services under the Act, support for immediate Senate action to reau- address what we believe is a penalty imposed cannot be implemented until it passes. Fail- thorize the Older Americans Act, S. 3008. upon older Americans having a strong work- ure to pass the reauthorization will create a While the Older Americans Act itself has re- ethic. major rift in the covenant between Congress ceived almost unanimous support on the Should you or a member of your staff have and the older population of our country. floor of both Houses, it has been held captive any specific tasking suggestions for this of- I cannot stress strongly enough the impor- for months by a host of seemingly never end- fice on this issue, please don’t hesitate to tance of passage of S. 3008, the Older Ameri- ing congressional procedural roadblocks and contact me. cans Act at this time. controversial and non-germane amendments. Very respectifully, Sincerely, Failure by the Senate to act swiftly will JOHN M. ADAMS, DR. DANIEL THURSZ, result in an unconscionable reduction in MCPO, USN (Ret.), President. funds available across the nation to provide Director of Government Affairs. meals, transportation, in-home services, Mr. DOMENICI. Mr. President, I un- NATIONAL ASSOCIATION OF jobs, advocacy for nursing home residents, derstand this amendment is stacked AREA AGENCIES ON AGING, elder abuse prevention and similar, often Washington, DC, September 9, 1992. life-sustaining, services to millions of low- now. We do not vote on it now. We go JOHN MCCAIN, income and frail older persons. next to another Republican amend- U.S. Senate, NASUA’s members are the nation’s 57 state ment. We had a change in what our Washington, DC. agencies on aging, designated by Governors next amendment would be. But the DEAR SENATOR MCCAIN: On behalf of the and state legislatures to represent and serve Democrats have been advised. This will members of the National Association of Area older persons in their states. They have tried be the Helms amendment. Senator Agencies on Aging, I am writing to urge you to explain to older persons that these frus- HELMS is ready on the floor, and they to take immediate action to pass the Older trating delays do not indicate a lack of con- have a copy of it on the other side. Americans Act reauthorization legislation, gressional support for this program which is S. 3008. Thousands of older Americans in Ari- so important to them. However, their ques- AMENDMENT NO. 2965 zona and millions of elders across our nation tions have turned to anger, their frustration (Purpose: To allow senior citizens to depend on the services provided under the to disillusionment. continue to choose their doctors) Act—information and referral, supportive services, nutrition programs, transportation, Once again, we urge the Senate’s imme- The PRESIDING OFFICER. The diate passage of S. 3008. Swift action can still in-home care and assistance, and the long- clerk will report. term care ombudsman program. avoid unnecessary and unwarranted reduc- tions in Older Americans Act service funds The assistant legislative clerk read Senate inaction on S. 3008 is placing low- and rescue literally years of congressional as follows: income, minority, and frail elders in jeop- work to strengthen the Act from being lost ardy. Because of resulting funding problems, when this Congress adjourns in a few short The Senator from North Carolina (Mr. older persons are being denied services, there weeks. HELMS) proposes an amendment numbered are increases in service waiting lists, and 2965. Thank you for your consideration of our higher levels of unmet need. On page 461, line 13, after the period, insert views on this issue of critical importance to the following: As you are probably aware, passage of the millions of older persons. Older Americans Act has been stalled by pro- Sincerely, ‘‘(3) POINT-OF-SERVICE COVERAGE.—If a Med- visions to amend the exemption level of the DANIEL A. QUIRK, icare Choice sponsor offers a Medicare Social Security earnings test. For the past Executive Director. Choice plan that limits benefits to items and nine months Congress has been unable to services furnished only by providers in a net- reach an agreement on the earnings test work of providers which have entered into a NATIONAL COMMITTEE TO PRESERVE issue. We strongly believe it is time Congress contract with the sponsor, the sponsor must SOCIAL SECURITY AND MEDICARE, moved beyond this impasse by decoupling also offer at the time of enrollment, a Medi- the earnings test from the Older Americans Washington, DC, October 25, 1995. care Choice plan that permits payment to be Hon. JOHN MCCAIN, Act—by passing S. 3008. Further delay will made under the plan for covered items and do a disservice to older persons who depend U.S. Senate, Washington, DC. services when obtained out-of-network by on Older Americans Act services. We, there- DEAR SENATOR MCCAIN: Last year, Con- the Individual.’’ fore, urge you to take the necessary steps to gress authorized a Commission to study the obtain immediate passage of this crucial leg- Social Security Notch Inequity as a way to The PRESIDING OFFICER. The Sen- islation. examine the merits of the arguments for and ator from North Carolina is recognized Sincerely, against legislative action. for 5 minutes. CHERYLL SCHRAMM, The National Committee welcomed the op- President. Mr. HELMS. Mr. President, I am sure portunity this Commission presented to ad- that I am not alone in my strong feel- judicate the merits of this long standing ings that the senior citizens of America NATIONAL ASSOCIATION OF issue. must not be deprived of their right to RETIRED FEDERAL EMPLOYEES, The Congress is to be congratulated for its Washington, DC, September 9, 1992. choose their own doctors. efforts to bring this Commission to life. Hon. JOHN MCCAIN, The text of my amendment has been U.S. Senate, Russell Senate Office Building, This year, the leaders of both parties in modified to address both my strong de- Washington, DC. both Chambers have made all of the eight Congressional appointments. sire to preserve the right of the senior DEAR SENATOR MCCAIN: The National Asso- citizens and the concerns of a number ciation of Retired Federal Employees This month as a part of the Labor/HHS Ap- of Senators relating to options. (NARFE), and its nearly 450,000 members, is propriation Conference report, Congress ap- greatly concerned that the Older Americans propriated $1.8 million so that the Commis- The pending amendment stipulates Act has not yet been reauthorized. sion can carry out its mandate and report that if a Medicare choice plan offers a Today, we are joining forces with many back by the end of the year. closed plan HMO within the Medicare other national aging organizations to seek As soon as the President appoints his four margin, that plan must also offer a your help in passing a clean Older Americans members and designates a Chairperson, the point-of-service plan enabling senior Act, S. 3008. Unless the Act is reauthorized Commission will proceed. citizens to exercise their freedom of soon, we fear that service programs that ben- I hope that you will agree that the Notch choice regarding the selection of physi- efit low-income, minority and frail elders Commission, when activated, will study the cians. will be jeopardized. issue and note findings which will produce a Three summers ago, I had a little en- We hope that you will join with us to urge recommendation. Please do your part to passage of S. 3008 so that Older Americans move this Commission into action. counter with some remarkable medical Act programs for community and supportive Sincerely, doctors, who are also my personal services, nutrition programs, senior centers, MARTHA A. MCSTEEN, friends, in my hometown of Raleigh. I legal assistance and elder opportunities serv- President. was at that time, of course, free to October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15787 choose the team of surgeons who per- service plan enables patients to see Mr. EXON. We are having a great formed my heart surgery. physicians and specialists inside and deal of difficulty. Since you have The point is that all senior citizens outside the managed care network. If changed the order of offering amend- enrolled in Medicare should have the seniors citizens are satisfied with the ments, our Senator was not alerted, same choice that I had. And the pend- care they receive within the network, and we are having trouble getting him ing amendment will enable senior citi- they will feel no need to choose outside here. zens to preserve their right to choose doctors and specialists. Mr. DOMENICI. Would you like to their doctors. Mr. President, CBO has given me re- have 5 minutes and charge it to no one Most Americans, whether their peated assurances that a built-in point- while the Senator gets down here? health is insured by private firms or by of-service feature—the technical term Mr. EXON. I would appreciate that. Medicare, enjoy their freedom to de- for freedom of choice—would not in- cide which medical professionals will crease the cost of Medicare. In fact, in Mr. DOMENICI. We are just going to perform their care and treatment. In testimony before the Senate Budget do that. reforming Medicare, Congress must Committee, CBO stated that ‘‘the point I ask unanimous consent we go into a make sure that senior citizens know of service option would permit Medi- quorum call for 5 minutes and that it their options and can choose their doc- care enrollees to go to providers out- not be charged to the bill or to either tors and other medical providers in- side the HMO’s panel when they want- side. stead of being required to accept some- ed to, and yet it need not increase the The PRESIDING OFFICER. Without body else’s lineup of physicians and benefit costs to HMOs or to Medi- objection, it is so ordered. surgeons. care. . . .’’ The clerk will call the roll. Mr. President, the Senate is consider- Moreover, the actuarial firm of Mr. EXON. I thank my friend for his ing major reforms to save Medicare Milliman and Robertson concluded courtesy. and prevent its being pushed over the that depending on the terms of the The assistant legislative clerk pro- cliff. Medicare must be reformed before plan and a reasonable cost sharing ceeded to call the roll. schedule, there should be no increase in it goes bankrupt. We agree on that. Mr. INHOFE. Mr. President, I ask cost to the HMO. In fact, there could Otherwise, the Medicare trust fund will unanimous consent that the order for actually be a savings. be flat broke when the 21st century the quorum call be rescinded. rolls around just a few years hence. The fastest-growing health insurance America’s senior citizens—and I am product is a managed care plan that in- The PRESIDING OFFICER. Without one of them—depend on the health care cludes the point-of-service feature. In objection, it is so ordered. coverage provided by the Medicare sys- fact, in 1993, 61 percent of all HMOs Mr. INHOFE. Mr. President, I ask tem, and those of us in Congress have a offer a point of service option. unanimous consent that I have a very duty to make sure that they will not be Building a point-of-service option brief, 2-minute colloquy with Senator forced to give up their right to choose into health plans under Medicare will HELMS. their doctors. It is vital to their future not interfere with the plan’s ability to The PRESIDING OFFICER. Is there security that our senior citizens retain contain cost, nor will it limit their ef- objection? Without objection, it is so this right. The power to choose will forts to encourage providers and pa- ordered. place senior citizens firmly in control tients to use their health care re- Mr. INHOFE. I say to Senator HELMS, of their health care. sources wisely. It simply will ensure just briefly, there was a little evolu- Senior citizens may be enticed to that health plans put the patient’s in- tionary process that we went through join an HMO because they will gain terest first. with this amendment. I think the coverage for prescription drugs and We can save Medicare. We can extend amendment is very good, and I am in eyeglasses and hearing aids—coverages its benefits while lowering the tower- support of the amendment. Initially not presently provided by Medicare. ing costs that beset us today. And my the Senator had it that under a man- However, without some moderating amendment, we can also preserve a aged plan, if a person wanted to leave legislation, senior citizens could very basic American freedom to choose the managed plan in one area of spe- well find themselves locked into cov- one’s own doctor. cialty, there was a split between the erage that limits them to services pro- I yield the floor. additional costs, if there were addi- vided by HMO-affiliated doctors, other The PRESIDING OFFICER. Who tional costs, of 70–30 percent. My sug- professionals and hospitals. No longer yields time? gestion in talking with the Senator Mr. DOMENICI addressed the Chair. would senior citizens have the freedom and with his staff was it might be a to choose their own doctors. The PRESIDING OFFICER. The Sen- ator from New Mexico. better idea if we had a managed plan So, Mr. President, these are the rea- that allowed the market to take care sons why I am introducing this amend- Mr. DOMENICI. I ask unanimous consent that at the expiration or yield- of that differential so that if an indi- ment, to make sure that all Medicare- vidual went into a managed plan and at eligible Americans who choose to en- ing back of debate time on each amendment, the amendment be laid a later date wanted to go to another roll in an HMO know their options of specialist, that individual would pay choosing the closed panel HMO or the aside to consider the next amendment in order, and that when the next order the differential himself so that the pa- point-of-service plan offered by the tient would have the choice of any same insurance company. of stacked votes begins, each amend- ment be voted on in the order in which practitioner he wanted to use and yet Mr. President, consider if you will the savings of the managed plan would the predicament of a patient who re- it was offered. The PRESIDING OFFICER. Without be effected. quires heart surgery, and whose HMO My question would be, does the Sen- will not approve the cardiologist with objection, it is so ordered. The Senator from Nebraska. ator think that perhaps this might whom the senior has built up a long- Mr. EXON. Mr. President, I suggest avoid a duplication of all kinds of actu- standing relationship. My amendment the absence of a quorum and that it be arial calculations, just to have one? will enable women being treated for charged to the 5 minutes on our allo- And maybe we could talk about this or breast cancer to have more options cated time. bring this up during the conference. when choosing a lower cost plan that The PRESIDING OFFICER. Without Mr. HELMS addressed the Chair. will allow them to continue to see the objection, it is so ordered. The clerk specialists familiar with them and The PRESIDING OFFICER. The Sen- will call the roll. ator from North Carolina. their conditions. For this reason, more Mr. DOMENICI. Mr. President, could than a hundred patient advocacy you hold up on the quorum? Mr. HELMS. The Senator’s sugges- groups have voiced their support for The PRESIDING OFFICER. Does the tion was excellent, and as he knows we this amendment. Senator withhold? undertook to adjust and modify the Point-of-service plans provide a safe- Mr. EXON. Be glad to. amendment to conform with the Sen- ty valve to protect seniors who find Mr. DOMENICI. Are we charging ator’s excellent suggestion. themselves in the position of needing time because we have not given you Now, the HMO may set up a cost to see a doctor of choice. A point of this amendment? sharing plan in the manner that the S 15788 CONGRESSIONAL RECORD — SENATE October 26, 1995 Senator from Oklahoma suggested. A The yeas and nays were ordered. charged to each side, and to come up plan may require that the senior citi- Mr. HELMS. I thank the Chair. with an orderly process so we can move zen pay up to 100 percent of the dif- Mr. DOMENICI. Now, I say to Sen- expeditiously ahead. ference between what a network doctor ator EXON, I am willing to accommo- Would the Senator from New Mexico would charge and what the HMO would date whichever way he would like. We respond? pay for the doctor. And that is, of are not ready with the amendment Mr. BROWN. Will the Senator yield? course, one of the many options. that we styled for, the Finance Com- Mr. DOMENICI. Mr. President, I am My amendment is intentionally si- mittee amendment. That is being going to yield. worked on now. I mean, that is just a lent as to how an HMO should set its Yes, I say to Senator BROWN, I will be cost sharing schedule, but as the Sen- matter of fact. We cannot bring it until pleased to yield. it is done. ator has suggested, HMO’s could set Mr. BROWN. I did not mean to inter- Mr. FORD. Mr. President, would the deductibles and other specific cost fere. I think the distinguished Senator Senator yield for a question? sharing arrangements. from Kentucky raises a very valid So I commend the Senator on his Mr. DOMENICI. Of course. point. As far as I am concerned, I suggestion. The modified version of the Mr. FORD. We have a Brown amend- would be happy to limit my remarks to amendment is at the desk. ment, and Senator BROWN is not even 1 minute and then to defer for a re- Mr. INHOFE. I thank the Senator on the list of 17 given to us. And the sponse time, which would give the dis- from North Carolina. first four that were given to us—— tinguished Senator some additional I thank the Chair. Mr. DOMENICI. He is No. 17. time to review it. I think this is very I would like to have a chance to look Mr. EXON. That is a question mark, straightforward. at that. I think we all want to accom- yes. plish the same low cost and choice. Mr. FORD. BROWN is a question Mr. FORD. We do not even know The PRESIDING OFFICER. The Sen- mark? what it is yet. ator’s time has expired. Mr. DOMENICI. We never thought he Mr. BROWN. I delivered a copy. Mr. INHOFE. I thank the Senator. I was a question mark. Mr. FORD. We just now got it. thank the Chair. Mr. FORD. That is a question mark Mr. BROWN. I will try to accommo- Mr. HELMS. I give the Senator a on the list the Senator gave to us? date any way I can. copy of the modified amendment which Mr. DOMENICI. Yes. Mr. DOMENICI. Mr. President, first, is now pending. Mr. FORD. Now, am I to understand let me say we are in very good shape, Mr. INHOFE. I suggest the absence of that there will only be 10 out of the 17 comparatively speaking. So, I hope no- a quorum. that the Senator will give us? body is taken in by my exaggerations, The PRESIDING OFFICER. The Mr. DOMENICI. Yes. There are only or perhaps the exaggerations of the clerk will call the roll. going to be 10 that we will have 5 min- other side, on how muddled we are. We The assistant legislative clerk pro- utes on a side. Any that are left over go are not muddled at all. We were going ceeded to call the roll. into the—— to offer a Finance Committee amend- Mr. DOMENICI. Mr. President, I ask Mr. FORD. Third tier. ment which is a very important amend- unanimous consent that the order for Mr. DOMENICI. The third tier with ment. We have been very forthright. It the quorum call be rescinded. no time. is not ready. The PRESIDING OFFICER. Without Mr. FORD. The only thing we have Now, having said that, we do not objection, it is so ordered. on the Brown amendment is a question have your No. 1 amendment from the Mr. DOMENICI. Now, Mr. President, mark? second tier. We have a statement of it. could I get back to understanding Mr. DOMENICI. Yes. We have the Biden tax credit. We have where we are. We were on a 5-minute Mr. FORD. We just got it. We do not not seen it either. And the Breaux kind of recess waiting for the Demo- know who to go to here or to have de- child tax credit has been circulating crats to have an opportunity and then bate or if we want to even debate. This around, so maybe we have seen it. we got a discussion going, which I is getting completely out of hand, and Now, what we would like to do is to we are not doing it properly. We are think was good, for the record. Now have Senator BROWN go next. And, I where are we parliamentarywise? not being fair to either side. I think say to the Senator, his is an important The PRESIDING OFFICER. The Sen- that we should stop now and go back amendment, so I would ask him not to ator from Nebraska has 5 minutes re- and get it in order. And we will have take less than 5 minutes. The Senator maining on his time on the amend- ours. You had the first three, and then is entitled to explain it. we get one, and we can tell you who ment. So we have that. And there are two that is and what it is about. Mr. EXON. Mr. President, I thank my changes. Let me see if we can help to But I think we ought to take a few friend and colleague. get something done. I do not like being I yield back the 5 minutes of time minutes, get them in order so we will in this position either. So what we that was allotted to us in the interest know and we can have a decent 5- need to do is to get the Brown amend- of conserving time and moving ahead. minute debate on each amendment on ment. Or does the Senator have it now? Let me say the next amendment that the floor. Mr. BROWN. We have copies, and we have now, which we do not have, is Now, I think the Senator from New both sides have it. the amendment to be offered by Sen- Mexico agrees with me because he has Mr. DOMENICI. We ask the Senator ator BROWN, as I understand it. We are been a little bit frustrated by not being having a great deal of difficulty with able to get them in the order in which that he give us the remainder of his this shifting back and forth, trying to he told me that we were going to get first three that we do not have. accommodate an awful lot of people. them. We would like 15 minutes; do it the We do not mind accommodating peo- So, Mr. President, I urge that we just Senator’s way. And we will try to get ple, but it is very difficult for us to take some time to get the amend- our amendments and get them to the make a determination on these things ments, because we do not know what other side. We are having some dif- and get the proper people here the way the Senator from Colorado is going to ficulty because our people did not we are receiving the amendments, or offer, except the question mark. know exactly when they were going to not receiving them, before they are in- Mr. EXON addressed the Chair. come up. We drew some arbitrary lines troduced. The PRESIDING OFFICER. The Sen- on who was in and who was out, which Mr. HELMS addressed the Chair. ator from Nebraska. is tough for some of them. The PRESIDING OFFICER. The Sen- Mr. EXON. Mr. President, may I sug- So, Mr. President, I ask unanimous ator from North Carolina. gest in the interest of an orderly proc- consent that we have a 15-minute Mr. HELMS. I ask for the yeas and ess—I already yielded back 10 minutes quorum call— nays on the pending amendment. of our time, which still holds—there- Mr. WARNER. Will the Senator with- The PRESIDING OFFICER. Is there a fore, I would suggest possibly it might hold? sufficient second? be a good idea to take a 15-minute Instead of the quorum call, could There is a sufficient second. quorum call without being further others address generalities in the October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15789 measure rather than just have a and the course, but each year we will all investors will decrease and this will quorum call put in? This Senator have to make spending decisions that cause more equity funds to become would require about 6 minutes. will keep us on the road that is being available to companies that are in the Mr. DOMENICI. Sure. Sure. defined here today and tomorrow. growth stage. Mr. WARNER. I thank the Chair. During my nearly 17 years as a privi- To illustrate this dynamic, Mr. Presi- Mr. DOMENICI. I ask unanimous leged Member of this body, I have seen dent, consider the following facts. consent that we have 15 minutes with- many instances where unforeseen From 1969 to 1971, there were on aver- out an amendment, divided equally, for spending requirements from hurricanes age 510 new public offerings in this any Senators, half on the other side, to peacekeeping operations have arisen country per year. half on ours, that might want to speak and been funded by the Congress. These From 1972 to 1976, when the effective to the bill, and that it not be charged will surely occur from now until the capital gains rates jumped to just over to anything, because we are getting year 2002 when the deficit is projected 49 percent, only 145 new public offer- very short of time and it is sort of com- to disappear. ings occurred on average each year. bined—our fault for the time. So let us We are now committed to making When the effective capital gains rate not charge it to anyone. our Government live within the fund- fell to 20 percent between 1981 and 1986, The PRESIDING OFFICER. Without ing levels contained in this bill. If the average annual new public offer- objection, it is so ordered. emergencies occur, we will have to off- ings figure jumped to 577. Mr. WARNER addressed the Chair. set their costs with spending reduc- The PRESIDING OFFICER. The Sen- tions. Those budget decisions will be as Between 1987 and 1992, when the cap- ator from Virginia. difficult in the year 2000 as they are ital gains tax rate jumped up again to Mr. WARNER. Mr. President, I have this year. But this package is a com- 28 percent, the number of public offer- been listening with great attention and mitment by the Republican majority ings dropped to only 431. interest to this very important debate and eventually by the entire Congress While some growth in new company on both sides of the aisle regarding the that we will stay the course. formations can be attributed to the Balanced Budget Reconciliation Act of Mr. President, I yield the floor. fact that our economy was growing 1995. CAPITAL GAINS TAX CUTS: A BOOST TO ECONOMIC during those years, one wonders how I am pleased to support the budget GROWTH much more it might have benefited if which follows through on our promise Mr. HATCH. Mr. President, I rise in we had not increased the capital gains to balance the budget by the year 2002, support of the capital gains tax cut tax rate. protect Social Security, and save Medi- provisions in the budget reconciliation Obviously, there is a relationship be- care from threatened bankruptcy. bill that lies before us today. tween the capital gains tax rate and While there has been much debate fo- I would like to focus my remarks on the rate at which new companies start cused on the details of this massive the economic effects that these provi- and grow. package, I would like to address the sions will have on our country. And, because these new and expand- promise to the American people, Mr. President, what often seems to ing companies are fueling most of our present and future, that this bill rep- get lost in all of the debate about cap- job growth—more than 70 percent of all resents. This is not just a budget for ital gains is economics. new jobs are in small business—we can another year. This is not a package of Opponents of the capital gains tax see that lowering the capital gains tax routine legislative changes. This is a cut seem content to promote class war- rate will increase the number of jobs in historic commitment to America that fare while ignoring the economic ef- this country. deficit spending is about to come to an fects of such a change. It seems to me, however, that instead Mr. President, DRI has made three end and has been brought about during of worrying about whether the so- other projections on chart 1. this first year of the Republican major- called rich will pay less in taxes under Because of the capital gains provi- ity in the U.S. Congress. this bill, the most important thing to sions in this bill, we should experience The net result of a balanced budget focus on is how to sustain and boost a 4.1 percent increase in our capital will be lower interest rates for years to economic growth so we can balance the stock, a 5.1 percent increase in fixed in- come and as many as 6 million new budget and create the jobs needed by vestments and a 1.2 percent increase in jobs. The reforms in this bill will give the next generation. labor productivity. the States more control over critical The respected economic forecasting What does capital stock refer to? It entitlement programs that have be- firm of DRI/McGraw Hill has studied refers to our investment in plant, come inflated with the Federal bu- our capital gains tax provisions very equipment, and technology. Even a reaucracy mismanagement of many carefully. Their findings appear on this ditch digger needs a shovel. years. These programs range from Aid chart 1 following this statement. While hundreds of millions of labor- to Families With Dependent Children First, we should note that between ers around the world work for mere to Medicaid. I strongly support these now and 1999, DRI projects that about pennies per hour, how is it that most of initiatives which will let the States de- 600,000 new jobs will be created as a di- our American jobs have not already cide how best to solve and serve the rect result of the capital gains provi- been exported outside of our country? problems associated with their own sions contained in this bill. The answer is capital stock. citizens. Of paramount concern to all of us is We have one of the highest ratios in What is best for Virginia is not nec- the need to expand the job base so that essarily the same as what is best for the world of capital stock per labor no matter where one is on the ladder of hour worked. another State. And this Balanced success, there is opportunity to move Budget Reconciliation Act will move In other words, for each hour a la- up economically. borer works, we have more capital in- more power and money out of Washing- As this chart 2 shows, most of the vested to support that worker in his or ton back to State governments and new job creation taking place in this her job than most of our competitors local communities where it properly, country is provided by new companies around the world. in my judgment, belongs. and those that are in the early phases As a result, on a per capita basis, I have received correspondence from of their growth cycles. many Virginians who support this bill Look at the figures—while large com- American workers are the most pro- because it will both balance the budget panies are in the down-sizing mode, ductive in the world. for the sake of future American fami- small and medium companies are ex- This explains how our country grew lies, particularly our children, Mr. panding. from a predominantly agricultural President, and will pave the way for The expanding companies are not the economy to a predominantly manufac- needed relief for the heavy tax burden long established blue chippers. There is turing and services economy without on our present American families. more risk involved investing in these reducing our agricultural output. When this budget reconciliation bill emerging enterprises than in mature It has been estimated that at the is signed into law, we will not be at the companies. turn of the century, about two-thirds end of the trail, but only at the begin- By lowering the effective capital of the American work force were in ning. We will have identified the path gains tax rates, the risk threshold for farming. S 15790 CONGRESSIONAL RECORD — SENATE October 26, 1995 Today, only about 3 percent of Amer- I very much doubt that this projec- The lighter bars indicate actual real- icans work in farming. Yet, our gro- tion will be accurate, for a couple of izations. Notice, Mr. President, how cery stores and storage facilities are reasons. they drop off and stagnate after 1986 filled to overflowing even though the First, both the CBO and the Joint while the Standard and Poors stock number of mouths to feed has gone up Committee on Taxation have a poor index [S & P Index] continued to rise. and the number of agricultural workers track record in estimating the revenue The dark bars represent what taxable has gone down dramatically. effects of capital gains tax rate capital gains realizations would likely But for this tremendous infusion of changes, as can be seen from this have occurred if they had kept pace capital stock into the equation, our chart. with the S&P Index, as they did before American farmers would probably be In connection with estimated capital the capital gains tax increase. gains realizations for 1991, CBO origi- about as productive and well paid as This helps explain why our capital nally projected realizations of $269 bil- their counterparts in China. gains tax revenues have been so anemic Because of the capital investment lion while the Joint Committee on Taxation projected realizations of $285 since 1986. supporting our workers, we have made After jacking up the top effective their services more valuable which, in billion. In reality, there were only about $108 capital gains tax rate by 40 percent, turn, has prompted higher real wage from 20 to 28 percent, some might have rates here than most other countries in billion worth of realizations for that year. In other words, the CBO was off expected a similar 40 percent increase the world. in capital gains tax revenues. Mr. President, the critical relation- by 60 percent and the Joint Committee on Taxation was off by 62 percent. However, we have only managed to ship between capital stock and real Estimating errors of a similar mag- generate an average of about 64 percent wage rates is illustrated by chart 3. nitude were made for 1990. In this case, per year of the capital gains revenue Note that as our capital stock grows, the Bush Treasury Department pro- received in 1986; 28 percent is clearly real wages increase almost in lock- jected capital gains revenues of $48 bil- higher than the tax rate that maxi- step. Thus, it is critical that we main- lion, while CBO projected $53 billion for mizes capital gains revenues to the tain growth in both capital stock, fixed that same year. Treasury. asset investment, and worker produc- In reality, the revenue only amount- tivity. Mr. President, recent history has ed to $28 billion. The cumulative gap made it clear that there is a direct re- And, as the DRI projections show, the from 1989 to 1992 between the Bush capital gains provisions of this bill will lationship between capital gains tax Treasury’s revenue estimates and what rates and the amount of revenue from do just that. actually was realized totaled $85 bil- Please note, Mr. President, the DRI capital gains realizations received by lion. The CBO was $118 billion off the the Treasury. projection in chart 1 that our collec- mark over the same period. tive cost of capital will drop by 8 per- The problem is that the economic Experience shows that reducing the cent as a result of the capital gains tax models used by CBO, the Joint Com- capital gains tax rate actually in- reductions in our bill. mittee on Taxation, and the Treasury creases government revenues. Many believe that our relatively high do not adequately take into account Consider the period from 1978 to 1985. cost of capital is a critical area of U.S. the macroeconomic feedback effects On November 1, 1978, the top capital weakness when competing in the inter- caused by changes in the capital gains gains rate dropped from an effective 49 national marketplace. tax rates. percent to 28 percent. It fell again in Thus, in passing a capital gains tax This explains the wide divergence be- the middle of 1981 to 20 percent. reduction, we can take a meaningful tween their projections and reality. Rather than experiencing a similar step today toward narrowing this criti- It is a fundamental law of economics reduction in capital gains revenue, as cal competitive gap and helping all that people respond to incentives. If we some might predict, we saw the sharp- Americans in the process. tax a good or service more, people buy est increase in such revenues since It should go without saying that or produce less of it. If we tax capital World War II. growth in our collective standard of more, we get less. Annual capital gains tax receipts living depends upon growth in our If we lower the tax on capital, we will grew from $9.1 billion in 1978 to $26.5 gross domestic product. create more of it. billion in 1985. For years, the revenue estimating Mr. President, a 1.4 percent increase In other words, at the same time we in GDP in the DRI projections con- agencies of the Federal Government have failed to adequately account for experienced a 59 percent decrease in tained in chart 1 might not seem like the top capital gains tax rate, our an- very much, but when applied to a $7 the feedback effects of taxation. DRI has included these feedback ef- nual capital gains tax revenues in- trillion economy, we are talking about fects in its estimate. creased by 191 percent. an additional $100 billion of growth. As the DRI study indicates in chart 1, Mr. President, some of my colleagues As can be seen from this chart 4, Mr. rather than the loss projected by the on the other side of the aisle are, in ef- President, we treat capital gains more Joint Committee on Taxation, we fect, saying that no tax benefits should punitively than most of our major should actually experience at least a go to the so-called wealthy. international competitors. $12 billion increase in Federal revenues This is ludicrous. How do we expect We can also see why the competitors over the next 10 years. to attain the economic objectives that in the Far East are gaining on us. We Personally, I believe this estimate to we all are seeking if the wealthy stay need to respond to this challenge in be on the conservative side. I believe a on the sidelines as mere spectators, order to enhance our international 50-percent capital gains deduction will rather than as active participants? competitive position. unlock the floodgates of capital gains Mr. President, much has been said Some of my colleagues seem to hold realizations. that no matter how beneficial a certain about the wisdom of lowering capital There is an estimated $8 trillion in course of action is to the economy and gains taxes at a time when we are try- unrealized capital gains in this coun- to average Americans, that action is ing to balance the budget. try. Even if this bill only unlocks a totally unacceptable if the rich get any In my opinion, tax cuts and bal- small percentage of this vast mountain benefit from it. ancing the budget are not mutually ex- of capital, we will have unleashed a clusive, especially in the area of cap- tremendous force for growth in our Abraham Lincoln once observed that ital gains. economy. you cannot help the weak by weaken- Before the Hatch-Lieberman capital With the benefit of hindsight, it is ing the strong. gains proposal underwent minor easy to see that we made a serious mis- Likewise, we cannot help all Ameri- changes in the Senate Finance Com- take in raising the effective tax rates cans by punitively taxing wealth. Our mittee, the Joint Committee on Tax- on capital gains after 1986. progressive income tax already does a ation projected that it would result in Chart 5 shows the foregone realiza- good job of that. about $89 billion in lost Federal reve- tions that we missed by the 1986 capital Trying to craft a set of incentives nues over 10 years. gains tax increase. that exempts from coverage the very October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15791 people whose conduct is critical to the Answer: New Companies and Those in the to the United States and its territories. attainment of our economic goals just Early Stages of Expansion: In recognition of the impact which this will not work. Small Companies: Added 1.6 million net immigration would have on social serv- By giving an across-the-board capital jew jobs in 1993; and 25% job growth per year from 1989 to 1993. ices, particularly in Guam, section gains tax deduction to everyone alike, Large Companies: Industries dominated by 104(e)(6) of Public Law 99–239 authorizes we will encourage an efficient reallo- large companies had a net decrease of 200,000 compensation to assist in offsetting cation of resources in such a way as to jobs in 1993; and Fortune 500 companies lost the negative impacts of immigration stimulate economic growth for all about 3% of their jobs from 1989 to 1993. under the compacts. Americans. Comparative capital gains rates Third, economic development in re- As I mentioned earlier, at stake in Percent mote American Samoa is still unable all of this is about $8 trillion of locked- United States ...... 28 to generate sufficient revenue to meet in capital gains, which if unlocked, Japan ...... (1) would produce substantial revenue France ...... 18.1 all of the territory’s basic needs. Of Germany ...... 0 greatest concern is the Environmental gains to the Treasury, as well as create South Korea ...... 0 more jobs and economic growth for all Protection Agency’s estimated $30 mil- Taiwan ...... 0 lion backlog in waste water construc- Americans. Singapore ...... 0 Let me close Mr. President, with a tion. If these projects are not under- Lesser of 1 percent of gross sale price of 20 percent taken, then the community will face real-life example that indicates that of gain. an increasing risk of contamination of all of the economic principles I have U.S. AFFILIATED INSULAR AREAS its groundwater, as well as destruction talked about actually work and are not Mr. AKAKA. I would like to engage just theories that sound good. in a colloquy with the chairman and of its protective and productive sur- As a division of a major parent com- ranking member of the Committee on rounding coral reefs. In addition, pany, Sungard Data Systems had $30 Energy and Natural Resources, and my American Samoa’s hospital facilities million in annual sales but was losing good friend, the senior Senator from are nearing the end of their useful life. money. Hawaii, on a matter of very great con- The Department of the Interior and the The parent company decided to sell cern to me—a provision in the House Army Corps of Engineers estimate ren- this division. Venture capitalists be- reconciliation bill that is inconsistent ovation or replacement costs for lieved that they could turn things with House and Senate Appropriations healthcare facilities to be between $20 around and return Sungard to profit- Committee actions and would elimi- and $60 million. ability. The new buyers were correct. nate our ability to meet some of the Finally, the fourth obligation facing After the sale, the new management most basic needs in the U.S. affiliated the Federal Government with respect generated over $440 million in revenues insular areas. to the islands is fulfilling our commit- and about $70 million in operating in- What the House Subcommittee on ment to the CNMI. In 1992, the previous come. Native American and Insular Affairs administration and representatives of What used to be a 400-employee divi- has proposed, and the House has ac- the CNMI reached an agreement under sion before the sale turned into a 2,400- cepted, may appear to many to be rel- which the Federal Government would employee company after the sale. This atively noncontroversial—the repeal of provide $120 million in financial assist- represents a 500-percent increase in a $27.7 million mandatory annual ap- ance to the CNMI, to be matched by jobs. propriation to the Commonwealth of $120 million from the CNMI, to meet Did the rich venture capitalists get the Northern Mariana Islands [CNMI] the capital infrastructure needs of richer from all of this? Of course they for infrastructure improvement their rapidly growing population and did. But most importantly, 2,000 people projects. The reality, however, is that economy. From 1993 to 1995 much of had good jobs that did not exist before. this recommendation would wreck—be- these funds were provided to the CNMI This is the way our economy has al- fore it can even be implemented—a under the mandatory appropriation es- ways worked. carefully negotiated bipartisan, bi- tablished by section 702 of Public Law This is America, where it is possible cameral agreement made by the Con- 94–241, the Covenant to Establish the to create wealth for oneself by invest- ference Committee on Appropriations Commonwealth of the Northern Mari- ing one’s sweat, one’s brains, and tak- for Interior and Related Agencies. anas. However, $77 million remains to ing a risk. By so doing, the risk taker After outlining the facts in this case, be paid under the agreement. creates wealth and opportunity for I would hope and urge that the Senate Given the extreme pressure on the those around him or her. conferees conclude that this proposal is budget, how were these needs and obli- Now is not time to abandon the eco- misguided and must be rejected. gations to the islands to be met? For- nomic principles that made this coun- In the administration’s budget re- tunately, the administration proposed try the greatest economic powerhouse quest it was recognized that the needs a solution which would allow the ap- the world has ever known. of the Commonwealth of the Northern propriations committees to avoid the Mr. President, I urge all of my col- Mariana Islands for Federal financial nearly impossible task of meeting leagues to vote in favor of the tax assistance were decreasing due to local these needs through large annual dis- package reported out of the Finance economic growth. Therefore, the level cretionary appropriations. The pro- Committee. of financial assistance could be de- posal, contained in the Insular Devel- Mr. President, I ask unanimous con- creased. However, the Administration opment Act (S. 638), was to reallocate sent that items referred to above be in- and the Appropriations Committees the CNMI’s $27.7 million mandatory an- cluded in the RECORD. also recognized that there continue to nual appropriation to meet needs There being no objection, the mate- be significant future needs and obliga- among all of the islands. The Energy rial was ordered to be printed in the tions to be met in other island insular Committee held a hearing on this bill RECORD, as follows: areas. September 1995 DRI/McGraw Hill study The first of these other obligations is on May 25, 1995, and the full Senate projects the specific economic benefits that fulfilling the intent of section 103(i) of passed the bill on July 20. The Office of will result from a 50 percent capital gains de- Public Law 99–239, the Compact of Free Management and Budget and the House duction as follows: and Senate Appropriations Committees 150,000 new jobs created each year from Association Act of 1985, which obli- gates the United States to undertake supported the proposal because it 1997–2000. would allow for significant discre- 4.1 percent increase in capital stock. radiation mitigation measures and to 5.1 percent increase in fixed investment resettle the people of Rongelap who tionary savings. over 10 years. were irradiated during the United In short, there is a solution to a set 1.2 percent increase in labor productivity. States’ nuclear testing program in the of difficult problems. The administra- 8 percent reduction in the cost of capital. 1.4 percent increase in GDP over 10 years. Marshall Islands. tion’s original concept was adopted and $12 billion increase in federal tax revenues Second, Public Law 99–239 also au- modified to specify priorities and fund- over 10 years. thorizes immigration from the former ing levels among these needs. It was Who Generates the New Jobs? Trust Territory of the Pacific Islands then agreed to on a bipartisan basis by S 15792 CONGRESSIONAL RECORD — SENATE October 26, 1995 the Conferees on Interior Appropria- U.S. SENATE, Chairman. tions, who could now also agree to COMMITTEE ON ENERGY AND Mr. MURKOWSKI. Let me also reas- eliminate discretionary funding to NATURAL RESOURCES, sure my colleague of my strong desire meet these needs. Washington, DC, July 25, 1995. Senator SLADE GORTON, to see that our agreement, as set forth Mr. President, it is with the greatest Chairman, Subcommittee on Interior and Relat- in the Appropriations conference re- disappointment that I view the House ed Agencies, Committee on Appropriations, port, not be undermined by the House recommendation to repeal the CNMI Washington, DC. reconciliation proposal which con- mandatory appropriation. This pro- DEAR MR. CHAIRMAN: We are writing to you tradicts that agreement. posal completely wrecks the carefully concerning the funding for the Department Mr. AKAKA. I thank the Chairman of the Interior’s responsibilities for terri- crafted policy to meet the public tories and insular areas, including the freely for his reassurance. Mr. President, fi- health needs of Samoa, fulfill our com- associated states. We are concerned over the nally I would like to ask the Senior mitment to the CNMI, compensate action taken by the House in eliminating Senator from Hawaii, for his support Guam for the negative social impacts funding for staffing and for very important on this matter. resulting from compact immigration, programs, such as technical assistance, oper- Mr. INOUYE. The Senator is correct. and to acquit ourselves with respect to ations and maintenance improvement, insu- It comes as a great disappointment to our commitments to the nuclear test- lar management control, and disaster assist- me that just as the United States was ance. Each of these programs, while rel- ing victims of Rongelap Atoll. atively small, have proved to be of critical finally coming to a resolution on how I would like to call on my good importance in assisting the various island to meet its obligations on these issues, friend, the Senior Senator from Louisi- governments. We understand that both the the House has proposed to repeal the ana and the ranking member of the Departments of Defense and the Interior source of funding that had been agreed Committee on Energy and Natural Re- have also expressed their concern over this upon. sources, to confirm my presentation of action. I stand with my colleagues on the au- The elimination of the salaries for all staff thorizing and appropriations commit- the facts in this matter. is perplexing. Including the FY ’95 appropria- Mr. JOHNSTON. The Senator is abso- tion, there are over $900 million in funding tees in urging that the Senate insist on lutely correct. The provisions of the In- for the territories and freely associated its position in conference—that the terior conference report were the result states that the Department of the Interior is CNMI’s mandatory funding be pre- of weeks of careful bipartisan effort. As responsible for. The Department has reorga- served in order to implement the bipar- nized and placed responsibility under the As- tisan, bicameral agreement to reallo- ranking member of the authorizing sistant Secretary for Policy, Management committee I have been familiar with cate these funds as set forth in the In- and Budget. As part of that reorganization, terior Appropriations conference re- each of these issues for many years and the core permanent staff has been reduced have shared with the Senator from Ha- from 45 to 25. We believe that the staffing port. waii the frustration of trying to find a level should be kept to the minimum nec- Mr. AKAKA. I thank my colleagues solution. This is why I joined with my essary to enable the Secretary to fully dis- for their support in ensuring that the chairman, the senior Senator from charge his responsibilities. We have strongly Senate position prevails on this issue. Alaska, in writing to the chairman and suggested that they give serious consider- Mr. KEMPTHORNE. Mr. President, I ation to using at least a portion of the sav- ranking member of the Interior Appro- rise today in strong support of passage ings to obtain details from other agencies to of the Balanced Budget Reconciliation priations Subcommittee urging that enhance the Department’s ability to deal the administration’s proposal, as modi- with problems in the islands and to reduce Act of 1995. This is not only good legis- fied and reported by the Committee on the need for permanent staff. We expect that lation. It is historic legislation. For Energy and Natural Resources, be in- further adjustments will be made in the fu- the first time, in a long time, Congress cluded in the Interior appropriations ture as the responsibilities of the Secretary has the opportunity to vote for a truly bill. change. The expected efficiency and greater balanced budget—not just a theory, not emphasis on technical and financial manage- I have been dealing with territorial just rhetoric but an action plan to real- ment assistance to the areas will be com- ize the goal that many thought impos- issues since I first came to the Senate pletely frustrated by the House action. in 1972, and I can assure my colleagues We do not see how the reductions proposed sible. that although these islands are small by the House can be supported. As you may Only once in the past 30 years has the and remote, their needs are just as real be aware, the Senate has passed S. 638, which Federal Government had a balanced in part would redirect the permissible uses of as those of the States. We have respon- budget. Every other year we ‘‘deficit that portion of the current entitlement for spent’’ our way toward a national debt sibilities to U.S. citizens and nationals the Northern Marianas not needed to meet and citizens of the former Trust Terri- that now stands at nearly $5 trillion the 1992 Agreement on future funding so that dollars. That is $19,000 of debt for every tory that we simply cannot turn our the excess could be used for long-term infra- backs on. After three long years we structure planning. Those funds would also man, woman and child in the United have finally come up with a solution to provide the ability to meet United States re- States. Because the interest on the meet four of our most pressing prob- sponsibilities in areas such as assisting in debt is threatening to consume ever lems in the islands. I simply cannot un- the resettlement of Rongelap. In part, the larger portions of the budget, this na- Committee felt that this action would in- derstand how the House justifies its tional debt is currently one of the crease the flexibility of the Appropriations greatest threats to our children’s fu- proposal, which would ignore these re- Committee to address critical needs such as sponsibilities and commitments. ture. financial management. Enactment of that For the fiscal year that ended on Let me reassure my colleague from provision would also provide a significant September 30 the Federal Government Hawaii that I will do all that I can to portion of the infrastructure funding for ran a deficit of $161 billion. If nothing ensure that the Senate position pre- American Samoa needed to meet critical is done, and we don’t change our spend- vails on this matter. health and safety concerns. Given the in- creasing pressures on the budget, we see no ing habits, that deficit will rise to $256 Mr. AKAKA. I thank my good friend alternative other than reallocation of the ex- billion by 2002. We must stop borrowing and would also like to ask the chair- cess CNMI funding if essential needs are to from the future and learn to live with- man of the Committee on Energy and be met. in our means. This budget reconcili- Accordingly, we urge you to reject the ac- Natural Resources, whether my under- ation bill gives us the blueprint to ac- standing on these matters is correct. tion taken by the House in eliminating fund- ing for staff and for essential programs for complish that task. Mr. MURKOWSKI. I agree with the the insular areas. If you agree with the ac- While the American people made it Senator’s statement. In fact, I ask tion taken by the Senate with respect to the clear that they wanted the Federal unanimous consent that the letter sent use of excess funding for the Northern Mari- budget balanced, they also made it by our Committee to the Interior Ap- anas, we suggest that you seriously consider clear that they wanted meaningful tax propriations Subcommittee requesting adopting such a provision as part of the Ap- relief. The Republican leadership heard the adoption of S. 638 be printed in the propriation measure. that message loud and clear. Besides Sincerely, RECORD at this point. J. BENNETT JOHNSTON, balancing the Federal budget by the There being no objection, the letter Ranking Minority year 2002, the Reconciliation Act of was ordered to be printed in the Member. 1995 provides the biggest tax cut in his- RECORD, as follows: FRANK H. MURKOWSKI, tory—more than $245 billion. Of October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15793 these cuts 84 percent go to those mak- for-service. I believe this is outrageous. choice. It lets them, rather than the ing less than $100,000 and 70 percent go To tell people in this country that they Government, decide how one will re- to those making less than $75,000. may not provide for their own health ceive health care. I believe this Na- These tax cuts are real, significant tax care as they see fit violates the basic tion’s senior citizens can make those relief for the families of America. For principles of freedom for which so choices. example: many of our seniors fought and sac- In addition, the spending reductions A $500 per child under 18 tax credit for cou- rificed. Some have claimed seniors included in the Medicare reform pack- ples earning $110,000 or less annually. have all the choice they need, but that age are not, and I will repeat this, are 20 percent credit of interest paid on stu- is simply not true. When older people not, related to a tax cut. The bill ex- dent loans up to $500 per year, per borrower, are turned away from a health care for couples with an adjusted gross income of plicitly states that savings generated $60,000 or less. provider’s office because the provider from reforming the Medicare system Raising the income limits for eligibility no longer wishes to struggle with the may not be used for any purpose other for IRA’s by $5,000 annually until they reach regulations and bureaucracy surround- than saving and preserving the Medi- $100,000 for couples and $85,000 for singles and ing the Medicare Program, they have care system. Whether or not we adopt indexing for inflation and creating a $2,000 no choice. This must simply change. any tax cuts, we need these savings to IRA for homemakers. So what kind of choice will seniors preserve the system for current and fu- Capital gains reform that deducts 50 per- get to make? Under the Republican cent of the gain for individuals that have ture recipients. owned property at least 1 year, which effec- proposal they can stay enrolled in the Finally, to those who say smaller tively lowers the tax rate to 19.8 percent A current Medicare program. Those wish- savings would be sufficient, I would ask reduction of the corporate rate on tax gains ing to go beyond the present system them to define ‘‘sufficient.’’ While the to 28 percent. Both changes are effective 10– may choose from traditional fee-for- Democrat’s proposal would prevent the 13–95. service indemnity health plans—(just system from going bankrupt in 2002, as Estate tax reforms that will allow more like many of them had before retire- Americans to continue operating family it is currently on a pace to do, it would ment), coordinated care plans, and allow the system to fail only 2 years owned business after the death of the pri- high-deductible health plans with med- mary owner/founder. The first $1.5 million in later. This attitude of ‘‘put it off until value of family owned businesses and farms ical savings accounts, also known as it is someone else’s problem’’ is pre- are exempt from tax and the tax on the next MSAs. In addition, the Medicare re- cisely why the United States is in the $3.5 million is reduced by 50 percent. form plan allows future enrollees to se- economic mess it is. As the Medicare These tax cuts are both responsive lect from yet unforeseen health options trustee’s said, ‘‘prompt, effective, and and responsible solutions to the exces- as they become available, provided the decisive action is necessary.’’ Simply sive taxation that is stealing the finan- plans meet minimum Federal stand- delaying the inevitable is not a solu- cial independence from American fami- ards. This, I would say to my col- tion. leagues, is the kind of choice most lies across this country. I was pleased to note that my home- Americans already have. Do our senior The Medicare portion of the budget town newspaper, The Idaho Statesman, citizens deserve any less? reconciliation package is, in every shares this view. In a recent editorial The Medicare reform plan we are de- sense of the word, true reform. It takes the newspaper stated, ‘‘Without enor- bating also addresses another issue, the current system, which is so obvi- mous changes like those proposed by fraud, which Idahoans have told me ously flawed and damaged beyond sim- the GOP, the program will go broke should be one of the primary focal ple Band-Aid fixes, and transforms it soon after the turn of the century.’’ points of any reform effort. I am into something which will truly work. The editorial went on to say, ‘‘some- pleased our plan takes serious efforts It will work not only to meet the body finally has the courage to begin to reduce health care fraud and abuse. health care needs of current and future fixing what’s been broken for a long Specifically, the bill provides for the senior citizens, it will work to allow time.’’ the marketplace, and therefore the establishment of coordinated efforts by Since before I first came to the Sen- people, to shape the future of health Federal, State, and local law enforce- ate, Idahoans have told me they want care. ment officials to combat fraud. The bill We all know the level of political also instructs the Secretary of Health Congress to face the important issues rhetoric which has surrounded the and Human Services to exclude individ- head on, to try to set this country on issue of Medicare reform. The fact re- uals convicted of health care fraud solid economic footing. The Medicare mains, however, unless something is from receiving payments under Medi- reform plan which the Senate Finance done, and done soon, Medicare will go care and Medicaid. Furthermore, the Committee approved does just that. It bankrupt. This is not a political issue. reform package would establish a new will not be easy, and it will not be This is not a matter of just whether or criminal statute, with specific criminal painless, but it will achieve our goals. not Republicans want to change the penalties, and would also increase fines It will correct the financial difficulties system. It is a question of whether or and civil penalties for health care the program faces, bring the effi- not we have the courage to make the fraud. ciencies of the market into play, and tough decisions needed to save the sys- With expanded choice and reduced give senior citizens the freedom to tem. Simply delaying the pending fraud, one must wonder why there is so choose. bankruptcy for a couple of years will much opposition to our Medicare re- The Idaho Statesman’s editorial not be sufficient. We have had enough form plan. I believe it stems from fear ended with the following statement, of that attitude. It is time to stand based on misinformation. In an at- ‘‘The numbers clearly show that Medi- firm and to stop avoiding the difficult tempt to set the record straight, I care, which served one generation well, decisions before us. I believe the Re- would like to take this opportunity to cannot serve the next one without sig- publican Medicare reform package does point out what the reform package nificant reform.’’ The Republican pack- just that. does not do. age is just that, significant, and seri- The contents of the Medicare reform First, this proposal does not cut Med- ous, reform. proposal have been significantly mis- icare. Under the Republican plan, Med- The Finance Committee has also represented. I believe it is important to icare will continue to grow by 6.4 per- used this bill as a vehicle to redirect point out what the measure reported cent each year. Over the next 7 years, and energize the earned income tax out of the Finance Committee does. expenditures for Medicare will grow by credit. The EITC is a well-conceived The first thing the plan does is pro- nearly $2,000 per recipient. Only in and well-intended program designed to vide choice. For too long we have told Washington could a $2,000 increase in encourage work over welfare for low- this Nation’s senior citizens that they payments per person be labeled, by income families. Unfortunately this may not have a choice. When they turn some, as a cut. worthy intent has been lost in what 65, they are placed on Medicare, wheth- The GOP plan also does not force has become the fastest growing entitle- er they want it or not. Until recently, people to give up Medicare or to join ment program we have. Just since 1986 only a few were even allowed to choose managed care organizations. As I stat- it has grown from 7 million families re- managed care options instead of fee- ed before, the plan offers seniors a ceiving an average of $281 to 18 million S 15794 CONGRESSIONAL RECORD — SENATE October 26, 1995 families receiving an average of $1,265. The ability of financial institutions Budget Reconciliation Act puts us on The EITC no longer benefits only fami- to be shareholders of an S corpora- track to accomplish those objectives. lies with children but provides benefits tion’s stock, which is often a critical Mr. President, I support the Balanced to both individuals and families with- element of obtaining financing for cor- Budget Reconciliation Act of 1995. I out children. porate growth; and vote yes for reducing the deficit. I vote The Senate proposal redirects the The ability of all members of a fam- yes for controlling the growth of Gov- EITC back to the truly needy, reduces ily to be counted as a single share- ernment spending. I vote yes for our the potential for fraud and abuse and holder of an S corporation, since fam- families by reducing their tax burden. I puts money where we need it, in the ily-owned S corporations are fre- vote yes for restoring the economic fu- hands of low income families with chil- quently stifled as they continue to ture of our Nation. Therefore, I will dren. We will increase spending on the grow from one generation to the next. vote yes for this bill and encourage my intended beneficiaries at the same time I hope that these issues will be on the colleagues to do likewise. we save the taxpayers more than $32 table for discussion, and that my col- Mr. EXON. Mr. President, I suggest billion. leagues will be willing to help S cor- the absence of a quorum. I ask my colleagues to join me in porations—most of which are small The PRESIDING OFFICER. The supporting the Balanced Budget Rec- and/or family owned businesses—be clerk will call the roll. onciliation Act. It is good, smart legis- more effective competitors in the mar- The legislative clerk proceeded to lation that demonstrates to the Amer- ketplace. call the roll. ican taxpayer that Republicans are se- Mr. HATCH. Mr. President, I under- Mr. COHEN. Mr. President, I ask rious about changing the business as stand the concerns of my colleague unanimous consent that the order for usual attitude in Congress. from Arkansas, and also hope that we the quorum call be rescinded. S-CORPORATION REFORM will be able to resolve these and other The PRESIDING OFFICER. Without Mr. PRYOR. Mr. President, as many critical issues in conference. I will be objection, it is so ordered. of my colleagues are aware, there are a working closely with Senator PRYOR in Mr. COHEN. Mr. President, I was number of tax issues of significant im- the coming weeks on these very impor- here listening to the distinguished Sen- portance to the 1.9 million American tant legislative objectives. ator from South Carolina talking a mo- businesses that are S corporations that Mr. WARNER. Mr. President, seeing ment ago. As always, I am impressed did not get resolved during the Finance no other Senators seeking recognition, with his vigor, vitality, and enthu- Committee markup last week. Many of I suggest the absence of a quorum. siasm and, indeed, his stamina. those issues—which include the current The PRESIDING OFFICER (Mr. BEN- I also found myself in agreement law’s severe limitations on capital for- NETT). The clerk will call the roll. with much, if not most, of what he was mation, growth, corporate streamlin- The assistant legislative clerk pro- saying. I agree that we should vote yes ing, family business planning, estate ceeded to call the roll. on deficit reduction, and I see my planning, and tax simplifaction—are Mr. THURMOND. Mr. President, I friend from New Mexico here. I want to addressed in a bill I introduced earlier ask unanimous consent that the order tell him how much I admire him per- this year with my colleague from Utah, for the quorum call be rescinded. sonally, the job he has done and the Senator HATCH. That bill, S. 758, the S The PRESIDING OFFICER. Without work that he has put in over the years Corporation Reform Act of 1995, has objection, it is so ordered. on the Budget Committee, the years he the bipartisan cosponsorship of a third Mr. THURMOND. Mr. President, I has spent dedicating himself to budget of the Senate. rise in support of the Balanced Budget reductions and trying to achieve a bal- While it is unfortunate that none of Reconciliation Act of 1995 which, for anced budget for this country. So I do the provisions of S. 758 were included the first time in many years, controls not want him in any way to regard the in the bill reported by the Finance entitlement spending, restrains the comments I might make in the next Committee and made part of the Budg- growth of Government and eliminates few moments as being in derogation of et Reconciliation Bill that is before us, annual deficits. my respect and admiration for him. I am pleased to note that many of What a refreshing contrast this bal- I agree with what Senator THURMOND these provisions were included in the anced budget reconciliation bill is to said; we have to vote yes on deficit re- tax bill passed by the House Ways and the budget proposals submitted over duction. I believe that. I believe we Means Committee. the past 2 years by the President. have to vote yes on cutting spending. I Mr. HATCH. Mr. President, I, too, Those budgets enacted the largest tax believe we have to vote yes on reform- share the concerns of my colleague increase in history, contained no plan ing programs which have heretofore from Arkansas and see S corporation to balance the budget, significantly in- been regarded as untouchable, being reform as an important step in helping creased the national debt, failed to re- third rails we cannot touch. I think we this nation’s S corporations stay strain growth in nondefense Govern- have reached the point in our history competive and grow. I firmly believe ment spending and proposed dangerous where we have to look at virtually that S corporation reform is long over- reductions in national defense spend- every program and not decide that any due, and hope that we can work ing. of them are immune from reform, from through the conference process and Mr. President, the Balanced Budget trimming, from cutting, maybe even during the rest of this legislative ses- Reconciliation Act of 1995 reverses di- elimination. sion, not simply to adopt the key S rection on those policies which are But there are other items in this corporation simplification provisions strapping our economy and burdening package that I do not support. I do not that have already been included in the all Americans with an overwhelming support drilling in ANWR. I do not sup- House bill, but also to address and in- national debt. port opening that up. I do not, frankly, clude several additional provisions that I remind my colleagues that the na- support calling for tax reductions at a are critical components of S. 758. tional debt now stands at over $4.9 tril- time when we are calling for deep budg- Mr. PRYOR. Mr. President, I agree lion. Outlays for interest on the public et cuts. For me, it is the equivalent of with my colleague from Utah. Specifi- debt is well over $300 billion per year, putting our foot on the brake and put- cally, I believe that it is very impor- exceeding outlays for any other Gov- ting our foot on the pedal at the same tant that we extend the S corporation ernment Department or program, ex- time. It is a personal decision on my reform initiative in the budget process cept Social Security. part. I feel that I can support virtually to include all the items in the House Furthermore, failure to adopt this all the cuts that are necessary to bill, as well as such provisions as: reconciliation act will result in annual achieve a balanced budget by the year The ability of S corporations to issue deficits exceeding $200 billion for as far 2002. preferred stock and general convertible as can be projected. That is not an ac- I was pleased to hear President Clin- debt; ceptable alternative. We must reduce ton indicate that he, No. 1, believes we The ability of S corporations to form Government spending. We must elimi- should strive for a balanced budget. ESOPs, so their employees can share in nate these annual deficits, and we must Initially he said 10 years, then it was 9 the success of the business; reduce the national debt. The Balanced years, and now I believe it is even 7 October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15795 years. I think that is quite a conces- AMENDMENT NO. 2969 evenhandedly, fairly; it was not applied sion on his part, that he agrees that we (Purpose: To provide that the $1,000,000 limit to everybody who had a salary in ex- ought to have a balanced budget within on deductibility of compensation paid to cess of a million dollars; it was only a 7-year timeframe. an employee is extended to employees of applied to a special few. So the sugges- all businesses, and to use the resulting rev- tion of the first half of this amendment The dilemma that I face is like that enues to reduce the Social Security earn- of several other of my colleagues. This ings penalty) is simply to be evenhanded and apply that same limitation to employees of may be the only vehicle to date that Mr. BROWN. Mr. President, I send an all businesses. Again, the tax is on the we have for achieving a balanced budg- amendment to the desk and ask for its business, not on the employees. et by the year 2002. This may be only immediate consideration. part of the process that is underway. The PRESIDING OFFICER. The Mr. President, I might say two im- portant things here. We have not This may be act II of a three-part clerk will report. changed any of the exceptions to this drama that has to be played out that The legislative clerk read as follows: provision. In other words, included in was initiated by the Contract With The Senator from Colorado [Mr. BROWN], it was a provision that allowed incen- America, as being part one in its adop- for himself, Mr. ABRAHAM, Mr. SANTORUM, tive payments, and so on. None of that tion, and part two being our delibera- Mr. MCCAIN, and Mr. CRAIG, proposes an amendment numbered 2969. has been changed. tions and debate, and, ultimately, votes here in the Senate and con- Mr. BROWN. Mr. President, I ask In addition, included here is a provi- ference with the House, to present a unanimous consent that reading of the sion that prohibits them from being package that will be sent to the Presi- amendment be dispensed with. retroactive. That is, if you have an em- dent that most, if not all, of us antici- The PRESIDING OFFICER. Without ployment contract signed prior to pate will be vetoed by the President be- objection, it is so ordered. today, that is valid and not affected by cause it does not include some of his The amendment is as follows: this provision. But it does raise, ac- priorities. That may be act II. At the end of chapter 8 of subtitle I of title cording to the preliminary estimates XII, insert the following: we have, $800 million. That $800 mil- Ultimately, we have to come to act SEC. . $1,000,000 COMPENSATION DEDUCTION lion, according to the amendment, is III, which is where we sit down with LIMIT EXTENDED TO ALL EMPLOY- then used to ameliorate the impact of the President and work out our dif- ERS OF ALL CORPORATIONS. the penalty on Social Security tax. (a) IN GENERAL.—Section 162(m) is amend- ferences—again, being committed to a As I think Senators are well aware balanced budget by the year 2002. ed— (1) by striking ‘‘publicly held corporation’’ right now, above the threshold level a So I will listen with some interest as in paragraph (1) and inserting ‘‘taxpayer very high tax is placed on Social Secu- we proceed throughout the evening and (other than personal service corporations)’’, rity recipients, many of whom are not into tomorrow as to whether or not I (2) by striking ‘‘covered employee’’ each wealthy at all, but are low-income or can support the final package. But I in- place it appears in paragraphs (1) and (4) and middle-income and struggling, and dicate today, as I did last evening, I inserting ‘‘employee’’, and (3) by striking paragraphs (2) and (3) and they are put into a very difficult pen- think it is inappropriate that we have redesignating paragraph (4) as paragraph (3). alty situation. So this is a net, even massive tax reductions at a time when (b) EFFECTIVE DATE.—The amendments with regard to tax revenue to the Fed- we are trying to balance the budget made by this section shall apply to taxable eral Government. and cut the deficit to achieve a bal- years beginning after December 31, 1995, ex- What it does is take that $800 million anced budget by the year 2002. And so I cept that there shall not be taken into ac- that will be raised and use it to offset intend to support various amendments count with respect to any employee to whom the earnings penalty. It will not elimi- that will be offered. section 162(m) of the Internal Revenue Code of 1986 applies solely by reason of such nate the Social Security earnings pen- I may, in fact, offer an amendment to amendments remuneration payable under a alty. My guess is it will only have a strike the tax cuts in their entirety. written binding contract which was in effect small affect on it. It will only increase But it may be that that matter has al- on October 25, 1995, and which was not modi- the threshold a small amount of ready been debated long enough on the fied thereafter in any material respect before money. But that amount of money will Senate floor. It is my personal judg- such remuneration is paid. go to working men and women, who re- ment that we ought to do everything (c) USE OF REVENUES.—Notwithstanding tire without adequate resources and any other provision of law, the Commis- we can to make the reductions that we sioner of Social Security shall increase the need that money and need to work to have long deferred in making, that we earnings limit otherwise determined for each make their household expenses fit. ought to do it within a 7-year time- year under section 203 of the Social Security In my view, it is an excellent trans- frame, that we should support our Act (42 U.S.C. 403) by an amount which takes fer. It applies even tax philosophy to chairman in his efforts for what he has into account the increase in revenues for those who receive over a million dol- done to produce that. such year as estimated by the Secretary of lars in compensation. It provides the Treasury resulting from the amendment But I must say, Mr. President, that I evenhandedly and uses the money to to section 162(m)(3) of the Internal Revenue ameliorate that Social Security earn- have great reservations about calling Code of 1986 made by the Balanced Budget for substantial tax reductions at the Reconciliation Act of 1995. ings penalty that is so burdensome for so many working people. same time we are asking for substan- Mr. BROWN. Mr. President, this is a tial cutbacks in programs. very straightforward amendment, and Mr. President, I reserve the remain- der of my time. So I will listen with interest as we it deals with an area this Congress leg- proceed throughout the evening and to- islated on in 1993. Mr. EXON addressed the Chair. morrow. But I indicate my great admi- In 1993, Congress passed a tax provi- The PRESIDING OFFICER. The Sen- ration and respect for Senator DOMEN- sion that placed a limitation of a mil- ator from Nebraska. ICI and the effort he has undertaken to lion dollars on the deductibility for Mr. EXON. Mr. President, we have re- produce a reconciliation package that, publicly held corporations. The limit of viewed the amendment and checked it perhaps, is only part two or act II of a million dollars was on the amount with the Finance Committee sources. I the three-act drama that has to be they could deduct on the salary of an am prepared to yield back the full 5 played out. employee of that corporation. minutes in order to move this thing I might say, just in retrospect, that along. Once again, I would like to take The PRESIDING OFFICER. The 15 statute had other provisions. In other the opportunity to thank the chairman minutes called for under the previous words, it was possible to earn over a of the committee for his diligence and order has expired. million dollars and have it deductible consideration, in allowing a 15-minute Mr. DOMENICI. Parliamentary in- but only if it was incentive pay or fit discussion period when we worked this quiry, Mr. President. Is Senator into other provisions. So it is not an out. BROWN’s amendment before the Senate, absolute limitation. But that limita- Let me say this. We have unneces- on which he has 5 minutes? tion, in this Senator’s view, was some- sarily delayed the process here, The PRESIDING OFFICER. The Sen- what limited and deficient. It was defi- though, because both sides have not ator needs to call that amendment up. cient in that it was not applied been as forthcoming as I think we S 15796 CONGRESSIONAL RECORD — SENATE October 26, 1995 should be—or that we intend to be, for If you have followed the hearings Going after fraud should be our top that matter—in supplying copies of the that I have held over the last 5 years priority, our first priority. The bill amendments to the other side. I am not showing that what GAO says amounts makes progress but it does not go far saying it is just on your side, it is on up to 10 percent of Medicare spending enough. our side as well. goes for waste, fraud and abuse, this is At least it is not what the Gingrich Suffice to say, I am ready to yield up to $17 billion a year. bill in the House does which makes it the remainder of my time. I believe—if If you have followed those hearings easier for health care providers to en- the chairman agrees—that would take or read the numerous GAO and Inspec- gage in fraud. Literally, not figu- us to the Harkin amendment. tor General reports, then you know we ratively. just cannot go after the small things in Mr. ROCKEFELLER. Will the Sen- Last, the point made by the Senator, waste, fraud and abuse. We have to go ator yield? there is $18 billion in Medicare fraud a after the big game. We have to take a Mr. EXON. Yes. year and $16 billion in Medicaid fraud a Mr. ROCKEFELLER. Mr. President, truly comprehensive approach to com- year. I see no legitimate rationale for simply to affirm what the Senator batting this bilking of the taxpayers not tightening this up unless there is from Nebraska says, I think it is, in and our elderly. some outrageous special interest that fact, part of the agreement between the Now, the bill has some good provi- thinks it would benefit from it. I see leaders that we will know what we are sions in it. I will not deny that. The none. Prosecutors want it. Prosecutors voting on, that we will have copies of Abraham amendment which I voted for ask for it. these amendments. I have a list here of is also pretty good. But that just takes 17 of what are called Republican a nick out of it. What we have to do is I held a hearing in my State where I amendments, and three of them are go after it with every thing we can. had the top prosecutors from Philadel- question marks. There are all kinds of The taxpayers and the elderly deserve phia and the top prosecutors from the words. There is a word that says kick- no less. State of Delaware. They point out that back, one that says taxes, health care, My amendment, cosponsored by Sen- the House bill, which set them back sugar. There is no way to make any ators GRAHAM and BIDEN, both of whom decades—this bill would not do much. kind of a judgment. who have worked hard to tackle this Our bill would make a significant im- So I just affirm the view of the rank- problem, makes a number of important pact on their ability to deal with ing member of the Budget Committee changes. It requires Medicare within 6 health care fraud. that we need to have these amend- months must use state-of-the-art com- I thank my colleague for his leader- ments. It is part of the agreement that mercial software to find billing abuse. ship and allowing me the minutes. we would have these amendments and GAO estimated the first full year sav- The PRESIDING OFFICER. The Sen- our amendments in writing before we ings of making this common sense idea ator has 1 minute and 30 seconds re- act on them. at $640 million. maining. Next, my amendment prohibits Medi- Otherwise we are just singing in the Mr. HARKIN. I will reserve my time care payments for unnecessary and in- dark. if the other side wants to speak. Mr. BROWN. Mr. President, I yield appropriate items like fines owed by health care providers for violations of Mr. DOMENICI. I yield 5 minutes in back the balance of my time and I ask opposition to Senator COHEN. for the yeas and nays. Federal, State or local laws, personal auto use, tickets to sporting events, Mr. COHEN. Mr. President, ordi- The PRESIDING OFFICER. Is there a narily I find myself in agreement with sufficient second? entertainment, and other things like that. Believe it or not, Medicare still the Senator from Iowa, dealing with There is a sufficient second. The yeas health care fraud, but I must say in and nays are ordered. has no specific prohibition against pay- ing for those kind of items. this particular circumstance I have to AMENDMENT NO. 2970 Third, my amendment reforms pay- rise in opposition, not because I am op- (Purpose: To strengthen efforts to combat ments to ambulances as recommended posed to what he is seeking to do but Medicare waste, fraud and abuse) by the inspector general. It also re- rather I believe that while his proposal Mr. EXON. Mr. President, I believe duces paperwork by requiring a stand- for addressing fraud and abuse in the the next amendment in order is the ardized claim form for Medicaid and health care system has merit, they also amendment to be offered by the Sen- Medicare. compromised some of the more impor- ator from Iowa, Mr. HARKIN. Most important, and the heart and tant facets of the health care fraud bill Mr. HARKIN. Parliamentary inquiry, soul of this, it requires competitive we were successful in including in the Mr. President. How much time do we bidding for durable medical equipment, Finance Committee package as such. have? medical supplies, and oxygen paid for For the past several years, we have The PRESIDING OFFICER. The Sen- by Medicare. The Veterans Administra- been holding hearings. As a matter of ator has 5 minutes. tion has been doing this a long time fact, it was a report that the minority Mr. HARKIN. I have an amendment and the difference in payments is dra- staff issued on health care fraud which that I am sending to the desk, and I matic. produced the estimates from GAO, as ask for immediate consideration. How can you say you do not support well as our own staff, showing that The PRESIDING OFFICER. The it in Medicare when you have it in the there is $100 billion being lost annually clerk will report. VA, when the VA spends 4 cents for the in our health care system. The legislative clerk read as follows: same bandage that Medicare spends 86 As far as the Federal portion of that, The Senator from Iowa [Mr. HARKIN], for cents for? Oxygen—Medicare spends himself, Mr. GRAHAM and Mr. BIDEN, pro- it is anywhere from $27 to $40 million, $3,600 for rental of oxygen; the Veter- depending on which Federal programs poses an amendment numbered 2970. ans Administration pays less than half Mr. HARKIN. Mr. President, I ask are included. We are losing billions of that. dollars through our health care system unanimous consent that reading of the That is because the Veterans Admin- through fraud now. amendment be dispensed with. istration has competitive bidding and The PRESIDING OFFICER. Without Medicare does not. It is time we have What we have tried to do in the pro- objection, it is so ordered. good old competitive bidding in Medi- posal that was agreed to by the Fi- (The text of the amendment is print- care. That is what this amendment nance Committee is to structure it in a ed in today’s RECORD under ‘‘Amend- does. way that actually produces savings— ments Submitted.’’) I yield 1 minute to the Senator from this $4.2 billion. Mr. HARKIN. I yield myself 2 min- Delaware. The amendment of the Senator from utes. Mr. BIDEN. I compliment the Sen- Iowa, as I understand it—unfortu- Mr. President, if you believe that ator from Iowa. nately, because of the time limitations waste, fraud and abuse in Medicare is Put bluntly, there is no legitimate we have, I believe some of my provi- just a small problem, then you want to reason not to be for this amendment. sions have been deleted that are in the just support the bill and the Abraham None. Zero. None. I challenge anyone health care fraud bill. I am advised amendment that was added to it and to tell us why this amendment does not that CBO has concluded that this di- vote ‘‘no’’ on this amendment. make sense. lutes some of the $4.2 billion in savings. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15797 One of the justifications for persuad- Mr. DOMENICI. I yield back the bal- Washington, DC, September 29, 1995. ing the Finance Committee to include ance of our time. Re H.R. 2389: ‘‘Safeguarding Medicare Integ- rity Act of 1995.’’ the health care fraud bill that I had au- Mrs. MURRAY. Mr. President, the thored was to get some savings. CBO Hon. BOB GRAHAM, Harkin amendment to remove fraud U.S. Senate, now scores it at $4.2 billion. This at and abuse from Medicare is a giant step Washington, DC. least raises a question as to whether or in the right direction—saving taxpayer DEAR SENATOR GRAHAM: You requested our not we have diluted that and it calls money, urging us toward a balanced views regarding the newly introduced H.R. into question in terms of how much we budget, and striving for greater effi- 2389, which we understand may be considered will save. ciency. in the deliberations concerning the ‘‘Medi- The Senator from Iowa may use a dif- care Preservation Act.’’ We strongly support However, the amendment is based on ferent method of calculating those sav- the expressed objective of H.R. 2389 of reduc- a concept both necessary and con- ings. ing the fraud and abuse which plagues the troversial. This amendment would re- What we have tried to do is structure Medicare program. The proposed legislation quire competitive bidding for Medicare contains some meritorious provisions. How- it in a way which we could get the pro- part B items and services. ever, if enacted, certain major provisions of vider groups to agree. This has been no I have heard from owners of numer- H.R. 2389 would cripple the efforts of law en- easy task. We have met with provider forcement agencies to control health care groups, with consumers, with health ous medical supply businesses in my fraud and abuse in the Medicare program and care advocates, with the FBI, with the State who tell me they will be driven to bring wrongdoers to justice. Justice Department, with the White out of business by this amendment pro- The General Accounting Office estimates House. vision. They tell me services will be the loss to Medicare from fraud and abuse at We put together a package which we cut to rural areas. They tell me serv- 10 percent of total Medicare expenditures, or believe enjoys broad support which has ices involved with setting up and in- about $18 billion. We recommend two steps been scored as saving $4.2 billion. structing about medical equipment is to decrease this problem: strengthen the rel- essential for patients, and will be evant legal authorities, and increase the Under these circumstances, I find my- funding for law enforcement efforts. Some self compelled to rise in opposition not threatened under this amendment. worthy concepts have been included in H.R. because I am opposed to what the Sen- Senator HARKIN has made changes to 2389, and we support them. For example, we ator from Iowa seeks to do, but by vir- his amendment language, to maintain support: tue of the fact this may undermine to access to services for rural and under- A voluntary disclosure program, which al- some degree and dilute to some degree, served areas. He has made changes to lows corporations to blow the whistle on which I do not know what extent, the assure quality assurance standards, so themselves if upper management finds $4.2 billion which has currently been that large companies are not able to wrongdoing has occurred, with carefully de- fined relief for the corporation from qui tam scored by CBO. undercut their competition simply by suits under the False Claims Act (but not For those reasons I rise in opposition providing shoddy supplies and equip- waiver by the Secretary of sanctions); to the amendment of the Senator. ment. Minimum periods of exclusion (mostly par- The PRESIDING OFFICER. The Sen- He points out the large difference be- allel with periods of exclusion currently in ator from New Mexico has 1 minute tween prices for supplies at Veterans regulations) with respect to existing exclu- and 50 seconds and the Senator from Administration hospitals—which have sion authorities from Medicare and Medic- Iowa has 1 minute and 14 seconds. competitive bidding—and prices from aid; and Mr. HARKIN. I yield 30 seconds to Increases in the maximum penalty providers under Medicare part B. He amounts which may be imposed under the the Senator from Nebraska. makes a good case for solving some of Mr. EXON. Mr. President, I am some- civil monetary penalty laws regarding health our Medicare cost problems with a what disappointed. I thought this was care fraud. clear goal to find efficiency through As stated above, however, H.R. 2389 con- perhaps one amendment that we could competitive bidding, rather than just a tains several provisions which would seri- get Republican agreement on. budget decision. ously erode our ability to control Medicare This is a good amendment. There fraud and abuse, including most notably: may be reasons to oppose it, but I do In light of these changes, I will vote making the civil monetary penalty and anti- not know what they are and they have for the amendment, but I want to be kickback laws considerably more lenient, not been explained to me. sure that we are doing everything we the unprecedented creation of an advisory Mr. HARKIN. I am befuddled, Mr. can to make this transition survivable opinion mechanism on intent-based statutes, President, because I say to my friend for small business. and a trust fund concept which would fund from Maine, the CBO—which I want on Mr. GRAHAM. Mr. President, I ask only private contractors (not law enforce- the record—the CBO has scored our unanimous consent for 10 seconds in ment). Our specific comments on these mat- ters follow. amendment as saving more money order to have items printed in the 1. MAKING CIVIL MONETARY PENALTIES FOR than is in the bill. I want that on the RECORD. FRAUDULENT CLAIMS MORE LENIENT BY RE- record. That is so. The PRESIDING OFFICER. Without LIEVING PROVIDERS OF THE DUTY TO USE REA- We did not weaken the provisions in objection, it is so ordered. SONABLE DILIGENCE TO ENSURE THEIR CLAIMS the bill, we significantly strengthened Mr. GRAHAM. Mr. President, I would ARE TRUE AND ACCURATE them. For example, as I pointed out, like to have printed in the RECORD var- Background: The existing civil monetary we require the commercial software, ious documents, including a letter from penalty (CMP) provisions regarding false we reduce the paperwork by having one the inspector general of the Depart- claims were enacted by Congress in the 1980’s claim form. We required the competi- ment of HHS and statements by the as an administrative remedy, with cases tried by administrative law judges with ap- tive bidding and we prohibit the Medi- Secretary of the Department and the care payments for unnecessary things peals to Federal court. In choosing the Attorney General. They all go to the ‘‘knows or should know’’ standard for the like personal use of automobiles, tick- point that we need to have as strong an ets to sporting events, things like that. mental element of the offense, Congress antifraud position as possible in the chose a standard which is well defined in the And CBO has certified that this Senate version of the Medicare bill, be- Restatement of Torts. Second, Section 12. The amendment saves more money than cause the House version is woefully term ‘‘should know’’ places a duty on health the underlying bill’s provisions. care providers to use ‘‘reasonable diligence’’ Mr. COHEN. We are basically in ac- weak. I support the joint efforts of my colleagues from Iowa and Maine in as- to ensure that claims submitted to Medicare cord with what we are seeking to do, are true and accurate. The reason this stand- but I have been advised that CBO indi- suring that goal. ard was chosen was that the Medicare sys- cates this would reduce the $4.2 billion Mr. President, I ask unanimous con- tem is heavily reliant on the honesty and by—— sent the documents be printed in the good faith of providers in submitting their Mr. HARKIN. Absolutely not. CBO RECORD. claims. The overwhelming majority of said today it would save $4.7 billion, There being no objection, the mate- claims are never audited or investigated. Note that the ‘‘should know’’ standard considerably more than the underlying rial was ordered to be printed in the does not impose liability for honest mis- bill. Let there be no question about RECORD, as follows: takes. If the provider exercises reasonable that. DEPARTMENT OF HEALTH AND HUMAN diligence and still makes a mistake, the pro- The PRESIDING OFFICER. The time SERVICES, OFFICE OF INSPECTOR vider is not liable. No administrative com- of the Senator from Iowa is expired. GENERAL, plaint or decision issued by the Department S 15798 CONGRESSIONAL RECORD — SENATE October 26, 1995 of Health and Human Services (HHS) has However, the nature of kickbacks and the tion for managed care organizations in the found an honest mistake to be the basis for health care industry requires the interpreta- fee for service system would invite serious CMP sanction. tion adopted by Greber and its progeny. To abuse. H.R. 2389 Proposal: Section 201 would rede- prove that a defendant had the improper in- H.R. 2389 Proposal: Section 202 would es- fine the term ‘‘should know’’ in a manner tent necessary to violate the anti-kickback tablish broad new exceptions under the anti- which does away with the duty on providers statute, the prosecution must establish the kickback statute for ‘‘any capitation, risk- to exercise reasonable diligence to submit defendant’s state of mind, or intent. As with sharing, or disease management program.’’ true and accurate claims. Under this defini- any intent-based statute, the prosecution The lack of definition of these terms would tion, providers would only be liable if they cannot get directly inside the defendant’s result in a huge opportunity for abusive ar- act with ‘‘deliberate ignorance’’ of false head. The prosecution must rely on cir- rangements to fit within this proposed ex- claims or if they act with ‘‘reckless dis- cumstantial evidence to prove improper in- ception. What is a ‘‘disease management pro- regard’’ of false claims. In an era when there tent. Circumstantial evidence consists of gram?’’ Does not that term include most of is great concern about fraud and abuse of the documents relevant to the transaction, testi- health care? Medicare program, it would not be appro- mony about what the defendant said to busi- Nefarious organizations could easily es- priate to relieve providers of the duty to use ness associates or potential customers, etc. ‘‘reasonable diligence’’ to ensure that their cape the kickback statute by simply rear- These types of evidence are rarely clear ranging their agreements to fit within the claims are true and accurate. about the purposes and motivations of the In addition, the bill treats the CMP au- exception. For example, if a facility wanted defendant. The difficulties of establishing in- to pay doctors for referrals, the facility thority currently provided to the Secretary tent are multiple by the complexity, size, in an inconsistent manner. On one hand, it could escape liability by establishing some and dynamism of the health care industry, device whereby the doctors share in the busi- proposes an increase in the amounts of most as well as the sophistication of most-kick- CMPs which mnay be imposed under the So- ness risk of profit and loss of the business back scheme participants. Documents are cial Security Act. Yet, it would significantly (i.e., they would share some risk, at least ‘‘pre-sanitized’’ by expert attorneys. Most curtail enforcement of these sanction au- theoretically). Then, the organization could defendants are careful what they say. In thorities by raising the level of culpability pay blatant kickbacks for every referral most kickback prosecutions, the Govern- which must be proven by the Government in with impunity. ment has a difficult task to prove beyond a order to impose CMPs. It would be far pref- reasonable doubt that even one purpose of a If the concern is that the kickback statute erable not to make any changes to the CMP payment is to induce referrals. is hurting innovation, as observed above, statutes at this time. If the Government had to prove that in- there is now an explosion of innovation in 2. MAKING THE ANTIKICKBACK STATUTE MORE ducement of referrals was ‘‘the significant’’ the health care industry, especially in man- LENIENT BY REQUIRING THE GOVERNMENT TO reason for the payment, many common kick- aged care. No one in Government is suggest- PROVE THAT THE SIGNIFICANT INTENT OF THE back schemes would be allowed to pro- ing that HMOs or preferred provider arrange- DEFENDANT WAS UNLAWFUL liferate. In today’s health care industry, ments, etc., formed in good faith, violate the Background: The anti-kickback statute very few kickback arrangements involve the kickback statute. There has never been any makes it a criminal offense knowingly and bald payment of money for patients. Most action against any such arrangement under willfully (intentionally) to offer or receive kickbacks have sophisticated disguises. Pro- the statute. anything of value in exchange for the refer- viders can usually argue that any suspect 4. INAPPROPRIATE EXPANSION OF THE EXCEP- ral of Medicare or Medicaid business. The payment serves one or more ‘‘legitimate pur- TION TO THE ANTI-KICKBACK STATUTE FOR statute is designed to ensure that medical poses.’’ For example, payments made to in- DISCOUNTS decisions are not influenced by financial re- duce referrals often also compensate a physi- wards from third parties. Kickbacks result in cian who is providing health care items or Background. Medicare/Medicaid discounts more Medicare services being ordered than services. Some payments to referral sources are beneficial and to be encouraged with one otherwise, and law enforcement experts may be disguised as returns on investments. critical condition: That Medicare and/or agree that unlawful kickbacks are very com- Similarly, many lease arrangements that in- Medicaid receive and participate fully in the mon and constitute a serious problem in the disputably involve the bona fide use of space discount. For example, if the Medicare rea- Medicare and Medicaid programs. incorporate some inducement to refer in the sonable charge for a Part B item or service The two biggest health care fraud cases in lease rates. In all of these examples, and is $100, Medicare would pay $80 of the bill and history were largely based on unlawful kick- countless others, it is impossible to quantify the copayment would be $20. If a 20 percent backs. In 1994, National Medical Enterprises, what portions of payments are made for ne- discount is applied to this bill, the charge a chain of psychiatric hospitals, paid $379 farious versus legitimate purposes. should be $80, and Medicare would pay $64 (80 million for giving kickbacks for patient re- Where the defendant could argue that percent of the $80) and the copayment would ferrals, and other improprieties. In 1995, there was some legitimate purpose for the be $16. If the discount is not shared with Caremark, Inc, paid $161 million for giving payment, the prosecution would have to Medicare (which would be improper), the bill kickbacks to physicians who ordered very prove beyond a reasonable doubt, through to Medicare would falsely show a $100 charge. expensive Caremark home infusion products. circumstantial evidence, that the defendant Medicare would pay $80, but the copayment Most kickbacks have sophisticated dis- actually had another motive that was ‘‘the would be $0. This discount has not been guises, like consultation arrangements, re- significant’’ reason. For the vast majority of shared with Medicare. turns on investments, etc. These disguises the present-day kickback schemes, the pro- Many discounting programs are designed are hard for the Government to penetrate. posed amendment would place in insur- expressly to transfer the benefit of discounts Proving a kickback case is difficult. There is mountable burden of proof on the Govern- away from Medicare. The scheme is to give no record of trivial cases being prosecuted ment. little or no discount on an item or service under this statute. separately billed to Medicare, and give large H.R. 2389 Proposal: Section 201 would re- 3. CREATION OF AN EASILY ABUSED EXCEPTION FROM THE ANTI-KICKBACK STATUTE FOR CER- discounts on items not separately billed to quire the Government to prove that ‘‘the sig- Medicare. This scheme results in Medicare nificant purpose’’ of a payment was to in- TAIN MANAGED CARE ARRANGEMENTS Background: There is great variety and in- paying a higher percentage for the sepa- duce referrals of business. The phrase ‘‘the rately billed item or service than it should. significant’’ implies there can only be one novation occurring in the managed care in- ‘‘significant’’ purpose of a payment. If so, at dustry. Some managed care organizations, For example, a lab offers a deep discount least 51 percent of the motivation of a pay- such as most health maintenance organiza- on lab work for which Medicare pays a pre- ment must be shown to be unlawful. Al- tions (HMOs) doing business with Medicare, determined fee (such as lab tests paid by though this proposal may have a superficial consist of providers who assume financial Medicare to the facility as part of a bundled appeal, if enacted it would threaten the Gov- risk for the quantity of medical services payment), if the facility refers to the lab its ernment’s ability to prosecute all but the needed by the population they serve. In this separately billed Medicare lab work, for most blatant kickback arrangements. context, the incentive to offer kickbacks for which no discount is given. The lab calls this The courts interpreting the anti-kickback referrals of patients for additional services is a ‘‘combination’’ discount, yet is a discount statute agree that the statute applies to the minimized, since the providers are at risk for on some items and not on others. Another payment of remuneration ‘‘if one purpose of the additional costs of those services. If any- example is where ancillary or noncovered the payment was to induce referrals.’’ United thing, the incentives are to reduce services. items are furnished free, if a provider pays States v. Greber, 760 F.2d 68, 69 (3d Cir. 1985) Many other managed care organizations full price for a separately billed item, such (emphasis added). If payments were intended exist in the fee for service system, where the as where the purchase of incontinence sup- to induce a physician to refer patients, the traditional incentives to order more services plies is accompanied by a ‘‘free’’ adult dia- statute has been violated, even if the pay- and pay kickbacks for referrals remain. In per. Medicare has not shared in these com- ments were also intended (in part) to com- the fee for service system, the payer (like bination discounts. pensate for legitimate services. Id. at 72. See Medicare and private insurance plans) is at H.R. 2389 Proposal. Section 202 would per- also: United States v. Kats, 871 F.2d 105, 108 financial risk of additional services, not the mit discounts on one item in a combination (1989); United States v. Bay State Ambulance, managed care organization. While broad pro- to be treated as discounts on another item in 874 F.2d 20, 29–30 (1st Cir. 1989). tection from the anti-kick statute may be the combination. This sounds innocent, but The proposed amendment would overturn appropriate for capitated, at-risk entities it is not. Medicare would be a big loser. Dis- these court decisions. like the HMO described above, such protec- counting should be permissable for a supplier October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15799 to offer a discount on a combination of items (however irrationally) that he or she was not by the Medicare carriers and intermediaries. or services, so long as every item or service violating the law. The prosecution would Since the bill would prohibit carriers and separately billed to Medicare or Medicaid re- have to disprove this defense beyond a rea- intermediaries from performing these func- ceives no less of a discount than is applied to sonable doubt. This will seriously affect the tions in the future, there appears to be no in- other items in the combination. If the items likelihood of conviction of those offering crease in these functions, but only a dif- or services separately billed to Medicare or kickbacks. ferent funding mechanism. Medicaid receive less of a discount than other Advisory opinions would likely require These ‘‘soft’’ review and education func- items in the combination, Medicare and enormous resources and many full time tions are no substitute for investigation and Medicaid are not receiving their fair share of equivalents (FTE) at HHS. The user fees in prosecution of those who intend to defraud the discounts. the bill would go to the Treasury, not to Medicare. The funding mechanism in H.R. HHS. Even if they did go to HHS, appropria- 5. UNPRECEDENTED MECHANISM FOR ADVISORY 2389 will not result in any more Medicare tions committees tend to view them as off- OPINIONS ON INTENT-BASED STATUTES, IN- convictions and sanctions. sets to appropriations. There are no esti- CLUDING THE ANTI-KICKBACK STATUTE In summary, H.R. 2389 would: mates of number of likely requests, number Background: The Government already of- of FTE required, etc. Also, HHS is perma- Relieve providers of the legal duty to use fers more advice on the anti-kickback stat- nently downsizing, even as it faces massive reasonable diligence to ensure that the ute than is provided regarding any other structural and program changes. The pos- claims they submit are true and accurate; criminal provision in the United States sible result of the bill is a diversion of hun- this is the effect of increasing the Govern- Code. dreds of anti-fraud workers to handle the ad- ment’s burden of proof in civil monetary Industry groups have been seeking advi- visory opinions. penalty cases; sory opinions under the anti-kickback stat- For the above reasons, DOJ, HHS/OIG and Substantially increase the Government’s ute for many years, with vigorous opposition the National Association of Attorneys Gen- burden of proof in anti-kickback cases; by the Department of Justice (DOJ), and the eral strongly oppose advisory opinions under Create new exemptions to the anti-kick- HHS Office of Inspector General (OIG) under the anti-kickback statute, and all other in- back statute which could readily be ex- the last three administrations, as well as the tent-based statutes. ploited by those who wish to pay rewards to National Association of Attorneys General. 6. CREATION OF TRUST FUND MECHANISM WHICH physicians for referrals of patients; In 1987, Congress rejected calls to require ad- DOES NOT BENEFIT LAW ENFORCEMENT Create an advisory opinion process on an visory opinions under this statute. As a com- Background: In our view, the most signifi- intent-based criminal statute, a process promise, Congress required HHS, in consulta- cant step Congress could undertake to re- without precedent in current law; since the tion with the Attorney General, to issue duce fraud and abuse would be to increase fees for advisory opinions would not be avail- ‘‘safe harbor’’ regulations describing conduct the resources devoted to investigating false able to HHS, our scarce law enforcement re- which would not be subject to criminal pros- claims, kickbacks and other serious mis- sources would be diverted into hiring advi- ecution or exclusion. See Section 14 of Pub- conduct. It is important to recognize that sory opinion writers; and lic Law 100–93. the law enforcement effort to control Medi- Create a fund to use monies recovered from To date, the OIG has issued 13 final anti- care fraud is surprisingly small and dimin- wrongdoers by law enforcement agencies, but kickback ‘‘safe harbor’’ rules and solicited ishing. There is evidence of increasing Medi- the fund would not be available to assist the comment on 8 additional proposed safe har- care fraud and abuse, and Medicare expendi- law enforcement efforts; all the monies bor rules, for a total of 21 final and proposed tures continue to grow substantially. Yet, would be used by private contractors only safe harbors. Over 50 pages of explanatory the staff of the HHS/OIG, the agency with for ‘‘soft’’ payment review and education material has been published in the Federal primary enforcement authority over Medi- functions. Register regarding these proposed and final care, has declined from 1,411 employees in rules. In addition, the OIG has issued six In our view, enactment of the bill with 1991 to just over 900 today. (Note: 259 of the these provisions would cripple our ability to general ‘‘fraud alerts’’ describing activity 1,411 positions were transferred to the Social which is suspect under the anti-kickback reduce fraud and abuse in the Medicare pro- Security Administration). Approximately gram and to bring wrongdoers to justice. statute. Thus, the Government gives provid- half of these FTE are devoted to Medicare Thank you for your attention to our con- ers guidance on what is clearly permissible investigations, audits and program evalua- cerns. (safe harbors) under the anti-kickback stat- tions. As a result of downsizing, HHS/OIG ute and what we consider illegal (fraud has had to close 17 OIG investigative offices Sincerely, alerts). and we now lack an investigative presence in JUNE GIBBS BROWN, H.R. 2389 Proposal. HHS would be required 24 States. The OIG has only about 140 inves- Inspector General. to issue advisory opinions to the public on tigators for all Medicare cases nationwide. the Medicare/Medicaid anti-kickback statute By way of contrast, the State of New York PRESS CONFERENCE OF ATTORNEY GENERAL (section 1128B(b) of the Social Security Act), gainfully employs about 300 persons to con- JANET RENO ON HEALTH CARE FRAUD, OCTO- as well as all other criminal authorities, trol Medicaid fraud in that State alone. BER 18, 1995 civil monetary penalty and exclusion au- Ironically, the investigative activity of Attorney General RENO. Thank you, Sec- thorities pertaining to Medicare and Medic- OIG pays for itself many times over. Over retary Shalala. aid. HHS would be required to respond to re- the last 5 years, every dollar devoted to OIG The House Medicare bill would make it quests for advisory opinions within 30 days. investigations of health care fraud and abuse more difficult for us to prosecute medical HHS would be authorized to charge re- has yielded an average return of over $7 to providers for fraudulent conduct against pa- questers a user fee, but there is no provision the Federal Treasury, Medicare trust funds, tients and the Medicare system. These provi- for this fee to be credited to HHS. Fees and State Medicaid programs. In addition, an would therefore be deposited in the Treasury increase in enforcement also generates in- sions are totally inconsistent with the provi- as miscellaneous receipts. creased deterrence, due to the increased sions in the Senate bill, which would facili- Major problems with anti-kickback advi- chance of fraud being caught. For these rea- tate our law enforcement efforts against sory opinions include: sons, many fraud control bills contain a pro- health care fraud that harms us all, and par- Advisory opinions on intent-based statutes posal to recycle monies recovered from ticularly our most vulnerable. (such as the anti-kickback statute) are im- wrongdoers into increased law enforcement. I understand that some members of the practical if not impossible. Because of the The amount an agency gets should not be re- House have indicated that law enforcement inherently subjective, factual nature of in- lated to how much it generates, so that it should not be criminally prosecuting health tent, it would be impossible for HHS to de- could not be viewed as a ‘‘bounty.’’ The At- care providers who engage in fraud. I just termine intent based solely upon a written torney General and the Secretary of HHS don’t understand that, for I believe that submission from the requestor. Indeed, it would decide on disbursements from the health care fraud is so detrimental to the does not make sense for a requestor to ask fund. We believe such proposals would health and to the pocketbook of all Ameri- the Government to determine the requestor’s strengthen our ability to protect Medicare cans that I made health care fraud one of my own intent. Obviously, the requester already from wrongdoers and at no cost to the tax- priorities in the Department of Justice. I be- knows what their intent is. payers. The parties who actually perpetrate lieve perpetrators of health care fraud should None of the 11 existing advisory opinion fraud would ‘‘foot the bill.’’ not be immune from criminal prosecution processes in the Federal Government provide H.R. 2389 Proposal: Section 106 would cre- because they commit a crime in an office, in advisory opinions regarding the issue of the ate a funding mechanism using fines and a boardroom, in a laboratory, rather than in requestor’s intent. An advisory opinion proc- penalties recovered by law enforcement the street. White collar crooks who pay or ess for an intent-based statute is without agencies from serious wrongdoers. But none take kickbacks endanger the health of pa- precedent in U.S. law. of the money would be used to help bring tients and steal money from us all. The advisory opinion process in H.R. 2389 others to justice. Instead, all the funds Experts estimate it may cost Americans as would severely hamper the Government’s would be used only by private contractors much as $100 billion a year. That is why we ability to prosecute health care fraud. Even for ‘‘soft’’ claims review, such as, medical need stronger, not weaker, provisions in the with appropriate written caveats, defense and utilization review, audits of costs re- House bill. The Senate bill, under the leader- counsel will hold up a stack of advisory opin- ports, and provider education. ship of Senator Cohen and with bipartisan ions before the jury and claim that the de- The above functions are indeed necessary, support, provides those strengthened provi- fendant read them and honestly believed and they are now being conducted primarily sions. S 15800 CONGRESSIONAL RECORD — SENATE October 26, 1995

Particularly at this time, we need to pre- Attorney General RENO. DIFFERENT DE- Attorney General RENO. All they would serve every Medicare trust fund dollar; we PARTMENTS HAD DIFFERENT PROVISIONS AND have to do is disguise it and say it’s for this cannot allow Medicare money to be spent on THIS CONSOLIDATED IN ONE, I THINK, A VERY reason or for that reason or it has something bribes paid to doctors and others as induce- FIRM STATEMENT ON THE POLICY OF BOTH THE to do with the patient’s care and I might not ment for the referral of Medicare patients. TREASURY AGENCY AND THE DEPARTMENT OF be able to prove that it is a significant pur- Even more importantly, we cannot allow fi- JUSTICE. pose. It has that chance of disguising what is nancial inducements to corrupt the profes- QUESTION. What tangible impact do you ex- really a bribe. sional judgment of medical providers—pro- pect the changes to have on the deadly force QUESTION. Attorney General Reno, on an- viders who Americans have been taught to policy. other subject, what is the Justice Depart- trust. Decisions which physicians make day Attorney General RENO. I think it will en- ment’s position on the U.S. Sentencing Com- in and day out—whether and where to hos- able those enforcement officers involved to mission’s guidelines on crack cocaine versus pitalize a patient, what laboratory tests to understand when they can and can’t use powder cocaine and the pending legislation order, what surgical procedure to perform, deadly force and I think the message will be that deals with that? what drug to prescribe, and how long to keep clear. Attorney General RENO. We have said and a patient in a psychiatric facility—affect the QUESTION. Secretary Shalala, will you ask made clear that prosecutors, police officers, health and well-being of our elderly patients the President to veto this bill unless this is and most of all, the residents of communities and our children. Allowing these decisions to modified? across this nation that have been impacted be made under the influence of kickbacks is Secretary SHALALA. THERE ARE SO MANY by crack cocaine, understand that the mar- just plain wrong. PROVISIONS IN THE REPUBLICANS BILL THAT I The House bill would place a very high, ad- keting and distribution systems and nature HAVE ALREADY SENT A LETTER TO THE HILL, of the drug have had a terrible, terrible im- ditional burden on the Government in its at- INDICATING THAT IF THEY ADOPT THE BILL AS tempts to prosecute those who pay or receive pact on many neighborhoods and that its im- IT’S NOW WRITTEN THAT I WILL RECOMMEND pact reflects the need to have some distinc- kickbacks for the purpose of inducing the re- THAT THE PRESIDENT VETO IT. I WILL JOIN ferral of Medicare business. Existing law re- tion in the manner in which crack is treated. WITH THE ATTORNEY GENERAL AFTER WE RE- But the Justice Department has made clear quires the Government to prove that one VIEW THESE PROVISIONS IN AN ADDITIONAL COM- purpose of the kickback was to induce the that it favors a review of the 101 ratio, to ad- MENT FOR THE PRESIDENT, ADVISING HIM ON just it, to make it fairer. referral of health care business. The lan- THE BILL. BUT THESE ARE SIMPLY UNACCEPT- It is our hope that legislation that is pend- guage of the House bill would require that ABLE AND I THINK THAT’S OUR POINT TODAY. ing now which rejects the one-to-one ratio the Government prove that the payment was QUESTION. Are all these are provisions for made for the significant purpose of inducing Medicare and Medicaid violations only or do because of the impact on communities across the referral. That’s language that would im- some of them include kickback statutes that this nation also would provide—ask the Sen- munize arrangements that are dressed up to cover general medical operations, not Gov- tencing Commission to study it again in this disguise the payor’s motive. This would seri- ernment programs? coming year to come up with a recommenda- ously undermine our efforts and it would Attorney General RENO. No, it covers some tion that reflects the impact of crack on the place beyond the reach of prosecution many Government programs. We would like to see community but also achieves fairness. kickbacks which are calculated to induce re- it expanded to others: to the Federal Health QUESTION. What would you suggest would ferrals and which adversely affect the judg- employees benefits program, to the be a good ratio? ment of medical providers. From the per- CHAMPUS program on behalf of the Depart- Attorney General RENO. We are going to be spective of Federal law enforcement and, I ment of Justice. reviewing with all concerned—as part of—I believe, from the perspective of patients who QUESTION. But it doesn’t cover kick- serve as part of the ex officio members of the seek their doctors’ advice, this result is sim- backs—— Sentencing Commission—that balance. ply not acceptable. Attorney General RENO. In the private sec- QUESTION. Secretary Shalala, given that Ultimately, this isn’t a choice between tor. the [inaudible] is taking a completely dif- prosecuting violent crime and prosecuting QUESTION [continuing]. Not involving Med- ferent approach, isn’t there every reason to health care fraud. Both of them do real harm icare or Medicaid? believe it will be worked out in Congress? to real people and both deserve vigorous en- Attorney General RENO. That’s correct. Secretary SHALALA. We long ago have forcement action. I hope that the House leg- QUESTION. Do you know, as a practical islation will support, not undermine, our ef- learned not to depend on one House versus matter, how the change in the standard of another House. I think we are pointing the forts. proof would affect the prosecution? QUESTION. Why are the Republicans gut- contrast out between this House bill, which Secretary SHALALA. I think the cases that is going to the floor tomorrow, and our abil- ting the statutes? we gave you as an example we would prob- Attorney General RENO. You would have to ity to work in a bipartisan manner with the ably not be able to prosecute. ask them, but I have heard it said that they Senate. Obviously, we hope in conference we Attorney General RENO. If I can prove one said we shouldn’t prosecute these cases while will be able to work it through, but we want purpose is to induce the referral of Medicare we have robbers and murderers on our to make it very clear that what the House is business, that’s one thing. But to have to streets. And my response is we need to do doing is unacceptable. And most members of prove that the significant purpose is to in- both with vigor. Congress probably don’t know what’s in the duce the referral of Medicare business sig- QUESTION. Secretary Shalala, what’s your bill, since it was moved so quickly. nificantly heightens the standard. I think it theory about why this is happening up in the QUESTION. Have you considered asking the House? produces confusion as to what is meant by significant. And I think it undermines what American Medical Association to join you in Secretary SHALALA. Well, I have long ago urging the Republicans to change this? learned not to anticipate the motivations, the kickback statute is trying to prevent. Secretary SHALALA. There are numerous but they clearly are weakening our ability to Any time you bribe someone to get busi- ness you are impairing or presenting a organizations that have now spoken out on get fraud out of the system, particularly— this issue. Most of them have been the State it’s particularly damaging during an era, as chance for the impairment of judgment. That should never—the fact that you get Attorney General, for example, and the In- the Attorney General pointed out, where we spector Generals. The American Medical As- need to squeeze every dollar we can out of money for referring business, particularly medical business, should never be a factor in sociation, with a handful of important excep- Medicare to invest in the trust fund. And the tions, have joined us on all issues that are last things we should be doing is wasting the physicians’ or the providers’ judgment. It should be what is in the best interest of related to fraud and abuse because they are money or letting people rip off the program. absolutely opposed to, number one, having to QUESTION. [inaudible] uniform deadly that patient, what is the most cost-effective police themselves; and number two, I think health policy that you approved yesterday. medical treatment. And a significant pur- they very much favor anything we can do to Tell us, do you think it will clear up some of pose or one purpose, it is critically impor- help them to clean up the profession. the confusion left over from the Ruby Ridge tant that there not be bribery to secure Med- damage? icare business. QUESTION. So where exactly are they on Attorney General RENO. Again, I think this QUESTION. How does that, in turn, make it this? is an important step forward because for the harder to prosecute? Secretary SHALALA. You will have to go first time, all of the major law enforcement Attorney General RENO. I might be able to ask them. agencies in the Federal Government have prove that it is one purpose, but having to QUESTION. Are you talking about the joined together in a uniform policy. And I prove that it is the significant purpose American Medical Association or American think it will help people to understand when heightens the standards of proof. medical associations of various types? Secretary SHALALA. In fact, the Inspector deadly force can be used. It will apply to Secretary SHALALA. Well, of various types. Generals—all of them have signed on to a each agency and I am very delighted about QUESTION. Not the American Medical Asso- letter to the Hill that basically said it would that. ciation? QUESTION. What is the real change that bring those kinds of cases to a standstill be- Secretary SHALALA. I don’t know the posi- this policy makes? cause it raises the bar pretty high. Attorney General RENO. This policy will— QUESTION. It sounds like it would make it tion of the AMA at this moment. the real change. pretty easy for those involved in the kick- QUESTION. [inaudible.] QUESTION. What’s the difference from the backs to get around it, doing something ille- Secretary SHALALA. Well, the self-referral way it would be. gal by masking and not making—— changes that are being referenced is whether October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15801 a doctor can own a laboratory and then refer broadcast spectrum auction, Export/ As time is limited on debate, I offer his own patients to a laboratory in which he Import Bank, the B–2 bomber, Travel these insights as offered by these has a financial interest. That law was and Tourism Administration, sub- and groups. The Cato Institute says: changed a number of years ago because of supersonic research—— the abuse that was found in the system. Corporate welfare is an enormous drain on There were 45 percent more referrals if the Mr. ROCKEFELLER. Mr. President, the Federal Treasury for little economic doctors owned the lab. And that was barred will the Senator yield for a friendly in- benefit. by the law. And the American Medical Asso- quiry? The Progressive Policy Institute ciation has favored repealing the law which Mr. MCCAIN. I only have 4 minutes, I says: we are, of course, opposed to. say to my colleague. The President and Congress can break the QUESTION. Are there any examples of fraud Mr. ROCKEFELLER. May I have 5 [budget] impasse and substantially reduce cases that stand out that would be good to most spending and projected deficits * * * if pinpoint, related to this? seconds? they are willing to eliminate or reform Attorney General RENO. One of the cases— Mr. MCCAIN. If you ask unanimous scores of special spending programs and tax where is Jerry Stern—is NME case of last consent, I will be glad to yield. provisions narrowly targeted to subsidize in- year. Our recovery in that case was $379 mil- Mr. ROCKEFELLER. Can the Senate fluential industries. lion and that was based in significant part get a copy of your amendment now? We I reserve my 1 minute. on this provision that we are trying to de- have nothing. fend today in terms of kickbacks. Mr. KENNEDY. Mr. President, at a Mr. MCCAIN. Absolutely. QUESTION. Do you have any idea what time when deep cuts are being proposed would have happened had the law been [in- Mr. ROCKEFELLER. I do not want in Medicare, Medicaid, education, the audible]? to embarrass the U.S. Senate. earned income tax credit, welfare bene- Attorney General RENO. I think, again, you Mr. MCCAIN. I will make sure the can’t quantify it. But any time you have to fits, and other important programs for Senator gets a copy of the amendment. senior citizens, children, and working prove that some—rather than just one pur- Mr. DOMENICI. We delivered a copy pose, that it was the significant purpose, you families, it is essential to see that cor- raise the bar real high. Thank you. of the amendment. porate welfare—government subsidies (Whereupon, at 1:55 p.m., the press con- Mr. MCCAIN. A copy of the amend- to wealthy corporations—bears its fair ference adjourned.) ment, I understand, has been delivered share of the sacrifices needed to put Mr. DOMENICI. Mr. President, could to the Senator from West Virginia. I the Nation’s fiscal house in order. I ask if it will be in order to ask for the certainly understand his frustration if I welcome the opportunity to work yeas and nays or to table the Harkin he did not have a chance to see the with Senator MCCAIN and other Sen- amendment even if we now proceed to amendment. ators in this bipartisan effort. We have the amendment of the Senator from Mr. President, continuing—sub- and identified a dirty dozen examples of Arizona? supersonic research; terminates the corporate welfare that ought to be The PRESIDING OFFICER. It will be NASA program which conducts aircraft ended or drastically reduced. in order to do that when the amend- design activities, which can be under- My hope is that the current efforts ment recurs for a vote. taken by the private sector; oil and gas will become the foundation for a The Senator from Arizona. research and development; rural elec- longer-term initiative to deal more ef- AMENDMENT NO. 2971 tric utilities service. fectively with the wider range of cor- (Purpose: To eliminate corporate welfare in Mr. President, there is nothing new porate welfare provisions on both the Federal programs) about these programs. They are items spending side and the tax side of the Mr. MCCAIN. Mr. President, I have we have been discussing on the floor of Federal budget. an amendment at the desk. I ask for its the Senate for many years. They each At a time when we are cutting bil- immediate consideration. have one thing in common; in a time of lions of dollars from health benefits for The PRESIDING OFFICER. The fiscal necessity, we can no longer af- the elderly, it makes no sense to con- clerk will report. ford them. tinue to give away billions to wealthy The legislative clerk read as follows: We are considering historic legisla- telecommunications corporations by The Senator from Arizona [Mr. MCCAIN], tion to place the Federal budget on a 7- failing to obtain fair market value by for himself, Mr. FEINGOLD, Mr. THOMPSON, year path toward balance and to re- auctioning electronic spectrum. Mr. KERRY, and Mr. FAIRCLOTH, proposes an form unsustainable entitlement pro- At a time when we are imposing bil- amendment numbered 2971. grams which threaten to bankrupt our lions of dollars in taxes on our working Mr. MCCAIN. Mr. President, I ask Nation. If we are going to restore fiscal families, it makes no sense to spend unanimous consent that reading of the sanity and if we are going to ask poor billions of dollars on additional B–2 amendment be dispensed with. people to take cuts in their programs, bombers that the Pentagon doesn’t The PRESIDING OFFICER. Without if we are going to reduce the rate of want and the Nation doesn’t need. objection, it is so ordered. growth of many, many programs that At a time when we are imposing new (The text of the amendment is print- have been designed as a safety net for burdens on education, it makes no ed in today’s RECORD under ‘‘Amend- those less well off in our society, if we sense to confer excessive subsidies on ments Submitted.’’) are going to have credibility with the oil and gas companies. Mr. MCCAIN. Mr. President I yield American people, we had better go At a time when we are cutting bene- myself 4 minutes of the 5 minutes. after this corporate pork and we better fits for the disabled, it makes no sense The PRESIDING OFFICER. The Sen- do it soon. Otherwise, we will open our- to continue to provide subsidies for ator from Arizona. selves to justifiable criticism that we major companies to market their goods Mr. MCCAIN. Mr. President, this is a take care of corporate America while overseas. bipartisan amendment, which has been we do not take care of citizens who are Our current amendment will end endorsed by the Citizens Against Gov- less fortunate than we in our society. these and several other forms of cor- ernment Waste and Citizens for a I think it is an important amend- porate welfare. It also calls for a base- Sound Economy, which would termi- ment. I think it is going to put the closing type Federal Commission to nate or substantially reform a dozen Senate on record as to exactly where deal with this equally flagrant type of Federal programs identified by the we stand on some of these programs corporate welfare—the lavish Federal Progressive Policy Institute and the that have clearly, clearly not required subsidies dispensed to wealthy individ- Cato Institute as amongst the most Federal funding in order to continue. uals and corporations through the Tax egregious forms of corporate welfare in We owe a debt of gratitude to the Code. the Federal budget. These amount to Cato Institute and Progressive Policy Over the next 7 years, these tax sub- savings of about $60 billion over the Institute. Although they represent dif- sidies will cost the Treasury a total of next 7 years. They are the Marketing ferent ideological perspectives, they $4.5 trillion. Yet they undergo no an- Promotion Program, the advanced joined together to identify corporate nual review during the appropriations light water reactor, Forest Road Con- welfare programs and to articulate the process or during reconciliation. Once struction Program, highway dem- destructive role that they play in the enacted, they can go on forever, with onstrations, military export sales, Federal budget and the economy. no effective oversight by Congress. S 15802 CONGRESSIONAL RECORD — SENATE October 26, 1995 The Commission we are proposing Reactor Program. I am thoroughly un- the way of corporate pork and whether will examine all existing tax subsidies qualified to review that. It talks about we are really willing to make the sac- and make recommendations to Con- timber access roads. That is an Energy rifices necessary to reduce this uncon- gress that will be subject to a ‘‘yes’’ or Committee matter. It talks about scionable debt of $187,000 per child in ‘‘no’’ vote by the Senate and the House. United States Travel and Tourism, America while we support corporations I commend Senator MCCAIN and our USTTA. That is something I strongly all over America with taxpayers’ dol- other colleagues for their work on this support. Other Members may not. I lars. important issue, and I am hopeful that suspect the Senator from Arizona does Mr. ROCKEFELLER. Will the Sen- the Senate will approve our amend- not. ator yield for a question? ment. Our action on this legislation is There is a private sector funding for The PRESIDING OFFICER. The Sen- part of a longer-term initiative to in- certain research and development by ator from Arizona’s time has expired. sist on congressional scrutiny of all NASA relating to aircraft performance. Mr. ROCKEFELLER. Is there any Federal subsidies. That is the formal title. What that time? At a time when so many individuals means I have absolutely no idea, and I The PRESIDING OFFICER. There is and families are being asked to bear a have no way of finding out in the next a minute and 40 seconds available to heavy burden of budget cuts, there 2 or 3 minutes. the Senator from Nebraska. should be no free rides for special inter- There are many other things—the Mr. EXON. We have 40 seconds left. est groups and their cozy subsidies. recoupment of certain Department of The PRESIDING OFFICER. A minute Mr. KOHL. Mr. President, I rise in re- Defense costs for equipment sold di- and 40 seconds. luctant support of the amendment rectly by contractors to foreign coun- Mr. EXON. I am prepared to yield from the Senator from Arizona to cut tries and international organizations. that back in a moment. spending from 12 programs. So, my plea would be for all my col- I am supporting the amendment be- leagues to take this 21-page amend- Mr. McCAIN. The Senator from West cause, at a time when we are debating ment, between the time now—having Virginia—— a budget bill to cut programs and as- no position on it, as would be my rec- Mr. EXON. I see the majority leader sistance for the most needy in our soci- ommendation to my ranking member in the Chamber. Is he seeking recogni- ety, I find it hard to pass up an oppor- on the Budget Committee—and the tion? tunity to cut billions of dollars from time that we vote, and Senators make Mr. DOLE. No. programs like the B–2 bomber, and oil up their minds as best they can. Mr. EXON. I yield back the remain- and gas subsidies. I am absolutely unable, having had der of our time. However, while I will support this this for a period of 21⁄2 minutes, to I thought Senator ROCKEFELLER was amendment, I am extremely unhappy make heads or tails of it, since it is finished. with the decision by the proponents of many things and, I suspect, many Mr. ROCKEFELLER. In responding this amendment to cut loan programs things to many people. This is not, it to the Senator from Arizona and what for rural electric cooperatives, who de- strikes me, in terms of process, one of I am sure is a very good-faith—I know pend on those funds to keep utility the Senate’s finer moments. is a very good-faith effort, if Senators rates reasonable for rural residents. The PRESIDING OFFICER. The Sen- FEINGOLD, KENNEDY and others are in I am equally unhappy with the choice ator from Nebraska. fact cosponsors of it, one would never of the proponents of this amendment to Mr. EXON. Mr. President, following know by looking at the amendment be- eliminate the Market Promotion Pro- up the inquiry that was made just a cause only the name of the Senator gram, on the heels of the successful ef- few moments ago by the chairman of from Arizona is listed. And this is part fort to eliminate the corporate sub- the committee, I would also presume of what I am talking about. If we are sidies from that program, and target it we have not made up our minds on this going to make serious decisions about toward small businesses and coopera- side of the aisle on this amendment. I the enormous variety of programs, we tives. also assume that, without taking ac- have to do this in some kind of more So while I must reluctantly vote in tion now, it would not preclude us from intelligent way. Now, the rules may support of this amendment to cut bil- making a point of order which might preclude us from doing that because lions of dollars, if it does prevail, I will lie against this amendment at some fu- the agreement has already been made, work to have the Rural Utility Service ture date before the vote is taken; is but this is many things to many peo- loans and the Market Promotion Pro- that correct? ple. gram restored in conference. The PRESIDING OFFICER. The Mr. EXON addressed the Chair. The PRESIDING OFFICER. The Sen- point of order can be made when the The PRESIDING OFFICER. The Sen- ator from Nebraska. amendment comes up again. ator from Nebraska. Mr. EXON. Mr. President, this Mr. EXON. I thank the Chair. Mr. EXON. Has all time expired? amendment has very broad jurisdic- Mr. DOMENICI. Does Senator Mr. McCAIN. Mr. President, I ask for tional problems with a whole series of MCCAIN have any additional time? the yeas and nays. committees. It is the opinion of this The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Is there a Senator that probably the primary ator has 51 seconds. sufficient second? There appears to be committee of jurisdiction would again Mr. MCCAIN addressed the Chair. a sufficient second. be the Finance Committee. Therefore, I The PRESIDING OFFICER. The Sen- will yield to a member of the Finance ator from Arizona. The yeas and nays were ordered. Committee, the Senator from West Mr. MCCAIN. Mr. President, for the The PRESIDING OFFICER. The Sen- Virginia, for remarks to be included in benefit of the Senator from West Vir- ator from Nebraska has 30 seconds. our 5 minutes. ginia, we did distribute this amend- Mr. EXON. Reserving the right to ob- Mr. ROCKEFELLER. Mr. President, I ment much earlier today. I am sorry he ject, the yeas and nays are being re- appreciate the action of the ranking did not get it. quested. Again, I want to make it clear member of the Budget Committee. Also, I would like to point out that that would not preclude us from mak- This amendment which we have not Senators FEINGOLD, KERRY, and KEN- ing a point of order before the vote is yet—let me say first of all, it will be NEDY are also cosponsors of this taken. That is correct? my hope that our side will not take a amendment. So some Members on his The PRESIDING OFFICER. The Sen- position on this, because we are simply side of the aisle obviously are aware of ator is correct. unaware of what it is. In fact, it ap- it. Mr. EXON. I thank the Chair. pears to be many, many things. I am also aware that a budget point Mr. DOMENICI. I thank the Senator It starts out with the elimination of of order can be lodged against this from Arizona. We imposed on him this the Market Promotion Program for ag- amendment, and I do not expect it to afternoon, having called down and you riculture, I think. It appears to be part pass, Mr. President. I am being very were not ready, and I apologize for Agriculture, part Finance, part Com- frank. But I will tell you what. We are that. merce Committee. It gets into the ter- going to be on record as to what we Mr. McCAIN. Is it appropriate for the mination of the Advanced Light Water support and what we do not support in Senator from Nebraska to make a October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15803 point of order at this point and we modernized our Federal Aid Highway returns. Both the Senate and House move to waive the point of order, or Program by targeting available re- bills proposed to phase out this loop- does that take place at the time of the sources on the most critical needs. The hole. vote? bill before us would rescind $712 million My amendment would simply require Mr. EXON. I simply say we are look- for certain highway projects funded in the phaseout in the Senate bill to be ing at this. I do not know whether we ISTEA and previous appropriation completed in 4 years rather than 5 are going make a point of order against acts. This represents a substantial re- years. My proposal would retain the this or not. treat from the commitments made in key employee exception as contained Mr. McCAIN. I thank the Senator. ISTEA and in those appropriations in the Senate bill. My amendment Mr. EXON. We are simply reserving acts. would restore highway moneys to 48 the right to do that at a certain time, Mr. President, my amendment will States, and I urge its adoption. restore full funding for these important and I will not give that up at this junc- Now, Mr. President, I ask unanimous highway projects in 48 States. By re- ture. consent that Mr. BUMPERS and Mr. The PRESIDING OFFICER. The Sen- scinding these Federal funds, the bill PRYOR be added as cosponsors. ator has that right. before us would require States to cough The PRESIDING OFFICER. Without Mr. DOMENICI. Parliamentary in- up an additional $712 million for these objection, it is so ordered. quiry. Is it not Senator BYRD’s amend- projects. In effect, this would cause ment that is next pursuant to the pre- States to have to increase their match- Mr. BYRD. Now, Mr. President, 48 vious agreement? ing share from 20 percent to as much as States will lose money unless my Mr. FORD. That would be the Sen- 32 percent in order to complete these amendment is adopted. They will lose ator’s prerogative. projects. money for highways. I do not blame Mr. DOMENICI. I am just asking. Currently, the Department of De- the committee that had to meet its in- The PRESIDING OFFICER. The fense shows a total unobligated balance structions and did so by rescinding $712 Chair has no specified list and there- in excess of $10 billion for ongoing mili- million in highway funds. But I have fore presumes it is to up to the man- tary construction projects, yet no provided an offset, and therefore I hope agers of the bill. one—no one—suggests that we should that this amendment will be adopted. Mr. EXON. Mr. President, Senator rescind 15 percent of these unobligated I have received letters of support of BYRD will be next in line, and I am balances in defense and thereby ensure my amendment from the American pleased to yield to him whatever time that these projects cannot be com- Road and Transportation Builders As- we have on this amendment. pleted. sociation, the American Trucking As- The PRESIDING OFFICER. The Sen- If we seek to reduce our Federal sociation, and the Associated General ator from West Virginia is recognized budget deficit by worsening our invest- Contractors of America. for up to 5 minutes. ment deficit in our Nation’s infrastruc- Mr. President, let me just read a few ture, we will have done absolutely AMENDMENT NO. 2972 of those States that lose money. Ala- nothing to improve our national pros- (Purpose: To strike the reductions in high- bama will lose $12.8 million; Arizona, way demonstration projects and to provide perity. We will only dig our Nation $2.8 million; Arizona, $31.5 million; an offsetting revenue increase) into a deeper hole characterized by ex- California, $43.8 million; Connecticut, cessively congested and deteriorating Mr. BYRD. Mr. President, I send an $5 million; Florida, $27.9 million; Geor- roads and bridges. gia, $10.8 million; Hawaii, $3 million; amendment to the desk. According to the Department of Idaho, $8 million; Illinois, $29 million; The PRESIDING OFFICER. The Transportation, there are currently Indiana, $8 million; Iowa, $9 million; clerk will report. more than 234,000 miles of nonlocal Kansas, $9 million; Kentucky, $4.6 mil- The bill clerk read as follows: roads across the Nation which require lion; Louisiana, $13.8 million; Maine, The Senator from West Virginia [Mr. improvements immediately or within $10.9 million; Maryland, $12.6 million; BYRD], for himself and Mr. FORD, proposes an the next 5 years. Additionally, 118,000 amendment numbered 2972. Michigan, $23 million; Minnesota, $23.5 of the Nation’s 575,000 bridges, more million; Mississippi, $2.9 million; Mis- Mr. BYRD. Mr. President, I ask unan- than one in five, are structurally defi- souri, $9.3 million; Montana, $3 million; imous consent that reading of the cient. Our current highway capacity is Nebraska, $2.8 million; Nevada, $5.8 amendment be dispensed with. being stretched beyond its limits, and million; New Hampshire, $4.3 million; The PRESIDING OFFICER. Without what is our response at the Federal New Jersey, $29.3 million; New York, objection, it is so ordered. level? Just as is the case with our Fed- $40 million—— The amendment is as follows: eral budget deficit, we are leaving the Strike section 6002. mess to our grandchildren. The PRESIDING OFFICER. The time On page 1746, line 11, strike ‘‘2001’’ and in- To fully offset the effects of the res- of the Senator from West Virginia has sert ‘‘2000’’. toration of these critical highway expired. On page 1747, strike the matter between Mr. BYRD. Mr. President, I have on lines 7 and 8, and insert: projects, my amendment includes a modification to section 12803 of the rec- each desk the table of the amount that For calendar year: The percentage is: the various States would lose. I ask 1995 ...... 100 onciliation bill which phases out the 1996 ...... 80 tax deductions presently allowed for unanimous consent that this table, 1997 ...... 60 the interest paid on company-owned along with three letters in support of 1998 ...... 40 life insurance policies over the period my amendment, be printed in the 1999 ...... 20 1996 to 2001. Companies have used this RECORD. I urge adoption of the amend- Mr. BYRD. Mr. President, less than 4 loophole to earn profits at the expense ment. years ago, Congress passed the Inter- of the taxpayer by insuring employees, There being no objection, the mate- modal Surface Transportation Effi- then borrowing on the policy and de- rial was ordered to be printed in the ciency Act, ISTEA. That legislation ducting the interest on company tax RECORD, as follows: HIGHWAY FUNDS TO BE RESTORED BY BYRD AMENDMENT

Estimated fiscal States Appropriated 1982 act demos 1987 act demos Unobligated ISTEA 1996–1997 ISTEA Total demos demos demos

Alabama ...... 600,000 0 29,259 3,983,891 8,205,463 12,818,613 Alaska ...... 0 0 0 0 0 0 Arizona ...... 1,492,206 0 0 773,238 633,033 2,898,477 Arkansas ...... 417,552 0 67,578 13,433,012 17,670,188 31,588,330 California ...... 3,920,286 11,849 1,637,734 19,165,117 19,154,455 43,889,441 Colorado ...... 0 0 0 90 150,475 150,565 Connecticut ...... 100,200 0 324,603 531,450 4,119,907 5,076,160 Delaware ...... 0 0 0 0 0 0 District of Columbia ...... 0 0 812,253 2,069,040 1,146,724 4,028,017 Florida ...... 3,233,284 0 2,547,679 12,885,327 9,317,009 27,983,299 S 15804 CONGRESSIONAL RECORD — SENATE October 26, 1995 HIGHWAY FUNDS TO BE RESTORED BY BYRD AMENDMENT —Continued

Estimated fiscal States Appropriated 1982 act demos 1987 act demos Unobligated ISTEA 1996–1997 ISTEA Total demos demos demos

Georgia ...... 582,750 0 0 4,548,971 5,758,944 10,890,665 Hawaii ...... 1,200,000 0 931,285 568,800 311,328 3,011,413 Idaho ...... 0 0 17,587 4,455,415 3,652,915 8,125,917 Illinois ...... 435,951 119,805 163,132 16,152,427 13,015,067 29,886,382 Indiana ...... 866,448 0 15 2,459,368 4,924,171 8,250,002 Iowa ...... 654,678 0 0 2,592,174 5,901,066 9,147,918 Kansas ...... 2,287,280 0 0 3,624,030 3,787,824 9,699,134 Kentucky ...... 1,662,456 0 0 1,827,894 1,120,780 4,611,130 Louisiana ...... 1,725,000 0 2,997,515 5,475,780 3,630,344 13,828,639 Maine ...... 0 0 0 1,291,604 9,708,244 10,999,848 Maryland ...... 5,269,652 0 244,012 2,113,169 4,986,436 12,613,269 Massachusetts ...... 438,000 0 598,349 559,320 306,139 1,901,808 Michigan ...... 14,042,211 0 0 2,898,416 6,437,225 23,377,852 Minnesota ...... 7,722,427 0 8,968 4,965,669 10,831,101 23,528,165 Mississippi ...... 60,000 0 0 1,222,950 1,713,600 2,996,550 Missouri ...... 96,000 0 0 1,812,401 7,475,659 9,384,060 Montana ...... 640,542 0 0 1,429,242 933,984 3,003,768 Nebraska ...... 0 0 0 1,576,152 1,298,237 2,874,389 Nevada ...... 197,415 0 0 1,267,384 4,363,780 5,828,579 New Hampshire ...... 1,159,504 0 640 1,571,425 1,665,604 4,397,173 New Jersey ...... 6,306,751 0 2,350,069 10,125,842 10,528,075 29,310,737 New Mexico ...... 1,318,693 0 38 0 560,390 1,879,121 New York ...... 7,696,917 0 0 14,391,838 18,515,195 40,603,950 North Carolina ...... 769,500 0 141,337 5,440,685 7,586,025 13,937,547 North Dakota ...... 0 0 102,955 9,505 3,684,048 3,796,508 Ohio ...... 1,159,275 0 1,306,292 12,078,132 8,206,606 22,750,305 Oklahoma ...... 674,695 0 0 1,447,826 4,594,163 6,716,684 Oregon ...... 98,954 0 80,300 5,208,840 2,386,848 7,774,942 Pennsylvania ...... 6,949,575 0 2,446,078 56,843,233 45,750,168 111,989,054 Rhode Island ...... 0 0 704,318 2,438,042 2,978,890 6,121,250 South Carolina ...... 0 0 0 0 2,008,065 2,008,065 South Dakota ...... 794,400 0 0 1,523,616 971,343 3,289,359 Tennessee ...... 0 0 0 1,830,312 2,142,662 3,972,974 Texas ...... 3,035,244 0 0 13,800,624 12,590,892 29,426,760 Utah ...... 2,919,008 0 0 379,200 565,579 3,863,787 Vermont ...... 0 0 0 1,655,358 1,037,760 2,703,118 Virginia ...... 885,868 0 259,584 6,238,310 7,238,376 14,622,138 Washington ...... 0 0 0 1,290,000 4,649,164 5,939,164 West Virginia ...... 27,556,841 0 1,701,531 20,905,207 16,178,678 66,342,257 Wisconsin ...... 0 0 0 0 3,709,992 3,709,992 Wyoming ...... 0 0 0 0 1,037,760 1,037,760 American Samoa ...... 0 0 90,479 113,760 119,342 323,581 Virgin Islands ...... 321,600 0 0 1,263,900 1,042,948 2,628,448 Total ...... 109,291,163 131,654 19,563,590 272,247,986 310,302,671 711,537,064

AMERICAN ROAD & TRANSPORTATION ARTBA’s nationwide membership is in- to S. 1357 that will restore much needed BUILDERS ASSOCIATION, volved in the planning, design, construction, funding for highway projects. Washington, DC, October 26, 1995. financing and operation of all forms of trans- Your recognition of the problems that the DEAR SENATOR: The documented backlog of portation facilities. It includes contractors, existing provision (section 6002) will cause highway and bridge needs in the United engineers and planners, equipment manufac- the highway program are greatly appre- States was estimated at more than $290 bil- turers, materials suppliers, public officials, ciated. As you are so keenly aware, your lion by the Department of Transportation in financial institutions and educators. Again, amendment restores $715 million in highway its 1993 report to the Congress. Despite this we urge you to support Senator Byrd’s funding for 48 states (only Alaska and Dela- huge deficiency in infrastructure invest- amendment to S. 1357. ware escape the cuts included in Section ment, the reconciliation bill (S. 1357) now be- Sincerely, 6002). Elimination of this funding mid stream fore the Senate would reduce funding for T. PETER RUANE, will simply delay needed construction and highways by $522 million in fiscal year 1996 President & CEO. could cost as many as 36,000 jobs. and an additional $165 million in fiscal year In addition to eliminating current funding 1997. AMERICAN TRUCKING ASSOCIATIONS, for projects (many of which are under con- The 4,000 members of the American Road & Washington, DC, October 26, 1995. struction) that have been previously ap- Transportation Buildings Association Hon. ROBERT C. BYRD, proved by both the House and Senate, Sec- (ARTBA) strongly urge that you support an U.S. Senate, tion 6002 also sets a bad precedent by using amendment to S. 1357 to be offered by Sen. Washington, DC. highway trust fund money to offset the gen- Robert C. Byrd that would preserve existing DEAR SENATOR BYRD: I am writing to indi- eral fund deficit and will adversely impact funding levels. cate the support of the American Trucking the baseline for highway funding which could Cutting highway funding at this time Associations for your efforts to restore $712 lower the amount of resources made avail- would be in conflict with the conference re- million in badly needed highway funding. able for critical highway construction in the port on the fiscal 1996 transportation appro- A Department of Transportation report es- future. priations bill (H.R. 2002). That measure re- timated that the backlong of highway and Thank you for your continued vigilance in flects the importance of highways to the bridge needs in the United States was in ex- ensuring adequate investment in the Na- country by increasing funding for their im- cess of $290 million. The conference report on tion’s Surface Transportation Programs. provement. The federal highway program the FY ’96 Department of Transportation Ap- Sincerely, was, in fact, the only mode to receive a high- propriations bill (H.R. 2002) recognized this STEPHEN E. SANDHERR, er funding level than in fiscal 1995. problem by increasing highway funding. Executive Director, According to the Federal Highway Admin- Your efforts to restore that funding is in line Congressional Relations. istration, America’s highways provide 88 per- with the priorities set out in H.R. 2002. Mr. DOMENICI addressed the Chair. cent of the nation’s personal transportation We support your amendment to S. 1357, the The PRESIDING OFFICER. The Sen- Budget Reconciliation Act, and urge your in addition to a large proportion of its com- ator from New Mexico. mercial movement. Congress is expected Senate colleagues to approve this amend- shortly to approve designation of the Na- ment. Mr. DOMENICI. Mr. President, I was tional Highway System, a 159,000-mile net- Sincerely yours, not privy to drafting the provisions in work of roads intended to be the nation’s TIMOTHY P. LYNCH. the Finance Committee, and from the backbone transportation system and the Environment and Public Works Com- focus of federal highway investment in the THE ASSOCIATED GENERAL mittee, I wonder if Senator CHAFEE years ahead. Clearly, this is no time to cut- CONTRACTORS OF AMERICA, might take half my time and explain ting already-inadequate funding for highway Washington, DC, October 26, 1995. this as he sees it. improvements. Furthermore, most of the Hon. ROBERT C. BYRD, Mr. CHAFEE. Mr. President, this proposed reduction is for activities supported U.S. Senate, by the Highway Trust Fund, a pay-as-you-go Washington, DC. provision that is referred to as a loop- financing system supported by user fees. The DEAR SENATOR BYRD: The 33,000 members hole was entirely legal over the years sought budget savings can be found in other of the Associated General Contractors of that it was enforced, and in the Fi- areas less crucial to this country’s future. America strongly support your amendment nance Committee, after considerable October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15805 negotiation in what we are doing in among our States can just look at the amendment, and ask for its immediate retroactively repealing something, if list which I do not chose to read here consideration. you would, the belief was that doing it tonight, but there are some very dis- The PRESIDING OFFICER. The over 5 years was a fair method of pro- proportionate returns of money to cer- clerk will report the amendment. ceeding. tain States and very little to other The bill clerk read as follows: And the belief was that to do it in 4 States that should have the same The Senator from Rhode Island [Mr. years—a very abbreviated time—was amount on population and highways. CHAFEE], for himself and Mr. CONRAD, pro- just not fair. So, Mr. President, this is But the demonstrations were not set poses amendment numbered 2973. an intricate, complicated system, and a out in any fair way in the beginning. Mr. CHAFEE. Mr. President, I would complicated piece of legislation. But So if you think the highway dem- ask that further reading of the amend- we felt in the Finance Committee that onstration programs were great, then ment be dispensed with. indeed there was considerable pressure obviously you ought to put them back The PRESIDING OFFICER. Without to give a longer time to phase it out. in here whereas the committee decided objection, it is so ordered. But we arrived at 5 years thinking that that they did not think they ought to The amendment is as follows: was a fair way of doing it, and the 4 be in and we ought to save money. So On page 767, strike lines 12 through 15 and years just does pose a severe problem that is going to be the issue. That is if insert the following: and difficulty upon those who chose to it is not subject to a point of order. ‘‘(3) provide for making medical assistance use this type of company-owned life in- And the reason I say ‘‘if,’’ my instinct available to any individual receiving cash surance policies. So, Mr. President, tells me it is, but then I think of who benefits under title XVI by reason of disabil- that was the rationale for going to the offered it, and I am quite sure he made ity (including blindness) or receiving medi- 5 years. sure it was not subject to a point of cal assistance under section 1902(f) (as in ef- fect on the day before the date of enactment Mr. BYRD. Would the Senator yield? order. of this Act); and’’. Mr. CHAFEE. Yes. Mr. BYRD. Mr. President, will the Mr. BYRD. Mr. President, the House Senator yield? Mr. CHAFEE. Mr. President, I am of- phases it out in 4 years. The Senate Mr. DOMENICI. Yes. fering this amendment on behalf of phases it out in 5 years. So either way Mr. BYRD. If we do not adopt this Senator CONRAD and myself. What it it gets phased out. I suggest we phase amendment, then we are retroactively does, it guarantees Medicaid eligibility it out in 4 years, and apply that money wiping out those infrastructure for low-income individuals with dis- to these infrastructure projects in 48 projects in 48 States of this country. I abilities. Under the language reported States of the country. Let us cast a hope the Senate will adopt the amend- by the Senate Finance Committee, vote for America and the future of ment. I did not mention Pennsylvania, States are required to provide coverage America. $111 million; Ohio, $22 million; Texas, to persons with disabilities. Mr. CHAFEE. Mr. President, I do not $29 million; Virginia, $14 million; West However, and here is the hitch—the want to look at this in terms of wheth- Virginia, $66 million. I have only read States are given complete latitude in er we are voting for America or not. some of them. establishing the definition of who is People would not want to stand up here Mr. DOMENICI. The Senator men- disabled. It could be only those who are and suggest they were not voting for tioned West Virginia? quadriplegics who are blind are consid- America. I suspect they believe the Mr. BYRD. I mentioned West Vir- ered disabled. I mean, they can have amendments are for America. ginia. any definition the States wish. What What I am saying, Mr. President, is The PRESIDING OFFICER. The time our amendment does is it sets a mini- that we are doing something retro- of the Senator from New Mexico has mum standard by requiring States to actively. And it was our belief that 5 expired. provide coverage to children and adults years was the fair way. Now, I suppose Mr. DOMENICI. I am not going to with disabilities who receive benefits you could do it in 1 year. But that does ask for the yeas and nays or move to under the Supplemental Security In- not make it any fairer. So, Mr. Presi- table. I will wait for the vote, the time come Program [SSI]. dent, that was the basis on which we that it comes up. But here are the important words, did the 5 years in the Finance Commit- Senator CHAFEE, I believe, is the next the SSI Program, as amended by the tee. one. welfare reform bill which we passed Mr. DOMENICI addressed the Chair. Does the Senator have a copy of Sen- here a month or so ago, we passed here How much time do I have remaining? ator CHAFEE’s amendment? by a vote of 87 to 12. So this is a very The PRESIDING OFFICER. Two Mr. EXON. We do. I might say at this restricted group. This is not the SSI minutes and 20 seconds. time, following Senator CHAFEE’s pres- group that we worry about that in- Mr. DOMENICI. Mr. President, I entation, I will yield our 5 minutes, cluded substance abusers, for example. would just make a couple of quick which is the jurisdiction of the Finance That is not in this category. Only the points. Senator BYRD knows that I Committee, to the Senator from West neediest individuals qualify for SSI. have great respect for him and I am Virginia. They all have incomes below the pov- fully aware of his constant and persist- The PRESIDING OFFICER. The Sen- erty level and indeed currently they ent desire that we spend money on in- ator from Rhode Island. have to—they cannot be above 75 per- frastructure. But I think the only pos- Mr. CHAFEE. Mr. President, I ask cent of the poverty level and qualify. sible way, assuming it is not subject to that the Chair would be good enough to Now, this is a pretty low-income group. a point of order, that this amendment tell when I have used 3 minutes. Why is this amendment important? should be adopted is if the U.S. Senate As I understand it, we have 5 minutes Without this requirement, States will thinks that the demonstration high- on our side. have the ability to exclude from cov- way projects were a good thing. The PRESIDING OFFICER. That is erage a group of individuals who de- The demonstration highway projects correct. pend on this Medicaid coverage as their did not treat all States equally. As a Mr. CHAFEE. If the Chair could tell only source of health insurance cov- matter of fact, by being demonstration me at the end of 3 minutes, I would ap- erage. There is no place else they can projects, some States got a lot more preciate it. go. You say get private insurance. than others. So the distinguished Sen- The PRESIDING OFFICER. If the Well, they first cannot afford it. And ator is now looking at that and saying Senator is offering an amendment, he second, they all have preexisting condi- some States would lose and some needs to send it to the desk. tions, and so therefore would not be States would gain, but this is not a for- AMENDMENT NO. 2973 qualified. mula where everyone was allowed dem- (Purpose: To guarantee coverage under the Mr. President, there is no mandated onstration projects. This is a medicaid program for low-income aged, benefit package in this proposal. These nonformula. blind, and disabled individuals eligible for are the facts. We do not mandate a ben- The demonstrations were established supplemental security income benefits efit package. We leave that up to the by committee or by appropriation or in under title XVI of the Social Security Act) States. All we are saying is, you have that way. And anybody interested in Mr. CHAFEE. I am sending the to cover this group. And how do you de- whether this is a fair distribution amendment to the desk, an unprinted scribe this group? You describe them S 15806 CONGRESSIONAL RECORD — SENATE October 26, 1995 by the SSI description as we had it in On the other hand, it is also impor- Mr. CHAFEE. Why do we not save the welfare program. So, indeed, with tant to understand that by voting for time and just adopt it? no mandated benefit package, the this amendment that we are not going Mr. DOMENICI. We cannot do that States could say, ‘‘For this group there to be making a prince out of a frog; right now. It may come to pass. will be one aspirin a year.’’ That could that the underlying Medicaid bill Mr. EXON. I yield half my time to be done. But at least you have to cover which encompasses this amendment is, the Senator from Rhode Island. everybody in the group with whatever in the judgment of this Senator, a dis- Mr. ROCKEFELLER. Will the Sen- the benefit package is. aster. ator from Rhode Island yield? Will the Mr. President, I think it is very im- This amendment will help. I do not Senator from Rhode Island correct the portant to remember that we are giv- want to in any way diminish that. This misstatement of the Senator from West ing the States, over the next 7 years, is pregnant women, children, and the Virginia about pregnant women, chil- $800 billion—$800 billion, Mr. President. disabled, and it is a guarantee. The dren and disabled as opposed to the el- And they are going to receive their al- guarantee was not there before. derly? locations based on the fact of those The Senator is right when he says Mr. CHAFEE. I am going to stick whom they covered in 1995, and in the the States now have to make a deter- what we have here, which is we are group that they covered in which they mination under the current law what solely dealing with low-income individ- got their money are these disabled. So, ‘‘disabled’’ means. Good heavens, 50 dif- uals with disabilities. Mr. President, I Mr. President, these are a very, very ferent definitions coming in on ‘‘dis- tell you, when you are talking 75 per- low-income group in our society. They abled.’’ cent of poverty, you are really talking are being cared for very frequently by The point is, it is a good amendment about poor people. their parents and others, kept in the in a bad bill. The States will still lose But the key thing I want to stress community. And without this safety 30 percent of their Medicaid funding. In here is these folks are being cared for net they would have to in many cases the case of my State, it is a little more in the community very frequently by be institutionalized at a far higher than that. On nursing home protection, their parents. And do not think these cost. I hope my colleagues will join me Federal standards are wiped out. That are 6-year-olds and their parents are 35. in preserving this critical safety net. really does bring up the specter, and Their parents are frequently 65 and I yield time to Senator CONRAD. some say, ‘‘Well, you are just making a these individuals are 40 years old. But Mr. CONRAD. Mr. President, I am fuss over this.’’ What a fuss. The stand- they are being cared for in the commu- proud to join Senator CHAFEE in offer- ards we passed in 1987 by which you nity, because they have this safety net ing this amendment. Mr. President, could no longer tether, that is tie of Medicaid coverage that is there in simply put, this provides health care down, an elderly person in a nursing case they get ill. Otherwise, I am cer- support to the most severely disabled home or drug into passivity an elderly tain that they would end up in institu- individuals in our society. Senator person, is wiped out. So that is now tions at a far greater cost to the public CHAFEE and I received a letter of sup- possible under the underlying bill. and all of us. port from the Consortium for Citizens These are terrible things. Children So, Mr. President, I hope the amend- With Disabilities, 30 national organiza- with primary care needs, early detec- ment will be adopted. tions that work to support the dis- tion, early protection, no immuniza- Mr. COHEN. Will the Senator yield? I abled. They said, and I quote: tion—it is not a good bill. But the indicate my support for the amend- We believe that your amendment to estab- amendment is good and the Senator ment. lish a minimum floor of eligibility for chil- from Rhode Island has suggested an The PRESIDING OFFICER. Time has dren and adults with disabilities is a fun- amendment that ought to be adopted. expired. If the manager wishes to speak damental component of ensuring a basic So I just simply make that point and in opposition, he is entitled to have 5 safety net for low-income people with severe compliment the Senator significantly minutes restored in opposition. disabilities. for now getting the word ‘‘guaranteed’’ Mr. DOMENICI. I do not choose to Mr. President, health care is not an coverage into the legislation. I com- speak in opposition. Does any Senator option for these people, it is a neces- pliment him on that and urge my col- want to speak in opposition? What I sity. They have it today. They should leagues to support the Senator’s would like to do is take my 5 minutes not be at risk for losing it tomorrow. amendment. and I would like to yield 2 minutes of During Finance Committee delibera- Mr. EXON addressed the Chair. that to Senator COHEN. He can speak in tion, we received this communication. The PRESIDING OFFICER. The Sen- favor of it. It said: ator from Nebraska. Mr. EXON. Has all time been used on The PRESIDING OFFICER. Ten min- Mr. Senator, if you are a person with men- utes has expired in support. tal retardation, these services are not op- the amendment before us? tional. Remember, this is a lifelong condi- The PRESIDING OFFICER. The Sen- Mr. DOMENICI. I ask unanimous tion which cannot be cured like substance ator from Nebraska controls 1 minute, consent that the Senator have 2 min- abuse or unemployment. Also remember, it 50 seconds. utes to speak in favor of it. is not a self-inflicted condition, but rather Mr. CHAFEE. Mr. President, if I The PRESIDING OFFICER. The one that a person is born with. could have just a portion of that. manager is entitled to 5 minutes in op- Mr. President, States should not cut Mr. EXON. I will be glad to yield half position. The Senator from Maine is severely disabled people from Medicaid. of it to my colleague. recognized for 2 minutes. That is the premise of this amendment. Mr. DOMENICI. Wait a minute; wait Mr. COHEN. Mr. President, I thank I hope our colleagues will support it. a minute. How do we get all 10 minutes my friend. I rise in support of the Mr. ROCKEFELLER addressed the in favor of the amendment? I do not CHAFEE amendment. Senator CHAFEE Chair. want to argue against it. You cannot has tried valiantly to include the poor- The PRESIDING OFFICER. The Sen- allocate the time to the other side if est of the poor in our system, and for ator from West Virginia. they are in favor of the amendment. Is anyone to object to having the disabled Mr. ROCKEFELLER. Mr. President, that not the rule? If it is not, I am mis- included—I might say, it does not go first, I want to compliment the Sen- taken. far enough perhaps, because as I under- ator from Rhode Island, because actu- Mr. EXON. I do not think the rule stand the Senator’s amendment, it in- ally it was the Senator from Rhode Is- specifies that. But in a matter of fair- cludes pregnant women and children land and myself in the Finance Com- ness, I agree to the chairman’s—who and does not include elderly; it in- mittee who put up this amendment, wishes to speak in opposition? cludes disabled but it leaves it up to which won 17 to 3, and then it sort of Mr. CHAFEE. Mr. President, it is the States to define what ‘‘disabled’’ is. disappeared. It particularly dis- such an outstanding amendment. I do I know the Senator was eager to use appeared with respect to the disabled. not think there is any opposition. the SSI determination for ‘‘disabled.’’ It should be understood the Senator is Mr. DOMENICI. I am not so sure but Is that the Senator’s amendment? entirely correct in his amendment, and you are right. But I want to make sure Mr. CHAFEE. That is right. It has al- I urge my colleagues to support his we do not have all 10 minutes. I ready been adopted. Pregnant women amendment. thought we were going to save 5. and children up to the age of 12 and 100 October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15807 percent of poverty, that is covered. ‘‘(b) ADJUSTED GROSS INCOME LIMITATION.— they are only paying $700 or $500 in in- And also the disabled are to be covered, The aggregate amount of the credit which come tax, they do not get to use the but the definition of ‘‘disabled’’ was would (but for this subsection) be allowed by credit. Therefore, simply stated, my not made. subsection (a) shall be reduced (but not amendment makes the $500 per child below zero) by 20 percent for each $3,000 by Mr. COHEN. My understanding is which the taxpayer’s adjusted gross income tax credit a credit against both the in- now you have included the definition exceeds $60,000. come tax or the payroll tax. We spend that has been acknowledged under the ‘‘(c) QUALIFYING CHILD.—For purposes of the same amount of money—not a dime SSI determination. this section— more, not a dime less. But we cover 44 Mr. CHAFEE. As changed by the wel- ‘‘(1) IN GENERAL.—The term ‘qualifying percent more children. We cover about fare bill. child’ means any individual if— 31 million more children living in fami- Mr. COHEN. Then please let me lend ‘‘(A) the taxpayer is allowed a deduction under section 151 with respect to such indi- lies, and if we are going to spend this my strong support for that, and I want vidual for such taxable year, money for a credit, let us make sure to thank my friend from New Mexico ‘‘(B) such individual has not attained the they get it. for allowing me a moment or two to ex- age of 16 as of the close of the calendar year press my support. in which the taxable year of the taxpayer be- The second chart tells you what we Mr. CHAFEE. Mr. President, is this gins, and are talking about when we look at fam- the proper time to ask for the yeas and ‘‘(C) such individual bears a relationship to ily earnings and how much they pay in nays? the taxpayer described in section 32(c)(3)(B) income taxes—the actual numbers. A The PRESIDING OFFICER. It would (determined without regard to clause (ii) family making $20,000 a year is at thereof). about $458 in income tax. That would be appropriate. ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— Mr. CHAFEE. I do so. I ask for the The term ‘qualifying child’ shall not include not even pay for the credit for one yeas and nays on my amendment. any individual who would not be a dependent child. But that same family is spending The PRESIDING OFFICER. Is there a if the first sentence of section 152(b)(3) were over $1,500—$1,530—in payroll tax. My sufficient second? applied without regard to all that follows amendment says that the $500 per child There is a sufficient second. ‘resident of the United States’. tax credit can be used as a credit The yeas and nays were ordered. ‘‘(d) CERTAIN OTHER RULES APPLY.—Rules against the payroll tax, as well as an Mr. CHAFEE. Mr. President, I want similar to the rules of subsections (d) and (e) income tax, so that the family making to thank everyone. of section 32 shall apply for purposes of this section.’’ $20,000 will get some of the benefits of Several Senators addressed the ‘‘(c) CONFORMING AMENDMENT.—The table this massive program that we are pass- Chair. of sections for such subpart C is amended by ing. What is wrong with saying let us Mr. EXON. Mr. President, I thought striking the item relating to section 35 and make sure that the most number of he was next. I was mistaken. I believe inserting the following new items: children get the benefit? Senator BREAUX is next. ‘‘Sec. 35. Child tax credit. I yield our 5 minutes to the Senator ‘‘Sec. 36. Overpayments of tax.’’ I have seen some of the Republican charts that say, well, under this credit, from Louisiana. ‘‘(c) EFFECTIVE DATE.—The amendments The PRESIDING OFFICER. The Sen- made by this section shall apply to taxable this proposal, we get a huge credit ator from Louisiana. years beginning after December 31, 1995. against income tax. Sure, the problem that is most families pay more in pay- AMENDMENT NO. 2963 Mr. BREAUX. Mr. President, my col- roll tax, and it is no offset whatsoever (Purpose: To provide for a partially leagues, the largest item in the Fi- refundable child tax credit) nance Committee bill, by far, is the against the payroll tax. So for families $500 per child tax credit. It cost $141 making under $30,000 a year, for most Mr. BREAUX. Mr. President, I have of them it is no benefit at all. an amendment at the desk and ask it billion over 7 years. That is a lot of be reported. money. Some people think we should Look at this chart. This is every The PRESIDING OFFICER. The not have a tax cut at all. But this bill State in the country. This is the me- clerk will report. is going to have a tax cut in it. The dian household income. In Louisiana, it The bill clerk read as follows: largest one is going to be a per child is $25,000. Under the Republican pro- tax cut at $500 per child. I would think The Senator from Louisiana [Mr. BREAUX] posal, if you are in a family making proposes an amendment numbered 2963. that all of us, if we know it is going to less than $30,000 a year, you are not pass, should at least agree on one Mr. BREAUX. Mr. President, I ask going to get the benefit of a per child thing—the largest number of families unanimous consent that the reading of tax credit. So my proposition is very that need it should get it. the amendment be dispensed with. simple. If you want to add about 31 Here is what my amendment does. It The PRESIDING OFFICER. Without million more people to the rolls and addresses a problem that is very real. objection, it is so ordered. give them the benefit, for the same Simply stated, the Republican proposal The amendment is as follows: amount of money—exactly the same only is a credit against income tax. It amount of money—my credit goes out On page 1469, beginning on line 2, strike all is not a credit against the largest tax through page 1471, line 20, and insert the fol- to families making up to $75,000 a year. lowing: that people pay in this country, that is, It starts to phase out at $60,000 and SEC. 12001. CHILD TAX CREDIT. the payroll tax. For 75 percent of eliminates it at $75,000 per family, but (a) IN GENERAL.—Subpart C of part IV of American families, they pay more in it makes it refundable against a pay- subchapter A of chapter 1 is amended by re- payroll tax than in income tax. This roll tax. By spending the same amount designating section 35 as section 36 and by child tax credit is not an offset against of money, we cover 31 million more inserting after section 34 the following new the payroll tax. This chart shows that. children. I think that is what we are section: The blue line is the payroll taxes that trying to do. ‘‘SEC. 35. CHILD TAX CREDIT. people pay on average. The orange line ‘‘(a) ALLOWANCE OF CREDIT.— is an estimate of their income tax. I got this wonderful note from the ‘‘(1) GENERAL RULE.—There shall be al- So you see, families making $16,000, Christian Coalition saying they are lowed as a credit against the tax imposed by all the way up to families on this chart going to target this amendment. They this subtitle for the taxable year an amount say, ‘‘We are going to portray this equal to $500 multiplied by the number of making almost $27,000, are paying far qualifying children of the taxpayer. more in payroll taxes than they are amendment as a vote to gut the $500 ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— paying in income taxes. per child tax credit.’’ It does not gut it; The credit allowed by paragraph (1) for a tax- The figures show that under the Re- it is the same amount of money. We able year shall not exceed the sum of— publican proposal, something like 44 are just covering 31 million more chil- ‘‘(A) the tax imposed by this subtitle for percent of all the children in America dren in this country by making it a the taxable year (reduced by the credits al- would only get a partial or no credit at credit against the payroll tax. They lowable against such tax other than the all, because the credit is only against say they want to make sure they get credit allowable under section 32), and ‘‘(B) the taxes imposed by sections 3101 and the income tax. Many families do not the most number of people covered. 3201(a) and 50 percent of the taxes imposed even pay that much in income tax. That is exactly what my amendment by sections 1401 and 3211(a) for such taxable If you have a family that has two does. They say, well, his starts to phase year. children, that is a $1,000 credit. But if out at $60,000 per year. That is true, S 15808 CONGRESSIONAL RECORD — SENATE October 26, 1995 but it goes up to the same amount, Mr. DOMENICI. Mr. President, I rise There is a sufficient second. $75,000, that the original Republican in opposition to the amendment. First The yeas and nays were ordered. proposal did. Just by making it refund- of all, everybody should know this Mr. DOMENICI. Mr. President, I able against the payroll tax—— amendment starts phasing out the move to table that amendment, and I The PRESIDING OFFICER. The time child tax care credit at $60,000. The ask for the yeas and nays. of the Senator has expired. credit that we have in the Senate bill, The PRESIDING OFFICER. Is there a Mr. BREAUX. Forty-four percent when coupled with the earned-income sufficient second? more children are covered. tax credit, achieves the same goal as There is a sufficient second. I urge adoption of this amendment. the Breaux amendment. It relieves the The yeas and nays were ordered. Mr. DOMENICI. Mr. President, I lower-income folks of the payroll bur- 1 yield 2 ⁄2 minutes to the Senator from den. His would be to the contrary. The Mr. DOMENICI. I think it comes to Minnesota. child credit and EIC is already in ex- our side. Senator BOND is next. Mr. GRAMS. Mr. President, first let cess of the family’s Federal payroll Mr. EXON. When Senator BOND fin- me say that I agree with the Senator taxes. The employee and the employer ishes, I wish to yield the 5 minutes on from Louisiana in wanting to make share for families living at or near the our side to the discretion of the Sen- this tax cut refundable against the poverty line. A family earning under ator from Arkansas. FICA or payroll tax, because I argued $12,500, with two children, and families AMENDMENT NO. 2975 many months and many times that we with earnings under $15,500 will have should do this and expand the tax cred- (Purpose: To increase the health insurance the same effect under our bill. Yet, we deduction for self-employed individuals it, because FICA is one of the most re- will be able to cover more Americans and to strike the long-term care insurance gressive. provisions) But this is not the way to do it. This because we do not stop it at $60,000. is not the way to pit one group of hard- So I do not believe we ought to do Mr. BOND. Mr. President, I thank my working, tax-paying families against this. Frankly, I am not a great fan of good friend and eminent leader of the another group of families that struggle refundable anything because I believe Budget Committee for this time. I send every day to try and make ends meet, they are rampant with fraud. We just an amendment to the desk on behalf of to provide for his or her family. got through a situation with EITC, and myself and Senator PRYOR and ask for Nearly 75 percent of the tax credits it is about 25 percent fraudulent be- its immediate consideration. in the Republican plan go to families cause we are giving people a check The PRESIDING OFFICER. The making under $75,000 a year, those back as a refundable tax credit. Some clerk will report. hard-working families who have been may be for that. I do not think it is a The assistant legislative clerk read asked to pay. very good policy. The same thing will as follows: happen to this one if we do it this way. This is the real crux of the argument: The Senator from Missouri [Mr. BOND], for Mr. GRAMS. If the Senator will They have been asked to pay more of himself and Mr. PRYOR, proposes an amend- their income to Federal taxes every yield, the Senator from Louisiana said ment numbered 2975. more children would be covered. Actu- year, year after year. Our plan does Mr. BOND. Mr. President, I ask unan- target low-income families with in- ally, under his bill, because he would limit the age at 15 and not 17, as in our imous consent that reading of the creases in the EITC credit, already giv- amendment be dispensed with. ing $24 billion this year, growing to proposal, 5 million children between The PRESIDING OFFICER. Without like $30 billion, and in the next year, the ages of 16 and 17, whose families’ objection, it is so ordered. $40 billion plus. So those families are income fall below $75,000 a year, would seeing an increase in their earned-in- not be denied this child tax credit. It The amendment is as follows: come tax credit. They are getting tax would cover fewer children and not On page 1553, beginning with line 13, strike relief or more money in their pockets. more. So I think the whole crux of this all through page 1588, line 24, and insert: But who is forgotten? The families plan is to give tax relief for families. SUBCHAPTER A—HEALTH INSURANCE COSTS OF forgotten are those making between Mr. DOMENICI. Mr. President, in SELF-EMPLOYED INDIVIDUALS $30,000 and $75,000 a year. They are for- closing, I do not believe we ought to SEC. 12201. INCREASE IN DEDUCTION FOR gotten for the EITC program. They do stop a child tax credit at 16 years of HEALTH INSURANCE COSTS OF not get the benefits here. Yet, they are age. I have been through this, and that SELF-EMPLOYED INDIVIDUALS. remembered one day of the year—tax is about the time they start to get (a) INCREASE IN DEDUCTION.—Section 162(l) day—when they are asked to spend really expensive. There we are stopping is amended— more and more of their money. I would it just about at that time, while in our (1) by striking ‘‘30 percent’’ in paragraph like to work with the Senator from bill we add two more years, which is (1) and inserting ‘‘the applicable percent- age’’, and Louisiana to try and define ways to much better in terms of really helping (2) by adding at the end the following new shrink the size of the Federal Govern- middle income families when they need paragraph: it the most. ment, to save additional moneys, to be ‘‘(6) APPLICABLE PERCENTAGE.—For pur- able to expand even farther the tax Mr. ABRAHAM. Mr. President, I will poses of paragraph (1), the applicable per- credits, to give more persons tax relief. vote against the Breaux amendment. centage shall be determined as follows: But let us not pit one group who are Although I have expressed support for ‘‘For taxable years The applicable in asked to pay and pay, and pay more of making the $500-per-child tax credit re- beginning in percentage is: their income, as well as their FICA. fundable against the FICA tax, this 1996 and 1997 ...... 60 Their FICA taxes are also being de- amendment is the wrong way to 1998 and thereafter ...... 100.’’ ducted. achieve this objective. First, it dra- Let us give them credits and not pit (b) EFFECTIVE DATE.—The amendments matically limits the $55 credit for made by this section shall apply to taxable one against the other. Let us not take many middle-class families. Second, it years beginning after December 31, 1995. money from the taxpayers. Let us work limits the number of children who to shrink the size of the Government would qualify for the credit. Mr. BOND. There is a great injustice and give more Americans more of their For families earning between $60,000 in our tax law, an injustice that I sus- money back in the form of tax credits. and $75,000, this amendment would un- pect everyone in this body has ad- I would like to work with the Senator fairly prevent them from receiving the dressed at some time or another. That from Louisiana in doing that. But I do $500 child tax credit. is the inequity in the deductibility of not support this, and I urge my col- It is my hope that FICA health insurance costs. leagues to vote no on the amendment. refundability will be raised during con- I do not think I need to tell my col- Mr. BREAUX. Will the Senator from ference and that a solution will be leagues that corporations historically New Mexico yield me 60 seconds? I do adopted which will provide much need- can deduct 100 percent of the health not think I have any time left. ed tax relief to all American families. care insurance premium that they pay The PRESIDING OFFICER. The Sen- Mr. BREAUX. Mr. President, I ask for employees, and the employees do ator from Louisiana has used his time. for the yeas and nays. not have to declare any of the em- The Senator from New Mexico has 2 The PRESIDING OFFICER. Is there a ployer-paid health insurance premiums minutes 30 seconds. sufficient second? as income. At the same time, the self- October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15809 employed farmers, the small business was disappointed that the chairman’s ment. We urge all of your colleagues to sup- men and women of this country cannot markup did not include any progress port your amendment. deduct more than 30 percent. on the deduction front. I offered an Sincerely, This body took a great step forward amendment to increase this deduction American Farm Bureau Federation, As- earlier this year when we reinstated for sociated Builders and Contractors, to 50 percent—from 30 percent to 50 Chamber of Commerce of the United last year the 25-percent deduction and percent. I was further disappointed States, H.E.A.L. (Healthcare Equity increased that to 30 percent. Frankly, when this amendment failed on a Action League),1 National Association that is not enough. party-line vote. for the Self-Employed, National Asso- In my role as chairman of the Small I am very proud to join with Senator ciation of Home Builders, National Business Committee, I have heard from BOND this evening on the floor of the Cattlemen’s Association, National Fed- small businesses in my State and Senate in an amendment to increase eration of Independent Business, Na- across the country who are concerned, the self-employed deduction not to 50 tional Restaurant Association, Na- and greatly concerned, rightfully so, tional Retail Federation, Small Busi- percent, Mr. President, but to 100 per- ness Legislative Council, Society of about health care. cent. There is where it should be, and American Florists. The occupant of the chair and I that is what our amendment does. know, because we have worked on It is an issue of parity. It is an issue SMALL BUSINESS, health care issues over recent years, of increasing coverage for small busi- LEGISLATIVE COUNCIL, one of the biggest problems we face are ness and for farmers, for making insur- Washington, DC, October 24, 1995. those who are uninsured, because they ance more affordable. It would move Hon. CHRISTOPHER BOND, are limited to a 30-percent deduction as the 30-percent rate to 60 percent in 1996 Chairman, Committee on Small Business, U.S. self-employed people for health care in- for deduction. In 1997, it would con- Senate, Washington, DC. surance premiums. tinue at 60 percent. By 1998, Mr. Presi- DEAR MR. CHAIRMAN: We strongly support Under the amendment that I am of- your amendment to the budget reconcili- dent, we would have a 100-percent de- ation bill to increase the deduction the self- fering today with Senator PRYOR, we duction for small businesses, for the employed may take for their own health care will increase the deduction for self-em- self-employed, and for the farm fami- expenses. ployed to 60 percent next year, 60 per- lies of America. I think it would do As you know, sole-proprietors, partners cent the following year, and then in more to basically make insurance more and S Corporation shareholders can now de- the year 1998, increase that to 100 per- affordable and to provide insurance for duct 30 percent of such costs. For many cent. Mr. President, I believe that is many, many more millions of Ameri- years, these individuals were not allowed to the way to achieve equity and ensure cans that have labored under a very in- deduct health care costs at all. For a time, the deduction was 25 percent, but it was a that more of the self-employed are in- equitable situation. sured. temporary deduction and we found ourselves I reserve the remainder of my time. fighting each year to justify a provision that The offset to this provision—we seek Mr. BOND. Mr. President, I thank my to offset by taking out the new pro- should not require a constant defense. distinguished colleague from Arkansas, The prohibition on such deductions is an gram for long-term care insurance in- who has been a champion of this deduc- anachronism from the 1950s, based on an out- cluded in the Finance Committee tion for a long time. It is a pleasure to dated concept of how business entities markup. I think it is a good idea down work with him on this amendment. should be taxed under our system. In the the road, or perhaps even before we I want to advise my colleagues that modern day business environment, this pol- complete work on this bill, to start we have received strong letters of sup- icy is simply unfair. Frankly, we believe, if providing some incentives for long- port from a whole host of organiza- not for the issue of revenue, Congress would term insurance. I think it makes a have already changed this law. It is time to tions—agriculture and small business, address this inequity once and for all time. great deal of sense. I think first we including the Farm Bureau Federation, have to address the basic inequity. The Small Business Legislative Council ABC, Chamber of Commerce, H.E.A.L., [SBLC] is a permanent, independent coali- I reserve the remainder of my time. Association for Self-Employed, Asso- tion of nearly one hundred trade and profes- Mr. PRYOR. Mr. President, I thank ciation of Home Builders, Cattlemen’s sional associations that share a common my colleague from Missouri for yield- Association, National Restaurant Asso- commitment to the future of small business. ing to me, and I thank the distin- ciation, NFIB, National Retail Federa- Our members represent the interests of small guished manager, Senator EXON of Ne- tion, Small Business Legislative Coun- businesses in such diverse economic sectors braska, for giving me the opportunity as manufacturing, retailing, distribution, cil, Society of American Florists. professional and technical services, con- to address this issue. I ask unanimous consent this be We all know last spring the Congress struction, transportation, and agriculture. printed in the RECORD. Our policies are developed through a consen- passed and the President signed into There being no objection, the mate- law H.R. 831. This was a bill to restore sus among our membership. Individual asso- rial was ordered to be printed in the ciations may express their own views. For the 25-percent health care deduction RECORD, as follows: your information, a list of our members is for the self-employed and for the farm- enclosed. SUPPORT THE BOND/PRYOR AMENDMENT ers of America. As my colleagues may Sincerely, OCTOBER 25, 1995. remember, Mr. President, this deduc- GARY F. PETTY, tion had expired and the self-employed Hon. CHRISTOPHER BOND, Chairman of the Board. Chairman, Senate Committee on Small Business, were receiving absolutely no health Washington, DC. MEMBERS OF THE SMALL BUSINESS LEGISLATIVE care deduction at all for a period of DEAR SENATOR BOND: We, the undersigned time. It was an absurd position in organizations, support your and Senator COUNCIL which to place small businesses and the Pryor’s amendment to Reconciliation to in- Air Conditioning Contractors of America, family farm. crease health insurance deductibility for the Alliance for Affordable Health Care, H.R. 831 also increased the deduction self-employed. Alliance of Independent Store Owners and for 30 percent for 1995 and for all years For years, large corporations have been de- Professionals, in the future. It was a very good step, ducting 100 percent of the cost of their American Animal Hospital Association, health insurance while self-employed busi- a positive step for small business and American Association of Equine Practi- ness owners like sole proprietors, Subchapter tioners, for the family farm. S corporations and partnerships have been I was proud, by the way, to join Sen- American Association of Nurserymen, limited to 30 percent—which was just in- American Bus Association, ator ROTH and Senator BOND and oth- creased five percent this year. This is simply American Consulting Engineers Council, unfair and must be changed. ers in a letter with 73 of our colleagues American Council of Independent Labora- We believe that before the Congress au- who promised not to offer or support tories, any amendment on the floor. It was a thorizes a costly, new deduction for any strong statement, but we underscored other kind of health care benefit self-em- ployed small business owners and farmers 1 The Healthcare Equity Action League (HEAL) our recognition of the importance of should get 100 percent health insurance de- was formed in 1991, and is the oldest and largest the health care deduction for the self- ductibility. business community coalition supporting healthcare reform. It is comprised of over 600 companies, asso- employed. Thank you for your leadership on behalf of Last week when the tax bill came be- ciations, and local Chambers of Commerce, rep- the self-employed. We look forward to work- resenting over 1 million employers and 35 million fore the Senate Finance Committee, I ing with you to pass this important amend- employees. S 15810 CONGRESSIONAL RECORD — SENATE October 26, 1995 American Gear Manufacturers Association, National Paperbox Association, As you know, the Chamber has long main- American Machine Tool Distributors Asso- National Shoe Retailers Association, tained that the self-employed and unincor- ciation, National Society of Public Accountants, porated small businesses should receive the American Road, Transportation Builders National Tire Dealers & Retreaders Asso- same tax treatment currently available to Association, ciation, corporations. Sound tax policy dictates full American Society of Interior Designers, National Tooling and Machining Associa- deductibility of premium of self-insurance American Society of Travel Agents, Inc., tion, cost as ordinary and necessary business ex- American Subcontractors Association, National Tour Association, penses. There is no valid tax policy reason American Textile Machinery Association, National Wood Flooring Association, for treating the smallest businesses any dif- American Trucking Associations Inc., NATSO. Inc., ferently. It is vitally important to the na- American Warehouse Association, Opticians Association of America, tion’s economic security that the smallest Organization for the Protection and Ad- AMT—The Association of Manufacturing businesses, frequently new and often strug- vancement of Small Telephone Companies, Technology, gling, should be granted a measure of secu- Petroleum Marketers Association of Amer- Architectural Precast Association, rity equal to that of larger corporations. Associated Builders & Contractors, ica, Power Transmission Representatives Asso- Once again, the Chamber commends your Associated Equipment Distributors, work on behalf of our nation’s small busi- Associated Landscape Contractors of ciation, Printing Industries of America, Inc., nesses and looks forward to working with America, Professional Lawn Care Association of you towards resolving this issue. The inabil- Association of Small Business Develop- America, ity of the nation’s smallest businesses to de- ment Centers, Promotional Products Association Inter- duct the full cost of their health insurance, Automotive Service Association, national, and the inequity in being denied an advan- Automotive Recyclers Association, Retail Bakers of America, tage granted to their incorporated fellows, Automotive Warehouse Distributors Asso- Small Business Council of America, Inc., has been a thorn in the side of small business ciation, Small Business Exporters Association, and the self-employed for years. It is time Bowling Proprietors Association of Amer- SMC/Pennsylvania Small Business, that thorn is removed and equality is re- ica, Society of America Florists, stored. Building Service Contractors Association Turfgrass Producers International. Sincerely, International, R. BRUCE JOSTEN. Christian Booksellers Association, NATIONAL ASSOCIATION Cincinnati Sign Supplies/Lamb and Co., FOR THE SELF-EMPLOYED, PROMOTIONAL PRODUCTS Council of Fleet Specialists, Washington, DC, October 25, 1995. ASSOCIATION INTERNATIONAL, Council of Growing Companies, Hon. KIT BOND, Irving, TX, October 26, 1995. Direct Selling Association, Chairman, Senate Small Business Committee, Hon. CHRISTOPHER BOND, Electronics Representatives Association, Washington, DC. Chairman, Committee on Small Business, Florists’ Transworld Delivery Association, DEAR CHAIRMAN BOND: It is my understand- U.S. Senate, Washington, DC. Health Industry Representatives Associa- ing that you intend to offer an amendment tion, during the budget debate that would raise DEAR MR. CHAIRMAN: On behalf of the Pro- Helicopter Association International, the health insurance deduction for the self- motional Products Association International Independent Bankers Association of Amer- employed from the current 30 percent level (PPA), I wish to express our support for your ica, to 100 percent. On behalf of the National As- amendment to increase the deduction the Independent Medical Distributors Associa- sociation for the Self-Employed, I com- self-employed may take for their own health tion, pletely support your efforts. care costs. International Association of Refrigerated Raising this deduction level would create Under current law, they may deduct only Warehouses, tax equity between corporate America and 30 percent of their health care costs, and the International Communications Industries small business. Currently, large businesses current deduction was only recently made Association, can deduct 100 percent of the premiums they permanent. For the millions of sole propri- International Formalwear Association, pay on behalf of their employees for health etors, partners, and S Corporation sharehold- International Television Association, insurance coverage. The self-employed can ers, including PPA members, this is an un- Machinery Dealers National Association, only deduct 30 percent of their costs. And the fair penalty with no sound basis in tax pol- Manufacturers Agents National Associa- self-employed who pay for their own insur- icy. tion, ance are primarily paying with after-tax dol- The current policy dates back to another Manufacturers Representatives of Amer- lars, effectively making the policies more ex- era in tax policy, when business entities such ica, Inc., pensive. A 100-percent deduction would give as sole proprietorships were viewed upon Mechanical Contractors Association of the self-employed the equity they deserve. with great suspicion. Now, decades later, America, Inc., Also a 100-percent deduction would enable economic and social policy has evolved to National Association for the Self-Em- many self-employed to purchase a health in- the point where we find more and more indi- ployed, surance policy, a luxury many cannot cur- viduals opting to structure their small busi- National Association of catalog Showroom rently afford. I believe passing a 100-percent ness in such a fashion. These small busi- Merchandisers, deduction would significantly decrease the nesses are an increasingly important source National Association of Home Builders, number of uninsured individuals in this of strength in our economy. National Association of Investment Com- country. It is time to give them the same oppor- panies, We have polled our 320,000 self-employed tunity to deduct their health care costs as National Association of Plumbing-Heating- members and 100-percent deductibility of any other business. Cooling Contractors, health insurance premiums is the No. 1 issue The promotional products industry is the National Association of Private Enter- of concern to them. Please do not hesitate to advertising, sales promotion, and motiva- prise, call on me. I stand ready to assist your ef- tional medium employing useful articles of National Association of Realtors, forts in any way I can. merchandise imprinted with an advertiser’s National Association of Retail Druggist, Sincerely, name, logo, or message. Our industry sales National Association of RV Parks and BENNIE L. THAYER, are over $6 billion and PPA members are Campgrounds, President/CEO. National Association of Small Business In- manufacturers and distributors of such goods and services. vestment Companies, CHAMBER OF COMMERCE OF THE Sincerely, National Association of the Remodeling In- UNITED STATES OF AMERICA, H. TED OLSON, MAS, dustry, Washington, DC, October 26, 1995. President. National Chimney Sweep Guild, Hon. CHRISTOPHER BOND, National Electrical Contractors Associa- Chairman, Small Business Committee, tion, U.S. Senate, Washington, DC. NATIONAL HOME National Electrical Manufacturers Rep- DEAR KIT: The U.S. chamber of Commerce FURNISHINGS ASSOCIATION, resentatives Association, Federation of 215,000 businesses (96% of Washington, DC, October 26, 1995. National Food Brokers Association, whom are small businesses), 3,000 state and Hon. CHRISTOPHER BOND, National Independent Flag Dealers Asso- local chambers of commerce, 1,200 trade and Chairman, Committee on Small Business, U.S. ciation, professional organizations, and 75 American Senate, Washington, DC. National Knitwear & Sportswear Associa- chambers of commerce abroad strongly sup- DEAR MR. CHAIRMAN: On behalf of the Na- tion, ports your small business amendment to the tional Home Furnishings Association National Lumber & Building Material Balanced Budget Reconciliation bill. Your [NHFA], I wish to express our strong support Dealers Association, amendment would allow the self-employed for your amendment to the budget reconcili- National Moving and Storage Association, and small businesses to deduct 100% of their ation bill to increase the deduction the self- National Ornamental & Miscellaneous health insurance costs, a benefit currently employed may take for their own health care Metals Association, available only to large corporations. costs. It is long overdue. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15811

It is unfair to penalize small business own- Mr. DOMENICI. Senator DOLE wants ductibility for the self-employed and ers solely because they elect to do business to be recognized in opposition. small businesses. We are most anxious as a sole proprietorship, partnership, or S Mr. DOLE. Only in opposition to the to work cooperatively with colleagues Corporation, yet that is what the current tax long-term care. code does with respect to their own health on both sides to accomplish this. care costs. I think in this matter, a lot of the de- Mr. DOMENICI. I yield back any As you know, for the first time this year, bate in the last 2 or 3 days has been time I had in opposition. the self-employed can deduct 30 percent of long-term care—Medicare, Medicaid. Several Senators addressed the their health care costs. For many years, We are trying to get the younger peo- Chair. they were not allowed to deduct even that ple involved in long-term care so that The PRESIDING OFFICER. The Sen- much. We all know what health care costs when they arrive at their senior years, ator from Arkansas has 2 minutes and these days, and it is simply unfair to impose they will have long-term care through such a harsh penalty which does not have 9 seconds. the private sector. any sound tax policy justification to support Mr. PRYOR. Will Senator EXON like it. It is something we have worked on in The NHFA represents approximately 2,800 a bipartisan way in the Finance Com- some time? retailers of home furnishings throughout the mittee for years. We finally have it in Mr. EXON. I will wait until the Sen- United States. Thank you for your efforts on the bill. We believe it is a very good ator finishes. our behalf. provision. Mr. PRYOR. Mr. President, just for 1 Sincerely, I do not object to the amendment minute. On many occasions we, all of PATRICIA N. BOWLING, that is pending. I hope they can find Executive Vice President. us, I assume, have gone to town meet- another revenue source. I support what ings or wherever and said we believe WORLD FLOOR Senator BOND and Senator PRYOR are the self-employed, small business, COVERING ASSOCIATION, trying to do. The self-employed should farmers of our country need to have Washington, DC, October 26, 1995. have the same rights as everyone else, the same rights and same deductibil- Hon. CHRISTOPHER BOND, the same deduction. I hope that if we ity, especially in purchasing their Chairman, Committee on Small Business, U.S. can find another revenue source—be- health care coverage for themselves Senate, Washington, DC. cause I really believe the long-term DEAR MR. CHAIRMAN: On behalf of the and their employees. This is exactly World Floor Covering Association [WFCA], care amendment, although this is very what Senator BOND and I are trying to representing floorcovering retailers through- important, is just as important, or we craft tonight, that opportunity. I hope out the United States, I wish to express our will be back here in 10, 15, 20 years, we can give that to these individuals strong support for our amendment to the somebody will be back here wondering who truly create the jobs in America budget reconciliation bill to increase the de- why we did not do something to get and who really are deserving of this op- duction the self-employed may take for their people interested in buying insurance portunity to participate in the health own health care costs. It is about time this and getting a deduction. inequity in our tax policy was resolved once care system of America. and for all. I hope we can resolve it before we I hope we can work out something Mr. BOND. Now, Mr. President, I have the vote. and I pledge my best efforts to do so. The PRESIDING OFFICER. Is there know there are a number of my col- Mr. EXON. Mr. President, do I have objection to the request? leagues who feel very strongly about any time remaining? the long-term care insurance program. Without objection, it is so ordered. Mr. DOMENICI. Mr. President, we The PRESIDING OFFICER. The Sen- We have had discussions about finding said we had no objection. ator from Nebraska has 1 minute and other offsets to this amendment so The PRESIDING OFFICER. The re- 15 seconds. that we may be able to start on that quest is agreed to. Mr. EXON. I would like to use that 1 long-term care prospect. I will be most The Senator from New Mexico. minute, if I might, for a brief colloquy anxious to work with my colleagues be- Mr. DOMENICI. Mr. President, I between myself and the chairman of cause I think everybody here at one think we were entitled to 5 minutes in the committee. I think we can jointly time or another has expressed his or opposition, because the other side was announce some good news. I think we her strong support for the full deduct- in favor. But I am just going to take a are moving quite well here. The ibility of health care. minute and say I compliment Senator amendments I have next, that I think With that, I ask unanimous consent BOND for what he is trying to do. But I, are agreed to on the other side—next that I be permitted to modify the too, hope he will find another offset, will be Senator BIDEN, then Senator amendment prior to a vote on it. The PRESIDING OFFICER. Is there because I truly believe, in the midst of SNOWE, then Senator DORGAN, then objection? a national debate on Medicare and Senator PHIL GRAMM of Texas, and Mr. DOMENICI. Reserving the right Medicaid, much of which is long-term then Senator KERRY of Massachusetts. to object, I do not understand what care, we have come to the conclusion I am pleased with the way we are co- that means. that the missing link out there is that operating on both sides and the fact Mr. BOND. Mr. President, if I could not many people have long-term care the Senators are here, prepared to offer respond. protection. their amendments in a timely fashion. Mr. DOMENICI. You mean, if you That is getting to be a bigger and Is that the schedule for the next find another source of revenue? bigger burden of our Government. We amendments, in that order? are going to be less and less able to do Mr. BOND. There are minds far Mr. DOMENICI. Yes. I would make it. That we start, in this bill, moving brighter than mine and people with far sure and confirm on our side that, in the direction of letting that happen greater access to the intricacies of this when we have done Senator GRAMM of for people who want to save for them- measure who are embarking on a good- Texas, it is my calculation that we will selves and buy insurance and get an ap- faith effort to find offsets to get them have had 8 of our 10, still leaving us propriate credit, seems to me to be scored by the Joint Tax Committee. with 2. If that is everybody’s under- very positive. I hope the Senator from I sincerely hope we can find a way to standing, then I am perfectly in accord. accommodate both the long-term in- Missouri, for whom I have great re- surance and the health care. I believe spect, would agree with that. Mr. EXON. It appears to me that is very strongly that the health care de- The PRESIDING OFFICER. The Sen- accurate. ductibility for self-employed must be ator from Missouri. Mr. WELLSTONE. Will the Senator done. I would like to be able to work Mr. BOND. Mr. President, I cannot yield for just a moment? I did not hear with my colleagues who support the disagree with a thing my distinguished the Senator from Nebraska. What was long-term insurance program so that colleague from New Mexico has said. I the order of the next 50 minutes, did he can be accomplished. had the pleasure of meeting with busi- say? At this point we do not have an off- ness men and women in his State. Both Mr. EXON. The next amendments, 10 set. I want to make sure this measure of these are important in his State, my minutes each, equally divided. The is before us. State, and the rest of the country. next will be Senator BIDEN followed by The PRESIDING OFFICER. Is there I do want to make sure this bill has Senator SNOWE followed by Senator objection? the deductibility phased in, full de- DORGAN followed by Senator PHIL S 15812 CONGRESSIONAL RECORD — SENATE October 26, 1995 Gramm of Texas followed by Senator to take a look at what is happening was, and is, my dream for my children. KERRY of Massachusetts. here, very quickly, in the limited It remains the dream of every middle- With that, I yield 5 minutes to Sen- amount of time that I have. This is class American family. ator BIDEN, from the State of Dela- what has happened since 1980. But, that dream is now at risk. This ware. The orange represents the cost of last summer, a poll was conducted of The PRESIDING OFFICER. The Sen- public college tuition. I want to make undergraduate students and parents ator from Delaware. sure we understand now I am talking with children in college. Of those sur- MOTION TO COMMIT about State universities. I am not talk- veyed, 87 percent—nearly 9 out of every Mr. BIDEN. Mr. President, I send a ing about private universities, whether 10 Americans—believe that the cost of motion to the desk and ask for its im- the Syracuses or the Harvards or the college is rising so fast that it will mediate consideration. Yales or the Georgetowns of the world, soon be out of reach for most Ameri- The PRESIDING OFFICER. The which are a great deal more expensive cans. clerk will report. than the cost of public tuition and fees. It should be no surprise why the over- The assistant legislative clerk read And I am not even talking about room whelming majority of Americans be- as follows: and board. I am not even talking about lieve that. At the rate we are going, it The Senator from Delaware [Mr. BIDEN] that—just college tuition and fees. is true. It is getting harder and harder proposes a motion to commit with instruc- Since the 1980’s the college tuition and for middle-class Americans to afford a tions. fees for public universities have in- college education. Mr. BIDEN. Mr. President, I ask creased 236 percent. The median house- It makes you begin to wonder what unanimous consent that reading of the hold income in America has gone up 82 exactly the word public means when motion be dispensed with. percent. you say ‘‘public higher education.’’ The PRESIDING OFFICER. Without If you go back to 1980 you can see objection, it is so ordered. how every single, solitary year the gap A college education is slipping out of The motion is as follows: is widening, in what I do not know any- reach of middle-class Americans. And, if they still want to fulfill the dream, MOTION TO COMMIT WITH INSTRUCTIONS one would disagree with is the ultimate Mr. President, I move to commit the bill S. middle-class dream most American it means that more and more young 1357 to the Committee on Finance with in- families have, like the one my father people must borrow more and more structions that the Committee on Finance had, he never went to college: give my money to go to college. report the bill back to the Senate within 3 son and my daughter a college edu- One more statistic—and perhaps the days (not to include any day the Senate is cation. one that boggles my mind the most. Of not in session) with identical language, ex- When I went to school, this gap was all the money ever borrowed under the cept that the Committee on Finance shall in- Federal Government’s guaranteed stu- clude a provision in the bill which would pro- not so wide. If you take a look at what vide tax relief to middle-class American fam- has happened in terms of, again, in- dent loan program, 22 percent of it has ilies and which would help middle-class fami- come for median families, middle-in- been borrowed in the last 2 years. lies meet the rapidly rising costs of a higher come families, in 1980, 4.5 percent of Let me say that again. The guaran- education by providing a tax deduction of up median household income was what it teed student loan program has been to $10,000 per year for the costs of a college cost to send someone to college. Now with us for 30 years. And, of all the education for individual taxpayers with ad- that is almost doubled, it is 8.4 percent. money borrowed during that time, al- justed gross income of not more than $90,000 That is for one child. most one-fourth of it has been bor- and for married couples with adjusted gross incomes of not more than $120,000. The Com- The bottomline is it is getting in- rowed in just the last 2 years. mittee on Finance should also include a pro- credibly difficult for middle-class fami- We are saddling the next generation vision which offsets the costs of this pro- lies, or any family to send their child with enormous debt before their adult posed tax deduction by restricting the to college. So the result is, in 1980, as lives even begin. And, I am not talking growth of tax expenditures, except for the I said, it took 4.5 percent of the median about the abstract terms of the Federal deductions for mortgage interest, health in- household income to pay for tuition debt. No, this is saddling the next gen- surance, state and local taxes, and charitable and fees. I am not talking, now, about eration with individual, personal debt. contributions. room and board. Today it takes 8.4 per- When today’s college students walk Mr. BIDEN. Mr. President, this goal cent, almost double, just for tuition down the aisle at graduation, they are is straightforward. It is simple and I and fees for a public university. handed not only a diploma, but a big i- think consistent with what I heard ev- Education is one of the best invest- o-u. And, for too many, it is either eryone over the last 2 years talk about. ments we can make in American soci- that, or no college at all. We all stand before this body, in both ety. I have voted for investment tax So, I have a very simple proposition. parties—I do not question the motiva- credit for businesses. I voted for tax tion of anyone in either party—and we We should give a tax deduction of up to credits for them buying machinery and $10,000 per year for the costs of a col- always talk about the need to give im- all of those things which make sense in mediate relief to middle-class tax- lege education. Under my motion to re- my view. commit, this tax deduction would be payers. Admittedly, in this bill there is I can think of nothing that makes limited to single taxpayers with in- some relief for middle-class taxpayers more sense than encouraging American comes under $90,000 and to married in the tax portion, and that is the $500 families to invest in a post-high school couples with incomes under $120,000. child care tax credit. I would argue—I education for their children. It seems And, it would be paid for by limiting will not take the time now—the addi- to me it is about time they should get the growth—not cutting, just limiting tional cost to middle-class families as a break. the growth—in tax expenditures. a consequence of the cuts in Medicare Mr. President, to reiterate, this mo- and Medicaid will offset that, but that tion to recommit is simple. It instructs Mr. President, education is one of the is a different question. the Finance Committee to include in best investments we as a society can One of the things we also talk about the budget reconciliation bill a tax de- make. It is one of the best measure- is the goal and dream of every Amer- duction of up to $10,000 for the costs of ments of future economic well-being. ican family, whether it is the richest a college education. And, it is more important now than businessman or poorest welfare moth- Let me tell you why this is impor- ever before. Previous generations could er, and every middle-class family, and tant. In my years of public service, I make a solid middle-class living with that is providing for the education for have found that no matter what dif- only a high school education. No more. their children. ferences may divide us, there is always In fact, there was an interesting Frankly, as the Presiding Officer one constant thing that unites us. We point made in a Wall Street Journal ar- knows, it is getting harder and harder all have the same dream. ticle last week. Working families save for middle-class families—and I mean Think about it. No matter who you primarily by investing in human cap- that in a broad range, people making talk to—black or white, rich or poor— ital—that is, education. from $30,000 to $90,000 individually or every American family dreams that Yet, when businesses invest in ma- up to $120,000 as a family—to be able to their children will go to college. It was chine capital, they are not taxed. Mid- afford a college education. I would like my dad’s dream for his children, and it dle-class families, when they invest in October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15813 education, are taxed to the hilt. Edu- are out there right now working for SEC. 7058. SENSE OF SENATE REGARDING COV- cation is treated as consumption, not Americans. ERAGE FOR TREATMENT OF BREAST AND PROSTATE CANCER UNDER investment. So at the right time, I will move to MEDICARE. And, as a Nobel Prize economist once table the amendment, but for now I (a) FINDINGS.—The Senate finds that— put it, the tax code treats machines yield back the remainder of my time. (1) breast and prostate cancer each strike better than it does people. Mr. BIDEN addressed the Chair. about 200,000 persons annually, and each It is time for that to change. The PRESIDING OFFICER. The Sen- claims the lives of over 40,000 annually; From the establishment of the land- ator from Delaware is recognized for 53 (2) medicare covers treatments of breast grant university system in the late seconds. and prostate cancer including surgery, chem- 1800’s to the GI bill at the end of World Mr. BIDEN. Mr. President, I know otherapy, and radiation therapy; (3) the Omnibus Budget Reconciliation Act War II to the creation of the PELL my friend has put a whole flock of kids through college, and so I know his of 1993 (OBRA) expanded medicare to cover Grant and Guaranteed Student Loan self-administered chemotherapeutic oral- programs in the 1960s, the Federal Gov- commitment to college. Let me just say very briefly my cancer drugs which have the same active in- ernment has been committed to seeing gredients as drugs previously available in that young people desiring to go to col- amendment restricts the growth of tax injectable or intravenous form; lege would not be turned away because expenditures in those areas. It does not (4) half of all women with breast cancer, of the cost. It was a national goal to in fact freeze them. and thousands of men with prostate cancer see a college education within reach of No. 2, tell middle-class taxpayers which has spread beyond the prostate, need every American. that R&D is more important for cor- hormonal therapy administered through oral Now, as that goal begins to slip out porations, which I support, than freez- cancer drugs which have never been avail- able in injectable or intravenous form; and of reach for many middle-class fami- ing—even if you were to freeze—than it (5) medicare’s failure to cover oral cancer lies, it is time to renew our commit- is to be able to send their kid to col- lege. Ask the average middle-class drugs for hormonal therapy makes the cov- ment to ensuring access to a college ered treatments less effective. American taxpayer what is a better in- education for all Americans. I urge my (b) SENSE OF SENATE.—It is the sense of the colleagues to support this proposal. vestment. Who is going to do the R&D Senate that medicare should not discrimi- I reserve the remainder of my time if if we do not get these kids to college? nate among breast and prostate cancer vic- I have any. Lastly, I say to my friend, the $500 tims by providing drug treatment coverage The PRESIDING OFFICER. The Sen- cap on student loan interest is worth- for some but not all such cancers, and that ator from New Mexico. while and is necessary but it does not the budget reconciliation conferees should compare to $10,000 that a middle-class amend medicare to provide coverage for Mr. DOMENICI. Mr. President, I re- these important cancer drug treatments. grettably disagree with my friend from family would be able to deduct. They Delaware. Actually, to pick out two of need help now. They need help now, Ms. SNOWE. I thank the Chair. the many tax expenditures, that is, two Mr. President, and this is the most di- I am offering this amendment in con- mortgage deductions—that is a very rect and immediate way to do it. junction with Senators D’AMATO, SHEL- large one—and health insurance and I thank the Chair. I thank my col- BY, BIDEN, MACK, HUTCHISON, and freeze all the rest seems to me totally leagues. GRAMM that expresses the sense-of-the- unreasonable. Let me just go through a The PRESIDING OFFICER. All time Senate that the budget reconciliation couple. has expired. conferees should amend Medicare to Mr. DOMENICI. Mr. President, I We are freezing pension contribu- provide coverage for certain oral can- think it returns to our side and Sen- tions. That is one of the largest tax ex- cer drugs that are of enormous benefit ator SNOWE has an amendment at this penditures we have, and we think it is to breast and prostate cancer victims. time. fair. Education that employees get Currently, Medicare discriminates The PRESIDING OFFICER. The Sen- from their corporations, you would among breast and prostate cancer vic- ator from Maine. freeze that deduction. The R&D tax tims by providing certain drug treat- Mr. EXON. Before Senator SNOWE is ment coverage for some but not all credits for American corporations. The recognized, to expedite things, when one thing they have asked for is that such cancers. Senator SNOWE finishes, I yield half of they get to deduct in a special way the Back in 1993, when Congress ex- our 5 minutes to the Senator from panded Medicare to help pay for the di- research and development costs of West Virginia, who I understand also their business, something needed to agnosis and treatment of breast cancer, supports it. gaps in coverage were inadvertently keep them competitive. Arbitrarily we I reserve the other half of the time in decide those are all frozen so that we created which denied coverage for cer- case any opposition surfaces. tain oral cancer drugs. This is because can provide this special tax treatment Ms. SNOWE addressed the Chair. for those people with children going to in 1993, the Medicare OBRA provisions The PRESIDING OFFICER. The Sen- allowed the coverage of oral cancer college. ator from Maine. Now, we would like to do that. We drugs that were previously available in AMENDMENT NO. 2976 would like to do a lot of things, but, injectable or intravenous form. (Purpose: To express the sense of the Senate frankly, to take the tax code and say However, half of all women with regarding the coverage of treatment for breast cancer, that is, 50 percent, and all these other provisions that are good breast and prostate cancer under Medicare) thousands of men with prostate cancer for our country, we just decide to Ms. SNOWE. Mr. President, I send an which has spread beyond the prostate, freeze them so we can do that, in light amendment to the desk and ask for its need hormonal therapy that is admin- of the fact that we have provided sig- immediate consideration. istered through oral cancer drugs that nificant assistance to middle-income The PRESIDING OFFICER. The have never been available in injectable Americans—in this bill, there is a cred- clerk will report the amendment. or intravenous form. it for student loan interest, a credit for The assistant legislative clerk read 20 percent of the interest paid on the as follows: Let us consider the potential benefit student loan during the taxable year if of covering these oral estrogen-based The Senator from Maine [Ms. SNOWE], for cancer drugs for elderly populations. the taxpayer has an adjusted gross in- herself, Mr. D’AMATO, Mr. SHELBY, Mr. come of $40,000 to $50,000 as a single BIDEN, Mr. MACK, Mrs. HUTCHISON, and Mr. Breast cancer and prostate cancers taxpayer, $60,000 to $75,000 as a couple— GRAMM, proposes an amendment numbered are very similar. First, both diseases it is capped at $500 per year per bor- 2976. strike approximately 200,000 Americans rower, $1,000 per return—that is pretty Ms. SNOWE. Mr. President, I ask per year. fair. With all the other things we are unanimous consent that reading of the Second, both diseases take over 40,000 trying to do, it seems to me we ought amendment be dispensed with. lives each year. While breast cancer af- to in a more orderly way look at such The PRESIDING OFFICER. Without fects 1 in 9 women, prostate cancer af- things as the pension deductions and objection, it is so ordered. fects 1 in 11 men every year, and for the expenditures for education that The amendment is as follows: both diseases the number of reported employers give to employees, and On page 606, between lines 13 and 14, insert cases is rising rapidly. In fact, the many other good tax expenditures that the following: number of reported cases of prostate S 15814 CONGRESSIONAL RECORD — SENATE October 26, 1995 cancer is increasing to an alarming de- The Senator from West Virginia. no concept of. And here we are talking gree, an expected 90 percent increase Mr. BIDEN addressed the Chair. about adding on services. I am for that. between 1983 and the year 2000. The PRESIDING OFFICER. The Sen- I am for Senator SNOWE. She is an ex- Finally, these diseases are prevalent ator from West Virginia has 21⁄2 min- cellent Senator, and her sense-of-the- among women and men whose age utes. Senate resolution is excellent and it makes them eligible for Medicare. Mr. ROCKEFELLER. I yield 10 sec- should be supported. The Congressional Budget Office’s onds to the Senator from Delaware. But the division on the one hand of preliminary analysis revealed the cov- Mr. BIDEN. Mr. President, I thank the virtue of that purpose and the utter erage of the breast cancer portion of the Senator. I wish to thank my col- devastation of Medicare is a very awk- this amendment at a savings of $156 league from Maine. As an original co- ward coupling, to say the very least. I million over 7 years. sponsor of her amendment, I would like hope and pray Medicare can do more So I am asking, Mr. President, that to point out two things very quickly. for breast cancer, for prostate cancer, we support this resolution because I One, this was an oversight in the first but I will guarantee you it cannot so think it is the next logical step in place. It was never intended that this long as we are cutting $270 billion out fighting both breast cancer and pros- drug should not be covered. And No. 2, of it. tate cancer. It does not make sense it is vitally important to the health The PRESIDING OFFICER. Who that we do not provide coverage for the and safety of millions of Americans. I yields time? next generation of drug treatment for think it is a good amendment, and I am Mr. EXON. Mr. President, since no both prostate and breast cancer treat- glad she is introducing it. others are seeking time, I will be glad ment. It will save money in the long Mr. ROCKEFELLER. Mr. President, to yield back our time. run under Medicare, and it certainly let me put this in two forms. One is, I Is there any time on this side? will make it easier to be administered think this amendment has a virtuous Ms. SNOWE. Mr. President, I ask to those patients, especially those who purpose, and I will support it. It is a unanimous consent to include Senator live in rural areas because it is an oral wish. It is just simply a wish. That is JEFFORDS as a cosponsor of this amend- type of drug rather than having to be why it is put in the form of a sense of ment, and I will yield back the remain- administered in outpatient or in inpa- the Senate. We are hoping that the rec- der of my time. tient facilities. onciliation conferees will approve Med- The PRESIDING OFFICER. Without In 1991, Congress made a significant icare. I support it. In fact, I worked on objection, it is so ordered. investment under the Medicare provi- matters of this oral use of cancer pills Mr. EXON. Has all time been yielded sions for breast cancer screening. It and other things in the past. back on both sides? only makes sense then to provide this But I would be very surprised, quite The PRESIDING OFFICER. Not all kind of extensive coverage with the frankly, if we can in Medicare buy a time has been yielded back yet. new kinds of drugs that are coming on single new aspirin, much less prostate Mr. EXON. May I request all time be the market that will be reimbursed cancer and breast cancer remedies, yielded back? I yield back our time. under the Medicare system. By denying under the $270 billion cut which the un- Mr. DOMENICI. Does the Senator coverage for treatment to half the pop- derlying bill of the majority con- yield back all his? ulation of breast cancer patients, we templates, let alone any more coverage The PRESIDING OFFICER. The Sen- are not taking full advantage of the in- whatsoever for cancer. And I think ator from Maine yields back. All time vestment that Congress has already that Senator SNOWE understands that, is yielded back. made. making this, therefore, a sense of the Mr. EXON. I believe the next order of In 1994 alone, Medicare will have Senate. business would be an amendment of- spent an estimated $640 million on Keep in mind, please, my colleagues, fered by Senator DORGAN of North Da- breast cancer treatment. Yet, here we that we are cutting $270 billion. We kota. find that Medicare will not cover some were devastating everything from grad- I yield 5 minutes to him at this time. of the treatments that could be pro- uate medical education to rural hos- The PRESIDING OFFICER. The Sen- vided for women because they do not pitals, to premiums, to original re- ator from North Dakota is recognized. reimburse an oral form of drug. In this search in any area. You are going to AMENDMENT NO. 2977 case, for example, it is tamoxifen. find a lot of people—in fact, I notice (Purpose: To end deferral for United States Tamoxifen is a new drug on the market our colleague from Massachusetts com- shareholders on income of controlled for- for the treatment of breast cancers at ing in—you will find a lot of people not eign corporations attributable to property certain stages and yet because it was going into research medicine to come imported into the United States) not available in intravenous or up with new cures for prostate cancer Mr. DORGAN. Mr. President, I have injectable form it cannot be reim- or breast cancer because of what is an amendment at the desk. bursed under the Medicare system be- happening to graduate medical institu- The PRESIDING OFFICER. The cause it is an oral drug. I do not think tions. clerk will report. it makes sense. It certainly does not But all we had to do to get this The legislative clerk read as follows: make sense for the future. It does not amendment and to be able to pass this The Senator from North Dakota [Mr. DOR- make sense for the lives and the health amendment was, in fact, to do what the GAN], for himself, Mr. KENNEDY, Mr. REID, of the individuals who are victims of Democrats wanted to do, which was Mr. FEINGOLD and Mr. BUMPERS, proposes an breast or prostate cancer. simply cut $89 billion from Medicare. amendment numbered 2977. So I would urge that the Senate go But, no, they wanted to cut $270 billion Mr. DORGAN. Mr. President, I ask on record in preventing the recurrence in order to be able to—— unanimous consent that further read- of breast and prostate cancer by advo- The PRESIDING OFFICER (Mr. ing of the amendment be dispensed cating that Medicare reimburse for KYL). The Senator has used his 21⁄2 min- with. such coverage. utes. The PRESIDING OFFICER. Without Mr. President, I would ask for the The Senator from Nebraska controls objection, it is so ordered. yeas and nays, and I reserve the re- the time. The amendment is as follows: mainder of my time. Mr. EXON. I will be glad to yield— At the end of chapter 1 of subtitle I of title The PRESIDING OFFICER. Is there a has the Senator finished? Does the Sen- XII, insert the following new section: sufficient second? ator need more time? SEC. 2. TAXATION OF INCOME OF CONTROLLED There appears to be a sufficient sec- Mr. ROCKEFELLER. One minute. FOREIGN CORPORATIONS ATTRIB- ond. Mr. EXON. I yield 1 minute to the UTABLE TO IMPORTED PROPERTY. The yeas and nays were ordered. Senator from West Virginia. (a) GENERAL RULE.—Subsection (a) of sec- Ms. SNOWE. Mr. President, I ask Mr. ROCKEFELLER. Medicare, let us tion 954 (defining foreign base company in- come) is amended by striking ‘‘and’’ at the unanimous consent to include Senator face it, has been put on the chopping end of paragraph (4), by striking the period COHEN, of Maine, as a cosponsor. block. These are huge, huge cuts that at the end of paragraph (5) and inserting ‘‘, The PRESIDING OFFICER. Without are going to be made in the next 7 and’’, and by adding at the end the following objection, it is so ordered. years that our people have absolutely new paragraph: October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15815 ‘‘(6) imported property income for the tax- (2) IMPORTED PROPERTY INCOME DEFINED.— duction costs low. It means they have able year (determined under subsection (h) Paragraph (2) of section 904(d) is amended by moved their jobs out of this country. and reduced as provided in subsection redesignating subparagraphs (H) and (I) as Then it says in its financial reports, (b)(5)).’’ subparagraphs (I) and (J), respectively, and (b) DEFINITION OF IMPORTED PROPERTY IN- by inserting after subparagraph (G) the fol- this same company has undistributed COME.—Section 954 is amended by adding at lowing new subparagraph: retained earnings of $21 million, No- the end the following new subsection: ‘‘(H) IMPORTED PROPERTY INCOME.—The vember 1994. No tax has been paid on ‘‘(h) IMPORTED PROPERTY INCOME.— term ‘imported property income’ means any them because the management intends ‘‘(1) IN GENERAL.—For purposes of sub- income received or accrued by any person to indefinitely reinvest them in foreign section (a)(6), the term ‘imported property which is of a kind which would be imported countries. income’ means income (whether in the form property income (as defined in section of profits, commissions, fees, or otherwise) 954(h)).’’ What does this mean? It means they derived in connection with— (3) LOOK-THRU RULES TO APPLY.—Subpara- get a tax break. They would have paid ‘‘(A) manufacturing, producing, growing, graph (F) of section 904(d)(3) is amended by $7 million in taxes had they stayed in or extracting imported property, striking ‘‘or (E)’’ and inserting ‘‘(E), or (H)’’. this country and manufactured. But, ‘‘(B) the sale, exchange, or other disposi- (d) TECHNICAL AMENDMENTS.— no, we say to them, ‘‘If you move your tion of imported property, or (1) Clause (iii) of section 952(c)(1)(B) (relat- operation outside of this country, move ‘‘(C) the lease, rental, or licensing of im- ing to certain prior year deficits may be your American jobs elsewhere, give the ported property. taken into account) is amended by inserting Such term shall not include any foreign oil the following subclause after subclause (II) jobs to foreigners, shut your plant and gas extraction income (within the mean- (and by redesignating the following down here and move your jobs over- ing of section 907(c)) or any foreign oil relat- subclauses accordingly): seas, we’ll give you a tax break.’’ ed income (within the meaning of section ‘‘(III) imported property income,’’. My legislation is very simple. It says, 907(c)). (2) Paragraph (5) of section 954(b) (relating end the tax break for people who want ‘‘(2) IMPORTED PROPERTY.—For purposes of to deductions to be taken into account) is to move their jobs overseas. End the this subsection— amended by striking ‘‘and the foreign base tax break. It does not make any sense. ‘‘(A) IN GENERAL.—Except as otherwise pro- company oil related income’’ and inserting vided in this paragraph, the term ‘imported ‘‘the foreign base company oil related in- No one, in my judgment, can honestly property’ means property which is imported come, and the imported property income’’. defend this kind of practice. into the United States by the controlled for- (e) EFFECTIVE DATE.— Use the money that we develop as a eign corporation or a related person. (1) IN GENERAL.—Except as provided in result of this amendment to reduce the ‘‘(B) IMPORTED PROPERTY INCLUDES CERTAIN paragraph (2), the amendments made by this Federal debt. That is what this amend- PROPERTY IMPORTED BY UNRELATED PER- section shall apply to taxable years of for- ment is about. SONS.—The term ‘imported property’ in- eign corporations beginning after December cludes any property imported into the Unit- 31, 1995, and to taxable years of United This amendment I offer on behalf of ed States by an unrelated person if, when States shareholders within which or with myself and Senators KENNEDY, REID, such property was sold to the unrelated per- which such taxable years of such foreign cor- FEINGOLD, and BUMPERS. son by the controlled foreign corporation (or porations end. I have heard a lot of debate about a a related person), it was reasonable to expect (2) SUBSECTION (c).—The amendments made lot of financial issues, but I never that— by subsection (c) shall apply to taxable years heard anyone in this country who can ‘‘(i) such property would be imported into beginning after December 31, 1995. defend a part of the Tax Code that the United States, or Mr. DORGAN. This is a very impor- ‘‘(ii) such property would be used as a com- says, ‘‘We will be willing to provide a tant amendment. It is one that actu- tax break if you will only close your ponent in other property which would be im- ally has previously been passed by the ported into the United States. doors to your manufacturing plant in House of Representatives a few years ‘‘(C) EXCEPTION FOR PROPERTY SUBSE- the U.S.A. and ship the jobs to some QUENTLY EXPORTED.—The term ‘imported ago. My amendment simply ends some- foreign land.’’ thing called ‘‘deferral’’ for someone property’ does not include any property If we cannot end this sort of thing, who closes their plant in the United which is imported into the United States and how can we talk to the American peo- which— States, moves it to a tax haven coun- ple about good jobs? Sixty percent of ‘‘(i) before substantial use in the United try, makes the same product and ships the families in this country now have States, is sold, leased, or rented by the con- it back to the United States. This is less income than they did 20 years ago. trolled foreign corporation or a related per- about moving jobs overseas. Why? Because good jobs are moving son for direct use, consumption, or disposi- We have had a circumstance in this tion outside the United States, or overseas. There are a lot of reasons for country for some while where we say to ‘‘(ii) is used by the controlled foreign cor- that, but at least one of those reasons somebody, ‘‘If you close your manufac- poration or a related person as a component is we have an insidious, perverse incen- turing plant in America, move the jobs in other property which is so sold, leased, or tive in our Tax Code to reward those rented. overseas, make the same product, ship with a tax break who would move their ‘‘(3) DEFINITIONS AND SPECIAL RULES.— it back to the United States, we will jobs overseas. ‘‘(A) IMPORT.—For purposes of this sub- give you a tax break. Stay here and section, the term ‘import’ means entering, or you pay income taxes. Move your jobs This amendment very simply says, withdrawal from warehouse, for consumption overseas and do your manufacturing ‘‘Let’s at least stop that. Let’s decide or use. Such term includes any grant of the overseas, we will give you a tax jobs in this country are important. We right to use an intangible (as defined in sec- want to retain good jobs, good-paying tion 936(b)(3)(B)) in the United States. break.’’ We have lost 3 million manufacturing jobs, manufacturing jobs. Let’s stop ‘‘(B) UNRELATED PERSON.—For purposes of the flight of American jobs out of this subsection, the term ‘unrelated person’ jobs during the same time that Singa- means any person who is not a related per- pore has experienced a 46-percent in- America.’’ And one way to do that, son with respect to the controlled foreign crease in manufacturing jobs. That is among many others, is to decide to corporation. not a coincidence. We give a tax break straighten out the Tax Code. ‘‘(C) COORDINATION WITH FOREIGN BASE COM- for people to ship their jobs overseas. The fact is, President Clinton during PANY SALES INCOME.—For purposes of this Let me give you an example of that. the last campaign talked about this section, the term ‘foreign base company Here is a company that I will not iden- issue. We have had people on all sides sales income’ shall not include any imported of the political aisle talk about it. I property income.’’ tify. I will just tell you it makes pants, (c) SEPARATE APPLICATION OF LIMITATIONS a pants company. This company had was helpful in getting this passed ON FOREIGN TAX CREDIT FOR IMPORTED PROP- 280 of its employees apply for trade ad- through the House of Representatives ERTY INCOME.— justment assistance a few months ago. in 1987, I believe it was. It subsequently (1) IN GENERAL.—Paragraph (1) of section What does that mean? It means they was dropped. It was subsequently 904(d) (relating to separate application of lost their jobs because of overseas com- dropped in conference. This bill had ex- section with respect to certain categories of petition. The same company, whose tensive hearings. I held a hearing on income) is amended by striking ‘‘and’’ at the employees now have lost their jobs this bill in the U.S. Senate. So this bill end of subparagraph (H), by redesignating subparagraph (I) as subparagraph (J), and by here in this country, same company, meets the criteria. We understand what inserting after subparagraph (H) the follow- describes with its filings what it does, this is about. This amendment makes ing new subparagraph: performs most of its sewing and finish- sense. I hope that this amendment will ‘‘(I) imported property income, and’’. ing now offshore in order to keep pro- have the support of Members of the S 15816 CONGRESSIONAL RECORD — SENATE October 26, 1995 Senate. This makes good sense for our So, for these reasons, I must respect- icaid to the States, the logic being that country. fully disagree with this amendment. I States are capable of making decisions Mr. President, with that I yield the yield back any remaining time. about running Medicaid, the logic floor. The PRESIDING OFFICER. The Sen- being that the Governor and the legis- Mr. ABRAHAM addressed the Chair. ator from North Dakota has 30 seconds lature of the various States love people The PRESIDING OFFICER. The Sen- remaining. who receive benefits from Medicaid in ator from Michigan. Mr. DORGAN. Mr. President, we do their State at least as much as we do. Mr. ABRAHAM. I yield such time as not need to study this; we need to stop They know those people more inti- he may need to the Senator from Dela- it. Anybody who thinks that a tax mately than we do, and, obviously, ware. break for moving American jobs over- those people are capable of putting The PRESIDING OFFICER. The Sen- seas is good for this country probably them out of office directly, whereas ator from Delaware is recognized. thinks Elvis is living in a trailer park they may not be able to vote against a Mr. ROTH. Mr. President, I rise in in St. Louis. Senator from another State. opposition to the amendment proposed Nobody I know believes it is good tax by Senator DORGAN. In doing so, let me policy to spend $2.2 billion in the next In the markup in the Finance Com- say at the beginning, I am not happy 7 years encouraging companies to shut mittee before I became a member, an with companies that move abroad to a their doors here and move their jobs amendment was added that created a tax haven or cheap labor for the pur- overseas. What kind of nonsense is new entitlement. This is an entitle- pose of manufacturing products that this? If we cannot support an amend- ment imposed upon the States. The en- are sold back to the United States. ment like this, we ought to turn off the titlement basically says that while we None of us can be happy with the ex- lights and lock the door in this place. are giving States the ability to run port of American jobs. The PRESIDING OFFICER. The time Medicaid, that we are going to inter- At the same time it is important to of the Senator has expired. The Sen- vene at the Federal level and mandate understand that we are in the global ator from Michigan has 20 seconds re- that no matter how they structure economy and that if we are to provide maining. their programs they have to provide well-paying, good jobs for our people, it Mr. ABRAHAM. We yield back the three entitlements. Specifically they is important that we become a vital remaining time. are told by us that there are three force in the global economy that is now The PRESIDING OFFICER. Time is groups of people that they must cover. emerging. The United States must be- yielded back. There are groups that we would not Mr. DORGAN. I ask for the yeas and come competitive in this global econ- want to cover; there are groups that omy. nays. The PRESIDING OFFICER. Is there a the States would cover. But every Gov- My concern with the Dorgan amend- ernor I know is outraged about this ment is that in hearings held before sufficient second? There appears to be a sufficient sec- provision that mandates a State-man- the Finance Committee in the past, dated program for pregnant women, for Treasury has testified that this kind of ond. The yeas and nays were ordered. children under the age of 12, and for legislation is very difficult to admin- disabled individuals. ister. The PRESIDING OFFICER. The Sen- It has been pointed out, for example, ator from Michigan. The point is this: Not that anyone what do you do in the case of a plant Mr. ABRAHAM. At this time, I be- wants to deny service to pregnant that sells both to the United States lieve the next item in order will be the women or children under 12 or disabled and to other companies abroad? Obvi- amendment of the Senator from Texas. people, but who are we in Washington The PRESIDING OFFICER. The Sen- ously, we want to encourage American to decide how the States are going to ator from Texas is recognized. business to compete in foreign mar- run this program? Is it not the ulti- kets, but would that company be enti- AMENDMENT NO. 2978 mate arrogance for Washington to be- tled to the deferral, or how would you (Purpose: To provide States additional flexi- lieve that only we care about pregnant bility in providing for Medicaid bene- women, that only we care about chil- administer it? ficiaries) Let me say that it is my intent, upon dren under 12, that only we care about Mr. GRAMM. Mr. President, I send the completion of reconciliation, to the disabled, and if we let the uncaring an amendment to the desk and ask for look at a number of these important Governors, if we let the uncaring legis- its immediate consideration. lators run their program in their State, and complex international trade ques- The PRESIDING OFFICER. The they are not going to take care of their tions. We have purposely avoided in clerk will report. own people? this reconciliation containing any The legislative clerk read as follows: amendments or provisions dealing with The Senator from Texas [Mr. GRAMM] pro- I totally and absolutely reject this. foreign trade or international matters. poses an amendment numbered 2978. This amendment flies in the face of ev- And as I have indicated, one of our rea- On page 767, strike all after ‘‘(2)’’ on line 6 erything we are trying to do in Medi- sons for taking this approach is that through ‘‘(4)’’ on line 16. care, everything that my party stands this is a matter of extreme complexity, Mr. EXON. Mr. President, will the for, and I think this Big Brother Wash- of greatest importance to our economy Senator from Texas yield for one mo- ington approach has to end. and the creation of jobs in America. ment? After the Senator has made his I do not believe we are going to strip For that reason, we have not, as I said, presentation, I yield 5 minutes to Sen- this rotten amendment out of this bill, included any provisions involving ator ROCKEFELLER in opposition to the but I want to have a vote on it. The international trade matters in this leg- amendment. whole logic of the Medicaid reform is islation. For that reason, the Dorgan The PRESIDING OFFICER. The Sen- we are going to let the local leaders amendment is not appropriate as part ator from Texas is recognized. of this legislation. Mr. GRAMM. Mr. President, the who know their people best and who Again, let me say that it is my intent whole logic of block granting Medicaid care the most make the decisions. The as chairman of the Finance Commit- so that States could run the Medicaid idea that we are creating a new entitle- tee, which has jurisdiction over trade, Program with less money than if we ment and we are imposing it on the that we will be holding a series of hear- had kept it as an entitlement is a belief States, and now in a new provision we ings dealing with the kind of problems that States can run the program bet- are going to, in essence, let people go that are raised by this amendment. But ter. In fact, both Democratic and Re- into Federal court and sue the States until we have a better idea of how to publican Governors have come to the on these issues, I think that clearly is address this problem so that we do not, national capital and said to us: ‘‘If you a retreat from what we promised the in the process of trying to correct one will let us run Medicaid, we will pro- States when we gave them less money problem of people fleeing abroad to tax vide better health care and we will do to let them run the program, and I re- havens that sell back here, that we do it cheaper and we will share the sav- serve whatever seconds may remain on not hurt those who are going abroad ings with you.’’ my time. for a legitimate purpose, to become On a bipartisan basis, they have sup- Mr. ROCKEFELLER. Mr. President, competitive in international markets. ported our efforts to block grant Med- this amendment should absolutely be October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15817 defeated on both sides. It has this won- humor, but I see the Senator is serious its second lowest annual level since 1955, derful kind of a kind-hearted title to it. about this. with purchasing power 26 percent below its It talks about ‘‘flexibility.’’ The pur- So, Mr. President, I hope this amend- average level during the 1970s and 35 percent pose is, of course, to get rid of all of ment is resoundingly defeated because below its peak value in 1968, and unless it is increased it will in 1996 have its lowest value this. If the Senator wants to have a we have to stand for something around in over 40 years; and this place. When we send out $800 bil- vote on getting rid of Medicaid or get- ‘‘(3) The value of the minimum wage as a ting rid of care for pregnant women, lion, we are entitled to ask for some- percentage of the average nonsupervisory for children under the age of 12, or the thing on behalf of the States’ poor. wage averaged 52.2 percent during the decade disabled, why does he not suggest that? The PRESIDING OFFICER. Who of the 1960s, 45.8 percent during the decade of We have been through this so many yields time? the 1970s, 40.4 percent during the decade of times before. ‘‘Let the States decide Mr. ROCKEFELLER. Mr. President, the 1980s, and currently is 37.7 percent; and what being disabled means.’’ So then what is the time situation? ‘‘(4) The minimum wage earned by a full- you have 50 different ideas of what a The PRESIDING OFFICER. The Sen- time worker over a year fails to provide suf- disabled person is, and it is complete ator from West Virginia has 23 seconds. ficient income for a family of three to pro- chaos. I really do believe this is a coun- The Senator from Texas has 48 seconds. vide that family a standard of living even reaching the national poverty level, and, in try which has not given up on the idea Mr. ROCKEFELLER. I yield back my time. fact, provides an income that equals only 70 that if a child is sick, no matter what percent of the federal poverty level for a its family’s income is, that the child Mr. GRAMM. I want to conclude the family of three; and should get care. If a poor person is ill, debate. ‘‘(5) There are 4.7 million Americans who or needs a test because something is Mr. President, we are reducing fund- usually work full-time but who are, never- desperately wrong and nobody knows ing for the existing Medicaid Program theless, in poverty, and 4.2 million families what it is, America is the kind of coun- by $187 billion. The Governors agreed live in poverty despite having one or more try where you should be able to get to this reduction. But on one basic part members in the labor force for at least half that test without worrying about of the agreement, they asked that if we the year: and something called ‘‘flexibility.’’ were going to reduce funding that we ‘‘(6) Nearly two-thirds of minimum wage I believe that health care is about let them run their program, which they workers are adults, and 60 percent are women; and giving people the opportunity to grow are funding in conjunction with us. Now what is happening is the Sen- ‘‘(7) The decline in the value of the mini- up to be what they really want to be. mum wage since 1979 has contributed to Health care is an enormous part of ator from West Virginia and the Sen- ator from Rhode Island are saying, OK, Americans’ growing income disparity and to that. This Senator, in what appears to the fact that 97 percent of the growth in be a ‘‘kind’’ amendment, but what is we are giving you less money, but we household income has accrued to the really, in the judgment of this Senator, are going to tell you how you have to wealthiest 20 percent of Americans during a very mean-spirited amendment, run this program. As for this talk of this period; and would just get as far away from doing ‘‘getting rid of Medicaid’’—nobody is ‘‘(8) The effects of the minimum wage are anything for pregnant women and chil- talking about getting rid of Medicaid. not felt only among the lowest income work- dren and the disabled as the Senator And ‘‘mean spirited’’—I flatly reject ers and families but also are felt in many middle-income families; and possibly could. It is an amendment the notion that the Senator from West Virginia loves the children in Texas or ‘‘(9) The preponderance of evidence from which should be absolutely crushed. economic studies of the effects of increases I yield the remainder of my time to Rhode Island more than the Governor of Texas and the Governor of Rhode Is- in federal and state minimum wages (includ- the Senator from Rhode Island. ing studies of state minimum wage increases Mr. CHAFEE. Mr. President, the Sen- land loves the children in their own in California and New Jersey) at the end of ator from Texas says this is a new enti- States. the 1980s and in the early 1990s suggests that tlement. Let us look at what the The tide of history is moving against the negative employment effects of such in- present law is. The present law man- the ‘‘Washington knows best’’ policies creases were slight to nonexistent; and dates that, in every State of the Na- advanced by the Senator from West ‘‘(10) Legislation to raise the minimum tion, the State must provide Medicaid Virginia and the Senator from Rhode wage to $5.15 an hour was introduced on Feb- coverage for every child 5 and under up Island, and this provision may stick ruary 14, 1995, but has not been debated by to 133 percent of poverty, and for those today, but its days are numbered. We the Senate— over the age of 5, it is up to age 12 and have to stop telling the States how to ‘‘Now, therefore, it is the sense of the Sen- ate that the Senate should debate and vote lower, to 100 percent of poverty; and run programs in their own jurisdiction, based on our own arrogance that only on whether to raise the minimum wage be- that increases it by a year each year so fore the end of the first session of the 104th that by 2002, every child up to the age we know best and only we care. Congress.’’ of 18 will be mandated coverage. So The PRESIDING OFFICER. All time has expired. Mr. KERRY. I yield myself 3 min- this is no new entitlement. utes, Mr. President. I emphasize that Second, the Senator from Texas says, Mr. EXON. I believe, under the agree- this is a sense of the Senate, No. 1; and, ‘‘What arrogance for us to say to these ment, the Senator from Massachusetts, No. 2, it does not set a specific figure at States they must cover children up Senator KERRY is next. I yield to him 5 this time, though many of us would through the age of 12, 100 percent of minutes. like to. poverty and below. What right have we The PRESIDING OFFICER. The Sen- to levy such a mandate on the States?’’ ator from Massachusetts is recognized. It simply says that the Senate will What he fails to mention is that we are AMENDMENT NO. 2979 go on record as being prepared to de- sending the States $800 billion over the (Purpose: To increase the Federal minimum bate and vote on the raising of the next 7 years—not million, but billion, wage) minimum wage, which was introduced with a ‘‘b.’’ Mr. KERRY. Mr. President, I send an last February, that we will vote on it When you send out money like that amendment to the desk and ask for its before the end of this first session. to the States, it seems to me you are immediate consideration. Why is that important, Mr. Presi- entitled to ask for something. What do The PRESIDING OFFICER. The dent? Well, from 1979 until 1995, 79 per- we ask for? We say they must cover clerk will report. cent of the increase in household in- poor children, 100 percent of poverty, The legislative clerk read as follows: come in America has gone to the top 20 up through the age of 12. Do we say The Senator from Massachusetts [Mr. percent—the 20 percent wealthiest what kinds of coverage, what the KERRY] for himself and Mr. KENNEDY, pro- Americans. The minimum wage which, health care package is? No. It could be poses an amendment numbered 2979. during the 1960’s, was at about 52 per- the most modest package. Indeed, one At the appropriate place in the bill insert cent of the nonsupervisory wage, and aspirin a year could be the health care the following new section: during the 1970’s was at about 45 per- package. ‘‘SEC. . MINIMUM WAGE. cent, and during the 1980’s was at about (a) FINDINGS.— 40 percent, is today at 37 percent of the So to say this is arrogance, when we ‘‘(1) The federal minimum wage has not demand that the States cover this lit- been raised since 1991; and nonsupervisory wage. tle group, come on now. I thought this ‘‘(2) The value of the minimum wage, after That means, Mr. President, that for was being offered with a sense of being adjusted for the bite of inflation, is at those two-thirds of the people on the S 15818 CONGRESSIONAL RECORD — SENATE October 26, 1995 minimum wage who are adults—60 per- time work. The poverty line is $12,500. Mr. DOMENICI. Am I correct, I say cent women—they are working at 70 Every economist, conservatives and to the whip, is this acceptable? percent of poverty level in this country liberals alike—at Harvard, and Fried- Mr. FORD. I do not know. I have not today—70 percent of poverty level. man, say you have to have a combina- seen it. Apparently, the Budget Com- Now, the whole theory of this country tion of the earned income tax credit mittee ranking member is willing to for years was based on the notion that and the minimum wage to truly permit accept it. we would value work, and if people people to break out of poverty. Mr. EXON. We have no objection. I went to work they would be able to We can do this, as every study shows, agree to accept the amendment. break out of poverty. During the 1960’s without losing jobs—in fact, as New Mr. DOMENICI. I yield back my and 1970’s, we respected that by keep- Jersey showed, creating further em- time. ing the minimum wage commensurate ployment. Mr. EXON. I yield back. with the poverty level. I hope my colleagues will go on The PRESIDING OFFICER. All time But ever since 1991, where we only record as being willing simply to de- is yielded back. caught up to a small percentage of the bate and vote on this issue. Mr. DOMENICI. Is it appropriate decrease of the prior 9 years, when Mr. KENNEDY. Will the Senator under the unanimous consent that we there was no increase, we have had an- from New Mexico in his typical gra- adopt this amendment, or must we other 13 percent decline in the value of cious and wonderful way be willing to hold it? the purchasing power of the wage. So give me 15 seconds? The PRESIDING OFFICER. If there the wage, today, has a 26-percent pur- Mr. DOMENICI. As the evening is a unanimous consent agreement to chasing power of what it had pre- passes, I am getting less and less gra- adopt the amendment, that may be viously, and it is about to be at a 40- cious. done. year low. In over 40 years, by 1996, if we I ask Senator KERRY of Massachu- Mr. FORD. Mr. President, we should do not change the minimum wage, it setts, did he mention a great economist keep it going. It is the ninth amend- will never have been so low. from the University of Chicago in his ment. Mr. President, if you are going to be wrap-up? Mr. DOMENICI. We will put it in the pro-family, if you are going to be pro- Mr. KERRY. I did not mean to. I sequence in this particular position. meant to mention the one from Har- work, if you are going to be pro-com- Mr. EXON. According to my list we vard. munity, you have to respect the notion have Senator KENNEDY next. Mr. DOMENICI. It was not Friedman that somebody ought to be able to take Mr. DOMENICI. We have one amend- from Chicago? home a decent wage for an hour’s work ment remaining. Mr. KERRY. No. and for a week’s work. The fact is, Mr. I want to state to the distinguished President, that under the current con- Mr. DOMENICI. Because he does not think this works at all. He thinks this ranking member, Senator EXON, the straints, it is impossible for people to majority leader requests that we do be able to do that, and we must go on makes for more people—I do not have any time left and we will get on with a some of your amendments, giving us record as really being pro-family, in an additional time. They are not yet fin- effort to try help them. I yield 11⁄2 min- vote. Mr. KERRY. There are 101 econo- ished in terms of drafting. It must be utes to the senior Senator from Massa- one with at least 5 minutes on a side. chusetts. mists and 3 Nobel laureates, and 7 past Could you proceed to the Kennedy- Mr. KENNEDY. Mr. President, I join presidents of the Economic Association Wellstone-Pryor and reserve our one with my colleague in urging the Senate who endorse this increase. remaining? to accept the sense-of-the-Senate reso- I ask for the yeas and nays. Mr. EXON. That sounds reasonable. lution. Members can wonder why this The PRESIDING OFFICER. Is there a Mr. DOMENICI. If we come in per- is appropriate. Included in the legisla- sufficient second? haps after 30 minutes and are ready, we tion is the earned income tax credit, There is a sufficient second. could intervene. which is a program to try to provide The yeas and nays were ordered. Mr. EXON. I see nothing wrong with some relief for the working poor. That AMENDMENT NO. 2980 that. We can move on to the Kennedy program helps to provide assistance, (Purpose: To make technical amendments to amendment, the next amendment on particularly with heads of households title V) my list. I yield 5 minutes to Senator who have children. Mr. DOMENICI. Mr. President I have KENNEDY. The minimum wage is for those fami- an amendment on behalf of the Energy lies that do not have many children. Committee, for Senator MURKOWSKI, AMENDMENT NO. 2981 The minimum wage provides the great- the chairman, and Senator JOHNSTON, (Purpose: To strike the provision allowing est advantage for the single heads of the ranking member. It is a technical the transfer of excess pension assets) household. amendment that will correct the rec- Mr. KENNEDY. I send to the desk an This amendment is prochildren be- onciliation statute that the Energy amendment on behalf of myself and the cause 70 percent of those that work Committee passed. I believe it is ac- Senator from Kansas, Senator KASSE- full-time have children in their fami- ceptable. BAUM, and ask for its immediate con- lies. This amendment is for women, I send the amendment to the desk. sideration. working women, because 60 percent of The PRESIDING OFFICER. The The PRESIDING OFFICER. The all minimum wage earners are working clerk will report. clerk will report. women. The legislative clerk read as follows: The legislative clerk read as follows: This is for full-time workers, Mr. The Senator from New Mexico [Mr. DOMEN- The Senator from Massachusetts [Mr. KEN- President. Sixty-six percent of all min- ICI] for Mr. MURKOWSKI, for himself, and Mr. NEDY], for himself and Mrs. KASSEBAUM, pro- imum wage recipients are full-time JOHNSTON proposes an amendment numbered poses an amendment numbered 2981. workers. 2980. Strike section 12807. Once again, if we care about children, Mr. DOMENICI. Mr. President, I ask Mr. KENNEDY. Mr. President, I yield if we care about working women, if we unanimous consent that reading of the myself 21⁄2 minutes. care about making work pay in Amer- amendment be dispensed with. Mr. President, this proposal allows ica, we will support this amendment. The PRESIDING OFFICER. Without corporations to remove money from Mr. KERRY. I reserve the remainder objection, it is so ordered. pension plans and use it for of my time. The amendment is as follows: nonretirement purposes. That particu- The PRESIDING OFFICER. The Sen- (1) On page 304, line 20, delete ‘‘follows:’’ lar proposal is included in the Repub- ator from New Mexico has 5 minutes and insert in lieu thereof ‘‘follows (except lican measure that is now before the remaining and the Senator from Mas- that all amounts in excess of $20,000,000 in U.S. Senate. fiscal year 2003 and all amounts in fiscal year sachusetts has 1⁄2 minute. The Republican budget, therefore, 2004 shall not be available for obligation Mr. DOMENICI. I yield back my until fiscal year 2006):’’. hits older Americans not once but time. (2) On page 361, line 7, delete ‘‘thereafter,’’ twice. The Medicare cuts are an out- Mr. KERRY. The minimum wage and insert in lieu thereof ‘‘thereafter, except rage and so is the raid on workers’ pen- worker today will earn $8,500 for full- for fiscal years 2003 and 2004,’’. sions. No one can claim they are saving October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15819 the pension system. The pension sys- pension plans were terminated, and The PRESIDING OFFICER. The Sen- tem is not broken. We have no right to thousands of workers saw their pen- ator has 3 minutes remaining. give away $20 billion of pension funds sions replaced by risky annuities that Mr. KENNEDY. I yield 2 minutes to that do not belong to us and do not be- provided lower benefits. the Senator from Florida. long to the Federal Government. The reconciliation package before us Mr. GRAHAM. Mr. President, I ask The $20 billion that the Republican includes a pension reversion measure unanimous consent to be listed as an budget gives away belongs to workers that is similar to the House proposal. original cosponsor of the amendment. and retirees who have given up wages Under the Senate bill, excess pension The PRESIDING OFFICER. Without to have that money contributed to assets could be wihdrawn—with little objection, it is so ordered. their pensions. The bill is an invitation or no penalty—to fund active and re- Mr. GRAHAM. In an earlier debate I to corporate raiders and greedy execu- tiree health benefits, underfunded pen- mentioned this is legislation filled tives to loot the pension plans of their sion plans, disability benefits, child with risk. We have now identified an- workers and retirees. care, and educational assistance plans. other one of those areas of risk. Have What looks like overfunding today Mr. President, this represents a sig- we forgotten so soon? It was just a can be underfunding tomorrow. The nificant change in pension policy. matter of a few years ago when we Senator from Kansas, Senator KASSE- I understand that there are approxi- were having pension plans across BAUM, put it well several years ago mately 22,000 pension plans covering 11 America fail because they were under- when she said, ‘‘If stocks and bonds million workers and 2 million retirees funded. drop in value, as they will at some that have assets in excess of 125 per- In many cases, they failed because point, these surpluses could evaporate cent of current liability, and that the they had been used by corporate raid- like the morning mist.’’ Joint Committee on Taxation esti- ers as a means of financing mergers The history of the Pension Benefit mates that the pension reversion provi- and acquisitions which then destroyed Guaranty Corporation over the past 20 sions contained in both the House and the jobs of the very people for whom years makes it clear that today’s well- Senate bills could result in the re- the pension fund was intended to pro- funded company can become tomor- moval of tens of billions of dollars in tect. row’s massive pension bankruptcy. assets from these plans. I cannot believe in 1995 we are about Congress should be worried about Therefore, while the Senate proposal to not only make it easier but, I am plan underfunding, not how to give clearly is more limited than the House going to suggest, positively encourage away surplus assets that have been proposal, I nevertheless must oppose it. this type of behavior. Why would we built up for retirees. The danger of un- I understand there will be an amend- encourage this behavior? If a chief fi- derfunded plans is what Congress ought ment to strike this provision that will nancial officer of a corporation failed to be addressing. be offered by the ranking member of to take advantage of this program, he We passed the Pension Protection the Senate Labor and Human Re- or she ought to be fired for corporate Act last year to strengthen pension sources Committee, Senator KENNEDY. malfeasance. funding. It makes no sense to turn I want to make clear to my colleagues Here is what we are about to do. We around a year later and weaken pen- that I intend to support that amend- allow a corporation in profitable years sion funds in a way that puts both re- ment. to overfund their pension, to put in tirees and taxpayers at risk. The Senate Committee on Labor and more than is required in order to meet This issue presents a stark choice Human Resources, which I chair, that year’s annual pension amount. about who we represent here in the shares jurisdiction over the Employee Then, when the corporation in a busi- Senate. Which side are we on? Are we Retirement Income Security Act ness cycle has a not-so-good year, we on the side of the workers and retirees [ERISA] with the Committee on Fi- are allowing them to reach in and who struggle to find some economic se- nance. In the past, the Labor Commit- withdraw those funds. curity in their old age? Or on the side tee has taken an active role in pension What is the significance to the U.S. of the wheeler dealers, corporate raid- security and pension reversion issues. Treasury? They take a full deduction ers, and the super rich? I want the Sen- In fact, the provision reported by the when they put the money in the pen- ators to say no to this raid on retirees Finance Committee contains modifica- sion. They pay no taxes when they take and defeat this unconscionable attack tion to title I of ERISA, which clearly it out, because they had planned to on the pension funds. fall within the Labor Committee’s ju- take it out in a year in which they owe Mrs. KASSEBAUM. Mr. President, I risdiction. no taxes. want to take a few moments this after- Yet the Labor Committee did not This is an outrage, Mr. President. It noon to discuss a provision in the rec- consider the pension provisions con- is a disgrace that it is part of this leg- onciliation package that has attracted tained in the legislation before us. And islation. It has no part in a bill which relatively little attention to this point. neither the Finance Committee nor the is intended to balance the budget, to As many of my colleagues know, the Labor Committee has held hearings to balance the budget of the Federal Gov- House reconciliation bill includes a consider modifications of this nature in ernment off the security and hard work measure designed to generate approxi- the pension reversion area. of working men and women who depend mately $10 billion in tax revenue by Mr. President, as I said, the Senate on these funds for their well-being, and doing away with penalties Congress im- proposal clearly is more limited than to turn it over to corporate raiders. posed in 1990 on pension fund withdraw- the House proposal. I also believe that I urge adoption of this amendment. als. The House proposal generally al- there may be valid reasons to revisit Mr. MOYNIHAN. Mr. President, the lows companies to take money from the pension reversion penalties that Republicans’ revenue recommendations pension plans that are more than 125 were imposed in 1990. contain a slew of tax breaks for busi- percent funded and use those funds for However, given the actions that led nesses that do not belong in a deficit any purpose, without informing their to the imposition of the excise tax, I reduction bill. One of the most egre- workers. strongly believe that any modifications gious of these special tax breaks is a In response to a wave of corporate in this area should be given full consid- provision on corporate pension trans- takeovers and pension raids in the eration by the committees of jurisdic- fers that would allow employers to 1980’s, Congress in 1990 imposed an 50- tion and that we should weigh heavily take billions of dollars in excess assets percent excise tax on pension fund re- the genuine possibility of adverse con- from pension plans to the extent of versions, except in limited cir- sequences to plan participants, the their costs for other employee bene- cumstances. The idea was to make it Federal pension insurance program, fits—such as health care for active em- costly for companies to take assets and the national savings rate that may ployees—without paying the current- from their pension plans. And, in fact, result from a change in pension policy law excise tax. The proposal opens the the raids on assets ceased almost en- of this magnitude. door for up to $47 billion to be removed tirely. Before this change, however, Therefore, I intend to support the from the pension system, thereby en- about $20 billion was siphoned from KENNEDY amendment and I urge my dangering workers’ retirement security pension funds in just a few years, many colleagues to do the same. and increasing the risk to the Pension S 15820 CONGRESSIONAL RECORD — SENATE October 26, 1995 Benefit Guaranty Corporation [PBGC] The Republicans note that the stand- In light of all these defects, I believe and U.S. taxpayers. ard used in this proposal is the same the proposal is fundamentally flawed The Republicans have included this standard enacted for pension transfers as a matter of retirement and tax pol- provision among a small group of so- for retiree health benefits in the 1994 icy, and strongly urge my colleagues to called corporate welfare reforms that Uruguay Round Agreements Act support my amendment. raise revenue through restrictions on [GATT]. However, the two provisions The PRESIDING OFFICER. Who tax rules under which the affected com- are vastly different in scope. The po- yields time? The Senator from Massa- panies currently operate. The pension tential transfers allowable under this chusetts has 1⁄2 minute remaining. transfer proposal, however, is hardly a proposal would dwarf the amount of The Senator from New Mexico. reform; rather, it is a conspicuous cor- transfers allowable for use in meeting Mr. DOMENICI. I yield our 5 minutes porate welfare program of its own. The retiree health costs under GATT. Care to the distinguished chairman of the was also taken in GATT—unlike in the proposal merely frees workers’ pension Finance Committee, Mr. ROTH. Republican proposal—to create a pro- funds to be used for general corporate The PRESIDING OFFICER. The Sen- tective firewall that is, a maintenance purposes, such as executive bonuses or ator from Delaware is recognized. extra shareholder dividends. of effort requirement. Thus, the pro- Mr. ROTH. Mr. President, excess pen- Earlier this year, the Finance Com- posal will increase considerably the sion assets do not belong to employees. mittee devoted several weeks to hear- risk of loss to the PBGC. The reason for this is that under a de- ings on how to increase our Nation’s Finally, by exempting employers fined benefit pension plan, the em- savings rate. We found that the savings from the current law excise tax, the ployer promises to pay an employee a rate is terribly low, and that the high proposal encourages employers to use fixed monthly retirement benefit. rate of consumption was hurting the pension plans as tax-sheltered cor- Under current law, after these benefits economy. Yet, the Finance Committee porate piggy banks. Under current law, are fully funded the employer can take has now recommended to the Senate a if an employer terminates its plan and out excess assets upon plan termi- provision that both weakens the retire- takes a reversion, an excise tax of 50 nation. ment security of employees and re- percent of the reversion applies. One Excess pension asset transfers will moves assets from a key source of sav- purpose of the excise tax is to recap- not reduce or jeopardize workers’ pen- ings—employees’ pension funds. ture the tax benefit the employer en- sions. Only the most overfunded pen- Despite Republican assertions to the joys from earnings that have grown sion plans will be allowed to transfer contrary, the proposal poses a serious tax-free on the contributions to the excess pension assets. According to a threat to the security of the affected pension plan. In 1990, GAO found that former chief actuary of the PBGC, only pension plans. First, the pension trans- an excise tax of between 17 percent and 1 percent of plans covered by the PBGC fer proposal generally would measure 59 percent was necessary—depending on terminate in a given year without suf- excess assets using a standard that is the plan population and the underlying investments—for the Federal Govern- ficient assets. And after the passage of easily manipulated and thus, I believe, ment to recapture the tax benefit to the stringent funding rules in last inappropriate for this purpose. Under employers when assets in a pension year’s GATT legislation, it is reason- the provision, a pension plan would be plan are withdrawn by the employer. In able to expect the incidence of plan considered to have excess assets, eligi- addition, the proposal removes the de- failures will decrease in the future. ble to be withdrawn, to the extent its terrent effect of the excise tax on plan assets exceed 125 percent of the plan’s The proposal also contained several terminations: An employer can first current liability. Under this standard, provisions designed to guard against take the excess assets and subse- the employer is free to use a range of plan underfunding. First, employers quently terminate the plan, thus avoid- interest rate and mortality assump- are required to keep a substantial ing the excise tax because there would tions, and need not account for the ef- cushion of excess pension assets in the be no additional assets left to revert to plan. And I point out this is the same fect of early retirement or contingent the employer as a result of the termi- events such as plant shutdowns. Thus, measure that President Clinton pro- nation. posed for retiree health transfers in the an employer can choose favorable actu- Yet, employers under the commit- arial assumptions to minimize the Retirement Protection Act of 1994. tee’s proposal are exempted from the The other side has attacked this pro- plan’s liabilities and maximize the ex- excise tax, and are merely required to cess assets it is entitled to withdraw posal. But is it not interesting that include the amount taken into income. their own President proposed the same from the retirement plan under the Any company with a net operating loss measure that is contained in the legis- proposal. Consequently, the cushion carryover can offset the income from lation before us tonight. provided by the proposal cannot ensure the pension transfer with its accumu- that adequate funds remain to fulfill lated net operating losses. Thus, the The minimum cushion is 125 percent the amount of the employees’ accrued tax paid by employers on a reversion of plan liabilities, and in many cases benefits. under this proposal could be zero. the cushion is as high as 150 percent of The laxity of this standard is dem- Moreover, under this proposal, an em- plan liability. In fact, a national actu- onstrated in PBGC’s analysis of several ployer can easily terminate its plan ary firm prepared a study that con- large plans. PBGC’s analysis of 10 large after draining it of excess assets, thus cluded that more than 70 percent of the plans revealed that a transfer in ac- avoiding the termination excise tax al- overfunded plans will be subject to a cordance with the provision in the bill together. cushion greater than 125 percent of could leave those plans with less than Senate Republicans argue that the plan liability. At these funding levels, 90 percent of the funds needed to pay use of the pension transfers under the the pension plan will always be at the benefits on termination. PBGC would proposal is restricted to meeting the full funding limit. be expected to pay the difference, up to costs of other qualified employee bene- In fact, plans at the full funding the guaranteed level. fits—primarily health benefits for ac- limit are not permitted to make new Moreover, the current liability stand- tive employees. Make no mistake: This contributions to the pension plan. Plan ard is highly susceptible to shifts in requirement is merely cosmetic. The trustees are required to use a plan the stock or bond market. The stock proposal allows employees’ pensions to asset valuation method that results in market is currently at an all-time be siphoned off for general corporate the largest asset cushion. And, to high; any subsequent drop in the mar- use. Nearly all employers who would guard against fluctuations in interest ket could have a significant adverse ef- take advantage of this proposal already rates and stock market values, the pro- fect on a plan’s asset values, thereby provide health benefits to their em- posal requires plan trustees to use Jan- causing a plan that currently has ex- ployees. Thus, using these excess assets uary 1, 1995, or the most recent valu- cess assets under the proposal to be- for existing health benefits merely ation date before the transfer, which- come underfunded. Thus, a more sub- frees up funds they would have spent ever results in the largest asset cush- stantial cushion is necessary than that anyway, to be used in turn for execu- ion. provided by the proposal to protect tive bonuses, extra shareholder divi- Employers must use the excess assets against future market shifts. dends, or the like. to fund ERISA-protected employee October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15821 benefit plans that cover a broad group The bill clerk read as follows: striking section 12161 and section 12162 as of employees. That is a most important The Senator from Minnesota [Mr. contained in the Balanced Budget Reconcili- point that must and should be under- WELLSTONE] proposes an amendment num- ation Act of 1995 as reported by the Senate stood. Employers can only take out the bered 2982. Committee on the Budget on October 23, 1995, in the fiscal year beginning in the year excess assets to fund other ERISA-pro- Mr. WELLSTONE. Mr. President, I of the estimate and notify the President and tected employee benefits that cover a ask unanimous consent that reading of Congress of the amount. broad group of employees. That is just the amendment be dispensed with. (2) REDUCTION OF DEFICIT.—On November 20 common sense. And the plans that can The PRESIDING OFFICER. Without of each year, the President shall direct the be funded with excess assets are lim- objection, it is so ordered. Secretary of the Treasury to pay an amount ited to—and let me spell them out— The amendment is as follows: equal to the amount determined pursuant to other retirement plans of the em- At the end of chapter 1 of subtitle I of title paragraph (1) to retire debt obligations of ployer, including underfunded retire- XII, insert: the United States. ment plans; active and retiree health SEC. . REPEAL OF EXPENSING OF INTANGIBLE At the end of chapter 8 of subtitle I of title DRILLING COSTS. XII, insert the following: plans; child care; disability; and edu- (a) FINDINGS.—The Senate finds that— cational assistance. SEC. . ELIMINATION OF EXCLUSION FOR FOR- (1) this legislation, as reported by the Sen- EIGN EARNED INCOME. This is a good plan, and, for that rea- ate Committee on the Budget on October 23, son, I must oppose amendment of Sen- (a) IN GENERAL.—Subsection (a) of section 1995, significantly reduces funding for medi- 911 (relating to citizens or residents of the ator KENNEDY. care and medicaid, student loans, food United States living abroad) is amended by Mr. KENNEDY addressed the Chair. stamps, and other federal efforts critical to striking ‘‘subtitle,’’ and all that follows and The PRESIDING OFFICER. Senator working families across the country, in order inserting ‘‘subtitle— KENNEDY. to pay for tax breaks to benefit primarily ‘‘(1) for any taxable year beginning before Mr. KENNEDY. I yield the final 30 wealthy corporations and others; January 1, 1996, the foreign earned income of seconds to the Senator from Vermont. (2) this legislation will significantly in- such individual, and Mr. President, I ask unanimous con- crease the tax burden on an estimated 17 ‘‘(2) for any taxable year, the housing cost million working families, by modifying the amount of such individual.’’ sent that Senators JEFFORDS, MOY- earned income tax credit, which has enjoyed NIHAN, BINGAMAN, EXON, WELLSTONE, longstanding bipartisan support; (b) EFFECTIVE DATE.—The amendment SIMON, and GRAHAM be added as cospon- (3) the Congressional Joint Tax Committee made by this section shall apply to taxable sors. has estimated that tax expenditures cost the years beginning after December 31, 1996. The PRESIDING OFFICER. Without United States Treasury over $420 billion an- (c) REVENUE LOCK BOX.— objection, it is so ordered. nually, and they estimate that amount will (1) AMOUNT OF DEFICIT REDUCTION.—Effec- Mr. JEFFORDS. Mr. President, I rise grow by $60 billion to over $480 billion annu- tive in 1997 and not later than November 15 ally by 1999; of each year, the Director of OMB shall esti- in vigorous support of removing these mate the amount of revenues resulting from provisions in this bill because we are (4) Congress should reduce the federal budget deficit in a way that is responsible, the enactment of this section in the fiscal dealing here with a very serious prob- and that requires shared sacrifice by elimi- year beginning in the year of the estimate lem of pension plans. This will result in nating many of the special interest tax and notify the President and Congress of the tens of billions of dollars being with- breaks and loopholes that have been embed- amount. drawn from employee pension plans at ded in the tax code for decades, making the (2) REDUCTION OF DEFICIT.—On November 20 a time when we are in absolute need of tax system fairer, flatter and simpler; of each year, the President shall direct the improving our pension capacity. It is (5) eliminating special interest tax breaks Secretary of the Treasury to pay an amount would enable Congress to do real tax reform, equal to the amount determined pursuant to done without any hearings. It is a mat- paragraph (1) to retire debt obligations of ter that is within the jurisdiction of making the system fairer and more simple by flattening the current tax rate structure the United States. our committee. We would want des- and eventually providing real tax relief for Strike section 12805 and insert: perately to make sure that what things working families; SEC. 12805. TERMINATION OF PUERTO RICO AND are done are done correctly and appro- (6) the savings generated by eliminating POSSESSION TAX CREDIT. priately. these special tax breaks immediately can be (a) REPEAL.—Section 936 is amended by I vigorously oppose the provisions used to reduce the deficit. adding at the end the following new sub- that are in the bill and support the (b) ELIMINATION OF DEDUCTION FOR CERTAIN section: INTANGIBLE DRILLING AND DEVELOPMENT strike amendment. ‘‘(j) TERMINATION.—This section shall not COSTS.—Section 263 (relating to capital ex- The PRESIDING OFFICER. All time apply to any taxable year beginning after penditures) is amended— has expired. December 31, 1995.’’ Mr. KENNEDY. Mr. President, I ask (1) by adding at the end of subsection (c) the following new sentence: ‘‘This subsection (c) REVENUE LOCK BOX.— for the yeas and nays. shall not apply to costs paid or incurred in (1) AMOUNT OF DEFICIT REDUCTION.—Effec- The PRESIDING OFFICER. Is there a taxable years beginning after December 31, tive in 1996 and not later than November 15 sufficient second? 1995.’’, and of each year, the Director of OMB shall esti- There is a sufficient second. (2) by striking subsection (i). mate the amount of revenues resulting from The yeas and nays were ordered. (c) EFFECTIVE DATE.—The amendments the enactment of this section in the fiscal The PRESIDING OFFICER. The Sen- made by this section shall apply to costs year beginning in the year of the estimate ator from Nebraska. paid or incurred in taxable years beginning and notify the President and Congress of the Mr. EXON. Mr. President, the next after December 31, 1995. amount. (d) REVENUE LOCK BOX.— (2) REDUCTION OF DEFICIT.—On November 20 Senator on the list is the distinguished of each year, the President shall direct the Senator from Minnesota, Senator (1) AMOUNT OF DEFICIT REDUCTION.—Effec- tive in 1996 and not later than November 15 Secretary of the Treasury to pay an amount WELLSTONE. I yield him 5 minutes. of each year, the Director of OMB shall esti- equal to the amount determined pursuant to The PRESIDING OFFICER. The Sen- mate the amount of revenues resulting from paragraph (1) to retire debt obligations of ator from Minnesota is recognized for 5 the enactment of this section in the fiscal the United States. minutes. year beginning in the year of the estimate Mr. WELLSTONE. Mr. President, AMENDMENT NO. 2982 and notify the President and Congress of the this amendment scales back corporate (Purpose: To scale back corporate welfare in amount. welfare in the Tax Code by eliminating the tax code by eliminating the deduction (2) REDUCTION OF DEFICIT.—On November 20 of each year, the President shall direct the several loopholes, including the deduc- for intangible drilling and development tion for intangible drilling and devel- costs for oil, gas, and geo-thermal wells, by Secretary of the Treasury to pay an amount eliminating the corporate minimum tax equal to the amount determined pursuant to opment costs for oil, gas, and geo- provisions, by eliminating the foreign paragraph (1) to retire debt obligations of thermal wells, the corporate minimum earned income exclusion, and by eliminat- the United States. tax provisions, the foreign earned in- ing the section 936 possession tax credit, On page 1550, beginning with line 13, strike come exclusion, and section 936, the and use the savings for deficit reduction) chapter 3 of subtitle B of title XII, and in- possession tax credit. It locks all of the sert: Mr. WELLSTONE. Mr. President, I savings away to be used for deficit re- SEC. 12161. REVENUE LOCK BOX. duction—and only for this purpose. send an amendment to the desk and (1) AMOUNT OF DEFICIT REDUCTION.—Effec- ask for its immediate consideration. tive in 1996 and not later than November 15 The savings from these amendments, The PRESIDING OFFICER. The of each year, the Director of OMB shall esti- all to go for deficit reduction, range be- clerk will report. mate the amount of revenues resulting from tween $60 and $70 billion, depending on S 15822 CONGRESSIONAL RECORD — SENATE October 26, 1995 whose estimates you use. I do not have have that might give them a chance to when it comes to children, belt-tight- time to go through each of these cor- survive, succeed, employ people and ening is all the rage. This amendment porate welfare provisions, but let me produce oil, has already lost 250,000 basically says, let us have a standard simply say that over and over and over jobs since the oil slump began. when it comes to some deficit reduc- again this week we have been talking We fought Desert Storm, and make tion. Let us have standard of fairness. about basic fairness, and that closing no bones about it, because oil is pre- I will reserve the rest of my time. these loopholes is an attempt to make cious to the United States, because it Mr. DOMENICI addressed the Chair. the Tax Code fairer. is a commodity without which our The PRESIDING OFFICER. The Sen- I will tell you right now, as people in American economy for now and the ator from New Mexico. the country look at this deficit reduc- foreseeable future cannot work. Mr. DOMENICI. I regret to tell my tion bill, they know that it is based Now, why would we come to the floor friend, Senator WELLSTONE, that aver- upon the path of least political resist- in a balanced budget activity and de- age people use oil. Without oil for ance. They know that it is dispropor- cide that we are going to take away America, average people suffer. Medi- tionately working families and middle- what will keep the little industry we care suffers. Hospitals close. income people and low- and moderate- have left for producing oil and gas and Does anyone recall when we were in income people who have been targeted. the men and women who work in it, the small embargo situation with Iran Mr. President, I do not know one citi- produce it and make a living? To me, it and the cars were piled up at our gaso- zen in Minnesota, or in any of our seems absolutely absurd. It seems kind line stations? They were even shooting States, if the truth be told, who would of like backward economics to go out each other in the excitement of trying not agree with the proposition that we there and pluck this industry, perhaps to get up there and see if they could ought to close some of these loopholes. because there is none in some States, get some gasoline in their cars. And by closing some of these loopholes, or perhaps people think when oil and All the gasoline comes from oil. Why with these benefits going primarily to gas is mentioned it is Exxon or that it should we stop producing oil in the large companies that do not need the is Mobil—nothing wrong with them, United States, take away the tax de- benefits, that have not been asked to but obviously in the United States, the ductions that are legitimate that they tighten their belts, instead of allowing principal people working and producing have? They are just as legitimate as these to continue we would have more oil and gas are independent producers. everybody else’s deduction. They are money to slash the deficit further, to They are finding most of the new oil. not a gratuity or a gift. So it might be invest in law enforcement, in edu- They are operating most of the rigs out nice to say, let us take out after this cation, in children, in health care, in there now. And I might just say, at this industry, but it is amazing when this transportation, in child care, in child particular time we have the lowest rig industry does not produce the very peo- nutrition programs. count since we started keeping records. ple who Senator WELLSTONE is so wor- It is a matter of priorities. Donald That means that even with these al- ried about are the ones who suffer be- Barlett and James Steele won a Pul- lowances we are hardly keeping pace cause everybody suffers. Our standard itzer for their book here, ‘‘America: with producing any new oil in Ameri- of living suffers. Inflation goes ramp- What Went Wrong?’’ They are two real- ca’s oil patch. ant. And I do not want to take that ly fine investigative reporters for the Now, Mr. President, Senator NICKLES chance. Philadelphia Inquirer. And in the sec- wants to speak about a minute or so on I reserve the remainder of my time. tion of the book ‘‘America: Who really this, and if the Senator would permit Pays the Taxes?’’ they have an inter- Mr. WELLSTONE. Mr. President, me, I will reserve the remainder of my how much time do I have remaining? esting paragraph: time and let the Senator complete his The PRESIDING OFFICER (Mr. STE- For over 30 years, Members of Congress with the hope that Senator NICKLES VENS). The Senator has 1 minute, 40 and Presidents, Democrats and Republicans will arrive. seconds. alike, have enacted one tax after another to Mr. WELLSTONE. Mr. President, I Mr. WELLSTONE. I will take 30 sec- create two separate and distinct systems, will just take a minute and then wait one for the rich and powerful called the priv- onds on this. ileged person’s tax law, and another for ev- to respond later, if I could. The PRESIDING OFFICER. The Sen- I remind my colleague that alto- eryone else called the common person’s tax gether this particular exemption is ator from Minnesota has 21⁄2 minutes. law. only about $2.5 billion over the next 5 Mr. President, this amendment will Mr. WELLSTONE. First of all, Mr. President, we have on the part of my years. This is a whole package, worth move us back toward a Tax Code that tens of billions, that says, let us close treats people fairly. It is time for some colleagues on the other side of the aisle a proposal for exporting more oil now these tax loopholes. People in the basic fairness, and that is the meaning country want us to. of this amendment. from the North Alaska slopes, at the very time we are saying we are worried Second, Mr. President, in all due re- I reserve the rest of my time. spect to my good friend from New Mex- The PRESIDING OFFICER. The Sen- about our own supply. That is already ico, this is exactly the line we so often ator has 21⁄2 minutes remaining. contained in this bill. hear: the sky is falling in. No one is Who yields time? The Senator from Second, this is typical of what hap- talking about eliminating the oil in- New Mexico. pens when we try to scale back cor- Mr. DOMENICI. Mr. President, it porate welfare and close tax loopholes. dustry. Nobody is talking about not sounds good to talk about getting rid Every time you take on a powerful in- having oil business. We are just saying, of depreciation and intangible drilling terest like this as opposed to regular how about closing these tax loopholes costs for the oil and gas industry in the people, opponents claim that the sky is so that when companies do not pay United States until you understand going to fall in. It is not true that this and—— that most of these go to independent change would spell the demise of the The PRESIDING OFFICER. The Sen- producers, those who really find the di- oil and gas industry. Just like other in- ator’s 30 seconds have expired. minishing supply of both oil and gas in dustries and other businesses, they Mr. WELLSTONE. I thought the America. These are not exceptional de- should be made to capitalize their Chair said I had 1 minute, 45 seconds. preciation allowances. They are not costs, to write off their costs over a The PRESIDING OFFICER. I am some gift. They are absolutely nec- longer period of time—the life of the sorry. The Chair thought the Senator essary unless we want to make a deci- asset. This is a special exemption, just meant to notify him when 30 seconds sion that America’s own oil and gas for one industry. That is what is going expired. production should disappear and we on here. And this is why people do not Mr. WELLSTONE. I am sorry. Let should not have any. trust this process. Every time it is a me finish very briefly and reserve the We are importing oil now, about half powerful interest whose benefits are remainder of my time. of our needs, and that is growing. And under fire, we hear all sorts of reasons Other people pay more. speak of losing jobs and losing growth. why they cannot be asked to tighten I reserve the remainder of my time. This industry that we would now try to their belts. But, boy, when it comes to The PRESIDING OFFICER. Who take away the last, the last thing they Medicare, when it comes to education, yields time? October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15823 Mr. WELLSTONE. How much time is tion based on a standard of fairness. We thing else—but they would be two that on the other side, Mr. President? would have more for education, more we would not lay down tonight. The PRESIDING OFFICER. One for children, more for health care, We would go ahead and put CONRAD’s minute. more for law enforcement. in, if you would like, and that would Mr. DOMENICI. I yield 1 minute to This is a perfect example of whether leave two amendments for tomorrow. Senator NICKLES. or not we will be willing to vote for And then we could use this evening to The PRESIDING OFFICER. Senator people we represent or whether or not see what the remaining lists of amend- NICKLES has 1 minute and 5 seconds. we are too beholden to powerful special ments are. We have 2 hours or 3 hours Mr. NICKLES. Mr. President, I urge interests. That is what this amend- that we are going to be down here. The my colleagues to oppose this amend- ment speaks to. Senator’s side and ours could put to- ment. I just heard about it. I under- I ask unanimous consent that copies gether the list which would follow after stand he says, well, we want to take of my prepared statements on each of the end of our second tier, which is the away this advantage, IDC. Really, what the four loopholes, elaborating on my goal. The Roth—— my colleague is saying is, you should policy rationale for closing them, be Mr. EXON. I would have to check on not be able to deduct ordinary out-of- included in the RECORD before the vote. it. Could we put in a brief quorum call pocket, nonrecoverable business ex- Mr. EXON. Mr. President, is all time and see if—this surprises me. I do not penses. That is ludicrous. It should not expired? know whether there is objection to it happen. He happens to be wrong on The PRESIDING OFFICER. All time or not. that issue. is expired. I know Senator PRYOR is ready to go. I think I heard my colleague say that Mr. EXON. Mr. President, the good Could we put in a quorum call for a few he wanted to eliminate the 936 benefit news is that according to my record— minutes? that goes towards Puerto Rico. We do and I believe my colleague will agree— Mr. FORD. Would the Senator yield that in this bill. We do it in the bill we have three amendments left in this for one moment? We have another over 7 years and over 6 years. There are tier 2 category: Pryor, Conrad and amendment. two different ways you count that ben- Roth, in that order. Mr. DOMENICI. Yes. efit. We phase it out over 6 or 7 years. Is that the Senator’s understanding? Mr. FORD. You talked about the I think it is a responsible provision. I Mr. DOMENICI. Finance Commit- Pryor amendment. We have the Simon- guess he wants to do it immediately, tee—Roth. We have been calling it ‘‘Fi- Conrad amendment that is also men- but you have a lot of firms that have nance Committee.’’ Yes. tioned. The Senator says take that one made investments. I think that would Mr. EXON. Pryor, Conrad, Roth—Fi- tonight and have Pryor tomorrow? be very inappropriate. nance Committee. Mr. DOMENICI. I called it Conrad. I My colleague may call it corporate Mr. WELLSTONE. Would the Senator am sorry. welfare, but again I think this commit- from Nebraska yield for a moment, a tee has taken some very responsible ac- split second? Mr. FORD. I do not believe Senator tion in allowing people to deduct their Mr. EXON. Yes. PRYOR is going to be willing to move out-of-pocket, nonrecoverable business Mr. WELLSTONE. I ask unanimous his away from tonight. expenses as should be allowed and consent that Senator FEINGOLD be in- Mr. EXON. Wait a minute. How many phasing out the tax benefit that was di- cluded as an original cosponsor of my amendments? We have Pryor, Conrad, rected towards Puerto Rico. amendment. Roth. Is it Conrad-Simon? All right. So I would urge the Senate to oppose The PRESIDING OFFICER. Without We have three amendments; right. my colleague’s amendment. objection, it is so ordered. Mr. DOMENICI. We call it Conrad; he The PRESIDING OFFICER. The Sen- Mr. EXON. I now recognize Senator calls it Simon. ator’s time has expired. PRYOR from Arkansas for his amend- Mr. EXON. All right. The Senator has 1 minute. ment and yield him the 5 minutes. Mr. NICKLES. One wears a bow tie. Mr. WELLSTONE. Mr. President, Mr. DOMENICI addressed the Chair. Mr. EXON. I suggest the absence of a facts are stubborn things. It is a fact The PRESIDING OFFICER. The Sen- quorum. that IDC’s are a special exemption. ator from New Mexico. The PRESIDING OFFICER. The With my amendment, you could still in Mr. DOMENICI. Could I yield myself clerk will call the roll. this industry capitalize your costs, de- 5 minutes and have an exchange with The bill clerk proceeded to call the preciate them over a longer period of the Senator, a conversation that our roll. time, just like with most other indus- leader asked me to have, if the Senator Mr. DOMENICI. Mr. President, I ask tries. would? unanimous consent that further pro- This is just a special exemption that Mr. EXON. Certainly. ceedings under the quorum call be dis- most other businesses do not get. We Mr. DOMENICI. We have 17 amend- pensed with. have been talking about the tax rate in ments that are completed. The PRESIDING OFFICER. Without Puerto Rico. In 1993, I wanted to phase The PRESIDING OFFICER. The Sen- objection, it is so ordered. it out, even though I was sympathetic ator from New Mexico has no time. Mr. DOMENICI. Mr. President, I un- to concerns that doing so suddenly Mr. DOMENICI. Please? derstand they have two amendments would be unfair. That didn’t happen. The PRESIDING OFFICER. I am in- on their side. We will hold our Roth And now, we have 7 to 10 more years formed the Senator from New Mexico amendment until morning. So we will provided for in this bill. My amend- has no time. proceed with theirs at this point. ment says that by 1997 we have to Mr. DOMENICI. Where is the time, Mr. EXON. Mr. President, I thank the eliminate it. all on the Democrat side? chairman of the committee. My amendment says, colleagues, that Could the Senator yield me 4 minutes I now recognize Senator PRYOR, as I we have to make tough choices. Barlett to engage in this conversation? did previously, and have awarded him and Steele have it right. What do you Mr. EXON. I will. the 5 minutes on our side. have? One person’s tax code is called Mr. DOMENICI. I say to the Senator, The PRESIDING OFFICER. The Sen- the ‘‘privileged person’s tax law,’’ and Senator DOLE has suggested, since we ator from Arkansas is recognized for 5 for everyone else, call it the ‘‘common have 17 amendments to vote on now, minutes. person’s tax law.’’ It is time we under- we would like to vote on them to- Mr. PRYOR. Thank you, Mr. Presi- stand: regular people pay more because night—that will put us well beyond 12 dent. I thank the Chair for recognizing these loopholes allow often very profit- o’clock, and we will vote on them all— me. able companies—some of the largest that we put over two amendments and most powerful companies in the until morning, and that be the Pryor AMENDMENT NO. 2983 country—are paying less. amendment and what the Senator has (Purpose: To provide for the continuation of This is revenue that the Government heretofore called the Roth amendment. requirements for nursing facilities in the does not collect. We ought to have defi- And we would not change anything Medicaid Program) cit reduction here. This is between $60 about those amendments in terms of Mr. PRYOR. Mr. President, in this billion to $70 billion of deficit reduc- votes—5 minutes of debate, and every- 2,000-page piece of legislation, the S 15824 CONGRESSIONAL RECORD — SENATE October 26, 1995 budget reconciliation bill of 1995, we ing, to the 63 percent who need help in Mr. PRYOR. Mr. President, I am would think that just about everything toileting, the 91 percent who need help looking for Senator COHEN, our cospon- under the sun would have been thought bathing, ‘‘We are sorry, you can just sor on the other side. I do not see him. of and included in this to consume make it on your own. We are doing The PRESIDING OFFICER. The Sen- some 2,000 pages. away with all Federal standards. We ator has 30 seconds. But what we did not include in this are going to leave it to the States’’? Mr. PRYOR. If Senator MIKULSKI reconciliation bill is something very, But, Mr. President, the reason we needs an additional 20 seconds, I will be very vital, Mr. President, because have Federal standards today as a re- glad to yield to her. those are the nursing home standards sult of OBRA 87 is because the States that we have had enacted since 1987, were not meeting their obligation and Ms. MIKULSKI. Mr. President, the and if we fail to reenact those same their challenge. idea of safety is absolutely crucial, nursing home standards on the Federal Mr. President, I know that there are that we need adequate staff, but we level, we will be failing to protect a two or three of my colleagues who need to have those standards so that if very, very fragile and vulnerable asset, want to speak. I know that Senator anyone is too sick to say how they are which is the elderly population of this ROCKEFELLER wants 30 seconds. I yield being cared for, we know that we are country, some 2 million now residing in 30 seconds to Senator ROCKEFELLER. preventing their abuse, we know that these American nursing homes. The PRESIDING OFFICER. The Sen- they are receiving the right medica- Mr. President, I send the amendment ator from West Virginia is recognized tion, we know that they are being ade- to the desk. I send it to the desk on be- for 30 seconds. quately cared for. Mr. ROCKEFELLER. I thank the half of myself and Senator COHEN of The PRESIDING OFFICER. The Sen- Maine. Presiding Officer and the Senator from ator’s time has expired. The Senator The PRESIDING OFFICER. The Arkansas. If there was a sense upon my has 10 seconds left. colleagues of nervousness just before clerk will report. Mr. PRYOR. Mr. President, I want to Senator PRYOR offered his amend- Mr. PRYOR. I have several cospon- conclude by thanking the distinguished sors. I will not read all of those at this ment—there was a lot of huddling—in the sense of what was going to happen, Senator from Maine, Senator COHEN, time. It will consume too much time. for not only being a cosponsor, but also The bill clerk read as follows: my colleagues noticed correctly. I think that there was an effort to try having labored for many years in this The Senator from Arkansas [Mr. PRYOR], and not have a vote on this tonight, be- particular field. He supports strongly for himself, Mr. COHEN, Mrs. BOXER, Mr. this amendment. I also would like— BUMPERS, Mr. CONRAD, Mr. DODD, Mr. cause this is one of the most important FEINGOLD, Mr. HARKIN, Mr. INOUYE, Mr. KEN- amendments that we will vote on in The PRESIDING OFFICER. Thank NEDY, Mr. LAUTENBERG, Mr. LEAHY, Mr. this entire, somewhat bizarre process. you. The Senator’s time has expired. LEVIN, Mr. LIEBERMAN, Ms. MIKULSKI, Mrs. The PRESIDING OFFICER. The time Mr. PRYOR. Mr. President, I also MURRAY, Mr. ROCKEFELLER, Mr. SIMON, Mr. of the Senator has expired. would like to acknowledge Senator WELLSTONE, and Mr. KOHL proposes an Mr. PRYOR. I yield 30 seconds to the BOXER of California who has truly spo- amendment numbered 2983. Senator from Florida. ken on many occasions and feels com- Mr. PRYOR. I ask unanimous con- The PRESIDING OFFICER. The Sen- passionate about this amendment. sent that further reading of the amend- ator from Florida is recognized. Mr. DOMENICI. Mr. President, Sen- ment be dispensed with. Mr. GRAHAM. Mr. President, I ask ator CHAFEE is going to explain where The PRESIDING OFFICER. Without unanimous consent to be listed as an we are. Let me just suggest, at Senator objection, it is so ordered. original cosponsor of the amendment. I COHEN’s suggestion, Senator CHAFEE, The amendment is as follows: point out that the arguments against and others, the so-called Finance Com- Beginning on page 889, line 21, strike all this amendment are going to be that mittee amendment, which you are through page 897, line 19, and insert the fol- we ought to let the States have unbri- going to have an evening to look at, lowing: dled responsibility, discretion as to will have everything in it Senator ‘‘SEC. 2137. QUALITY ASSURANCE STANDARDS how to set these standards. FOR NURSING FACILITIES. I should point out that in the year COHEN wants and even further improve- ‘‘The provisions of section 1919, as in effect 2002 in my State, which has the highest ments than the one before us. So I do on the day before the date of the enactment not want anyone to think we have done of this title, shall apply to nursing facilities percentage of persons over 80 in the country, that we are going to have 35 that after we defeat your amendment which furnish services under the State plan. tonight, because it is in there and you Mr. PRYOR. Mr. President, since we percent less funds than is currently projected to meet the needs of our el- all will see it when we get it circulated. enacted OBRA 1987, we have seen a dra- The PRESIDING OFFICER. The Sen- matic change in the care of the nursing derly, our frail elderly. The PRESIDING OFFICER. The Sen- ator from Rhode Island. home patients in our country. For ex- ator’s time has expired. ample, we have seen a 38 percent de- Mr. CHAFEE. Mr. President, I com- Mr. GRAHAM. If there is any pre- mend the Senator from Arkansas for cline in the number of physical re- scription for abuse, it is a 35-percent straints. Since the enactment of the his efforts in connection with the nurs- cut in funds and no Federal standards. ing home standards and, indeed, he and OBRA 1987 nursing home regulations, The PRESIDING OFFICER. The Sen- which was, I might say, a bipartisan ef- I have worked together in the Finance ator’s time has expired. Without objec- Committee. I voted with him in con- fort—the late John Heinz, former Sen- tion, the Senator’s request is granted. ator Durenberger, former Senator nection with his amendment, which Mr. PRYOR. Mr. President, I yield 20 was defeated 10 to 10. George Mitchell, former Senator Jack seconds to the Senator from Maryland, Since then, in conjunction with Sen- Danforth from Missouri—we have seen Senator MIKULSKI. a dramatic advance in all of the things The PRESIDING OFFICER. The Sen- ator COHEN and others on this side, we that make the quality of care in nurs- ator from Maryland is recognized. have prevailed upon what you might ing homes better; for example, in resi- Ms. MIKULSKI. Mr. President, my call the managers of the bill to put in dent outcomes, a 50 percent increase in father was in a nursing home for 3 a very good Federal nursing home the number of dehydration cases that years. He had Alzheimer’s. We could go standard provision. As regards nursing we have solved, and no longer do we and visit him and make sure he was homes, there are two provisions in here find many of these patients dehy- OK. But one of the things we need to that I think are superior to the provi- drated. know is when people are in a nursing sion that Senator PRYOR has, although We see also just a characteristic of home, they are often too sick to care I am not intimately familiar with ev- the nursing home population, Mr. for themselves or they are too sick to erything that he has. President. And how are we going to af- say how they are being cared for. If we One, in the provision that we have, ford to look them in the eye and say do not have Federal standards around we remove the costly and duplicative that we failed to adopt any Federal safety and staffing to be sure that requirement that standards perform so- standards in the budget reconciliation our— called preadmission screening and an- bill and we are going to say to the 77 The PRESIDING OFFICER. The Sen- nual resident review, which is known percent of those who need help dress- ator’s time has expired. by the acronym of PASARR, and that October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15825 would not be included and it is my un- vision—it was worked out with Senator substitute contained in the managers’ derstanding that this is a rather good COHEN, Senator SNOWE, Senator bill. I have not seen the language. provision. CHAFEE, and others on this side of the I think Senator DOLE is correct. We Second, we have a proposal that if aisle. We think it is a pretty good pro- ought to put this off until tomorrow so the States have tighter inspection re- vision. So I hope if we are interested in we can compare the language. If we are quirements than the Federal, then the getting the best provision in the bill, satisfied there will be adequate over- States can apply to the Secretary of we will do as Senator DOMENICI sug- sight and enforcement authority re- HHS for a waiver and have those tight- gested: Wait until morning, have a tained by the Federal Government, I er provisions included as the inspection vote, find out which is the superior would recommend to my colleague requirements or the standard require- provision, and then vote accordingly. from Arkansas that we accept the man- ments for the nursing homes within The PRESIDING OFFICER. The agers’ bill. that State. Chair apologizes. The Chair did not ask Mr. PRYOR. If my friend from Maine You might say, ‘‘Well, how do they the Senator from Rhode Island if he will yield, Mr. President, let me re- go about enforcing it?’’ We have a pro- would yield to the majority leader. mind my colleagues that in the man- vision that it can be enforced by HCFA. Mr. CHAFEE. Do I still have control agers’ amendment to be offered by Sen- So we think that this has a lot of pro- of the time? ator ROTH tomorrow, the nursing home visions in it that have merit. I would have been delighted to have provision is only a very, very small I urge those on the other side to take yielded that time. part of it. There is going to be, as I un- a look at this provision that is in the The PRESIDING OFFICER. I again derstand it, a change in the Medicaid so-called managers amendment. apologize and give back 20 seconds. formula, also encompassed in the man- Mr. ROCKEFELLER. Will the Sen- Mr. CHAFEE. Was there another agers’ amendment. This is only a small ator yield? question, or does that satisfy every- section of it. The PRESIDING OFFICER. There is one? I think we should go ahead according still not quiet in the Chamber. The The PRESIDING OFFICER. There to schedule. We have all been here all Senator is entitled to be heard. are 18 seconds left to the Senator from day, playing by the rules. Let us vote Mr. GRAHAM. Will the Senator from Rhode Island. for the Pryor amendment and the Rhode Island yield? Mr. CHAFEE. Mr. President, I ask Pryor-Cohen amendment tonight, and Mr. CHAFEE. Quickly, because it is Senator COHEN if he wants to say any- if we need to change it tomorrow, we on my time. thing? can, and we can look at it tomorrow. Mr. GRAHAM. I agree with what you Mr. COHEN. I believe I will get 2 The PRESIDING OFFICER. The time just said. I would like to be able to minutes to speak. of the Senator has expired. All time on compare the specifics of what is going The PRESIDING OFFICER. There is the amendment has expired. to be offered with what Senator PRYOR no time left on the Democratic side. Mr. PRYOR. Mr. President, I ask for and others have offered. When will we Mr. EXON. I yield 2 minutes off the the yeas and nays. have that opportunity? bill to the Senator from Maine. The PRESIDING OFFICER. Is there a Mr. DOLE. I can respond. I think The PRESIDING OFFICER. The Sen- sufficient second? that language is ready now. I think we ator from Maine is recognized for 2 There is a sufficient second. are working on some other language, minutes. The yeas and nays were ordered. but that language is ready. That is why Mr. COHEN. Mr. President, let me Mr. EXON. Mr. President, we are we wanted to wait until the morning so specifically address the issue whether down to the final amendment, as I un- we can compare that. or not this is a political effort on the derstand it, we will be debating to- Mr. GRAHAM. The difficulty is we part of my colleague and friend from night. Therefore, I yield the 5 minutes are going to get this sometime in the Arkansas, Senator PRYOR. on our side to Senator SIMON for his morning and then be expected to vote We had a hearing this morning deal- distribution. on it. We are going to vote on this ing with nursing home standards. I The PRESIDING OFFICER. The Sen- amendment tonight; correct? want to say, for the benefit of all who ator from Illinois. Mr. CHAFEE. I think the suggestion are here, I have been working with Mr. SIMON. Mr. President, I yield was to put the vote off until the morn- Senator DOLE, Senator CHAFEE, Sen- myself 2 minutes. ing and to give you a chance to look at ator SNOWE, and others, to try to make AMENDMENT NO. 2984 this particular provision. sure that the standards that were set (Purpose: In the nature of a substitute) Mr. GRAHAM. The vote on Senator in place by OBRA 1987 go back into PRYOR’s amendment off until tomor- place, that we have Federal standards Mr. SIMON. Mr. President, I send an row? and Federal enforcement of the nursing amendment to the desk and ask for its Mr. DOLE. Both. home rights, as such. Senator DOLE has immediate consideration. Mr. DOMENICI. Both; we ask for been most amenable to that. The PRESIDING OFFICER. The both. I think Senator CHAFEE is correct clerk will report. The PRESIDING OFFICER. The that we have actually made some im- The assistant legislative clerk read Chair advises Senators to please go provements in cutting back on some of as follows: through the Chair so we keep some the things that do not need to be there, The Senator from Illinois [Mr. SIMON], for control. that are costing money and are dupli- himself and Mr. CONRAD, proposes an amend- Who seeks time? There is 1 minute 28 cative. One issue remaining in my ment numbered 2984. seconds left. mind is, in fact, the extension of the Mr. SIMON. Mr. President, I ask Mr. DOLE addressed the Chair. waiver, so-called, to the States that unanimous consent that reading of the The PRESIDING OFFICER. The ma- have higher standards than required by amendment be dispensed with. jority leader. Federal law. The concern I have is that The PRESIDING OFFICER. Without Mr. DOLE. Mr. President, let me in- if such standards are so high that they objection, it is so ordered. dicate that we have addressed this con- therefore would apply for a waiver, (The text of the amendment is print- cern, and I think as Senator CHAFEE what in fact would be the role of the ed in today’s RECORD under ‘‘Amend- pointed out, if we really want to find Federal Government as far as oversight ments Submitted.’’) the best provision, we ought to com- and enforcement? If there will be strict Mr. SIMON. Mr. President, this is the pare the two. We may not vote on the oversight and enforcement, I would amendment you have read about in the PRYOR amendment tonight. I will de- recommend we support the bill that we Washington Post when it says a ‘‘Good cide how many amendments we vote on offered as part of the managers’ bill. If, Budget Compromise.’’ This is the this evening. So we will have an oppor- however, that is a major loophole that amendment the New York Times has tunity to look at the language in both. would be seen as such by those in the editorialized about. This says balance If you are looking for a political business itself—the nursing home in- the budget, number one. And we have a vote, we can have the political vote, dustry, providers and consumers—I comprehensive program to do that. but if you are looking for the best pro- would have problems supporting the Number two, we eliminate the tax cut. S 15826 CONGRESSIONAL RECORD — SENATE October 26, 1995

Senator SPECTER said, ‘‘If you would fiscal dividend that is not supposed to what it means for a person who is in have a secret vote, 20 Republican Sen- be there until you are in balance—that the median on Social Security getting ators would not vote for the tax cut.’’ is how we thought it worked, that you $770, it would be a reduction of $3.85 for To say we are going to balance the get to balance and you get a fiscal divi- which that person gets more help on budget, and then start with a tax cut, dend—they take the $170 billion fiscal Medicare and Medicaid. is like having a New Year’s resolution dividend, before in balance, and put it I think seniors would welcome this to diet and start with a great big des- in their balanced budget. proposal. sert. The PRESIDING OFFICER. The Mr. DOMENICI. I yielded back my Third, we take the CPI and reduce it Chair cannot hear the Senator. time, but I ask unanimous consent to by one-half of 1 percent. At the Fi- Mr. DOMENICI. I am pleased that the retrieve 1 minute of it to yield to Sen- nance Committee meeting, Senator Chair is concerned, and I thank him. I ator NICKLES. DOLE said, in talking about looking at want to close by saying that I really do The PRESIDING OFFICER. Without the CPI, ‘‘This is something we should not believe this is the kind of budget objection, it is so ordered. have addressed years ago.’’ This is still we want to adopt here tonight. I think Mr. NICKLES. Mr. President, I thank below what the special economist said if anybody had a real chance to look my colleague from New Mexico. I join should be a drop of between 0.7 to 2 through it and go into detail, they him in opposition to this amendment. points. would agree with the Senator from Although I compliment the sponsors Third, we help the less fortunate in New Mexico. our society. Instead of a savings of $270 I want to go through the three. You of the amendment for saying we should billion in Medicare, it is $168 billion. get $115 billion by changing the CPI by use an accurate CPI, they do not go as Instead of $187 billion in Medicaid, it is .5. I was wondering a little while ago— far as that that was proposed by a $83 billion. Welfare reform—there is $36 my friends on the Democrat side were group of economists that said we billion more for poor people. Discre- concerned because we had not given should use from 0.7 percent even and tionary spending, $79 billion more. Vet- them our amendments. Most are one maybe above 1 percent. Whatever the erans programs are assisted. Agri- page. We just got this one now, in case percent is, it should be accurate, and culture programs are assisted. Student anybody wonders, which is all right. I most estimates are that 0.5 percent, loan programs are helped. am not complaining. It is just that we which would save something like $115 This is a balanced program that do not know very much about it. These billion, is on the low side. So I com- makes sense and it balances the budget few little facts are about the best I can pliment them for doing that. in a prudent way. I hope we can move do. I rise in opposition to their proposal in this direction. Mr. FORD. Now you know how we because they want to spend $245 billion I reserve the remainder of my time. feel when we have 2,000 pages. more so we do not tax more. I would The PRESIDING OFFICER. Who Mr. DOMENICI. I think you got those like to give taxpayers a break for $245 yields time? pursuant to the rules. They were before billion and reduce spending to pay for Mr. SIMON. I yield 2 minutes to the you all. This was presented right here, it. That is the difference between the Senator from North Dakota, Mr. Presi- tonight, to us. I do not want to take two. dent. any more time. I will yield the remain- I compliment them for a very signifi- Mr. CONRAD. I thank the Senator der of my time. cant element of this package and hope from Illinois. This is an amendment for Mr. SIMON. Mr. President, I yield 50 that ultimately we will use accurate those who disagree with cutting taxes seconds to my colleague from Virginia. CPI reflection in all of our cost-of-liv- by $245 billion at the very time we are Mr. ROBB. Mr. President, I thank my ing adjustments. adding $1.8 trillion to the national colleague and friend from Illinois. I Mr. DOLE. Mr. President, as I under- debt. This is the amendment for those will not make a full statement at this stand, all the amendments have been who are concerned that the Medicare time. I will put one in the RECORD. Suf- offered that will be offered this evening and Medicaid cuts are too severe. This fice it to say—I say this to my good in tier 2. The committee amendment is the amendment for those who oppose friends on the other side of the aisle— will be offered tomorrow morning. cuts in education. This is the amend- this is where we ought to be going. I now ask unanimous consent that ment for those who want welfare to be This is a tough, fair, principled budget the votes scheduled to begin now be work-oriented but protect the children. that reflects the kind of distribution limited to 8 minutes after the first roll- This is the amendment for those who that we ought to be looking toward if call vote, with 1 minute for expla- are concerned about the raid on rural we are going to come up with a reason- nation between each vote to be equally America contained in the underlying able solution to the fiscal challenges divided in the usual form. bill. This is the amendment for those that are facing the country today, and The PRESIDING OFFICER. Without who recognize that CPI overstates the it does it without a $245 billion tax cut objection, it is so ordered. cost of living. The advisory commis- that we simply cannot afford and Mr. DOLE. Let me persuade my col- sion to the Finance Committee said it should not be giving under the cir- leagues we will have about 18 votes is overstated by .7 to 2.0. That means cumstances. here. If we all stay in the Chamber we adding $600 billion to the national debt I am pleased to join my fiscally re- will probably save 20 or 30 minutes. over the next 7 years. sponsible colleagues in offering an al- There are not many places to go at 9:30 Mr. President, I hope my colleagues ternative that I think meets the test at night around here. They can watch will support this amendment to fairly that this country is looking for us to the ball game right off the floor. Hope- balance the budget. meet. fully, we will accommodate one an- The PRESIDING OFFICER. Who The PRESIDING OFFICER. The time other by being here. yields time? of the Senator has expired. Mr. DOMENICI. How much time do I Mr. SIMON. I yield myself the re- The first vote will be the normal 15 have on the amendment, and how much mainder of the time. minutes plus 5 to give people time to time do they have? In terms of the fiscal dividends that come back from wherever they want to The PRESIDING OFFICER. The Sen- Senator DOMENICI is talking about, we come back from. ator from New Mexico has 5 minutes; balance the budget also, so we have the The PRESIDING OFFICER. Does the the minority has 1 minute 50 seconds. same savings on interest. request include 1 minute before the Mr. DOMENICI. Mr. President, let me In terms of the size of this—and I rec- first vote? remind Senators of a couple of things. ognize this is not going to pass to- Mr. DOLE. One minute before each First of all, the Consumer Price Index night—but I think this may be the vote equally divided in the usual form. provides $115 billion of the money need- basis for a compromise that we may We will start tomorrow morning at 9 ed to balance their budget. In addition, move toward. I think there is a lot of o’clock, and we hope to have 71⁄2- Medicare is getting cut, or hit, or re- common sense in this. minute votes after the first vote, so we formed $168 billion. So we are doing In terms of the CPI, it is less than ask all Senators to remain in the both Medicare and CPI. And then, was recommended to the Finance Com- Chamber—not overnight but be back third, and equally as important, the mittee by the economic experts, and here. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15827 Mr. DOMENICI. Mr. President, I won- Lott Nunn Simon ators in the Chamber who desire to Lugar Pell Simpson der if Senator EXON would join in re- Mack Pressler Smith vote? questing from his side what I request McCain Pryor Snowe The result was announced—yeas 79, for our side. McConnell Reid Specter nays 20, as follows: We still have a third tier, which are Mikulski Robb Stevens Moseley-Braun Rockefeller Thomas [Rollcall Vote No. 508 Leg.] all the amendments that will not get Moynihan Roth Thompson YEAS—79 debated. We would like to use the Murkowski Santorum Thurmond evening now while we are here voting Murray Sarbanes Warner Abraham Frist McConnell Nickles Shelby Wellstone Akaka Glenn Mikulski to have you get as many together so we Baucus Graham Moseley-Braun know, maybe tonight or early morning, The amendment (No. 2964) was agreed Biden Gramm Moynihan how many you have. And we have to. Boxer Grassley Murkowski AMENDMENT NO. 2965 Bradley Harkin Murray some. Perhaps we can give the Sen- Breaux Hatch ators an idea, then, by midmorning on The PRESIDING OFFICER. Ladies Nickles Brown Heflin Nunn and gentlemen, the next amendment is Bumpers Helms how many there are. Pell Burns Hollings Mr. EXON. I advise my colleague we amendment 2965 by Mr. HELMS, 1 Pressler minute equally divided. Byrd Hutchison have been working on that. We were Campbell Inhofe Pryor talking about it a few minutes ago in Mr. ROCKEFELLER. May we have Cochran Inouye Robb order. Cohen Johnston Rockefeller the Cloakroom. We do not have a defin- Roth itive number. We have made major re- The PRESIDING OFFICER. There Conrad Kassebaum will be 1 minute equally divided on this Coverdell Kempthorne Santorum ductions generally in the area that we Craig Kennedy Sarbanes have been indicating to you in our se- amendment prior to the vote. D’Amato Kerrey Shelby The Chair recognizes the Senator ries of negotiations about where we DeWine Kerry Simon from North Carolina. Dole Kohl Smith think we will end up. I do not know This is going to be a long night un- Domenici Kyl Snowe that I can give a specific number to- Dorgan Lautenberg Specter less we can get quiet after these votes. Exon Leahy night. I will explore that. Mr. HELMS. Mr. President, I think Stevens The PRESIDING OFFICER. The first Faircloth Levin Thurmond this is one of few times when both sides Feingold Lott Warner amendment is numbered 2964 by Sen- are in favor of an amendment. It is to Feinstein Lugar Wellstone ator MCCAIN and others; 1 minute, protect the right of senior citizens to Ford McCain equally divided. Who yields time? choose their own doctors if they wish. NAYS—20 Mr. DOLE. I yield back the time. I think the distinguished manager of Ashcroft Daschle Lieberman The PRESIDING OFFICER. Is all the bill, Mr. DOMENICI, has a clarifica- Bennett Dodd Mack time yielded back on this amendment? tion. Bingaman Gorton Reid Does the Senator from Nebraska yield Bond Grams Simpson Mr. DOMENICI. I would like to say Bryan Gregg back the 30 seconds? Thomas for the Republicans, there is a tech- Chafee Hatfield Thompson Mr. EXON. I yield back my time. nical error on the explanation. This Coats Jeffords The PRESIDING OFFICER. All time amendment has been modified so that So the amendment (No. 2965) was is yielded back. the language in our Whip Notice—it agreed to. Mr. NICKLES. I ask for the yeas and says, ‘‘if you don’t comply, they are Mr. HELMS. I move to reconsider the nays. not eligible for Medicare reimburse- vote. The PRESIDING OFFICER. They ment’’—is out of this. It is not in this Mr. FORD. I move to lay that motion have been ordered. amendment. I think the amendment on the table. Mr. DOLE. Did we order the yeas and deserves to be adopted. nays on all the amendments? Mr. ROCKEFELLER addressed the The motion to lay on the table was The PRESIDING OFFICER. Is there Chair. agreed to. an objection for all the yeas and nays The PRESIDING OFFICER. The Sen- AMENDMENT NO. 2969 to be ordered at one time? ator from West Virginia. The PRESIDING OFFICER. The Is there a sufficient second? Mr. ROCKEFELLER. Mr. President, question occurs on agreeing to amend- There is a sufficient second. this amendment pretends that the Re- ment No. 2969 offered by the Senator The yeas and nays were ordered on publican budget’s destructive plan for from Colorado [Mr. BROWN]. The yeas all amendments that have been debated Medicare will preserve the senior citi- and nays are ordered. so far. zen’s ability to get their care through There will be 1 minute equally di- fee for service and continue to see his VOTE ON AMENDMENT NO. 2964 vided on the question. or her own doctor. The PRESIDING OFFICER. The Now, it is fine to pretend, so vote for Who yields time? clerk will call the roll on amendment the amendment. It is all right. It is not Mr. DOLE. The time is running. No. 2964. going to do any harm. Make no mis- The PRESIDING OFFICER. Time is The assistant legislative clerk called take. There is no guarantee of any- running. Who wants to claim the 30 the roll. The result was announced— thing in the Helms amendment for sen- seconds on each side? yeas 99, nays 0, as follows: iors and their future ability to see Mr. BROWN addressed the Chair. [Rollcall Vote No. 507 Leg.] their own doctor. The PRESIDING OFFICER. The Sen- YEAS—99 Mr. HELMS. Mr. President, I ask for ator from Colorado [Mr. BROWN] is rec- Abraham Coverdell Harkin the yeas and nays. ognized for 26 seconds. Akaka Craig Hatch The PRESIDING OFFICER. The yeas Mr. BROWN. The measure that is be- Ashcroft D’Amato Hatfield and nays have been ordered on every Baucus Daschle Heflin fore the Senate takes a 1993 limitation Bennett DeWine Helms amendment. on business’ ability to deduct salaries Biden Dodd Hollings Mr. DOLE. Mr. President, this will be in excess of $1 million and applies it, Bingaman Dole Hutchison an 8-minute vote. Bond Domenici Inhofe not to just publicly traded corpora- The PRESIDING OFFICER. This is tions to which it applies to now, it ap- Boxer Dorgan Inouye an 8-minute vote. Bradley Exon Jeffords plies it to nonpublicly traded organiza- Mr. DOLE. This is the test. If we all Breaux Faircloth Johnston tions and other business. It is a fair- Brown Feingold Kassebaum stay here, we may finish. Bryan Feinstein Kempthorne The PRESIDING OFFICER. All time ness question. It is grandfathered for Bumpers Ford Kennedy has expired. The question is on agree- any existing contracts, but I might say Burns Frist Kerrey the money that is raised goes to reduce Byrd Glenn Kerry ing to the amendment. The yeas and Campbell Gorton Kohl nays have been ordered. The clerk will the Social Security earnings penalty. Chafee Graham Kyl call the roll. The PRESIDING OFFICER. The Sen- Coats Gramm Lautenberg ator’s time has expired. Cochran Grams Leahy The legislative clerk called the roll. Cohen Grassley Levin The PRESIDING OFFICER (Mr. Mr. EXON. I yield back our 30 sec- Conrad Gregg Lieberman SANTORUM). Are there any other Sen- onds. S 15828 CONGRESSIONAL RECORD — SENATE October 26, 1995 The PRESIDING OFFICER. The Mr. DOMENICI. Mr. President, I Specter Thomas Thurmond Stevens Thompson Warner question is on agreeing to amendment yield to Senator COHEN. No. 2969. Mr. COHEN. Mr. President, the anti- The PRESIDING OFFICER. On this The yeas and nays have been ordered. fraud provision in the Finance Com- vote the ayes are 43, the nays are 56. The clerk will call the roll. mittee measure has been the product of Three-fifths of the Senators duly cho- The legislative clerk called the roll. over 3 years of effort on my part. I sen and sworn not having voted in the The PRESIDING OFFICER. Are there have had to work with Justice, FBI, affirmative, the motion to waive the any other Senators in the Chamber de- the White House, providers, consumers, Budget Act is rejected. The point of siring to vote? and they support the provision as writ- order is well taken and the amendment The result was announced—yeas 99, ten. falls. nays 0, as follows: In addition to that, there is a dele- AMENDMENT NO. 2971 [Rollcall Vote No. 509 Leg.] tion under my bill which would allow The PRESIDING OFFICER. The next YEAS—99 the criminal fines imposed under the amendment is amendment No. 2971. Abraham Feingold Lott violation to go back into the Medicare There are 30 seconds on each side for Akaka Feinstein Lugar Ashcroft Ford Mack trust fund. That is deleted under the debate. Baucus Frist McCain Senator’s amendment. Mr. McCAIN. Mr. President, this Bennett Glenn McConnell I urge that we reject this amendment amendment removes about $60 billion Biden Gorton Mikulski Bingaman Graham Moseley-Braun for a variety of reasons but, most of worth of corporate pork over a period Bond Gramm Moynihan all, because it would make a last- of 7 years. It has bipartisan support. Boxer Grams Murkowski minute change over something that is For the information of my col- Bradley Grassley Murray leagues, it does not include the auction Breaux Gregg Nickles accepted by virtually everybody. Brown Harkin Nunn The PRESIDING OFFICER. The Sen- of public safety spectrum. Obviously, Bryan Hatch Pell ator from New Mexico. that would be exempt from the auction Bumpers Hatfield Pressler of spectrum. Burns Heflin Pryor Mr. DOMENICI. Mr. President, the Byrd Helms Reid pending amendment is not germane to Mr. President, I understand the point Campbell Hollings Robb the provisions of the reconciliation bill of order may be lodged against this Chafee Hutchison Rockefeller pursuant to section 305(b)(2). I raise a amendment. It makes no sense to lodge Coats Inhofe Roth a point of order against an amendment Cochran Inouye Santorum point of order against the pending Cohen Jeffords Sarbanes amendment. that would reduce spending, which is Conrad Johnston Shelby what this legislation is supposed to be Coverdell Kassebaum Simon Mr. EXON. Mr. President, pursuant to section 904 of the Congressional all about. Craig Kempthorne Simpson Mr. EXON. The pending amendment D’Amato Kennedy Smith Budget Act of 1974, I move to waive the Daschle Kerrey Snowe applicable sections of that act for the would add two new matters to the bill DeWine Kerry Specter consideration of the pending amend- and violate the prohibition of non- Dodd Kohl Stevens germane amendments. I raise a point of Dole Kyl Thomas ment, and I ask for the yeas and nays Domenici Lautenberg Thompson on the motion to waive. order that the pending amendment is Dorgan Leahy Thurmond therefore not germane and thus vio- The PRESIDING OFFICER. Is there a Exon Levin Warner lates section 305(b)(2) of the Congres- Faircloth Lieberman Wellstone sufficient second? sional Budget Act of 1974. So, the amendment (No. 2969) was There is a sufficient second. I yield back the remainder of my agreed to. The yeas and nays are ordered, and time. I ask for the yeas and nays. Mr. BROWN. Mr. President, I move the clerk will call the roll. Mr. McCAIN. I move to waive the to reconsider the vote. The legislative clerk called the roll. point of order and ask for the yeas and Mr. EXON. I move to lay that motion The PRESIDING OFFICER. Are there nays. on the table. any other Senators in the Chamber de- The PRESIDING OFFICER. The The motion to lay on the table was siring to vote? question is on the motion. agreed to. The yeas and nays resulted—yeas 43, Is there a sufficient second? Mr. DOLE. Mr. President, let me ob- nays 56, as follows: There is a sufficient second. serve that, out of the three votes, we The question is on the motion to have had two unanimous votes. Maybe [Rollcall Vote No. 510 Leg.] waive the Budget Act. some could be done by voice vote. It YEAS—43 The clerk will call the roll. would save some time. Otherwise, we Akaka Ford Mikulski The bill clerk called the roll. are going to stay on the eight-minute Biden Glenn Moseley-Braun Bingaman Graham The PRESIDING OFFICER. Are there schedule, and I urge my colleagues to Moynihan Boxer Harkin Murray any other Senators in the Chamber de- stay on the premises. Breaux Heflin Nunn siring to vote? The yeas and nays re- AMENDMENT NO. 2970 Bryan Inouye Pell sulted—yeas 25, nays 74, as follows: The PRESIDING OFFICER. The Bumpers Johnston Pryor Byrd Kennedy Reid [Rollcall Vote No. 511 Leg.] pending question is amendment No. Conrad Kerrey Robb Daschle Kerry YEAS—25 2970. Rockefeller Dodd Kohl Abraham Gramm Lautenberg Mr. EXON. I yield 30 seconds to the Sarbanes Dorgan Lautenberg Biden Grams McCain Senator from Iowa. Simon Exon Leahy Bradley Grassley Moynihan Mr. HARKIN. Mr. President, this Wellstone Feingold Levin Brown Gregg Pell amendment is the fraud, waste, and Feinstein Lieberman Coats Hutchison Robb Cohen Jeffords abuse amendment. It saves $600 mil- NAYS—56 Roth lion, by CBO’s estimate, more than the Dole Kennedy Thompson Abraham Dole Kempthorne Faircloth Kerry underlying amendment. This is a cul- Ashcroft Domenici Kyl Feingold Kohl mination of 5 years of hearings. Baucus Faircloth Lott NAYS—74 All of the things in this amendment Bennett Frist Lugar were recommended by the Inspector Bond Gorton Mack Akaka Chafee Ford Bradley Gramm Ashcroft Cochran Frist General’s office and by GAO. It saves McCain Brown Grams McConnell Baucus Conrad Glenn more than $600 million. In sum, all I Burns Grassley Murkowski Bennett Coverdell Gorton Campbell Gregg Bingaman Craig Graham can tell you is what this does. It says Nickles Chafee Hatch Bond D’Amato Harkin Pressler that when the Veterans Administra- Coats Hatfield Boxer Daschle Hatch Roth tion pays 4 cents for a bandage and Cochran Helms Breaux DeWine Hatfield Medicare pays 86 cents, something is Cohen Hollings Santorum Bryan Dodd Heflin Shelby wrong. Let us pay the same thing as Coverdell Hutchison Bumpers Domenici Helms Craig Inhofe Simpson Burns Dorgan Hollings the Veterans Administration. That is D’Amato Jeffords Smith Byrd Exon Inhofe what this amendment does. DeWine Kassebaum Snowe Campbell Feinstein Inouye October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15829 Johnston Mikulski Shelby [Rollcall Vote No. 512 Leg.] The PRESIDING OFFICER. Time has Kassebaum Moseley-Braun Simon YEAS—46 expired. Kempthorne Murkowski Simpson Kerrey Murray Smith Abraham Ford Moseley-Braun Mr. EXON. I yield 30 seconds to the Kyl Nickles Snowe Akaka Glenn Moynihan Senator from West Virginia. Leahy Nunn Specter Baucus Harkin Murray Mr. ROCKEFELLER. Mr. President, Levin Pressler Stevens Biden Hatfield Pell Boxer Heflin two excellent Senators are offering this Lieberman Pryor Thomas Pressler Lott Reid Breaux Inouye Thurmond Pryor amendment and trying to protect the Lugar Rockefeller Bryan Jeffords Warner Reid basic Medicaid coverage for the very Mack Santorum Bumpers Johnston Robb Wellstone Byrd Kennedy poorest, very oldest and disabled Amer- McConnell Sarbanes Rockefeller Conrad Kerrey icans. Sarbanes The PRESIDING OFFICER. On this Daschle Kohl Simon I hope everybody will vote for it. But, Dodd Lautenberg vote, the yeas are 25, the nays are 74. Specter again, you cannot turn a frog into a Three-fifths of the Senators duly cho- Dorgan Leahy Exon Levin Stevens prince. The underlying bill would re- sen and sworn not having voted in the Feingold McConnell Wellstone quire 200 such amendments to make it affirmative, the motion is rejected. Feinstein Mikulski agreeable. I hope people will support The point of order is well taken and NAYS—53 this. the amendment falls. Ashcroft Faircloth Lott The PRESIDING OFFICER. The time AMENDMENT NO. 2972 Bennett Frist Lugar has expired. Bingaman Gorton Mack Mr. DOMENICI. Do we not get to The PRESIDING OFFICER. The Bond Graham McCain question occurs on amendment 2972, of- Bradley Gramm Murkowski speak against it, since both sides were fered by the Senator from West Vir- Brown Grams Nickles for it? There was no opposition. Burns Grassley ginia. Nunn Mr. DOLE. I would ask unanimous Campbell Gregg Roth Chafee Hatch consent to proceed for 30 seconds. Mr. EXON. I yield 30 seconds to the Santorum Coats Helms The PRESIDING OFFICER. Without Senator from West Virginia. Shelby Cochran Hollings objection, it is so ordered. The PRESIDING OFFICER. The Sen- Simpson Cohen Hutchison The majority leader. ator from West Virginia is recognized Coverdell Inhofe Smith Snowe Mr. DOLE. This is another infringe- for 30 seconds. Craig Kassebaum D’Amato Kempthorne Thomas ment on the Governors. We are going The Senate will please come to order. DeWine Kerry Thompson to turn over these programs, make The Senator from West Virginia. Dole Kyl Thurmond Domenici Lieberman Warner them entitlements, and give them Mr. BYRD. Mr. President, my amend- block grants, and make it impossible So, the amendment (No. 2972) was re- ment restores $712 million rescinded by for Democrats or Republicans to ad- jected. the bill in 48 States in highway funds. minister the program. Mr. DOMENICI. I move to reconsider The PRESIDING OFFICER. The Sen- We had this argument. We discussed ator will suspend. Senators will please the vote. Mr. DOLE. I move to lay that motion it long and hard with the Senator from come to order. on the table. Rhode Island. I hope we would defeat Mr. BYRD. Senators will find on The motion to lay on the table was this amendment. If you do not have their desks a detailed table which agreed to. any faith in your Governor, then vote shows the reductions that were made the other way. AMENDMENT NO. 2973 in each of the 48 States. The PRESIDING OFFICER. The The PRESIDING OFFICER. The Sen- I restore this money by closing a cor- question occurs on amendment No. 2973 ator’s time has expired. porate loophole. The corporate loop- offered by the Senator from Rhode Is- The question is on agreeing to amendment No. 2973. hole is closed by the House by a phase- land, Senator CHAFEE. out in 4 years; closed by the bill by a The Senator from Rhode Island is The yeas and nays are ordered. The phaseout in 5 years. I say, let us go recognized for 30 seconds. clerk will call the roll. with the House, phase out the loophole Mr. CHAFEE. Mr. President, I am The bill clerk called the roll. in 4 years and restore $712 million in pleased to be joined in this amendment The PRESIDING OFFICER. Are there highway funds to the 48 States. by Senators CONRAD and FRIST. The any other Senators in the Chamber de- The PRESIDING OFFICER. The time reconciliation bill says States must siring to vote? of the Senator has expired. The Sen- cover the disabled but does not define The result was announced—yeas 60, ator from New Mexico. who is disabled. This amendment nays 39, as follows: Mr. DOMENICI. Mr. President, for adopts the same definition of ‘‘dis- [Rollcall Vote No. 513 Leg.] those who thought the highway dem- abled’’ as we used in the welfare bill YEAS—60 onstration programs were good pro- which we passed—— Akaka Feinstein Levin grams and all the projects were good Mr. HARKIN. Point of order. The Baucus Ford Lieberman projects, obviously you ought to vote Senate is not in order. Biden Frist McConnell Bingaman Glenn Mikulski for this. The PRESIDING OFFICER. The Sen- Boxer Graham Moseley-Braun They were never spread equally ator is correct. Bradley Gregg Moynihan across the land. They had very signifi- The Senate will please come to order. Breaux Harkin Murray Those Senators in front of the Chair, Bryan Hatfield Nunn cant preferential treatment, depending Bumpers Heflin Pell upon a lot of things. So I think the please take your conversations to the Byrd Hollings Pryor committee that decided to do this cloakroom. Chafee Inouye Reid Mr. CHAFEE. Do I start my 30 sec- Cohen Jeffords Robb acted appropriately, especially since Conrad Johnston Rockefeller they applied the savings to a very good onds over? Daschle Kassebaum Sarbanes cause. The PRESIDING OFFICER. The Sen- DeWine Kennedy Simon The PRESIDING OFFICER. The ator has 16 seconds remaining. Dodd Kerrey Simpson Mr. CHAFEE. Well, I will start. This Domenici Kerry Snowe question is on agreeing to the amend- amendment adopts the same definition Dorgan Kohl Specter ment. Exon Lautenberg Stevens of ‘‘disabled’’ as we used in the welfare Feingold Leahy Wellstone The yeas and nays have been ordered. bill which we passed 87–12. It does not NAYS—39 The clerk will call the roll. include substance abuses. That is a The legislative clerk called the roll. Abraham Cochran Grams mistake in the little chit that was cir- Ashcroft Coverdell Grassley The PRESIDING OFFICER. Are there culated here. These individuals are at Bennett Craig Hatch any other Senators in the Chamber 75 percent of the poverty level or less. Bond D’Amato Helms who desire to vote? They cannot get health insurance. This Brown Dole Hutchison Burns Faircloth Inhofe The result was announced, yeas 46, safety net is essential to them if they Campbell Gorton Kempthorne nays 53, as follows: are going to stay in the community. Coats Gramm Kyl S 15830 CONGRESSIONAL RECORD — SENATE October 26, 1995 Lott Nickles Smith Hutchison McCain Smith amendment. I strongly support this Lugar Pressler Thomas Inhofe McConnell Snowe amendment. We hoped, originally, that Mack Roth Thompson Jeffords Murkowski Specter McCain Santorum Thurmond Kassebaum Nickles Stevens we would be able to permit the self-em- Murkowski Shelby Warner Kempthorne Pressler Thomas ployed to deduct 100 percent of their in- Kyl Roth Thompson surance premiums, and this looks like So, the amendment (No. 2973) was Lott Santorum Thurmond they are going to take about 55 per- agreed to. Lugar Shelby Warner Mr. CHAFEE. Mr. President, I move Mack Simpson cent. This is the best we could do, but to reconsider the vote by which the NAYS—46 it is better than in the past. amendment was agreed to. Akaka Feinstein Lieberman Mr. WELLSTONE. Can I ask what Mr. FORD. I move to lay that motion Baucus Ford Mikulski the offset is? on the table. Biden Glenn Moseley-Braun Mr. DOMENICI. Mr. President, the Bingaman Graham The motion to lay on the table was Moynihan time has expired. Boxer Harkin Murray agreed to. Bradley Heflin Nunn Mr. DOLE. We did not need an offset. Breaux Hollings AMENDMENT NO. 2963 Pell We found another area where they Bryan Inouye Pryor The PRESIDING OFFICER. The Bumpers Johnston overestimated or underestimated, or Reid Byrd Kennedy whatever it is. question recurs on amendment No. 2963 Robb Conrad Kerrey offered by the Senator from Louisiana. Rockefeller The PRESIDING OFFICER. All time Daschle Kerry has expired. A motion to table is pending on Dodd Kohl Sarbanes which the yeas and nays have been or- Dorgan Lautenberg Simon Mr. DOMENICI. Mr. President, I won- dered. Who yields time? Exon Leahy Wellstone der, will the Senator withdraw the yeas Mr. EXON. I yield 30 seconds to the Feingold Levin and nays? Senator from Louisiana. So the motion to lay on the table the Mr. BOND. We would like the yeas The PRESIDING OFFICER. The Sen- amendment (No. 2963) was agreed to. and nays since everybody is here. ator from Louisiana is recognized for 30 Mr. DOMENICI. Mr. President, I Mr. DOMENICI. OK. seconds. move to reconsider the vote. The PRESIDING OFFICER. The Mr. EXON. I move to lay that motion Mr. BREAUX. Mr. President, I say to question is on agreeing to the amend- on the table. my colleagues, I urge my Republican The motion to lay on the table was ment, as modified. colleagues to vote for this tonight, be- agreed to. The yeas and nays have been ordered, cause NEWT GINGRICH is going to do it and the clerk will call the roll. AMENDMENT NO. 2975, AS MODIFIED in conference. You all are going to be The PRESIDING OFFICER. The The legislative clerk called the roll. on record of voting against it. They are pending business is amendment No. The PRESIDING OFFICER. Are there going to fix it in conference. 2975 offered by the Senator from Mis- any other Senators in the Chamber de- I suggest to vote against tabling, be- souri [Mr. BOND]. siring to vote? cause you can add 44 percent more chil- The Senator from Missouri has 30 The result was announced—yeas 99, dren who would benefit from the child seconds. nays 0, as follows: tax credit. Without this amendment, Mr. BOND. Mr. President, pursuant [Rollcall Vote No. 515 Leg.] you are cutting off 31 million young- to a unanimous consent agreement YEAS—99 sters who will not benefit from the tax when I offered the amendment, I send a credit. It is that simple. Guess what? Abraham Feingold Lott modification to the desk. Akaka Feinstein Lugar They are going to do it in conference. The PRESIDING OFFICER. The Sen- Ashcroft Ford Mack The PRESIDING OFFICER. The Sen- ator has that right. Baucus Frist McCain ator’s time has expired. The amendment is so modified. Bennett Glenn McConnell Mr. DOMENICI. I yield my time to The amendment (No. 2975), as modi- Biden Gorton Mikulski Bingaman Graham Moseley-Braun Senator NICKLES. fied, is as follows: Bond Gramm Moynihan The PRESIDING OFFICER. The Sen- On page 1620 after line 1 insert: Boxer Grams Murkowski Bradley Grassley Murray ator from Oklahoma. SUBCHAPTER A—HEALTH INSURANCE COSTS OF Breaux Gregg Nickles Mr. NICKLES. Mr. President, I urge SELF-EMPLOYED INDIVIDUALS Brown Harkin Nunn my colleagues to vote against this SEC. 12201. INCREASE IN DEDUCTION FOR Bryan Hatch Pell amendment. This amendment would HEALTH INSURANCE COSTS OF Bumpers Hatfield Pressler build another entitlement program, an- SELF-EMPLOYED INDIVIDUALS. Burns Heflin Pryor Byrd Helms Reid other brandnew entitlement program (a) INCREASE IN DEDUCTION.—Section 162(1) is amended— Campbell Hollings Robb into the Tax Code. According to the (1) by striking ‘‘30 percent’’ in paragraph Chafee Hutchison Rockefeller Joint Tax Committee, the Breaux (1) and inserting ‘‘55 percent’’. Coats Inhofe Roth Cochran Inouye Santorum (b) EFFECTIVE DATE.—The amendments amendment would increase outlays by Cohen Jeffords Sarbanes $37 billion over 7 years. I urge my col- made by this section shall apply to taxable Conrad Johnston Shelby leagues to vote no. years beginning after December 31, 1995. Coverdell Kassebaum Simon The PRESIDING OFFICER. The Mr. BOND. Mr. President, when I Craig Kempthorne Simpson D’Amato Kennedy Smith question is on agreeing to the motion raised the question of deductibility of Daschle Kerrey Snowe to table the Breaux amendment. The health insurance, I said we were look- DeWine Kerry Specter yeas and nays have been ordered. The ing for another offset. I have been able Dodd Kohl Stevens to work with the managers and the ma- Dole Kyl Thomas clerk will call the roll. Domenici Lautenberg Thompson The assistant legislative clerk called jority leader. They have enabled us to Dorgan Leahy Thurmond the roll. eliminate the offsets which would have Exon Levin Warner The PRESIDING OFFICER. Are there taken out the long-term care insur- Faircloth Lieberman Wellstone any other Senators in the Chamber de- ance, and we are able to raise the de- So the amendment (No. 2975), as siring to vote? ductibility for self-employed individ- modified, was agreed to. uals and small business people from 30 The result was announced—yeas 53, BIDEN MOTION TO COMMIT nays 46, as follows: to 55 percent. I believe that this is something we can work with in con- The PRESIDING OFFICER. The [Rollcall Vote No. 514 Leg.] question is on agreeing to the motion YEAS—53 ference. The PRESIDING OFFICER. The time to commit with instructions offered by Abraham Cochran Frist of the Senator has expired. the Senator from Delaware. Ashcroft Cohen Gorton The Senator from Delaware is recog- Bennett Coverdell Gramm Mr. BOND. Mr. President, I ask for Bond Craig Grams the yeas and nays. nized for 30 seconds. Brown D’Amato Grassley The PRESIDING OFFICER. They Mr. BIDEN. Mr. President, one thing Burns DeWine Gregg have already been ordered. all Americans say they care about is to Campbell Dole Hatch Chafee Domenici Hatfield Mr. PRYOR. Mr. President, I am the get a college education for their chil- Coats Faircloth Helms cosponsor on this side of the Bond dren. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15831 This amendment will allow—it costs The Senator from Maine. The PRESIDING OFFICER. Is there a $35 billion, roughly $5 billion a year, Ms. SNOWE. I thank the Chair. sufficient second? and it would allow a $10,000 per year de- First of all, I would like to say that There is a sufficient second. duction—maximum deduction—for the this amendment is cosponsored by Sen- The yeas and nays were ordered. cost of college tuition for couples mak- ators D’AMATO, SHELBY, BIDEN, MACK, Mr. DOLE addressed the Chair. ing up to $120,000, or individuals up to MURKOWSKI, HUTCHISON, GRAMM, The PRESIDING OFFICER. The ma- $90,000. COHEN, and JEFFORDS. jority leader. This is a genuine benefit for the mid- This amendment is a sense of the Mr. DOLE. This will be the last vote dle class, and we do exactly what the Senate that would provide coverage this evening, and we will start voting Republican bill does. The way in which under Medicare for breast and prostate tomorrow morning at 9:15. The first we get the money is restrict the cancer. vote will be on the amendment by—— growth of tax expenditures. When changes were made in Medicare Mr. FORD. Mr. President, may we Mr. DOMENICI. Mr. President, has back in 1993, there was an inadvertent have order, please. there been a motion to table? omission whereby oral drug treatment The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. No. was not covered under Medicare for ator from Kentucky is correct. The Mr. DOMENICI. I yield back any breast and prostate cancer. It is a cost- Senate will please come to order. time I have. I move to table the Biden saving measure. This is the last vote. Senators will amendment and ask for the yeas and Mr. President, I will ask unanimous please listen. nays. consent to vitiate the yeas and nays Mr. DOLE. Senator GRAMM of Texas. The PRESIDING OFFICER. Is there a and ask for a voice vote. The first vote will come on his amend- sufficient second? The PRESIDING OFFICER. Without ment, and the first vote will be 20 min- There is a sufficient second. objection, it is so ordered. utes in length. Then we will go back to Yeas and nays they were ordered. Who yields time? our 8 minutes after the first vote. We The PRESIDING OFFICER. The The Senator from Nebraska. have had 20 votes today. I wish to question is on the motion to table. Mr. EXON. I yield my time back. thank my colleagues. The clerk will call the roll. The PRESIDING OFFICER. If there Mr. FORD. Mr. President, will the The assistant legislative clerk called is no further debate, the question is on Senator yield? Are we going tomorrow the roll. agreeing to the amendment. by the schedule of amendments offered, The PRESIDING OFFICER. Are there The amendment (No. 2976) was agreed and then we go down that line and then any other Senators in the Chamber to. we are on, will be on the last ones? who desire to vote? AMENDMENT NO. 2977 Mr. DOLE. Right. We are going to go The result was announced, yeas 55, The PRESIDING OFFICER. The nays 44, as follows: down—that is right, yes. question occurs on amendment No. 2977 Mr. FORD. We go as introduced. [Rollcall Vote No. 516 Leg.] offered by the Senator from North Da- Mr. DOLE. Then we go to tier three. YEAS—55 kota. Mr. FORD. I thank the Senator. Abraham Gorton McConnell The Senator from North Dakota is Mr. DOLE. Then tier four and tier Ashcroft Gramm Mikulski recognized for 30 seconds. five. Bennett Grams Murkowski The Senator will suspend. The Senate Bond Grassley Mr. FORD. Ten. Nickles will come to order. Brown Gregg Pressler The PRESIDING OFFICER. The Burns Hatch Mr. EXON. Mr. President, I yield 30 Robb question is on agreeing to the motion Campbell Hatfield seconds to the Senator from North Da- Roth to waive the budget act. The yeas and Chafee Heflin Santorum Coats Helms kota. Shelby nays are ordered. The clerk will call Cochran Hutchison The PRESIDING OFFICER. The Sen- Simpson the roll. Coverdell Inhofe ator from North Dakota is recognized. Smith The legislative clerk called the roll. Craig Jeffords Mr. DORGAN. Mr. President, it is an D’Amato Kassebaum Snowe The PRESIDING OFFICER. Are there extraordinarily simple amendment. We DeWine Kempthorne Stevens any other Senators in the Chamber Thomas have in the Tax Code of the United Dole Kyl who desire to vote? Domenici Lott Thompson States an incentive, a tax break, a tax Thurmond The yeas and nays resulted—yeas 47, Faircloth Lugar deduction for somebody who closes Feingold Mack Warner nays 52, as follows: Frist McCain their plant in this country and moves the jobs overseas to a tax haven, pro- [Rollcall Vote No. 517 Leg.] NAYS—44 duces the same product with foreign YEAS—47 Akaka Exon Levin workers, then ships the product back Akaka Feinstein Lieberman Baucus Feinstein Lieberman Biden Ford Mikulski Biden Ford to the United States. Moseley-Braun Bingaman Glenn Moseley-Braun Bingaman Glenn Moynihan This simply gets rid of the tax break Boxer Graham Murray Boxer Graham Murray for companies that move the jobs over- Bradley Harkin Nunn Bradley Harkin Nunn seas. If we cannot close this tax loop- Breaux Heflin Pell Breaux Hollings Pell Bryan Hollings Bryan Inouye hole, we cannot close any tax loophole. Pryor Pryor Bumpers Inouye Reid Bumpers Johnston I would hope we will have an affirma- Byrd Johnston Reid Robb Byrd Kennedy Cohen Kennedy Rockefeller tive vote on this amendment. Rockefeller Cohen Kerrey Conrad Kerrey Sarbanes The PRESIDING OFFICER. The Sen- Sarbanes Conrad Kerry Daschle Kerry Daschle Kohl Simon ator’s time has expired. Simon Specter Dodd Kohl Dodd Lautenberg Dorgan Snowe Wellstone Mr. DOMENICI. Mr. President, I Lautenberg Dorgan Leahy yield back our time. Exon Leahy Stevens Wellstone So, the motion to lay on the table This amendment contains extraneous Feingold Levin the motion to commit was agreed to. material and is not germane and there- NAYS—52 Mr. DOMENICI. Mr. President, I fore subject to a point of order under Abraham Dole Kassebaum move to reconsider the vote. the Budget Act. Ashcroft Domenici Kempthorne Mr. FORD. I move to lay that motion Mr. EXON addressed the Chair. Baucus Faircloth Kyl Bennett Frist Lott on the table. The PRESIDING OFFICER. The Sen- Bond Gorton Lugar The motion to lay on the table was ator from Nebraska. Brown Gramm Mack agreed to. Mr. EXON. Mr. President, pursuant Burns Grams McCain Campbell Grassley McConnell AMENDMENT NO. 2976 to section 904 of the Congressional Chafee Gregg Moynihan The PRESIDING OFFICER. The Budget Act of 1974, I move to waive the Coats Hatch Murkowski question occurs on amendment No. 2976 applicable sections of that act for the Cochran Hatfield Nickles offered by the Senator from Maine, Ms. consideration of the amendment, and I Coverdell Helms Pressler Craig Hutchison Roth SNOWE, on which the yeas and nays ask for the yeas and nays on the mo- D’Amato Inhofe Santorum have been ordered. tion to waive. DeWine Jeffords Shelby S 15832 CONGRESSIONAL RECORD — SENATE October 26, 1995 Simpson Thomas Warner Section 313(c) of the Budget Act This list is a compilation of items Smith Thompson Specter Thurmond states: identified by both the majority and mi- The inclusion or the exclusion of a provi- nority staff of the Senate Budget Com- The PRESIDING OFFICER. On this sion shall not constitute a determination of mittee. The staffs did not agree on vote, the yeas are 47, the nays are 52. extraneousness by the Presiding Officer of every item, but the differences were Three-fifths of the Senators duly cho- the Senate. small when one considers the con- sen and sworn not having voted in the In addition, this list does not rep- troversial and comprehensive nature of affirmative, the motion is rejected. resent the Budget Committee’s posi- this bill. I want to thank the staff. The The amendment falls. tion on the program or policies rep- Byrd rule has evolved over the past 10 Mr. GRAMS. Mr. President, I move resented in these provisions or a waiver years and identifying those provisions to reconsider the vote by which the of a point of order against these provi- that violate the rule is a very difficult motion was rejected. sions. The Budget Act requires the exercise. committee to simply identify potential Mr. ROTH. I move to lay that motion Mr. President, I ask unanimous con- violations under three components of on the table. sent that the list be printed in the the Byrd rule and the committee has The motion to lay on the table was RECORD. complied with the law. agreed to. That a provision appears on this list There being no objection, the list was LIST OF EXTRANEOUS MATTER (THE BYRD RULE) does not mean it will automatically be ordered to be printed in the RECORD, as Mr. DOMENICI. Mr. President, pursu- deleted from the bill. A Senator must follows: ant to section 313(c) of the Budget Act, raise a point of order against the provi- BALANCED BUDGET RECONCILIATION ACT OF I submit a list of material considered sion and the Presiding Officer must 1995—POSSIBLE EXTRANEOUS PROVISIONS; to be extraneous under subsections 313 sustain the point of order. The Byrd SENATE BILL (b)(1)(A), (b)(1)(B), and (b)(1)(E) on be- rule may be waived in the Senate by an (Prepared by the Republican Staff of the U.S. half of the Committee on the Budget. affirmative vote of 60 Senators. Senate Budget Committee, October 1995) EXTRANEOUS PROVISIONS—SENATE BILL

Provision Comments/Violation

AGRICULTURE, NUTRITION, AND FORESTRY Sec. 1113(a)(4), 1113(c), and (e) (2) ...... Clarification on peanut pool and sale, lease, or transfer of farm poundage quota for 1991 through 2000 crops of peanuts and allows non-quota peanuts to become available if market price exceeds 120 percent of loan rate; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 1115 ...... Savings adjustment; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 1116 ...... Sense of the Senate regarding tax provisions relating to ethanol; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. ARMED SERVICES Naval Petroleum Reserve Sale (Elk Hills) Sec. 2; Sec. 7421a(f) ...... Requirements on Elk Hills production until sale is completed; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2; Sec. 7421a(j) ...... Requirement that a sale cannot take place unless DOE provides a notice to Congress; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2; Sec. 7421a(k) ...... Expedited procedures for Congressional consideration of a resolution of approval of the sale; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2; Sec. 7421a(l) ...... Notice to Congress of noncompliance with deadlines; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2; Sec. 7421a(m) ...... Requirement that GAO monitor DOE sale and report to Congress; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Naval Oil Shale Reserve Sale Sec. 2; Sec. 7421b(b) ...... Application of Sec. 7421(h), (j), (k), (l), & (m) to the Oil Shale Reserve sale; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2; Sec. 7421b(b)(C) ...... Expedited procedures for consideration of joint resolution of approval of the sale; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 3002 ...... Byrd rule (b)(1)(A): Produces no change in outlays or revenues. This section would require the Secretary of Treasury to report to the Congress on the feasibility of a private deposit insurance system. Sec. 3001(d) ...... Byrd rule (b)(1)(A): Produces no change in outlays or revenues. This subsection outlines a merger of the two deposit insurance funds for banks (BIF) and thrifts (SAIF), but item (4) of this subsection makes implementation of all of subsection (d) contingent on a future act of Congress (which will be necessary to eliminate all thrift charters). Therefore, the entire subsection 3001(d) will have no effect when reconciliation is enacted. COMMERCE, SCIENCE AND TRANSPORTATION Sec. 4001(a)(C), beginning on p. 207, line 1 with ‘‘un- Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Section 4001 directs the FCC to allocate spectrum to applicants by auction spectrum, but exempts certain parts of less’’ through ‘‘1998’’ on line 23. the spectrum from being sold at auction. Section 4001(a)(C) lists as one of the exemptions the spectrum to be used for advanced/digital television, with a qualification. That is, the FCC can’t auction spectrum for digital TV ‘‘unless’’ the FCC submits within six months a new proposal for allocating this spectrum by auction and the Congress ‘‘takes action to approve the plan’’ (i.e. enacts a later law with the President’s signature). Because the prohibition on auctioning spectrum for digital TV stands on its own and is un- affected by the possibility that Congress could always come back later and change the law, the language telling the FCC to do a new plan that would have to be approved by Congress has no impact on the receipts yielded by the auctions that are authorized in this bill, and therefore that language is extraneous. Sec. 4002 ...... Byrd rule (b)(1)(A): Produces no change in outlays or revenues. This section would amend a schedule of regulatory fees charged by the FCC to broadcasters. These fees were es- tablished by OBRA ’93 as permanent offsetting collections to be ‘‘credited to the account providing appropriations’’ to the FCC. Two months later, the Commerce-Justice-State appropriations bill for 1994 amended OBRA ’93 by saying that these fees ‘‘shall be collected only if, and only in the total amounts, required in Appropriations Acts.’’ Therefore, if there is no appropriations action, then these fees cannot be collected. Since future collection of the fees is contingent on future action by the Congress, changing the sched- ule of fees in this reconciliation bill has no budgetary effect, so the provision is extraneous. Sec. 4021 ...... Byrd rule (b)(1)(E): A provision which would, on net, increase outlays or decrease revenues in a fiscal year after the period covered by the reconciliation bill. Section limits the fee the Coast Guard can charge for inspection of small vessels. Provision does not sunset and causes outlays beyond the years in which savings are achieved through spectrum auctions. Sec. 4022(a) Use of Interest for Oil Spill Recovery Insti- Byrd rule (b)(1)(E): A provision which would, on net, increase outlays or decrease revenues in a fiscal year after the period covered by the reconciliation bill. Section provides for tute. new direct spending by allowing interest in Oil Spill Liability trust fund attributed to the Oil Spill Recovery Institute (OSRI) be used by the Institute. Provision may or may not sunset, due to interaction with next provision, dealing with Section 1012 in Alaska. Provision will cause outlays beyond the years in which savings are achieved through spec- trum auctions. Sec. 4022(a) Use of Section 1012 in Alaska ...... Byrd rule (b)(1)(E): A provision which would, on net, increase outlays or decrease revenues in a fiscal year after the period covered by the reconciliation bill. Section provides for new direct spending beginning eleven years after enactment of the 1995 Coast Guard authorization bill by mandating principal attributed to the Oil Spill Recovery Institute (OSRI) in the Oil Spill Liability trust fund be used for oil spill liability and compensation activities in Alaska. Sec. 4033 ...... Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Section provides change in current law to the Local Rail Freight Assistance program allowing for disaster assist- ance for railroads. Sec. 4034 ...... Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Section provides for additional eligible state activities under the Local Rail Freight Assistance program. ENERGY AND NATURAL RESOURCES Subtitle A—United States Enrichment Corporation Sec. 5002 ...... Enrichment Corporation statement of purpose; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5004(d)(2) & (3) ...... Enrichment Corporation amendments dealing with the scoring of the proceeds from the sale of the corporation; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5013(a)(1)(B) ...... Requirement that DOE accept low level nuclear waste from any operator of an enrichment facility; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5013(c) ...... Waiver of liability for State or Interstate Compact’s requirement to accept low level nuclear wate from any enrichment facility; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Subtitle C—Arctic Coastal Plain Leasing and Revenue Act Sec. 5202 ...... Purpose and policy; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5207(d) second sentence ...... Special Areas reporting requirement to Congress; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Portion of Sec. 5215(b) ...... Reporting requirements (beginning with line 12 on page 48 through line 2 on page 49); Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Subtitle D—Park Entrance Fees Sec. 5300(a)(3) ...... Authorization of appropriations; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5300(a)(10) ...... Report to Congress on fee collections; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5301 ...... Authorizes Secretary to enter into challenge cost-share agreements; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5302 ...... Cost recovery for damage to National Park resources; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 5305(b)(2) second sentence ...... Reporting requirement to Congress; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Subtitle E—Water Projects Sec. 5410 second sentence of subsection (2) ...... Hetch Hetchy dam authorizations for Yosemite operations; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Subtitle F—Oil and Gas Royalties 5509 ...... Royalty in Kind; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 5510 ...... Royalty Simplification Audit and Reporting Requirements; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 5512 ...... Delegation to States; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Subtitle H—Mining 5709 ...... Uses and Objectives of Mine Reclamation Fund; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Subtitle K—Radio and Television Communication Site Fees Sec. 5920 ...... CBO scores no impact from communicatoin fees; Byrd rule (b)(1)(A): Produces no change in outlays or revenues. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15833 EXTRANEOUS PROVISIONS—SENATE BILL—Continued

Provision Comments/Violation

ENVIRONMENT AND PUBLIC WORKS Sec. 6003(a) ...... Findings section regarding highway minimum allocation program. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. FINANCE—MEDICARE Draft from October 23, 1995 Committee has not met its 1 or 5 year instruction. Medicare Choice Sec. 1895A (c) (2) (B) ...... ‘‘the Secretary shall submit to the Congress recommendations on expanding the definition of ‘medicare choice eligible individual’ ’’ Byrd rule (b)(1)(A): Produces no change in out- lays or revenues. Sec. 1895A (b) (1) (B) (iii) ...... MSAs—costs $$ relative to the savings of Medicare Choice. Separable. Probably a violation. Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 1895M (d) (3) ...... ‘‘The Secretary shall conduct an analysis of the measurable input cost differences across payment areas’’and ‘‘The Secretary shall also determine the degree to which medicare beneficiaries have access’’and ‘‘the Secretary shall submit a report’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 1895M (f) ...... Demonstration project on market-based reimbursement and competitive pricing. Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instruc- tions. Sec. 1895R (c) ...... Report on the temporary certification of coordinated care plans. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 1895R (f) ...... Partial capitation demonstration Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Part A provisions Sec. 7012 (c) ...... Development [of] National Prospective Payment Rates for Current Non-PPS Hospitals Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7032 ...... Incentive payments to SNFs. Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7037 ...... Report by Prospective Payment Assessment Commission. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Part B provisions Sec. 7043 (c) ...... Study & report of physician fee schedule. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7044 (c) ...... Upgraded Durable Medical Equipment. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7050 ...... Physician Supervision of Nurse Anesthetists. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Part A & B provisions Sec. 7056 ...... Treatment of assisted suicide. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7057 (a) ...... Nothing in this Act shall be construed to change the status under title XVIII of ... (Indian Health Centers). Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7057 (b) ...... Conforming amendment to change the name/organization for Christian Scientists. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7061 (a) ...... (C) Share of Savings—Bonus payments to home health agencies. Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7061 (a) ...... (f) Report by Prospective Payment Assessment Commission. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Rural Areas Sec. 7071 ...... Medicare-dependent small rural hospitals: increases OL by $0.2B over 7 years Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7072 ...... Medicare rural hospital flexibility: increases OL by $0.2B over 7 years Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7073 ...... Rural emergency access care hospitals: increases OL by $0.2B over 7 years Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7074 ...... Payments to physicians in shortage areas: increases OL by $0.4B over 7 years Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7075 ...... Direct fee schedule payments to physician assistants and nurse practitioners: increases OL by $0.3B over 7 years Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7076 ...... Demonstration projects to promote telemedicine. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7077 ...... Prospective Payment Assessment Commission report on updates for urban Medicare-dependent hospitals. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Health Care Fraud & Abuse Sec. 7103 ...... Health Care Fraud and Abuse Guidelines. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7112 ...... Minimum exclusion period for individuals. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7116 ...... Clarification of and additions to exceptions to anti-kickback penalties. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7121 ...... Establishment of the health care fraud and abuse data collection program. Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7143 ...... Injunctive relief relating to federal health care offenses. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7144 ...... Grand jury disclosure. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7148 ...... Laundering of monetary instruments. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7149 ...... Authorized investigative demand procedures. Is this a necessary term or condition? Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Other provisions for trust fund solvency Sec. 7173 ...... Transfers of certain part B savings to HI trust fund. (i.e., medicare lockbox) Byrd rule (b)(1)(A): Produces no change in outlays or revenues. FINANCE—MEDICAID Draft from October 23, 1995 Committee has not met its 1 or 5 year instruction. The provisions listed here as Sec. 2102 through Sec. 2137 are new sections added by Sec. 7191(a) of the reconciliation bill. Sec. 2102 (b)(7) ...... Plan must include ‘‘a description of the average amount paid per discharge’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2105 (b) ...... Each State with a medicaid plan shall establish and maintain an advisory committee (which shall aid in) the development, revision, and monitoring the performance of the med- icaid plan’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2106 ...... Secretary shall create a Medicaid Task Force. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2111 (c) ...... ‘‘The medicaid plan shall provide medical assistance for immunizations.’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2111 (d) ...... ‘‘The medicaid plan shall provide prepregnancy planning services and supplies’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2111 (e) ...... ‘‘A medicaid plan may not deny or exclude coverage on the basis of a pre-existing condition’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2111 (f) ...... ‘‘A medicaid plan shall not impose treatment limits on mental illness services’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2116 ...... Causes of action Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2117 ...... Spousal impoverishment mandate. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2122 (g) ...... Super-block grant. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2123 (g), (h) ...... Limitations on use of funds. ‘‘No payment shall be made to a State under this part for expenditures for items’’(g) abortions; (h) assisted suicide. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 2137 ...... Nursing home standards. ‘‘Each medicaid plan shall provide for the establishment and maintenance of procedures for nursing facilities which furnish services under the plan.’’— mandate Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7192 (a) (1) ...... ‘‘No payment shall be made to a State under this part for medical assistance for medical assistance for covered outpatient drugs unless the manufacturer of the drug’’ ‘‘No pay- ment shall be made under this part to a State that requires manufacturer rebates’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7192 (a) (2) ...... ‘‘in order for payment to be made to a State under part C for medical assistance for covered outpatient drugs of a manufacturer, the manufacturer must’’ Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7194 ...... Authorizes new demonstration project. No appropriation. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7195 ...... CBO Report requiring analysis of effect of block grant on health insurance status. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. FINANCE—NON-HEALTH Sec 7201: 401 ...... Purpose of Block Grant—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(a)(2)(C) ...... 3 month notification to State with Indian tribes exercising funding option—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(a)(2)(D) (i) and (ii) ...... Additional payments for EA where State plan is modified in 1994. Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 403(a)(2)(D) (iii) ...... Directed Scoring Post 2000—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(a)(3), (4)(B) ...... Supplemental Grant Fund—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 403(b)(1) ...... Limitation on admin expenditures—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(b)(2) ...... Authority to treat interstate immigrants under rules of former states —Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(b)(4) ...... Authority to operate employment placement program with grant—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(b)(5) ...... Authority to 30% transfer grant to Child Care Block Grant—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(f) ...... Job Placement Performance Set Aside—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 403(h) ...... Contingency Grant Fund—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 404(d) ...... Required Penalties against Individuals—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 404(e) ...... Non Displacement in Work Activities—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 404(f) ...... Sense of Congress on use of Job training fund—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 404(g) ...... Encouragement to Deliver Child Care—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 405 ...... Limitations and Requirements—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 406(a) ...... Congressional Findings—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 406(b) ...... State option to deny assistance to out of wedlock births to minor children: Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 406(c) ...... State option to deny assistance for additional births: Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 406(d)(1) and (2) ...... Requirement that teenage parents live at home or in supervised arrangements: Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 406(d)(3) ...... Grants to States to provide supervised living—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 406(e) ...... Requirement that teenage parents attend high school—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 406(f) ...... Grant to States that reduce out-of-wedlock birthrate—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 406(g) ...... Denial of assistance by the State not limited to these requirements—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 409(i) ...... Report to Congress on Automation—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 409(j) ...... Report to Congress on participation rates compliance—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 410 ...... Research, Evaluations, State Rankings—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 410(h) ...... Direct Spending for additional evaluations—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 411 ...... Census Bureau Study—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 412(b) ...... Hold harmless for cost neutrality from waiver conditions—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 413 ...... State and County Run Demonstrations—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 414(a) ...... Purpose of provision—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 415 ...... Assistant Secretary for Family Support—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 418 ...... High Performance Bonus Funds—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. S 15834 CONGRESSIONAL RECORD — SENATE October 26, 1995 EXTRANEOUS PROVISIONS—SENATE BILL—Continued

Provision Comments/Violation

419(b) ...... Additional Child Care Funds—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. 420 ...... Single state agency in charge of child care—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. 421 ...... Tax Refund offset to states for overpayments—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7202 ...... Services Provided by Charitable/Religious, or Private Organizations Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7203 ...... No funds provided to institutions may be used for sectarian worship—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7204 ...... Census data on grandparents as primary caregiver—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7205 ...... Study of Effect of Welfare Reform on Grandparents as Caregivers—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7206 ...... Development of new Social Security Card Authorization—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7207 ...... Funds used by organizations can not support or oppose publicly without disclosure of receipt of funds. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7208 ...... Modification of JOLI program—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7209 ...... Demo project for School Utilization—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7211 ...... Parental Responsibility Contracts—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7212 ...... Federal funds must be spent in accordance with laws and procedures applicable to state revenues—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7216 ...... Secretary of HHS must submit list of technical amendments—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7251(e) ...... Supplemental Funding for Substance Abuse—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7263 ...... Additional requirements for representative payees—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7271 ...... Annual Report to Congress on SSI—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7272 ...... Improvements to Disability Evaluation—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7273 ...... Study of the Disability Determination Process—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7274 ...... Study by GAO on impact of Amendments—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7281 to 7287 ...... National Commission on Future of Disability—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7291 ...... Repeal of Maintenance of Effort for State SSI Supplement—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7302 ...... Distribute child support collections to families off welfare first—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7303 ...... Rights to notifications and hearings for those applying for services or a party to these actions—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7344(b) ...... Extension of enhanced match and new funds matching funds for ADP development—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation in- structions. Sec. 7345 ...... Training and technical assistance, child support demonstrations—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7346 ...... Changes in the annual report to Congress—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7351 ...... National Child Support Guidelines Commission—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7354 ...... Non-liability for depository institutions providing financial records to child support agencies—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7375(a): 454(C)(b) and (c) ...... Permissive fees and excess costs of enforcement. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7375(b) ...... Sense of Senate on how to collect fees—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7377 ...... Sense of Senate on inability of non-custodial parents to pay child support—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7381 ...... Grants to State for Access and Visitation Programs—Byrd rule (b)(1)(B): Increases the deficit and committee fails to meet its reconciliation instructions. Sec. 7406 ...... Information Reporting, requiring states to provide names to INS—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7411 ...... Reductions in Federal Government Positions—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7412 ...... 75% reduction in Federal positions dealing with AFDC—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7413 ...... Sense of Senate that reductions should come from Washington DC office—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7422 ...... Establish National Goals for teenage pregnancy prevention—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7442 ...... Sense of Senate on legislative accountability for unfunded mandates—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7443 ...... Sense of Senate Regarding Enforcement of Statutory Rape—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7444 ...... No prohibition on sanctioning an individual when testing positive for controlled substances—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7445 ...... Abstinence Education set aside—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 7481 ...... Sense of Senate on Cost of Living Adjustments—Byrd rule (b)(1)(A): Produces no change in outlays or revenues. FINANCE—REVENUES Sec. 12401(f) ...... Requires the Secretary of Labor to implement a ‘‘Business Awareness Program’’ to educate and encourage business to benefit from the Work Opportunity Tax Credit. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 6039F(d) ...... Beginning with the phrase, ‘‘notwithstanding any other provision of law...’’ requires the Secretary of Treasury to publish in the Federal Register the names of expatriates. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec.12874(c) ...... Requires the trustees of the Combined Fund (coal industry retirees) to provide documents to contributors if requested. Byrd rule (b)(1)(A): Produces no change in outlays or reve- nues. Sec. 12705 ...... Requires notices to charitable beneficiaries of charitable remainder trusts that a remainder has been created. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 12705 ...... Provides exceptions to the notification requirements (to charitable beneficiaries of the creation of or continuation of charitable remainders) if the Secretary determines it is not necessary for efficient administration of tax law. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 12878 ...... Section 2878(e) authorizes the Secretary of the Treasury to prescribe regulations regarding Modified guaranteed contracts. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec.12904(a) (12)(D)Requiring written notice to each employee eligible to participate in certain qualified cash or deferred arrangements and matching con- tributions. Byrd rule (b)(1)(A): Produces no change in outlays or revenues.. GOVERNMENTAL AFFAIRS There are no extraneous provisions in this title. JUDICIARY There are no extraneous provisions in this title. LABOR AND HUMAN RESOURCES Sec. 10002(c)(2)(C) ...... Indirect costs for direct loans may not exceed 50% of the section 458 funds and they may not be used for promotion the direct loan program. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 10002(g) p. 1422 lines 5-8 ...... Sense of the Senate statement that the .85 fee to institutions should not be passed on to students. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 10003(d) & (e) ...... Permits the development, and distribution an use of an electronic version of the free federal common application for by guaranty agencies and lenders. Byrd rule (b)(1)(A): Pro- duces no change in outlays or revenues. Sec. 10005 (g) ...... Permits guarantors to use the funds from the federal payment of the Administrative Cost Allowance to pay for any means of monitoring the enrollment and repayment status of borrowers. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 10005 (h) ...... Guaranty agencies are prohibited from using federal reserves for marketing, advertising, or promotion of the guaranteed loan program. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. Sec. 10007(a)(4)(A)(ii) ...... Provision regarding Sallie Mae and full faith and credit of the United States. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. VETERANS’ AFFAIRS Veterans’ Affairs Committee reconciliation language contains no Byrd Rule Violation Note: Prepared by SBC majority staff, October 25, 1995 (12:55 pm) and by the Staff of the Committee on the Budget, pursuant to Section 313(c) requiring a list of items considered to be extraneous under subsections (b)(1)(A), (b)(1)(B), and (b)(1)(E). The inclusion or exclusion of a provision shall not constitute a determination of extraneousness by the Presiding Officer of the Senate.

Mr. EXON. Mr. President, the chair- neous provisions and ask unanimous to give Senators the maximum amount man of the Budget Committee was kind consent that it be printed in the of notice as to which provisions are enough to discuss with me in advance RECORD. under review for that purpose. the list that he just submitted for the At the close of debate on the bill, There being no objection, the list was RECORD. I, in turn, have shared with after Senators and the Parliamentar- ordered to be printed in the RECORD, as him my view of which items in the bill ian have had a full, fair chance to re- violate the Byrd rule against extra- view these lists, I intend to raise an follows: neous matter in reconciliation. omnibus point of order under the Byrd LIST OF BYRD RULE VIOLATIONS TO THE BAL- There is a great deal of agreement on rule against a large number of provi- ANCED BUDGET RECONCILIATION ACT OF 1995 these two lists, but some differences sions that we have determined to be ex- (Prepared by the Democratic Staff of the persist. To make the RECORD more traneous. I ask unanimous consent Senate Budget Committee, October 25, 1995) complete, I submit my list of extra- that my list be printed in the RECORD October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15835 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and Section Subject Budget Act Violation Explanation

Title I COMMITTEE: AGRICULTURE Compliance: 1,5 yes; 7 no 1113(b)(3)(B) ...... Creates a temporary quota for seed peanuts ...... 313(b)(1)(A) ...... No budgetary impact. 1111(b) ...... Terminates Tree Assistance program ...... 313(b)(1)(A) ...... No budgetary impact. 1113(c) ...... Provides for Sale, Lease or Transfer of Peanut quotas ...... 313(b)(1)(d) ...... Savings are incidental. 1113(e)(2) ...... Makes available additional peanuts if market price exceeds 120% loan rate ...... 313(b)(1)(A) ...... No budgetary impact. 1115 ...... Savings adjustment to prorate payments to farmers if deficit targets aren’t met ...... 313(b)(1)(A) ...... No budgetary impact. 1116 ...... Sense of the Senate regarding Ethanol ...... 313(b)(1)(A) ...... No budgetary impact. 1201 ...... Establishes Environmental Incentives Program ...... Ag title out of compliance—spends money.

BYRD RULE VIOLATIONS, RECONCILIATION 1996

Subtitle and Section Subject Budget Act Violation Explanation

TITLE: II COMMITTEE: ARMED SERVICES Compliance 1st Year: No; 5-Years: Yes; 7-Years: Yes 7421a.(a) ...... Sale Required. The sale of the Elk Hills, CA site in 313(b)(1)(E) ...... There is a loss of offsetting receipts in the outyears that is not offset with the title. Specifically, CBO the NPR. estimates that selling the NPR will result in a loss of offsetting receipts in years 2003–05 of $1.02 billion. Thus, the provision produces revenue losses in years not covered by the budget resolution. 7421a.(e) ...... Treatment of State of California. Reservation of 7 313(b)(1)(A) ...... This provision amounts to California’s price for waiving its claim to the land within the NPR. This 7 percent of the sale of the Elk Hills site in the percent set-aside does not score because the spending is subject to appropriations action. NPR to settle claims with the State of California. 7421.a.(f) ...... Maintaining Elk Hlls Unit Production. Sets require- 313(b)(1)(A) ...... This provision provides no change in revenue or outlays and is thus extraneous. ments for Elk Hills to maintain production till sale is complete. 7421a.(j)(3) ...... Notice to Congress. Establishes a sense of the Con- 313(b)(1)(A) ...... As a sense of the Senate, this provision produces no changes in revenue or outlays and is thus extra- gress regarding the Secretary of the Energy’s ap- neous. proval of the Elk Hills site in the NPR. 7421a.(k) ...... Joint Resolution of Approval. Provides fast track au- 313(b)(1)(A) ...... This provision does not produce any change in revenue or outlays and is thus extraneous. thority for congressional approval of the sale of the Elk Hills site in the NPR. 7421.a(1) ...... Noncompliance with Deadlines. Requires the Sec- 313(b)(1)(A) ...... This provision produces no change in revenue or outlays and is thus extraneous. retary of Energy to notify Congress if the sale is delayed. 7421.a(m) ...... Oversight. Requires the Comptroller General to mon- 313(b)(1)(A) ...... This provision produces no change in revenue or outlays and is thus extraneous. itor the sale. 7421.b.(a) ...... Sale Required. The sale of reserves in the NPR 313(b)(1)(E) ...... There is a loss of offsetting receipts in the outyears beyond 2002 that is not offset within the title. other than that at Elk Hills, CA. Thus, the provision produces revenue losses in years beyond the years covered in the budget resolu- tion. 7421.b.(b) ...... Administration of Sale. Applies subsections c, d, h, 313(b)(1)(A) ...... This provision produces no change in revenue or outlays and is thus extraneous. i, j, k, l, m, and n or section 7421.a. of this title to the sale of sites other than Elk Hills. 7421.b.(b)(C) ...... Joint Resolution of Approval. Provides fast track au- 313(b)(1)(A) ...... This provision produces no change in revenue or outlays and is thus extraneous. thority for congressional consideration of the sale.

EXTRANEOUS PROVISIONS, RECONCILIATION 1995

Subtitle and Section Subject Budget Act Violation Explanation

TITLE III COMMITTEE: BANKING, HOUSING, AND URBAN AFFAIRS Compliance: Yes 3002 ...... Deposit Insurance Study, Requires Secretary of the 313(b)(1)(A) ...... Instituting a study does not have an impact on the deficit. (Not in cost estimate) Treasury to conduct a study on converting the FDIC into a self-funded deposit insurance system. 3001(d) ...... Merger of BIF and SAIF ...... 313(b)(1)(A) ...... Has no impact on the deficit. TITLE IV COMMITTEE: COMMERCE, SCIENCE, AND TRANSPORTATION Compliance: Yes 4002 ...... Annual Regulatory Fees ...... 313(b)(1)(A) ...... Authorizing regulatory fees has no impact on the deficit until after appropriations. (not in cost esti- mate) 4001(a)(C)(i)(ii) ...... Spectrum language p. 207, lines 2–23 ...... 313(b)(1)(A) ...... This language has no impact on spending. 4021 ...... Limits on Coast Guard User Fees ...... 313(b)(1)(E) ...... Provision does not sunset and causes outlays beyond years covered by Reconciliation bill. 4022(a) ...... Oil Spill Recovery Institute ...... 313(b)(1)(E) ...... Provision does not sunset and causes outlays beyond years covered by Reconciliation bill. 4022(A) ...... Use of Section 1012 in Alaska ...... 313(b)(1)(E) ...... Provision does not sunset and causes outlays beyond years covered by Reconciliation bill. 4033 ...... Disaster Funding for Railroads ...... 313(b)(1)(A) ...... This section clarifies procedures that allow the Secretary of Transportation to use LRFA for railroad dis- aster assistance. The section has no impact on the deficit. (not in cost estimate) 4034 ...... Grade-crossing eligibility ...... 313(b)(1)(A) ...... This section expands the list of activities eligible for LRFA and has no impact on the deficit. (not in cost estimate) TITLE V COMMITTEE: ENERGY AND NATURAL RESOURCES Compliance in 1, 5 and 7 Subtitle A, Uranium Enrichment Cor- poration: 5002 ...... Statement of Purpose ...... (b)(1)(A) ...... Non-budgetary. 5004(d)(2) & (3) ...... Proceeds ...... (b)(1)(A) ...... Non-budgetary. 5013(a)(1)(B) ...... Low-Level Waste ...... (b)(1)(A) ...... Non-budgetary, requirement that DOE accept low-level waste from any operator of an enrichment facil- ity. 5013(c) ...... Low-Level Waste ...... (b)(1)(A) ...... Non-budgetary, waiver of liability for State or Interstate Compact’s requirement to accept low level nu- clear waste from any enrichment facility. Subtitle B, DOI: 5100 ...... California Land Directed Sale ...... Byrd 313(b)(1)(D) ...... Savings are merely incidental to the transfer of Federal land (Ward Valley) to the State of California for the purpose of creating a low-level radioactive waste site. Subtitle C, ANWR: 5202 ...... Purpose and Policy ...... 313(b)(1)(D) ...... Non-budgetary. 5206 ...... Adequacy of 1987 EIS ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Overrides the impact assessment requirements of the National Envi- ronmental Policy Act (NEPA) by declaring that the 1987 environmental impact statement satisfies the requirements of NEPA. 5702(d), second sentence ...... Special Areas ...... 313(b)(1)(A) ...... Non-budgetary, reporting requirements to Congress. 5212 ...... Expedited Judicial Review ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Limits complaints seeking judicial review to 90 days after date of any regulation. 5213 ...... Rights of way Requirements ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Overrides existing law (ANILCA’s title XI) which delineates procedures for transportation rights of way within the Alaska refuges, including the ANWR. 5215(b) ...... New Revenues ...... 313(b)(1)(A) ...... Non-budgetary, reporting requirements. Subtitle D, Park Entrance Fees: 5300(a)(3) ...... Fees ...... 313(b)(1)(A) ...... Non-budgetary, authorization of appropriations. 5300(a)(10) ...... Fees ...... 313(b)(1)(A) ...... Non-budgetary, report to Congress on fee collections. 5301 ...... Challenge Cost-Share Agreements ...... 313(b)(1)(A) ...... Non-budgetary, authorizes Secretary to enter into challenge cost-share agreements. 5302 ...... Cost Recovery ...... 313(B)(1)(A) ...... Non-budgetary, cost recovery for damage to National Parks resources. 5305(b)(2) ...... Allocation and Use of Fees ...... 313(b)(1)(A) ...... Non-Budgetary, reporting requirements to Congress. (second sentence) S 15836 CONGRESSIONAL RECORD — SENATE October 26, 1995 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and Section Subject Budget Act Violation Explanation

Subtitle E, Water Projects: 5510(2) ...... Hetch Hetchy Dam ...... 313(b)(1)(A) ...... Extraneous, no budget impact. Sets up fund subject to appropriations. Subtitle F, Federal Oil and Gas Roy- alties: 5509 ...... Royalty In Kind ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Clarifies the Secretary’s option to take royalty of oil and gas in kind. 5510 ...... Royalty Simplification ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Requires Secretary to streamline royalty management requirements, and submit a report to Congress. 5512 ...... Delegation to States ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Delegates certain auditing responsibilities to states. 5513 ...... Performance Standard ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Changes the standards for assessing civil penalties. Subtite H, Mining: 5709 ...... Use and Objectives of State Funds ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Stipulates how monies to states can be spent. Part K: 5920 ...... Radio and TV Site Communications Fees ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. Enactment of this section would have no impact on receipts because the baseline already assumes that the BLM and the Forest Service would raise fees by this level be- ginning in 1996. TITLE VI COMMITTEE: ENVIRONMENT & PUBLIC WORKS Compliance in 5 and 7, not in 1 Section 6002(c) ...... Rescission of appropriated demonstration projects .. 313(b)(1)(C) ...... These demonstration projects are not within EPW’s jurisdiction. TITLE VII—SPENDING COMMITTEE: FINANCE Compliance: No in 1996 and 1996–2000 Chap. 1 Medicare Choice Plans 1895A(b)(1)(B) ...... Medical savings accounts ...... 313(b)(1)(B) ...... Creates Medical Savings Accounts. Increases the deficit by $3.5 billion over 7 years. 1895A(c)(2)(B) ...... Special rule for end-stage renal disease ...... 313(b)(1)(A) ...... Produces no change in outlays or revenues. 1895M(d)(3) ...... Report to the Congress on Medicare Choice ...... 313(b)(1)(A) ...... Produces no change in outlays or revenues. 1895M(f) ...... Demonstration project on market-based reimburse- 313(b)(1)(A) ...... Produces no change in outlays or revenues. ment and competitive pricing. 1895R(c) ...... Report on the temporary certification of coordinated 313(b)(1)(A) ...... Produces no change in outlays or revenues. care plans. 1895R(f) ...... Partial capitation demonstration ...... 313(b)(1)(A) ...... Produces no change in outlays or revenues. Chap. 2: General provisions related to Part A 7012(c) ...... Development National Prospective Payment Rates 313(b)(1)(A) ...... Requires Secretary of HHS to develop a proposal and recommendations. Produces no change in outlays for Current Non-PPS Hospitals. or revenues. 7013(c) ...... Hospital-specific adjustment for capital-related 313(b)(1)(D) ...... Redistributes payments among hospitals. Merely incidental to deficit reduction. costs. 7013(d) ...... Revisions of exceptions process under PPS ...... 313(b)(1)(D) ...... Changes exceptions process. Merely incidental to deficit reduction. 7036 ...... Medical review process ...... 313(b)(1)(A) ...... Requires HHS to establish a medical review process to examine effects of provisions on extended care services. According to CBO, produces no change in outlays or revenues. 7037 ...... Report by Prospective Payment Commission ...... 313(b)(1)(A) ...... Requires ProPAC to submit a report on SNF services. Produces no change in outlays or revenues. Chap. 3: Provisions Relating to Part B 7043(c) ...... Payments for clinical lab diagnosis services study 313(b)(1)(A) ...... Requires HHS to prepare study of fee schedule for clinical labs. Produces no change in outlays or reve- and report. nues. 7044(c) ...... Upgraded Durable Medical Equipment ...... 313(b)(1)(A) ...... Produces no change in outlays or revenues. 7050 ...... Physician supervision of nurse anesthetists ...... 313(b)(1)(A) ...... Requires HHS to revise regulations on anesthesia services. Produces no change in outlays or revenues. Chap. 4: Provisions Relating to A and B 7056 ...... Treatment of Assisted Suicide ...... 313(b)(1)(A) ...... Prohibits payments for treatment of assisted suicide. Produces no change in outlays or revenues. 7057 ...... Administrative provisions ...... 313(b)(1)(A) ...... Codifies current status of Indian health facilities and Christian Science Providers as Federally qualified health centers. Produces no change in outlays or revenues. 7061(a) ...... Report to ProPAC ...... 313(b)(1)(A) ...... Requires PROPAC to submit an annual report to Congress on Home Health payment methodology. Pro- duces no change in outlays or revenues. Chap. 5: Rural Areas 7071 ...... Medicare-dependent, small, rural hospital payment 313(b)(1)(B) ...... Re-institutes Medicare Dependent Hospital program. Costs $0.4 billion over 7-years. extensions. 7072 ...... Medicare rural hospital flexibility program ...... 313(b)(1)(B) ...... Designates critical access hospitals in rural areas. Costs $0.2 billion over 7-years. 7073 ...... Rural Emergency Access Care hospitals ...... 313(b)(1)(B) ...... Establishes new program for REACH. Costs $0.2 billion over 7-years. 7074 ...... Additional payments for physicians Services fur- 313(b)(1)(B) ...... Increases payments to rural, primary care physicians. Costs $0.4 billion over 7-years. nished in shortage areas. 7075 ...... Payments to physician assistants and nurse practi- 313(b)(1)(B) ...... Pays physician assistants and nurse practitioners 85% for outpatient settings. Costs $0.3 billion over tioners. 7. 7076 ...... Demonstration projects for telemedicine ...... 313(b)(1)(A) ...... Authorization for demonstration project grants for Telemedicine. Produces no change in outlays or reve- nues. 7077 ...... ProPAC recommendations on urban Medicare de- 313(b)(1)(A) ...... Directs ProPAC to make recommendations on hospitals that have a high number of Medicare patients pendent hospitals. and patient days. Produces no change in outlays or revenues. Chap. 6: Health Care Fraud and Abuse Prevention 7112 ...... Establishment of minimum period of exclusion for 313(b)(1)(A) ...... Codifies current practice. Produces no change in outlays or revenues. certain individuals. 7116 ...... Anti-kickback penalties ...... 313(b)(1)(A) ...... Directs Secretary to study benefits of volume and combination benefits under Medicare Produces no change in outlays or revenues. 7121 ...... Data Collection Program ...... 313(b)(1)(B) ...... Requires HHS to establish a national fraud and abuse data collection program. Provision increases the deficit. Chap. 7: Other Provisions for Trust Fund Solvency 7171 ...... Eligibility Age for Medicare ...... 313(b)(1)(A) ...... Raises eligibility age of Medicare from 65 to 67. Produces no change in outlays or revenues during 7- year period. 7173 ...... Transfers of B to Part A ...... 313(b)(1)(A) ...... Transfers premium and deductible savings to Part-A trust fund. Produces no change in outlays or reve- nues. 7175 ...... Budget Expenditure Limitation Tool (BELT) ...... 313(b)(1)(A) ...... Produces no change in outlays or revenues. TITLE VI COMMITTEE: FINANCE—MEDICAID Compliance: Not in 1, not in 5, in compliance in 7 Subtitle B, 7191: 2100(a) ...... Purpose ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Statement of purpose. 2101 ...... Discription of Strategic Objectives and Performance 313(b)(1)(A) ...... Extraneous, no budgetary impact. Lays out requirements for state plans including: (1) general descrip- Goals. tion; (2) objectives and performance goals relating to childhood immunizations, infant mortality and standards of care; (3) factors states might consider in specifying objectives and goals; (4) perform- ance measures. 2102(a) ...... Annual reports ...... 313(b)(1)(A) ...... Extraneous, no budgetary impact. States are required to submit reports which include summaries of: ex- penditures and beneficiaries; utilizations; achievement of performance goals; program evaluations, fraud and abuse and quality control activities; administrative roles, and responsibilities, including organizational charts, costs, interstate compacts, and citations to state statutes; and inpatient hos- pital payments. 2102(a) ...... Special Rules ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Defines general categories of beneficiaries for use in State plans and reports. 2103 ...... Periodic, Independent Evaluations ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires states to have an independent entity evaluate its Medicaid plan every three years. 2104 ...... Description of Process for Medicaid Plan Develop- 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires state plans to include a description of the process under ment. which the plan is to be developed and implemented. 2105(a) ...... Consultation in Medicaid Plan Development ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires states to give public notice of, allow public inspection of, and consider public comments on state plans before submission. Does not apply to revisions. Speci- fies what is to be included in the notice, how the amendments may be described, where the notice may be published. 2105(b) ...... Advisory Committee ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires states to establish and maintain at least 1 advisory com- mittee. Specifies issues on which states must consult with the advisory committee, and the geo- graphic diversity of the advisory committee. 2106 ...... Medicaid Task Force ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. THe Secretary is to establish and provide administrative support for a Medicaid Task Force; membership is specified. An advisory group is to be established for the Task Force; the membership of the advisory group is specified. 2111(a) ...... Eligibility and Benefits ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. State plans must serve all political subdivisions, provide for making medical assistance available to any pregnant woman or child under the age of 12 whose family in- come does not exceed 100 percent of poverty and to any individual with a disability. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15837 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and Section Subject Budget Act Violation Explanation

2111(b)(1) ...... Elements Relating to Eligibility ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Plans are required to describe: limitations on eligibility; eligibility standards; methods of establishing and continuing eligibility and enrollment; the eligibility standards that protect the income and resources of a married individual who is living in the community and whose spouse is residing in an institution in order to prevent the impoverishment of a community spouse. 2111(b)(2–6) ...... Description of General Elements ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Plans are required to describe: the amount, duration and scope of health care services and items covered including differences among population groups; delivery method; under what circumstance fee-for-service benefits are furnished; cost-sharing if any; and uti- lization incentives. 2111(b)(7) ...... Support for Certain Hospitals ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Sets forth criteria for hospitals that are to be eligible for dispropor- tionate share hospital (DSH) payments. 2111(c) ...... Immunizations for Children ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires plans to provide medical assistance for immunizations for children eligible for medical assistance in accordance with a schedule for immunizations established by the Health Department of the State. 2111(d) ...... Family Planning Services ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States shall provide prepregnancy planning services and supplies as specified by State. 2111(e) ...... Preexisting Condition Exclusions ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Prohibits States from denying coverage to eligible individuals on the basis of a preexisting condition. If a State allows a contractor to exclude coverage on the basis of a preexisting condition, the State must provide for such coverage through its Medicaid plan. 2111(f) ...... Mental Health Services ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. A Medicaid plan shall not impose treatment limits or financial re- quirements on mental illness services which are not imposed on services for other illnesses or dis- eases. The plan may require pre-admission screening, prior authorization of services, or other mecha- nisms limiting coverage of mental illness services to services that are medically necessary. 2112 ...... Set-asides For Population Groups ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. State plans are required to provide 85 percent of amount spent in FY 1995 on low-income families; low-income elderly; and low-income disabled people. Excludes assist- ance provided to certain aliens. Includes DSH. 2112(d) ...... Use of Residual Funds ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Any funds not required to be expended under the set-asides may only be expended for: medical assistance for eligible low-income individuals, medically-related services, and administration. 2113 ...... Premiums and Cost-sharing ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States may not impose cost-sharing on pregnant women and children under 100 percent of poverty for primary or preventive care under the Medicaid plan, unless the charge is nominal. States may impose cost-sharing to discourage the inappropriate use of emergency medical services. State may impose premiums and cost-sharing differentially. 2114 ...... Description of Process for Developing Capitation 313(b)(1)(A) ...... Extraneous; no budgetary impact. If a state plans to contract with a capitated health care organization, Payment Rates. the plan must contain descriptions of the actuarial science that will be used to analyze health care expenditures and other data, the general qualifications required by the state, how data will be dis- seminated to contractors, and how enrollees will be identified. States must provide public notice about capitation rates unless the information is designated as proprietary and seek public comment. This section contains definitions. 2115 ...... Construction ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Outlines state flexibility in benefits, provider payments, geographical coverage and selection of providers. Says that states do not have any specific responsibility to bene- ficiaries or providers for particular services or payments or for consistent benefits and payments throughout a state. Provides flexibility for contracting with managed care providers or case manage- ment services. 2116 ...... Causes of Action ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States that no applicants, beneficiaries, providers or health care plans has a right to sue if a State fails to comply with this law or with the provisions of a Medicaid plan. Provides that no person shall be excluded from participation in any program funded under this title on the ground of sex or religion. Outlines procedures when State is found to discriminate. States that nothing in this subsection may be construed as affecting any actions brought under State law. 2117 ...... Treatment of Income and Resources ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Spousal impoverishment. Includes definitions. 2121 ...... Allotment of Funds Among States ...... 313(b)(1)(B) ...... Extraneous; costs. This section contains the pool of available funds. The section outlines procedures for determining a state’s allotment. It provides for allowing states to draw down future allotments or carry over 1996 funds. It sets out procedures for notifying state of their allotments and calls for a GAO review of the allotments. This section also contains definitions. 2122 ...... Payments to States ...... 313(b)(1)(A) ...... Sets forth payments to States for medical assistance, medically related services, and administrative ex- penses, in relation to the state’s Federal medical assistance percentage (FMAP), which are defined. Makes provisions for overpayments. Contains restraints on provider-related donations and health care-related taxes; includes a waiver for broad-based health care taxes not related to payments. Contains definitions. Includes treatment of the Territories and Indian Health programs. 2122(g) ...... Authority to Use Portion of Payment for Other Pur- 313(b)(1)(A) ...... Extraneous; no budgetary impact. Superwaiver. Allows state to use up to 30 percent of the grant during poses. a fiscal year to carry out a State program pursuant to a waiver granted under Section 1115 involv- ing the new Temp. Assistance block grant, MCH block grants, SSI, Medicare, Title XX (SSBG) and the Food Stamp program. States required to approve or disapprove waiver within 90 days and State are to encourage waivers. 2123 ...... Limitation on Use of Funds; Disallowance ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. No payments are to be used for providers excluded from participation under other programs including MCH block grant, Medicare and Title XX. Defines treatment of third party liability. Medicaid is the secondary payer to any other Federal operated or financed health care program. No payments shall be made to a state for medical assistance furnished to an alien who is not lawfully admitted for permanent residence, except for emergency services, if the alien otherwise meets the eligibility requirements for Medicaid and are not related to organ transplants. 2123(g) ...... Limitation on Payment for Abortions ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. No funds are to be made to a State for any amount expended to pay for any abortion or to assist in the purchase in whole or in part of health benefit coverage that in- cludes coverage or abortion. Does not apply in the case of rape or incest or if the woman’s life is in danger. 2123(h) ...... Treatment of Assisted Suicide ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. No payments made to pay for or assist in the purchase in whole or in part of health benefit coverage that includes payment for any drug, biological product or service which was furnished for the purpose of causing, or assisting in causing, the death, suicide, eutha- nasia, or mercy killing of a person. 2123(i) ...... Unauthorized Use of Funds ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. No payments shall be used to purchase or improve land or construct or remodel buildings, to pay room and board except when provided as part of a temporary, respite care, to provide educational services without regard to income, or to provide vocational rehabilitation or other employment and training services available through other programs. 2124 ...... Grant Program for Community Health Centers and 313(b)(1)(A) ...... Extraneous; no budgetary impact. The Secretary is to set aside 1 percent of the pool amount to be used Rural Health Clinics. for grants for primary and preventive health care services at rural health clinics and Federal quali- fied health centers. 2131 ...... Use of Audits to Achieve Fiscal Integrity ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires annual audits of State expenditures. Requires states to adopt and maintain fiscal controls, accounting procedures, and data processing safeguards which are consistent with generally accepted accounting principles. 2132 ...... Fraud Prevention Program ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to have programs to detect and prevent fraud and abuse. Includes program requirements. Requires States to report information about providers ex- cluded from program to the Secretary and State medical licensing board. 2133 ...... Information Concerning Sanctions Taken by State 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to have reporting systems about proceedings Licensing Authorities against Health Care Practi- against providers. tioners and Providers. 2134 ...... Medicaid Fraud Control Units ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to have Medicaid fraud units. Organization of unit is specified. It is to provide for collection of overpayments. 2135 ...... Recoveries from Third Parties and Providers ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Each State plan shall take reasonable steps to ascertain the legal li- ability of third parties to pay for care and services under the plan. Provides protections to bene- ficiaries. Provides penalties in the form of reductions of payments to a person who violates this sec- tion. 2135(f) ...... Required Laws Relating to Medical Child Support ... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to have laws that prohibit insurers from denying enrollment of a child under the health coverage of a parent on the ground that the child was born out-of-wedlock, is not claimed on the parent’s income tax return, or does not reside with the parent or in the insurer’s service area. Contains further provisions to assure access to health insurance for kids with divorced parents. 2135(g) ...... Estate Recoveries and Liens permitted ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States may take appropriate action to recover from an individual or estate any amounts paid as medical assistance to or on behalf of the individual under the plan in- cluding through the imposition of liens against property or the estate. A state may not impost a lien on the principal residence of moderate value or the family farm owned by the individual as a condi- tion of the spouse of that individual receiving long term care. S 15838 CONGRESSIONAL RECORD — SENATE October 26, 1995 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and Section Subject Budget Act Violation Explanation

2136 ...... Assignments of Rights of Payment ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States may require as a condition of eligibility that individuals: as- sign to the State any rights to payment for medical care from any third party; cooperate in estab- lishing paternity if the person is a child born out of wedlock and in obtaining support payments for himself and such a child unless the individual is a pregnant woman or is found to have good cause for refusing. 2137 ...... Quality Assurance Standards for Nursing Facilities . 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to establish nursing home standards. Provides procedures for when a State determines that a nursing home previously certified for participation no longer meets the requirements. 2138 ...... Other Provisions Promoting Prgm Integrity ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to make public findings of any survey of any health care facility or organization. Record keeping of services provided to individuals required. 2151 ...... Submittal and Approval of Medicaid Plans ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to submit plans that meet the requirements of this title as a condition of receiving funding. 2152 ...... Submittal and Approval of Plan Amendments ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States may amend their plan at any time. States must provide public notice of any amendments that eliminate or restrict eligibility or benefits. 2153 ...... Sanctions for Substantial Noncompliance ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Secretary is required to review plans and amendments promptly. The Secretary must notify a State within 30 days if its plan substantially violates a requirement of this title and will issue an order that the plan is not to become effective. If upon finding the administra- tion of the plan to be in violation, after notice and opportunity for a hearing, the Secretary shall order remedy. Provides for State response, corrective action, review, failure to respond, judicial hear- ing. 2154 ...... Secretarial Authority ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. The Secretary and the State can negotiate a satisfactory resolution to any dispute concerning the approval of a Medicaid plan. 2171 ...... Definitions ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 2172 ...... Treatment of Territories ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. The Secretary may waive certain requirements for the Territories. 2173 ...... Descriptions of Treatment of Indian Health Pro- 313(b)(1)(A) ...... Extraneous; no budgetary impact. State plans must include provisions made for any Indian health pro- grams. grams operated under the plan. 7192 ...... Medicaid Drug Rebate Program ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. No payment shall be made to a state for covered outpatient drugs unless the manufacturer has entered into a Medicaid rebate agreement with the Secretary. States are not required to participate in the Medicaid rebate agreement. 7193 ...... Waivers ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Allows States with Section 1115 waivers to opt to continue to operate such a waiver, and to continue to receive funding under the waiver, as long as it does not exceed funding granted under this Title. If states opt to terminate a waiver, they are held harmless for ac- crued cost neutrality liabilities. 7194 ...... Children with Special Health Care Needs ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Authorization of appropriations. The Secretary is required to develop a national classification system to identify children with special health care needs. The Secretary is al- lowed to make grants to not more than 5 States to conduct 5-year demonstration projects to test the reliability of the classification system, develop methods of assuring quality care for children with special needs, provide for methods to identify these children. These projects will develop adequate capitation rates for these children. 7195 ...... CBO Reports ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. CBO is to prepare an annual analysis of the effects of these amend- ments on the health insurance status of children, retirees, and the disabled and to report by May 15. Title VII COMMITTEE FINANCE—WELFARE AND OTHER Compliance: Not in 1, not in 5, in compliance in 7 Block Grants for Temporary Assistance for Needy Families Subtitle C, Under 7201: 401 ...... Purpose ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 402 ...... Eligible States; State Plan ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires States to have a written plan and to make the plan avail- able to the pacific. 403 ...... Payments to States and Indian Tribes ...... 313(b)(1)(B) ...... Extraneous; costs. This section establishes the block grant. 403(a)(2)(C) ...... Notification ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Requires Secretary to notify the State 3 months in advance about the amount a State’s grant will be reduced to pay for the program for Indians in that State. 403(a)(3) ...... Supplemental Grant for Population Increases in Cer- 313(b)(1)(B) ...... Extraneous; costs. Provides additional grants to States with higher population growth and average tain States. spending less than the national average. 403(b)(2) ...... Treat Interstate Immigrants Under Rules of Former 313(b)(1)(A) ...... Extraneous; no budgetary impact. A State may apply to a family some or all of the rules, including ben- State. efit amounts, or the program operated by the family’s former state if the family has resided in the current state less than 12 months. 403(b)(3) ...... Authority to Reserve Certain Amounts for Assistance 313(b)(1)(A) ...... Extraneous; no budgetary impact. Allows States to reserve for assistance or child care. 403(b)(4) ...... Authority to Operate Employment Placement Pro- 313(b)(1)(A) ...... Extraneous; no budgetary impact. Allows States to make payments or provide vouchers to State-ap- gram. proved public and private job placement agencies that provide employment placement services to people who receive assistance. 403(c) ...... Timing of Payments ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Allows for quarterly installments. 403(d) ...... Federal Loan Fund for State Welfare Programs ...... 313(b)(1)(A) ...... Extraneous; CBO states in a footnote that under the rules of credit reform this does not score. Estab- lishes a $1.7 billion ‘‘rainy day’’ revolving fund. States must pay back loans with interest. 403(e) ...... Indian Tribes that Receive JOBS Funds ...... 313(b)(1)(B) ...... Extraneous; costs. Grant for Indian tribes to maker work activities available. 403(f) ...... Job Placement Performance Bonus ...... 313(b)(1)(B) ...... Extraneous; cost. Establishes a bonus fund to reward States for high job placement rates. Paid for out of totals. 403(h) ...... Contingency Fund ...... 313(b)(1)(B) ...... Extraneous; costs. Provides $1 billion for matching grants to States with high unemployment. Requires 100 percent maintenance of effort. 404(c)(3)(F) Provision in parens Vocational Educational Training ...... 313(b)(1)(A) ...... Extraneous; does not score. Limits States from counting more than 1 year of vocational education as a lines 8–10. work activity. 404(c)(4) ...... Limitation on Vocational Education ...... 313(b)(1)(A) ...... Not more than 25 percent of adults engaged in work are allowed to meet the work requirement through vocational educational training. 404(d) ...... Penalties Against Individuals ...... 313(b)(1)(A) ...... States are required to reduce the amount of assistance payable to a family if an adult refuses to en- gage in work activities. 404(f) ...... Sense of the Congress ...... 313(b)(1)(A) ...... Extraneous; does not score. States are encouraged to assign priority to requiring adults in 2-parent families and adults in single parent families that include older preschool or school-age children to be engaged in work activities. 404(g) ...... Encouragement to Provide Child Care Services ...... 313(b)(1)(A) ...... Extraneous; does not score. States may treat individuals providing day care to other participating indi- viduals as meeting the work requirements. 405 ...... Requirements and Limitations ...... 313(b)(1)(A) ...... Extraneous; does not score. Requires States to enter into personal responsibility contract with families receiving assistance. 405(b)(1) ...... No Assistance for More Than Five Years ...... 313(b)(1)(A) ...... Extraneous; does not score. States may not provide assistance for more than 5 years on a cumulative basis; can opt to provide it for less than 5 years. 405(d) ...... Denial of Assistance for Fugitive Felons and Proba- 313(b)(1)(A) ...... Extraneous; does not score. Fugitive felons, those on probation and in violation of parole are not eligible tion and Parole Violators. for assistance. Allows for exchange of information with law enforcement officials for purposes of en- forcing this section. 405(e) ...... State Option to Require Assignment of Support ...... 313(b)(1)(A) ...... Extraneous; does not score. States may require that individuals assign to the State any rights to sup- port from any other person. 405(f) ...... Denial of Assistance ...... 313(b)(1)(A) ...... Extraneous; does not score. States may not provide assistance to a family with respect to any minor who is absent for 45 days, or, at State option, not less than 30 and not more than 90 consecutive days. Allows for good cause exceptions. 406(a) ...... Promoting Responsible Parenting ...... 313(b)(1)(A) ...... Extraneous; does not score. Series of findings. 406(b) ...... State Option to Deny Assistance for Out-of-Wedlock 313(b)(1)(A) ...... Extraneous; does not score. States may deny assistance for a child born out-of-wedlock to an individual Births to Minors. who has not attained 18 years of age, or for the individual. 406(c) ...... State Option to Deny Assistance For Children Born 313(b)(1)(A) ...... Extraneous; does not score. States may deny assistance for a minor child who is born to a recipient of to Families Receiving Assistance. assistance. 406(d)(1) ...... Requirement That Teenage Parents Live in Adult- 313(b)(1)(A) ...... Extraneous; does not score. If a State provides assistance to an unmarried teenage mother, that indi- Supervised Settings. vidual must reside with a parent, guardian, or other adult relative. 406(d)(2) ...... Exception ...... 313(b)(1)(A) ...... Extraneous; does not score. Exception is provided if the individual lives in an adult-supervised living arrangement (such as a second chance home.) States can help locate such an arrangement. 406(d)(3) ...... Assistance to States in Providing or Locating Adult- 313(b)(1)(B) ...... Extraneous; costs. Provides $25 million in grants to States for supportive living arrangements such as Supervised Supportive Living Arrangement for. second chance homes. 406(e) ...... Requirement that Teenage Parents Attend High 313(b)(1)(A) ...... Extraneous; does not score. State shall not provide assistance or, at State option, shall reduce assist- School or Equivalent Training Program. ance for someone who has not completed high school and is not in school or an approved alter- native educational or training program. October 26, 1995 CONGRESSIONAL RECORD — SENATE S 15839 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and Section Subject Budget Act Violation Explanation

406(f) ...... Grant Increased to Reward States That Reduce Out- 313(b)(1)(B) ...... Extraneous; costs. Provides additional funds to States that reduce out-of-wedlock births by at least 1 of-Wedlock Births. percent below 1995 levels, and whose rates of abortion do not increase. Secretary can deny the funds if the State changes methods of reporting data. 406(g) ...... State Option to Deny Assistance in Certain Situa- 313(b)(1)(A) ...... Extraneous; no cost impact. Nothing should be construed to restrict the authority of a State to limit as- tions. sistance if the limitation is not inconsistent with the provisions of this part. 408 ...... Audits ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Requires annual audits by an approved entity which must be submitted to the Secretaries of Treasury and HHS. 409 ...... Data Collection and Reporting ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Secretary is required to develop a quality assurance system of data collec- tion and reporting. Data described. 410 ...... Research, Evaluations, and National Studies ...... 313(b)(1)(B) ...... Extraneous; overall costs. Requires research on benefits, effects and costs of operating different State programs, including time limits. Secretary may assist States in developing and evaluating innovative approaches. 410(d) ...... Annual Ranking of States and Review of Most and 313(b)(1)(A) ...... Extraneous; no cost impact. Requires Secretary to rank states in order of their success in placing re- Least Successful Work programs. cipients into long-term private sector jobs, reducing welfare caseload, and diverting individuals from formally applying. 410(e) ...... Annual Ranking of States and Review of Issues Re- 313(b)(1)(A) ...... Extraneous; no cost impact. Requires Secretary to rank states on the basis of out-of-wedlock rates rel- lating to. ative to live births and changes in the out-of-wedlock ratio. 411 ...... Study by the Census Bureau ...... 313(b)(1)(A) ...... Extraneous. Requires Census to expand the Survey of Income and Program Participation to allow eval- uation on a random national sample of recipients. ‘‘Secretary shall appropriate from funds not other- wise appropriated.’’ 412 ...... Waivers ...... 313(b)(1)(B) ...... The section as a whole scores because of 412(b)(3), but as a cost. Allows States to continue to operate under current waivers. 412(b)(3) ...... Hold Harmless ...... 313(b)(1)(B) ...... Extraneous; costs. States who request to terminate a waiver will be held harmless for accrued cost neutrality liabilities. 413 ...... State and County Demonstration ...... 313(b)(1)(B) ...... Extraneous; costs. Allows for demonstrations of innovative and effective program designs. 414 ...... Direct Funding and Administration by Indian Tribes 313(b)(1)(B) ...... Extraneous; costs. Provides funding to Indian tribes for administration of grants. Requires tribes to sub- mit plans with minimum work requirements. Provides for emergency assistance, accountability, pen- alties, and data collection. 415 ...... Assistant Secretary for Family Support ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Program is to be administered by such a Secretary. 416 ...... Limitation on Federal Authority ...... 313(b)(1)(A) ...... Extraneous; no cost impact. HHS and Treasury may not regulate the conduct of the States except to the extent expressly provided in this part. 417 ...... Appeal of Adverse Decision ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Lays out procedures for appealing an adverse decision of the Secretary. 418 ...... Performance Bonus and High Performance Bonus ... 313(b)(1)(B) ...... Extraneous; costs. 5 States with highest percentage performance improvement receive a bonus. Note: this is paid for with previous year’s penalties so some might claim it is deficit neutral. However, it is a separate and discrete section. 419 ...... Amounts for Child Care ...... 313(b)(1)(B) ...... Extraneous; costs. Provides current funding plus $3 billion over 5 years for grants to states for child care. Provides for distribution of funds and administration of programs. 420 ...... Eligibility for Child Care Assistance ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Allows states to determine who is eligible for child care assistance. 7202 ...... Services Provided by Charitable ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Allows states to provide services through contracts with charitable, reli- gious, or private organizations. 7206 ...... Development of Prototype of Counterfeit-resistant 313(b)(1)(A) ...... Extraneous; no cost impact. Authorization of appropriations. Soc. Sec. Card. 7207 ...... Disclosure of Receipt of Fed Funds ...... 313(b)(1)(A) ...... Extraneous; no cost impact. 7208 ...... Modifications to the Job Opportunities for Certain 313(b)(1)(A) ...... Extraneous; no cost impact. Authorization of Appropriations. Low-Income Individuals program. 7209 ...... Demonstration Projects for School Utilization ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Authorization of Appropriations. 7211 ...... Parental Responsibility Contracts ...... 313(b)(1)(A) ...... 7212 ...... Expenditure of Fed Funds in Accordance with Laws 313(b)(1)(A) ...... and Procedures Applicable to Expenditure of State Funds. Subtitle D, SSI: 7251(e) ...... Supplemental Funding for Alcohol and Substance 313(b)(1)(B) ...... Extraneous; costs. $100 million for treatment. Abuse Treatment Programs. 7271 ...... Annual Report on SSI ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Requires Secretary to prepare an annual report describing the program, providing historical data, and making projections for the future. 7273 ...... Study of Disability Determination ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Chapter 4, 7282–7 ...... Nat’l Commission on Future of Disability ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Chapter 5 ...... State Supplementation Programs ...... 313(b)(1)(D) ...... Extraneous; merely incidental. Repeals Maintenance of Effort requirements applicable to Optional State programs for supplementation of SSI. CBO is unable to estimate savings, but says they will be small. Most savings will accrue to the states. Chapter 6, 7295 ...... Eligibility for SSI Benefits Based on Soc. Sec. Re- 313(b)(1)(A) ...... Extraneous; no cost impact within the 7-year budget window. tirement Age. Subtitle E, Child Support: Sec. 7301 ...... State Obligation to Provide Child Support Enforce- 313(b)(1)(B) ...... Extraneous; costs. ment Services. Sec. 7302 ...... Distribution of Child Support Collections ...... 313(b)(1)(B) ...... Extraneous; costs. Sec. 7303 ...... Rights to Notification/Hearings ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Establishes procedures to assure parties receive notifications and have ac- cess to hearings. Sec. 7304 ...... Privacy Safeguards ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Establishes a State plan requirement to protect against unauthorized use of information. 7341(a)(2)(b) ...... Performance-Based Incentives and penalties ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Orders the Secretary to develop a formula for the distribution of in- centive payments. 7344 ...... Automated Data Processing Requirements (O&M) .... 313(b)(1)(B) ...... Extraneous; costs. Requires States to have a single system in accordance with this section’s provisions. 7344 ...... Automated Data Processing Development ...... 313(b)(1)(B) ...... Extraneous; costs. Creates a federal matching rate for development costs of automated systems. 7345(a)(j) ...... Technical Assistance. For training federal and state 313(b)(1)(B) ...... Extraneous; costs. This section appropriates 1% of the amount paid to the U.S. in the previous fiscal staff, R&D programs, and special projects. year pursuant to 475(a). 7351 ...... National Child Support Guidelines Commission ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. This section creates a Commission to establish guidelines for a na- tional child support policy. 7352 ...... Simplified Process for Review of Child Support Or- 313(b)(1)(B) ...... Extraneous; costs. This section lists procedures the State may employ to review and adjust each sup- ders. port order. Ch. 7. Sec. 7369 ...... State Law Authorizing Suspension Licenses ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Ch. 7. Sec...... Denial of Passports for Nonpayment of Child Sup- 313(b)(1)(A) ...... Extraneous; no budgetary impact. port. Ch. 7. Sec. 7371 ...... International Child Support Enforcement ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Gives Secretary of State authority to negotiate agreements in foreign nations to enforce child support laws. Ch. 7. Sec. 7375(b) ...... Sense of the Senate. Regarding how states can col- 313(b)(1)(A) ...... Extraneous; no budgetary impact. lect enforcement costs. Ch. 7. Sec. 7377 ...... Sense of the Senate. Regarding noncustodial par- 313(b)(1)(A) ...... Extraneous; no budgetary impact. ent’s inability to pay child support. Ch. 8. Sec. 7379 ...... Enforcement of Orders for Health Care Coverage ..... 313(b)(1)(B) ...... Costs. This provision obligates states to provide services. Ch. 9. Sec. 7381 ...... Grants to States for Visitation ...... 313(b)(1)(B) ...... Extraneous; costs. This provision requires the Administration for Children and Families to make grants to States so that parents can visit their children. Subtitle F, Noncitizens: 7406 ...... Information Reporting ...... 313(b)(1)(A) ...... Extraneous; no cost impact. Requires states to make quarterly reports with the names and addresses of individuals known to be unlawfully in the US. Subtitle G, Add’l Provisions Relating to Welfare Chapter 1—Reductions in Federal Positions: 7411–3 ...... Reductions in Federal Bureaucracy ...... 313(b)(1)(A) ...... Extraneous; no direct spending impact. Reduction is on the discretionary side of the budget. 7422 ...... Establishing Nat’l Goals to Prevent Teenage Preg- 313(b)(1)(A) ...... Extraneous; no spending impact. Requires the Secretary to establish and implement a strategy for pre- nancies. venting out-of-wedlock teenage pregnancies. Requires a report to Congress. Chapter 4: 7441 ...... Exemption of Battered Individuals from Certain Re- 313(b)(1)(B) ...... Extraneous; costs. Exempts from the provisions of this Subtitles D–F any individual who has been bat- quirements. tered or subjected to extreme cruelty, if the application of the provision would endanger the individ- ual. 7442 ...... Sense of the Senate on Legislative Accountability 313(b)(1)(A) ...... Extraneous; no cost impact. Sense of the Senate that prior to acting on the conference report on wel- for unfunded Mandates. fare, CBO shall prepare an analysis to include estimates of costs to States of meeting the work re- quirements, the resources available to the States to meet the requirements, and the amount of addi- tional revenues needed to meet the work requirements. 7443 ...... Sense of the Senate Regarding Enforcement of 313(b)(1)(A) ...... Extraneous; no cost impact. SoS that State and local jurisdictions should aggressively enforce statutory Statutory Rape Laws. rape laws. 7444 ...... Sanctioning for Testing Positive for Controlled Sub- 313(b)(1)(A) ...... Extraneous; no cost impact. Allows states to sanction people who test positive for illegal substances. stances. S 15840 CONGRESSIONAL RECORD — SENATE October 26, 1995 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and Section Subject Budget Act Violation Explanation

7445 ...... Abstinence Education in Welfare Reform Legislation 313(b)(1)(A) ...... Extraneous; no direct spending impact. Authorization of appropriations. Subtitle J, COLAs: 7481 ...... SoS Regarding Corrections of Cost of Living Adjust- 313(b)(1)(A) ...... Extraneous; no direct spending impact. Finds that the CPI overstates the cost of living in the US, and ments. that the overstatement undermines the equitable administration of Federal benefits. Expresses the Sense of the Senate that Federal law should be corrected to accurately reflect future changes in the cost of living. TITLE X COMMITTEE: LABOR AND HUMAN RESOURCES Compliance: Yes § 10002(c)(1) ‘‘(a)(2)(C)’’ ...... Participation of Institutions and Administration of 313(b)(1)(A) ...... Total administrative funds are fixed in 1002(c)(1) ‘‘(a)(1)(A)’’, therefore the limitation on indirect ex- Loan Programs, Limitation on Certain [adminis- penses and the use of funds for promotion does not score. trative] Expenses. § 10002(g) p. 15, lines 14–16 ...... Participation of Institutions and Administration of 313(b)(1)(A) ...... A Sense of the Senate statement, that a fee shall not be charged to students in the form of increase Loan Programs, School Origination Payment, tuition, can not be considered a term or condition. ‘‘Sense of Senate’’ provision. § 10003(d) ...... Loan Terms & Conditions, Use of Electronic Forms .. 313(b)(1)(A) ...... Permitting development of forms does not score. [Not in cost estimate.] § 10003(e) ...... Loan Terms & Conditions, Application for Part B 313(b)(1)(A) ...... Clarifying use of electronic forms does not score. [Not in cost estimate.] Loans Using Free Federal Application. § 10005(a) ...... Amendments Affecting Guarantee Agencies, Use of 313(b)(1)(A) ...... Only recovery of reserves scores. [Not in cost estimate.] Not term or condition of § 10005(b), (c), (d), or Reserve Funds to Purchase Defaulted Loans. (f). § 10005(e) ...... Amendments Affecting Guarantee Agencies, Reserve 313(b)(1)(A) ...... Only recovery of reserves scores. [Not in cost estimate.] Not term or condition of § 10005(b), (c), (d), or Fund Reforms. (f). § 10005(g) ...... Amendments Affecting Guarantee Agencies, National 313(b)(1)(A) ...... Permitting authority to use clearinghouse is not a term and condition. [Not in cost estimate.] Student Loan Clearinghouse. § 10005(h) ...... Amendments Affecting Guarantee Agencies, Prohibi- 313(b)(1)(A) ...... Only recovery of reserves scores. [Not in cost estimate.] Not term or condition of § 10005(b), (c), (d), or tion Regarding Marketing, Advertising, and Pro- (f). motion. Title XI ...... Veterans’ Affairs ...... 310(c) ...... Out of compliance in 1st year (1996). 12104 ...... Distribution to collectibles ...... 313(b)(1)(A) ...... No budgetary impact. 12114 ...... Changes to Merchant Marine Act ...... 313(b)(1)(C) ...... Jurisdiction. 12213 ...... Allows states to establish standards for long term 313(b)(1)(A) ...... No budgetary impact. care policies. 12401 ...... Requires Secretary of Labor to implement a pro- 313(b)(1)(A) ...... No budgetary impact. gram to encourage small businesses to find qualified employees. 12421 ...... Extends expedited refund of excise tax paid regard- 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ ing ethanol. 12431 ...... Exempts Alaska from diesel dyeing requirements .... 313(b)(1)(D) ...... Merely incidental budgetary impact. Joint Tax Committee scores as a $1 million loss over seven years. 12501 to 12510 ...... Taxpayer Bill of Rights 2 ...... 313(b0(1)(D) ...... Merely incidental budgetary impact. Joint Tax Committee scores as losing $20 million over seven years. 12702 ...... Allows tax exempt organizations to accept ‘‘quali- 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ fied sponsorship payments’’ without being sub- ject to the unrelated business income tax. 12703 ...... Exempts agriculture and horticulture organizations 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ from unrelated business income tax on associate dues of less than $100. 12705 ...... Provides exceptions to the notification 313(b)(1)(A) 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ requirements to beneficiaries of charitable re- mainder trusts. 12706 ...... Allows football coaches retirement plan to be con- 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ sidered a multi-employer plan under ERISA. 12822 ...... Provides that the rollover of gain on the sale of a 313(b)(1)(D) ...... Merely incidental budgetary impact. Join Tax Committee scores as losing less than $500,000 over seven home cannot be elected by a nonresident alien. years. 12874 ...... Requires the trustees of the Combined Fund to pro- 313(b)(1)(A) ...... No budgetary impact. vide documents to contributors. 12875 ...... Clarifies that newspaper carriers are independent 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ contractors. 12876 ...... Allows bank common trust funds to transfer assets 313(b)(1)(A) ...... No budgetary impact. to regulated investment trusts. 12901 ...... Repeal of family aggregation rules for qualified 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as being ‘‘considered in other provisions.’’ pension plans. 12903 ...... Changes the minimum participation rules for quali- 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ fied pension plans. 12931 ...... Clarifies when individuals are ‘‘leased’’ employees.’’ 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ 12932 ...... Eliminates special aggregation rules for pension 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ plans maintained by unincorporated employers. 12935 ...... Allows government pensions to pay higher benefits 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ 12937 ...... Creates a special rule for contributions on behalf of 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ disabled employees. 12938 ...... Allows rural cooperative plans to make distributions 313(b)(1)(b) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ to participants after the attainment of age 591⁄2. 12940 ...... Provides that for purposes of the general non- 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as being ‘‘considered in other provisions.’’ discrimination rules that the Social Security re- tirement age is a uniform retirement age. 12941 ...... Clarifies that 403b plans for tribal governments are 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’ not disqualified because the contract was pur- chased on behalf of employees who are not em- ployees of educational organizations. 12951 to 12968 ...... Creates special rules for church retirement plans ... 313(b)(1)(A) ...... No budgetary impact. Joint Tax Committee scores as ‘‘negligible.’’

MORNING BUSINESS and local governments that is based on backs of state and local governments. Mr. GRAMS. Mr. President, I ask balanced, decentralized decision mak- My involvement in drafting Public Law unanimous consent that there now be a ing. These governments have been the 104–4, the Unfunded Mandates Reform period for the transaction of morning laboratories for change for the last 20 Law, was an effort to relieve this bur- business, with Senators permitted to years. A streamlined and more flexible den. As a former Wyoming state legis- speak for up to 2 minutes each. intergovernmental system will offer lator, I am well aware of the hardships significant opportunities for state and The PRESIDING OFFICER. Without the federal government places on local governments to develop more in- objection, it is so ordered. states and localities. novative and cost effective methods of f delivering programs and services. State I look forward to working with the and local governments are now ready other members of the ACIR in imple- ADVISORY COMMISSION ON to rise to the challenges of this new era menting the unfunded mandates reform INTERGOVERNMENTAL RELATIONS in history—the Information Age— law and sharing with my Senate col- Mr. THOMAS. Mr. President, I am where experimentation and local con- leagues the effects of federal policy honored to serve as a member of the trol are needed. making on state and local govern- Advisory Commission on Intergovern- For example, as this Congress moves ments. Together, we can usher in a new mental Relations [ACIR]. In this era of to balance the budget and restore fiscal era of government and restore federal- ‘‘new federalism,’’ the government responsibility and accountability at ism as the founding fathers intended must create a partnership with state the federal level, it cannot do so on the over 200 years ago.